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Income Taxes
6 Months Ended
Jul. 30, 2011
Income Taxes  
Income Taxes
Note K. Income Taxes
TJX is subject to income tax in the U.S. and foreign jurisdictions. TJX's effective income tax rate was 37.7% for the fiscal 2012 second quarter and 38.6% for last year's second quarter. The effective income tax rate for the six months ended July 30, 2011 was 37.9% as compared to 38.4% for last year's comparable period. The decrease in the income tax rate for both the second quarter and year-to-date periods of fiscal 2012 was primarily due to a lower statutory rate in the United Kingdom.
TJX is engaged in ongoing discussions and proceedings with taxing authorities in the U.S. and foreign countries. In nearly all jurisdictions, TJX's income taxes for the tax years through fiscal 2003 are no longer subject to examination. In evaluating the tax benefits associated with various tax filing positions, TJX records a tax benefit for uncertain tax positions using the highest cumulative tax benefit that is more likely than not to be realized and records liability for unrecognized tax benefits, including accrued penalties and interest, on its consolidated balance sheets. TJX had net unrecognized tax benefits of $126.3 million as of July 30, 2011 and $127.4 million as of July 31, 2010.
TJX adjusts its liability for unrecognized tax benefits based on the outcome of tax examinations or judicial or administrative proceedings, as a result of the expiration of statute of limitations or when more information becomes available, and such adjustments may be material. During the next 12 months, it is reasonably possible that as a result of tax examinations of prior years' tax returns and related proceedings, the total net amount of unrecognized tax benefits may decrease by a range of zero to $42.0 million, which would reduce the provision for taxes on earnings.