Financial Instruments (Tables)

9 Months Ended

Oct. 29, 2016

The following is a summary of TJX’s derivative financial instruments, related fair value and balance sheet classification at October 29, 2016:


In thousands	Pay		Receive		Blended Contract Rate		Balance Sheet Location			Current Asset U.S.$		Current (Liability) U.S.$			Net Fair Value in U.S.$ at October 29, 2016
Fair value hedges:
Intercompany balances, primarily debt and related interest
	zł	57,073	C$	19,606		0.3435		Prepaid Exp		$	199	$	—		$	199
	zł	45,000	£	7,403		0.1645		(Accrued Exp	)		—		(2,357	)		(2,357	)
	€	61,000	£	47,211		0.7740		(Accrued Exp	)		—		(9,681	)		(9,681	)
	U.S.$	77,957	£	55,000		0.7055		(Accrued Exp	)		—		(10,999	)		(10,999	)
	£	25,000	C$	41,123		1.6449		Prepaid Exp			45		—			45
Economic hedges for which hedge accounting was not elected:
Diesel contracts		Fixed on 2.1M – 2.3M gal per month		Float on 2.1M – 2.3M gal per month		N/A		Prepaid Exp			1,485		—			1,485
Intercompany billings in Europe, primarily merchandise related	€	88,000	£	79,577		0.9043		Prepaid Exp			186		—			186
Merchandise purchase commitments
	C$	461,631	U.S.$	355,350		0.7698		Prepaid Exp			10,434		—			10,434
	C$	21,643	€	14,900		0.6885		Prepaid Exp			217		—			217
	£	191,518	U.S.$	252,600		1.3189		Prepaid Exp / (Accrued Exp	)		18,824		(626	)		18,198
	U.S.$	675	£	468		0.6934		(Accrued Exp	)		—		(106	)		(106	)
	zł	258,005	£	50,292		0.1949		Prepaid Exp / (Accrued Exp	)		1		(3,875	)		(3,874	)
	U.S.$	49,288	€	43,819		0.8891		Prepaid Exp / (Accrued Exp	)		19		(1,122	)		(1,103	)

Total fair value of financial instruments										$	31,410	$	(28,766	)	$	2,644

The following is a summary of TJX’s derivative financial instruments, related fair value and balance sheet classification at October 31, 2015:


In thousands	Pay		Receive		Blended Contract Rate		Balance Sheet Location			Current Asset U.S.$		Current (Liability) U.S.$			Net Fair Value in U.S.$ at October 31, 2015
Fair value hedges:
Intercompany balances, primarily debt and related interest
	zł	87,073	C$	29,560		0.3395		Prepaid Exp / (Accrued Exp	)	$	270	$	(198	)	$	72
	zł	35,000	£	6,279		0.1794		Prepaid Exp			635		—			635
	€	45,000	£	33,294		0.7399		Prepaid Exp			1,726		—			1,726
	€	19,850	U.S.$	22,647		1.1409		Prepaid Exp			762		—			762
	U.S.$	83,400	£	55,000		0.6595		Prepaid Exp			1,424		—			1,424
Economic hedges for which hedge accounting was not elected:
Diesel contracts		Fixed on 975K – 3.0M gal per month		Float on 975K – 3.0M gal per month		N/A		(Accrued Exp	)		—		(10,437	)		(10,437	)
Merchandise purchase commitments
	C$	530,307	U.S.$	410,904		0.7748		Prepaid Exp / (Accrued Exp	)		6,470		(906	)		5,564
	C$	18,574	€	12,700		0.6838		Prepaid Exp / (Accrued Exp	)		2		(224	)		(222	)
	£	160,365	U.S.$	247,900		1.5458		Prepaid Exp / (Accrued Exp	)		1,218		(689	)		529
	zł	213,967	£	36,670		0.1714		Prepaid Exp			1,275		—			1,275
	U.S.$	29,338	€	26,318		0.8971		Prepaid Exp / (Accrued Exp	)		19		(379	)		(360	)

Total fair value of financial instruments										$	13,801	$	(12,833	)	$	968

Presented below is the impact of derivative financial instruments on the statements of income for the periods shown:


			Amount of Gain (Loss) Recognized in Income by Derivative
			Thirteen Weeks Ended
In thousands	Location of Gain (Loss) Recognized in Income by Derivative		October 29, 2016			October 31, 2015
Fair value hedges:
Intercompany balances, primarily debt and related interest		Selling, general and administrative expenses	$	(10,549	)	$	(730	)
Economic hedges for which hedge accounting was not elected:
Diesel fuel contracts		Cost of sales, including buying and occupancy costs		4,241			(2,405	)
Intercompany billings in Europe, primarily merchandise related		Cost of sales, including buying and occupancy costs		(5,911	)		—
Merchandise purchase commitments		Cost of sales, including buying and occupancy costs		23,105			5,311

Gain / (loss) recognized in income			$	10,886		$	2,176


			Amount of Gain (Loss) Recognized in Income by Derivative
			Thirty-Nine Weeks Ended
In thousands	Location of Gain (Loss) Recognized in Income by Derivative		October 29, 2016			October 31, 2015
Fair value hedges:
Intercompany balances, primarily debt and related interest		Selling, general and administrative expenses	$	(23,835	)	$	6,978
Economic hedges for which hedge accounting was not elected:
Diesel fuel contracts		Cost of sales, including buying and occupancy costs		3,012			(11,696	)
Intercompany billings in Europe, primarily merchandise related		Cost of sales, including buying and occupancy costs		(14,987	)		—
Merchandise purchase commitments		Cost of sales, including buying and occupancy costs		15,826			12,854

Gain / (loss) recognized in income			$	(19,984	)	$	8,136