Financial Instruments (Tables)

6 Months Ended

Jul. 29, 2017

The following is a summary of TJX’s derivative financial instruments, related fair value and balance sheet classification at July 29, 2017:


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 July 29, 2017
Fair value hedges:

Intercompany balances, primarily debt and related interest
		zł 67,000	£	13,000		0.1940	(Accrued Exp)	$	—	$	(1,326	)	$	(1,326	)
		€ 69,200	£	59,813		0.8643	(Accrued Exp)		—		(3,044	)		(3,044	)
		U.S.$ 68,445	£	55,000		0.8036	Prepaid Exp		4,174		—			4,174
		A$ 40,000	£	23,781		0.5945	(Accrued Exp)		—		(676	)		(676	)

Economic hedges for which hedge accounting was not elected:

Diesel contracts		Fixed on 2.0M – 2.5M gal per month		Float on 2.0M – 2.5M gal per month		N/A	Prepaid Exp		544		—			544
Intercompany billings in Europe, primarily merchandise related	€	54,000	£	47,790		0.8850	(Accrued Exp)		—		(730	)		(730	)
Merchandise purchase commitments
		C$ 571,142	U.S.$	430,600		0.7539	(Accrued Exp)		—		(29,261	)		(29,261	)
		C$ 33,086	€	22,500		0.6800	Prepaid Exp / (Accrued Exp)		218		(361	)		(143	)
		£ 252,400	U.S.$	324,000		1.2837	(Accrued Exp)		—		(8,417	)		(8,417	)
		A$ 26,492	U.S.$	20,266		0.7650	(Accrued Exp)		—		(895	)		(895	)
		zł 326,370	£	66,993		0.2053	(Accrued Exp)		—		(1,917	)		(1,917	)
		U.S.$ 2,284	£	1,787		0.7824	Prepaid Exp		65		—			65
		U.S.$ 74,175	€	66,313		0.8940	Prepaid Exp		3,957		—			3,957

Total fair value of derivative financial instruments								$	8,958	$	(46,627	)	$	(37,669	)

The following is a summary of TJX’s derivative financial instruments, related fair value and balance sheet classification at January 28, 2017:


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 January 28, 2017
Fair value hedges:
Intercompany balances, primarily debt and related interest
		zł 67,000	£	13,000		0.1940	(Accrued Exp)	$	—	$	(6	)	$	(6	)
		€ 63,000	£	54,452		0.8643	Prepaid Exp		263		—			263
		U.S.$ 68,445	£	55,000		0.8036	Prepaid Exp		1,196		—			1,196

Economic hedges for which hedge accounting was not elected:
Diesel contracts
		Fixed on 2.1M – 2.5M gal per month		Float on 2.1M– 2.5M gal per month		N/A	Prepaid Exp		2,183		—			2,183

Intercompany billings in Europe, primarily merchandise related
		€ 68,000	£	58,306		0.8574	Prepaid Exp		262		—			262
Merchandise purchase commitments
		C$ 462,025	U.S.$	349,750		0.7570	Prepaid Exp / (Accrued Exp)		1,089		(3,081	)		(1,992	)
		C$ 19,571	€	13,650		0.6975	Prepaid Exp / (Accrued Exp)		22		(290	)		(268	)
		£ 180,963	U.S.$	227,500		1.2572	Prepaid Exp / (Accrued Exp)		2,327		(2,695	)		(368	)
		zł 249,079	£	48,593		0.1951	Prepaid Exp / (Accrued Exp)		681		(927	)		(246	)
		U.S.$ 22,226	€	20,686		0.9307	Prepaid Exp / (Accrued Exp)		178		(257	)		(79	)

Total fair value of financial instruments								$	8,201	$	(7,256	)	$	945

The following is a summary of TJX’s derivative financial instruments, related fair value and balance sheet classification at July 30, 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 July 30, 2016
Fair value hedges:

Intercompany balances, primarily debt and related interest
		zł 57,073	C$	19,606		0.3435	Prepaid Exp	$	448	$	—		$	448
		zł 45,000	£	7,403		0.1645	(Accrued Exp)		—		(1,696	)		(1,696	)
		€ 61,000	£	47,211		0.7740	(Accrued Exp)		—		(6,079	)		(6,079	)
		U.S.$ 77,957	£	55,000		0.7055	(Accrued Exp)		—		(4,969	)		(4,969	)

Economic hedges for which hedge accounting was not elected:

Diesel contracts		Fixed on 1.8M – 2.2M gal per month		Float on 1.8M –2.2M gal per month		N/A	(Accrued Exp)		—		(4,832	)		(4,832	)

Intercompany billings in Europe, primarily merchandise related		€ 75,000	£	64,031		0.8537	Prepaid Exp		816		—			816

Merchandise purchase commitments
		C$ 518,629	U.S.$	396,300		0.7641	Prepaid Exp / (Accrued Exp)		2,192		(4,070	)		(1,878	)
		C$ 25,108	€	17,250		0.6870	Prepaid Exp / (Accrued Exp)		57		(42	)		15
		£ 223,671	U.S.$	317,750		1.4206	Prepaid Exp / (Accrued Exp)		21,716		(252	)		21,464
		U.S.$ 1,556	£	1,079		0.6934	(Accrued Exp)		—		(127	)		(127	)
		zł 278,776	£	50,509		0.1812	(Accrued Exp)		—		(4,474	)		(4,474	)
		U.S.$ 55,093	€	48,792		0.8856	Prepaid Exp / (Accrued Exp)		154		(577	)		(423	)

Total fair value of derivative financial instruments								$	25,383	$	(27,118	)	$	(1,735	)

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


	Location of Gain (Loss)		Amount of Gain (Loss) Recognized in Income by Derivative
	Recognized in Income by		Thirteen Weeks Ended
In thousands	Derivative		July 29, 2017			July 30, 2016
Fair value hedges:

Intercompany balances, primarily debt and related interest		Selling, general and administrative expenses	$	(5,591	)	$	(14,163	)

Economic hedges for which hedge accounting was not elected:

Diesel fuel contracts		Cost of sales, including buying and occupancy costs		2,006			(3,516	)

Intercompany billings in Europe, primarily merchandise related		Cost of sales, including buying and occupancy costs		(5,045	)		(6,968	)

Merchandise purchase commitments		Cost of sales, including buying and occupancy costs		(44,098	)		37,709

Gain / (loss) recognized in income			$	(52,728	)	$	13,062


	Location of Gain (Loss)		Amount of Gain (Loss) Recognized in Income by Derivative
	Recognized in Income by		Twenty-Six Weeks Ended
In thousands	Derivative		July 29, 2017			July 30, 2016
Fair value hedges:

Intercompany balances, primarily debt and related interest		Selling, general and administrative expenses	$	(2,366	)	$	(13,286	)

Economic hedges for which hedge accounting was not elected:
Diesel fuel contracts		Cost of sales, including buying and occupancy costs		(1,317	)		(1,229	)

Intercompany billings in Europe, primarily merchandise related		Cost of sales, including buying and occupancy costs		(3,444	)		(9,076	)

Merchandise purchase commitments		Cost of sales, including buying and occupancy costs		(34,165	)		(7,279	)

Gain / (loss) recognized in income			$	(41,292	)	$	(30,870	)