Financial Instruments (Tables)

9 Months Ended

Nov. 02, 2019

The following is a summary of TJX’s derivative financial instruments, related fair value and balance sheet classification at November 2, 2019:


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 November 2, 2019
Fair value hedges:
Intercompany balances, primarily debt and related interest:
	zł	64,000	£	13,144	0.2054	Prepaid Exp	$	246	$	—	$	246
	€	46,450	£	41,712	0.8980	Prepaid Exp	1,919		—		1,919
	A$	50,000	U.S.$	34,370	0.6874	(Accrued Exp)	—		(303)		(303)
	U.S.$	72,020	£	55,000	0.7637	(Accrued Exp)	—		(757)		(757)
Economic hedges for which hedge accounting was not elected:
	Diesel fuel contracts	Fixed on 2.7M – 3.3M gal per month		Float on 2.7M – 3.3M gal per month	N/A	(Accrued Exp)	—		(3,878)		(3,878)
Intercompany billings in TJX International, primarily merchandise related:
	€	86,800	£	76,837	0.8852	Prepaid Exp	2,411		—		2,411
Merchandise purchase commitments:
	C$	642,859	U.S.$	487,300	0.7580	Prepaid Exp / (Accrued Exp)	808		(2,960)		(2,152)
	C$	31,863	€	21,600	0.6779	Prepaid Exp / (Accrued Exp)	36		(111)		(75)
	£	308,166	U.S.$	386,700	1.2548	Prepaid Exp / (Accrued Exp)	373		(14,122)		(13,749)
	A$	42,054	U.S.$	28,767	0.6840	Prepaid Exp / (Accrued Exp)	46		(414)		(368)
	zł	369,290	£	76,343	0.2067	Prepaid Exp / (Accrued Exp)	2,192		(148)		2,044
	U.S.$	2,254	£	1,761	0.7813	Prepaid Exp	23		—		23
	U.S.$	69,558	€	61,875	0.8895	Prepaid Exp / (Accrued Exp)	304		(614)		(310)
Total fair value of derivative financial instruments															$	8,358	$	(23,307)	$	(14,949)

The following is a summary of TJX’s derivative financial instruments, related fair value and balance sheet classification at February 2, 2019:


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 February 2, 2019
Fair value hedges:
Intercompany balances, primarily debt and related interest:
	zł	59,000	£	12,021	0.2037	Prepaid Exp	$	56	$	—	$	56
	€	55,950	£	49,560	0.8858	Prepaid Exp / (Accrued Exp)	126		(140)		(14)
	A$	30,000	U.S.$	21,483	0.7161	(Accrued Exp)	—		(314)		(314)
	U.S.$	72,020	£	55,000	0.7637	Prepaid Exp	1,037		—		1,037
Economic hedges for which hedge accounting was not elected:
	Diesel fuel contracts	Fixed on 2.7M – 3.3M gal per month		Float on 2.7M– 3.3M gal per month	N/A	(Accrued Exp)	—		(3,786)		(3,786)
Intercompany billings in TJX International, primarily merchandise related:
	€	46,600	£	41,835	0.8977	Prepaid Exp	1,300		—		1,300
Merchandise purchase commitments:
	C$	546,083	U.S.$	414,100	0.7583	Prepaid Exp / (Accrued Exp)	1,239		(4,741)		(3,502)
	C$	31,455	€	20,700	0.6581	(Accrued Exp)	—		(248)		(248)
	£	173,624	U.S.$	230,000	1.3247	Prepaid Exp / (Accrued Exp)	3,459		(1,466)		1,993
	zł	280,167	£	57,586	0.2055	Prepaid Exp / (Accrued Exp)	707		(86)		621
	A$	51,043	U.S.$	36,961	0.7241	Prepaid Exp / (Accrued Exp)	97		(213)		(116)
	U.S.$	56,847	€	49,355	0.8682	Prepaid Exp / (Accrued Exp)	115		(207)		(92)
Total fair value of derivative financial instruments															$	8,136	$	(11,201)	$	(3,065)

The following is a summary of TJX’s derivative financial instruments, related fair value and balance sheet classification at November 3, 2018:


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 November 3, 2018
Fair value hedges:
Intercompany balances, primarily debt and related interest:
	zł	62,000	£	12,983	0.2094	Prepaid Exp	$	475	$	—	$	475
	€	48,950	£	43,612	0.8909	Prepaid Exp	626		—		626
	U.S.$	77,079	£	55,000	0.7136	(Accrued Exp)	—		(5,545)		(5,545)
	A$	30,000	U.S.$	21,207	0.7069	(Accrued Exp)	—		(429)		(429)
Economic hedges for which hedge accounting was not elected:
	Diesel fuel contracts	Fixed on 1.3M – 3.0M gal per month		Float on 1.3M – 3.0M gal per month	N/A	Prepaid Exp	4,965		—		4,965
Intercompany billings in TJX International, primarily merchandise related:
	€	82,000	£	71,853	0.8763	(Accrued Exp)	—		(231)		(231)
Merchandise purchase commitments:
	C$	582,670	U.S.$	447,800	0.7685	Prepaid Exp / (Accrued Exp)	3,216		(543)		2,673
	C$	29,614	€	19,500	0.6585	Prepaid Exp / (Accrued Exp)	4		(342)		(338)
	£	271,690	U.S.$	369,500	1.3600	Prepaid Exp / (Accrued Exp)	15,585		(132)		15,453
	U.S.$	2,692	£	2,067	0.7678	Prepaid Exp / (Accrued Exp)	15		(28)		(13)
	A$	45,132	U.S.$	32,962	0.7303	Prepaid Exp / (Accrued Exp)	441		(21)		420
	zł	289,208	£	59,158	0.2046	Prepaid Exp / (Accrued Exp)	744		(373)		371
	U.S.$	67,459	€	57,065	0.8459	(Accrued Exp)	—		(2,235)		(2,235)
Total fair value of derivative financial instruments															$	26,071	$	(9,879)	$	16,192

Presented below is the impact of derivative financial instruments on the Consolidated Statements of Income for the periods shown:


		Amount of Gain (Loss) Recognized in Income by Derivative
	Location of Gain (Loss) Recognized in Income by Derivative	Thirteen Weeks Ended						Thirty-Nine Weeks Ended
In thousands				November 2, 2019		November 3, 2018		November 2, 2019		November 3, 2018
Fair value hedges:
Intercompany balances, primarily debt and related interest	Selling, general and administrative expenses	$	7,238	$	672	$	526	$	(3,538)
Economic hedges for which hedge accounting was not elected:
Intercompany receivable	Selling, general and administrative expenses	—		—		3,257		18,823
Diesel fuel contracts	Cost of sales, including buying and occupancy costs	529		1,572		(2,103)		7,530
Intercompany billings in TJX International, primarily merchandise related	Cost of sales, including buying and occupancy costs	5,144		1,718		944		1,024
International lease liabilities	Cost of sales, including buying and occupancy costs	301		—		(1,113)		—
Merchandise purchase commitments	Cost of sales, including buying and occupancy costs	(18,622)		8,463		8,536		61,091
Gain / (loss) recognized in income				$	(5,410)	$	12,425	$	10,047	$	84,930