Market Overview

The TJX Companies, Inc. Reports Q4 and FY18 Results; Achieves Above-Plan Q4 Comp Sales Growth of 4% and Exceeds Q4 EPS Expectations; Announces Plan to Increase Dividend 25% and Buy Back $2.5 to $3.0 Billion of Stock; Provides FY19 Guidance

Share:
  • Q4 net sales for the 14-week period increased 16% to $11.0 billion
  • Q4 consolidated comparable store sales on a 13-week basis increased
    4% over last year's 3% increase
  • Q4 GAAP diluted EPS of $1.37, compared with $1.03 in the prior year
  • Q4 adjusted diluted EPS of $1.19, which excludes a $.17 net benefit
    due to items related to the 2017 Tax Act (described below), a benefit
    of approximately $.11 from the extra week in the Company's Fiscal 2018
    fourth quarter, and a $.10 impairment charge related to Sierra Trading
    Post (described below), compared with $1.03 in Q4 of the prior year
  • FY18 net sales for the 53-week period increased 8% to $35.9 billion
  • FY18 consolidated comparable store sales on a 52-week basis
    increased 2% over last year's 5% increase
  • FY18 GAAP diluted EPS of $4.04, compared with $3.46 in the prior
    year
  • FY18 adjusted diluted EPS of $3.85, which excludes the same Q4
    items mentioned above, compared with an adjusted $3.53 in the prior
    year
  • Returned $2.4 billion to shareholders in Fiscal 2018 through share
    repurchases and dividends

The TJX Companies, Inc. (NYSE:TJX), the leading off-price retailer of
apparel and home fashions in the U.S. and worldwide, today announced
sales and earnings results for the fourth quarter ended February 3,
2018. Net sales for the 14-week fourth quarter of Fiscal 2018 increased
16% to $11.0 billion. Consolidated comparable store sales on a 13-week
basis increased 4%, compared to last year's 3% increase. Net income for
the 14-week fourth quarter was $877 million and diluted earnings per
share were $1.37. Adjusted diluted earnings per share for the fourth
quarter were $1.19, a 16% increase over the prior year's $1.03.

For the 53-week fiscal year ended February 3, 2018, net sales were $35.9
billion, an 8% increase over last year's 7% increase. Consolidated
comparable store sales on a 52-week basis increased 2% over last year's
5% increase. Net income for the 53-week fiscal year was $2.6 billion and
diluted earnings per share were $4.04 versus $3.46 in the prior year.
Adjusted diluted earnings per share for the fiscal year were $3.85, a 9%
increase over the prior year's adjusted $3.53, which excluded a combined
$.07 negative impact from a debt extinguishment charge and a pension
settlement charge.

Ernie Herrman, Chief Executive Officer and President of The TJX
Companies, Inc., stated, "We are very pleased with our strong finish to
2017! In the fourth quarter, our consolidated comp store sales increase
of 4% and adjusted earnings per share both meaningfully exceeded our
expectations. Once again, customer traffic was up overall and the
primary driver of our comp sales increases at each of our four major
divisions, as customers responded to our great brands and compelling,
eclectic mix of merchandise at excellent values. We are also pleased
with our full-year performance as we surpassed $35 billion in annual
sales, an important milestone for our Company! Consolidated comp store
sales were up 2% as we marked the 22nd consecutive year of
comp sales growth for TJX. For the full year, adjusted earnings per
share were also above our plan."

Herrman continued, "Looking ahead, 2018 is off to a solid start. We see
abundant opportunities in the marketplace for major brands and
high-quality merchandise and are pursuing numerous initiatives to keep
driving sales and customer traffic. Our management team is laser focused
on achieving our 2018 plans and, as always, passionate about surpassing
them."

Impact of the Tax Cuts and Jobs Act of 2017
(2017 Tax Act)

The 2017 Tax Act benefited the Company in the fourth quarter and full
year Fiscal 2018. The Company expects to continue to benefit from the
2017 Tax Act going forward, primarily due to the lower U.S. corporate
income tax rate. As a result of the estimated cash benefit related to
the 2017 Tax Act, the Company is taking the following actions:

Associates

  • A one-time, discretionary bonus to eligible, non-bonus-plan
    Associates, globally
  • An incremental contribution to the Company's defined contribution
    retirement plans for eligible Associates in the U.S. and
    internationally
  • Instituting paid parental leave for eligible Associates in the U.S.
  • Enhancing vacation benefits for certain U.S. Associates

Communities

  • Made meaningful contributions to TJX's charitable foundations around
    the world to further support TJX's charitable giving

Shareholders

  • Planning a significant increase in shareholder distributions in Fiscal
    2019, through both the Company's dividend and share buyback programs
    (detailed below)

Repatriation of Cash

  • Planning to repatriate more than $1 billion in cash from its TJX
    Canada division in Fiscal 2019

Ernie Herrman commented, "We are pleased to be utilizing the cash
benefit from the 2017 Tax Act to make incremental investments in our
Associates, our communities and shareholder distributions. Apart from
the tax-related cash benefit, we plan to continue to re-invest in the
business, including store growth, supply chain and infrastructure,
technology, training our Associates, and upgrades to the shopping
experience for customers. We are pleased to be in a position to do all
of this while continuing to deliver great value to our customers and
shareholders!"

The $.17 per share net benefit in the fourth quarter and full year
Fiscal 2018 includes the benefit related to changes in the U.S. tax code
as a result of the 2017 Tax Act, partially offset by the Associate
bonus, retirement plan contributions, and charitable foundation
contributions mentioned above.

Shareholder Distributions

The Company intends to increase the regular quarterly dividend on its
common stock to be declared in April 2018 and payable in June 2018 to
$.39 per share, subject to the approval of the Company's Board of
Directors. This increase would represent a 25% increase in the current
per share dividend and mark the 22nd consecutive year that
the Company has raised the dividend. Over this period of time, the
Company's dividend has grown at a compound annual rate of 23%.

The Company also announced today its plan to repurchase approximately
$2.5 to $3.0 billion of TJX stock during the fiscal year ending February
2, 2019. With $1.1 billion remaining at Fiscal 2018 year end under the
Company's stock repurchase programs, the Company's Board of Directors
approved a new stock repurchase program that authorizes the repurchase
of up to an additional $3.0 billion of TJX common stock from time to
time. The new authorization represents approximately 6% of the Company's
outstanding shares at current prices. The new stock repurchase program
marks the 19th program approved by the Board since 1997. Over
this period, the Company has spent approximately $19.6 billion on the
repurchase of TJX stock. During the fourth quarter, the Company spent a
total of $405 million to repurchase TJX stock, retiring 5.4 million
shares. In Fiscal 2018, the Company spent a total of $1.7 billion to
repurchase TJX stock, retiring 22.3 million shares. Under the Company's
repurchase plans, share repurchases may be made from time to time in
market or private transactions and may include derivative transactions.
The repurchase program announced today has no time limit and may be
suspended or discontinued at any time.

Ernie Herrman commented, "Our business continues to generate tremendous
amounts of cash and excellent financial returns. In addition, with the
recent changes in U.S. federal tax law, we expect a significant increase
in cash flow. A substantial use of this cash is reflected in our plan to
increase our regular quarterly dividend and share buyback program while
simultaneously reinvesting in the business. This underscores our
confidence in our ability to continue delivering strong, profitable
sales and cash flow that enables us to both fund our continued growth
and return value to our shareholders."

Sales by Business Segment

The Company's comparable store sales and net sales by division for the
fourth quarter and full year were as follows:

               
Fourth Quarter
Comparable Store Sales1,2,3
      Fourth Quarter
Net Sales ($ in millions)4,5
       

FY2018
(13 weeks)

     

FY2017
(13 weeks)

     

FY2018
(14 weeks)

     

FY2017
(13 weeks)

                                 
Marmaxx (U.S.)6,7       +3%       +3%       $6,699       $6,029
HomeGoods (U.S.)8       +3%       +5%       $1,610       $1,329
TJX Canada       +7%       +4%       $1,088       $873
TJX International (Europe & Australia)       +3%       +2%       $1,564       $1,236
                                 
TJX       +4%       +3%       $10,961       $9,468
               

Full Year
Comparable Store Sales1,2,3

     

Full Year
Net Sales ($ in millions)4,5

       

FY2018
(52 weeks)

     

FY2017
(52 weeks)

     

FY2018
(53 weeks)

     

FY2017
(52 weeks)

                                 
Marmaxx (U.S.)6,7       +1%       +5%       $22,249       $21,246
HomeGoods (U.S.)8       +4%       +6%       $5,116       $4,405
TJX Canada       +5%       +8%       $3,642       $3,171
TJX International (Europe & Australia)       +2%       +2%       $4,857       $4,362
                                 
TJX       +2%       +5%       $35,865       $33,184

 

1Comparable store sales outside the U.S. calculated on
a constant currency basis, which removes the effect of changes in
currency exchange rates. For Q4 and FY2018, comparable store sales
are for the 13-week and 52-week period ended January 27, 2018
respectively, versus the comparable period in FY2017. 2Comparable
store sales exclude Sierra Trading Post, tjmaxx.com and
tkmaxx.com. 3Q4 and FY2018 comparable store sales
exclude 37 stores (primarily in Puerto Rico) that were
significantly impacted by hurricanes during the year. 4Net
sales in TJX Canada and TJX International include the impact of
foreign currency exchange rates. See below. 5Figures
may not foot due to rounding. 6Combination of TJ Maxx
and Marshalls. 7Net sales include Sierra Trading Post. 8Net
sales in Q4 and FY2018 include Homesense stores in the U.S.

Impact of Foreign Currency Exchange Rates

Changes in foreign currency exchange rates affect the translation of
sales and earnings of the Company's international businesses into U.S.
dollars for financial reporting purposes. In addition, ordinary course,
inventory-related hedging instruments are marked to market at the end of
each quarter. Changes in currency exchange rates can have a material
effect on the magnitude of these translations and adjustments when there
is significant volatility in currency exchange rates.

For the fourth quarter of Fiscal 2018, the movement in foreign currency
exchange rates had a two percentage point positive impact on
consolidated net sales growth. The overall net impact of foreign
currency exchange rates had a $.01 positive impact on fourth quarter
Fiscal 2018 earnings per share, compared with a $.02 negative impact
last year.

The movement in foreign currency exchange rates had a neutral impact on
consolidated net sales growth for the full Fiscal 2018 year versus the
prior year. The overall net impact of foreign currency exchange rates
had a $.02 positive impact on full year Fiscal 2018 earnings per share,
compared with a $.02 negative impact last year.

A table detailing the impact of foreign currency on TJX pretax earnings
and margins, as well as those of its international businesses, can be
found in the Investors section of tjx.com.

The foreign currency exchange rate impact to earnings per share does not
include the impact currency exchange rates have on various transactions,
which the Company refers to as "transactional foreign exchange."

Sierra Trading Post Impairment Charge

The Company's earnings per share in the fourth quarter and full year
Fiscal 2018 includes a $.10 impairment charge. This charge is related to
goodwill as the estimated fair value of Sierra Trading Post (STP) fell
below the carrying value due to a decrease in projected revenue growth
rates. This charge is included in the Marmaxx segment. As TJX continues
transitioning this business to an off-price model, the Company saw
improvement in the top line in the second half of Fiscal 2018. The
Company remains confident in the potential of STP and believes it is
well positioned for successful growth going forward.

Margins

For the fourth quarter of Fiscal 2018, the Company's consolidated pretax
profit margin was 10.1%, a 1.5 percentage point decrease compared with
the prior year's 11.6%. On an adjusted basis, the Company's consolidated
pretax profit margin was 11.5%, which excludes a 0.9 percentage point
negative impact from the Sierra Trading Post impairment charge, a 0.9
percentage point negative impact from the Associate bonus, retirement
plan contributions, and charitable foundation contributions (described
above), and a benefit of approximately 0.4 percentage points from the
extra week in the Company's Fiscal 2018 fourth quarter calendar. This
was a 0.1 percentage point decrease versus the prior year.

Gross profit margin for the fourth quarter of Fiscal 2018 was 28.4%, up
0.1 percentage point versus the prior year. Excluding a benefit of
approximately 0.4 percentage points from the extra week in the Company's
Fiscal 2018 calendar, adjusted gross margin was 27.9%, down 0.4
percentage points versus the prior year.

Selling, general and administrative (SG&A) costs as a percent of sales
for the fourth quarter were 17.3%, up 0.6 percentage points versus the
prior year's ratio. Excluding a 0.9 percentage point negative impact
from the Associate bonus, retirement plan contributions, and charitable
foundation contributions (described above), adjusted SG&A was 16.4%,
down 0.3 percentage points versus the prior year.

For the full year Fiscal 2018, the Company's consolidated pretax profit
margin was 10.8%, a 0.4 percentage point decrease compared with the
prior year's 11.2%. On an adjusted basis, the Company's consolidated
pretax profit margin was 11.2%, which excludes a 0.3 percentage point
negative impact from the Sierra Trading Post impairment charge, a 0.3
percentage point negative impact from the Associate bonus, retirement
plan contributions, and charitable foundation contributions (described
above), and a benefit of approximately 0.1 percentage point from the
53rd week in the Company's Fiscal 2018 calendar. This was a 0.3
percentage point decrease compared with the prior year's adjusted 11.5%,
which excluded a debt extinguishment charge and a pension settlement
charge.

Gross profit margin for Fiscal 2018 was 28.9%, down 0.1 percentage point
versus the prior year. Excluding a benefit of approximately 0.1
percentage point from the 53rd week in the Company's Fiscal
2018 calendar, adjusted gross margin was 28.8%, down 0.2 percentage
points versus the prior year. Merchandise margin remained strong on top
of a significant increase in the prior year.

Selling, general and administrative costs as a percent of sales for
Fiscal 2018 were 17.8%, up 0.4 percentage points versus the prior year's
ratio. Excluding a 0.3 percentage point negative impact from the
Associate bonus, retirement plan contributions, and charitable
foundation contributions (described above), adjusted SG&A was 17.5%, up
0.1 percentage point versus the prior year.

Inventory

Total inventories as of February 3, 2018, were $4.2 billion, compared
with $3.6 billion at the end of the prior fiscal year. Consolidated
inventories on a per-store basis as of February 3, 2018, including the
distribution centers, but excluding inventory in transit and the
Company's e-commerce businesses, were up 6% on a reported basis and up
4% on a constant currency basis, compared to down 4% on a constant
currency basis in the prior year. The Company enters the new fiscal year
well-positioned to ship fresh, spring merchandise to its stores and take
advantage of the plentiful opportunities in the marketplace.

Full Year and First Quarter Fiscal 2019 Outlook

For the 52-week fiscal year ending February 2, 2019, the Company expects
diluted earnings per share to be in the range of $4.73 to $4.83, which
represents a 17% to 20% increase over the prior year's $4.04. The
Company's full-year guidance includes an expected benefit of
approximately $.73 to $.75 per share due to items related to the 2017
Tax Act (primarily the lower U.S. corporate income tax rate). Excluding
this benefit, the Company expects adjusted diluted earnings per share to
be in the range of $4.00 to $4.08. This would represent a 4% to 6%
increase over the prior year's adjusted $3.85, which excludes the items
described above. This guidance reflects an assumption that wage
increases will negatively impact EPS growth by 2%. This EPS outlook is
based upon estimated consolidated comparable store sales growth of 1% to
2%.

For the first quarter of Fiscal 2019, the Company expects diluted
earnings per share to be in the range of $1.00 to $1.02, compared to
$.82 last year. Excluding an expected benefit of approximately $.15 to
$.16 per share due to the 2017 Tax Act (primarily the lower U.S.
corporate income tax rate), the Company expects adjusted earnings per
share to be in the range of $.85 to $.87. This guidance reflects an
assumption that wage increases will negatively impact EPS growth by 2%.
This EPS outlook is based upon estimated consolidated comparable store
sales growth of 1% to 2%.

The Company's earnings guidance for the full year and first quarter of
Fiscal 2019 assumes that currency exchange rates will remain unchanged
from the levels at the beginning of the first quarter.

Stores by Concept

During the fiscal year ended February 3, 2018, the Company increased its
store count by 258 stores to a total of 4,070 stores. The Company
increased square footage by 4% over the same period last year.

               
Store Locations1       Gross Square Feet2
FY2018 FY2018
        (in millions)
        Beginning       End       Beginning       End
In the U.S.:                                
TJ Maxx       1,186       1,223       33.5       34.1
Marshalls       1,035       1,062       31.0       31.2
HomeGoods       579       667       14.2       15.8
Sierra Trading Post       12       27       0.3       0.6
Homesense       0       4       0.0       0.1
In Canada:                                
Winners       255       264       7.2       7.4
HomeSense       106       117       2.5       2.7
Marshalls       57       73       1.7       2.0
In Europe:                                
TK Maxx       503       540       15.0       15.8
Homesense       44       55       0.9       1.1

In Australia:

                               
TK Maxx       35       38       0.8       0.8
                                 
TJX       3,812       4,070       106.9       111.7

1

Store counts above include both banners within a combo or a
superstore.

2

Square feet figures may not foot due to rounding.

About The TJX Companies, Inc.

The TJX Companies, Inc. is the leading off-price retailer of apparel and
home fashions in the U.S. and worldwide. As of February 3, 2018, the end
of the Company's fiscal year, the Company operated a total of 4,070
stores in nine countries, the United States, Canada, the United Kingdom,
Ireland, Germany, Poland, Austria, the Netherlands, and Australia, and
three e-commerce sites. These include 1,223 TJ Maxx, 1,062 Marshalls,
667 HomeGoods, 27 Sierra Trading Post, and 4 Homesense stores, as well
as tjmaxx.com
and sierratradingpost.com
in the United States; 264 Winners, 117 HomeSense, and 73 Marshalls
stores in Canada; 540 TK Maxx and 55 Homesense stores, as well as tkmaxx.com,
in Europe; and 38 TK Maxx stores in Australia. TJX's press releases and
financial information are available at tjx.com.

Fourth Quarter and Fiscal 2018 Earnings
Conference Call

At 11:00 a.m. ET today, Ernie Herrman, Chief Executive Officer and
President of TJX, will hold a conference call to discuss the Company's
fourth quarter and full year Fiscal 2018 results, operations, business
trends, and plans for Fiscal 2019. A real-time webcast of the call will
be available to the public at tjx.com.
A replay of the call will also be available by dialing (866) 367-5577
through Wednesday, March 14, 2018, or at tjx.com.

Non-GAAP Financial Information

The Company has used non-GAAP financial measures in this press release.
Adjusted financial measures refer to financial information adjusted to
exclude from financial measures prepared in accordance with accounting
principles generally accepted in the United States (GAAP) items
identified in this press release. The Company believes that the
presentation of adjusted financial results provides additional
information on comparisons between periods including underlying trends
of its business by excluding certain items that affect overall
comparability. Non-GAAP financial measures should be considered in
addition to, and not as an alternative for, the Company's reported
results prepared in accordance with GAAP.

Important Information at Website

Archived versions of the Company's conference calls are available in the
Investors section of tjx.com
after they are no longer available by telephone as are reconciliations
of non-GAAP financial measures to GAAP financial measures and other
financial information. The Company routinely posts information that may
be important to investors in the Investors section at tjx.com.
The Company encourages investors to consult that section of its website
regularly.

Forward-looking Statement

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT
OF 1995: Various statements made in this release are forward-looking and
involve a number of risks and uncertainties. All statements that address
activities, events or developments that we intend, expect or believe may
occur in the future are forward-looking statements. The following are
some of the factors that could cause actual results to differ materially
from the forward-looking statements: execution of buying strategy and
inventory management; operational and business expansion and management
of large size and scale; customer trends and preferences; various
marketing efforts; competition; personnel recruitment, training and
retention; labor costs and workforce challenges; data security;
information systems and new technology; economic conditions and consumer
spending; adverse or unseasonable weather; serious disruptions or
catastrophic events; disruptions in the second half of the fiscal year;
corporate and retail banner reputation; quality, safety and other issues
with merchandise; expanding international operations; merchandise
importing; commodity availability and pricing; fluctuations in currency
exchange rates; fluctuations in quarterly operating results and market
expectations; mergers, acquisitions, or business investments and
divestitures, closings or business consolidations; compliance with laws,
regulations and orders and changes in laws, regulations and applicable
accounting standards; outcomes of litigation, legal proceedings and
other legal or regulatory matters; tax matters; real estate activities;
cash flow and other factors that may be described in our filings with
the Securities and Exchange Commission. We do not undertake to publicly
update or revise our forward-looking statements even if experience or
future changes make it clear that any projected results expressed or
implied in such statements will not be realized.

 

The TJX Companies, Inc. and Consolidated Subsidiaries
Financial
Summary
(Unaudited)
(In Thousands Except Per Share
Amounts)

                           

14 Weeks Ended

 

13 Weeks Ended

53 Weeks Ended

 

52 Weeks Ended

February 3,
2018

     

January 28,
2017

     

February 3,
2018

     

January 28,
2017

 
Net sales $ 10,960,720 $ 9,467,647 $ 35,864,664 $ 33,183,744
 
Cost of sales, including buying and occupancy costs 7,849,400 6,786,777 25,502,167 23,565,754
Selling, general and administrative expenses 1,895,601 1,577,595 6,375,071 5,768,467
Impairment of goodwill and other long lived assets 99,250 - 99,250 -
Loss on early extinguishment of debt - - - 51,773
Pension settlement charge - - - 31,173
Interest expense, net   4,089   9,616   31,588   43,534
 
Income before provision for income taxes 1,112,380 1,093,659 3,856,588 3,723,043
Provision for income taxes   235,104   415,731   1,248,640   1,424,809
 
Net income $ 877,276 $ 677,928 $ 2,607,948 $ 2,298,234
 
Diluted earnings per share $ 1.37 $ 1.03 $ 4.04 $ 3.46
 
Cash dividends declared per share $ 0.3125 $ 0.26 $ 1.25 $ 1.04
 
Weighted average common shares – diluted 638,403 657,386 646,105 664,432
 

 

The TJX Companies, Inc. and Consolidated Subsidiaries
Condensed
Balance Sheets
(Unaudited)
(In Millions)

               

February 3,
2018

January 28,
2017

 
ASSETS
Current assets:
Cash and cash equivalents $ 2,758.5 $ 2,929.8
Short-term investments 506.2 543.2
Accounts receivable and other current assets 1,033.8 632.8
Merchandise inventories   4,187.2   3,645.0
 
Total current assets   8,485.7   7,750.8
 
Property, net of depreciation 5,006.0 4,532.9
 
Goodwill 100.1 195.9
Other assets   466.2   404.2
 
TOTAL ASSETS $ 14,058.0 $ 12,883.8
 
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 2,488.4 $ 2,230.9
Accrued expenses and other current liabilities   2,637.1   2,526.7
 
Total current liabilities   5,125.5   4,757.6
 
Other long-term liabilities 1,320.5 1,074.0
Non-current deferred income taxes, net 233.1 314.0
Long-term debt 2,230.6 2,227.6
 
Shareholders' equity   5,148.3   4,510.6
 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 14,058.0 $ 12,883.8
 

               

The TJX Companies, Inc. and Consolidated Subsidiaries
Condensed
Statements of Cash Flows
(Unaudited)
(In Millions)

 

53 Weeks Ended

52 Weeks Ended

February 3,
2018

January 28,
2017

 
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 2,607.9 $ 2,298.2
Depreciation and amortization 726.0 658.8
Loss in early extinguishment of debt - 51.8
Pension settlement charge - 31.2
Impairment of goodwill and other long lived assets 99.3

-

Deferred income tax (benefit) (137.4 ) (5.5 )
Share-based compensation 101.4 102.3
(Increase) in accounts receivable and other assets (380.2 ) (32.8 )
(Increase) decrease in merchandise inventories (450.4 ) 11.9
Increase in accounts payable 205.1 48.2
Increase in accrued expenses and other liabilities 240.0 536.1
Other   13.9     (73.3 )
 
Net cash provided by operating activities   3,025.6     3,626.9  
 
CASH FLOWS FROM INVESTING ACTIVITIES:
Property additions (1,057.6 ) (1,024.7 )
Purchases of investments (861.2 ) (717.0 )
Sales and maturities of investments 906.1 529.1
Other   -     (2.3 )
Net cash (used in) investing activities   (1,012.7 )   (1,214.9 )
 
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of long-term debt - 992.5
Cash payments for extinguishment of debt - (425.6 )
Payments for repurchase of common stock (1,644.6 ) (1,700.0 )
Proceeds from issuance of common stock 133.7 164.2
Shares used to pay withholding (19.3 ) (25.0 )
Cash dividends paid (764.0 ) (651.0 )
Other   (3.1 )   58.0  
Net cash (used in) financing activities   (2,297.3 )   (1,586.9 )
 
Effect of exchange rate changes on cash   113.1     9.2  
 
Net (decrease) increase in cash and cash equivalents (171.3 ) 834.3
Cash and cash equivalents at beginning of year   2,929.8     2,095.5  
 
Cash and cash equivalents at end of period $ 2,758.5   $ 2,929.8  
 

           

The TJX Companies, Inc. and Consolidated Subsidiaries
Selected
Information by Major Business Segment
(Unaudited)
(In
Thousands)

               

14 Weeks Ended

13 Weeks Ended

53 Weeks Ended

52 Weeks Ended

February 3,
2018

     

January 28,
2017

     

February 3,
2018

     

January 28,
2017

Net sales:
In the United States:
Marmaxx $ 6,698,852 $ 6,028,846 $ 22,249,105 $ 21,246,034
HomeGoods 1,609,893 1,329,135 5,116,328 4,404,607
TJX Canada 1,088,249 873,296 3,642,282 3,171,127
TJX International   1,563,726   1,236,370   4,856,949   4,361,976
Total net sales $ 10,960,720 $ 9,467,647 $ 35,864,664 $ 33,183,744
 
Segment profit:
In the United States:
Marmaxx $ 849,220 $ 840,807 $ 2,949,358 $ 2,995,045
HomeGoods 217,239 197,782 674,511 613,778
TJX Canada 137,532 91,475 530,113 413,417
TJX International   116,333   90,472   249,226   235,519
Total segment profit 1,320,324 1,220,536 4,403,208 4,257,759
 
General corporate expense 203,855 117,261 515,032 408,236
 
Loss on early extinguishment of debt - - - 51,773
Pension settlement charge - - - 31,173
 
Interest expense, net   4,089   9,616   31,588   43,534
Income before provision for income taxes $ 1,112,380 $ 1,093,659 $ 3,856,588 $ 3,723,043
 

 

The TJX Companies, Inc. and Consolidated Subsidiaries
Notes
to Consolidated Condensed Statements

   
1. During the fourth quarter ended February 3, 2018, TJX repurchased
5.4 million shares of its common stock at a cost of $405 million.
For the twelve months ended February 3, 2018, TJX repurchased 22.3
million shares of its common stock at a cost of $1.7 billion. In
February 2018, the Company announced that the Board of Directors
approved an additional $2.5 to $3.0 billion stock repurchase
program. TJX records the repurchase of its stock on a cash basis,
and the amounts reflected in the financial statements may vary from
the above amounts due to the timing of settlement of repurchases.
 
2. During the fourth quarter ended February 3, 2018, the Company
recorded a $99.3 million impairment charge, primarily goodwill,
related to Sierra Trading Post.
 
3.

On December 22, 2017, the 2017 Tax Cuts and Jobs Act (the 2017 Tax
Act) was enacted into law which among other things, includes a
one-time mandatory transition tax on accumulated foreign earnings
and a reduction of the U.S. corporate income tax rate to 21
percent, effective January 1, 2018. The change in the U.S. income
tax rate also requires us to revalue our deferred tax assets and
liabilities. Although we are still evaluating the impact of the
2017 Tax Act on TJX, the Company recorded an estimated reduction
in our fourth quarter and full year tax provision of $173 million.
The Company has reinvested a portion of these tax benefits by
approving a discretionary bonus to eligible non-bonus plan
Associates globally, providing an incremental contribution to the
Company's defined contribution retirement plans for eligible
Associates in the U.S. and internationally, as well as making
contributions to the Company's charitable foundations. These
initiatives reduced the fiscal 2018 fourth quarter and full year
pre-tax income by $100 million. The tax benefits recognized due to
the 2017 Tax Act, offset by the after-tax impact of the fourth
quarter charges, result in a net benefit to net income of $110
million, or $0.17 per share for the fiscal 2018 fourth quarter and
full year.

 
4. During the third quarter ended October 29, 2016, the Company
redeemed its $375 million 6.95% notes prior to their scheduled
maturity of April 15, 2019 and recorded a pre-tax loss on the early
extinguishment of this debt of $51.8 million.
 
5. During the third quarter ended October 29, 2016, the Company offered
eligible, former TJX Associates, who had not yet commenced receiving
their pension benefit, an opportunity to receive a lump sum payout
of their vested pension benefit. The payment and settlement of these
pension benefits by the Company's pension plan to participants who
accepted this offer resulted in a non-cash settlement charge which
reduced fiscal 2017 pre-tax income by $31.2 million.
 

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