Financial Instruments (Tables)

9 Months Ended

Oct. 27, 2012

Derivative Financial Instruments, Related Fair Value and Balance Sheet Classification

The following is a summary of TJX’s derivative financial instruments, related fair value and balance sheet classification at October 27, 2012:


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 27, 2012

Fair value hedges:

Intercompany balances, primarily short-term debt and related interest

	£	40,000	C$	63,330		1.5833	(Accrued Exp)	$	—	$	(1,082	)	$	(1,082	)

	zł	141,500	C$	42,120		0.2977	Prepaid Exp / (Accrued Exp)		72		(1,844	)		(1,772	)

	€	44,281	£	36,742		0.8297	Prepaid Exp / (Accrued Exp)		1,975		(163	)		1,812

	€	90,292	U.S.$	122,237		1.3538	Prepaid Exp		5,369		—			5,369

	U.S.$	85,389	£	55,000		0.6441	Prepaid Exp		3,150		—			3,150

	zł	16,324	£	3,131		0.1918	(Accrued Exp)		—		(61	)		(61	)

Economic hedges for which hedge accounting was not elected:

Diesel contracts	Fixed on 300K – 1.7M gal per month			Float on 300K – 1.7M gal per month		N/A	Prepaid Exp		1,832		—			1,832

Merchandise purchase commitments

	C$	346,351	U.S.$	348,853		1.0072	Prepaid Exp / (Accrued Exp)		2,888		(801	)		2,087

	C$	6,130	€	4,900		0.7993	Prepaid Exp		200		—			200

	£	93,494	U.S.$	149,400		1.5980	Prepaid Exp / (Accrued Exp)		300		(1,462	)		(1,162	)

	£	8,126	€	10,000		1.2306	Prepaid Exp / (Accrued Exp)		53		(212	)		(159	)

	U.S.$	8,232	€	6,543		0.7948	Prepaid Exp / (Accrued Exp)		240		(6	)		234


Total fair value of financial instruments								$	16,079	$	(5,631	)	$	10,448

The following is a summary of TJX’s derivative financial instruments, related fair value and balance sheet classification at October 29, 2011:


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, 2011

Fair value hedges:

Intercompany balances, primarily short-term debt and related interest

	£	85,000	C$	134,892		1.5870	Prepaid Exp / (Accrued Exp)	$	395	$	(1,628	)	$	(1,233	)

	€	25,000	£	21,265		0.8506	(Accrued Exp)		—		(1,094	)		(1,094	)

	€	75,292	U.S.$	101,227		1.3445	Prepaid Exp / (Accrued Exp)		103		(5,375	)		(5,272	)

	U.S.$	85,894	£	55,000		0.6403	Prepaid Exp		2,744		—			2,744

Economic hedges for which hedge accounting was not elected:

Diesel contracts		Fixed on 400K – 1.5M gal per month		Float on 400K – 1.5M gal per month		N/A	Prepaid Exp		775		—			775

Merchandise purchase commitments

	C$	303,058	U.S.$	309,945		1.0227	Prepaid Exp / (Accrued Exp)		6,128		(1,246	)		4,882

	C$	6,173	€	4,500		0.7290	Prepaid Exp		142		—			142

	£	41,615	U.S.$	67,000		1.6100	Prepaid Exp / (Accrued Exp)		780		(899	)		(119	)

	£	42,422	€	49,000		1.1551	Prepaid Exp		878		—			878

	U.S.$	3,838	€	2,693		0.7017	Prepaid Exp / (Accrued Exp)		5		(34	)		(29	)


Total fair value of financial instruments								$	11,950	$	(10,276	)	$	1,674

Impact of Derivative Financial Instruments on Statements of Income

The impact of derivative financial instruments on the statements of income during the third quarter of fiscal 2013 and fiscal 2012 are as follows:


		Amount of Gain (Loss) Recognized in Income by Derivative
		Thirteen Weeks Ended
In thousands	Location of Gain (Loss) Recognized in Income by Derivative	October 27, 2012			October 29, 2011
Fair value hedges:

Intercompany balances, primarily short-term debt and related interest	Selling, general and administrative expenses	$	(7,227	)	$	(2,162	)

Economic hedges for which hedge accounting was not elected:

Diesel fuel contracts	Cost of sales, including buying and occupancy costs		1,837			(975	)

Merchandise purchase commitments	Cost of sales, including buying and occupancy costs		2,649			15,819


Gain (loss) recognized in income		$	(2,741	)	$	12,682

The impact of derivative financial instruments on the statements of income during the first nine months of fiscal 2013 and fiscal 2012 are as follows:


		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 27, 2012		October 29, 2011
Fair value hedges:

Intercompany balances, primarily short-term debt and related interest	Selling, general and administrative expenses	$	6,038	$	(3,140	)

Economic hedges for which hedge accounting was not elected:

Diesel fuel contracts	Cost of sales, including buying and occupancy costs		134		28

Merchandise purchase commitments	Cost of sales, including buying and occupancy costs		118		7,927

Gain (loss) recognized in income		$	6,290	$	4,815

- Definition

Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges.

+ References+ Details

- Definition

Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

+ References+ Details