XML 115 R20.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Income Taxes | 12 Months Ended
--- | ---
Feb. 01, 2014
Income Taxes | Note L. Income Taxes The provision for income taxes includes the following:
|  | Fiscal Year Ended |
In thousands |  | February 1, 2014 |  |  | February 2, 2013 |  |  | January 28, 2012 |
|  |  |  |  | (53 weeks) |  |  |  |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 815,811 |  |  | $ | 842,149 |  |  | $ | 554,847 |
State |  |  | 177,009 |  |  |  | 162,200 |  |  |  | 126,237 |
Foreign |  |  | 136,626 |  |  |  | 153,083 |  |  |  | 99,463 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 73,206 |  |  |  | 22,394 |  |  |  | 131,527 |
State |  |  | 5,928 |  |  |  | 1,583 |  |  |  | 6,202 |
Foreign |  |  | (26,487 | ) |  |  | (10,745 | ) |  |  | (2,952) |
Provision for income taxes |  | $ | 1,182,093 |  |  | $ | 1,170,664 |  |  | $ | 915,324 |
Income from continuing operations before income taxes includes foreign pre-tax income of $572.6 million in fiscal 2014, $559.7 million in fiscal 2013 and $319.4 million in fiscal 2012. TJX had net deferred tax (liabilities) assets as follows:
|  | Fiscal Year Ended |
In thousands |  | February 1, 2014 |  |  | February 2, 2013 |
Deferred tax assets: |  |  |  |  |  |  |  |
Net operating loss carryforwards |  | $ | 25,711 |  |  | $ | 33,461 |
Reserve for former operations |  |  | 24,603 |  |  |  | 21,856 |
Pension, stock compensation, postretirement and employee benefits |  |  | 280,381 |  |  |  | 313,671 |
Leases |  |  | 43,966 |  |  |  | 40,440 |
Computer Intrusion reserve |  |  | 4,505 |  |  |  | 5,661 |
Other |  |  | 66,984 |  |  |  | 64,394 |
Total gross deferred tax assets |  |  | 446,150 |  |  |  | 479,483 |
Valuation allowance |  |  | (4,359 | ) |  |  | (35,941 | )
Net deferred tax assets |  | $ | 441,791 |  |  | $ | 443,542 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Property, plant and equipment |  | $ | 432,262 |  |  | $ | 360,167 |
Capitalized inventory |  |  | 48,612 |  |  |  | 47,903 |
Tradename / Intangibles |  |  | 45,528 |  |  |  | 43,520 |
Undistributed foreign earnings |  |  | 217,916 |  |  |  | 233,002 |
Other |  |  | 10,397 |  |  |  | 12,217 |
Total deferred tax liabilities |  | $ | 754,715 |  |  | $ | 696,809 |
Net deferred tax (liability) |  | $ | (312,924 | ) |  | $ | (253,267 | )
The fiscal 2014 net deferred tax liability is presented on the balance sheet as a current asset of $101.6 million and a non-current asset of $31.5 million and a non-current liability of $446.1 million. The fiscal 2013 net deferred tax liability is presented on the balance sheet as a current asset of $96.2 million and a non-current liability of $349.5 million. TJX has provided for deferred U.S. taxes on all undistributed earnings through February 1, 2014 from its subsidiaries in Canada, Puerto Rico, Italy, India, Hong Kong, and Australia. For all other foreign subsidiaries, no income taxes have been provided on the approximately $528.2 million of undistributed earnings as of February 1, 2014 because such earnings are considered to be indefinitely reinvested in the business. A determination of the amount of unrecognized deferred tax liability related to the undistributed earnings is not practicable because of the complexities associated with the hypothetical calculations. As of February 1, 2014, and February 2, 2013, the Company had available for state income tax purposes net operating loss carryforwards of $35.9 million which expire, if unused, in the years 2015 through 2033. The Company has analyzed the realization of the state net operating loss carryforwards on an individual state basis. For those states where the Company has determined that it is more likely than not that the state net operating loss carryforwards will not be realized, a valuation allowance has been provided for the deferred tax asset as of February 1, 2014, and February 2, 2013 in the amount of $4.4 million and $4.6 million respectively. As of February 1, 2014, the Company had available for foreign tax purposes (primarily related to Germany and Poland) net operating loss carryforwards of $77.1 million of which $7.6 million expire, if unused, in the years 2015 through 2018 and the remaining loss carryforwards do not expire. As of February 2, 2013, the Company had available for foreign tax purposes (primarily related to Germany and Poland) net operating loss carryforwards of $108.3 million. As of February 1, 2014, the Company determined that it is more-likely-than-not that it will realize the deferred tax assets and reversed the valuation allowance previously recorded. As of February 2, 2013, the Company determined that it was more-likely-than-not that all of the net operating loss carryforwards would not be realized and a valuation allowance had been provided for the net deferred tax assets in the amount of $31.3 million. In making the assessment to reverse the valuation allowances, TJX considered and weighed all available evidence, both positive and negative. The positive and negative evidence includes the entity’s history of losses, recent profitability, and projections of future income. During fiscal 2014 it became evident that the foreign entities, which had a history of losses prior to fiscal 2013, continued to be profitable and that reversal of the valuation allowance was appropriate. TJX’s worldwide effective income tax rate was 35.6% for fiscal 2014, 38.0% for fiscal 2013 and 38.0% for fiscal 2012. The difference between the U.S. federal statutory income tax rate and TJX’s worldwide effective income tax rate is reconciled below:
|  | Fiscal Year Ended |
|  | February 1, 2014 |  |  | February 2, 2013 |  |  | January 28, 2012 |
|  |  |  |  | (53 weeks) |  |  |  |
U.S. federal statutory income tax rate |  |  | 35.0 | % |  |  | 35.0 | % |  |  | 35.0 | %
Effective state income tax rate |  |  | 3.6 |  |  |  | 3.5 |  |  |  | 3.6 |
Impact of foreign operations |  |  | (0.8 | ) |  |  | (0.3 | ) |  |  | (0.2 | )
All other |  |  | (2.2 | ) |  |  | (0.2 | ) |  |  | (0.4 | )
Worldwide effective income tax rate |  |  | 35.6 | % |  |  | 38.0 | % |  |  | 38.0 | %
TJX’s effective income tax rate decreased for fiscal 2014 as compared to fiscal 2013. The fiscal 2014 effective income tax rate decreased primarily due to fiscal 2014 third quarter tax benefits of approximately $80 million, primarily due to a reduction in our reserve for uncertain tax positions as a result of settlements with state taxing authorities and the reversal of valuation allowances against foreign net operating loss carryforwards. These benefits reduced our year-to-date effective income tax rate by 1.4 percentage points and 0.8 percentage points respectively. TJX had net unrecognized tax benefits, net of federal benefit on state issues, of $26.2 million as of February 1, 2014, $125.3 million as of February 2, 2013 and $116.6 million as of January 28, 2012. During the third quarter of fiscal 2014, the net reserve for uncertain tax positions was reduced by $104 million as a result of a settlement with state taxing authorities. The remainder of the change in the reserve during fiscal 2014 is due to various additions for uncertain tax positions taken in the current and prior years, reductions resulting from the lapse of statutes of limitations and other settlements with taxing authorities. A reconciliation of the beginning and ending gross amount of unrecognized tax benefits is as follows:
|  | Fiscal Year Ended |
In thousands |  | February 1, 2014 |  |  | February 2, 2013 |  |  | January 28, 2012 |
Balance at beginning of year |  | $ | 148,777 |  |  | $ | 144,505 |  |  | $ | 123,094 |
Additions for uncertain tax positions taken in current year |  |  | 4,212 |  |  |  | 1,949 |  |  |  | 1,131 |
Additions for uncertain tax positions taken in prior years |  |  | 5,096 |  |  |  | 3,009 |  |  |  | 63,463 |
Reductions for uncertain tax positions taken in prior years |  |  | (69,292 | ) |  |  | — |  |  |  | (40,558 | )
Reductions resulting from lapse of statute of limitations |  |  | (317 | ) |  |  | (129 | ) |  |  | — |
Settlements with tax authorities |  |  | (39,796 | ) |  |  | (557 | ) |  |  | (2,625 | )
Balance at end of year |  | $ | 48,680 |  |  | $ | 148,777 |  |  | $ | 144,505 |
Included in the gross amount of unrecognized tax benefits are items that will not impact future effective tax rates upon recognition. These items amounted to $20.8 million as of February 1, 2014, $19.8 million as of February 2, 2013 and $20.0 million as of January 28, 2012. TJX is subject to U.S. federal income tax as well as income tax in multiple state, local and foreign jurisdictions. In nearly all jurisdictions, the tax years through fiscal 2006 are no longer subject to examination. TJX’s accounting policy is to classify interest and penalties related to income tax matters as part of income tax expense. The amount of interest and penalties expensed was $4.0 million for the year ended February 1, 2014, $4.7 million for the year ended February 2, 2013 and $5.8 million for the year ended January 28, 2012. The accrued amounts for interest and penalties are $8.1 million as of February 1, 2014, $38.6 million as of February 2, 2013 and $33.0 million as of January 28, 2012. Based on the final resolution of tax examinations, judicial or administrative proceedings, changes in facts or law, expirations of statute of limitations in specific jurisdictions or other resolutions of, or changes in, tax positions, it is reasonably possible that unrecognized tax benefits for certain tax positions taken on previously filed tax returns may change materially from those represented on the financial statements as of February 1, 2014. During the next twelve months, it is reasonably possible that such circumstances may occur that would have a material effect on previously unrecognized tax benefits. As a result, the total net amount of unrecognized tax benefits may decrease, which would reduce the provision for taxes on earnings by a range estimated at $0 million to $10.4 million. On September 13, 2013 the U.S. Department of the Treasury and Internal Revenue Service released final tangible property regulations that provide guidance on the tax treatment regarding the deduction and capitalization of expenditures related to tangible property. While early adoption is available, the effective date to implement these regulations is for tax years beginning on or after January 1, 2014. The Company is currently assessing these rules and the impact to its financial statements, if any, but believes adoption of these regulations will not have a material impact on its consolidated results of operations, cash flows or financial position.

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration