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Acquisition of Trade Secret
 12 Months Ended
Jan. 30, 2016
Acquisition of Trade Secret

Note B.    Acquisition of Trade Secret

On October 24, 2015, TJX purchased Trade Secret, an off-price retailer that operates 35 stores in Australia, for approximately AUD$83 million (U.S. $59 million), which is subject to customary post-closing adjustments.

The acquisition was accounted for using the purchase method of accounting. Accordingly, the purchase price has been allocated to the tangible assets and liabilities and intangible assets acquired, based on their estimated fair values.

The following table presents the allocation of the purchase price (after preliminary adjustment for customary post-closing adjustments) to the assets and liabilities acquired based on their estimated fair values as of October 24, 2015:

 

In thousands   

Allocation of

purchase price

  

Current assets

    $ 25,962   

Property and equipment

      10,184   

Goodwill and intangible assets

      37,225   

 

  

Total assets acquired

      73,371   

 

  

Total liabilities assumed

      (14,071 ) 

 

  

Net assets acquired

    $ 59,300   

 

  

As is customary, the amounts above may be further adjusted up to one year after date of acquisition.

Goodwill and intangible assets include identified intangible assets of $12 million for the value of the tradename “Trade Secret” which is being amortized over 10 years, and $25 million representing goodwill (See Note A).

The operating results of Trade Secret have been included in TJX’s consolidated financial statements from the date of acquisition and Trade Secret is now part of the TJX International segment along with our European operations. Pro forma results of operations assuming the acquisition of Trade Secret occurred as of the beginning of fiscal 2015 have not been presented as the inclusion of the results of operations for the acquired business would not have produced a material impact on TJX’s sales, net income or earnings per share as reported.