Financial Instruments (Tables)

3 Months Ended

Apr. 30, 2016

The following is a summary of TJX’s derivative financial instruments, related fair value and balance sheet classification at April 30, 2016:


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 April 30, 2016

Fair value hedges:

Intercompany balances, primarily debt and related interest

	zł	87,073	C$	29,950		0.3440	Prepaid Exp	$	1,085	$	—		$	1,085

	zł	45,000	£	7,403		0.1645	(Accrued Exp)		—		(933	)		(933	)

	€	53,000	£	40,820		0.7702	(Accrued Exp)		—		(1,637	)		(1,637	)

	U.S.$	77,957	£	55,000		0.7055	Prepaid Exp		2,523		—			2,523

Economic hedges for which hedge accounting was not elected:

Diesel contracts		Fixed on 1.9M – 2.2M gal per month		Float on 1.9M – 2.2M gal per month		N/A	(Accrued Exp)		—		(4,875	)		(4,875	)

Intercompany billings in Europe, primarily merchandise related	€	85,000	£	67,798		0.7976	Prepaid Exp		1,538		—			1,538

Merchandise purchase commitments
	C$	492,465	U.S.$	362,900		0.7369	(Accrued Exp)		—		(29,356	)		(29,356	)

	C$	20,941	€	14,000		0.6685	(Accrued Exp)		—		(639	)		(639	)

	£	146,518	U.S.$	212,550		1.4507	Prepaid Exp / (Accrued Exp)		2,027		(3,635	)		(1,608	)

	zł	216,245	£	38,136		0.1764	Prepaid Exp / (Accrued Exp)		293		(1,133	)		(840	)

	U.S.$	38,434	€	34,051		0.8860	Prepaid Exp		634		—			634


Total fair value of financial instruments								$	8,100	$	(42,208	)	$	(34,108	)

The following is a summary of TJX’s derivative financial instruments, related fair value and balance sheet classification at May 2, 2015:


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 May 2, 2015

Fair value hedges:

Intercompany balances, primarily debt and related interest

	zł	94,073	C$	32,344		0.3438	Prepaid Exp / (Accrued Exp)	$	801	$	(13	)	$	788

	€	39,000	£	30,988		0.7946	Prepaid Exp		3,165		—			3,165

	€	19,850	U.S.$	22,647		1.1409	Prepaid Exp		314		—			314

	U.S.$	83,400	£	55,000		0.6595	(Accrued Exp)		—		(223	)		(223	)

Economic hedges for which hedge accounting was not elected:

Diesel contracts		Fixed on 2.6M – 3.0M gal per month		Float on 2.6M – 3.0M gal per month		N/A	(Accrued Exp)		—		(7,311	)		(7,311	)
Merchandise purchase commitments
	C$	461,464	U.S.$	375,455		0.8136	Prepaid Exp / (Accrued Exp)		3,200		(6,926	)		(3,726	)

	C$	14,596	€	10,500		0.7194	Prepaid Exp / (Accrued Exp)		54		(297	)		(243	)

	£	167,715	U.S.$	256,000		1.5264	Prepaid Exp / (Accrued Exp)		3,637		(1,603	)		2,034

	zł	169,058	£	30,156		0.1784	Prepaid Exp / (Accrued Exp)		57		(773	)		(716	)

	U.S.$	22,198	€	20,228		0.9113	Prepaid Exp / (Accrued Exp)		637		(163	)		474


Total fair value of financial instruments								$	11,865	$	(17,309	)	$	(5,444	)

Presented below is the impact of derivative financial instruments on the statements of income for the periods shown:


		Amount of Gain (Loss) Recognized in Income by Derivative
		Thirteen Weeks Ended
In thousands	Location of Gain (Loss) Recognized in Income by Derivative	April 30, 2016			May 2, 2015
Fair value hedges:

Intercompany balances, primarily debt and related interest	Selling, general and administrative expenses	$	877		$	2,044

Economic hedges for which hedge accounting was not elected:
Diesel fuel contracts	Cost of sales, including buying and occupancy costs		2,287			2,200

Intercompany billings in Europe, primarily merchandise related	Cost of sales, including buying and occupancy costs		(2,108	)		—

Merchandise purchase commitments	Cost of sales, including buying and occupancy costs		(44,988	)		(13,652	)


Gain / (loss) recognized in income		$	(43,932	)	$	(9,408	)