Financial Instruments (Tables)

6 Months Ended

Jul. 30, 2016

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

Intercompany balances, primarily debt and related interest
	zł	57,073	C$	19,606		0.3435		Prepaid Exp	$	448	$	—		$	448
	zł	45,000	£	7,403		0.1645		(Accrued Exp)		—		(1,696	)		(1,696	)
	€	61,000	£	47,211		0.7740		(Accrued Exp)		—		(6,079	)		(6,079	)
	U.S.$	77,957	£	55,000		0.7055		(Accrued Exp)		—		(4,969	)		(4,969	)

Economic hedges for which hedge accounting was not elected:

Diesel contracts		Fixed on 1.8M – 2.2M gal per month		Float on 1.8M – 2.2M gal per month		N/A		(Accrued Exp)		—		(4,832	)		(4,832	)

Intercompany billings in Europe, primarily merchandise related	€	75,000	£	64,031		0.8537		Prepaid Exp		816		—			816

Merchandise purchase commitments
	C$	518,629	U.S.$	396,300		0.7641		Prepaid Exp / (Accrued Exp)		2,192		(4,070	)		(1,878	)
	C$	25,108	€	17,250		0.6870		Prepaid Exp / (Accrued Exp)		57		(42	)		15
	£	223,671	U.S.$	317,750		1.4206		Prepaid Exp / (Accrued Exp)		21,716		(252	)		21,464
	U.S.$	1,556	£	1,079		0.6934		(Accrued Exp)		—		(127	)		(127	)
	zł	278,776	£	50,509		0.1812		(Accrued Exp)		—		(4,474	)		(4,474	)
	U.S.$	55,093	€	48,792		0.8856		Prepaid Exp / (Accrued Exp)		154		(577	)		(423	)

Total fair value of financial instruments									$	25,383	$	(27,118	)	$	(1,735	)

The following is a summary of TJX’s derivative financial instruments, related fair value and balance sheet classification at August 1, 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 August 1, 2015
Fair value hedges:

Intercompany balances, primarily debt and related interest
	zł	87,073	C$	29,560		0.3395		(Accrued Exp)	$	—	$	(440	)	$	(440	)
	zł	25,000	£	4,547		0.1819		Prepaid Exp		496		—			496
	€	39,000	£	28,873		0.7403		Prepaid Exp		2,075		—			2,075

	€	19,850	U.S.$	22,647		1.1409		Prepaid Exp		777		—			777

	U.S.$	83,400	£	55,000		0.6595		Prepaid Exp		2,423		—			2,423

Economic hedges for which hedge accounting was not elected:

Diesel contracts		Fixed on 1.2M – 3.0M gal per month		Float on 1.2M – 3.0M gal per month		N/A		(Accrued Exp)		—		(12,414	)		(12,414	)
Merchandise purchase commitments
	C$	454,974	U.S.$	364,410		0.8009		Prepaid Exp		16,976		—			16,976
	C$	18,935	€	13,700		0.7235		Prepaid Exp		592		—			592
	£	192,482	U.S.$	297,000		1.5430		Prepaid Exp / (Accrued Exp)		493		(4,087	)		(3,594	)
	U.S.$	929	£	605		0.6512		Prepaid Exp		16		—			16
	zł	230,328	£	40,405		0.1754		Prepaid Exp		2,170		—			2,170
	U.S.$	30,473	€	27,486		0.9020		Prepaid Exp / (Accrued Exp)		185		(448	)		(263	)

Total fair value of financial instruments									$	26,203	$	(17,389	)	$	8,814

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


	Location of Gain (Loss)		Amount of Gain (Loss) Recognized in Income by Derivative
	Recognized in Income by		Thirteen Weeks Ended
In thousands	Derivative		July 30, 2016			August 1, 2015
Fair value hedges:
Intercompany balances, primarily debt and related interest		Selling, general and administrative expenses	$	(14,163	)	$	5,664
Economic hedges for which hedge accounting was not elected:
Diesel fuel contracts		Cost of sales, including buying and occupancy costs		(3,516	)		(11,491	)
Intercompany billings in Europe, primarily merchandise related		Cost of sales, including buying and occupancy costs		(6,968	)		—
Merchandise purchase commitments		Cost of sales, including buying and occupancy costs		37,709			21,195

Gain / (loss) recognized in income			$	13,062		$	15,368


	Location of Gain (Loss)		Amount of Gain (Loss) Recognized in Income by Derivative
	Recognized in Income by		Twenty-Six Weeks Ended
In thousands	Derivative		July 30, 2016			August 1, 2015
Fair value hedges:
Intercompany balances, primarily debt and related interest		Selling, general and administrative expenses	$	(13,286	)	$	7,708
Economic hedges for which hedge accounting was not elected:
Diesel fuel contracts		Cost of sales, including buying and occupancy costs		(1,229	)		(9,291	)
Intercompany billings in Europe, primarily merchandise related		Cost of sales, including buying and occupancy costs		(9,076	)		—
Merchandise purchase commitments		Cost of sales, including buying and occupancy costs		(7,279	)		7,543

Gain / (loss) recognized in income			$	(30,870	)	$	5,960