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Financial Instruments
 6 Months Ended
Jul. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Financial Instruments Financial Instruments
As a result of its operating and financing activities, TJX is exposed to market risks from changes in interest and foreign currency exchange rates and fuel costs. These market risks may adversely affect TJX’s operating results and financial position. TJX seeks to minimize risk from changes in interest and foreign currency exchange rates and fuel costs through the use of derivative financial instruments when and to the extent deemed appropriate. TJX does not use derivative financial instruments for trading or other speculative purposes and does not use any leveraged derivative financial instruments. TJX recognizes all derivative instruments as either assets or liabilities in the Consolidated Balance Sheet and measures those instruments at fair value. The fair values of the derivatives are classified as assets or liabilities, current or non-current, based upon valuation results and settlement dates of the individual contracts. Changes to the fair value of derivative contracts that do not qualify for hedge accounting are reported in earnings in the period of the change. For derivatives that qualify for hedge accounting, changes in the fair value of the derivatives are either recorded in shareholders’ equity as a component of Accumulated other comprehensive loss or are recognized currently in earnings, along with an offsetting adjustment against the basis of the item being hedged.
Diesel Fuel Contracts
TJX hedges portions of its estimated notional diesel requirements based on the diesel fuel expected to be consumed by independent freight carriers transporting TJX’s inventory. Independent freight carriers transporting TJX’s inventory charge TJX a mileage surcharge based on the price of diesel fuel. The hedge agreements are designed to mitigate the volatility of diesel fuel pricing, and the resulting per mile surcharges payable by TJX, by setting a fixed price per gallon for the period being hedged. During fiscal 2022, TJX entered into agreements to hedge a portion of its estimated notional diesel requirements for fiscal 2023, and during the first six months of fiscal 2023, TJX entered into agreements to hedge a portion of its estimated notional diesel requirements for the first six months of fiscal 2024. The hedge agreements outstanding at July 30, 2022 relate to approximately 54% of TJX’s estimated notional diesel requirements for the remainder of fiscal 2023 and approximately 47% of TJX’s estimated notional diesel requirements for the first six months of fiscal 2024. These diesel fuel hedge agreements will settle throughout fiscal 2023 and throughout the first seven months of fiscal 2024. TJX elected not to apply hedge accounting to these contracts.
Foreign Currency Contracts
TJX enters into forward foreign currency exchange contracts to obtain economic hedges on portions of merchandise purchases made and anticipated to be made by the Company’s operations in currencies other than their respective functional currencies. The contracts outstanding at July 30, 2022 cover merchandise purchases the Company is committed to over the next several months. Additionally, TJX’s operations in Europe are subject to foreign currency exposure as a result of their buying function being centralized in the U.K. All merchandise is purchased centrally in the U.K. and then shipped and billed to the retail entities in other countries. This intercompany billing to TJX’s European businesses’ Euro denominated operations creates exposure to the central buying entity for changes in the exchange rate between the Euro and British Pound. A portion of the inflows of Euros to the central buying entity provides a natural hedge for merchandise purchased from third-party vendors that is denominated in Euros. TJX calculates any excess Euro exposure each month and enters into forward contracts of approximately 30 days' duration to mitigate this exposure.
TJX also enters into derivative contracts, generally designated as fair value hedges, to hedge intercompany debt. The changes in fair value of these contracts are recorded in Selling, general and administrative expenses and are offset by marking the underlying item to fair value in the same period. Upon settlement, the realized gains and losses on these contracts are offset by the realized gains and losses of the underlying item in Selling, general and administrative expenses.
The following is a summary of TJX’s derivative financial instruments, related fair value and balance sheet classification at July 30, 2022:
In thousandsPayReceiveBlended
Contract
Rate		Balance Sheet
Location		Current
Asset
U.S.$		Current
(Liability)
U.S.$
Net Fair
Value in
U.S.$ at
July 30,
2022
Fair value hedges:
Intercompany balances, primarily debt related:
€60,000 £50,568 0.8428 Prepaid Exp$343 $— $343 
A$170,000 U.S.$119,579 0.7034 Prepaid Exp / (Accrued Exp)810 (1,040)(230)
U.S.$74,646 £55,000 0.7368 (Accrued Exp)— (6,831)(6,831)
£150,000 U.S.$203,667 1.3578 Prepaid Exp19,059 — 19,059 
€200,000 U.S.$223,126 1.1156 Prepaid Exp / (Accrued Exp)14,663 (117)14,546 
Economic hedges for which hedge accounting was not elected:
Diesel fuel contracts
Fixed on
2.6M – 3.9M
gal per month
Float on
2.6M – 3.9M
gal per month
N/APrepaid Exp38,234 — 38,234 
Intercompany billings in TJX International, primarily merchandise related:
€205,500 £173,888 0.8462 Prepaid Exp2,145 — 2,145 
Merchandise purchase commitments:
C$807,155 U.S.$635,000 0.7867 Prepaid Exp / (Accrued Exp)6,657 (984)5,673 
C$25,978 €19,000 0.7314 (Accrued Exp)— (685)(685)
£439,682 U.S.$569,000 1.2941 Prepaid Exp / (Accrued Exp)29,989 (2,151)27,838 
A$71,070 U.S.$50,750 0.7141 Prepaid Exp / (Accrued Exp)1,055 (364)691 
zł701,000 £124,092 0.1770 Prepaid Exp / (Accrued Exp)2,215 (34)2,181 
U.S.$113,734 €104,500 0.9188 Prepaid Exp / (Accrued Exp)110 (5,970)(5,860)
Total fair value of derivative financial instruments$115,280 $(18,176)$97,104 
The following is a summary of TJX’s derivative financial instruments, related fair value and balance sheet classification at January 29, 2022:
In thousandsPayReceiveBlended
Contract
Rate		Balance Sheet
Location		Current
Asset
U.S.$		Current
(Liability)
U.S.$
Net Fair
Value in
U.S.$ at
January 29,
2022
Fair value hedges:
Intercompany balances, primarily debt related:
zł25,000 £4,541 0.1816 Prepaid Exp$72 $— $72 
€60,000 £50,568 0.8428 Prepaid Exp111 — 111 
A$170,000 U.S.$122,061 0.7180 Prepaid Exp2,047 — 2,047 
U.S.$74,646 £55,000 0.7368 (Accrued Exp)— (918)(918)
€200,000 U.S.$230,319 1.1516 Prepaid Exp4,535 — 4,535 
Economic hedges for which hedge accounting was not elected:
Diesel fuel contracts
Fixed on
3.6M – 4.0M
gal per month
Float on
3.6M– 4.0M
gal per month
N/APrepaid Exp23,649 — 23,649 
Intercompany billings in TJX International, primarily merchandise related:
€91,000 £75,894 0.8340 (Accrued Exp)— (145)(145)
Merchandise purchase commitments:
C$987,756 U.S.$783,000 0.7927 Prepaid Exp / (Accrued Exp)6,641 (80)6,561 
C$38,138 €26,500 0.6948 (Accrued Exp)— (248)(248)
£325,482 U.S.$442,100 1.3583 Prepaid Exp / (Accrued Exp)6,023 (632)5,391 
zł453,000 £82,112 0.1813 Prepaid Exp / (Accrued Exp)744 (449)295 
A$65,551 U.S.$47,500 0.7246 Prepaid Exp1,270 — 1,270 
U.S.$66,989 €59,000 0.8807 (Accrued Exp)— (820)(820)
Total fair value of derivative financial instruments$45,092 $(3,292)$41,800 
The following is a summary of TJX’s derivative financial instruments, related fair value and balance sheet classification at July 31, 2021:
In thousandsPayReceiveBlended
Contract
Rate		Balance Sheet
Location		Current
Asset
U.S.$		Current
(Liability)
U.S.$
Net Fair 
Value in 
U.S.$ at 
July 31,
2021
Fair value hedges:
Intercompany balances, primarily debt related:
zł45,000 £8,846 0.1966 Prepaid Exp$562 $— $562 
A$110,000 U.S.$84,198 0.7654 Prepaid Exp3,100 — 3,100 
U.S.$75,102 £55,000 0.7323 Prepaid Exp1,351 — 1,351 
£250,000 U.S.$346,344 1.3854 Prepaid Exp / (Accrued Exp)426 (1,504)(1,078)
€170,000 U.S.$207,623 1.2213 Prepaid Exp / (Accrued Exp)5,169 (143)5,026 
C$150,000 U.S.$124,009 0.8267 Prepaid Exp3,698 — 3,698 
Economic hedges for which hedge accounting was not elected:
Diesel fuel contracts
Fixed on
3.3M – 4.0M
gal per month
Float on
3.3M – 4.0M
gal per month
N/APrepaid Exp21,805 — 21,805 
Intercompany billings in TJX International, primarily merchandise related:
€98,000 £84,053 0.8577 Prepaid Exp343 — 343 
Merchandise purchase commitments:
C$630,947 U.S.$512,000 0.8115 Prepaid Exp / (Accrued Exp)7,066 (1,132)5,934 
C$34,928 €23,500 0.6728 Prepaid Exp / (Accrued Exp)93 (161)(68)
£396,740 U.S.$555,900 1.4012 Prepaid Exp / (Accrued Exp)5,202 (678)4,524 
A$52,396 U.S.$39,225 0.7486 Prepaid Exp / (Accrued Exp)656 (36)620 
zł400,100 £75,659 0.1891 Prepaid Exp / (Accrued Exp)961 (126)835 
U.S.$55,198 €45,000 0.8152 (Accrued Exp)— (1,713)(1,713)
Total fair value of derivative financial instruments$50,432 $(5,492)$44,940 
The impact of derivative financial instruments on the Consolidated Statements of Income is presented below:
  Amount of Gain (Loss) Recognized
in Income by Derivative
 
 Location of Gain (Loss)
Recognized in Income by
Derivative
Thirteen Weeks EndedTwenty-Six Weeks Ended
In thousandsJuly 30,
2022		July 31,
2021		July 30,
2022		July 31,
2021
Fair value hedges:
Intercompany balances, primarily debt relatedSelling, general and administrative expenses$8,961 $15,417 $33,356 $12,553 
Economic hedges for which hedge accounting was not elected:
Diesel fuel contractsCost of sales, including buying and occupancy costs9,356 7,276 53,529 20,846 
Intercompany billings in TJX International, primarily merchandise relatedCost of sales, including buying and occupancy costs252 3,427 (118)3,545 
Merchandise purchase commitmentsCost of sales, including buying and occupancy costs7,465 11,710 48,394 (4,259)
Gain recognized in income$26,034 $37,830 $135,161 $32,685