Company: TJX
Filing Date: 2025-08-29
Form Type: 10-Q
Source: 0000109198-25-000054
Chunk: 56

Company: TJX COMPANIES INC /DE/
Filing Date: 2025-08-29
Form: 10-Q
Item: Part I, Item 8
Chunk 56
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, reserves for uncertain tax positions and loss contingencies to be the most significant accounting policies that involve management estimates and judgments. Actual amounts could differ from these estimates, and such differences could be material.Deferred Gift Card RevenueThe following table presents deferred gift card revenue activity:In millionsAugust 2,2025August 3,2024Balance, beginning of year$824 $773 Deferred revenue861 889 Effect of exchange rate changes on deferred revenue9 (2)Revenue recognized(920)(940)Balance, end of period$774 $720 TJX recognized $476 million in gift card revenue for the three months ended August 2, 2025 and $485 million for the three months ended August 3, 2024. Gift cards are combined in one homogeneous pool and are not separately identifiable. As such, the revenue recognized consists of gift cards that were part of the deferred revenue balance at the beginning of the period as well as gift cards that were issued during the period. 

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Equity InvestmentsMultibrand Outlet StoresDuring fiscal 2025, the Company completed an investment for a 49% ownership stake in Multibrand Outlet Stores S.A.P.I. de C.V. (“MOS”), through a joint venture with Grupo Axo, S.A.P.I de C.V. (“Axo”). MOS is Axo’s off-price, physical store business in Mexico and includes a total of over 200 stores for its Promoda, Reduced, and Urban Store banners. TJX has the option to increase its ownership interest in the joint venture over the long term. TJX completed this investment for $193 million, inclusive of acquisition costs, during the third quarter of fiscal 2025.For the six months ended August 2, 2025, the carrying value of the Company’s equity investment in MOS was $186 million, which exceeds its share of MOS’ net assets by approximately $148 million. This difference primarily consists of goodwill and tradenames. Tradenames are definite-lived intangible assets and are amortized straight-line over their useful lives of 10 years. The carrying value of this equity investment is adjusted for the Company’s share of MOS’s results, tradename amortization, cumulative translation adjustments and additional capital contributions. The cumulative translation adjustment is recorded in the Consolidated Balance Sheets as a component of Accumulated other comprehensive (loss) income.Brands for LessDuring fiscal 2025, the Company completed an investment for a 35% ownership stake in privately held Brands for