Company: TJX
Filing Date: 2025-05-30
Form Type: 10-Q
Source: 0000109198-25-000043
Chunk: 49

Company: TJX COMPANIES INC /DE/
Filing Date: 2025-05-30
Form: 10-Q
Item: Part I, Item 8
Chunk 49
---
, 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 millionsMay 3,2025May 4,2024Balance, beginning of year$824 $773 Deferred revenue387 400 Effect of exchange rate changes on deferred revenue9 (2)Revenue recognized(444)(455)Balance, end of period$776 $716 TJX recognized $444 million in gift card revenue for the three months ended May 3, 2025 and $455 million for the three months ended May 4, 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. 

8

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 three months ended May 3, 2025, the carrying value of the Company’s equity investment in MOS was $177 million, which exceeds its share of MOS’ net assets by approximately $140 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. As of May 3, 2025, the revaluation of the investment from Mexican Pesos to the U.S. dollar resulted in an immaterial cumulative translation adjustment, which 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