Company: TJX
Filing Date: 2025-08-29
Form Type: 10-Q
Source: 0000109198-25-000054
Chunk: 13

Company: TJX COMPANIES INC /DE/
Filing Date: 2025-08-29
Form: 10-Q
Item: Part I, Item 1
Chunk 13
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 portion of the inflows of Euros to the central buying entity provides a natural hedge for Euro denominated merchandise purchases from third-party vendors. TJX calculates any excess Euro exposure each month and enters into forward contracts of approximately 30 days' duration to mitigate this excess exposure. Upon settlement, the realized gains and losses on these contracts are recorded in Cost of sales, including buying and occupancy costs. TJX elected not to apply hedge accounting to these contracts.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. 

14

The following is a summary of TJX’s derivative financial instruments, related fair value and balance sheet classification at August 2, 2025:In millionsPayReceiveBlendedContractRateBalance SheetLocationCurrentAssetU.S.$Current(Liability)U.S.$Net FairValue inU.S.$ atAugust 2,2025Fair value hedges:Intercompany balances, primarily debt:€83 £72 0.8684 (Accrued Exp)$— $(1.4)$(1.4)A$ 210 U.S.$134 0.6393 Prepaid Exp / (Accrued Exp)0.4 (2.6)(2.2)U.S.$74 £55 0.7409 (Accrued Exp)— (1.1)(1.1)£50 U.S.$67 1.3490 Prepaid Exp1.0 — 1.0 €200 U.S.$224 1.1221 Prepaid Exp / (Accrued Exp)0.5 (10.3)(9.8)Economic hedges for which hedge accounting was not elected:Diesel fuel contractsFixed on3.2M – 4.1Mgal per monthFloat on3.2M – 4.1Mgal per monthN/A(Accrued Exp)— (0.4)(0.4)Intercompany billings in TJX International, primarily merchandise:€159 £138 0.8680 (Accrued Exp)— (1