Company: TJX
Filing Date: 2025-05-30
Form Type: 10-Q
Source: 0000109198-25-000043
Chunk: 55

Company: TJX COMPANIES INC /DE/
Filing Date: 2025-05-30
Form: 10-Q
Item: Part I, Item 8
Chunk 55
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 currencies. The contracts outstanding at May 3, 2025 cover merchandise purchases the Company is committed to over the next several months in fiscal 2026. Additionally, TJX’s operations in Europe are subject to foreign currency exposure as a result of their U.K. centralized buying function. 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 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 offset by the realized gains and losses of the underlying item in Cost of sales, including buying and occupancy costs.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. 

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The following is a summary of TJX’s derivative financial instruments, related fair value and balance sheet classification at May 3, 2025:In millionsPayReceiveBlendedContractRateBalance SheetLocationCurrentAssetU.S.$Current(Liability)U.S.$Net FairValue inU.S.$ atMay 3,2025Fair value hedges:Intercompany balances, primarily debt:€80 £68 0.8522 (Accrued Exp)$— $(0.5)$(0.5)A$ 210 U.S.$135 0.6420 Prepaid Exp / (Accrued Exp)1.4 (2.1)(0.7)U.S.$67 £55 0.8177 Prepaid Exp5.8 — 5.8 £50 U.S.$61 1.2222 (Accrued Exp)— (5.3)(5.3)€200 U.S.$220 1.1005 Prepaid Exp/