Company: TJX
Filing Date: 2025-08-29
Form Type: 10-Q
Source: 0000109198-25-000054
Chunk: 24

Company: TJX COMPANIES INC /DE/
Filing Date: 2025-08-29
Form: 10-Q
Item: Part I, Item 1
Chunk 24
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% for the first six months of fiscal 2025. The decrease in the effective income tax rate for both the second quarter and first six months of fiscal 2026 was primarily due to a benefit from the acquisition of federal tax credits, partially offset by the decrease in excess tax benefit from share-based compensation.TJX had net unrecognized tax benefits of $209 million as of August 2, 2025, $217 million as of February 1, 2025 and $202 million as of August 3, 2024.TJX is subject to U.S. federal income tax as well as income tax in multiple state, local and foreign jurisdictions. In the U.S. and India, fiscal years through 2010 are no longer subject to examination. In all other jurisdictions, fiscal years through 2011 are no longer subject to examination.TJX’s accounting policy is to classify interest and penalties related to income tax matters as part of income tax expense. The accrued amounts for interest and penalties on the Consolidated Balance Sheets were $24 million as of August 2, 2025, $28 million as of February 1, 2025 and $26 million as of August 3, 2024.Based on the final resolution of tax examinations, judicial or administrative proceedings, changes in facts or law, expirations of statutes of limitations in specific jurisdictions or other resolutions of, or changes in, tax positions, it is reasonably possible that unrecognized tax benefits for certain tax positions taken on previously filed tax returns may change materially from those represented on the Consolidated Financial Statements as of August 2, 2025. During the next twelve months, it is reasonably possible that tax audit resolutions may reduce unrecognized tax benefits by up to $22 million, which would reduce the provision for taxes on earnings.

Note K. Contingent Obligations, Contingencies, and Commitments 

Contingent Contractual ObligationsTJX is a party to various agreements under which it may be obligated to indemnify the other party with respect to certain losses related to matters including title to assets sold, specified environmental matters or certain income taxes. These obligations are sometimes limited in time or amount. There are no amounts reflected in the Company’s Consolidated Balance Sheets with respect to these contingent obligations.

23

Legal ContingenciesTJX is subject to certain legal proceedings, lawsuits, disputes and claims that arise from time to time in the ordinary course of its business. TJX has accrued immaterial amounts in the accompanying Consolid