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The TJX Companies, Inc. Adopts Provisions of Staff Accounting Bulletin No. 101 Related to Layaway Sales.

Business Editors

FRAMINGHAM, Mass.--(BUSINESS WIRE)--Feb. 11, 2000

The TJX Companies, Inc. (NYSE:TJX) today announced that, in accordance with Staff Accounting Bulletin No. 101 &uot;Revenue Recognition in Financial Statements,&uot; recently issued by the Securities and Exchange Commission, it will retroactively change its method of accounting for layaway sales effective January 31, 1999. Under the new accounting method, the Company will defer recognition of a layaway sale and its related profit to the accounting period when the customer picks up layaway merchandise. The Company will record a one-time, non-cash, after-tax charge of $5.2 million, or $.02 per share, in the first quarter of its fiscal year ending January 29, 2000 to reflect the cumulative effect of the accounting change.

Layaway sales are a small portion of the Company's revenue, and the accounting change has virtually no impact on the Company's annual sales and earnings (before cumulative effect). Seasonal influences associated with the Company's business, however, cause the accounting change to result in a shift of layaway sales and earnings among the various quarterly reporting periods. The impact on quarterly earnings per share, as a result of the accounting change is summarized as follows:

Impact of Layaway Accounting Change on EPS for
Fiscal Year Ending January 29, 2000

First quarter ($.01) (excludes one-time, non-cash charge for
 cumulative affect of accounting change)
Second quarter 0
Third quarter ($.02)
Fourth quarter +$.03

 Full Year 0


Prior year quarterly sales and earnings, restated on a pro forma basis, are impacted by amounts similar to the impact in the fiscal 2000 quarters; therefore, quarterly year-over-year comparisons are not affected.

Attached are schedules that provide restated sales and earnings for the first three quarters of fiscal 2000 and pro forma results by quarter for fiscal 1999.

The TJX Companies, Inc. is the leading off-price retailer of apparel and home fashions in the U.S. and worldwide. The Company operates 632 T.J. Maxx, 505 Marshalls, 51 HomeGoods, and 15 A.J. Wright stores in the United States. In Canada, the Company operates 100 Winners, and in Europe, 54 T.K. Maxx stores. TJX's press releases and financial information are available on the Internet at www.tjx.com.

 THE TJX COMPANIES, INC. AND CONSOLIDATED SUBSIDIARIES
 FINANCIAL SUMMARY (Unaudited)
 (Dollars in Thousands Except Per Share Amounts)


 RESTATED RESTATED RESTATED
 13 Weeks 13 Weeks 13 Weeks
 Ended Ended Ended
 May 1, July 31, October 30,
 1999 1999 1999

Net sales $ 1,930,506 $ 2,102,851 $ 2,235,054

Cost of sales, including
 buying and occupancy
 costs 1,418,792 1,585,248 1,646,270

Selling, general and
 administrative expenses 310,676 330,481 338,319

Interest expense (income),
 net (734) 1,964 4,274

Income before income
 taxes 201,772 185,158 246,191

Provision for income
 taxes 79,498 69,277 94,474

Income before cumulative
 effect of accounting
 change 122,274 115,881 151,717

Cumulative effect of
 accounting change, net of
 income taxes (5,154) - -

 Net income $ 117,120 $ 115,881 $ 151,717

Diluted earnings per share:
 Income before cumulative
 effect of accounting
 change $0.38 $0.36 $0.48
 Net income $0.36 $0.36 $0.48


Number of shares used for
 earnings per share
 calculations 325,296,145 320,450,875 316,313,009




 THE TJX COMPANIES, INC. AND CONSOLIDATED SUBSIDIARIES
 SELECTED INFORMATION BY MAJOR BUSINESS SEGMENT
 (Unaudited)
 (Dollars In Thousands Except Per Share Amounts)


 RESTATED RESTATED RESTATED
 13 Weeks 13 Weeks 13 Weeks
 Ended Ended Ended
 May 1, July 31, October 30,
 1999 1999 1999

Net sales:
 Off-price family apparel
 stores $ 1,892,233 $ 2,059,924 $ 2,182,100
 Off-price home fashion
 stores 38,273 42,927 52,954
 $ 1,930,506 $ 2,102,851 $ 2,235,054


Operating income (loss):
 Off-price family apparel
 stores $ 210,652 $ 202,166 $ 252,800
 Off-price home fashion
 stores (666) (989) 2,041
 209,986 201,177 254,841


General corporate expense 8,296 13,402 3,724
Goodwill amortization 652 653 652
Interest expense (income), net (734) 1,964 4,274

Income before income
 taxes $ 201,772 $ 185,158 $ 246,191




 THE TJX COMPANIES, INC. AND CONSOLIDATED SUBSIDIARIES
 FINANCIAL SUMMARY (Unaudited)
 (Dollars in Thousands Except Per Share Amounts)


 PROFORMA PROFORMA PROFORMA PROFORMA PROFORMA
 13 Weeks 13 Weeks 13 Weeks 13 Weeks 52 Weeks
 Ended Ended Ended Ended Ended
 May 2, August 1, October 31, January 30, January 30,
 1998 1998 1998 1999 1999

Net sales $ 1,753,748 $ 1,867,668 $ 2,003,503 $ 2,323,952 $ 7,948,871

Cost of sales,
 including
 buying and
 occupancy
 costs 1,317,033 1,420,382 1,466,280 1,753,990 5,957,685

Selling,
 general and
 administrative
 expenses 299,835 303,332 322,531 360,290 1,285,988

Interest expense
 (income), net (42) 1,425 1,507 (1,204) 1,686

Income from
 continuing
 operations
 before
 income taxes 136,922 142,529 213,185 210,876 703,512

Provision for
 income
 taxes 54,495 56,726 84,848 74,541 270,610

Income from
 continuing
 operations 82,427 85,803 128,337 136,335 432,902

Loss from
 discontinued
 operations
 net of income
 taxes - - (9,048) - (9,048)

Net income $ 82,427 $ 85,803 $ 119,289 $ 136,335 $ 423,854

Diluted earnings per share:
 Income from
 continuing
 operations $0.24 $0.25 $0.39 $0.41 $1.29
 Net income $0.24 $0.25 $0.36 $0.41 $1.27

Number of shares
 used for earnings
 per share cal-
 culations 340,310,346 337,137,025 331,766,679 328,800,046 334,647,950



 THE TJX COMPANIES, INC. AND CONSOLIDATED SUBSIDIARIES
 SELECTED INFORMATION BY MAJOR BUSINESS SEGMENT
 (Unaudited)
 (Dollars In Thousands Except Per Share Amounts)


 PROFORMA PROFORMA PROFORMA PROFORMA PROFORMA
 13 Weeks 13 Weeks 13 Weeks 13 Weeks 52 Weeks
 Ended Ended Ended Ended Ended
 May 2, August 1, October 31, January 30, January 30,
 1998 1998 1998 1999 1999

Net sales:
 Off-price family
 apparel
 stores $ 1,728,366 $ 1,840,851 $ 1,971,707 $ 2,275,409 $ 7,816,333
 Off-price
 home fashion
 stores 25,382 26,817 31,796 48,543 132,538
 $ 1,753,748 $ 1,867,668 $ 2,003,503 $ 2,323,952 $ 7,948,871

Operating income (loss):
 Off-price family
 apparel
 stores $ 158,490 $ 159,010 $ 225,186 $ 239,520 $ 782,206
 Off-price
 home
 fashion
 store (2,256) (2,246) (589) 141 (4,950)
 156,234 156,764 224,597 239,661 777,256

General
 corporate
 expense 18,701 12,158 9,253 29,337 69,449
Goodwill
 amortization 653 652 652 652 2,609
Interest
 expense
 (income), net (42) 1,425 1,507 (1,204) 1,686

Income from
 continuing operations
 before income
 taxes $ 136,922 $ 142,529 $ 213,185 $ 210,876 $ 703,512
COPYRIGHT 2000 Business Wire
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