TJX COMPANIES INC /DE/TJX

TJX COMPANIES INC /DE/ Fair Value Disclosure

10-KFiled Mar 31, 20263 min read
Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (also referred to as exit price). The inputs used to measure fair value are generally classified into the following hierarchy:
Level 1:  Unadjusted quoted prices in active markets for identical assets or liabilities
Level 2:  Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability
Level 3:  Unobservable inputs for the asset or liability
The following table sets forth TJX’s financial assets and liabilities that are accounted for at fair value on a recurring basis:
  Fiscal Year Ended
In millionsJanuary 31,
2026		February 1,
2025
Level 1
Assets:
Executive Savings Plan investments$561.6 $481.4 
Level 2
Assets:
Foreign currency exchange contracts$2.8 $53.1 
Diesel fuel contracts6.2 — 
Liabilities:
Foreign currency exchange contracts$46.1 $9.0 
Diesel fuel contracts— 9.1 
Investments designed to meet obligations under the Executive Savings Plan are invested in registered investment companies traded in active markets and are recorded at unadjusted quoted prices.
Foreign currency exchange contracts and diesel fuel contracts are valued using broker quotations, which include observable market information. TJX does not make adjustments to quotes or prices obtained from brokers or pricing services but does assess the credit risk of counterparties and will adjust final valuations when appropriate. Where independent pricing services provide fair values, TJX obtains an understanding of the methods used in pricing. As such, these instruments are classified within Level 2.
The fair value of TJX’s general corporate debt was estimated by obtaining market quotes given the trading levels of other bonds of the same general issuer type and market perceived credit quality. These inputs are considered to be Level 2 inputs. These estimates do not necessarily reflect provisions or restrictions in the various debt agreements that might affect TJX’s ability to settle these obligations.
The following table summarizes the carrying value and fair value estimates of the Company’s components of long-term debt:
Fiscal Year Ended
January 31,
2026		February 1,
2025
In millionsCarrying ValueFair ValueCarrying ValueFair Value
Level 2
Current portion of long-term debt$999 $991 $— $— 
Long-term debt$1,870 $1,738 $2,866 $2,634 
For additional information on long-term debt, see Note J—Long-Term Debt and Credit Lines.
TJX’s cash equivalents are stated at cost, which approximates fair value due to the short maturities of these instruments.
Certain assets and liabilities are measured at fair value on a nonrecurring basis, whereas the majority of assets and liabilities are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances, such as when there is evidence of an impairment. For the years ended January 31, 2026, February 1, 2025 and February 3, 2024, the Company did not record any material impairments to long-lived assets.

Historical Timeline

Fiscal YearFiled
2026Mar 31, 2026Showing above
2025Apr 2, 2025
2024Apr 3, 2024
2023Mar 29, 2023
2022Mar 30, 2022
2021Mar 31, 2021
2018Apr 4, 2018

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.

Other Available Disclosures

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