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Accounting Change
In February 2000, TJX announced it had
adopted the provisions of the Securities and Exchange Commission’s
Staff Accounting Bulletin (SAB) No. 101, “Revenue Recognition
in Financial Statements,” issued in December 1999. The
SAB requires that “layaway sales” (when a customer
puts merchandise on hold for pick up within 30 days) be recorded
as a sale at the time the customer picks up the merchandise.
We had previously recorded such sales at the time the customer
paid a deposit and had the merchandise put on hold. TJX restated
its earnings for the first three quarters of the fiscal year
ended January 29, 2000 and recorded a $5.2 million, or $.02
per share, non-cash charge for the cumulative effect of the
accounting change, effective January 31, 1999. The accounting
change simply defers the recognition of the layaway sales, and
on a full year basis has little impact on our results of operations.
However, due to the seasonal influences of the business the
accounting change results in a shift of sales and earnings among
our quarterly reporting periods. Presented below is a summary
of the restated income statement data for the first three quarters
of the fiscal year ended January 29, 2000: |
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