The TJX Companies, Inc. (NYSE: TJX) today announced that it completed
its previously announced settlement with MasterCard International
Incorporated and its issuers. Financial institutions representing 99.5%
of eligible MasterCard accounts worldwide claimed to have been affected
by the unauthorized computer intrusion(s) at TJX accepted the
alternative recovery offer under TJX’s
previously announced Settlement Agreement with MasterCard.
Carol Meyrowitz, President and Chief Executive Officer of The TJX
Companies, Inc., commented, “We believe
consumers ultimately benefit from merchants and payment card companies
working more closely together. This collaboration has allowed TJX and
MasterCard to resolve this matter effectively and cooperatively.”
TJX funded $24 million pre-tax in alternative recovery payments. These
costs were already reflected in the charge related to the computer
intrusion(s) that TJX took last year. Each accepting issuer released and
indemnified TJX and its acquiring banks with respect to any claims of
such issuers, their affiliated issuers and their sponsored issuers as
MasterCard issuers with respect to the intrusion(s), including any
claims in the putative financial institution class actions in federal
and state courts.
The TJX Companies, Inc. is the leading off-price retailer of apparel and
home fashions in the U.S. and worldwide. The Company operates 857 T.J.
Maxx, 786 Marshalls, 295 HomeGoods, and 130 A.J. Wright stores, as well
as 34 Bob’s Stores, in the United States. In
Canada, the Company operates 196 Winners and 73 HomeSense stores, and in
Europe, 228 T.K. Maxx stores and 2 HomeSense stores. TJX’s
press releases and financial information are also available on the
Internet at www.tjx.com.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT
OF 1995: Various statements made in this release are forward-looking and
involve a number of risks and uncertainties. All statements that address
activities, events or developments that we intend, expect or believe may
occur in the future are forward-looking statements. The following are
some of the factors that could cause actual results to differ materially
from the forward-looking statements: matters relating to the computer
intrusion(s) including potential losses that could differ from our
reserve, potential effects on our reputation and sales and other
consequences to the value of our Company and related value of our stock;
our ability to successfully expand our store base and increase same
store sales; risks of expansion and costs of contraction; risks inherent
in foreign operations; our ability to successfully implement our
opportunistic buying strategies and to manage our inventories
effectively; successful advertising and promotion; consumer confidence,
demand, spending habits and buying preferences; effects of unseasonable
weather; competitive factors; availability of store and distribution
center locations on suitable terms; our ability to recruit and retain
associates; factors affecting expenses; success of our acquisition and
divestiture activities; our ability to successfully implement
technologies and systems and protect data; our ability to continue to
generate adequate cash flows; our ability to execute our share
repurchase program; availability and cost of financing; general economic
conditions, including fluctuations in the price of oil; potential
disruptions due to wars, natural disasters and other events beyond our
control; changes in currency and exchange rates; issues with merchandise
quality and safety; import risks; adverse outcomes for any significant
litigation; compliance with and changes in laws and regulations and
accounting rules and principles; adequacy of reserves; closing
adjustments; failure to meet market expectations; and other factors that
may be described in our filings with the Securities and Exchange
Commission. We do not undertake to publicly update or revise our
forward-looking statements even if experience or future changes make it
clear that any projected results expressed or implied in such statements
will not be realized.
