Summary
TJX Companies, Inc. (TJX) has filed an 8-K report detailing two significant financial events impacting its fourth quarter and full fiscal year 2006 results. The company announced its early adoption of SFAS No. 123R, which requires expensing stock-based compensation. This adoption is expected to reduce earnings per share by $0.03 in the fourth quarter and $0.12 for the full fiscal year. TJX has chosen a modified retrospective transition, meaning prior period financial statements will be restated to reflect this new expense.
Key Highlights
- 1Early adoption of SFAS No. 123R for stock-based compensation in Q4 FY2006.
- 2SFAS 123R adoption expected to reduce FY2006 EPS by $0.12 and Q4 FY2006 EPS by $0.03.
- 3TJX elected the modified retrospective transition method for SFAS 123R, adjusting prior period financial statements.
- 4Announcement of a one-time tax benefit from the repatriation of foreign earnings.
- 5Repatriation of approximately US$260 million in accumulated earnings from its Canadian subsidiary.
- 6The repatriation is expected to yield a one-time tax benefit of approximately $47 million, or $0.10 per share, in Q4 FY2006.
- 7This repatriation is enabled by recent U.S. tax legislation offering a reduced tax rate for repatriating foreign earnings.