FRAMINGHAM, Mass.--()--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.
