By Evan Schuman
November 14, 2007
Court filings have estimated that the data from some 96 million credit
cards was accessed during the incidents.
In a footnote in its Nov. 13 earnings announcement, TJX increased its
estimate of pre-tax charges for the world's worst credit card data
breach to $216 million. Back in August, it had projected only a $168
million pre-tax hit.
The data breach consisted of extensive cyber-thief activity within TJX's
network from 2003 through June 2004 and then again from mid-May 2006
through mid-December 2006, TJX said. Court filings have estimated that
the data from some 96 million credit cards was accessed during the
"This reserve reflects [TJX's] estimation of probable losses in
accordance with generally accepted accounting principles based on
information available to [TJX] and includes an estimation of total
potential cash liabilities, from pending litigation, proceedings,
investigations and other claims, as well as legal and other costs and
expenses, arising from the computer intrusion," TJX said in its SEC
In the second quarter (which ended July 28, 2007), TJX "recorded an
after-tax reserve of $107 million for its estimated exposure to
potential losses" on top of an earlier $23 million hit, TJX said.
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