We wrote in May, under the title "Cost of Insecurity" about TJX Companies’ costs in connection with the security breach suffered in 2003/2004. In a footnote in its November 13 earnings announcement (Edgar report), TXJ increased its estimate of pre-tax charges for the credit card breach to $216 million (compare with the August estimate of $168 million) for the 9-months ending on October 27, 2007.
This charge equals to $0.28 per share. TJX’s earnings per share are $1.43 and the total divident for the past year was $0.34. When the charge related to a security breach equals one-fifth of the EPS and four-fifths of the annual divident, it should raise a big red flag to other companies to make sure that their data is secure.
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