Macy's 2008 Annual Report Download

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2008 ANNUAL REPORT
MACY’S · BLOOMINGDALE’S

Table of contents

  • Page 1
    2008 ANNUAL REPORT M AC Y ' S · B LO O M I N G DA L E ' S

  • Page 2
    ... visitors centers, personal shoppers, outstanding fitting rooms and lounges - elegant events and personalized, attentive service that strengthen customer relationships and build loyalty. Bloomingdale's will take to the world stage as it opens the company's first international location in spring...

  • Page 3
    ... in annualized cost savings beginning in 2009 ($60 million in the partial year of 2008). My Macy's started showing results earlier than anticipated. So early in 2009, the company announced that the My Macy's structure would be rolled out to all Macy's stores nationwide, with the new organization...

  • Page 4
    ... resulting decline in the company's share price and market capitalization. The estimated noncash write-down of goodwill in the fourth quarter of 2008 is expected to have no impact on the company's business, bank credit agreement or bond indentures. While 2008 and the early part of 2009 saw the worst...

  • Page 5
    ... last business day of the registrant's most recently completed second fiscal quarter (August 2, 2008) was approximately $7,640,690,000. Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Class Outstanding at February 27, 2009...

  • Page 6

  • Page 7
    ... customers, suppliers, business partners, competitors and legislative, regulatory, judicial and other governmental authorities and officials; adverse changes in relationships with vendors and other product and service providers; risks related to currency and exchange rates and other capital market...

  • Page 8
    ... product offerings and service levels. On February 2, 2009, the Company announced its intent to consolidate all of its Macy's branded operations into a single organization. Under the new structure, central buying, merchandising planning, stores senior management and marketing functions for both Macy...

  • Page 9
    ..., Houston, Miami, Los Angeles, New York, Pittsburgh, San Francisco and Washington, D.C. areas. Each region will include an organization of 35 to 40 executives to oversee merchandising, planning and various support operations. Special events and marketing public relations staff also will be located...

  • Page 10
    ... new Macy's branded organization structure, Macy's Corporate Marketing will be integrated into the new unified national organization. A specialized staff maintained in the Company's corporate offices provides services for all retail operations of the Company in such areas as accounting, legal, human...

  • Page 11
    ... through its website at http://www.macysinc.com Audit Committee Charter, Compensation and Management Development Committee Charter, Finance Committee Charter, Nominating and Corporate Governance Committee Charter, Corporate Governance Principles, Non-Employee Director Code of Business Conduct and...

  • Page 12
    ..., planning and private brand development functions under the new Macy's organization structure and International Retail Store Development initiatives; prior thereto she served as Vice Chair, Merchandising, Private Brand and Product Development of the Company from February 2003 to February 2009...

  • Page 13
    ..., value retailers, discounters, and Internet and mail-order retailers. Competition may intensify as the Company's competitors enter into business combinations or alliances. Competition is characterized by many factors, including assortment, advertising, price, quality, service, location, reputation...

  • Page 14
    ... of the Company's stores or warehouses located in the affected areas, thereby disrupting the Company's business operations. The Company's pension costs could increase at a higher than anticipated rate. Significant changes in interest rates, decreases in the fair value of plan assets and investment...

  • Page 15
    ... employees. The Company's business is dependent upon attracting and retaining a large number of quality employees. Many of these employees are in entry level or part-time positions with historically high rates of turnover. The Company's ability to meet its labor needs while controlling the costs...

  • Page 16
    ... to store and distribution center locations, merchandise, advertising, software development and support, logistics, other agreements for goods and services in order to operate the Company's business in the ordinary course, extensions of credit, credit card accounts and related receivables, and...

  • Page 17
    ... of up to 20 years. Some of these agreements require that the stores be operated under a particular name. Most leases require the Company to pay real estate taxes, maintenance and other costs; some also require additional payments based on percentages of sales and some contain purchase options...

  • Page 18
    ...are based on the Company's Macy's branded operational structure which include headquarters in the Chicago, Houston, Miami, Los Angeles, New York, Pittsburgh, San Francisco and Washington, D.C. areas. The Company's retail stores are located at urban or suburban sites, principally in densely populated...

  • Page 19
    ... the Company's earnings, financial condition and legal or contractual restrictions. The following table provides information regarding the Company's purchases of Common Stock during the fourth quarter of 2008. Total Number of Shares Purchased (thousands) Average Price per Share ($) Number of Shares...

  • Page 20
    The following graph compares the cumulative total stockholder return on the Common Stock with the Standard & Poor's 500 Composite Index and the Standard & Poor's Retail Department Store Index for the period from January 30, 2004 through January 30, 2009, assuming an initial investment of $100 and ...

  • Page 21
    ... share: (c) Income (loss) from continuing operations ...Net income (loss) ...Average number of shares outstanding (c) ...Cash dividends paid per share (c) ...Depreciation and amortization ...Capital expenditures ...Balance Sheet Data (at year end): Cash and cash equivalents ...Total assets ...Short...

  • Page 22
    ... process, the Company identified certain store locations and distribution center facilities to be divested. Following the Merger, the Company announced its intention to dispose of the acquired Lord & Taylor division and the acquired bridal group business, which included the operations of David...

  • Page 23
    ... Macy's is rolled out nationally to new local markets, the Company's Macy's branded stores will be reorganized into a unified operating structure to support the Macy's business. Existing division central office organizations will be eliminated in New York-based Macy's East, San Francisco-based Macy...

  • Page 24
    ... its comparable store sales in 2009 for most of the Company's operating divisions and the Company as a whole will be down in the range of 6% to 8% from 2008 levels. The discussion in this Item 7 should be read in conjunction with our Consolidated Financial Statements and the related notes included...

  • Page 25
    ... locations, severance, system conversion costs, impairment charges associated with acquired indefinite lived private brand tradenames and costs related to other operational consolidations, partially offset by approximately $41 million of gains from the sale of previously closed distribution center...

  • Page 26
    ... related to store and distribution center closings and the re-branding-related marketing and advertising costs, partially offset by gains from the sale of Macy's locations. Pre-tax gains of approximately $191 million were recorded in 2006 in connection with the sale of certain credit card accounts...

  • Page 27
    ... store, and also plans to reopen two Macy's department stores in Houston, Texas that were temporarily closed after Hurricane Ike. The Company's budgeted capital expenditures are approximately $450 million for 2009. Management presently anticipates funding such expenditures with cash from operations...

  • Page 28
    ... 31, 2009, the Company had no borrowings outstanding under this agreement. The Company's credit agreement was amended in the fourth quarter of 2008 to update both financial covenants of the agreement. The amended agreement requires the Company to maintain a specified interest coverage ratio for the...

  • Page 29
    ... due on debt maturing in 2008. On February 2, 2009, the Company's board of directors declared a quarterly dividend of 5 cents per share on its common stock, payable April 1, 2009 to Macy's shareholders of record at the close of business on March 13, 2009. This quarterly dividend is reduced from the...

  • Page 30
    ...sources: cash on hand, cash from operations, borrowings under existing or new credit facilities and the issuance of long-term debt or other securities, including common stock. Critical Accounting Policies Merchandise Inventories Merchandise inventories are valued at the lower of cost or market using...

  • Page 31
    ...Company could experience higher costs of sales and higher advertising expense, or reduce the amount of advertising that it uses, depending on the specific vendors involved and market conditions existing at the time. Physical inventories are generally taken within each merchandise department annually...

  • Page 32
    ... are based on the Company's annual business plan or other forecasted results. Discount rates reflect market-based estimates of the risks associated with the projected cash flows directly resulting from the use of those assets in operations. The estimates of fair value of reporting units are based on...

  • Page 33
    ... benefit postretirement plan as an asset or liability on the balance sheet and recognizes changes in that funded status in the year in which the changes occur through comprehensive income. Under SFAS 87, pension expense is recognized on an accrual basis over employees' approximate service periods...

  • Page 34
    ... the present value of projected benefit obligations and the weighted average rate of increase of future compensation levels. The Company has assumed that the Pension Plan's assets will generate an annual long-term rate of return of 8.75%. The Company develops its long-term rate of return assumption...

  • Page 35
    ... option to report selected financial assets and liabilities at fair value, became effective for the Company beginning February 3, 2008. The adoption of this statement did not and is not expected to have an impact on the Company's consolidated financial position, results of operations and cash flows...

  • Page 36
    ... outstanding at January 31, 2009, the Company has determined that there was no material market risk exposure to the Company's consolidated financial position, results of operations or cash flows as of such date. Item 8. Consolidated Financial Statements and Supplementary Data. Information...

  • Page 37
    ... control over financial reporting, as stated in their report located on page F-3. c. Changes in Internal Control over Financial Reporting There were no changes in the Company's internal controls over financial reporting that occurred during the Company's most recently completed fiscal quarter that...

  • Page 38
    ... in connection with our 2009 Annual Meeting of Shareholders (the "Proxy Statement"), and "Item 1. Business - Executive Officers of the Registrant" in this report and incorporated herein by reference. Item 11. Compensation of Directors and Executive Officers. Information called for by this...

  • Page 39
    ... Indenture to the 1994 Indenture, dated as of July 14, 1997, between the Company and U.S. Bank National Association (successor to State Street Bank and Trust Company and The First National Bank of Boston), as Trustee 33 4.3.1 Exhibit 2 to the Company's Current Report on Form 8-K filed on July...

  • Page 40
    ... Federated Retail Holdings, Inc. ("Macy's Retail") and U.S. Bank National Association (as successor to State Street Bank and Trust Company and as successor to The First National Bank of Boston), as Trustee Exhibit 3 to the July 1997 Form 8-K 4.3.3 Exhibit 10.14 to the Company's Current Report...

  • Page 41
    ... Indenture, dated as of June 17, 1996, among May Exhibit 4.1 to the Registration Statement on Delaware, Macy's Retail (f/k/a The May Form S-3 (Registration No. 333-06171) filed on Department Stores Company (NY)) ("May New June 18, 1996 by May Delaware York") and The Bank of New York Trust Company...

  • Page 42
    ...Co. Commercial Paper Dealer Agreement, dated as of August 30, 2005, among the Company, Macy's Retail and J.P. Morgan Securities Inc. Commercial Paper Dealer Agreement, dated as of October 4, 2006, among the Company and Loop Capital Markets, LLC Exhibit 10.25 to the Company's Annual Report on Form 10...

  • Page 43
    ... Agreement, dated October 24, 2005, between the Company and Citibank Second Amendment to the Credit Card Program Agreement, dated May 22, 2006, between the Company, FDS Bank, MCCS, Macy's Department Stores, Inc. ("MDS"), Bloomingdale's, Inc. ("Bloomingdale's") and Department Stores National Bank...

  • Page 44
    ... ended November 1, 2008 10.10.9 10.11 10.12 10.13 10.14 10.15 10.16 10.17 10.18 10.19 10.20 Fifth Amendment to Credit Card Program Agreement, effective as of January 1, 2009, among the Company, FDS Bank, MCCS, MDS, Bloomingdale's and DSNB 1995 Executive Equity Incentive Plan, as amended and...

  • Page 45
    ... Account Pension Plan) effective as of January 1, 2009 * Director Deferred Compensation Plan * Stock Credit Plan for 2006 - 2007 of Federated Department Stores, Inc. * Stock Credit Plan for 2008 - 2009 of Macy's, Inc. (as amended as of August 22, 2008) * 39 Exhibit 10.31 the Company's Annual Report...

  • Page 46
    ... to Rule 13a-14(a) Certification of Chief Financial Officer pursuant to Rule 13a-14(a) Certifications by Chief Executive Officer under Section 906 of the Sarbanes-Oxley Act Certifications by Chief Financial Officer under Section 906 of the Sarbanes-Oxley Act * Constitutes a compensatory plan or...

  • Page 47
    ... Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities indicated on April 1, 2009. Signature Title * Terry J. Lundgren Chairman of the Board, President and Chief Executive Officer (principal executive officer...

  • Page 48
    [THIS PAGE INTENTIONALLY LEFT BLANK]

  • Page 49
    ... ...Report of Independent Registered Public Accounting Firm ...Consolidated Statements of Operations for the fiscal years ended January 31, 2009, February 2, 2008 and February 3, 2007 ...Consolidated Balance Sheets at January 31, 2009 and February 2, 2008 ...Consolidated Statements of Changes in...

  • Page 50
    ... program of internal audits with appropriate management follow-up action, to provide reasonable assurance, at appropriate cost, that the Company's assets are protected and transactions are properly recorded. Additionally, the integrity of the financial accounting system is based on careful selection...

  • Page 51
    ... 31, 2009 and February 2, 2008, and the related consolidated statements of operations, changes in shareholders' equity and cash flows for each of the fiscal years in the three-year period ended January 31, 2009. We also have audited Macy's, Inc.'s internal control over financial reporting as of...

  • Page 52
    ... in Income Taxes," and the measurement date provision of Statement of Financial Accounting Standards No. 158, "Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans," in fiscal 2007, and the provisions of Statement of Financial Accounting Standards No. 123R, "Share Based...

  • Page 53
    ...Division consolidation costs and store closing related costs ...Asset impairment charges ...Goodwill impairment charges ...May integration costs ...Gains on the sale of accounts receivable ...Operating income (loss) ...Interest expense ...Interest income ...Income (loss) from continuing operations...

  • Page 54
    ... accounts payable ...Accounts payable and accrued liabilities ...Income taxes ...Deferred income taxes ...Total Current Liabilities ...Long-Term Debt ...Deferred Income Taxes ...Other Liabilities ...Shareholders' Equity: Common stock (420.1 and 419.7 shares outstanding) ...Additional paid-in capital...

  • Page 55
    ... service credit on post employment and postretirement benefit plans, net of income tax effect of $1 million ...Total comprehensive income ...Common stock dividends ($.5175 per share) ...Stock repurchases ...Stock-based compensation expense ...Stock issued under stock plans ...Retirement of common...

  • Page 56
    ... reconcile net income (loss) to net cash provided by continuing operating activities: (Income) loss from discontinued operations ...Gains on the sale of accounts receivable ...Stock-based compensation expense ...Division consolidation costs and store closing related costs ...Asset impairment charges...

  • Page 57
    ...of Federated Department Stores, Inc. approved changing the name of the company from Federated Department Stores, Inc. to Macy's, Inc. The name change became effective on June 1, 2007. Macy's, Inc. and subsidiaries (the "Company") is a retail organization operating retail stores and Internet websites...

  • Page 58
    ... 7, "Receivables"). Income earned under the Program Agreement is treated as a reduction of selling, general and administrative expenses on the Consolidated Statements of Operations. Under the Program Agreement, Citibank offers proprietary and non-proprietary credit to the Company's customers through...

  • Page 59
    ... are generally credited to cost of sales at the time the merchandise is sold in accordance with Emerging Issues Task Force ("EITF") Issue No. 02-16, "Accounting by a Customer (Including a Reseller) for Certain Consideration Received from a Vendor." The Company also receives advertising allowances...

  • Page 60
    ... impairment write-downs. For long-lived assets held for disposal by sale, an impairment charge is recorded if the carrying amount of the asset exceeds its fair value less costs to sell. Such valuations include estimations of fair values and incremental direct costs to transact a sale. If the Company...

  • Page 61
    ... in future compensation levels, the long-term rate of return on assets and the growth in health care costs. The cost of these benefits is recognized in the Consolidated Financial Statements over an employee's term of service with the Company, and the accrued benefits are reported in accounts payable...

  • Page 62
    ...to financial assets and liabilities that are recognized or disclosed at fair value on a recurring basis did not have and is not expected to have an impact on the Company's consolidated financial position, results of operations or cash flows. In February 2008, the Financial Accounting Standards Board...

  • Page 63
    ... 15, 2008, and the adoption of this statement did not and is not expected to have an impact on the Company's consolidated financial position, results of operations or cash flows. 2. Division Consolidation Costs and Store Closing Related Costs In February 2008, the Company announced a localization...

  • Page 64
    ... stores and marketing organizations. Macy's Corporate Marketing will be integrated into the new unified marketing organization. The New York-based Macy's Merchandising Group will be refocused solely on the design, development and marketing of Macy's family of private brands. During 2008, the Company...

  • Page 65
    ... the Consolidated Balance Sheets, prior to May 2, 2009. In January 2009, the Company announced the closure of 11 underperforming Macy's stores. In connection with this announcement and the plan to dispose of these locations, the Company incurred $11 million of store closing related costs during 2008...

  • Page 66
    ... on the Company's annual business plan or other forecasted results. Discount rates reflect market-based estimates of the risks associated with the projected cash flows directly resulting from the use of those assets in operations. The Company initially calculated the value of its reporting units by...

  • Page 67
    ... process, the Company identified certain store locations and distribution center facilities to be divested. Following the Merger, the Company announced its intention to sell the acquired Lord & Taylor division and the acquired May bridal group business, which included the operations of David...

  • Page 68
    ... and a receivable for a working capital adjustment to the purchase price of approximately $23 million. The Lord & Taylor division represented approximately $1,130 million of net assets, before income taxes. After adjustment for transaction costs of approximately $20 million, the Company recorded the...

  • Page 69
    ... TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) of Boston businesses represented approximately $751 million of net assets, before income taxes. After adjustment for a liability for a working capital adjustment to the purchase price and other items totaling approximately $11 million, the Company...

  • Page 70
    .... On May 1, 2006, the Company terminated the Company's credit card program agreement with GE Capital Consumer Card Co. ("GE Bank") and purchased all of the "Macy's" credit card accounts owned by GE Bank, together with related receivables balances (the "GE/Macy's Credit Assets"), as of April 30, 2006...

  • Page 71
    ...the payment of dividends or other amounts on account of its capital stock) unless the tenant satisfies certain financial tests. Minimum rental commitments (excluding executory costs) at January 31, 2009, for noncancellable leases are: Capitalized Leases Operating Leases (millions) Total Fiscal year...

  • Page 72
    ...offset by payments from existing tenants and subtenants. In addition, the Company is liable for other expenses related to the above leases, such as property taxes and common area maintenance, which are also payable by existing tenants and subtenants. Potential liabilities related to these guarantees...

  • Page 73
    ... to tax liabilities, unrecognized tax benefits and related interest, totaling approximately $8 million, and less than $1 million related to certain income tax benefits realized resulting from the exercise of stock options assumed in the acquisition of May. During 2008, the Company recognized...

  • Page 74
    ... TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) 11. Financing The Company's debt is as follows: February 2, January 31, 2008 2009 (millions) Short-term debt: 4.8% Senior notes due 2009 ...6.3% Senior notes due 2009 ...6.625% Senior notes due 2008 ...5.95% Senior notes due 2008 ...Capital lease...

  • Page 75
    ... on debt maturing in 2008. On February 10, 2009, the Company, through its wholly owned subsidiary, Macy's Retail Holdings, Inc., completed a cash tender offer pursuant to which it purchased approximately $199 million of its outstanding 6.30% Senior Notes due April 1, 2009 (resulting in approximately...

  • Page 76
    ... TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) January 31, 2009, and February 2, 2008, respectively. The amount of borrowings under this agreement, net of invested cash and cash equivalent balances by Macy's, Inc. ("Parent"), increased to its highest level of $163 million on November 28, 2008...

  • Page 77
    ... Liabilities January 31, February 2, 2009 2008 (millions) Accounts payable ...Liabilities to customers ...Lease related liabilities ...Current portion of workers' compensation and general liability reserves ...Severance and relocation ...Accrued wages and vacation ...Taxes other than income taxes...

  • Page 78
    ... $458 During the fourth quarter of 2007, the Company settled an Internal Revenue Service ("IRS") examination for fiscal years 2003, 2004 and 2005. As a result of the settlement, the Company recognized previously unrecognized tax benefits and related accrued interest totaling $78 million, primarily...

  • Page 79
    ... 31, 2008 2009 (millions) Deferred tax assets: Post employment and postretirement benefits ...Accrued liabilities accounted for on a cash basis for tax purposes ...Long-term debt ...Unrecognized state tax benefits and accrued interest ...Federal operating loss carryforwards ...State operating loss...

  • Page 80
    ... Consolidated Balance Sheets. At February 2, 2008, $229 million of unrecognized tax benefits were included in other liabilities and $8 million were included in income taxes on the Consolidated Balance Sheets. Also in conjunction with the adoption of FIN 48 the Company has classified federal, state...

  • Page 81
    ... ...Service cost ...Interest cost ...Adjustment for measurement date change ...Actuarial gain ...Benefits paid ...Projected benefit obligation, end of year ...Changes in plan assets (primarily stocks, bonds and U.S. government securities) Fair value of plan assets, beginning of year ...Actual return...

  • Page 82
    ...net periodic pension cost for the Company's Pension Plan: 2008 2007 2006 Discount rate prior to plan merger or change in measurement date ...Discount rate subsequent to plan merger or change in measurement date ...Expected long-term return on plan assets ...Rate of compensation increases ... - 6.25...

  • Page 83
    ... in excess of inflation. The Company employs a total return investment approach whereby a mix of domestic and foreign equity securities, fixed income securities and other investments is used to maximize the long-term return of the assets of the Pension Plan for a prudent level of risk. Risks are...

  • Page 84
    ...of year ...Change in plan assets Fair value of plan assets, beginning of year ...Company contributions ...Benefits paid ...Fair value of plan assets, end of year ...Funded status at end of year ...Amounts recognized in the Consolidated Balance Sheets at January 31, 2009 and February 2, 2008 Accounts...

  • Page 85
    ... to plan merger or change in measurement date ...Rate of compensation increases ... - 5.85% 5.70% 6.25% 5.95% 6.30% 7.20% 7.20% 7.20% The supplementary retirement plan's assumptions are evaluated annually and updated as necessary. The discount rate used to determine the present value of the Company...

  • Page 86
    ... compensation each year as either stock credits or cash credits. The Company transfers shares to a trust to cover the number management estimates will be needed for distribution on account of stock credits currently outstanding. At January 31, 2009 and February 2, 2008, the liability under the plan...

  • Page 87
    ...of year ...Change in plan assets Fair value of plan assets, beginning of year ...Company contributions ...Benefits paid ...Fair value of plan assets, end of year ...Funded status at end of year ...Amounts recognized in the Consolidated Balance Sheets at January 31, 2009 and February 2, 2008 Accounts...

  • Page 88
    ... the overall discount rate for postretirement obligations. The future medical benefits provided by the Company for certain employees are based on a fixed amount per year of service, and the accumulated postretirement benefit obligation is not affected by increases in health care costs. However, the...

  • Page 89
    ... price at least equal to the market value of the underlying common stock on the date of grant, have ten-year terms and typically vest ratably over four years of continued employment. The Company also has a stock credit plan. Beginning in 2004, key management personnel became eligible to earn a stock...

  • Page 90
    ... on the ending stock price for each reporting period. At January 31, 2009 and February 2, 2008, the liabilities under the stock credit plans, which is reflected in other liabilities on the Consolidated Balance Sheets, was $23 million and $53 million, respectively. During 2008, the Company recorded...

  • Page 91
    ... $168 million in 2008, 2007 and 2006, respectively. The total grant-date fair value of stock options that vested during 2008, 2007 and 2006 was $65 million, $54 million and $57 million, respectively. Cash received from stock option exercises under the Company's equity plan amounted to approximately...

  • Page 92
    ... TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) As of January 31, 2009, the Company had $90 million of unrecognized compensation costs related to nonvested stock options, which is expected to be recognized over a weighted average period of approximately 1.6 years. As of January 31, 2009, the...

  • Page 93
    ... TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) compensation plans. Under the deferred compensation plans, shares are maintained in a trust to cover the number estimated to be needed for distribution on account of stock credits currently outstanding. Changes in the Company's Common Stock issued...

  • Page 94
    ...: 2008 Loss 2007 Shares Income Shares Income (millions, except per share data) 2006 Shares Income (loss) from continuing operations and average number of shares outstanding ...$(4,803) Shares to be issued under deferred compensation plans ...$(4,803) Basic earnings (loss) per share . . Effect...

  • Page 95
    ...two years were as follows: First Second Third Fourth Quarter Quarter Quarter Quarter (millions, except per share data) 2008: Net sales ...Cost of sales ...Gross margin ...Selling, general and administrative expenses ...Division consolidation costs and store closing related costs ...Asset impairment...

  • Page 96
    ...2, 2008, Macy's Merchandising Group, Inc. and its subsidiary Macy's Merchandising Group International, LLC) are also reflected in "Other Subsidiaries." Condensed Consolidating Balance Sheets as of January 31, 2009 and February 2, 2008, the related Condensed Consolidating Statements of Operations for...

  • Page 97
    ... FINANCIAL STATEMENTS - (Continued) MACY'S, INC. Condensed Consolidating Balance Sheet As of January 31, 2009 (millions) Parent Subsidiary Other Consolidating Issuer Subsidiaries Adjustments Consolidated ASSETS: Current Assets: Cash and cash equivalents ...$1,047 Receivables ...2 Merchandise...

  • Page 98
    ...) MACY'S, INC. Condensed Consolidating Statement of Operations For 2008 (millions) Parent Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Consolidated Net sales ...Cost of sales ...Gross margin ...Selling, general and administrative expenses ...Division consolidation costs ...Asset...

  • Page 99
    ... MACY'S, INC. Condensed Consolidating Statement of Cash Flows For 2008 (millions) Parent Subsidiary Other Consolidating Issuer Subsidiaries Adjustments Consolidated Cash flows from continuing operating activities: Net loss ...$(4,803) $(5,264) Division consolidation costs ...- 126 Asset impairment...

  • Page 100
    ...TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) MACY'S, INC. Condensed Consolidating Balance Sheet As of February 2, 2008 (millions) Parent Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Consolidated ASSETS: Current Assets: Cash and cash equivalents ...Receivables ...Merchandise...

  • Page 101
    ...) MACY'S, INC. Condensed Consolidating Statement of Income For 2007 (millions) Parent Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Consolidated Net sales ...Cost of sales ...Gross margin ...Selling, general and administrative expenses ...May integration costs ...Operating income...

  • Page 102
    ...) MACY'S, INC. Condensed Consolidating Statement of Cash Flows For 2007 (millions) Parent Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Consolidated Cash flows from continuing operating activities: Net income ...Loss from discontinued operations ...May integrations costs ...Equity...

  • Page 103
    ... costs ...Gains on the sale of accounts receivable ...Operating income (loss) ...Interest (expense) income, net: External ...Intercompany ...Equity in earnings of subsidiaries ...Income from continuing operations before income taxes ...Federal, state and local income tax benefit (expense) ...Income...

  • Page 104
    ...Parent Subsidiary Other Consolidating Issuer Subsidiaries Adjustments Consolidated Cash flows from continuing operating activities: Net income ...$ 995 $ 290 Income from discontinued operations ...- - Gains on the sale of accounts receivable ...- - May integrations costs ...- 355 Equity in earnings...

  • Page 105

  • Page 106
    ... the obligation of public companies to be socially responsible to the people and communities where they do business. At Macy's, Inc., we hold those same beliefs, along with a belief that actions speak louder than words when it comes to helping tackle some of the toughest problems facing us today...

  • Page 107
    ...p.m. (EST) 1-513-579-7028 Macy's, Inc. News & Information Request Hotline: 1-800-261-5385 WRITE: Macy's, Inc. Investor Relations Department 7 West Seventh Street Cincinnati, OH 45202 TRANSFER AGENT FOR MACY'S, INC. SHARES Macy's, Inc. c/o BNY Mellon Shareowner Services P.O. Box 358015 Pittsburgh, PA...

  • Page 108
    ...Corporate Officers Joel A. Belsky Controller Dennis J. Broderick General Counsel and Secretary David W. Clark Human Resources and Diversity Amy Hanson Property Development William L. Hawthorne III Diversity Strategies and Legal Affairs Bradley R. Mays Tax James A. Sluzewski Corporate Communications...

  • Page 109
    7 West Seventh Street • Cincinnati, OH 45202 151 West 34th Street • New York, NY 10001 www.macysinc.com www.macys.com www.bloomingdales.com