Macy's 2008 Annual Report Download - page 36

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effective for the Company on November 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.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk.
The Company is exposed to market risk from changes in interest rates that may adversely affect its financial
position, results of operations and cash flows. In seeking to minimize the risks from interest rate fluctuations, the
Company manages exposures through its regular operating and financing activities and, when deemed
appropriate, through the use of derivative financial instruments. The Company does not use financial instruments
for trading or other speculative purposes and is not a party to any leveraged financial instruments.
The Company is exposed to interest rate risk through its borrowing activities, which are described in Note
11 to the Consolidated Financial Statements. The majority of the Company’s borrowings are under fixed rate
instruments. However, the Company, from time to time, may use interest rate swap and interest rate cap
agreements to help manage its exposure to interest rate movements and reduce borrowing costs. At January 31,
2009, the Company was not a party to any derivative financial instruments and based on the Company’s lack of
market risk sensitive instruments 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 called for by this item is set forth in the Company’s Consolidated Financial Statements and
supplementary data contained in this report and is incorporated herein by this reference. Specific financial
statements and supplementary data can be found at the pages listed in the following index:
INDEX
Page
Report of Management ................................................................... F-2
Report of Independent Registered Public Accounting Firm ...................................... F-3
Consolidated Statements of Operations for the fiscal years ended
January 31, 2009, February 2, 2008 and February 3, 2007 ..................................... F-5
Consolidated Balance Sheets at January 31, 2009 and February 2, 2008 ............................ F-6
Consolidated Statements of Changes in Shareholders’ Equity for the fiscal years ended
January 31, 2009, February 2, 2008 and February 3, 2007 ..................................... F-7
Consolidated Statements of Cash Flows for the fiscal years ended
January 31, 2009, February 2, 2008 and February 3, 2007 ..................................... F-8
Notes to Consolidated Financial Statements .................................................. F-9
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