Macy's 2008 Annual Report Download - page 77

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Senior Notes and Debentures
The senior notes and the senior debentures are unsecured obligations of a wholly-owned subsidiary of
Macy’s, Inc. and Parent has fully and unconditionally guaranteed these obligations (see Note 21, “Condensed
Consolidating Financial Information”).
Other Financing Arrangements
There were no other standby letters of credit outstanding at January 31, 2009 and $13 million of other
standby letters of credit outstanding at February 2, 2008.
12. Accounts Payable and Accrued Liabilities
January 31,
2009
February 2,
2008
(millions)
Accounts payable .............................................. $ 611 $ 693
Liabilities to customers .......................................... 672 733
Lease related liabilities .......................................... 255 261
Current portion of workers’ compensation and general liability reserves . . . 153 156
Severance and relocation ........................................ 30 30
Accrued wages and vacation ...................................... 136 125
Taxes other than income taxes .................................... 195 185
Accrued interest ............................................... 132 149
Current portion of post employment and postretirement benefits ......... 123 123
Other ........................................................ 321 274
$2,628 $2,729
Liabilities to customers includes liabilities related to gift cards and customer award certificates of $599
million at January 31, 2009 and $635 million at February 2, 2008 and also includes an estimated allowance for
future sales returns of $59 million at January 31, 2009 and $73 million at February 2, 2008. Adjustments to the
allowance for future sales returns, which amounted to a credit of $14 million for 2008, a credit of $5 million for
2007, and a credit of less than $1 million for 2006, are reflected in cost of sales.
Changes in workers’ compensation and general liability reserves, including the current portion, are as
follows:
2008 2007 2006
(millions)
Balance, beginning of year ................................................. $471 $487 $474
Charged to costs and expenses .............................................. 164 131 178
Payments, net of recoveries ................................................. (140) (147) (165)
Balance, end of year ...................................................... $495 $471 $487
The non-current portion of workers’ compensation and general liability reserves is included in other
liabilities on the Consolidated Balance Sheets. At January 31, 2009 and February 2, 2008, workers’
compensation and general liability reserves included $90 million and $81 million, respectively, of liabilities
which are covered by deposits and receivables included in current assets on the Consolidated Balance Sheets.
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