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MACY’S, INC. • 2009 ANNUAL REPORT
CUSTOMER
FOCUSED ON THE

Table of contents

  • Page 1
    FOCUSED ON THE CUSTOMER MACY'S, INC. • 20 09 ANNUAL REPORT

  • Page 2
    ... to each and every customer with obvious value, engaging service and unforgettable moments. MACY'S, INC. IS ONE OF THE NATION'S PREMIER RETAILERS, WITH FISCAL 2009 SALES OF $23.5 BILLION. THE COMPANY OPERATES THE MACY'S AND BLOOMINGDALE'S BRANDS, WITH ABOUT 850 DEPARTMENT STORES IN 45 STATES, THE...

  • Page 3
    ... the year, Bloomingdale's debuted an entirely new Beauty Floor on the main level of its Manhattan ï¬,agship store. In early 2010, two Bloomingdale's stores (one for apparel, one for home merchandise) opened in Dubai. These stores, operated under a license agreement with Al Tayer Insignia, a company...

  • Page 4
    ... in spring 2010) and Sunglass Hut eyewear (with a rollout planned to begin in 2010). Exclusive and limited-distribution merchandise (including private brands) at Macy's rose to more than 42 percent of total sales in 2009. In fall 2010, Macy's will become the exclusive department store retailer of...

  • Page 5
    ... FORM 10-K Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Fiscal Year Ended January 30, 2010 Commission File Number: 1-13536 Macy's, Inc. 7 West Seventh Street Cincinnati, Ohio 45202 (513) 579-7000 and 151 West 34th Street New York, New York 10001 (212...

  • Page 6

  • Page 7
    ... and assumptions; competitive pressures from department and specialty stores, general merchandise stores, manufacturers' outlets, off-price and discount stores, and all other retail channels, including the Internet, mail-order catalogs and television; general consumer-spending levels, including the...

  • Page 8
    ... its corporate name from Federated Department Stores, Inc. to Macy's, Inc. and the Company's shares began trading under the ticker symbol "M" on the New York Stock Exchange ("NYSE"). On June 1, 2005, the Company and certain of its subsidiaries entered into a Purchase, Sale and Servicing Transfer...

  • Page 9
    ..., the Company restructured the field organizations in these geographical areas to better localize product offerings and improve service levels. Under the new structure, central buying, merchandising planning, stores senior management and marketing functions for both Macy's and Bloomingdale's branded...

  • Page 10
    ...direct-to-customer business operations compete with many retailing formats in the geographic areas in which they operate, including department stores, specialty stores, general merchandise stores, off-price and discount stores, new and established forms of home shopping (including the Internet, mail...

  • Page 11
    ... retired from the Company on March 31, 2010. Janet E. Grove has been Vice Chair of the Company since February 2009 responsible for facilitating the transition of merchandising, planning and private brand development functions under the new Macy's organization structure and International Retail Store...

  • Page 12
    ... February 2009 overseeing Bloomingdale's, co-leading the My Macy's integration and expansion, and facilitating the transition of stores, merchandising and planning functions under the new Macy's organization structure; prior thereto she served as Vice Chair, Department Store Divisions of the Company...

  • Page 13
    ..., 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 and credit availability...

  • Page 14
    ...have a negative impact on the Company's cash flows, financial condition or results of operations. Increases in the cost of employee benefits could impact the Company's financial results and cash flow. The Company's expenses relating to employee health benefits are significant. Unfavorable changes in...

  • Page 15
    ..., the Company depends upon such third parties to provide essential leaseholds, products, services or other benefits, including with respect to store and distribution center locations, merchandise, advertising, software development and support, logistics, other agreements for goods and services 9

  • Page 16
    in order to operate the Company's business in the ordinary course, extensions of credit, credit card accounts and related receivables, and other vital matters. Current economic, industry and market conditions could result in increased risks to the Company associated with the potential financial ...

  • Page 17
    ... stock and credit market conditions; risks relating to the Company's business and its industry, including those discussed above; strategic actions by the Company or its competitors; variations in the Company's quarterly results of operations; future sales or purchases of the Company's common stock...

  • Page 18
    ... the Company's Macy's branded operational structure. The Company's retail stores are located at urban or suburban sites, principally in densely populated areas across the United States. Store count activity was as follows: 2009 2008 2007 Store count at beginning of fiscal year ...New stores opened...

  • Page 19
    ... Equity Securities. The Common Stock is listed on the NYSE under the trading symbol "M." As of January 30, 2010, the Company had approximately 24,400 stockholders of record. The following table sets forth for each fiscal quarter during 2009 and 2008 the high and low sales prices per share of Common...

  • Page 20
    ... and the reinvestment of all dividends, if any. $200 M S&P 500 Retail Department Stores $150 S&P 500 $100 $50 $0 2005 2006 2007 2008 2009 2010 The companies included in the S&P Retail Department Store Index are Dillard's, Macy's, J.C. Penney, Kohl's, Nordstrom and Sears, as well as May for the...

  • Page 21
    ...(25) Gross margin ...Selling, general and administrative expenses ...Division consolidation costs and store closing related costs ...Asset impairment charges ...Goodwill impairment charges ...May integration costs ...Gains on sale of accounts receivable ...Operating income (loss) ...Interest expense...

  • Page 22
    ... of Financial Condition and Results of Operations. The Company is a retail organization operating retail stores and Internet websites under two brands (Macy's and Bloomingdale's) that sell a wide range of merchandise, including men's, women's and children's apparel and accessories, cosmetics, home...

  • Page 23
    ... with the division consolidations announced in February 2009, consisting primarily of severance and other human resource-related costs. During January 2010, the Company announced plans to launch a new Bloomingdale's Outlet store concept in 2010, consisting of four Bloomingdale's Outlet stores, each...

  • Page 24
    ..., updated better women's sportswear, women's shoes, outerwear, jewelry and watches, housewares, home textiles and mattresses. Sales of the Company's private label brands continued to be strong and represented approximately 19% of net sales in the Macy's-branded stores in 2009. The weaker businesses...

  • Page 25
    ... the division consolidation and localization initiatives announced in February 2009, primarily severance and other human resource-related costs, and $6 million of costs and expenses related to the store closings announced in January 2010. Division consolidation costs and store closing-related costs...

  • Page 26
    ... and other human resource-related costs, $30 million of severance costs in connection with the division consolidation and localization initiatives announced in February 2009, and $11 million of costs and expenses related to the store closings announced in January 2009. Asset impairment charges...

  • Page 27
    ... opened seven Macy's department stores and two Macy's furniture galleries. In 2010, the Company intends to open one new Bloomingdale's store and four Bloomingdale's outlet stores. The Company's budgeted capital expenditures are approximately $550 million for 2010, primarily related to technology and...

  • Page 28
    .... By using cash on hand to repurchase and retire this debt early, the Company reduced its interest expense in 2009 by approximately $7 million, net of expenses associated with the debt tender offer. Between January 30, 2010 and the date of this report, consistent with its strategy to reduce its...

  • Page 29
    ... on prevailing market conditions, alternate uses of capital and other factors. On February 19, 2010, the Company's board of directors declared a quarterly dividend of 5 cents per share on its common stock, payable April 1, 2010 to Macy's shareholders of record at the close of business on March...

  • Page 30
    ... assets and companies. Acquisition transactions, if any, are expected to be financed from one or more of the following 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...

  • 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
    ... expenditures 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 of the reporting unit directly resulting from the use of its assets in its operations. The allocation of the...

  • Page 33
    ...tax statutes, regulations and case law of the various jurisdictions in which the Company operates. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities...

  • Page 34
    ... 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 expected long-term rate of return assumption by...

  • Page 35
    ... levels by 0.25% would increase or decrease the projected benefit obligation at January 30, 2010 by approximately $15 million and change estimated 2010 pension expense by approximately $3 million. New Pronouncements In December 2009, the FASB issued Accounting Standards Update No. 2009-16, relating...

  • Page 36
    ... financial statements and supplementary data can be found at the pages listed in the following index: INDEX Page Report of Management ...Report of Independent Registered Public Accounting Firm ...Consolidated Statements of Operations for the fiscal years ended January 30, 2010, January 31, 2009...

  • Page 37
    ... reported, within the time periods specified in the SEC rules and forms, and that information required to be disclosed by the Company in the reports the Company files or submits under the Exchange Act is accumulated and communicated to the Company's management, including its Chief Executive Officer...

  • Page 38
    ... of Directors and Executive Officers. Information called for by this item is set forth under "Compensation Discussion & Analysis," "Compensation of the Named Executives for 2009," "Compensation Committee Report" and "Compensation Committee Interlocks and Insider Participation" in the Proxy Statement...

  • Page 39
    ... of Series A Junior Participating Preferred Stock By-Laws Certificate of Incorporation By-Laws Indenture, dated as of December 15, 1994, 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 (the...

  • Page 40
    ..., Inc. (f/k/a 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 Guarantee of Securities, dated as of August 30, 2005, by the Company relating to...

  • Page 41
    ... Number Description Document if Incorporated by Reference 4.5 Indenture, dated as of June 17, 1996, among the Company (as successor to The May Department Stores Company ("May Delaware")), Macy's Retail (f/k/a The May Department Stores Company (NY)) ("May New York") and The Bank of New York...

  • Page 42
    ...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 Tax Sharing Agreement Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q filed on September 8, 2009 (the "September 8, 2009...

  • Page 43
    ... to Credit Card Program Agreement, dated May 22, 2006, between the Company, FDS Bank, MCCS, Macy's West Stores, Inc. (f/k/a Macy's Department Stores, Inc,) ("MWSI"), Bloomingdale's, Inc. ("Bloomingdale's") and Department Stores National Bank ("DSNB") and Citibank Restated Letter Agreement, dated May...

  • Page 44
    ... as of June 1, 2009, among the Company, FDS Bank, MCCS, MWSI, Bloomingdale's and DSNB Seventh Amendment to Credit Card Program Agreement, effective as of February 26, 2010, among the Company, FDS Bank, MCCS, MWSI, Bloomingdale's and DSNB 1995 Executive Equity Incentive Plan, as amended and restated...

  • Page 45
    ... 1, 2008 * Cash Account Pension Plan (amending and restating the Company Cash 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...

  • Page 46
    ...following financial statements from Macy's, Inc.'s Annual Report on Form 10-K for the year ended January 30, 2010, filed on March 31, 2010, formatted in XBRL: (i) Consolidated Statements of Operations, (ii) Consolidated Balance Sheets, (iii) Consolidated Statements of Changes in Shareholders' Equity...

  • 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 March 31, 2010. Signature Title * Terry J. Lundgren Chairman of the Board, President and Chief Executive Officer (principal executive officer...

  • Page 48
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  • Page 49
    ... Registered Public Accounting Firm ...Consolidated Statements of Operations for the fiscal years ended January 30, 2010, January 31, 2009 and February 2, 2008 ...Consolidated Balance Sheets at January 30, 2010 and January 31, 2009 ...Consolidated Statements of Changes in Shareholders' Equity for...

  • Page 50
    ... maintaining adequate internal control over financial reporting, as defined in Exchange Act Rule 13a-15(f) and has issued Management's Report on Internal Control over Financial Reporting. The Consolidated Financial Statements of the Company have been audited by KPMG LLP. Their report expresses their...

  • Page 51
    ... ACCOUNTING FIRM The Board of Directors and Shareholders Macy's, Inc.: We have audited the accompanying consolidated balance sheets of Macy's, Inc. and subsidiaries as of January 30, 2010 and January 31, 2009, and the related consolidated statements of operations, changes in shareholders' equity...

  • Page 52
    ... per share data) 2009 2008 2007 Net sales ...Cost of sales ...Gross margin ...Selling, general and administrative expenses ...Division consolidation costs and store closing related costs ...Asset impairment charges ...Goodwill impairment charges ...May integration costs ...Operating income (loss...

  • Page 53
    ...Liabilities: Short-term debt ...Merchandise 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 (420.8 and 420.1 shares...

  • Page 54
    ...Total comprehensive income ...Common stock dividends ($.5175 per share) ...Stock repurchases ...Stock-based compensation expense ...Stock issued under stock plans ...Retirement of common stock ...Deferred compensation plan distributions ...Income tax benefit related to stock plan activity ...Balance...

  • Page 55
    ...) 2009 2008 2007 Cash flows from continuing operating activities: Net income (loss) ...Adjustments to reconcile net income (loss) to net cash provided by continuing operating activities: Loss from discontinued operations ...Division consolidation costs and store closing related costs ...Asset...

  • Page 56
    ... operating retail stores and Internet websites under two brands (Macy's and Bloomingdale's) that sell a wide range of merchandise, including men's, women's and children's apparel and accessories, cosmetics, home furnishings and other consumer goods in 45 states, the District of Columbia, Guam...

  • Page 57
    ... Company licenses third parties to operate certain departments in its stores. The Company receives commissions from these licensed departments based on a percentage of net sales. Commissions are recognized as income at the time merchandise is sold to customers. Sales taxes collected from customers...

  • Page 58
    ... of sales are recognized as incurred. The lease term, which includes all renewal periods that are considered to be reasonably assured, begins on the date the Company has access to the leased property. The carrying value of long-lived assets is periodically reviewed by the Company whenever events or...

  • Page 59
    ... five years. Capitalized software is included in other assets on the Consolidated Balance Sheets. Historically, the Company offered both expiring and non-expiring gift cards to its customers. At the time gift cards are sold, no revenue is recognized; rather, the Company records an accrued liability...

  • Page 60
    ...increase 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...

  • Page 61
    ... on the Company's consolidated financial position, results of operations or cash flows. In June 2009, the FASB issued new authoritative guidance amending ASC Topic 855, "Subsequent Events," related to the accounting for and disclosures of subsequent events that occur after the balance sheet date but...

  • Page 62
    ... out nationally to new local markets in 2009, the Company's Macy's branded stores have been reorganized into a unified operating structure, through additional division consolidations, to support the Macy's business. Division central office organizations have been eliminated in New York-based Macy...

  • Page 63
    ... 31, 2009 Severance costs ... $- $30 $- $30 In February 2008, the Company announced certain division consolidations in combination with the My Macy's localization initiative. The Company consolidated the Minneapolis-based Macy's North organization into New York-based Macy's East, the St. Louis...

  • Page 64
    ..., $40 million of which related to store closings announced in January 2009, $63 million associated with acquired indefinite-lived private brand tradenames and $12 million associated with marketable securities. Long-lived assets held for use are reviewed for impairment whenever events or changes in...

  • Page 65
    ...2009 and 2008, respectively. The fair values of these locations were calculated based on the projected cash flows and an estimated risk-adjusted rate of return that would be used by market participants in valuing these assets or based on prices of similar assets. The Company performed both an annual...

  • Page 66
    ...the conversion 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...

  • Page 67
    ...the Company completed its review of store locations and distribution center facilities, closing certain underperforming stores, temporarily closing other stores for remodeling to optimize merchandise offering strategies, closing certain distribution center facilities, and consolidating operations in...

  • Page 68
    ... Company's After Hours Formalwear business, totaled $22 million before income taxes, with a related income tax benefit of $6 million. 7. Receivables Receivables were $358 million at January 30, 2010, compared to $360 million at January 31, 2009. In connection with the sales of credit card accounts...

  • Page 69
    ... FINANCIAL STATEMENTS - (Continued) services. The amounts earned under the Program Agreement related to the servicing functions are deemed adequate compensation and, accordingly, no servicing asset or liability has been recorded on the Consolidated Balance Sheets. Amounts received under the Program...

  • Page 70
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Minimum rental commitments (excluding executory costs) at January 30, 2010, for noncancellable leases are: Capitalized Leases Operating Leases (millions) Total Fiscal year: 2010 ...2011 ...2012 ...2013 ...2014 ...After 2014 ...Total minimum ...

  • Page 71
    ... 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. Also during 2008, the Company recognized...

  • Page 72
    ... expense is shown below: (millions) Fiscal year: 2010 ...2011 ...2012 ...2013 ...2014 ... $41 39 37 34 31 As a result of the acquisition of May, the Company established intangible assets related to favorable leases, customer lists, customer relationships and both definite and indefinite-lived...

  • Page 73
    ... per annum to 8.875% in April 2009 as a result of a downgrade of the notes by specified rating agencies. The rate of interest payable in respect of these senior notes could increase or decrease by up to one percent per annum from its current level in the event of one or more downgrades or upgrades...

  • Page 74
    ..., 2010 could increase or decrease by up to one percent per annum from its current level in the event of one or more downgrades or upgrades of the notes by specified rating agencies. On February 10, 2009, the Company, through its wholly owned subsidiary, Macy's Retail Holdings, Inc., completed a cash...

  • Page 75
    ... of credit outstanding at January 30, 2010, and January 31, 2009, respectively. There were no borrowings under this agreement during 2009. 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 for...

  • Page 76
    ... 31, 2010 2009 (millions) Accounts payable ...Liabilities to customers ...Lease related liabilities ...Accrued wages and vacation ...Taxes other than income taxes ...Current portion of workers' compensation and general liability reserves ...Accrued interest ...Current portion of post employment and...

  • Page 77
    ...) $411 During the fourth quarter of 2009, the Company settled Internal Revenue Service ("IRS") examinations for fiscal years 2008, 2007 and 2006. As a result of the settlement, the Company recognized previously unrecognized tax benefits and related accrued interest totaling $21 million, primarily...

  • Page 78
    ... 30, January 31, 2010 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...

  • Page 79
    ... tax assets, that, if recognized would affect the effective income tax rate, was $135 million and $160 million, respectively. The Company classifies unrecognized tax benefits not expected to be settled within one year as other liabilities on the Consolidated Balance Sheets. At January 30, 2010...

  • Page 80
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) 14. Retirement Plans The Company has a funded defined benefit plan ("Pension Plan") and a defined contribution plan ("Savings Plan") which cover substantially all employees who work 1,000 hours or more in a year. In addition, the Company has ...

  • Page 81
    ... cost for the Pension Plan: 2009 2008 2007 Discount rate prior to change in measurement date ...Discount rate subsequent to change in measurement date ...Expected long-term return on plan assets ...Rate of compensation increases ...The Pension Plan's assumptions are evaluated annually and updated...

  • Page 82
    ... 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 on the assets of the Pension Plan for a prudent level of risk. Risks are...

  • Page 83
    ... Assets Inputs (Level 1) (Level 2) (millions) Significant Unobservable Inputs (Level 3) Total Cash and cash equivalents ...$ 184 Equity securities: U.S ...613 International ...262 Fixed income securities: U. S. Treasury bonds ...41 Other Government bonds ...11 Agency backed bonds ...15 Corporate...

  • Page 84
    ...at the reporting date ...Relating to assets sold during the period ...Purchases, sales, issuances and settlements, net ...Balance, end of year ... $419 (13) (21) 28 $413 During 2009, the Company made funding contributions to the Pension Plan totaling approximately $370 million. On February 22, 2010...

  • Page 85
    ... 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 30, 2010 and January 31, 2009 Accounts payable and accrued liabilities ...Other...

  • Page 86
    ... the projected benefit obligations for the supplementary retirement plan at January 30, 2010 and January 31, 2009: 2009 2008 Discount rate ...Rate of compensation increases ... 5.65% 7.45% 4.90% 7.20% The following weighted average assumptions were used to determine net pension costs for the...

  • Page 87
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) The Company develops its rate of compensation increase assumption on an age-graded basis based on recent experience and reflects an estimate of future compensation levels taking into account general increase levels, seniority, promotions and ...

  • Page 88
    ... 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 30, 2010 and January 31, 2009 Accounts payable and accrued liabilities ...Other...

  • Page 89
    ... employees are affected by increases in health care costs. The following provides the assumed health care cost trend rates related to the Company's accumulated postretirement benefit obligations at January 30, 2010 and January 31, 2009: 2009 2008 Health care cost trend rates assumed for next year...

  • Page 90
    ... 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 91
    ...related to stock credits, reflecting a decrease in the stock price used to calculate settlement amounts. All stock-based compensation expense is recorded in selling, general and administrative expense in the Consolidated Statements of Operations. The income tax benefit recognized in the Consolidated...

  • Page 92
    .... Cash received from stock option exercises under the Company's equity plan amounted to approximately $8 million for 2009, $6 million for 2008 and $204 million for 2007. There were no tax benefits realized from exercised stock options and vested restricted stock for 2009. Tax benefits realized...

  • Page 93
    ... to estimate the total shareholder return ranking of the Company among a ten-company executive compensation peer group over the remaining performance period. The expected volatility of the Company's common stock at the date of grant was estimated based on a historical average volatility rate for the...

  • Page 94
    ... employee tax liabilities related to stock plan activity and shares maintained in a trust related to deferred 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...

  • Page 95
    ... Company's non-financial assets that were measured at fair value on a nonrecurring basis during 2009: Fair Value Measurements Quoted Prices in Active Significant Significant Markets for Observable Unobservable Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) (millions) Total Long-lived...

  • Page 96
    ...: 2009 Income Shares 2008 Loss Shares Income (millions, except per share data) 2007 Shares Income (loss) from continuing operations and average number of shares outstanding ...Shares to be issued under deferred compensation plans ...Basic earnings (loss) per share ...Effect of dilutive securities...

  • Page 97
    ... Quarter Quarter Quarter Quarter (millions, except per share data) 2009: Net sales ...Cost of sales ...Gross margin ...Selling, general and administrative expenses ...Division consolidation costs and store closing related costs ...Asset impairment charges ...Net income (loss) ...Basic earnings...

  • Page 98
    ... STATEMENTS - (Continued) MACY'S, INC. Condensed Consolidating Balance Sheet As of January 30, 2010 (millions) Parent Subsidiary Other Consolidating Issuer Subsidiaries Adjustments Consolidated ASSETS: Current Assets: Cash and cash equivalents ...$1,318 $ 60 Receivables ...- 82 Merchandise...

  • Page 99
    ... FINANCIAL STATEMENTS - (Continued) MACY'S, INC. Condensed Consolidating Statement of Income For 2009 (millions) Parent Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Consolidated Net sales ...Cost of sales ...Gross margin ...Selling, general and administrative expenses ...Division...

  • Page 100
    ... FINANCIAL STATEMENTS - (Continued) MACY'S, INC. Condensed Consolidating Statement of Cash Flows For 2009 (millions) Parent Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Consolidated Cash flows from operating activities: Net income (loss) ...Division consolidation costs ...Asset...

  • Page 101
    ...) Total Assets ...$4,863 $15,189 LIABILITIES AND SHAREHOLDERS' EQUITY: Current Liabilities: Short-term debt ...$ - $ 963 Merchandise accounts payable ...- 595 Accounts payable and accrued liabilities ...143 1,336 Income taxes ...- 23 Deferred income taxes ...10 234 Total Current Liabilities ...Long...

  • Page 102
    ... expenses ...Division consolidation costs ...Asset impairment charges ...Goodwill impairment charges ...Operating loss ...Interest (expense) income, net: External ...Intercompany ...Equity in losses of subsidiaries ...Loss before income taxes ...Federal, state and local income tax benefit (expense...

  • Page 103
    ... TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) MACY'S, INC. Condensed Consolidating Statement of Cash Flows For 2008 (millions) Parent Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Consolidated Cash flows from operating activities: Net loss ...Division consolidation costs...

  • Page 104
    ...Selling, general and administrative expenses ...May integration costs ...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...

  • Page 105
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) MACY'S, INC. Condensed Consolidating Statement of Cash Flows For 2007 (millions) Parent Subsidiary Other Consolidating Issuer Subsidiaries Adjustments Consolidated Cash flows from continuing operating activities: Net income ...$ 893 $ 265 ...

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  • Page 109
    ... site, Green Living, so our 160,000 plus associates can interact with the company on sustainability-related topics at work and home; • Substituted biodegradable packing materials in place of foam "peanuts" in shipping products bought by customers online; • Pioneered efforts to reduce the number...

  • Page 110
    ... US www.macysinc.com/ir • Sign up to have Macy's, Inc.'s news releases sent to you via e-mail by subscribing to News Direct. • Get the latest stock price and chart, or take advantage of the historical price look-up feature. CALL: Macy's, Inc. Investor Relations Department Monday-Friday, 8:30...

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    ... Grove Vice Chair Susan D. Kronick Vice Chair (retired March 31, 2010) OTHER MACY'S, INC. CORPORATE OFFICERS Joel A. Belsky Controller Dennis J. Broderick General Counsel and Secretary David W. Clark Human Resources and Diversity Amy Hanson Property Development, Credit and Customer Services William...

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