Macy's 2009 Annual Report Download - page 62

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
In January 2010, the FASB issued Accounting Standards Update No. 2010-06, which provides amendments
and requires new disclosures relating to ASC Topic 820, “Fair Value Measurements and Disclosures,” and also
conforming amendments to guidance relating to ASC Topic 715, “Compensation – Retirement Benefits.” This
guidance is effective for interim and annual periods beginning after December 15, 2009, except for the disclosure
requirement regarding purchases, sales, issuances and settlements in the rollforward of activity in Level 3 fair
value measurements, which is effective for interim and annual periods beginning after December 15, 2010. The
adoption of this guidance is limited to the form and content of disclosures, and the Company does not anticipate
that the adoption will have a material impact on the Company’s consolidated financial position, results of
operations or cash flows.
In February 2010, the FASB issued Accounting Standards Update No. 2010-09, which provides
amendments to ASC Topic 855, “Subsequent Events,” including removing the requirement for a Securities and
Exchange Commission filer to disclose the date through which subsequent events have been evaluated. This
guidance, except as it relates to conduit debt obligors, is effective upon issuance. The Company adopted this
guidance as of January 30, 2010. The adoption of this guidance was limited to the form and content of
disclosures and did not have a material 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 began a localization initiative, called “My Macy’s.” This initiative is
intended to strengthen local market focus and enhance selling service in an effort to both accelerate same-store
sales growth and reduce expense. To maximize the results from My Macy’s, the Company has taken action,
initially in selected markets, that: concentrate more management talent in local markets, effectively reducing the
“span of control” over local stores; create new positions in the field to work with planning and buying executives
in helping to understand and act on the merchandise needs of local customers; and empower locally based
executives to make more and better decisions.
In February 2009, the Company announced the expansion of the My Macy’s localization initiative across
the country. As My Macy’s was rolled 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’s East, San Francisco-based Macy’s West, Atlanta-based Macy’s Central and Miami-
based Macy’s Florida. The New York-based Macy’s Home Store and Macy’s Corporate Marketing divisions no
longer exist as separate entities. Home Store functions have been integrated into the Macy’s national
merchandising, merchandise planning, stores and marketing organizations. Macy’s Corporate Marketing has
been integrated into the new unified marketing organization. The New York-based Macy’s Merchandising Group
has been refocused solely on the design, development and marketing of Macy’s family of private brands.
During 2009, the Company recorded $270 million of costs and expenses associated with the division
consolidation and localization initiative announced in February 2009, consisting primarily of severance costs and
other human resource-related costs.
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