Macy's 2009 Annual Report Download - page 63

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The following table shows for 2009, the beginning and ending balance of, and the activity associated with,
the severance accrual established in connection with the division consolidation and localization initiative
announced in February 2009:
January 31, 2009
Charged
To Division
Consolidation
Costs Payments January 30, 2010
(millions)
Severance costs .............................. $30 $166 $(127) $69
The Company expects to pay out the accrued severance costs, which are included in accounts payable and
accrued liabilities on the Consolidated Balance Sheets, prior to July 31, 2010.
During 2008, the Company incurred $30 million of severance costs in connection with the My Macy’s
expansion announced in February 2009.
The following table shows for 2008, the beginning and ending balance of, and the activity associated with,
the severance accrual established in connection with the division consolidation and localization initiative
announced in February 2009:
February 2, 2008
Charged
To Division
Consolidation
Costs Payments January 31, 2009
(millions)
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-based Macy’s Midwest organization into Atlanta-based Macy’s
South and the Seattle-based Macy’s Northwest organization into San Francisco based Macy’s West. The Atlanta-
based division was renamed Macy’s Central.
During 2008, the Company recorded $146 million of costs and expenses associated with the division
consolidation and localization initiative announced in February 2008, consisting primarily of severance costs and
other human resource-related costs.
The following table shows for 2008, the beginning and ending balance of, and the activity associated with,
the severance accrual established in connection with the division consolidation and localization initiative
announced in February 2008:
February 2, 2008
Charged
To Division
Consolidation
Costs Payments January 31, 2009
(millions)
Severance costs .............................. $– $69 $(69) $ –
In January 2010, the Company announced the closure of five underperforming Macy’s stores. In connection
with this announcement and the plan to dispose of these locations, the Company incurred $6 million of store
closing-related costs during 2009. Of the $6 million of store closing-related costs incurred in 2009,
approximately $4 million relates to lease obligations and other store liabilities and approximately $2 million
relates to severance costs.
F-15