Macy's 2009 Annual Report Download - page 76

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
current combined borrowing availability under the bank credit agreement described above. The issuance of
commercial paper will have the effect, while such commercial paper is outstanding, of reducing the Company’s
borrowing capacity under the bank credit agreement by an amount equal to the principal amount of such
commercial paper. The Company had no commercial paper outstanding under its commercial paper program as
of or during the years ended January 30, 2010 and January 31, 2009.
This program, which is an obligation of a wholly-owned subsidiary of Macy’s, Inc., is not secured.
However, Parent has fully and unconditionally guaranteed the obligations.
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 30, 2010 or January 31, 2009.
12. Accounts Payable and Accrued Liabilities
January 30,
2010
January 31,
2009
(millions)
Accounts payable .............................................. $ 484 $ 611
Liabilities to customers .......................................... 670 672
Lease related liabilities .......................................... 265 255
Accrued wages and vacation ...................................... 307 136
Taxes other than income taxes .................................... 199 195
Current portion of workers’ compensation and general liability reserves . . . 141 153
Accrued interest ............................................... 122 132
Current portion of post employment and postretirement benefits ......... 94 123
Severance and relocation ........................................ 71 30
Other ........................................................ 273 321
$2,626 $2,628
Liabilities to customers includes liabilities related to gift cards and customer award certificates of $594
million at January 30, 2010 and $599 million at January 31, 2009 and also includes an estimated allowance for
future sales returns of $65 million at January 30, 2010 and $59 million at January 31, 2009. Adjustments to the
allowance for future sales returns, which amounted to a charge of $6 million for 2009, a credit of $14 million for
2008, and a credit of $5 million for 2007, are reflected in cost of sales.
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