Macy's 2009 Annual Report Download - page 97

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
20. Quarterly Results (unaudited)
Unaudited quarterly results for the last two years were as follows:
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
(millions, except per share data)
2009:
Net sales ............................................... $5,199 $ 5,164 $ 5,277 $ 7,849
Cost of sales ............................................ (3,219) (3,021) (3,156) (4,577)
Gross margin ........................................... 1,980 2,143 2,121 3,272
Selling, general and administrative expenses .................. (1,956) (1,861) (2,033) (2,212)
Division consolidation costs and store closing related costs ....... (138) (34) (33) (71)
Asset impairment charges .................................–––(115)
Net income (loss) ........................................ (88) 7 (35) 466
Basic earnings (loss) per share .............................. (.21) .02 (.08) 1.10
Diluted earnings (loss) per share ............................ (.21) .02 (.08) 1.10
2008:
Net sales ............................................... $5,747 $ 5,718 $ 5,493 $ 7,934
Cost of sales ............................................ (3,527) (3,346) (3,324) (4,812)
Gross margin ........................................... 2,220 2,372 2,169 3,122
Selling, general and administrative expenses .................. (2,103) (2,037) (2,085) (2,256)
Division consolidation costs and store closing related costs ....... (87) (26) (16) (58)
Asset impairment charges ................................. – (50) – (161)
Goodwill impairment charges ..............................–––(5,382)
Net income (loss) ........................................ (59) 73 (44) (4,773)
Basic earnings (loss) per share .............................. (.14) .17 (.10) (11.33)
Diluted earnings (loss) per share ............................ (.14) .17 (.10) (11.33)
21. Condensed Consolidating Financial Information
The senior notes and senior debentures of the Company described in Note 11, which constitute debt
obligations of Parent’s wholly-owned subsidiary, Macy’s Retail Holdings, Inc. (“Subsidiary Issuer”) are fully
and unconditionally guaranteed by Parent. In the following condensed consolidating financial statements, “Other
Subsidiaries” includes all other direct subsidiaries of Parent, including FDS Bank, Leadville Insurance Company
and Snowdin Insurance Company and, prior to the respective dates of their dispositions, Priscilla of Boston and
David’s Bridal, Inc. and its subsidiaries, including After Hours Formalwear, Inc. and, after its transfer to Parent
on November 2, 2008, Macy’s Merchandising Group, Inc. and its subsidiary Macy’s Merchandising Group
International, LLC. “Subsidiary Issuer” includes operating divisions and non-guarantor subsidiaries of the
Subsidiary Issuer on an equity basis. The assets and liabilities and results of operations of the non-guarantor
subsidiaries of the Subsidiary Issuer (including, prior to its transfer to Parent on November 2, 2008, Macy’s
Merchandising Group, Inc. and its subsidiary Macy’s Merchandising Group International, LLC) are also
reflected in “Other Subsidiaries.”
Condensed Consolidating Balance Sheets as of January 30, 2010 and January 31, 2009, the related
Condensed Consolidating Statements of Operations for 2009, 2008 and 2007, and the related Condensed
Consolidating Statements of Cash Flows for 2009, 2008, and 2007 are presented on the following pages.
F-49