Macy's 2010 Annual Report Download

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2010 ANNUAL REPORT
DEVELOPING
A CULTURE
OF GROWTH

Table of contents

  • Page 1
    2010 ANNUAL REPORT DEVELOPING A CULTURE OF GROWTH

  • Page 2
    ... products from rising young designers. Supporting these fashion brands are exceptional customer amenities - international visitors centers, personal shoppers, outstanding fitting rooms and lounges - elegant events and personalized, attentive service that strengthen customer relationships and build...

  • Page 3
    ... of cash after paying down more than $1.2 billion of debt and contributing $825 million to our pension plan during fiscal 2010. • Return on invested capital - a key measure of financial productivity - rose significantly in 2010 from 2009. Best of all, we are developing a culture of growth at Macy...

  • Page 4
    ...designers in Impulse, Macy's contemporary fashion department. Also in Impulse, we launched in early 2011 a new private brand called Bar III for women and men. In 2010, approximately 43 percent of Macy's sales were in exclusive or limited distribution brands and labels. Included in this total is Macy...

  • Page 5
    ... 20549 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 29, 2011 Commission File Number: 1-13536 7 West Seventh Street Cincinnati, Ohio 45202 (513) 579-7000 and 151 West 34th Street New York, New York 10001 (212) 494...

  • Page 6

  • Page 7
    ... 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 impact of general economic conditions, consumer disposable income...

  • Page 8
    ...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"). As of January 29, 2011, the operations of the Company included approximately 850 stores in 45 states, the District of Columbia, Guam...

  • Page 9
    ... Company's retail stores and Internet websites sell a wide range of merchandise, including men's, women's and children's apparel and accessories, cosmetics, home furnishings and other consumer goods. The specific assortments vary by size of store, merchandising character and character of customers...

  • Page 10
    ...-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 order...

  • Page 11
    ... Board; President and Chief Executive Officer; Director Vice Chair Chief Private Brand Officer Chief Administrative Officer Chief Merchandising Officer Chief Merchandise Planning Officer Chief Financial Officer Chief Stores Officer Chief Marketing Officer President - Stores Executive Vice President...

  • Page 12
    ... Planning Officer of the Company since February 2009; prior thereto she served as Chairman and CEO of Macy's Florida from July 2005 to February 2009 and as Senior Executive Vice President and Director of Stores of Bloomingdale's from April 1998 to July 2005. Karen M. Hoguet has been Chief Financial...

  • Page 13
    ..., value retailers, discounters, 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...

  • Page 14
    ... have on the Company-sponsored medical plans. Inability to access capital markets could adversely affect the Company's business or financial condition. Changes in the credit and capital markets, including market disruptions, limited liquidity and interest rate fluctuations, may increase the cost of...

  • Page 15
    ... risks associated with political or financial instability, trade restrictions, tariffs, currency exchange rates, transport capacity and costs and other factors relating to foreign trade. In addition, the Company's procurement of all its goods and services is subject to the effects of price increases...

  • Page 16
    ... to store and distribution center locations, merchandise, advertising, software development and support, logistics, other agreements for goods and services in order to operate the Company's business in the ordinary course, extensions of credit, credit card accounts and related receivables, and...

  • Page 17
    ... and financial performance, the Company's stock price could decline. Also, sales of a substantial number of shares of the Company's common stock in the public market or the appearance that these shares are available for sale could adversely affect the market price of the Company's common stock. Item...

  • Page 18
    ... 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: 2010 2009 2008 Store count at beginning of fiscal year ...New stores opened and other expansions ...Stores closed ...Store count...

  • Page 19
    ... Equity Securities. The Common Stock is listed on the NYSE under the trading symbol "M." As of January 29, 2011, the Company had approximately 23,000 stockholders of record. The following table sets forth for each fiscal quarter during 2010 and 2009 the high and low sales prices per share of Common...

  • Page 20
    ... $100 and the reinvestment of all dividends, if any. $160 M $140 $120 $100 $80 $60 $40 $20 $0 2006 2007 2008 2009 2010 2011 S&P 500 Retail Department Stores S&P 500 The companies included in the S&P Retail Department Store Index are Dillard's, Macy's, J.C. Penney, Kohl's, Nordstrom and Sears. 14

  • Page 21
    ......Net income (loss) ...Average number of shares outstanding ...Cash dividends paid per share (c) ...Depreciation and amortization ...Capital expenditures ...Balance Sheet Data (at year end): Cash and cash equivalents ...Total assets ...Short-term debt ...Long-term debt ...Shareholders' equity 2009...

  • Page 22
    ... 7. Management's Discussion and Analysis 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...

  • Page 23
    ...this report, particularly in "Risk Factors" and "Forward-Looking Statements." Results of Operations Net sales include merchandise sales, leased department income, shipping and handling fees and sales to third party retailers. In 2010, the Company began including sales of private brand goods directly...

  • Page 24
    ... in the My Macy's localization strategy. Geographically, sales in 2010 were strongest in Florida and the upper Midwest. By family of business, sales in 2010 were strongest in updated women's apparel, particularly the Company's I-N-C brand, jewelry and watches, men's apparel and accessories, luggage...

  • Page 25
    ..., 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 26
    ...and 2009, respectively. The Company's budgeted capital expenditures are approximately $800 million for 2011, primarily related to store remodels, maintenance, technology and omnichannel investments, and distribution network improvements, including construction of a new fulfillment center. Management...

  • Page 27
    ... four quarters of no more than 4.50. The Company's interest coverage ratio for 2010 was 5.64 and its leverage ratio at January 29, 2011 was 2.34, in each case as calculated in accordance with the credit agreement. The interest coverage ratio is defined as EBITDA (earnings before interest, taxes...

  • Page 28
    ...board of directors declared a quarterly dividend of 5 cents per share on its common stock, payable April 1, 2011 to Macy's shareholders of record at the close of business on March 15, 2011. At January 29, 2011, the Company had contractual obligations (within the scope of Item 303(a)(5) of Regulation...

  • Page 29
    ... corporate purposes, and the redemption or repurchase of debt or other securities through open market purchases, privately negotiated transactions or otherwise. Management believes the department store business and other retail businesses will continue to consolidate. The Company intends from time...

  • Page 30
    ... estimated useful life, estimated cash flows are revised accordingly, and the Company may be required to record an asset impairment write-down. Additionally, related liabilities arise such as severance, contractual obligations and other accruals associated with store closings from decisions...

  • Page 31
    ... capital 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...

  • Page 32
    ... Taxes Income taxes are estimated based on the 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...

  • Page 33
    ... assumptions relate to the long-term rate of return on plan assets (in the case of the Pension Plan), the discount rate used to determine the present value of projected benefit obligations and the weighted average rate of increase of future compensation levels. As of January 29, 2011, the Company...

  • Page 34
    ... compensation levels by 0.25% would increase or decrease the projected benefit obligation at January 29, 2011 by approximately $16 million and change estimated 2011 pension expense by approximately $4 million. New Pronouncements In January 2010, the FASB issued Accounting Standards Update No. 2010...

  • Page 35
    ... of Management ...Report of Independent Registered Public Accounting Firm ...Consolidated Statements of Operations for the fiscal years ended January 29, 2011, January 30, 2010 and January 31, 2009 ...Consolidated Balance Sheets at January 29, 2011 and January 30, 2010 ...Consolidated Statements of...

  • Page 36
    ... 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 and Chief Financial...

  • Page 37
    ... stock units granted to the Company's named executive officers in fiscal 2010 is set forth under "Compensation Discussion & Analysis" and "Compensation of the Named Executives for 2010" in the Proxy Statement to be delivered to shareholders in connection with our 2011 Annual Meeting of Shareholders...

  • Page 38
    ... 2011 Annual Meeting of Shareholders (the "Proxy Statement"), and "Item 1. Business - Executive Officers of the Registrant" in this report and incorporated herein by reference. Item 11. Executive Compensation. Information called for by this item is set forth under "Compensation Discussion & Analysis...

  • Page 39
    ... Indenture, dated as of January 15, 1991, among the Company (as successor to The May Department Stores Company ("May Delaware")), Macy's Retail Holdings, Inc. ("Macy's Retail") (f/k/a The May Department Stores Company (NY) or "May New York") and The Bank of New York Mellon Trust Company, N.A. ("BNY...

  • Page 40
    ... 30, 2005, among the Company, 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 the 1994 Indenture...

  • Page 41
    ... 4.5.5 Guarantee of Securities, dated as of August 30, 2005, by the Company relating to the 1997 Indenture Indenture, dated as of June 17, 1996, among the Company (as successor to May Delaware), Macy's Retail (f/k/a May New York) and The Bank of New York Mellon Trust Company, N.A. ("BNY Mellon...

  • Page 42
    ... as of August 30, 2005, among the 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 4.1 to the Company's Current Report on Form 8-K filed on June 26...

  • Page 43
    ...Fourth Amendment to Purchase, Sale and Servicing Transfer Agreement, dated May 22, 2006, between the Company and Citibank Credit Card Program Agreement, effective as of June 1, 2005, among the Company, FDS Bank, Macy's Credit and Customer Services, Inc. ("MCCS") (f/k/a FACS Group, Inc.) and Citibank...

  • 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
    ... Janet Grove and Macy's Merchandising Group, Inc. * Employment Agreement, dated as of April 21, 2008, between Karen M. Hoguet and Macy's Corporate Services, Inc. * Form of Employment Agreement for Executives and Key Employees * Executive Severance Plan, effective November 1, 2009 * Form of Non...

  • Page 46
    ... the Plan regarding name change of the Plan effective as of April 1, 2011 * 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 amended as of August 22, 2008) * Macy's, Inc. 2009 Omnibus...

  • Page 47
    ...following financial statements from Macy's, Inc.'s Annual Report on Form 10-K for the year ended January 29, 2011, filed on March 30, 2011, formatted in XBRL: (i) Consolidated Statements of Operations, (ii) Consolidated Balance Sheets, (iii) Consolidated Statements of Changes in Shareholders' Equity...

  • Page 48
    ... report has been signed below by the following persons on behalf of the Registrant and in the capacities indicated on March 30, 2011. Signature Title * Terry J. Lundgren Chairman of the Board, President and Chief Executive Officer (principal executive officer) and Director Chief Financial Officer...

  • Page 49
    INDEX TO CONSOLIDATED FINANCIAL STATEMENTS Page Report of Management ...Report of Independent Registered Public Accounting Firm ...Consolidated Statements of Operations for the fiscal years ended January 29, 2011, January 30, 2010, and January 31, 2009 ...Consolidated Balance Sheets at January 29, ...

  • Page 50
    ... responsible for establishing and 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...

  • Page 51
    REPORT OF INDEPENDENT REGISTERED PUBLIC 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 29, 2011 and January 30, 2010, and the related consolidated statements of ...

  • Page 52
    ... STATEMENTS OF OPERATIONS (millions, except per share data) 2010 2009 2008 Net sales ...Cost of sales ...Gross margin ...Selling, general and administrative expenses ...Impairments, store closing costs and division consolidation costs ...Goodwill impairment charges ...Operating income...

  • Page 53
    ...Total Assets ...LIABILITIES AND SHAREHOLDERS' EQUITY Current 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...

  • Page 54
    ...plans, net of income tax effect of $3 million ...Prior service credit on post employment benefit plans, net of income tax effect of $1 million ...Total comprehensive income ...Common stock dividends ($.20 per share) ...Stock repurchases ...Stock-based compensation expense ...Stock issued under stock...

  • Page 55
    MACY'S, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (millions) 2010 2009 2008 Cash flows from operating activities: Net income (loss) ...Adjustments to reconcile net income (loss) to net cash provided by operating activities: Impairments, store closing costs and division consolidation costs ......

  • Page 56
    ...of Significant Accounting Policies Macy's, Inc. and subsidiaries (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...

  • Page 57
    ...leased department income and shipping and handling fees. In 2010, the Company began including sales of private brand goods directly to third party retailers and sales of excess inventory to third parties in net sales. These items were previously reported, net of the related cost of sales, in selling...

  • Page 58
    ... the gross margins earned in connection with the sales of merchandise. These allowances are generally credited to cost of sales at the time the merchandise is sold in accordance with ASC Subtopic 605-50, "Customer Payments and Incentives." The Company also receives advertising allowances from more...

  • Page 59
    ... and capital 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 directly resulting from the use of those assets in operations. The estimates of fair value...

  • 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 July 2010, the FASB issued Accounting Standard Update No. 2010-20, which amends various sections of ASC Topic 310, "Receivables," relating to a company's allowance for credit losses and the credit quality of...

  • Page 62
    ... 2009, the Company announced the closure of eleven underperforming Macy's stores. In connection with these announcements and the plans to dispose of these locations, the Company incurred severance costs and other costs related to lease obligations and other store liabilities. For 2010, these costs...

  • Page 63
    ... planning, stores and marketing organizations. Macy's Corporate Marketing was integrated into the new unified marketing organization. The New York-based Macy's Merchandising Group was refocused solely on the design, development and marketing of the Macy's family of private brands. The costs...

  • Page 64
    ... and capital expenditures are based on the Company's 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...

  • Page 65
    ... 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 Agreement were $528 million for 2010, $525 million for 2009 and $594...

  • Page 66
    ... stores within the centers for periods of up to twenty years. Some of these agreements require that the stores be operated under a particular name. The Company leases a portion of the real estate and personal property used in its operations. Most leases require the Company to pay real estate taxes...

  • Page 67
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) The Company is a guarantor with respect to certain lease obligations associated with The May Department Stores Company and previously disposed subsidiaries or businesses. The leases, one of which includes potential extensions to 2070, have ...

  • Page 68
    ... Company recorded an impairment charge associated with acquired indefinite-lived private brand tradenames. See Note 2, "Impairments, Store Closing Costs and Division Consolidation Costs," for further information. Intangible amortization expense amounted to $41 million for 2010, $41 million for 2009...

  • Page 69
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) 8. Financing The Company's debt is as follows: January 29, January 30, 2011 2010 (millions) Short-term debt: 6.625% Senior notes due 2011 ...7.45% Senior debentures due 2011 ...10.625% Senior debentures due 2010 ...8.5% Senior notes due 2010...

  • Page 70
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Interest expense is as follows: 2010 2009 2008 (millions) Interest on debt ...Premium on early retirement of long-term debt ...Amortization of debt premium ...Amortization of financing costs ...Interest on capitalized leases ...Less interest...

  • Page 71
    ... throughout all of 2010 and 2009. Revolving loans under the credit agreement bear interest based on various published rates. This agreement, which is an obligation of a wholly-owned subsidiary of Macy's, Inc. ("Parent"), is not secured. However, Parent and each direct and indirect subsidiary...

  • Page 72
    ...-owned subsidiary of Macy's, Inc. and Parent has fully and unconditionally guaranteed these obligations (see Note 18, "Condensed Consolidating Financial Information"). Other Financing Arrangements At January 29, 2011, the Company had dedicated approximately $52 million of cash, included in prepaid...

  • Page 73
    ... TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) 9. Accounts Payable and Accrued Liabilities January 29, January 30, 2011 2010 (millions) Accounts payable ...Gift cards and customer award certificates ...Accrued wages and vacation ...Lease related liabilities ...Taxes other than income taxes...

  • Page 74
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Income tax expense (benefit) is as follows: Current 2010 Deferred Total Current 2009 Deferred (millions) Total Current 2008 Deferred Total Federal ...State and local ... $217 12 $229 $234 10 $244 $451 22 $473 $48 9 $57 $ 84 37 $121 $132...

  • Page 75
    ... January 29, 2011 and January 30, 2010 relates to net deferred tax assets for state net operating loss carryforwards. The net change in the valuation allowance amounted to an increase of $2 million for 2010 and no change for 2009. As of January 29, 2011, the Company had no federal net operating loss...

  • Page 76
    ...Consolidated Balance Sheets and follows a policy of recognizing all interest and penalties related to unrecognized tax benefits in income tax expense. During 2010, 2009 and 2008, the Company recognized charges of $5 million, $4 million and $16 million, respectively, in income tax expense for federal...

  • Page 77
    ... assets Fair value of plan assets, beginning of year ...Actual return on plan assets ...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 29, 2011 and January 30, 2010...

  • Page 78
    ... annually and updated as necessary. 5.65% 7.45% 6.25% 8.75% 8.75% 8.75% 4.50% 5.40% 5.40% The discount rate used to determine the present value of the projected benefit obligation for the Pension Plan is based on a yield curve constructed from a portfolio of high quality corporate debt securities...

  • Page 79
    ... 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 80
    ... Value Measurements Quoted Prices in Significant Active Markets for Observable Identical Assets Inputs (Level 1) (Level 2) (millions) Significant Unobservable Inputs (Level 3) Total Cash and cash equivalents ...Equity securities: U.S...International ...Fixed income securities: U. S. Treasury bonds...

  • Page 81
    ... Value Measurements Quoted Prices in Significant Active Markets for Observable Identical Assets Inputs (Level 1) (Level 2) (millions) Significant Unobservable Inputs (Level 3) Total Cash and cash equivalents ...Equity securities: U.S...International ...Fixed income securities: U. S. Treasury bonds...

  • Page 82
    ... CONSOLIDATED FINANCIAL STATEMENTS - (Continued) commitments related to certain of these investments totaling approximately $133 million and $78 million, respectively. The following table sets forth a summary of changes in fair value of the Pension Plan's level 3 assets for 2010 and 2009: 2010 2009...

  • Page 83
    ... TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Supplementary Retirement Plan The following provides a reconciliation of benefit obligations, plan assets and funded status of the supplementary retirement plan as of January 29, 2011 and January 30, 2010: 2010 2009 (millions) Change in projected...

  • Page 84
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Net pension costs and other amounts recognized in other comprehensive income for the supplementary retirement plan included the following actuarially determined components: 2010 2009 2008 (millions) Net Periodic Pension Cost Service cost ......

  • Page 85
    ... Company transfers shares to a trust to cover the number management estimates will be needed for distribution on account of stock credits currently outstanding. At January 29, 2011 and January 30, 2010, the liability under the plan, which is reflected in other liabilities on the Consolidated Balance...

  • Page 86
    ......Change in plan assets Fair value 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 29, 2011 and January 30, 2010 Accounts payable...

  • Page 87
    ... components: 2010 2009 2008 (millions) Net Periodic Postretirement Benefit Cost Service cost ...Interest cost ...Amortization of net actuarial gain ...Amortization of prior service credit ...Other Changes in Plan Assets and Projected Benefit Obligation Recognized in Other Comprehensive Income Net...

  • Page 88
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) The future medical benefits provided by the Company for certain employees are based on a fixed amount per year of service, and the accumulated postretirement benefit obligation is not affected by increases in health care costs. However, the ...

  • Page 89
    ... to acquire common stock of the Company in accordance with the merger agreement. The following disclosures present the Company's equity plans prior to 2009 on a combined basis. The equity plan is administered by the Compensation and Management Development Committee of the Board of Directors (the...

  • Page 90
    ... in the stock price used to calculate the settlement amount of stock credits. The income tax benefit recognized in the Consolidated Statements of Operations related to stock-based compensation was approximately $24 million, approximately $28 million, and approximately $16 million, for 2010, 2009 and...

  • Page 91
    ...35 4.0 8.0 $(130) $ 27 2010 2009 2008 (millions) Intrinsic value of options exercised ...Grant date fair value of stock options that vested during the year ...Cash received from stock options exercised ...Tax benefits realized from exercised stock options and vested restricted stock ... $13 55 39...

  • Page 92
    ... TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) The Company also has a stock credit plan. In 2006, key management personnel became eligible to earn a stock credit grant over a two-year performance period ending February 2, 2008. There were a total of 727,629 stock credit awards outstanding as...

  • Page 93
    ..., 2011, and with 495.0 million shares of Common Stock issued and 420.8 million shares of Common Stock outstanding at January 30, 2010 (with shares held in the Company's treasury being treated as issued, but not outstanding). Commencing in January 2000, the Company's board of directors has from time...

  • 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
    ... income were reclassified into the Consolidated Statements of Operations. Other financial instruments not measured at fair value on a recurring basis include cash and cash equivalents, receivables, short-term debt, merchandise accounts payable, accounts payable and accrued liabilities and long...

  • Page 96
    ...share: 2010 Net Income 2009 Net Net Shares Income Shares Loss (millions, except per share data) 2008 Shares Net income (loss) and average number of shares outstanding ...Shares to be issued under deferred compensation plans ...Basic earnings (loss) per share ...Effect of dilutive securities - Stock...

  • Page 97
    ...Quarter (millions, except per share data) 2010: Net sales ...Cost of sales ...Gross margin ...Selling, general and administrative expenses ...Impairments, store closing costs and division consolidation costs . . Net income ...Basic earnings per share ...Diluted earnings per share ...2009: Net sales...

  • Page 98
    ... TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) MACY'S, INC. Condensed Consolidating Balance Sheet As of January 29, 2011 (millions) Parent Subsidiary Other Consolidating Issuer Subsidiaries Adjustments Consolidated ASSETS: Current Assets: Cash and cash equivalents ...$1,174 $ 41 Receivables...

  • Page 99
    ... expenses ...Impairments, store closing costs and division consolidation costs ...Operating income (loss) ...Interest (expense) income, net: External ...Intercompany ...Equity in earnings of subsidiaries ...Income before income taxes ...Federal, state and local income tax benefit (expense) ...Net...

  • Page 100
    ... CONSOLIDATED FINANCIAL STATEMENTS - (Continued) MACY'S, INC. Condensed Consolidating Statement of Cash Flows For 2010 (millions) Parent Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Consolidated Cash flows from operating activities: Net income ...Impairments, store closing costs...

  • Page 101
    ... TO CONSOLIDATED FINANCIAL 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...

  • Page 102
    ..., store closing costs and division consolidation costs...Operating income (loss) ...Interest (expense) income, net: External ...Intercompany ...Equity in earnings of subsidiaries ...Income (loss) before income taxes ...Federal, state and local income tax benefit (expense) ...Net income (loss...

  • Page 103
    ...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) ...Impairments, store closing costs and division consolidation costs ...Equity...

  • Page 104
    ... ...Impairments, store closing costs and division consolidation costs ...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 105
    ... 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 ...Impairments, store closing costs...

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    ...lls. • Created an internal website, Green Living, so our 160,000+ 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. • Eliminated...

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    ... Greiner Chief Merchandise Planning Officer Karen M. Hoguet Chief Financial Officer Ronald Klein Chief Stores Officer Peter Sachse Chief Marketing Officer Michael Gould Chairman and Chief Executive Officer, Bloomingdale's Janet E. Grove Vice Chair OTHER MACY'S, INC. CORPORATE OFFICERS Joel...

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    ...macysinc.com www.macys.com www.macysJOBS.com www.bloomingdales.com www.bloomingdalesJOBS.com CALL: Macy's, Inc. Investor Relations Department Monday-Friday, 8:30 a.m. - 5 p.m. (ET) 1-513-579-7028 Macy's, Inc. News & Information Request Hotline: 1-800-261-5385 WRITE: Macy's, Inc. Investor Relations...

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    www.macysinc.com www.macys.com www.bloomingdales.com