Macy's 2010 Annual Report Download - page 73

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
9. Accounts Payable and Accrued Liabilities
January 29,
2011
January 30,
2010
(millions)
Accounts payable .............................................. $ 559 $ 484
Gift cards and customer award certificates ........................... 654 594
Accrued wages and vacation ...................................... 311 307
Lease related liabilities .......................................... 271 265
Taxes other than income taxes .................................... 186 199
Current portion of workers’ compensation and general liability reserves . . . 144 141
Accrued interest ............................................... 98 122
Current portion of post employment and postretirement benefits ......... 88 94
Allowance for future sales returns ................................. 67 65
Severance and relocation ........................................ 1 71
Other ........................................................ 265 284
$2,644 $2,626
Adjustments to the allowance for future sales returns, which amounted to a charge of $2 million for 2010, a
charge of $6 million for 2009, and a credit of $14 million for 2008 are reflected in cost of sales.
Changes in workers’ compensation and general liability reserves, including the current portion, are as
follows:
2010 2009 2008
(millions)
Balance, beginning of year ................................................. $478 $495 $471
Charged to costs and expenses .............................................. 148 124 164
Payments, net of recoveries ................................................. (138) (141) (140)
Balance, end of year ...................................................... $488 $478 $495
The non-current portion of workers’ compensation and general liability reserves is included in other
liabilities on the Consolidated Balance Sheets. At January 29, 2011 and January 30, 2010, workers’
compensation and general liability reserves included $93 million and $90 million, respectively, of liabilities
which are covered by deposits and receivables included in current assets on the Consolidated Balance Sheets.
10. Taxes
The Company changed its methodology for recording deferred state income taxes from a blended rate basis
to a separate entity basis, and has reflected the effects of such change to 2010 and all prior periods. Even though
the Company considers the change to have had only an immaterial impact on its financial condition, results of
operations and cash flows for the periods presented, the financial condition, results of operations and cash flows
for the prior periods as previously reported have been adjusted to reflect the change.
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