Macy's 2010 Annual Report Download - page 97

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
17. 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)
2010:
Net sales ............................................... $5,574 $ 5,537 $ 5,623 $ 8,269
Cost of sales ............................................ (3,378) (3,214) (3,377) (4,855)
Gross margin ........................................... 2,196 2,323 2,246 3,414
Selling, general and administrative expenses .................. (1,993) (1,953) (2,069) (2,245)
Impairments, store closing costs and division consolidation costs . .–––(25)
Net income ............................................. 23 147 10 667
Basic earnings per share .................................. .05 .35 .02 1.57
Diluted earnings per share ................................. .05 .35 .02 1.55
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)
Impairments, store closing costs and division consolidation costs . . (138) (34) (33) (186)
Net income (loss) ........................................ (88) 7 (35) 445
Basic earnings (loss) per share .............................. (.21) .02 (.08) 1.05
Diluted earnings (loss) per share ............................ (.21) .02 (.08) 1.05
18. Condensed Consolidating Financial Information
The senior notes and senior debentures of the Company described in Note 8, 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, 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 are also reflected in “Other Subsidiaries.”
Condensed Consolidating Balance Sheets as of January 29, 2011 and January 30, 2010, the related
Condensed Consolidating Statements of Operations for 2010, 2009 and 2008, and the related Condensed
Consolidating Statements of Cash Flows for 2010, 2009, and 2008 are presented on the following pages.
F-49