Macy's 2011 Annual Report Download - page 14

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8
condition, results of operations and cash flows.
Factors beyond the Company’s control could affect the Company’s stock price.
The Company’s stock price, like that of other retail companies, is subject to significant volatility because of many factors,
including factors beyond the control of the Company. These factors may include:
• general economic and stock and credit market conditions;
• risks relating to the Company’s business and its industry, including those discussed above;
• strategic actions by the Company or its competitors;
• variations in the Company’s quarterly results of operations;
• future sales or purchases of the Company’s common stock; and
• investor perceptions of the investment opportunity associated with the Company’s common stock relative to
other investment alternatives.
In addition, the Company may fail to meet the expectations of its stockholders or of analysts at some time in the future. If
the analysts that regularly follow the Company’s stock lower their rating or lower their projections for future growth 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 1B. Unresolved Staff Comments.
None.
Item 2. Properties.
The properties of the Company consist primarily of stores and related facilities, including warehouses and distribution
and fulfillment centers. The Company also owns or leases other properties, including corporate office space in Cincinnati and
New York and other facilities at which centralized operational support functions are conducted. As of January 28, 2012, the
operations of the Company included 842 retail stores in 45 states, the District of Columbia, Puerto Rico and Guam, comprising
a total of approximately 151,900,000 square feet. Of such stores, 464 were owned, 266 were leased and 112 stores were
operated under arrangements where the Company owned the building and leased the land. Substantially all owned properties
are held free and clear of mortgages. Pursuant to various shopping center agreements, the Company is obligated to operate
certain stores for periods of up to 20 years. Some of these agreements require that the stores be operated under a particular
name. Most leases require the Company to pay real estate taxes, maintenance and other costs; some also require additional
payments based on percentages of sales and some contain purchase options. Certain of the Company’s real estate leases have
terms that extend for a significant number of years and provide for rental rates that increase or decrease over time.