Macy's 2011 Annual Report Download - page 82

Download and view the complete annual report

Please find page 82 of the 2011 Macy's annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 96

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
F-42
16. 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)
2011:
Net sales ....................................................................... $ 5,889 $ 5,939 $ 5,853 $ 8,724
Cost of sales ................................................................. (3,586)(3,457)(3,544)(5,151)
Gross margin ................................................................ 2,303 2,482 2,309 3,573
Selling, general and administrative expenses............... (1,973)(1,976)(2,018)(2,314)
Gain on sale of properties, impairments, store closing
costs and division consolidation costs...................... ———25
Net income ................................................................... 131 241 139 745
Basic earnings per share............................................... .31 .56 .33 1.77
Diluted earnings per share............................................ .30 .55 .32 1.74
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)
Gain on sale of properties, 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
17. Condensed Consolidating Financial Information
Certain debt obligations of the Company described in Note 7, 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, West 34th Street Insurance Company (prior to a merger, known separately as 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 28, 2012 and January 29, 2011, the related Condensed
Consolidating Statements of Operations for 2011, 2010 and 2009, and the related Condensed Consolidating Statements of Cash
Flows for 2011, 2010, and 2009 are presented on the following pages.