Macy's 2012 Annual Report Download

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CONNECTINGWITHEVERYCUSTOMER
MACY’S, INC. ANNUALREPORT 

Table of contents

  • Page 1
    ConneCting with every Customer M A C Y 'S, I N C . a n n u a l r e p o rt 2 01 2

  • Page 2
    ... centers, personal shoppers, outstanding fitting rooms and lounges - elegant events and personalized, attentive service that strengthen customer relationships and build loyalty. In 2012, Bloomingdale's launched its Loyallist program, which rewards customers who shop in store, online and outlets...

  • Page 3
    ... entertainment and ideas. Stores are where customers can touch and feel and see and experience the merchandise, and interact with our knowledgeable associates. This gives Macy's and Bloomingdale's TERRY J. LUNDGREN a great advantage over Chairman, President and online-only retailers. Chief Executive...

  • Page 4
    .... MAGIC SELLING MAGIC Selling will continue to be the basis for how we engage customers in Macy's stores and how we coach our associates for success. MAGIC is an acronym we use to drive home to our associates the process to Meet and make a connection ...Ask questions and listen ...Give options, give...

  • 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 February 2, 2013 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
    ..., including risks and uncertainties relating to: • • the possible invalidity of the underlying beliefs and assumptions; competitive pressures from department and specialty stores, general merchandise stores, manufacturers' outlets, off-price and discount stores, and all other retail channels...

  • Page 7
    ...Outlet stores. Bloomingdale's in Dubai, United Arab Emirates is operated under a license agreement with Al Tayer Insignia, a company of Al Tayer Group, LLC. The Company's sells a wide range of merchandise, including apparel and accessories (men's, women's and children's), cosmetics, home furnishings...

  • Page 8
    ... Company's executive offices are located at 7 West Seventh Street, Cincinnati, Ohio 45202, telephone number: (513) 579-7000 and 151 West 34th Street, New York, New York 10001, telephone number: (212) 494-1602. Employees As of February 2, 2013, the Company had approximately 175,700 regular full-time...

  • Page 9
    ...Chief Executive Officer; Director Chief Private Brand Officer Chief Human Resources Officer Chief Merchandising Officer Chief Merchandise Planning Officer Chief Omnichannel Officer Chief Financial Officer Chairman of macys.com Chief Marketing Officer Chief Stores Officer Executive Vice President and...

  • Page 10
    ... retail industry. The Company conducts its retail merchandising business under highly competitive conditions. Although the Company is one of the nation's largest retailers, it has numerous and varied competitors at the national and local levels, including conventional and specialty department stores...

  • Page 11
    ...have a negative impact on the Company's cash flows, financial condition or results of operations. Increases in the cost of employee benefits could impact the Company's financial results and cash flow. The Company's expenses relating to employee health benefits are significant. Unfavorable changes in...

  • Page 12
    ... respect 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...

  • Page 13
    ...including the Credit Card Act of 2009 and the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the "Dodd-Frank Act")). Recent and future developments relating to such matters could increase the Company's compliance costs and adversely affect the profitability of its credit card and...

  • Page 14
    ... corporate office space in Cincinnati and New York and other facilities at which centralized operational support functions are conducted. As of February 2, 2013, the operations of the Company included 841 stores in 45 states, the District of Columbia, Puerto Rico and Guam, comprising a total...

  • Page 15
    ... duties owed under the Employee Retirement Income Security Act ("ERISA") to participants in the 401(k) Plan and the May Plan, by making false and misleading statements regarding the Company's business, operations and prospects in relation to the integration of the acquired May operations, resulting...

  • Page 16
    ...the Company's earnings, financial condition and legal or contractual restrictions. The following table provides information regarding the Company's purchases of Common Stock during the fourth quarter of 2012. Total Number of Shares Purchased (thousands) Average Price per Share ($) Number of Shares...

  • Page 17
    The following graph compares the cumulative total stockholder return on the Common Stock with the Standard & Poor's 500 Composite Index and the Standard & Poor's Retail Department Store Index for the period from February 2, 2008 through February 2, 2013, assuming an initial investment of $100 and ...

  • Page 18
    ... earnings (loss) per share...$ Average number of shares outstanding...Cash dividends paid per share...$ 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...

  • Page 19
    ... Overview The Company is an omnichannel retail organization operating stores and websites under two brands (Macy's and Bloomingdale's) that sell a wide range of merchandise, including apparel and accessories (men's, women's and children's), cosmetics, home furnishings and other consumer goods in 45...

  • Page 20
    ... merchandise that the Company offers for sale, or in relation to the Company's Macy's-branded and Bloomingdale's-branded operations. All economic conditions, however, ultimately affect the Company's overall operations. 2012 Highlights The Company had its fourth consecutive year of improved financial...

  • Page 21
    ... the Company believes to be the most directly comparable GAAP measure. 2012 2011 2010 2009 Diluted earnings per share...Add back the impact of premium on early retirement of debt ...Deduct the impact of gain on sale of leases ...Add back the impact of impairments and store closing costs ...Add back...

  • Page 22
    ... early retirement of debt and impairments, store closing costs and gain on sales of leases ("Adjusted EBITDA"), as a percent to net sales to GAAP net income as a percent to net sales, which the Company believes to be the most directly comparable GAAP financial measure. 2012 2011 2010 2009 (millions...

  • Page 23
    ... directly comparable GAAP financial measure. 2012 2011 2010 2009 (millions, except percentages) Operating income ...Property and equipment - net ...Operating income as a percent to property and equipment - net...Operating income ...Add back (deduct) impairments, store closing costs, gain on sale...

  • Page 24
    ... Sales 2010 Amount % to Sales (dollars in millions, except per share figures) Net sales...$ 27,686 Increase in sales ...4.9 Increase in comparable sales...3.7 Cost of sales...(16,538) Gross margin...11,148 (8,482) Selling, general and administrative expenses...Impairments, store closing costs and...

  • Page 25
    ...Internet businesses in 2012 increased 41.0% on a comparable basis to 2011 and positively affected the Company's 2012 comparable sales by 2.2%. The Company continues to benefit from the successful execution of the My Macy's localization, Omnichannel and MAGIC Selling strategies. Geographically, sales...

  • Page 26
    ... to 2010. Sales from the Company's Internet businesses in 2011 increased 39.6% compared to 2010 and positively affected the Company's 2011 comparable sales by 1.5%. The Company continued to benefit from the successful execution of the My Macy's localization, Omnichannel and MAGIC Selling strategies...

  • Page 27
    ... Macy's Herald Square, technology and omnichannel investments, and distribution network improvements. The Company has announced that in 2013 it intends to open new Macy's stores in Victorville, CA, Gurnee, IL, and Las Vegas, NV, a Macy's replacement store in Bay Shore, NY, a new Bloomingdale's store...

  • Page 28
    ... 2012 the Company opened its new 1.3 million square foot fulfillment center in Martinsburg, WV. During 2011, the Company opened three new Bloomingdale's Outlet stores and re-opened one Macy's store that had been closed in 2010 due to flood damage. Financing Activities Net cash used by the Company...

  • Page 29
    ... program, depending on prevailing market conditions, alternate uses of capital and other factors. On February 22, 2013, the Company's board of directors declared a quarterly dividend of 20 cents per share on its common stock, payable April 1, 2013 to Macy's shareholders of record at the close...

  • Page 30
    ...group medical/dental/life insurance programs, merchandise purchase obligations and obligations under outsourcing arrangements, construction contracts, energy and other supply agreements identified by the Company and liabilities for unrecognized tax benefits that the Company expects to settle in cash...

  • Page 31
    ... repurchase of debt, equity or other securities through open market purchases, privately negotiated transactions or otherwise, and the funding of pension related obligations. The Company intends from time to time to consider additional acquisitions of, and investments in, retail businesses and other...

  • Page 32
    ... levels of vendor support, if such a reduction were to occur, the Company could experience higher costs of sales and higher advertising expense, or reduce the amount of advertising that it uses, depending on the specific vendors involved and market conditions existing at the time. Long-Lived Asset...

  • Page 33
    ... 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 February 2, 2013, the Company lowered the assumed annual long-term rate of return for the Pension Plan's assets from...

  • Page 34
    ... weighted average age-graded rate of increase in future compensation levels was 4.5% at February 2, 2013 and January 28, 2012 for the Pension Plan, and 4.9% at February 2, 2013 and January 28, 2012 for the SERP. The Company develops its rate of compensation increase assumption on an age-graded...

  • Page 35
    ..., from time to time, may use interest rate swap and interest rate cap agreements to help manage its exposure to interest rate movements and reduce borrowing costs. At February 2, 2013, the Company was not a party to any derivative financial instruments and based on the Company's lack of market risk...

  • Page 36
    ...2013 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 37
    .... Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. Information called for by this item is set forth under "Stock Ownership - Certain Beneficial Owners" and "Stock Ownership - Stock Ownership of Directors and Executive Officers" in the Proxy Statement...

  • Page 38

  • Page 39
    ... 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 Mellon", successor to J.P. Morgan Trust Company and as successor to The First National Bank...

  • Page 40
    ... U.S. Bank National Association (successor to Citibank, N.A.), as Trustee 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...

  • Page 41
    ... 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 10.02 to the June 20, 2011 Form 8-K 10.2 10.3 Exhibit 10.6 to the...

  • Page 42
    ...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 43
    ... 2009 Omnibus Incentive Compensation Plan (for Executives and Key Employees) * Nonqualified Stock Option Agreement, dated as of October 26, 2007, by and between the Company and Terry Lundgren * Form of Restricted Stock Agreement for the 1994 Stock Incentive Plan * Form of Time-Based Restricted Stock...

  • Page 44
    ...effective January 1, 2012 * Director Deferred Compensation Plan * Stock Credit Plan for 2008 - 2009 of Macy's, Inc. (as amended as of August 22, 2008) * Macy's, Inc. 2009 Omnibus Incentive Compensation Plan * Exhibit 10.29 to the 2008 Form 10-K Exhibit 10.21.1 to the Company's Annual Report on Form...

  • Page 45
    ... 9, 2011 * Time Sharing Agreement between Macy's, Inc. and Terry J. Lundgren, dated March 25, 2011 * Senior Executive Incentive Compensation Plan * Subsidiaries Consent of KPMG LLP Powers of Attorney Certification of Chief Executive Officer pursuant to Rule 13a-14(a) Certification of Chief Financial...

  • Page 46
    ... report has been signed below by the following persons on behalf of the Registrant and in the capacities indicated on April 3, 2013. Signature Title * Terry J. Lundgren Chairman of the Board, President and Chief Executive Officer (principal executive officer) and Director Chief Financial Officer...

  • Page 47

  • Page 48
    INDEX TO CONSOLIDATED FINANCIAL STATEMENTS Page Report of Management...Report of Independent Registered Public Accounting Firm ...Consolidated Statements of Income for the fiscal years ended February 2, 2013, January 28, 2012 and January 29, 2011 ...Consolidated Statements of Comprehensive Income ...

  • Page 49
    ... program of internal audits with appropriate management follow-up action, to provide reasonable assurance, at appropriate cost, that the Company's assets are protected and transactions are properly recorded. Additionally, the integrity of the financial accounting system is based on careful selection...

  • Page 50
    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 February 2, 2013 and January 28, 2012, and the related consolidated statements of income,...

  • Page 51
    ... STATEMENTS OF INCOME (millions, except per share data) 2012 2011 2010 Net sales ...Cost of sales ...Gross margin ...Selling, general and administrative expenses ...Impairments, store closing costs and gain on sale of leases ...Operating income ...Interest expense...Premium on early retirement...

  • Page 52
    ...on postretirement benefit plans, net of tax effect of $60 million, $35 million and $23 million ...Prior service credit on postretirement benefit plans, net of tax effect of $1 million, $1 million and $1 million ...Realized gain on marketable securities, net of tax effect of $4 million ...Total other...

  • Page 53
    ... 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 ...Shareholders' Equity: Common stock (387.7 and 414.2 shares outstanding)...Additional...

  • Page 54
    ...-In Capital Accumulated Other Comprehensive Income (Loss) Total Shareholders' Equity Common Stock Accumulated Equity Treasury Stock Balance at January 30, 2010 ...$ Net income...Other comprehensive income ...Common stock dividends ($.20 per share) ...Stock repurchases ...Stock-based compensation...

  • Page 55
    ... to net cash provided by operating activities: Impairments, store closing costs and gain on sale of leases ...Depreciation and amortization...Stock-based compensation expense...Amortization of financing costs and premium on acquired debt...Changes in assets and liabilities: ...(Increase) decrease in...

  • Page 56
    ... (the "Company") is an omnichannel retail organization operating stores and Internet websites under two brands (Macy's and Bloomingdale's) that sell a wide range of merchandise, including apparel and accessories (men's, women's and children's), cosmetics, home furnishings and other consumer goods in...

  • Page 57
    ... department income, shipping and handling fees, sales of private brand goods directly to third party retailers and sales of excess inventory to third parties. Sales of merchandise are recorded at the time of delivery to the customer and are reported net of merchandise returns. The Company licenses...

  • Page 58
    ... 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 59
    ...projected sales, gross margin and SG&A expense rate assumptions 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...

  • 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
    ... of announced store closings. The fair values of these locations were calculated based on the projected cash flows and an estimated risk-adjusted rate of return that would be used by market participants in valuing these assets or based on prices of similar assets. During 2011, the Company recognized...

  • Page 62
    ... 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 63
    ... FINANCIAL STATEMENTS - (Continued) Rental expense consists of: 2012 2011 (millions) 2010 Real estate (excluding executory costs) Capitalized leases - Contingent rentals...$ Operating leases - Minimum rentals...Contingent rentals...Less income from subleases - Operating leases...$ Personal...

  • Page 64
    ...CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Future estimated intangible amortization expense is shown below: (millions) Fiscal year 2013...$ 2014...2015...2016...2017... 34 31 21 8 7 Favorable lease intangible assets are being amortized over their respective lease terms (weighted average life...

  • Page 65
    ... CONSOLIDATED FINANCIAL STATEMENTS - (Continued) 6. Financing The Company's debt is as follows: February 2, January 28, 2013 2012 (millions) Short-term debt: 7.625% Senior debentures due 2013...$ 5.35% Senior notes due 2012...5.875% Senior notes due 2013...8.0% Senior debentures due 2012...Capital...

  • Page 66
    ... retirement of debt on the Consolidated Statements of Income. Future maturities of long-term debt, other than capitalized leases and premium on acquired debt, are shown below: (millions) Fiscal year 2014...$ 2015...2016...2017...2018...After 2018 ...During 2012, 2011 and 2010, the Company repaid...

  • Page 67
    ... letters of credit outstanding at February 2, 2013 and January 28, 2012. Revolving loans under the credit agreement bear interest based on various published rates. This agreement, which is an obligation of a 100%-owned subsidiary of Macy's, Inc. ("Parent"), is not secured. However, Parent has fully...

  • Page 68
    ... of credit outstanding at February 2, 2013 and January 28, 2012. 7. Accounts Payable and Accrued Liabilities February 2, January 28, 2013 2012 (millions) Accounts payable...$ Gift cards and customer award certificates ...Accrued wages and vacation ...Taxes other than income taxes...Lease related...

  • Page 69
    ... follows: 2012 2011 (millions) 2010 Expected tax ...$ State and local income taxes, net of federal income tax benefit ...Settlement of federal tax examinations ...Other...$ 736 $ 45 - (14) 767 $ 689 $ 31 - (8) 712 $ 462 14 - (3) 473 The Company participates in the Internal Revenue Service ("IRS...

  • Page 70
    ...January 28, 2013 2012 (millions) Deferred tax assets Post employment and postretirement benefits ...$ Accrued liabilities accounted for on a cash basis for tax purposes ...Long-term debt ...Unrecognized state tax benefits and accrued interest...State operating loss and credit carryforwards ...Other...

  • Page 71
    ... other liabilities on the Consolidated Balance Sheets and follows a policy of recognizing all interest and penalties related to unrecognized tax benefits in income tax expense. Federal, state and local interest and penalties, which amounted to a credit of $10 million for 2012, a credit of $2 million...

  • Page 72
    ... 2012, the SERP was closed to new participants. In February 2013, the Company announced changes to the Pension Plan and SERP whereby eligible employees will no longer earn future pension service credits after December 31, 2013, with limited exceptions. All retirement benefits attributable to service...

  • Page 73
    ... 2013 and January 28, 2012: 2012 2011 Discount rate...Rate of compensation increases... 4.15% 4.50% 4.65% 4.50% The following weighted average assumptions were used to determine the net periodic pension cost for the Pension Plan: 2012 2011 2010 Discount rate ...Expected long-term return on plan...

  • Page 74
    ...expenses, Pension Benefit Guaranty Corporation premiums and other costs and expenses. The Company develops its rate of compensation increase assumption on an age-graded basis based on recent experience and reflects an estimate of future compensation levels taking into account general increase levels...

  • Page 75
    ... sales, by asset category are as follows: Fair Value Measurements Quoted Prices in Active Markets for Identical Assets (Level 1) (millions) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Cash and cash equivalents ...$ Equity securities: U.S...International...

  • Page 76
    ... plan assets: Relating to assets still held at the reporting date ...Relating to assets sold during the period ...Purchases...Sales ...Balance, end of year...$ 533 $ 488 9 22 48 (34) 533 7 23 71 (40) 594 $ During 2012 and 2011, the Company made funding contributions to the Pension Plan totaling...

  • Page 77
    ...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 February 2, 2013 and January 28, 2012 Accounts payable and accrued liabilities ...$ Other...

  • Page 78
    ... weighted average assumptions were used to determine net pension costs for the supplementary retirement plan: 2012 2011 2010 Discount rate ...Rate of compensation increases ... 4.65% 4.90% 5.40% 4.90% 5.65% 4.90% The supplementary retirement plan's assumptions are evaluated annually and updated...

  • Page 79
    ... compensation each year as either stock credits or cash credits. The 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 February 2, 2013 and January 28, 2012, the liability under the plan...

  • Page 80
    ...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 February 2, 2013 and January 28, 2012 Accounts payable and accrued liabilities ...$ Other...

  • Page 81
    ... average assumptions were used to determine the net postretirement benefit costs for the postretirement obligations: 2012 2011 2010 Discount rate ... 4.65% 5.40% 5.65% The postretirement benefit obligation assumptions are evaluated annually and updated as necessary. The discount rate used...

  • Page 82
    ...the active and retiree benefit plans offered by the Company. The following provides the assumed health care cost trend rates related to the Company's accumulated postretirement benefit obligations at February 2, 2013 and January 28, 2012: 2012 2011 Health care cost trend rates assumed for next year...

  • Page 83
    ... the Macy's 2009 Omnibus Incentive Compensation Plan under which up to 51 million shares of Common Stock may be issued. This plan is intended to help the Company attract and retain directors, officers, other key executives and employees and is also intended to provide incentives and rewards relating...

  • Page 84
    ... members of the Company's board of directors. Stock Options The fair value of stock-options granted during 2012, 2011 and 2010 and the weighted average assumptions used to estimate the fair value are as follows: 2012 2011 2010 Weighted average grant date fair value of stock options granted during...

  • Page 85
    ...portion of the Target Shares granted in 2012 that relate to a relative TSR performance objective was determined using a Monte Carlo simulation analysis to estimate the total shareholder return ranking of the Company among a ten-company executive compensation peer group over the remaining performance...

  • Page 86
    ...of Common Stock issued and 414.2 million shares of Common Stock outstanding at January 28, 2012 (with shares held in the Company's treasury being treated as issued, but not outstanding). The Company retired 42.7 million and 7.7 million shares of Common Stock during 2012 and 2011, respectively. F-39

  • Page 87
    ... 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 88
    ... tables shows for 2012, 2011 and 2010 the beginning and ending balance of, and the activity associated with, accumulated other comprehensive loss, net of income tax effects: Unrealized Gains on Marketable Securities Post Employment and Postretirement Benefit Plans (millions) Total Accumulated Other...

  • Page 89
    ... these locations were calculated based on the projected cash flows and an estimated risk-adjusted rate of return that would be used by market participants in valuing these assets or prices of similar assets. Financial instruments that potentially subject the Company to concentrations of credit risk...

  • Page 90
    ... 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) and its subsidiary West 34th Street Insurance Company New York, Macy's Merchandising Corporation, Macy...

  • Page 91
    ... CONSOLIDATED FINANCIAL STATEMENTS - (Continued) MACY'S, INC. Condensed Consolidating Balance Sheet As of February 2, 2013 (millions) Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Parent Consolidated ASSETS: Current Assets: Cash and cash equivalents ...Receivables...Merchandise...

  • Page 92
    ... MACY'S, INC. Condensed Consolidating Statement of Comprehensive Income For 2012 (millions) Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Parent Consolidated Net sales ...$ Cost of sales ...Gross margin...Selling, general and administrative expenses ...Impairments, store closing...

  • Page 93
    ... Adjustments Parent Consolidated Cash flows from operating activities: Net income ...$ Impairments, store closing costs and gain on sale of leases ...Equity in earnings of subsidiaries ...Dividends received from subsidiaries ...Depreciation and amortization ...Increase in working capital ...Other...

  • Page 94
    ... CONSOLIDATED FINANCIAL STATEMENTS - (Continued) MACY'S, INC. Condensed Consolidating Balance Sheet As of January 28, 2012 (millions) Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Parent Consolidated ASSETS: Current Assets: Cash and cash equivalents ...Receivables...Merchandise...

  • Page 95
    ... MACY'S, INC. Condensed Consolidating Statement of Comprehensive Income For 2011 (millions) Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Parent Consolidated Net sales ...$ Cost of sales ...Gross margin...Selling, general and administrative expenses ...Impairments, store closing...

  • Page 96
    ... Adjustments Parent Consolidated Cash flows from operating activities: Net income...$ Impairments, store closing costs and gain on sale of leases ...Equity in earnings of subsidiaries...Dividends received from subsidiaries...Depreciation and amortization...(Increase) decrease in working capital...

  • Page 97
    ... MACY'S, INC. Condensed Consolidating Statement of Comprehensive Income For 2010 (millions) Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Parent Consolidated Net sales ...$ Cost of sales ...Gross margin...Selling, general and administrative expenses ...Impairments, store closing...

  • Page 98
    ...MACY'S, INC. Condensed Consolidating Statement of Cash Flows For 2010 (millions) Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Parent Consolidated Cash flows from operating activities: Net income...$ Impairments, store closing costs and gain on sale of leases...Equity in earnings...

  • Page 99

  • Page 100

  • Page 101
    ...of our programs for corporate giving, employee volunteerism and cause marketing. Macy's and Bloomingdale's are known for their exceptional support of worthwhile causes and charities nationally, as well as in local communities nationwide. JOBS For complete information on jobs available at the company...

  • Page 102
    ... Allianz Global Investors Capital teChnology makes selling more magiCal. EXECUTIVE MANAGEMENT TEAM Terry J. Lundgren Chairman, President and Chief Executive Officer Timothy M. Adams Chief Private Brand Officer William S. Allen Chief Human Resource Officer Jeffrey Gennette Chief Merchandising Of...

  • Page 103
    Shareholder InforMaTIon TO REACH US macysinc.com/IR Sign up to have Macy's, Inc.'s news releases sent to you via e-mail by subscribing to News Direct. Get the latest stock price and chart, or take advantage of the historical price look-up feature. CALL: Macy's, Inc. Investor Relations Department ...

  • Page 104
    my mobile phone and tablet are an extension of me. MACY'S • BLOOMINGDALE'S macysinc.com macys.com bloomingdales.com it's important that my store knows what i like and how to reaCh out to me.