Macy's 2012 Annual Report Download - page 35

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30
Item 7A. Quantitative and Qualitative Disclosures About Market Risk.
The Company is exposed to market risk from changes in interest rates that may adversely affect its financial position,
results of operations and cash flows. In seeking to minimize the risks from interest rate fluctuations, the Company manages
exposures through its regular operating and financing activities and, when deemed appropriate, through the use of derivative
financial instruments. The Company does not use financial instruments for trading or other speculative purposes and is not a
party to any leveraged financial instruments.
The Company is exposed to interest rate risk through its borrowing activities, which are described in Note 6 to the
Consolidated Financial Statements. All of the Company’s borrowings are under fixed rate instruments. However, the Company,
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 sensitive instruments outstanding at February 2, 2013, the
Company has determined that there was no material market risk exposure to the Company’s consolidated financial position,
results of operations or cash flows as of such date.
Item 8. Consolidated Financial Statements and Supplementary Data.
Information called for by this item is set forth in the Company’s Consolidated Financial Statements and supplementary
data contained in this report and is incorporated herein by this reference. Specific financial statements and supplementary data
can be found at the pages listed in the following index:
INDEX
Page
Report of Management................................................................................................................................................... F-2
Report of Independent Registered Public Accounting Firm .......................................................................................... F-3
Consolidated Statements of Income for the fiscal years ended
February 2, 2013, January 28, 2012 and January 29, 2011........................................................................................ F-4
Consolidated Statements of Comprehensive Income for the fiscal years ended
February 2, 2013, January 28, 2012 and January 29, 2011........................................................................................ F-5
Consolidated Balance Sheets at February 2, 2013 and January 28, 2012...................................................................... F-6
Consolidated Statements of Changes in Shareholders’ Equity for the fiscal years ended
February 2, 2013, January 28, 2012 and January 29, 2011......................................................................................... F-7
Consolidated Statements of Cash Flows for the fiscal years ended
February 2, 2013, January 28, 2012 and January 29, 2011........................................................................................ F-8
Notes to Consolidated Financial Statements.................................................................................................................. F-9