Macy's 2012 Annual Report Download - page 56

F-9
MACY’S, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Organization and Summary of Significant Accounting Policies
Nature of Operations
Macy’s, Inc. and subsidiaries (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 45 states, the District of
Columbia, Guam and Puerto Rico. As of February 2, 2013, the Company’s operations and reportable segments were conducted
through Macy’s, macys.com, Bloomingdale’s, bloomingdales.com and Bloomingdale’s Outlet, which are aggregated into one
reporting segment in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification
(“ASC”) Topic 280, “Segment Reporting.” The metrics used by management to assess the performance of the Company’s
operating divisions include sales trends, gross margin rates, expense rates, and rates of earnings before interest and taxes
(“EBIT”) and earnings before interest, taxes, depreciation and amortization (“EBITDA”). The Company’s operating divisions
have historically had similar economic characteristics and are expected to have similar economic characteristics and long-term
financial performance in future periods.
For 2012, 2011 and 2010, the following merchandise constituted the following percentages of sales:
2012 2011 2010
Feminine Accessories, Intimate Apparel, Shoes and Cosmetics..................... 38% 37% 36%
Feminine Apparel............................................................................................ 23 25 26
Men’s and Children’s...................................................................................... 23 23 23
Home/Miscellaneous....................................................................................... 16 15 15
100% 100% 100%
Fiscal Year
The Company’s fiscal year ends on the Saturday closest to January 31. Fiscal years 2012, 2011 and 2010 ended on
February 2, 2013, January 28, 2012 and January 29, 2011, respectively. Fiscal year 2012 includes 53 weeks and fiscal years
2011 and 2010 included 52 weeks. References to years in the Consolidated Financial Statements relate to fiscal years rather
than calendar years.
Basis of Presentation
The Consolidated Financial Statements include the accounts of the Company and its 100%-owned subsidiaries. The
Company from time to time invests in companies engaged in complementary businesses. Investments in companies in which
the Company has the ability to exercise significant influence, but not control, are accounted for by the equity method. All
marketable equity and debt securities held by the Company are accounted for under ASC Topic 320, “Investments – Debt and
Equity Securities,” with unrealized gains and losses on available-for-sale securities being included as a separate component of
accumulated other comprehensive income, net of income tax effect. All other investments are carried at cost. All significant
intercompany transactions have been eliminated.
Certain reclassifications were made to prior years’ amounts to conform with the classifications of such amounts for the
most recent year.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States
of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues
and expenses during the reporting period. Such estimates and assumptions are subject to inherent uncertainties, which may
result in actual amounts differing from reported amounts.