Macy's 2012 Annual Report Download - page 89

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
F-42
The following table shows certain of the Company’s non-financial assets that were measured at fair value on a
nonrecurring basis during 2012 and 2011:
February 2, 2013 January 28, 2012
Fair Value Measurements Fair Value Measurements
Total
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
Significant
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3) Total
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
Significant
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
(millions)
Long-lived assets
held and used....... $ 1 $ — $ — $ 1 $ 5 $ — $ — $ 5
During 2012, long-lived assets held and used with a carrying value of $5 million were written down to their fair value of
$1 million, resulting in an asset impairment charge of $4 million. During 2011, long-lived assets held and used with a carrying
value of $27 million were written down to their fair value of $5 million, resulting in an asset impairment charge of $22 million.
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 prices of similar assets.
Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of
temporary cash investments. The Company places its temporary cash investments in what it believes to be high credit quality
financial instruments.
14. Earnings Per Share
The following table sets forth the computation of basic and diluted earnings per share:
2012 2011 2010
Net
Income Shares Net
Income Shares Net
Income Shares
(millions, except per share data)
Net income and average number of
shares outstanding ........................ $ 1,335 404.4 $ 1,256 423.5 $ 847 422.2
Shares to be issued under deferred
compensation and other plans ...... 1.1 1.0 1.1
$ 1,335 405.5 $ 1,256 424.5 $ 847 423.3
Basic earnings per share.............. $ 3.29 $ 2.96 $ 2.00
Effect of dilutive securities –
Stock options, restricted stock
and restricted stock units ......... 6.7 5.9 4.0
$ 1,335 412.2 $ 1,256 430.4 $ 847 427.3
Diluted earnings per share........... $ 3.24 $ 2.92 $ 1.98
In addition to the stock options, restricted stock and restricted stock units reflected in the foregoing table, stock options to
purchase 7.5 million shares of common stock and restricted stock units relating to 1.4 million shares of common stock were
outstanding at February 2, 2013, stock options to purchase 9.3 million shares of common stock and restricted stock units
relating to 2.1 million shares of common stock were outstanding at January 28, 2012, and stock options to purchase 24.8
million of shares of common stock and restricted stock units relating to 1.0 million shares of common stock were outstanding at
January 29, 2011, but were not included in the computation of diluted earnings per share for 2012, 2011 and 2010, respectively,
because their inclusion would have been antidilutive or they were subject to performance conditions that had not been met.