Macy's 2012 Annual Report Download - page 90

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
F-43
15. 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)
2012:
Net sales ....................................................................... $ 6,143 $ 6,118 $ 6,075 $ 9,350
Cost of sales ................................................................. (3,757)(3,555)(3,672)(5,554)
Gross margin ................................................................ 2,386 2,563 2,403 3,796
Selling, general and administrative expenses............... (1,995)(2,009)(2,078)(2,400)
Impairments, store closing costs and
gain on sale of leases ................................................ ——— (5)
Net income ................................................................... 181 279 145 730
Basic earnings per share............................................... .43 .68 .36 1.86
Diluted earnings per share............................................ .43 .67 .36 1.83
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)
Impairments, store closing costs and
gain on sale of leases ................................................ ———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
16. Condensed Consolidating Financial Information
Certain debt obligations of the Company described in Note 6, which constitute debt obligations of Parent’s 100%-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) and its subsidiary West 34th Street Insurance Company New York, Macy's
Merchandising Corporation, Macy’s Merchandising Group, Inc. and its subsidiaries Macy's Merchandising Group (Hong
Kong) Limited, Macy's Merchandising Group Procurement, LLC, Macy’s Merchandising Group International, LLC, and
Macy's Merchandising Group International (Hong Kong) Limited. “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 February 2, 2013 and January 28, 2012, the related Condensed
Consolidating Statements of Comprehensive Income for 2012, 2011 and 2010, and the related Condensed Consolidating
Statements of Cash Flows for 2012, 2011, and 2010 are presented on the following pages.