Macy's 2013 Annual Report Download - page 35

Table of Contents
 
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 1, 2014, 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 1, 2014, 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.
 
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:
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