Macy's 2014 Annual Report Download

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aligned with the
CUSTOMER,
prepared for
GROWTH
MACY’S, INC. 2014 ANNUAL REPORT

Table of contents

  • Page 1
    aligned with the CUSTOMER, prepared for GROWTH MACY'S, INC. 2014 ANNUAL REPORT

  • Page 2
    ... of the nation's premier omnichannel retailers, with fiscal 2014 sales of $28.1 billion. As of March 31, 2015, the company operates about 885 stores in 45 states, the District of Columbia, Guam and Puerto Rico under the names of Macy's, Bloomingdale's, Bloomingdale's Outlet and Bluemercury, as well...

  • Page 3
    ... share were $4.40, an increase of 10 percent from $4.00 in 2013, excluding certain items (merchandising and marketing restructuring, store and field adjustments, store closings and a premium for early retirement of debt in 2014; impairment, store closings and My Macy's localization, developed...

  • Page 4
    ...higher level of shopping convenience, in 2014 we rolled out Buy Online Pickup in Store (BOPS) to all Macy's and Bloomingdale's locations nationwide, and successfully piloted same-day delivery to customers in eight markets during the holiday season. Magic Selling has been closely aligned with My Macy...

  • Page 5
    ... reporting company The aggregate market value of the registrant's common stock held by non-affiliates of the registrant as of the last business day of the registrant's most recently completed second fiscal quarter (August 2, 2014) was approximately $20,465,660,000. Indicate the number of shares...

  • Page 6
    ... January 31, 2015, February 1, 2014, February 2, 2013, January 28, 2012 and January 29, 2011, respectively. Fiscal years 2014, 2013, 2011 and 2010 included 52 weeks; fiscal year 2012 included 53 weeks. Forward-Looking Statements This report and other reports, statements and information previously or...

  • Page 7
    ... Outlet stores. Bloomingdale's in Dubai, United Arab Emirates is operated under a license agreement with Al Tayer Insignia, a company of Al Tayer Group, LLC. The Company sells a wide range of merchandise, including apparel and accessories (men's, women's and children's), cosmetics, home furnishings...

  • Page 8
    ... full-time and part-time employees. Because of the seasonal nature of the retail business, the number of employees peaks in the holiday season. Approximately 10% of the Company's employees as of January 31, 2015 were represented by unions. Management considers its relations with its employees to...

  • Page 9
    ... Company since February 2015; prior thereto she served as Executive Vice President - Men's and Kids at Macy's Private Brands from April 2014 to February 2015; as Executive Vice President GMM - Millennial from March 2012 to March 2014; as Executive Vice President Fashion and New Business Development...

  • Page 10
    ... the national and local levels, including department stores, specialty stores, general merchandise stores, off-price and discount stores, manufacturers' outlets, online retailers, mail order catalogs and television shopping, among others. Competition may intensify as the Company's competitors enter...

  • Page 11
    ...have a negative impact on the Company's cash flows, financial condition or results of operations. Increases in the cost of employee benefits could impact the Company's financial results and cash flow. The Company's expenses relating to employee health benefits are significant. Unfavorable changes in...

  • Page 12
    Inability to access capital markets could adversely affect the Company's business or financial condition. Changes in the credit and capital markets, including market disruptions, limited liquidity and interest rate fluctuations, may increase the cost of financing or restrict the Company's access to ...

  • Page 13
    ... respect to store and distribution center locations, merchandise, advertising, software development and support, logistics, other agreements for goods and services in order to operate the Company's business in the ordinary course, extensions of credit, credit card accounts and related receivables...

  • Page 14
    ... the Company's stock lower their rating or lower their projections for future growth and financial performance, the Company's stock price could decline. Also, sales of a substantial number of shares of the Company's common stock in the public market or the appearance that these shares are available...

  • Page 15
    Store count activity was as follows: 2014 2013 2012 Store count at beginning of fiscal year ...Stores opened and other expansions...Stores closed or consolidated into existing centers ...Store count at end of fiscal year ... 840 5 (22) 823 841 6 (7) 840 842 7 (8) 841 Additional information about...

  • Page 16
    ...financial condition and legal or contractual restrictions. The following table provides information regarding the Company's purchases of Common Stock during the fourth quarter of 2014. Total Number of Shares Purchased (thousands) Average Price per Share ($) Number of Shares Purchased under Program...

  • Page 17
    The following graph compares the cumulative total stockholder return on the Common Stock with the Standard & Poor's 500 Composite Index and the Standard & Poor's Retail Department Store Index for the period from January 30, 2010 through January 31, 2015, assuming an initial investment of $100 and ...

  • Page 18
    ... Consolidated Financial Statements and the notes thereto and the other information contained elsewhere in this report. 2014 Consolidated Statement of Income Data: Net sales ...$ Cost of sales ...Gross margin...Selling, general and administrative expenses ...Impairments, store closing and other costs...

  • Page 19
    ... organization operating stores, websites and mobile applications 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. The Company has stores in 45...

  • Page 20
    ...'s Outlet store in Rosemont, IL. During 2014, the Company opened three new Macy's stores in the Bronx, NY; Las Vegas, NV; and Sarasota, FL, one Bloomingdale's replacement store in Palo Alto, CA, and one new Bloomingdale's furniture clearance store in Wayne, NJ. The Company has announced that in 2015...

  • Page 21
    .... Diluted earnings per share, excluding certain items, grew 10% to $4.40 in 2014. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, impairments, store closing and other costs) as a percent to net sales reached 14% in 2014, the Company's long term target rate. Achieving...

  • Page 22
    ...of the Company's previously owned athletic footwear business to licensed Finish Line shops). Management believes that excluding certain items that may vary substantially in frequency and magnitude from diluted earnings per share and from operating income and EBITDA as percentages to sales are useful...

  • Page 23
    ... the Company believes to be the most directly comparable GAAP measure. 2014 2013 2012 2011 2010 Diluted earnings per share ...Add back the impact of impairments, store closing and other costs...Add back the impact of premium on early retirement of debt...Deduct the impact of gain on sale of leases...

  • Page 24
    ... retirement of debt, impairments, store closing and other costs and gain on sales of leases ("Adjusted EBITDA"), as a percent to net sales to GAAP net income as a percent to net sales, which the Company believes to be the most directly comparable GAAP financial measure. 2014 2013 2012 2011 2010 2009...

  • Page 25
    ...point average to compensate for seasonal fluctuations. The following is a tabular reconciliation of the non-GAAP financial measure of ROIC to operating income as a percent to property and equipment - net, which the Company believes to be the most directly comparable GAAP financial measure. 2014 2013...

  • Page 26
    ...17) Premium on early retirement of debt ...Income before income taxes ...2,390 (864) Federal, state and local income tax expense ...Net income ...$ 1,526 Diluted earnings per share ...Supplemental Non-GAAP Financial Measures Increase in comparable sales on an owned plus licensed basis...Operating...

  • Page 27
    ... tabletop businesses. Sales of the Company's private label brands represented approximately 20% of net sales in the Macy's-branded operations in 2014. Cost of Sales Cost of sales for 2014 increased $138 million from 2013. The cost of sales rate as a percent to net sales of 60.0% was 10 basis points...

  • Page 28
    ...Sales of the Company's private label brands continued to be strong and represented approximately 20% of net sales in the Macy's-branded stores in 2013. Cost of Sales Cost of sales for 2013 increased $187 million from 2012. The cost of sales rate as a percent to net sales of 59.9% was 20 basis points...

  • Page 29
    ... million. The acquisition of Bluemercury, Inc. for approximately $210 million in cash. The Company's budgeted capital expenditures are primarily related to new stores, store remodels, maintenance, the continued renovation of Macy's Herald Square, technology and omnichannel investments, distribution...

  • Page 30
    ...one new Bloomingdale's furniture clearance store. During 2013, the Company opened three new Macy's stores, one Macy's replacement store, one new Bloomingdale's store and one new Bloomingdale's Outlet store. On March 9, 2015, the Company completed its acquisition of Bluemercury, Inc., a luxury beauty...

  • Page 31
    ... on prevailing market conditions, alternate uses of capital and other factors. On February 27, 2015, the Company's board of directors declared a quarterly dividend of 31.25 cents per share on its common stock, payable April 1, 2015 to Macy's shareholders of record at the close of business on March...

  • Page 32
    ...other corporate purposes including the redemption or repurchase of debt, equity or other securities through open market purchases, privately negotiated transactions or otherwise, and the funding of pension related obligations. The Company intends from time to time to consider additional acquisitions...

  • Page 33
    ... reduce the amount of advertising that it uses, depending on the specific vendors involved and market conditions existing at the time. Long-Lived Asset Impairment and Restructuring Charges The carrying values of long-lived assets are periodically reviewed by the Company whenever events or changes in...

  • Page 34
    ... or requirements. In February 2013, the Company announced changes to the Pension Plan and SERP whereby eligible employees no longer earn future pension service credits after December 31, 2013, with limited exceptions. All retirement benefits attributable to service in subsequent periods will be...

  • Page 35
    ... in 2014. As of the date of this report, the Company does not anticipate making funding contributions to the Pension Plan in 2015. Management believes that, with respect to the Company's current operations, cash on hand and funds from operations, together with available borrowing under its credit...

  • Page 36
    ... 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...

  • Page 37
    ...Page Report of Management ...Report of Independent Registered Public Accounting Firm ...Consolidated Statements of Income for the fiscal years ended January 31, 2015, February 1, 2014 and February 2, 2013 ...Consolidated Statements of Comprehensive Income for the fiscal years ended January 31, 2015...

  • Page 38
    ... Disagreements with Accountants on Accounting and Financial Disclosure. Controls and Procedures. a. Disclosure Controls and Procedures The Company's Chief Executive Officer and Chief Financial Officer have carried out, as of January 31, 2015, with the participation of the Company's management, an...

  • Page 39
    ...Stanley, an investment bank. Chief Financial Officer, Treasurer and Executive Vice President of RLJ Lodging Trust, a publicly-traded lodging real estate investment trust, since February 2013. Co-Founder and Director of Kandu, a start-up company at the intersection of kids and technology, since April...

  • Page 40
    ...12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. Information called for by this item is set forth under "Stock Ownership - Certain Beneficial Owners" and "Stock Ownership - Stock Ownership of Directors and Executive Officers" in the Proxy Statement...

  • Page 41
    ...or "May New York") and The Bank of New York Mellon Trust Company, N.A. ("BNY Mellon", successor to J.P. Morgan Trust Company and as successor to The First National Bank of Chicago), as Trustee (the "1991 Indenture") Guarantee of Securities, dated as of August 30, 2005, by the Company relating to the...

  • Page 42
    ... U.S. Bank National Association (successor to Citibank, N.A.), as Trustee Guarantee of Securities, dated as of August 30, 2005, by the Company relating to the 1997 Indenture Indenture, dated as of June 17, 1996, among the Company (as successor to May Delaware), Macy's Retail (f/k/a May New York) and...

  • Page 43
    ..."May 14, and JPMorgan Chase Bank, N.A., as administrative 2013 Form 8-K") agent and paying agent, and Bank of America, N.A., as administrative agent First Amendment, dated as of May 30, 2013, to the Exhibit 10.1.1 to the Company's Quarterly Report Credit Agreement, among Macy's Retail and on Form 10...

  • Page 44
    ... Markets, LLC Tax Sharing Agreement, dated as of October 31, 2014, among Macy's, Inc. and members of the Affiliated Group Amended and Restated Credit Card Program Agreement, dated November 10, 2014, among the Company, FDS Bank, Macy's Credit and Customer Services, Inc. ("MCCS"), Macy's West Stores...

  • Page 45
    ... Plan effective January 1, 2012 * Second Amendment to Supplementary Executive Retirement Plan effective January 1, 2012 * Third Amendment to Supplementary Executive Retirement Plan effective December 31, 2013 * Executive Deferred Compensation Plan * Exhibit 10.3 to the Company's Current Report...

  • Page 46
    ... financial statements from Macy's, Inc.'s Annual Report on Form 10-K for the year ended January 31, 2015, filed on April 1, 2015, formatted in XBRL: (i) Consolidated Statements of Income, (ii) Consolidated Statements of Comprehensive Income, (iii) Consolidated Balance Sheets, (iv) Consolidated...

  • Page 47
    ...of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities indicated on April 1, 2015. * Terry J. Lundgren Chairman of the Board and Chief Executive Officer (principal executive officer) and Director * Stephen...

  • Page 48
    ... TO CONSOLIDATED FINANCIAL STATEMENTS Page Report of Management ...Report of Independent Registered Public Accounting Firm...Consolidated Statements of Income for the fiscal years ended January 31, 2015, February 1, 2014 and February 2, 2013...Consolidated Statements of Comprehensive Income for...

  • Page 49
    ... is supported by a program of internal audits with appropriate management follow-up action, to provide reasonable assurance, at appropriate cost, that the Company's assets are protected and transactions are properly recorded. Additionally, the integrity of the financial accounting system is based...

  • Page 50
    Report of Independent Registered Public Accounting Firm The Board of Directors and Shareholders Macy's, Inc.: We have audited the accompanying consolidated balance sheets of Macy's, Inc. and subsidiaries as of January 31, 2015 and February 1, 2014, and the related consolidated statements of income,...

  • Page 51
    .... CONSOLIDATED STATEMENTS OF INCOME (millions, except per share data) 2014 2013 2012 Net sales ...Cost of sales ...Gross margin ...Selling, general and administrative expenses...Impairments, store closing and other costs ...Operating income ...Interest expense ...Premium on early retirement of...

  • Page 52
    MACY'S, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (millions) 2014 2013 2012 Net income ...$ Other comprehensive income (loss), net of taxes: Actuarial gain (loss) and prior service cost on post employment and postretirement benefit plans, net of tax effect of $269 million, $108 ...

  • Page 53
    ... debt ...Merchandise accounts payable ...Accounts payable and accrued liabilities...Income taxes ...Deferred income taxes ...Total Current Liabilities...Long-Term Debt...Deferred Income Taxes...Other Liabilities ...Shareholders' Equity: Common stock (340.6 and 364.9 shares outstanding)...Additional...

  • Page 54
    MACY'S, INC. CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (millions) Common Stock Additional Paid-In Capital Accumulated Equity Treasury Stock Accumulated Other Comprehensive Income (Loss) Total Shareholders' Equity Balance at January 28, 2012...$ Net income ...Other ...

  • Page 55
    MACY'S, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (millions) 2014 2013 2012 Cash flows from operating activities: Net income ...$ Adjustments to reconcile net income to net cash provided by operating activities: Impairments, store closing and other costs ...Depreciation and amortization ...Stock-...

  • Page 56
    ... 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. The Company has stores in 45 states...

  • Page 57
    ... Consolidated Statements of Income. Under the Program Agreement, Citibank offers proprietary and non-proprietary credit to the Company's customers through previously existing and newly opened accounts. Loyalty Programs The Company maintains customer loyalty programs in which customers earn rewards...

  • Page 58
    ... to cooperative advertising programs, with some vendors participating in multiple programs. These allowances represent reimbursements by vendors of costs incurred by the Company to promote the vendors' merchandise and are netted against advertising and promotional costs when the related costs are...

  • Page 59
    ... business plan or other forecasted results. Discount rates reflect market-based estimates of the risks associated with the projected cash flows directly resulting from the use of those assets in operations. The estimates of fair value of reporting units are based on the best information available...

  • Page 60
    ... future compensation levels, the long-term rate of return on assets and the growth in health care costs. The cost of these benefits is generally recognized in the Consolidated Financial Statements over an employee's term of service with the Company, and the accrued benefits are reported in accounts...

  • Page 61
    ... risk-adjusted rate of return that would be used by market participants in valuing these assets or based on prices of similar assets. The Company expects to pay out the 2014 accrued severance costs, which are included in accounts payable and accrued liabilities on the Consolidated Balance Sheets...

  • Page 62
    ... on the Consolidated Balance Sheets. Amounts received under the Program Agreement were $975 million for 2014, $928 million for 2013 and $865 million for 2012, and are treated as reductions of SG&A expenses on the Consolidated Statements of Income. The Company's earnings from credit operations, net...

  • Page 63
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Capitalized leases are included in the Consolidated Balance Sheets as property and equipment while the related obligation is included in short-term ($1 million) and long-term ($29 million) debt. Amortization of assets subject to capitalized ...

  • Page 64
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) 5. Goodwill and Other Intangible Assets The following summarizes the Company's goodwill and other intangible assets: January 31, February 1, 2015 2014 (millions) Non-amortizing intangible assets Goodwill ...$ Accumulated impairment losses ...

  • Page 65
    ...CONSOLIDATED FINANCIAL STATEMENTS - (Continued) 6. Financing The Company's debt is as follows: January 31, February 1, 2015 2014 (millions) Short-term debt: 7.5% Senior debentures due 2015 ...$ 5.75% Senior notes due 2014...Capital lease and current portion of other long... due 2016 ...8.5% ...

  • Page 66
    ...on early retirement of debt on the Consolidated Statements of Income. Future maturities of long-term debt, other than capitalized leases, are shown below: (millions) Fiscal year 2016...$ 2017...2018...2019...2020...After 2020 ... 642 306 6 41 39 6,056 During 2014, 2013 and 2012, the Company repaid...

  • Page 67
    ...of credit outstanding at January 31, 2015 and February 1, 2014. Revolving loans under the credit agreement bear interest based on various published rates. The Company's credit agreement, which is an obligation of a 100%-owned subsidiary of Macy's, Inc. ("Parent"), is not secured. However, Parent has...

  • Page 68
    ...%-owned subsidiary of Macy's, Inc. and Parent has fully and unconditionally guaranteed these obligations (see Note 16, "Condensed Consolidating Financial Information"). Other Financing Arrangements At January 31, 2015 and February 1, 2014, the Company had dedicated $37 million of cash, included in...

  • Page 69
    ... 1, 2015 2014 (millions) Accounts payable...$ Gift cards and customer award certificates...Accrued wages and vacation ...Current portion of post employment and postretirement benefits ...Taxes other than income taxes...Lease related liabilities ...Current portion of workers' compensation and...

  • Page 70
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) The income tax expense reported differs from the expected tax computed by applying the federal income tax statutory rate of 35% for 2014, 2013 and 2012 to income before income taxes. The reasons for this difference and their tax effects are ...

  • Page 71
    ... Consolidated Balance Sheets and follows a policy of recognizing all interest and penalties related to unrecognized tax benefits in income tax expense. Federal, state and local interest and penalties, which amounted to a credit of $3 million for 2014, an expense of $9 million for 2013, and a credit...

  • Page 72
    ...2, 2012, the SERP was closed to new participants. In February 2013, the Company announced changes to the Pension Plan and SERP whereby eligible employees no longer earn future pension service credits after December 31, 2013, with limited exceptions. All retirement benefits attributable to service in...

  • Page 73
    ... value of plan assets, beginning of year ...Actual return on plan assets ...Company contributions ...Benefits paid...Fair value of plan assets, end of year ...Funded status at end of year ...$ Amounts recognized in the Consolidated Balance Sheets at January 31, 2015 and February 1, 2014 Other assets...

  • Page 74
    ...2015 and February 1, 2014: 2014 2013 Discount rate ...Rate of compensation increases ... 3.55% 4.10% 4.50% 4.10% The following weighted average assumptions were used to determine the net periodic pension cost for the Pension Plan: 2014 2013 2012 Discount rate ...Expected long-term return on plan...

  • Page 75
    ... an estimate of future compensation levels taking into account general increase levels, seniority, promotions and other factors. The salary increase assumption is used to project employees' pay in future years and its impact on the projected benefit obligation for the Pension Plan. The assets of the...

  • Page 76
    ...Value Measurements Quoted Prices in Active Markets for Identical Assets (Level 1) (millions) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Cash and cash equivalents...$ Equity securities: U.S...International ...Fixed income securities: U. S. Treasury bonds...

  • Page 77
    ...Value Measurements Quoted Prices in Active Markets for Identical Assets (Level 1) (millions) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Cash and cash equivalents...$ Equity securities: U.S...International ...Fixed income securities: U. S. Treasury bonds...

  • Page 78
    ... fair value of the Pension Plan's level 3 assets for 2014 and 2013: 2014 (millions) 2013 Balance, beginning of year ...$ Actual gain on plan assets: Relating to assets still held at the reporting date ...Relating to assets sold during the period ...Purchases...Sales ...Balance, end of year...$ 548...

  • Page 79
    ...Change in plan assets Fair value of plan assets, beginning of year ...Company contributions ...Benefits paid...Fair value of plan assets, end of year ...Funded status at end of year ...$ Amounts recognized in the Consolidated Balance Sheets at January 31, 2015 and February 1, 2014 Accounts payable...

  • Page 80
    ... retirement plan: 2014 2013 2012 Discount rate ...Rate of compensation increases ... 4.50% N/A 4.15% 4.90% 4.65% 4.90% The supplementary retirement plan's assumptions are evaluated annually and updated as necessary. The discount rate used to determine the present value of the projected benefit...

  • Page 81
    ... by the Company and paid from the supplementary retirement plan: (millions) Fiscal year 2015...$ 2016...2017...2018...2019...2020-2024...10. Postretirement Health Care and Life Insurance Benefits 69 68 70 64 68 267 In addition to pension and other supplemental benefits, certain retired employees...

  • Page 82
    ... TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Net postretirement benefit costs and other amounts recognized in other comprehensive loss included the following actuarially determined components: 2014 2013 (millions) 2012 Net Periodic Postretirement Benefit Cost Service cost ...$ Interest cost...

  • Page 83
    ... Acts on the active and retiree benefit plans offered by the Company. The following provides the assumed health care cost trend rates related to the Company's accumulated postretirement benefit obligations at January 31, 2015 and February 1, 2014: 2014 2013 Health care cost trend rates assumed for...

  • Page 84
    ... directors, officers, other key executives and employees and is also intended to provide incentives and rewards relating to the Company's business plans to encourage such persons to devote themselves to the business of the Company. Prior to 2009, the Company had two equity plans; the Macy's 1995...

  • Page 85
    ... FINANCIAL STATEMENTS - (Continued) Also during 2014, 2013 and 2012, the CMD Committee approved awards of time-based restricted stock units to certain senior executives of the Company and awards of time-based restricted stock units to the non-employee members of the Company's board of directors...

  • Page 86
    ... the total shareholder return ranking of the Company among a ten-or twelve-company executive compensation peer group over the remaining performance periods. The expected volatility of the Company's common stock at the date of grant was estimated based on a historical average volatility rate for...

  • Page 87
    ... straight-line basis primarily over the vesting period and was calculated based on the ending stock price for each reporting period. There are no stock credit awards outstanding and no related liability under the stock credit plans as of January 31, 2015 or February 1, 2014. 12. Shareholders' Equity...

  • Page 88
    ... of accumulated other comprehensive loss for 2014, 2013 and 2012 relates to post employment and postretirement plan items. The net actuarial gains and losses and prior service costs and credits related to post employment and postretirement benefit plans are reclassified out of accumulated other...

  • Page 89
    ... the Company's financial assets that are required to be measured at fair value on a recurring basis, by level within the hierarchy as defined by applicable accounting standards: January 31, 2015 Fair Value Measurements February 1, 2014 Fair Value Measurements Total Quoted Prices in Active Markets...

  • Page 90
    ... Income Shares Net Income 2013 Shares Net Income 2012 Shares (millions, except per share data) Net income and average number of shares outstanding ...$ 1,526 Shares to be issued under deferred compensation and other plans...$ 1,526 Basic earnings per share ...Effect of dilutive securities - Stock...

  • Page 91
    ... condensed consolidating financial statements, "Other Subsidiaries" includes all other direct subsidiaries of Parent, including FDS Bank, West 34th Street Insurance Company and its subsidiary West 34th Street Insurance Company New York, Macy's Merchandising Corporation, Macy's Merchandising Group...

  • Page 92
    ... Balance Sheet As of January 31, 2015 (millions) Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Parent Consolidated ASSETS: Current Assets: Cash and cash equivalents...Receivables...Merchandise inventories ...Prepaid expenses and other current assets ...Income taxes...Total...

  • Page 93
    ...) MACY'S, INC. Condensed Consolidating Statement of Comprehensive Income For 2014 (millions) Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Parent Consolidated Net sales...$ Cost of sales...Gross margin...Selling, general and administrative expenses ...Impairments, store closing...

  • Page 94
    ...Continued) MACY'S, INC. Condensed Consolidating Statement of Cash Flows For 2014 (millions) Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Parent Consolidated Cash flows from operating activities: Net income ...$ Impairments, store closing and other costs ...Equity in earnings of...

  • Page 95
    ... Balance Sheet As of February 1, 2014 (millions) Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Parent Consolidated ASSETS: Current Assets: Cash and cash equivalents...Receivables...Merchandise inventories ...Prepaid expenses and other current assets ...Income taxes...Total...

  • Page 96
    ...) MACY'S, INC. Condensed Consolidating Statement of Comprehensive Income For 2013 (millions) Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Parent Consolidated Net sales...$ Cost of sales...Gross margin...Selling, general and administrative expenses ...Impairments, store closing...

  • Page 97
    ... (Continued) MACY'S, INC. Condensed Consolidating Statement of Cash Flows For 2013 (millions) Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Parent Consolidated Cash flows from operating activities: Net income...$ Impairments, store closing and other costs...Equity in earnings of...

  • Page 98
    ...) MACY'S, INC. Condensed Consolidating Statement of Comprehensive Income For 2012 (millions) Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Parent Consolidated Net sales...$ Cost of sales...Gross margin...Selling, general and administrative expenses ...Impairments, store closing...

  • Page 99
    ... (Continued) MACY'S, INC. Condensed Consolidating Statement of Cash Flows For 2012 (millions) Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Parent Consolidated Cash flows from operating activities: Net income...$ Impairments, store closing and other costs...Equity in earnings of...

  • Page 100

  • Page 101
    ... of our programs for corporate giving, employee volunteerism and cause marketing. Our company is known for its exceptional support of worthwhile causes and charities nationally, as well as in local communities nationwide. Online Shopping By going to macys.com, bloomingdales.com and bluemercury.com...

  • Page 102
    ... Gennette President Timothy M. Adams Chief for International Business Development William S. Allen Chief Human Resources Officer Timothy Baxter Chief Merchandising Officer Robert B. Harrison Chief Omnichannel Officer Karen M. Hoguet Chief Financial Officer Other Macy's, Inc. Corporate Officers...

  • Page 103
    SHAREHOLDER information Contact Us: macysinc.com/IR Sign up to have Macy's, Inc.'s news releases sent to you via email by subscribing to News Direct. Get the latest stock price and chart, or take advantage of the historical price look-up feature. Macy's, Inc. Shares Macy's, Inc. c/o Computershare ...

  • Page 104
    macysinc.com macys.com bloomingdales.com bluemercury.com