Macy's 2014 Annual Report Download - page 24

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19
Adjusted EBITDA as a Percent to Net Sales
The following is a tabular reconciliation of the non-GAAP financial measure earnings before interest, taxes,
depreciation and amortization ("EBITDA"), as adjusted to exclude premium on early 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
(millions, except percentages)
Net sales............................................................. $28,105 $27,931 $27,686 $26,405 $25,003 $23,489
Net income......................................................... $ 1,526 $ 1,486 $ 1,335 $ 1,256 $ 847 $ 329
Net income as a percent to net sales .................. 5.4% 5.3% 4.8% 4.8% 3.4% 1.4%
Net income......................................................... $ 1,526 $ 1,486 $ 1,335 $ 1,256 $ 847 $ 329
Add back interest expense - net ......................... 393 388 422 443 508 556
Add back premium on early retirement
of debt............................................................. 17 — 137 — 66 —
Add back federal, state and local income
tax expense..................................................... 864 804 767 712 473 178
Add back (deduct) impairments, store
closing and other costs and gain on
sale of leases................................................... 87 88 5 (25) 25 391
Add back depreciation and amortization ........... 1,036 1,020 1,049 1,085 1,150 1,210
Adjusted EBITDA.............................................. $ 3,923 $ 3,786 $ 3,715 $ 3,471 $ 3,069 $ 2,664
Adjusted EBITDA as a percent to net sales....... 14.0% 13.6% 13.4% 13.1% 12.3% 11.3%