Macy's 2014 Annual Report Download - page 56

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F-9
MACY’S, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Organization and Summary of Significant Accounting Policies
Nature of Operations
Macy’s, Inc. and subsidiaries (the “Company”) is an omnichannel 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, the District of Columbia, Guam and Puerto Rico. As of January 31, 2015, the Company’s operations and
reportable segments were conducted through Macy’s, Bloomingdale’s and Bloomingdale’s Outlet, which are aggregated
into one reporting segment in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards
Codification (“ASC”) Topic 280, “Segment Reporting.” The metrics used by management to assess the performance of the
Company’s operating divisions include sales trends, gross margin rates, expense rates, and rates of earnings before interest
and taxes (“EBIT”) and earnings before interest, taxes, depreciation and amortization (“EBITDA”). The Company’s
operating divisions have historically had similar economic characteristics and are expected to have similar economic
characteristics and long-term financial performance in future periods.
For 2014, 2013 and 2012, the following merchandise constituted the following percentages of sales:
2014 2013 2012
Feminine Accessories, Intimate Apparel, Shoes and Cosmetics.............. 38% 38% 38%
Feminine Apparel..................................................................................... 23 23 23
Men’s and Children’s............................................................................... 23 23 23
Home/Miscellaneous................................................................................ 16 16 16
100% 100% 100%
Fiscal Year
The Company’s fiscal year ends on the Saturday closest to January 31. Fiscal years 2014, 2013 and 2012 ended on
January 31, 2015, February 1, 2014 and February 2, 2013, respectively. Fiscal years 2014 and 2013 included 52 weeks and
fiscal year 2012 included 53 weeks. References to years in the Consolidated Financial Statements relate to fiscal years
rather than calendar years.
Basis of Presentation
The Consolidated Financial Statements include the accounts of the Company and its 100%-owned subsidiaries. All
significant intercompany transactions have been eliminated.
Certain reclassifications were made to prior years’ amounts to conform with the classifications of such amounts for
the most recent year.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United
States of America requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Such estimates and assumptions are subject to inherent uncertainties,
which may result in actual amounts differing from reported amounts.