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Macy's, Inc. 2015 Annual Report |
MACY’S, INC. 2015 ANNUAL REPORT

Table of contents

  • Page 1
    MACY'S, INC. 2015 ANNUAL REPORT Macy's, Inc. 2015 Annual Report |

  • Page 2
    ... and a Macy's shopping app for mobile devices. Macy's offers powerful assortments and the best brands, tailored to each and every customer with obvious value, engaging service and unforgettable moments. In 2015, the company opened six pilot Macy's Backstage off-price stores in the New York City area...

  • Page 3
    ...of growth in sales, earnings, cash ï¬,ow and return on invested capital. Macy's and Bloomingdale's became widely recognized as the industry leader for our omnichannel approach to fashion retailing, and we moved fast to adjust our operations to serve the evolving shopping preferences of customers. In...

  • Page 4
    ...llment capabilities are expanding with national availability of Buy Online Pickup in Store and Same Day Delivery in an increasing number of markets at Macy's and Bloomingdale's. In 2015, we opened our fifth direct-to-consumer fulfillment megacenter, a 1.3 million-square-foot facility in Tulsa, OK...

  • Page 5
    ... 34th Street New York, New York 10001 (212) 494-1602 Incorporated in Delaware I.R.S. No. 13-3324058 Securities Registered Pursuant to Section 12(b) of the Act: Title of Each Class Common Stock, par value $.01 per share Name of Each Exchange on Which Registered New York Stock Exchange Securities...

  • Page 6
    ...2013 and January 28, 2012, respectively. Fiscal years 2015, 2014, 2013 and 2011 included 52 weeks; fiscal year 2012 included 53 weeks. Forward-Looking Statements This report and other reports, statements and information previously or subsequently filed by the Company with the Securities and Exchange...

  • Page 7
    ..., customer service and credit marketing services in respect of all credit card accounts that are owned either by Department Stores National Bank ("DSNB"), a subsidiary of Citibank, N.A., or FDS Bank and that constitute a part of the credit programs of the Company's retail operations. Macy's Systems...

  • Page 8
    ... services for the Company's operations and digital customer fulfillment. The Company's executive offices are located at 7 West 7th Street, Cincinnati, Ohio 45202, telephone number: (513) 579-7000 and 151 West 34th Street, New York, New York 10001, telephone number: (212) 494-1602. Employees...

  • Page 9
    ... 67 Chairman of the Board; Chief Executive Officer; Director Chief Human Resources Officer President Chief Omnichannel Officer Chief Financial Officer Chief Stores Officer Chief Private Brands Officer Chief Strategy, Analytics and Innovation Officer Chief Growth Officer Executive Vice President and...

  • Page 10
    ...for furniture for Macy's Home Store from February 2006 to May 2009. Molly Langenstein has been Chief Private Brand Officer of the 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...

  • Page 11
    ... or national governments might limit or ban public gatherings or customers might avoid public places, such as the Company's stores. A regional or global health pandemic might also result in disruption or delay of production and delivery of materials and products in the Company's supply chain and...

  • Page 12
    ... have on the Company-sponsored medical plans. 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...

  • Page 13
    ...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, and other vital matters. Current economic, industry and market conditions could result in increased risks to the Company associated...

  • Page 14
    ...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 for sale could adversely affect the market price of the Company's common stock...

  • Page 15
    ...'s retail stores are located at urban or suburban sites, principally in densely populated areas across the United States. Store count activity was as follows: 2015 2014 2013 Store count at beginning of fiscal year ...Stores opened...Acquisition of Bluemercury stores...Stores closed or consolidated...

  • Page 16
    Additional information about the Company's logistics network as of January 30, 2016 is as follows: Location Primary Function Owned or Leased Square Footage (thousands) Cheshire, CT...Chicago, IL ...Denver, CO...Goodyear, AZ ...Hayward, CA...Houston, TX ...Joppa, MD ...Kapolei, HI ...Los Angeles, CA...

  • Page 17
    ...listed on the NYSE under the trading symbol "M." As of January 30, 2016, the Company had approximately 16,800 stockholders of record. The following table sets forth for each quarter during 2015 and 2014 the high and low sales prices per share of Common Stock as reported on the NYSE and the dividends...

  • Page 18
    ...'s, Gap, J.C. Penney, Kohl's, L Brands, Nordstrom, Ross Stores, Sears Holdings, Target, TJX Companies and Wal-Mart. The change in peer group was made to be consistent with the peer group that the Compensation and Management Development Committee of the Board of Directors uses in benchmarking and...

  • Page 19
    ... ...$ Diluted earnings per share attributable to Macy's, Inc. shareholders ...$ Average number of shares outstanding...Cash dividends paid per share...$ Depreciation and amortization...$ Capital expenditures...$ Balance Sheet Data (at year end): Cash and cash equivalents ...$ Total assets...Short...

  • Page 20
    ...Forward-Looking Statements." Overview The Company is an omnichannel retail organization operating stores, websites and mobile applications under three brands (Macy's, Bloomingdale's and Bluemercury) that sell a wide range of merchandise, including apparel and accessories (men's, women's and children...

  • Page 21
    ..., in 2015, the Company opened the first six pilot stores in Macy's new off-price business, Macy's Backstage, in the New York City metro area. The Macy's Backstage locations average about 30,000 square feet and sell an assortment of women's, men's and children's apparel, shoes, fashion accessories...

  • Page 22
    ..., store closing and other costs) as a percent to net sales was 12.5% in 2015, as compared to 14.0% in 2014. Return on invested capital ("ROIC"), a key measure of operating productivity, was 20.1%, a decrease from 22.4% in 2014. The Company repurchased 34.8 million shares of its common stock for...

  • Page 23
    ...owned plus licensed basis, to GAAP comparable sales (i.e., on an owned basis), which the Company believes to be the most directly comparable GAAP financial measure. 2015 2014 2013 2012 2011 Increase (decrease) in comparable sales on an owned basis (note 1) ...Impact of growth in comparable sales of...

  • Page 24
    ... which the Company believes to be the most directly comparable GAAP measure. 2015 2014 2013 2012 2011 Diluted earnings per share attributable to Macy's, Inc. shareholders...Add back the impact of impairments, store closing and other costs...Add back the impact of premium on early retirement of debt...

  • Page 25
    ...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. 2015 2014 2013 2012 2011...

  • Page 26
    ... of non-capitalized leases is consistent with industry and credit rating agency practice and the specified assets are subject to a four-point average to compensate for seasonal fluctuations. Certain reclassifications have been made to 2015 amounts to conform to the balance sheet classifications of...

  • Page 27
    ... Sales 2014 Amount % to Sales 2013 Amount % to Sales (dollars in millions, except per share figures) Net sales ...Increase (decrease) in sales ...Increase (decrease) in comparable sales...Cost of sales ...Gross margin...Selling, general and administrative expenses ...Impairments, store closing and...

  • Page 28
    ...factor, while sales at locations that are frequented by international tourists, such as New York City, Las Vegas, San Francisco and Chicago were negatively impacted by lower levels of spending by these tourists. Digital sales growth continued strong in 2015. By family of business, sales in 2015 were...

  • Page 29
    ...Net income attributable to Macy's, Inc. shareholders for 2014 increased compared to 2013, reflecting the benefits of the key strategies at Macy's and Bloomingdale's as well as lower retirement expenses, higher income from credit operations and gains on the sale of certain store locations and surplus...

  • Page 30
    ...2013. The increase in net interest expense for 2014 was due to higher levels of average outstanding borrowings as compared to 2013. Premium on Early Retirement of Debt On November 14, 2014, the Company provided a notice of redemption related to all of the $407 million of 7.875% senior notes due 2015...

  • Page 31
    ... capital expenditures are primarily related to new stores, store remodels, maintenance, the renovation of the Macy's Brooklyn location, technology and omnichannel investments, distribution network improvements and new growth initiatives. The Company has announced that in 2016 it intends to open...

  • Page 32
    ... clearance store. In 2015, the Company launched the marketing of potential partnership and joint venture transactions for certain of its real estate. This includes the owned mall-based properties, as well as Macy's flagship real estate assets in Manhattan (Herald Square), San Francisco (Union Square...

  • Page 33
    ... paper program. The Company may issue and sell commercial paper in an aggregate amount outstanding at any particular time not to exceed its then-current combined borrowing availability under the credit agreement with certain financial institutions. During 2015, the Company utilized seasonal...

  • Page 34
    ... 1, 2016 to Macy's shareholders of record at the close of business on March 15, 2016. Additionally, the Company's board of directors announced the intent to increase the quarterly dividend to 37.75 cents per share on its common stock effective with the July 1, 2016 dividend payment. The record date...

  • Page 35
    ... on hand, cash from operations, borrowings under existing or new credit facilities and the issuance of long-term debt or other securities, including common stock. Critical Accounting Policies Merchandise Inventories Merchandise inventories are valued at the lower of cost or market using the last-in...

  • Page 36
    ... in 2015. As of the date of this report, the Company does not anticipate making funding contributions to the Pension Plan in 2016. 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 37
    ... using individual spot rates from the yield curve composed of the rates of return from a portfolio of high quality corporate debt securities available at the measurement date. These spot rates align to each of the projected benefit obligations and service cost cash flows. The Company is making...

  • Page 38
    ...on its consolidated financial position, results of operations, and cash flows. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for substantially...

  • Page 39
    ... outstanding at January 30, 2016, 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. Item 8. Consolidated Financial Statements and Supplementary Data. Information...

  • Page 40
    ...recently completed quarter that materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting. PART III Item 10. Directors, Executive Officers and Corporate Governance. The information required by this item for executive officers is set...

  • Page 41
    ...Former Chief Executive Officer of Allianz Global Investors Capital, a diversified global investment firm. Executive Vice President of Starbucks Corporation since September 2009, with responsibility for global loyalty and digital development since September 2015. On March 21, 2016, the Board elected...

  • Page 42
    ...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 43
    ... Indenture, dated as of January 15, 1991, among the Company (as successor to The May Department Stores Company ("May Delaware")), Macy's Retail Holdings, Inc. ("Macy's Retail") (f/k/a The May Department Stores Company (NY) or "May New York") and The Bank of New York Mellon Trust Company, N.A. ("BNY...

  • Page 44
    ... 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 45
    ..."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 46
    ... 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, Inc., Bloomingdales, Inc., Department Stores National Bank ("DSNB") and Citibank, N.A. 1995 Executive Equity...

  • Page 47
    ... 10.18.1 to the 2014 Form 10-K 10.15 10.15.1 Exhibit 10.29 to the 2008 Form 10-K Exhibit 10.21.1 to the Company's Annual Report on Form 10-K (File No. 1-13536) for the fiscal year ended January 28, 2012 Exhibit 10.20.2 to the 2012 Form 10-K Exhibit 10.20.3 to the 2013 Form 10-K Exhibit...

  • Page 48
    ...sum distribution from account if its balance does not exceed a certain amount, effective July 1, 2015* Change in Control Plan, effective November 1, 2009, as revised and restated January 1, 2014 * Amended and Restated Time Sharing Agreement between Macy's, Inc. and Terry J. Lundgren, dated August 21...

  • Page 49
    ... 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 March 30, 2016. * Terry J. Lundgren Chairman of the Board and Chief Executive Officer (principal executive officer) and Director * Francis...

  • Page 50
    ..., January 31, 2015 and February 1, 2014...Consolidated Balance Sheets at January 30, 2016 and January 31, 2015 ...Consolidated Statements of Changes in Shareholders' Equity for the fiscal years ended January 30, 2016, January 31, 2015 and February 1, 2014...Consolidated Statements of Cash Flows for...

  • Page 51
    ... representatives present and have free access to the Audit Committee at any time. The Audit Committee is responsible for recommending to the Board of Directors the engagement of the independent registered public accounting firm and the general oversight review of management's discharge of its...

  • Page 52
    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 30, 2016 and January 31, 2015, and the related consolidated statements of income,...

  • Page 53
    .... CONSOLIDATED STATEMENTS OF INCOME (millions, except per share data) 2015 2014 2013 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 54
    MACY'S, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (millions) 2015 2014 2013 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 and $108 ...

  • Page 55
    ... ...Merchandise accounts payable ...Accounts payable and accrued liabilities...Income taxes ...Total Current Liabilities...Long-Term Debt...Deferred Income Taxes...Other Liabilities ...Shareholders' Equity: Common stock (310.3 and 340.6 shares outstanding)...Additional paid-in capital ...Accumulated...

  • Page 56
    ...INC. CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (millions) Additional Paid-In Capital Accumulated Other Comprehensive Income (Loss) Total Macy's, Inc. Shareholders' Equity Noncontrolling Interest Total Shareholders' Equity Common Stock Accumulated Equity Treasury Stock Balance at...

  • Page 57
    MACY'S, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (millions) 2015 2014 2013 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 58
    ...") is an omnichannel retail organization operating stores, websites and mobile applications under three brands (Macy's, Bloomingdale's and Bluemercury) that sell a wide range of merchandise, including apparel and accessories (men's, women's and children's), cosmetics, home furnishings and other...

  • Page 59
    ... Macy's and other partners. Coalition partners currently include - American Express, AT&T, Direct Energy, Exxon Mobil, Hulu, Nationwide, and Rite Aid. Under the Bloomingdale's brand, the Company offers a tender neutral points-based program. Benefits also include free delivery and gift wrap services...

  • Page 60
    ...or market, approximated the cost of such inventories using the first-in, first-out (FIFO) retail inventory method. The application of the LIFO retail inventory method did not result in the recognition of any LIFO charges or credits affecting cost of sales for 2015, 2014 or 2013. The retail inventory...

  • Page 61
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Advertising Department store non-direct response advertising and promotional costs are expensed either as incurred or the first time the advertising occurs. Direct response advertising and promotional costs are deferred and expensed over the ...

  • Page 62
    ... years. Capitalized software is included in other assets on the Consolidated Balance Sheets. Gift Cards The Company only offers no-fee, non-expiring gift cards to its customers. At the time gift cards are sold, no revenue is recognized; rather, the Company records an accrued liability to customers...

  • Page 63
    ... CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Post Employment and Postretirement Obligations The Company, through its actuaries, utilizes assumptions when estimating the liabilities for pension and other employee benefit plans. These assumptions, where applicable, include the discount rates used...

  • Page 64
    ... defined benefit plan assets and obligations using the month-end that is closest to the entity's fiscal year-end and apply that practical expedient consistently from year to year. This guidance is effective for public business entities for years beginning after December 15, 2015. Earlier application...

  • Page 65
    ... 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 majority of the 2015 accrued severance costs, which are included in accounts payable and accrued liabilities on the Consolidated Balance Sheets...

  • Page 66
    ... other assets on the Consolidated Balance Sheets and amounted to $107 million at January 30, 2016. In connection with the sale of most of the Company's credit card accounts and related receivable balances to Citibank, the Company and Citibank entered into a long-term marketing and servicing alliance...

  • Page 67
    ... stores within the centers for periods of up to twenty years. Some of these agreements require that the stores be operated under a particular name. The Company leases a portion of the real estate and personal property used in its operations. Most leases require the Company to pay real estate taxes...

  • Page 68
    ... related to these guarantees are subject to certain defenses by the Company. The Company believes that the risk of significant loss from the guarantees of these lease obligations is remote. Rental expense consists of: 2015 2014 (millions) 2013 Real estate (excluding executory costs) Capitalized...

  • Page 69
    ... life of approximately six years). Customer relationship intangible assets relating to the acquisition of The May Department Stores Company are fully amortized as of January 30, 2016. Intangible amortization expense amounted to $23 million for 2015, $31 million for 2014 and $34 million for 2013...

  • Page 70
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) 6. Financing The Company's debt is as follows: January 30, January 31, 2016 2015 (millions) Short-term debt: 5.9% Senior notes due 2016...$ 7.45% Senior debentures due 2016 ...7.5% Senior debentures due 2015 ...Capital lease and current ...

  • Page 71
    ... 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 2017...$ 2018...2019...2020...2021...After 2021 ... 306 6 41 539 553 5,426 During 2015, 2014 and 2013, the Company repaid...

  • Page 72
    ...of credit outstanding at January 30, 2016 and January 31, 2015. 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 73
    ... of credit outstanding at January 30, 2016 and January 31, 2015, respectively. 7. Accounts Payable and Accrued Liabilities January 30, January 31, 2016 2015 (millions) Accounts payable...$ Gift cards and customer rewards ...Current portion of post employment and postretirement benefits ...Taxes...

  • Page 74
    ... which are covered by deposits and receivables included in current assets on the Consolidated Balance Sheets. 8. Taxes Income tax expense is as follows: 2015 Current Deferred Total Current 2014 Deferred (millions) Total Current 2013 Deferred Total Federal ...$ State and local...$ 536 72 608...

  • Page 75
    ... that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows: January 30, January 31, 2016 2015 (millions) Deferred tax assets Post employment and postretirement benefits ...$ Accrued liabilities accounted for on a cash basis for tax purposes...

  • Page 76
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) As of January 30, 2016 and January 31, 2015, the amount of unrecognized tax benefits, net of deferred tax assets, that, if recognized would affect the effective income tax rate, was $115 million and $112 million, respectively. The Company ...

  • Page 77
    ...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 78
    ... 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 30, 2016 and January 31, 2015 Other liabilities...

  • Page 79
    ... for the Pension Plan: 2015 2014 2013 Discount rate ...Expected long-term return on plan assets ...Rate of compensation increases ... 3.55% 7.00% 4.10% 4.50% 7.50% 4.10% 4.15% 7.50% 4.50% The Pension Plan's assumptions are evaluated annually and updated as necessary. The discount rate used to...

  • Page 80
    ... 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 Pension Plan are managed...

  • Page 81
    ...TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) The fair values of the Pension Plan assets as of January 30, 2016, excluding interest and dividend receivables and pending investment purchases and sales, by asset category are as follows: Fair Value Measurements Quoted Prices in Active Markets for...

  • Page 82
    ...TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) The fair values of the Pension Plan assets as of January 31, 2015, excluding interest and dividend receivables and pending investment purchases and sales, by asset category are as follows: Fair Value Measurements Quoted Prices in Active Markets for...

  • Page 83
    ... for any lag between the date of the financial reports and the Company's reporting date. Hedge fund investments seek to provide strong downside protection qualities and to produce long-term risk-adjusted returns with low volatility through active asset management among a select group of U.S. and non...

  • Page 84
    ...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 30, 2016 and January 31, 2015 Accounts payable and accrued liabilities ...$ Other...

  • Page 85
    ... benefit obligations for the supplementary retirement plan at January 30, 2016 and January 31, 2015: 2015 2014 Discount rate ... 4.23% 3.55% The following weighted average assumptions were used to determine net pension costs for the supplementary retirement plan: 2015 2014 2013 Discount rate...

  • Page 86
    ...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 30, 2016 and January 31, 2015 Accounts payable and accrued liabilities ...$ Other...

  • Page 87
    ... annually and updated as necessary. The discount rate used to determine the present value of the Company's accumulated postretirement benefit obligations is based on a yield curve constructed from a portfolio of high quality corporate debt securities with various maturities. Each year's expected...

  • Page 88
    ... 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 30, 2016 and January 31, 2015: 2015 2014 Health care cost trend rates assumed for next year ...Rates to...

  • Page 89
    ... to officers and key employees of the Company and its subsidiaries and to non-employee directors. There have been no grants of stock appreciation rights under the equity plans. Stock option grants have an exercise price at least equal to the market value of the underlying common stock on the date of...

  • Page 90
    ... certain senior executives and other employees of the Company and awards of time-based restricted stock units to the nonemployee members of the Company's board of directors. Stock Options The fair value of stock options granted during 2015, 2014 and 2013 and the weighted average assumptions used to...

  • Page 91
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Restricted Stock and Restricted Stock Units The weighted average grant date fair values of restricted stock units granted during 2015, 2014 and 2013 are as follows: 2015 2014 2013 Restricted stock units ...$ 62.61 $ 59.41 $ 42.54 The ...

  • Page 92
    ... 2016, $532 million of authorization remained unused. The Company may continue or, from time to time, suspend repurchases of its shares under its share repurchase program, depending on prevailing market conditions, alternative uses of capital and other factors. Common Stock The holders of the Common...

  • Page 93
    ... CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Changes in the Company's Common Stock issued and outstanding, including shares held by the Company's treasury, are as follows: Treasury Stock Common Stock Issued Deferred Compensation Plans Common Stock Outstanding Other (thousands) Total Balance...

  • Page 94
    ... 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 30, 2016 Fair Value Measurements January 31, 2015 Fair Value Measurements Total Quoted Prices in Active Markets...

  • Page 95
    ... common stock were outstanding at January 31, 2015, and restricted stock units relating to 0.7 million shares of common stock were outstanding at February 1, 2014, but were not included in the computation of diluted earnings per share attributable to Macy's, Inc. shareholders for 2015, 2014 and 2013...

  • Page 96
    ... consolidating financial statements, "Other Subsidiaries" includes all other direct subsidiaries of Parent, including Bluemercury, Inc., FDS Bank, West 34th Street Insurance Company and its subsidiary West 34th Street Insurance Company New York, Macy's Merchandising Corporation, Macy's Merchandising...

  • Page 97
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) MACY'S, INC. Condensed Consolidating Balance Sheet As of January 30, 2016 (millions) Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Parent Consolidated ASSETS: Current Assets: Cash and cash equivalents...Receivables......

  • Page 98
    ...) MACY'S, INC. Condensed Consolidating Statement of Comprehensive Income For 2015 (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
    ...Consolidated Cash flows from operating activities: Net income ...$ Impairments, store closing and other costs ...Equity in earnings of subsidiaries ...Dividends received from subsidiaries...Depreciation and amortization...(Increase) decrease in working capital...Other, net...Net cash provided (used...

  • Page 100
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) MACY'S, INC. Condensed Consolidating Balance Sheet As of January 31, 2015 (millions) Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Parent Consolidated ASSETS: Current Assets: Cash and cash equivalents...Receivables......

  • Page 101
    ...) 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 102
    ... (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 103
    ...) 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 104
    ... (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...

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    ... communities nationwide. Online Shopping By going to macys.com, bloomingdales.com and bluemercury.com, you can shop online and get detailed information on offers, events and activities associated with each brand. Macy's and Bloomingdale's customers can also review their credit accounts. Financials...

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    ...cer Allianz Global Investors Capital Annie Young-Scrivner Executive Vice President Starbucks Corporation Executive Management Team Terry J. Lundgren Chairman and Chief Executive Officer Jeffrey Gennette President William S. Allen Chief Human Resources Officer Timothy Baxter Chief Merchandising Of...

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    ... 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. Call: Macy's, Inc. Investor Relations Department 1-513-579-7028 Macy's, Inc. News & Information Request...

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    macysinc.com macys.com bloomingdales.com bluemercury.com