Macy's 2015 Annual Report Download - page 15

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10
Item 2. Properties.
The properties of the Company consist primarily of stores and related facilities, including a logistics network. The
Company also owns or leases other properties, including corporate office space in Cincinnati and New York and other
facilities at which centralized operational support functions are conducted. As of January 30, 2016, the operations of the
Company included 870 stores in 45 states, the District of Columbia, Puerto Rico and Guam, comprising a total of
approximately 142 million square feet. Of such stores, 426 were owned, 318 were leased, 122 stores were operated under
arrangements where the Company owned the building and leased the land and four stores were comprised of partly owned
and partly leased buildings. All owned properties are held free and clear of mortgages. Pursuant to various shopping center
agreements, the Company is obligated to operate certain stores for periods of up to 20 years. Some of these agreements
require that the stores be operated under a particular name. Most leases require the Company to pay real estate taxes,
maintenance and other costs; some also require additional payments based on percentages of sales and some contain
purchase options. Certain of the Company’s real estate leases have terms that extend for a significant number of years and
provide for rental rates that increase or decrease over time.
Additional information about the Company’s stores as of January 30, 2016 is as follows:
Geographic Region Total Owned Leased
Subject to
a Ground
Lease
Partly
Owned
and Partly
Leased
North Central................................................................. 163 102 41 20 —
Northeast ....................................................................... 254 98 126 30 —
Northwest ...................................................................... 137 47 64 23 3
South ............................................................................. 188 128 34 26 —
Southwest ...................................................................... 128 51 53 23 1
870 426 318 122 4
The five geographic regions detailed in the foregoing table are based on the Company’s Macy’s-branded operational
structure. The Company’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 .................................................. 823 840 841
Stores opened......................................................................................... 26 5 6
Acquisition of Bluemercury stores........................................................ 62 — —
Stores closed or consolidated into existing centers ............................... (41)(22)(7)
Store count at end of fiscal year ............................................................ 870 823 840