Macy's 2015 Annual Report Download - page 73

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
F-24
Commercial Paper
The Company is a party to a $1,500 million unsecured commercial 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 bank credit agreement described above. The issuance of commercial paper will have the
effect, while such commercial paper is outstanding, of reducing the Company’s borrowing capacity under the bank credit
agreement by an amount equal to the principal amount of such commercial paper. During 2015, the Company utilized
seasonal borrowings available under this commercial paper program. The amount of borrowings under the commercial
paper program increased to its highest level for 2015 of approximately $1,100 million during the fourth quarter. As of
January 30, 2016, there were no remaining borrowings outstanding under the commercial paper program. The Company
had no commercial paper outstanding under its commercial paper program throughout 2014.
This program, which is an obligation of a 100%-owned subsidiary of Macy’s, Inc., is not secured. However, Parent
has fully and unconditionally guaranteed the obligations.
Senior Notes and Debentures
The senior notes and the senior debentures are unsecured obligations of a 100%-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 30, 2016 and January 31, 2015, the Company had dedicated $37 million of cash, included in prepaid
expenses and other current assets, which is used to collateralize the Company’s issuances of standby letters of credit. There
were $21 million and $29 million of other standby letters of credit outstanding at January 30, 2016 and January 31, 2015,
respectively.
7. Accounts Payable and Accrued Liabilities
January 30,
2016
January 31,
2015
(millions)
Accounts payable................................................................................................................ $ 814 $ 833
Gift cards and customer rewards ........................................................................................ 920 907
Current portion of post employment and postretirement benefits ...................................... 257 190
Taxes other than income taxes............................................................................................ 184 187
Lease related liabilities ....................................................................................................... 165 155
Accrued wages and vacation .............................................................................................. 153 193
Current portion of workers’ compensation and general liability reserves.......................... 127 128
Severance and relocation .................................................................................................... 123 46
Allowance for future sales returns...................................................................................... 112 93
Accrued interest .................................................................................................................. 88 93
Other ................................................................................................................................... 390 284
$ 3,333 $ 3,109
Adjustments to the allowance for future sales returns, which amounted to charges of $19 million, $8 million and $4
million for 2015, 2014 and 2013, respectively, are reflected in cost of sales.