Macy's 2015 Annual Report Download - page 96

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
F-47
15. Quarterly Results (unaudited)
Unaudited quarterly results for the last two years were as follows:
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
(millions, except per share data)
2015:
Net sales................................................................. $ 6,232 $ 6,104 $ 5,874 $ 8,869
Cost of sales........................................................... (3,800)(3,610)(3,537)(5,549)
Gross margin.......................................................... 2,432 2,494 2,337 3,320
Selling, general and administrative expenses........ (2,023)(2,058)(1,968)(2,207)
Impairments, store closing and other costs............ — — (111)(177)
Net income attributable to Macy's, Inc.
shareholders ....................................................... 193 217 118 544
Basic earnings per share attributable to
Macy's, Inc. shareholders .................................. .57 .65 .36 1.74
Diluted earnings per share attributable to
Macy's, Inc. shareholders .................................. .56 .64 .36 1.73
2014:
Net sales................................................................. $ 6,279 $ 6,267 $ 6,195 $ 9,364
Cost of sales........................................................... (3,836)(3,672)(3,766)(5,589)
Gross margin.......................................................... 2,443 2,595 2,429 3,775
Selling, general and administrative expenses........ (2,000)(2,024)(2,007)(2,324)
Impairments, store closing and other costs............ ———(87)
Net income attributable to Macy's, Inc.
shareholders ....................................................... 224 292 217 793
Basic earnings per share attributable to
Macy's, Inc. shareholders .................................. .61 .81 .62 2.30
Diluted earnings per share attributable to
Macy's, Inc. shareholders .................................. .60 .80 .61 2.26
16. Condensed Consolidating Financial Information
Certain debt obligations of the Company described in Note 6, which constitute debt obligations of Parent’s 100%-
owned subsidiary, Macy’s Retail Holdings, Inc. (“Subsidiary Issuer”) are fully and unconditionally guaranteed by Parent.
In the following condensed 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 Group, Inc. and its subsidiaries
Macy's Merchandising Group (Hong Kong) Limited, Macy's Merchandising Group Procurement, LLC, Macy’s
Merchandising Group International, LLC, Macy's Merchandising Group International (Hong Kong) Limited, and its
majority-owned subsidiary Macy's China Limited. “Subsidiary Issuer” includes operating divisions and non-guarantor
subsidiaries of the Subsidiary Issuer on an equity basis. The assets and liabilities and results of operations of the non-
guarantor subsidiaries of the Subsidiary Issuer are also reflected in “Other Subsidiaries.”
Condensed Consolidating Balance Sheets as of January 30, 2016 and January 31, 2015, the related Condensed
Consolidating Statements of Comprehensive Income for 2015, 2014 and 2013, and the related Condensed Consolidating
Statements of Cash Flows for 2015, 2014, and 2013 are presented on the following pages.