Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidating Financial Information

v3.19.1
Condensed Consolidating Financial Information
3 Months Ended
May 04, 2019
Condensed Financial Information Disclosure [Abstract]  
Condensed Consolidating Financial Information
    Condensed Consolidating Financial Information
Certain debt obligations of the Company, which constitute debt obligations of Macy's Retail Holdings, Inc. ("Subsidiary Issuer"), a 100%-owned subsidiary of Macy's, Inc. ("Parent"), 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 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 Statements of Comprehensive Income for the 13 weeks ended May 4, 2019 and May 5, 2018, Condensed Consolidating Balance Sheets as of May 4, 2019, May 5, 2018 and February 2, 2019, and the related Condensed Consolidating Statements of Cash Flows for the 13 weeks ended May 4, 2019 and May 5, 2018 are presented on the following pages.






Condensed Consolidating Statement of Comprehensive Income
For the 13 Weeks Ended May 4, 2019
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
Net sales
$

 
$
2,154

 
$
4,768

 
$
(1,418
)
 
$
5,504

Credit card revenues (expense), net

 
(2
)
 
174

 

 
172

 
 
 
 
 
 
 
 
 
 
Cost of sales

 
(1,341
)
 
(3,480
)
 
1,418

 
(3,403
)
Selling, general and administrative expenses

 
(803
)
 
(1,309
)
 

 
(2,112
)
Gains on sale of real estate

 
24

 
19

 

 
43

Impairment and other costs

 

 
(1
)
 

 
(1
)
Operating income

 
32

 
171

 

 
203

Benefit plan income, net

 
3

 
4

 

 
7

Interest (expense) income, net:
 
 
 
 
 
 
 
 
 
External
5

 
(53
)
 
1

 

 
(47
)
Intercompany

 
(19
)
 
19

 

 

Equity in earnings (loss) of subsidiaries
132

 
(30
)
 

 
(102
)
 

Income (loss) before income taxes
137

 
(67
)
 
195

 
(102
)
 
163

Federal, state and local income
tax benefit (expense)
(1
)
 
24

 
(50
)
 

 
(27
)
Net income (loss)
136

 
(43
)
 
145

 
(102
)
 
136

Net loss attributable to noncontrolling interest

 

 

 

 

Net income (loss) attributable to
Macy's, Inc. shareholders
$
136

 
$
(43
)
 
$
145

 
$
(102
)
 
$
136

Comprehensive income (loss)
$
142

 
$
(38
)
 
$
149

 
$
(111
)
 
$
142

Comprehensive loss attributable to
noncontrolling interest

 

 

 

 

Comprehensive income (loss) attributable to
Macy's, Inc. shareholders
$
142

 
$
(38
)
 
$
149

 
$
(111
)
 
$
142












Condensed Consolidating Statement of Comprehensive Income
For the 13 Weeks Ended May 5, 2018
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
Net sales
$

 
$
2,008

 
$
5,363

 
$
(1,830
)
 
$
5,541

Credit card revenues (expense), net

 
(6
)
 
163

 

 
157

 
 
 
 
 
 
 
 
 
 
Cost of sales

 
(1,320
)
 
(3,892
)
 
1,830

 
(3,382
)
Selling, general and administrative expenses

 
(828
)
 
(1,255
)
 

 
(2,083
)
Gains on sale of real estate

 
23

 
1

 

 
24

Impairment and other costs

 

 
(19
)
 

 
(19
)
Operating income (loss)

 
(123
)
 
361

 

 
238

Benefit plan income, net

 
4

 
7

 

 
11

Interest (expense) income, net:
 
 
 
 
 
 
 
 
 
External
4

 
(71
)
 
1

 

 
(66
)
Intercompany

 
(18
)
 
18

 

 

Equity in earnings of subsidiaries
136

 
102

 

 
(238
)
 

Income (loss) before income taxes
140

 
(106
)
 
387

 
(238
)
 
183

Federal, state and local income
tax benefit (expense)
(1
)
 
37

 
(88
)
 

 
(52
)
Net income (loss)
139

 
(69
)
 
299

 
(238
)
 
131

Net loss attributable to noncontrolling interest

 

 
8

 

 
8

Net income (loss) attributable to
Macy's, Inc. shareholders
$
139

 
$
(69
)
 
$
307

 
$
(238
)
 
$
139

Comprehensive income (loss)
$
146

 
$
(63
)
 
$
303

 
$
(248
)
 
$
138

Comprehensive loss attributable to
noncontrolling interest

 

 
8

 

 
8

Comprehensive income (loss) attributable to
Macy's, Inc. shareholders
$
146

 
$
(63
)
 
$
311

 
$
(248
)
 
$
146



Condensed Consolidating Balance Sheet
As of May 4, 2019
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
ASSETS:
 
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
293

 
$
151

 
$
293

 
$

 
$
737

Receivables

 
40

 
197

 

 
237

Merchandise inventories

 
2,369

 
3,129

 

 
5,498

Prepaid expenses and other current assets

 
163

 
470

 

 
633

Total Current Assets
293

 
2,723

 
4,089

 

 
7,105

Property and Equipment – net

 
3,202

 
3,297

 

 
6,499

Right of Use Assets

 
677

 
1,954

 

 
2,631

Goodwill

 
3,326

 
582

 

 
3,908

Other Intangible Assets – net

 
5

 
436

 

 
441

Other Assets

 
28

 
684

 

 
712

Deferred Income Taxes
6

 

 

 
(6
)
 

Intercompany Receivable
2,436

 

 
886

 
(3,322
)
 

Investment in Subsidiaries
3,776

 
3,061

 

 
(6,837
)
 

Total Assets
$
6,511

 
$
13,022

 
$
11,928

 
$
(10,165
)
 
$
21,296

LIABILITIES AND SHAREHOLDERS’ EQUITY:
 
 
 
 
 
 
 
 
 
Current Liabilities:
 
 
 
 
 
 
 
 
 
Short-term debt
$

 
$
41

 
$

 
$

 
$
41

Merchandise accounts payable

 
845

 
1,105

 

 
1,950

Accounts payable and accrued liabilities
73

 
786

 
1,987

 

 
2,846

Income taxes
87

 
61

 
34

 

 
182

Total Current Liabilities
160

 
1,733

 
3,126

 

 
5,019

Long-Term Debt

 
4,680

 

 

 
4,680

Long-Term Lease Liabilities

 
607

 
2,216

 

 
2,823

Intercompany Payable

 
3,322

 

 
(3,322
)
 

Deferred Income Taxes

 
626

 
573

 
(6
)
 
1,193

Other Liabilities
28

 
341

 
889

 

 
1,258

Shareholders' Equity:
 
 
 
 
 
 
 
 
 
Macy's, Inc.
6,323

 
1,713

 
5,124

 
(6,837
)
 
6,323

Noncontrolling Interest

 

 

 

 

Total Shareholders' Equity
6,323

 
1,713

 
5,124

 
(6,837
)
 
6,323

Total Liabilities and Shareholders' Equity
$
6,511

 
$
13,022

 
$
11,928

 
$
(10,165
)
 
$
21,296





Condensed Consolidating Balance Sheet
As of May 5, 2018
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
ASSETS:
 
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
1,070

 
$
79

 
$
382

 
$

 
$
1,531

Receivables

 
48

 
202

 

 
250

Merchandise inventories

 
2,283

 
3,008

 

 
5,291

Prepaid expenses and other current assets

 
150

 
488

 

 
638

Total Current Assets
1,070

 
2,560

 
4,080

 

 
7,710

Property and Equipment – net

 
3,298

 
3,277

 

 
6,575

Goodwill

 
3,326

 
582

 

 
3,908

Other Intangible Assets – net

 
43

 
443

 

 
486

Other Assets
1

 
96

 
792

 

 
889

Deferred Income Taxes
5

 

 

 
(5
)
 

Intercompany Receivable
1,156

 

 
2,113

 
(3,269
)
 

Investment in Subsidiaries
3,975

 
4,232

 

 
(8,207
)
 

Total Assets
$
6,207

 
$
13,555

 
$
11,287

 
$
(11,481
)
 
$
19,568

LIABILITIES AND SHAREHOLDERS’ EQUITY:
 
 
 
 
 
 
 
 
 
Current Liabilities:
 
 
 
 
 
 
 
 
 
Short-term debt
$

 
$
6

 
$
19

 
$

 
$
25

Merchandise accounts payable

 
896

 
1,149

 

 
2,045

Accounts payable and accrued liabilities
109

 
784

 
1,802

 

 
2,695

Income taxes
253

 
35

 
24

 

 
312

Total Current Liabilities
362

 
1,721

 
2,994

 

 
5,077

Long-Term Debt

 
5,841

 
16

 

 
5,857

Intercompany Payable

 
3,269

 

 
(3,269
)
 

Deferred Income Taxes

 
570

 
604

 
(5
)
 
1,169

Other Liabilities
24

 
416

 
1,224

 

 
1,664

Shareholders' Equity:
 
 
 
 
 
 
 
 
 
Macy's, Inc.
5,821

 
1,738

 
6,469

 
(8,207
)
 
5,821

Noncontrolling Interest

 

 
(20
)
 

 
(20
)
Total Shareholders' Equity
5,821

 
1,738

 
6,449

 
(8,207
)
 
5,801

Total Liabilities and Shareholders' Equity
$
6,207

 
$
13,555

 
$
11,287

 
$
(11,481
)
 
$
19,568







Condensed Consolidating Balance Sheet
As of February 2, 2019
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
ASSETS:
 
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
889

 
$
59

 
$
214

 
$

 
$
1,162

Receivables

 
68

 
332

 

 
400

Merchandise inventories

 
2,342

 
2,921

 

 
5,263

Prepaid expenses and other current assets

 
143

 
477

 

 
620

Total Current Assets
889

 
2,612

 
3,944

 

 
7,445

Property and Equipment – net

 
3,287

 
3,350

 

 
6,637

Goodwill

 
3,326

 
582

 

 
3,908

Other Intangible Assets – net

 
38

 
440

 

 
478

Other Assets

 
41

 
685

 

 
726

Deferred Income Taxes
12

 

 

 
(12
)
 

Intercompany Receivable
1,713

 

 
1,390

 
(3,103
)
 

Investment in Subsidiaries
4,030

 
3,119

 

 
(7,149
)
 

Total Assets
$
6,644

 
$
12,423

 
$
10,391

 
$
(10,264
)
 
$
19,194

LIABILITIES AND SHAREHOLDERS’ EQUITY:
 
 
 
 
 
 
 
 
 
Current Liabilities:
 
 
 
 
 
 
 
 
 
Short-term debt
$

 
$
42

 
$
1

 
$

 
$
43

Merchandise accounts payable

 
713

 
942

 

 
1,655

Accounts payable and accrued liabilities
170

 
950

 
2,246

 

 
3,366

Income taxes
14

 
52

 
102

 

 
168

Total Current Liabilities
184

 
1,757

 
3,291

 

 
5,232

Long-Term Debt

 
4,692

 
16

 

 
4,708

Intercompany Payable

 
3,103

 

 
(3,103
)
 

Deferred Income Taxes

 
679

 
571

 
(12
)
 
1,238

Other Liabilities
24

 
406

 
1,150

 

 
1,580

Shareholders' Equity:
 
 
 
 
 
 
 
 
 
Macy's, Inc.
6,436

 
1,786

 
5,363

 
(7,149
)
 
6,436

Noncontrolling Interest

 

 

 

 

Total Shareholders' Equity
6,436

 
1,786

 
5,363

 
(7,149
)
 
6,436

Total Liabilities and Shareholders' Equity
$
6,644

 
$
12,423

 
$
10,391

 
$
(10,264
)
 
$
19,194




Condensed Consolidating Statement of Cash Flows
For the 13 Weeks Ended May 4, 2019
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
Net income (loss)
$
136

 
$
(43
)
 
$
145

 
$
(102
)
 
$
136

Equity in loss (earnings) of subsidiaries
(132
)
 
30

 

 
102

 

Impairment and other costs

 

 
1

 

 
1

Dividends received from subsidiaries
225

 

 

 
(225
)
 

Depreciation and amortization

 
85

 
151

 

 
236

Gains on sale of real estate

 
(24
)
 
(19
)
 

 
(43
)
Changes in assets, liabilities and other items not separately identified
78

 
(118
)
 
(328
)
 

 
(368
)
Net cash provided (used) by operating activities
307

 
(70
)
 
(50
)
 
(225
)
 
(38
)
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Purchase of property and equipment and capitalized software, net of dispositions

 
(52
)
 
(178
)
 

 
(230
)
Other, net

 

 
(7
)
 

 
(7
)
Net cash used by investing activities

 
(52
)
 
(185
)
 

 
(237
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Debt repaid

 
(3
)
 

 

 
(3
)
Dividends paid
(116
)
 

 
(225
)
 
225

 
(116
)
Issuance of common stock
6

 

 

 

 
6

Intercompany activity, net
(700
)
 
214

 
486

 

 

Other, net
(93
)
 
28

 
20

 

 
(45
)
Net cash provided (used) by financing activities
(903
)
 
239

 
281

 
225

 
(158
)
Net increase (decrease) in cash, cash equivalents and restricted cash
(596
)
 
117

 
46

 

 
(433
)
Cash, cash equivalents and restricted cash at beginning of period
889

 
64

 
295

 

 
1,248

Cash, cash equivalents and restricted cash at end of period
$
293

 
$
181

 
$
341

 
$

 
$
815









Condensed Consolidating Statement of Cash Flows
For the 13 Weeks Ended May 5, 2018
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
Net income (loss)
$
139

 
$
(69
)
 
$
299

 
$
(238
)
 
$
131

Equity in earnings of subsidiaries
(136
)
 
(102
)
 

 
238

 

Impairment and other costs

 

 
19

 

 
19

Dividends received from subsidiaries
200

 

 

 
(200
)
 

Depreciation and amortization

 
82

 
153

 

 
235

Gains on sale of real estate

 
(23
)
 
(1
)
 

 
(24
)
Changes in assets, liabilities and other items not separately identified
150

 
175

 
(364
)
 

 
(39
)
Net cash provided by operating activities
353

 
63

 
106

 
(200
)
 
322

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Purchase of property and equipment and capitalized software, net of dispositions

 
(50
)
 
(117
)
 

 
(167
)
Other, net

 
(10
)
 
21

 

 
11

Net cash used by investing activities

 
(60
)
 
(96
)
 

 
(156
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Debt repaid

 
(3
)
 

 

 
(3
)
Dividends paid
(116
)
 

 
(200
)
 
200

 
(116
)
Issuance of common stock
28

 

 

 

 
28

Proceeds from noncontrolling interest

 

 
2

 

 
2

Intercompany activity, net
(254
)
 
(10
)
 
264

 

 

Other, net
(50
)
 
23

 
17

 

 
(10
)
Net cash provided (used) by financing activities
(392
)
 
10

 
83

 
200

 
(99
)
Net increase (decrease) in cash, cash equivalents and restricted cash
(39
)
 
13

 
93

 

 
67

Cash, cash equivalents and restricted cash at beginning of period
1,109

 
79

 
325

 

 
1,513

Cash, cash equivalents and restricted cash at end of period
$
1,070

 
$
92

 
$
418

 
$

 
$
1,580