Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidating Financial Information

v3.19.2
Condensed Consolidating Financial Information
6 Months Ended
Aug. 03, 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 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 and 26 weeks ended August 3, 2019 and August 4, 2018, Condensed Consolidating Balance Sheets as of August 3, 2019, August 4, 2018 and February 2, 2019, and the related Condensed Consolidating Statements of Cash Flows for the 26 weeks ended August 3, 2019 and August 4, 2018 are presented on the following pages.
Condensed Consolidating Statement of Comprehensive Income
For the 13 Weeks Ended August 3, 2019
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
Net sales
$

 
$
2,219

 
$
4,416

 
$
(1,089
)
 
$
5,546

Credit card revenues (expense), net

 
(2
)
 
178

 

 
176

 
 
 
 
 
 
 
 
 
 
Cost of sales

 
(1,341
)
 
(3,143
)
 
1,089

 
(3,395
)
Selling, general and administrative expenses

 
(872
)
 
(1,305
)
 

 
(2,177
)
Gains on sale of real estate

 

 
7

 

 
7

Impairment and other costs

 

 
(2
)
 

 
(2
)
Operating income

 
4

 
151

 

 
155

Benefit plan income, net

 
3

 
5

 

 
8

Interest (expense) income, net:
 
 
 
 
 
 
 
 
 
External
4

 
(52
)
 
1

 

 
(47
)
Intercompany

 
(18
)
 
18

 

 

Equity in earnings (loss) of subsidiaries
82

 
(108
)
 

 
26

 

Income (loss) before income taxes
86

 
(171
)
 
175

 
26

 
116

Federal, state and local income
tax benefit (expense)

 
7

 
(37
)
 

 
(30
)
Net income (loss)
86

 
(164
)
 
138

 
26

 
86

Net loss attributable to noncontrolling interest

 

 

 

 

Net income (loss) attributable to
Macy's, Inc. shareholders
$
86

 
$
(164
)
 
$
138

 
$
26

 
$
86

Comprehensive income (loss)
$
91

 
$
(159
)
 
$
142

 
$
17

 
$
91

Comprehensive loss attributable to
noncontrolling interest

 

 

 

 

Comprehensive income (loss) attributable to
Macy's, Inc. shareholders
$
91

 
$
(159
)
 
$
142

 
$
17

 
$
91

Condensed Consolidating Statement of Comprehensive Income
For the 13 Weeks Ended August 4, 2018
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
Net sales
$

 
$
2,072

 
$
4,914

 
$
(1,414
)
 
$
5,572

Credit card revenues, net

 
3

 
183

 

 
186

 
 
 
 
 
 
 
 
 
 
Cost of sales

 
(1,271
)
 
(3,463
)
 
1,414

 
(3,320
)
Selling, general and administrative expenses

 
(812
)
 
(1,352
)
 

 
(2,164
)
Gains on sale of real estate

 
19

 
27

 

 
46

Impairment and other costs

 
2

 
(19
)
 

 
(17
)
Operating income

 
13

 
290

 

 
303

Benefit plan income, net

 
4

 
7

 

 
11

Settlement charges
(6
)
 
(16
)
 
(28
)
 

 
(50
)
Interest (expense) income, net:
 
 
 
 
 
 
 
 


External
5

 
(69
)
 
2

 

 
(62
)
Intercompany

 
(17
)
 
17

 

 

Losses on early retirement of debt

 
(5
)
 

 

 
(5
)
Equity in earnings of subsidiaries
167

 
8

 

 
(175
)
 

Income (loss) before income taxes
166

 
(82
)
 
288

 
(175
)
 
197

Federal, state and local income
tax benefit (expense)

 
30

 
(63
)
 

 
(33
)
Net income (loss)
166

 
(52
)
 
225

 
(175
)
 
164

Net loss attributable to noncontrolling interest

 

 
2

 

 
2

Net income (loss) attributable to
Macy's, Inc. shareholders
$
166

 
$
(52
)
 
$
227

 
$
(175
)
 
$
166

Comprehensive income (loss)
$
186

 
$
(35
)
 
$
236

 
$
(203
)
 
$
184

Comprehensive loss attributable to
noncontrolling interest

 

 
2

 

 
2

Comprehensive income (loss) attributable to
Macy's, Inc. shareholders
$
186

 
$
(35
)
 
$
238

 
$
(203
)
 
$
186










Condensed Consolidating Statement of Comprehensive Income
For the 26 Weeks Ended August 3, 2019
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
Net sales
$

 
$
4,373

 
$
9,184

 
$
(2,507
)
 
$
11,050

Credit card revenues (expense), net

 
(5
)
 
353

 

 
348

 
 
 
 
 
 
 
 
 
 
Cost of sales

 
(2,682
)
 
(6,623
)
 
2,507

 
(6,798
)
Selling, general and administrative expenses
1

 
(1,674
)
 
(2,614
)
 

 
(4,287
)
Gains on sale of real estate

 
24

 
25

 

 
49

Impairment and other costs

 

 
(3
)
 

 
(3
)
Operating income
1

 
36

 
322

 

 
359

Benefit plan income, net

 
6

 
9

 

 
15

Interest (expense) income, net:
 
 
 
 
 
 
 
 
 
External
9

 
(105
)
 
2

 

 
(94
)
Intercompany

 
(37
)
 
37

 

 

Equity in earnings (loss) of subsidiaries
214

 
(138
)
 

 
(76
)
 

Income (loss) before income taxes
224

 
(238
)
 
370

 
(76
)
 
280

Federal, state and local income
tax benefit (expense)
(1
)
 
31

 
(87
)
 

 
(57
)
Net income (loss)
223

 
(207
)
 
283

 
(76
)
 
223

Net loss attributable to noncontrolling interest

 

 

 

 

Net income (loss) attributable to
Macy's, Inc. shareholders
$
223

 
$
(207
)
 
$
283

 
$
(76
)
 
$
223

Comprehensive income (loss)
$
234

 
$
(197
)
 
$
291

 
$
(94
)
 
$
234

Comprehensive loss attributable to
noncontrolling interest

 

 

 

 

Comprehensive income (loss) attributable to
Macy's, Inc. shareholders
$
234

 
$
(197
)
 
$
291

 
$
(94
)
 
$
234












Condensed Consolidating Statement of Comprehensive Income
For the 26 Weeks Ended August 4, 2018
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
Net sales
$

 
$
4,081

 
$
10,277

 
$
(3,246
)
 
$
11,112

Credit card revenues (expense), net

 
(3
)
 
346

 

 
343

 
 
 
 
 
 
 
 
 
 
Cost of sales

 
(2,591
)
 
(7,356
)
 
3,246

 
(6,701
)
Selling, general and administrative expenses

 
(1,641
)
 
(2,606
)
 

 
(4,247
)
Gains on sale of real estate

 
42

 
28

 

 
70

Impairment and other costs

 
2

 
(38
)
 

 
(36
)
Operating income (loss)

 
(110
)
 
651

 

 
541

Benefit plan income, net

 
8

 
14

 

 
22

Settlement charges
(6
)
 
(16
)
 
(28
)
 

 
(50
)
Interest (expense) income, net:
 
 
 
 
 
 
 
 
 
External
9

 
(139
)
 
2

 

 
(128
)
Intercompany

 
(36
)
 
36

 

 

Losses on early retirement of debt

 
(5
)
 

 

 
(5
)
Equity in earnings of subsidiaries
304

 
109

 

 
(413
)
 

Income (loss) before income taxes
307

 
(189
)
 
675

 
(413
)
 
380

Federal, state and local income
tax benefit (expense)
(1
)
 
67

 
(150
)
 

 
(84
)
Net income (loss)
306

 
(122
)
 
525

 
(413
)
 
296

Net loss attributable to noncontrolling interest

 

 
10

 

 
10

Net income (loss) attributable to
Macy's, Inc. shareholders
$
306

 
$
(122
)
 
$
535

 
$
(413
)
 
$
306

Comprehensive income (loss)
$
333

 
$
(99
)
 
$
540

 
$
(451
)
 
$
323

Comprehensive loss attributable to
noncontrolling interest

 

 
10

 

 
10

Comprehensive income (loss) attributable to
Macy's, Inc. shareholders
$
333

 
$
(99
)
 
$
550

 
$
(451
)
 
$
333



Condensed Consolidating Balance Sheet
As of August 3, 2019
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
ASSETS:
 
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
320

 
$
100

 
$
254

 
$

 
$
674

Receivables
1

 
44

 
195

 

 
240

Merchandise inventories

 
2,138

 
2,891

 

 
5,029

Prepaid expenses and other current assets

 
139

 
464

 

 
603

Income taxes
39

 

 

 
(39
)
 

Total Current Assets
360

 
2,421

 
3,804

 
(39
)
 
6,546

Property and Equipment – net

 
3,162

 
3,321

 

 
6,483

Right of Use Assets

 
660

 
1,976

 

 
2,636

Goodwill

 
3,326

 
582

 

 
3,908

Other Intangible Assets – net

 
4

 
436

 

 
440

Other Assets

 
39

 
689

 

 
728

Deferred Income Taxes
9

 

 

 
(9
)
 

Intercompany Receivable
2,564

 

 
643

 
(3,207
)
 

Investment in Subsidiaries
3,484

 
2,957

 

 
(6,441
)
 

Total Assets
$
6,417

 
$
12,569

 
$
11,451

 
$
(9,696
)
 
$
20,741

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

 
$
6

 
$

 
$

 
$
6

Merchandise accounts payable

 
717

 
957

 

 
1,674

Accounts payable and accrued liabilities
74

 
754

 
1,911

 

 
2,739

Income taxes

 
47

 
12

 
(39
)
 
20

Total Current Liabilities
74

 
1,524

 
2,880

 
(39
)
 
4,439

Long-Term Debt

 
4,680

 

 

 
4,680

Long-Term Lease Liabilities

 
594

 
2,242

 

 
2,836

Intercompany Payable

 
3,207

 

 
(3,207
)
 

Deferred Income Taxes

 
643

 
572

 
(9
)
 
1,206

Other Liabilities
28

 
364

 
873

 

 
1,265

Shareholders' Equity:
 
 
 
 
 
 
 
 
 
Macy's, Inc.
6,315

 
1,557

 
4,884

 
(6,441
)
 
6,315

Noncontrolling Interest

 

 

 

 

Total Shareholders' Equity
6,315

 
1,557

 
4,884

 
(6,441
)
 
6,315

Total Liabilities and Shareholders' Equity
$
6,417

 
$
12,569

 
$
11,451

 
$
(9,696
)
 
$
20,741




Condensed Consolidating Balance Sheet
As of August 4, 2018
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
ASSETS:
 
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
744

 
$
66

 
$
258

 
$

 
$
1,068

Receivables
1

 
43

 
217

 

 
261

Merchandise inventories

 
2,121

 
2,835

 

 
4,956

Prepaid expenses and other current assets

 
135

 
445

 

 
580

Income taxes
46

 

 

 
(46
)
 

Total Current Assets
791

 
2,365

 
3,755

 
(46
)
 
6,865

Property and Equipment – net

 
3,253

 
3,294

 

 
6,547

Goodwill

 
3,326

 
582

 

 
3,908

Other Intangible Assets – net

 
41

 
442

 

 
483

Other Assets

 
89

 
776

 

 
865

Deferred Income Taxes
10

 

 

 
(10
)
 

Intercompany Receivable
1,347

 

 
1,038

 
(2,385
)
 

Investment in Subsidiaries
3,876

 
3,140

 

 
(7,016
)
 

Total Assets
$
6,024

 
$
12,214

 
$
9,887

 
$
(9,457
)
 
$
18,668

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

 
$
42

 
$
21

 
$

 
$
63

Merchandise accounts payable

 
788

 
1,007

 

 
1,795

Accounts payable and accrued liabilities
84

 
777

 
1,747

 

 
2,608

Income taxes

 
33

 
28

 
(46
)
 
15

Total Current Liabilities
84

 
1,640

 
2,803

 
(46
)
 
4,481

Long-Term Debt

 
5,457

 
16

 

 
5,473

Intercompany Payable

 
2,385

 

 
(2,385
)
 

Deferred Income Taxes

 
588

 
616

 
(10
)
 
1,194

Other Liabilities
24

 
441

 
1,161

 

 
1,626

Shareholders' Equity:
 
 
 
 
 
 
 
 
 
Macy's, Inc.
5,916

 
1,703

 
5,313

 
(7,016
)
 
5,916

Noncontrolling Interest

 

 
(22
)
 

 
(22
)
Total Shareholders' Equity
5,916

 
1,703

 
5,291

 
(7,016
)
 
5,894

Total Liabilities and Shareholders' Equity
$
6,024

 
$
12,214

 
$
9,887

 
$
(9,457
)
 
$
18,668







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 26 Weeks Ended August 3, 2019
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
Net income (loss)
$
223

 
$
(207
)
 
$
283

 
$
(76
)
 
$
223

Impairment and other costs

 

 
3

 

 
3

Equity in loss (earnings) of subsidiaries
(214
)
 
138

 

 
76

 

Dividends received from subsidiaries
606

 

 

 
(606
)
 

Depreciation and amortization

 
169

 
303

 

 
472

Gains on sale of real estate

 
(24
)
 
(25
)
 

 
(49
)
Changes in assets, liabilities and other items not separately identified
(52
)
 
47

 
(294
)
 

 
(299
)
Net cash provided by operating activities
563

 
123

 
270

 
(606
)
 
350

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

 
(97
)
 
(345
)
 

 
(442
)
Other, net

 
(11
)
 
(1
)
 

 
(12
)
Net cash used by investing activities

 
(108
)
 
(346
)
 

 
(454
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Debt repaid, including debt issuance costs

 
(42
)
 

 

 
(42
)
Dividends paid
(233
)
 

 
(606
)
 
606

 
(233
)
Issuance of common stock
6

 

 

 

 
6

Intercompany activity, net
(813
)
 
93

 
720

 

 

Other, net
(92
)
 
(21
)
 
(15
)
 

 
(128
)
Net cash provided (used) by financing activities
(1,132
)
 
30

 
99

 
606

 
(397
)
Net increase (decrease) in cash, cash equivalents and restricted cash
(569
)
 
45

 
23

 

 
(501
)
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
$
320

 
$
109

 
$
318

 
$

 
$
747









Condensed Consolidating Statement of Cash Flows
For the 26 Weeks Ended August 4, 2018
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
Net income (loss)
$
306

 
$
(122
)
 
$
525

 
$
(413
)
 
$
296

Impairment and other costs

 
(2
)
 
38

 

 
36

Settlement charges
6

 
16

 
28

 

 
50

Equity in earnings of subsidiaries
(304
)
 
(109
)
 

 
413

 

Dividends received from subsidiaries
492

 

 

 
(492
)
 

Depreciation and amortization

 
165

 
305

 

 
470

Gains on sale of real estate

 
(42
)
 
(28
)
 

 
(70
)
Changes in assets, liabilities and other items not separately identified
(154
)
 
298

 
(381
)
 
(1
)
 
(238
)
Net cash provided by operating activities
346

 
204

 
487

 
(493
)
 
544

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

 
(49
)
 
(271
)
 

 
(320
)
Other, net

 
(15
)
 
(28
)
 
51

 
8

Net cash used by investing activities

 
(64
)
 
(299
)
 
51

 
(312
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Debt repaid

 
(306
)
 
(1
)
 
(50
)
 
(357
)
Dividends paid
(232
)
 

 
(492
)
 
492

 
(232
)
Issuance of common stock
38

 

 

 

 
38

Proceeds from noncontrolling interest

 

 
5

 

 
5

Intercompany activity, net
(441
)
 
162

 
279

 

 

Other, net
(76
)
 
(9
)
 
(5
)
 

 
(90
)
Net cash used by financing activities
(711
)
 
(153
)
 
(214
)
 
442

 
(636
)
Net decrease in cash, cash equivalents and restricted cash
(365
)
 
(13
)
 
(26
)
 

 
(404
)
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
$
744

 
$
66

 
$
299

 
$

 
$
1,109