Annual report pursuant to Section 13 and 15(d)

Condensed Consolidating Financial Information (Tables)

v3.20.1
Condensed Consolidating Financial Information (Tables)
12 Months Ended
Feb. 01, 2020
Condensed Financial Information Disclosure [Abstract]  
Condensed Consolidating Statement of Comprehensive Income
MACY’S, INC.
Condensed Consolidating Statement of Comprehensive Income
For 2019
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
Net sales
$

 
$
9,477

 
$
20,831

 
$
(5,748
)
 
$
24,560

Credit card revenues (expense), net

 
(7
)
 
778

 

 
771

 
 
 
 
 
 
 
 
 
 
Cost of sales

 
(5,834
)
 
(15,085
)
 
5,748

 
(15,171
)
Selling, general and administrative expenses
2

 
(3,490
)
 
(5,510
)
 

 
(8,998
)
Gains on sale of real estate

 
37

 
125

 

 
162

Restructuring, impairment, store closing and other costs

 
(108
)
 
(246
)
 

 
(354
)
Operating income
2

 
75

 
893

 

 
970

Benefit plan income, net

 
12

 
19

 

 
31

Settlement charges

 
(22
)
 
(36
)
 

 
(58
)
Interest (expense) income, net:
 
 
 
 
 
 
 
 
 
External
15

 
(204
)
 
4

 

 
(185
)
Intercompany

 
(72
)
 
72

 

 

Losses on early retirement of debt

 
(30
)
 

 

 
(30
)
Equity in earnings (loss) of subsidiaries
547

 
(266
)
 

 
(281
)
 

Income (loss) before income taxes
564

 
(507
)
 
952

 
(281
)
 
728

Federal, state and local income
tax benefit (expense)

 
33

 
(197
)
 

 
(164
)
Net income (loss)
564

 
(474
)
 
755

 
(281
)
 
564

Net loss attributable to noncontrolling interest

 

 

 

 

Net income attributable to
Macy's, Inc. shareholders
$
564

 
$
(474
)
 
$
755

 
$
(281
)
 
$
564

Comprehensive income (loss)
$
524

 
$
(512
)
 
$
731

 
$
(219
)
 
$
524

Comprehensive loss attributable to
noncontrolling interest

 

 

 

 

Comprehensive income (loss) attributable to
Macy's, Inc. shareholders
$
524

 
$
(512
)
 
$
731

 
$
(219
)
 
$
524


MACY’S, INC.
Condensed Consolidating Statement of Comprehensive Income
For 2018
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
Net sales
$

 
$
9,051

 
$
23,720

 
$
(7,800
)
 
$
24,971

Credit card revenues (expense), net

 
(3
)
 
771

 

 
768

 
 
 
 
 
 
 
 
 
 
Cost of sales

 
(5,786
)
 
(17,229
)
 
7,800

 
(15,215
)
Selling, general and administrative expenses

 
(3,509
)
 
(5,530
)
 

 
(9,039
)
Gains on sale of real estate

 
141

 
248

 

 
389

Restructuring, impairment, store closing and other costs

 
(33
)
 
(103
)
 

 
(136
)
Operating income (loss)

 
(139
)
 
1,877

 

 
1,738

Benefit plan income, net

 
15

 
24

 

 
39

Settlement charges
(5
)
 
(30
)
 
(53
)
 

 
(88
)
Interest (expense) income, net:
 
 
 
 
 
 
 
 
 
External
20

 
(260
)
 
4

 

 
(236
)
Intercompany

 
(72
)
 
72

 

 

Losses on early retirement of debt

 
(33
)
 

 

 
(33
)
Equity in earnings of subsidiaries
1,104

 
345

 

 
(1,449
)
 

Income (loss) before income taxes
1,119

 
(174
)
 
1,924

 
(1,449
)
 
1,420

Federal, state and local income
tax benefit (expense)
(11
)
 
219

 
(530
)
 

 
(322
)
Net income
1,108

 
45

 
1,394

 
(1,449
)
 
1,098

Net loss attributable to noncontrolling interest

 

 
10

 

 
10

Net income attributable to
Macy's, Inc. shareholders
$
1,108

 
$
45

 
$
1,404

 
$
(1,449
)
 
$
1,108

Comprehensive income (loss)
$
1,045

 
$
(15
)
 
$
1,353

 
$
(1,348
)
 
$
1,035

Comprehensive loss attributable to
noncontrolling interest

 

 
10

 

 
10

Comprehensive income (loss) attributable to
Macy's, Inc. shareholders
$
1,045

 
$
(15
)
 
$
1,363

 
$
(1,348
)
 
$
1,045


MACY’S, INC.
Condensed Consolidating Statement of Comprehensive Income
For 2017
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
Net sales
$

 
$
9,490

 
$
23,317

 
$
(7,868
)
 
$
24,939

Credit card revenues (expense), net

 
(2
)
 
704

 

 
702

 
 
 
 
 
 
 
 
 
 
Cost of sales

 
(6,122
)
 
(16,927
)
 
7,868

 
(15,181
)
Selling, general and administrative expenses

 
(3,426
)
 
(5,528
)
 

 
(8,954
)
Gains on sale of real estate

 
201

 
343

 

 
544

Restructuring, impairment, store closing and other costs

 
(40
)
 
(146
)
 

 
(186
)
Operating income

 
101

 
1,763

 

 
1,864

Benefit plan income, net

 
22

 
35

 

 
57

Settlement charges

 
(35
)
 
(70
)
 

 
(105
)
Interest (expense) income, net:
 
 
 
 
 
 
 
 
 
External

 
(313
)
 
3

 

 
(310
)
Intercompany

 
(139
)
 
139

 

 

Gains on early retirement of debt

 
10

 

 

 
10

Equity in earnings of subsidiaries
1,574

 
773

 

 
(2,347
)
 

Income before income taxes
1,574

 
419

 
1,870

 
(2,347
)
 
1,516

Federal, state and local income
tax benefit (expense)
(8
)
 
356

 
(309
)
 

 
39

Net income
1,566

 
775

 
1,561

 
(2,347
)
 
1,555

Net loss attributable to noncontrolling interest

 

 
11

 

 
11

Net income attributable to
Macy's, Inc. shareholders
$
1,566

 
$
775

 
$
1,572

 
$
(2,347
)
 
$
1,566

Comprehensive income
$
1,738

 
$
935

 
$
1,673

 
$
(2,619
)
 
$
1,727

Comprehensive loss attributable to
noncontrolling interest

 

 
11

 

 
11

Comprehensive income attributable to
Macy's, Inc. shareholders
$
1,738

 
$
935

 
$
1,684

 
$
(2,619
)
 
$
1,738



Condensed Consolidating Balance Sheet
MACY’S, INC.
Condensed Consolidating Balance Sheet
As of February 1, 2020
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
ASSETS:
 
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
413

 
$
59

 
$
213

 
$

 
$
685

Receivables

 
83

 
326

 

 
409

Merchandise inventories

 
2,239

 
2,949

 

 
5,188

Prepaid expenses and other current assets

 
118

 
410

 

 
528

Total Current Assets
413

 
2,499

 
3,898

 

 
6,810

Property and Equipment – net

 
3,103

 
3,530

 

 
6,633

Right of Use Assets

 
611

 
2,057

 

 
2,668

Goodwill

 
3,326

 
582

 

 
3,908

Other Intangible Assets – net

 
4

 
435

 

 
439

Other Assets

 
37

 
677

 

 
714

Deferred Income Taxes
12

 

 

 
(12
)
 

Intercompany Receivable
2,675

 

 
1,128

 
(3,803
)
 

Investment in Subsidiaries
3,433

 
2,796

 

 
(6,229
)
 

Total Assets
$
6,533

 
$
12,376

 
$
12,307

 
$
(10,044
)
 
$
21,172

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

 
$
539

 
$

 
$

 
$
539

Merchandise accounts payable

 
702

 
980

 

 
1,682

Accounts payable and accrued liabilities
126

 
909

 
2,413

 

 
3,448

Income taxes
5

 
11

 
65

 

 
81

Total Current Liabilities
131

 
2,161

 
3,458

 

 
5,750

Long-Term Debt

 
3,621

 

 

 
3,621

Long-Term Lease Liabilities

 
543

 
2,375

 

 
2,918

Intercompany Payable

 
3,803

 

 
(3,803
)
 

Deferred Income Taxes

 
595

 
586

 
(12
)
 
1,169

Other Liabilities
25

 
414

 
898

 

 
1,337

Shareholders’ Equity:
 
 
 
 
 
 
 
 


Macy's, Inc.
6,377

 
1,239

 
4,990

 
(6,229
)
 
6,377

Noncontrolling Interest

 

 

 

 

Total Shareholders’ Equity
6,377

 
1,239

 
4,990

 
(6,229
)
 
6,377

Total Liabilities and Shareholders’ Equity
$
6,533

 
$
12,376

 
$
12,307

 
$
(10,044
)
 
$
21,172



MACY’S, INC.
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
MACY’S, INC.
Condensed Consolidating Statement of Cash Flows
For 2019
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
Net income (loss)
$
564

 
$
(474
)
 
$
755

 
$
(281
)
 
$
564

Restructuring, impairment, store closing and other costs

 
108

 
246

 

 
354

Settlement charges

 
22

 
36

 

 
58

Gains on sale of real estate

 
(37
)
 
(125
)
 

 
(162
)
Equity in (earnings) loss of subsidiaries
(547
)
 
266

 

 
281

 

Dividends received from subsidiaries
936

 

 

 
(936
)
 

Depreciation and amortization

 
323

 
658

 

 
981

Changes in assets, liabilities and other items not separately identified
(4
)
 
(90
)
 
(93
)
 

 
(187
)
Net cash provided by
operating activities
949

 
118

 
1,477

 
(936
)
 
1,608

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

 
(198
)
 
(774
)
 

 
(972
)
Other, net

 
(2
)
 
(28
)
 

 
(30
)
Net cash used by investing activities

 
(200
)
 
(802
)
 

 
(1,002
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Debt repaid, including debt issuance costs

 
(598
)
 
(2
)
 

 
(600
)
Dividends paid
(466
)
 

 
(936
)
 
936

 
(466
)
Issuance of common stock, net of common stock acquired
5

 

 

 

 
5

Intercompany activity, net
(915
)
 
687

 
228

 

 

Other, net
(49
)
 
(7
)
 
(6
)
 

 
(62
)
Net cash provided (used) by
financing activities
(1,425
)
 
82

 
(716
)
 
936

 
(1,123
)
Net decrease in cash, cash equivalents and restricted cash
(476
)
 

 
(41
)
 

 
(517
)
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
$
413

 
$
64

 
$
254

 
$

 
$
731




 
MACY’S, INC.
Condensed Consolidating Statement of Cash Flows
For 2018
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
Net income
$
1,108

 
$
45

 
$
1,394

 
$
(1,449
)
 
$
1,098

Restructuring, impairment, store closing and other costs

 
33

 
103

 

 
136

Settlement charges
5

 
30

 
53

 

 
88

Gains on sale of real estate

 
(141
)
 
(248
)
 

 
(389
)
Equity in earnings of subsidiaries
(1,104
)
 
(345
)
 

 
1,449

 

Dividends received from subsidiaries
1,040

 
200

 

 
(1,240
)
 

Depreciation and amortization

 
334

 
628

 

 
962

Changes in assets, liabilities and other items not separately identified
(91
)
 
198

 
(266
)
 
(1
)
 
(160
)
Net cash provided by
operating activities
958

 
354

 
1,664

 
(1,241
)
 
1,735

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

 
(135
)
 
(323
)
 

 
(458
)
Other, net

 
(16
)
 
(33
)
 
51

 
2

Net cash used by
investing activities

 
(151
)
 
(356
)
 
51

 
(456
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Debt repaid

 
(1,098
)
 
(1
)
 
(50
)
 
(1,149
)
Dividends paid
(463
)
 

 
(1,240
)
 
1,240

 
(463
)
Issuance of common stock, net of common stock acquired
45

 

 

 

 
45

Proceeds from noncontrolling interest

 

 
7

 

 
7

Intercompany activity, net
(767
)
 
875

 
(108
)
 

 

Other, net
7

 
5

 
4

 

 
16

Net cash used by financing activities
(1,178
)
 
(218
)
 
(1,338
)
 
1,190

 
(1,544
)
Net decrease in cash, cash equivalents and restricted cash
(220
)
 
(15
)
 
(30
)
 

 
(265
)
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
$
889

 
$
64

 
$
295

 
$

 
$
1,248


MACY’S, INC.
Condensed Consolidating Statement of Cash Flows
For 2017
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
Net income
$
1,566

 
$
775

 
$
1,561

 
$
(2,347
)
 
$
1,555

Restructuring, impairment, store closing and other costs

 
40

 
146

 

 
186

Settlement charges

 
35

 
70

 

 
105

Gains on sale of real estate

 
(201
)
 
(343
)
 

 
(544
)
Equity in earnings of subsidiaries
(1,574
)
 
(773
)
 

 
2,347

 

Dividends received from subsidiaries
903

 
450

 

 
(1,353
)
 

Depreciation and amortization

 
354

 
637

 

 
991

Changes in assets, liabilities and other items not separately identified
14

 
79

 
(410
)
 

 
(317
)
Net cash provided by
operating activities
909

 
759

 
1,661

 
(1,353
)
 
1,976

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Disposition (purchase) of property and equipment and capitalized software, net

 
68

 
(417
)
 

 
(349
)
Other, net

 
7

 
(9
)
 

 
(2
)
Net cash provided (used) by
investing activities

 
75

 
(426
)
 

 
(351
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Debt repaid

 
(987
)
 
(1
)
 

 
(988
)
Dividends paid
(461
)
 

 
(1,353
)
 
1,353

 
(461
)
Issuance of common stock, net of common stock acquired
5

 

 

 

 
5

Proceeds from noncontrolling interest

 

 
13

 

 
13

Intercompany activity, net
(427
)
 
249

 
178

 

 

Other, net
145

 
(98
)
 
(62
)
 

 
(15
)
Net cash used by
financing activities
(738
)
 
(836
)
 
(1,225
)
 
1,353

 
(1,446
)
Net increase (decrease) in cash, cash equivalents and restricted cash
171

 
(2
)
 
10

 

 
179

Cash, cash equivalents and restricted cash at
beginning of period
938

 
81

 
315

 

 
1,334

Cash, cash equivalents and restricted cash at
end of period
$
1,109

 
$
79

 
$
325

 
$

 
$
1,513