Annual report pursuant to Section 13 and 15(d)

Condensed Consolidating Financial Information

v3.19.1
Condensed Consolidating Financial Information
12 Months Ended
Feb. 02, 2019
Condensed Financial Information Disclosure [Abstract]  
Condensed Consolidating Financial Information
Condensed Consolidating Financial Information
Certain debt obligations of the Company described in Note 6, "Financing," 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 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 2018, 2017 and 2016, Consolidating Balance Sheets as of February 2, 2019 and February 3, 2018, and the related Condensed Consolidating Statements of Cash Flows for 2018, 2017, and 2016 are presented on the following pages.
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


MACY’S, INC.
Condensed Consolidating Statement of Comprehensive Income
For 2016
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
Net sales
$

 
$
10,735

 
$
23,508

 
$
(8,335
)
 
$
25,908

Credit card revenues (expense), net

 
17

 
639

 

 
656

 
 
 
 
 
 
 
 
 
 
Cost of sales

 
(6,818
)
 
(17,183
)
 
8,335

 
(15,666
)
Selling, general and administrative expenses
(2
)
 
(3,899
)
 
(5,356
)
 

 
(9,257
)
Gains on sale of real estate

 
95

 
114

 

 
209

Restructuring, impairment, store closing and other costs

 
(295
)
 
(184
)
 

 
(479
)
Operating income (loss)
(2
)
 
(165
)
 
1,538

 

 
1,371

Benefit plan income, net

 
21

 
34

 

 
55

Settlement charges

 
(34
)
 
(64
)
 

 
(98
)
Interest (expense) income, net:
 
 
 
 
 
 
 
 
 
External
2

 
(366
)
 
1

 

 
(363
)
Intercompany

 
(200
)
 
200

 

 

Equity in earnings of subsidiaries
627

 
267

 

 
(894
)
 

Income (loss) before income taxes
627

 
(477
)
 
1,709

 
(894
)
 
965

Federal, state and local income
tax benefit (expense)

 
278

 
(624
)
 

 
(346
)
Net income (loss)
627

 
(199
)
 
1,085

 
(894
)
 
619

Net loss attributable to noncontrolling interest

 

 
8

 

 
8

Net income (loss) attributable to
Macy's, Inc. shareholders
$
627

 
$
(199
)
 
$
1,093

 
$
(894
)
 
$
627

Comprehensive income (loss)
$
774

 
$
(52
)
 
$
1,164

 
$
(1,120
)
 
$
766

Comprehensive loss attributable to
noncontrolling interest

 

 
8

 

 
8

Comprehensive income (loss) attributable to
Macy's, Inc. shareholders
$
774

 
$
(52
)
 
$
1,172

 
$
(1,120
)
 
$
774



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



MACY’S, INC.
Condensed Consolidating Balance Sheet
As of February 3, 2018
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
ASSETS:
 
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
1,109

 
$
58

 
$
288

 
$

 
$
1,455

Receivables

 
85

 
278

 

 
363

Merchandise inventories

 
2,344

 
2,834

 

 
5,178

Prepaid expenses and other current assets

 
165

 
485

 

 
650

Total Current Assets
1,109

 
2,652

 
3,885

 

 
7,646

Property and Equipment – net

 
3,349

 
3,323

 

 
6,672

Goodwill

 
3,315

 
582

 

 
3,897

Other Intangible Assets – net

 
44

 
444

 

 
488

Other Assets
1

 
89

 
790

 

 
880

Deferred Income Taxes
11

 

 

 
(11
)
 

Intercompany Receivable
884

 

 
2,381

 
(3,265
)
 

Investment in Subsidiaries
4,032

 
4,119

 

 
(8,151
)
 

Total Assets
$
6,037

 
$
13,568

 
$
11,405

 
$
(11,427
)
 
$
19,583

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

 
$
6

 
$
16

 
$

 
$
22

Merchandise accounts payable

 
653

 
937

 

 
1,590

Accounts payable and accrued liabilities
159

 
980

 
2,132

 

 
3,271

Income taxes
113

 
30

 
153

 

 
296

Total Current Liabilities
272

 
1,669

 
3,238

 

 
5,179

Long-Term Debt

 
5,844

 
17

 

 
5,861

Intercompany Payable

 
3,265

 

 
(3,265
)
 

Deferred Income Taxes

 
559

 
600

 
(11
)
 
1,148

Other Liabilities
20

 
430

 
1,212

 

 
1,662

Shareholders’ Equity:
 
 
 
 
 
 
 
 
 
Macy's, Inc.
5,745

 
1,801

 
6,350

 
(8,151
)
 
5,745

Noncontrolling Interest

 

 
(12
)
 

 
(12
)
Total Shareholders’ Equity
5,745

 
1,801

 
6,338

 
(8,151
)
 
5,733

Total Liabilities and Shareholders’ Equity
$
6,037

 
$
13,568

 
$
11,405

 
$
(11,427
)
 
$
19,583



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
)
Common stock acquired, net of
issuance of common stock
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


MACY’S, INC.
Condensed Consolidating Statement of Cash Flows
For 2016
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
Net income (loss)
$
627

 
$
(199
)
 
$
1,085

 
$
(894
)
 
$
619

Restructuring, impairment, store closing and other costs

 
295

 
184

 

 
479

Settlement charges

 
34

 
64

 

 
98

Gains on sale of real estate

 
(95
)
 
(114
)
 

 
(209
)
Equity in earnings of subsidiaries
(627
)
 
(267
)
 

 
894

 

Dividends received from subsidiaries
957

 
575

 

 
(1,532
)
 

Depreciation and amortization

 
407

 
651

 

 
1,058

Changes in assets, liabilities and other items not separately identified
138

 
(312
)
 
(70
)
 

 
(244
)
Net cash provided by
operating activities
1,095

 
438

 
1,800

 
(1,532
)
 
1,801

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

 
13

 
(252
)
 

 
(239
)
Other, net

 
(18
)
 
14

 

 
(4
)
Net cash used by
investing activities

 
(5
)
 
(238
)
 

 
(243
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Debt repaid

 
(753
)
 
(1
)
 

 
(754
)
Dividends paid
(459
)
 

 
(1,532
)
 
1,532

 
(459
)
Common stock acquired, net of
issuance of common stock
(280
)
 

 

 

 
(280
)
Proceeds from noncontrolling interest

 

 
6

 

 
6

Intercompany activity, net
(144
)
 
233

 
(89
)
 

 

Other, net
(15
)
 
27

 
49

 

 
61

Net cash used by
financing activities
(898
)
 
(493
)
 
(1,567
)
 
1,532

 
(1,426
)
Net increase (decrease) in cash, cash equivalents and restricted cash
197

 
(60
)
 
(5
)
 

 
132

Cash, cash equivalents and restricted cash at
beginning of period
741

 
141

 
320

 

 
1,202

Cash, cash equivalents and restricted cash at
end of period
$
938

 
$
81

 
$
315

 
$

 
$
1,334