Annual report pursuant to Section 13 and 15(d)

Condensed Consolidating Financial Information

v2.4.0.6
Condensed Consolidating Financial Information
12 Months Ended
Feb. 02, 2013
Condensed Consolidating Financial Information [Abstract]  
Condensed Consolidating Financial Information
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 FDS Bank, West 34th Street Insurance Company (prior to a merger, known separately as Leadville Insurance Company and Snowdin 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, and Macy's Merchandising Group International (Hong Kong) 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 February 2, 2013 and January 28, 2012, the related Condensed Consolidating Statements of Comprehensive Income for 2012, 2011 and 2010, and the related Condensed Consolidating Statements of Cash Flows for 2012, 2011, and 2010 are presented on the following pages.
MACY’S, INC.
Condensed Consolidating Balance Sheet
As of February 2, 2013
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
ASSETS:
 
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
1,538

 
$
41

 
$
257

 
$

 
$
1,836

Receivables

 
58

 
313

 

 
371

Merchandise inventories

 
2,804

 
2,504

 

 
5,308

Prepaid expenses and other current assets

 
97

 
264

 

 
361

Income taxes
30

 

 

 
(30
)
 

Total Current Assets
1,568

 
3,000

 
3,338

 
(30
)
 
7,876

Property and Equipment – net

 
4,649

 
3,547

 

 
8,196

Goodwill

 
3,315

 
428

 

 
3,743

Other Intangible Assets – net

 
124

 
437

 

 
561

Other Assets
3

 
71

 
541

 

 
615

Intercompany Receivable
641

 

 
3,190

 
(3,831
)
 

Investment in Subsidiaries
4,027

 
2,595

 

 
(6,622
)
 

Total Assets
$
6,239

 
$
13,754

 
$
11,481

 
$
(10,483
)
 
$
20,991

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

 
$
121

 
$
3

 
$

 
$
124

Merchandise accounts payable

 
733

 
846

 

 
1,579

Accounts payable and accrued liabilities
119

 
1,023

 
1,468

 

 
2,610

Income taxes

 
69

 
316

 
(30
)
 
355

Deferred income taxes

 
323

 
84

 

 
407

Total Current Liabilities
119

 
2,269

 
2,717

 
(30
)
 
5,075

Long-Term Debt

 
6,783

 
23

 

 
6,806

Intercompany Payable

 
3,831

 

 
(3,831
)
 

Deferred Income Taxes
11

 
410

 
817

 

 
1,238

Other Liabilities
58

 
596

 
1,167

 

 
1,821

Shareholders’ Equity (Deficit)
6,051

 
(135
)
 
6,757

 
(6,622
)
 
6,051

Total Liabilities and Shareholders’ Equity
$
6,239

 
$
13,754

 
$
11,481

 
$
(10,483
)
 
$
20,991


MACY’S, INC.
Condensed Consolidating Statement of Comprehensive Income
For 2012
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
Net sales
$

 
$
13,594

 
$
22,493

 
$
(8,401
)
 
$
27,686

Cost of sales

 
(8,385
)
 
(16,500
)
 
8,347

 
(16,538
)
Gross margin

 
5,209

 
5,993

 
(54
)
 
11,148

Selling, general and administrative expenses
(9
)
 
(4,584
)
 
(3,943
)
 
54

 
(8,482
)
Impairments, store closing costs and
gain on sale of leases

 
(8
)
 
3

 

 
(5
)
Operating income (loss)
(9
)
 
617

 
2,053

 

 
2,661

Interest (expense) income, net:
 
 
 
 
 
 
 
 
 
External
1

 
(422
)
 
(1
)
 

 
(422
)
Intercompany
(2
)
 
(146
)
 
148

 

 

Premium on early retirement of debt

 
(137
)
 

 

 
(137
)
Equity in earnings of subsidiaries
1,342

 
638

 

 
(1,980
)
 

Income before income taxes
1,332

 
550

 
2,200

 
(1,980
)
 
2,102

Federal, state and local income
tax benefit (expense)
3

 
24

 
(794
)
 

 
(767
)
Net income
$
1,335

 
$
574

 
$
1,406

 
$
(1,980
)
 
$
1,335

Comprehensive income
$
1,465

 
$
704

 
$
1,477

 
$
(2,181
)
 
$
1,465


MACY’S, INC.
Condensed Consolidating Statement of Cash Flows
For 2012
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
Net income
$
1,335

 
$
574

 
$
1,406

 
$
(1,980
)
 
$
1,335

Impairments, store closing costs and
gain on sale of leases

 
8

 
(3
)
 

 
5

Equity in earnings of subsidiaries
(1,342
)
 
(638
)
 

 
1,980

 

Dividends received from subsidiaries
783

 
125

 

 
(908
)
 

Depreciation and amortization

 
484

 
565

 

 
1,049

Increase in working capital
(76
)
 
(24
)
 
(35
)
 

 
(135
)
Other, net
31

 
(31
)
 
7

 

 
7

Net cash provided by operating activities
731

 
498

 
1,940

 
(908
)
 
2,261

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

 
(324
)
 
(552
)
 

 
(876
)
Other, net

 

 
13

 

 
13

Net cash used by investing activities

 
(324
)
 
(539
)
 

 
(863
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Debt repaid, net of debt issued

 
(799
)
 
(4
)
 

 
(803
)
Dividends paid
(324
)
 

 
(908
)
 
908

 
(324
)
Common stock acquired, net of
issuance of common stock
(1,163
)
 

 

 

 
(1,163
)
Intercompany activity, net
(194
)
 
642

 
(448
)
 

 

Other, net
(45
)
 
(14
)
 
(40
)
 

 
(99
)
Net cash used by financing activities
(1,726
)
 
(171
)
 
(1,400
)
 
908

 
(2,389
)
Net increase (decrease) in cash and cash equivalents
(995
)
 
3

 
1

 

 
(991
)
Cash and cash equivalents at beginning of period
2,533

 
38

 
256

 

 
2,827

Cash and cash equivalents at end of period
$
1,538

 
$
41

 
$
257

 
$

 
$
1,836


MACY’S, INC.
Condensed Consolidating Balance Sheet
As of January 28, 2012
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
ASSETS:
 
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
2,533

 
$
38

 
$
256

 
$

 
$
2,827

Receivables

 
58

 
310

 

 
368

Merchandise inventories

 
2,722

 
2,395

 

 
5,117

Prepaid expenses and other current assets

 
152

 
313

 

 
465

Total Current Assets
2,533

 
2,970

 
3,274

 

 
8,777

Property and Equipment – net

 
4,827

 
3,593

 

 
8,420

Goodwill

 
3,315

 
428

 

 
3,743

Other Intangible Assets – net

 
153

 
445

 

 
598

Other Assets
4

 
73

 
480

 

 
557

Intercompany Receivable
520

 

 
2,963

 
(3,483
)
 

Investment in Subsidiaries
3,210

 
2,435

 

 
(5,645
)
 

Total Assets
$
6,267

 
$
13,773

 
$
11,183

 
$
(9,128
)
 
$
22,095

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

 
$
1,099

 
$
4

 
$

 
$
1,103

Merchandise accounts payable

 
731

 
862

 

 
1,593

Accounts payable and accrued liabilities
248

 
1,103

 
1,437

 

 
2,788

Income taxes
46

 
29

 
296

 

 
371

Deferred income taxes

 
314

 
94

 

 
408

Total Current Liabilities
294

 
3,276

 
2,693

 

 
6,263

Long-Term Debt

 
6,630

 
25

 

 
6,655

Intercompany Payable

 
3,483

 

 
(3,483
)
 

Deferred Income Taxes
4

 
351

 
786

 

 
1,141

Other Liabilities
36

 
771

 
1,296

 

 
2,103

Shareholders’ Equity (Deficit)
5,933

 
(738
)
 
6,383

 
(5,645
)
 
5,933

Total Liabilities and Shareholders’ Equity
$
6,267

 
$
13,773

 
$
11,183

 
$
(9,128
)
 
$
22,095

MACY’S, INC.
Condensed Consolidating Statement of Comprehensive Income
For 2011
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
Net sales
$

 
$
13,405

 
$
21,312

 
$
(8,312
)
 
$
26,405

Cost of sales

 
(8,274
)
 
(15,721
)
 
8,257

 
(15,738
)
Gross margin

 
5,131

 
5,591

 
(55
)
 
10,667

Selling, general and administrative expenses
5

 
(4,585
)
 
(3,756
)
 
55

 
(8,281
)
Impairments, store closing costs and
gain on sale of leases

 
28

 
(3
)
 

 
25

Operating income
5

 
574

 
1,832

 

 
2,411

Interest (expense) income, net:
 
 
 
 
 
 
 
 
 
External
1

 
(443
)
 
(1
)
 

 
(443
)
Intercompany
(1
)
 
(191
)
 
192

 

 

Premium on early retirement of debt

 

 

 

 

Equity in earnings of subsidiaries
1,253

 
548

 

 
(1,801
)
 

Income before income taxes
1,258

 
488

 
2,023

 
(1,801
)
 
1,968

Federal, state and local income
tax benefit (expense)
(2
)
 
27

 
(737
)
 

 
(712
)
Net income
$
1,256

 
$
515

 
$
1,286

 
$
(1,801
)
 
$
1,256

Comprehensive income
$
925

 
$
184

 
$
1,150

 
$
(1,334
)
 
$
925


MACY’S, INC.
Condensed Consolidating Statement of Cash Flows
For 2011
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
Net income
$
1,256

 
$
515

 
$
1,286

 
$
(1,801
)
 
$
1,256

Impairments, store closing costs and
gain on sale of leases

 
(28
)
 
3

 

 
(25
)
Equity in earnings of subsidiaries
(1,253
)
 
(548
)
 

 
1,801

 

Dividends received from subsidiaries
612

 
175

 

 
(787
)
 

Depreciation and amortization

 
517

 
568

 

 
1,085

(Increase) decrease in working capital
5

 
(110
)
 
50

 

 
(55
)
Other, net
(18
)
 
(166
)
 
16

 

 
(168
)
Net cash provided by operating activities
602

 
355

 
1,923

 
(787
)
 
2,093

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

 
(171
)
 
(473
)
 

 
(644
)
Other, net
38

 
16

 
(27
)
 

 
27

Net cash provided (used) by
investing activities
38

 
(155
)
 
(500
)
 

 
(617
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Debt issued, net of debt repaid

 
349

 
(3
)
 

 
346

Dividends paid
(148
)
 

 
(787
)
 
787

 
(148
)
Common stock acquired, net of
issuance of common stock
(340
)
 

 

 

 
(340
)
Intercompany activity, net
1,186

 
(529
)
 
(657
)
 

 

Other, net
21

 
(23
)
 
31

 

 
29

Net cash provided (used) by
financing activities
719

 
(203
)
 
(1,416
)
 
787

 
(113
)
Net increase (decrease) in
cash and cash equivalents
1,359

 
(3
)
 
7

 

 
1,363

Cash and cash equivalents at beginning of period
1,174

 
41

 
249

 

 
1,464

Cash and cash equivalents at end of period
$
2,533

 
$
38

 
$
256

 
$

 
$
2,827

MACY’S, INC.
Condensed Consolidating Statement of Comprehensive Income
For 2010
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
Net sales
$

 
$
13,124

 
$
19,900

 
$
(8,021
)
 
$
25,003

Cost of sales

 
(8,006
)
 
(14,782
)
 
7,964

 
(14,824
)
Gross margin

 
5,118

 
5,118

 
(57
)
 
10,179

Selling, general and administrative expenses
(8
)
 
(4,519
)
 
(3,790
)
 
57

 
(8,260
)
Impairments, store closing costs and
gain on sale of leases

 
(21
)
 
(4
)
 

 
(25
)
Operating income (loss)
(8
)
 
578

 
1,324

 

 
1,894

Interest (expense) income, net:
 
 
 
 
 
 
 
 
 
External
2

 
(509
)
 
(1
)
 

 
(508
)
Intercompany
(2
)
 
(165
)
 
167

 

 

Premium on early retirement of debt

 
(66
)
 

 

 
(66
)
Equity in earnings of subsidiaries
852

 
417

 

 
(1,269
)
 

Income before income taxes
844

 
255

 
1,490

 
(1,269
)
 
1,320

Federal, state and local income
tax benefit (expense)
3

 
65

 
(541
)
 

 
(473
)
Net income
$
847

 
$
320

 
$
949

 
$
(1,269
)
 
$
847

Comprehensive income
$
870

 
$
343

 
$
962

 
$
(1,305
)
 
$
870

MACY’S, INC.
Condensed Consolidating Statement of Cash Flows
For 2010
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
Net income
$
847

 
$
320

 
$
949

 
$
(1,269
)
 
$
847

Impairments, store closing costs and
gain on sale of leases

 
21

 
4

 

 
25

Equity in earnings of subsidiaries
(852
)
 
(417
)
 

 
1,269

 

Dividends received from subsidiaries
541

 
250

 

 
(791
)
 

Depreciation and amortization

 
566

 
584

 

 
1,150

(Increase) decrease in working capital
179

 
(454
)
 
232

 

 
(43
)
Other, net
8

 
(526
)
 
45

 

 
(473
)
Net cash provided (used) by
operating activities
723

 
(240
)
 
1,814

 
(791
)
 
1,506

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

 
(178
)
 
(247
)
 

 
(425
)
Other, net

 

 
(40
)
 

 
(40
)
Net cash used by investing activities

 
(178
)
 
(287
)
 

 
(465
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Debt repaid

 
(1,242
)
 
(3
)
 

 
(1,245
)
Dividends paid
(84
)
 

 
(791
)
 
791

 
(84
)
Issuance of common stock, net of
common stock acquired
42

 

 

 

 
42

Intercompany activity, net
(710
)
 
1,656

 
(946
)
 

 

Other, net
(115
)
 
(15
)
 
154

 

 
24

Net cash provided (used) by
financing activities
(867
)
 
399

 
(1,586
)
 
791

 
(1,263
)
Net decrease in cash and cash equivalents
(144
)
 
(19
)
 
(59
)
 

 
(222
)
Cash and cash equivalents at beginning of period
1,318

 
60

 
308

 

 
1,686

Cash and cash equivalents at end of period
$
1,174

 
$
41

 
$
249

 
$

 
$
1,464