Annual report pursuant to Section 13 and 15(d)

Condensed Consolidating Financial Information

v2.4.0.8
Condensed Consolidating Financial Information
12 Months Ended
Feb. 01, 2014
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 1, 2014 and February 2, 2013, the related Condensed Consolidating Statements of Comprehensive Income for 2013, 2012 and 2011, and the related Condensed Consolidating Statements of Cash Flows for 2013, 2012, and 2011 are presented on the following pages.
MACY’S, INC.
Condensed Consolidating Balance Sheet
As of February 1, 2014
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
ASSETS:
 
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
1,955

 
$
84

 
$
234

 
$

 
$
2,273

Receivables

 
102

 
336

 

 
438

Merchandise inventories

 
2,896

 
2,661

 

 
5,557

Prepaid expenses and other current assets

 
103

 
317

 

 
420

Income taxes
80

 

 

 
(80
)
 

Total Current Assets
2,035

 
3,185

 
3,548

 
(80
)
 
8,688

Property and Equipment – net

 
4,590

 
3,340

 

 
7,930

Goodwill

 
3,315

 
428

 

 
3,743

Other Intangible Assets – net

 
97

 
430

 

 
527

Other Assets
4

 
101

 
641

 

 
746

Deferred Income Taxes
19

 

 

 
(19
)
 

Intercompany Receivable

 

 
3,561

 
(3,561
)
 

Investment in Subsidiaries
4,625

 
3,157

 

 
(7,782
)
 

Total Assets
$
6,683

 
$
14,445

 
$
11,948

 
$
(11,442
)
 
$
21,634

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

 
$
461

 
$
2

 
$

 
$
463

Merchandise accounts payable

 
760

 
931

 

 
1,691

Accounts payable and accrued liabilities
10

 
1,265

 
1,535

 

 
2,810

Income taxes

 
80

 
362

 
(80
)
 
362

Deferred income taxes

 
315

 
85

 

 
400

Total Current Liabilities
10

 
2,881

 
2,915

 
(80
)
 
5,726

Long-Term Debt

 
6,708

 
20

 

 
6,728

Intercompany Payable
362

 
3,199

 

 
(3,561
)
 

Deferred Income Taxes

 
544

 
748

 
(19
)
 
1,273

Other Liabilities
62

 
522

 
1,074

 

 
1,658

Shareholders’ Equity
6,249

 
591

 
7,191

 
(7,782
)
 
6,249

Total Liabilities and Shareholders’ Equity
$
6,683

 
$
14,445

 
$
11,948

 
$
(11,442
)
 
$
21,634


MACY’S, INC.
Condensed Consolidating Statement of Comprehensive Income
For 2013
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
Net sales
$

 
$
13,233

 
$
23,471

 
$
(8,773
)
 
$
27,931

Cost of sales

 
(8,168
)
 
(17,276
)
 
8,719

 
(16,725
)
Gross margin

 
5,065

 
6,195

 
(54
)
 
11,206

Selling, general and administrative expenses
(8
)
 
(4,443
)
 
(4,043
)
 
54

 
(8,440
)
Impairments, store closing and other costs
and gain on sale of leases

 
(37
)
 
(51
)
 

 
(88
)
Operating income (loss)
(8
)
 
585

 
2,101

 

 
2,678

Interest (expense) income, net:
 
 
 
 
 
 
 
 
 
External
1

 
(388
)
 
(1
)
 

 
(388
)
Intercompany
(2
)
 
(176
)
 
178

 

 

Equity in earnings of subsidiaries
1,492

 
557

 

 
(2,049
)
 

Income before income taxes
1,483

 
578

 
2,278

 
(2,049
)
 
2,290

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

 
33

 
(840
)
 

 
(804
)
Net income
$
1,486

 
$
611

 
$
1,438

 
$
(2,049
)
 
$
1,486

Comprehensive income
$
1,752

 
$
877

 
$
1,434

 
$
(2,311
)
 
$
1,752


MACY’S, INC.
Condensed Consolidating Statement of Cash Flows
For 2013
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
Net income
$
1,486

 
$
611

 
$
1,438

 
$
(2,049
)
 
$
1,486

Impairments, store closing and other costs
and gain on sale of leases

 
37

 
51

 

 
88

Equity in earnings of subsidiaries
(1,492
)
 
(557
)
 

 
2,049

 

Dividends received from subsidiaries
911

 
4

 

 
(915
)
 

Depreciation and amortization

 
467

 
553

 

 
1,020

(Increase) decrease in working capital
(54
)
 
12

 
(111
)
 

 
(153
)
Other, net
(25
)
 
158

 
(25
)
 

 
108

Net cash provided by
operating activities
826

 
732

 
1,906

 
(915
)
 
2,549

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

 
(289
)
 
(442
)
 

 
(731
)
Other, net

 
(6
)
 
(51
)
 

 
(57
)
Net cash used by investing activities

 
(295
)
 
(493
)
 

 
(788
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Debt issued, net of debt repaid

 
278

 
(2
)
 

 
276

Dividends paid
(359
)
 

 
(915
)
 
915

 
(359
)
Common stock acquired, net of
issuance of common stock
(1,256
)
 

 

 

 
(1,256
)
Intercompany activity, net
1,310

 
(728
)
 
(582
)
 

 

Other, net
(104
)
 
56

 
63

 

 
15

Net cash used by financing activities
(409
)
 
(394
)
 
(1,436
)
 
915

 
(1,324
)
Net increase (decrease) in cash
and cash equivalents
417

 
43

 
(23
)
 

 
437

Cash and cash equivalents at
beginning of period
1,538

 
41

 
257

 

 
1,836

Cash and cash equivalents at
end of period
$
1,955

 
$
84

 
$
234

 
$

 
$
2,273


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 and other 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 and other 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
)
 
(75
)
 
(66
)
 

 
(217
)
Other, net
31

 
(31
)
 
7

 

 
7

Net cash provided by
operating activities
731

 
447

 
1,909

 
(908
)
 
2,179

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

 
(324
)
 
(552
)
 

 
(876
)
Other, net

 
51

 
44

 

 
95

Net cash used by
investing activities

 
(273
)
 
(508
)
 

 
(781
)
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 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 and other 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

 

 

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 and other 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

 
(59
)
 
81

 

 
27

Other, net
(18
)
 
(166
)
 
14

 

 
(170
)
Net cash provided by
operating activities
602

 
406

 
1,952

 
(787
)
 
2,173

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

 
(171
)
 
(473
)
 

 
(644
)
Other, net
38

 
(35
)
 
(56
)
 

 
(53
)
Net cash provided (used) by
investing activities
38

 
(206
)
 
(529
)
 

 
(697
)
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