Annual report pursuant to Section 13 and 15(d)

Condensed Consolidating Financial Information

v2.4.0.6
Condensed Consolidating Financial Information
12 Months Ended
Jan. 28, 2012
Condensed Consolidating Financial Information [Abstract]  
Condensed Consolidating Financial Information
Condensed Consolidating Financial Information
Certain debt obligations of the Company described in Note 7, which constitute debt obligations of Parent’s wholly-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), Macy’s Merchandising Group, Inc. and its subsidiary Macy’s Merchandising Group International, LLC. “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 January 28, 2012 and January 29, 2011, the related Condensed Consolidating Statements of Operations for 2011, 2010 and 2009, and the related Condensed Consolidating Statements of Cash Flows for 2011, 2010, and 2009 are presented on the following pages.
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 Operations
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
)
Gain on sale of properties, impairments, store closing costs and division consolidation costs

 
28

 
(3
)
 

 
25

Operating income (loss)
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


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

Gain on sale of properties, impairments, store closing costs and division consolidation costs

 
(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 Balance Sheet
As of January 29, 2011
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
ASSETS:
 
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
1,174

 
$
41

 
$
249

 
$

 
$
1,464

Receivables

 
89

 
249

 

 
338

Merchandise inventories

 
2,589

 
2,169

 

 
4,758

Prepaid expenses and other current assets

 
98

 
241

 

 
339

Total Current Assets
1,174

 
2,817

 
2,908

 

 
6,899

Property and Equipment – net

 
5,013

 
3,800

 

 
8,813

Goodwill

 
3,315

 
428

 

 
3,743

Other Intangible Assets – net

 
184

 
453

 

 
637

Other Assets
4

 
133

 
402

 

 
539

Deferred Income Tax Assets
19

 

 

 
(19
)
 

Intercompany Receivable
1,651

 

 
2,737

 
(4,388
)
 

Investment in Subsidiaries
2,908

 
2,598

 

 
(5,506
)
 

Total Assets
$
5,756

 
$
14,060

 
$
10,728

 
$
(9,913
)
 
$
20,631

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

 
$
451

 
$
3

 
$

 
$
454

Merchandise accounts payable

 
680

 
741

 

 
1,421

Accounts payable and accrued liabilities
144

 
1,031

 
1,350

 

 
2,525

Income taxes
29

 
18

 
135

 

 
182

Deferred income taxes

 
299

 
110

 

 
409

Total Current Liabilities
173

 
2,479

 
2,339

 

 
4,991

Long-Term Debt

 
6,942

 
29

 

 
6,971

Intercompany Payable

 
4,388

 

 
(4,388
)
 

Deferred Income Taxes

 
387

 
832

 
(19
)
 
1,200

Other Liabilities
53

 
786

 
1,100

 

 
1,939

Shareholders’ Equity (Deficit)
5,530

 
(922
)
 
6,428

 
(5,506
)
 
5,530

Total Liabilities and Shareholders’ Equity
$
5,756

 
$
14,060

 
$
10,728

 
$
(9,913
)
 
$
20,631

MACY’S, INC.
Condensed Consolidating Statement of Operations
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
)
Gain on sale of properties, impairments, store closing costs and division consolidation costs.

 
(21
)
 
(4
)
 

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

 
1,324

 

 
1,894

Interest (expense) income, net:
 
 
 
 
 
 
 
 
 
External
2

 
(575
)
 
(1
)
 

 
(574
)
Intercompany
(2
)
 
(165
)
 
167

 

 

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


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

Gain on sale of properties, impairments, store closing costs and division consolidation costs

 
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

MACY’S, INC.
Condensed Consolidating Statement of Operations
For 2009
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
Net sales
$

 
$
12,791

 
$
16,700

 
$
(6,002
)
 
$
23,489

Cost of sales

 
(7,836
)
 
(12,073
)
 
5,936

 
(13,973
)
Gross margin

 
4,955

 
4,627

 
(66
)
 
9,516

Selling, general and administrative expenses
(8
)
 
(4,616
)
 
(3,504
)
 
66

 
(8,062
)
Gain on sale of properties, impairments, store closing costs and division consolidation costs.

 
(226
)
 
(165
)
 

 
(391
)
Operating income (loss)
(8
)
 
113

 
958

 

 
1,063

Interest (expense) income, net:
 
 
 
 
 
 
 
 
 
External
3

 
(558
)
 
(1
)
 

 
(556
)
Intercompany
(2
)
 
(153
)
 
155

 

 

Equity in earnings of subsidiaries
333

 
201

 

 
(534
)
 

Income (loss) before income taxes
326

 
(397
)
 
1,112

 
(534
)
 
507

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

 
232

 
(413
)
 

 
(178
)
Net income (loss)
$
329

 
$
(165
)
 
$
699

 
$
(534
)
 
$
329

MACY’S, INC.
Condensed Consolidating Statement of Cash Flows
For 2009
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
Net income (loss)
$
329

 
$
(165
)
 
$
699

 
$
(534
)
 
$
329

Gain on sale of properties, impairments, store closing costs and division consolidation costs

 
226

 
165

 

 
391

Equity in earnings of subsidiaries
(333
)
 
(201
)
 

 
534

 

Dividends received from subsidiaries
436

 
60

 

 
(496
)
 

Depreciation and amortization

 
619

 
591

 

 
1,210

(Increase) decrease in working capital
114

 
163

 
(245
)
 

 
32

Other, net
73

 
(96
)
 
(189
)
 

 
(212
)
Net cash provided by operating activities
619

 
606

 
1,021

 
(496
)
 
1,750

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

 
(147
)
 
(227
)
 

 
(374
)
Other, net

 

 
(3
)
 

 
(3
)
Net cash used by investing activities

 
(147
)
 
(230
)
 

 
(377
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Debt repaid

 
(963
)
 
(3
)
 

 
(966
)
Dividends paid
(84
)
 

 
(496
)
 
496

 
(84
)
Issuance of common stock, net of common stock acquired
7

 

 

 

 
7

Intercompany activity, net
(247
)
 
493

 
(246
)
 

 

Other, net
(24
)
 
3

 
(8
)
 

 
(29
)
Net cash used by financing activities
(348
)
 
(467
)
 
(753
)
 
496

 
(1,072
)
Net increase (decrease) in cash and cash equivalents
271

 
(8
)
 
38

 

 
301

Cash and cash equivalents at beginning of period
1,047

 
68

 
270

 

 
1,385

Cash and cash equivalents at end of period
$
1,318

 
$
60

 
$
308

 
$

 
$
1,686