Annual report pursuant to Section 13 and 15(d)

Condensed Consolidating Financial Information

v3.3.1.900
Condensed Consolidating Financial Information
12 Months Ended
Jan. 30, 2016
Condensed Financial Information of Parent Company Only Disclosure [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 Bluemercury, Inc., FDS Bank, West 34th Street 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, Macy's Merchandising Group International (Hong Kong) Limited, and its majority-owned subsidiary 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 Balance Sheets as of January 30, 2016 and January 31, 2015, the related Condensed Consolidating Statements of Comprehensive Income for 2015, 2014 and 2013, and the related Condensed Consolidating Statements of Cash Flows for 2015, 2014, and 2013 are presented on the following pages.
MACY’S, INC.
Condensed Consolidating Balance Sheet
As of January 30, 2016
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
ASSETS:
 
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
741

 
$
91

 
$
277

 
$

 
$
1,109

Receivables

 
217

 
341

 

 
558

Merchandise inventories

 
2,702

 
2,804

 

 
5,506

Prepaid expenses and other current assets

 
135

 
344

 

 
479

Income taxes
44

 

 

 
(44
)
 

Total Current Assets
785

 
3,145

 
3,766

 
(44
)
 
7,652

Property and Equipment – net

 
3,925

 
3,691

 

 
7,616

Goodwill

 
3,315

 
582

 

 
3,897

Other Intangible Assets – net

 
52

 
462

 

 
514

Other Assets

 
154

 
743

 

 
897

Deferred Income Taxes
14

 

 

 
(14
)
 

Intercompany Receivable

 

 
3,800

 
(3,800
)
 

Investment in Subsidiaries
4,725

 
3,804

 

 
(8,529
)
 

Total Assets
$
5,524

 
$
14,395

 
$
13,044

 
$
(12,387
)
 
$
20,576

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

 
$
641

 
$
1

 
$

 
$
642

Merchandise accounts payable

 
667

 
859

 

 
1,526

Accounts payable and accrued liabilities
35

 
1,439

 
1,859

 

 
3,333

Income taxes

 
41

 
230

 
(44
)
 
227

Total Current Liabilities
35

 
2,788

 
2,949

 
(44
)
 
5,728

Long-Term Debt

 
6,976

 
19

 

 
6,995

Intercompany Payable
1,218

 
2,582

 

 
(3,800
)
 

Deferred Income Taxes

 
693

 
798

 
(14
)
 
1,477

Other Liabilities
21

 
558

 
1,544

 

 
2,123

Shareholders’ Equity:
 
 
 
 
 
 
 
 


Macy's, Inc.
4,250

 
798

 
7,731

 
(8,529
)
 
4,250

Noncontrolling Interest

 

 
3

 

 
3

Total Shareholders’ Equity
4,250

 
798

 
7,734

 
(8,529
)
 
4,253

Total Liabilities and Shareholders’ Equity
$
5,524

 
$
14,395

 
$
13,044

 
$
(12,387
)
 
$
20,576


MACY’S, INC.
Condensed Consolidating Statement of Comprehensive Income
For 2015
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
Net sales
$

 
$
11,959

 
$
24,037

 
$
(8,917
)
 
$
27,079

Cost of sales

 
(7,670
)
 
(17,743
)
 
8,917

 
(16,496
)
Gross margin

 
4,289

 
6,294

 

 
10,583

Selling, general and administrative expenses
(2
)
 
(3,980
)
 
(4,274
)
 

 
(8,256
)
Impairments, store closing and other costs

 
(170
)
 
(118
)
 

 
(288
)
Operating income (loss)
(2
)
 
139

 
1,902

 

 
2,039

Interest (expense) income, net:
 
 
 
 
 
 
 
 
 
External
1

 
(361
)
 
(1
)
 

 
(361
)
Intercompany

 
(230
)
 
230

 

 

Equity in earnings of subsidiaries
1,072

 
421

 

 
(1,493
)
 

Income before income taxes
1,071

 
(31
)
 
2,131

 
(1,493
)
 
1,678

Federal, state and local income
tax benefit (expense)
1

 
120

 
(729
)
 

 
(608
)
Net income
1,072

 
89

 
1,402

 
(1,493
)
 
1,070

Net loss attributable to noncontrolling interest

 

 
2

 

 
2

Net income attributable to
Macy's, Inc. shareholders
$
1,072

 
$
89

 
$
1,404

 
$
(1,493
)
 
$
1,072

Comprehensive income
$
1,101

 
$
118

 
$
1,415

 
$
(1,535
)
 
$
1,099

Comprehensive loss attributable to
noncontrolling interest

 

 
2

 

 
2

Comprehensive income attributable to
Macy's, Inc. shareholders
$
1,101

 
$
118

 
$
1,417

 
$
(1,535
)
 
$
1,101


MACY’S, INC.
Condensed Consolidating Statement of Cash Flows
For 2015
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
Net income
$
1,072

 
$
89

 
$
1,402

 
$
(1,493
)
 
$
1,070

Impairments, store closing and other costs

 
170

 
118

 

 
288

Equity in earnings of subsidiaries
(1,072
)
 
(421
)
 

 
1,493

 

Dividends received from subsidiaries
1,086

 

 

 
(1,086
)
 

Depreciation and amortization

 
440

 
621

 

 
1,061

(Increase) decrease in working capital
25

 
(340
)
 
(81
)
 

 
(396
)
Other, net
(8
)
 
(78
)
 
47

 

 
(39
)
Net cash provided (used) by
operating activities
1,103

 
(140
)
 
2,107

 
(1,086
)
 
1,984

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

 
(88
)
 
(821
)
 

 
(909
)
Other, net

 
83

 
(266
)
 

 
(183
)
Net cash used by investing activities

 
(5
)
 
(1,087
)
 

 
(1,092
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Debt issued, net of debt repaid

 
348

 
(1
)
 

 
347

Dividends paid
(456
)
 

 
(1,086
)
 
1,086

 
(456
)
Common stock acquired, net of
issuance of common stock
(1,838
)
 

 

 

 
(1,838
)
Proceeds from noncontrolling interest

 

 
5

 

 
5

Intercompany activity, net
12

 
(243
)
 
231

 

 

Other, net
12

 
37

 
(136
)
 

 
(87
)
Net cash provided (used) by
financing activities
(2,270
)
 
142

 
(987
)
 
1,086

 
(2,029
)
Net increase (decrease) in cash
and cash equivalents
(1,167
)
 
(3
)
 
33

 

 
(1,137
)
Cash and cash equivalents at
beginning of period
1,908

 
94

 
244

 

 
2,246

Cash and cash equivalents at
end of period
$
741

 
$
91

 
$
277

 
$

 
$
1,109


MACY’S, INC.
Condensed Consolidating Balance Sheet
As of January 31, 2015
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
ASSETS:
 
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
1,908

 
$
94

 
$
244

 
$

 
$
2,246

Receivables

 
97

 
327

 

 
424

Merchandise inventories

 
2,762

 
2,655

 

 
5,417

Prepaid expenses and other current assets

 
113

 
380

 

 
493

Income taxes
88

 

 

 
(88
)
 

Total Current Assets
1,996

 
3,066

 
3,606

 
(88
)
 
8,580

Property and Equipment – net

 
4,315

 
3,485

 

 
7,800

Goodwill

 
3,315

 
428

 

 
3,743

Other Intangible Assets – net

 
73

 
423

 

 
496

Other Assets
1

 
42

 
668

 

 
711

Deferred Income Taxes
10

 

 

 
(10
)
 

Intercompany Receivable

 

 
4,140

 
(4,140
)
 

Investment in Subsidiaries
4,655

 
3,526

 

 
(8,181
)
 

Total Assets
$
6,662

 
$
14,337

 
$
12,750

 
$
(12,419
)
 
$
21,330

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

 
$
75

 
$
1

 
$

 
$
76

Merchandise accounts payable

 
729

 
865

 

 
1,594

Accounts payable and accrued liabilities
42

 
1,360

 
1,707

 

 
3,109

Income taxes

 
22

 
362

 
(88
)
 
296

Total Current Liabilities
42

 
2,186

 
2,935

 
(88
)
 
5,075

Long-Term Debt

 
7,213

 
20

 

 
7,233

Intercompany Payable
1,215

 
2,925

 

 
(4,140
)
 

Deferred Income Taxes

 
709

 
744

 
(10
)
 
1,443

Other Liabilities
27

 
593

 
1,581

 

 
2,201

Shareholders’ Equity:
 
 
 
 
 
 
 
 
 
Macy's, Inc.
5,378

 
711

 
7,470

 
(8,181
)
 
5,378

Noncontrolling Interest

 

 

 

 

Total Shareholders’ Equity
5,378

 
711

 
7,470

 
(8,181
)
 
5,378

Total Liabilities and Shareholders’ Equity
$
6,662

 
$
14,337

 
$
12,750

 
$
(12,419
)
 
$
21,330

MACY’S, INC.
Condensed Consolidating Statement of Comprehensive Income
For 2014
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
Net sales
$

 
$
13,078

 
$
23,522

 
$
(8,495
)
 
$
28,105

Cost of sales

 
(8,127
)
 
(17,231
)
 
8,495

 
(16,863
)
Gross margin

 
4,951

 
6,291

 

 
11,242

Selling, general and administrative expenses
(3
)
 
(4,351
)
 
(4,001
)
 

 
(8,355
)
Impairments, store closing and other costs

 
(45
)
 
(42
)
 

 
(87
)
Operating income (loss)
(3
)
 
555

 
2,248

 

 
2,800

Interest (expense) income, net:
 
 
 
 
 
 
 
 
 
External
1

 
(394
)
 

 

 
(393
)
Intercompany

 
(230
)
 
230

 

 

Premium on early retirement of debt

 
(17
)
 

 

 
(17
)
Equity in earnings of subsidiaries
1,528

 
624

 

 
(2,152
)
 

Income before income taxes
1,526

 
538

 
2,478

 
(2,152
)
 
2,390

Federal, state and local income
tax benefit (expense)

 
25

 
(889
)
 

 
(864
)
Net income
1,526

 
563

 
1,589

 
(2,152
)
 
1,526

Net loss attributable to noncontrolling interest

 

 

 

 

Net income attributable to
Macy's, Inc. shareholders
$
1,526

 
$
563

 
$
1,589

 
$
(2,152
)
 
$
1,526

Comprehensive income
$
1,119

 
$
156

 
$
1,338

 
$
(1,494
)
 
$
1,119

Comprehensive loss attributable to
noncontrolling interest

 

 

 

 

Comprehensive income attributable to
Macy's, Inc. shareholders
$
1,119

 
$
156

 
$
1,338

 
$
(1,494
)
 
$
1,119


MACY’S, INC.
Condensed Consolidating Statement of Cash Flows
For 2014
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
Net income
$
1,526

 
$
563

 
$
1,589

 
$
(2,152
)
 
$
1,526

Impairments, store closing and other costs

 
45

 
42

 

 
87

Equity in earnings of subsidiaries
(1,528
)
 
(624
)
 

 
2,152

 

Dividends received from subsidiaries
1,088

 
1

 

 
(1,089
)
 

Depreciation and amortization

 
454

 
582

 

 
1,036

(Increase) decrease in working capital
9

 
74

 
(69
)
 

 
14

Other, net
(20
)
 
(177
)
 
243

 

 
46

Net cash provided by
operating activities
1,075

 
336

 
2,387

 
(1,089
)
 
2,709

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

 
(260
)
 
(636
)
 

 
(896
)
Other, net

 
(12
)
 
(62
)
 

 
(74
)
Net cash used by
investing activities

 
(272
)
 
(698
)
 

 
(970
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Debt issued, net of debt repaid

 
177

 
(3
)
 

 
174

Dividends paid
(421
)
 

 
(1,089
)
 
1,089

 
(421
)
Common stock acquired, net of
issuance of common stock
(1,643
)
 

 

 

 
(1,643
)
Proceeds from noncontrolling interest

 

 

 

 

Intercompany activity, net
927

 
(283
)
 
(644
)
 

 

Other, net
15

 
52

 
57

 

 
124

Net cash used by financing activities
(1,122
)
 
(54
)
 
(1,679
)
 
1,089

 
(1,766
)
Net increase (decrease) in
cash and cash equivalents
(47
)
 
10

 
10

 

 
(27
)
Cash and cash equivalents at
beginning of period
1,955

 
84

 
234

 

 
2,273

Cash and cash equivalents at
end of period
$
1,908

 
$
94

 
$
244

 
$

 
$
2,246

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

 
$
13,233

 
$
23,417

 
$
(8,719
)
 
$
27,931

Cost of sales

 
(8,168
)
 
(17,276
)
 
8,719

 
(16,725
)
Gross margin

 
5,065

 
6,141

 

 
11,206

Selling, general and administrative expenses
(8
)
 
(4,443
)
 
(3,989
)
 

 
(8,440
)
Impairments, store closing and other costs

 
(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

Net loss attributable to noncontrolling interest

 

 

 

 

Net income attributable to
Macy's, Inc. shareholders
$
1,486

 
$
611

 
$
1,438

 
$
(2,049
)
 
$
1,486

Comprehensive income
$
1,752

 
$
877

 
$
1,434

 
$
(2,311
)
 
$
1,752

Comprehensive loss attributable to
noncontrolling interest

 

 

 

 

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

 
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 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 repaid, net of debt issued

 
278

 
(2
)
 

 
276

Dividends paid
(359
)
 

 
(915
)
 
915

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

 

 

 
(1,256
)
Proceeds from noncontrolling interest

 

 

 

 

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