Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidating Financial Information

v3.19.3.a.u2
Condensed Consolidating Financial Information
9 Months Ended
Nov. 02, 2019
Condensed Financial Information Disclosure [Abstract]  
Condensed Consolidating Financial Information     Condensed Consolidating Financial Information
Certain debt obligations of the Company, which constitute debt obligations of Macy's Retail Holdings, Inc. ("Subsidiary Issuer"), a 100%-owned subsidiary of Macy's, Inc. ("Parent"), 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 the 13 and 39 weeks ended November 2, 2019 and November 3, 2018, Condensed Consolidating Balance Sheets as of November 2, 2019, November 3, 2018 and February 2, 2019, and the related Condensed Consolidating Statements of Cash Flows for the 39 weeks ended November 2, 2019 and November 3, 2018 are presented on the following pages.
Condensed Consolidating Statement of Comprehensive Income
For the 13 Weeks Ended November 2, 2019
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
Net sales
$

 
$
2,044

 
$
5,245

 
$
(2,116
)
 
$
5,173

Credit card revenues (expense), net

 
(2
)
 
185

 

 
183

 
 
 
 
 
 
 
 
 
 
Cost of sales

 
(1,230
)
 
(3,992
)
 
2,116

 
(3,106
)
Selling, general and administrative expenses

 
(870
)
 
(1,332
)
 

 
(2,202
)
Gains on sale of real estate

 
8

 
9

 

 
17

Restructuring and other costs

 
(1
)
 
(12
)
 

 
(13
)
Operating income (loss)

 
(51
)
 
103

 

 
52

Benefit plan income, net

 
3

 
5

 

 
8

Settlement charges

 

 
(12
)
 

 
(12
)
Interest (expense) income, net:
 
 
 
 
 
 
 
 
 
External
3

 
(52
)
 
1

 

 
(48
)
Intercompany

 
(18
)
 
18

 

 

Equity in loss of subsidiaries
(3
)
 
(125
)
 

 
128

 

Income (loss) before income taxes

 
(243
)
 
115

 
128

 

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

 
30

 
(30
)
 

 
2

Net income (loss)
2

 
(213
)
 
85

 
128

 
2

Net loss attributable to noncontrolling interest

 

 

 

 

Net income (loss) attributable to
Macy's, Inc. shareholders
$
2

 
$
(213
)
 
$
85

 
$
128

 
$
2

Comprehensive income (loss)
$
(35
)
 
$
(249
)
 
$
65

 
$
184

 
$
(35
)
Comprehensive loss attributable to
noncontrolling interest

 

 

 

 

Comprehensive income (loss) attributable to
Macy's, Inc. shareholders
$
(35
)
 
$
(249
)
 
$
65

 
$
184

 
$
(35
)
Condensed Consolidating Statement of Comprehensive Income
For the 13 Weeks Ended November 3, 2018
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
Net sales
$

 
$
2,030

 
$
6,185

 
$
(2,811
)
 
$
5,404

Credit card revenues, net

 

 
185

 

 
185

 
 
 
 
 
 
 
 
 
 
Cost of sales

 
(1,266
)
 
(4,771
)
 
2,811

 
(3,226
)
Selling, general and administrative expenses

 
(883
)
 
(1,372
)
 

 
(2,255
)
Gains on sale of real estate

 
41

 
1

 

 
42

Restructuring and other costs

 

 
(3
)
 

 
(3
)
Operating income (loss)

 
(78
)
 
225

 

 
147

Benefit plan income, net

 
3

 
6

 

 
9

Settlement charges

 
(8
)
 
(15
)
 

 
(23
)
Interest (expense) income, net:
 
 
 
 
 
 
 
 


External
4

 
(64
)
 
1

 

 
(59
)
Intercompany

 
(18
)
 
18

 

 

Equity in earnings (loss) of subsidiaries
59

 
(58
)
 

 
(1
)
 

Income (loss) before income taxes
63

 
(223
)
 
235

 
(1
)
 
74

Federal, state and local income
tax benefit (expense)
(1
)
 
57

 
(68
)
 

 
(12
)
Net income (loss)
62

 
(166
)
 
167

 
(1
)
 
62

Net loss attributable to noncontrolling interest

 

 

 

 

Net income (loss) attributable to
Macy's, Inc. shareholders
$
62

 
$
(166
)
 
$
167

 
$
(1
)
 
$
62

Comprehensive income (loss)
$
(37
)
 
$
(257
)
 
$
106

 
$
151

 
$
(37
)
Comprehensive loss attributable to
noncontrolling interest

 

 

 

 

Comprehensive income (loss) attributable to
Macy's, Inc. shareholders
$
(37
)
 
$
(257
)
 
$
106

 
$
151

 
$
(37
)









Condensed Consolidating Statement of Comprehensive Income
For the 39 Weeks Ended November 2, 2019
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
Net sales
$

 
$
6,418

 
$
14,428

 
$
(4,623
)
 
$
16,223

Credit card revenues (expense), net

 
(8
)
 
539

 

 
531

 
 
 
 
 
 
 
 
 
 
Cost of sales

 
(3,913
)
 
(10,615
)
 
4,623

 
(9,905
)
Selling, general and administrative expenses
1

 
(2,544
)
 
(3,946
)
 

 
(6,489
)
Gains on sale of real estate

 
32

 
35

 

 
67

Impairment, restructuring and other costs

 
(1
)
 
(15
)
 

 
(16
)
Operating income (loss)
1

 
(16
)
 
426

 

 
411

Benefit plan income, net

 
9

 
14

 

 
23

Settlement charges

 

 
(12
)
 

 
(12
)
Interest (expense) income, net:
 
 
 
 
 
 
 
 
 
External
11

 
(157
)
 
3

 

 
(143
)
Intercompany

 
(55
)
 
55

 

 

Equity in earnings (loss) of subsidiaries
212

 
(264
)
 

 
52

 

Income (loss) before income taxes
224

 
(483
)
 
486

 
52

 
279

Federal, state and local income
tax benefit (expense)

 
61

 
(116
)
 

 
(55
)
Net income (loss)
224

 
(422
)
 
370

 
52

 
224

Net loss attributable to noncontrolling interest

 

 

 

 

Net income (loss) attributable to
Macy's, Inc. shareholders
$
224

 
$
(422
)
 
$
370

 
$
52

 
$
224

Comprehensive income (loss)
$
198

 
$
(448
)
 
$
358

 
$
90

 
$
198

Comprehensive loss attributable to
noncontrolling interest

 

 

 

 

Comprehensive income (loss) attributable to
Macy's, Inc. shareholders
$
198

 
$
(448
)
 
$
358

 
$
90

 
$
198












Condensed Consolidating Statement of Comprehensive Income
For the 39 Weeks Ended November 3, 2018
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
Net sales
$

 
$
6,110

 
$
16,462

 
$
(6,056
)
 
$
16,516

Credit card revenues (expense), net

 
(3
)
 
531

 

 
528

 
 
 
 
 
 
 
 
 
 
Cost of sales

 
(3,857
)
 
(12,126
)
 
6,056

 
(9,927
)
Selling, general and administrative expenses

 
(2,522
)
 
(3,979
)
 

 
(6,501
)
Gains on sale of real estate

 
83

 
28

 

 
111

Impairment, restructuring and other costs

 

 
(39
)
 

 
(39
)
Operating income (loss)

 
(189
)
 
877

 

 
688

Benefit plan income, net

 
12

 
19

 

 
31

Settlement charges
(5
)
 
(24
)
 
(44
)
 

 
(73
)
Interest (expense) income, net:
 
 
 
 
 
 
 
 
 
External
13

 
(203
)
 
3

 

 
(187
)
Intercompany

 
(54
)
 
54

 

 

Losses on early retirement of debt

 
(5
)
 

 

 
(5
)
Equity in earnings of subsidiaries
362

 
51

 

 
(413
)
 

Income (loss) before income taxes
370

 
(412
)
 
909

 
(413
)
 
454

Federal, state and local income
tax benefit (expense)
(2
)
 
123

 
(217
)
 

 
(96
)
Net income (loss)
368

 
(289
)
 
692

 
(413
)
 
358

Net loss attributable to noncontrolling interest

 

 
10

 

 
10

Net income (loss) attributable to
Macy's, Inc. shareholders
$
368

 
$
(289
)
 
$
702

 
$
(413
)
 
$
368

Comprehensive income (loss)
$
296

 
$
(357
)
 
$
646

 
$
(299
)
 
$
286

Comprehensive loss attributable to
noncontrolling interest

 

 
10

 

 
10

Comprehensive income (loss) attributable to
Macy's, Inc. shareholders
$
296

 
$
(357
)
 
$
656

 
$
(299
)
 
$
296



Condensed Consolidating Balance Sheet
As of November 2, 2019
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
ASSETS:
 
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
42

 
$
73

 
$
186

 
$

 
$
301

Receivables

 
30

 
145

 

 
175

Merchandise inventories

 
3,145

 
4,111

 

 
7,256

Income taxes
96

 

 

 
(95
)
 
1

Prepaid expenses and other current assets

 
126

 
442

 

 
568

Total Current Assets
138

 
3,374

 
4,884

 
(95
)
 
8,301

Property and Equipment – net

 
3,174

 
3,384

 

 
6,558

Right of Use Assets

 
653

 
1,943

 

 
2,596

Goodwill

 
3,326

 
582

 

 
3,908

Other Intangible Assets – net

 
5

 
435

 

 
440

Other Assets

 
49

 
695

 

 
744

Deferred Income Taxes
9

 

 

 
(9
)
 

Intercompany Receivable
2,923

 

 
454

 
(3,377
)
 

Investment in Subsidiaries
3,231

 
2,812

 

 
(6,043
)
 

Total Assets
$
6,301

 
$
13,393

 
$
12,377

 
$
(9,524
)
 
$
22,547

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

 
$
6

 
$

 
$

 
$
6

Merchandise accounts payable

 
1,521

 
1,906

 

 
3,427

Accounts payable and accrued liabilities
216

 
835

 
1,995

 

 
3,046

Income taxes

 
51

 
44

 
(95
)
 

Total Current Liabilities
216

 
2,413

 
3,945

 
(95
)
 
6,479

Long-Term Debt

 
4,677

 

 


 
4,677

Long-Term Lease Liabilities

 
589

 
2,230

 

 
2,819

Intercompany Payable

 
3,377

 

 
(3,377
)
 

Deferred Income Taxes

 
654

 
555

 
(9
)
 
1,200

Other Liabilities
28

 
377

 
910

 

 
1,315

Shareholders' Equity:
 
 
 
 
 
 
 
 
 
Macy's, Inc.
6,057

 
1,306

 
4,737

 
(6,043
)
 
6,057

Noncontrolling Interest

 

 

 

 

Total Shareholders' Equity
6,057

 
1,306

 
4,737

 
(6,043
)
 
6,057

Total Liabilities and Shareholders' Equity
$
6,301

 
$
13,393

 
$
12,377

 
$
(9,524
)
 
$
22,547




Condensed Consolidating Balance Sheet
As of November 3, 2018
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
ASSETS:
 
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
426

 
$
74

 
$
236

 
$

 
$
736

Receivables
1

 
25

 
154

 

 
180

Merchandise inventories

 
3,112

 
4,035

 

 
7,147

Income taxes
81

 

 

 
(71
)
 
10

Prepaid expenses and other current assets

 
139

 
455

 

 
594

Total Current Assets
508

 
3,350

 
4,880

 
(71
)
 
8,667

Property and Equipment – net

 
3,244

 
3,328

 

 
6,572

Goodwill

 
3,326

 
582

 

 
3,908

Other Intangible Assets – net

 
40

 
441

 

 
481

Other Assets

 
39

 
694

 

 
733

Deferred Income Taxes
11

 

 

 
(11
)
 

Intercompany Receivable
1,725

 

 
882

 
(2,607
)
 

Investment in Subsidiaries
3,639

 
3,028

 

 
(6,667
)
 

Total Assets
$
5,883

 
$
13,027

 
$
10,807

 
$
(9,356
)
 
$
20,361

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

 
$
42

 
$
23

 
$

 
$
65

Merchandise accounts payable

 
1,515

 
1,866

 

 
3,381

Accounts payable and accrued liabilities
192

 
874

 
1,932

 

 
2,998

Income taxes

 
40

 
31

 
(71
)
 

Total Current Liabilities
192

 
2,471

 
3,852

 
(71
)
 
6,444

Long-Term Debt

 
5,453

 
16

 

 
5,469

Intercompany Payable

 
2,607

 

 
(2,607
)
 

Deferred Income Taxes

 
619

 
577

 
(11
)
 
1,185

Other Liabilities
24

 
431

 
1,163

 

 
1,618

Shareholders' Equity:
 
 
 
 
 
 
 
 
 
Macy's, Inc.
5,667

 
1,446

 
5,221

 
(6,667
)
 
5,667

Noncontrolling Interest

 

 
(22
)
 

 
(22
)
Total Shareholders' Equity
5,667

 
1,446

 
5,199

 
(6,667
)
 
5,645

Total Liabilities and Shareholders' Equity
$
5,883

 
$
13,027

 
$
10,807

 
$
(9,356
)
 
$
20,361







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




Condensed Consolidating Statement of Cash Flows
For the 39 Weeks Ended November 2, 2019
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
Net income (loss)
$
224

 
$
(422
)
 
$
370

 
$
52

 
$
224

Impairment, restructuring and other costs

 
1

 
15

 

 
16

Settlement charges

 

 
12

 

 
12

Equity in loss (earnings) of subsidiaries
(212
)
 
264

 

 
(52
)
 

Dividends received from subsidiaries
819

 

 

 
(819
)
 

Depreciation and amortization

 
251

 
474

 

 
725

Gains on sale of real estate

 
(32
)
 
(35
)
 

 
(67
)
Changes in assets, liabilities and other items not separately identified
(99
)
 
(139
)
 
(500
)
 

 
(738
)
Net cash provided (used) by operating activities
732

 
(77
)
 
336

 
(819
)
 
172

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

 
(179
)
 
(560
)
 

 
(739
)
Other, net

 
(2
)
 
12

 

 
10

Net cash used by investing activities

 
(181
)
 
(548
)
 

 
(729
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Debt repaid, including debt issuance costs

 
(45
)
 

 

 
(45
)
Dividends paid
(349
)
 

 
(819
)
 
819

 
(349
)
Issuance of common stock, net of common stock acquired
5

 

 

 

 
5

Intercompany activity, net
(1,161
)
 
239

 
922

 

 

Other, net
(74
)
 
73

 
50

 

 
49

Net cash provided (used) by financing activities
(1,579
)
 
267

 
153

 
819

 
(340
)
Net increase (decrease) in cash, cash equivalents and restricted cash
(847
)
 
9

 
(59
)
 

 
(897
)
Cash, cash equivalents and restricted cash at beginning of period
889

 
64

 
295

 

 
1,248

Cash, cash equivalents and restricted cash at end of period
$
42

 
$
73

 
$
236

 
$

 
$
351









Condensed Consolidating Statement of Cash Flows
For the 39 Weeks Ended November 3, 2018
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
Net income (loss)
$
368

 
$
(289
)
 
$
692

 
$
(413
)
 
$
358

Impairment, restructuring and other costs

 

 
39

 

 
39

Settlement charges
5

 
24

 
44

 

 
73

Equity in earnings of subsidiaries
(362
)
 
(51
)
 

 
413

 

Dividends received from subsidiaries
689

 

 

 
(689
)
 

Depreciation and amortization

 
250

 
468

 

 
718

Gains on sale of real estate

 
(83
)
 
(28
)
 

 
(111
)
Changes in assets, liabilities and other items not separately identified
(191
)
 
115

 
(571
)
 
(1
)
 
(648
)
Net cash provided (used) by operating activities
509

 
(34
)
 
644

 
(690
)
 
429

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

 
(98
)
 
(458
)
 

 
(556
)
Other, net

 
(15
)
 
(29
)
 
51

 
7

Net cash used by investing activities

 
(113
)
 
(487
)
 
51

 
(549
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Debt repaid

 
(310
)
 
(1
)
 
(50
)
 
(361
)
Dividends paid
(347
)
 

 
(689
)
 
689

 
(347
)
Issuance of common stock
41

 

 

 

 
41

Proceeds from noncontrolling interest

 

 
7

 

 
7

Intercompany activity, net
(803
)
 
378

 
425

 

 

Other, net
(83
)
 
74

 
53

 

 
44

Net cash provided (used) by financing activities
(1,192
)
 
142

 
(205
)
 
639

 
(616
)
Net decrease in cash, cash equivalents and restricted cash
(683
)
 
(5
)
 
(48
)
 

 
(736
)
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
$
426

 
$
74

 
$
277

 
$

 
$
777