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Condensed Consolidating Financial Information
12 Months Ended
Jan. 28, 2017
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, "Financing," 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 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 Statements of Comprehensive Income for 2016, 2015 and 2014, Consolidating Balance Sheets as of January 28, 2017 and January 30, 2016, and the related Condensed Consolidating Statements of Cash Flows for 2016, 2015, and 2014 are presented on the following pages.
MACY’S, INC.
Condensed Consolidating Statement of Comprehensive Income
For 2016
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
Net sales
$
—

 
$
10,677

 
$
23,436

 
$
(8,335
)
 
$
25,778

Cost of sales
—

 
(6,787
)
 
(17,169
)
 
8,335

 
(15,621
)
Gross margin
—

 
3,890

 
6,267

 
—

 
10,157

Selling, general and administrative expenses
(2
)
 
(3,739
)
 
(4,524
)
 
—

 
(8,265
)
Impairments, store closing and other costs
—

 
(295
)
 
(184
)
 
—

 
(479
)
Settlement charges
—

 
(34
)
 
(64
)
 
—

 
(98
)
Operating income (loss)
(2
)
 
(178
)
 
1,495

 
—

 
1,315

Interest (expense) income, net:
 
 
 
 
 
 
 
 
 
External
2

 
(366
)
 
1

 
—

 
(363
)
Intercompany
—

 
(200
)
 
200

 
—

 
—

Equity in earnings of subsidiaries
619

 
255

 
—

 
(874
)
 
—

Income (loss) before income taxes
619

 
(489
)
 
1,696

 
(874
)
 
952

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

 
281

 
(622
)
 
—

 
(341
)
Net income (loss)
619

 
(208
)
 
1,074

 
(874
)
 
611

Net loss attributable to noncontrolling interest
—

 
—

 
8

 
—

 
8

Net income (loss) attributable to
Macy's, Inc. shareholders
$
619

 
$
(208
)
 
$
1,082

 
$
(874
)
 
$
619

Comprehensive income (loss)
$
766

 
$
(61
)
 
$
1,153

 
$
(1,100
)
 
$
758

Comprehensive loss attributable to
noncontrolling interest
—

 
—

 
8

 
—

 
8

Comprehensive income (loss) attributable to
Macy's, Inc. shareholders
$
766

 
$
(61
)
 
$
1,161

 
$
(1,100
)
 
$
766


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 (loss) 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 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 Balance Sheet
As of January 28, 2017
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
ASSETS:
 
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
938

 
$
81

 
$
278

 
$
—

 
$
1,297

Receivables
—

 
169

 
353

 
—

 
522

Merchandise inventories
—

 
2,565

 
2,834

 
—

 
5,399

Prepaid expenses and other current assets
—

 
84

 
324

 
—

 
408

Total Current Assets
938

 
2,899

 
3,789

 
—

 
7,626

Property and Equipment – net
—

 
3,397

 
3,620

 
—

 
7,017

Goodwill
—

 
3,315

 
582

 
—

 
3,897

Other Intangible Assets – net
—

 
51

 
447

 
—

 
498

Other Assets
—

 
47

 
766

 
—

 
813

Deferred Income Taxes
26

 
—

 
—

 
(26
)
 
—

Intercompany Receivable
375

 
—

 
2,428

 
(2,803
)
 
—

Investment in Subsidiaries
3,137

 
3,540

 
—

 
(6,677
)
 
—

Total Assets
$
4,476

 
$
13,249

 
$
11,632

 
$
(9,506
)
 
$
19,851

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

 
$
306

 
$
3

 
$
—

 
$
309

Merchandise accounts payable
—

 
590

 
833

 
—

 
1,423

Accounts payable and accrued liabilities
15

 
1,064

 
2,484

 
—

 
3,563

Income taxes
71

 
16

 
265

 
—

 
352

Total Current Liabilities
86

 
1,976

 
3,585

 
—

 
5,647

Long-Term Debt
—

 
6,544

 
18

 
—

 
6,562

Intercompany Payable
—

 
2,803

 
—

 
(2,803
)
 
—

Deferred Income Taxes
—

 
688

 
781

 
(26
)
 
1,443

Other Liabilities
66

 
500

 
1,311

 
—

 
1,877

Shareholders’ Equity:
 
 
 
 
 
 
 
 


Macy's, Inc.
4,323

 
738

 
5,939

 
(6,677
)
 
4,323

Noncontrolling Interest
—

 
—

 
(1
)
 
—

 
(1
)
Total Shareholders’ Equity
4,323

 
738

 
5,938

 
(6,677
)
 
4,322

Total Liabilities and Shareholders’ Equity
$
4,475

 
$
13,249

 
$
11,633

 
$
(9,506
)
 
$
19,851



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 Cash Flows
For 2016
(millions)
 
 
Parent
 
Subsidiary
Issuer
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
Net income (loss)
$
619

 
$
(208
)
 
$
1,074

 
$
(874
)
 
$
611

Impairments, store closing and other costs
—

 
295

 
184

 
—

 
479

Settlement charges
—

 
34

 
64

 
—

 
98

Equity in earnings of subsidiaries
(619
)
 
(255
)
 
—

 
874

 
—

Dividends received from subsidiaries
957

 
575

 
—

 
(1,532
)
 
—

Depreciation and amortization
—

 
407

 
651

 
—

 
1,058

(Increase) decrease in working capital
110

 
(482
)
 
92

 
—

 
(280
)
Other, net
28

 
51

 
(244
)
 
—

 
(165
)
Net cash provided by
operating activities
1,095

 
417

 
1,821

 
(1,532
)
 
1,801

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

 
12

 
(251
)
 
—

 
(239
)
Other, net
—

 
32

 
20

 
—

 
52

Net cash provided (used) by investing activities
—

 
44

 
(231
)
 
—

 
(187
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Debt repaid, net of debt issued
—

 
(750
)
 
1

 
—

 
(749
)
Dividends paid
(459
)
 
—

 
(1,532
)
 
1,532

 
(459
)
Common stock acquired, net of
issuance of common stock
(280
)
 
—

 
—

 
—

 
(280
)
Proceeds from noncontrolling interest
—

 
—

 
4

 
—

 
4

Intercompany activity, net
(144
)
 
255

 
(111
)
 
—

 
—

Other, net
(15
)
 
24

 
49

 
—

 
58

Net cash used by
financing activities
(898
)
 
(471
)
 
(1,589
)
 
1,532

 
(1,426
)
Net increase (decrease) in cash
and cash equivalents
197

 
(10
)
 
1

 
—

 
188

Cash and cash equivalents at
beginning of period
741

 
91

 
277

 
—

 
1,109

Cash and cash equivalents at
end of period
$
938

 
$
81

 
$
278

 
$
—

 
$
1,297




 
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 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 (disposition) 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 repaid, net of debt issued
—

 
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