Document and Entity Information
Document and Entity Information | 3 Months Ended |
May 05, 2018shares | |
Document and Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | May 5, 2018 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | Q1 |
Trading Symbol | M |
Entity Registrant Name | Macy's, Inc. |
Entity Central Index Key | 794,367 |
Current Fiscal Year End Date | --02-02 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 306,370,666 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | |
May 05, 2018 | Apr. 29, 2017 | |
Income Statement [Abstract] | ||
Net sales | $ 5,541 | $ 5,350 |
Net Earnings from Credit Operations | 157 | 161 |
Cost of sales | (3,382) | (3,303) |
Selling, general and administrative expenses | (2,083) | (2,057) |
Gains on sale of real estate | 24 | 68 |
Impairments and other costs | (19) | 0 |
Operating income (loss) | 238 | 219 |
Non-Service Cost Pension, SERP and OPEB | 11 | 13 |
Interest expense | (71) | (86) |
Net premiums on early retirement of debt | 0 | (3) |
Interest income | 5 | 2 |
Income (loss) before income taxes | 183 | 145 |
Federal, state and local income tax expense | (52) | (68) |
Net income (loss) | 131 | 77 |
Net loss attributable to noncontrolling interest | 8 | 1 |
Net income (loss) attributable to Macy's, Inc. shareholders | $ 139 | $ 78 |
Basic earnings per share attributable to Macy's, Inc. shareholders | $ 0.45 | $ 0.26 |
Diluted earnings per share attributable to Macy's, Inc. shareholders | $ 0.45 | $ 0.26 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
May 05, 2018 | Apr. 29, 2017 | |
Net income (loss) | $ 131 | $ 77 |
Amortization of net actuarial loss and prior service credit on post employment and postretirement benefit plans, before tax | 9 | 9 |
Tax effect related to items of other comprehensive income (loss) | (2) | (3) |
Total other comprehensive income (loss), net of tax effect | 7 | 6 |
Comprehensive income (loss) | 138 | 83 |
Comprehensive loss attributable to noncontrolling interest | 8 | 1 |
Comprehensive income (loss) attributable to Macy's, Inc. shareholders | $ 146 | $ 84 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | May 05, 2018 | Feb. 03, 2018 | Apr. 29, 2017 |
Current Assets: | |||
Cash and cash equivalents | $ 1,531 | $ 1,455 | $ 1,201 |
Receivables | 250 | 363 | 345 |
Merchandise inventories | 5,291 | 5,178 | 5,626 |
Prepaid expenses and other current assets | 638 | 650 | 634 |
Total Current Assets | 7,710 | 7,646 | 7,806 |
Property and Equipment - net | 6,575 | 6,672 | 6,886 |
Goodwill | 3,908 | 3,897 | 3,897 |
Other Intangible Assets - net | 486 | 488 | 496 |
Other Assets | 889 | 880 | 793 |
Total Assets | 19,568 | 19,583 | 19,878 |
Current Liabilities: | |||
Short-term debt | 25 | 22 | 313 |
Merchandise accounts payable | 2,045 | 1,590 | 2,028 |
Accounts payable and accrued liabilities | 2,695 | 3,271 | 3,042 |
Income taxes | 312 | 296 | 355 |
Total Current Liabilities | 5,077 | 5,179 | 5,738 |
Long-Term Debt | 5,857 | 5,861 | 6,412 |
Deferred Income Taxes | 1,169 | 1,148 | 1,522 |
Other Liabilities | 1,664 | 1,662 | 1,846 |
Shareholders' Equity, Macy's, Inc. | 5,821 | 5,745 | 4,362 |
Shareholders' Equity, noncontrolling interest | (20) | (12) | (2) |
Total Shareholders’ Equity | 5,801 | 5,733 | 4,360 |
Total Liabilities and Shareholders' Equity | $ 19,568 | $ 19,583 | $ 19,878 |
Consolidated Balance Sheets (pa
Consolidated Balance Sheets (parenthetical) - USD ($) $ in Millions | May 05, 2018 | Feb. 03, 2018 | Apr. 29, 2017 |
Accumulated depreciation | $ 4,765 | $ 4,610 | $ 5,013 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
May 05, 2018 | Apr. 29, 2017 | |
Net income (loss) | $ 131 | $ 77 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Impairments and other costs | 19 | 0 |
Depreciation and amortization | 235 | 243 |
Stock-based compensation expense | 17 | 13 |
Gains on sale of real estate | (24) | (68) |
Changes in assets and liabilities: | ||
Decrease in receivables | 105 | 170 |
Increase in merchandise inventories | (115) | (227) |
Increase in prepaid expenses and other current assets | (20) | (16) |
Increase in merchandise accounts payable | 415 | 573 |
Decrease in accounts payable, accrued liabilities and other items not separately identified | (444) | (545) |
Increase in current income taxes | 25 | 3 |
Increase in deferred income taxes | 19 | 41 |
Change in Other assets and liabilities not separately identified | (41) | (27) |
Net cash provided (used) by operating activities | 322 | 237 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (132) | (117) |
Capitalized software | (58) | (60) |
Disposition of property and equipment | 23 | 96 |
Other, net | 11 | 21 |
Net cash used by investing activities | (156) | (60) |
Cash flows from financing activities: | ||
Debt repaid | (3) | (152) |
Dividends paid | (116) | (115) |
Increase (decrease) in outstanding checks | (10) | (10) |
Acquisition of treasury stock | 0 | (1) |
Issuance of common stock | 28 | 2 |
Proceeds from noncontrolling interest | 2 | 3 |
Net cash provided (used) by financing activities | (99) | (273) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | 67 | (96) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, beginning of period | 1,513 | 1,334 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, end of period | 1,580 | 1,238 |
Supplemental cash flow information: | ||
Interest paid | 65 | 76 |
Interest received | 5 | 2 |
Income taxes paid (net of refunds received) | $ 8 | $ 16 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
May 05, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Nature of Operations Macy's, Inc. and subsidiaries (the "Company") is an omnichannel retail organization operating stores, websites and mobile applications under three brands (Macy's, Bloomingdale's and bluemercury) that sell a wide range of merchandise, including apparel and accessories (men's, women's and children's), cosmetics, home furnishings and other consumer goods. The Company's operations are conducted through approximately 850 Macy's, Macy's Backstage, Bloomingdale's, Bloomingdale's The Outlet, bluemercury and STORY in 44 states, the District of Columbia, Guam and Puerto Rico, as well as macys.com, bloomingdales.com and bluemercury.com. In addition, Bloomingdale's in Dubai, United Arab Emirates and Al Zahra, Kuwait are operated under a license agreement with Al Tayer Insignia, a company of Al Tayer Group, LLC. A description of the Company's significant accounting policies is included in the Company's Annual Report on Form 10-K for the fiscal year ended February 3, 2018 (the "2017 10-K"). The accompanying Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and notes thereto in the 2017 10-K. Use of Estimates The preparation of financial statements in conformity with United States generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates and assumptions are subject to inherent uncertainties, which may result in actual amounts differing from reported amounts. The Consolidated Financial Statements for the 13 weeks ended May 5, 2018 and April 29, 2017 , in the opinion of management, include all adjustments (consisting only of normal recurring adjustments) considered necessary to present fairly, in all material respects, the consolidated financial position and results of operations of the Company. Seasonality Because of the seasonal nature of the retail business, the results of operations for the 13 weeks ended May 5, 2018 and April 29, 2017 (which do not include the Christmas season) are not necessarily indicative of such results for the full fiscal year. Reclassifications Certain reclassifications were made to prior years’ amounts to conform to the classifications of such amounts in the most recent years and adoption of new accounting standards as discussed in more detail below. Comprehensive Income Total comprehensive income represents the change in equity during a period from sources other than transactions with shareholders and, as such, includes net income. For the Company, the only other components of total comprehensive income for the 13 weeks ended May 5, 2018 and April 29, 2017 relate to post employment and postretirement plan items. Settlement charges incurred are included as a separate component of operating expenses in the Consolidated Statements of Income. Amortization reclassifications out of accumulated other comprehensive loss are included in the computation of net periodic benefit cost (income) and are included in selling, general and administrative expenses on the Consolidated Statements of Income. See Note 4, "Benefit Plans," for further information. Revenue Revenue is recognized when customers obtain control of goods and services promised by the Company. The amount of revenue recognized is based on the amount that reflects the consideration that is expected to be received in exchange for those respective goods and services. The Company's revenue generating activities include the following: Retail Sales Retail sales include merchandise sales, licensed department income, sales of private brand goods directly to third party retailers and sales of excess inventory to third parties. Sales of merchandise are recorded at the time of shipment to the customer and are reported net of estimated merchandise returns and certain customer incentives. Commissions earned on sales generated by licensed departments are included as a component of total net sales and are recognized as revenue at the time merchandise is sold to customers. Service revenues (e.g., alteration and cosmetic services) are recorded at the time the customer receives the benefit of the service. The Company has elected to present sales taxes on a net basis and, as such, sales taxes are included in Accounts Payable and Accrued Liabilities until remitted to the taxing authorities. For each of the 13 weeks ended May 5, 2018 and April 29, 2017 , Macy's accounted for 88% of the Company's net sales. Disaggregation of the Company's net sales by family of business for the 13 weeks ended May 5, 2018 and April 29, 2017 were as follows: 13 weeks ended Net sales by family of business May 5, 2018 April 29, 2017 (millions) Women's Accessories, Intimate Apparel, Shoes, Cosmetics and Fragrances $ 2,165 $ 2,069 Women's Apparel 1,354 1,333 Men's and Children's 1,175 1,115 Home/Other (a) 847 833 Total $ 5,541 $ 5,350 (a) Other primarily includes restaurant sales and breakage income from unredeemed gift cards. Merchandise Returns The Company estimates merchandise returns using historical data and recognizes an allowance that reduces net sales and cost of sales. The liability for merchandise returns is included in Accounts Payable and Accrued Liabilities on the Company's consolidated balance sheets and was $298 million , $291 million and $338 million as of May 5, 2018, February 3, 2018 and April 29, 2017, respectively. Included in Prepaid Expenses and Other Current Assets is an asset totaling $204 million , $201 million and $236 million as of May 5, 2018, February 3, 2018 and April 29, 2017, respectively, for the right to recover products from customers associated with estimated merchandise returns. Credit Card Revenues, net In 2005, the Company entered into an arrangement with Citibank to sell the Company's private label and co-branded credit cards ("Credit Card Program"). Subsequent to this initial arrangement and associated amendments, in 2014, the Company entered into an amended and restated Credit Card Program Agreement (the "Program Agreement") with Citibank. As part of the Program Agreement, the Company receives payments for providing a combination of interrelated services and intellectual property to Citibank in support of the underlying Credit Card Program. Revenue based on the spending activity of the underlying accounts is recognized as the respective card purchases occur and the Company’s profit share is recognized based on the performance of the underlying portfolio. Revenue associated with the establishment of new credit accounts and assisting in the receipt of payments for existing accounts is recognized as such activities occur. Credit card revenues include finance charges, late fees and other revenue generated by the Company’s Credit Card Program, net of fraud losses and expenses associated with establishing new accounts. Customer Loyalty Programs The Company maintains customer loyalty programs in which customers earn points based on their purchases. Under the Macy’s brand, points are earned based on customers’ spending on Macy’s private label and co-branded credit cards as well as non-proprietary cards during certain tender-neutral promotional events. Under the Bloomingdale’s brand, the Company offers a tender neutral points-based program. The Company recognizes the estimated net amount of the rewards that will be earned and redeemed as a reduction to net sales at the time of the initial transaction and as tender when the points are subsequently redeemed by a customer. The liability for customer loyalty programs is included in Accounts Payable and Accrued Liabilities on the Company's consolidated balance sheets and was $71 million , $73 million and $60 million as of May 5, 2018, February 3, 2018 and April 29, 2017, respectively. Gift Cards The Company only offers no-fee, non-expiring gift cards to its customers. At the time gift cards are sold, no revenue is recognized; rather, the Company records an accrued liability to customers. The liability is relieved and revenue is recognized equal to the amount redeemed at the time gift cards are redeemed for merchandise. The Company records revenue from unredeemed gift cards (breakage) in net sales in proportion over the time period gift cards are actually redeemed. At least three years of historical data, updated annually, is used to determine actual redemption patterns. The liability for unredeemed gift cards is included in Accounts Payable and Accrued Liabilities on the Company's consolidated balance sheets and was $656 million , $821 million and $651 million as of May 5, 2018, February 3, 2018 and April 29, 2017, respectively. Newly Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers, which established principles to report useful information to financial statements users about the nature, timing and uncertainty of revenue from contracts with customers. ASU No. 2014-09 along with various related amendments comprise ASC Topic 606, Revenue from Contracts with Customers, and provide guidance that is applicable to all contracts with customers regardless of industry-specific or transaction-specific fact patterns. The new standard and its related updates were adopted by the Company on February 4, 2018. On the effective date, the Company elected to apply the new guidance retrospectively to each prior reporting period presented which resulted in an increase to retained earnings of $72 million and $54 million at the beginning of fiscal 2018 and fiscal 2017, respectively. Overall, the new standard did not have a material impact to the results of the Company's operations or consolidated statements of financial position, but impacted the presentation and timing of certain revenue transactions. Specifically, the changes included gross presentation of the Company's estimates for future sales returns and related recoverable assets, presenting income from credit operations, gift card breakage income, and certain loyalty program income as separate components of revenue and recognizing gift card breakage revenue over the period of redemption for gift cards associated with certain returns. The Company's evaluation of the new standards included a review of certain vendor arrangements to determine whether the Company acts as principal or agent in such arrangements and such evaluation did not result in any material changes in gross versus net presentation as a result of the adoption of the new standards. In March 2017, the FASB issued ASU No. 2017-07, Compensation-Retirement Benefits (ASC Topic 715), which requires employers to disaggregate the service cost component from other components of net periodic benefit costs and to disclose the amounts of net periodic benefit costs that are included in each income statement line item. The standard requires employers to report the service cost component in the same line item as other compensation costs and to report the other components of net periodic benefit costs (which include interest costs, expected return on plan assets, amortization of prior service cost or credits and actuarial gains and losses) separately and outside a subtotal of operating income. The Company adopted this standard effective February 4, 2018 on a retrospective basis and has recognized its net periodic benefit costs, excluding service costs, in Benefit Plan Income, net on its consolidated statements of income. In 2016 the FASB issued ASU No. 2016-18, Statement of Cash Flows (ASC Topic 230): Restricted Cash, and ASU No. 2016-15, Statement of Cash Flows (ASC Topic 230): Classification of Certain Cash Receipts and Cash Payments. These standards were issued to resolve numerous diversities in practice with regard to the presentation and classification of certain cash receipts and payments in the statement of cash flows. The standards were effective for the Company on February 4, 2018, and were adopted using a retrospective transition method to each period presented. As a result of these standards, the Company included its beginning-of-period restricted cash balances of $58 million and end-of-period restricted cash balances of $49 million when reconciling the consolidated statement of cash flow movement for the first quarter of 2018. Similarly, for the first quarter of 2017, the Company included its beginning-of-period restricted cash balances of $37 million and end-of-period restricted cash balances of $37 million . In addition to these changes, the Company changed the classification of $3 million of cash payments for the prepayment of debt from an operating outflow to a financing outflow for the first quarter of 2017. In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which allows for stranded tax effects in accumulated other comprehensive income resulting from H.R. 1, originally known as the “Tax Cuts and Jobs Act,” to be reclassified to retained earnings. The Company early adopted this standard during the first quarter of 2018 and, as a result, reclassified $164 million of stranded tax effects to retained earnings. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
May 05, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Attributable to Macy's, Inc. Shareholders The following tables set forth the computation of basic and diluted earnings per share attributable to Macy's, Inc. shareholders: 13 weeks ended May 5, 2018 April 29, 2017 Net Shares Net Shares (millions, except per share data) Net income attributable to Macy's, Inc. shareholders and $ 139 305.7 $ 78 304.3 Shares to be issued under deferred 0.9 0.7 $ 139 306.6 $ 78 305.0 Basic earnings per share attributable to $ .45 $ .26 Effect of dilutive securities: Stock options, restricted stock and restricted stock units 2.8 1.9 $ 139 309.4 $ 78 306.9 Diluted earnings per share attributable to $ .45 $ .26 In addition to the stock options and restricted stock units reflected in the foregoing tables, stock options to purchase 15.7 million shares of common stock and restricted stock units relating to 2.5 million shares of common stock were outstanding at May 5, 2018 , but were not included in the computation of diluted earnings per share because their inclusion would have been antidilutive or they were subject to performance conditions that had not been met. In addition to the stock options and restricted stock units reflected in the foregoing tables, stock options to purchase 16.2 million shares of common stock and restricted stock units relating to 1.6 million shares of common stock were outstanding at April 29, 2017 , but were not included in the computation of diluted earnings per share because their inclusion would have been antidilutive or they were subject to performance conditions that had not been met. |
Financing Activities
Financing Activities | 3 Months Ended |
May 05, 2018 | |
Financing Activities [Abstract] | |
Financing Activities | Financing Activities The following table shows the detail of debt repayments: 13 weeks ended May 5, 2018 April 29, 2017 (millions) 6.375% Senior notes due 2037 $ — $ 135 6.7% Senior debentures due 2034 — 11 9.5% amortizing debentures due 2021 2 2 9.75% amortizing debentures due 2021 1 1 $ 3 $ 149 During the 13 weeks ended April 29, 2017 , the Company repurchased $146 million face value of senior notes and debentures. The debt repurchases were made in the open market for a total cost of $149 million , including expenses related to the transactions. Such repurchases resulted in the recognition of additional interest expense of $3 million during the 13 weeks ended April 29, 2017 . This additional interest expense is presented as premium on early retirement of debt on the consolidated statements of income. |
Benefit Plans
Benefit Plans | 3 Months Ended |
May 05, 2018 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | |
Benefit Plans | Benefit Plans The Company has defined contribution plans which cover substantially all employees who work 1,000 hours or more in a year. In addition, the Company has a funded defined benefit plan ("Pension Plan") and an unfunded defined benefit supplementary retirement plan ("SERP"), which provides benefits, for certain employees, in excess of qualified plan limitations. Effective January 1, 2012, the Pension Plan was closed to new participants, with limited exceptions, and effective January 2, 2012, the SERP was closed to new participants. In February 2013, the Company announced changes to the Pension Plan and SERP whereby eligible employees no longer earn future pension service credits after December 31, 2013, with limited exceptions. All retirement benefits attributable to service in subsequent periods are provided through defined contribution plans. In addition, certain retired employees currently are provided with specified health care and life insurance benefits ("Postretirement Obligations"). Eligibility requirements for such benefits vary, but generally state that benefits are available to eligible employees who were hired prior to a certain date and retire after a certain age with specified years of service. Certain employees are subject to having such benefits modified or terminated. The defined contribution plan expense and actuarially determined components of the net periodic benefit cost (income) associated with the defined benefit plans are as follows: 13 weeks ended May 5, 2018 April 29, 2017 (millions) 401(k) Qualified Defined Contribution Plan $ 23 $ 21 Non-Qualified Defined Contribution Plan $ — $ — Pension Plan Service cost $ 2 $ 1 Interest cost 26 27 Expected return on assets (53 ) (56 ) Recognition of net actuarial loss 8 8 Amortization of prior service credit — — $ (17 ) $ (20 ) Supplementary Retirement Plan Service cost $ — $ — Interest cost 6 6 Recognition of net actuarial loss 2 2 Amortization of prior service cost — — $ 8 $ 8 Total Retirement Expense $ 14 $ 9 Postretirement Obligations Service cost $ — $ — Interest cost 1 1 Recognition of net actuarial gain (1 ) (1 ) Amortization of prior service credit — — $ — $ — |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
May 05, 2018 | |
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table shows the Company's financial assets that are required to be measured at fair value on a recurring basis, by level within the hierarchy as defined by applicable accounting standards: May 5, 2018 April 29, 2017 Fair Value Measurements Fair Value Measurements Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (millions) Marketable equity and debt securities $ 96 $ 25 $ 71 $ — $ 90 $ 21 $ 69 $ — Other financial instruments not measured at fair value on a recurring basis include cash and cash equivalents, receivables, certain short-term investments and other assets, short-term debt, merchandise accounts payable, accounts payable and accrued liabilities and long-term debt. With the exception of long-term debt, the carrying amount of these financial instruments approximates fair value because of the short maturity of these instruments. The fair values of long-term debt, excluding capitalized leases, are generally estimated based on quoted market prices for identical or similar instruments, and are classified as Level 2 measurements within the hierarchy as defined by applicable accounting standards. The following table shows the estimated fair value of the Company's long-term debt, excluding capital leases and other obligations: May 5, 2018 April 29, 2017 Notional Amount Carrying Amount Fair Value Notional Amount Carrying Amount Fair Value (millions) Long-term debt $ 5,803 $ 5,832 $ 5,621 $ 6,310 $ 6,385 $ 6,251 |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 3 Months Ended |
May 05, 2018 | |
Condensed Financial Information of Parent Company Only 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 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 the 13 weeks ended May 5, 2018 and April 29, 2017 , Condensed Consolidating Balance Sheets as of May 5, 2018 , April 29, 2017 and February 3, 2018 , and the related Condensed Consolidating Statements of Cash Flows for the 13 weeks ended May 5, 2018 and April 29, 2017 are presented on the following pages. Condensed Consolidating Statement of Comprehensive Income For the 13 weeks ended May 5, 2018 (millions) Parent Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Consolidated Net sales $ — $ 2,008 $ 5,363 $ (1,830 ) $ 5,541 Credit card revenues (expense), net — (6 ) 163 — 157 Cost of sales — (1,320 ) (3,892 ) 1,830 (3,382 ) Selling, general and administrative expenses — (828 ) (1,255 ) — (2,083 ) Gains on sale of real estate — 23 1 — 24 Impairment and other costs — — (19 ) — (19 ) Operating income (loss) — (123 ) 361 — 238 Benefit plan income, net — 4 7 — 11 Interest (expense) income, net: External 4 (71 ) 1 — (66 ) Intercompany — (18 ) 18 — — Equity in earnings of subsidiaries 136 102 — (238 ) — Income (loss) before income taxes 140 (106 ) 387 (238 ) 183 Federal, state and local income (1 ) 37 (88 ) — (52 ) Net income (loss) 139 (69 ) 299 (238 ) 131 Net loss attributable to noncontrolling interest — — 8 — 8 Net income (loss) attributable to $ 139 $ (69 ) $ 307 $ (238 ) $ 139 Comprehensive income (loss) $ 146 $ (63 ) $ 303 $ (248 ) $ 138 Comprehensive loss attributable to — — 8 — 8 Comprehensive income (loss) attributable to $ 146 $ (63 ) $ 311 $ (248 ) $ 146 Condensed Consolidating Statement of Comprehensive Income For the 13 weeks ended April 29, 2017 (millions) Parent Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Consolidated Net sales $ — $ 2,064 $ 5,130 $ (1,844 ) $ 5,350 Credit card revenues (expense), net — (6 ) 167 — 161 Cost of sales — (1,386 ) (3,761 ) 1,844 (3,303 ) Selling, general and administrative expenses (1 ) (767 ) (1,289 ) — (2,057 ) Gains on sale of real estate — 65 3 — 68 Operating income (loss) (1 ) (30 ) 250 — 219 Benefit plan income, net — 5 8 — 13 Interest (expense) income, net: External 1 (85 ) — — (84 ) Intercompany — (34 ) 34 — — Premiums on early retirement of debt — (3 ) — — (3 ) Equity in earnings of subsidiaries 78 1 — (79 ) — Income (loss) before income taxes 78 (146 ) 292 (79 ) 145 Federal, state and local income — 26 (94 ) — (68 ) Net income (loss) 78 (120 ) 198 (79 ) 77 Net loss attributable to noncontrolling interest — — 1 — 1 Net income (loss) attributable to $ 78 $ (120 ) $ 199 $ (79 ) $ 78 Comprehensive income (loss) $ 84 $ (114 ) $ 202 $ (89 ) $ 83 Comprehensive loss attributable to — — 1 — 1 Comprehensive income (loss) attributable to $ 84 $ (114 ) $ 203 $ (89 ) $ 84 Condensed Consolidating Balance Sheet As of May 5, 2018 (millions) Parent Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Consolidated ASSETS: Current Assets: Cash and cash equivalents $ 1,070 $ 79 $ 382 $ — $ 1,531 Receivables — 48 202 — 250 Merchandise inventories — 2,283 3,008 — 5,291 Prepaid expenses and other current assets — 150 488 — 638 Total Current Assets 1,070 2,560 4,080 — 7,710 Property and Equipment – net — 3,298 3,277 — 6,575 Goodwill — 3,326 582 — 3,908 Other Intangible Assets – net — 43 443 — 486 Other Assets 1 96 792 — 889 Deferred Income Taxes 5 — — (5 ) — Intercompany Receivable 1,156 — 2,113 (3,269 ) — Investment in Subsidiaries 3,975 4,232 — (8,207 ) — Total Assets $ 6,207 $ 13,555 $ 11,287 $ (11,481 ) $ 19,568 LIABILITIES AND SHAREHOLDERS’ EQUITY: Current Liabilities: Short-term debt $ — $ 6 $ 19 $ — $ 25 Merchandise accounts payable — 896 1,149 — 2,045 Accounts payable and accrued liabilities 109 784 1,802 — 2,695 Income taxes 253 35 24 — 312 Total Current Liabilities 362 1,721 2,994 — 5,077 Long-Term Debt — 5,841 16 — 5,857 Intercompany Payable — 3,269 — (3,269 ) — Deferred Income Taxes — 570 604 (5 ) 1,169 Other Liabilities 24 416 1,224 — 1,664 Shareholders' Equity: Macy's, Inc. 5,821 1,738 6,469 (8,207 ) 5,821 Noncontrolling Interest — — (20 ) — (20 ) Total Shareholders' Equity 5,821 1,738 6,449 (8,207 ) 5,801 Total Liabilities and Shareholders' Equity $ 6,207 $ 13,555 $ 11,287 $ (11,481 ) $ 19,568 Condensed Consolidating Balance Sheet As of April 29, 2017 (millions) Parent Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Consolidated ASSETS: Current Assets: Cash and cash equivalents $ 779 $ 99 $ 323 $ — $ 1,201 Receivables — 118 227 — 345 Merchandise inventories — 2,560 3,066 — 5,626 Prepaid expenses and other current assets — 150 484 — 634 Total Current Assets 779 2,927 4,100 — 7,806 Property and Equipment – net — 3,479 3,407 — 6,886 Goodwill — 3,315 582 — 3,897 Other Intangible Assets – net — 49 447 — 496 Other Assets — 45 748 — 793 Deferred Income Taxes 24 — — (24 ) — Intercompany Receivable 902 — 2,092 (2,994 ) — Investment in Subsidiaries 3,063 3,598 — (6,661 ) — Total Assets $ 4,768 $ 13,413 $ 11,376 $ (9,679 ) $ 19,878 LIABILITIES AND SHAREHOLDERS’ EQUITY: Current Liabilities: Short-term debt $ — $ 306 $ 7 $ — $ 313 Merchandise accounts payable — 841 1,187 — 2,028 Accounts payable and accrued liabilities 22 962 2,058 — 3,042 Income taxes 317 6 32 — 355 Total Current Liabilities 339 2,115 3,284 — 5,738 Long-Term Debt — 6,395 17 — 6,412 Intercompany Payable — 2,994 — (2,994 ) — Deferred Income Taxes — 733 813 (24 ) 1,522 Other Liabilities 67 498 1,281 — 1,846 Shareholders' Equity: Macy's, Inc. 4,362 678 5,983 (6,661 ) 4,362 Noncontrolling Interest — — (2 ) — (2 ) Total Shareholders' Equity 4,362 678 5,981 (6,661 ) 4,360 Total Liabilities and Shareholders' Equity $ 4,768 $ 13,413 $ 11,376 $ (9,679 ) $ 19,878 Condensed Consolidating Balance Sheet As of February 3, 2018 (millions) Parent Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Consolidated ASSETS: Current Assets: Cash and cash equivalents $ 1,109 $ 58 $ 288 $ — $ 1,455 Receivables — 85 278 — 363 Merchandise inventories — 2,344 2,834 — 5,178 Prepaid expenses and other current assets — 165 485 — 650 Total Current Assets 1,109 2,652 3,885 — 7,646 Property and Equipment – net — 3,349 3,323 — 6,672 Goodwill — 3,315 582 — 3,897 Other Intangible Assets – net — 44 444 — 488 Other Assets 1 89 790 — 880 Deferred Income Taxes 11 — — (11 ) — Intercompany Receivable 884 — 2,388 (3,272 ) — Investment in Subsidiaries 4,032 4,126 — (8,158 ) — Total Assets $ 6,037 $ 13,575 $ 11,412 $ (11,441 ) $ 19,583 LIABILITIES AND SHAREHOLDERS’ EQUITY: Current Liabilities: Short-term debt $ — $ 6 $ 16 $ — $ 22 Merchandise accounts payable — 653 937 — 1,590 Accounts payable and accrued liabilities 159 980 2,132 — 3,271 Income taxes 113 30 153 — 296 Total Current Liabilities 272 1,669 3,238 — 5,179 Long-Term Debt — 5,844 17 — 5,861 Intercompany Payable — 3,272 — (3,272 ) — Deferred Income Taxes — 559 600 (11 ) 1,148 Other Liabilities 20 430 1,212 — 1,662 Shareholders' Equity: Macy's, Inc. 5,745 1,801 6,357 (8,158 ) 5,745 Noncontrolling Interest — — (12 ) — (12 ) Total Shareholders' Equity 5,745 1,801 6,345 (8,158 ) 5,733 Total Liabilities and Shareholders' Equity $ 6,037 $ 13,575 $ 11,412 $ (11,441 ) $ 19,583 Condensed Consolidating Statement of Cash Flows For the 13 weeks ended May 5, 2018 (millions) Parent Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Consolidated Cash flows from operating activities: Net income (loss) $ 139 $ (69 ) $ 299 $ (238 ) $ 131 Impairment and other costs — — 19 — 19 Equity in earnings of subsidiaries (136 ) (102 ) — 238 — Dividends received from subsidiaries 200 — — (200 ) — Depreciation and amortization — 82 153 — 235 Gains on sale of real estate — (23 ) (1 ) — (24 ) Changes in assets, liabilities and other items not separately identified 150 175 (364 ) — (39 ) Net cash provided by operating activities 353 63 106 (200 ) 322 Cash flows from investing activities: Purchase of property and equipment and capitalized software, net of dispositions — (50 ) (117 ) — (167 ) Other, net — (10 ) 21 — 11 Net cash used by investing activities — (60 ) (96 ) — (156 ) Cash flows from financing activities: Debt repaid — (3 ) — — (3 ) Dividends paid (116 ) — (200 ) 200 (116 ) Issuance of common stock, net of common stock acquired 28 — — — 28 Proceeds from noncontrolling interest — — 2 — 2 Intercompany activity, net (254 ) (10 ) 264 — — Other, net (50 ) 23 17 — (10 ) Net cash provided (used) by financing activities (392 ) 10 83 200 (99 ) Net increase (decrease) in cash, cash equivalents and restricted cash (39 ) 13 93 — 67 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 $ 1,070 $ 92 $ 418 $ — $ 1,580 Condensed Consolidating Statement of Cash Flows For the 13 weeks ended April 29, 2017 (millions) Parent Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Consolidated Cash flows from operating activities: Net income (loss) $ 78 $ (120 ) $ 198 $ (79 ) $ 77 Equity in earnings of subsidiaries (78 ) (1 ) — 79 — Dividends received from subsidiaries 211 — — (211 ) — Depreciation and amortization — 89 154 — 243 Gains on sale of real estate — (65 ) (3 ) — (68 ) Changes in assets, liabilities and other items not separately identified 251 241 (507 ) — (15 ) Net cash provided (used) by operating activities 462 144 (158 ) (211 ) 237 Cash flows from investing activities: Purchase of property and equipment and capitalized software, net of dispositions — 58 (139 ) — (81 ) Other, net — — 21 — 21 Net cash provided (used) by investing activities — 58 (118 ) — (60 ) Cash flows from financing activities: Debt repaid — (152 ) — — (152 ) Dividends paid (115 ) — (211 ) 211 (115 ) Issuance of common stock, net of common stock acquired 1 — — — 1 Proceeds from noncontrolling interest — — 3 — 3 Intercompany activity, net (515 ) (1 ) 516 — — Other, net 8 (31 ) 13 — (10 ) Net cash provided (used) by (621 ) (184 ) 321 211 (273 ) Net increase (decrease) in cash, cash equivalents and restricted cash (159 ) 18 45 — (96 ) Cash, cash equivalents and restricted cash at beginning of period 938 81 315 — 1,334 Cash, cash equivalents and restricted cash at end of period $ 779 $ 99 $ 360 $ — $ 1,238 |
Summary of Significant Accoun13
Summary of Significant Accounting Policies (Policy) | 3 Months Ended |
May 05, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature Of Operations | Nature of Operations Macy's, Inc. and subsidiaries (the "Company") is an omnichannel retail organization operating stores, websites and mobile applications under three brands (Macy's, Bloomingdale's and bluemercury) that sell a wide range of merchandise, including apparel and accessories (men's, women's and children's), cosmetics, home furnishings and other consumer goods. The Company's operations are conducted through approximately 850 Macy's, Macy's Backstage, Bloomingdale's, Bloomingdale's The Outlet, bluemercury and STORY in 44 states, the District of Columbia, Guam and Puerto Rico, as well as macys.com, bloomingdales.com and bluemercury.com. In addition, Bloomingdale's in Dubai, United Arab Emirates and Al Zahra, Kuwait are operated under a license agreement with Al Tayer Insignia, a company of Al Tayer Group, LLC. |
Use Of Estimates | Use of Estimates The preparation of financial statements in conformity with United States generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates and assumptions are subject to inherent uncertainties, which may result in actual amounts differing from reported amounts. The Consolidated Financial Statements for the 13 weeks ended May 5, 2018 and April 29, 2017 , in the opinion of management, include all adjustments (consisting only of normal recurring adjustments) considered necessary to present fairly, in all material respects, the consolidated financial position and results of operations of the Company. |
Reclassifications | Reclassifications Certain reclassifications were made to prior years’ amounts to conform to the classifications of such amounts in the most recent years |
Comprehensive Income | Comprehensive Income Total comprehensive income represents the change in equity during a period from sources other than transactions with shareholders and, as such, includes net income. For the Company, the only other components of total comprehensive income for the 13 weeks ended May 5, 2018 and April 29, 2017 relate to post employment and postretirement plan items. Settlement charges incurred are included as a separate component of operating expenses in the Consolidated Statements of Income. Amortization reclassifications out of accumulated other comprehensive loss are included in the computation of net periodic benefit cost (income) and are included in selling, general and administrative expenses on the Consolidated Statements of Income. See Note 4, "Benefit Plans," for further information. |
Newly Adopted Accounting Pronouncements | Newly Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers, which established principles to report useful information to financial statements users about the nature, timing and uncertainty of revenue from contracts with customers. ASU No. 2014-09 along with various related amendments comprise ASC Topic 606, Revenue from Contracts with Customers, and provide guidance that is applicable to all contracts with customers regardless of industry-specific or transaction-specific fact patterns. The new standard and its related updates were adopted by the Company on February 4, 2018. On the effective date, the Company elected to apply the new guidance retrospectively to each prior reporting period presented which resulted in an increase to retained earnings of $72 million and $54 million at the beginning of fiscal 2018 and fiscal 2017, respectively. Overall, the new standard did not have a material impact to the results of the Company's operations or consolidated statements of financial position, but impacted the presentation and timing of certain revenue transactions. Specifically, the changes included gross presentation of the Company's estimates for future sales returns and related recoverable assets, presenting income from credit operations, gift card breakage income, and certain loyalty program income as separate components of revenue and recognizing gift card breakage revenue over the period of redemption for gift cards associated with certain returns. The Company's evaluation of the new standards included a review of certain vendor arrangements to determine whether the Company acts as principal or agent in such arrangements and such evaluation did not result in any material changes in gross versus net presentation as a result of the adoption of the new standards. In March 2017, the FASB issued ASU No. 2017-07, Compensation-Retirement Benefits (ASC Topic 715), which requires employers to disaggregate the service cost component from other components of net periodic benefit costs and to disclose the amounts of net periodic benefit costs that are included in each income statement line item. The standard requires employers to report the service cost component in the same line item as other compensation costs and to report the other components of net periodic benefit costs (which include interest costs, expected return on plan assets, amortization of prior service cost or credits and actuarial gains and losses) separately and outside a subtotal of operating income. The Company adopted this standard effective February 4, 2018 on a retrospective basis and has recognized its net periodic benefit costs, excluding service costs, in Benefit Plan Income, net on its consolidated statements of income. In 2016 the FASB issued ASU No. 2016-18, Statement of Cash Flows (ASC Topic 230): Restricted Cash, and ASU No. 2016-15, Statement of Cash Flows (ASC Topic 230): Classification of Certain Cash Receipts and Cash Payments. These standards were issued to resolve numerous diversities in practice with regard to the presentation and classification of certain cash receipts and payments in the statement of cash flows. The standards were effective for the Company on February 4, 2018, and were adopted using a retrospective transition method to each period presented. As a result of these standards, the Company included its beginning-of-period restricted cash balances of $58 million and end-of-period restricted cash balances of $49 million when reconciling the consolidated statement of cash flow movement for the first quarter of 2018. Similarly, for the first quarter of 2017, the Company included its beginning-of-period restricted cash balances of $37 million and end-of-period restricted cash balances of $37 million . In addition to these changes, the Company changed the classification of $3 million of cash payments for the prepayment of debt from an operating outflow to a financing outflow for the first quarter of 2017. In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which allows for stranded tax effects in accumulated other comprehensive income resulting from H.R. 1, originally known as the “Tax Cuts and Jobs Act,” to be reclassified to retained earnings. The Company early adopted this standard during the first quarter of 2018 and, as a result, reclassified $164 million of stranded tax effects to retained earnings. |
Revenue Recognition, Policy [Policy Text Block] | Credit Card Revenues, net In 2005, the Company entered into an arrangement with Citibank to sell the Company's private label and co-branded credit cards ("Credit Card Program"). Subsequent to this initial arrangement and associated amendments, in 2014, the Company entered into an amended and restated Credit Card Program Agreement (the "Program Agreement") with Citibank. As part of the Program Agreement, the Company receives payments for providing a combination of interrelated services and intellectual property to Citibank in support of the underlying Credit Card Program. Revenue based on the spending activity of the underlying accounts is recognized as the respective card purchases occur and the Company’s profit share is recognized based on the performance of the underlying portfolio. Revenue associated with the establishment of new credit accounts and assisting in the receipt of payments for existing accounts is recognized as such activities occur. Credit card revenues include finance charges, late fees and other revenue generated by the Company’s Credit Card Program, net of fraud losses and expenses associated with establishing new accounts. Gift Cards The Company only offers no-fee, non-expiring gift cards to its customers. At the time gift cards are sold, no revenue is recognized; rather, the Company records an accrued liability to customers. The liability is relieved and revenue is recognized equal to the amount redeemed at the time gift cards are redeemed for merchandise. The Company records revenue from unredeemed gift cards (breakage) in net sales in proportion over the time period gift cards are actually redeemed. At least three years of historical data, updated annually, is used to determine actual redemption patterns. The liability for unredeemed gift cards is included in Accounts Payable and Accrued Liabilities on the Company's consolidated balance sheets and was $656 million , $821 million and $651 million as of May 5, 2018, February 3, 2018 and April 29, 2017, respectively. Revenue Revenue is recognized when customers obtain control of goods and services promised by the Company. The amount of revenue recognized is based on the amount that reflects the consideration that is expected to be received in exchange for those respective goods and services. The Company's revenue generating activities include the following: Retail Sales Retail sales include merchandise sales, licensed department income, sales of private brand goods directly to third party retailers and sales of excess inventory to third parties. Sales of merchandise are recorded at the time of shipment to the customer and are reported net of estimated merchandise returns and certain customer incentives. Commissions earned on sales generated by licensed departments are included as a component of total net sales and are recognized as revenue at the time merchandise is sold to customers. Service revenues (e.g., alteration and cosmetic services) are recorded at the time the customer receives the benefit of the service. The Company has elected to present sales taxes on a net basis and, as such, sales taxes are included in Accounts Payable and Accrued Liabilities until remitted to the taxing authorities. For each of the 13 weeks ended May 5, 2018 and April 29, 2017 , Macy's accounted for 88% of the Company's net sales. Disaggregation of the Company's net sales by family of business for the 13 weeks ended May 5, 2018 and April 29, 2017 were as follows: 13 weeks ended Net sales by family of business May 5, 2018 April 29, 2017 (millions) Women's Accessories, Intimate Apparel, Shoes, Cosmetics and Fragrances $ 2,165 $ 2,069 Women's Apparel 1,354 1,333 Men's and Children's 1,175 1,115 Home/Other (a) 847 833 Total $ 5,541 $ 5,350 (a) Other primarily includes restaurant sales and breakage income from unredeemed gift cards. |
Revenue Recognition, Sales Returns [Policy Text Block] | Merchandise Returns The Company estimates merchandise returns using historical data and recognizes an allowance that reduces net sales and cost of sales. The liability for merchandise returns is included in Accounts Payable and Accrued Liabilities on the Company's consolidated balance sheets and was $298 million , $291 million and $338 million as of May 5, 2018, February 3, 2018 and April 29, 2017, respectively. Included in Prepaid Expenses and Other Current Assets is an asset totaling $204 million , $201 million and $236 million as of May 5, 2018, February 3, 2018 and April 29, 2017, respectively, for the right to recover products from customers associated with estimated merchandise returns. |
Revenue Recognition, Loyalty Programs [Policy Text Block] | Customer Loyalty Programs The Company maintains customer loyalty programs in which customers earn points based on their purchases. Under the Macy’s brand, points are earned based on customers’ spending on Macy’s private label and co-branded credit cards as well as non-proprietary cards during certain tender-neutral promotional events. Under the Bloomingdale’s brand, the Company offers a tender neutral points-based program. The Company recognizes the estimated net amount of the rewards that will be earned and redeemed as a reduction to net sales at the time of the initial transaction and as tender when the points are subsequently redeemed by a customer. The liability for customer loyalty programs is included in Accounts Payable and Accrued Liabilities on the Company's consolidated balance sheets and was $71 million , $73 million and $60 million as of May 5, 2018, February 3, 2018 and April 29, 2017, respectively. |
Summary of Significant Accoun14
Summary of Significant Accounting Policies Disaggregation of Revenue (Tables) | 3 Months Ended |
May 05, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Disaggregation of Revenue [Table Text Block] | For each of the 13 weeks ended May 5, 2018 and April 29, 2017 , Macy's accounted for 88% of the Company's net sales. Disaggregation of the Company's net sales by family of business for the 13 weeks ended May 5, 2018 and April 29, 2017 were as follows: 13 weeks ended Net sales by family of business May 5, 2018 April 29, 2017 (millions) Women's Accessories, Intimate Apparel, Shoes, Cosmetics and Fragrances $ 2,165 $ 2,069 Women's Apparel 1,354 1,333 Men's and Children's 1,175 1,115 Home/Other (a) 847 833 Total $ 5,541 $ 5,350 (a) Other primarily includes restaurant sales and breakage income from unredeemed gift cards. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
May 05, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following tables set forth the computation of basic and diluted earnings per share attributable to Macy's, Inc. shareholders: 13 weeks ended May 5, 2018 April 29, 2017 Net Shares Net Shares (millions, except per share data) Net income attributable to Macy's, Inc. shareholders and $ 139 305.7 $ 78 304.3 Shares to be issued under deferred 0.9 0.7 $ 139 306.6 $ 78 305.0 Basic earnings per share attributable to $ .45 $ .26 Effect of dilutive securities: Stock options, restricted stock and restricted stock units 2.8 1.9 $ 139 309.4 $ 78 306.9 Diluted earnings per share attributable to $ .45 $ .26 |
Financing Activities Financing
Financing Activities Financing Activites (Tables) | 3 Months Ended |
May 05, 2018 | |
Extinguishment of Debt [Line Items] | |
Detail of Debt Repayments | The following table shows the detail of debt repayments: 13 weeks ended May 5, 2018 April 29, 2017 (millions) 6.375% Senior notes due 2037 $ — $ 135 6.7% Senior debentures due 2034 — 11 9.5% amortizing debentures due 2021 2 2 9.75% amortizing debentures due 2021 1 1 $ 3 $ 149 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 3 Months Ended |
May 05, 2018 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | |
Schedule of Costs of Retirement Plans | The defined contribution plan expense and actuarially determined components of the net periodic benefit cost (income) associated with the defined benefit plans are as follows: 13 weeks ended May 5, 2018 April 29, 2017 (millions) 401(k) Qualified Defined Contribution Plan $ 23 $ 21 Non-Qualified Defined Contribution Plan $ — $ — Pension Plan Service cost $ 2 $ 1 Interest cost 26 27 Expected return on assets (53 ) (56 ) Recognition of net actuarial loss 8 8 Amortization of prior service credit — — $ (17 ) $ (20 ) Supplementary Retirement Plan Service cost $ — $ — Interest cost 6 6 Recognition of net actuarial loss 2 2 Amortization of prior service cost — — $ 8 $ 8 Total Retirement Expense $ 14 $ 9 Postretirement Obligations Service cost $ — $ — Interest cost 1 1 Recognition of net actuarial gain (1 ) (1 ) Amortization of prior service credit — — $ — $ — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
May 05, 2018 | |
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | |
Fair Value of Assets Measured on a Recurring Basis | The following table shows the Company's financial assets that are required to be measured at fair value on a recurring basis, by level within the hierarchy as defined by applicable accounting standards: May 5, 2018 April 29, 2017 Fair Value Measurements Fair Value Measurements Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (millions) Marketable equity and debt securities $ 96 $ 25 $ 71 $ — $ 90 $ 21 $ 69 $ — |
Estimated Fair Values of Company's Long Term Debt | The following table shows the estimated fair value of the Company's long-term debt, excluding capital leases and other obligations: May 5, 2018 April 29, 2017 Notional Amount Carrying Amount Fair Value Notional Amount Carrying Amount Fair Value (millions) Long-term debt $ 5,803 $ 5,832 $ 5,621 $ 6,310 $ 6,385 $ 6,251 |
Condensed Consolidating Finan19
Condensed Consolidating Financial Information (Tables) | 3 Months Ended |
May 05, 2018 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Balance Sheet [Table Text Block] | Condensed Consolidating Balance Sheet As of May 5, 2018 (millions) Parent Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Consolidated ASSETS: Current Assets: Cash and cash equivalents $ 1,070 $ 79 $ 382 $ — $ 1,531 Receivables — 48 202 — 250 Merchandise inventories — 2,283 3,008 — 5,291 Prepaid expenses and other current assets — 150 488 — 638 Total Current Assets 1,070 2,560 4,080 — 7,710 Property and Equipment – net — 3,298 3,277 — 6,575 Goodwill — 3,326 582 — 3,908 Other Intangible Assets – net — 43 443 — 486 Other Assets 1 96 792 — 889 Deferred Income Taxes 5 — — (5 ) — Intercompany Receivable 1,156 — 2,113 (3,269 ) — Investment in Subsidiaries 3,975 4,232 — (8,207 ) — Total Assets $ 6,207 $ 13,555 $ 11,287 $ (11,481 ) $ 19,568 LIABILITIES AND SHAREHOLDERS’ EQUITY: Current Liabilities: Short-term debt $ — $ 6 $ 19 $ — $ 25 Merchandise accounts payable — 896 1,149 — 2,045 Accounts payable and accrued liabilities 109 784 1,802 — 2,695 Income taxes 253 35 24 — 312 Total Current Liabilities 362 1,721 2,994 — 5,077 Long-Term Debt — 5,841 16 — 5,857 Intercompany Payable — 3,269 — (3,269 ) — Deferred Income Taxes — 570 604 (5 ) 1,169 Other Liabilities 24 416 1,224 — 1,664 Shareholders' Equity: Macy's, Inc. 5,821 1,738 6,469 (8,207 ) 5,821 Noncontrolling Interest — — (20 ) — (20 ) Total Shareholders' Equity 5,821 1,738 6,449 (8,207 ) 5,801 Total Liabilities and Shareholders' Equity $ 6,207 $ 13,555 $ 11,287 $ (11,481 ) $ 19,568 Condensed Consolidating Balance Sheet As of April 29, 2017 (millions) Parent Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Consolidated ASSETS: Current Assets: Cash and cash equivalents $ 779 $ 99 $ 323 $ — $ 1,201 Receivables — 118 227 — 345 Merchandise inventories — 2,560 3,066 — 5,626 Prepaid expenses and other current assets — 150 484 — 634 Total Current Assets 779 2,927 4,100 — 7,806 Property and Equipment – net — 3,479 3,407 — 6,886 Goodwill — 3,315 582 — 3,897 Other Intangible Assets – net — 49 447 — 496 Other Assets — 45 748 — 793 Deferred Income Taxes 24 — — (24 ) — Intercompany Receivable 902 — 2,092 (2,994 ) — Investment in Subsidiaries 3,063 3,598 — (6,661 ) — Total Assets $ 4,768 $ 13,413 $ 11,376 $ (9,679 ) $ 19,878 LIABILITIES AND SHAREHOLDERS’ EQUITY: Current Liabilities: Short-term debt $ — $ 306 $ 7 $ — $ 313 Merchandise accounts payable — 841 1,187 — 2,028 Accounts payable and accrued liabilities 22 962 2,058 — 3,042 Income taxes 317 6 32 — 355 Total Current Liabilities 339 2,115 3,284 — 5,738 Long-Term Debt — 6,395 17 — 6,412 Intercompany Payable — 2,994 — (2,994 ) — Deferred Income Taxes — 733 813 (24 ) 1,522 Other Liabilities 67 498 1,281 — 1,846 Shareholders' Equity: Macy's, Inc. 4,362 678 5,983 (6,661 ) 4,362 Noncontrolling Interest — — (2 ) — (2 ) Total Shareholders' Equity 4,362 678 5,981 (6,661 ) 4,360 Total Liabilities and Shareholders' Equity $ 4,768 $ 13,413 $ 11,376 $ (9,679 ) $ 19,878 Condensed Consolidating Balance Sheet As of February 3, 2018 (millions) Parent Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Consolidated ASSETS: Current Assets: Cash and cash equivalents $ 1,109 $ 58 $ 288 $ — $ 1,455 Receivables — 85 278 — 363 Merchandise inventories — 2,344 2,834 — 5,178 Prepaid expenses and other current assets — 165 485 — 650 Total Current Assets 1,109 2,652 3,885 — 7,646 Property and Equipment – net — 3,349 3,323 — 6,672 Goodwill — 3,315 582 — 3,897 Other Intangible Assets – net — 44 444 — 488 Other Assets 1 89 790 — 880 Deferred Income Taxes 11 — — (11 ) — Intercompany Receivable 884 — 2,388 (3,272 ) — Investment in Subsidiaries 4,032 4,126 — (8,158 ) — Total Assets $ 6,037 $ 13,575 $ 11,412 $ (11,441 ) $ 19,583 LIABILITIES AND SHAREHOLDERS’ EQUITY: Current Liabilities: Short-term debt $ — $ 6 $ 16 $ — $ 22 Merchandise accounts payable — 653 937 — 1,590 Accounts payable and accrued liabilities 159 980 2,132 — 3,271 Income taxes 113 30 153 — 296 Total Current Liabilities 272 1,669 3,238 — 5,179 Long-Term Debt — 5,844 17 — 5,861 Intercompany Payable — 3,272 — (3,272 ) — Deferred Income Taxes — 559 600 (11 ) 1,148 Other Liabilities 20 430 1,212 — 1,662 Shareholders' Equity: Macy's, Inc. 5,745 1,801 6,357 (8,158 ) 5,745 Noncontrolling Interest — — (12 ) — (12 ) Total Shareholders' Equity 5,745 1,801 6,345 (8,158 ) 5,733 Total Liabilities and Shareholders' Equity $ 6,037 $ 13,575 $ 11,412 $ (11,441 ) $ 19,583 |
Condensed Consolidating Statement of Cash Flows [Table Text Block] | Condensed Consolidating Statement of Cash Flows For the 13 weeks ended May 5, 2018 (millions) Parent Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Consolidated Cash flows from operating activities: Net income (loss) $ 139 $ (69 ) $ 299 $ (238 ) $ 131 Impairment and other costs — — 19 — 19 Equity in earnings of subsidiaries (136 ) (102 ) — 238 — Dividends received from subsidiaries 200 — — (200 ) — Depreciation and amortization — 82 153 — 235 Gains on sale of real estate — (23 ) (1 ) — (24 ) Changes in assets, liabilities and other items not separately identified 150 175 (364 ) — (39 ) Net cash provided by operating activities 353 63 106 (200 ) 322 Cash flows from investing activities: Purchase of property and equipment and capitalized software, net of dispositions — (50 ) (117 ) — (167 ) Other, net — (10 ) 21 — 11 Net cash used by investing activities — (60 ) (96 ) — (156 ) Cash flows from financing activities: Debt repaid — (3 ) — — (3 ) Dividends paid (116 ) — (200 ) 200 (116 ) Issuance of common stock, net of common stock acquired 28 — — — 28 Proceeds from noncontrolling interest — — 2 — 2 Intercompany activity, net (254 ) (10 ) 264 — — Other, net (50 ) 23 17 — (10 ) Net cash provided (used) by financing activities (392 ) 10 83 200 (99 ) Net increase (decrease) in cash, cash equivalents and restricted cash (39 ) 13 93 — 67 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 $ 1,070 $ 92 $ 418 $ — $ 1,580 Condensed Consolidating Statement of Cash Flows For the 13 weeks ended April 29, 2017 (millions) Parent Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Consolidated Cash flows from operating activities: Net income (loss) $ 78 $ (120 ) $ 198 $ (79 ) $ 77 Equity in earnings of subsidiaries (78 ) (1 ) — 79 — Dividends received from subsidiaries 211 — — (211 ) — Depreciation and amortization — 89 154 — 243 Gains on sale of real estate — (65 ) (3 ) — (68 ) Changes in assets, liabilities and other items not separately identified 251 241 (507 ) — (15 ) Net cash provided (used) by operating activities 462 144 (158 ) (211 ) 237 Cash flows from investing activities: Purchase of property and equipment and capitalized software, net of dispositions — 58 (139 ) — (81 ) Other, net — — 21 — 21 Net cash provided (used) by investing activities — 58 (118 ) — (60 ) Cash flows from financing activities: Debt repaid — (152 ) — — (152 ) Dividends paid (115 ) — (211 ) 211 (115 ) Issuance of common stock, net of common stock acquired 1 — — — 1 Proceeds from noncontrolling interest — — 3 — 3 Intercompany activity, net (515 ) (1 ) 516 — — Other, net 8 (31 ) 13 — (10 ) Net cash provided (used) by (621 ) (184 ) 321 211 (273 ) Net increase (decrease) in cash, cash equivalents and restricted cash (159 ) 18 45 — (96 ) Cash, cash equivalents and restricted cash at beginning of period 938 81 315 — 1,334 Cash, cash equivalents and restricted cash at end of period $ 779 $ 99 $ 360 $ — $ 1,238 |
Condensed Consolidating Statement of Comprehensive Income [Table Text Block] | Condensed Consolidating Statement of Comprehensive Income For the 13 weeks ended May 5, 2018 (millions) Parent Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Consolidated Net sales $ — $ 2,008 $ 5,363 $ (1,830 ) $ 5,541 Credit card revenues (expense), net — (6 ) 163 — 157 Cost of sales — (1,320 ) (3,892 ) 1,830 (3,382 ) Selling, general and administrative expenses — (828 ) (1,255 ) — (2,083 ) Gains on sale of real estate — 23 1 — 24 Impairment and other costs — — (19 ) — (19 ) Operating income (loss) — (123 ) 361 — 238 Benefit plan income, net — 4 7 — 11 Interest (expense) income, net: External 4 (71 ) 1 — (66 ) Intercompany — (18 ) 18 — — Equity in earnings of subsidiaries 136 102 — (238 ) — Income (loss) before income taxes 140 (106 ) 387 (238 ) 183 Federal, state and local income (1 ) 37 (88 ) — (52 ) Net income (loss) 139 (69 ) 299 (238 ) 131 Net loss attributable to noncontrolling interest — — 8 — 8 Net income (loss) attributable to $ 139 $ (69 ) $ 307 $ (238 ) $ 139 Comprehensive income (loss) $ 146 $ (63 ) $ 303 $ (248 ) $ 138 Comprehensive loss attributable to — — 8 — 8 Comprehensive income (loss) attributable to $ 146 $ (63 ) $ 311 $ (248 ) $ 146 Condensed Consolidating Statement of Comprehensive Income For the 13 weeks ended April 29, 2017 (millions) Parent Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Consolidated Net sales $ — $ 2,064 $ 5,130 $ (1,844 ) $ 5,350 Credit card revenues (expense), net — (6 ) 167 — 161 Cost of sales — (1,386 ) (3,761 ) 1,844 (3,303 ) Selling, general and administrative expenses (1 ) (767 ) (1,289 ) — (2,057 ) Gains on sale of real estate — 65 3 — 68 Operating income (loss) (1 ) (30 ) 250 — 219 Benefit plan income, net — 5 8 — 13 Interest (expense) income, net: External 1 (85 ) — — (84 ) Intercompany — (34 ) 34 — — Premiums on early retirement of debt — (3 ) — — (3 ) Equity in earnings of subsidiaries 78 1 — (79 ) — Income (loss) before income taxes 78 (146 ) 292 (79 ) 145 Federal, state and local income — 26 (94 ) — (68 ) Net income (loss) 78 (120 ) 198 (79 ) 77 Net loss attributable to noncontrolling interest — — 1 — 1 Net income (loss) attributable to $ 78 $ (120 ) $ 199 $ (79 ) $ 78 Comprehensive income (loss) $ 84 $ (114 ) $ 202 $ (89 ) $ 83 Comprehensive loss attributable to — — 1 — 1 Comprehensive income (loss) attributable to $ 84 $ (114 ) $ 203 $ (89 ) $ 84 |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Narrative) (Details) $ in Millions | 3 Months Ended | |||
May 05, 2018USD ($)storesRate | Apr. 29, 2017USD ($) | Feb. 03, 2018USD ($) | Jan. 28, 2017USD ($) | |
sales by product category | $ 5,541 | $ 5,350 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 164 | |||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 72 | $ 54 | ||
Revenue Recognition, Sales Returns, Reserve for Sales Returns | $ 298 | 338 | 291 | |
Macy's sales to total Company sales | Rate | 88.00% | |||
Number of states in which entity operates | 44 | |||
Contract with Customer, Liability | $ 71 | 60 | 73 | |
Contract with Customer, Right to Recover Product | 204 | 236 | 201 | |
Gift Card Liability, Current | 656 | 651 | 821 | |
Restricted Cash and Cash Equivalents | 49 | 37 | $ 58 | $ 37 |
Net premiums on early retirement of debt | $ 0 | (3) | ||
Minimum [Member] | ||||
Number of Stores | stores | 850 | |||
Women's Accessories, Intimate Apparel, Shoes and Cosmetics [Member] | ||||
sales by product category | $ 2,165 | 2,069 | ||
Women's Apparel [Member] | ||||
sales by product category | 1,354 | 1,333 | ||
Men's and Children's [Member] | ||||
sales by product category | 1,175 | 1,115 | ||
Home and Miscellaneous [Member] | ||||
sales by product category | $ 847 | $ 833 |
Earnings Per Share Earnings Per
Earnings Per Share Earnings Per Share (Narrative) (Details) - shares shares in Millions | 3 Months Ended | |
May 05, 2018 | Apr. 29, 2017 | |
Stock Options [Member] | ||
Stock options and restricted stock units outstanding, not included in computation of diluted earnings per share | 15.7 | 16.2 |
Restricted Stock Units [Member] | ||
Stock options and restricted stock units outstanding, not included in computation of diluted earnings per share | 2.5 | 1.6 |
Earnings Per Share (Computation
Earnings Per Share (Computation Of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
May 05, 2018 | Apr. 29, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Net income (loss) attributable to Macy's, Inc. shareholders | $ 139 | $ 78 |
Net income available to common stockholders, basic | 139 | 78 |
Net income available to common stockholders, diluted | $ 139 | $ 78 |
Basic earnings per share attributable to Macy's, Inc. shareholders | $ 0.45 | $ 0.26 |
Diluted earnings per share attributable to Macy's, Inc. shareholders | $ 0.45 | $ 0.26 |
Average number of shares issued, basic | 305.7 | 304.3 |
Shares to be issued under deferred compensation and other plans | 0.9 | 0.7 |
Average number of shares outstanding, basic | 306.6 | 305 |
Effect of dilutive securities-stock options, restricted stock and restricted stock units | 2.8 | 1.9 |
Average number of shares outstanding, diluted | 309.4 | 306.9 |
Financing Activities (Details)
Financing Activities (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 05, 2018 | Apr. 29, 2017 | |
Net premiums on early retirement of debt | $ 0 | $ 3 |
Financing Activities (Detail Of
Financing Activities (Detail Of Debt Repayments) (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 05, 2018 | Apr. 29, 2017 | |
Debt Instrument, Repurchased Face Amount | $ 146 | |
Debt repaid | $ 3 | 152 |
Repayments of Debt | 149 | |
9.5% Amortizing Debentures due 2021 | ||
Extinguishment of debt | 2 | 2 |
9.75% Amortizing Debentures Due 2021 | ||
Extinguishment of debt | 1 | 1 |
6.375% Senior Notes Due 2037 | ||
Extinguishment of debt | 0 | 135 |
6.7% Senior Debentures Due 2034 | ||
Extinguishment of debt | $ 0 | $ 11 |
Benefit Plans (Net Periodic Ben
Benefit Plans (Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 05, 2018 | Apr. 29, 2017 | |
Total Retirement Expense | $ 14 | $ 9 |
Nonqualified Plan [Member] | ||
Defined contribution plans expense | 0 | 0 |
Qualified Plan [Member] | ||
Defined contribution plans expense | 23 | 21 |
Pension Plan [Member] | ||
Service cost | 2 | 1 |
Interest cost | 26 | 27 |
Expected return on assets | (53) | (56) |
Recognition of net actuarial (gain) loss | 8 | 8 |
Amortization of prior service credit | 0 | 0 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | (17) | (20) |
Supplemental Employee Retirement Plan [Member] | ||
Service cost | 0 | 0 |
Interest cost | 6 | 6 |
Recognition of net actuarial (gain) loss | 2 | 2 |
Amortization of prior service credit | 0 | 0 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | 8 | 8 |
Other Postretirement Benefits Plan [Member] | ||
Service cost | 0 | 0 |
Interest cost | 1 | 1 |
Recognition of net actuarial (gain) loss | (1) | (1) |
Amortization of prior service credit | 0 | 0 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | $ 0 | $ 0 |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Assets Measured At Fair Value On A Recurring and Nonrecurring Basis) (Details) - USD ($) $ in Millions | May 05, 2018 | Apr. 29, 2017 |
Marketable equity and debt securities | $ 96 | $ 90 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Marketable equity and debt securities | 25 | 21 |
Significant Observable Inputs (Level 2) [Member] | ||
Marketable equity and debt securities | 71 | 69 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Marketable equity and debt securities | $ 0 | $ 0 |
Fair Value Measurements (Estima
Fair Value Measurements (Estimated Fair Value Of Company Long Term Debt) (Details) - USD ($) $ in Millions | May 05, 2018 | Apr. 29, 2017 |
Long-term debt | $ 5,621 | $ 6,251 |
Carrying Amount | ||
Long-term debt | 5,832 | 6,385 |
Notional Amount | ||
Long-term debt | $ 5,803 | $ 6,310 |
Condensed Consolidating Finan28
Condensed Consolidating Financial Information (Condensed Consolidating Balance Sheet) (Details) - USD ($) $ in Millions | May 05, 2018 | Feb. 03, 2018 | Apr. 29, 2017 |
Current Assets: | |||
Cash and cash equivalents | $ 1,531 | $ 1,455 | $ 1,201 |
Receivables | 250 | 363 | 345 |
Merchandise inventories | 5,291 | 5,178 | 5,626 |
Prepaid expenses and other current assets | 638 | 650 | 634 |
Total Current Assets | 7,710 | 7,646 | 7,806 |
Property and Equipment - net | 6,575 | 6,672 | 6,886 |
Goodwill | 3,908 | 3,897 | 3,897 |
Other Intangible Assets - net | 486 | 488 | 496 |
Other Assets | 889 | 880 | 793 |
Deferred Income Taxes | 0 | 0 | 0 |
Intercompany Receivable | 0 | 0 | 0 |
Investment in Subsidiaries | 0 | 0 | 0 |
Total Assets | 19,568 | 19,583 | 19,878 |
Current Liabilities: | |||
Short-term debt | 25 | 22 | 313 |
Merchandise accounts payable | 2,045 | 1,590 | 2,028 |
Accounts payable and accrued liabilities | 2,695 | 3,271 | 3,042 |
Income taxes | 312 | 296 | 355 |
Total Current Liabilities | 5,077 | 5,179 | 5,738 |
Long-Term Debt | 5,857 | 5,861 | 6,412 |
Intercompany Payable | 0 | 0 | 0 |
Deferred Income Taxes | 1,169 | 1,148 | 1,522 |
Other Liabilities | 1,664 | 1,662 | 1,846 |
Shareholders' Equity, Macy's, Inc. | 5,821 | 5,745 | 4,362 |
Shareholders' Equity, noncontrolling interest | (20) | (12) | (2) |
Total Shareholders’ Equity | 5,801 | 5,733 | 4,360 |
Total Liabilities and Shareholders' Equity | 19,568 | 19,583 | 19,878 |
Parent | |||
Current Assets: | |||
Cash and cash equivalents | 1,070 | 1,109 | 779 |
Receivables | 0 | 0 | 0 |
Merchandise inventories | 0 | 0 | 0 |
Prepaid expenses and other current assets | 0 | 0 | 0 |
Total Current Assets | 1,070 | 1,109 | 779 |
Property and Equipment - net | 0 | 0 | 0 |
Goodwill | 0 | 0 | 0 |
Other Intangible Assets - net | 0 | 0 | 0 |
Other Assets | 1 | 1 | 0 |
Deferred Income Taxes | 5 | 11 | 24 |
Intercompany Receivable | 1,156 | 884 | 902 |
Investment in Subsidiaries | 3,975 | 4,032 | 3,063 |
Total Assets | 6,207 | 6,037 | 4,768 |
Current Liabilities: | |||
Short-term debt | 0 | 0 | 0 |
Merchandise accounts payable | 0 | 0 | 0 |
Accounts payable and accrued liabilities | 109 | 159 | 22 |
Income taxes | 253 | 113 | 317 |
Total Current Liabilities | 362 | 272 | 339 |
Long-Term Debt | 0 | 0 | 0 |
Intercompany Payable | 0 | 0 | 0 |
Deferred Income Taxes | 0 | 0 | 0 |
Other Liabilities | 24 | 20 | 67 |
Shareholders' Equity, Macy's, Inc. | 5,821 | 5,745 | 4,362 |
Shareholders' Equity, noncontrolling interest | 0 | 0 | 0 |
Total Shareholders’ Equity | 5,821 | 5,745 | 4,362 |
Total Liabilities and Shareholders' Equity | 6,207 | 6,037 | 4,768 |
Subsidiary Issuer | |||
Current Assets: | |||
Cash and cash equivalents | 79 | 58 | 99 |
Receivables | 48 | 85 | 118 |
Merchandise inventories | 2,283 | 2,344 | 2,560 |
Prepaid expenses and other current assets | 150 | 165 | 150 |
Total Current Assets | 2,560 | 2,652 | 2,927 |
Property and Equipment - net | 3,298 | 3,349 | 3,479 |
Goodwill | 3,326 | 3,315 | 3,315 |
Other Intangible Assets - net | 43 | 44 | 49 |
Other Assets | 96 | 89 | 45 |
Deferred Income Taxes | 0 | 0 | 0 |
Intercompany Receivable | 0 | 0 | 0 |
Investment in Subsidiaries | 4,232 | 4,126 | 3,598 |
Total Assets | 13,555 | 13,575 | 13,413 |
Current Liabilities: | |||
Short-term debt | 6 | 6 | 306 |
Merchandise accounts payable | 896 | 653 | 841 |
Accounts payable and accrued liabilities | 784 | 980 | 962 |
Income taxes | 35 | 30 | 6 |
Total Current Liabilities | 1,721 | 1,669 | 2,115 |
Long-Term Debt | 5,841 | 5,844 | 6,395 |
Intercompany Payable | 3,269 | 3,272 | 2,994 |
Deferred Income Taxes | 570 | 559 | 733 |
Other Liabilities | 416 | 430 | 498 |
Shareholders' Equity, Macy's, Inc. | 1,738 | 1,801 | 678 |
Shareholders' Equity, noncontrolling interest | 0 | 0 | 0 |
Total Shareholders’ Equity | 1,738 | 1,801 | 678 |
Total Liabilities and Shareholders' Equity | 13,555 | 13,575 | 13,413 |
Other Subsidiaries | |||
Current Assets: | |||
Cash and cash equivalents | 382 | 288 | 323 |
Receivables | 202 | 278 | 227 |
Merchandise inventories | 3,008 | 2,834 | 3,066 |
Prepaid expenses and other current assets | 488 | 485 | 484 |
Total Current Assets | 4,080 | 3,885 | 4,100 |
Property and Equipment - net | 3,277 | 3,323 | 3,407 |
Goodwill | 582 | 582 | 582 |
Other Intangible Assets - net | 443 | 444 | 447 |
Other Assets | 792 | 790 | 748 |
Deferred Income Taxes | 0 | 0 | 0 |
Intercompany Receivable | 2,113 | 2,388 | 2,092 |
Investment in Subsidiaries | 0 | 0 | 0 |
Total Assets | 11,287 | 11,412 | 11,376 |
Current Liabilities: | |||
Short-term debt | 19 | 16 | 7 |
Merchandise accounts payable | 1,149 | 937 | 1,187 |
Accounts payable and accrued liabilities | 1,802 | 2,132 | 2,058 |
Income taxes | 24 | 153 | 32 |
Total Current Liabilities | 2,994 | 3,238 | 3,284 |
Long-Term Debt | 16 | 17 | 17 |
Intercompany Payable | 0 | 0 | 0 |
Deferred Income Taxes | 604 | 600 | 813 |
Other Liabilities | 1,224 | 1,212 | 1,281 |
Shareholders' Equity, Macy's, Inc. | 6,469 | 6,357 | 5,983 |
Shareholders' Equity, noncontrolling interest | (20) | (12) | (2) |
Total Shareholders’ Equity | 6,449 | 6,345 | 5,981 |
Total Liabilities and Shareholders' Equity | 11,287 | 11,412 | 11,376 |
Consolidation, Eliminations [Member] | |||
Current Assets: | |||
Cash and cash equivalents | 0 | 0 | 0 |
Receivables | 0 | 0 | 0 |
Merchandise inventories | 0 | 0 | 0 |
Prepaid expenses and other current assets | 0 | 0 | 0 |
Total Current Assets | 0 | 0 | 0 |
Property and Equipment - net | 0 | 0 | 0 |
Goodwill | 0 | 0 | 0 |
Other Intangible Assets - net | 0 | 0 | 0 |
Other Assets | 0 | 0 | 0 |
Deferred Income Taxes | (5) | (11) | (24) |
Intercompany Receivable | (3,269) | (3,272) | (2,994) |
Investment in Subsidiaries | (8,207) | (8,158) | (6,661) |
Total Assets | (11,481) | (11,441) | (9,679) |
Current Liabilities: | |||
Short-term debt | 0 | 0 | 0 |
Merchandise accounts payable | 0 | 0 | 0 |
Accounts payable and accrued liabilities | 0 | 0 | 0 |
Income taxes | 0 | 0 | 0 |
Total Current Liabilities | 0 | 0 | 0 |
Long-Term Debt | 0 | 0 | 0 |
Intercompany Payable | (3,269) | (3,272) | (2,994) |
Deferred Income Taxes | (5) | (11) | (24) |
Other Liabilities | 0 | 0 | 0 |
Shareholders' Equity, Macy's, Inc. | (8,207) | (8,158) | (6,661) |
Shareholders' Equity, noncontrolling interest | 0 | 0 | 0 |
Total Shareholders’ Equity | (8,207) | (8,158) | (6,661) |
Total Liabilities and Shareholders' Equity | $ (11,481) | $ (11,441) | $ (9,679) |
Condensed Consolidating Finan29
Condensed Consolidating Financial Information (Condensed Consolidating Statement of Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 05, 2018 | Apr. 29, 2017 | |
Net sales | $ 5,541 | $ 5,350 |
Net Earnings from Credit Operations | 157 | 161 |
Cost of sales | (3,382) | (3,303) |
Selling, general and administrative expenses | (2,083) | (2,057) |
Gains on sale of real estate | 24 | 68 |
Impairments and other costs | (19) | 0 |
Operating Income (Loss) | 238 | 219 |
Non-Service Cost Pension, SERP and OPEB | 11 | 13 |
Interest (expense) income, net | ||
External | (66) | (84) |
Intercompany | 0 | 0 |
Net premiums on early retirement of debt | 0 | (3) |
Income (Loss) from Equity Method Investments | 0 | 0 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 183 | 145 |
Federal, state and local income tax expense | (52) | (68) |
Net income (loss) | 131 | 77 |
Net loss attributable to noncontrolling interest | 8 | 1 |
Net income (loss) attributable to Macy's, Inc. shareholders | 139 | 78 |
Comprehensive income (loss) | 138 | 83 |
Comprehensive loss attributable to noncontrolling interest | 8 | 1 |
Comprehensive income (loss) attributable to Macy's, Inc. shareholders | 146 | 84 |
Parent | ||
Net sales | 0 | 0 |
Net Earnings from Credit Operations | 0 | 0 |
Cost of sales | 0 | 0 |
Selling, general and administrative expenses | 0 | (1) |
Gains on sale of real estate | 0 | 0 |
Impairments and other costs | 0 | |
Operating Income (Loss) | 0 | (1) |
Non-Service Cost Pension, SERP and OPEB | 0 | 0 |
Interest (expense) income, net | ||
External | 4 | 1 |
Intercompany | 0 | 0 |
Net premiums on early retirement of debt | 0 | |
Income (Loss) from Equity Method Investments | 136 | 78 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 140 | 78 |
Federal, state and local income tax expense | (1) | 0 |
Net income (loss) | 139 | 78 |
Net loss attributable to noncontrolling interest | 0 | 0 |
Net income (loss) attributable to Macy's, Inc. shareholders | 139 | 78 |
Comprehensive income (loss) | 146 | 84 |
Comprehensive loss attributable to noncontrolling interest | 0 | 0 |
Comprehensive income (loss) attributable to Macy's, Inc. shareholders | 146 | 84 |
Subsidiary Issuer | ||
Net sales | 2,008 | 2,064 |
Net Earnings from Credit Operations | (6) | (6) |
Cost of sales | (1,320) | (1,386) |
Selling, general and administrative expenses | (828) | (767) |
Gains on sale of real estate | 23 | 65 |
Impairments and other costs | 0 | |
Operating Income (Loss) | (123) | (30) |
Non-Service Cost Pension, SERP and OPEB | 4 | 5 |
Interest (expense) income, net | ||
External | (71) | (85) |
Intercompany | (18) | (34) |
Net premiums on early retirement of debt | (3) | |
Income (Loss) from Equity Method Investments | 102 | 1 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (106) | (146) |
Federal, state and local income tax expense | 37 | 26 |
Net income (loss) | (69) | (120) |
Net loss attributable to noncontrolling interest | 0 | 0 |
Net income (loss) attributable to Macy's, Inc. shareholders | (69) | (120) |
Comprehensive income (loss) | (63) | (114) |
Comprehensive loss attributable to noncontrolling interest | 0 | 0 |
Comprehensive income (loss) attributable to Macy's, Inc. shareholders | (63) | (114) |
Other Subsidiaries | ||
Net sales | 5,363 | 5,130 |
Net Earnings from Credit Operations | 163 | 167 |
Cost of sales | (3,892) | (3,761) |
Selling, general and administrative expenses | (1,255) | (1,289) |
Gains on sale of real estate | 1 | 3 |
Impairments and other costs | (19) | |
Operating Income (Loss) | 361 | 250 |
Non-Service Cost Pension, SERP and OPEB | 7 | 8 |
Interest (expense) income, net | ||
External | 1 | 0 |
Intercompany | 18 | 34 |
Net premiums on early retirement of debt | 0 | |
Income (Loss) from Equity Method Investments | 0 | 0 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 387 | 292 |
Federal, state and local income tax expense | (88) | (94) |
Net income (loss) | 299 | 198 |
Net loss attributable to noncontrolling interest | 8 | 1 |
Net income (loss) attributable to Macy's, Inc. shareholders | 307 | 199 |
Comprehensive income (loss) | 303 | 202 |
Comprehensive loss attributable to noncontrolling interest | 8 | 1 |
Comprehensive income (loss) attributable to Macy's, Inc. shareholders | 311 | 203 |
Consolidation, Eliminations [Member] | ||
Net sales | (1,830) | (1,844) |
Net Earnings from Credit Operations | 0 | 0 |
Cost of sales | 1,830 | 1,844 |
Selling, general and administrative expenses | 0 | 0 |
Gains on sale of real estate | 0 | 0 |
Impairments and other costs | 0 | |
Operating Income (Loss) | 0 | 0 |
Non-Service Cost Pension, SERP and OPEB | 0 | 0 |
Interest (expense) income, net | ||
External | 0 | 0 |
Intercompany | 0 | 0 |
Net premiums on early retirement of debt | 0 | |
Income (Loss) from Equity Method Investments | (238) | (79) |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (238) | (79) |
Federal, state and local income tax expense | 0 | 0 |
Net income (loss) | (238) | (79) |
Net loss attributable to noncontrolling interest | 0 | 0 |
Net income (loss) attributable to Macy's, Inc. shareholders | (238) | (79) |
Comprehensive income (loss) | (248) | (89) |
Comprehensive loss attributable to noncontrolling interest | 0 | 0 |
Comprehensive income (loss) attributable to Macy's, Inc. shareholders | $ (248) | $ (89) |
Condensed Consolidating Finan30
Condensed Consolidating Financial Information (Condensed Consolidating Statement of Cash Flows) (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 05, 2018 | Apr. 29, 2017 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 131 | $ 77 |
Impairments and other costs | 19 | 0 |
Equity in earnings of subsidiaries | 0 | 0 |
Dividends received from subsidiaries | 0 | 0 |
Depreciation and amortization | 235 | 243 |
Gains on sale of real estate | (24) | (68) |
Change in assets, liabilities and other items not separately identified | (39) | (15) |
Net cash provided (used) by operating activities | 322 | 237 |
Cash flows from investing activities: | ||
Purchase of property and equipment and capitalized software, net | (167) | (81) |
Other, net | 11 | 21 |
Net cash used by investing activities | (156) | (60) |
Cash flows from financing activities: | ||
Debt repaid | (3) | (152) |
Dividends paid | (116) | (115) |
(Common stock acquired) net of issuance of common stock | 28 | 1 |
Proceeds from noncontrolling interest | 2 | 3 |
Intercompany activity, net | 0 | 0 |
Other, net | (10) | (10) |
Net cash provided (used) by financing activities | (99) | (273) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | 67 | (96) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, beginning of period | 1,513 | 1,334 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, end of period | 1,580 | 1,238 |
Parent | ||
Cash flows from operating activities: | ||
Net income (loss) | 139 | 78 |
Impairments and other costs | 0 | |
Equity in earnings of subsidiaries | (136) | (78) |
Dividends received from subsidiaries | 200 | 211 |
Depreciation and amortization | 0 | 0 |
Gains on sale of real estate | 0 | 0 |
Change in assets, liabilities and other items not separately identified | 150 | 251 |
Net cash provided (used) by operating activities | 353 | 462 |
Cash flows from investing activities: | ||
Purchase of property and equipment and capitalized software, net | 0 | 0 |
Other, net | 0 | 0 |
Net cash used by investing activities | 0 | 0 |
Cash flows from financing activities: | ||
Debt repaid | 0 | 0 |
Dividends paid | (116) | (115) |
(Common stock acquired) net of issuance of common stock | 28 | 1 |
Proceeds from noncontrolling interest | 0 | 0 |
Intercompany activity, net | (254) | (515) |
Other, net | (50) | 8 |
Net cash provided (used) by financing activities | (392) | (621) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | (39) | (159) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, beginning of period | 1,109 | 938 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, end of period | 1,070 | 779 |
Subsidiary Issuer | ||
Cash flows from operating activities: | ||
Net income (loss) | (69) | (120) |
Impairments and other costs | 0 | |
Equity in earnings of subsidiaries | (102) | (1) |
Dividends received from subsidiaries | 0 | 0 |
Depreciation and amortization | 82 | 89 |
Gains on sale of real estate | (23) | (65) |
Change in assets, liabilities and other items not separately identified | 175 | 241 |
Net cash provided (used) by operating activities | 63 | 144 |
Cash flows from investing activities: | ||
Purchase of property and equipment and capitalized software, net | (50) | 58 |
Other, net | (10) | 0 |
Net cash used by investing activities | (60) | 58 |
Cash flows from financing activities: | ||
Debt repaid | (3) | (152) |
Dividends paid | 0 | 0 |
(Common stock acquired) net of issuance of common stock | 0 | 0 |
Proceeds from noncontrolling interest | 0 | 0 |
Intercompany activity, net | (10) | (1) |
Other, net | 23 | (31) |
Net cash provided (used) by financing activities | 10 | (184) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | 13 | 18 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, beginning of period | 79 | 81 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, end of period | 92 | 99 |
Other Subsidiaries | ||
Cash flows from operating activities: | ||
Net income (loss) | 299 | 198 |
Impairments and other costs | 19 | |
Equity in earnings of subsidiaries | 0 | 0 |
Dividends received from subsidiaries | 0 | 0 |
Depreciation and amortization | 153 | 154 |
Gains on sale of real estate | (1) | (3) |
Change in assets, liabilities and other items not separately identified | (364) | (507) |
Net cash provided (used) by operating activities | 106 | (158) |
Cash flows from investing activities: | ||
Purchase of property and equipment and capitalized software, net | (117) | (139) |
Other, net | 21 | 21 |
Net cash used by investing activities | (96) | (118) |
Cash flows from financing activities: | ||
Debt repaid | 0 | 0 |
Dividends paid | (200) | (211) |
(Common stock acquired) net of issuance of common stock | 0 | 0 |
Proceeds from noncontrolling interest | 2 | 3 |
Intercompany activity, net | 264 | 516 |
Other, net | 17 | 13 |
Net cash provided (used) by financing activities | 83 | 321 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | 93 | 45 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, beginning of period | 325 | 315 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, end of period | 418 | 360 |
Consolidating Adjustments | ||
Cash flows from operating activities: | ||
Net income (loss) | (238) | (79) |
Impairments and other costs | 0 | |
Equity in earnings of subsidiaries | 238 | 79 |
Dividends received from subsidiaries | (200) | (211) |
Depreciation and amortization | 0 | 0 |
Gains on sale of real estate | 0 | 0 |
Change in assets, liabilities and other items not separately identified | 0 | 0 |
Net cash provided (used) by operating activities | (200) | (211) |
Cash flows from investing activities: | ||
Purchase of property and equipment and capitalized software, net | 0 | 0 |
Other, net | 0 | 0 |
Net cash used by investing activities | 0 | 0 |
Cash flows from financing activities: | ||
Debt repaid | 0 | 0 |
Dividends paid | 200 | 211 |
(Common stock acquired) net of issuance of common stock | 0 | 0 |
Proceeds from noncontrolling interest | 0 | 0 |
Intercompany activity, net | 0 | 0 |
Other, net | 0 | 0 |
Net cash provided (used) by financing activities | 200 | 211 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | 0 | 0 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, beginning of period | 0 | 0 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, end of period | $ 0 | $ 0 |