Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
May 02, 2020 | May 30, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | May 2, 2020 | |
Entity File Number | 1-13536 | |
Entity Registrant Name | Macy's, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 13-3324058 | |
Entity Address, Address Line One | 151 West 34th Street | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10001 | |
City Area Code | 513 | |
Local Phone Number | 579-7780 | |
Title of 12(b) Security | Common Stock, $.01 par value per share | |
Trading Symbol | M | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0000794367 | |
Current Fiscal Year End Date | --01-30 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 310,235,066 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | |
May 02, 2020 | May 04, 2019 | |
Income Statement [Abstract] | ||
Net sales | $ 3,017 | $ 5,504 |
Credit card revenues, net | 131 | 172 |
Cost of sales | (2,501) | (3,403) |
Selling, general and administrative expenses | (1,598) | (2,112) |
Gains on sale of real estate | 16 | 43 |
Impairment, restructuring and other costs | (3,184) | (1) |
Operating income (loss) | (4,119) | 203 |
Benefit plan income, net | 9 | 7 |
Interest expense | (49) | (54) |
Interest income | 2 | 7 |
Income (loss) before income taxes | (4,157) | 163 |
Federal, state and local income tax benefit (expense) | 576 | (27) |
Net income (loss) | $ (3,581) | $ 136 |
Basic earnings (loss) per share | $ (11.53) | $ 0.44 |
Diluted earnings (loss) per share | $ (11.53) | $ 0.44 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
May 02, 2020 | May 04, 2019 | |
Net income (loss) | $ (3,581) | $ 136 |
Amortization of net actuarial loss and prior service credit on post employment and postretirement benefit plans included in net income, before tax | 12 | 8 |
Tax effect related to items of other comprehensive income | (3) | (2) |
Total other comprehensive loss, net of tax effect | 9 | 6 |
Comprehensive income (loss) | $ (3,572) | $ 142 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | May 02, 2020 | Feb. 01, 2020 | May 04, 2019 |
Current Assets: | |||
Cash and cash equivalents | $ 1,523 | $ 685 | $ 737 |
Receivables | 170 | 409 | 237 |
Merchandise inventories | 4,923 | 5,188 | 5,498 |
Prepaid expenses and other current assets | 519 | 528 | 633 |
Total Current Assets | 7,135 | 6,810 | 7,105 |
Property and Equipment - net | 6,425 | 6,633 | 6,499 |
Right of Use Assets | 2,672 | 2,668 | 2,631 |
Goodwill | 838 | 3,908 | 3,908 |
Other Intangible Assets - net | 439 | 439 | 441 |
Other Assets | 1,072 | 714 | 712 |
Total Assets | 18,581 | 21,172 | 21,296 |
Current Liabilities: | |||
Short-term debt | 739 | 539 | 41 |
Merchandise accounts payable | 2,196 | 1,682 | 1,950 |
Accounts Payable and Accrued Liabilities | 2,757 | 3,448 | 2,846 |
Income taxes | 80 | 81 | 182 |
Total Current Liabilities | 5,772 | 5,750 | 5,019 |
Long-Term Debt | 4,918 | 3,621 | 4,680 |
Long-Term Lease Liabilities | 2,923 | 2,918 | 2,823 |
Deferred Income Taxes | 944 | 1,169 | 1,193 |
Other Liabilities | 1,327 | 1,337 | 1,258 |
Shareholders' Equity, Macy's, Inc. | 2,697 | 6,377 | 6,323 |
Total Liabilities and Shareholders' Equity | $ 18,581 | $ 21,172 | $ 21,296 |
Consolidated Balance Sheets (pa
Consolidated Balance Sheets (parenthetical) - USD ($) $ in Millions | May 02, 2020 | Feb. 01, 2020 | May 04, 2019 |
Accumulated depreciation and amortization | $ 4,560 | $ 4,392 | $ 4,621 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Shareholders' Equity Statement - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Equity [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Beginning balance at Feb. 02, 2019 | $ 6,436 | $ 3 | $ 652 | $ 8,050 | $ (1,318) | $ (951) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest | 136 | 136 | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 6 | 6 | ||||
Common stock dividends | (117) | (117) | ||||
Stock-based compensation expense | 14 | 14 | ||||
Stock issued under stock plans | 6 | (60) | 66 | |||
Ending balance at May. 04, 2019 | 6,323 | 3 | 606 | 7,911 | (1,252) | (945) |
Beginning balance at Feb. 01, 2020 | 6,377 | 3 | 621 | 7,989 | (1,241) | (995) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest | (3,581) | (3,581) | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 9 | 9 | ||||
Common stock dividends | (117) | (117) | ||||
Stock-based compensation expense | 6 | 6 | ||||
Stock issued under stock plans | (1) | (62) | 61 | |||
Stockholders' Equity, Other | 4 | 4 | ||||
Ending balance at May. 02, 2020 | $ 2,697 | $ 3 | $ 565 | $ 4,291 | $ (1,180) | $ (982) |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Shareholders' Equity Parenthetical - $ / shares | 3 Months Ended | |
May 02, 2020 | May 04, 2019 | |
Statement of Stockholders' Equity - Parenthetical [Abstract] | ||
Common Stock, Dividends, Per Share, Declared | $ 0.3775 | $ 0.3775 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
May 02, 2020 | May 04, 2019 | |
Statement of Cash Flows [Abstract] | ||
Net income (loss) | $ (3,581) | $ 136 |
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities: | ||
Impairment, restructuring and other costs | 3,184 | 1 |
Depreciation and amortization | 237 | 236 |
Stock-based compensation expense | 6 | 14 |
Gains on sale of real estate | (16) | (43) |
Benefit plans | 12 | 8 |
Deferred Income Taxes | (225) | 7 |
Changes in assets and liabilities: | ||
Decrease in receivables | 236 | 163 |
(Increase) decrease in merchandise inventories | 265 | (235) |
(Increase) Decrease in prepaid expenses and other current assets | 12 | (6) |
Increase in merchandise accounts payable | 629 | 247 |
Decrease in accounts payable and accrued liabilities | (531) | (516) |
Increase (decrease) in current income taxes | (353) | 8 |
Change in other assets and liabilities | (39) | (58) |
Net cash provided (used) by operating activities | (164) | (38) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (122) | (204) |
Capitalized software | (38) | (60) |
Disposition of property and equipment | 21 | 34 |
Other, net | 26 | (7) |
Net cash used by investing activities | (113) | (237) |
Cash flows from financing activities: | ||
Proceeds from Lines of Credit | 1,500 | 0 |
Repayments of Long-term Debt | (4) | (3) |
Dividends paid | (117) | (116) |
Decrease in outstanding checks | (231) | (45) |
Issuance of common stock | 0 | 6 |
Net cash provided (used) by financing activities | 1,148 | (158) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 871 | (433) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, beginning of period | 731 | 1,248 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, end of period | 1,602 | 815 |
Supplemental cash flow information: | ||
Interest paid | 38 | 46 |
Interest received | 3 | 7 |
Income taxes paid (net of refunds received) | $ 2 | $ 12 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows Consolidated Statements of Cash Flows - Restricted Cash Parenthetical - USD ($) $ in Millions | May 02, 2020 | May 04, 2019 |
Statement of Cash Flows - Restricted Cash [Abstract] | ||
Restricted Cash and Cash Equivalents | $ 79 | $ 78 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
May 02, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | Organization and 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 kids'), cosmetics, home furnishings and other consumer goods. The Company has stores in 43 states, the District of Columbia, Guam and Puerto Rico. As of May 2, 2020 , the Company's operations were conducted through Macy's, Bloomingdale's, Bloomingdale's The Outlet, Macy's Backstage and bluemercury. 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 1, 2020 (the "2019 10-K"). The accompanying Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and notes thereto in the 2019 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. The Company considered the novel coronavirus ("COVID-19") related impacts to its estimates, as appropriate, within its Consolidated Financial Statements and there may be changes to those estimates in future periods. The Company believes that the accounting estimates are appropriate after giving consideration to the increased uncertainties surrounding the severity and duration of the COVID-19 pandemic. 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 2, 2020 and May 4, 2019 , 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 2, 2020 and May 4, 2019 (which do not include the Christmas season) are not necessarily indicative of such results for the full fiscal year. Comprehensive Income (Loss) Total comprehensive income (loss) represents the change in equity during a period from sources other than transactions with shareholders and, as such, includes net income (loss). For the Company, the only other components of total comprehensive income (loss) for the 13 weeks ended May 2, 2020 and May 4, 2019 relate to post employment and postretirement plan items. Settlement charges incurred are included as a separate component of income (loss) before income taxes in the Consolidated Statements of Operations. Amortization reclassifications out of accumulated other comprehensive loss are included in the computation of net periodic benefit cost (income) and are included in benefit plan income, net on the Consolidated Statements of Operations. See Note 8, "Benefit Plans," for further information. |
Impact of COVID-19
Impact of COVID-19 | 3 Months Ended |
May 02, 2020 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Impact of COVID-19 | Impact of COVID-19 In March 2020, the World Health Organization declared the outbreak of COVID-19 as a global pandemic, which continues to spread throughout the United States. The COVID-19 pandemic has had a negative impact on the Company's fiscal 2020 operations and financial results to date, and the full financial impact of the pandemic cannot be reasonably estimated at this time due to uncertainty as to the severity and duration of the pandemic. The following summarizes the actions taken and impacts from the COVID-19 pandemic during and subsequent to the 13 weeks ended May 2, 2020 . • The Company temporarily closed all stores on March 18, 2020, which included all Macy’s, Bloomingdale’s, Bluemercury, Macy’s Backstage, Bloomingdales the Outlet and Market by Macy’s stores. The first tranche of stores began reopening on May 4, 2020 and nearly all the Company's stores have been reopened. As a result of store closures, the Company recognized an approximate $300 million inventory write-down, primarily on fashion merchandise, during the 13 weeks ended May 2, 2020 . • In an effort to increase liquidity, the Company fully drew on its $1,500 million credit facility, announced the suspension of quarterly cash dividends beginning in the second quarter of 2020 and took additional steps to reduce discretionary spending. The Company's Board of Directors rescinded its authorization of any unused amounts under the Company's share repurchase program. In June 2020, the Company completed financing activities of nearly $4.5 billion . See Note 7, "Financing Activities," for further discussion on these activities. • To improve the Company's current cash position and reduce its cash expenditures during this uncertain time, the Company's Board of Directors and Chief Executive Officer did not receive compensation from the beginning of the COVID-19 crisis through June 30, 2020. In addition, the Company deferred cash expenditures where possible and temporarily implemented a furlough for the majority of its employee population that will end at the beginning of July 2020. Certain executives not impacted by the furlough took a temporary reduction of their pay through June 30, 2020. In the first quarter of 2020, the Company deferred rent payments for a significant number of its stores. The Company has elected to treat the COVID-19 pandemic-related rent deferrals as accrued liabilities. The Company will continue to recognize expense during the deferral periods. In June 2020, the Company announced a restructuring that will align its cost base with anticipated near-term sales as the business recovers from the impact of the COVID-19 pandemic. The Company will reduce corporate and management headcount by approximately 3,900 . Additionally, the Company has reduced staffing across its stores portfolio, supply chain and customer support network, which it will adjust as sales recover. For fiscal 2020, the Company expects pre-tax costs of approximately $180 million for these restructuring activities, the majority of which will be recorded in the second quarter of 2020 and all of which will be in cash. During the 13 weeks ended May 2, 2020 , the Company incurred non-cash impairment charges on long-lived tangible and right of use assets to adjust the carrying value of certain store locations to their estimated fair value. The Company also incurred a non-cash impairment charge on goodwill as a result of the sustained decline in the Company's market capitalization and decline in projected cash flows primarily as a result of the COVID-19 pandemic. See Note 3, "Impairment, Restructuring and Other Costs" and Note 4, "Goodwill and Indefinite Lived Intangible Assets", respectively, for further discussion of these charges. • On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act ("the CARES Act") was signed into law, providing payroll tax credits for employee retention, deferral of payroll taxes, and several income tax provisions including modifications to the net interest deduction limitation, changes to certain property depreciation and allows for carryback of certain operating losses. The impacts of the CARES Act have been included in the estimation of the Company's annual effective tax rate and the income tax benefit recognized during the 13 weeks ended May 2, 2020. Specifically, the Company has estimated an annual net operating loss that will be available for carryback at a 35% federal income tax rate rather than the current 21% federal income tax rate. The resultant benefit of this rate differential was offset by the impact of the non-tax deductible component of the goodwill impairment charge and additional income tax expense associated with deferred tax remeasurement during the first quarter of 2020. The net impact of these items is the primary driver of the effective tax rate decrease when compared to the same period in 2019. As of May 2, 2020, the Company recognized a $351 million income tax receivable, which is included within Other Assets on the Consolidated Balance Sheets. In addition, during the 13 weeks ended May 2, 2020 , the Company recognized $42 million in employee retention payroll tax credits and elected to defer payment of the employer portion of social security taxes. |
Impairment, Restructuring and O
Impairment, Restructuring and Other Costs | 3 Months Ended |
May 02, 2020 | |
Restructuring Costs and Asset Impairment Charges [Abstract] | |
Impairment, Restructuring and Other Costs | Impairment, Restructuring and Other Costs 13 Weeks Ended May 2, 2020 May 4, 2019 (millions) Impairments $ 3,150 $ — Restructuring 25 — Other 9 1 Total $ 3,184 $ 1 During the 13 weeks ended May 2, 2020 , primarily as a result of the COVID-19 pandemic, the Company incurred non-cash impairment charges totaling $3,150 million consisting of: • $3,070 million of goodwill impairments, with $2,972 million attributable to the Macy's reporting unit and $98 million attributable to the Bluemercury reporting unit. See discussion at Note 4, "Goodwill and Indefinite Lived Intangible Assets." • $80 million of impairments on long-lived tangible and right of use assets to adjust the carrying value of certain store locations to their estimated fair value. A summary of the restructuring and other cash activity for the 13 weeks ended May 2, 2020 related to the Polaris strategy, which was announced in February 2020 and are included within accounts payable and accrued liabilities, is as follows: Severance and other benefits Professional fees and other related charges Total (millions) Balance at February 1, 2020 $ 115 $ 9 $ 124 Additions charged to expense 25 7 32 Cash payments (82 ) (6 ) (88 ) Balance at May 2, 2020 $ 58 $ 10 $ 68 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
May 02, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Indefinite Lived Intangible Assets May 2, February 1, May 4, (millions) Non-amortizing intangible assets Goodwill $ 9,290 $ 9,290 $ 9,290 Accumulated impairment losses (8,452 ) (5,382 ) (5,382 ) 838 3,908 3,908 Tradenames 403 403 403 $ 1,241 $ 4,311 $ 4,311 As a result of the sustained decline in the Company's market capitalization and changes in the Company's long-term projections driven largely by the impacts of the COVID-19 pandemic, the Company determined a triggering event had occurred that required an interim impairment assessment for all of its reporting units and indefinite lived intangible assets. The Company determined the fair value of each of its reporting units using a market approach, an income approach, or a combination of both, where appropriate. Relative to the prior assessment, as part of this current assessment, it was determined that an increase in the discount rate applied in the valuation was required to align with market-based assumptions and company-specific risk. This higher discount rate, in conjunction with revised long-term projections, resulted in lower fair values of the reporting units. As a result the Company recognized $2,972 million and $98 million of goodwill impairment for the Macy's and bluemercury reporting units, respectively, during the first quarter of 2020 . |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
May 02, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings (Loss) Per Share The following tables set forth the computation of basic and diluted earnings (loss) per share: 13 Weeks Ended May 2, 2020 May 4, 2019 Net Shares Net Shares (millions, except per share data) Net income (loss) $ (3,581 ) 309.7 $ 136 308.2 Shares to be issued under deferred compensation and other plans 0.9 0.9 $ (3,581 ) 310.6 $ 136 309.1 Basic earnings (loss) per share $ (11.53 ) $ 0.44 Effect of dilutive securities: Stock options and restricted stock units — 2.3 $ (3,581 ) 310.6 $ 136 311.4 Diluted earnings (loss) per share $ (11.53 ) $ 0.44 For the 13 weeks ended May 2, 2020, as a result of the net loss for the quarter, all options and restricted stock units have been excluded from the calculation of diluted earnings per share and, therefore, there was no difference in the weighted average number of common shares for basic and diluted loss per share as the effect of all potentially dilutive shares outstanding was anti-dilutive. Stock options to purchase 17.3 million shares of common stock and restricted stock units relating to 3.4 million shares of common stock outstanding at May 2, 2020 were excluded from the computation of diluted earnings per share. In addition to the stock options and restricted stock units reflected in the foregoing tables, stock options to purchase 16.9 million shares of common stock and restricted stock units relating to 2.2 million shares of common stock were outstanding at May 4, 2019 , 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. |
Revenue
Revenue | 3 Months Ended |
May 02, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenue Net sales 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, inclusive of delivery income, 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 the 13 weeks ended May 2, 2020 and May 4, 2019 , Macy's accounted for 87% and 88% of the Company's net sales, respectively. Disaggregation of the Company's net sales by family of business for the 13 weeks ended May 2, 2020 and May 4, 2019 were as follows: 13 Weeks Ended Net sales by family of business May 2, 2020 May 4, 2019 (millions) Women's Accessories, Intimate Apparel, Shoes, Cosmetics and Fragrances $ 1,215 $ 2,152 Women's Apparel 579 1,313 Men's and Kids' 573 1,202 Home/Other (a) 650 837 Total $ 3,017 $ 5,504 (a) Other primarily includes restaurant sales, allowance for merchandise returns adjustments 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 $184 million , $269 million and $294 million as of May 2, 2020 , February 1, 2020 and May 4, 2019 , respectively. Included in prepaid expenses and other current assets is an asset totaling $130 million , $147 million and $200 million as of May 2, 2020 , February 1, 2020 and May 4, 2019 , respectively, for the recoverable cost of merchandise estimated to be returned by customers. Gift Cards and Customer Loyalty Programs The Company only offers no-fee, non-expiring gift cards to its customers. At the time gift cards are sold or issued, 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 on a pro-rata basis 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 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 third-party credit cards. 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 unredeemed gift cards and customer loyalty programs is included in accounts payable and accrued liabilities on the Company's Consolidated Balance Sheets and was $732 million , $839 million and $696 million as of May 2, 2020 , February 1, 2020 and May 4, 2019 , respectively. Credit Card Revenues, net |
Financing Activities
Financing Activities | 3 Months Ended |
May 02, 2020 | |
Debt Disclosure [Abstract] | |
Financing Activities | Financing Activities The following table shows the detail of debt repayments: 13 Weeks Ended May 2, 2020 May 4, 2019 (millions) 9.5% Amortizing debentures due 2021 $ 2 $ 2 9.75% Amortizing debentures due 2021 1 1 $ 3 $ 3 As of May 2, 2020, the Company was party to a credit agreement with certain financial institutions. The credit agreement provided for revolving credit borrowings and letters of credit in an aggregate amount not to exceed $1,500 million . The credit agreement was scheduled to expire on May 9, 2024, subject to up to two one-year extensions that may be requested by the Company and agreed to by the lenders. On March 19, 2020, due to the impacts of the COVID-19 pandemic, the Company elected to draw on the full $1,500 million available under the agreement. This amount remained outstanding as of May 2, 2020. June 2020 Financing Activities Secured Debt Issuance On June 8, 2020, the Company issued $1,300 million aggregate principal amount of 8.375% senior secured notes due 2025 (the "Notes"). The Notes bear interest at a rate of 8.375% per annum, which accrues from June 8, 2020 and is payable in arrears on June 15 and December 15 of each year, commencing on December 15, 2020. The Notes mature on June 15, 2025, unless earlier redeemed or repurchased, and are subject to the terms and conditions set forth in the related indenture. The Notes were issued by Macy’s, Inc. and are secured on a first-priority basis by (i) a first mortgage/deed of trust in certain real property of subsidiaries of Macy’s, Inc. that were transferred to Macy’s Propco Holdings, LLC, a newly created direct, wholly-owned subsidiary of Macy’s, Inc. (“Propco”), and (ii) a pledge by Propco of the equity interests in its subsidiaries that own such transferred real property. The Notes are, jointly and severally, unconditionally guaranteed on a secured basis by Propco and its subsidiaries and unconditionally guaranteed on an unsecured basis by Macy’s Retail Holdings, LLC (f/k/a Macy’s Retail Holdings, Inc.) (“MRH”), a direct, wholly owned subsidiary of Macy’s, Inc. The Company used the proceeds of the Notes offering, along with cash on hand, to repay the outstanding borrowings under the existing $1,500 million unsecured credit agreement. Entry into Asset-Based Credit Facility On June 8, 2020, Macy’s Inventory Funding LLC (the “ABL Borrower”), an indirect wholly owned subsidiary of the Company, and its parent, Macy’s Inventory Holdings LLC (the “ABL Parent”), entered into an asset-based credit agreement (the “ABL Credit Facility”) with Bank of America, N.A., as administrative agent and collateral agent, and the lenders party thereto. The ABL Credit Facility provides the ABL Borrower with (i) a $2,851 million revolving credit facility (the “Revolving ABL Facility”), including a swingline sub-facility and a letter of credit sub-facility, and (ii) a bridge revolving credit facility of up to $300 million (the “Bridge Facility”). The ABL Borrower may request increases in the size of the Revolving ABL Facility up to an additional aggregate principal amount of $750 million . Additionally on June 8, 2020 and concurrently with closing the ABL Credit Facility, the ABL Borrower purchased all presently existing inventory, and assumed the liabilities in respect of all presently existing and outstanding trade payables owed to vendors in respect of such inventory, from MRH and certain wholly owned subsidiaries of MRH. The ABL Credit Facility is secured on a first priority basis (subject to customary exceptions) by (i) all assets of the ABL Borrower including all such inventory and the proceeds thereof and (ii) the equity of the ABL Borrower. The ABL Parent guaranteed the ABL Borrower’s obligations under the ABL Credit Facility. The Revolving ABL Facility matures on May 9, 2024, and the Bridge Facility matures on December 30, 2020. The ABL Credit Facility contains customary borrowing conditions including a borrowing base equal to the sum of (a) 80% (which shall automatically increase to 90% upon the satisfaction of certain conditions, including the delivery of an initial appraisal of the inventory) of the net orderly liquidation percentage of eligible inventory, minus (b) customary reserves. Amounts borrowed under the ABL Credit Facility are subject to interest at a rate per annum equal to (i) prior to the Step Down Date (as defined in the ABL Credit Facility), at the ABL Borrower’s option, either (a) adjusted LIBOR plus a margin of 2.75% to 3.00% or (b) a base rate plus a margin of 1.75% to 2.00% , in each case depending on revolving line utilization and (ii) after the Step Down Date, at the ABL Borrower’s option, either (a) adjusted LIBOR plus a margin of 2.25% to 2.50% or (b) a base rate plus a margin of 1.25% to 1.50% , in each case depending on revolving line utilization. The ABL Credit Facility also contains customary covenants that provide for, among other things, limitations on indebtedness, liens, fundamental changes, restricted payments, cash hoarding, and prepayment of certain indebtedness as well as customary representations and warranties and events of default typical for credit facilities of this type. The ABL Credit Facility also requires (1) the Company and its restricted subsidiaries to maintain a fixed charge coverage ratio of at least 1.00 to 1.00 as of the end of any fiscal quarter on or after April 30, 2021 if (a) certain events of default have occurred and are continuing or (b) Availability plus Suppressed Availability (each as defined in the ABL Credit Facility) is less than the greater of (x) 10% of the Loan Cap (as defined in the ABL Credit Facility) and (y) $250 million , in each case, as of the end of such fiscal quarter and (2) prior to April 30, 2021, that the ABL Borrower not permit Availability plus Suppressed Availability to be lower than the greater of (x) 10% of the Loan Cap and (y) $250 million . Amendment to Existing Credit Agreement The Company substantially reduced the credit commitments of its existing $1,500 million unsecured credit agreement which now provides the Company with unsecured revolving credit of up to $75 million . The unsecured revolving credit facility contains covenants that provide for, among other things, limitations on fundamental changes, use of proceeds, and maintenance of property, as well as customary representations and warranties and events of default. Commencement of Exchange Offers and Consent Solicitations for Certain Outstanding Debt Securities of Macy’s Retail Holdings, LLC In June 2020, MRH commenced offers to eligible holders to exchange (each, an “Exchange Offer” and, collectively, the “Exchange Offers”) (i) new 6.65% Senior Secured Debentures due 2024 (“New 2024 Notes”) to be issued by MRH for validly tendered (and not validly withdrawn) outstanding 6.65% Senior Debentures due 2024 issued by MRH (“Old 2024 Notes”), (ii) new 6.7% Senior Secured Debentures due 2028 (“New 2028 Notes”) to be issued by MRH for validly tendered (and not validly withdrawn) outstanding 6.7% Senior Debentures due 2028 issued by MRH (“Old 2028 Notes”), (iii) new 8.75% Senior Secured Debentures due 2029 (“New 2029 Notes”) to be issued by MRH for validly tendered (and not validly withdrawn) outstanding 8.75% Senior Debentures due 2029 issued by MRH (“Old 2029 Notes”), (iv) new 7.875% Senior Secured Debentures due 2030 (“New 2030 Notes”) to be issued by MRH for validly tendered (and not validly withdrawn) outstanding 7.875% Senior Debentures due 2030 issued by MRH (“Old 2030 Notes”), (v) new 6.9% Senior Secured Debentures due 2032 (“New 2032 Notes”) to be issued by MRH for validly tendered (and not validly withdrawn) outstanding 6.9% Senior Debentures due 2032 issued by MRH (“Old 2032 Notes”), and (vi) new 6.7% Senior Secured Debentures due 2034 (“New 2034 Notes” and, together with the New 2024 Notes, New 2028 Notes, New 2029 Notes, New 2030 Notes and New 2032 Notes, the “New Notes” and each series, a “series of New Notes”) to be issued by MRH for validly tendered (and not validly withdrawn) outstanding 6.7% Senior Debentures due 2034 issued by MRH (“Old 2034 Notes” and, together with the Old 2024 Notes, Old 2028 Notes, Old 2029 Notes, Old 2030 Notes and Old 2032 Notes, the “Old Notes” and each series, a “series of Old Notes”). Each New Note issued in the Exchange Offers for a validly tendered Old Note will have an interest rate and maturity date that is identical to the interest rate and maturity date of the tendered Old Note, as well as identical interest payment dates and optional redemption prices. The New Notes will be MRH’s and Macy’s general, senior obligations and will be secured by a second-priority lien on the same collateral securing the Notes. In addition, MRH is soliciting consents from holders of each series of Old Notes (each, a “Consent Solicitation” and, collectively, the “Consent Solicitations”) pursuant to the separate Consent Solicitation Statement (as defined below) to adopt certain proposed amendments to the indenture governing the Old Notes (the “Existing Indenture”) to conform certain provisions in the negative pledge covenant in the Existing Indenture to the provisions of the negative pledge covenant in MRH’s most recent indenture (the “Proposed Amendments”). |
Benefit Plans
Benefit Plans | 3 Months Ended |
May 02, 2020 | |
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 2, 2020 May 4, 2019 (millions) 401(k) Qualified Defined Contribution Plan $ 13 $ 25 Non-Qualified Defined Contribution Plan $ — $ 1 Pension Plan Service cost $ 1 $ 1 Interest cost 19 26 Expected return on assets (45 ) (48 ) Recognition of net actuarial loss 10 7 Amortization of prior service credit — — $ (15 ) $ (14 ) Supplementary Retirement Plan Service cost $ — $ — Interest cost 4 6 Recognition of net actuarial loss 3 2 Amortization of prior service cost — — $ 7 $ 8 Total Retirement Expense $ 5 $ 20 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 02, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring 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: Level 1: Quoted prices in active markets for identical assets Level 2: Significant observable inputs for the assets Level 3: Significant unobservable inputs for the assets May 2, 2020 May 4, 2019 Fair Value Measurements Fair Value Measurements Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (millions) Marketable equity and debt securities $ 102 $ 28 $ 74 $ — $ 110 $ 31 $ 79 $ — 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. Goodwill and other indefinite-lived intangible assets, are evaluated for impairment annually or more frequently if events or conditions indicate the carrying value of a reporting unit or an indefinite-lived intangible asset may not be recoverable. Impairment testing compares the carrying amount of the reporting unit or other intangible assets with its fair value. During the 13 weeks ended May 2, 2020 , the Company performed an interim impairment test for goodwill. The fair value was calculated using a guideline public company method, discounted cash flow or a combination of both for the reporting units. The fair value of goodwill is a Level 3 valuation based on certain unobservable inputs including projected cash flows and estimated risk-adjusted rates of return that would be utilized by market participants in valuing these assets or prices of similar assets. During the 13 weeks ended May 2, 2020 , long-lived and right of use assets were tested for impairment. The fair values of these assets is a Level 3 valuation based on certain unobservalbe inputs including projected cash flows and an estimated risk-adjusted rate of return that would be utilized by market participants in valuing these assets or prices of similar assets. The following table shows the estimated fair value of the Company's long-term debt: May 2, 2020 May 4, 2019 Notional Amount Carrying Amount Fair Value Notional Amount Carrying Amount Fair Value (millions) Long-term debt $ 4,903 $ 4,918 $ 3,698 $ 4,667 $ 4,680 $ 4,614 |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 3 Months Ended |
May 02, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Consolidating Financial Information | Condensed Consolidating Financial Information Certain debt obligations of the Company, which constitute debt obligations of Macy's Retail Holdings, Inc. ("Subsidiary Issuer"), a 100%-owned subsidiary of Macy's, Inc. ("Parent"), are fully and unconditionally guaranteed by Parent. In the following condensed consolidating financial statements, "Other Subsidiaries" includes all other direct subsidiaries of Parent, including Bluemercury, Inc., FDS Bank, West 34th Street Insurance Company New York, Macy's Merchandising Corporation, Macy's Merchandising Group, Inc. and its subsidiaries Macy's Merchandising Group (Hong Kong) Limited, Macy's Merchandising Group Procurement, LLC, Macy's Merchandising Group International, LLC, Macy's Merchandising Group International (Hong Kong) Limited, and Macy's China Limited. "Subsidiary Issuer" includes operating divisions and non- guarantor subsidiaries of the Subsidiary Issuer on an equity basis. The assets and liabilities and results of operations of the non-guarantor subsidiaries of the Subsidiary Issuer are also reflected in "Other Subsidiaries." In June 2020, in conjunction with the financing discussed in Note 7, "Financing Activities," Macy's Retail Holdings, Inc. was converted into a limited liability company and in May 2020 direct, wholly-owned subsidiaries of the Parent, Macy’s Inventory Holdings LLC and Macy’s Propco Holdings, LLC, were created. Condensed Consolidating Statements of Comprehensive Income for the 13 weeks ended May 2, 2020 and May 4, 2019 , Condensed Consolidating Balance Sheets as of May 2, 2020 , May 4, 2019 and February 1, 2020 , and the related Condensed Consolidating Statements of Cash Flows for the 13 weeks ended May 2, 2020 and May 4, 2019 are presented on the following pages. Condensed Consolidating Statement of Comprehensive Income (Loss) For the 13 Weeks Ended May 2, 2020 (millions) Parent Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Consolidated Net sales $ — $ 867 $ 2,955 $ (805 ) $ 3,017 Credit card revenues (expense), net — (5 ) 136 — 131 Cost of sales — (796 ) (2,510 ) 805 (2,501 ) Selling, general and administrative expenses — (562 ) (1,036 ) — (1,598 ) Gains on sale of real estate — — 16 — 16 Impairment, restructuring and other costs — (2,722 ) (462 ) — (3,184 ) Operating loss — (3,218 ) (901 ) — (4,119 ) Benefit plan income, net — 3 6 — 9 Interest (expense) income, net: External 1 (49 ) 1 — (47 ) Intercompany — (18 ) 18 — — Equity in loss of subsidiaries (3,582 ) (795 ) — 4,377 — Loss before income taxes (3,581 ) (4,077 ) (876 ) 4,377 (4,157 ) Federal, state and local income — 427 149 — 576 Net loss $ (3,581 ) $ (3,650 ) $ (727 ) $ 4,377 $ (3,581 ) Comprehensive loss $ (3,572 ) $ (3,641 ) $ (721 ) $ 4,362 $ (3,572 ) Condensed Consolidating Statement of Comprehensive Income For the 13 Weeks Ended May 4, 2019 (millions) Parent Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Consolidated Net sales $ — $ 2,154 $ 4,768 $ (1,418 ) $ 5,504 Credit card revenues, net — (2 ) 174 — 172 Cost of sales — (1,341 ) (3,480 ) 1,418 (3,403 ) Selling, general and administrative expenses — (803 ) (1,309 ) — (2,112 ) Gains on sale of real estate — 24 19 — 43 Impairment and other costs — — (1 ) — (1 ) Operating income — 32 171 — 203 Benefit plan income, net — 3 4 — 7 Interest (expense) income, net: External 5 (53 ) 1 — (47 ) Intercompany — (19 ) 19 — — Equity in earnings (loss) of subsidiaries 132 (30 ) — (102 ) — Income (loss) before income taxes 137 (67 ) 195 (102 ) 163 Federal, state and local income (1 ) 24 (50 ) — (27 ) Net income (loss) $ 136 $ (43 ) $ 145 $ (102 ) $ 136 Comprehensive income (loss) $ 142 $ (38 ) $ 149 $ (111 ) $ 142 Condensed Consolidating Balance Sheet As of May 2, 2020 (millions) Parent Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Consolidated ASSETS: Current Assets: Cash and cash equivalents $ 1,160 $ 25 $ 338 $ — $ 1,523 Receivables — 23 147 — 170 Merchandise inventories — 2,072 2,851 — 4,923 Income taxes — — 3 (3 ) — Prepaid expenses and other current assets — 102 417 — 519 Total Current Assets 1,160 2,222 3,756 (3 ) 7,135 Property and Equipment – net — 2,978 3,447 — 6,425 Right of Use Assets — 600 2,072 — 2,672 Goodwill — 670 168 — 838 Other Intangible Assets – net — 4 435 — 439 Other Assets 418 46 608 — 1,072 Deferred Income Taxes 11 — — (11 ) — Intercompany Receivable 1,598 — 677 (2,275 ) — Investment in Subsidiaries — 2,010 — (2,010 ) — Total Assets $ 3,187 $ 8,530 $ 11,163 $ (4,299 ) $ 18,581 LIABILITIES AND SHAREHOLDERS’ EQUITY: Current Liabilities: Short-term debt $ — $ 739 $ — $ — $ 739 Merchandise accounts payable — 928 1,268 — 2,196 Accounts payable and accrued liabilities 14 719 2,024 — 2,757 Income taxes 65 18 — (3 ) 80 Total Current Liabilities 79 2,404 3,292 (3 ) 5,772 Long-Term Debt — 4,918 — — 4,918 Long-Term Lease Liabilities — 548 2,375 — 2,923 Intercompany Payable — 2,275 — (2,275 ) — Deferred Income Taxes — 377 578 (11 ) 944 Other Liabilities 25 407 895 — 1,327 Accumulated Losses from Subsidiaries 386 — — (386 ) — Shareholders' Equity (Deficit) 2,697 (2,399 ) 4,023 (1,624 ) 2,697 Total Liabilities and Shareholders' Equity $ 3,187 $ 8,530 $ 11,163 $ (4,299 ) $ 18,581 Condensed Consolidating Balance Sheet As of May 4, 2019 (millions) Parent Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Consolidated ASSETS: Current Assets: Cash and cash equivalents $ 293 $ 151 $ 293 $ — $ 737 Receivables — 40 197 — 237 Merchandise inventories — 2,369 3,129 — 5,498 Prepaid expenses and other current assets — 163 470 — 633 Total Current Assets 293 2,723 4,089 — 7,105 Property and Equipment – net — 3,202 3,297 — 6,499 Right of Use Assets — 677 1,954 — 2,631 Goodwill — 3,326 582 — 3,908 Other Intangible Assets – net — 5 436 — 441 Other Assets — 28 684 — 712 Deferred Income Taxes 6 — — (6 ) — Intercompany Receivable 2,436 — 886 (3,322 ) — Investment in Subsidiaries 3,776 3,061 — (6,837 ) — Total Assets $ 6,511 $ 13,022 $ 11,928 $ (10,165 ) $ 21,296 LIABILITIES AND SHAREHOLDERS’ EQUITY: Current Liabilities: Short-term debt $ — $ 41 $ — $ — $ 41 Merchandise accounts payable — 845 1,105 — 1,950 Accounts payable and accrued liabilities 73 786 1,987 — 2,846 Income taxes 87 61 34 — 182 Total Current Liabilities 160 1,733 3,126 — 5,019 Long-Term Debt — 4,680 — — 4,680 Long-Term Lease Liabilities — 607 2,216 — 2,823 Intercompany Payable — 3,322 — (3,322 ) — Deferred Income Taxes — 626 573 (6 ) 1,193 Other Liabilities 28 341 889 — 1,258 Shareholders' Equity 6,323 1,713 5,124 (6,837 ) 6,323 Total Liabilities and Shareholders' Equity $ 6,511 $ 13,022 $ 11,928 $ (10,165 ) $ 21,296 Condensed Consolidating Balance Sheet As of February 1, 2020 (millions) Parent Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Consolidated ASSETS: Current Assets: Cash and cash equivalents $ 413 $ 59 $ 213 $ — $ 685 Receivables — 83 326 — 409 Merchandise inventories — 2,239 2,949 — 5,188 Prepaid expenses and other current assets — 118 410 — 528 Total Current Assets 413 2,499 3,898 — 6,810 Property and Equipment – net — 3,103 3,530 — 6,633 Right of Use Assets — 611 2,057 — 2,668 Goodwill — 3,326 582 — 3,908 Other Intangible Assets – net — 4 435 — 439 Other Assets — 37 677 — 714 Deferred Income Taxes 12 — — (12 ) — Intercompany Receivable 2,675 — 1,128 (3,803 ) — Investment in Subsidiaries 3,433 2,796 — (6,229 ) — Total Assets $ 6,533 $ 12,376 $ 12,307 $ (10,044 ) $ 21,172 LIABILITIES AND SHAREHOLDERS’ EQUITY: Current Liabilities: Short-term debt $ — $ 539 $ — $ — $ 539 Merchandise accounts payable — 702 980 — 1,682 Accounts payable and accrued liabilities 126 909 2,413 — 3,448 Income taxes 5 11 65 — 81 Total Current Liabilities 131 2,161 3,458 — 5,750 Long-Term Debt — 3,621 — — 3,621 Long-Term Lease Liabilities — 543 2,375 — 2,918 Intercompany Payable — 3,803 — (3,803 ) — Deferred Income Taxes — 595 586 (12 ) 1,169 Other Liabilities 25 414 898 — 1,337 Shareholders' Equity 6,377 1,239 4,990 (6,229 ) 6,377 Total Liabilities and Shareholders' Equity $ 6,533 $ 12,376 $ 12,307 $ (10,044 ) $ 21,172 Condensed Consolidating Statement of Cash Flows For the 13 Weeks Ended May 2, 2020 (millions) Parent Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Consolidated Cash flows from operating activities: Net loss $ (3,581 ) $ (3,650 ) $ (727 ) $ 4,377 $ (3,581 ) Impairment, restructuring and other costs — 2,722 462 — 3,184 Equity in loss of subsidiaries 3,582 795 — (4,377 ) — Dividends received from subsidiaries 251 — — (251 ) — Depreciation and amortization — 77 160 — 237 Gains on sale of real estate — — (16 ) — (16 ) Changes in assets, liabilities and other items not separately identified (353 ) 151 214 — 12 Net cash provided (used) by operating activities (101 ) 95 93 (251 ) (164 ) Cash flows from investing activities: Purchase of property and equipment and capitalized software, net of dispositions — (34 ) (105 ) — (139 ) Other, net — — 26 — 26 Net cash used by investing activities — (34 ) (79 ) — (113 ) Cash flows from financing activities: Debt issued, net of debt repaid — 1,497 (1 ) — 1,496 Dividends paid (117 ) — (251 ) 251 (117 ) Intercompany activity, net 1,082 (1,529 ) 447 — — Other, net (117 ) (68 ) (46 ) — (231 ) Net cash provided (used) by financing activities 848 (100 ) 149 251 1,148 Net increase (decrease) in cash, cash equivalents and restricted cash 747 (39 ) 163 — 871 Cash, cash equivalents and restricted cash at beginning of period 413 64 254 — 731 Cash, cash equivalents and restricted cash at end of period $ 1,160 $ 25 $ 417 $ — $ 1,602 Condensed Consolidating Statement of Cash Flows For the 13 Weeks Ended May 4, 2019 (millions) Parent Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Consolidated Cash flows from operating activities: Net income (loss) $ 136 $ (43 ) $ 145 $ (102 ) $ 136 Impairment and other costs — — 1 — 1 Equity in loss (earnings) of subsidiaries (132 ) 30 — 102 — Dividends received from subsidiaries 225 — — (225 ) — Depreciation and amortization — 85 151 — 236 Gains on sale of real estate — (24 ) (19 ) — (43 ) Changes in assets, liabilities and other items not separately identified 78 (118 ) (328 ) — (368 ) Net cash provided (used) by operating activities 307 (70 ) (50 ) (225 ) (38 ) Cash flows from investing activities: Purchase of property and equipment and capitalized software, net of dispositions — (52 ) (178 ) — (230 ) Other, net — — (7 ) — (7 ) Net cash used by investing activities — (52 ) (185 ) — (237 ) Cash flows from financing activities: Debt repaid — (3 ) — — (3 ) Dividends paid (116 ) — (225 ) 225 (116 ) Issuance of common stock 6 — — — 6 Intercompany activity, net (700 ) 214 486 — — Other, net (93 ) 28 20 — (45 ) Net cash provided (used) by financing activities (903 ) 239 281 225 (158 ) Net increase (decrease) in cash, cash equivalents and restricted cash (596 ) 117 46 — (433 ) Cash, cash equivalents and restricted cash at beginning of period 889 64 295 — 1,248 Cash, cash equivalents and restricted cash at end of period $ 293 $ 181 $ 341 $ — $ 815 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policy) | 3 Months Ended |
May 02, 2020 | |
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 kids'), cosmetics, home furnishings and other consumer goods. The Company has stores in 43 states, the District of Columbia, Guam and Puerto Rico. As of May 2, 2020 , the Company's operations were conducted through Macy's, Bloomingdale's, Bloomingdale's The Outlet, Macy's Backstage and bluemercury. 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 1, 2020 (the "2019 10-K"). The accompanying Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and notes thereto in the 2019 10-K. |
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. The Company considered the novel coronavirus ("COVID-19") related impacts to its estimates, as appropriate, within its Consolidated Financial Statements and there may be changes to those estimates in future periods. The Company believes that the accounting estimates are appropriate after giving consideration to the increased uncertainties surrounding the severity and duration of the COVID-19 pandemic. 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 2, 2020 and May 4, 2019 , 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. |
Comprehensive Income | Comprehensive Income (Loss) Total comprehensive income (loss) represents the change in equity during a period from sources other than transactions with shareholders and, as such, includes net income (loss). For the Company, the only other components of total comprehensive income (loss) for the 13 weeks ended May 2, 2020 and May 4, 2019 relate to post employment and postretirement plan items. Settlement charges incurred are included as a separate component of income (loss) before income taxes in the Consolidated Statements of Operations. Amortization reclassifications out of accumulated other comprehensive loss are included in the computation of net periodic benefit cost (income) and are included in benefit plan income, net on the Consolidated Statements of Operations. See Note 8, "Benefit Plans," for further information. |
Revenue Recognition (Policies)
Revenue Recognition (Policies) | 3 Months Ended |
May 02, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenue Net sales 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, inclusive of delivery income, 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 the 13 weeks ended May 2, 2020 and May 4, 2019 , Macy's accounted for 87% and 88% of the Company's net sales, respectively. Disaggregation of the Company's net sales by family of business for the 13 weeks ended May 2, 2020 and May 4, 2019 were as follows: 13 Weeks Ended Net sales by family of business May 2, 2020 May 4, 2019 (millions) Women's Accessories, Intimate Apparel, Shoes, Cosmetics and Fragrances $ 1,215 $ 2,152 Women's Apparel 579 1,313 Men's and Kids' 573 1,202 Home/Other (a) 650 837 Total $ 3,017 $ 5,504 (a) Other primarily includes restaurant sales, allowance for merchandise returns adjustments 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 $184 million , $269 million and $294 million as of May 2, 2020 , February 1, 2020 and May 4, 2019 , respectively. Included in prepaid expenses and other current assets is an asset totaling $130 million , $147 million and $200 million as of May 2, 2020 , February 1, 2020 and May 4, 2019 , respectively, for the recoverable cost of merchandise estimated to be returned by customers. Gift Cards and Customer Loyalty Programs The Company only offers no-fee, non-expiring gift cards to its customers. At the time gift cards are sold or issued, 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 on a pro-rata basis 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 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 third-party credit cards. 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 unredeemed gift cards and customer loyalty programs is included in accounts payable and accrued liabilities on the Company's Consolidated Balance Sheets and was $732 million , $839 million and $696 million as of May 2, 2020 , February 1, 2020 and May 4, 2019 , respectively. Credit Card Revenues, net |
Impairment, Restructuring and_2
Impairment, Restructuring and Other Costs (Tables) | 3 Months Ended |
May 02, 2020 | |
Restructuring Costs and Asset Impairment Charges [Abstract] | |
Restructuring, Impairments, Store Closing and Other Costs | 13 Weeks Ended May 2, 2020 May 4, 2019 (millions) Impairments $ 3,150 $ — Restructuring 25 — Other 9 1 Total $ 3,184 $ 1 |
Schedule of Restructuring Reserve by Type of Cost | A summary of the restructuring and other cash activity for the 13 weeks ended May 2, 2020 related to the Polaris strategy, which was announced in February 2020 and are included within accounts payable and accrued liabilities, is as follows: Severance and other benefits Professional fees and other related charges Total (millions) Balance at February 1, 2020 $ 115 $ 9 $ 124 Additions charged to expense 25 7 32 Cash payments (82 ) (6 ) (88 ) Balance at May 2, 2020 $ 58 $ 10 $ 68 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
May 02, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Company's Goodwill and Other Intangible Assets | May 2, February 1, May 4, (millions) Non-amortizing intangible assets Goodwill $ 9,290 $ 9,290 $ 9,290 Accumulated impairment losses (8,452 ) (5,382 ) (5,382 ) 838 3,908 3,908 Tradenames 403 403 403 $ 1,241 $ 4,311 $ 4,311 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
May 02, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following tables set forth the computation of basic and diluted earnings (loss) per share: 13 Weeks Ended May 2, 2020 May 4, 2019 Net Shares Net Shares (millions, except per share data) Net income (loss) $ (3,581 ) 309.7 $ 136 308.2 Shares to be issued under deferred compensation and other plans 0.9 0.9 $ (3,581 ) 310.6 $ 136 309.1 Basic earnings (loss) per share $ (11.53 ) $ 0.44 Effect of dilutive securities: Stock options and restricted stock units — 2.3 $ (3,581 ) 310.6 $ 136 311.4 Diluted earnings (loss) per share $ (11.53 ) $ 0.44 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
May 02, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Sales from Merchandise Category [Table Text Block] | For the 13 weeks ended May 2, 2020 and May 4, 2019 , Macy's accounted for 87% and 88% of the Company's net sales, respectively. Disaggregation of the Company's net sales by family of business for the 13 weeks ended May 2, 2020 and May 4, 2019 were as follows: 13 Weeks Ended Net sales by family of business May 2, 2020 May 4, 2019 (millions) Women's Accessories, Intimate Apparel, Shoes, Cosmetics and Fragrances $ 1,215 $ 2,152 Women's Apparel 579 1,313 Men's and Kids' 573 1,202 Home/Other (a) 650 837 Total $ 3,017 $ 5,504 (a) Other primarily includes restaurant sales, allowance for merchandise returns adjustments and breakage income from unredeemed gift cards. |
Financing Activities (Tables)
Financing Activities (Tables) | 3 Months Ended |
May 02, 2020 | |
Extinguishment of Debt [Line Items] | |
Detail of Debt Repayments | The following table shows the detail of debt repayments: 13 Weeks Ended May 2, 2020 May 4, 2019 (millions) 9.5% Amortizing debentures due 2021 $ 2 $ 2 9.75% Amortizing debentures due 2021 1 1 $ 3 $ 3 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 3 Months Ended |
May 02, 2020 | |
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 2, 2020 May 4, 2019 (millions) 401(k) Qualified Defined Contribution Plan $ 13 $ 25 Non-Qualified Defined Contribution Plan $ — $ 1 Pension Plan Service cost $ 1 $ 1 Interest cost 19 26 Expected return on assets (45 ) (48 ) Recognition of net actuarial loss 10 7 Amortization of prior service credit — — $ (15 ) $ (14 ) Supplementary Retirement Plan Service cost $ — $ — Interest cost 4 6 Recognition of net actuarial loss 3 2 Amortization of prior service cost — — $ 7 $ 8 Total Retirement Expense $ 5 $ 20 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 02, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring 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: Level 1: Quoted prices in active markets for identical assets Level 2: Significant observable inputs for the assets Level 3: Significant unobservable inputs for the assets May 2, 2020 May 4, 2019 Fair Value Measurements Fair Value Measurements Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (millions) Marketable equity and debt securities $ 102 $ 28 $ 74 $ — $ 110 $ 31 $ 79 $ — |
Estimated Fair Values of Company's Long Term Debt | The following table shows the estimated fair value of the Company's long-term debt: May 2, 2020 May 4, 2019 Notional Amount Carrying Amount Fair Value Notional Amount Carrying Amount Fair Value (millions) Long-term debt $ 4,903 $ 4,918 $ 3,698 $ 4,667 $ 4,680 $ 4,614 |
Condensed Consolidating Finan_2
Condensed Consolidating Financial Information (Tables) | 3 Months Ended |
May 02, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Consolidating Balance Sheet [Table Text Block] | Condensed Consolidating Balance Sheet As of May 2, 2020 (millions) Parent Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Consolidated ASSETS: Current Assets: Cash and cash equivalents $ 1,160 $ 25 $ 338 $ — $ 1,523 Receivables — 23 147 — 170 Merchandise inventories — 2,072 2,851 — 4,923 Income taxes — — 3 (3 ) — Prepaid expenses and other current assets — 102 417 — 519 Total Current Assets 1,160 2,222 3,756 (3 ) 7,135 Property and Equipment – net — 2,978 3,447 — 6,425 Right of Use Assets — 600 2,072 — 2,672 Goodwill — 670 168 — 838 Other Intangible Assets – net — 4 435 — 439 Other Assets 418 46 608 — 1,072 Deferred Income Taxes 11 — — (11 ) — Intercompany Receivable 1,598 — 677 (2,275 ) — Investment in Subsidiaries — 2,010 — (2,010 ) — Total Assets $ 3,187 $ 8,530 $ 11,163 $ (4,299 ) $ 18,581 LIABILITIES AND SHAREHOLDERS’ EQUITY: Current Liabilities: Short-term debt $ — $ 739 $ — $ — $ 739 Merchandise accounts payable — 928 1,268 — 2,196 Accounts payable and accrued liabilities 14 719 2,024 — 2,757 Income taxes 65 18 — (3 ) 80 Total Current Liabilities 79 2,404 3,292 (3 ) 5,772 Long-Term Debt — 4,918 — — 4,918 Long-Term Lease Liabilities — 548 2,375 — 2,923 Intercompany Payable — 2,275 — (2,275 ) — Deferred Income Taxes — 377 578 (11 ) 944 Other Liabilities 25 407 895 — 1,327 Accumulated Losses from Subsidiaries 386 — — (386 ) — Shareholders' Equity (Deficit) 2,697 (2,399 ) 4,023 (1,624 ) 2,697 Total Liabilities and Shareholders' Equity $ 3,187 $ 8,530 $ 11,163 $ (4,299 ) $ 18,581 Condensed Consolidating Balance Sheet As of May 4, 2019 (millions) Parent Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Consolidated ASSETS: Current Assets: Cash and cash equivalents $ 293 $ 151 $ 293 $ — $ 737 Receivables — 40 197 — 237 Merchandise inventories — 2,369 3,129 — 5,498 Prepaid expenses and other current assets — 163 470 — 633 Total Current Assets 293 2,723 4,089 — 7,105 Property and Equipment – net — 3,202 3,297 — 6,499 Right of Use Assets — 677 1,954 — 2,631 Goodwill — 3,326 582 — 3,908 Other Intangible Assets – net — 5 436 — 441 Other Assets — 28 684 — 712 Deferred Income Taxes 6 — — (6 ) — Intercompany Receivable 2,436 — 886 (3,322 ) — Investment in Subsidiaries 3,776 3,061 — (6,837 ) — Total Assets $ 6,511 $ 13,022 $ 11,928 $ (10,165 ) $ 21,296 LIABILITIES AND SHAREHOLDERS’ EQUITY: Current Liabilities: Short-term debt $ — $ 41 $ — $ — $ 41 Merchandise accounts payable — 845 1,105 — 1,950 Accounts payable and accrued liabilities 73 786 1,987 — 2,846 Income taxes 87 61 34 — 182 Total Current Liabilities 160 1,733 3,126 — 5,019 Long-Term Debt — 4,680 — — 4,680 Long-Term Lease Liabilities — 607 2,216 — 2,823 Intercompany Payable — 3,322 — (3,322 ) — Deferred Income Taxes — 626 573 (6 ) 1,193 Other Liabilities 28 341 889 — 1,258 Shareholders' Equity 6,323 1,713 5,124 (6,837 ) 6,323 Total Liabilities and Shareholders' Equity $ 6,511 $ 13,022 $ 11,928 $ (10,165 ) $ 21,296 Condensed Consolidating Balance Sheet As of February 1, 2020 (millions) Parent Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Consolidated ASSETS: Current Assets: Cash and cash equivalents $ 413 $ 59 $ 213 $ — $ 685 Receivables — 83 326 — 409 Merchandise inventories — 2,239 2,949 — 5,188 Prepaid expenses and other current assets — 118 410 — 528 Total Current Assets 413 2,499 3,898 — 6,810 Property and Equipment – net — 3,103 3,530 — 6,633 Right of Use Assets — 611 2,057 — 2,668 Goodwill — 3,326 582 — 3,908 Other Intangible Assets – net — 4 435 — 439 Other Assets — 37 677 — 714 Deferred Income Taxes 12 — — (12 ) — Intercompany Receivable 2,675 — 1,128 (3,803 ) — Investment in Subsidiaries 3,433 2,796 — (6,229 ) — Total Assets $ 6,533 $ 12,376 $ 12,307 $ (10,044 ) $ 21,172 LIABILITIES AND SHAREHOLDERS’ EQUITY: Current Liabilities: Short-term debt $ — $ 539 $ — $ — $ 539 Merchandise accounts payable — 702 980 — 1,682 Accounts payable and accrued liabilities 126 909 2,413 — 3,448 Income taxes 5 11 65 — 81 Total Current Liabilities 131 2,161 3,458 — 5,750 Long-Term Debt — 3,621 — — 3,621 Long-Term Lease Liabilities — 543 2,375 — 2,918 Intercompany Payable — 3,803 — (3,803 ) — Deferred Income Taxes — 595 586 (12 ) 1,169 Other Liabilities 25 414 898 — 1,337 Shareholders' Equity 6,377 1,239 4,990 (6,229 ) 6,377 Total Liabilities and Shareholders' Equity $ 6,533 $ 12,376 $ 12,307 $ (10,044 ) $ 21,172 |
Condensed Consolidating Statement of Cash Flows [Table Text Block] | Condensed Consolidating Statement of Cash Flows For the 13 Weeks Ended May 2, 2020 (millions) Parent Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Consolidated Cash flows from operating activities: Net loss $ (3,581 ) $ (3,650 ) $ (727 ) $ 4,377 $ (3,581 ) Impairment, restructuring and other costs — 2,722 462 — 3,184 Equity in loss of subsidiaries 3,582 795 — (4,377 ) — Dividends received from subsidiaries 251 — — (251 ) — Depreciation and amortization — 77 160 — 237 Gains on sale of real estate — — (16 ) — (16 ) Changes in assets, liabilities and other items not separately identified (353 ) 151 214 — 12 Net cash provided (used) by operating activities (101 ) 95 93 (251 ) (164 ) Cash flows from investing activities: Purchase of property and equipment and capitalized software, net of dispositions — (34 ) (105 ) — (139 ) Other, net — — 26 — 26 Net cash used by investing activities — (34 ) (79 ) — (113 ) Cash flows from financing activities: Debt issued, net of debt repaid — 1,497 (1 ) — 1,496 Dividends paid (117 ) — (251 ) 251 (117 ) Intercompany activity, net 1,082 (1,529 ) 447 — — Other, net (117 ) (68 ) (46 ) — (231 ) Net cash provided (used) by financing activities 848 (100 ) 149 251 1,148 Net increase (decrease) in cash, cash equivalents and restricted cash 747 (39 ) 163 — 871 Cash, cash equivalents and restricted cash at beginning of period 413 64 254 — 731 Cash, cash equivalents and restricted cash at end of period $ 1,160 $ 25 $ 417 $ — $ 1,602 Condensed Consolidating Statement of Cash Flows For the 13 Weeks Ended May 4, 2019 (millions) Parent Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Consolidated Cash flows from operating activities: Net income (loss) $ 136 $ (43 ) $ 145 $ (102 ) $ 136 Impairment and other costs — — 1 — 1 Equity in loss (earnings) of subsidiaries (132 ) 30 — 102 — Dividends received from subsidiaries 225 — — (225 ) — Depreciation and amortization — 85 151 — 236 Gains on sale of real estate — (24 ) (19 ) — (43 ) Changes in assets, liabilities and other items not separately identified 78 (118 ) (328 ) — (368 ) Net cash provided (used) by operating activities 307 (70 ) (50 ) (225 ) (38 ) Cash flows from investing activities: Purchase of property and equipment and capitalized software, net of dispositions — (52 ) (178 ) — (230 ) Other, net — — (7 ) — (7 ) Net cash used by investing activities — (52 ) (185 ) — (237 ) Cash flows from financing activities: Debt repaid — (3 ) — — (3 ) Dividends paid (116 ) — (225 ) 225 (116 ) Issuance of common stock 6 — — — 6 Intercompany activity, net (700 ) 214 486 — — Other, net (93 ) 28 20 — (45 ) Net cash provided (used) by financing activities (903 ) 239 281 225 (158 ) Net increase (decrease) in cash, cash equivalents and restricted cash (596 ) 117 46 — (433 ) Cash, cash equivalents and restricted cash at beginning of period 889 64 295 — 1,248 Cash, cash equivalents and restricted cash at end of period $ 293 $ 181 $ 341 $ — $ 815 |
Condensed Consolidating Statement of Comprehensive Income [Table Text Block] | Condensed Consolidating Statement of Comprehensive Income (Loss) For the 13 Weeks Ended May 2, 2020 (millions) Parent Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Consolidated Net sales $ — $ 867 $ 2,955 $ (805 ) $ 3,017 Credit card revenues (expense), net — (5 ) 136 — 131 Cost of sales — (796 ) (2,510 ) 805 (2,501 ) Selling, general and administrative expenses — (562 ) (1,036 ) — (1,598 ) Gains on sale of real estate — — 16 — 16 Impairment, restructuring and other costs — (2,722 ) (462 ) — (3,184 ) Operating loss — (3,218 ) (901 ) — (4,119 ) Benefit plan income, net — 3 6 — 9 Interest (expense) income, net: External 1 (49 ) 1 — (47 ) Intercompany — (18 ) 18 — — Equity in loss of subsidiaries (3,582 ) (795 ) — 4,377 — Loss before income taxes (3,581 ) (4,077 ) (876 ) 4,377 (4,157 ) Federal, state and local income — 427 149 — 576 Net loss $ (3,581 ) $ (3,650 ) $ (727 ) $ 4,377 $ (3,581 ) Comprehensive loss $ (3,572 ) $ (3,641 ) $ (721 ) $ 4,362 $ (3,572 ) Condensed Consolidating Statement of Comprehensive Income For the 13 Weeks Ended May 4, 2019 (millions) Parent Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Consolidated Net sales $ — $ 2,154 $ 4,768 $ (1,418 ) $ 5,504 Credit card revenues, net — (2 ) 174 — 172 Cost of sales — (1,341 ) (3,480 ) 1,418 (3,403 ) Selling, general and administrative expenses — (803 ) (1,309 ) — (2,112 ) Gains on sale of real estate — 24 19 — 43 Impairment and other costs — — (1 ) — (1 ) Operating income — 32 171 — 203 Benefit plan income, net — 3 4 — 7 Interest (expense) income, net: External 5 (53 ) 1 — (47 ) Intercompany — (19 ) 19 — — Equity in earnings (loss) of subsidiaries 132 (30 ) — (102 ) — Income (loss) before income taxes 137 (67 ) 195 (102 ) 163 Federal, state and local income (1 ) 24 (50 ) — (27 ) Net income (loss) $ 136 $ (43 ) $ 145 $ (102 ) $ 136 Comprehensive income (loss) $ 142 $ (38 ) $ 149 $ (111 ) $ 142 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Narrative) (Details) | May 02, 2020 |
Number of states in which entity operates | 43 |
Impact of COVID-19 (Details)
Impact of COVID-19 (Details) $ in Millions | 1 Months Ended | 3 Months Ended | |
Jun. 30, 2020USD ($)employee | May 02, 2020USD ($)Rate | May 04, 2019USD ($) | |
Unusual or Infrequent Item, or Both [Line Items] | |||
Inventory write-down, COVID-19 | $ 300 | ||
Proceeds from Lines of Credit | $ 1,500 | $ 0 | |
Tax carryback rate, COVID-19 | Rate | 35.00% | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | Rate | 21.00% | ||
Income tax receivable, COVID-19 | $ 351 | ||
Employee retention payroll tax credits, COVID-19 | 42 | ||
Subsequent Event | |||
Unusual or Infrequent Item, or Both [Line Items] | |||
Total financing activities, COVID-19 | $ 4,500 | ||
Headcount reduction, COVID-19 | employee | 3,900 | ||
Restructuring expense, COVID-19 | $ 180 | ||
Revolving Credit Facility [Member] | |||
Unusual or Infrequent Item, or Both [Line Items] | |||
Proceeds from Lines of Credit | $ 1,500 |
Impairment, Restructuring and_3
Impairment, Restructuring and Other Costs - Schedule of Restructuring, Impairment, Store Closing and Other Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 02, 2020 | May 04, 2019 | |
Restructuring Costs and Asset Impairment Charges [Abstract] | ||
Impairments | $ 3,150 | $ 0 |
Restructuring | 25 | 0 |
Other | 9 | 1 |
Total | $ 3,184 | $ 1 |
- Narrative (Details)
- Narrative (Details) $ in Millions | 3 Months Ended |
May 02, 2020USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Tangible asset impairment, COVID-19 | $ 80 |
Goodwill impairment, COVID-19 | 3,070 |
Macy's Reporting Unit | |
Restructuring Cost and Reserve [Line Items] | |
Goodwill impairment, COVID-19 | 2,972 |
Bluemercury Reporting Unit | |
Restructuring Cost and Reserve [Line Items] | |
Goodwill impairment, COVID-19 | $ 98 |
Impairment, Restructuring and_4
Impairment, Restructuring and Other Costs - Restructuring Reserve Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
May 02, 2020 | May 04, 2019 | Feb. 01, 2020 | |
Restructuring Reserve [Roll Forward] | |||
Additions charged to expense | $ 9 | $ 1 | |
Polaris Strategy | |||
Restructuring Reserve [Roll Forward] | |||
Balance at February 1, 2020 | 68 | 124 | $ 124 |
Additions charged to expense | 32 | ||
Cash payments | (88) | ||
Balance at May 2, 2020 | 68 | ||
Employee Severance | Polaris Strategy | |||
Restructuring Reserve [Roll Forward] | |||
Balance at February 1, 2020 | 58 | 115 | 115 |
Additions charged to expense | 25 | ||
Cash payments | (82) | ||
Balance at May 2, 2020 | 58 | ||
Other Restructuring | Polaris Strategy | |||
Restructuring Reserve [Roll Forward] | |||
Balance at February 1, 2020 | $ 10 | $ 9 | 9 |
Additions charged to expense | 7 | ||
Cash payments | (6) | ||
Balance at May 2, 2020 | $ 10 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Company's Goodwill and Other Intangible Assets (Details) - USD ($) $ in Millions | May 02, 2020 | Feb. 01, 2020 | May 04, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 9,290 | $ 9,290 | $ 9,290 |
Accumulated impairment losses | (8,452) | (5,382) | (5,382) |
Net goodwill, Non-amortizing intangible assets | 838 | 3,908 | 3,908 |
Tradenames | 403 | 403 | 403 |
Net non-amortizing intangible assets | $ 1,241 | $ 4,311 | $ 4,311 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Narrative (Details) $ in Millions | 3 Months Ended |
May 02, 2020USD ($) | |
Goodwill impairment, COVID-19 | $ 3,070 |
Macy's Reporting Unit | |
Goodwill impairment, COVID-19 | 2,972 |
Bluemercury Reporting Unit | |
Goodwill impairment, COVID-19 | $ 98 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares shares in Millions | 3 Months Ended | |
May 02, 2020 | May 04, 2019 | |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 17.3 | 16.9 |
Restricted Stock Units [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3.4 | 2.2 |
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 02, 2020 | May 04, 2019 | |
Earnings Per Share [Abstract] | ||
Net income (loss) | $ (3,581) | $ 136 |
Net Income (Loss) Available to Common Stockholders, Basic | (3,581) | 136 |
Net Income (Loss) Available to Common Stockholders, Diluted | $ (3,581) | $ 136 |
Basic earnings (loss) per share | $ (11.53) | $ 0.44 |
Diluted earnings (loss) per share | $ (11.53) | $ 0.44 |
Weighted Average Number of Shares Issued, Basic | 309.7 | 308.2 |
Shares to be issued under deferred compensation and other plans | 0.9 | 0.9 |
Average number of shares outstanding, basic | 310.6 | 309.1 |
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 0 | 2.3 |
Average number of shares outstanding, diluted | 310.6 | 311.4 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | ||
May 02, 2020 | May 04, 2019 | Feb. 01, 2020 | |
Net sales | $ 3,017 | $ 5,504 | |
Contract with Customer, Liability, Current | $ 732 | $ 696 | $ 839 |
Macy's sales to total Company sales | 87.00% | 88.00% | |
Contract with Customer, Refund Liability | $ 184 | $ 294 | 269 |
Contract with Customer, Right to Recover Product | 130 | 200 | $ 147 |
Women's Accessories, Intimate Apparel, Shoes and Cosmetics [Member] | |||
Net sales | 1,215 | 2,152 | |
Women's Apparel [Member] | |||
Net sales | 579 | 1,313 | |
Men's and Children's [Member] | |||
Net sales | 573 | 1,202 | |
Home and Miscellaneous [Member] | |||
Net sales | 650 | 837 | |
Total Sales - All Categories [Member] | |||
Net sales | $ 3,017 | $ 5,504 |
Financing Activities - Detail O
Financing Activities - Detail Of Debt Repayments (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 02, 2020 | May 04, 2019 | |
Repayments of Debt | $ 3 | $ 3 |
9.5% Amortizing debentures due 2021 | ||
Interest rate stated percentage | 9.50% | |
Extinguishment of debt | 2 | $ 2 |
9.75% Amortizing Debentures due 2021 | ||
Interest rate stated percentage | 9.75% | |
Extinguishment of debt | $ 1 | $ 1 |
Financing Activities - Narrativ
Financing Activities - Narrative (Details) - USD ($) | Jun. 08, 2020 | May 02, 2020 | May 04, 2019 | Jun. 30, 2020 |
Proceeds from Lines of Credit | $ 1,500,000,000 | $ 0 | ||
Revolving Credit Facility [Member] | ||||
Proceeds from Lines of Credit | 1,500,000,000 | |||
Subsequent Event | New 2024 Notes | ||||
Interest rate stated percentage | 6.65% | |||
Subsequent Event | 6.65% senior debentures due 2024 | ||||
Interest rate stated percentage | 6.65% | |||
Subsequent Event | New 2028 Notes | ||||
Interest rate stated percentage | 6.70% | |||
Subsequent Event | 6.7% senior notes due 2028 | ||||
Interest rate stated percentage | 6.70% | |||
Subsequent Event | New 2029 Notes | ||||
Interest rate stated percentage | 8.75% | |||
Subsequent Event | Old 2029 Notes | ||||
Interest rate stated percentage | 8.75% | |||
Subsequent Event | New 2030 Notes | ||||
Interest rate stated percentage | 7.875% | |||
Subsequent Event | Old 2030 Notes | ||||
Interest rate stated percentage | 7.875% | |||
Subsequent Event | New 2032 Notes | ||||
Interest rate stated percentage | 6.90% | |||
Subsequent Event | Old 2032 Notes | ||||
Interest rate stated percentage | 6.90% | |||
Subsequent Event | New 2034 Notes | ||||
Interest rate stated percentage | 6.70% | |||
Subsequent Event | Old 2034 Notes | ||||
Interest rate stated percentage | 6.70% | |||
Subsequent Event | Revolving Credit Facility [Member] | April 30, 2021 or After | ||||
Percent of loan cap | 10.00% | |||
Availability plus suppressed availability | $ 250,000,000 | |||
Subsequent Event | Revolving Credit Facility [Member] | Prior to April 30, 2021 | ||||
Percent of loan cap | 10.00% | |||
Availability plus suppressed availability | $ 250,000,000 | |||
Subsequent Event | ABL Borrower | Revolving Credit Facility [Member] | ||||
Additional borrowing capacity available | $ 750,000,000 | |||
Liquidation percentage | 80.00% | |||
Liquidation percentage, upon satisfaction of certain conditions | 90.00% | |||
Subsequent Event | ABL Borrower | Revolving Credit Facility [Member] | Revolving ABL Facility | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,851,000,000 | |||
Subsequent Event | ABL Borrower | Revolving Credit Facility [Member] | Bridge Facility | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 300,000,000 | |||
Senior Notes | Subsequent Event | ||||
Face amount | $ 1,300,000,000 | |||
Interest rate stated percentage | 8.375% | |||
Minimum | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,500,000,000 | |||
Minimum | Subsequent Event | ||||
Current borrowing capacity | $ 75,000,000 | |||
Minimum | Subsequent Event | Revolving Credit Facility [Member] | ||||
Coverage ratio | 1 | |||
Minimum | Subsequent Event | ABL Borrower | Revolving Credit Facility [Member] | Prior to Step Down Date | London Interbank Offered Rate (LIBOR) | ||||
Basis spread on variable rate | 2.75% | |||
Minimum | Subsequent Event | ABL Borrower | Revolving Credit Facility [Member] | Prior to Step Down Date | Base Rate | ||||
Basis spread on variable rate | 1.75% | |||
Minimum | Subsequent Event | ABL Borrower | Revolving Credit Facility [Member] | After Step Down Date | London Interbank Offered Rate (LIBOR) | ||||
Basis spread on variable rate | 2.25% | |||
Minimum | Subsequent Event | ABL Borrower | Revolving Credit Facility [Member] | After Step Down Date | Base Rate | ||||
Basis spread on variable rate | 1.25% | |||
Maximum | Subsequent Event | Revolving Credit Facility [Member] | ||||
Coverage ratio | 1 | |||
Maximum | Subsequent Event | ABL Borrower | Revolving Credit Facility [Member] | Prior to Step Down Date | London Interbank Offered Rate (LIBOR) | ||||
Basis spread on variable rate | 3.00% | |||
Maximum | Subsequent Event | ABL Borrower | Revolving Credit Facility [Member] | Prior to Step Down Date | Base Rate | ||||
Basis spread on variable rate | 2.00% | |||
Maximum | Subsequent Event | ABL Borrower | Revolving Credit Facility [Member] | After Step Down Date | London Interbank Offered Rate (LIBOR) | ||||
Basis spread on variable rate | 2.50% | |||
Maximum | Subsequent Event | ABL Borrower | Revolving Credit Facility [Member] | After Step Down Date | Base Rate | ||||
Basis spread on variable rate | 1.50% |
Benefit Plans (Net Periodic Ben
Benefit Plans (Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 02, 2020 | May 04, 2019 | |
Total Retirement Expense | $ 5 | $ 20 |
Nonqualified Plan [Member] | ||
Defined contribution plans expense | 0 | 1 |
Qualified Plan [Member] | ||
Defined contribution plans expense | 13 | 25 |
Pension Plan [Member] | ||
Service cost | 1 | 1 |
Interest cost | 19 | 26 |
Expected return on assets | (45) | (48) |
Recognition of net actuarial (gain) loss | 10 | 7 |
Amortization of prior service credit | 0 | 0 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | (15) | (14) |
Supplemental Employee Retirement Plan [Member] | ||
Service cost | 0 | 0 |
Interest cost | 4 | 6 |
Recognition of net actuarial (gain) loss | 3 | 2 |
Amortization of prior service credit | 0 | 0 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | 7 | 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 02, 2020 | May 04, 2019 |
Marketable equity and debt securities | $ 102 | $ 110 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Marketable equity and debt securities | 28 | 31 |
Significant Observable Inputs (Level 2) [Member] | ||
Marketable equity and debt securities | 74 | 79 |
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 02, 2020 | May 04, 2019 |
Long-term debt | $ 3,698 | $ 4,614 |
Carrying Amount | ||
Long-term debt | 4,918 | 4,680 |
Notional Amount | ||
Long-term debt | $ 4,903 | $ 4,667 |
Condensed Consolidating Finan_3
Condensed Consolidating Financial Information (Condensed Consolidating Statement of Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 02, 2020 | May 04, 2019 | |
Net sales | $ 3,017 | $ 5,504 |
Credit card revenues, net | 131 | 172 |
Cost of sales | (2,501) | (3,403) |
Selling, general and administrative expenses | (1,598) | (2,112) |
Gains on sale of real estate | 16 | 43 |
Impairment, restructuring and other costs | (3,184) | (1) |
Operating income (loss) | (4,119) | 203 |
Benefit plan income, net | 9 | 7 |
Interest (expense) income, net | ||
External | (47) | (47) |
Interest Expense, Other | 0 | 0 |
Income (Loss) from Equity Method Investments | 0 | 0 |
Income (loss) before income taxes | (4,157) | 163 |
Federal, state and local income tax benefit (expense) | 576 | (27) |
Net income (loss) | (3,581) | 136 |
Net income (loss) | (3,581) | 136 |
Comprehensive Income, Net of Tax, Including Portion Attributable to Noncontrolling Interest | (3,572) | 142 |
Parent | ||
Net sales | 0 | 0 |
Credit card revenues, net | 0 | 0 |
Cost of sales | 0 | 0 |
Selling, general and administrative expenses | 0 | 0 |
Gains on sale of real estate | 0 | 0 |
Impairment, restructuring and other costs | 0 | 0 |
Operating income (loss) | 0 | 0 |
Benefit plan income, net | 0 | 0 |
Interest (expense) income, net | ||
External | 1 | 5 |
Interest Expense, Other | 0 | 0 |
Income (Loss) from Equity Method Investments | (3,582) | 132 |
Income (loss) before income taxes | (3,581) | 137 |
Federal, state and local income tax benefit (expense) | 0 | (1) |
Net income (loss) | (3,581) | 136 |
Comprehensive Income, Net of Tax, Including Portion Attributable to Noncontrolling Interest | (3,572) | 142 |
Subsidiary Issuer | ||
Net sales | 867 | 2,154 |
Credit card revenues, net | (5) | (2) |
Cost of sales | (796) | (1,341) |
Selling, general and administrative expenses | (562) | (803) |
Gains on sale of real estate | 0 | 24 |
Impairment, restructuring and other costs | (2,722) | 0 |
Operating income (loss) | (3,218) | 32 |
Benefit plan income, net | 3 | 3 |
Interest (expense) income, net | ||
External | (49) | (53) |
Interest Expense, Other | (18) | (19) |
Income (Loss) from Equity Method Investments | (795) | (30) |
Income (loss) before income taxes | (4,077) | (67) |
Federal, state and local income tax benefit (expense) | 427 | 24 |
Net income (loss) | (3,650) | (43) |
Comprehensive Income, Net of Tax, Including Portion Attributable to Noncontrolling Interest | (3,641) | (38) |
Other Subsidiaries | ||
Net sales | 2,955 | 4,768 |
Credit card revenues, net | 136 | 174 |
Cost of sales | (2,510) | (3,480) |
Selling, general and administrative expenses | (1,036) | (1,309) |
Gains on sale of real estate | 16 | 19 |
Impairment, restructuring and other costs | (462) | (1) |
Operating income (loss) | (901) | 171 |
Benefit plan income, net | 6 | 4 |
Interest (expense) income, net | ||
External | 1 | 1 |
Interest Expense, Other | 18 | 19 |
Income (Loss) from Equity Method Investments | 0 | 0 |
Income (loss) before income taxes | (876) | 195 |
Federal, state and local income tax benefit (expense) | 149 | (50) |
Net income (loss) | (727) | 145 |
Comprehensive Income, Net of Tax, Including Portion Attributable to Noncontrolling Interest | (721) | 149 |
Consolidation, Eliminations [Member] | ||
Net sales | (805) | (1,418) |
Credit card revenues, net | 0 | 0 |
Cost of sales | 805 | 1,418 |
Selling, general and administrative expenses | 0 | 0 |
Gains on sale of real estate | 0 | 0 |
Impairment, restructuring and other costs | 0 | 0 |
Operating income (loss) | 0 | 0 |
Benefit plan income, net | 0 | 0 |
Interest (expense) income, net | ||
External | 0 | 0 |
Interest Expense, Other | 0 | 0 |
Income (Loss) from Equity Method Investments | 4,377 | (102) |
Income (loss) before income taxes | 4,377 | (102) |
Federal, state and local income tax benefit (expense) | 0 | 0 |
Net income (loss) | 4,377 | (102) |
Comprehensive Income, Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ 4,362 | $ (111) |
Condensed Consolidating Finan_4
Condensed Consolidating Financial Information (Condensed Consolidating Balance Sheet) (Details) - USD ($) $ in Millions | May 02, 2020 | Feb. 01, 2020 | May 04, 2019 | Feb. 02, 2019 |
Current Assets: | ||||
Cash and cash equivalents | $ 1,523 | $ 685 | $ 737 | |
Receivables | 170 | 409 | 237 | |
Merchandise inventories | 4,923 | 5,188 | 5,498 | |
Prepaid expenses and other current assets | 519 | 528 | 633 | |
Income tax receivable | 0 | |||
Total Current Assets | 7,135 | 6,810 | 7,105 | |
Property and Equipment - net | 6,425 | 6,633 | 6,499 | |
Right of Use Assets | 2,672 | 2,668 | 2,631 | |
Goodwill | 838 | 3,908 | 3,908 | |
Other Intangible Assets - net | 439 | 439 | 441 | |
Other Assets | 1,072 | 714 | 712 | |
Deferred Income Taxes | 0 | 0 | 0 | |
Intercompany Receivable | 0 | 0 | 0 | |
Investment in Subsidiaries | 0 | 0 | 0 | |
Total Assets | 18,581 | 21,172 | 21,296 | |
Current Liabilities: | ||||
Short-term debt | 739 | 539 | 41 | |
Merchandise accounts payable | 2,196 | 1,682 | 1,950 | |
Accounts Payable and Accrued Liabilities | 2,757 | 3,448 | 2,846 | |
Income taxes | 80 | 81 | 182 | |
Total Current Liabilities | 5,772 | 5,750 | 5,019 | |
Long-Term Debt | 4,918 | 3,621 | 4,680 | |
Long-Term Lease Liabilities | 2,923 | 2,918 | 2,823 | |
Intercompany Payable | 0 | 0 | 0 | |
Deferred Income Taxes | 944 | 1,169 | 1,193 | |
Other Liabilities | 1,327 | 1,337 | 1,258 | |
Accumulated losses in subsidiaries | 0 | |||
Shareholders' Equity, Macy's, Inc. | 2,697 | 6,377 | 6,323 | |
Total Shareholders’ Equity | 2,697 | 6,377 | 6,323 | $ 6,436 |
Total Liabilities and Shareholders' Equity | 18,581 | 21,172 | 21,296 | |
Parent | ||||
Current Assets: | ||||
Cash and cash equivalents | 1,160 | 413 | 293 | |
Receivables | 0 | 0 | 0 | |
Merchandise inventories | 0 | 0 | 0 | |
Prepaid expenses and other current assets | 0 | 0 | 0 | |
Income tax receivable | 0 | |||
Total Current Assets | 1,160 | 413 | 293 | |
Property and Equipment - net | 0 | 0 | 0 | |
Right of Use Assets | 0 | 0 | 0 | |
Goodwill | 0 | 0 | 0 | |
Other Intangible Assets - net | 0 | 0 | 0 | |
Other Assets | 418 | 0 | 0 | |
Deferred Income Taxes | 11 | 12 | 6 | |
Intercompany Receivable | 1,598 | 2,675 | 2,436 | |
Investment in Subsidiaries | 0 | 3,433 | 3,776 | |
Total Assets | 3,187 | 6,533 | 6,511 | |
Current Liabilities: | ||||
Short-term debt | 0 | 0 | 0 | |
Merchandise accounts payable | 0 | 0 | 0 | |
Accounts Payable and Accrued Liabilities | 14 | 126 | 73 | |
Income taxes | 65 | 5 | 87 | |
Total Current Liabilities | 79 | 131 | 160 | |
Long-Term Debt | 0 | 0 | 0 | |
Long-Term Lease Liabilities | 0 | 0 | 0 | |
Intercompany Payable | 0 | 0 | 0 | |
Deferred Income Taxes | 0 | 0 | 0 | |
Other Liabilities | 25 | 25 | 28 | |
Accumulated losses in subsidiaries | 386 | |||
Shareholders' Equity, Macy's, Inc. | 2,697 | 6,377 | 6,323 | |
Total Liabilities and Shareholders' Equity | 3,187 | 6,533 | 6,511 | |
Subsidiary Issuer | ||||
Current Assets: | ||||
Cash and cash equivalents | 25 | 59 | 151 | |
Receivables | 23 | 83 | 40 | |
Merchandise inventories | 2,072 | 2,239 | 2,369 | |
Prepaid expenses and other current assets | 102 | 118 | 163 | |
Income tax receivable | 0 | |||
Total Current Assets | 2,222 | 2,499 | 2,723 | |
Property and Equipment - net | 2,978 | 3,103 | 3,202 | |
Right of Use Assets | 600 | 611 | 677 | |
Goodwill | 670 | 3,326 | 3,326 | |
Other Intangible Assets - net | 4 | 4 | 5 | |
Other Assets | 46 | 37 | 28 | |
Deferred Income Taxes | 0 | 0 | 0 | |
Intercompany Receivable | 0 | 0 | 0 | |
Investment in Subsidiaries | 2,010 | 2,796 | 3,061 | |
Total Assets | 8,530 | 12,376 | 13,022 | |
Current Liabilities: | ||||
Short-term debt | 739 | 539 | 41 | |
Merchandise accounts payable | 928 | 702 | 845 | |
Accounts Payable and Accrued Liabilities | 719 | 909 | 786 | |
Income taxes | 18 | 11 | 61 | |
Total Current Liabilities | 2,404 | 2,161 | 1,733 | |
Long-Term Debt | 4,918 | 3,621 | 4,680 | |
Long-Term Lease Liabilities | 548 | 543 | 607 | |
Intercompany Payable | 2,275 | 3,803 | 3,322 | |
Deferred Income Taxes | 377 | 595 | 626 | |
Other Liabilities | 407 | 414 | 341 | |
Accumulated losses in subsidiaries | 0 | |||
Shareholders' Equity, Macy's, Inc. | (2,399) | 1,239 | 1,713 | |
Total Liabilities and Shareholders' Equity | 8,530 | 12,376 | 13,022 | |
Other Subsidiaries | ||||
Current Assets: | ||||
Cash and cash equivalents | 338 | 213 | 293 | |
Receivables | 147 | 326 | 197 | |
Merchandise inventories | 2,851 | 2,949 | 3,129 | |
Prepaid expenses and other current assets | 417 | 410 | 470 | |
Income tax receivable | 3 | |||
Total Current Assets | 3,756 | 3,898 | 4,089 | |
Property and Equipment - net | 3,447 | 3,530 | 3,297 | |
Right of Use Assets | 2,072 | 2,057 | 1,954 | |
Goodwill | 168 | 582 | 582 | |
Other Intangible Assets - net | 435 | 435 | 436 | |
Other Assets | 608 | 677 | 684 | |
Deferred Income Taxes | 0 | 0 | 0 | |
Intercompany Receivable | 677 | 1,128 | 886 | |
Investment in Subsidiaries | 0 | 0 | 0 | |
Total Assets | 11,163 | 12,307 | 11,928 | |
Current Liabilities: | ||||
Short-term debt | 0 | 0 | 0 | |
Merchandise accounts payable | 1,268 | 980 | 1,105 | |
Accounts Payable and Accrued Liabilities | 2,024 | 2,413 | 1,987 | |
Income taxes | 0 | 65 | 34 | |
Total Current Liabilities | 3,292 | 3,458 | 3,126 | |
Long-Term Debt | 0 | 0 | 0 | |
Long-Term Lease Liabilities | 2,375 | 2,375 | 2,216 | |
Intercompany Payable | 0 | 0 | 0 | |
Deferred Income Taxes | 578 | 586 | 573 | |
Other Liabilities | 895 | 898 | 889 | |
Accumulated losses in subsidiaries | 0 | |||
Shareholders' Equity, Macy's, Inc. | 4,023 | 4,990 | 5,124 | |
Total Liabilities and Shareholders' Equity | 11,163 | 12,307 | 11,928 | |
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 | |
Income tax receivable | (3) | |||
Total Current Assets | (3) | 0 | 0 | |
Property and Equipment - net | 0 | 0 | 0 | |
Right of Use Assets | 0 | 0 | 0 | |
Goodwill | 0 | 0 | 0 | |
Other Intangible Assets - net | 0 | 0 | 0 | |
Other Assets | 0 | 0 | 0 | |
Deferred Income Taxes | (11) | (12) | (6) | |
Intercompany Receivable | (2,275) | (3,803) | (3,322) | |
Investment in Subsidiaries | (2,010) | (6,229) | (6,837) | |
Total Assets | (4,299) | (10,044) | (10,165) | |
Current Liabilities: | ||||
Short-term debt | 0 | 0 | 0 | |
Merchandise accounts payable | 0 | 0 | 0 | |
Accounts Payable and Accrued Liabilities | 0 | 0 | 0 | |
Income taxes | (3) | 0 | 0 | |
Total Current Liabilities | (3) | 0 | 0 | |
Long-Term Debt | 0 | 0 | 0 | |
Long-Term Lease Liabilities | 0 | 0 | 0 | |
Intercompany Payable | (2,275) | (3,803) | (3,322) | |
Deferred Income Taxes | (11) | (12) | (6) | |
Other Liabilities | 0 | 0 | 0 | |
Accumulated losses in subsidiaries | (386) | |||
Shareholders' Equity, Macy's, Inc. | (1,624) | (6,229) | (6,837) | |
Total Liabilities and Shareholders' Equity | $ (4,299) | $ (10,044) | $ (10,165) |
Condensed Consolidating Finan_5
Condensed Consolidating Financial Information (Condensed Consolidating Statement of Cash Flows) (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 02, 2020 | May 04, 2019 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (3,581) | $ 136 |
Impairment, restructuring and other costs | 3,184 | 1 |
Equity in loss (earnings) of subsidiaries | 0 | 0 |
Dividends received from subsidiaries | 0 | 0 |
Depreciation and amortization | 237 | 236 |
Gains on sale of real estate | (16) | (43) |
Change in assets, liabilities and other items not separately identified | 12 | (368) |
Net cash provided (used) by operating activities | (164) | (38) |
Cash flows from investing activities: | ||
Purchase of property and equipment and capitalized software, net of dispositions | (139) | (230) |
Other, net | 26 | (7) |
Net cash used by investing activities | (113) | (237) |
Cash flows from financing activities: | ||
Debt issued, net of debt repaid | 1,496 | (3) |
Dividends paid | (117) | (116) |
Issuance or common stock | 0 | 6 |
Intercompany activity, net | 0 | 0 |
Other, net | (231) | (45) |
Net cash provided (used) by financing activities | 1,148 | (158) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | 871 | (433) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, beginning of period | 731 | 1,248 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, end of period | 1,602 | 815 |
Parent | ||
Cash flows from operating activities: | ||
Net income (loss) | (3,581) | 136 |
Impairment, restructuring and other costs | 0 | 0 |
Equity in loss (earnings) of subsidiaries | 3,582 | (132) |
Dividends received from subsidiaries | 251 | 225 |
Depreciation and amortization | 0 | 0 |
Gains on sale of real estate | 0 | 0 |
Increase (Decrease) in Other Operating Assets and Liabilities, Net | 353 | (78) |
Net cash provided (used) by operating activities | (101) | 307 |
Cash flows from investing activities: | ||
Purchase of property and equipment and capitalized software, net of dispositions | 0 | 0 |
Other, net | 0 | 0 |
Net cash used by investing activities | 0 | 0 |
Cash flows from financing activities: | ||
Debt issued, net of debt repaid | 0 | 0 |
Dividends paid | (117) | (116) |
Issuance of common stock, net of common stock acquired | 6 | |
Intercompany activity, net | 1,082 | (700) |
Other, net | (117) | (93) |
Net cash provided (used) by financing activities | 848 | (903) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | 747 | (596) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, beginning of period | 413 | 889 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, end of period | 1,160 | 293 |
Subsidiary Issuer | ||
Cash flows from operating activities: | ||
Net income (loss) | (3,650) | (43) |
Impairment, restructuring and other costs | 2,722 | 0 |
Equity in loss (earnings) of subsidiaries | 795 | 30 |
Dividends received from subsidiaries | 0 | 0 |
Depreciation and amortization | 77 | 85 |
Gains on sale of real estate | 0 | (24) |
Increase (Decrease) in Other Operating Assets and Liabilities, Net | (151) | 118 |
Net cash provided (used) by operating activities | 95 | (70) |
Cash flows from investing activities: | ||
Purchase of property and equipment and capitalized software, net of dispositions | (34) | (52) |
Other, net | 0 | 0 |
Net cash used by investing activities | (34) | (52) |
Cash flows from financing activities: | ||
Debt issued, net of debt repaid | 1,497 | (3) |
Dividends paid | 0 | 0 |
Issuance of common stock, net of common stock acquired | 0 | |
Intercompany activity, net | (1,529) | 214 |
Other, net | (68) | 28 |
Net cash provided (used) by financing activities | (100) | 239 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | (39) | 117 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, beginning of period | 64 | 64 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, end of period | 25 | 181 |
Other Subsidiaries | ||
Cash flows from operating activities: | ||
Net income (loss) | (727) | 145 |
Impairment, restructuring and other costs | 462 | 1 |
Equity in loss (earnings) of subsidiaries | 0 | 0 |
Dividends received from subsidiaries | 0 | 0 |
Depreciation and amortization | 160 | 151 |
Gains on sale of real estate | (16) | (19) |
Increase (Decrease) in Other Operating Assets and Liabilities, Net | (214) | 328 |
Net cash provided (used) by operating activities | 93 | (50) |
Cash flows from investing activities: | ||
Purchase of property and equipment and capitalized software, net of dispositions | (105) | (178) |
Other, net | 26 | (7) |
Net cash used by investing activities | (79) | (185) |
Cash flows from financing activities: | ||
Debt issued, net of debt repaid | (1) | 0 |
Dividends paid | (251) | (225) |
Issuance of common stock, net of common stock acquired | 0 | |
Intercompany activity, net | 447 | 486 |
Other, net | (46) | 20 |
Net cash provided (used) by financing activities | 149 | 281 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | 163 | 46 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, beginning of period | 254 | 295 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, end of period | 417 | 341 |
Consolidating Adjustments | ||
Cash flows from operating activities: | ||
Net income (loss) | 4,377 | (102) |
Impairment, restructuring and other costs | 0 | 0 |
Equity in loss (earnings) of subsidiaries | (4,377) | 102 |
Dividends received from subsidiaries | (251) | (225) |
Depreciation and amortization | 0 | 0 |
Gains on sale of real estate | 0 | 0 |
Increase (Decrease) in Other Operating Assets and Liabilities, Net | 0 | 0 |
Net cash provided (used) by operating activities | (251) | (225) |
Cash flows from investing activities: | ||
Purchase of property and equipment and capitalized software, net of dispositions | 0 | 0 |
Other, net | 0 | 0 |
Net cash used by investing activities | 0 | 0 |
Cash flows from financing activities: | ||
Debt issued, net of debt repaid | 0 | 0 |
Dividends paid | 251 | 225 |
Issuance of common stock, net of common stock acquired | 0 | |
Intercompany activity, net | 0 | 0 |
Other, net | 0 | 0 |
Net cash provided (used) by financing activities | 251 | 225 |
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 |