Macy's (M) 10-K 31 Mar 10 2010 FY Annual report Financial data

Statement Of Income

Statement Of Income (USD $)
In Millions, except Per Share data	12 Months Ended Jan. 30, 2010	12 Months Ended Jan. 31, 2009	12 Months Ended Feb. 02, 2008
Net sales	$23,489	$24,892	$26,313
Cost of sales	(13,973)	(15,009)	(15,677)
Gross margin	9,516	9,883	10,636
Selling, general and administrative expenses	(8,062)	(8,481)	(8,554)
Division consolidation costs and store closing related costs	(276)	(187)	0
Asset impairment charges	(115)	(211)	0
Goodwill impairment charges	0	(5,382)	0
May integration costs	0	0	(219)
Operating income (loss)	1,063	(4,378)	1,863
Interest expense	(562)	(588)	(579)
Interest income	6	28	36
Income (loss) from continuing operations before income taxes	507	(4,938)	1,320
Federal, state and local income tax benefit (expense)	(157)	135	(411)
Income (loss) from continuing operations	350	(4,803)	909
Discontinued operations, net of income taxes	0	0	(16)
Net income (loss)	$350	($4,803)	$893
Basic earnings (loss) per share:
Income (loss) from continuing operations	0.83	-11.4	2.04
Loss from discontinued operations	$0	$0	-0.04
Net income (loss)	0.83	-11.4	$2
Diluted earnings (loss) per share:
Income (loss) from continuing operations	0.83	-11.4	2.01
Loss from discontinued operations	$0	$0	-0.04
Net income (loss)	0.83	-11.4	1.97

Statement Of Financial Position

Statement Of Financial Position Classified (USD $)
In Millions	Jan. 30, 2010	Jan. 31, 2009
Current Assets:
Cash and cash equivalents	$1,686	$1,385
Receivables	358	360
Merchandise inventories	4,615	4,769
Supplies and prepaid expenses	223	226
Total Current Assets	6,882	6,740
Property and Equipment - net	9,507	10,442
Goodwill	3,743	3,743
Other Intangible Assets - net	678	719
Other Assets	490	501
Total Assets	21,300	22,145
Current Liabilities:
Short-term debt	242	966
Merchandise accounts payable	1,312	1,282
Accounts payable and accrued liabilities	2,626	2,628
Income taxes	68	28
Deferred income taxes	206	222
Total Current Liabilities	4,454	5,126
Long-Term Debt	8,456	8,733
Deferred Income Taxes	1,068	1,119
Other Liabilities	2,621	2,521
Shareholders' Equity:
Common stock (420.8 and 420.1 shares outstanding)	5	5
Additional paid-in capital	5,689	5,663
Accumulated equity	2,274	2,008
Treasury stock	(2,514)	(2,544)
Accumulated other comprehensive loss	(753)	(486)
Total Shareholders' Equity	4,701	4,646
Total Liabilities and Shareholders' Equity	$21,300	$22,145

1_Statement Of Financial Positi

Statement Of Financial Position Classified (Parenthetical)
Share data in Millions	Jan. 30, 2010	Jan. 31, 2009
Common stock, shares outstanding	420.8	420.1

Statement Of Shareholders Equit

Statement Of Shareholders Equity And Other Comprehensive Income (USD $)
In Millions	Common Stock	Additional Paid-In Capital	Accumulated Equity	Treasury Stock	Accumulated Other Comprehensive Income (Loss)	Total
Beginning Balance at Feb. 03, 2007	$6	$9,486	$6,375	($3,431)	($182)	$12,254
Cumulative effect of adopting new accounting pronouncements	0	0	(6)	0	29	23
Beginning Balance, revised	6	9,486	6,369	(3,431)	(153)	12,277
Net income (loss)			893			893
Actuarial loss on post employment and postretirement benefit plans, net of income tax effect of $166 million in 2009, $183 million in 2008 and $4 million in 2007					(6)	(6)
Unrealized gain (loss) on marketable securities, net of income tax effect of $3 million in 2009, $11 million in 2008 and $22 million in 2007					(35)	(35)
Reclassifications to net income (loss):
Net actuarial (gain) loss on post employment and postretirement benefit plans, net of income tax effect of $3 million in 2009, $1 million in 2008 and $9 million in 2007					14	14
Prior service credit on post employment and postretirement benefit plans, net of income tax effect of $1 million in 2009, 2008 and 2007					(2)	(2)
Total comprehensive income (loss)						864
Common stock dividends ($.20 in 2009, $.5275 in 2008 and $.5175 in 2007 per share)			(230)			(230)
Stock repurchases				(3,322)		(3,322)
Stock-based compensation expense		67				67
Stock issued under stock plans		(73)		278		205
Retirement of common stock	(1)	(3,915)		3,916		0
Deferred compensation plan distributions				2		2
Income tax benefit related to stock plan activity		44				44
Ending Balance at Feb. 02, 2008	5	5,609	7,032	(2,557)	(182)	9,907
Net income (loss)			(4,803)			(4,803)
Actuarial loss on post employment and postretirement benefit plans, net of income tax effect of $166 million in 2009, $183 million in 2008 and $4 million in 2007					(294)	(294)
Unrealized gain (loss) on marketable securities, net of income tax effect of $3 million in 2009, $11 million in 2008 and $22 million in 2007					(17)	(17)
Reclassifications to net income (loss):
Realized loss on marketable securities, net of income tax effect of $5 million					7	7
Net actuarial (gain) loss on post employment and postretirement benefit plans, net of income tax effect of $3 million in 2009, $1 million in 2008 and $9 million in 2007					1	1
Prior service credit on post employment and postretirement benefit plans, net of income tax effect of $1 million in 2009, 2008 and 2007					(1)	(1)
Total comprehensive income (loss)						(5,107)
Common stock dividends ($.20 in 2009, $.5275 in 2008 and $.5175 in 2007 per share)			(221)			(221)
Stock repurchases				(1)		(1)
Stock-based compensation expense		61				61
Stock issued under stock plans		(7)		13		6
Deferred compensation plan distributions				1		1
Ending Balance at Jan. 31, 2009	5	5,663	2,008	(2,544)	(486)	4,646
Net income (loss)			350			350
Actuarial loss on post employment and postretirement benefit plans, net of income tax effect of $166 million in 2009, $183 million in 2008 and $4 million in 2007					(266)	(266)
Unrealized gain (loss) on marketable securities, net of income tax effect of $3 million in 2009, $11 million in 2008 and $22 million in 2007					5	5
Reclassifications to net income (loss):
Net actuarial (gain) loss on post employment and postretirement benefit plans, net of income tax effect of $3 million in 2009, $1 million in 2008 and $9 million in 2007					(4)	(4)
Prior service credit on post employment and postretirement benefit plans, net of income tax effect of $1 million in 2009, 2008 and 2007					(2)	(2)
Total comprehensive income (loss)						83
Common stock dividends ($.20 in 2009, $.5275 in 2008 and $.5175 in 2007 per share)			(84)			(84)
Stock repurchases				(1)		(1)
Stock-based compensation expense		50				50
Stock issued under stock plans		(24)		30		6
Deferred compensation plan distributions				1		1
Ending Balance at Jan. 30, 2010	$5	$5,689	$2,274	($2,514)	($753)	$4,701

2_Statement Of Shareholders Equ

Statement Of Shareholders Equity And Other Comprehensive Income (Parenthetical) (USD $)
In Millions	12 Months Ended Jan. 30, 2010	12 Months Ended Jan. 31, 2009	12 Months Ended Feb. 02, 2008
Actuarial loss on post employment and postretirement benefit plans, income tax effect	$166	$183	$4
Unrealized gain (loss) on marketable securities, income tax effect	3	11	22
Realized loss on marketable securities, income tax effect		5
Net actuarial (gain) loss on post employment and postretirement benefit plans, income tax effect	3	1	9
Prior service credit on post employment and postretirement benefit plans, income tax effect	$1	$1	$1
Common stock dividends, per share	0.2	0.5275	0.5175

Statement Of Cash Flows Indirec

Statement Of Cash Flows Indirect (USD $)
In Millions	12 Months Ended Jan. 30, 2010	12 Months Ended Jan. 31, 2009	12 Months Ended Feb. 02, 2008
Cash flows from continuing operating activities:
Net income (loss)	$350	($4,803)	$893
Adjustments to reconcile net income (loss) to net cash provided by continuing operating activities:
Loss from discontinued operations	0	0	16
Division consolidation costs and store closing related costs	276	187	0
Asset impairment charges	115	211	0
Goodwill impairment charges	0	5,382	0
May integration costs	0	0	219
Depreciation and amortization	1,210	1,278	1,304
Stock-based compensation expense	76	43	60
Amortization of financing costs and premium on acquired debt	(23)	(27)	(31)
Changes in assets and liabilities:
(Increase) decrease in receivables	7	(1)	9
Decrease in merchandise inventories	154	291	256
(Increase) decrease in supplies and prepaid expenses	3	(7)	33
(Increase) decrease in other assets not separately identified	(15)	1	3
Increase (decrease) in merchandise accounts payable	29	(90)	(132)
Decrease in accounts payable and accrued liabilities not separately identified	(201)	(227)	(396)
Increase (decrease) in current income taxes	40	(146)	14
Increase (decrease) in deferred income taxes	96	(291)	(2)
Increase (decrease) in other liabilities not separately identified	(367)	65	(34)
Net cash provided by continuing operating activities	1,750	1,866	2,212
Cash flows from continuing investing activities:
Purchase of property and equipment	(355)	(761)	(994)
Capitalized software	(105)	(136)	(111)
Proceeds from hurricane insurance claims	26	68	23
Disposition of property and equipment	60	38	227
Other, net	(3)	(1)	29
Proceeds from the disposition of After Hours Formalwear	0	0	66
Net cash used by continuing investing activities	(377)	(792)	(760)
Cash flows from continuing financing activities:
Debt issued	0	650	1,950
Financing costs	0	(18)	(18)
Debt repaid	(966)	(666)	(649)
Dividends paid	(84)	(221)	(230)
Decrease in outstanding checks	(29)	(116)	(57)
Acquisition of treasury stock	(1)	(1)	(3,322)
Issuance of common stock	8	7	257
Net cash used by continuing financing activities	(1,072)	(365)	(2,069)
Net cash provided (used) by continuing operations	301	709	(617)
Net cash provided by discontinued operating activities	0	0	7
Net cash used by discontinued investing activities	0	0	(7)
Net cash used by discontinued financing activities	0	0	(1)
Net cash used by discontinued operations	0	0	(1)
Net increase (decrease) in cash and cash equivalents	301	709	(618)
Cash and cash equivalents beginning of period	1,385	676	1,294
Cash and cash equivalents end of period	1,686	1,385	676
Supplemental cash flow information:
Interest paid	601	642	594
Interest received	9	26	38
Income taxes paid (net of refunds received)	$35	$323	$432

Organization and Summary of Sig

Organization and Summary of Significant Accounting Policies
	12 Months Ended Jan. 30, 2010
Organization and Summary of Significant Accounting Policies	1. Organization and Summary of Significant Accounting Policies Macys, Inc. and subsidiaries (the Company) is a retail organization operating retail stores and Internet websites under two brands (Macys and Bloomingdales) that sell a wide range of merchandise, including mens, womens and childrens apparel and accessories, cosmetics, home furnishings and other consumer goods in 45 states, the District of Columbia, Guam and Puerto Rico. As of January30, 2010, the Companys operations were conducted through four retail operating divisions Macys, macys.com, Bloomingdales, and bloomingdales.com which are aggregated into one reporting segment in accordance with the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 280, Segment Reporting. The metrics used by management to assess the performance of the Companys operating divisions include sales trends, gross margin rates, expense rates, and rates of earnings before interest and taxes (EBIT) and earnings before interest, taxes, depreciation and amortization (EBITDA). The Companys operating divisions have historically had similar economic characteristics and are expected to have similar economic characteristics and long-term financial performance in future periods. For 2009, 2008 and 2007, the following merchandise constituted the following percentages of sales: 2009 2008 2007 Feminine Accessories, Intimate Apparel, Shoes and Cosmetics 36 % 36 % 36 % Feminine Apparel 26 27 27 Mens and Childrens 22 22 22 Home/Miscellaneous 16 15 15 100 % 100 % 100 % The Companys fiscal year ends on the Saturday closest to January31. Fiscal years 2009, 2008 and 2007 ended on January30, 2010, January31, 2009 and February2, 2008, respectively. References to years in the Consolidated Financial Statements relate to fiscal years rather than calendar years. The Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries. The Company from time to time invests in companies engaged in complementary businesses. Investments in companies in which the Company has the ability to exercise significant influence, but not control, are accounted for by the equity method. All marketable equity and debt securities held by the Company are accounted for under ASC Topic 320, Investments Debt and Equity Securities, with unrealized gains and losses on available-for-sale securities being included as a separate component of accumulated other comprehensive income, net of income tax effect. All other investments are carried at cost. All significant intercompany transactions have been eliminated. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimat

Division Consolidation Costs an

Division Consolidation Costs and Store Closing Related Costs
	12 Months Ended Jan. 30, 2010
Division Consolidation Costs and Store Closing Related Costs	2. Division Consolidation Costs and Store Closing Related Costs In February 2008, the Company began a localization initiative, called My Macys. This initiative is intended to strengthen local market focus and enhance selling service in an effort to both accelerate same-store sales growth and reduce expense. To maximize the results from My Macys, the Company has taken action, initially in selected markets, that: concentrate more management talent in local markets, effectively reducing the span of control over local stores; create new positions in the field to work with planning and buying executives in helping to understand and act on the merchandise needs of local customers; and empower locally based executives to make more and better decisions. In February 2009, the Company announced the expansion of the My Macys localization initiative across the country. As My Macys was rolled out nationally to new local markets in 2009, the Companys Macys branded stores have been reorganized into a unified operating structure, through additional division consolidations, to support the Macys business. Division central office organizations have been eliminated in New York-based Macys East, San Francisco-based Macys West, Atlanta-based Macys Central and Miami-based Macys Florida. The New York-based Macys Home Store and Macys Corporate Marketing divisions no longer exist as separate entities. Home Store functions have been integrated into the Macys national merchandising, merchandise planning, stores and marketing organizations. Macys Corporate Marketing has been integrated into the new unified marketing organization. The New York-based Macys Merchandising Group has been refocused solely on the design, development and marketing of Macys family of private brands. During 2009, the Company recorded $270 million of costs and expenses associated with the division consolidation and localization initiative announced in February 2009, consisting primarily of severance costs and other human resource-related costs. The following table shows for 2009, the beginning and ending balance of, and the activity associated with, the severance accrual established in connection with the division consolidation and localization initiative announced in February 2009: January31,2009 Charged ToDivision Consolidation Costs Payments January30,2010 (millions) Severance costs $ 30 $ 166 $ (127 ) $ 69 The Company expects to pay out the accrued severance costs, which are included in accounts payable and accrued liabilities on the Consolidated Balance Sheets, prior to July31, 2010. During 2008, the Company incurred $30 million of severance costs in connection with the My Macys expansion announced in February 2009. The following table shows for 2008, the beginning and ending balance of, and the activity associated with, the severance accrual established in connection with the division consolidation and localization initiative announced in February 2009: February2,2008 Charged ToDivision Consolidation Costs Payments January31,2009 (millions) Severance costs $ 0

Asset Impairment Charges

Asset Impairment Charges
	12 Months Ended Jan. 30, 2010
Asset Impairment Charges	3. Asset Impairment Charges Asset impairment charges in 2009 includes $115 million related to properties held and used, $10 million of which is related to store closings announced in January 2010. Asset impairment charges in 2008 included $136 million related to properties held and used, $40 million of which related to store closings announced in January 2009, $63 million associated with acquired indefinite-lived private brand tradenames and $12 million associated with marketable securities. Long-lived assets held for use are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability of long-lived assets is based on an estimate of undiscounted future cash flows resulting from the use of those assets in operation. Measurement of an impairment loss for long-lived assets that management expects to hold and use is based on the fair value of the asset. When an impairment loss is recognized, the carrying amount of the asset is reduced to its estimated fair value. As a result of the Companys projected undiscounted future cash flows related to certain store locations being less than the carrying value of those assets, the Company recorded impairment charges of $115 million and $136 million in 2009 and 2008, respectively. The fair values of these locations were calculated based on the projected cash flows and an estimated risk-adjusted rate of return that would be used by market participants in valuing these assets or based on prices of similar assets. The Company performed both an annual and an interim impairment test of goodwill and indefinite-lived intangible assets during 2008 (see Note 4, Goodwill Impairment Charges). During 2008, management concluded that $63 million of asset impairment charges were required in relation to indefinite-lived acquired tradenames. As a result of the then-current economic environment and expectations regarding future operating performance of the Karen Scott, John Ashford and Frango private brand tradenames, it was determined that the carrying values exceeded the estimated fair values, which were based on discounted cash flows, by approximately $63 million. The Company accounts for its investment in available-for-sale marketable securities with unrealized gains and losses being included as a separate component of accumulated other comprehensive income. During 2008, based on the then-current economic environment, it was determined that the carrying value of certain marketable securities exceeded the current fair value on an other-than-temporary basis, by approximately $12 million, and the previously unrecognized losses in accumulated other comprehensive income were reclassified into the Consolidated Statements of Operations.

Goodwill Impairment Charges

Goodwill Impairment Charges
	12 Months Ended Jan. 30, 2010
Goodwill Impairment Charges	4. Goodwill Impairment Charges The Company reviews the carrying value of its goodwill and other intangible assets with indefinite lives at least annually for possible impairment in accordance with ASC Topic 350, Intangibles Goodwill and Other. Goodwill and other intangible assets with indefinite lives have been assigned to reporting units for purposes of impairment testing. The reporting units are the Companys retail operating divisions. Goodwill and other intangible assets with indefinite lives are tested for impairment annually at the end of the fiscal month of May. The goodwill impairment test involves a two-step process. The first step involves estimating the fair value of each reporting unit based on its estimated discounted cash flows and comparing the estimated fair value of each reporting unit to its carrying value. If this comparison indicates that a reporting units estimated fair value is less than its carrying value, a second step is required. If applicable, the second step requires the Company to allocate the fair value of the reporting unit to the estimated fair value of the reporting units net assets, with any fair value in excess of amounts allocated to such net assets representing the implied fair value of goodwill for that reporting unit. If the carrying value of an individual indefinite-lived intangible asset exceeds its fair value, such individual indefinite-lived intangible asset is written down by an amount equal to such excess. The Company uses judgment in assessing whether assets may have become impaired between annual impairment tests. The occurrence of a change in circumstances, such as continued adverse business conditions or other economic factors, would determine the need for impairment testing between annual impairment tests. Due to deterioration in the general economic environment in recent periods (and the impact thereof on the Companys then-most recently completed annual business plan) and the resultant decline in the Companys market capitalization, the Company believed that an additional goodwill impairment test was required as of January31, 2009. In performing the first step of this impairment test, the Company estimated the fair value of its reporting units by discounting their projected future cash flows to present value, and reconciling the aggregate estimated fair value of the Companys reporting units to the trading value of the Companys common stock (together with an implied control premium). The Company believes that this reconciliation process represents a market participant approach to valuation. Based on this analysis, the Company determined that the carrying value of each of the Companys reporting units that exceeded its fair value at January31, 2009, which resulted in all of the Companys reporting units failing the first step of the goodwill impairment test. The Company then undertook the second step of the goodwill impairment test, which involved, among other things, obtaining third-party appraisals of substantially all of the Companys tangible and intangible assets. Based on the results of its goodwill impairment testing as of January31, 2009, the Company recorded a pre-tax goodwill

May Integration Costs

May Integration Costs
	12 Months Ended Jan. 30, 2010
May Integration Costs	5. May Integration Costs On August30, 2005, the Company completed the acquisition of The May Department Stores Company (May) (the Merger).The Company added about 400 Macys locations nationwide in 2006 as it converted the regional department store nameplates acquired through the Merger. In conjunction with the conversion process, the Company identified certain store locations and distribution center facilities to be divested. Following the Merger, the Company announced its intention to sell the acquired Lord Taylor division and the acquired May bridal group business, which included the operations of Davids Bridal, After Hours Formalwear and Priscilla of Boston.The sale of the Lord Taylor division was completed in October 2006, the sale of Davids Bridal and Priscilla of Boston was completed in January 2007 and the sale of After Hours Formalwear was completed in April 2007.See Note 6, Discontinued Operations, for further information. As a result of the Companys disposition of the Lord Taylor division and bridal group businesses, these businesses were reported as discontinued operations. May integration costs represent the costs associated with the integration of the acquired May businesses with the Companys pre-existing businesses and the consolidation of certain operations of the Company. The Company had announced that it planned to divest certain store locations and distribution center facilities as a result of the acquisition of May, and, during 2007, the Company completed its review of store locations and distribution center facilities, closing certain underperforming stores, temporarily closing other stores for remodeling to optimize merchandise offering strategies, closing certain distribution center facilities, and consolidating operations in existing or newly constructed facilities. During 2007, the Company completed the integration and consolidation of Mays operations into Macys operations and recorded $219 million of associated integration costs. Approximately $121 million of these costs related to impairment charges in connection with store locations and distribution facilities planned to be closed and disposed of, including $74 million related to nine underperforming stores identified in the fourth quarter of 2007. The remaining $98 million of May integration costs incurred during the year included additional costs related to closed locations, severance, system conversion costs, impairment charges associated with acquired indefinite-lived private brand tradenames and costs related to other operational consolidations, partially offset by approximately $41 million of gains from the sale of previously closed distribution center facilities. During 2007, approximately $105 million of property and equipment was transferred to assets held for sale upon store or facility closure. In addition, property and equipment totaling approximately $110 million was disposed of in connection with the May integration and the Company collected approximately $50 million of receivables from prior year dispositions. The impairment charges for the locations to be disposed of were calculated based on the excess of historical cost over

Discontinued Operations

Discontinued Operations
	12 Months Ended Jan. 30, 2010
Discontinued Operations	6. Discontinued Operations On September20, 2005 and January12, 2006, the Company announced its intention to dispose of the acquired May bridal group business, which included the operations of Davids Bridal, After Hours Formalwear and Priscilla of Boston, and the acquired Lord Taylor division of May, respectively.Accordingly, for financial statement purposes, the results of operations and cash flows of these businesses have been segregated from those of continuing operations for all periods presented. In October 2006, the Company completed the sale of its Lord Taylor division and in January 2007, the Company completed the sale of its Davids Bridal and Priscilla of Boston businesses. In April 2007, the Company completed the sale of its After Hours Formalwear business for approximately $66 million in cash, net of $1 million of transaction costs. The After Hours Formalwear business represented approximately $73 million of net assets. The Company recorded the loss on disposal of the After Hours Formalwear business of $7 million on a pre-tax and after-tax basis, or $.01 per diluted share. In connection with the sale of the Davids Bridal and Priscilla of Boston businesses, the Company agreed to indemnify the buyer and related parties of the buyer for certain losses or liabilities incurred by the buyer or such related parties with respect to (1)certain representations and warranties made to the buyer by the Company in connection with the sale, (2)liabilities relating to the After Hours Formalwear business under certain circumstances, and (3)certain pre-closing tax obligations. The representations and warranties in respect of which the Company is subject to indemnification are generally limited to representations and warranties relating to the capitalization of the entities that were sold, the Companys ownership of the equity interests that were sold, the enforceability of the agreement and certain employee benefits and tax matters. The indemnity for breaches of most of these representations expired on March31, 2008, with the exception of certain representations relating to capitalization and the Companys ownership interest, in respect of which the indemnity does not expire. Indemnity obligations created in connection with the sales of businesses generally do not represent added liabilities for the Company, but simply serve to protect the buyer from potential liabilities associated with particular conditions. The Company records accruals for those pre-closing obligations that are considered probable and estimable. Under FASB ASC Topic 460, Guarantees, the Company is required to record a liability for the fair value of the guarantees. The Company has not accrued any additional amounts as a result of the indemnity arrangements summarized above as the Company believes the fair value of these arrangements is not material. Discontinued operations included net sales of approximately $27 million for 2007.No consolidated interest expense had been allocated to discontinued operations.For 2007, the loss from discontinued operations, including the loss on disposal of the Companys After Hours Formalwear business, totaled $22 million befor

Receivables

Receivables
	12 Months Ended Jan. 30, 2010
Receivables	7. Receivables Receivables were $358 million at January30, 2010, compared to $360 million at January31, 2009. In connection with the sales of credit card accounts and related receivable balances, the Company and Citibank entered into a long-term marketing and servicing alliance pursuant to the terms of a Credit Card Program Agreement (the Program Agreement) with an initial term of 10 years expiring on July17, 2016 and, unless terminated by either party as of the expiration of the initial term, an additional renewal term of three years.The Program Agreement provides for, among other things, (i)the ownership by Citibank of the accounts purchased by Citibank, (ii)the ownership by Citibank of new accounts opened by the Companys customers, (iii)the provision of credit by Citibank to the holders of the credit cards associated with the foregoing accounts, (iv)the servicing of the foregoing accounts, and (v)the allocation between Citibank and the Company of the economic benefits and burdens associated with the foregoing and other aspects of the alliance. Pursuant to the Program Agreement, the Company continues to provide certain servicing functions related to the accounts and related receivables owned by Citibank and receives compensation from Citibank for these services. The amounts earned under the Program Agreement related to the servicing functions are deemed adequate compensation and, accordingly, no servicing asset or liability has been recorded on the Consolidated Balance Sheets. Amounts received under the Program Agreement were $525 million for 2009, $594 million for 2008, and $661 million for 2007, and are treated as reductions of selling, general and administrative expenses on the Consolidated Statements of Operations. The Companys earnings from credit operations, net of servicing expenses, were $323 million for 2009, $372 million for 2008, and $450 million for 2007.

Inventories

Inventories
	12 Months Ended Jan. 30, 2010
Inventories	8. Inventories Merchandise inventories were $4,615 million at January30, 2010, compared to $4,769 million at January31, 2009. At these dates, the cost of inventories using the LIFO method approximated the cost of such inventories using the FIFO method. The application of the LIFO method did not impact cost of sales for 2009, 2008 or 2007.

Properties and Leases

Properties and Leases
	12 Months Ended Jan. 30, 2010
Properties and Leases	9. Properties and Leases January30, 2010 January31, 2009 (millions) Land $ 1,719 $ 1,764 Buildings on owned land 5,160 5,258 Buildings on leased land and leasehold improvements 2,232 2,217 Fixtures and equipment 6,129 6,608 Leased properties under capitalized leases 49 53 15,289 15,900 Less accumulated depreciation and amortization 5,782 5,458 $ 9,507 $ 10,442 In connection with various shopping center agreements, the Company is obligated to operate certain stores within the centers for periods of up to twentyyears. Some of these agreements require that the stores be operated under a particular name. The Company leases a portion of the real estate and personal property used in its operations. Most leases require the Company to pay real estate taxes, maintenance and other executory costs; some also require additional payments based on percentages of sales and some contain purchase options. Certain of the Companys real estate leases have terms that extend for significant numbers of years and provide for rental rates that increase or decrease over time. In addition, certain of these leases contain covenants that restrict the ability of the tenant (typically a subsidiary of the Company) to take specified actions (including the payment of dividends or other amounts on account of its capital stock) unless the tenant satisfies certain financial tests. Minimum rental commitments (excluding executory costs) at January30, 2010, for noncancellable leases are: Capitalized Leases Operating Leases Total (millions) Fiscal year: 2010 $ 7 $ 228 $ 235 2011 6 212 218 2012 6 195 201 2013 4 174 178 2014 3 154 157 After 2014 28 1,567 1,595 Total minimum lease payments 54 $ 2,530 $ 2,584 Less amount representing interest 25 Present value of net minimum capitalized lease payments $ 29 Capitalized leases are included in the Consolidated Balance Sheets as property and equipment while the related obligation is included in short-term ($4 million) and long-term ($25 million) debt. Amortization of assets subject to capitalized leases is included in depreciation and amortization expense. Total minimum lease payments shown above have not been reduced by minimum sublease rentals of approximately $73million on operating leases. The Company is a guarantor with respect to certain lease obligations associated with businesses divested by May prior to the Merger. The leases, one of which includes potential extensions to 2070, have future minimum lease payments aggregating approximately $420 million and are offset by payments from existing tenants and subtenants. In addition, the Company is liable for other expenses related to the above leases, such as property taxes and common area maintenance, which are also payable by existing tenants and subtenan

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets
	12 Months Ended Jan. 30, 2010
Goodwill and Other Intangible Assets	10. Goodwill and Other Intangible Assets The following summarizes the Companys goodwill and other intangible assets: January30, 2010 January31, 2009 (millions) Non-amortizing intangible assets Goodwill $ 3,743 $ 3,743 Tradenames 414 414 $ 4,157 $ 4,157 Amortizing intangible assets Favorable leases $ 256 $ 264 Customer relationships 188 188 444 452 Accumulated amortization Favorable leases (97 ) (83 ) Customer relationships (83 ) (64 ) (180 ) (147 ) $ 264 $ 305 During 2008, the Company recorded a goodwill impairment charge of $5,382 million based on the results of goodwill impairment testing as of January31, 2009. See Note 4, Goodwill Impairment Charges, for further information. Goodwill also decreased during 2008 as a result of adjustments to tax liabilities, unrecognized tax benefits and related interest, totaling approximately $8 million, and less than $1 million related to certain income tax benefits realized resulting from the exercise of stock options assumed in the acquisition of May. Also during 2008, the Company recognized approximately $63 million of impairment charges associated with acquired indefinite-lived private brand tradenames. See Note 3, Asset Impairment Charges, for further information. Intangible amortization expense amounted to $41 million for 2009, $42 million for 2008 and $43 million for 2007. Future estimated intangible amortization expense is shown below: (millions) Fiscal year: 2010 $ 41 2011 39 2012 37 2013 34 2014 31 As a result of the acquisition of May, the Company established intangible assets related to favorable leases, customer lists, customer relationships and both definite and indefinite-lived tradenames. Favorable lease intangible assets are being amortized over their respective lease terms (weighted average life of approximately twelve years) and customer relationship intangible assets are being amortized over their estimated useful lives of ten years.

Financing

Financing
	12 Months Ended Jan. 30, 2010
Financing	11. Financing The Companys debt is as follows: January30, 2010 January31, 2009 (millions) Short-term debt: 10.625% Senior debentures due 2010 $ 150 $ 0 8.5% Senior notes due 2010 76 0 4.8% Senior notes due 2009 0 600 6.3% Senior notes due 2009 0 350 Capital lease and current portion of other long-term obligations 16 16 $ 242 $ 966 Long-term debt: 5.35% Senior notes due 2012 $ 1,100 $ 1,100 5.9% Senior notes due 2016 1,100 1,100 7.875% Senior notes due 2015 * 650 650 6.625% Senior notes due 2011 500 500 5.75% Senior notes due 2014 500 500 6.375% Senior notes due 2037 500 500 6.9% Senior debentures due 2029 400 400 6.7% Senior debentures due 2034 400 400 5.875% Senior notes due 2013 350 350 7.45% Senior debentures due 2017 300 300 6.65% Senior debentures due 2024 300 300 7.0% Senior debentures due 2028 300 300 6.9% Senior debentures due 2032 250 250 8.0% Senior debentures due 2012 200 200 6.7% Senior debentures due 2028 200 200 6.79% Senior debentures due 2027 165 165 7.45% Senior debentures due 2011 150 150 7.625% Senior debentures due 2013 125 125 7.45% Senior debentures due 2016 125 125 7.875% Senior debentures due 2036 108 108 7.5% Senior debentures due 2015 100 100 8.125% Senior debentures due 2035 76 76 8.75% Senior debentures due 2029 61 61 9.5% amortizing debentures due 2021 41 44 8.5% Senior debentures due 2019 36 36 10.25% Senior debentures due 2021 33 33 7.6% Senior debentures due 2025 24 24 9.75% amortizing debentures due 2021 22 24 7.875% Senior debentures due 2030 18 18 10.625% Senior debentures due 2010 0 150 8.5% Senior notes due 2010 0 76 Premium on acquired debt, using an effective interest yield of 4.854% to 6.165% 275 308 Capital lease and other long-term obligations 47 60 $ 8,456 $ 8,733 * The rate of interest payable in respect of these senior notes was increased by one percent per annum to 8.875% in April 2009 as a result of a downgrade of the notes by specified rating agencies. The rate of interest payable in respect of these senior notes could increase or decrease by up to one percent per annum from its current level in the event of one or more downgrades or upgrades of the notes by specified rating agencies. Interest expense is as follows: 2009 2008 2007 (millions) Interest on debt $ 587 $ 621 $ 617 Amortization of debt premium (33 ) (34 ) (37 ) Amortization of financing costs 10 7 6 Interest on capitalized leases 3 5 4 567 599 590 Less interest

Accounts Payable and Accrued Li

Accounts Payable and Accrued Liabilities
	12 Months Ended Jan. 30, 2010
Accounts Payable and Accrued Liabilities	12. Accounts Payable and Accrued Liabilities January30, 2010 January31, 2009 (millions) Accounts payable $ 484 $ 611 Liabilities to customers 670 672 Lease related liabilities 265 255 Accrued wages and vacation 307 136 Taxes other than income taxes 199 195 Current portion of workers compensation and general liability reserves 141 153 Accrued interest 122 132 Current portion of post employment and postretirement benefits 94 123 Severance and relocation 71 30 Other 273 321 $ 2,626 $ 2,628 Liabilities to customers includes liabilities related to gift cards and customer award certificates of $594 million at January30, 2010 and $599 million at January31, 2009 and also includes an estimated allowance for future sales returns of $65 million at January30, 2010 and $59 million at January31, 2009. Adjustments to the allowance for future sales returns, which amounted to a charge of $6 million for 2009, a credit of $14 million for 2008, and a credit of $5 million for 2007, are reflected in cost of sales. Changes in workers compensation and general liability reserves, including the current portion, are as follows: 2009 2008 2007 (millions) Balance, beginning of year $ 495 $ 471 $ 487 Charged to costs and expenses 124 164 131 Payments, net of recoveries (141 ) (140 ) (147 ) Balance, end of year $ 478 $ 495 $ 471 The non-current portion of workers compensation and general liability reserves is included in other liabilities on the Consolidated Balance Sheets. At January30, 2010 and January31, 2009, workers compensation and general liability reserves included $90 million of liabilities which are covered by deposits and receivables included in current assets on the Consolidated Balance Sheets. Other in the foregoing Accounts Payable and Accrued Liabilities table, at January31, 2009, included $25 million for the settlement of a wage and hour class action in California, which was paid in February 2009.

Taxes

Taxes
	12 Months Ended Jan. 30, 2010
Taxes	13. Taxes Income tax expense is as follows: 2009 2008 2007 Current Deferred Total Current Deferred Total Current Deferred Total (millions) Federal $ 48 $ 96 $ 144 $ 6 $ (123 ) $ (117 ) $ 370 $ (10 ) $ 360 State and local 9 4 13 8 (26 ) (18 ) 53 (2 ) 51 $ 57 $ 100 $ 157 $ 14 $ (149 ) $ (135 ) $ 423 $ (12 ) $ 411 The income tax expense reported differs from the expected tax computed by applying the federal income tax statutory rate of 35% for 2009, 2008 and 2007 to income (loss) from continuing operations before income taxes. The reasons for this difference and their tax effects are as follows: 2009 2008 2007 (millions) Expected tax $ 177 $ (1,728 ) $ 462 State and local income taxes, net of federal income tax benefit 9 (12 ) 36 Settlement of federal tax examinations (21 ) 0 (78 ) Non-deductibility of goodwill impairment charges 0 1,611 0 Other (8 ) (6 ) (9 ) $ 157 $ (135 ) $ 411 During the fourth quarter of 2009, the Company settled Internal Revenue Service (IRS) examinations for fiscal years 2008, 2007 and 2006. As a result of the settlement, the Company recognized previously unrecognized tax benefits and related accrued interest totaling $21 million, primarily attributable to the disposition of former subsidiaries. During the fourth quarter of 2007, the Company settled an IRS examination for fiscal years 2005, 2004 and 2003. As a result of the settlement, the Company recognized previously unrecognized tax benefits and related accrued interest totaling $78 million, primarily attributable to losses related to the disposition of a former subsidiary. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows: January30, 2010 January31, 2009 (millions) Deferred tax assets: Post employment and postretirement benefits $ 645 $ 654 Accrued liabilities accounted for on a cash basis for tax purposes 306 276 Long-term debt 128 144 Unrecognized state tax benefits and accrued interest 100 105 Federal operating loss carryforwards 0 7 State operating loss carryforwards 56 55 Other 119 95 Valuation allowance (28 ) (33 ) Total deferred tax assets 1,326 1,303 Deferred tax liabilities: Excess of book basis over tax basis of property and equipment (1,856 ) (1,950 ) Merchandise inventories (441 ) (442 ) Intangible assets (125 ) (94 ) Other (178 ) (158 )

Retirement Plans

Retirement Plans
	12 Months Ended Jan. 30, 2010
Retirement Plans	14. Retirement Plans The Company has a funded defined benefit plan (Pension Plan) and a defined contribution plan (Savings Plan) which cover substantially all employees who work 1,000 hours or more in a year. In addition, the Company has an unfunded defined benefit supplementary retirement plan (SERP), which provides benefits, for certain employees, in excess of qualified plan limitations. For 2009, 2008 and 2007, retirement expense for these plans totaled $119 million, $151 million and $170 million, respectively. Effective February4, 2007, the Company adopted the measurement date provision of Statement of Financial Accounting Standards No.158, Employers Accounting for Defined Benefit and Other Postretirement Plans an amendment of FASB Statements No.87, 88, 106 and 132(R) (subsequently included in ASC Subtopic 715-30, Defined Benefit Plans Pension). This required a change in the Companys measurement date, which was previously December31, to be the date of the Companys fiscal year-end. As a result, the Company recorded a $6 million decrease to accumulated equity, a $29 million decrease to accumulated other comprehensive loss, a $37 million decrease to other liabilities and a $14 million increase to deferred income taxes. Pension Plan The following provides a reconciliation of benefit obligations, plan assets, and funded status of the Pension Plan as of January30, 2010 and January31, 2009: 2009 2008 (millions) Change in projected benefit obligation Projected benefit obligation, beginning of year $ 2,444 $ 2,656 Service cost 81 97 Interest cost 173 159 Actuarial (gain) loss 401 (221 ) Benefits paid (220 ) (247 ) Projected benefit obligation, end of year $ 2,879 $ 2,444 Changes in plan assets Fair value of plan assets, beginning of year $ 1,438 $ 2,319 Actual return on plan assets 277 (634 ) Company contributions 370 0 Benefits paid (220 ) (247 ) Fair value of plan assets, end of year $ 1,865 $ 1,438 Funded status at end of year $ (1,014 ) $ (1,006 ) Amounts recognized in the Consolidated Balance Sheets at January30, 2010 and January31, 2009 Other liabilities $ (1,014 ) $ (1,006 ) Amounts recognized in accumulated other comprehensive loss at January30, 2010 and January31, 2009 Net actuarial loss $ 1,186 $ 875 Prior service credit (3 ) (4 ) $ 1,183 $ 871 The accumulated benefit obligation for the Pension Plan was $2,657 million as of January30, 2010 and $2,261 million as of January31, 2009. Net pension costs and other amounts recognized in other comprehensive loss for the Pension Plan included the following actuarially determined components: 2009 2008 2007 (millions) Net Periodic Pension Cost Service cost $ 81 $ 97 $ 104 Interest cost

Postretirement Health Care and

Postretirement Health Care and Life Insurance Benefits
	12 Months Ended Jan. 30, 2010
Postretirement Health Care and Life Insurance Benefits	15. Postretirement Health Care and Life Insurance Benefits In addition to pension and other supplemental benefits, certain retired employees currently are provided with specified health care and life insurance benefits. Eligibility requirements for such benefits vary by division and subsidiary, 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. Effective February4, 2007, the Company adopted the measurement date provision of Statement of Financial Accounting Standards No.158, Employers Accounting for Defined Benefit and Other Postretirement Plans an amendment of FASB Statements No.87, 88, 106 and 132(R) (subsequently included in ASC Subtopic 715-60, Defined Benefit Plans Other Postretirement). This required a change in the Companys measurement date, which was previously December31, to be the date of the Companys fiscal year-end. As a result, the Company recorded a $1 million decrease to accumulated equity and a $1 million increase to other liabilities. The following provides a reconciliation of benefit obligations, plan assets, and funded status of the postretirement obligations as of January30, 2010 and January31, 2009: 2009 2008 (millions) Change in accumulated postretirement benefit obligation Accumulated postretirement benefit obligation, beginning of year $ 277 $ 351 Interest cost 19 19 Actuarial (gain) loss 8 (70 ) Medicare Part D subsidy 2 2 Benefits paid (28 ) (25 ) Accumulated postretirement benefit obligation, end of year $ 278 $ 277 Change in plan assets Fair value of plan assets, beginning of year $ 0 $ 0 Company contributions 28 25 Benefits paid (28 ) (25 ) Fair value of plan assets, end of year $ 0 $ 0 Funded status at end of year $ (278 ) $ (277 ) Amounts recognized in the Consolidated Balance Sheets at January30, 2010 and January31, 2009 Accounts payable and accrued liabilities $ (31 ) $ (39 ) Other liabilities (247 ) (238 ) $ (278 ) $ (277 ) Amounts recognized in accumulated other comprehensive income at January30, 2010 and January31, 2009 Net actuarial gain $ (38 ) $ (53 ) Net postretirement benefit costs and other amounts recognized in other comprehensive income included the following actuarially determined components: 2009 2008 2007 (millions) Net Periodic Postretirement Benefit Cost Service cost $ 0 $ 0 $ 0 Interest cost 19 19 21 Amortization of net actuarial (gain) loss (7 ) (3 ) 1 Amortization of prior service credit 0 0 (1 ) 12 16 21 Other

Stock Based Compensation

Stock Based Compensation
	12 Months Ended Jan. 30, 2010
Stock Based Compensation	16. Stock Based Compensation During 2009, the Company obtained shareholder approval for the Macys 2009 Omnibus Incentive Compensation Plan under which up to fifty-one million shares of Common Stock may be issued. This plan is intended to help the Company attract and retain directors, officers, other key executives and employees and is also intended to provide incentives and rewards relating to the Companys business plans to encourage such persons to devote themselves to the business of the Company. Prior to 2009, the Company had two equity plans.As of the date of the Merger, the Company assumed Mays equity plan, which was subsequently amended to have identical terms and provisions of the Companys other equity plan. At the date of the Merger, all outstanding May options under Mays equity plan were fully vested and were converted into options to acquire common stock of the Company in accordance with the Merger agreement. The following disclosures present the Companys equity plans prior to 2009 on a combined basis. The equity plan is administered by the Compensation and Management Development Committee of the Board of Directors (the CMD Committee). The CMD Committee is authorized to grant options, stock appreciation rights, restricted stock and restricted stock units to officers and key employees of the Company and its subsidiaries and to non-employee directors.Stock option grants have an exercise price at least equal to the market value of the underlying common stock on the date of grant, have ten-year terms and typically vest ratably over four years of continued employment. The Company also has a stock credit plan.Beginning in 2004, key management personnel became eligible to earn a stock credit grant over a two-year performance period ended January28, 2006.In general, each stock credit is intended to represent the right to receive the value associated with one share of the Companys common stock, including dividends paid on shares of the Companys common stock during the period from the end of the performance period until such stock credit is settled in cash.The total remaining stock credit awards outstanding as of January31, 2009, including reinvested dividend equivalents earned during the holding period, relating to the 2004 grant was paid in cash in early 2009. In 2006, key management personnel became eligible to earn a stock credit grant over a two-year performance period ending February2, 2008.There were a total of 1,451,889 stock credit awards outstanding as of January30, 2010, including reinvested dividend equivalents earned during the holding period, relating to the 2006 grant. In general, with respect to the stock credits awarded to participants in 2006, the value of one-half of the stock credits earned plus reinvested dividend equivalents was paid in cash in early 2010 and the value of the other half of such earned stock credits plus reinvested dividend equivalents will be paid in cash in early 2011. In 2008, key management personnel became eligible to earn a stock credit grant over a two-year performance period ending January30, 2010. There were a total of 1,815,466 stock credit awards outstanding as of January30, 2010,

Shareholders' Equity

Shareholders' Equity
	12 Months Ended Jan. 30, 2010
Shareholders' Equity	17. Shareholders Equity The authorized shares of the Company consist of 125million shares of preferred stock (Preferred Stock), par value of $.01 per share, with no shares issued, and 1,000million shares of Common Stock, par value of $.01 per share, with 495.0million shares of Common Stock issued and 420.8million shares of Common Stock outstanding at January30, 2010, and 495.0million shares of Common Stock issued and 420.1million shares of Common Stock outstanding at January31, 2009 (with shares held in the Companys treasury being treated as issued, but not outstanding). Commencing in January 2000, the Companys board of directors has from time to time approved authorizations to purchase, in the aggregate, up to $9,500 million of Common Stock. All authorizations are cumulative and do not have an expiration date. As of January30, 2010, $852 million of authorization remained unused. Although the Companys share repurchase program is currently suspended and the Company has not made any purchases of Common Stock since February1, 2008 and currently does not intend to make any such purchases in 2010, it may resume purchases of Common Stock under these or possible future authorizations in the open market, in privately negotiated transactions or otherwise at any time and from time to time without prior notice. In February 2007, the Company effected the immediate repurchase of 45million outstanding shares for an initial payment of approximately $2,000 million, subject to settlement provisions pursuant to the terms of the related accelerated share repurchase agreements, which included derivative financial instruments indexed to shares of Common Stock. Upon settlement of the accelerated share repurchase agreements in May and June of 2007, the Company received approximately 700,000 additional shares of Common Stock, resulting in a total of approximately 45.7million shares being repurchased. During 2007, the Company retired 109million shares of Common Stock. Common Stock The holders of the Common Stock are entitled to one vote for each share held of record on all matters submitted to a vote of shareholders. Subject to preferential rights that may be applicable to any Preferred Stock, holders of Common Stock are entitled to receive ratably such dividends as may be declared by the Board of Directors in its discretion, out of funds legally available therefor. Treasury Stock Treasury stock contains shares repurchased under the share repurchase program, shares repurchased to cover employee tax liabilities related to stock plan activity and shares maintained in a trust related to deferred compensation plans. Under the deferred compensation plans, shares are maintained in a trust to cover the number estimated to be needed for distribution on account of stock credits currently outstanding. Changes in the Companys Common Stock issued and outstanding, including shares held by the Companys treasury, are as follows: Common Stock Issued Treasury Stock Common Stock Outstanding Deferred Compensation Plans Other Total (thousands) Balance at February3, 2007 6

Fair Value Measurements and Con

Fair Value Measurements and Concentrations of Credit Risk
	12 Months Ended Jan. 30, 2010
Fair Value Measurements and Concentrations of Credit Risk	18. Fair Value Measurements and Concentrations of Credit Risk The following table shows the Companys financial assets that are required to be measured at fair value on a recurring basis: January30, 2010 January31, 2009 Total Fair Value Measurements Total Fair Value Measurements QuotedPrices in Active Markets for IdenticalAssets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) QuotedPrices in Active Markets for IdenticalAssets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (millions) Marketable equity and debt securities $ 99 $ 33 $ 66 $ 0 $ 88 $ 25 $ 63 $ 0 Other financial instruments not measured at fair value on a recurring basis include cash and cash equivalents, receivables, 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 approximates fair value because of the short maturity of these instruments. The fair values of long-term debt, excluding capitalized leases, are estimated based on the quoted market prices for publicly traded debt or by using discounted cash flow analyses, based on the Companys current incremental borrowing rates for similar types of borrowing arrangements. The following table shows the estimated fair value of the Companys long-term debt: January30, 2010 January31, 2009 Notional Amount Carrying Amount Fair Value Notional Amount Carrying Amount Fair Value (millions) Long-term debt $ 8,156 $ 8,431 $ 7,946 $ 8,394 $ 8,702 $ 5,772 The following table shows certain of the Companys non-financial assets that were measured at fair value on a nonrecurring basis during 2009: Total Fair Value Measurements QuotedPrices in Active Markets for IdenticalAssets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (millions) Long-lived assets held and used $ 33 $ 0 $ 0 $ 33 During 2009, long-lived assets held and used with a carrying value of $148 million were written down to their fair value of $33 million, resulting in an asset impairment charge of $115 million. The fair values of these locations were calculated based on the projected cash flows and an estimated risk-adjusted rate of return that would be used by market participants in valuing these assets or prices of similar assets. Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of temporary cash investments. The Company places its temporary cash investments in what it believes to be high credit quality financial instruments.

Earnings

Earnings (Loss) Per Share
	12 Months Ended Jan. 30, 2010
Earnings (Loss) Per Share	19. Earnings (Loss) Per Share The reconciliation of basic earnings (loss) per share to diluted earnings (loss) per share based on income (loss) from continuing operations is as follows: 2009 2008 2007 Income Shares Loss Shares Income Shares (millions, except per share data) Income (loss) from continuing operations and average number of shares outstanding $ 350 420.4 $ (4,803 ) 420.0 $ 909 445.6 Shares to be issued under deferred compensation plans 1.3 1.2 1.0 $ 350 421.7 $ (4,803 ) 421.2 $ 909 446.6 Basic earnings (loss) per share $ .83 $ (11.40 ) $ 2.04 Effect of dilutive securities Stock options and restricted stock 1.5 0 5.2 $ 350 423.2 $ (4,803 ) 421.2 $ 909 451.8 Diluted earnings (loss) per share $ .83 $ (11.40 ) $ 2.01 In addition to the stock options and restricted stock reflected in the foregoing table, stock options to purchase 28.9million shares of common stock at prices ranging from $17.40 to $46.15 per share, 75,000 shares of restricted stock and 2.9million shares of performance-based restricted stock units were outstanding at January30, 2010 and stock options to purchase 20.2million shares of common stock at prices ranging from $27.00 to $46.15 per share and 274,000 shares of restricted stock were outstanding at February2, 2008 but were not included in the computation of diluted earnings per share for 2009 and 2007, respectively, because their inclusion would have been antidilutive. Stock options to purchase 38.8million of shares of common stock at prices ranging from $12.79 to $46.15 per share and 483,000 shares of restricted stock were outstanding at January31, 2009, but were not included in the computation of diluted loss per share for 2008 because, as a result of the Companys net loss for the fiscal year, their inclusion would have been antidilutive.

Quarterly Results

Quarterly Results (unaudited)
	12 Months Ended Jan. 30, 2010
Quarterly Results (unaudited)	20. Quarterly Results (unaudited) Unaudited quarterly results for the last two years were as follows: First Quarter Second Quarter Third Quarter Fourth Quarter (millions, except per share data) 2009: Net sales $ 5,199 $ 5,164 $ 5,277 $ 7,849 Cost of sales (3,219 ) (3,021 ) (3,156 ) (4,577 ) Gross margin 1,980 2,143 2,121 3,272 Selling, general and administrative expenses (1,956 ) (1,861 ) (2,033 ) (2,212 ) Division consolidation costs and store closing related costs (138 ) (34 ) (33 ) (71 ) Asset impairment charges 0 0 0 (115 ) Net income (loss) (88 ) 7 (35 ) 466 Basic earnings (loss) per share (.21 ) .02 (.08 ) 1.10 Diluted earnings (loss) per share (.21 ) .02 (.08 ) 1.10 2008: Net sales $ 5,747 $ 5,718 $ 5,493 $ 7,934 Cost of sales (3,527 ) (3,346 ) (3,324 ) (4,812 ) Gross margin 2,220 2,372 2,169 3,122 Selling, general and administrative expenses (2,103 ) (2,037 ) (2,085 ) (2,256 ) Division consolidation costs and store closing related costs (87 ) (26 ) (16 ) (58 ) Asset impairment charges 0 (50 ) 0 (161 ) Goodwill impairment charges 0 0 0 (5,382 ) Net income (loss) (59 ) 73 (44 ) (4,773 ) Basic earnings (loss) per share (.14 ) .17 (.10 ) (11.33 ) Diluted earnings (loss) per share (.14 ) .17 (.10 ) (11.33 )

Condensed Consolidating Financi

Condensed Consolidating Financial Information
	12 Months Ended Jan. 30, 2010
Condensed Consolidating Financial Information	21. Condensed Consolidating Financial Information The senior notes and senior debentures of the Company described in Note 11, which constitute debt obligations of Parents wholly-owned subsidiary, Macys Retail Holdings, Inc. (Subsidiary Issuer) are fully and unconditionally guaranteed by Parent. In the following condensed consolidating financial statements, Other Subsidiaries includes all other direct subsidiaries of Parent, including FDS Bank, Leadville Insurance Company and Snowdin Insurance Company and, prior to the respective dates of their dispositions, Priscilla of Boston and Davids Bridal, Inc. and its subsidiaries, including After Hours Formalwear, Inc. and, after its transfer to Parent on November2, 2008, Macys Merchandising Group, Inc. and its subsidiary Macys Merchandising Group International, LLC. 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 (including, prior to its transfer to Parent on November2, 2008, Macys Merchandising Group, Inc. and its subsidiary Macys Merchandising Group International, LLC) are also reflected in Other Subsidiaries. Condensed Consolidating Balance Sheets as of January30, 2010 and January31, 2009, the related Condensed Consolidating Statements of Operations for 2009, 2008 and 2007, and the related Condensed Consolidating Statements of Cash Flows for 2009, 2008, and 2007 are presented on the following pages. MACYS, INC. Condensed Consolidating Balance Sheet As of January30, 2010 (millions) Parent Subsidiary Issuer Other Subsidiaries Consolidating Adjustments Consolidated ASSETS: Current Assets: Cash and cash equivalents $ 1,318 $ 60 $ 308 $ 0 $ 1,686 Receivables 0 82 276 0 358 Merchandise inventories 0 2,536 2,079 0 4,615 Supplies and prepaid expenses 0 98 125 0 223 Income taxes 7 0 0 (7 ) 0 Deferred income tax assets 0 0 54 (54 ) 0 Total Current Assets 1,325 2,776 2,842 (61 ) 6,882 Property and Equipment net 0 5,383 4,124 0 9,507 Goodwill 0 3,315 428 0 3,743 Other Intangible Assets net 0 217 461 0 678 Other Assets 4 123 363 0 490 Deferred Income Tax Assets 113 0 0 (113 ) 0 IntercompanyReceivable 890 0 2,188 (3,078 ) 0 Investment in Subsidiaries 2,627 2,792 0 (5,419 ) 0 Total Assets $ 4,959 $ 14,606 $ 10,406 $ (8,671 ) $ 21,300 LIABILITIES AND SHAREHOLDERS EQUITY: Current Liabilities: Short-term debt $ 0 $ 239 $ 3 $ 0 $ 242 Merc

Document Information

Document Information
	12 Months Ended Jan. 30, 2010
Document Type	10-K
Amendment Flag	false
Document Period End Date	2010-01-30

Entity Information

Entity Information (USD $)
	12 Months Ended Jan. 30, 2010	Feb. 26, 2010	Aug. 01, 2009
Trading Symbol	M
Entity Registrant Name	Macy's, Inc.
Entity Central Index Key	0000794367
Current Fiscal Year End Date	--01-30
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		421,530,806
Entity Public Float			$5,849,150,000