Delaware | 13-3324058 | ||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||
151 West 34th Street, New York, New York 10001 | (212) 494-1621 | ||||
(Address of Principal Executive Offices, including Zip Code) | (Registrant's telephone number, including area code) |
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||||||||
Common Stock, $.01 par value | M | New York Stock Exchange |
Large Accelerated Filer | x | Accelerated Filer | o | ||||||||||||||||||||
Non-Accelerated Filer | o | Emerging Growth Company | o | Smaller Reporting Company | o |
Class | Outstanding at February 24, | |||||||
Common Stock, |
Document | Parts Into Which Incorporated | |||||||
Proxy Statement for the Annual Meeting of Stockholders to be held May 19, | Part III |
Auditor Firm ID: | 185 | Auditor Name: | KPMG, LLP | Auditor Location: | Cincinnati, OH |
Page | |||||
2022 | 2021 | 2020 | |||||||||||||||
Women’s Accessories, Shoes, Cosmetics and Fragrances | $ | 9,597 | $ | 9,385 | $ | 6,667 | |||||||||||
Women’s Apparel | 5,349 | 5,174 | 3,454 | ||||||||||||||
Men’s and Kids’ | 5,297 | 5,247 | 3,477 | ||||||||||||||
Home/Other (a) | 4,199 | 4,654 | 3,748 | ||||||||||||||
Total | $ | 24,442 | $ | 24,460 | $ | 17,346 |
2016 | 2015 | 2014 | ||||||
Women’s Accessories, Intimate Apparel, Shoes, Cosmetics and Fragrances | 38 | % | 38 | % | 38 | % | ||
Women’s Apparel | 23 | 23 | 23 | |||||
Men’s and Children’s | 23 | 23 | 23 | |||||
Home/Miscellaneous | 16 | 16 | 16 | |||||
100 | % | 100 | % | 100 | % |
Name | Age | Position with the Company | |||||||||||||
Chief Executive | |||||||||||||||
Executive Vice President and Chief | |||||||||||||||
Elisa D. Garcia | Executive Vice President, Chief Legal Officer and Secretary | ||||||||||||||
Executive Vice President and Chief | |||||||||||||||
Tony Spring | Executive Vice President, Macy's Inc. and Chairman and Chief Executive Officer, Bloomingdale's | ||||||||||||||
2022 | |||||||||||
Boxes | Locations | ||||||||||
Macy's | 566 | 507 | |||||||||
Bloomingdale's | 57 | 55 | |||||||||
bluemercury | 160 | 160 | |||||||||
783 | 722 |
2016 | 2015 | 2014 | ||||||
Macy's | 673 | 737 | 773 | |||||
Bloomingdale's | 55 | 54 | 50 | |||||
Bluemercury | 101 | 77 | — | |||||
829 | 868 | 823 |
2022 | |||||||||||||||||||
2016 | 2015 | 2014 | Boxes | Locations | |||||||||||||||
Store count at beginning of fiscal year | 868 | 823 | 840 | Store count at beginning of fiscal year | 787 | 725 | |||||||||||||
Stores opened | 27 | 26 | 5 | Stores opened | 10 | 10 | |||||||||||||
Acquisition of Bluemercury stores | — | 62 | — | ||||||||||||||||
Stores closed or consolidated into existing centers | (66 | ) | (43 | ) | (22 | ) | |||||||||||||
Stores closed, consolidated into or relocated from existing centers | Stores closed, consolidated into or relocated from existing centers | (14) | (13) | ||||||||||||||||
Store count at end of fiscal year | 829 | 868 | 823 | Store count at end of fiscal year | 783 | 722 |
By Brand | Total | Owned | Leased | Subject to a Ground Lease | Partly Owned and Partly Leased | ||||||||||||||||||||||||
Macy's | 566 | 302 | 164 | 96 | 4 | ||||||||||||||||||||||||
Bloomingdale's | 57 | 14 | 37 | 6 | — | ||||||||||||||||||||||||
bluemercury | 160 | — | 160 | — | — | ||||||||||||||||||||||||
783 | 316 | 361 | 102 | 4 |
Geographic Region | Total | Owned | Leased | Subject to a Ground Lease | Partly Owned and Partly Leased | ||||||||||
North Central | 142 | 84 | 38 | 20 | — | ||||||||||
Northeast | 250 | 90 | 132 | 28 | — | ||||||||||
Northwest | 131 | 44 | 62 | 22 | 3 | ||||||||||
South | 179 | 116 | 42 | 21 | — | ||||||||||
Southwest | 127 | 48 | 56 | 22 | 1 | ||||||||||
829 | 382 | 330 | 113 | 4 |
Location | Primary Function | Owned or Leased | Square Footage (thousands) | ||||||||||||||||||
Bridgeton, MO | Stores | Leased | 43 | ||||||||||||||||||
Cheshire, CT | Direct to customer | Owned | 719 | ||||||||||||||||||
Chicago, IL | Stores | Owned | 862 | ||||||||||||||||||
Stores | Leased | 673 | |||||||||||||||||||
Dayton, OH | Stores | Leased | 107 | ||||||||||||||||||
Denver, CO | Stores | Leased | 20 | ||||||||||||||||||
Goodyear, AZ | Direct to customer | Owned | 1,560 | ||||||||||||||||||
Hayward, CA | Stores | Owned | 310 | ||||||||||||||||||
Houston, TX | Stores | 872 | |||||||||||||||||||
Joppa, MD | Stores | Owned | 850 | ||||||||||||||||||
Kapolei, HI | Stores | 260 | |||||||||||||||||||
Los Angeles, CA | Stores | Owned | 1,529 | ||||||||||||||||||
Martinsburg, WV | Direct to customer | Owned | 2,200 | ||||||||||||||||||
Miami, FL | Stores | Leased | 535 | ||||||||||||||||||
Portland, TN | Direct to customer | Owned | 1,455 | ||||||||||||||||||
Raritan, NJ | Stores | Owned | 980 | ||||||||||||||||||
Sacramento, CA | Direct to customer | Leased | 385 | ||||||||||||||||||
Secaucus, NJ | Stores | Leased | 675 | ||||||||||||||||||
South Windsor, CT | Stores | Owned | 595 | ||||||||||||||||||
Stone Mountain, GA | Stores | Owned | 920 | ||||||||||||||||||
Stores | 500 | ||||||||||||||||||||
Tulsa, OK | Direct to customer | Owned | 2,195 | ||||||||||||||||||
Union City, CA | Stores | Leased | 165 | ||||||||||||||||||
Youngstown, OH | Stores | Owned | 610 |
2016 | 2015 | ||||||||||||||||
Low | High | Dividend | Low | High | Dividend | ||||||||||||
1st Quarter | 37.71 | 45.50 | 0.3600 | 61.10 | 69.98 | 0.3125 | |||||||||||
2nd Quarter | 29.94 | 40.15 | 0.3775 | 62.80 | 73.61 | 0.3600 | |||||||||||
3rd Quarter | 31.02 | 40.98 | 0.3775 | 47.10 | 70.12 | 0.3600 | |||||||||||
4th Quarter | 28.55 | 45.41 | 0.3775 | 34.05 | 52.48 | 0.3600 |
Total Number of Shares Purchased | Average Price per Share ($) | Number of Shares Purchased under Program (1) | Open Authorization Remaining ($)(1) | ||||||||
(thousands) | (thousands) | (millions) | |||||||||
October 30, 2016 – November 26, 2016 | 727 | 42.90 | 727 | 1,763 | |||||||
November 27, 2016 – December 31, 2016 | 1,152 | 40.61 | 1,152 | 1,716 | |||||||
January 1, 2017 – January 28, 2017 | — | — | — | 1,716 | |||||||
1,879 | 41.49 | 1,879 |
2016 | 2015 | 2014 | 2013 | 2012* | |||||||||||||||
(millions, except per share) | |||||||||||||||||||
Consolidated Statement of Income Data: | |||||||||||||||||||
Net sales | $ | 25,778 | $ | 27,079 | $ | 28,105 | $ | 27,931 | $ | 27,686 | |||||||||
Cost of sales | (15,621 | ) | (16,496 | ) | (16,863 | ) | (16,725 | ) | (16,538 | ) | |||||||||
Gross margin | 10,157 | 10,583 | 11,242 | 11,206 | 11,148 | ||||||||||||||
Selling, general and administrative expenses | (8,265 | ) | (8,256 | ) | (8,355 | ) | (8,440 | ) | (8,482 | ) | |||||||||
Impairments, store closing and other costs | (479 | ) | (288 | ) | (87 | ) | (88 | ) | (5 | ) | |||||||||
Settlement charges | (98 | ) | — | — | — | — | |||||||||||||
Operating income | 1,315 | 2,039 | 2,800 | 2,678 | 2,661 | ||||||||||||||
Interest expense | (367 | ) | (363 | ) | (395 | ) | (390 | ) | (425 | ) | |||||||||
Premium on early retirement of debt | — | — | (17 | ) | — | (137 | ) | ||||||||||||
Interest income | 4 | 2 | 2 | 2 | 3 | ||||||||||||||
Income before income taxes | 952 | 1,678 | 2,390 | 2,290 | 2,102 | ||||||||||||||
Federal, state and local income tax expense | (341 | ) | (608 | ) | (864 | ) | (804 | ) | (767 | ) | |||||||||
Net income | 611 | 1,070 | 1,526 | 1,486 | 1,335 | ||||||||||||||
Net loss attributable to noncontrolling interest | 8 | 2 | — | — | — | ||||||||||||||
Net income attributable to Macy's, Inc. shareholders | $ | 619 | $ | 1,072 | $ | 1,526 | $ | 1,486 | $ | 1,335 | |||||||||
Basic earnings per share attributable to Macy's, Inc. shareholders | $ | 2.01 | $ | 3.26 | $ | 4.30 | $ | 3.93 | $ | 3.29 | |||||||||
Diluted earnings per share attributable to Macy's, Inc. shareholders | $ | 1.99 | $ | 3.22 | $ | 4.22 | $ | 3.86 | $ | 3.24 | |||||||||
Average number of shares outstanding | 308.5 | 328.4 | 355.2 | 378.3 | 405.5 | ||||||||||||||
Cash dividends paid per share | $ | 1.4925 | $ | 1.3925 | $ | 1.1875 | $ | .9500 | $ | .8000 | |||||||||
Depreciation and amortization | $ | 1,058 | $ | 1,061 | $ | 1,036 | $ | 1,020 | $ | 1,049 | |||||||||
Capital expenditures | $ | 912 | $ | 1,113 | $ | 1,068 | $ | 863 | $ | 942 | |||||||||
Balance Sheet Data (at year end): | |||||||||||||||||||
Cash and cash equivalents | $ | 1,297 | $ | 1,109 | $ | 2,246 | $ | 2,273 | $ | 1,836 | |||||||||
Total assets | 19,851 | 20,576 | 21,330 | 21,499 | 20,858 | ||||||||||||||
Short-term debt | 309 | 642 | 76 | 463 | 124 | ||||||||||||||
Long-term debt | 6,562 | 6,995 | 7,233 | 6,688 | 6,768 | ||||||||||||||
Total Shareholders’ equity | 4,322 | 4,253 | 5,378 | 6,249 | 6,051 |
2022 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||
Amount | % to Sales | Amount | % to Sales | Amount | % to Sales | |||||||||||||||||||||||||||||||||
(dollars in millions, except per share figures) | ||||||||||||||||||||||||||||||||||||||
Net sales | $ | 24,442 | $ | 24,460 | $ | 17,346 | ||||||||||||||||||||||||||||||||
Increase (decrease) in comparable sales | 0.3 | % | 43.0 | % | (27.9) | % | ||||||||||||||||||||||||||||||||
Credit card revenues, net | 863 | 3.5 | % | 832 | 3.4 | % | 751 | 4.3 | % | |||||||||||||||||||||||||||||
Cost of sales | (15,306) | (62.6) | % | (14,956) | (61.1) | % | (12,286) | (70.8) | % | |||||||||||||||||||||||||||||
Selling, general and administrative expenses | (8,317) | (34.0) | % | (8,047) | (32.9) | % | (6,767) | (39.0) | % | |||||||||||||||||||||||||||||
Gains on sale of real estate | 89 | 0.4 | % | 91 | 0.4 | % | 60 | 0.2 | % | |||||||||||||||||||||||||||||
Impairment, restructuring and other costs | (41) | (0.2) | % | (30) | (0.1) | % | (3,579) | (20.6) | % | |||||||||||||||||||||||||||||
Operating income (loss) | $ | 1,730 | 7.1 | % | $ | 2,350 | 9.6 | % | $ | (4,475) | (25.8) | % | ||||||||||||||||||||||||||
Diluted earnings (loss) per share | $ | 4.19 | $ | 4.55 | $ | (12.68) | ||||||||||||||||||||||||||||||||
Supplemental Financial Measure | ||||||||||||||||||||||||||||||||||||||
Gross margin | $ | 9,136 | 37.4 | % | $ | 9,504 | 38.9 | % | $ | 5,060 | 29.2 | % | ||||||||||||||||||||||||||
Digital sales as a percent of net sales | 33 | % | 35 | % | 44 | % | ||||||||||||||||||||||||||||||||
Supplemental Non-GAAP Financial Measures | ||||||||||||||||||||||||||||||||||||||
Increase (decrease) in comparable sales on an owned plus licensed basis | 0.6 | % | 42.9 | % | (27.9) | % | ||||||||||||||||||||||||||||||||
Adjusted diluted earnings (loss) per share | $ | 4.48 | $ | 5.31 | $ | (2.21) | ||||||||||||||||||||||||||||||||
EBITDA | $ | 2,568 | $ | 3,194 | $ | (3,546) | ||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 2,648 | $ | 3,320 | $ | 117 |
2022 | 2021 | |||||||
Net sales | $ | 24,442 | $ | 24,460 | ||||
Increase in comparable sales | 0.3 | % | 43.0 | % | ||||
Increase in comparable sales on an owned plus licensed basis | 0.6 | % | 42.9 | % | ||||
Digital sales as a percent of net sales | 33 | % | 35 | % |
2022 | 2021 | |||||||
Credit card revenues, net | $ | 863 | $ | 832 | ||||
Credit card revenues, net as a percent of net sales | 3.5 | % | 3.4 | % | ||||
Proprietary credit card sales penetration | 42.9 | % | 41.6 | % |
2022 | 2021 | |||||||
Cost of sales | $ | (15,306) | $ | (14,956) | ||||
As a percent to net sales | 62.6 | % | 61.1 | % | ||||
Gross margin | $ | 9,136 | $ | 9,504 | ||||
As a percent to net sales | 37.4 | % | 38.9 | % |
2022 | 2021 | |||||||
SG&A expenses | $ | (8,317) | $ | (8,047) | ||||
As a percent to net sales | 34.0 | % | 32.9 | % |
2022 | 2021 | |||||||
Gains on sale of real estate | $ | 89 | $ | 91 |
2022 | 2021 | |||||||
Impairment, restructuring and other costs | $ | (41) | $ | (30) |
2022 | 2021 | |||||||
Benefit plan income, net | $ | 20 | $ | 66 |
2022 | 2021 | |||||||
Settlement charges | $ | (39) | $ | (96) |
2022 | 2021 | |||||||
Net interest expense | $ | (162) | $ | (255) |
2022 | 2021 | |||||||
Losses on early retirement of debt | $ | (31) | $ | (199) |
2022 | 2021 | |||||||
Effective tax rate | 22.5 | % | 23.4 | % | ||||
Federal income statutory rate | 21 | % | 21 | % |
2022 | 2021 | 2020 | |||||||||
Net cash provided by operating activities | $ | 1,615 | $ | 2,712 | $ | 649 | |||||
Net cash used by investing activities | (1,169) | (370) | (325) | ||||||||
Net cash provided (used) by financing activities | (1,296) | (2,381) | 699 |
Moody's | Standard & Poor's | Fitch | |||||||||||||||
Long-term debt | Ba1 | BB+ | BBB- | ||||||||||||||
Outlook | Stable | Stable | Stable |
January 28, 2023 | |||||
(in millions) | |||||
ASSETS | |||||
Current Assets | $ | 1,154 | |||
Noncurrent Assets | 8,261 | ||||
LIABILITIES | |||||
Current Liabilities | $ | 1,958 | |||
Noncurrent Liabilities (a) | 12,517 |
2022 | |||||
(in millions) | |||||
Net Sales | $ | 1,012 | |||
Consignment commission income (a) | 3,807 | ||||
Cost of sales | (488) | ||||
Operating loss | (894) | ||||
Loss before income taxes (b) | (135) | ||||
Net loss | 16 |
2022 | 2021 | 2020 | |||||||||
Net cash provided by operating activities | $ | 1,615 | $ | 2,712 | $ | 649 | |||||
Net cash used by investing activities | (1,169) | (370) | (325) | ||||||||
Net cash provided (used) by financing activities | (1,296) | (2,381) | 699 |
2016 | 2015 | 2014 | 2013 | 2012 | ||||||
Increase (decrease) in comparable sales on an owned basis (note 1) | (3.5)% | (3.0)% | 0.7% | 1.9% | 3.7% | |||||
Impact of growth in comparable sales of departments licensed to third parties (note 2) | 0.6% | 0.5% | 0.7% | 0.9% | 0.3% | |||||
Increase (decrease) in comparable sales on an owned plus licensed basis | (2.9)% | (2.5)% | 1.4% | 2.8% | 4.0% |
Standard & Poor's | Fitch | ||||||||||||||||
BB+ | BBB- | ||||||||||||||||
Outlook | Stable | Stable | Stable |
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
(millions, except percentages) | ||||||||||||||||||||
Net sales | $ | 25,778 | $ | 27,079 | $ | 28,105 | $ | 27,931 | $ | 27,686 | ||||||||||
Operating income | $ | 1,315 | $ | 2,039 | $ | 2,800 | $ | 2,678 | $ | 2,661 | ||||||||||
Operating income as a percent to net sales | 5.1 | % | 7.5 | % | 10.0 | % | 9.6 | % | 9.6 | % | ||||||||||
Operating income | $ | 1,315 | $ | 2,039 | $ | 2,800 | $ | 2,678 | $ | 2,661 | ||||||||||
Add back impairments, store closing and other costs | 479 | 288 | 87 | 88 | 5 | |||||||||||||||
Add back settlement charges | 98 | — | — | — | — | |||||||||||||||
Operating income, excluding certain items | $ | 1,892 | $ | 2,327 | $ | 2,887 | $ | 2,766 | $ | 2,666 | ||||||||||
Operating income, excluding certain items, as a percent to net sales | 7.3 | % | 8.6 | % | 10.3 | % | 9.9 | % | 9.6 | % |
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Diluted earnings per share attributable to Macy's, Inc. shareholders | $ | 1.99 | $ | 3.22 | $ | 4.22 | $ | 3.86 | $ | 3.24 | ||||||||||
Add back the pre-tax impact of impairments, store closing and other costs | 1.54 | 0.86 | 0.24 | 0.23 | 0.01 | |||||||||||||||
Add back the pre-tax impact of settlement charges | 0.31 | — | — | — | — | |||||||||||||||
Add back the pre-tax impact of premium on early retirement of debt | — | — | 0.05 | — | 0.33 | |||||||||||||||
Deduct the income tax impact of impairments, store closing and other costs, settlement charges and premium on early retirement of debt | (0.73 | ) | (0.31 | ) | (0.11 | ) | (0.09 | ) | (0.12 | ) | ||||||||||
Diluted earnings per share attributable to Macy's, Inc. shareholders, excluding the impact of impairments, store closing and other costs, settlement charges and premium on early retirement of debt | $ | 3.11 | $ | 3.77 | $ | 4.40 | $ | 4.00 | $ | 3.46 |
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
(millions, except percentages) | ||||||||||||||||||||
Net sales | $ | 25,778 | $ | 27,079 | $ | 28,105 | $ | 27,931 | $ | 27,686 | ||||||||||
Net income | $ | 611 | $ | 1,070 | $ | 1,526 | $ | 1,486 | $ | 1,335 | ||||||||||
Net income as a percent to net sales | 2.4 | % | 4.0 | % | 5.4 | % | 5.3 | % | 4.8 | % | ||||||||||
Net income | $ | 611 | $ | 1,070 | $ | 1,526 | $ | 1,486 | $ | 1,335 | ||||||||||
Add back impairments, store closing and other costs | 479 | 288 | 87 | 88 | 5 | |||||||||||||||
Add back settlement charges | 98 | — | — | — | — | |||||||||||||||
Add back interest expense - net | 363 | 361 | 393 | 388 | 422 | |||||||||||||||
Add back premium on early retirement of debt | — | — | 17 | — | 137 | |||||||||||||||
Add back federal, state and local income tax expense | 341 | 608 | 864 | 804 | 767 | |||||||||||||||
Add back depreciation and amortization | 1,058 | 1,061 | 1,036 | 1,020 | 1,049 | |||||||||||||||
Adjusted EBITDA | $ | 2,950 | $ | 3,388 | $ | 3,923 | $ | 3,786 | $ | 3,715 | ||||||||||
Adjusted EBITDA as a percent to net sales | 11.4 | % | 12.5 | % | 14.0 | % | 13.6 | % | 13.4 | % |
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
(millions, except percentages) | ||||||||||||||||||||
Operating income | $ | 1,315 | $ | 2,039 | $ | 2,800 | $ | 2,678 | $ | 2,661 | ||||||||||
Property and equipment - net | $ | 7,317 | $ | 7,708 | $ | 7,865 | $ | 8,063 | $ | 8,308 | ||||||||||
Operating income as a percent to property and equipment - net | 18.0 | % | 26.5 | % | 35.6 | % | 33.2 | % | 32.0 | % | ||||||||||
Operating income | $ | 1,315 | $ | 2,039 | $ | 2,800 | $ | 2,678 | $ | 2,661 | ||||||||||
Add back impairments, store closing and other costs | 479 | 288 | 87 | 88 | 5 | |||||||||||||||
Add back settlement charges | 98 | — | — | — | — | |||||||||||||||
Add back depreciation and amortization | 1,058 | 1,061 | 1,036 | 1,020 | 1,049 | |||||||||||||||
Add back rent expense, net | ||||||||||||||||||||
Real estate | 319 | 301 | 279 | 268 | 258 | |||||||||||||||
Personal property | 11 | 12 | 12 | 11 | 11 | |||||||||||||||
Deferred rent amortization | 9 | 8 | 7 | 8 | 7 | |||||||||||||||
Adjusted operating income | $ | 3,289 | $ | 3,709 | $ | 4,221 | $ | 4,073 | $ | 3,991 | ||||||||||
Property and equipment - net | $ | 7,317 | $ | 7,708 | $ | 7,865 | $ | 8,063 | $ | 8,308 | ||||||||||
Add back accumulated depreciation and amortization | 5,088 | 5,457 | 5,830 | 6,007 | 5,967 | |||||||||||||||
Add capitalized value of non-capitalized leases | 2,712 | 2,568 | 2,384 | 2,296 | 2,208 | |||||||||||||||
Add (deduct) other selected assets and liabilities: | ||||||||||||||||||||
Receivables | 411 | 338 | 336 | 339 | 322 | |||||||||||||||
Merchandise inventories | 6,012 | 6,226 | 6,155 | 6,065 | 5,754 | |||||||||||||||
Prepaid expenses and other current assets | 456 | 453 | 443 | 398 | 390 | |||||||||||||||
Other assets | 881 | 775 | 784 | 659 | 579 | |||||||||||||||
Merchandise accounts payable | (2,182 | ) | (2,366 | ) | (2,472 | ) | (2,520 | ) | (2,362 | ) | ||||||||||
Accounts payable and accrued liabilities | (2,924 | ) | (2,677 | ) | (2,511 | ) | (2,328 | ) | (2,333 | ) | ||||||||||
Total average invested capital | $ | 17,771 | $ | 18,482 | $ | 18,814 | $ | 18,979 | $ | 18,833 | ||||||||||
ROIC | 18.5 | % | 20.1 | % | 22.4 | % | 21.5 | % | 21.2 | % |
2016 | 2015 | 2014 | ||||||||||||||||||||||
Amount | % to Sales | Amount | % to Sales | Amount | % to Sales | |||||||||||||||||||
(dollars in millions, except per share figures) | ||||||||||||||||||||||||
Net sales | $ | 25,778 | $ | 27,079 | $ | 28,105 | ||||||||||||||||||
Increase (decrease) in sales | (4.8 | ) | % | (3.7 | ) | % | 0.6 | % | ||||||||||||||||
Increase (decrease) in comparable sales | (3.5 | ) | % | (3.0 | ) | % | 0.7 | % | ||||||||||||||||
Cost of sales | (15,621 | ) | (60.6 | ) | % | (16,496 | ) | (60.9 | ) | % | (16,863 | ) | (60.0 | ) | % | |||||||||
Gross margin | 10,157 | 39.4 | % | 10,583 | 39.1 | % | 11,242 | 40.0 | % | |||||||||||||||
Selling, general and administrative expenses | (8,265 | ) | (32.0 | ) | % | (8,256 | ) | (30.5 | ) | % | (8,355 | ) | (29.7 | ) | % | |||||||||
Impairments, store closing and other costs | (479 | ) | (1.9 | ) | % | (288 | ) | (1.1 | ) | % | (87 | ) | (0.3 | ) | % | |||||||||
Settlement charges | (98 | ) | (0.4 | ) | % | — | — | % | — | — | % | |||||||||||||
Operating income | 1,315 | 5.1 | % | 2,039 | 7.5 | % | 2,800 | 10.0 | % | |||||||||||||||
Interest expense - net | (363 | ) | (361 | ) | (393 | ) | ||||||||||||||||||
Premium on early retirement of debt | — | — | (17 | ) | ||||||||||||||||||||
Income before income taxes | 952 | 1,678 | 2,390 | |||||||||||||||||||||
Federal, state and local income tax expense | (341 | ) | (608 | ) | (864 | ) | ||||||||||||||||||
Net income | 611 | 1,070 | 1,526 | |||||||||||||||||||||
Net loss attributable to noncontrolling interest | 8 | 2 | — | |||||||||||||||||||||
Net income attributable to Macy's, Inc. shareholders | $ | 619 | 2.0 | % | % | $ | 1,072 | 4.0 | % | $ | 1,526 | 5.4 | % | |||||||||||
Diluted earnings per share attributable to Macy's, Inc. shareholders | $ | 1.99 | $ | 3.22 | $ | 4.22 | ||||||||||||||||||
Supplemental Non-GAAP Financial Measures | ||||||||||||||||||||||||
Increase (decrease) in comparable sales on an owned plus licensed basis | (2.9 | ) | % | (2.5 | ) | % | 1.4 | % | ||||||||||||||||
Operating income, excluding certain items | $ | 1,892 | 7.3 | % | $ | 2,327 | 8.6 | % | $ | 2,887 | 10.3 | % | ||||||||||||
Diluted earnings per share attributable to Macy's, Inc. shareholders, excluding certain items | $ | 3.11 | $ | 3.77 | $ | 4.40 | ||||||||||||||||||
Adjusted EBITDA as a percent to net sales | 11.4 | % | 12.5 | % | 14.0 | % | ||||||||||||||||||
ROIC | 18.5 | % | 20.1 | % | 22.4 | % | ||||||||||||||||||
See pages 20 to 23 for a reconciliation of these non-GAAP financial measures to their most comparable GAAP financial measure and for other important information. | ||||||||||||||||||||||||
Store information (at year-end): | ||||||||||||||||||||||||
Stores operated | 829 | 868 | 823 | |||||||||||||||||||||
Square footage (in millions) | 130.2 | 141.9 | 147.4 |
January 28, 2023 | |||||
(in millions) | |||||
ASSETS | |||||
Current Assets | $ | 1,154 | |||
Noncurrent Assets | 8,261 | ||||
LIABILITIES | |||||
Current Liabilities | $ | 1,958 | |||
Noncurrent Liabilities (a) | 12,517 |
2022 | |||||
(in millions) | |||||
Net Sales | $ | 1,012 | |||
Consignment commission income (a) | 3,807 | ||||
Cost of sales | (488) | ||||
Operating loss | (894) | ||||
Loss before income taxes (b) | (135) | ||||
Net loss | 16 |
2022 | 2021 | 2020 | |||||||||
Net cash provided by operating activities | $ | 1,615 | $ | 2,712 | $ | 649 | |||||
Net cash used by investing activities | (1,169) | (370) | (325) | ||||||||
Net cash provided (used) by financing activities | (1,296) | (2,381) | 699 |
Moody's | Standard & Poor's | Fitch | |||||||||||||||
Long-term debt | Ba1 | BB+ | BBB- | ||||||||||||||
Outlook | Stable | Stable | Stable |
January 28, 2023 | |||||
(in millions) | |||||
ASSETS | |||||
Current Assets | $ | 1,154 | |||
Noncurrent Assets | 8,261 | ||||
LIABILITIES | |||||
Current Liabilities | $ | 1,958 | |||
Noncurrent Liabilities (a) | 12,517 |
2022 | |||||
(in millions) | |||||
Net Sales | $ | 1,012 | |||
Consignment commission income (a) | 3,807 | ||||
Cost of sales | (488) | ||||
Operating loss | (894) | ||||
Loss before income taxes (b) | (135) | ||||
Net loss | 16 |
Obligations Due, by Period | |||||||||||||||||||
Total | Less than 1 Year | 1 – 3 Years | 3 – 5 Years | More than 5 Years | |||||||||||||||
(millions) | |||||||||||||||||||
Short-term debt | $ | 308 | $ | 308 | $ | — | $ | — | $ | — | |||||||||
Long-term debt | 6,459 | — | 48 | 1,092 | 5,319 | ||||||||||||||
Interest on debt | 4,162 | 342 | 658 | 631 | 2,531 | ||||||||||||||
Capital lease obligations | 52 | 3 | 6 | 6 | 37 | ||||||||||||||
Operating leases | 3,683 | 321 | 587 | 486 | 2,289 | ||||||||||||||
Letters of credit | 30 | 30 | — | — | — | ||||||||||||||
Other obligations | 4,325 | 2,744 | 470 | 279 | 832 | ||||||||||||||
$ | 19,019 | $ | 3,748 | $ | 1,769 | $ | 2,494 | $ | 11,008 |
Macy's, Inc. | 52 Weeks Ended January 28, 2023 vs. 52 Weeks Ended January 29, 2022 | 52 Weeks Ended January 29, 2022 vs. 52 Weeks Ended January 30, 2021 | 52 Weeks Ended January 30, 2021 vs. 52 Weeks Ended February 1, 2020 | ||||||||||||||
Increase (decrease) in comparable sales on an owned basis (Note 1) | 0.3 | % | 43.0 | % | (27.9) | % | |||||||||||
Impact of growth in comparable sales of departments licensed to third parties (Note 2) | 0.3 | % | (0.1) | % | — | % | |||||||||||
Increase (decrease) in comparable sales on an owned plus licensed basis | 0.6 | % | 42.9 | % | (27.9) | % |
2022 | 2021 | 2020 | |||||||||||||||||||||||||||||||||
Net Income | Diluted Earnings Per Share | Net Income | Diluted Earnings Per Share | Net Income (Loss) | Diluted Earnings (Loss) Per Share | ||||||||||||||||||||||||||||||
(millions, except per share data) | |||||||||||||||||||||||||||||||||||
As reported | $ | 1,177 | $ | 4.19 | $ | 1,430 | $ | 4.55 | $ | (3,944) | $ | (12.68) | |||||||||||||||||||||||
Impairment, restructuring and other costs | 41 | 0.15 | 30 | 0.10 | 3,579 | 11.50 | |||||||||||||||||||||||||||||
Settlement charges | 39 | 0.14 | 96 | 0.31 | 84 | 0.27 | |||||||||||||||||||||||||||||
Losses on early retirement of debt | 31 | 0.11 | 199 | 0.63 | — | — | |||||||||||||||||||||||||||||
Financing costs | — | — | — | — | 5 | 0.02 | |||||||||||||||||||||||||||||
Income tax impact of certain items identified above | (29) | (0.11) | (87) | (0.28) | (412) | (1.32) | |||||||||||||||||||||||||||||
As adjusted | $ | 1,259 | $ | 4.48 | $ | 1,668 | $ | 5.31 | $ | (688) | $ | (2.21) |
2022 | 2021 | 2020 | |||||||||||||||
(millions) | |||||||||||||||||
Net income (loss) | $ | 1,177 | $ | 1,430 | $ | (3,944) | |||||||||||
Interest expense - net | 162 | 255 | 280 | ||||||||||||||
Losses on early retirement of debt | 31 | 199 | — | ||||||||||||||
Financing costs | — | — | 5 | ||||||||||||||
Federal, state and local income tax expense (benefit) | 341 | 436 | (846) | ||||||||||||||
Depreciation and amortization | 857 | 874 | 959 | ||||||||||||||
EBITDA | $ | 2,568 | $ | 3,194 | $ | (3,546) | |||||||||||
Impairment, restructuring and other costs | 41 | 30 | 3,579 | ||||||||||||||
Settlement charges | 39 | 96 | 84 | ||||||||||||||
Adjusted EBITDA | $ | 2,648 | $ | 3,320 | $ | 117 |
Page | |||||
Consolidated Statements of Comprehensive Income (Loss) for the fiscal years ended January 28, | |||||
Consolidated Statements of Changes in Shareholders’ Equity for the fiscal years ended January 28, | |||||
Consolidated Statements of Cash Flows for the fiscal years ended January 28, | |||||
Name | Age | Director Since | Principal Occupation | |||
Francis S. Blake | 67 | 2015 | Former Chairman and Chief Executive Officer of The Home Depot, Inc. | |||
John A. Bryant | 51 | 2015 | Chairman of the Board of Kellogg Company since July 2014 and President and Chief Executive Officer since January 2011. | |||
Deirdre P. Connelly | 56 | 2008 | Former President, North American Pharmaceuticals of GlaxoSmithKline, a global pharmaceutical company. | |||
Leslie D. Hale | 44 | 2015 | Chief Operating Officer since 2016, Chief Financial Officer since 2007 and Executive Vice President since 2013 of RLJ Lodging Trust, a publicly-traded lodging real estate investment trust. | |||
William H. Lenehan | 40 | 2016 | President and Chief Executive Officer of Four Corners Property Trust, Inc., a real estate investment trust, since August 2015. | |||
Sara Levinson | 66 | 1997 | Co-Founder and Director of Katapult, a digital entertainment company making products for today's creative generation, since April 2013. | |||
Joyce M. Roché | 70 | 2006 | Former President and Chief Executive Officer of Girls Incorporated, a national non-profit research, education and advocacy organization. | |||
Paul C. Varga | 53 | 2012 | Chairman of Brown-Forman Corporation, a spirits and wine company, since August 2007 and Chief Executive Officer since 2005. | |||
Marna C. Whittington | 69 | 1993 | Former Chief Executive Officer of Allianz Global Investors Capital, a diversified global investment firm. | |||
Annie Young-Scrivner | 48 | 2014 | Executive Vice President of Starbucks Corporation since September 2009, with responsibility for global loyalty and digital development since September 2015. |
2016 | 2015 | 2014 | |||||||||
Net sales | $ | 25,778 | $ | 27,079 | $ | 28,105 | |||||
Cost of sales | (15,621 | ) | (16,496 | ) | (16,863 | ) | |||||
Gross margin | 10,157 | 10,583 | 11,242 | ||||||||
Selling, general and administrative expenses | (8,265 | ) | (8,256 | ) | (8,355 | ) | |||||
Impairments, store closing and other costs | (479 | ) | (288 | ) | (87 | ) | |||||
Settlement charges | (98 | ) | — | — | |||||||
Operating income | 1,315 | 2,039 | 2,800 | ||||||||
Interest expense | (367 | ) | (363 | ) | (395 | ) | |||||
Premium on early retirement of debt | — | — | (17 | ) | |||||||
Interest income | 4 | 2 | 2 | ||||||||
Income before income taxes | 952 | 1,678 | 2,390 | ||||||||
Federal, state and local income tax expense | (341 | ) | (608 | ) | (864 | ) | |||||
Net income | 611 | 1,070 | 1,526 | ||||||||
Net loss attributable to noncontrolling interest | 8 | 2 | — | ||||||||
Net income attributable to Macy's, Inc. shareholders | $ | 619 | $ | 1,072 | $ | 1,526 | |||||
Basic earnings per share attributable to Macy's, Inc. shareholders | $ | 2.01 | $ | 3.26 | $ | 4.30 | |||||
Diluted earnings per share attributable to Macy's, Inc. shareholders | $ | 1.99 | $ | 3.22 | $ | 4.22 |
2016 | 2015 | 2014 | |||||||||
Net income | $ | 611 | $ | 1,070 | $ | 1,526 | |||||
Other comprehensive income (loss), net of taxes: | |||||||||||
Actuarial gain (loss) and prior service cost on post employment and postretirement benefit plans, net of tax effect of $42 million and $269 million | 65 | — | (422 | ) | |||||||
Reclassifications to net income: | |||||||||||
Net actuarial loss on post employment and postretirement benefit plans, net of tax effect of $14 million, $19 million and $10 million | 22 | 29 | 15 | ||||||||
Settlement charges, net of tax effect of $38 million | 60 | — | — | ||||||||
Total other comprehensive income (loss) | 147 | 29 | (407 | ) | |||||||
Comprehensive income | 758 | 1,099 | 1,119 | ||||||||
Comprehensive loss attributable to noncontrolling interest | 8 | 2 | — | ||||||||
Comprehensive income attributable to Macy's, Inc. shareholders | $ | 766 | $ | 1,101 | $ | 1,119 |
MACY’S, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (millions, except per share data) |
2022 | 2021 | 2020 | |||||||||||||||
Net sales | $ | 24,442 | $ | 24,460 | $ | 17,346 | |||||||||||
Credit card revenues, net | 863 | 832 | 751 | ||||||||||||||
Cost of sales | (15,306) | (14,956) | (12,286) | ||||||||||||||
Selling, general and administrative expenses | (8,317) | (8,047) | (6,767) | ||||||||||||||
Gains on sale of real estate | 89 | 91 | 60 | ||||||||||||||
Restructuring, impairment, store closing and other costs | (41) | (30) | (3,579) | ||||||||||||||
Operating income (loss) | 1,730 | 2,350 | (4,475) | ||||||||||||||
Benefit plan income, net | 20 | 66 | 54 | ||||||||||||||
Settlement charges | (39) | (96) | (84) | ||||||||||||||
Interest expense | (175) | (256) | (284) | ||||||||||||||
Financing costs | — | — | (5) | ||||||||||||||
Losses on early retirement of debt | (31) | (199) | — | ||||||||||||||
Interest income | 13 | 1 | 4 | ||||||||||||||
Income (loss) before income taxes | 1,518 | 1,866 | (4,790) | ||||||||||||||
Federal, state and local income tax benefit (expense) | (341) | (436) | 846 | ||||||||||||||
Net income (loss) | $ | 1,177 | $ | 1,430 | $ | (3,944) | |||||||||||
Basic earnings (loss) per share | $ | 4.28 | $ | 4.66 | $ | (12.68) | |||||||||||
Diluted earnings (loss) per share | $ | 4.19 | $ | 4.55 | $ | (12.68) |
January 28, 2017 | January 30, 2016 | ||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 1,297 | $ | 1,109 | |||
Receivables | 522 | 558 | |||||
Merchandise inventories | 5,399 | 5,506 | |||||
Prepaid expenses and other current assets | 408 | 479 | |||||
Total Current Assets | 7,626 | 7,652 | |||||
Property and Equipment – net | 7,017 | 7,616 | |||||
Goodwill | 3,897 | 3,897 | |||||
Other Intangible Assets – net | 498 | 514 | |||||
Other Assets | 813 | 897 | |||||
Total Assets | $ | 19,851 | $ | 20,576 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Current Liabilities: | |||||||
Short-term debt | $ | 309 | $ | 642 | |||
Merchandise accounts payable | 1,423 | 1,526 | |||||
Accounts payable and accrued liabilities | 3,563 | 3,333 | |||||
Income taxes | 352 | 227 | |||||
Total Current Liabilities | 5,647 | 5,728 | |||||
Long-Term Debt | 6,562 | 6,995 | |||||
Deferred Income Taxes | 1,443 | 1,477 | |||||
Other Liabilities | 1,877 | 2,123 | |||||
Shareholders’ Equity: | |||||||
Common stock (304.1 and 310.3 shares outstanding) | 3 | 3 | |||||
Additional paid-in capital | 617 | 621 | |||||
Accumulated equity | 6,088 | 6,334 | |||||
Treasury stock | (1,489 | ) | (1,665 | ) | |||
Accumulated other comprehensive loss | (896 | ) | (1,043 | ) | |||
Total Macy's, Inc. Shareholders’ Equity | 4,323 | 4,250 | |||||
Noncontrolling interest | (1 | ) | 3 | ||||
Total Shareholders' Equity | 4,322 | 4,253 | |||||
Total Liabilities and Shareholders’ Equity | $ | 19,851 | $ | 20,576 |
MACY’S, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (millions) |
2022 | 2021 | 2020 | |||||||||||||||
Net income (loss) | $ | 1,177 | $ | 1,430 | $ | (3,944) | |||||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||||
Net actuarial gain (loss) and prior service credit on post employment and postretirement benefit plans, net of tax effect of $(12) million, $23 million and $37 million | (38) | 69 | 107 | ||||||||||||||
Reclassifications to net income (loss): | |||||||||||||||||
Net actuarial loss and prior service cost on post employment and postretirement benefit plans, net of tax effect of $4 million, $9 million and $12 million | 13 | 25 | 35 | ||||||||||||||
Settlement charges, net of tax effect of $10 million, $24 million and $22 million | 29 | 72 | 62 | ||||||||||||||
Total other comprehensive income | 4 | 166 | 204 | ||||||||||||||
Comprehensive income (loss) | $ | 1,181 | $ | 1,596 | $ | (3,740) |
Common Stock | Additional Paid-In Capital | Accumulated Equity | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total Macy's, Inc. Shareholders’ Equity | Non-controlling Interest | Total Shareholders' Equity | ||||||||||||||||||||||||
Balance at February 1, 2014 | $ | 4 | $ | 2,522 | $ | 6,235 | $ | (1,847 | ) | $ | (665 | ) | $ | 6,249 | $ | — | $ | 6,249 | |||||||||||||
Net income | 1,526 | 1,526 | 1,526 | ||||||||||||||||||||||||||||
Other comprehensive income | (407 | ) | (407 | ) | (407 | ) | |||||||||||||||||||||||||
Common stock dividends ($1.1875 per share) | (421 | ) | (421 | ) | (421 | ) | |||||||||||||||||||||||||
Stock repurchases | (1,901 | ) | (1,901 | ) | (1,901 | ) | |||||||||||||||||||||||||
Stock-based compensation expense | 72 | 72 | 72 | ||||||||||||||||||||||||||||
Stock issued under stock plans | (66 | ) | 324 | 258 | 258 | ||||||||||||||||||||||||||
Retirement of common stock | (1,480 | ) | 1,480 | — | — | ||||||||||||||||||||||||||
Deferred compensation plan distributions | 2 | 2 | 2 | ||||||||||||||||||||||||||||
Balance at January 31, 2015 | 4 | 1,048 | 7,340 | (1,942 | ) | (1,072 | ) | 5,378 | — | 5,378 | |||||||||||||||||||||
Net income (loss) | 1,072 | 1,072 | (2 | ) | 1,070 | ||||||||||||||||||||||||||
Other comprehensive loss | 29 | 29 | 29 | ||||||||||||||||||||||||||||
Common stock dividends ($1.3925 per share) | (456 | ) | (456 | ) | (456 | ) | |||||||||||||||||||||||||
Stock repurchases | (2,001 | ) | (2,001 | ) | (2,001 | ) | |||||||||||||||||||||||||
Stock-based compensation expense | 64 | 64 | 64 | ||||||||||||||||||||||||||||
Stock issued under stock plans | (64 | ) | 226 | 162 | 162 | ||||||||||||||||||||||||||
Retirement of common stock | (1 | ) | (427 | ) | (1,622 | ) | 2,050 | — | — | ||||||||||||||||||||||
Deferred compensation plan distributions | 2 | 2 | 2 | ||||||||||||||||||||||||||||
Macy's China Limited | — | 5 | 5 | ||||||||||||||||||||||||||||
Balance at January 30, 2016 | 3 | 621 | 6,334 | (1,665 | ) | (1,043 | ) | 4,250 | 3 | 4,253 | |||||||||||||||||||||
Net income (loss) | 619 | 619 | (8 | ) | 611 | ||||||||||||||||||||||||||
Other comprehensive income | 147 | 147 | 147 | ||||||||||||||||||||||||||||
Common stock dividends ($1.4925 per share) | (459 | ) | (459 | ) | (459 | ) | |||||||||||||||||||||||||
Stock repurchases | (316 | ) | (316 | ) | (316 | ) | |||||||||||||||||||||||||
Stock-based compensation expense | 60 | 60 | 60 | ||||||||||||||||||||||||||||
Stock issued under stock plans | (64 | ) | 81 | 17 | 17 | ||||||||||||||||||||||||||
Retirement of common stock | (406 | ) | 406 | — | — | ||||||||||||||||||||||||||
Deferred compensation plan distributions | 5 | 5 | 5 | ||||||||||||||||||||||||||||
Macy's China Limited | — | 4 | 4 | ||||||||||||||||||||||||||||
Balance at January 28, 2017 | $ | 3 | $ | 617 | $ | 6,088 | $ | (1,489 | ) | $ | (896 | ) | $ | 4,323 | $ | (1 | ) | $ | 4,322 |
MACY’S, INC. CONSOLIDATED BALANCE SHEETS (millions) |
January 28, 2023 | January 29, 2022 | ||||||||||
ASSETS | |||||||||||
Current Assets: | |||||||||||
Cash and cash equivalents | $ | 862 | $ | 1,712 | |||||||
Receivables | 300 | 297 | |||||||||
Merchandise inventories | 4,267 | 4,383 | |||||||||
Prepaid expenses and other current assets | 424 | 366 | |||||||||
Total Current Assets | 5,853 | 6,758 | |||||||||
Property and Equipment – net | 5,913 | 5,665 | |||||||||
Right of Use Assets | 2,683 | 2,808 | |||||||||
Goodwill | 828 | 828 | |||||||||
Other Intangible Assets – net | 432 | 435 | |||||||||
Other Assets | 1,157 | 1,096 | |||||||||
Total Assets | $ | 16,866 | $ | 17,590 | |||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
Current Liabilities: | |||||||||||
Merchandise accounts payable | $ | 2,053 | $ | 2,222 | |||||||
Accounts payable and accrued liabilities | 2,750 | 3,086 | |||||||||
Income taxes | 58 | 108 | |||||||||
Total Current Liabilities | 4,861 | 5,416 | |||||||||
Long-Term Debt | 2,996 | 3,295 | |||||||||
Long-Term Lease Liabilities | 2,963 | 3,098 | |||||||||
Deferred Income Taxes | 947 | 983 | |||||||||
Other Liabilities | 1,017 | 1,177 | |||||||||
Shareholders’ Equity: | |||||||||||
Common stock (271.3 and 292.4 shares outstanding) | 3 | 3 | |||||||||
Additional paid-in capital | 467 | 517 | |||||||||
Accumulated equity | 6,268 | 5,268 | |||||||||
Treasury stock | (2,038) | (1,545) | |||||||||
Accumulated other comprehensive loss | (618) | (622) | |||||||||
Total Shareholders' Equity | 4,082 | 3,621 | |||||||||
Total Liabilities and Shareholders’ Equity | $ | 16,866 | $ | 17,590 |
MACY’S, INC. CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (millions) |
Common Stock | Additional Paid-In Capital | Accumulated Equity | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||
Balance at February 1, 2020 | $ | 3 | $ | 621 | $ | 7,989 | $ | (1,241) | $ | (995) | $ | 6,377 | |||||||||||||||||||||||
Net loss | (3,944) | (3,944) | |||||||||||||||||||||||||||||||||
Other comprehensive income | 204 | 204 | |||||||||||||||||||||||||||||||||
Common stock dividends ($0.3775 per share) | (117) | (117) | |||||||||||||||||||||||||||||||||
Stock-based compensation expense | 31 | 31 | |||||||||||||||||||||||||||||||||
Stock issued under stock plans | (81) | 80 | (1) | ||||||||||||||||||||||||||||||||
Other | 3 | 3 | |||||||||||||||||||||||||||||||||
Balance at January 30, 2021 | 3 | 571 | 3,928 | (1,161) | (788) | 2,553 | |||||||||||||||||||||||||||||
Net income | 1,430 | 1,430 | |||||||||||||||||||||||||||||||||
Other comprehensive income | 166 | 166 | |||||||||||||||||||||||||||||||||
Common stock dividends ($0.30 per share) | (90) | (90) | |||||||||||||||||||||||||||||||||
Stock repurchases | (500) | (500) | |||||||||||||||||||||||||||||||||
Stock-based compensation expense | 55 | 55 | |||||||||||||||||||||||||||||||||
Stock issued under stock plans | (109) | 116 | 7 | ||||||||||||||||||||||||||||||||
Balance at January 29, 2022 | 3 | 517 | 5,268 | (1,545) | (622) | 3,621 | |||||||||||||||||||||||||||||
Net income | 1,177 | 1,177 | |||||||||||||||||||||||||||||||||
Other comprehensive income | 4 | 4 | |||||||||||||||||||||||||||||||||
Common stock dividends ($0.63 per share) | 4 | (177) | (173) | ||||||||||||||||||||||||||||||||
Stock repurchases | (601) | (601) | |||||||||||||||||||||||||||||||||
Stock-based compensation expense | 54 | 54 | |||||||||||||||||||||||||||||||||
Stock issued under stock plans | (108) | 108 | — | ||||||||||||||||||||||||||||||||
Balance at January 28, 2023 | $ | 3 | $ | 467 | $ | 6,268 | $ | (2,038) | $ | (618) | $ | 4,082 |
2016 | 2015 | 2014 | |||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | 611 | $ | 1,070 | $ | 1,526 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Impairments, store closing and other costs | 479 | 288 | 87 | ||||||||
Settlement charges | 98 | — | — | ||||||||
Depreciation and amortization | 1,058 | 1,061 | 1,036 | ||||||||
Stock-based compensation expense | 61 | 65 | 73 | ||||||||
Gains on sale of real estate | (209 | ) | (212 | ) | (92 | ) | |||||
Amortization of financing costs and premium on acquired debt | (14 | ) | (14 | ) | (5 | ) | |||||
Changes in assets and liabilities: | |||||||||||
(Increase) decrease in receivables | (1 | ) | (45 | ) | 22 | ||||||
(Increase) decrease in merchandise inventories | 107 | (60 | ) | 44 | |||||||
Increase in prepaid expenses and other current assets | (8 | ) | — | (3 | ) | ||||||
Increase in other assets not separately identified | — | (1 | ) | (61 | ) | ||||||
Decrease in merchandise accounts payable | (132 | ) | (78 | ) | (21 | ) | |||||
Increase (decrease) in accounts payable, accrued liabilities and other items not separately identified | (162 | ) | 68 | 129 | |||||||
Increase (decrease) in current income taxes | 125 | (69 | ) | (65 | ) | ||||||
Increase (decrease) in deferred income taxes | (139 | ) | (1 | ) | 29 | ||||||
Increase (decrease) in other liabilities not separately identified | (73 | ) | (88 | ) | 10 | ||||||
Net cash provided by operating activities | 1,801 | 1,984 | 2,709 | ||||||||
Cash flows from investing activities: | |||||||||||
Purchase of property and equipment | (596 | ) | (777 | ) | (770 | ) | |||||
Capitalized software | (316 | ) | (336 | ) | (298 | ) | |||||
Acquisition of Bluemercury, Inc., net of cash acquired | — | (212 | ) | — | |||||||
Disposition of property and equipment | 673 | 204 | 172 | ||||||||
Other, net | 52 | 29 | (74 | ) | |||||||
Net cash used by investing activities | (187 | ) | (1,092 | ) | (970 | ) | |||||
Cash flows from financing activities: | |||||||||||
Debt issued | 2 | 499 | 1,044 | ||||||||
Financing costs | (3 | ) | (4 | ) | (9 | ) | |||||
Debt repaid | (751 | ) | (152 | ) | (870 | ) | |||||
Dividends paid | (459 | ) | (456 | ) | (421 | ) | |||||
Increase (decrease) in outstanding checks | 61 | (83 | ) | 133 | |||||||
Acquisition of treasury stock | (316 | ) | (2,001 | ) | (1,901 | ) | |||||
Issuance of common stock | 36 | 163 | 258 | ||||||||
Proceeds from noncontrolling interest | 4 | 5 | — | ||||||||
Net cash used by financing activities | (1,426 | ) | (2,029 | ) | (1,766 | ) | |||||
Net increase (decrease) in cash and cash equivalents | 188 | (1,137 | ) | (27 | ) | ||||||
Cash and cash equivalents beginning of period | 1,109 | 2,246 | 2,273 | ||||||||
Cash and cash equivalents end of period | $ | 1,297 | $ | 1,109 | $ | 2,246 | |||||
Supplemental cash flow information: | |||||||||||
Interest paid | $ | 396 | $ | 383 | $ | 413 | |||||
Interest received | 4 | 2 | 2 | ||||||||
Income taxes paid (net of refunds received) | 352 | 635 | 834 |
MACY’S, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (millions) |
2022 | 2021 | 2020 | |||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net income (loss) | $ | 1,177 | $ | 1,430 | $ | (3,944) | |||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||||||||
Impairment, restructuring and other costs | 41 | 30 | 3,579 | ||||||||||||||
Settlement charges | 39 | 96 | 84 | ||||||||||||||
Depreciation and amortization | 857 | 874 | 959 | ||||||||||||||
Benefit plans | 17 | 34 | 47 | ||||||||||||||
Stock-based compensation expense | 54 | 55 | 31 | ||||||||||||||
Gains on sale of real estate | (89) | (91) | (60) | ||||||||||||||
Deferred income taxes | (38) | 19 | (327) | ||||||||||||||
Amortization of financing costs and premium on acquired debt | 11 | 70 | 18 | ||||||||||||||
Changes in assets and liabilities: | |||||||||||||||||
(Increase) decrease in receivables | (3) | (21) | 132 | ||||||||||||||
(Increase) decrease in merchandise inventories | 116 | (610) | 1,406 | ||||||||||||||
(Increase) decrease in prepaid expenses and other current assets | (66) | (39) | 51 | ||||||||||||||
Increase (decrease) in merchandise accounts payable | (129) | 218 | 237 | ||||||||||||||
Increase (decrease) in accounts payable and accrued liabilities | (174) | 245 | (759) | ||||||||||||||
Increase (decrease) in current income taxes | (75) | 588 | (617) | ||||||||||||||
Change in other assets and liabilities | (123) | (186) | (188) | ||||||||||||||
Net cash provided by operating activities | 1,615 | 2,712 | 649 | ||||||||||||||
Cash flows from investing activities: | |||||||||||||||||
Purchase of property and equipment | (888) | (354) | (338) | ||||||||||||||
Capitalized software | (407) | (243) | (128) | ||||||||||||||
Disposition of property and equipment | 137 | 164 | 113 | ||||||||||||||
Other, net | (11) | 63 | 28 | ||||||||||||||
Net cash used by investing activities | (1,169) | (370) | (325) | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||||
Debt issued | 2,809 | 1,085 | 2,780 | ||||||||||||||
Debt issuance costs | (21) | (9) | (95) | ||||||||||||||
Debt repaid | (3,100) | (2,699) | (2,042) | ||||||||||||||
Debt repurchase premium and expenses | (29) | (152) | (7) | ||||||||||||||
Dividends paid | (173) | (90) | (117) | ||||||||||||||
Increase (decrease) in outstanding checks | (181) | (23) | 181 | ||||||||||||||
Acquisition of treasury stock | (601) | (500) | (1) | ||||||||||||||
Issuance of common stock | — | 7 | — | ||||||||||||||
Net cash provided (used) by financing activities | (1,296) | (2,381) | 699 | ||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | (850) | (39) | 1,023 | ||||||||||||||
Cash, cash equivalents and restricted cash beginning of period | 1,715 | 1,754 | 731 | ||||||||||||||
Cash, cash equivalents and restricted cash end of period | $ | 865 | $ | 1,715 | $ | 1,754 | |||||||||||
Supplemental cash flow information: | |||||||||||||||||
Interest paid | $ | 188 | $ | 442 | $ | 257 | |||||||||||
Interest received | 9 | 1 | 5 | ||||||||||||||
Income taxes paid (received), net | 455 | (171) | 98 | ||||||||||||||
Restricted cash, end of period | 3 | 3 | 75 |
MACY’S, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
2016 | 2015 | 2014 | ||||||
Women’s Accessories, Intimate Apparel, Shoes, Cosmetics and Fragrances | 38 | % | 38 | % | 38 | % | ||
Women’s Apparel | 23 | 23 | 23 | |||||
Men’s and Children’s | 23 | 23 | 23 | |||||
Home/Miscellaneous | 16 | 16 | 16 | |||||
100 | % | 100 | % | 100 | % |
2016 | 2015 | 2014 | 2022 | 2021 | 2020 | |||||||||||||||||||||||
(millions) | (millions) | |||||||||||||||||||||||||||
Gross advertising and promotional costs | $ | 1,547 | $ | 1,587 | $ | 1,602 | Gross advertising and promotional costs | $ | 1,265 | $ | 1,267 | $ | 907 | |||||||||||||||
Cooperative advertising allowances | 394 | 414 | 425 | Cooperative advertising allowances | 102 | 90 | 89 | |||||||||||||||||||||
Advertising and promotional costs, net of cooperative advertising allowances | $ | 1,153 | $ | 1,173 | $ | 1,177 | Advertising and promotional costs, net of cooperative advertising allowances | $ | 1,163 | $ | 1,177 | $ | 818 | |||||||||||||||
Net sales | $ | 25,778 | $ | 27,079 | $ | 28,105 | Net sales | $ | 24,442 | $ | 24,460 | $ | 17,346 | |||||||||||||||
Advertising and promotional costs, net of cooperative advertising allowances, as a percent to net sales | 4.5 | % | 4.3 | % | 4.2 | % | Advertising and promotional costs, net of cooperative advertising allowances, as a percent to net sales | 4.8 | % | 4.8 | % | 4.7 | % |
2016 | 2015 | 2014 | |||||||||
(millions) | |||||||||||
Asset Impairments | $ | 265 | $ | 148 | $ | 33 | |||||
Severance | 168 | 123 | 46 | ||||||||
Other | 46 | 17 | 8 | ||||||||
$ | 479 | $ | 288 | $ | 87 |
Net sales by family of business | 2022 | 2021 | 2020 | ||||||||||||||
(millions) | |||||||||||||||||
Women’s Accessories, Shoes, Cosmetics and Fragrances | $ | 9,597 | $ | 9,385 | $ | 6,667 | |||||||||||
Women’s Apparel | 5,349 | 5,174 | 3,454 | ||||||||||||||
Men’s and Kids’ | 5,297 | 5,247 | 3,477 | ||||||||||||||
Home/Other (a) | 4,199 | 4,654 | 3,748 | ||||||||||||||
Total | $ | 24,442 | $ | 24,460 | $ | 17,346 |
2022 | 2021 | 2020 | |||||||||||||||
(millions) | |||||||||||||||||
Balance, beginning of year | $ | 481 | $ | 616 | $ | 839 | |||||||||||
Liabilities issued but not redeemed (a) | 324 | 394 | 262 | ||||||||||||||
Revenue recognized from beginning liability | (406) | (529) | (485) | ||||||||||||||
Balance, end of year | $ | 399 | $ | 481 | $ | 616 |
2022 | 2021 | 2020 | |||||||||||||||
(millions) | |||||||||||||||||
Asset Impairments | $ | 15 | $ | 6 | $ | 3,280 | |||||||||||
Restructuring | 5 | 3 | 224 | ||||||||||||||
Other | 21 | 21 | 75 | ||||||||||||||
$ | 41 | $ | 30 | $ | 3,579 |
Severance and other benefits | Professional fees and other related charges | Total | |||||||||||||||
(millions) | |||||||||||||||||
Balance at February 1, 2020 | $ | 115 | $ | 9 | $ | 124 | |||||||||||
Additions charged to expense | 55 | 17 | 72 | ||||||||||||||
Cash payments | (156) | (24) | (180) | ||||||||||||||
Balance at January 30, 2021 | 14 | 2 | 16 | ||||||||||||||
Additions charged to expense | 5 | — | 5 | ||||||||||||||
Cash payments | (18) | (2) | (20) | ||||||||||||||
Balance at January 29, 2022 | 1 | — | 1 | ||||||||||||||
Additions charged to expense | — | — | — | ||||||||||||||
Cash payments | (1) | — | (1) | ||||||||||||||
Balance at January 28, 2023 | $ | — | $ | — | $ | — |
4. Properties and Leases |
January 28, 2017 | January 30, 2016 | ||||||
(millions) | |||||||
Land | $ | 1,541 | $ | 1,629 | |||
Buildings on owned land | 4,212 | 4,690 | |||||
Buildings on leased land and leasehold improvements | 1,545 | 1,672 | |||||
Fixtures and equipment | 4,541 | 4,910 | |||||
Leased properties under capitalized leases | 34 | 34 | |||||
11,873 | 12,935 | ||||||
Less accumulated depreciation and amortization | 4,856 | 5,319 | |||||
$ | 7,017 | $ | 7,616 |
January 28, 2023 | January 29, 2022 | ||||||||||
(millions) | |||||||||||
Land | $ | 1,334 | $ | 1,353 | |||||||
Buildings on owned land | 3,691 | 3,635 | |||||||||
Buildings on leased land and leasehold improvements | 1,368 | 1,303 | |||||||||
Fixtures and equipment | 4,153 | 3,922 | |||||||||
10,546 | 10,213 | ||||||||||
Less accumulated depreciation and amortization | 4,633 | 4,548 | |||||||||
$ | 5,913 | $ | 5,665 |
Classification | January 28, 2023 | January 29, 2022 | ||||||||||||||||||
(millions) | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Finance lease assets (a) | Right of Use Assets | $ | 9 | $ | 10 | |||||||||||||||
Operating lease assets (b) | Right of Use Assets | 2,674 | 2,798 | |||||||||||||||||
Total lease assets | $ | 2,683 | $ | 2,808 | ||||||||||||||||
Liabilities | ||||||||||||||||||||
Current | ||||||||||||||||||||
Finance (a) | Accounts payable and accrued liabilities | $ | 2 | $ | 2 | |||||||||||||||
Operating (b) | Accounts payable and accrued liabilities | 333 | 328 | |||||||||||||||||
Noncurrent | ||||||||||||||||||||
Finance (a) | Long-Term Lease Liabilities | 15 | 17 | |||||||||||||||||
Operating (b) | Long-Term Lease Liabilities | 2,948 | 3,081 | |||||||||||||||||
Total lease liabilities | $ | 3,298 | $ | 3,428 |
Capitalized Leases | Operating Leases | Total | |||||||||
(millions) | |||||||||||
Fiscal year | |||||||||||
2017 | $ | 3 | $ | 321 | $ | 324 | |||||
2018 | 3 | 304 | 307 | ||||||||
2019 | 3 | 283 | 286 | ||||||||
2020 | 3 | 249 | 252 | ||||||||
2021 | 3 | 237 | 240 | ||||||||
After 2021 | 37 | 2,289 | 2,326 | ||||||||
Total minimum lease payments | 52 | $ | 3,683 | $ | 3,735 | ||||||
Less amount representing interest | 24 | ||||||||||
Present value of net minimum capitalized lease payments | $ | 28 |
(a) | Finance lease assets are recorded net of accumulated amortization of $13 million as of January 28, 2023 and January 29, 2022. As of both January 28, 2023 and January 29, 2022, finance lease assets included $1 million, and noncurrent lease liabilities included $2 million of non-lease components. |
(b) | As of January 28, 2023, operating lease assets included $370 million of non-lease components and current and noncurrent lease liabilities included $36 million and $384 million, respectively, of non-lease components. As of January 29, 2022, operating lease assets included $377 million of non-lease components and current and noncurrent lease liabilities included $36 million and $386 million, respectively, of non-lease components. |
2022 | 2021 | 2020 | |||||||||||||||
(millions) | |||||||||||||||||
Real estate | |||||||||||||||||
Operating leases (c) – | |||||||||||||||||
Minimum rents | $ | 361 | $ | 359 | $ | 376 | |||||||||||
Variable rents | 54 | 48 | 45 | ||||||||||||||
415 | 407 | 421 | |||||||||||||||
Less income from subleases – | |||||||||||||||||
Operating leases (d) | (39) | (1) | (1) | ||||||||||||||
$ | 376 | $ | 406 | $ | 420 | ||||||||||||
Personal property – Operating leases | $ | 7 | $ | 7 | $ | 7 |
(c) | Certain supply chain operating lease expense amounts are included in cost of sales. | ||||
(d) | Represents sublease income from certain corporate office locations. |
Finance Leases | Operating Leases (e and f) | Total | |||||||||||||||
(millions) | |||||||||||||||||
Fiscal year | |||||||||||||||||
2023 | $ | 3 | $ | 340 | $ | 343 | |||||||||||
2024 | 3 | 375 | 378 | ||||||||||||||
2025 | 3 | 371 | 374 | ||||||||||||||
2026 | 2 | 355 | 357 | ||||||||||||||
2027 | 2 | 340 | 342 | ||||||||||||||
After 2027 | 11 | 5,051 | 5,062 | ||||||||||||||
Total undiscounted lease payments | 24 | 6,832 | 6,856 | ||||||||||||||
Less amount representing interest | 7 | 3,551 | 3,558 | ||||||||||||||
Total lease liabilities | $ | 17 | $ | 3,281 | $ | 3,298 |
(e) | Operating lease payments include $2,872 million related to options to extend lease terms that are reasonably certain of being exercised and exclude $292 million of legally binding minimum lease payments for leases signed but not yet commenced. |
(f) | Operating lease payments include $1,090 million related to non-lease component payments, with $827 million of such payments related to options to extend lease terms that are reasonably certain of being exercised. |
Lease Term and Discount Rate | January 28, 2023 | January 29, 2022 | ||||||||||||
Weighted-average remaining lease term (years) | ||||||||||||||
Finance leases | 11.5 | 11.9 | ||||||||||||
Operating leases | 21.3 | 21.7 | ||||||||||||
Weighted-average discount rate | ||||||||||||||
Finance leases | 6.74 | % | 6.73 | % | ||||||||||
Operating leases | 6.58 | % | 6.54 | % |
Other Information | 52 Weeks Ended January 28, 2023 | 52 Weeks Ended January 29, 2022 | ||||||||||||
(millions) | ||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||
Operating cash flows used from operating leases | $ | 364 | $ | 322 | ||||||||||
Financing cash flows used from financing leases | 3 | 3 | ||||||||||||
Leased assets obtained in exchange for new operating lease liabilities | 79 | 15 |
2016 | 2015 | 2014 | |||||||||
(millions) | |||||||||||
Real estate (excluding executory costs) | |||||||||||
Capitalized leases – | |||||||||||
Contingent rentals | $ | — | $ | — | $ | — | |||||
Operating leases – | |||||||||||
Minimum rentals | 312 | 288 | 265 | ||||||||
Contingent rentals | 12 | 19 | 22 | ||||||||
324 | 307 | 287 | |||||||||
Less income from subleases – | |||||||||||
Operating leases | (5 | ) | (6 | ) | (8 | ) | |||||
$ | 319 | $ | 301 | $ | 279 | ||||||
Personal property – Operating leases | $ | 11 | $ | 12 | $ | 12 |
January 28, 2023 | January 29, 2022 | ||||||||||
(millions) | |||||||||||
Non-amortizing intangible assets | |||||||||||
Goodwill | $ | 9,290 | $ | 9,290 | |||||||
Accumulated impairment losses | (8,462) | (8,462) | |||||||||
828 | 828 | ||||||||||
Tradenames | 403 | 403 | |||||||||
$ | 1,231 | $ | 1,231 | ||||||||
Amortizing intangible assets | |||||||||||
Favorable leases and other contractual assets | $ | 5 | $ | 5 | |||||||
Tradenames | 43 | 43 | |||||||||
48 | 48 | ||||||||||
Accumulated amortization | |||||||||||
Favorable leases and other contractual assets | (1) | (1) | |||||||||
Tradenames | (18) | (15) | |||||||||
(19) | (16) | ||||||||||
$ | 29 | $ | 32 | ||||||||
Capitalized software | |||||||||||
Gross balance | $ | 1,095 | $ | 1,010 | |||||||
Accumulated amortization | (429) | (499) | |||||||||
$ | 666 | $ | 511 |
January 28, 2017 | January 30, 2016 | ||||||
(millions) | |||||||
Non-amortizing intangible assets | |||||||
Goodwill | $ | 9,279 | $ | 9,279 | |||
Accumulated impairment losses | (5,382 | ) | (5,382 | ) | |||
3,897 | 3,897 | ||||||
Tradenames | 403 | 414 | |||||
$ | 4,300 | $ | 4,311 | ||||
Amortizing intangible assets | |||||||
Favorable leases and other contractual assets | $ | 141 | $ | 149 | |||
Tradenames | 43 | 43 | |||||
184 | 192 | ||||||
Accumulated amortization | |||||||
Favorable leases and other contractual assets | (85 | ) | (90 | ) | |||
Tradenames | (4 | ) | (2 | ) | |||
(89 | ) | (92 | ) | ||||
$ | 95 | $ | 100 |
(millions) | |||
Fiscal year | |||
2017 | $ | 10 | |
2018 | 10 | ||
2019 | 9 | ||
2020 | 8 | ||
2021 | 6 |
Amortizing intangible assets | Capitalized Software | ||||||||||
(millions) | |||||||||||
Fiscal year | |||||||||||
2023 | $ | 2 | $ | 223 | |||||||
2024 | 2 | 177 | |||||||||
2025 | 2 | 137 | |||||||||
2026 | 2 | 57 | |||||||||
2027 | 2 | — |
January 28, 2017 | January 30, 2016 | ||||||
(millions) | |||||||
Short-term debt: | |||||||
7.45% Senior debentures due 2017 | $ | 300 | $ | — | |||
5.9% Senior notes due 2016 | — | 577 | |||||
7.45% Senior debentures due 2016 | — | 59 | |||||
Capital lease and current portion of other long-term obligations | 9 | 6 | |||||
$ | 309 | $ | 642 | ||||
Long-term debt: | |||||||
2.875% Senior notes due 2023 | $ | 750 | $ | 750 | |||
3.875% Senior notes due 2022 | 550 | 550 | |||||
4.5% Senior notes due 2034 | 550 | 550 | |||||
3.45% Senior notes due 2021 | 500 | 500 | |||||
3.625% Senior notes due 2024 | 500 | 500 | |||||
6.375% Senior notes due 2037 | 500 | 500 | |||||
4.375% Senior notes due 2023 | 400 | 400 | |||||
6.9% Senior debentures due 2029 | 400 | 400 | |||||
6.7% Senior debentures due 2034 | 400 | 400 | |||||
7.45% Senior debentures due 2017 | — | 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 | |||||
5.125% Senior debentures due 2042 | 250 | 250 | |||||
4.3% Senior notes due 2043 | 250 | 250 | |||||
6.7% Senior debentures due 2028 | 200 | 200 | |||||
6.79% Senior debentures due 2027 | 165 | 165 | |||||
7.875% Senior debentures due 2036 | — | 108 | |||||
8.75% Senior debentures due 2029 | 61 | 61 | |||||
8.5% Senior debentures due 2019 | 36 | 36 | |||||
10.25% Senior debentures due 2021 | 33 | 33 | |||||
7.6% Senior debentures due 2025 | 24 | 24 | |||||
7.875% Senior debentures due 2030 | 18 | 18 | |||||
9.5% amortizing debentures due 2021 | 14 | 17 | |||||
9.75% amortizing debentures due 2021 | 8 | 9 | |||||
Unamortized debt issue costs | (29 | ) | (32 | ) | |||
Unamortized debt discount | (16 | ) | (16 | ) | |||
Premium on acquired debt, using an effective interest yield of 5.542% to 6.021% | 121 | 143 | |||||
Capital lease and other long-term obligations | 27 | 29 | |||||
$ | 6,562 | $ | 6,995 |
January 28, 2023 | January 29, 2022 | ||||||||||
(millions) | |||||||||||
Long-term debt: | |||||||||||
5.875% Senior notes due 2029 | $ | 500 | $ | 500 | |||||||
5.875% Senior notes due 2030 | 425 | — | |||||||||
6.125% Senior notes due 2032 | 425 | — | |||||||||
4.5% Senior notes due 2034 | 367 | 367 | |||||||||
5.125% Senior notes due 2042 | 250 | 250 | |||||||||
4.3% Senior notes due 2043 | 250 | 250 | |||||||||
6.375% Senior notes due 2037 | 192 | 192 | |||||||||
6.7% Senior exchanged debentures due 2034 | 181 | 183 | |||||||||
7.0% Senior debentures due 2028 | 105 | 105 | |||||||||
6.9% Senior debentures due 2029 | 79 | 79 | |||||||||
6.7% Senior exchanged debentures due 2028 | 73 | 74 | |||||||||
6.79% Senior debentures due 2027 | 71 | 71 | |||||||||
6.7% Senior debentures due 2028 | 29 | 29 | |||||||||
6.7% Senior debentures due 2034 | 18 | 18 | |||||||||
8.75% Senior exchanged debentures due 2029 | 13 | 13 | |||||||||
6.9% Senior debentures due 2032 | 12 | 12 | |||||||||
7.6% Senior debentures due 2025 | 6 | 6 | |||||||||
7.875% Senior exchanged debentures due 2030 | 5 | 5 | |||||||||
7.875% Senior debentures due 2030 | 5 | 5 | |||||||||
6.9% Senior exchanged debentures due 2032 | 1 | 5 | |||||||||
2.875% Senior notes due 2023 | — | 504 | |||||||||
3.625% Senior notes due 2024 | — | 350 | |||||||||
4.375% Senior notes due 2023 | — | 161 | |||||||||
6.65% Senior exchanged debentures due 2024 | — | 81 | |||||||||
6.65% Senior debentures due 2024 | — | 36 | |||||||||
Unamortized debt issue costs and discount | (28) | (22) | |||||||||
Premium on acquired debt, using an effective interest yield of 5.76% to 6.021% | 17 | 21 | |||||||||
$ | 2,996 | $ | 3,295 |
2022 | 2021 | 2020 | |||||||||||||||
(millions) | |||||||||||||||||
Interest on debt | $ | 185 | $ | 246 | $ | 273 | |||||||||||
Amortization of debt premium | (2) | (3) | (4) | ||||||||||||||
Amortization of financing costs and debt discount | 13 | 26 | 23 | ||||||||||||||
Interest on finance leases | 1 | 1 | 1 | ||||||||||||||
197 | 270 | 293 | |||||||||||||||
Less interest capitalized on construction | 22 | 14 | 9 | ||||||||||||||
Interest expense | $ | 175 | $ | 256 | $ | 284 | |||||||||||
Losses on early retirement of debt | $ | 31 | $ | 199 | $ | — |
2016 | 2015 | 2014 | |||||||||
(millions) | |||||||||||
Interest on debt | $ | 392 | $ | 393 | $ | 411 | |||||
Amortization of debt premium | (22 | ) | (21 | ) | (12 | ) | |||||
Amortization of financing costs and debt discount | 5 | 6 | 7 | ||||||||
Interest on capitalized leases | 2 | 2 | 2 | ||||||||
377 | 380 | 408 | |||||||||
Less interest capitalized on construction | 10 | 17 | 13 | ||||||||
Interest expense | $ | 367 | $ | 363 | $ | 395 | |||||
Premium on early retirement of debt | $ | — | $ | — | $ | 17 |
(millions) | |||
Fiscal year | |||
2018 | $ | 6 | |
2019 | 42 | ||
2020 | 539 | ||
2021 | 553 | ||
2022 | — | ||
After 2022 | 5,319 |
2016 | 2015 | 2014 | |||||||||
(millions) | |||||||||||
5.9% Senior notes due 2016 | $ | 577 | $ | — | $ | — | |||||
7.875% Senior notes due 2036 | 108 | — | — | ||||||||
7.45% Senior debentures due 2016 | 59 | — | — | ||||||||
7.5% Senior debentures due 2015 | — | 69 | — | ||||||||
8.125% Senior debentures due 2035 | — | 76 | — | ||||||||
5.75% Senior notes due 2014 | — | — | 453 | ||||||||
7.875% Senior debentures due 2015 | — | — | 407 | ||||||||
9.5% amortizing debentures due 2021 | 4 | 4 | 4 | ||||||||
9.75% amortizing debentures due 2021 | 2 | 3 | 2 | ||||||||
Capital leases and other obligations | 1 | — | 4 | ||||||||
$ | 751 | $ | 152 | $ | 870 |
(millions) | |||||
Fiscal year | |||||
2024 | $ | — | |||
2025 | 6 | ||||
2026 | — | ||||
2027 | 71 | ||||
2028 | 207 | ||||
After 2028 | 2,723 |
2022 | 2021 | 2020 | |||||||||||||||
(millions) | |||||||||||||||||
Revolving credit facility | $ | 1,959 | $ | 585 | $ | 1,500 | |||||||||||
2.875% Senior notes due 2023 | 504 | 136 | — | ||||||||||||||
3.625% Senior notes due 2024 | 350 | 150 | — | ||||||||||||||
4.375% Senior notes due 2023 | 161 | 49 | — | ||||||||||||||
6.65% Senior debentures due 2024 | 81 | 5 | — | ||||||||||||||
6.65% Debentures due 2024 | 36 | — | — | ||||||||||||||
6.9% Senior debentures due 2032 | 4 | — | — | ||||||||||||||
6.7% Senior debentures due 2034 | 2 | — | — | ||||||||||||||
6.7% Senior debentures due 2028 | 1 | — | — | ||||||||||||||
8.375% Senior secured notes due 2025 | — | 1,300 | — | ||||||||||||||
3.875% Senior notes due 2022 | — | 450 | — | ||||||||||||||
7.6% Senior debentures due 2025 | — | 18 | — | ||||||||||||||
3.45% Senior notes due 2021 | — | — | 500 | ||||||||||||||
10.25% Senior debentures due 2021 | — | — | 33 | ||||||||||||||
9.5% amortizing debentures due 2021 | — | 2 | 4 | ||||||||||||||
9.75% amortizing debentures due 2021 | — | 1 | 2 | ||||||||||||||
$ | 3,098 | $ | 2,696 | $ | 2,039 |
January 28, 2023 | January 29, 2022 | ||||||||||
(millions) | |||||||||||
Accounts payable | $ | 821 | $ | 1,058 | |||||||
Gift cards and customer rewards | 399 | 481 | |||||||||
Lease related liabilities | 438 | 433 | |||||||||
Accrued wages and vacation | 199 | 290 | |||||||||
Allowance for future sales returns | 236 | 198 | |||||||||
Current portion of post employment and postretirement benefits | 159 | 148 | |||||||||
Taxes other than income taxes | 121 | 141 | |||||||||
Current portion of workers' compensation and general liability reserves | 86 | 92 | |||||||||
Accrued interest | 51 | 44 | |||||||||
Other | 240 | 201 | |||||||||
$ | 2,750 | $ | 3,086 |
January 28, 2017 | January 30, 2016 | ||||||
(millions) | |||||||
Accounts payable | $ | 754 | $ | 814 | |||
Gift cards and customer rewards | 970 | 920 | |||||
Deferred real estate gains | 340 | 104 | |||||
Current portion of post employment and postretirement benefits | 208 | 257 | |||||
Taxes other than income taxes | 166 | 184 | |||||
Lease related liabilities | 174 | 165 | |||||
Accrued wages and vacation | 215 | 153 | |||||
Current portion of workers’ compensation and general liability reserves | 119 | 127 | |||||
Severance and relocation | 166 | 123 | |||||
Allowance for future sales returns | 96 | 112 | |||||
Accrued interest | 74 | 88 | |||||
Other | 281 | 286 | |||||
$ | 3,563 | $ | 3,333 |
2022 | 2021 | 2020 | |||||||||||||||
(millions) | |||||||||||||||||
Balance, beginning of year | $ | 387 | $ | 416 | $ | 462 | |||||||||||
Charged to costs and expenses | 123 | 108 | 88 | ||||||||||||||
Payments, net of recoveries | (132) | (137) | (134) | ||||||||||||||
Balance, end of year | $ | 378 | $ | 387 | $ | 416 |
2016 | 2015 | 2014 | |||||||||
(millions) | |||||||||||
Balance, beginning of year | $ | 508 | $ | 505 | $ | 497 | |||||
Charged to costs and expenses | 145 | 159 | 160 | ||||||||
Payments, net of recoveries | (150 | ) | (156 | ) | (152 | ) | |||||
Balance, end of year | $ | 503 | $ | 508 | $ | 505 |
2022 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Current | Deferred | Total | Current | Deferred | Total | Current | Deferred | Total | |||||||||||||||||||||||||||||||||||||||||||||
(millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Federal | $ | 361 | $ | (56) | $ | 305 | $ | 369 | $ | (21) | $ | 348 | $ | (520) | $ | (179) | $ | (699) | |||||||||||||||||||||||||||||||||||
State and local | 18 | 18 | 36 | 48 | 40 | 88 | 1 | (148) | (147) | ||||||||||||||||||||||||||||||||||||||||||||
$ | 379 | $ | (38) | $ | 341 | $ | 417 | $ | 19 | $ | 436 | $ | (519) | $ | (327) | $ | (846) |
2016 | 2015 | 2014 | |||||||||||||||||||||||||||||||||
Current | Deferred | Total | Current | Deferred | Total | Current | Deferred | Total | |||||||||||||||||||||||||||
(millions) | |||||||||||||||||||||||||||||||||||
Federal | $ | 433 | $ | (125 | ) | $ | 308 | $ | 536 | $ | — | $ | 536 | $ | 743 | $ | 28 | $ | 771 | ||||||||||||||||
State and local | 37 | (4 | ) | 33 | 72 | — | 72 | 92 | 1 | 93 | |||||||||||||||||||||||||
$ | 470 | $ | (129 | ) | $ | 341 | $ | 608 | $ | — | $ | 608 | $ | 835 | $ | 29 | $ | 864 |
2022 | 2021 | 2020 | |||||||||||||||
(millions) | |||||||||||||||||
Expected tax | $ | 319 | $ | 392 | $ | (1,006) | |||||||||||
State and local income taxes, net of federal income taxes (a) | 23 | 84 | (140) | ||||||||||||||
CARES Act carryback benefit | — | (29) | (205) | ||||||||||||||
Goodwill impact | — | — | 492 | ||||||||||||||
Tax impact of equity awards | — | — | 8 | ||||||||||||||
Federal tax credits | (4) | (3) | (5) | ||||||||||||||
Change in valuation allowance | 5 | (15) | 24 | ||||||||||||||
Other | (2) | 7 | (14) | ||||||||||||||
$ | 341 | $ | 436 | $ | (846) |
2016 | 2015 | 2014 | |||||||||
(millions) | |||||||||||
Expected tax | $ | 333 | $ | 587 | $ | 836 | |||||
State and local income taxes, net of federal income tax benefit | 12 | 43 | 59 | ||||||||
Historic rehabilitation tax credit | (1 | ) | (12 | ) | (20 | ) | |||||
Change in valuation allowance | 9 | 3 | 1 | ||||||||
Other | (12 | ) | (13 | ) | (12 | ) | |||||
$ | 341 | $ | 608 | $ | 864 |
(a) | 2022 includes an income tax benefit from the favorable resolution of state income tax litigation. |
January 28, 2023 | January 29, 2022 | ||||||||||
(millions) | |||||||||||
Deferred tax assets | |||||||||||
Post employment and postretirement benefits | $ | 50 | $ | 48 | |||||||
Accrued liabilities accounted for on a cash basis for tax purposes | 112 | 100 | |||||||||
Lease liabilities | 881 | 917 | |||||||||
Unrecognized state tax benefits and accrued interest | 22 | 38 | |||||||||
State operating loss and credit carryforwards | 132 | 152 | |||||||||
Other | 112 | 95 | |||||||||
Valuation allowance | (94) | (89) | |||||||||
Total deferred tax assets | 1,215 | 1,261 | |||||||||
Deferred tax liabilities | |||||||||||
Excess of book basis over tax basis of property and equipment | (872) | (914) | |||||||||
Right of use assets | (717) | (751) | |||||||||
Merchandise inventories | (351) | (300) | |||||||||
Intangible assets | (116) | (116) | |||||||||
Other | (106) | (163) | |||||||||
Total deferred tax liabilities | (2,162) | (2,244) | |||||||||
Net deferred tax liability | $ | (947) | $ | (983) |
January 28, 2017 | January 30, 2016 | ||||||
(millions) | |||||||
Deferred tax assets | |||||||
Post employment and postretirement benefits | $ | 405 | $ | 536 | |||
Accrued liabilities accounted for on a cash basis for tax purposes | 379 | 340 | |||||
Long-term debt | 63 | 73 | |||||
Unrecognized state tax benefits and accrued interest | 76 | 79 | |||||
State operating loss and credit carryforwards | 79 | 82 | |||||
Other | 347 | 206 | |||||
Valuation allowance | (36 | ) | (27 | ) | |||
Total deferred tax assets | 1,313 | 1,289 | |||||
Deferred tax liabilities | |||||||
Excess of book basis over tax basis of property and equipment | (1,381 | ) | (1,485 | ) | |||
Merchandise inventories | (604 | ) | (606 | ) | |||
Intangible assets | (380 | ) | (345 | ) | |||
Other | (391 | ) | (330 | ) | |||
Total deferred tax liabilities | (2,756 | ) | (2,766 | ) | |||
Net deferred tax liability | $ | (1,443 | ) | $ | (1,477 | ) |
January 28, 2023 | January 29, 2022 | January 30, 2021 | |||||||||||||||
(millions) | |||||||||||||||||
Balance, beginning of year | $ | 102 | $ | 113 | $ | 133 | |||||||||||
Additions based on tax positions related to the current year | 13 | 12 | 9 | ||||||||||||||
Reductions for tax positions of prior years | (20) | (11) | (13) | ||||||||||||||
Settlements | (4) | (2) | (4) | ||||||||||||||
Statute expirations | (11) | (10) | (12) | ||||||||||||||
Balance, end of year | $ | 80 | $ | 102 | $ | 113 | |||||||||||
Amounts recognized in the Consolidated Balance Sheets | |||||||||||||||||
Current income taxes | $ | 4 | $ | 14 | $ | 6 | |||||||||||
Deferred income taxes | 1 | 3 | 3 | ||||||||||||||
Other liabilities (b) | 75 | 85 | 104 | ||||||||||||||
$ | 80 | $ | 102 | $ | 113 |
(b) | Unrecognized tax benefits not expected to be settled within one year are included within other liabilities on the Consolidated Balance Sheets. |
January 28, 2017 | January 30, 2016 | January 31, 2015 | |||||||||
(millions) | |||||||||||
Balance, beginning of year | $ | 178 | $ | 172 | $ | 189 | |||||
Additions based on tax positions related to the current year | 16 | 30 | 33 | ||||||||
Additions for tax positions of prior years | — | — | — | ||||||||
Reductions for tax positions of prior years | (12 | ) | (7 | ) | (15 | ) | |||||
Settlements | (4 | ) | (3 | ) | (23 | ) | |||||
Statute expirations | (11 | ) | (14 | ) | (12 | ) | |||||
Balance, end of year | $ | 167 | $ | 178 | $ | 172 | |||||
Amounts recognized in the Consolidated Balance Sheets at January 28, 2017, January 30, 2016 and January 31, 2015 | |||||||||||
Current income taxes | $ | 6 | $ | 12 | $ | 11 | |||||
Long-term deferred income taxes | 4 | 5 | 6 | ||||||||
Other liabilities | 157 | 161 | 155 | ||||||||
$ | 167 | $ | 178 | $ | 172 |
January 28, 2023 | January 29, 2022 | ||||||||||
(millions) | |||||||||||
Amount of unrecognized tax benefits, net of deferred tax assets, that if recognized would affect the effective tax rate | $ | 63 | $ | 81 | |||||||
Accrued federal, state and local interest and penalties | 23 | 65 | |||||||||
Amounts recognized in the Consolidated Balance Sheets | |||||||||||
Current income taxes | 4 | 32 | |||||||||
Other liabilities | 19 | 33 |
2022 | 2021 | 2020 | |||||||||||||||
(millions) | |||||||||||||||||
401(k) Qualified Defined Contribution Plan | $ | 86 | $ | 76 | $ | 68 | |||||||||||
Non-Qualified Defined Contribution Plan | 1 | 1 | 1 | ||||||||||||||
Pension Plan | (42) | (85) | (73) | ||||||||||||||
Supplementary Retirement Plan | 26 | 24 | 26 | ||||||||||||||
Postretirement Obligations | (4) | (4) | (3) | ||||||||||||||
$ | 67 | $ | 12 | $ | 19 |
2016 | 2015 | 2014 | |||||||||
(millions) | |||||||||||
401(k) Qualified Defined Contribution Plan | $ | 94 | $ | 88 | $ | 89 | |||||
Non-Qualified Defined Contribution Plan | 2 | 2 | 2 | ||||||||
Pension Plan | (83 | ) | (54 | ) | (64 | ) | |||||
Supplementary Retirement Plan | 31 | 41 | 38 | ||||||||
$ | 44 | $ | 77 | $ | 65 |
Pension Plan | SERP | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
(millions) | |||||||||||||||||||||||
Change in projected benefit obligation | |||||||||||||||||||||||
Projected benefit obligation, beginning of year | $ | 2,406 | $ | 3,030 | $ | 606 | $ | 673 | |||||||||||||||
Service cost | — | 1 | — | — | |||||||||||||||||||
Interest cost | 68 | 49 | 15 | 11 | |||||||||||||||||||
Actuarial gain | (301) | (172) | (71) | (32) | |||||||||||||||||||
Benefits paid | (194) | (502) | (42) | (46) | |||||||||||||||||||
Projected benefit obligation, end of year | 1,979 | 2,406 | 508 | 606 | |||||||||||||||||||
Changes in plan assets | |||||||||||||||||||||||
Fair value of plan assets, beginning of year | 2,900 | 3,359 | — | — | |||||||||||||||||||
Actual return (loss) on plan assets | (317) | 43 | — | — | |||||||||||||||||||
Company contributions | — | — | 42 | 46 | |||||||||||||||||||
Benefits paid | (194) | (502) | (42) | (46) | |||||||||||||||||||
Fair value of plan assets, end of year | 2,389 | 2,900 | — | — | |||||||||||||||||||
Funded status at end of year | $ | 410 | $ | 494 | $ | (508) | $ | (606) | |||||||||||||||
Amounts recognized in the Consolidated Balance Sheets at January 28, 2023 and January 29, 2022 | |||||||||||||||||||||||
Other assets | $ | 410 | $ | 494 | $ | — | $ | — | |||||||||||||||
Accounts payable and accrued liabilities | — | — | (48) | (47) | |||||||||||||||||||
Other liabilities | — | — | (460) | (559) | |||||||||||||||||||
$ | 410 | $ | 494 | $ | (508) | $ | (606) | ||||||||||||||||
Amounts recognized in accumulated other comprehensive loss at January 28, 2023 and January 29, 2022 | |||||||||||||||||||||||
Net actuarial loss | $ | 704 | $ | 617 | $ | 175 | $ | 257 | |||||||||||||||
Prior service cost | — | — | 5 | 5 | |||||||||||||||||||
$ | 704 | $ | 617 | $ | 180 | $ | 262 |
2016 | 2015 | ||||||
(millions) | |||||||
Change in projected benefit obligation | |||||||
Projected benefit obligation, beginning of year | $ | 3,585 | $ | 3,966 | |||
Service cost | 5 | 6 | |||||
Interest cost | 108 | 137 | |||||
Actuarial (gain) loss | 55 | (282 | ) | ||||
Benefits paid | (284 | ) | (242 | ) | |||
Projected benefit obligation, end of year | 3,469 | 3,585 | |||||
Changes in plan assets | |||||||
Fair value of plan assets, beginning of year | 3,256 | 3,636 | |||||
Actual return on plan assets | 402 | (138 | ) | ||||
Company contributions | — | — | |||||
Benefits paid | (284 | ) | (242 | ) | |||
Fair value of plan assets, end of year | 3,374 | 3,256 | |||||
Funded status at end of year | $ | (95 | ) | $ | (329 | ) | |
Amounts recognized in the Consolidated Balance Sheets at January 28, 2017 and January 30, 2016 | |||||||
Other liabilities | $ | (95 | ) | $ | (329 | ) | |
Amounts recognized in accumulated other comprehensive loss at January 28, 2017 and January 30, 2016 | |||||||
Net actuarial loss | $ | 1,232 | $ | 1,451 |
Pension Plan | SERP | ||||||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2022 | 2021 | 2020 | ||||||||||||||||||||||||||||||
(millions) | |||||||||||||||||||||||||||||||||||
Net Periodic Pension Cost | |||||||||||||||||||||||||||||||||||
Service cost | $ | — | $ | 1 | $ | 4 | $ | — | $ | — | $ | — | |||||||||||||||||||||||
Interest cost | 68 | 49 | 66 | 15 | 11 | 14 | |||||||||||||||||||||||||||||
Expected return on assets | (122) | (161) | (183) | — | — | — | |||||||||||||||||||||||||||||
Amortization of net actuarial loss | 12 | 26 | 40 | 11 | 13 | 12 | |||||||||||||||||||||||||||||
(42) | (85) | (73) | 26 | 24 | 26 | ||||||||||||||||||||||||||||||
Settlement charges | 39 | 96 | 74 | — | — | 10 | |||||||||||||||||||||||||||||
Other Changes in Plan Assets and Projected Benefit Obligation Recognized in Other Comprehensive Loss | |||||||||||||||||||||||||||||||||||
Net actuarial (gain) loss | 138 | (55) | (178) | (71) | (32) | 40 | |||||||||||||||||||||||||||||
Amortization of net actuarial loss | (12) | (26) | (40) | (11) | (13) | (12) | |||||||||||||||||||||||||||||
Settlement charges | (39) | (96) | (74) | — | — | (10) | |||||||||||||||||||||||||||||
87 | (177) | (292) | (82) | (45) | 18 | ||||||||||||||||||||||||||||||
Total recognized | $ | 84 | $ | (166) | $ | (291) | $ | (56) | $ | (21) | $ | 54 |
2016 | 2015 | 2014 | |||||||||
(millions) | |||||||||||
Net Periodic Pension Cost | |||||||||||
Service cost | $ | 5 | $ | 6 | $ | 6 | |||||
Interest cost | 108 | 137 | 151 | ||||||||
Expected return on assets | (227 | ) | (235 | ) | (246 | ) | |||||
Amortization of net actuarial loss | 31 | 38 | 25 | ||||||||
Amortization of prior service credit | — | — | — | ||||||||
(83 | ) | (54 | ) | (64 | ) | ||||||
Settlement charges | 68 | — | — | ||||||||
Other Changes in Plan Assets and Projected Benefit Obligation Recognized in Other Comprehensive Loss | |||||||||||
Net actuarial (gain) loss | (120 | ) | 92 | 491 | |||||||
Amortization of net actuarial loss | (31 | ) | (38 | ) | (25 | ) | |||||
Amortization of prior service credit | — | — | — | ||||||||
Settlement charges | (68 | ) | — | — | |||||||
(219 | ) | 54 | 466 | ||||||||
Total recognized | $ | (234 | ) | $ | — | $ | 402 |
Pension Plan | SERP | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Discount rate | 4.73 | % | 3.06 | % | 4.74 | % | 3.10 | % | |||||||||||||||
Rate of compensation increases | 3.50 | % | 3.50 | % | — | — | |||||||||||||||||
Cash balance plan interest crediting rate | 5.00 | % | 5.00 | % | — | — |
2016 | 2015 | ||||
Discount rate | 4.00 | % | 4.17 | % | |
Rate of compensation increases | 4.10 | % | 4.10 | % |
Pension Plan | SERP | ||||||||||||||||||||||||||||||||||||||||||
2016 | 2015 | 2014 | 2022 | 2021 | 2020 | 2022 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||
Discount rate used to measure service cost | 3.79% - 4.26% | 3.55 | % | 4.50 | % | Discount rate used to measure service cost | 3.35% - 5.76% | 2.69% - 3.07% | 2.35% - 2.96% | — | — | — | |||||||||||||||||||||||||||||||
Discount rate used to measure interest cost | 2.96% - 3.30% | 3.55 | % | 4.50 | % | Discount rate used to measure interest cost | 2.55% - 5.49% | 1.76% - 2.07% | 1.65% - 2.46% | 2.53 | % | 1.74 | % | 1.65% - 2.44% | |||||||||||||||||||||||||||||
Expected long-term return on plan assets | 7.00 | % | 7.00 | % | 7.50 | % | Expected long-term return on plan assets | 4.60 | % | 5.75 | % | 6.25 | % | — | — | — | |||||||||||||||||||||||||||
Rate of compensation increases | 4.10 | % | 4.10 | % | 4.10 | % | Rate of compensation increases | 3.50 | % | 3.45 | % | 3.25 | % | — | — | — | |||||||||||||||||||||||||||
Cash balance plan interest crediting rate | Cash balance plan interest crediting rate | 5.00 | % | 5.00 | % | 5.00 | % | — | — | — |
Fair Value Category | 2022 | 2021 | |||||||||||||||
(millions) | |||||||||||||||||
Short term investments | Level 2 | $ | — | $ | 10 | ||||||||||||
Money market funds | Level 1 | 78 | 206 | ||||||||||||||
Equity securities: | |||||||||||||||||
U.S. pooled funds | Level 1 | 69 | 77 | ||||||||||||||
International pooled funds | Level 1 | 26 | 31 | ||||||||||||||
Fixed income securities: | |||||||||||||||||
U.S. Treasury bonds | Level 2 | 41 | 121 | ||||||||||||||
Other Government bonds | Level 2 | 60 | 74 | ||||||||||||||
Corporate bonds | Level 2 | 1,592 | 1,877 | ||||||||||||||
Mortgage-backed securities | Level 2 | 14 | 10 | ||||||||||||||
Asset-backed securities | Level 2 | — | 1 | ||||||||||||||
Pooled funds | Level 1 | 48 | 72 | ||||||||||||||
Other types of investments: | |||||||||||||||||
Derivatives in a positive position | Level 2 | 11 | 12 | ||||||||||||||
Derivatives in a negative position | Level 2 | (3) | (1) | ||||||||||||||
Pooled funds (a) | 271 | 164 | |||||||||||||||
Real estate (a) | 19 | 32 | |||||||||||||||
Private equity (a) | 133 | 186 | |||||||||||||||
Total | $ | 2,359 | $ | 2,872 |
Fair Value Measurements | |||||||||||||||
Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
(millions) | |||||||||||||||
Short term investments | $ | 14 | $ | — | $ | 14 | $ | — | |||||||
Money market funds | 74 | 74 | — | — | |||||||||||
Equity securities: | |||||||||||||||
U.S. stocks | 309 | 309 | — | — | |||||||||||
U.S. pooled funds (a) | 654 | 446 | — | — | |||||||||||
International pooled funds (a) | 649 | 131 | — | — | |||||||||||
Fixed income securities: | |||||||||||||||
U. S. Treasury bonds | 194 | — | 194 | — | |||||||||||
Other Government bonds | 40 | — | 40 | — | |||||||||||
Agency backed bonds | 24 | — | 24 | — | |||||||||||
Corporate bonds | 453 | — | 453 | — | |||||||||||
Mortgage-backed securities | 85 | — | 85 | — | |||||||||||
Asset-backed securities | 17 | — | 17 | — | |||||||||||
Pooled funds | 461 | 461 | — | — | |||||||||||
Other types of investments: | |||||||||||||||
Real estate (a) | 223 | — | — | — | |||||||||||
Private equity (a) | 186 | — | — | — | |||||||||||
Derivatives in a positive position | 13 | — | 13 | — | |||||||||||
Derivatives in a negative position | (19 | ) | — | (19 | ) | — | |||||||||
Total | $ | 3,377 | $ | 1,421 | $ | 821 | $ | — |
Fair Value Measurements | |||||||||||||||
Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
(millions) | |||||||||||||||
Cash and cash equivalents | $ | 15 | $ | 15 | $ | — | $ | — | |||||||
Short term investments | 36 | — | 36 | — | |||||||||||
Money market funds | 46 | 46 | — | — | |||||||||||
Equity securities: | |||||||||||||||
U.S. stocks | 280 | 280 | — | — | |||||||||||
U.S. pooled funds (a) | 391 | 207 | — | — | |||||||||||
International pooled funds (a) | 575 | 336 | — | — | |||||||||||
Fixed income securities: | |||||||||||||||
U. S. Treasury bonds | 233 | — | 233 | — | |||||||||||
Other Government bonds | 41 | — | 41 | — | |||||||||||
Agency backed bonds | 31 | — | 31 | — | |||||||||||
Corporate bonds | 433 | — | 433 | — | |||||||||||
Mortgage-backed securities | 112 | — | 112 | — | |||||||||||
Asset-backed securities | 28 | — | 28 | — | |||||||||||
Pooled funds | 427 | 427 | — | — | |||||||||||
Other types of investments: | |||||||||||||||
Real estate (a) | 238 | — | — | — | |||||||||||
Hedge funds (a) | 179 | — | — | — | |||||||||||
Private equity (a) | 188 | — | — | — | |||||||||||
Derivatives in a positive position | 15 | — | 15 | — | |||||||||||
Derivatives in a negative position | (22 | ) | — | (22 | ) | — | |||||||||
Total | $ | 3,246 | $ | 1,311 | $ | 907 | $ | — |
Pension Plan | SERP | ||||||||||
(millions) | |||||||||||
Fiscal year | |||||||||||
2023 | $ | 215 | $ | 48 | |||||||
2024 | 192 | 46 | |||||||||
2025 | 187 | 44 | |||||||||
2026 | 180 | 49 | |||||||||
2027 | 171 | 42 | |||||||||
2028-2032 | 725 | 185 |
(millions) | |||
Fiscal year | |||
2017 | $ | 383 | |
2018 | 309 | ||
2019 | 299 | ||
2020 | 286 | ||
2021 | 246 | ||
2022-2026 | 1,113 |
2016 | 2015 | ||||||
(millions) | |||||||
Change in projected benefit obligation | |||||||
Projected benefit obligation, beginning of year | $ | 823 | $ | 920 | |||
Service cost | — | — | |||||
Interest cost | 22 | 31 | |||||
Actuarial (gain) loss | 26 | (70 | ) | ||||
Benefits paid | (124 | ) | (58 | ) | |||
Projected benefit obligation, end of year | 747 | 823 | |||||
Change in plan assets | |||||||
Fair value of plan assets, beginning of year | — | — | |||||
Company contributions | 124 | 58 | |||||
Benefits paid | (124 | ) | (58 | ) | |||
Fair value of plan assets, end of year | — | — | |||||
Funded status at end of year | $ | (747 | ) | $ | (823 | ) | |
Amounts recognized in the Consolidated Balance Sheets at January 28, 2017 and January 30, 2016 | |||||||
Accounts payable and accrued liabilities | $ | (86 | ) | $ | (138 | ) | |
Other liabilities | (661 | ) | (685 | ) | |||
$ | (747 | ) | $ | (823 | ) | ||
Amounts recognized in accumulated other comprehensive loss at January 28, 2017 and January 30, 2016 | |||||||
Net actuarial loss | $ | 248 | $ | 261 | |||
Prior service cost | 8 | 8 | |||||
$ | 256 | $ | 269 |
2016 | 2015 | 2014 | |||||||||
(millions) | |||||||||||
Net Periodic Pension Cost | |||||||||||
Service cost | $ | — | $ | — | $ | — | |||||
Interest cost | 22 | 31 | 33 | ||||||||
Amortization of net actuarial loss | 9 | 10 | 5 | ||||||||
Amortization of prior service credit | — | — | — | ||||||||
31 | 41 | 38 | |||||||||
Settlement charges | 30 | — | — | ||||||||
Other Changes in Plan Assets and Projected Benefit Obligation Recognized in Other Comprehensive Loss | |||||||||||
Net actuarial (gain) loss | 26 | (70 | ) | 170 | |||||||
Prior service cost | — | — | — | ||||||||
Amortization of net actuarial loss | (9 | ) | (10 | ) | (5 | ) | |||||
Amortization of prior service credit | — | — | — | ||||||||
Settlement charges | (30 | ) | — | — | |||||||
(13 | ) | (80 | ) | 165 | |||||||
Total recognized | $ | 48 | $ | (39 | ) | $ | 203 |
2016 | 2015 | ||||
Discount rate | 4.07 | % | 4.23 | % |
2016 | 2015 | 2014 | |||||
Discount rate used to measure interest cost | 2.65% - 3.16% | 3.55 | % | 4.50 | % |
(millions) | |||
Fiscal year | |||
2017 | $ | 86 | |
2018 | 78 | ||
2019 | 46 | ||
2020 | 48 | ||
2021 | 48 | ||
2022-2026 | 228 |
2016 | 2015 | ||||||
(millions) | |||||||
Change in accumulated postretirement benefit obligation | |||||||
Accumulated postretirement benefit obligation, beginning of year | $ | 212 | $ | 243 | |||
Service cost | — | — | |||||
Interest cost | 6 | 8 | |||||
Actuarial gain | (13 | ) | (22 | ) | |||
Medicare Part D subsidy | 1 | 1 | |||||
Benefits paid | (20 | ) | (18 | ) | |||
Accumulated postretirement benefit obligation, end of year | 186 | 212 | |||||
Change in plan assets | |||||||
Fair value of plan assets, beginning of year | — | — | |||||
Company contributions | 20 | 18 | |||||
Benefits paid | (20 | ) | (18 | ) | |||
Fair value of plan assets, end of year | — | — | |||||
Funded status at end of year | $ | (186 | ) | $ | (212 | ) | |
Amounts recognized in the Consolidated Balance Sheets at January 28, 2017 and January 30, 2016 | |||||||
Accounts payable and accrued liabilities | $ | (18 | ) | $ | (20 | ) | |
Other liabilities | (168 | ) | (192 | ) | |||
$ | (186 | ) | $ | (212 | ) | ||
Amounts recognized in accumulated other comprehensive loss at January 28, 2017 and January 30, 2016 | |||||||
Net actuarial gain | $ | (31 | ) | $ | (22 | ) |
2016 | 2015 | 2014 | |||||||||
(millions) | |||||||||||
Net Periodic Postretirement Benefit Cost | |||||||||||
Service cost | $ | — | $ | — | $ | — | |||||
Interest cost | 6 | 8 | 10 | ||||||||
Amortization of net actuarial gain | (4 | ) | — | (5 | ) | ||||||
Amortization of prior service cost | — | — | — | ||||||||
2 | 8 | 5 | |||||||||
Other Changes in Plan Assets and Projected Benefit Obligation Recognized in Other Comprehensive Loss | |||||||||||
Net actuarial (gain) loss | (13 | ) | (22 | ) | 30 | ||||||
Amortization of net actuarial gain | 4 | — | 5 | ||||||||
Amortization of prior service cost | — | — | — | ||||||||
(9 | ) | (22 | ) | 35 | |||||||
Total recognized | $ | (7 | ) | $ | (14 | ) | $ | 40 |
2016 | 2015 | ||||
Discount rate | 3.99 | % | 4.15 | % |
2016 | 2015 | 2014 | ||||||
Discount rate used to measure interest cost | 3.14 | % | 3.55 | % | 4.50 | % |
2016 | 2015 | ||
Health care cost trend rates assumed for next year | 6.15% - 9.75% | 6.25% - 10.0% | |
Rates to which the cost trend rate is assumed to decline (the ultimate trend rate) | 5.0% | 5.0% | |
Year that the rate reaches the ultimate trend rate | 2027 | 2027 |
1 – Percentage Point Increase | 1 – Percentage Point Decrease | ||||||
(millions) | |||||||
Effect on total of service and interest cost | $ | — | $ | — | |||
Effect on accumulated postretirement benefit obligations | $ | 11 | $ | (10 | ) |
Expected Benefit Payments | Expected Federal Subsidy | ||||||
(millions) | |||||||
Fiscal Year | |||||||
2017 | $ | 17 | $ | 1 | |||
2018 | 17 | 1 | |||||
2019 | 16 | 1 | |||||
2020 | 16 | — | |||||
2021 | 15 | — | |||||
2022-2026 | 63 | 1 |
2016 | 2015 | 2014 | 2022 | 2021 | 2020 | |||||||||||||||||||||||
(millions) | (millions) | |||||||||||||||||||||||||||
Stock options | $ | 43 | $ | 52 | $ | 47 | Stock options | $ | 3 | $ | 4 | $ | 8 | |||||||||||||||
Restricted stock units | 18 | 13 | 26 | Restricted stock units | 51 | 51 | 23 | |||||||||||||||||||||
$ | 61 | $ | 65 | $ | 73 | $ | 54 | $ | 55 | $ | 31 |
2022 | 2021 | 2020 | |||||||||||||||
Restricted stock units (performance-based) | $ | 25.32 | $ | 15.80 | $ | 6.24 | |||||||||||
Restricted stock units (time-based) | 24.01 | 17.88 | 6.96 |
2016 | 2015 | 2014 | |||||||||
Weighted average grant date fair value of stock options granted during the period | $ | 12.14 | $ | 20.78 | $ | 19.07 | |||||
Dividend yield | 3.8 | % | 2.7 | % | 2.5 | % | |||||
Expected volatility | 42.7 | % | 43.3 | % | 42.7 | % | |||||
Risk-free interest rate | 1.4 | % | 1.7 | % | 1.5 | % | |||||
Expected life | 5.7 years | 5.7 years | 5.7 years |
Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life | Aggregate Intrinsic Value | |||||||||
(thousands) | (years) | (millions) | ||||||||||
Outstanding, beginning of period | 18,829.8 | $ | 41.92 | |||||||||
Granted | 3,886.8 | $ | 42.97 | |||||||||
Canceled or forfeited | (1,116.6 | ) | $ | 51.33 | ||||||||
Exercised | (1,122.1 | ) | $ | 31.30 | ||||||||
Outstanding, end of period | 20,477.9 | $ | 42.18 | |||||||||
Exercisable, end of period | 12,541.5 | $ | 36.48 | 4.1 | $ | 46 | ||||||
Options expected to vest | 6,657.5 | $ | 51.07 | 8.3 | $ | — |
2016 | 2015 | 2014 | |||||||||
(millions) | |||||||||||
Intrinsic value of options exercised | $ | 12 | $ | 127 | $ | 189 | |||||
Cash received from stock options exercised | 35 | 125 | 200 |
2016 | 2015 | 2014 | |||||||||
Restricted stock units | $ | 40.02 | $ | 62.61 | $ | 59.41 |
Shares | Weighted Average Grant Date Fair Value | ||||||||||
(thousands) | |||||||||||
Nonvested, beginning of period | 9,100 | $ | 10.87 | ||||||||
Granted – performance-based | 627 | 25.32 | |||||||||
Performance adjustment | 336 | (7.30) | |||||||||
Granted – time-based | 2,484 | 24.01 | |||||||||
Forfeited | (496) | 15.13 | |||||||||
Vested | (4,445) | 8.79 | |||||||||
Nonvested, end of period | 7,606 | $ | 16.49 |
Shares | Weighted Average Grant Date Fair Value | |||||
(thousands) | ||||||
Nonvested, beginning of period | 1,497.0 | $ | 57.06 | |||
Granted – performance-based | 575.1 | 43.72 | ||||
Performance adjustment | (237.6 | ) | 59.82 | |||
Granted – time-based | 482.8 | 35.61 | ||||
Forfeited | (250.0 | ) | 32.99 | |||
Vested | (249.0 | ) | 33.70 | |||
Nonvested, end of period | 1,818.3 | $ | 53.29 |
2022 | 2021 | 2020 | |||||||||||||||
(millions, except per share data) | |||||||||||||||||
Total number of shares purchased | 24.0 | 20.5 | — | ||||||||||||||
Average price paid per share | $ | 24.98 | $ | 24.40 | $ | — | |||||||||||
Total investment | $ | 600 | $ | 500 | $ | — |
Treasury Stock | ||||||||||||||
Common Stock Issued | Deferred Compensation Plans | Other | Total | Common Stock Outstanding | ||||||||||
(thousands) | ||||||||||||||
Balance at February 1, 2014 | 410,605.8 | (1,229.2 | ) | (44,441.6 | ) | (45,670.8 | ) | 364,935.0 | ||||||
Stock issued under stock plans | (54.8 | ) | 7,490.6 | 7,435.8 | 7,435.8 | |||||||||
Stock repurchases | ||||||||||||||
Repurchase program | (31,874.9 | ) | (31,874.9 | ) | (31,874.9 | ) | ||||||||
Other | (27.0 | ) | (27.0 | ) | (27.0 | ) | ||||||||
Deferred compensation plan distributions | 104.8 | 104.8 | 104.8 | |||||||||||
Retirement of common stock | (31,000.0 | ) | 31,000.0 | 31,000.0 | — | |||||||||
Balance at January 31, 2015 | 379,605.8 | (1,179.2 | ) | (37,852.9 | ) | (39,032.1 | ) | 340,573.7 | ||||||
Stock issued under stock plans | (60.4 | ) | 4,493.5 | 4,433.1 | 4,433.1 | |||||||||
Stock repurchases | ||||||||||||||
Repurchase program | (34,806.8 | ) | (34,806.8 | ) | (34,806.8 | ) | ||||||||
Other | (12.7 | ) | (12.7 | ) | (12.7 | ) | ||||||||
Deferred compensation plan distributions | 68.8 | 68.8 | 68.8 | |||||||||||
Retirement of common stock | (38,000.0 | ) | 38,000.0 | 38,000.0 | — | |||||||||
Balance at January 30, 2016 | 341,605.8 | (1,170.8 | ) | (30,178.9 | ) | (31,349.7 | ) | 310,256.1 | ||||||
Stock issued under stock plans | (87.0 | ) | 1,611.7 | 1,524.7 | 1,524.7 | |||||||||
Stock repurchases | ||||||||||||||
Repurchase program | (7,874.3 | ) | (7,874.3 | ) | (7,874.3 | ) | ||||||||
Other | (4.6 | ) | (4.6 | ) | (4.6 | ) | ||||||||
Deferred compensation plan distributions | 160.9 | 160.9 | 160.9 | |||||||||||
Retirement of common stock | (8,000.0 | ) | 8,000.0 | 8,000.0 | — | |||||||||
Balance at January 28, 2017 | 333,605.8 | (1,096.9 | ) | (28,446.1 | ) | (29,543.0 | ) | 304,062.8 |
Treasury Stock | |||||||||||||||||||||||||||||
Common Stock Issued | Deferred Compensation Plans | Other | Total | Common Stock Outstanding | |||||||||||||||||||||||||
(thousands) | |||||||||||||||||||||||||||||
Balance at February 1, 2020 | 333,606 | (902) | (23,673) | (24,575) | 309,031 | ||||||||||||||||||||||||
Stock issued under stock plans | (127) | 1,577 | 1,450 | 1,450 | |||||||||||||||||||||||||
Stock repurchases | (79) | (79) | (79) | ||||||||||||||||||||||||||
Deferred compensation plan distributions | 98 | 98 | 98 | ||||||||||||||||||||||||||
Balance at January 30, 2021 | 333,606 | (931) | (22,175) | (23,106) | 310,500 | ||||||||||||||||||||||||
Stock issued under stock plans | (277) | 2,454 | 2,177 | 2,177 | |||||||||||||||||||||||||
Stock repurchases | (20,511) | (20,511) | (20,511) | ||||||||||||||||||||||||||
Deferred compensation plan distributions | 193 | 193 | 193 | ||||||||||||||||||||||||||
Balance at January 29, 2022 | 333,606 | (1,015) | (40,232) | (41,247) | 292,359 | ||||||||||||||||||||||||
Stock issued under stock plans | (117) | 3,001 | 2,884 | 2,884 | |||||||||||||||||||||||||
Stock repurchases | (24,058) | (24,058) | (24,058) | ||||||||||||||||||||||||||
Deferred compensation plan distributions | 165 | 165 | 165 | ||||||||||||||||||||||||||
Balance at January 28, 2023 | 333,606 | (967) | (61,289) | (62,256) | 271,350 |
January 28, 2023 | January 29, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements | ||||||||||||||||||||||||||||||||||||||||||||||
Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||||||||||||||
(millions) | |||||||||||||||||||||||||||||||||||||||||||||||
Marketable equity and debt securities | $ | 35 | $ | 35 | $ | — | $ | — | $ | 39 | $ | 39 | $ | — | $ | — |
January 28, 2017 | January 30, 2016 | ||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements | ||||||||||||||||||||||||||||||
Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||
(millions) | |||||||||||||||||||||||||||||||
Marketable equity and debt securities | $ | 112 | $ | 20 | $ | 92 | $ | — | $ | 132 | $ | 13 | $ | 119 | $ | — |
January 28, 2017 | January 30, 2016 | ||||||||||||||||||||||
Notional Amount | Carrying Amount | Fair Value | Notional Amount | Carrying Amount | Fair Value | ||||||||||||||||||
(millions) | |||||||||||||||||||||||
Long-term debt | $ | 6,459 | $ | 6,535 | $ | 6,438 | $ | 6,871 | $ | 6,966 | $ | 6,756 |
January 28, 2017 | January 30, 2016 | ||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements | ||||||||||||||||||||||||||||||
Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||
(millions) | |||||||||||||||||||||||||||||||
Long-lived assets held and used | $ | 147 | $ | — | $ | — | $ | 147 | $ | 53 | $ | — | $ | — | $ | 53 |
January 28, 2023 | January 29, 2022 | ||||||||||||||||||||||||||||||||||
Notional Amount | Carrying Amount | Fair Value | Notional Amount | Carrying Amount | Fair Value | ||||||||||||||||||||||||||||||
(millions) | |||||||||||||||||||||||||||||||||||
Long-term debt | $ | 3,007 | $ | 2,996 | $ | 2,555 | $ | 3,295 | $ | 3,295 | $ | 3,254 |
2022 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income | Shares | Net Income | Shares | Net Loss | Shares | ||||||||||||||||||||||||||||||||||||||||||||||||
(millions, except per share data) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) and average number of shares outstanding | $ | 1,177 | 273.7 | $ | 1,430 | 305.8 | $ | (3,944) | 310.2 | ||||||||||||||||||||||||||||||||||||||||||||
Shares to be issued under deferred compensation and other plans | 1.0 | 1.0 | 1.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 1,177 | 274.7 | $ | 1,430 | 306.8 | $ | (3,944) | 311.1 | |||||||||||||||||||||||||||||||||||||||||||||
Basic earnings (loss) per share | $ | 4.28 | $ | 4.66 | $ | (12.68) | |||||||||||||||||||||||||||||||||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock options and restricted stock units | 6.4 | 7.2 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 1,177 | 281.1 | $ | 1,430 | 314.0 | $ | (3,944) | 311.1 | |||||||||||||||||||||||||||||||||||||||||||||
Diluted earnings (loss) per share | $ | 4.19 | $ | 4.55 | $ | (12.68) |
2016 | 2015 | 2014 | ||||||||||||||||||||||||||||||
Net Income | Shares | Net Income | Shares | Net Income | Shares | |||||||||||||||||||||||||||
(millions, except per share data) | ||||||||||||||||||||||||||||||||
Net income attributable to Macy's, Inc. shareholders and average number of shares outstanding | $ | 619 | 307.6 | $ | 1,072 | 327.6 | $ | 1,526 | 354.3 | |||||||||||||||||||||||
Shares to be issued under deferred compensation and other plans | 0.9 | 0.8 | 0.9 | |||||||||||||||||||||||||||||
$ | 619 | 308.5 | $ | 1,072 | 328.4 | $ | 1,526 | 355.2 | ||||||||||||||||||||||||
Basic earnings per share attributable to Macy's, Inc. shareholders | $ | 2.01 | $ | 3.26 | $ | 4.30 | ||||||||||||||||||||||||||
Effect of dilutive securities: | ||||||||||||||||||||||||||||||||
Stock options, restricted stock and restricted stock units | 2.3 | 4.6 | 6.5 | |||||||||||||||||||||||||||||
$ | 619 | 310.8 | $ | 1,072 | 333.0 | $ | 1,526 | 361.7 | ||||||||||||||||||||||||
Diluted earnings per share attributable to Macy's, Inc. shareholders | $ | 1.99 | $ | 3.22 | $ | 4.22 |
Name | Age | Director Since | Principal Occupation | |||||||||||||||||
Emilie Arel | 45 | 2022 | President and Chief Executive Officer, Casper Sleep, Inc. | |||||||||||||||||
Francis S. Blake | 73 | 2015 | Former Chairman and Chief Executive Officer of The Home Depot, Inc. | |||||||||||||||||
Torrence N. Boone | 53 | 2019 | Vice President, Global Client Partnerships, Alphabet Inc. | |||||||||||||||||
John A. Bryant | 57 | 2015 | Former Chairman, President and Chief Executive Officer of Kellogg Company | |||||||||||||||||
Ashley Buchanan | 49 | 2021 | Chief Executive Officer of The Michaels Companies, Inc. | |||||||||||||||||
Marie Chandoha | 61 | 2022 | Former President and Chief Executive Officer of Charles Schwab Investment Management. | |||||||||||||||||
Deirdre P. Connelly | 62 | 2008 | Former President, North American Pharmaceuticals of GlaxoSmithKline | |||||||||||||||||
Jill Granoff | 60 | 2022 | Managing Partner of Eurazeo and Chief Executive Officer of Eurazeo’s Brands Division | |||||||||||||||||
Leslie D. Hale | 50 | 2015 | President and Chief Executive Officer of RLJ Lodging Trust | |||||||||||||||||
William H. Lenehan | 46 | 2016 | President and Chief Executive Officer of Four Corners Property Trust, Inc. | |||||||||||||||||
Sara Levinson | 72 | 1997 | Co-Founder and Director of Katapult | |||||||||||||||||
Paul C. Varga | 59 | 2012 | Former Chairman and Chief Executive Officer of Brown- Forman Corporation | |||||||||||||||||
Tracey Zhen | 46 | 2021 | Former President of Zipcar, a subsidiary of Avis Budget Group, Inc. |
Exhibit Number | Description | Document if Incorporated by Reference | ||||||||||||
3.1 | Amended and Restated Certificate of Incorporation | |||||||||||||
3.1.1 | Certificate of Designations of Series A Junior Participating Preferred Stock | |||||||||||||
3.1.2 | Article Seventh of the Amended and Restated Certificate of Incorporation | |||||||||||||
3.2 | Amended and Restated By-Laws | |||||||||||||
4.1 | Indenture, dated as of January 15, 1991, among the Company (as successor to The May Department Stores Company (“May Delaware”)), Macy's Retail Holdings, Inc. (“Macy's Retail”) (f/k/a The May Department Stores Company (NY) or “May New York”) and The Bank of New York Mellon Trust Company, N.A. (“BNY Mellon”, successor to J.P. Morgan Trust Company and as successor to The First National Bank of Chicago), as Trustee (“1991 Indenture”) | Exhibit 4(2) to May New York’s Current Report on Form 8-K filed January 15, 1991 | ||||||||||||
4.1.1 | Guarantee of Securities, dated as of August 30, 2005, by the Company relating to 1991 Indenture | |||||||||||||
4.1.2 | First Supplemental Indenture to 1991 Indenture dated as of May 28, 2020 among Macy’s Retail Holdings, Inc., a Delaware corporation (as successor to Macy’s Retail Holdings, Inc., a New York corporation), Macy’s, Inc. and The Bank of New York Mellon Trust Company, N.A., as Trustee | |||||||||||||
4.1.3 | Second Supplemental Indenture to 1991 Indenture dated as of June 3, 2020 among Macy’s Retail Holdings, LLC, a Delaware limited liability company (as successor to Macy’s Retail Holdings, Inc., a Delaware corporation), Macy’s, Inc. and The Bank of New York Mellon Trust Company, N.A., as Trustee | |||||||||||||
Number | Description | Document if Incorporated by Reference |
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
(millions, except per share data) | |||||||||||||||
2016: | |||||||||||||||
Net sales | $ | 5,771 | $ | 5,866 | $ | 5,626 | $ | 8,515 | |||||||
Cost of sales | (3,516 | ) | (3,468 | ) | (3,386 | ) | (5,251 | ) | |||||||
Gross margin | 2,255 | 2,398 | 2,240 | 3,264 | |||||||||||
Selling, general and administrative expenses | (1,966 | ) | (2,026 | ) | (2,071 | ) | (2,202 | ) | |||||||
Impairments, store closing and other costs | — | (249 | ) | — | (230 | ) | |||||||||
Settlement charges | (13 | ) | (6 | ) | (62 | ) | (17 | ) | |||||||
Net income attributable to Macy's, Inc. shareholders | 116 | 11 | 17 | 475 | |||||||||||
Basic earnings per share attributable to Macy's, Inc. shareholders | .37 | .03 | .05 | 1.56 | |||||||||||
Diluted earnings per share attributable to Macy's, Inc. shareholders | .37 | .03 | .05 | 1.54 | |||||||||||
2015: | |||||||||||||||
Net sales | $ | 6,232 | $ | 6,104 | $ | 5,874 | $ | 8,869 | |||||||
Cost of sales | (3,800 | ) | (3,610 | ) | (3,537 | ) | (5,549 | ) | |||||||
Gross margin | 2,432 | 2,494 | 2,337 | 3,320 | |||||||||||
Selling, general and administrative expenses | (2,023 | ) | (2,058 | ) | (1,968 | ) | (2,207 | ) | |||||||
Impairments, store closing and other costs | — | — | (111 | ) | (177 | ) | |||||||||
Net income attributable to Macy's, Inc. shareholders | 193 | 217 | 118 | 544 | |||||||||||
Basic earnings per share attributable to Macy's, Inc. shareholders | .57 | .65 | .36 | 1.74 | |||||||||||
Diluted earnings per share attributable to Macy's, Inc. shareholders | .56 | .64 | .36 | 1.73 |
Fourth Supplemental Indenture to 1991 Indenture dated as of June 30, 2021 by and among Macy’s Retail Holdings, LLC, Macy’s, Inc. and The Bank of New York Mellon Trust Company, N.A., as Trustee | ||||||||||||||
4.2 | Indenture, dated as of December 15, 1994, between the Company and U.S. Bank National Association (successor to State Street Bank and Trust Company and The First National Bank of Boston), as Trustee (“1994 Indenture”) | Exhibit 4.1 to the Company's Registration Statement on Form S-3 (Registration No. 33-88328) filed January 9, 1995 | ||||||||||||
4.2.1 | Ninth Supplemental Indenture to 1994 Indenture, dated as of July 14, 1997, between the Company and U.S. Bank National Association (successor to State Street Bank and Trust Company and The First National Bank of Boston), as Trustee | |||||||||||||
4.2.2 | Tenth Supplemental Indenture to 1994 Indenture, dated as of August 30, 2005, among the Company, Macy's Retail and U.S. Bank National Association (as successor to State Street Bank and Trust Company and as successor to The First National Bank of Boston), as Trustee | |||||||||||||
4.2.3 | Guarantee of Securities, dated as of August 30, 2005, by the Company relating to 1994 Indenture | |||||||||||||
4.2.4 | Eleventh Supplemental Indenture to 1994 Indenture dated as of May 28, 2020 among Macy’s Retail Holdings, Inc., a Delaware corporation (as successor to Macy’s Retail Holdings, Inc., a New York corporation), Macy’s, Inc. and U.S. Bank National Association, as Trustee | |||||||||||||
4.2.5 | Twelfth Supplemental Indenture to 1994 Indenture dated as of June 3, 2020 among Macy’s Retail Holdings, LLC, a Delaware limited liability company (as successor to Macy’s Retail Holdings, Inc., a Delaware corporation), Macy’s, Inc. and U.S. Bank National Association, as Trustee | |||||||||||||
4.2.6 | Thirteenth Supplemental Indenture to 1994 Indenture dated as of June 24, 2020 among Macy’s Retail Holdings, LLC, an Ohio limited liability company (as successor to Macy’s Retail Holdings, LLC, a Delaware limited liability company), Macy’s, Inc. and U.S. Bank National Association, as Trustee | |||||||||||||
4.3 | Indenture, dated as of June 17, 1996, among the Company (as successor to May Delaware), Macy's Retail (f/k/a May New York) and The Bank of New York Mellon Trust Company, N.A. (“BNY Mellon”, successor to J.P. Morgan Trust Company), as Trustee (“1996 Indenture”) | |||||||||||||
Exhibit Number | Description | Document if Incorporated by Reference | ||||||||||||
4.3.1 | First Supplemental Indenture to 1996 Indenture, dated as of August 30, 2005, by and among the Company (as successor to May Delaware), Macy's Retail (f/k/a May New York) and BNY Mellon (successor to J.P. Morgan Trust Company, National Association), as Trustee | |||||||||||||
4.3.2 | Second Supplemental Indenture to 1996 Indenture dated as of May 28, 2020 among Macy’s Retail Holdings, Inc., a Delaware corporation (as successor to Macy’s Retail Holdings, Inc., a New York corporation), Macy’s, Inc. and The Bank of New York Mellon Trust Company, N.A., as Trustee | |||||||||||||
4.3.3 | Third Supplemental Indenture to 1996 Indenture dated as of June 3, 2020 among Macy’s Retail Holdings, LLC, a Delaware limited liability company (as successor to Macy’s Retail Holdings, Inc., a Delaware corporation), Macy’s, Inc. and The Bank of New York Mellon Trust Company, N.A., as Trustee | |||||||||||||
4.3.4 | Fourth Supplemental Indenture to 1996 Indenture dated as of June 26, 2020 among Macy’s Retail Holdings, LLC, an Ohio limited liability company (as successor to Macy’s Retail Holdings, LLC, a Delaware limited liability company), Macy’s, Inc. and The Bank of New York Mellon Trust Company, N.A., as Trustee | |||||||||||||
4.4 | Indenture, dated as of September 10, 1997, between the Company and U.S. Bank National Association (successor to Citibank, N.A.), as Trustee (“1997 Indenture”) | |||||||||||||
4.4.1 | First Supplemental Indenture to 1997 Indenture, dated as of February 6, 1998, between the Company and U.S. Bank National Association (successor to Citibank, N.A.), as Trustee | |||||||||||||
4.4.2 | Third Supplemental Indenture to 1997 Indenture, dated as of March 24, 1999, between the Company and U.S. Bank National Association (successor to Citibank, N.A.), as Trustee | |||||||||||||
4.4.3 | Seventh Supplemental Indenture to 1997 Indenture, dated as of August 30, 2005 among the Company, Macy's Retail and U.S. Bank National Association (successor to Citibank, N.A.), as Trustee | |||||||||||||
4.4.4 | Guarantee of Securities, dated as of August 30, 2005, by the Company relating to 1997 Indenture | |||||||||||||
4.4.5 | Eighth Supplemental Indenture to 1997 Indenture dated as of May 28, 2020 among Macy’s Retail Holdings, Inc., a Delaware corporation (as successor to Macy’s Retail Holdings, Inc., a New York corporation), Macy’s, Inc. and U.S. Bank National Association, as Trustee | |||||||||||||
4.4.6 | Ninth Supplemental Indenture to 1997 Indenture dated as of June 3, 2020 among Macy’s Retail Holdings, LLC, a Delaware limited liability company (as successor to Macy’s Retail Holdings, Inc., a Delaware corporation), Macy’s, Inc. and U.S. Bank National Association, as Trustee | |||||||||||||
Parent | Subsidiary Issuer | Other Subsidiaries | Consolidating Adjustments | Consolidated | |||||||||||||||
Net sales | $ | — | $ | 10,677 | $ | 23,436 | $ | (8,335 | ) | $ | 25,778 | ||||||||
Cost of sales | — | (6,787 | ) | (17,169 | ) | 8,335 | (15,621 | ) | |||||||||||
Gross margin | — | 3,890 | 6,267 | — | 10,157 | ||||||||||||||
Selling, general and administrative expenses | (2 | ) | (3,739 | ) | (4,524 | ) | — | (8,265 | ) | ||||||||||
Impairments, store closing and other costs | — | (295 | ) | (184 | ) | — | (479 | ) | |||||||||||
Settlement charges | — | (34 | ) | (64 | ) | — | (98 | ) | |||||||||||
Operating income (loss) | (2 | ) | (178 | ) | 1,495 | — | 1,315 | ||||||||||||
Interest (expense) income, net: | |||||||||||||||||||
External | 2 | (366 | ) | 1 | — | (363 | ) | ||||||||||||
Intercompany | — | (200 | ) | 200 | — | — | |||||||||||||
Equity in earnings of subsidiaries | 619 | 255 | — | (874 | ) | — | |||||||||||||
Income (loss) before income taxes | 619 | (489 | ) | 1,696 | (874 | ) | 952 | ||||||||||||
Federal, state and local income tax benefit (expense) | — | 281 | (622 | ) | — | (341 | ) | ||||||||||||
Net income (loss) | 619 | (208 | ) | 1,074 | (874 | ) | 611 | ||||||||||||
Net loss attributable to noncontrolling interest | — | — | 8 | — | 8 | ||||||||||||||
Net income (loss) attributable to Macy's, Inc. shareholders | $ | 619 | $ | (208 | ) | $ | 1,082 | $ | (874 | ) | $ | 619 | |||||||
Comprehensive income (loss) | $ | 766 | $ | (61 | ) | $ | 1,153 | $ | (1,100 | ) | $ | 758 | |||||||
Comprehensive loss attributable to noncontrolling interest | — | — | 8 | — | 8 | ||||||||||||||
Comprehensive income (loss) attributable to Macy's, Inc. shareholders | $ | 766 | $ | (61 | ) | $ | 1,161 | $ | (1,100 | ) | $ | 766 |
Exhibit Number | Description | Document if Incorporated by Reference | ||||||||||||
4.4.7 | Tenth Supplemental Indenture to 1997 Indenture dated as of June 24, 2020 among Macy’s Retail Holdings, LLC, an Ohio limited liability company (as successor to Macy’s Retail Holdings, LLC, a Delaware limited liability company), Macy’s, Inc. and U.S. Bank National Association, as Trustee | |||||||||||||
4.5 | Indenture, dated as of July 20, 2004, among the Company (as successor to May Delaware), Macy's Retail (f/k/a May New York) and BNY Mellon, as Trustee (“2004 Indenture”) | |||||||||||||
4.5.1 | First Supplemental Indenture to 2004 Indenture, dated as of August 30, 2005 among the Company (as successor to May Delaware), Macy's Retail and BNY Mellon (successor to J.P. Morgan Trust Company, National Association), as Trustee | |||||||||||||
4.6 | Indenture, dated as of November 2, 2006, by and among Macy's Retail, the Company and U.S. Bank National Association, as Trustee (“2006 Indenture”) | |||||||||||||
4.6.1 | Third Supplemental Indenture to 2006 Indenture, dated March 12, 2007, among Macy's Retail, the Company and U.S. Bank National Association, as Trustee | |||||||||||||
4.6.2 | Seventh Supplement Indenture to 2006 Indenture dated as of May 28, 2020 among Macy's Retail Holdings, Inc., a Delaware corporation (as successor to Macy's Retail Holdings, Inc., a New York corporation), Macy's, Inc. and U.S. Bank National Association, as Trustee | |||||||||||||
4.6.3 | Eighth Supplemental Indenture to 2006 Indenture dated as of June 3, 2020 among Macy’s Retail Holdings, LLC, a Delaware limited liability company (as successor to Macy’s Retail Holdings, Inc., a Delaware corporation), Macy’s, Inc. and U.S. Bank National Association, as Trustee | |||||||||||||
4.6.4 | Ninth Supplemental Indenture to 2006 Indenture dated as of June 24, 2020 among Macy’s Retail Holdings, LLC, an Ohio limited liability company (as successor to Macy’s Retail Holdings, LLC, a Delaware limited liability company), Macy’s, Inc. and U.S. Bank National Association, as Trustee | |||||||||||||
4.7 | Indenture, dated as of January 13, 2012, among Macy's Retail, the Company and BNY Mellon, as Trustee ("2012 Indenture") | |||||||||||||
4.7.1 | Second Supplemental Trust Indenture to 2012 Indenture, dated as of January 13, 2012, among Macy's Retail, as issuer, the Company, as guarantor, and BNY Mellon, as trustee | |||||||||||||
4.7.2 | Fourth Supplemental Trust Indenture, dated as of November 20, 2012, among Macy's Retail, as issuer, the Company, as guarantor, and BNY Mellon, as trustee | |||||||||||||
Parent | Subsidiary Issuer | Other Subsidiaries | Consolidating Adjustments | Consolidated | |||||||||||||||
Net sales | $ | — | $ | 11,959 | $ | 24,037 | $ | (8,917 | ) | $ | 27,079 | ||||||||
Cost of sales | — | (7,670 | ) | (17,743 | ) | 8,917 | (16,496 | ) | |||||||||||
Gross margin | — | 4,289 | 6,294 | — | 10,583 | ||||||||||||||
Selling, general and administrative expenses | (2 | ) | (3,980 | ) | (4,274 | ) | — | (8,256 | ) | ||||||||||
Impairments, store closing and other costs | — | (170 | ) | (118 | ) | — | (288 | ) | |||||||||||
Operating income (loss) | (2 | ) | 139 | 1,902 | — | 2,039 | |||||||||||||
Interest (expense) income, net: | |||||||||||||||||||
External | 1 | (361 | ) | (1 | ) | — | (361 | ) | |||||||||||
Intercompany | — | (230 | ) | 230 | — | — | |||||||||||||
Equity in earnings of subsidiaries | 1,072 | 421 | — | (1,493 | ) | — | |||||||||||||
Income (loss) before income taxes | 1,071 | (31 | ) | 2,131 | (1,493 | ) | 1,678 | ||||||||||||
Federal, state and local income tax benefit (expense) | 1 | 120 | (729 | ) | — | (608 | ) | ||||||||||||
Net income | 1,072 | 89 | 1,402 | (1,493 | ) | 1,070 | |||||||||||||
Net loss attributable to noncontrolling interest | — | — | 2 | — | 2 | ||||||||||||||
Net income attributable to Macy's, Inc. shareholders | $ | 1,072 | $ | 89 | $ | 1,404 | $ | (1,493 | ) | $ | 1,072 | ||||||||
Comprehensive income | $ | 1,101 | $ | 118 | $ | 1,415 | $ | (1,535 | ) | $ | 1,099 | ||||||||
Comprehensive loss attributable to noncontrolling interest | — | — | 2 | — | 2 | ||||||||||||||
Comprehensive income attributable to Macy's, Inc. shareholders | $ | 1,101 | $ | 118 | $ | 1,417 | $ | (1,535 | ) | $ | 1,101 |
Exhibit Number | Description | Document if Incorporated by Reference | ||||||||||||
4.7.3 | Seventh Supplemental Trust Indenture, dated as of November 18, 2014, among Macy's Retail, as issuer, the Company, as guarantor, and BNY Mellon, as trustee | |||||||||||||
4.7.4 | Eighth Supplemental Indenture to 2012 Indenture dated as of May 28, 2020 among Macy’s Retail Holdings, Inc., a Delaware corporation (as successor to Macy’s Retail Holdings, Inc., a New York corporation), Macy’s, Inc. and The Bank of New York Mellon Trust Company, N.A., as Trustee | |||||||||||||
4.7.5 | Ninth Supplemental Indenture to 2012 Indenture dated as of June 3, 2020 among Macy’s Retail Holdings, LLC, a Delaware limited liability company (as successor to Macy’s Retail Holdings, Inc., a Delaware corporation), Macy’s, Inc. and The Bank of New York Mellon Trust Company, N.A., as Trustee | |||||||||||||
4.7.6 | Tenth Supplemental Indenture to 2012 Indenture dated as of June 26, 2020 among Macy’s Retail Holdings, LLC, an Ohio limited liability company (as successor to Macy’s Retail Holdings, LLC, a Delaware limited liability company), Macy’s, Inc. and The Bank of New York Mellon Trust Company, N.A., as Trustee | |||||||||||||
4.8 | Indenture, dated as of July 28, 2020, among Macy’s Retail Holdings, LLC, as issuer, Macy’s, Inc., as guarantor, and U.S. Bank National Association, as trustee and collateral trustee, relating to Macy’s Retail Holdings, LLC’s 6.65% Senior Secured Debentures due 2024, 6.7% Senior Secured Debentures due 2028, 8.75% Senior Secured Debentures due 2029, 7.875% Senior Secured Debentures due 2030, 6.9% Senior Secured Debentures due 2032 and 6.7% Senior Secured Debentures due 2034 | |||||||||||||
4.8.1 | Form of 6.65% Senior Secured Debentures due 2024, 6.7% Senior Secured Debentures due 2028, 8.75% Senior Secured Debentures due 2029, 7.875% Senior Secured Debentures due 2030, 6.9% Senior Secured Debentures due 2032 and 6.7% Senior Secured Debentures due 2034 | |||||||||||||
4.8.2 | Fifth Supplemental Trust Indenture to 1996 Indenture, dated as of July 10, 2020, among Macy’s Retail Holdings, LLC, as issuer, Macy’s, Inc. as guarantor, and The Bank of New York Mellon Trust Company, N.A., as trustee, relating to Macy’s Retail Holdings, LLC’s 6.65% Senior Debentures due 2024, 6.7% Senior Debentures due 2028, 8.75% Senior Debentures due 2029, 7.875% Senior Debentures due 2030, 6.9% Senior Debentures due 2032 and 6.7% Senior Debentures due 2034 | |||||||||||||
4.9 | Indenture dated as of March 17, 2021 by and among Macy’s Retail Holdings, LLC as issuer, Macy’s, Inc. as guarantor and U.S. Bank National Association as trustee, relating to Macy’s Retail Holdings, LLC���s 5.875% Senior Notes due 2029 | |||||||||||||
Parent | Subsidiary Issuer | Other Subsidiaries | Consolidating Adjustments | Consolidated | |||||||||||||||
Net sales | $ | — | $ | 13,078 | $ | 23,522 | $ | (8,495 | ) | $ | 28,105 | ||||||||
Cost of sales | — | (8,127 | ) | (17,231 | ) | 8,495 | (16,863 | ) | |||||||||||
Gross margin | — | 4,951 | 6,291 | — | 11,242 | ||||||||||||||
Selling, general and administrative expenses | (3 | ) | (4,351 | ) | (4,001 | ) | — | (8,355 | ) | ||||||||||
Impairments, store closing and other costs | — | (45 | ) | (42 | ) | — | (87 | ) | |||||||||||
Operating income (loss) | (3 | ) | 555 | 2,248 | — | 2,800 | |||||||||||||
Interest (expense) income, net: | |||||||||||||||||||
External | 1 | (394 | ) | — | — | (393 | ) | ||||||||||||
Intercompany | — | (230 | ) | 230 | — | — | |||||||||||||
Premium on early retirement of debt | — | (17 | ) | — | — | (17 | ) | ||||||||||||
Equity in earnings of subsidiaries | 1,528 | 624 | — | (2,152 | ) | — | |||||||||||||
Income before income taxes | 1,526 | 538 | 2,478 | (2,152 | ) | 2,390 | |||||||||||||
Federal, state and local income tax benefit (expense) | — | 25 | (889 | ) | — | (864 | ) | ||||||||||||
Net income | 1,526 | 563 | 1,589 | (2,152 | ) | 1,526 | |||||||||||||
Net loss attributable to noncontrolling interest | — | — | — | — | — | ||||||||||||||
Net income attributable to Macy's, Inc. shareholders | $ | 1,526 | $ | 563 | $ | 1,589 | $ | (2,152 | ) | $ | 1,526 | ||||||||
Comprehensive income | $ | 1,119 | $ | 156 | $ | 1,338 | $ | (1,494 | ) | $ | 1,119 | ||||||||
Comprehensive loss attributable to noncontrolling interest | — | — | — | — | — | ||||||||||||||
Comprehensive income attributable to Macy's, Inc. shareholders | $ | 1,119 | $ | 156 | $ | 1,338 | $ | (1,494 | ) | $ | 1,119 |
Exhibit Number | Description | Document if Incorporated by Reference | ||||||||||||
4.10 | Indenture dated as of March 10, 2022 by and among Macy’s Retail Holdings, LLC as issuer, Macy’s, Inc. as guarantor and U.S. Bank Trust Company, National Association as trustee, relating to Macy’s Retail Holdings, LLC’s 5.875% Senior Notes due 2030 | |||||||||||||
4.11 | Indenture dated as of March 10, 2022 by and among Macy’s Retail Holdings, LLC as issuer, Macy’s, Inc. as guarantor and U.S. Bank Trust Company, National Association as trustee, relating to Macy’s Retail Holdings, LLC’s 6.125% Senior Notes due 2032 | |||||||||||||
4.12 | Description of the Company's Securities Registered under Section 12 of the Securities Exchange Act of 1934 | |||||||||||||
10.1 | Credit Agreement, dated as of June 8, 2020, among Macy’s Inventory Funding LLC, as the Borrower, Macy’s Inventory Holdings LLC, as Parent, Bank of America, N.A., as Agent, L/C Issuer and Swing Line Lender, the other lenders party thereto, BofA Securities, Inc., Credit Suisse Loan Funding LLC, JPMorgan Chase Bank, N.A., Fifth Third Bank, National Association, MUFG Union Bank, N.A., PNC Capital Markets LLC and Wells Fargo Bank, National Association, as Joint Lead Arrangers and Joint Bookrunners, Credit Suisse Loan Funding LLC and JPMorgan Chase Bank, N.A., as Co-Syndication Agents and Fifth Third Bank, National Association, MUFG Union Bank, N.A., as Co-Syndication Agents and Fifth Third Bank, National Association, MUFG Union Bank, N.A., PNC Bank, National Association and Wells Fargo Bank, National Association, as Co-Documentation Agents | |||||||||||||
10.1.1 | Third Amendment to Credit Agreement, dated as of March 3, 2022, by and among Macy’s Inventory Funding LLC, Macy’s Inventory Holdings LLC, the lenders party thereto and Bank of America, N.A., as agent, l/c issuer and swing line lender | |||||||||||||
10.2 | Credit Agreement, dated as of May 9, 2019, among the Company, Macy's Retail and Bank of America, N.A., as administrative agent | |||||||||||||
10.1.1 | Amendment No. 1 to Credit Agreement dated as of June 8, 2020 among Macy’s Retail Holdings, LLC, a Delaware limited liability company (f/k/a Macy’s Retail Holdings, Inc.), as Borrower, Macy’s, Inc., a Delaware corporation, as Parent, the Lenders party thereto, and Bank of America, N.A., as Administrative Agent | |||||||||||||
10.4 | Guarantee Agreement, dated as of May 9, 2019, among the Company, Macy's Retail and Bank of America, N.A., as administrative agent | |||||||||||||
10.5 | Tax Sharing Agreement, dated as of October 31, 2014, among Macy's, Inc. and members of the Affiliated Group | |||||||||||||
Parent | Subsidiary Issuer | Other Subsidiaries | Consolidating Adjustments | Consolidated | |||||||||||||||
ASSETS: | |||||||||||||||||||
Current Assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 938 | $ | 81 | $ | 278 | $ | — | $ | 1,297 | |||||||||
Receivables | — | 169 | 353 | — | 522 | ||||||||||||||
Merchandise inventories | — | 2,565 | 2,834 | — | 5,399 | ||||||||||||||
Prepaid expenses and other current assets | — | 84 | 324 | — | 408 | ||||||||||||||
Total Current Assets | 938 | 2,899 | 3,789 | — | 7,626 | ||||||||||||||
Property and Equipment – net | — | 3,397 | 3,620 | — | 7,017 | ||||||||||||||
Goodwill | — | 3,315 | 582 | — | 3,897 | ||||||||||||||
Other Intangible Assets – net | — | 51 | 447 | — | 498 | ||||||||||||||
Other Assets | — | 47 | 766 | — | 813 | ||||||||||||||
Deferred Income Taxes | 26 | — | — | (26 | ) | — | |||||||||||||
Intercompany Receivable | 375 | — | 2,428 | (2,803 | ) | — | |||||||||||||
Investment in Subsidiaries | 3,137 | 3,540 | — | (6,677 | ) | — | |||||||||||||
Total Assets | $ | 4,476 | $ | 13,249 | $ | 11,632 | $ | (9,506 | ) | $ | 19,851 | ||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY: | |||||||||||||||||||
Current Liabilities: | |||||||||||||||||||
Short-term debt | $ | — | $ | 306 | $ | 3 | $ | — | $ | 309 | |||||||||
Merchandise accounts payable | — | 590 | 833 | — | 1,423 | ||||||||||||||
Accounts payable and accrued liabilities | 15 | 1,064 | 2,484 | — | 3,563 | ||||||||||||||
Income taxes | 71 | 16 | 265 | — | 352 | ||||||||||||||
Total Current Liabilities | 86 | 1,976 | 3,585 | — | 5,647 | ||||||||||||||
Long-Term Debt | — | 6,544 | 18 | — | 6,562 | ||||||||||||||
Intercompany Payable | — | 2,803 | — | (2,803 | ) | — | |||||||||||||
Deferred Income Taxes | — | 688 | 781 | (26 | ) | 1,443 | |||||||||||||
Other Liabilities | 66 | 500 | 1,311 | — | 1,877 | ||||||||||||||
Shareholders’ Equity: | |||||||||||||||||||
Macy's, Inc. | 4,323 | 738 | 5,939 | (6,677 | ) | 4,323 | |||||||||||||
Noncontrolling Interest | — | — | (1 | ) | — | (1 | ) | ||||||||||||
Total Shareholders’ Equity | 4,323 | 738 | 5,938 | (6,677 | ) | 4,322 | |||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 4,475 | $ | 13,249 | $ | 11,633 | $ | (9,506 | ) | $ | 19,851 |
Exhibit Number | Description | Document if Incorporated by Reference | ||||||||||||
10.6+ | Amended and Restated Credit Card Program Agreement, dated November 10, 2014, among the Company, FDS Bank, Macy's Credit and Customer Services, Inc. (“MCCS”), Macy's West Stores, Inc., Bloomingdale's, Inc., Department Stores National Bank ("DSNB") and Citibank, N.A. | |||||||||||||
10.6.1+ | Sixth Amendment to Amended and Restated Credit Card Program Agreement dated as of December 13, 2021, by and among Macy’s, Inc., FDS Bank, Macy’s Credit and Consumer Services, Inc., Bloomingdale's, LLC, and solely with respect to Section 2.1(a) FDS Thrift Holding Co., Inc., Department Stores National Bank and Citibank, N.A. | |||||||||||||
10.7 | Senior Executive Incentive Compensation Plan, as amended March 26, 2020 * | |||||||||||||
10.8 | Form of Indemnification Agreement * | Exhibit 10.14 to the Registration Statement on Form 10 (File No. 1-10951), filed November 27, 1991 | ||||||||||||
10.9 | Executive Severance Plan, effective November 1, 2009, as revised and restated January 1, 2014 * | |||||||||||||
10.9.1 | Senior Executive Severance Plan effective as of April 1, 2018 * | |||||||||||||
10.10 | Form of Nonqualified Stock Option Agreement under the 2009 Omnibus Incentive Compensation Plan (for Executives and Key Employees) * | |||||||||||||
10.10.1 | Form of Nonqualified Stock Option Agreement under the Amended and Restated 2009 Omnibus Incentive Compensation Plan (for Executives and Key Employees) * | |||||||||||||
10.10.2 | Form of Nonqualified Stock Option Agreement under the Amended and Restated 2009 Omnibus Incentive Compensation Plan (for Executives and Key Employees), as amended * | |||||||||||||
10.10.3 | Form of Stock Option Terms and Conditions under the 2018 Equity and Incentive Compensation Plan * | |||||||||||||
10.11 | Form of Time-Based Restricted Stock Agreement under the 2009 Omnibus Incentive Compensation Plan * | |||||||||||||
10.12 | 2020-2022 Performance-Based Restricted Stock Unit Terms and Conditions under the 2018 Equity and Incentive Compensation Plan * | |||||||||||||
10.12.1 | 2021-2023 Performance-Based Restricted Stock Unit Terms and Conditions under the 2018 Equity and Incentive Compensation Plan* | |||||||||||||
Parent | Subsidiary Issuer | Other Subsidiaries | Consolidating Adjustments | Consolidated | |||||||||||||||
ASSETS: | |||||||||||||||||||
Current Assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 741 | $ | 91 | $ | 277 | $ | — | $ | 1,109 | |||||||||
Receivables | — | 217 | 341 | — | 558 | ||||||||||||||
Merchandise inventories | — | 2,702 | 2,804 | — | 5,506 | ||||||||||||||
Prepaid expenses and other current assets | — | 135 | 344 | — | 479 | ||||||||||||||
Income taxes | 44 | — | — | (44 | ) | — | |||||||||||||
Total Current Assets | 785 | 3,145 | 3,766 | (44 | ) | 7,652 | |||||||||||||
Property and Equipment – net | — | 3,925 | 3,691 | — | 7,616 | ||||||||||||||
Goodwill | — | 3,315 | 582 | — | 3,897 | ||||||||||||||
Other Intangible Assets – net | — | 52 | 462 | — | 514 | ||||||||||||||
Other Assets | — | 154 | 743 | — | 897 | ||||||||||||||
Deferred Income Taxes | 14 | — | — | (14 | ) | — | |||||||||||||
Intercompany Receivable | — | — | 3,800 | (3,800 | ) | — | |||||||||||||
Investment in Subsidiaries | 4,725 | 3,804 | — | (8,529 | ) | — | |||||||||||||
Total Assets | $ | 5,524 | $ | 14,395 | $ | 13,044 | $ | (12,387 | ) | $ | 20,576 | ||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY: | |||||||||||||||||||
Current Liabilities: | |||||||||||||||||||
Short-term debt | $ | — | $ | 641 | $ | 1 | $ | — | $ | 642 | |||||||||
Merchandise accounts payable | — | 667 | 859 | — | 1,526 | ||||||||||||||
Accounts payable and accrued liabilities | 35 | 1,439 | 1,859 | — | 3,333 | ||||||||||||||
Income taxes | — | 41 | 230 | (44 | ) | 227 | |||||||||||||
Total Current Liabilities | 35 | 2,788 | 2,949 | (44 | ) | 5,728 | |||||||||||||
Long-Term Debt | — | 6,976 | 19 | — | 6,995 | ||||||||||||||
Intercompany Payable | 1,218 | 2,582 | — | (3,800 | ) | — | |||||||||||||
Deferred Income Taxes | — | 693 | 798 | (14 | ) | 1,477 | |||||||||||||
Other Liabilities | 21 | 558 | 1,544 | — | 2,123 | ||||||||||||||
Shareholders’ Equity: | |||||||||||||||||||
Macy's, Inc. | 4,250 | 798 | 7,731 | (8,529 | ) | 4,250 | |||||||||||||
Noncontrolling Interest | — | — | 3 | — | 3 | ||||||||||||||
Total Shareholders’ Equity | 4,250 | 798 | 7,734 | (8,529 | ) | 4,253 | |||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 5,524 | $ | 14,395 | $ | 13,044 | $ | (12,387 | ) | $ | 20,576 |
Exhibit Number | Description | Document if Incorporated by Reference | ||||||||||||
10.12.2 | 2022-2024 Performance-Based Restricted Stock Unit Terms and Conditions under the 2021 Equity and Incentive Compensation Plan* | |||||||||||||
10.13 | Form of Time-Based Restricted Stock Unit Agreement under the 2009 Omnibus Incentive Compensation Plan* | |||||||||||||
10.13.1 | Form of Time-Based Restricted Stock Unit Agreement under the Amended and Restated 2009 Omnibus Incentive Compensation Plan * | |||||||||||||
10.13.2 | Form of Time-Based Restricted Stock Unit Agreement under the Amended and Restated 2009 Omnibus Incentive Compensation Plan (with dividend equivalents) * | |||||||||||||
10.13.3 | Form of Time-Based Restricted Stock Unit Agreement under the Amended and Restated 2009 Omnibus Incentive Compensation Plan, as amended * | |||||||||||||
10.13.4 | Form of Time-Based Restricted Stock Unit Terms and Conditions under the 2018 Equity and Incentive Compensation Plan * | |||||||||||||
10.13.5 | Form of Time-Based Restricted Stock Unit Terms and Conditions under the 2021 Equity and Incentive Compensation Plan* | |||||||||||||
10.14 | Supplementary Executive Retirement Plan * | |||||||||||||
10.14.1 | First Amendment to the Supplementary Executive Retirement Plan effective January 1, 2012 * | |||||||||||||
10.14.2 | Second Amendment to Supplementary Executive Retirement Plan effective January 1, 2012 * | |||||||||||||
10.14.3 | Third Amendment to Supplementary Executive Retirement Plan effective December 31, 2013 * | |||||||||||||
10.15 | Executive Deferred Compensation Plan * | |||||||||||||
10.15.1 | First Amendment to Executive Deferred Compensation Plan effective December 31, 2013 * | |||||||||||||
10.16 | Macy's, Inc. 401(k) Retirement Investment Plan (the "Plan") (amending and restating the Macy's, Inc. 401(k) Retirement Investment Plan) effective as of January 1, 2014 * | |||||||||||||
10.16.1 | First Amendment to the Plan regarding matching contributions with respect to the Plan’s plan years beginning on and after January 1, 2014, effective January 1, 2014 * | |||||||||||||
10.16.2 | Second Amendment to the Plan regarding marriage status, effective January 1, 2014 * | |||||||||||||
10.16.3 | Third Amendment to the Plan regarding matching contributions with respect to the Plan’s plan years beginning on and after January 1, 2014 * | |||||||||||||
Parent | Subsidiary Issuer | Other Subsidiaries | Consolidating Adjustments | Consolidated | |||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||
Net income (loss) | $ | 619 | $ | (208 | ) | $ | 1,074 | $ | (874 | ) | $ | 611 | |||||||
Impairments, store closing and other costs | — | 295 | 184 | — | 479 | ||||||||||||||
Settlement charges | — | 34 | 64 | — | 98 | ||||||||||||||
Equity in earnings of subsidiaries | (619 | ) | (255 | ) | — | 874 | — | ||||||||||||
Dividends received from subsidiaries | 957 | 575 | — | (1,532 | ) | — | |||||||||||||
Depreciation and amortization | — | 407 | 651 | — | 1,058 | ||||||||||||||
(Increase) decrease in working capital | 110 | (482 | ) | 92 | — | (280 | ) | ||||||||||||
Other, net | 28 | 51 | (244 | ) | — | (165 | ) | ||||||||||||
Net cash provided by operating activities | 1,095 | 417 | 1,821 | (1,532 | ) | 1,801 | |||||||||||||
Cash flows from investing activities: | |||||||||||||||||||
Purchase of property and equipment and capitalized software, net | — | 12 | (251 | ) | — | (239 | ) | ||||||||||||
Other, net | — | 32 | 20 | — | 52 | ||||||||||||||
Net cash provided (used) by investing activities | — | 44 | (231 | ) | — | (187 | ) | ||||||||||||
Cash flows from financing activities: | |||||||||||||||||||
Debt repaid, net of debt issued | — | (750 | ) | 1 | — | (749 | ) | ||||||||||||
Dividends paid | (459 | ) | — | (1,532 | ) | 1,532 | (459 | ) | |||||||||||
Common stock acquired, net of issuance of common stock | (280 | ) | — | — | — | (280 | ) | ||||||||||||
Proceeds from noncontrolling interest | — | — | 4 | — | 4 | ||||||||||||||
Intercompany activity, net | (144 | ) | 255 | (111 | ) | — | — | ||||||||||||
Other, net | (15 | ) | 24 | 49 | — | 58 | |||||||||||||
Net cash used by financing activities | (898 | ) | (471 | ) | (1,589 | ) | 1,532 | (1,426 | ) | ||||||||||
Net increase (decrease) in cash and cash equivalents | 197 | (10 | ) | 1 | — | 188 | |||||||||||||
Cash and cash equivalents at beginning of period | 741 | 91 | 277 | — | 1,109 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 938 | $ | 81 | $ | 278 | $ | — | $ | 1,297 |
Exhibit Number | Description | Document if Incorporated by Reference | ||||||||||||
10.16.4 | Fourth Amendment to the Plan regarding rules applicable to Puerto Rico participants effective January 1, 2011 (and for the Plan's plan years beginning on and after that date)* | |||||||||||||
10.16.5 | Fifth Amendment to the Plan regarding eligible associates to participate (pre-tax deferrals only, no match) immediately upon hire effective as of January 1, 2014* | |||||||||||||
10.17 | Director Deferred Compensation Plan * | |||||||||||||
10.18 | Macy's, Inc. Amended and Restated 2009 Omnibus Incentive Compensation Plan * | |||||||||||||
10.19 | Macy's, Inc. 2018 Equity and Incentive Compensation Plan * | |||||||||||||
10.20 | Macy’s, Inc. 2021 Equity and Incentive Compensation Plan* | |||||||||||||
10.21 | Macy's, Inc. Deferred Compensation Plan (Amended and restated effective as of August 1, 2018) * | |||||||||||||
10.22 | Change in Control Plan, effective November 1, 2009, as revised and restated effective April 1, 2018 * | |||||||||||||
10.23 | Time Sharing Agreement between Macy's, Inc. and Jeff Gennette, dated June 14, 2017 * | |||||||||||||
10.24 | Macy’s, Inc. Employee Stock Purchase Plan* | |||||||||||||
21 | ||||||||||||||
22 | ||||||||||||||
23 | ||||||||||||||
24 | ||||||||||||||
31.1 | ||||||||||||||
31.2 | ||||||||||||||
32.1 | ||||||||||||||
32.2 | ||||||||||||||
101 | The following financial statements from Macy's, Inc.’s Annual Report on Form 10-K for the year ended January 28, 2023, filed March 24, 2023, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Consolidated Statements of Operations, (ii) Consolidated Statements of Comprehensive Income (Loss), (iii) Consolidated Balance Sheets, (iv) Consolidated Statements of Changes in Shareholders’ Equity, (v) Consolidated Statements of Cash Flows, and (vi) the Notes to Consolidated Financial Statements, tagged as block of text and in detail. |
Parent | Subsidiary Issuer | Other Subsidiaries | Consolidating Adjustments | Consolidated | |||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||
Net income | $ | 1,072 | $ | 89 | $ | 1,402 | $ | (1,493 | ) | $ | 1,070 | ||||||||
Impairments, store closing and other costs | — | 170 | 118 | — | 288 | ||||||||||||||
Equity in earnings of subsidiaries | (1,072 | ) | (421 | ) | — | 1,493 | — | ||||||||||||
Dividends received from subsidiaries | 1,086 | — | — | (1,086 | ) | — | |||||||||||||
Depreciation and amortization | — | 440 | 621 | — | 1,061 | ||||||||||||||
(Increase) decrease in working capital | 25 | (340 | ) | (81 | ) | — | (396 | ) | |||||||||||
Other, net | (8 | ) | (78 | ) | 47 | — | (39 | ) | |||||||||||
Net cash provided (used) by operating activities | 1,103 | (140 | ) | 2,107 | (1,086 | ) | 1,984 | ||||||||||||
Cash flows from investing activities: | |||||||||||||||||||
Purchase of property and equipment and capitalized software, net | — | (88 | ) | (821 | ) | — | (909 | ) | |||||||||||
Other, net | — | 83 | (266 | ) | — | (183 | ) | ||||||||||||
Net cash used by investing activities | — | (5 | ) | (1,087 | ) | — | (1,092 | ) | |||||||||||
Cash flows from financing activities: | |||||||||||||||||||
Debt issued, net of debt repaid | — | 348 | (1 | ) | — | 347 | |||||||||||||
Dividends paid | (456 | ) | — | (1,086 | ) | 1,086 | (456 | ) | |||||||||||
Common stock acquired, net of issuance of common stock | (1,838 | ) | — | — | — | (1,838 | ) | ||||||||||||
Proceeds from noncontrolling interest | — | — | 5 | — | 5 | ||||||||||||||
Intercompany activity, net | 12 | (243 | ) | 231 | — | — | |||||||||||||
Other, net | 12 | 37 | (136 | ) | — | (87 | ) | ||||||||||||
Net cash provided (used) by financing activities | (2,270 | ) | 142 | (987 | ) | 1,086 | (2,029 | ) | |||||||||||
Net increase (decrease) in cash and cash equivalents | (1,167 | ) | (3 | ) | 33 | — | (1,137 | ) | |||||||||||
Cash and cash equivalents at beginning of period | 1,908 | 94 | 244 | — | 2,246 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 741 | $ | 91 | $ | 277 | $ | — | $ | 1,109 |
Exhibit Number | Description | Document if Incorporated by Reference | ||||||||||||
104 | Cover Page Interactive Data File (formatted as iXBRL and contained in Exhibit 101) |
MACY’S, INC. | ||||||||
By: | /s/ ELISA D. GARCIA | |||||||
Elisa D. Garcia | ||||||||
Executive Vice President, Chief Legal Officer and Secretary |
* | * | * | ||||||||||||
Jeff Gennette | Adrian V. Mitchell | Paul Griscom | ||||||||||||
Chief Executive Officer (principal executive officer), Chairman of the Board and Director | Executive Vice President and Chief Financial Officer (principal financial officer) | Senior Vice President and Controller (principal accounting officer) | ||||||||||||
* | * | * | ||||||||||||
Emilie Arel | Francis S. Blake | Torrence N. Boone | ||||||||||||
Director | Director | Director | ||||||||||||
* | * | * | ||||||||||||
John A. Bryant | Ashley Buchanan | Marie Chandoha | ||||||||||||
Director | Director | Director | ||||||||||||
* | * | * | ||||||||||||
Deirdre P. Connelly | Jill Granoff | Leslie D. Hale | ||||||||||||
Director | Director | Director | ||||||||||||
* | * | * | ||||||||||||
William H. Lenehan | Sara Levinson | Paul C. Varga | ||||||||||||
Director | Director | Director | ||||||||||||
* | ||||||||||||||
Tracey Zhen | ||||||||||||||
Director |
By: | /s/ ELISA D. GARCIA | |||||||
Elisa D. Garcia | ||||||||
Attorney-in-Fact |
Parent | Subsidiary Issuer | Other Subsidiaries | Consolidating Adjustments | Consolidated | |||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||
Net income | $ | 1,526 | $ | 563 | $ | 1,589 | $ | (2,152 | ) | $ | 1,526 | ||||||||
Impairments, store closing and other costs | — | 45 | 42 | — | 87 | ||||||||||||||
Equity in earnings of subsidiaries | (1,528 | ) | (624 | ) | — | 2,152 | — | ||||||||||||
Dividends received from subsidiaries | 1,088 | 1 | — | (1,089 | ) | — | |||||||||||||
Depreciation and amortization | — | 454 | 582 | — | 1,036 | ||||||||||||||
Increase (decrease) in working capital | 9 | 74 | (69 | ) | — | 14 | |||||||||||||
Other, net | (20 | ) | (177 | ) | 243 | — | 46 | ||||||||||||
Net cash provided by operating activities | 1,075 | 336 | 2,387 | (1,089 | ) | 2,709 | |||||||||||||
Cash flows from investing activities: | |||||||||||||||||||
Purchase (disposition) of property and equipment and capitalized software, net | — | (260 | ) | (636 | ) | — | (896 | ) | |||||||||||
Other, net | — | (12 | ) | (62 | ) | — | (74 | ) | |||||||||||
Net cash used by investing activities | — | (272 | ) | (698 | ) | — | (970 | ) | |||||||||||
Cash flows from financing activities: | |||||||||||||||||||
Debt repaid, net of debt issued | — | 177 | (3 | ) | — | 174 | |||||||||||||
Dividends paid | (421 | ) | — | (1,089 | ) | 1,089 | (421 | ) | |||||||||||
Common stock acquired, net of issuance of common stock | (1,643 | ) | — | — | — | (1,643 | ) | ||||||||||||
Proceeds from noncontrolling interest | — | — | — | — | — | ||||||||||||||
Intercompany activity, net | 927 | (283 | ) | (644 | ) | — | — | ||||||||||||
Other, net | 15 | 52 | 57 | — | 124 | ||||||||||||||
Net cash used by financing activities | (1,122 | ) | (54 | ) | (1,679 | ) | 1,089 | (1,766 | ) | ||||||||||
Net increase (decrease) in cash and cash equivalents | (47 | ) | 10 | 10 | — | (27 | ) | ||||||||||||
Cash and cash equivalents at beginning of period | 1,955 | 84 | 234 | — | 2,273 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 1,908 | $ | 94 | $ | 244 | $ | — | $ | 2,246 |