Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Oct. 30, 2021 | Nov. 27, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Oct. 30, 2021 | |
Entity File Number | 1-13536 | |
Entity Registrant Name | Macy's, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 13-3324058 | |
Entity Address, Address Line One | 151 West 34th Street | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10001 | |
City Area Code | 212 | |
Local Phone Number | 494-1621 | |
Title of 12(b) Security | Common Stock, $.01 par value per share | |
Trading Symbol | M | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0000794367 | |
Current Fiscal Year End Date | --01-29 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 299,269,416 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | |
Income Statement [Abstract] | ||||
Net sales | $ 5,440 | $ 3,990 | $ 15,794 | $ 10,566 |
Credit card revenues, net | 213 | 195 | 568 | 494 |
Cost of sales | (3,207) | (2,569) | (9,449) | (7,788) |
Selling, general and administrative expenses | (1,973) | (1,726) | (5,618) | (4,723) |
Gains on sale of real estate | 50 | 3 | 61 | 20 |
Impairment, restructuring and other costs | 0 | (20) | (21) | (3,445) |
Operating income (loss) | 523 | (127) | 1,335 | (4,876) |
Benefit plan income, net | 17 | 16 | 49 | 37 |
Settlement charges | (8) | (26) | (90) | (65) |
Interest expense | (53) | (80) | (212) | (199) |
Losses on early retirement of debt | (185) | 0 | (199) | 0 |
Financing costs | 0 | 0 | 0 | (4) |
Interest income | 0 | 0 | 1 | 3 |
Income (loss) before income taxes | 294 | (217) | 884 | (5,104) |
Federal, state and local income tax benefit (expense) | (55) | 126 | (197) | 1,000 |
Net income (loss) | $ 239 | $ (91) | $ 687 | $ (4,104) |
Basic earnings (loss) per share | $ 0.78 | $ (0.29) | $ 2.21 | $ (13.20) |
Diluted earnings (loss) per share | $ 0.76 | $ (0.29) | $ 2.17 | $ (13.20) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 239 | $ (91) | $ 687 | $ (4,104) |
Actuarial gain (loss) on post employment and postretirement benefit plans, before tax | (9) | (36) | 53 | (17) |
Amortization of net actuarial loss and prior service credit on post employment and postretirement benefit plans included in net income (loss), before tax | 7 | 13 | 27 | 36 |
Settlement charges, before tax | 8 | 26 | 90 | 65 |
Tax effect related to items of other comprehensive income | (2) | (1) | (43) | (21) |
Total other comprehensive income, net of tax effect | 4 | 2 | 127 | 63 |
Comprehensive income (loss) | $ 243 | $ (89) | $ 814 | $ (4,041) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Oct. 30, 2021 | Jan. 30, 2021 | Oct. 31, 2020 |
Current Assets: | |||
Cash and cash equivalents | $ 316 | $ 1,679 | $ 1,551 |
Receivables | 212 | 276 | 185 |
Merchandise inventories | 6,141 | 3,774 | 5,144 |
Prepaid expenses and other current assets | 922 | 455 | 477 |
Total Current Assets | 7,591 | 6,184 | 7,357 |
Property and Equipment - net | 5,600 | 5,940 | 6,122 |
Right of Use Assets | 2,808 | 2,878 | 3,028 |
Goodwill | 828 | 828 | 828 |
Other Intangible Assets – net | 435 | 437 | 437 |
Other Assets | 1,017 | 1,439 | 1,442 |
Total Assets | 18,279 | 17,706 | 19,214 |
Current Liabilities: | |||
Short-term debt | 140 | 452 | 536 |
Merchandise accounts payable | 3,796 | 1,978 | 3,267 |
Accounts payable and accrued liabilities | 2,735 | 2,927 | 2,848 |
Total Current Liabilities | 6,671 | 5,357 | 6,651 |
Long-Term Debt | 3,295 | 4,407 | 4,852 |
Long-Term Lease Liabilities | 3,090 | 3,185 | 3,266 |
Deferred Income Taxes | 970 | 908 | 917 |
Other Liabilities | 1,245 | 1,296 | 1,285 |
Shareholders' Equity | 3,008 | 2,553 | 2,243 |
Total Liabilities and Shareholders’ Equity | $ 18,279 | $ 17,706 | $ 19,214 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Oct. 30, 2021 | Jan. 30, 2021 | Oct. 31, 2020 |
Statement Of Financial Position [Abstract] | |||
Accumulated depreciation and amortization | $ 4,826 | $ 4,400 | $ 4,816 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Equity [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Beginning balance at Feb. 01, 2020 | $ 6,377 | $ 3 | $ 621 | $ 7,989 | $ (1,241) | $ (995) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (3,581) | (3,581) | ||||
Other comprehensive income | 9 | 9 | ||||
Common stock dividends | (117) | (117) | ||||
Stock-based compensation expense | 6 | 6 | ||||
Stock issued under stock plans | (1) | (62) | 61 | |||
Other | 4 | 4 | ||||
Ending balance at May. 02, 2020 | 2,697 | 3 | 565 | 4,291 | (1,180) | (982) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (431) | (431) | ||||
Other comprehensive income | 51 | 51 | ||||
Stock-based compensation expense | 7 | 7 | ||||
Stock issued under stock plans | 0 | (4) | 4 | |||
Ending balance at Aug. 01, 2020 | 2,324 | 3 | 568 | 3,860 | (1,176) | (931) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (91) | (91) | ||||
Other comprehensive income | 2 | 2 | ||||
Stock-based compensation expense | 8 | 8 | ||||
Stock issued under stock plans | (1) | 1 | ||||
Ending balance at Oct. 31, 2020 | 2,243 | 3 | 575 | 3,769 | (1,175) | (929) |
Beginning balance at Jan. 30, 2021 | 2,553 | 3 | 571 | 3,928 | (1,161) | (788) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 103 | 103 | ||||
Other comprehensive income | 8 | 8 | ||||
Stock-based compensation expense | 11 | 11 | ||||
Stock issued under stock plans | 0 | (24) | 24 | |||
Ending balance at May. 01, 2021 | 2,675 | 3 | 558 | 4,031 | (1,137) | (780) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 345 | 345 | ||||
Other comprehensive income | 115 | 115 | ||||
Stock-based compensation expense | 11 | 11 | ||||
Stock issued under stock plans | 0 | (71) | 71 | |||
Ending balance at Jul. 31, 2021 | 3,146 | 3 | 498 | 4,376 | (1,066) | (665) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 239 | 239 | ||||
Other comprehensive income | 4 | 4 | ||||
Common stock dividends | (92) | (92) | ||||
Stock repurchases | (300) | (300) | ||||
Stock-based compensation expense | 11 | 11 | ||||
Stock issued under stock plans | (2) | 2 | ||||
Ending balance at Oct. 30, 2021 | $ 3,008 | $ 3 | $ 507 | $ 4,523 | $ (1,364) | $ (661) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Oct. 30, 2021 | May 02, 2020 | |
Statement Of Stockholders Equity [Abstract] | ||
Common Stock, Dividends, Per Share, Declared | $ 0.30 | $ 0.3775 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Oct. 30, 2021 | Oct. 31, 2020 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 687 | $ (4,104) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Impairment, restructuring and other costs | 21 | 3,445 |
Settlement charges | 90 | 65 |
Depreciation and amortization | 668 | 722 |
Stock-based compensation expense | 32 | 21 |
Gains on sale of real estate | (61) | (20) |
Benefit plans | 27 | 36 |
Amortization of financing costs and premium on acquired debt | 66 | 11 |
Deferred income taxes | 19 | (270) |
Changes in assets and liabilities: | ||
Decrease in receivables | 64 | 223 |
(Increase) decrease in merchandise inventories | (2,367) | 34 |
(Increase) decrease in prepaid expenses and other current assets | (44) | 29 |
Increase in merchandise accounts payable | 1,758 | 1,612 |
Increase (decrease) in accounts payable and accrued liabilities | 73 | (598) |
Decrease in current income taxes | (50) | (818) |
Change in other assets, liabilities, and other items not separately identified | (142) | (144) |
Net cash provided by operating activities | 841 | 244 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (230) | (290) |
Capitalized software | (155) | (96) |
Disposition of property and equipment | 118 | 39 |
Other, net | 64 | 33 |
Net cash used by investing activities | (203) | (314) |
Cash flows from financing activities: | ||
Debt issued | 975 | 2,780 |
Debt issuance costs | (9) | (102) |
Debt repurchase premium and expenses | (152) | 0 |
Debt repaid | (2,448) | (1,508) |
Dividends paid | (46) | (117) |
Decrease in outstanding checks | (97) | (90) |
Acquisition of treasury stock | (294) | 0 |
Net cash provided (used) by financing activities | (2,071) | 963 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (1,433) | 893 |
Cash, cash equivalents and restricted cash beginning of period | 1,754 | 731 |
Cash, cash equivalents and restricted cash end of period | 321 | 1,624 |
Supplemental cash flow information: | ||
Interest paid | 407 | 140 |
Interest received | 1 | 4 |
Income taxes paid (net of refunds received) | $ 228 | $ 88 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | Oct. 30, 2021 | Oct. 31, 2020 |
Statement Of Cash Flows Restricted Cash [Abstract] | ||
Restricted cash and cash equivalents | $ 5 | $ 73 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 9 Months Ended |
Oct. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Summary of Significant Accounting Policies | 1. Organization and Summary of Significant Accounting Policies Nature of Operations Macy's, Inc., together with its subsidiaries (the "Company"), is an omnichannel retail organization operating stores, websites and mobile applications under three brands (Macy's, Bloomingdale's and bluemercury) that sell a wide range of merchandise, including apparel and accessories (men's, women's and kids'), cosmetics, home furnishings and other consumer goods. The Company has stores in 43 states, the District of Columbia, Puerto Rico and Guam. As of October 30, 2021, the Company's operations were conducted through Macy's, Market by Macy’s, Macy’s Backstage, Bloomingdale's, Bloomingdale's The Outlet, Bloomies, and bluemercury. Bloomingdale's in Dubai, United Arab Emirates and Al Zahra, Kuwait are operated under a license agreement with Al Tayer Insignia, a company of Al Tayer Group, LLC. A description of the Company's significant accounting policies is included in the Company's Annual Report on Form 10-K for the fiscal year ended January 30, 2021 (the "2020 10-K"). The accompanying Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and notes thereto in the 2020 10-K. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates and assumptions are subject to inherent uncertainties, including the ultimate financial impact of the COVID-19 pandemic, which may result in actual amounts differing from reported amounts. The Consolidated Financial Statements for the 13 and 39 weeks ended October 30, 2021 and October 31, 2020, in the opinion of management, include all adjustments (consisting only of normal recurring adjustments) considered necessary to present fairly, in all material respects, the consolidated financial position and results of operations of the Company. Seasonality Because of the seasonal nature of the retail business, the results of operations for the 13 and 39 weeks ended October 30, 2021 and October 31, 2020 (which do not include the Christmas season) are not necessarily indicative of such results for the full fiscal year. Comprehensive Income (Loss) Total comprehensive income (loss) represents the change in equity during a period from sources other than transactions with shareholders and, as such, includes net income (loss). For the Company, the only other components of total comprehensive income (loss) for the 13 and 39 weeks ended October 30, 2021 and October 31, 2020 relate to post employment and postretirement plan items. Settlement charges incurred are included as a separate component of income (loss) before income taxes in the Consolidated Statements of Operations. Amortization reclassifications out of accumulated other comprehensive loss are included in the computation of net periodic benefit cost (income) and are included in benefit plan income, net on the Consolidated Statements of Operations. See Note 6, "Benefit Plans," for further information. COVID-19 Pandemic As the COVID-19 pandemic continues through fiscal 2021, the Company continues to prioritize health and safety measures in its stores and facilities to protect the well-being of its customers and colleagues while also focusing on prudent cash management, maintaining strong liquidity and executing its strategic initiatives. Although the Company has experienced strong recovery in operating results during fiscal 2021 as compared to fiscal 2020, the Company continues to monitor the impacts of COVID-19 on the macro economy as well as on the Company’s and its vendor partners’ operations. The full impact of the pandemic will continue to depend on future developments, including the continued spread and duration of the pandemic, the emergence of future variant strains of COVID-19, the availability and distribution of effective medical treatments or vaccines as well as any related federal, state or local governmental orders, restrictions or mandates. In addition, numerous uncertainties continue to surround the pandemic and its ultimate impact on the Company, including the timing and extent of any recovery in consumer traffic and spending, potential delays, interruptions and disruptions in the Company’s supply chain, maintenance of temporary government stimulus programs, labor shortages and intense competition for talent, all of which are highly uncertain and cannot be predicted. As further disclosed in the Company’s 2020 Form 10-K, on March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law, which permitted, among other benefits, the carryback of certain net operating losses. Based on the Company’s 2020 fiscal results and 2020 U.S. federal tax return, an approximate $590 million income tax receivable associated with this net operating loss carryback benefit is included within prepaid expenses and other current assets on the Company’s Consolidated Balance Sheet. This income tax receivable is estimated to be received in the first half of 2022. |
Impairment, Restructuring and O
Impairment, Restructuring and Other Costs | 9 Months Ended |
Oct. 30, 2021 | |
Restructuring Costs And Asset Impairment Charges [Abstract] | |
Impairment, Restructuring and Other Costs | 2 . Impairment, Restructuring and Other Costs 13 Weeks Ended 39 Weeks Ended October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 (millions) Impairments $ (10 ) $ 6 $ 10 $ 3,170 Restructuring — 2 (1 ) 196 Other 10 12 12 79 Total $ — $ 20 $ 21 $ 3,445 During the 39 weeks ended October 31, 2020, primarily as a result of the COVID-19 pandemic, the Company incurred non-cash impairment charges totaling $ 3,170 • $3,080 million of goodwill impairments, with $2,982 million attributable to the Macy's reporting unit and $98 million attributable to the bluemercury reporting unit. • $90 million of impairments primarily related to long-lived tangible and right of use assets to adjust the carrying value of certain store locations to their estimated fair value. A summary of the restructuring and other cash activity for the 13 and 39 weeks ended October 30, 2021 and October 31, 2020 related to the Polaris strategy, which was announced in February 2020 and included within accounts payable and accrued liabilities, is as follows: Severance and other benefits Professional fees and other related charges Total (millions) Balance at February 1, 2020 $ 115 $ 9 $ 124 Additions charged to expense 25 7 32 Cash payments (82 ) (6 ) (88 ) Balance at May 2, 2020 58 10 68 Additions charged to expense 15 6 21 Cash payments (67 ) (6 ) (73 ) Balance at August 1, 2020 6 10 16 Additions charged to expense 1 4 5 Cash payments (6 ) (10 ) (16 ) Balance at October 31, 2020 $ 1 $ 4 $ 5 Severance and other benefits Professional fees and other related charges Total (millions) Balance at January 30, 2021 $ 14 $ 2 $ 16 Additions charged to expense 5 — 5 Cash payments (16 ) (2 ) (18 ) Balance at May 1, 2021 3 — 3 Additions charged to expense — — — Cash payments (1 ) — (1 ) Balance at July 31, 2021 2 — 2 Additions charged to expense — — — Cash payments (1 ) — (1 ) Balance at October 30, 2021 $ 1 $ — $ 1 |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 9 Months Ended |
Oct. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | 3 . Earnings (Loss) Per Share The following tables set forth the computation of basic and diluted earnings (loss) per share: 13 Weeks Ended October 30, 2021 October 31, 2020 Net Income Shares Net Loss Shares (millions, except per share data) Net income (loss) $ 239 305.8 $ (91 ) 310.2 Shares to be issued under deferred compensation and other plans 1.1 1.0 $ 239 306.9 $ (91 ) 311.2 Basic earnings (loss) per share $ 0.78 $ (0.29 ) Effect of dilutive securities: Stock options and restricted stock units 6.9 — $ 239 313.8 $ (91 ) 311.2 Diluted earnings (loss) per share $ 0.76 $ (0.29 ) 39 Weeks Ended October 30, 2021 October 31, 2020 Net Income Shares Net Loss Shares (millions, except per share data) Net income (loss) $ 687 309.3 $ (4,104 ) 310.1 Shares to be issued under deferred compensation and other plans 1.0 0.9 $ 687 310.3 $ (4,104 ) 311.0 Basic earnings (loss) per share $ 2.21 $ (13.20 ) Effect of dilutive securities: Stock options and restricted stock units 6.7 — $ 687 317.0 $ (4,104 ) 311.0 Diluted earnings (loss) per share $ 2.17 $ (13.20 ) In addition to the stock options and restricted stock units reflected in the foregoing tables, stock options to purchase 14.3 million shares of common stock and restricted stock units relating to 1.0 million shares of common stock were outstanding at October 30, 2021, but were not included in the computation of diluted earnings per share because their inclusion would have been antidilutive or they were subject to performance conditions that had not been met. For the 13 and 39 weeks ended October 31, 2020, as a result of the net loss for the quarter and year to date period, all options and restricted stock units have been excluded from the calculation of diluted earnings per share and, therefore, there was no difference in the weighted average number of common shares for basic and diluted loss per share as the effect of all potentially dilutive shares outstanding was anti-dilutive. Stock options to purchase 16.4 million shares of common stock and restricted stock units relating to 10.0 million shares of common stock outstanding at October 31, 2020 were excluded from the computation of diluted earnings per share. |
Revenue
Revenue | 9 Months Ended |
Oct. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | 4 . Revenue Net sales Revenue is recognized when customers obtain control of goods and services promised by the Company. The amount of revenue recognized is based on the amount that reflects the consideration that is expected to be received in exchange for those respective goods and services. The Company's revenue generating activities include the following: Retail Sales Retail sales include merchandise sales, inclusive of delivery income, licensed department income, sales of private brand goods directly to third party retailers and sales of excess inventory to third parties. Sales of merchandise are recorded at the time of shipment to the customer and are reported net of estimated merchandise returns and certain customer incentives. Commissions earned on sales generated by licensed departments are included as a component of total net sales and are recognized as revenue at the time merchandise is sold to customers. Service revenues (e.g., alteration and cosmetic services) are recorded at the time the customer receives the benefit of the service. The Company has elected to present sales taxes on a net basis and, as such, sales taxes are included in accounts payable and accrued liabilities until remitted to the taxing authorities. Macy’s accounted for 87% and 88% of the Company’s net sales for the 13 weeks ended October 30, 2021 and October 31, 2020, respectively. Macy’s accounted for 87% and 88% of the Company’s net sales for the 39 weeks ended October 30, 2021 and October 31, 2020, respectively. In addition, digital sales accounted for approximately 33% and 38% of the Company’s net sales for the 13 weeks ended October 30, 2021and October 31, 2020, respectively, and 34% and 45% of the Company’s net sales for the 39 weeks ended October 30, 2021 and October 31, 2020, respectively. Disaggregation of the Company's net sales by family of business for the 13 and 39 weeks ended October 30, 2021 and October 31, 2020 were as follows: 13 Weeks Ended 39 Weeks Ended Net sales by family of business October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 (millions) Women's Accessories, Intimate Apparel, Shoes, Cosmetics and Fragrances $ 2,180 $ 1,677 $ 6,480 $ 4,273 Women's Apparel 1,042 690 3,068 1,895 Men's and Kids' 1,195 790 3,351 2,089 Home/Other (a) 1,023 833 2,895 2,309 Total $ 5,440 $ 3,990 $ 15,794 $ 10,566 (a) Other primarily includes restaurant sales, allowance for merchandise returns adjustments and breakage income from unredeemed gift cards. Merchandise Returns The Company estimates merchandise returns using historical data and recognizes an allowance that reduces net sales and cost of sales. The liability for merchandise returns is included in accounts payable and accrued liabilities on the Company's Consolidated Balance Sheets and was $243 million, $159 million and $182 million as of October 30, 2021, January 30, 2021 and October 31, 2020, respectively. Included in prepaid expenses and other current assets is an asset totaling $142 million, $103 million and $116 million as of October 30, 2021, January 30, 2021 and October 31, 2020, respectively, for the recoverable cost of merchandise estimated to be returned by customers. Gift Cards and Customer Loyalty Programs The Company only offers no-fee, non-expiring gift cards to its customers. At the time gift cards are sold or issued, no revenue is recognized; rather, the Company records an accrued liability to customers. The liability is relieved and revenue is recognized equal to the amount redeemed at the time gift cards are redeemed for merchandise. The Company records revenue from unredeemed gift cards (breakage) in net sales on a pro-rata basis over the time period gift cards are actually redeemed. At least three years of historical data, updated annually, is used to determine actual redemption patterns. The Company maintains customer loyalty programs in which customers earn points based on their purchases. Under the Macy’s Star Rewards loyalty program, points are earned based on customers’ spending on Macy’s private label and co-branded credit cards as well as non-proprietary cards and other forms of tender. The Company’s Bloomingdale’s Loyallist and bluemercury BlueRewards programs provide tender neutral points-based programs to their customers. The Company recognizes the estimated net amount of the rewards that will be earned and redeemed as a reduction to net sales at the time of the initial transaction and as tender when the points are subsequently redeemed by a customer. The liability for unredeemed gift cards and customer loyalty programs is included in accounts payable and accrued liabilities on the Company's Consolidated Balance Sheets and was $500 million, $616 million and $639 million as of October 30, 2021, January 30, 2021 and October 31, 2020, respectively. Credit Card Revenues, net In 2005, the Company entered into an arrangement with Citibank, N.A. ("Citibank") to sell the Company's private label and co-branded credit cards ("Credit Card Program"). Subsequent to this initial arrangement and associated amendments, in 2014, the Company entered into an amended and restated Credit Card Program Agreement (the "Program Agreement") with Citibank. As part of the Program Agreement, the Company receives payments for providing a combination of interrelated services and intellectual property to Citibank in support of the underlying Credit Card Program. Revenue based on the spending activity of the underlying accounts is recognized as the respective card purchases occur and the Company’s profit share is recognized based on the performance of the underlying portfolio. Revenue associated with the establishment of new credit accounts and assisting in the receipt of payments for existing accounts is recognized as such activities occur. Credit card revenues include finance charges, late fees and other revenue generated by the Company’s Credit Card Program, net of fraud losses and expenses associated with establishing new accounts. Under the terms of the Program Agreement, if sales decrease by more than 34% over a twelve-month period as compared to the Benchmark Year, defined as the twelve-month period from July 2006 to June 2007 in the Program Agreement, Citibank has the ability to provide written notice to terminate the agreement prior to the end of its current term. Based on the results for the Company’s February 2021 fiscal period, sales for the twelve-month period ended February 27, 2021 decreased by more than 34% as compared to the Benchmark Year. On June 4, 2021, the Company received a written notice of termination of the Program Agreement from Citibank. Upon receipt of the written notice of termination, the Company has six months to exercise, or not exercise, an option to purchase the assets of the Program Agreement, or nominate a third party to purchase such assets, and a subsequent six month period to complete such transfer, subject to potential extensions as more fully described in the Program Agreement. The Company and Citibank are required to continue to meet their respective obligations and provide support pursuant to the terms of the Program Agreement through this period. The Company estimates that these events will not have an impact on the financial results of the Credit Card Program in fiscal 2021. The Company is evaluating options for its Credit Card Program including potential transfer to another financial service entity or modified arrangement with Citibank and is in the final stages of a decision. Based on current estimates, the Company does not expect the forthcoming changes to the Credit Card Program’s financial structure to be materially different from its current terms. |
Financing Activities
Financing Activities | 9 Months Ended |
Oct. 30, 2021 | |
Debt Disclosure [Abstract] | |
Financing Activities | 5 . Financing Activities The following table shows the detail of debt repayments: 39 Weeks Ended October 30, 2021 October 31, 2020 (millions) Revolving credit agreement $ 335 $ 1,500 9.5% Amortizing debentures due 2021 2 4 9.75% Amortizing debentures due 2021 1 2 3.875% Senior notes due 2022 450 — 2.875% Senior notes due 2023 136 — 4.375% Senior notes due 2023 49 — 3.625% Senior notes due 2024 150 — 8.375% Senior notes due 2025 1,300 — 6.65% Senior debentures due 2024 4 — 7.6% Senior debentures due 2025 19 — $ 2,446 $ 1,506 The Company is party to an asset-based credit facility (“the ABL Credit Facility”) with certain financial institutions providing for a $2,941 million revolving credit facility (the “Revolving ABL Facility”), including a swingline sub-facility and a letter of credit sub- facility. The Company may request increases in the size of the Revolving ABL Facility up to an additional aggregate principal amount of $750 million. As of October 30, 2021, the Company had $140 million of outstanding borrowings under the ABL Credit Facility. On October 15, 2021, Macy’s Inc. redeemed the entire outstanding $294 million aggregate principal amount of its 3.875% senior notes due 2022 (the “2022 Notes”). The redemption price was equal to 100% of the outstanding principal amount of the 2022 Notes ($294 million), plus accrued and unpaid interest of $3 million. On August 17, 2021, Macy’s Inc. redeemed the entire outstanding $1.3 billion aggregate principal amount of its 8.375% Senior Secured Notes due 2025 (the “2025 Notes”). The redemption price was equal to 100% of the outstanding principal amount of the 2025 Notes ($1.3 billion), plus accrued and unpaid interest of $19 million, plus the applicable premium due to holders of the 2025 Notes in connection with an early redemption of $138 million, plus unamortized deferred debt costs of $47 million. The Company recognized the redemption premium and unamortized deferred debt costs of $185 million as losses on early retirement of debt during the 13 weeks ending October 30, 2021. On March 17, 2021, Macy’s Retail Holdings, LLC (“MRH”), a direct, wholly owned subsidiary of Macy’s, Inc., issued $500 million in aggregate principal amount of 5.875% senior notes due 2029 (the “2029 Notes”) in a private offering (the “Notes Offering”). The 2029 Notes mature on April 1, 2029. The 2029 Notes are senior unsecured obligations of MRH and are unconditionally guaranteed on a senior unsecured basis by Macy’s, Inc. MRH used the net proceeds from the Notes Offering, together with cash on hand, to fund the tender offer discussed below. On March 17, 2021, the Company completed a tender offer in which $500 million of senior notes and debentures were tendered for early settlement and purchased by MRH. The total cash cost for the tender offer was $17 million with the remainder funded through the net proceeds from the Notes Offering discussed above. The Company recognized $11 million of losses on early retirement of debt on the Consolidated Statements of Operation during the first quarter of 2021. |
Benefit Plans
Benefit Plans | 9 Months Ended |
Oct. 30, 2021 | |
Pension And Other Postretirement Benefit Expense [Abstract] | |
Benefit Plans | 6 . Benefit Plans The Company has defined contribution plans that cover substantially all colleagues who work 1,000 hours or more in a year. In addition, the Company has a funded defined benefit plan ("Pension Plan") and an unfunded defined benefit supplementary retirement plan ("SERP"), which provides benefits, for certain colleagues, in excess of qualified plan limitations. Effective January 1, 2012, the Pension Plan was closed to new participants, with limited exceptions, and effective January 2, 2012, the SERP was closed to new participants. In February 2013, the Company announced changes to the Pension Plan and SERP whereby eligible colleagues no longer earn future pension service credits after December 31, 2013, with limited exceptions. All retirement benefits attributable to service in subsequent periods are provided through defined contribution plans. In addition, certain retired colleagues currently are provided with specified health care and life insurance benefits ("Postretirement Obligations"). Eligibility requirements for such benefits vary, but generally state that benefits are available to eligible colleagues who were hired prior to a certain date and retire after a certain age with specified years of service. Certain colleagues are subject to having such benefits modified or terminated. The defined contribution plan expense and actuarially determined components of the net periodic benefit cost (income) associated with the defined benefit plans are as follows: 13 Weeks Ended 39 Weeks Ended October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 (millions) (millions) 401(k) Qualified Defined Contribution Plan $ 20 $ 17 $ 59 $ 49 Pension Plan Service cost $ — $ 1 $ 1 $ 4 Interest cost 11 13 36 51 Expected return on assets (39 ) (46 ) (122 ) (138 ) Recognition of net actuarial loss 5 11 22 31 $ (23 ) $ (21 ) $ (63 ) $ (52 ) Supplementary Retirement Plan Interest cost 3 3 8 11 Recognition of net actuarial loss 3 3 10 9 $ 6 $ 6 $ 18 $ 20 Total Retirement Expense $ 3 $ 2 $ 14 $ 17 Postretirement Obligations Interest cost 1 1 1 3 Recognition of net actuarial gain (1 ) (1 ) (4 ) (4 ) $ — $ — $ (3 ) $ (1 ) In connection with the Company’s Pension Plan, for the 13 and 39 weeks ended October 30, 2021, the Company incurred non-cash settlement charges of $8 million and $90 million, respectively. For the 13 weeks ended October 30, 2021, these charges relate to the pro-rata recognition of net actuarial losses associated with the Company's Pension Plan and are the result of an increase in lump sum distributions associated with retiree distribution elections. For the 39 weeks ended October 30, 2021, these charges relate to the pro-rata recognition of net actuarial losses associated with the Company’s Pension Plan and is the result of the transfer of pension obligations for certain retirees and beneficiaries under the Pension Plan through the purchase of a group annuity contract with an insurance company. The Company transferred $256 million of Pension Plan assets to the insurance company in the second quarter of 2021, thereby reducing its Pension Plan benefit obligations. In connection with the Company's defined benefit plans, for the 13 and 39 weeks ended October 31, 2020, the Company incurred non-cash settlement charges of $26 million and $ million, respectively. These charges relate to the pro-rata recognition of net actuarial losses associated with the Company's defined benefit plans and is the result of an increase in lump sum distributions associated with retiree distribution elections and restructuring activity. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Oct. 30, 2021 | |
Fair Value By Fair Value Hierarchy Level Extensible List [Abstract] | |
Fair Value Measurements | 7 . Fair Value Measurements The following table shows the Company's financial assets that are required to be measured at fair value on a recurring basis, by level within the hierarchy as defined by applicable accounting standards: Level 1: Quoted prices in active markets for identical assets Level 2: Significant observable inputs for the assets Level 3: Significant unobservable inputs for the assets October 30, 2021 October 31, 2020 Fair Value Measurements Fair Value Measurements Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (millions) Marketable equity and debt securities $ 41 $ 41 $ — $ — $ 95 $ 32 $ 63 $ — Other financial instruments not measured at fair value on a recurring basis include cash and cash equivalents, receivables, certain short-term investments and other assets, short-term debt, merchandise accounts payable, accounts payable and accrued liabilities and long-term debt. With the exception of long-term debt, the carrying amount of these financial instruments approximates fair value because of the short maturity of these instruments. The fair values of long-term debt, excluding capitalized leases, are generally estimated based on quoted market prices for identical or similar instruments, and are classified as Level 2 measurements within the hierarchy as defined by applicable accounting standards. The following table shows the estimated fair value of the Company's long-term debt: October 30, 2021 October 31, 2020 Notional Amount Carrying Amount Fair Value Notional Amount Carrying Amount Fair Value (millions) Long-term debt $ 3,295 $ 3,295 $ 3,377 $ 4,903 $ 4,852 $ 3,967 |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Oct. 30, 2021 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations Macy's, Inc., together with its subsidiaries (the "Company"), is an omnichannel retail organization operating stores, websites and mobile applications under three brands (Macy's, Bloomingdale's and bluemercury) that sell a wide range of merchandise, including apparel and accessories (men's, women's and kids'), cosmetics, home furnishings and other consumer goods. The Company has stores in 43 states, the District of Columbia, Puerto Rico and Guam. As of October 30, 2021, the Company's operations were conducted through Macy's, Market by Macy’s, Macy’s Backstage, Bloomingdale's, Bloomingdale's The Outlet, Bloomies, and bluemercury. Bloomingdale's in Dubai, United Arab Emirates and Al Zahra, Kuwait are operated under a license agreement with Al Tayer Insignia, a company of Al Tayer Group, LLC. A description of the Company's significant accounting policies is included in the Company's Annual Report on Form 10-K for the fiscal year ended January 30, 2021 (the "2020 10-K"). The accompanying Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and notes thereto in the 2020 10-K. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates and assumptions are subject to inherent uncertainties, including the ultimate financial impact of the COVID-19 pandemic, which may result in actual amounts differing from reported amounts. The Consolidated Financial Statements for the 13 and 39 weeks ended October 30, 2021 and October 31, 2020, in the opinion of management, include all adjustments (consisting only of normal recurring adjustments) considered necessary to present fairly, in all material respects, the consolidated financial position and results of operations of the Company. |
Seasonality | Seasonality Because of the seasonal nature of the retail business, the results of operations for the 13 and 39 weeks ended October 30, 2021 and October 31, 2020 (which do not include the Christmas season) are not necessarily indicative of such results for the full fiscal year. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Total comprehensive income (loss) represents the change in equity during a period from sources other than transactions with shareholders and, as such, includes net income (loss). For the Company, the only other components of total comprehensive income (loss) for the 13 and 39 weeks ended October 30, 2021 and October 31, 2020 relate to post employment and postretirement plan items. Settlement charges incurred are included as a separate component of income (loss) before income taxes in the Consolidated Statements of Operations. Amortization reclassifications out of accumulated other comprehensive loss are included in the computation of net periodic benefit cost (income) and are included in benefit plan income, net on the Consolidated Statements of Operations. See Note 6, "Benefit Plans," for further information. |
COVID-19 Pandemic | COVID-19 Pandemic As the COVID-19 pandemic continues through fiscal 2021, the Company continues to prioritize health and safety measures in its stores and facilities to protect the well-being of its customers and colleagues while also focusing on prudent cash management, maintaining strong liquidity and executing its strategic initiatives. Although the Company has experienced strong recovery in operating results during fiscal 2021 as compared to fiscal 2020, the Company continues to monitor the impacts of COVID-19 on the macro economy as well as on the Company’s and its vendor partners’ operations. The full impact of the pandemic will continue to depend on future developments, including the continued spread and duration of the pandemic, the emergence of future variant strains of COVID-19, the availability and distribution of effective medical treatments or vaccines as well as any related federal, state or local governmental orders, restrictions or mandates. In addition, numerous uncertainties continue to surround the pandemic and its ultimate impact on the Company, including the timing and extent of any recovery in consumer traffic and spending, potential delays, interruptions and disruptions in the Company’s supply chain, maintenance of temporary government stimulus programs, labor shortages and intense competition for talent, all of which are highly uncertain and cannot be predicted. As further disclosed in the Company’s 2020 Form 10-K, on March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law, which permitted, among other benefits, the carryback of certain net operating losses. Based on the Company’s 2020 fiscal results and 2020 U.S. federal tax return, an approximate $590 million income tax receivable associated with this net operating loss carryback benefit is included within prepaid expenses and other current assets on the Company’s Consolidated Balance Sheet. This income tax receivable is estimated to be received in the first half of 2022. |
Revenue | Net sales Revenue is recognized when customers obtain control of goods and services promised by the Company. The amount of revenue recognized is based on the amount that reflects the consideration that is expected to be received in exchange for those respective goods and services. The Company's revenue generating activities include the following: Retail Sales Retail sales include merchandise sales, inclusive of delivery income, licensed department income, sales of private brand goods directly to third party retailers and sales of excess inventory to third parties. Sales of merchandise are recorded at the time of shipment to the customer and are reported net of estimated merchandise returns and certain customer incentives. Commissions earned on sales generated by licensed departments are included as a component of total net sales and are recognized as revenue at the time merchandise is sold to customers. Service revenues (e.g., alteration and cosmetic services) are recorded at the time the customer receives the benefit of the service. The Company has elected to present sales taxes on a net basis and, as such, sales taxes are included in accounts payable and accrued liabilities until remitted to the taxing authorities. Macy’s accounted for 87% and 88% of the Company’s net sales for the 13 weeks ended October 30, 2021 and October 31, 2020, respectively. Macy’s accounted for 87% and 88% of the Company’s net sales for the 39 weeks ended October 30, 2021 and October 31, 2020, respectively. In addition, digital sales accounted for approximately 33% and 38% of the Company’s net sales for the 13 weeks ended October 30, 2021and October 31, 2020, respectively, and 34% and 45% of the Company’s net sales for the 39 weeks ended October 30, 2021 and October 31, 2020, respectively. Disaggregation of the Company's net sales by family of business for the 13 and 39 weeks ended October 30, 2021 and October 31, 2020 were as follows: 13 Weeks Ended 39 Weeks Ended Net sales by family of business October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 (millions) Women's Accessories, Intimate Apparel, Shoes, Cosmetics and Fragrances $ 2,180 $ 1,677 $ 6,480 $ 4,273 Women's Apparel 1,042 690 3,068 1,895 Men's and Kids' 1,195 790 3,351 2,089 Home/Other (a) 1,023 833 2,895 2,309 Total $ 5,440 $ 3,990 $ 15,794 $ 10,566 (a) Other primarily includes restaurant sales, allowance for merchandise returns adjustments and breakage income from unredeemed gift cards. Merchandise Returns The Company estimates merchandise returns using historical data and recognizes an allowance that reduces net sales and cost of sales. The liability for merchandise returns is included in accounts payable and accrued liabilities on the Company's Consolidated Balance Sheets and was $243 million, $159 million and $182 million as of October 30, 2021, January 30, 2021 and October 31, 2020, respectively. Included in prepaid expenses and other current assets is an asset totaling $142 million, $103 million and $116 million as of October 30, 2021, January 30, 2021 and October 31, 2020, respectively, for the recoverable cost of merchandise estimated to be returned by customers. Gift Cards and Customer Loyalty Programs The Company only offers no-fee, non-expiring gift cards to its customers. At the time gift cards are sold or issued, no revenue is recognized; rather, the Company records an accrued liability to customers. The liability is relieved and revenue is recognized equal to the amount redeemed at the time gift cards are redeemed for merchandise. The Company records revenue from unredeemed gift cards (breakage) in net sales on a pro-rata basis over the time period gift cards are actually redeemed. At least three years of historical data, updated annually, is used to determine actual redemption patterns. The Company maintains customer loyalty programs in which customers earn points based on their purchases. Under the Macy’s Star Rewards loyalty program, points are earned based on customers’ spending on Macy’s private label and co-branded credit cards as well as non-proprietary cards and other forms of tender. The Company’s Bloomingdale’s Loyallist and bluemercury BlueRewards programs provide tender neutral points-based programs to their customers. The Company recognizes the estimated net amount of the rewards that will be earned and redeemed as a reduction to net sales at the time of the initial transaction and as tender when the points are subsequently redeemed by a customer. The liability for unredeemed gift cards and customer loyalty programs is included in accounts payable and accrued liabilities on the Company's Consolidated Balance Sheets and was $500 million, $616 million and $639 million as of October 30, 2021, January 30, 2021 and October 31, 2020, respectively. Credit Card Revenues, net In 2005, the Company entered into an arrangement with Citibank, N.A. ("Citibank") to sell the Company's private label and co-branded credit cards ("Credit Card Program"). Subsequent to this initial arrangement and associated amendments, in 2014, the Company entered into an amended and restated Credit Card Program Agreement (the "Program Agreement") with Citibank. As part of the Program Agreement, the Company receives payments for providing a combination of interrelated services and intellectual property to Citibank in support of the underlying Credit Card Program. Revenue based on the spending activity of the underlying accounts is recognized as the respective card purchases occur and the Company’s profit share is recognized based on the performance of the underlying portfolio. Revenue associated with the establishment of new credit accounts and assisting in the receipt of payments for existing accounts is recognized as such activities occur. Credit card revenues include finance charges, late fees and other revenue generated by the Company’s Credit Card Program, net of fraud losses and expenses associated with establishing new accounts. Under the terms of the Program Agreement, if sales decrease by more than 34% over a twelve-month period as compared to the Benchmark Year, defined as the twelve-month period from July 2006 to June 2007 in the Program Agreement, Citibank has the ability to provide written notice to terminate the agreement prior to the end of its current term. Based on the results for the Company’s February 2021 fiscal period, sales for the twelve-month period ended February 27, 2021 decreased by more than 34% as compared to the Benchmark Year. On June 4, 2021, the Company received a written notice of termination of the Program Agreement from Citibank. Upon receipt of the written notice of termination, the Company has six months to exercise, or not exercise, an option to purchase the assets of the Program Agreement, or nominate a third party to purchase such assets, and a subsequent six month period to complete such transfer, subject to potential extensions as more fully described in the Program Agreement. The Company and Citibank are required to continue to meet their respective obligations and provide support pursuant to the terms of the Program Agreement through this period. The Company estimates that these events will not have an impact on the financial results of the Credit Card Program in fiscal 2021. The Company is evaluating options for its Credit Card Program including potential transfer to another financial service entity or modified arrangement with Citibank and is in the final stages of a decision. Based on current estimates, the Company does not expect the forthcoming changes to the Credit Card Program’s financial structure to be materially different from its current terms. |
Impairment, Restructuring and_2
Impairment, Restructuring and Other Costs (Tables) | 9 Months Ended |
Oct. 30, 2021 | |
Restructuring Costs And Asset Impairment Charges [Abstract] | |
Schedule of Impairment, Restructuring and Other Costs | 13 Weeks Ended 39 Weeks Ended October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 (millions) Impairments $ (10 ) $ 6 $ 10 $ 3,170 Restructuring — 2 (1 ) 196 Other 10 12 12 79 Total $ — $ 20 $ 21 $ 3,445 |
Summary of Restructuring and Other Cash Activity | A summary of the restructuring and other cash activity for the 13 and 39 weeks ended October 30, 2021 and October 31, 2020 related to the Polaris strategy, which was announced in February 2020 and included within accounts payable and accrued liabilities, is as follows: Severance and other benefits Professional fees and other related charges Total (millions) Balance at February 1, 2020 $ 115 $ 9 $ 124 Additions charged to expense 25 7 32 Cash payments (82 ) (6 ) (88 ) Balance at May 2, 2020 58 10 68 Additions charged to expense 15 6 21 Cash payments (67 ) (6 ) (73 ) Balance at August 1, 2020 6 10 16 Additions charged to expense 1 4 5 Cash payments (6 ) (10 ) (16 ) Balance at October 31, 2020 $ 1 $ 4 $ 5 Severance and other benefits Professional fees and other related charges Total (millions) Balance at January 30, 2021 $ 14 $ 2 $ 16 Additions charged to expense 5 — 5 Cash payments (16 ) (2 ) (18 ) Balance at May 1, 2021 3 — 3 Additions charged to expense — — — Cash payments (1 ) — (1 ) Balance at July 31, 2021 2 — 2 Additions charged to expense — — — Cash payments (1 ) — (1 ) Balance at October 30, 2021 $ 1 $ — $ 1 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 9 Months Ended |
Oct. 30, 2021 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings (Loss) Per Share | The following tables set forth the computation of basic and diluted earnings (loss) per share: 13 Weeks Ended October 30, 2021 October 31, 2020 Net Income Shares Net Loss Shares (millions, except per share data) Net income (loss) $ 239 305.8 $ (91 ) 310.2 Shares to be issued under deferred compensation and other plans 1.1 1.0 $ 239 306.9 $ (91 ) 311.2 Basic earnings (loss) per share $ 0.78 $ (0.29 ) Effect of dilutive securities: Stock options and restricted stock units 6.9 — $ 239 313.8 $ (91 ) 311.2 Diluted earnings (loss) per share $ 0.76 $ (0.29 ) 39 Weeks Ended October 30, 2021 October 31, 2020 Net Income Shares Net Loss Shares (millions, except per share data) Net income (loss) $ 687 309.3 $ (4,104 ) 310.1 Shares to be issued under deferred compensation and other plans 1.0 0.9 $ 687 310.3 $ (4,104 ) 311.0 Basic earnings (loss) per share $ 2.21 $ (13.20 ) Effect of dilutive securities: Stock options and restricted stock units 6.7 — $ 687 317.0 $ (4,104 ) 311.0 Diluted earnings (loss) per share $ 2.17 $ (13.20 ) |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Oct. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Sales From Merchandise Category | Disaggregation of the Company's net sales by family of business for the 13 and 39 weeks ended October 30, 2021 and October 31, 2020 were as follows: 13 Weeks Ended 39 Weeks Ended Net sales by family of business October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 (millions) Women's Accessories, Intimate Apparel, Shoes, Cosmetics and Fragrances $ 2,180 $ 1,677 $ 6,480 $ 4,273 Women's Apparel 1,042 690 3,068 1,895 Men's and Kids' 1,195 790 3,351 2,089 Home/Other (a) 1,023 833 2,895 2,309 Total $ 5,440 $ 3,990 $ 15,794 $ 10,566 (a) Other primarily includes restaurant sales, allowance for merchandise returns adjustments and breakage income from unredeemed gift cards. |
Financing Activities (Tables)
Financing Activities (Tables) | 9 Months Ended |
Oct. 30, 2021 | |
Debt Disclosure [Abstract] | |
Detail of Debt Repayments | The following table shows the detail of debt repayments: 39 Weeks Ended October 30, 2021 October 31, 2020 (millions) Revolving credit agreement $ 335 $ 1,500 9.5% Amortizing debentures due 2021 2 4 9.75% Amortizing debentures due 2021 1 2 3.875% Senior notes due 2022 450 — 2.875% Senior notes due 2023 136 — 4.375% Senior notes due 2023 49 — 3.625% Senior notes due 2024 150 — 8.375% Senior notes due 2025 1,300 — 6.65% Senior debentures due 2024 4 — 7.6% Senior debentures due 2025 19 — $ 2,446 $ 1,506 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 9 Months Ended |
Oct. 30, 2021 | |
Pension And Other Postretirement Benefit Expense [Abstract] | |
Schedule of Costs of Retirement Plans | The defined contribution plan expense and actuarially determined components of the net periodic benefit cost (income) associated with the defined benefit plans are as follows: 13 Weeks Ended 39 Weeks Ended October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 (millions) (millions) 401(k) Qualified Defined Contribution Plan $ 20 $ 17 $ 59 $ 49 Pension Plan Service cost $ — $ 1 $ 1 $ 4 Interest cost 11 13 36 51 Expected return on assets (39 ) (46 ) (122 ) (138 ) Recognition of net actuarial loss 5 11 22 31 $ (23 ) $ (21 ) $ (63 ) $ (52 ) Supplementary Retirement Plan Interest cost 3 3 8 11 Recognition of net actuarial loss 3 3 10 9 $ 6 $ 6 $ 18 $ 20 Total Retirement Expense $ 3 $ 2 $ 14 $ 17 Postretirement Obligations Interest cost 1 1 1 3 Recognition of net actuarial gain (1 ) (1 ) (4 ) (4 ) $ — $ — $ (3 ) $ (1 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Oct. 30, 2021 | |
Fair Value By Fair Value Hierarchy Level Extensible List [Abstract] | |
Fair Value of Plan Assets Measured on a Recurring Basis | The following table shows the Company's financial assets that are required to be measured at fair value on a recurring basis, by level within the hierarchy as defined by applicable accounting standards: Level 1: Quoted prices in active markets for identical assets Level 2: Significant observable inputs for the assets Level 3: Significant unobservable inputs for the assets October 30, 2021 October 31, 2020 Fair Value Measurements Fair Value Measurements Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (millions) Marketable equity and debt securities $ 41 $ 41 $ — $ — $ 95 $ 32 $ 63 $ — |
Estimated Fair Values of Company's Long Term Debt | The following table shows the estimated fair value of the Company's long-term debt: October 30, 2021 October 31, 2020 Notional Amount Carrying Amount Fair Value Notional Amount Carrying Amount Fair Value (millions) Long-term debt $ 3,295 $ 3,295 $ 3,377 $ 4,903 $ 4,852 $ 3,967 |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies (Narrative) (Details) $ in Millions | Oct. 30, 2021USD ($)State |
Organization And Summary Of Significant Accounting Policies [Line Items] | |
Number of states in which entity operates | State | 43 |
COVID-19 Pandemic [Member] | Prepaid Expenses and Other Current Assets [Member] | |
Organization And Summary Of Significant Accounting Policies [Line Items] | |
Income tax receivable, COVID-19 | $ | $ 590 |
Impairment, Restructuring and_3
Impairment, Restructuring and Other Costs - Schedule of Impairment, Restructuring and Other Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | |
Restructuring Costs And Asset Impairment Charges [Abstract] | ||||
Impairments | $ (10) | $ 6 | $ 10 | $ 3,170 |
Restructuring | 0 | 2 | (1) | 196 |
Other | 10 | 12 | 12 | 79 |
Total | $ 0 | $ 20 | $ 21 | $ 3,445 |
Impairment, Restructuring and_4
Impairment, Restructuring and Other Costs - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | |
Restructuring Cost And Reserve [Line Items] | ||||
Impairments | $ (10) | $ 6 | $ 10 | $ 3,170 |
Goodwill impairment, COVID-19 | 3,080 | |||
Tangible Asset Impairment, COVID-19 | 90 | |||
Macy's Reporting Unit | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Goodwill impairment, COVID-19 | 2,982 | |||
Bluemercury Reporting Unit | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Goodwill impairment, COVID-19 | $ 98 |
Impairment, Restructuring and_5
Impairment, Restructuring and Other Costs - Summary of Restructuring and Other Cash Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Oct. 30, 2021 | Jul. 31, 2021 | May 01, 2021 | Oct. 31, 2020 | Aug. 01, 2020 | May 02, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | |
Restructuring Cost And Reserve [Line Items] | ||||||||
Additions charged to expense | $ 10 | $ 12 | $ 12 | $ 79 | ||||
Polaris Strategy | ||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||
Beginning Balance | 2 | $ 3 | $ 16 | 16 | $ 68 | $ 124 | 16 | 124 |
Additions charged to expense | 0 | 0 | 5 | 5 | 21 | 32 | ||
Cash payments | (1) | (1) | (18) | (16) | (73) | (88) | ||
Ending Balance | 1 | 2 | 3 | 5 | 16 | 68 | 1 | 5 |
Polaris Strategy | Employee Severance | ||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||
Beginning Balance | 2 | 3 | 14 | 6 | 58 | 115 | 14 | 115 |
Additions charged to expense | 0 | 0 | 5 | 1 | 15 | 25 | ||
Cash payments | (1) | (1) | (16) | (6) | (67) | (82) | ||
Ending Balance | 1 | 2 | 3 | 1 | 6 | 58 | 1 | 1 |
Polaris Strategy | Other Restructuring | ||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||
Beginning Balance | 0 | 0 | 2 | 10 | 10 | 9 | 2 | 9 |
Additions charged to expense | 0 | 0 | 0 | 4 | 6 | 7 | ||
Cash payments | 0 | 0 | (2) | (10) | (6) | (6) | ||
Ending Balance | $ 0 | $ 0 | $ 0 | $ 4 | $ 10 | $ 10 | $ 0 | $ 4 |
Earnings (Loss) Per Share (Comp
Earnings (Loss) Per Share (Computation of Basic and Diluted Earnings (Loss) Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) | $ 239 | $ (91) | $ 687 | $ (4,104) |
Net Income (Loss) Available to Common Stockholders, Basic | $ 239 | $ (91) | $ 687 | $ (4,104) |
Basic earnings (loss) per share | $ 0.78 | $ (0.29) | $ 2.21 | $ (13.20) |
Net Income (Loss) Available to Common Stockholders, Diluted | $ 239 | $ (91) | $ 687 | $ (4,104) |
Diluted earnings (loss) per share | $ 0.76 | $ (0.29) | $ 2.17 | $ (13.20) |
Weighted Average Number of Shares Issued, Basic | 305.8 | 310.2 | 309.3 | 310.1 |
Shares to be issued under deferred compensation and other plans | 1.1 | 1 | 1 | 0.9 |
Average number of shares outstanding, basic | 306.9 | 311.2 | 310.3 | 311 |
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 6.9 | 0 | 6.7 | 0 |
Average number of shares outstanding, diluted | 313.8 | 311.2 | 317 | 311 |
Earnings (Loss) Per Share (Narr
Earnings (Loss) Per Share (Narrative) (Details) - shares shares in Millions | 9 Months Ended | |
Oct. 30, 2021 | Oct. 31, 2020 | |
Employee Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 14.3 | 16.4 |
Restricted Stock Units [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1 | 10 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | Feb. 27, 2021 | Jan. 30, 2021 | |
Macy's sales to total Company sales | 87.00% | 88.00% | 87.00% | 88.00% | ||
Percentage of digital sales | 33.00% | 38.00% | 34.00% | 45.00% | ||
Contract with Customer, Refund Liability | $ 243 | $ 182 | $ 243 | $ 182 | $ 159 | |
Contract with Customer, Right to Recover Product | 142 | 116 | 142 | 116 | 103 | |
Contract with Customer, Liability, Current | $ 500 | $ 639 | $ 500 | $ 639 | $ 616 | |
Minimum [Member] | ||||||
Sales decrease benchmark percentage | 34.00% | |||||
Sales decrease percentage | 34.00% |
Revenue (Sales From Merchandise
Revenue (Sales From Merchandise Category) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | |
Net sales | $ 5,440 | $ 3,990 | $ 15,794 | $ 10,566 |
Women's Accessories, Intimate Apparel, Shoes, Cosmetics and Fragrances [Member] | ||||
Net sales | 2,180 | 1,677 | 6,480 | 4,273 |
Women's Apparel [Member] | ||||
Net sales | 1,042 | 690 | 3,068 | 1,895 |
Men's and Kids' [Member] | ||||
Net sales | 1,195 | 790 | 3,351 | 2,089 |
Home/Other [Member] | ||||
Net sales | $ 1,023 | $ 833 | $ 2,895 | $ 2,309 |
Financing Activities (Detail Of
Financing Activities (Detail Of Debt Repayments) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Oct. 30, 2021 | Oct. 31, 2020 | |
Repayments of Debt | $ 2,446 | $ 1,506 |
Revolving Credit Agreement [Member] | ||
Repayments of Debt | 335 | 1,500 |
9.5% Amortizing Debentures Due 2021 [Member] | ||
Repayments of Debt | $ 2 | $ 4 |
Debt instrument interest rate, stated percentage | 9.50% | 9.50% |
9.75% Amortizing Debentures Due 2021 [Member] | ||
Repayments of Debt | $ 1 | $ 2 |
Debt instrument interest rate, stated percentage | 9.75% | 9.75% |
3.875% Senior Notes Due 2022 [Member] | ||
Repayments of Debt | $ 450 | $ 0 |
Debt instrument interest rate, stated percentage | 3.875% | 3.875% |
2.875% Senior Notes Due 2023 [Member] | ||
Repayments of Debt | $ 136 | $ 0 |
Debt instrument interest rate, stated percentage | 2.875% | 2.875% |
4.375% Senior Notes Due 2023 [Member] | ||
Repayments of Debt | $ 49 | $ 0 |
Debt instrument interest rate, stated percentage | 4.375% | 4.375% |
3.625% Senior Notes Due 2024 [Member] | ||
Repayments of Debt | $ 150 | $ 0 |
Debt instrument interest rate, stated percentage | 3.625% | 3.625% |
6.65% Senior Debentures Due 2024 [Member] | ||
Repayments of Debt | $ 4 | $ 0 |
Debt instrument interest rate, stated percentage | 6.65% | 6.65% |
8.375% Senior notes due 2025 [Member] | ||
Repayments of Debt | $ 1,300 | $ 0 |
Debt instrument interest rate, stated percentage | 8.375% | 8.375% |
7.6% Senior Debentures Due 2025 [Member] | ||
Repayments of Debt | $ 19 | $ 0 |
Debt instrument interest rate, stated percentage | 7.60% | 7.60% |
Financing Activities (Narrative
Financing Activities (Narrative) (Details) - USD ($) | Oct. 15, 2021 | Aug. 17, 2021 | Mar. 17, 2021 | Oct. 30, 2021 | May 01, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 |
Gains (losses) on retirement of debt | $ 185,000,000 | $ 11,000,000 | $ 0 | $ 199,000,000 | $ 0 | |||
Extinguishment of debt | $ 500,000,000 | |||||||
Debt Instrument, Repurchase Amount | $ 17,000,000 | |||||||
Gains (losses) on retirement of debt | (185,000,000) | $ (11,000,000) | $ 0 | (199,000,000) | $ 0 | |||
3.875% Senior Notes Due 2022 [Member] | ||||||||
Debt instrument, redeemed in principal amount | $ 294,000,000 | |||||||
Debt instrument interest rate, stated percentage | 3.875% | |||||||
Debt instrument, redemption price, percentage of principal amount redeemed | 100.00% | |||||||
Debt instrument, accrued and unpaid interest | $ 3,000,000 | |||||||
8.375% Senior secured notes due 2025 [Member] | ||||||||
Debt instrument, redeemed in principal amount | $ 1,300,000,000 | |||||||
Debt instrument interest rate, stated percentage | 8.375% | |||||||
Debt instrument, redemption price, percentage of principal amount redeemed | 100.00% | |||||||
Debt instrument, accrued and unpaid interest | $ 19,000,000 | |||||||
Gain (loss) on early redemption of debt before write off | 138,000,000 | |||||||
Unamortized deferred debt costs | $ 47,000,000 | |||||||
5.875% Senior Notes due 2029 [Member] | ||||||||
Debt instrument interest rate, stated percentage | 5.875% | |||||||
Face amount | $ 500,000,000 | |||||||
Debt instrument, maturity date | Apr. 1, 2029 | |||||||
ABL Borrower [Member] | Revolving Credit Facility [Member] | ||||||||
Additional borrowing capacity available | 750,000,000 | 750,000,000 | ||||||
Revolving ABL Facility [Member] | ABL Borrower [Member] | Revolving Credit Facility [Member] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 2,941,000,000 | 2,941,000,000 | ||||||
Amount Outstanding Under Credit Facility | $ 140,000,000 | $ 140,000,000 |
Benefit Plans (Narrative) (Deta
Benefit Plans (Narrative) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 30, 2021USD ($) | Jul. 31, 2021USD ($) | Oct. 31, 2020USD ($) | Oct. 30, 2021USD ($)Hour | Oct. 31, 2020USD ($) | |
Pension And Other Postretirement Benefit Expense [Abstract] | |||||
Number of hours required for participation in defined benefit and defined contribution plans | Hour | 1,000 | ||||
Defined benefit plan, amount of transferred pension plan assets | $ 256 | ||||
Defined benefit plan, settlement charges | $ 8 | $ 26 | $ 90 | $ 65 |
Benefit Plans (Net Periodic Ben
Benefit Plans (Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 30, 2021 | Oct. 31, 2020 | Oct. 30, 2021 | Oct. 31, 2020 | |
Total Retirement Expense | $ 3 | $ 2 | $ 14 | $ 17 |
Pension Plan [Member] | ||||
Service cost | 0 | 1 | 1 | 4 |
Interest cost | 11 | 13 | 36 | 51 |
Expected return on assets | (39) | (46) | (122) | (138) |
Recognition of net actuarial (gain) loss | 5 | 11 | 22 | 31 |
Total net periodic benefit cost | (23) | (21) | (63) | (52) |
Supplementary Retirement Plan [Member] | ||||
Interest cost | 3 | 3 | 8 | 11 |
Recognition of net actuarial (gain) loss | 3 | 3 | 10 | 9 |
Total net periodic benefit cost | 6 | 6 | 18 | 20 |
Other Postretirement Benefits Plan [Member] | ||||
Interest cost | 1 | 1 | 1 | 3 |
Recognition of net actuarial (gain) loss | (1) | (1) | (4) | (4) |
Total net periodic benefit cost | 0 | 0 | (3) | (1) |
401(k) Qualified Plan [Member] | Defined Contribution Plan [Member] | ||||
Defined contribution plan, cost | $ 20 | $ 17 | $ 59 | $ 49 |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Assets Measured At Fair Value On A Recurring and Nonrecurring Basis) (Details) - USD ($) $ in Millions | Oct. 30, 2021 | Oct. 31, 2020 |
Marketable equity and debt securities | $ 41 | $ 95 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Marketable equity and debt securities | 41 | 32 |
Significant Observable Inputs (Level 2) [Member] | ||
Marketable equity and debt securities | 0 | 63 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Marketable equity and debt securities | $ 0 | $ 0 |
Fair Value Measurements (Estima
Fair Value Measurements (Estimated Fair Value Of Company Long Term Debt) (Details) - USD ($) $ in Millions | Oct. 30, 2021 | Oct. 31, 2020 |
Long-term debt | $ 3,377 | $ 3,967 |
Notional Amount | ||
Long-term debt | 3,295 | 4,903 |
Carrying Amount | ||
Long-term debt | $ 3,295 | $ 4,852 |