2020 Q2 Form 10-Q Financial Statement

#000079436720000089 Filed on July 02, 2020

View on sec.gov

Income Statement

Concept 2020 Q2 2019 Q2
Revenue $3.017B $5.504B
YoY Change -45.19% -0.67%
Cost Of Revenue $2.501B $3.403B
YoY Change -26.51% 0.62%
Gross Profit $516.0M $2.101B
YoY Change -75.44% -2.69%
Gross Profit Margin 17.1% 38.17%
Selling, General & Admin $1.598B $2.112B
YoY Change -24.34% 1.39%
% of Gross Profit 309.69% 100.52%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $237.0M $236.0M
YoY Change 0.42% 0.43%
% of Gross Profit 45.93% 11.23%
Operating Expenses $1.598B $2.112B
YoY Change -24.34% 1.39%
Operating Profit -$4.119B $203.0M
YoY Change -2129.06% -14.71%
Interest Expense $49.00M $54.00M
YoY Change -9.26% -23.94%
% of Operating Profit 26.6%
Other Income/Expense, Net $9.000M $7.000M
YoY Change 28.57% -36.36%
Pretax Income -$4.157B $163.0M
YoY Change -2650.31% -10.93%
Income Tax -$576.0M $27.00M
% Of Pretax Income 16.56%
Net Earnings -$3.581B $136.0M
YoY Change -2733.09% -2.16%
Net Earnings / Revenue -118.69% 2.47%
Basic Earnings Per Share -$11.53 $0.44
Diluted Earnings Per Share -$11.53 $0.44
COMMON SHARES
Basic Shares Outstanding 310.6M 309.1M shares
Diluted Shares Outstanding 310.6M 311.4M shares

Balance Sheet

Concept 2020 Q2 2019 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.523B $737.0M
YoY Change 106.65% -51.86%
Cash & Equivalents $1.523B $737.0M
Short-Term Investments
Other Short-Term Assets $519.0M $633.0M
YoY Change -18.01% -0.78%
Inventory $4.923B $5.498B
Prepaid Expenses $519.0M $633.0M
Receivables $170.0M $237.0M
Other Receivables $0.00 $0.00
Total Short-Term Assets $7.135B $7.105B
YoY Change 0.42% -7.85%
LONG-TERM ASSETS
Property, Plant & Equipment $6.425B $6.499B
YoY Change -1.14% -1.16%
Goodwill $838.0M $3.908B
YoY Change -78.56% 0.0%
Intangibles $842.0M $844.0M
YoY Change -0.24% 73.66%
Long-Term Investments
YoY Change
Other Assets $1.072B $712.0M
YoY Change 50.56% -19.91%
Total Long-Term Assets $11.45B $14.19B
YoY Change -19.34% 19.67%
TOTAL ASSETS
Total Short-Term Assets $7.135B $7.105B
Total Long-Term Assets $11.45B $14.19B
Total Assets $18.58B $21.30B
YoY Change -12.75% 8.83%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $2.196B $1.950B
YoY Change 12.62% -4.65%
Accrued Expenses $2.757B $2.846B
YoY Change -3.13%
Deferred Revenue $732.0M $696.0M
YoY Change 5.17% -5.43%
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $739.0M $42.00M
YoY Change 1659.52% 68.0%
Total Short-Term Liabilities $5.772B $5.019B
YoY Change 15.0% -1.14%
LONG-TERM LIABILITIES
Long-Term Debt $4.918B $4.705B
YoY Change 4.53% -19.67%
Other Long-Term Liabilities $1.327B $1.258B
YoY Change 5.48% -24.4%
Total Long-Term Liabilities $1.327B $1.258B
YoY Change 5.48% -24.4%
TOTAL LIABILITIES
Total Short-Term Liabilities $5.772B $5.019B
Total Long-Term Liabilities $1.327B $1.258B
Total Liabilities $7.099B $6.277B
YoY Change 13.1% -6.88%
SHAREHOLDERS EQUITY
Retained Earnings
YoY Change
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $2.697B $6.323B
YoY Change
Total Liabilities & Shareholders Equity $18.58B $21.30B
YoY Change -12.75% 8.83%

Cashflow Statement

Concept 2020 Q2 2019 Q2
OPERATING ACTIVITIES
Net Income -$3.581B $136.0M
YoY Change -2733.09% -2.16%
Depreciation, Depletion And Amortization $237.0M $236.0M
YoY Change 0.42% 0.43%
Cash From Operating Activities -$164.0M -$38.00M
YoY Change 331.58% -111.8%
INVESTING ACTIVITIES
Capital Expenditures $122.0M $204.0M
YoY Change -40.2% 54.55%
Acquisitions
YoY Change
Other Investing Activities -$26.00M $7.000M
YoY Change -471.43% -163.64%
Cash From Investing Activities -$113.0M -$237.0M
YoY Change -52.32% 51.92%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net $4.000M $3.000M
YoY Change 33.33%
Cash From Financing Activities 1.148B -$158.0M
YoY Change -826.58% 59.6%
NET CHANGE
Cash From Operating Activities -164.0M -$38.00M
Cash From Investing Activities -113.0M -$237.0M
Cash From Financing Activities 1.148B -$158.0M
Net Change In Cash 871.0M -$433.0M
YoY Change -301.15% -746.27%
FREE CASH FLOW
Cash From Operating Activities -$164.0M -$38.00M
Capital Expenditures $122.0M $204.0M
Free Cash Flow -$286.0M -$242.0M
YoY Change 18.18% -227.37%

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<div style="line-height:120%;padding-top:12px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Nature of Operations</span></div><div style="line-height:120%;padding-top:6px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">Macy's, Inc. and subsidiaries (the "Company") is an omnichannel retail organization operating stores, websites and mobile applications under three brands (Macy's, Bloomingdale's and bluemercury) that sell a wide range of merchandise, including apparel and accessories (men's, women's and kids'), cosmetics, home furnishings and other consumer goods. The Company has stores in </span><span style="font-family:inherit;font-size:10pt;"><span>43</span></span><span style="font-family:inherit;font-size:10pt;"> states, the District of Columbia, Guam and Puerto Rico. As of </span><span style="font-family:inherit;font-size:10pt;">May 2, 2020</span><span style="font-family:inherit;font-size:10pt;">, the Company's operations were conducted through Macy's, Bloomingdale's, Bloomingdale's The Outlet, Macy's Backstage and bluemercury. </span></div><div style="line-height:120%;padding-top:6px;text-align:left;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">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. </span></div><div style="line-height:120%;padding-top:6px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">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 </span><span style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">February 1, 2020</span><span style="font-family:inherit;font-size:10pt;"> (the "2019 10-K"). The accompanying Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and notes thereto in the 2019 10-K.</span></div>
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<div style="line-height:120%;padding-top:12px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Use of Estimates</span></div><div style="line-height:120%;padding-top:6px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">The preparation of financial statements in conformity with United States generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company considered the novel coronavirus ("COVID-19") related impacts to its estimates, as appropriate, within its Consolidated Financial Statements and there may be changes to those estimates in future periods. The Company believes that the accounting estimates are appropriate after giving consideration to the increased uncertainties surrounding the severity and duration of the COVID-19 pandemic. Such estimates and assumptions are subject to inherent uncertainties, which may result in actual amounts differing from reported amounts.</span></div><div style="line-height:120%;padding-top:6px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">The Consolidated Financial Statements for the </span><span style="font-family:inherit;font-size:10pt;">13 weeks ended</span><span style="font-family:inherit;font-size:10pt;"> </span><span style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">May 2, 2020</span><span style="font-family:inherit;font-size:10pt;"> and </span><span style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">May 4, 2019</span><span style="font-family:inherit;font-size:10pt;">, 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.</span></div>
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