Condensed Consolidating Financial Information

Certain debt obligations of the Company, which constitute debt obligations of Macy's Retail Holdings, Inc. ("Subsidiary Issuer"), a 100%-owned subsidiary of Macy's, Inc. ("Parent"), are fully and unconditionally guaranteed by Parent. In the following condensed consolidating financial statements, "Other Subsidiaries" includes all other direct subsidiaries of Parent, including FDS Bank, West 34th Street Insurance Company (prior to a merger, known separately as Leadville Insurance Company and Snowdin Insurance Company) and its subsidiary West 34th Street Insurance Company New York, Macy's Merchandising Corporation, Macy's Merchandising Group, Inc. and its subsidiaries Macy's Merchandising Group (Hong Kong) Limited, Macy's Merchandising Group Procurement, LLC, Macy's Merchandising Group International, LLC, and Macy's Merchandising Group International (Hong Kong) Limited. "Subsidiary Issuer" includes operating divisions and non-guarantor subsidiaries of the Subsidiary Issuer on an equity basis. The assets and liabilities and results of operations of the non-guarantor subsidiaries of the Subsidiary Issuer are also reflected in "Other Subsidiaries."

Condensed Consolidating Balance Sheets as of May 4, 2013, April 28, 2012 and February 2, 2013, the related Condensed Consolidating Statements of Comprehensive Income for the 13 weeks ended May 4, 2013 and April 28, 2012, and the related Condensed Consolidating Statements of Cash Flows for the 13 weeks ended May 4, 2013 and April 28, 2012 are presented on the following pages.

Condensed Consolidating Balance Sheet

As of May 4, 2013

(millions)



	Parent		Subsidiary Issuer			Other Subsidiaries		Consolidating Adjustments			Consolidated
ASSETS:
Current Assets:
Cash and cash equivalents	$	1,404	$	43		$	305	$	—		$	1,752
Receivables	—		50			245		—			295
Merchandise inventories	—		2,909			2,722		—			5,631
Prepaid expenses and other current assets	—		89			299		—			388
Income taxes	36		—			—		(36		)	—
Total Current Assets	1,440		3,091			3,571		(36		)	8,066
Property and Equipment – net	—		4,583			3,480		—			8,063
Goodwill	—		3,315			428		—			3,743
Other Intangible Assets – net	—		116			436		—			552
Other Assets	4		69			543		—			616
Intercompany Receivable	566		—			3,095		(3,661		)	—
Investment in Subsidiaries	4,109		2,660			—		(6,769		)	—
Total Assets	$	6,119	$	13,834		$	11,553	$	(10,466	)	$	21,040
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Current Liabilities:
Short-term debt	$	—	$	122		$	2	$	—		$	124
Merchandise accounts payable	—		1,124			1,302		—			2,426
Accounts payable and accrued liabilities	71		821			1,242		—			2,134
Income taxes	—		49			78		(36		)	91
Deferred income taxes	—		324			102		—			426
Total Current Liabilities	71		2,440			2,726		(36		)	5,201
Long-Term Debt	—		6,774			23		—			6,797
Intercompany Payable	—		3,661			—		(3,661		)	—
Deferred Income Taxes	8		433			799		—			1,240
Other Liabilities	69		605			1,157		—			1,831
Shareholders' Equity (Deficit)	5,971		(79		)	6,848		(6,769		)	5,971
Total Liabilities and Shareholders' Equity	$	6,119	$	13,834		$	11,553	$	(10,466	)	$	21,040

Condensed Consolidating Statement of Comprehensive Income

For the 13 Weeks Ended May 4, 2013

(millions)



	Parent			Subsidiary Issuer			Other Subsidiaries			Consolidating Adjustments			Consolidated
Net sales	$	—		$	3,034		$	5,548		$	(2,195	)	$	6,387
Cost of sales	—			(1,897		)	(4,196		)	2,182			(3,911		)
Gross margin	—			1,137			1,352			(13		)	2,476
Selling, general and administrative expenses	(3		)	(1,050		)	(1,001		)	13			(2,041		)
Operating income (loss)	(3		)	87			351			—			435
Interest (expense) income, net:
External	—			(97		)	—			—			(97		)
Intercompany	—			(40		)	40			—			—
Equity in earnings of subsidiaries	219			55			—			(274		)	—
Income before income taxes	216			5			391			(274		)	338
Federal, state and local income tax benefit (expense)	1			27			(149		)	—			(121		)
Net income	$	217		$	32		$	242		$	(274	)	$	217
Comprehensive income	$	241		$	56		$	252		$	(308	)	$	241

Condensed Consolidating Statement of Cash Flows

For the 13 Weeks Ended May 4, 2013

(millions)



	Parent			Subsidiary Issuer			Other Subsidiaries			Consolidating Adjustments			Consolidated
Cash flows from operating activities:
Net income	$	217		$	32		$	242		$	(274	)	$	217
Equity in earnings of subsidiaries	(219		)	(55		)	—			274			—
Dividends received from subsidiaries	161			—			—			(161		)	—
Depreciation and amortization	—			118			133			—			251
(Increase) decrease in working capital	(31		)	81			(290		)	—			(240		)
Other, net	9			48			13			—			70
Net cash provided by operating activities	137			224			98			(161		)	298
Cash flows from investing activities:
Purchase of property and equipment and capitalized software, net	—			(43		)	(68		)	—			(111		)
Other, net	—			—			4			—			4
Net cash used by investing activities	—			(43		)	(64		)	—			(107		)
Cash flows from financing activities:
Debt repaid	—			(5		)	—			—			(5		)
Dividends paid	(78		)	—			(161		)	161			(78		)
Common stock acquired, net of issuance of common stock	(236		)	—			—			—			(236		)
Intercompany activity, net	91			(173		)	82			—			—
Other, net	(48		)	(1		)	93			—			44
Net cash provided (used) by financing activities	(271		)	(179		)	14			161			(275		)
Net increase (decrease) in cash and cash equivalents	(134		)	2			48			—			(84		)
Cash and cash equivalents at beginning of period	1,538			41			257			—			1,836
Cash and cash equivalents at end of period	$	1,404		$	43		$	305		$	—		$	1,752

Condensed Consolidating Balance Sheet

As of April 28, 2012

(millions)



	Parent		Subsidiary Issuer			Other Subsidiaries		Consolidating Adjustments			Consolidated
ASSETS:
Current Assets:
Cash and cash equivalents	$	1,520	$	36		$	335	$	—		$	1,891
Receivables	—		46			231		—			277
Merchandise inventories	—		2,840			2,625		—			5,465
Prepaid expenses and other current assets	—		89			311		—			400
Income taxes	43		—			—		(43		)	—
Total Current Assets	1,563		3,011			3,502		(43		)	8,033
Property and Equipment – net	—		4,736			3,623		—			8,359
Goodwill	—		3,315			428		—			3,743
Other Intangible Assets – net	—		145			444		—			589
Other Assets	4		70			479		—			553
Intercompany Receivable	1,398		—			2,754		(4,152		)	—
Investment in Subsidiaries	3,228		2,508			—		(5,736		)	—
Total Assets	$	6,193	$	13,785		$	11,230	$	(9,931	)	$	21,277
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Current Liabilities:
Short-term debt	$	—	$	310		$	3	$	—		$	313
Merchandise accounts payable	—		1,106			1,240		—			2,346
Accounts payable and accrued liabilities	120		871			1,234		—			2,225
Income taxes	—		18			129		(43		)	104
Deferred income taxes	—		313			98		—			411
Total Current Liabilities	120		2,618			2,704		(43		)	5,399
Long-Term Debt	—		6,619			25		—			6,644
Intercompany Payable	—		4,152			—		(4,152		)	—
Deferred Income Taxes	7		341			780		—			1,128
Other Liabilities	33		795			1,245		—			2,073
Shareholders' Equity (Deficit)	6,033		(740		)	6,476		(5,736		)	6,033
Total Liabilities and Shareholders' Equity	$	6,193	$	13,785		$	11,230	$	(9,931	)	$	21,277

Condensed Consolidating Statement of Comprehensive Income

For the 13 Weeks Ended April 28, 2012

(millions)



	Parent			Subsidiary Issuer			Other Subsidiaries			Consolidating Adjustments			Consolidated
Net sales	$	—		$	3,041		$	5,144		$	(2,042	)	$	6,143
Cost of sales	—			(1,956		)	(3,829		)	2,028			(3,757		)
Gross margin	—			1,085			1,315			(14		)	2,386
Selling, general and administrative expenses	(2		)	(1,060		)	(947		)	14			(1,995		)
Operating income (loss)	(2		)	25			368			—			391
Interest (expense) income, net:
External	1			(113		)	—			—			(112		)
Intercompany	(1		)	(35		)	36			—			—
Equity in earnings of subsidiaries	183			63			—			(246		)	—
Income (loss) before income taxes	181			(60		)	404			(246		)	279
Federal, state and local income tax benefit (expense)	—			35			(133		)	—			(98		)
Net income (loss)	$	181		$	(25	)	$	271		$	(246	)	$	181
Comprehensive income (loss)	$	204		$	(2	)	$	281		$	(279	)	$	204

Condensed Consolidating Statement of Cash Flows

For the 13 Weeks Ended April 28, 2012

(millions)



	Parent			Subsidiary Issuer			Other Subsidiaries			Consolidating Adjustments			Consolidated
Cash flows from operating activities:
Net income (loss)	$	181		$	(25	)	$	271		$	(246	)	$	181
Equity in earnings of subsidiaries	(183		)	(63		)	—			246			—
Dividends received from subsidiaries	188			—			—			(188		)	—
Depreciation and amortization	—			118			138			—			256
(Increase) decrease in working capital	(104		)	85			(170		)	—			(189		)
Other, net	2			38			(23		)	—			17
Net cash provided by operating activities	84			153			216			(188		)	265
Cash flows from investing activities:
Purchase of property and equipment and capitalized software, net	—			(23		)	(168		)	—			(191		)
Other, net	—			—			(11		)	—			(11		)
Net cash used by investing activities	—			(23		)	(179		)	—			(202		)
Cash flows from financing activities:
Debt repaid	—			(794		)	(1		)	—			(795		)
Dividends paid	(83		)	—			(188		)	188			(83		)
Common stock acquired, net of issuance of common stock	(105		)	—			—			—			(105		)
Intercompany activity, net	(865		)	666			199			—			—
Other, net	(44		)	(4		)	32			—			(16		)
Net cash provided (used) by financing activities	(1,097		)	(132		)	42			188			(999		)
Net increase (decrease) in cash and cash equivalents	(1,013		)	(2		)	79			—			(936		)
Cash and cash equivalents at beginning of period	2,533			38			256			—			2,827
Cash and cash equivalents at end of period	$	1,520		$	36		$	335		$	—		$	1,891

Condensed Consolidating Balance Sheet

As of February 2, 2013

(millions)



	Parent		Subsidiary Issuer			Other Subsidiaries		Consolidating Adjustments			Consolidated
ASSETS:
Current Assets:
Cash and cash equivalents	$	1,538	$	41		$	257	$	—		$	1,836
Receivables	—		58			313		—			371
Merchandise inventories	—		2,804			2,504		—			5,308
Prepaid expenses and other current assets	—		97			264		—			361
Income taxes	30		—			—		(30		)	—
Total Current Assets	1,568		3,000			3,338		(30		)	7,876
Property and Equipment – net	—		4,649			3,547		—			8,196
Goodwill	—		3,315			428		—			3,743
Other Intangible Assets – net	—		124			437		—			561
Other Assets	3		71			541		—			615
Intercompany Receivable	641		—			3,190		(3,831		)	—
Investment in Subsidiaries	4,027		2,595			—		(6,622		)	—
Total Assets	$	6,239	$	13,754		$	11,481	$	(10,483	)	$	20,991
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Current Liabilities:
Short-term debt	$	—	$	121		$	3	$	—		$	124
Merchandise accounts payable	—		733			846		—			1,579
Accounts payable and accrued liabilities	119		1,023			1,468		—			2,610
Income taxes	—		69			316		(30		)	355
Deferred income taxes	—		323			84		—			407
Total Current Liabilities	119		2,269			2,717		(30		)	5,075
Long-Term Debt	—		6,783			23		—			6,806
Intercompany Payable	—		3,831			—		(3,831		)	—
Deferred Income Taxes	11		410			817		—			1,238
Other Liabilities	58		596			1,167		—			1,821
Shareholders' Equity (Deficit)	6,051		(135		)	6,757		(6,622		)	6,051
Total Liabilities and Shareholders' Equity	$	6,239	$	13,754		$	11,481	$	(10,483	)	$	20,991