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 Bluemercury, Inc., FDS Bank, 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, Macy's Merchandising Group International (Hong Kong) Limited, and Macy's China 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 Statements of Comprehensive Income for the 13 and 26 weeks ended August 3, 2019 and August 4, 2018, Condensed Consolidating Balance Sheets as of August 3, 2019, August 4, 2018 and February 2, 2019, and the related Condensed Consolidating Statements of Cash Flows for the 26 weeks ended August 3, 2019 and August 4, 2018 are presented on the following pages.



	Parent		Subsidiary Issuer			Other Subsidiaries			Consolidating Adjustments			Consolidated
Net sales	$	—	$	2,219		$	4,416		$	(1,089	)	$	5,546
Credit card revenues (expense), net	—		(2		)	178			—			176

Cost of sales	—		(1,341		)	(3,143		)	1,089			(3,395		)
Selling, general and administrative expenses	—		(872		)	(1,305		)	—			(2,177		)
Gains on sale of real estate	—		—			7			—			7
Impairment and other costs	—		—			(2		)	—			(2		)
Operating income	—		4			151			—			155
Benefit plan income, net	—		3			5			—			8
Interest (expense) income, net:
External	4		(52		)	1			—			(47		)
Intercompany	—		(18		)	18			—			—
Equity in earnings (loss) of subsidiaries	82		(108		)	—			26			—
Income (loss) before income taxes	86		(171		)	175			26			116
Federal, state and local income tax benefit (expense)	—		7			(37		)	—			(30		)
Net income (loss)	86		(164		)	138			26			86
Net loss attributable to noncontrolling interest	—		—			—			—			—
Net income (loss) attributable to Macy's, Inc. shareholders	$	86	$	(164	)	$	138		$	26		$	86
Comprehensive income (loss)	$	91	$	(159	)	$	142		$	17		$	91
Comprehensive loss attributable to noncontrolling interest	—		—			—			—			—
Comprehensive income (loss) attributable to Macy's, Inc. shareholders	$	91	$	(159	)	$	142		$	17		$	91



	Parent			Subsidiary Issuer			Other Subsidiaries			Consolidating Adjustments			Consolidated
Net sales	$	—		$	2,072		$	4,914		$	(1,414	)	$	5,572
Credit card revenues, net	—			3			183			—			186

Cost of sales	—			(1,271		)	(3,463		)	1,414			(3,320		)
Selling, general and administrative expenses	—			(812		)	(1,352		)	—			(2,164		)
Gains on sale of real estate	—			19			27			—			46
Impairment and other costs	—			2			(19		)	—			(17		)
Operating income	—			13			290			—			303
Benefit plan income, net	—			4			7			—			11
Settlement charges	(6		)	(16		)	(28		)	—			(50		)
Interest (expense) income, net:
External	5			(69		)	2			—			(62		)
Intercompany	—			(17		)	17			—			—
Losses on early retirement of debt	—			(5		)	—			—			(5		)
Equity in earnings of subsidiaries	167			8			—			(175		)	—
Income (loss) before income taxes	166			(82		)	288			(175		)	197
Federal, state and local income tax benefit (expense)	—			30			(63		)	—			(33		)
Net income (loss)	166			(52		)	225			(175		)	164
Net loss attributable to noncontrolling interest	—			—			2			—			2
Net income (loss) attributable to Macy's, Inc. shareholders	$	166		$	(52	)	$	227		$	(175	)	$	166
Comprehensive income (loss)	$	186		$	(35	)	$	236		$	(203	)	$	184
Comprehensive loss attributable to noncontrolling interest	—			—			2			—			2
Comprehensive income (loss) attributable to Macy's, Inc. shareholders	$	186		$	(35	)	$	238		$	(203	)	$	186



	Parent			Subsidiary Issuer			Other Subsidiaries			Consolidating Adjustments			Consolidated
Net sales	$	—		$	4,373		$	9,184		$	(2,507	)	$	11,050
Credit card revenues (expense), net	—			(5		)	353			—			348

Cost of sales	—			(2,682		)	(6,623		)	2,507			(6,798		)
Selling, general and administrative expenses	1			(1,674		)	(2,614		)	—			(4,287		)
Gains on sale of real estate	—			24			25			—			49
Impairment and other costs	—			—			(3		)	—			(3		)
Operating income	1			36			322			—			359
Benefit plan income, net	—			6			9			—			15
Interest (expense) income, net:
External	9			(105		)	2			—			(94		)
Intercompany	—			(37		)	37			—			—
Equity in earnings (loss) of subsidiaries	214			(138		)	—			(76		)	—
Income (loss) before income taxes	224			(238		)	370			(76		)	280
Federal, state and local income tax benefit (expense)	(1		)	31			(87		)	—			(57		)
Net income (loss)	223			(207		)	283			(76		)	223
Net loss attributable to noncontrolling interest	—			—			—			—			—
Net income (loss) attributable to Macy's, Inc. shareholders	$	223		$	(207	)	$	283		$	(76	)	$	223
Comprehensive income (loss)	$	234		$	(197	)	$	291		$	(94	)	$	234
Comprehensive loss attributable to noncontrolling interest	—			—			—			—			—
Comprehensive income (loss) attributable to Macy's, Inc. shareholders	$	234		$	(197	)	$	291		$	(94	)	$	234



	Parent			Subsidiary Issuer			Other Subsidiaries			Consolidating Adjustments			Consolidated
Net sales	$	—		$	4,081		$	10,277		$	(3,246	)	$	11,112
Credit card revenues (expense), net	—			(3		)	346			—			343

Cost of sales	—			(2,591		)	(7,356		)	3,246			(6,701		)
Selling, general and administrative expenses	—			(1,641		)	(2,606		)	—			(4,247		)
Gains on sale of real estate	—			42			28			—			70
Impairment and other costs	—			2			(38		)	—			(36		)
Operating income (loss)	—			(110		)	651			—			541
Benefit plan income, net	—			8			14			—			22
Settlement charges	(6		)	(16		)	(28		)	—			(50		)
Interest (expense) income, net:
External	9			(139		)	2			—			(128		)
Intercompany	—			(36		)	36			—			—
Losses on early retirement of debt	—			(5		)	—			—			(5		)
Equity in earnings of subsidiaries	304			109			—			(413		)	—
Income (loss) before income taxes	307			(189		)	675			(413		)	380
Federal, state and local income tax benefit (expense)	(1		)	67			(150		)	—			(84		)
Net income (loss)	306			(122		)	525			(413		)	296
Net loss attributable to noncontrolling interest	—			—			10			—			10
Net income (loss) attributable to Macy's, Inc. shareholders	$	306		$	(122	)	$	535		$	(413	)	$	306
Comprehensive income (loss)	$	333		$	(99	)	$	540		$	(451	)	$	323
Comprehensive loss attributable to noncontrolling interest	—			—			10			—			10
Comprehensive income (loss) attributable to Macy's, Inc. shareholders	$	333		$	(99	)	$	550		$	(451	)	$	333



	Parent		Subsidiary Issuer		Other Subsidiaries		Consolidating Adjustments			Consolidated
ASSETS:
Current Assets:
Cash and cash equivalents	$	320	$	100	$	254	$	—		$	674
Receivables	1		44		195		—			240
Merchandise inventories	—		2,138		2,891		—			5,029
Prepaid expenses and other current assets	—		139		464		—			603
Income taxes	39		—		—		(39		)	—
Total Current Assets	360		2,421		3,804		(39		)	6,546
Property and Equipment – net	—		3,162		3,321		—			6,483
Right of Use Assets	—		660		1,976		—			2,636
Goodwill	—		3,326		582		—			3,908
Other Intangible Assets – net	—		4		436		—			440
Other Assets	—		39		689		—			728
Deferred Income Taxes	9		—		—		(9		)	—
Intercompany Receivable	2,564		—		643		(3,207		)	—
Investment in Subsidiaries	3,484		2,957		—		(6,441		)	—
Total Assets	$	6,417	$	12,569	$	11,451	$	(9,696	)	$	20,741
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Current Liabilities:
Short-term debt	$	—	$	6	$	—	$	—		$	6
Merchandise accounts payable	—		717		957		—			1,674
Accounts payable and accrued liabilities	74		754		1,911		—			2,739
Income taxes	—		47		12		(39		)	20
Total Current Liabilities	74		1,524		2,880		(39		)	4,439
Long-Term Debt	—		4,680		—		—			4,680
Long-Term Lease Liabilities	—		594		2,242		—			2,836
Intercompany Payable	—		3,207		—		(3,207		)	—
Deferred Income Taxes	—		643		572		(9		)	1,206
Other Liabilities	28		364		873		—			1,265
Shareholders' Equity:
Macy's, Inc.	6,315		1,557		4,884		(6,441		)	6,315
Noncontrolling Interest	—		—		—		—			—
Total Shareholders' Equity	6,315		1,557		4,884		(6,441		)	6,315
Total Liabilities and Shareholders' Equity	$	6,417	$	12,569	$	11,451	$	(9,696	)	$	20,741



	Parent		Subsidiary Issuer		Other Subsidiaries			Consolidating Adjustments			Consolidated
ASSETS:
Current Assets:
Cash and cash equivalents	$	744	$	66	$	258		$	—		$	1,068
Receivables	1		43		217			—			261
Merchandise inventories	—		2,121		2,835			—			4,956
Prepaid expenses and other current assets	—		135		445			—			580
Income taxes	46		—		—			(46		)	—
Total Current Assets	791		2,365		3,755			(46		)	6,865
Property and Equipment – net	—		3,253		3,294			—			6,547
Goodwill	—		3,326		582			—			3,908
Other Intangible Assets – net	—		41		442			—			483
Other Assets	—		89		776			—			865
Deferred Income Taxes	10		—		—			(10		)	—
Intercompany Receivable	1,347		—		1,038			(2,385		)	—
Investment in Subsidiaries	3,876		3,140		—			(7,016		)	—
Total Assets	$	6,024	$	12,214	$	9,887		$	(9,457	)	$	18,668
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Current Liabilities:
Short-term debt	$	—	$	42	$	21		$	—		$	63
Merchandise accounts payable	—		788		1,007			—			1,795
Accounts payable and accrued liabilities	84		777		1,747			—			2,608
Income taxes	—		33		28			(46		)	15
Total Current Liabilities	84		1,640		2,803			(46		)	4,481
Long-Term Debt	—		5,457		16			—			5,473
Intercompany Payable	—		2,385		—			(2,385		)	—
Deferred Income Taxes	—		588		616			(10		)	1,194
Other Liabilities	24		441		1,161			—			1,626
Shareholders' Equity:
Macy's, Inc.	5,916		1,703		5,313			(7,016		)	5,916
Noncontrolling Interest	—		—		(22		)	—			(22		)
Total Shareholders' Equity	5,916		1,703		5,291			(7,016		)	5,894
Total Liabilities and Shareholders' Equity	$	6,024	$	12,214	$	9,887		$	(9,457	)	$	18,668



	Parent		Subsidiary Issuer		Other Subsidiaries		Consolidating Adjustments			Consolidated
ASSETS:
Current Assets:
Cash and cash equivalents	$	889	$	59	$	214	$	—		$	1,162
Receivables	—		68		332		—			400
Merchandise inventories	—		2,342		2,921		—			5,263
Prepaid expenses and other current assets	—		143		477		—			620
Total Current Assets	889		2,612		3,944		—			7,445
Property and Equipment – net	—		3,287		3,350		—			6,637
Goodwill	—		3,326		582		—			3,908
Other Intangible Assets – net	—		38		440		—			478
Other Assets	—		41		685		—			726
Deferred Income Taxes	12		—		—		(12		)	—
Intercompany Receivable	1,713		—		1,390		(3,103		)	—
Investment in Subsidiaries	4,030		3,119		—		(7,149		)	—
Total Assets	$	6,644	$	12,423	$	10,391	$	(10,264	)	$	19,194
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Current Liabilities:
Short-term debt	$	—	$	42	$	1	$	—		$	43
Merchandise accounts payable	—		713		942		—			1,655
Accounts payable and accrued liabilities	170		950		2,246		—			3,366
Income taxes	14		52		102		—			168
Total Current Liabilities	184		1,757		3,291		—			5,232
Long-Term Debt	—		4,692		16		—			4,708
Intercompany Payable	—		3,103		—		(3,103		)	—
Deferred Income Taxes	—		679		571		(12		)	1,238
Other Liabilities	24		406		1,150		—			1,580
Shareholders' Equity:
Macy's, Inc.	6,436		1,786		5,363		(7,149		)	6,436
Noncontrolling Interest	—		—		—		—			—
Total Shareholders' Equity	6,436		1,786		5,363		(7,149		)	6,436
Total Liabilities and Shareholders' Equity	$	6,644	$	12,423	$	10,391	$	(10,264	)	$	19,194



	Parent			Subsidiary Issuer			Other Subsidiaries			Consolidating Adjustments			Consolidated
Cash flows from operating activities:
Net income (loss)	$	223		$	(207	)	$	283		$	(76	)	$	223
Impairment and other costs	—			—			3			—			3
Equity in loss (earnings) of subsidiaries	(214		)	138			—			76			—
Dividends received from subsidiaries	606			—			—			(606		)	—
Depreciation and amortization	—			169			303			—			472
Gains on sale of real estate	—			(24		)	(25		)	—			(49		)
Changes in assets, liabilities and other items not separately identified	(52		)	47			(294		)	—			(299		)
Net cash provided by operating activities	563			123			270			(606		)	350
Cash flows from investing activities:
Purchase of property and equipment and capitalized software, net of dispositions	—			(97		)	(345		)	—			(442		)
Other, net	—			(11		)	(1		)	—			(12		)
Net cash used by investing activities	—			(108		)	(346		)	—			(454		)
Cash flows from financing activities:
Debt repaid, including debt issuance costs	—			(42		)	—			—			(42		)
Dividends paid	(233		)	—			(606		)	606			(233		)
Issuance of common stock	6			—			—			—			6
Intercompany activity, net	(813		)	93			720			—			—
Other, net	(92		)	(21		)	(15		)	—			(128		)
Net cash provided (used) by financing activities	(1,132		)	30			99			606			(397		)
Net increase (decrease) in cash, cash equivalents and restricted cash	(569		)	45			23			—			(501		)
Cash, cash equivalents and restricted cash at beginning of period	889			64			295			—			1,248
Cash, cash equivalents and restricted cash at end of period	$	320		$	109		$	318		$	—		$	747



	Parent			Subsidiary Issuer			Other Subsidiaries			Consolidating Adjustments			Consolidated
Cash flows from operating activities:
Net income (loss)	$	306		$	(122	)	$	525		$	(413	)	$	296
Impairment and other costs	—			(2		)	38			—			36
Settlement charges	6			16			28			—			50
Equity in earnings of subsidiaries	(304		)	(109		)	—			413			—
Dividends received from subsidiaries	492			—			—			(492		)	—
Depreciation and amortization	—			165			305			—			470
Gains on sale of real estate	—			(42		)	(28		)	—			(70		)
Changes in assets, liabilities and other items not separately identified	(154		)	298			(381		)	(1		)	(238		)
Net cash provided by operating activities	346			204			487			(493		)	544
Cash flows from investing activities:
Purchase of property and equipment and capitalized software, net of dispositions	—			(49		)	(271		)	—			(320		)
Other, net	—			(15		)	(28		)	51			8
Net cash used by investing activities	—			(64		)	(299		)	51			(312		)
Cash flows from financing activities:
Debt repaid	—			(306		)	(1		)	(50		)	(357		)
Dividends paid	(232		)	—			(492		)	492			(232		)
Issuance of common stock	38			—			—			—			38
Proceeds from noncontrolling interest	—			—			5			—			5
Intercompany activity, net	(441		)	162			279			—			—
Other, net	(76		)	(9		)	(5		)	—			(90		)
Net cash used by financing activities	(711		)	(153		)	(214		)	442			(636		)
Net decrease in cash, cash equivalents and restricted cash	(365		)	(13		)	(26		)	—			(404		)
Cash, cash equivalents and restricted cash at beginning of period	1,109			79			325			—			1,513
Cash, cash equivalents and restricted cash at end of period	$	744		$	66		$	299		$	—		$	1,109