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 39 weeks ended November 2, 2019 and November 3, 2018, Condensed Consolidating Balance Sheets as of November 2, 2019, November 3, 2018 and February 2, 2019, and the related Condensed Consolidating Statements of Cash Flows for the 39 weeks ended November 2, 2019 and November 3, 2018 are presented on the following pages.



	Parent			Subsidiary Issuer			Other Subsidiaries			Consolidating Adjustments			Consolidated
Net sales	$	—		$	2,044		$	5,245		$	(2,116	)	$	5,173
Credit card revenues (expense), net	—			(2		)	185			—			183

Cost of sales	—			(1,230		)	(3,992		)	2,116			(3,106		)
Selling, general and administrative expenses	—			(870		)	(1,332		)	—			(2,202		)
Gains on sale of real estate	—			8			9			—			17
Restructuring and other costs	—			(1		)	(12		)	—			(13		)
Operating income (loss)	—			(51		)	103			—			52
Benefit plan income, net	—			3			5			—			8
Settlement charges	—			—			(12		)	—			(12		)
Interest (expense) income, net:
External	3			(52		)	1			—			(48		)
Intercompany	—			(18		)	18			—			—
Equity in loss of subsidiaries	(3		)	(125		)	—			128			—
Income (loss) before income taxes	—			(243		)	115			128			—
Federal, state and local income tax benefit (expense)	2			30			(30		)	—			2
Net income (loss)	2			(213		)	85			128			2
Net loss attributable to noncontrolling interest	—			—			—			—			—
Net income (loss) attributable to Macy's, Inc. shareholders	$	2		$	(213	)	$	85		$	128		$	2
Comprehensive income (loss)	$	(35	)	$	(249	)	$	65		$	184		$	(35	)
Comprehensive loss attributable to noncontrolling interest	—			—			—			—			—
Comprehensive income (loss) attributable to Macy's, Inc. shareholders	$	(35	)	$	(249	)	$	65		$	184		$	(35	)



	Parent			Subsidiary Issuer			Other Subsidiaries			Consolidating Adjustments			Consolidated
Net sales	$	—		$	2,030		$	6,185		$	(2,811	)	$	5,404
Credit card revenues, net	—			—			185			—			185

Cost of sales	—			(1,266		)	(4,771		)	2,811			(3,226		)
Selling, general and administrative expenses	—			(883		)	(1,372		)	—			(2,255		)
Gains on sale of real estate	—			41			1			—			42
Restructuring and other costs	—			—			(3		)	—			(3		)
Operating income (loss)	—			(78		)	225			—			147
Benefit plan income, net	—			3			6			—			9
Settlement charges	—			(8		)	(15		)	—			(23		)
Interest (expense) income, net:
External	4			(64		)	1			—			(59		)
Intercompany	—			(18		)	18			—			—
Equity in earnings (loss) of subsidiaries	59			(58		)	—			(1		)	—
Income (loss) before income taxes	63			(223		)	235			(1		)	74
Federal, state and local income tax benefit (expense)	(1		)	57			(68		)	—			(12		)
Net income (loss)	62			(166		)	167			(1		)	62
Net loss attributable to noncontrolling interest	—			—			—			—			—
Net income (loss) attributable to Macy's, Inc. shareholders	$	62		$	(166	)	$	167		$	(1	)	$	62
Comprehensive income (loss)	$	(37	)	$	(257	)	$	106		$	151		$	(37	)
Comprehensive loss attributable to noncontrolling interest	—			—			—			—			—
Comprehensive income (loss) attributable to Macy's, Inc. shareholders	$	(37	)	$	(257	)	$	106		$	151		$	(37	)



	Parent		Subsidiary Issuer			Other Subsidiaries			Consolidating Adjustments			Consolidated
Net sales	$	—	$	6,418		$	14,428		$	(4,623	)	$	16,223
Credit card revenues (expense), net	—		(8		)	539			—			531

Cost of sales	—		(3,913		)	(10,615		)	4,623			(9,905		)
Selling, general and administrative expenses	1		(2,544		)	(3,946		)	—			(6,489		)
Gains on sale of real estate	—		32			35			—			67
Impairment, restructuring and other costs	—		(1		)	(15		)	—			(16		)
Operating income (loss)	1		(16		)	426			—			411
Benefit plan income, net	—		9			14			—			23
Settlement charges	—		—			(12		)	—			(12		)
Interest (expense) income, net:
External	11		(157		)	3			—			(143		)
Intercompany	—		(55		)	55			—			—
Equity in earnings (loss) of subsidiaries	212		(264		)	—			52			—
Income (loss) before income taxes	224		(483		)	486			52			279
Federal, state and local income tax benefit (expense)	—		61			(116		)	—			(55		)
Net income (loss)	224		(422		)	370			52			224
Net loss attributable to noncontrolling interest	—		—			—			—			—
Net income (loss) attributable to Macy's, Inc. shareholders	$	224	$	(422	)	$	370		$	52		$	224
Comprehensive income (loss)	$	198	$	(448	)	$	358		$	90		$	198
Comprehensive loss attributable to noncontrolling interest	—		—			—			—			—
Comprehensive income (loss) attributable to Macy's, Inc. shareholders	$	198	$	(448	)	$	358		$	90		$	198



	Parent			Subsidiary Issuer			Other Subsidiaries			Consolidating Adjustments			Consolidated
Net sales	$	—		$	6,110		$	16,462		$	(6,056	)	$	16,516
Credit card revenues (expense), net	—			(3		)	531			—			528

Cost of sales	—			(3,857		)	(12,126		)	6,056			(9,927		)
Selling, general and administrative expenses	—			(2,522		)	(3,979		)	—			(6,501		)
Gains on sale of real estate	—			83			28			—			111
Impairment, restructuring and other costs	—			—			(39		)	—			(39		)
Operating income (loss)	—			(189		)	877			—			688
Benefit plan income, net	—			12			19			—			31
Settlement charges	(5		)	(24		)	(44		)	—			(73		)
Interest (expense) income, net:
External	13			(203		)	3			—			(187		)
Intercompany	—			(54		)	54			—			—
Losses on early retirement of debt	—			(5		)	—			—			(5		)
Equity in earnings of subsidiaries	362			51			—			(413		)	—
Income (loss) before income taxes	370			(412		)	909			(413		)	454
Federal, state and local income tax benefit (expense)	(2		)	123			(217		)	—			(96		)
Net income (loss)	368			(289		)	692			(413		)	358
Net loss attributable to noncontrolling interest	—			—			10			—			10
Net income (loss) attributable to Macy's, Inc. shareholders	$	368		$	(289	)	$	702		$	(413	)	$	368
Comprehensive income (loss)	$	296		$	(357	)	$	646		$	(299	)	$	286
Comprehensive loss attributable to noncontrolling interest	—			—			10			—			10
Comprehensive income (loss) attributable to Macy's, Inc. shareholders	$	296		$	(357	)	$	656		$	(299	)	$	296



	Parent		Subsidiary Issuer		Other Subsidiaries		Consolidating Adjustments			Consolidated
ASSETS:
Current Assets:
Cash and cash equivalents	$	42	$	73	$	186	$	—		$	301
Receivables	—		30		145		—			175
Merchandise inventories	—		3,145		4,111		—			7,256
Income taxes	96		—		—		(95		)	1
Prepaid expenses and other current assets	—		126		442		—			568
Total Current Assets	138		3,374		4,884		(95		)	8,301
Property and Equipment – net	—		3,174		3,384		—			6,558
Right of Use Assets	—		653		1,943		—			2,596
Goodwill	—		3,326		582		—			3,908
Other Intangible Assets – net	—		5		435		—			440
Other Assets	—		49		695		—			744
Deferred Income Taxes	9		—		—		(9		)	—
Intercompany Receivable	2,923		—		454		(3,377		)	—
Investment in Subsidiaries	3,231		2,812		—		(6,043		)	—
Total Assets	$	6,301	$	13,393	$	12,377	$	(9,524	)	$	22,547
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Current Liabilities:
Short-term debt	$	—	$	6	$	—	$	—		$	6
Merchandise accounts payable	—		1,521		1,906		—			3,427
Accounts payable and accrued liabilities	216		835		1,995		—			3,046
Income taxes	—		51		44		(95		)	—
Total Current Liabilities	216		2,413		3,945		(95		)	6,479
Long-Term Debt	—		4,677		—					4,677
Long-Term Lease Liabilities	—		589		2,230		—			2,819
Intercompany Payable	—		3,377		—		(3,377		)	—
Deferred Income Taxes	—		654		555		(9		)	1,200
Other Liabilities	28		377		910		—			1,315
Shareholders' Equity:
Macy's, Inc.	6,057		1,306		4,737		(6,043		)	6,057
Noncontrolling Interest	—		—		—		—			—
Total Shareholders' Equity	6,057		1,306		4,737		(6,043		)	6,057
Total Liabilities and Shareholders' Equity	$	6,301	$	13,393	$	12,377	$	(9,524	)	$	22,547



	Parent		Subsidiary Issuer		Other Subsidiaries			Consolidating Adjustments			Consolidated
ASSETS:
Current Assets:
Cash and cash equivalents	$	426	$	74	$	236		$	—		$	736
Receivables	1		25		154			—			180
Merchandise inventories	—		3,112		4,035			—			7,147
Income taxes	81		—		—			(71		)	10
Prepaid expenses and other current assets	—		139		455			—			594
Total Current Assets	508		3,350		4,880			(71		)	8,667
Property and Equipment – net	—		3,244		3,328			—			6,572
Goodwill	—		3,326		582			—			3,908
Other Intangible Assets – net	—		40		441			—			481
Other Assets	—		39		694			—			733
Deferred Income Taxes	11		—		—			(11		)	—
Intercompany Receivable	1,725		—		882			(2,607		)	—
Investment in Subsidiaries	3,639		3,028		—			(6,667		)	—
Total Assets	$	5,883	$	13,027	$	10,807		$	(9,356	)	$	20,361
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Current Liabilities:
Short-term debt	$	—	$	42	$	23		$	—		$	65
Merchandise accounts payable	—		1,515		1,866			—			3,381
Accounts payable and accrued liabilities	192		874		1,932			—			2,998
Income taxes	—		40		31			(71		)	—
Total Current Liabilities	192		2,471		3,852			(71		)	6,444
Long-Term Debt	—		5,453		16			—			5,469
Intercompany Payable	—		2,607		—			(2,607		)	—
Deferred Income Taxes	—		619		577			(11		)	1,185
Other Liabilities	24		431		1,163			—			1,618
Shareholders' Equity:
Macy's, Inc.	5,667		1,446		5,221			(6,667		)	5,667
Noncontrolling Interest	—		—		(22		)	—			(22		)
Total Shareholders' Equity	5,667		1,446		5,199			(6,667		)	5,645
Total Liabilities and Shareholders' Equity	$	5,883	$	13,027	$	10,807		$	(9,356	)	$	20,361



	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)	$	224		$	(422	)	$	370		$	52		$	224
Impairment, restructuring and other costs	—			1			15			—			16
Settlement charges	—			—			12			—			12
Equity in loss (earnings) of subsidiaries	(212		)	264			—			(52		)	—
Dividends received from subsidiaries	819			—			—			(819		)	—
Depreciation and amortization	—			251			474			—			725
Gains on sale of real estate	—			(32		)	(35		)	—			(67		)
Changes in assets, liabilities and other items not separately identified	(99		)	(139		)	(500		)	—			(738		)
Net cash provided (used) by operating activities	732			(77		)	336			(819		)	172
Cash flows from investing activities:
Purchase of property and equipment and capitalized software, net of dispositions	—			(179		)	(560		)	—			(739		)
Other, net	—			(2		)	12			—			10
Net cash used by investing activities	—			(181		)	(548		)	—			(729		)
Cash flows from financing activities:
Debt repaid, including debt issuance costs	—			(45		)	—			—			(45		)
Dividends paid	(349		)	—			(819		)	819			(349		)
Issuance of common stock, net of common stock acquired	5			—			—			—			5
Intercompany activity, net	(1,161		)	239			922			—			—
Other, net	(74		)	73			50			—			49
Net cash provided (used) by financing activities	(1,579		)	267			153			819			(340		)
Net increase (decrease) in cash, cash equivalents and restricted cash	(847		)	9			(59		)	—			(897		)
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	$	42		$	73		$	236		$	—		$	351



	Parent			Subsidiary Issuer			Other Subsidiaries			Consolidating Adjustments			Consolidated
Cash flows from operating activities:
Net income (loss)	$	368		$	(289	)	$	692		$	(413	)	$	358
Impairment, restructuring and other costs	—			—			39			—			39
Settlement charges	5			24			44			—			73
Equity in earnings of subsidiaries	(362		)	(51		)	—			413			—
Dividends received from subsidiaries	689			—			—			(689		)	—
Depreciation and amortization	—			250			468			—			718
Gains on sale of real estate	—			(83		)	(28		)	—			(111		)
Changes in assets, liabilities and other items not separately identified	(191		)	115			(571		)	(1		)	(648		)
Net cash provided (used) by operating activities	509			(34		)	644			(690		)	429
Cash flows from investing activities:
Purchase of property and equipment and capitalized software, net of dispositions	—			(98		)	(458		)	—			(556		)
Other, net	—			(15		)	(29		)	51			7
Net cash used by investing activities	—			(113		)	(487		)	51			(549		)
Cash flows from financing activities:
Debt repaid	—			(310		)	(1		)	(50		)	(361		)
Dividends paid	(347		)	—			(689		)	689			(347		)
Issuance of common stock	41			—			—			—			41
Proceeds from noncontrolling interest	—			—			7			—			7
Intercompany activity, net	(803		)	378			425			—			—
Other, net	(83		)	74			53			—			44
Net cash provided (used) by financing activities	(1,192		)	142			(205		)	639			(616		)
Net decrease in cash, cash equivalents and restricted cash	(683		)	(5		)	(48		)	—			(736		)
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	$	426		$	74		$	277		$	—		$	777