CONSOLIDATED BALANCE SHEETS (millions) January 28, 2017 January 30, 2016 ASSETS $ 1,297 $ 1,109 558 522 5,399 408 5,506 479 7,626 7,017 3,897 498 7,652 7,616 3,897 514 897 813 S 19,851 $ 20,576 $ $ 642 Current Assets: Cash and cash equivalents Receivables Merchandise inventories Prepaid expenses and other current assets Total Current Assets Property and Equipment - net Goodwill Other Intangible Assets - net Other Assets Total Assets LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Short-term debt Merchandise accounts payable Accounts payable and accrued liabilities Income taxes Total Current Liabilities Long-Term Debt Deferred Income Taxes Other Liabilities Shareholders' Equity: Common stock (304.1 and 310.3 shares outstanding) Additional paid-in capital Accumulated equity Treasury stock Accumulated other comprehensive loss Total Macy's, Inc. Shareholders' Equity Noncontrolling interest Total Shareholders' Equity Total Liabilities and Shareholders' Equity 309 1,423 3,563 352 1,526 3,333 227 5,647 6,562 1,443 1,877 5,728 6,995 1,477 2,123 3 3 617 6,088 (1,489) (896) 4,323 (1) 4,322 621 6,334 (1,665) (1,043) 4,250 3 4,253 20,576 $ 19,851 $ EDGAR, the Electronic Data Gathering. Analysis, and Retrieval system, performs automated collection, validation, indexing, acceptance and forwarding of submissions by companies and others who are required by law to file forms with the U.S. Securities and Exchange Commission (SEC). All publicly traded domestic companies use EDGAR to make the majority of their filings. (Some foreign companies do so voluntarily.) Form 10-K, including the annual report, is required to be filed on EDGAR. The SEC makes this information available on the Internet. Required: 1. Access EDGAR on the Internet at www.sec.gov or from Investor Relations at the Macy's, Inc. (www.macys.com). Search for Macy's. Access its 10-K filing for the year ended January 30, 2017. Search or scroll to find the financial statements and related notes. What is the total debt (including current liabilities and deferred taxes) reported in the balance sheet in the most recent two years? 2. Compare the total liabilities (including current liabilities and deferred taxes) with the shareholders' equity and calculate the debt to equity ratio for the most recent two years. 3. Does Macy's obtain more financing through notes, bonds, or commercial paper? Are required debt payments increasing or decreasing over the next three years? 4. Does Macy's classify any short-term debt as long-term? 5. Note 6: Financing includes the following statement: On November 18, 2014, the Company issued $550 million aggregate principal amount of 4.5% senior notes due 2034. This debt was used to pay for the redemption of the $407 million of 7.875% senior notes due 2015 described above. Under some circumstances, Macy's could have reported the amounts due in 2015 as long-term debt at the end of the previous year even though these amounts were due within the coming year. Obtain the relevant authoritative literature on classification of debt expected to be financed using the FASB Accounting Standards Codification. You might gain access from the FASB website (www.fasb.org), from your school library, or some other source. Determine the criteria for reporting currently payable debt as long-term. What is the specific nine-digit Codification citation (XXX-XX-XX-XX) that Macy's would rely on in applying that accounting treatment? CONSOLIDATED BALANCE SHEETS (millions) January 28, 2017 January 30, 2016 ASSETS $ 1,297 $ 1,109 558 522 5,399 408 5,506 479 7,626 7,017 3,897 498 7,652 7,616 3,897 514 897 813 S 19,851 $ 20,576 $ $ 642 Current Assets: Cash and cash equivalents Receivables Merchandise inventories Prepaid expenses and other current assets Total Current Assets Property and Equipment - net Goodwill Other Intangible Assets - net Other Assets Total Assets LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Short-term debt Merchandise accounts payable Accounts payable and accrued liabilities Income taxes Total Current Liabilities Long-Term Debt Deferred Income Taxes Other Liabilities Shareholders' Equity: Common stock (304.1 and 310.3 shares outstanding) Additional paid-in capital Accumulated equity Treasury stock Accumulated other comprehensive loss Total Macy's, Inc. Shareholders' Equity Noncontrolling interest Total Shareholders' Equity Total Liabilities and Shareholders' Equity 309 1,423 3,563 352 1,526 3,333 227 5,647 6,562 1,443 1,877 5,728 6,995 1,477 2,123 3 3 617 6,088 (1,489) (896) 4,323 (1) 4,322 621 6,334 (1,665) (1,043) 4,250 3 4,253 20,576 $ 19,851 $ EDGAR, the Electronic Data Gathering. Analysis, and Retrieval system, performs automated collection, validation, indexing, acceptance and forwarding of submissions by companies and others who are required by law to file forms with the U.S. Securities and Exchange Commission (SEC). All publicly traded domestic companies use EDGAR to make the majority of their filings. (Some foreign companies do so voluntarily.) Form 10-K, including the annual report, is required to be filed on EDGAR. The SEC makes this information available on the Internet. Required: 1. Access EDGAR on the Internet at www.sec.gov or from Investor Relations at the Macy's, Inc. (www.macys.com). Search for Macy's. Access its 10-K filing for the year ended January 30, 2017. Search or scroll to find the financial statements and related notes. What is the total debt (including current liabilities and deferred taxes) reported in the balance sheet in the most recent two years? 2. Compare the total liabilities (including current liabilities and deferred taxes) with the shareholders' equity and calculate the debt to equity ratio for the most recent two years. 3. Does Macy's obtain more financing through notes, bonds, or commercial paper? Are required debt payments increasing or decreasing over the next three years? 4. Does Macy's classify any short-term debt as long-term? 5. Note 6: Financing includes the following statement: On November 18, 2014, the Company issued $550 million aggregate principal amount of 4.5% senior notes due 2034. This debt was used to pay for the redemption of the $407 million of 7.875% senior notes due 2015 described above. Under some circumstances, Macy's could have reported the amounts due in 2015 as long-term debt at the end of the previous year even though these amounts were due within the coming year. Obtain the relevant authoritative literature on classification of debt expected to be financed using the FASB Accounting Standards Codification. You might gain access from the FASB website (www.fasb.org), from your school library, or some other source. Determine the criteria for reporting currently payable debt as long-term. What is the specific nine-digit Codification citation (XXX-XX-XX-XX) that Macy's would rely on in applying that accounting treatment