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 10K, 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 or the

Macy's, Inc., website:

.

2. Search for Macy's. Access its 10K filing for the year ended February 1, 2014. Search or

scroll to find the financial statements and related notes.

3. What is the total debt (including current liabilities and deferred taxes) reported in the

balance sheet? How has that amount changed over the most recent two years?

4. Page 849

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. Has

the proportion of debt financing and equity financing changed recently?

5. Does Macy's obtain more financing through notes, bonds, or commercial paper? Are

required debt payments increasing or decreasing over time? Is any shortterm debt classified

as longterm? Why?

6.

Note 6: Financing

includes the following statement: "On November 20, 2012, the Company

issued $750 million aggregate principal amount of 2.875% senior unsecured notes due 2023

and $250 million aggregate principal amount of 4.3% senior unsecured notes due 2043. This

and $250 million aggregate principal amount of 4.3% senior unsecured notes due 2043. This

debt was used to pay for the notes repurchased on November 28, 2012 described above, and

to retire $298 million of 5.875% senior unsecured notes that matured in January 2013."

Under some circumstances, Macy's could have reported the amounts due in 2013 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 (

asc.fasb.org

), from your school library, or some other source. Determine

the criteria for reporting currently payable debt as longterm. What is the specific

codification citation that Macy's would rely on in applying that accounting treatment?