<SEC-DOCUMENT>0000794367-16-000271.txt : 20160811
<SEC-HEADER>0000794367-16-000271.hdr.sgml : 20160811
<ACCEPTANCE-DATETIME>20160811091754
ACCESSION NUMBER:		0000794367-16-000271
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20160811
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20160811
DATE AS OF CHANGE:		20160811

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Macy's, Inc.
		CENTRAL INDEX KEY:			0000794367
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-DEPARTMENT STORES [5311]
		IRS NUMBER:				133324058
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0130

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-13536
		FILM NUMBER:		161823162

	BUSINESS ADDRESS:	
		STREET 1:		7 WEST SEVENTH STREET
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202
		BUSINESS PHONE:		5135797000

	MAIL ADDRESS:	
		STREET 1:		7 W SEVENTH ST
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45202

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	FEDERATED DEPARTMENT STORES INC /DE/
		DATE OF NAME CHANGE:	19950307

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	R H MACY & CO INC
		DATE OF NAME CHANGE:	19950307

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MACY ACQUIRING CORP
		DATE OF NAME CHANGE:	19861124
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>es8k08112016.htm
<DESCRIPTION>FORM 8-K FILED AUGUST 11, 2016
<TEXT>



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  <h2 style='margin:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:10.0pt;font-family:"Arial","sans-serif";color:windowtext;font-weight:bold;'>UNITED STATES</h2>
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  <h2 style='margin:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:10.0pt;font-family:"Arial","sans-serif";color:windowtext;font-weight:bold;'>SECURITIES AND EXCHANGE COMMISSION</h2>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'><b>Washington</b><b>, D.C.</b><b>&nbsp; 20549</b></p>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'><b>&nbsp;</b></p>
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  <h4 style='margin:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:14.0pt;font-family:"Times New Roman","serif";color:windowtext;font-weight:normal;'>FORM 8-K</h4>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>CURRENT REPORT</p>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>Pursuant to Section 13 or 15(d) of the</p>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>Securities Exchange Act of 1934</p>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>Date of Report:&nbsp; August 11, 2016</p>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
  </td>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="5">MACY'S, INC.</font></b></p>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
  </td>
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  <td width=638 colspan=3 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>7 West Seventh Street, Cincinnati, Ohio 45202<br>
  (513) 579-7000</p>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>-and-</p>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>151 West 34<sup>th</sup> Street, New York, New York 10001<br>
  (212) 494-1602</p>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>Delaware</p>
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  <td width=222 valign=top style='width:166.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:7.15pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>1-13536</p>
  </td>
  <td width=241 valign=top style='width:180.9pt;padding:0in 5.4pt 0in 5.4pt;
  height:7.15pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>13-3324058</p>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>(State of Incorporation)</p>
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  height:7.1pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>(Commission File Number)</p>
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  height:7.1pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>(IRS Employer Identification No.)</p>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>Check the appropriate
  box below if the Form 8-K is intended to simultaneously satisfy the filing
  obligation of the registrant under any of the following provisions:</p>
  </td>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>[&nbsp;&nbsp;&nbsp;]&nbsp;&nbsp;Written communications pursuant to Rule&nbsp;425 under the
  Securities Act (17 CFR 230.425)</p>
  </td>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>[&nbsp;&nbsp;&nbsp;]&nbsp;&nbsp;Soliciting material pursuant to Rule&nbsp;14a-12 under the
  Exchange Act (17 CFR 240.14a-12)</p>
  </td>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>[&nbsp;&nbsp;&nbsp;]&nbsp;&nbsp;Pre-commencement communications pursuant to Rule&nbsp;14d-2(b)
  under the Exchange Act (17 CFR 240.14d-2(b))</p>
  </td>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>[&nbsp;&nbsp;&nbsp;]&nbsp;&nbsp;Pre-commencement communications pursuant to Rule&nbsp;13e-4(c)
  under the Exchange Act (17 CFR 240.13e-4(c))</p>
  </td>
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<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>

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clear=all style='page-break-before:always'>


<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>

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  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>Item 2.02.</p>
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  <td width=559 colspan=3 valign=top style='width:419.4pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'><u>Results of
  Operations and Financial Condition</u>.</p>
  </td>
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  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=559 colspan=3 valign=top style='width:419.4pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
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  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=559 colspan=3 valign=top style='width:419.4pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>On August 11,
  2016, Macy's, Inc. (&quot;Macy's&quot;) issued a press release announcing
  Macy's financial condition and results of operations for the 13 and 26 weeks
  ended July 30, 2016.&nbsp; The full text of the press release is attached hereto
  as Exhibit 99.1 and is incorporated herein by reference.</p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";color:windowtext; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">The Company reports its financial results in accordance with
	U.S. generally accepted accounting principles (&quot;GAAP&quot;).&nbsp; The press
  release referred to above contains non-GAAP financial measures of diluted
  earnings per share attributable to Macy's, Inc. shareholders, operating
  income and operating income as a percent of sales, excluding certain items,
  and changes in comparable sales on an owned plus licensed basis.&nbsp; The
  excluded items consist of impairment and other costs primarily related to
  anticipated store closings and settlement charges relating to Macy's defined
  benefit retirement plans.&nbsp; Management believes that diluted earnings per
  share attributable to Macy's, Inc. shareholders, operating income and
  operating income as a percent of sales excluding certain items are useful
  measures in evaluating Macy's ability to generate earnings from operations and
  that providing such measures will allow investors to more readily compare the
  earnings referred to in the press release to the earnings reported by Macy's
  in past and future periods.&nbsp; Management believes that excluding certain items
  from these calculations is particularly useful where the amounts of such
  items are not consistent in the periods presented.&nbsp; Macy's licenses third
  parties to operate certain departments in its stores and online and receives
  commissions from these third parties based on a percentage of their net
  sales. In its financial statements prepared in conformity with GAAP, Macy's
  includes these commissions (rather than sales of the departments licensed to
  third parties) in its net sales. Macy's does not, however, include any
  amounts in respect of licensed department sales (or any commissions earned on
  such sales) in its comparable sales calculation on an owned basis.&nbsp; Management
  believes that the amounts of commissions earned on sales of departments
  licensed to third parties are not material to its results of operations for
  the periods presented.&nbsp; Management believes that providing changes in
  comparable sales on an owned plus licensed basis is a useful measure to
  assist investors in evaluating Macy's ability to generate sales growth,
  whether through owned businesses or departments licensed to third parties, on
  a comparable basis. Management believes that providing changes in comparable
  sales on an owned plus licensed basis is particularly useful in evaluating
  the impact of changes in the manner in which certain departments are
  operated. However, the reader is cautioned that any non-GAAP financial
  measures provided by Macy's are provided in addition to, and not as
  alternatives for, Macy's reported results prepared in accordance with GAAP.
  Certain items that may have a significant impact on Macy's financial
  position, results of operations and cash flows must be considered when
  assessing Macy's actual financial condition and performance regardless of
  whether these items are included in these non-GAAP financial measures. In
  addition, you should note that the amounts received by Macy's on account of
  sales of departments licensed to third parties are limited to commissions
  received on such sales. The methods used by Macy's to calculate its non-GAAP
  financial measures may differ significantly from methods used by other
  companies to compute similar measures. As a result, any non-GAAP financial
  measures provided by Macy's may not be comparable to similar measures
  provided by other companies.</font></p>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";color:windowtext; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">&nbsp;</font></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
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  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=559 colspan=3 valign=top style='width:419.4pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=79 colspan=2 valign=top style='width:59.4pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>Item 9.01.</p>
  </td>
  <td width=559 colspan=3 valign=top style='width:419.4pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'><u>Financial
  Statements and Exhibits</u>.</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=79 colspan=2 valign=top style='width:59.4pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=559 colspan=3 valign=top style='width:419.4pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=79 colspan=2 valign=top style='width:59.4pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=54 valign=top style='width:40.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>(d)</p>
  </td>
  <td width=505 colspan=2 valign=top style='width:378.9pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>Exhibits</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.1pt'>
  <td width=638 colspan=5 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt;
  height:7.1pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.0pt'>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=66 colspan=2 valign=top style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=72 valign=top style='width:.75in;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>99.1</p>
  </td>
  <td width=433 valign=top style='width:324.9pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>Press Release
  of Macy's dated August 11, 2016.</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.0pt'>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=66 colspan=2 valign=top style='width:49.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=72 valign=top style='width:.75in;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=433 valign=top style='width:324.9pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=638 colspan=5 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
 </tr>
 <tr height=0>
  <td width=67 style='border:none'></td>
  <td width=12 style='border:none'></td>
  <td width=54 style='border:none'></td>
  <td width=72 style='border:none'></td>
  <td width=433 style='border:none'></td>
 </tr>
</table>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>

<br
clear=all style='page-break-before:always'>


<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=655
 style='width:491.4pt;border-collapse:collapse'>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=655 colspan=2 valign=top style='width:491.4pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=655 colspan=2 valign=top style='width:491.4pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'><b>MACY'S, INC.<br>
  <br>
  </b></p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=655 colspan=2 valign=top style='width:491.4pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=655 colspan=2 valign=top style='width:491.4pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;font-weight:normal;text-decoration:underline;'>SIGNATURE<br>
  <br>
  </h3>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=655 colspan=2 valign=top style='width:491.4pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=655 colspan=2 valign=top style='width:491.4pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>Pursuant to the
  requirements of the Securities Exchange Act of 1934, the registrant has duly
  caused this report to be signed on its behalf by the undersigned hereunto
  duly authorized.<br>
  <br>
  </p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=655 colspan=2 valign=top style='width:491.4pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=259 valign=top style='width:2.7in;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=396 valign=top style='width:297.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>MACY'S, INC.<br>
  <br>
  </p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=259 valign=top style='width:2.7in;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=396 valign=top style='width:297.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=259 valign=top style='width:2.7in;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>Dated:&nbsp;&nbsp;August
  11, 2016</p>
  </td>
  <td width=396 valign=top style='width:297.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>By:&nbsp;&nbsp;<u>&nbsp;&nbsp; /s/
  Felicia Williams </u></p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=259 valign=top style='width:2.7in;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=396 valign=top style='width:297.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>Name:&nbsp;&nbsp;Felicia
  Williams</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=259 valign=top style='width:2.7in;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=396 valign=top style='width:297.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>Title:&nbsp;&nbsp;<font size="2">Executive Vice President, Controller and Enterprise
  Risk</font></p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=259 valign=top style='width:2.7in;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=396 valign=top style='width:297.0pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
 </tr>
</table>

<p style='margin:0in;margin-bottom:.0001pt;font-size:11.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>

<br
clear=all style='page-break-before:always'>


<p style='margin:0in;margin-bottom:.0001pt;font-size:11.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse'>
 <tr style='page-break-inside:avoid;height:4.75pt'>
  <td width=638 colspan=4 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt;
  height:4.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'><u>Index to Exhibits</u></p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.1pt'>
  <td width=638 colspan=4 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt;
  height:7.1pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.0pt'>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>Index <u>Number</u></p>
  </td>
  <td width=72 valign=top style='width:.75in;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=498 valign=top style='width:373.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;text-align:center'>&nbsp;</p>
  </td>
  <td style='border:none;padding:0in 0in 0in 0in' width=1><p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.0pt'>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=72 valign=top style='width:.75in;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=498 valign=top style='width:373.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td style='border:none;padding:0in 0in 0in 0in' width=1><p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.0pt'>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>99.1</p>
  </td>
  <td width=72 valign=top style='width:.75in;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>
  </td>
  <td width=498 valign=top style='width:373.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>Press Release
  of Macy's dated August 11, 2016.</p>
  </td>
  <td style='border:none;padding:0in 0in 0in 0in' width=1><p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</td>
 </tr>
</table>

<p style='margin:0in;margin-bottom:.0001pt;font-size:11.0pt;font-family:"Times New Roman","serif";color:windowtext;'>&nbsp;</p>

</div>

</body>

</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>esexhibit991.htm
<DESCRIPTION>PRESS RELEASE DATED AUGUST 11, 2016
<TEXT>



</head>

<body lang=EN-US link=blue vlink=purple>

<div style='page:WordSection1;'>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:4.5in;text-align:center;
text-indent:.5in'><b>Exhibit 99.1</b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman","serif";margin:0in;margin-bottom:.0001pt;text-align:center'><b><font style="font-size: 36.0pt">macy's inc.</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">Contacts:</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">Media &#150; Jim Sluzewski</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;
&nbsp;513/579-7764</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">Investor &#150; Matt Stautberg</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;
513/579-7780</font></b></p>

<h1 style='mso-style-link:"Heading 1 Char";margin:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:normal;text-decoration:underline;text-align:left'>&nbsp;</h1>
<h1 style='mso-style-link:"Heading 1 Char";margin:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:normal;text-decoration:underline;text-align:left'>&nbsp;</h1>
<h1 style='mso-style-link:"Heading 1 Char";margin:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:normal;text-decoration:underline;text-align:left'>
<b>FOR
IMMEDIATE RELEASE</b></h1>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 14.0pt">MACY'S, INC. REPORTS SECOND QUARTER EARNINGS </font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 14.0pt">AND REAFFIRMS FULL-YEAR GUIDANCE</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">CINCINNATI, Ohio, August 11, 2016 &#150; Macy's, Inc. today
reported diluted earnings per share of 3 cents in the second quarter of 2016,
ended July 30, 2016. Excluding asset impairment and other charges primarily
related to upcoming store closings and non-cash retirement plan settlement
charges of $255 million, or 51 cents per share (as described below), second
quarter earnings per share were 54 cents per share. The company's earnings for
the second quarter of 2016 compare with 64 cents per diluted share in the
second quarter of 2015. </font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'>The company also reaffirmed its previous
sales and earnings guidance for full-year 2016.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'>&nbsp;</p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";'><i><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Editor's
Note: This morning, Macy's, Inc. also issued a separate news release announcing
moves to drive profitable growth and enhance shareholder value.)</font></i></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">Macy's, Inc.'s earnings per share in the first half of
2016 were 41 cents (94 cents per share excluding asset impairment and other
charges primarily related to upcoming store closings and non-cash settlement
charges related to the company's retirement plans, as described below),
compared with earnings per diluted share of $1.19 in the same period last year.
</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'>&#147;We are encouraged by the distinct
improvement in our sales and earnings trend in the second quarter. <font style="font-size: 11.0pt">Over the past few months, we have been saying that a
setback is a setup for a comeback, and we now believe we are set up well to
proceed to a comeback. Our sales strengthened month-by-month throughout the
second quarter. This trend improvement gives us
confidence in our plans for the back half of the year, and in our strategic
planning for improvements to our business model going forward,&#148; said Terry J.
Lundgren, Macy's chairman and chief executive officer.&nbsp; </font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'>&#147;A number of factors worked in our favor
in the second quarter, including a normalized weather pattern, which
contributed to a sales lift in our apparel business in particular. We also saw
a smaller decrease in tourist spending during prime summer travel months,
supported by strengthened promotional events designed to increase customer traffic
and conversion. Macy's first-ever &#145;Black Friday in July&#146; event was a terrific
success which drove record store and online sales for a mid-year period,&#148;
Lundgren said. </p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'>&#147;We also are pleased that a number of
sales-driving initiatives put in place in recent months are beginning to gain
traction. These include additional investments in store staffing and visual
presentation, the rollout of our enhanced fine jewelry departments,
athletic/active apparel intensification, home store improvements and Last Act clearance
strategy,&#148; he added.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'><b><u>Sales </u></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">Sales in the second quarter of 2016 totaled $5.866
billion, a decrease of 3.9 percent, compared with sales of $6.104 billion in
the same period last year. Comparable sales on an owned plus licensed basis were
down by 2.0 percent in the second quarter. On an owned basis, second quarter
comparable sales declined by 2.6 percent. The difference between the
year-over-year change in total and comparable sales largely resulted from the
closing of 41 underperforming Macy's stores in fiscal 2015. </font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">For the year to date, Macy's, Inc. sales totaled
$11.637 billion, down 5.7 percent from total sales of $12.336 billion in the
first half of 2015. Comparable sales on an owned plus licensed basis were down
by 3.8 percent year-to-date in 2016. On an owned basis, year-to-date comparable
sales declined by 4.4 percent.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">In the second quarter, the company opened seven
Bluemercury freestanding specialty stores. In the fall season, scheduled store
openings include a Macy's in Kapolei, HI, one Macy's Backstage freestanding
store in San Antonio, one Bloomingdale's Outlet in Orange, CA, and 10
additional Bluemercury freestanding specialty stores. In the second quarter,
eight Macy's Backstage and seven Bluemercury shops opened inside Macy's stores,
with another five in-store Macy's Backstage and seven in-store Bluemercury
shops planned for the fall season. In the third quarter, Macy's is closing
stores in North Hollywood, CA, and West Valley City, UT. In a separate news
release issued today, the company announced plans to close approximately 100
full-line Macy's locations, most of which will be closed in early 2017.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'><b><u>Operating Income </u></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">Macy's, Inc.'s operating income totaled $117 million
or 2.0 percent of sales for the quarter ended July 30, 2016. Excluding asset
impairment and other charges primarily related to upcoming store closings
announced today of $249 million ($154 after tax, or 49 cents per share) and
non-cash settlement charges related to the company's retirement plans of $6
million ($3 million after tax, or 2 cents per share), operating income for the
second quarter was $372 million or 6.4 percent of sales. This compares with
operating income of $436 million or 7.1 percent of
sales for the same period last year. </font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">For the first half of 2016, Macy's, Inc.'s operating
income totaled $393 million or 3.4 percent of sales. Excluding asset impairment
and other charges of $249 million ($154 million after tax, or 49 cents per
share) and non-cash settlement charges related to the company&#146;s retirement
plans of $19 million ($12 million after tax, or 4 cents per share), operating
income for the first half of 2016 was $661 million, or 5.7 percent of sales. This
compares with operating income of $845 million, or 6.8 percent of sales, in the
first half of 2015.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'><b><u>Cash Flow </u></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">Net cash provided by operating activities was $560
million in the first half of 2016, compared with $398 million in the first six
months of last year. Net cash used by investing activities in the first half of
2016 was $338 million, compared with $615 million a year ago. Investing
activities in the first six months of 2015 included the acquisition of
Bluemercury. Net cash used by financing activities in the first six months of
2016 was $331 million, compared with $1.186 billion in the first half of 2015.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'><i><font style="font-size: 11.0pt">&nbsp;</font></i></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">The company did not repurchase any shares of its
common stock in the second quarter of 2016. Given first quarter results, the
company had decided to suspend its repurchase program but will consider
resuming stock buybacks in the second half of 2016 assuming current sales
trends continue. At July 30, 2016, the company has remaining authorization to
repurchase up to approximately $1.9 billion of its common stock.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'><b><u>Looking Ahead </u></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based upon improved sales and earnings in the second
quarter, the company remains confident in its previously provided guidance for
full-year 2016. </p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'>Macy's, Inc. expects full-year 2016
comparable sales on an
owned plus licensed basis
sales to decrease in the range of 3 percent to 4 percent, with comparable sales on an owned basis
to be approximately 50 basis points lower. The company expects earnings per diluted share (excluding asset
impairment charges and retirement settlement charges) in fiscal 2016 to be in a
range of $3.15 to $3.40.&nbsp; </p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'><b><u>Important Information Regarding Financial Measures</u></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'>Please see the final pages of this news
release for important information regarding the calculation of the company's
non-GAAP financial measures.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'><font style="font-size: 11.0pt">Macy's, Inc., with corporate offices in Cincinnati and
New York, is one of the nation's premier retailers, with fiscal 2015 sales of
$27.079 billion. The company operates about 880 stores in 45 states, the
District of Columbia, Guam and Puerto Rico under the names of Macy's,
Bloomingdale's, Bloomingdale's Outlet, Macy's Backstage and Bluemercury, as
well as the macys.com, bloomingdales.com and bluemercury.com websites.
Bloomingdale's in Dubai is operated by Al Tayer Group LLC under a license
agreement.</font></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in'><font style="font-size: 11.0pt">All statements in
this press release that are not statements of historical fact are
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Such statements are based upon the current
beliefs and expectations of Macy's management and are subject to significant
risks and uncertainties. Actual results could differ materially from those
expressed in or implied by the forward-looking statements contained in this
release because of a variety of factors, including conditions to, or changes in
the timing of, proposed transactions, prevailing interest rates and
non-recurring charges, store closings, competitive pressures from specialty
stores, general merchandise stores, off-price and discount stores,
manufacturers&#146; outlets, the Internet, mail-order catalogs and television
shopping and general consumer spending levels, including the impact of the
availability and level of consumer debt, the effect of weather and other
factors identified in documents filed by the company with the Securities and
Exchange Commission. </font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;line-height:12.0pt'>#&nbsp; #&nbsp; #</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;line-height:12.0pt'>&nbsp;</p>

<p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif"; margin-left:0in; margin-right:0in; margin-top:0in'>
<font size="2">(NOTE: Additional
information on Macy's, Inc., including past news releases, is available at www.macysinc.com/pressroom.<i> </i>A webcast of Macy's, Inc.'s call with
analysts and investors will be held
today (Aug. 11) at <b>10 a.m. (ET)</b>. (Note
this is a new time for Macy's quarterly earnings conference call.) Macy's,
Inc.'s webcast is accessible to the media and general public via the company's
website at www.macysinc.com. Analysts and investors may call in on
1-888-211-9951, passcode 1044180. A replay of the conference call can be
accessed on the Web site or by calling 1-888-203-1112 (same passcode) about two
hours after the conclusion of the call.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>

<font size="2">Macy's, Inc. is scheduled to present at the Goldman Sachs Annual Global Retailing Conference at 8:05 a.m. ET on Thursday, Sept. 8, in New York
City. Media and investors may access a live audio webcast of the presentation at www.macysinc.com/ir beginning at 8:05 a.m. on Sept. 8. A replay of the webcast
will be available on the company's website.)

</b>

<p>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">MACY'S, INC.</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><u><font style="font-size: 11.0pt">Consolidated Statements of Income (Unaudited) (Note 1)</font></u></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 11.0pt">(All amounts in millions except percentages and per
share figures)</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=684
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  &nbsp;&nbsp;</font></p>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:-5.4pt;text-align:center'><font style="font-size: 11.0pt">&nbsp; &nbsp;&nbsp;13 Weeks
  Ended&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
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  <td width=357 colspan=2 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
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  </td>
  <td width=171 colspan=2 valign=top style='width:128.25pt;padding:0in 5.4pt 0in 5.4pt'>
  <h4 style='mso-style-link:"Heading 4 Char";margin-top:0in;margin-right:-5.4pt;margin-bottom:0in;margin-left:-.9pt;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:normal;text-decoration:underline;margin-left:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;July 30,
  2016&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</h4>
  </td>
  <td width=156 colspan=2 valign=top style='width:116.85pt;padding:0in 5.4pt 0in 5.4pt'>
  <h4 style='mso-style-link:"Heading 4 Char";margin-top:0in;margin-right:-5.4pt;margin-bottom:0in;margin-left:-.9pt;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:normal;text-decoration:underline;margin-left:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;August 1,
  2015&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</h4>
  </td>
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  <td width=357 colspan=2 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'>&nbsp;</p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 11.0pt">% to</font></p>
  <h1 style='mso-style-link:"Heading 1 Char";margin:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:normal;text-decoration:underline;'>Net sales</h1>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'>&nbsp;</p>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 11.0pt">% to</font></p>
  <h1 style='mso-style-link:"Heading 1 Char";margin:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:normal;text-decoration:underline;'>Net sales</h1>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
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  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
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  <td width=357 colspan=2 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Net
  sales................................................................ </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">$&nbsp; 5,866&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">$&nbsp; 6,104&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 colspan=2 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:15.75pt'>
  <td width=357 colspan=2 valign=bottom style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt;
  height:15.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">Cost of sales (Note 2).................................................. </font></p>
  </td>
  <td width=87 valign=bottom style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt;
  height:15.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp; &nbsp;3,468</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=bottom style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt;
  height:15.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;59.1%</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=bottom style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt;
  height:15.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp; &nbsp;3,610</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=bottom style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt;
  height:15.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;59.1%</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 colspan=2 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 colspan=2 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Gross
  margin.......................................................... </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">2,398&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">40.9%&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">2,494&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">40.9%&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 colspan=2 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 colspan=2 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Selling,
  general and administrative expenses............. </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;(2,026)</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">(34.5%)</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;(2,058)</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">(33.8%)</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 colspan=2 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 colspan=2 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Impairments
  and other costs (Note 3)...................... </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;(249)</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">(4.3%)</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;-&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">-%&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 colspan=2 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 colspan=2 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Settlement
  charges (Note 4).................................... </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (6</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;(0.1%</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -%</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 colspan=2 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 colspan=2 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>
	Operating income................................................... </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">117&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">2.0%&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">436&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">7.1%&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 colspan=2 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 colspan=2 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Interest
  expense &#150; net............................................ </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;(97</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;(93</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 colspan=2 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 colspan=2 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>Income before income taxes................................... </p>
  </td>
  <td width=87 valign=bottom style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">20&nbsp;</font></p>
  </td>
  <td width=84 valign=bottom style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=bottom style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">343&nbsp;</font></p>
  </td>
  <td width=73 valign=bottom style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 colspan=2 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 colspan=2 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>Federal, state and local income tax&nbsp;expense (Note 5).. </p>
  </td>
  <td width=87 valign=bottom style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (11</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
  <td width=84 valign=bottom style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=bottom style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp; (126</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
  <td width=73 valign=bottom style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 colspan=2 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 colspan=2 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Net
  income............................................................ </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp; &nbsp;9&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp; &nbsp;217&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 colspan=2 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 colspan=2 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Net
  loss attributable to noncontrolling interest........... </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp; 2</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp; &nbsp;-</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 colspan=2 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 colspan=2 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Net
  income attributable to Macy's, Inc. shareholders.. </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp;11</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp; &nbsp;217</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 colspan=2 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 colspan=2 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>Basic earnings per share attributable to </p>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-left:.25in'>Macy's, Inc. shareholders................................. </p>
  </td>
  <td width=87 valign=bottom style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.03</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=bottom style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.65</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 colspan=2 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=bottom style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=bottom style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 colspan=2 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Diluted
  earnings per share attributable to</p>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";text-indent:.25in;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>Macy's, Inc. shareholders................................. </p>
  </td>
  <td width=87 valign=bottom style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.03</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=bottom style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.64</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 colspan=2 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 colspan=2 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">Average common shares:</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 colspan=2 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic............................................................... </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">309.4&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">335.7&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 colspan=2 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted............................................................. </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">311.3&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">341.0&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 colspan=2 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 colspan=2 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>End
  of period common shares outstanding................ </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">308.5&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">331.0&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 colspan=2 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=355 valign=top style='width:3.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Depreciation
  and amortization expense.................... </p>
  </td>
  <td width=89 colspan=2 valign=top style='width:66.75pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp; 260&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp; 261&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr height=0>
  <td width=354 style='border:none'></td>
  <td width=2 style='border:none'></td>
  <td width=89 style='border:none'></td>
  <td width=83 style='border:none'></td>
  <td width=83 style='border:none'></td>
  <td width=73 style='border:none'></td>
 </tr>
</table>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<b><br
clear=all style='page-break-before:always'>
</b>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">MACY'S, INC.</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><u><font style="font-size: 11.0pt">Consolidated Statements of Income (Unaudited)</font></u></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='mso-style-link:"Body Text 3 Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">Notes:</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.25in;text-align:justify;text-indent:
-.25in'><font style="font-size: 11.0pt">(1) Because of the seasonal nature of
the retail business, the results of operations for the 13 weeks ended July 30,
2016 and August 1, 2015 (which do not include the Christmas season) are not
necessarily indicative of such results for the fiscal year.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.25in;text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.25in;text-align:justify;text-indent:
-.25in'><font style="font-size: 11.0pt">(2) Merchandise inventories are valued
at the lower of cost or market using the last-in, first-out (LIFO) retail
inventory method. Application of the LIFO retail inventory method did not
result in the recognition of any LIFO charges or credits affecting cost of
sales for the 13 weeks ended July 30, 2016 or August 1, 2015.</font></p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.25in;text-align:justify;text-indent:
-.25in'><font style="font-size: 11.0pt">(3)&nbsp;&nbsp;For the 13 weeks ended July 30,
2016, includes $249 million on a pre-tax basis, or
$154 million after tax or $.49 per diluted share attributable to Macy's, Inc.,
primarily for asset impairment charges. These charges relate primarily to
anticipated store closings.
</font></p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.25in;text-align:justify;text-indent:
-.25in'><font style="font-size: 11.0pt">(4)&nbsp;&nbsp;For the 13 weeks ended July 30,
2016, includes $6 million on a pre-tax basis, or $3 million after tax or $.02
per diluted share attributable to Macy's, Inc., of non-cash settlement charges
relating to the Company's defined benefit retirement plans. These charges
result from an increase in lump sum distributions associated with store
closings, a voluntary separation program and organizational restructuring, in
addition to periodic distribution activity.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.25in;text-align:justify;text-indent:
-.25in'><font style="font-size: 11.0pt">(5)&nbsp;&nbsp;Federal, state and local income
taxes differ from the federal income tax statutory rate of 35%, principally
because of the effect of state and local taxes, including the settlement of
various tax issues and tax examinations.
</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.25in;text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<b><br
clear=all style='page-break-before:always'>
</b>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">MACY'S, INC.</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><u><font style="font-size: 11.0pt">Consolidated Statements of Income (Unaudited) (Note 1)</font></u></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 11.0pt">(All amounts in millions except percentages and per
share figures)</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=684
 style='width:512.7pt;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=171 colspan=2 valign=top style='width:128.25pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:-5.4pt;text-align:center'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 26 Weeks Ended&nbsp;&nbsp;
  &nbsp;&nbsp;</font></p>
  </td>
  <td width=156 colspan=2 valign=top style='width:116.85pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:-5.4pt;text-align:center'><font style="font-size: 11.0pt">&nbsp; &nbsp;&nbsp;26 Weeks
  Ended&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid'>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=171 colspan=2 valign=top style='width:128.25pt;padding:0in 5.4pt 0in 5.4pt'>
  <h4 style='mso-style-link:"Heading 4 Char";margin-top:0in;margin-right:-5.4pt;margin-bottom:0in;margin-left:-.9pt;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:normal;text-decoration:underline;margin-left:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;July 30,
  2016&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</h4>
  </td>
  <td width=156 colspan=2 valign=top style='width:116.85pt;padding:0in 5.4pt 0in 5.4pt'>
  <h4 style='mso-style-link:"Heading 4 Char";margin-top:0in;margin-right:-5.4pt;margin-bottom:0in;margin-left:-.9pt;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:normal;text-decoration:underline;margin-left:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;August 1,
  2015&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</h4>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'>&nbsp;</p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 11.0pt">% to</font></p>
  <h1 style='mso-style-link:"Heading 1 Char";margin:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:normal;text-decoration:underline;'>Net sales</h1>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'>&nbsp;</p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 11.0pt">% to</font></p>
  <h1 style='mso-style-link:"Heading 1 Char";margin:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:normal;text-decoration:underline;'>Net sales</h1>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:4.0pt'>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Net
  sales.................................................................. </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">$ 11,637&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">$ 12,336&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:15.75pt'>
  <td width=357 valign=bottom style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt;
  height:15.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">Cost of sales (Note 2)............................................... </font></p>
  </td>
  <td width=87 valign=bottom style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt;
  height:15.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp; 6,984</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=bottom style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt;
  height:15.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;60.0%</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=bottom style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt;
  height:15.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp; 7,410</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=bottom style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt;
  height:15.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;60.1%</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Gross
  margin............................................................ </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">4,653&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">40.0%&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">4,926&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">39.9%&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Selling,
  general and administrative expenses............... </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;(3,992)</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">(34.3%)</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;(4,081)</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">(33.1%)</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Impairments
  and other costs (Note 3)........................ </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;(249)</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">(2.1%)</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;-&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">-%&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Settlement
  charges (Note 4)...................................... </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (19</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;(0.2%</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -%</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Operating
  income...................................................... </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">393&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">3.4%&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">845&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">6.8%&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Interest
  expense &#150; net............................................... </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp; &nbsp;&nbsp; (195</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp; &nbsp;&nbsp; (188</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>Income before income taxes...................................... </p>
  </td>
  <td width=87 valign=bottom style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">198&nbsp;</font></p>
  </td>
  <td width=84 valign=bottom style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=bottom style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">657&nbsp;</font></p>
  </td>
  <td width=73 valign=bottom style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>Federal, state and local income tax&nbsp;expense (Note 5)... </p>
  </td>
  <td width=87 valign=bottom style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (74</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
  <td width=84 valign=bottom style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=bottom style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp; (247</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
  <td width=73 valign=bottom style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Net
  income............................................................... </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp; &nbsp;124&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp; &nbsp;410&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Net
  loss attributable to noncontrolling interest............ </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp; 3</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp; &nbsp;-</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Net
  income attributable to Macy's, Inc. shareholders... </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp; &nbsp;127</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp; &nbsp;410</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>Basic earnings per share attributable to </p>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-left:.25in'>Macy's, Inc. shareholders................................... </p>
  </td>
  <td width=87 valign=bottom style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.41</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=bottom style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp;1.21</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=bottom style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=bottom style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Diluted
  earnings per share attributable to</p>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";text-indent:.25in;punctuation-wrap:hanging;
  text-autospace:ideograph-numeric ideograph-other'>Macy's, Inc. shareholders................................... </p>
  </td>
  <td width=87 valign=bottom style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.41</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=bottom style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><u><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp;1.19</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">Average common shares:</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic................................................................. </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">310.0&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">338.2&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted............................................................... </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">312.4&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">343.7&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>End
  of period common shares outstanding.................. </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">308.5&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">331.0&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>&nbsp;</p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=357 valign=top style='width:267.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Depreciation
  and amortization expense...................... </p>
  </td>
  <td width=87 valign=top style='width:65.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp; 520&nbsp;</font></p>
  </td>
  <td width=84 valign=top style='width:62.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=83 valign=top style='width:62.2pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:8.1pt;text-align:right'><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp; 520&nbsp;</font></p>
  </td>
  <td width=73 valign=top style='width:54.65pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<b><br
clear=all style='page-break-before:always'>
</b>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">MACY'S, INC.</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><u><font style="font-size: 11.0pt">Consolidated Statements of Income (Unaudited)</font></u></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='mso-style-link:"Body Text 3 Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">Notes:</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.25in;text-align:justify;
text-indent:-.25in'><font style="font-size: 11.0pt">(1)&nbsp;&nbsp;Because of the seasonal nature of
the retail business, the results of operations for the 26 weeks ended July 30,
2016 and August 1, 2015 (which do not include the Christmas season) are not
necessarily indicative of such results for the fiscal year.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.25in;text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.25in;text-align:justify;text-indent:
-.25in'><font style="font-size: 11.0pt">(2)&nbsp;&nbsp;Merchandise inventories are valued
at the lower of cost or market using the last-in, first-out (LIFO) retail
inventory method. Application of the LIFO retail inventory method did not
result in the recognition of any LIFO charges or credits affecting cost of
sales for the 26 weeks ended July 30, 2016 or August 1, 2015.</font></p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.25in;text-align:justify;text-indent:
-.25in'><font style="font-size: 11.0pt">(3)&nbsp;&nbsp;For the 26 weeks ended July 30,
2016, includes $249 million on a pre-tax basis, or
$154 million after tax or $.49 per diluted share attributable to Macy's, Inc.,
primarily for asset impairment charges. These charges relate primarily to anticipated
store closings.</font></p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.25in'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.25in;text-align:justify;text-indent:
-.25in'><font style="font-size: 11.0pt">(4)&nbsp;&nbsp;For the 26 weeks ended July 30,
2016, includes $19 million on a pre-tax basis, or $12 million after tax or $.04
per diluted share attributable to Macy's, Inc., of non-cash settlement charges
relating to the Company's defined benefit retirement plans. These charges
result from an increase in lump sum distributions associated with store
closings, a voluntary separation program and organizational restructuring, in
addition to periodic distribution activity.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.25in'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.25in;text-align:justify;text-indent:
-.25in'><font style="font-size: 11.0pt">(5)&nbsp;&nbsp;Federal, state and local income
taxes differ from the federal income tax statutory rate of 35%, principally
because of the effect of state and local taxes, including the settlement of
various tax issues and tax examinations.
</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.25in;text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.25in'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<b><br
clear=all style='page-break-before:always'>
</b>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">MACY'S, INC.</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><u><font style="font-size: 11.0pt">Consolidated Balance Sheets (Unaudited)</font></u></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 11.0pt">(millions)</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 10.0pt">&nbsp;</font></p>

<table class=MsoNormalTable border=1 cellspacing=0 cellpadding=0 width=650
 style='width:487.8pt;border-collapse:collapse;border:none'>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 11.0pt">&nbsp;&nbsp;July 30,</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 11.0pt">January 30,</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 11.0pt">&nbsp;August 1,</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2016&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2016&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2015&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">ASSETS:</font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp; Current
  Assets:</p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash
  equivalents..................................... </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">$&nbsp; 1,000</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">$&nbsp; 1,109</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">$&nbsp; &nbsp;&nbsp;&nbsp;843</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivables........................................................... </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">423</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">558</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">334</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Merchandise
  inventories........................................ </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">5,322</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">5,506</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">5,496</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and
  other current assets............. </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 471</font></u></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 479</font></u></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 437</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Current
  Assets........................................... </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">7,216</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">7,652</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">7,110</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp; Property and Equipment &#150;
  net.................................. </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">7,187</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">7,616</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">7,704</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp; Goodwill................................................................... </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">3,897</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">3,897</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">3,897</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp; Other Intangible Assets
  &#150; net.................................... </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">502</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">514</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">523</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp; Other Assets............................................................. </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 904</font></u></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 897</font></u></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 726</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets........................................................ </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><u><font style="font-size: 11.0pt">$19,706</font></u></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><u><font style="font-size: 11.0pt">$20,576</font></u></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><u><font style="font-size: 11.0pt">$19,960</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">LIABILITIES AND
  SHAREHOLDERS' EQUITY:</font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp; Current Liabilities:</font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term debt...................................................... </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">$&nbsp; &nbsp;&nbsp;&nbsp;942</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">$&nbsp; &nbsp;&nbsp;&nbsp;642</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">$&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; 83</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Merchandise accounts
  payable.............................. </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">1,877</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">1,526</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">1,942</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and
  accrued liabilities............... </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">2,514</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">3,333</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">2,277</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes......................................................... </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 23</font></u></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 227</font></u></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 64</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Current
  Liabilities...................................... </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">5,356</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">5,728</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">4,366</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp; Long-Term Debt....................................................... </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">6,688</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">6,995</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">7,151</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp; Deferred Income Taxes............................................ </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">1,448</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">1,477</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">1,449</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp; Other Liabilities........................................................ </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">2,164</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">2,123</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">2,150</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:9.0pt'><font style="font-size: 11.0pt">Shareholders'
  Equity:</font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;</font></u></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;</font></u></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Macy's, Inc............................................................ </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">4,046</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">4,250</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">4,844</font></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Noncontrolling
  interest.......................................... </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4</font></u></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3</font></u></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total
  Shareholders' Equity................................. </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp; 4,050</font></u></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp; 4,253</font></u></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp; 4,844</font></u></p>
  </td>
 </tr>
 <tr style='height:4.0pt'>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:6.75pt'>
  <td width=371 valign=top style='width:278.0pt;border:none;padding:0in 5.4pt 0in 5.4pt;
  height:6.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities
  and Shareholders' Equity.......... </font></p>
  </td>
  <td width=92 valign=top style='width:69.35pt;border:none;padding:0in 5.4pt 0in 5.4pt;
  height:6.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><u><font style="font-size: 11.0pt">$19,706</font></u></p>
  </td>
  <td width=92 valign=top style='width:68.65pt;border:none;padding:0in 5.4pt 0in 5.4pt;
  height:6.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><u><font style="font-size: 11.0pt">$20,576</font></u></p>
  </td>
  <td width=96 valign=top style='width:71.8pt;border:none;padding:0in 5.4pt 0in 5.4pt;
  height:6.75pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:9.2pt;text-align:right'><u><font style="font-size: 11.0pt">$19,960</font></u></p>
  </td>
 </tr>
</table>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">Note: Certain
reclassifications were made to prior year&#146;s amounts to conform with the
classifications of such amounts in the most recent years.</font></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<b><br
clear=all style='page-break-before:always'>
</b>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">MACY'S, INC.</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><u><font style="font-size: 11.0pt">Consolidated Statements of Cash Flows (Unaudited)</font></u></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 11.0pt">(millions)</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">&nbsp;</font></p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=643
 style='width:6.7in;border-collapse:collapse'>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h2 style='mso-style-link:"Heading 2 Char";margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:bold;text-decoration:underline;margin-left:0in;text-align:center'>26 Weeks Ended</h2>
  <h3 style='mso-style-link:"Heading 3 Char";margin:0in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:12.0pt;font-family:"Times New Roman","serif";font-weight:normal;text-decoration:underline;text-align:center'><font style="font-size: 11.0pt">July
  30, 2016&nbsp;&nbsp;&nbsp; </font></h3>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h2 style='mso-style-link:"Heading 2 Char";margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:bold;text-decoration:underline;margin-left:0in;text-align:center'>26 Weeks Ended</h2>
  <h3 style='mso-style-link:"Heading 3 Char";margin:0in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:12.0pt;font-family:"Times New Roman","serif";font-weight:normal;text-decoration:underline;text-align:center'><font style="font-size: 11.0pt">August
  1, 2015</font></h3>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Cash
  flows from operating activities:</p>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;&nbsp; Net income........................................................................ </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;124&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;410&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp; Adjustments
  to reconcile net income to net cash<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;provided by operating activities:</p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairments and
  other costs........................................ </font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">249&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">-&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Settlement charges....................................................... </font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">19&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">-&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and
  amortization..................................... </font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">520&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">520&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation expense............................. </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">37&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">47&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of
  financing costs and premium on </font></p>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;acquired
  debt............................................................. </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">(1)</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">(2)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes
  in assets and liabilities:</p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;Decrease
  in receivables........................................... </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><font style="font-size: 11.0pt">99&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><font style="font-size: 11.0pt">92&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp; &nbsp;(Increase)
  decrease in merchandise inventories....... </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><font style="font-size: 11.0pt">184&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><font style="font-size: 11.0pt">(50)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-right:-9.9pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;Increase in
  prepaid expenses and other current assets. </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">(40)</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">(29)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-right:-5.4pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;Increase in
  other assets not separately identified....... </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">-&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">-&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;Increase
  in merchandise accounts payable.............. </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">307&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">314&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;Decrease in accounts payable, accrued
  liabilities</p>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and other items not separately
  identified............ </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">(686)</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">(626)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;Decrease
  in current income taxes............................ </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">(204)</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">(232)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;Decrease
  in deferred income taxes.......................... </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">(26)</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">(20)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;Decrease
  in other liabilities not separately identified&nbsp;&nbsp; </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (22</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (26</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
  cash provided by operating activities.............. </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; 560</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; 398</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">Cash flows from investing
  activities:</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp; Purchase
  of property and equipment................................. </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">(293)</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">(367)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp; Capitalized
  software.......................................................... </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">(151)</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">(144)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp; Acquisition
  of Bluemercury, Inc., net of cash acquired..... </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">-&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">(212)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp; Disposition
  of property and equipment............................. </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 67&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp; Other,
  net........................................................................... &nbsp;&nbsp; </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;39</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;104</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
  cash used by investing activities...................... </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp; (338</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp; (615</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;</font></u></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'><br clear=all
  style='page-break-before:always'>

  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">Cash flows from financing
  activities:</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;</font></u></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.25in;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp; Debt
  repaid........................................................................ </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><font style="font-size: 11.0pt">(3)</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><font style="font-size: 11.0pt">(72)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp; Financing
  costs.................................................................. </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><font style="font-size: 11.0pt">(3)</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><font style="font-size: 11.0pt">-&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp; Dividends
  paid.................................................................. </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><font style="font-size: 11.0pt">(228)</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><font style="font-size: 11.0pt">(227)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp; Increase
  (decrease) in outstanding checks......................... </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><font style="font-size: 11.0pt">2&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><font style="font-size: 11.0pt">(136)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp; Acquisition
  of treasury stock............................................. </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><font style="font-size: 11.0pt">(130)</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><font style="font-size: 11.0pt">(909)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp; Issuance
  of common stock................................................ </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 27&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 158&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp; Proceeds
  from noncontrolling interest............................... </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
  cash used by financing activities..................... </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(331</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;(1,186</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h2 style='mso-style-link:"Heading 2 Char";margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:bold;text-decoration:underline;margin-right:17.1pt;text-align:right'>&nbsp;</h2>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h2 style='mso-style-link:"Heading 2 Char";margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:bold;text-decoration:underline;margin-right:17.1pt;text-align:right'>&nbsp;</h2>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Net
  decrease in cash and cash equivalents............................ </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><font style="font-size: 11.0pt">(109)</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><font style="font-size: 11.0pt">(1,403)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Cash
  and cash equivalents at beginning of period................ </p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp; 1,109</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp; 2,246</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top style='width:293.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>Cash
  and cash equivalents at end of period.......................... </p>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><u><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;1,000</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:17.1pt;text-align:right'><u><font style="font-size: 11.0pt">$&nbsp;&nbsp;&nbsp;&nbsp;843</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">Note: Certain
reclassifications were made to prior year&#146;s amounts to conform with the
classifications of such amounts in the most recent years.</font></p>

<b><br
clear=all style='page-break-before:always'>
</b>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">MACY'S, INC.</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><u><font style="font-size: 11.0pt">Important Information Regarding Non-GAAP Financial
Measures</font></u></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'><font style="font-size: 11.0pt">The Company reports its financial results in
accordance with U.S. generally accepted accounting principles
(&quot;GAAP&quot;). However, management believes that certain non-GAAP
financial measures provide users of the Company's financial information with
additional useful information in evaluating operating performance. Management believes
that excluding certain items that may vary substantially in frequency and
magnitude from operating income, operating income as a percent of sales and diluted
earnings per share attributable to Macy's, Inc. shareholders provides useful
supplemental measures that assist in evaluating the Company's ability to
generate earnings and leverage sales and to more readily compare these metrics
between past and future periods. Management believes that providing changes in
comparable sales on an owned plus licensed basis, which includes the impact of
growth in comparable sales of departments licensed to third parties
supplementally to its results of operations calculated in accordance with GAAP
assists in evaluating the Company's ability to generate sales growth, whether
through owned businesses or departments licensed to third parties, on a
comparable basis, and in evaluating the impact of changes in the manner in
which certain departments are operated. </font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'><font style="font-size: 11.0pt">Non-GAAP financial measures should be viewed as
supplementing, and not as an alternative or substitute for, the Company's
financial results prepared in accordance with GAAP. Certain of the items that
may be excluded or included in non-GAAP financial measures may be significant
items that could impact the Company's financial position, results of operations
and cash flows and should therefore be considered in assessing the Company's
actual financial condition and performance. Additionally, the amounts received
by the Company on account of sales of departments licensed to third parties are
limited to commissions received on such sales. The methods used by the Company
to calculate its non-GAAP financial measures may differ significantly from
methods used by other companies to compute similar measures. As a result, any
non-GAAP financial measures presented herein may not be comparable to similar
measures provided by other companies.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'><u><font style="font-size: 11.0pt">Diluted Earnings Per Share Attributable to Macy's,
Inc. Shareholders, Excluding Certain Items </font></u></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'><font style="font-size: 11.0pt">The following is a reconciliation of the non-GAAP
financial measure diluted earnings per share attributable to Macy's, Inc.
shareholders, excluding certain items, to GAAP diluted earnings per share
attributable to Macy's, Inc., shareholders, which the Company believes to be
the most directly comparable GAAP measure.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=781
 style='width:585.9pt;border-collapse:collapse'>
 <tr>
  <td width=421 valign=top style='width:315.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <h2 style='mso-style-link:"Heading 2 Char";margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:bold;text-decoration:underline;margin-left:12.6pt;text-align:center'>13 Weeks </h2>
  <h2 style='mso-style-link:"Heading 2 Char";margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:bold;text-decoration:underline;margin-left:12.6pt;text-align:center'>Ended</h2>
  <h3 style='mso-style-link:"Heading 3 Char";margin:0in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:12.0pt;font-family:"Times New Roman","serif";font-weight:normal;text-decoration:underline;margin-left:12.6pt;text-align:center'>July 30,&nbsp; </h3>
  <h3 style='mso-style-link:"Heading 3 Char";margin:0in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:12.0pt;font-family:"Times New Roman","serif";font-weight:normal;text-decoration:underline;margin-left:12.6pt;text-align:center'><font style="font-size: 11.0pt">2016&nbsp; </font></h3>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <h2 style='mso-style-link:"Heading 2 Char";margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:bold;text-decoration:underline;margin-left:12.6pt;text-align:center'>26 Weeks </h2>
  <h2 style='mso-style-link:"Heading 2 Char";margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:bold;text-decoration:underline;margin-left:12.6pt;text-align:center'>Ended</h2>
  <h3 style='mso-style-link:"Heading 3 Char";margin:0in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:12.0pt;font-family:"Times New Roman","serif";font-weight:normal;text-decoration:underline;margin-left:12.6pt;text-align:center'>July 30,&nbsp; </h3>
  <h3 style='mso-style-link:"Heading 3 Char";margin:0in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:12.0pt;font-family:"Times New Roman","serif";font-weight:normal;text-decoration:underline;margin-left:12.6pt;text-align:center'><font style="font-size: 11.0pt">2016&nbsp; </font></h3>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <h2 style='mso-style-link:"Heading 2 Char";margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:bold;text-decoration:underline;margin-left:12.6pt;text-align:center'>&nbsp;</h2>
  </td>
 </tr>
 <tr>
  <td width=421 valign=top style='width:315.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=421 valign=top style='width:315.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;&nbsp; Diluted earnings per share attributable to </p>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Macy's, Inc.
  shareholders..................................................... </p>
  </td>
  <td width=120 valign=bottom style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'><u><font style="font-size: 11.0pt">$0.03</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=120 valign=bottom style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'><u><font style="font-size: 11.0pt">$0.41</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=421 valign=top style='width:315.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td width=120 valign=bottom style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=120 valign=bottom style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=421 valign=top style='width:315.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;&nbsp; Add back the pre-tax impact of impairments and other
  costs.... </p>
  </td>
  <td width=120 valign=bottom style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'><font style="font-size: 11.0pt">0.80&nbsp;</font></p>
  </td>
  <td width=120 valign=bottom style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'><font style="font-size: 11.0pt">0.80&nbsp;</font></p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=421 valign=top style='width:315.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td width=120 valign=bottom style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=120 valign=bottom style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=421 valign=top style='width:315.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;&nbsp; Add back the pre-tax impact of settlement charges................... </p>
  </td>
  <td width=120 valign=bottom style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'><font style="font-size: 11.0pt">0.02&nbsp;</font></p>
  </td>
  <td width=120 valign=bottom style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'><font style="font-size: 11.0pt">0.06&nbsp;</font></p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=421 valign=top style='width:315.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td width=120 valign=bottom style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=120 valign=bottom style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=421 valign=top style='width:315.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;&nbsp; Deduct the income tax impact of impairments and </p>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;other costs and
  settlement charges.......................................... </p>
  </td>
  <td width=120 valign=bottom style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;(0.31</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
  <td width=120 valign=bottom style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'><u><font style="font-size: 11.0pt">(0.33</font></u><font style="font-size: 11.0pt">)</font></p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=421 valign=top style='width:315.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td width=120 valign=bottom style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=120 valign=bottom style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=421 valign=top style='width:315.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;&nbsp; Diluted earnings per share attributable to </p>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Macy's, Inc.
  shareholders, excluding impairments and </p>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;other costs and
  settlement charges......................................... </p>
  </td>
  <td width=120 valign=bottom style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'><u><font style="font-size: 11.0pt">$0.54</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=120 valign=bottom style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'><u><font style="font-size: 11.0pt">$0.94</font></u><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
</table>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<b><br
clear=all style='page-break-before:always'>
</b>

<p style='mso-style-link:"Body Text 2 Char";margin:0in;margin-bottom:.0001pt;font-size:10.5pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">MACY'S, INC.</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><u><font style="font-size: 11.0pt">Important Information Regarding Non-GAAP Financial
Measures</font></u></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'><u><font style="font-size: 11.0pt">Change in Comparable Sales </font></u></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'><font style="font-size: 11.0pt">The following is a reconciliation of the non-GAAP
financial measure of changes in comparable sales on an owned plus licensed
basis, to GAAP comparable sales (i.e., on an owned basis), which the Company
believes to be the most directly comparable GAAP financial measure.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=781
 style='width:585.9pt;border-collapse:collapse'>
 <tr>
  <td width=421 valign=top style='width:315.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <h2 style='mso-style-link:"Heading 2 Char";margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:bold;text-decoration:underline;margin-left:12.6pt;text-align:center'>13 Weeks </h2>
  <h2 style='mso-style-link:"Heading 2 Char";margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:bold;text-decoration:underline;margin-left:12.6pt;text-align:center'>Ended</h2>
  <h3 style='mso-style-link:"Heading 3 Char";margin:0in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:12.0pt;font-family:"Times New Roman","serif";font-weight:normal;text-decoration:underline;margin-left:12.6pt;text-align:center'>July 30,&nbsp; </h3>
  <h3 style='mso-style-link:"Heading 3 Char";margin:0in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:12.0pt;font-family:"Times New Roman","serif";font-weight:normal;text-decoration:underline;margin-left:12.6pt;text-align:center'><font style="font-size: 11.0pt">2016&nbsp; </font></h3>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <h2 style='mso-style-link:"Heading 2 Char";margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:bold;text-decoration:underline;margin-left:12.6pt;text-align:center'>26 Weeks </h2>
  <h2 style='mso-style-link:"Heading 2 Char";margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:bold;text-decoration:underline;margin-left:12.6pt;text-align:center'>Ended</h2>
  <h3 style='mso-style-link:"Heading 3 Char";margin:0in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:12.0pt;font-family:"Times New Roman","serif";font-weight:normal;text-decoration:underline;margin-left:12.6pt;text-align:center'>July 30,&nbsp; </h3>
  <h3 style='mso-style-link:"Heading 3 Char";margin:0in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:12.0pt;font-family:"Times New Roman","serif";font-weight:normal;text-decoration:underline;margin-left:12.6pt;text-align:center'><font style="font-size: 11.0pt">2016&nbsp; </font></h3>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <h2 style='mso-style-link:"Heading 2 Char";margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;page-break-after:avoid;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:bold;text-decoration:underline;margin-left:12.6pt;text-align:center'>&nbsp;</h2>
  </td>
 </tr>
 <tr>
  <td width=421 valign=top style='width:315.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>&nbsp;</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=421 valign=top style='width:315.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;&nbsp; Decrease in comparable sales on an owned basis (Note 1)........ </p>
  </td>
  <td width=120 valign=bottom style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'><u><font style="font-size: 11.0pt">(2.6</font></u><font style="font-size: 11.0pt">)%</font></p>
  </td>
  <td width=120 valign=bottom style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'><u><font style="font-size: 11.0pt">(4.4</font></u><font style="font-size: 11.0pt">)%</font></p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=421 valign=top style='width:315.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td width=120 valign=bottom style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=120 valign=bottom style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=421 valign=top style='width:315.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;&nbsp; Impact of growth in comparable sales of departments</p>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;licensed
  to third parties (Note 2)........................................ </p>
  </td>
  <td width=120 valign=bottom style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;0.6</font></u><font style="font-size: 11.0pt">&nbsp;%</font></p>
  </td>
  <td width=120 valign=bottom style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'><u><font style="font-size: 11.0pt">&nbsp;0.6</font></u><font style="font-size: 11.0pt">&nbsp;%</font></p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=421 valign=top style='width:315.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td width=120 valign=bottom style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=120 valign=bottom style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'>&nbsp;</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=421 valign=top style='width:315.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;punctuation-wrap:simple;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";'>&nbsp;&nbsp; Decrease in comparable sales on an owned plus licensed
  basis </p>
  </td>
  <td width=120 valign=bottom style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'><u><font style="font-size: 11.0pt">(2.0</font></u><font style="font-size: 11.0pt">)%</font></p>
  </td>
  <td width=120 valign=bottom style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'><u><font style="font-size: 11.0pt">(3.8</font></u><font style="font-size: 11.0pt">)%</font></p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:12.6pt;text-align:right'>&nbsp;</p>
  </td>
 </tr>
</table>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

<p style='mso-style-link:"Body Text 3 Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>

<p style='mso-style-link:"Body Text 3 Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">Notes:</font></p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.25in;text-align:justify;
text-indent:-.25in'><font style="font-size: 11.0pt">(1)&nbsp;&nbsp;Represents the period-to-period
change in net sales from stores in operation throughout the year presented and
the immediately preceding year and all online sales, excluding commissions from
departments licensed to third parties.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.25in;text-align:justify;
text-indent:-.25in'><font style="font-size: 11.0pt">(2)&nbsp;&nbsp;Represents the impact of including
the sales of departments licensed to third parties occurring in stores in
operation throughout the year presented and the immediately preceding year and
via the Internet in the calculation of comparable sales. The Company licenses
third parties to operate certain departments in its stores and online and
receives commissions from these third parties based on a percentage of their
net sales. In its financial statements prepared in conformity with GAAP, the
Company includes these commissions (rather than sales of the departments
licensed to third parties) in its net sales. The Company does not, however,
include any amounts in respect of licensed department sales (or any commissions
earned on such sales) in its comparable sales in accordance with GAAP (i.e. on
an owned basis). The Company believes that the amounts of commissions earned on
sales of departments licensed to third parties are not material to its results
of operations for the periods presented.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'>&nbsp;</p>

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