1.Macy's, Inc. , operates about 810 Macy's department stores and furniture galleries. The Bloomingdale's brand includes 41 stores in 12 states, four Bloomingdale's Outlet stores, and bloomingdales.com. Refer to the 2010 financial statements and related disclosure notes of the company. The financial statements can be found at the company's website: www.macys.com .
Required:
1. From the information provided in various portions of Note 11, reconcile the beginning balance ($1,186) and ending balances for Net loss'AOCI associated with Macy's pension plan. Clearly label each reconciling amount.
2. Macy's was required to amortize a portion of its Net loss'AOCI associated with its pension plan in 2010. Based on the calculation of that amount, determine the average remaining service life of the company's employees used in that calculation.
3. From the information provided in various portions of Note 12, reconcile the beginning balance ($38) and ending balances for Net gain'AOCI associated with Macy's Other postretirement employee benefit plan. Clearly label each reconciling amount.
4. Suppose you believe that Macy's should have assumed a 1% lower healthcare cost trend during 2010. What would 2010 net income have been under that assumption? Assume a 35% income tax rate.