Research Case -

EDGAR, the Electronic Data Gathering , Analysis, and Retrieval system, performs automated collection, validation, indexing acceptance and forwarding of submissions by companies and others who are required by law to file forms with the U.S. Securities and Exchange Commission (SEC).  All publicly traded domestic companies use EDGAR to make the majority of their filings.  Form 10-K, including the annual report, is required to be filed on EDGAR.   The SEC makes this information available on the internet.

Under Filings, select Company Filing Search. Then type Macy, and Select for Macy's Inc.  Find the most recent 10-K filing.

What is Macy's fiscal year end?

What is the total liabilities in the balance sheet? How has that amount changed over the most recent two years?

Compare the total liabilities with the shareholders' equity and calculate the debt to equity ratio for the most recent two years.  Has the proportion of debt financing and equity financing changed recently?

Read the foot notes for the financial statements.  Is any short-term debt classified as long-term?  Why?

Is any long-term debt classified as short-term?  Why?

What amount is income tax expense?  What amount is the current component?  Deferred component?

What is the balance of deferred tax assets?  What is the balance of valuation allowance?

What is the balance of deferred tax liabilities?

Find the most recent 10-K for Delta Airlines

What is the capital lease liability

How is operating lease accounted for?  If the operating leases were capitalized, approximately how much would that increase the capital lease liability?

What effect would that have on the company's debt to equity ratio?

What is off balance sheet financing?  Please use Delta as an example to explain.

In your report, please answer the above questions.  You don't need to print out the whole annual reports, just the related pages as an appendix to your answer, and highlight the information you used to get your answer.