Famous Footwear 2012 Annual Report Download - page 80

78 2012 BROWN SHOE COMPANY, INC. FORM 10-K
18. FINANCIAL INFORMATION FOR THE COMPANY AND ITS SUBSIDIARIES
Brown Shoe Company, Inc. issued senior notes, which are fully and unconditionally and jointly and severally guaranteed by
all of its existing and future subsidiaries that are guarantors under its existing agreement. The following table presents the
consolidating financial information for each of Brown Shoe Company, Inc. (“Parent”), the Guarantors and subsidiaries of the
Parent that are not Guarantors (the “Non-Guarantors”), together with consolidating eliminations, as of and for the periods
indicated. The Guarantors are 100% owned by the Parent.
The consolidating financial statements have been prepared using the equity method of accounting in accordance with
the requirements for presentation of such information. Management believes that the information, presented in lieu of
complete financial statements for each of the Guarantors, provides meaningful information to allow investors to determine
the nature of the assets held by, and operations and cash flows of, each of the consolidated groups.
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CONDENSED CONSOLIDATING BALANCE SHEET
AS OF FEBRUARY 2, 2013
($ thousands) Parent Guarantors Non-Guarantors Eliminations Total
Assets
Current assets:
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . $ – $ 32,060 $ 36,163 $ – $ 68,223
Receivables. . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,308 18,088 37,287 – 125,683
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94,817 421,914 16,544 – 533,275
Prepaid expenses and other current assets . . . . . . . . . . 15,099 29,136 1,012 – 45,247
Total current assets. . . . . . . . . . . . . . . . . . . . . . . . . . 180,224 501,198 91,006 – 772,428
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . 99,527 19,739 848 – 120, 1 1 4
Goodwill and intangible assets, net . . . . . . . . . . . . . . 37,270 19,901 75,457 – 132,628
Property and equipment, net . . . . . . . . . . . . . . . . . . 27,931 109,457 8,701 – 146,089
Investment in subsidiaries. . . . . . . . . . . . . . . . . . . . 765,729 91,136 1 1 3,033 (969,898) –
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,1 1 0,681 $ 741 ,431 $ 289,045 $ (969,898) $ 1,171,259
Liabilities and Equity
Current liabilities:
Borrowings under revolving credit agreement . . . . . . . . $ 105,000 $ – $ – $ – $ 105,000
Trade accounts payable . . . . . . . . . . . . . . . . . . . . . 54,126 126,293 42,323 – 222,742
Other accrued expenses . . . . . . . . . . . . . . . . . . . . 54,729 79,492 7,146 – 141,367
Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . 21 3,855 205,785 49,469 – 469,109
Other liabilities:
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . 198,823 – – – 198,823
Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . 15,897 46,658 14,871 – 77,426
Intercompany payable (receivable) . . . . . . . . . . . . . . 256,977 (389,774) 132,797 – –
Total other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . 471,697 (343,116) 147,668 – 276,249
Equity:
Brown Shoe Company, Inc. shareholders’ equity . . . . . . . 425,129 878,762 91,136 (969,898) 425,129
Noncontrolling interests. . . . . . . . . . . . . . . . . . . . . – – 772 – 772
Total equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 425,129 878,762 91,908 (969,898) 425,901
Total liabilities and equity . . . . . . . . . . . . . . . . . . . . . . $ 1,110,681 $ 741,431 $ 289,045 $ (969,898) $ 1,171,259
CONDENSED CONSOLIDATING STATEMENT OF EARNINGS
FOR THE FISCAL YEAR ENDED FEBRUARY 2, 2013
($ thousands) Parent Guarantors Non-Guarantors Eliminations Total
Net sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 732,350 $ 1,882,809 $ 191,994 $ (209,088) $ 2,598,065
Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . 566,045 1,076,068 154,681 (209,088) 1,587,706
Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166,305 806,741 37,313 – 1,010,359
Selling and administrative expenses . . . . . . . . . . . . . . . . 193,763 714,434 10,760 – 918,957
Restructuring and other special charges, net . . . . . . . . . . . 12,533 11,485 – – 24,018
Impairment of intangible assets. . . . . . . . . . . . . . . . . . . 5,777 – – – 5,777
Equity in (earnings) loss of subsidiary . . . . . . . . . . . . . . . (65,160) (23,079) – 88,239 –
Operating earnings (loss) . . . . . . . . . . . . . . . . . . . . . . 19,392 103,901 26,553 (88,239) 61,607
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . (23,378) (4) – – (23,382)
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 258 54 – 322
Intercompany interest income (expense) . . . . . . . . . . . . . 13,073 (13,525) 452 – –
Earnings (loss) before income taxes from continuing operations . 9,097 90,630 27,059 (88,239) 38,547
Income tax benefit (provision) . . . . . . . . . . . . . . . . . . . 18,394 (25,470) (4,267) – (11,343)
Net earnings (loss) from continuing operations . . . . . . . . . . 27,491 65,160 22,792 (88,239) 27,204
Net loss attributable to noncontrolling interests . . . . . . . . . – – (287) – (287)
Net earnings (loss) attributable to Brown Shoe Company, Inc. . . . $ 27,491 $ 65,160 $ 23,079 $ (88,239) $ 27,491