Famous Footwear 2012 Annual Report Download - page 85

2012 BROWN SHOE COMPANY, INC. FORM 10-K 83
SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS
Col. A Col. B Col. C Col. D Col. E
Additions
Balance at Charged Charged Balance
Beginning Costs and Other Accounts- Deductions- at End
Description of Period Expenses Describe Describe of Period
($ thousands)
YEAR ENDED FEBRUARY 2, 2013
Deducted from assets or accounts:
Doubtful accounts and allowances . . . . . . . . $ 1,705 $ 360 – $ 1,055(A) $ 1,010
Customer allowances . . . . . . . . . . . . . . . 23,528 52,495 – 54,333(B) 21,690
Customer discounts . . . . . . . . . . . . . . . . 618 4,513 – 4,434(B) 697
Inventory valuation allowances . . . . . . . . . . 22,259 63,675 – 66,043(C) 19,891
Deferred tax asset valuation allowance . . . . . 6,946 1,815 – 285(E) 8,476
YEAR ENDED JANUARY 28, 2012
Deducted from assets or accounts:
Doubtful accounts and allowances . . . . . . . . $ 1,056 $ 1,284 – $ 635(A) $ 1,705
Customer allowances . . . . . . . . . . . . . . . 17,023 56,076 – 49,571(B) 23,528
Customer discounts . . . . . . . . . . . . . . . . 319 3,830 – 3,531(B) 618
Inventory valuation allowances . . . . . . . . . . 15,305 54,083 – 47,129(C) 22,259
Deferred tax asset valuation allowance . . . . . 6,751 495 481(D) 781(E) 6,946
YEAR ENDED JANUARY 29, 2011
Deducted from assets or accounts: . . . . . . . . . .
Doubtful accounts and allowances . . . . . . . . $ 1,021 $ 516 – $ 481(A) $ 1,056
Customer allowances . . . . . . . . . . . . . . . 13,033 43,007 – 39,017(B) 17,023
Customer discounts . . . . . . . . . . . . . . . . 257 6,898 – 6,836(B) 319
Inventory valuation allowances . . . . . . . . . . 15,414 53,506 – 53,615(C) 15,305
Deferred tax asset valuation allowance . . . . . 8,859 296 – 2,404(E) 6,751
(A) Accounts written o, net of recoveries.
(B) Discounts and allowances granted to customers of the Wholesale Operations segment.
(C) Adjustment upon disposal of related inventories.
(D) Established through purchase accounting related to the ASG acquisition.
(E) Reflects reductions to valuation allowance for the net operating loss carryforwards for certain states based on the Company’s expectations
for utilization of net operating loss carryforwards.
ITEM 9 CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.
ITEM 9A CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
It is the Chief Executive Ocer’s and Chief Financial Ocer’s ultimate responsibility to ensure we maintain disclosure
controls and procedures designed to provide reasonable assurance that information required to be disclosed in the reports
that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within
the time periods specified in the Commission’s rules and forms and is accumulated and communicated to our management,
including our principal executive and principal financial ocers, or persons performing similar functions, as appropriate
to allow timely decisions regarding required disclosure. Our disclosure controls and procedures include mandatory
communication of material events; automated accounting processing and reporting; management review of monthly,
quarterly and annual results; an established system of internal controls; and internal control reviews by our internal auditors.
A control system, no matter how well-conceived or operated, can provide only reasonable, not absolute, assurance that
the objectives of the control system are met. Furthermore, the design of a control system must reflect the fact there
are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent
limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and
instances of fraud, if any, have been detected. These inherent limitations include the realities that judgments in decision-
making can be faulty, and breakdowns can occur because of simple error or mistake. Additionally, controls can be
circumvented by the individual acts of some persons, by collusion of two or more people or by management override of
the controls. The design of any system of controls is based in part upon certain assumptions about the likelihood of future
events, and there can be no assurance any design will succeed in achieving its stated goals under all potential future
conditions; over time, controls may become inadequate because of changes in conditions or the degree of compliance
with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-eective control system,
misstatements due to errors or fraud may occur and not be detected. Our disclosure controls and procedures are designed
to provide a reasonable level of assurance that their objectives are achieved. As of February 2, 2013, management of the