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2013 BROWN SHOE COMPANY, INC. FORM 10-K 23
ITEM 6 SELECTED FINANCIAL DATA
The selected financial data set forth below should be read in conjunction with the consolidated financial statements and
notes thereto and the other information contained elsewhere in this report.
2013 2012 2011 2010 2009
($ thousands, except per share amounts) (52 Weeks) (53 Weeks) (52 Weeks) (52 Weeks) (52 Weeks)
Operations:
Net sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,513,113 $ 2,477,796 $ 2,434,766 $ 2,457,673 $ 2,208,387
Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,498,825 1,489,221 1,470,270 1,462,386 1,311,248
Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,014,288 988,575 964,496 995,287 897,139
Selling and administrative expenses . . . . . . . . . . . . . . . . . . . 909,749 891,666 910,293 918,029 854,285
Restructuring and other special charges, net . . . . . . . . . . . . . . 1,262 22,431 23,671 7,914 11,923
Impairment of assets held for sale(3) . . . . . . . . . . . . . . . . . . . 4,660 – – – –
Operating earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98,617 74,478 30,532 69,344 30,931
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (21,254) (22,973) (25,428) (19,037) (19,695)
Loss on early extinguishment of debt . . . . . . . . . . . . . . . . . . – – (1,003) – –
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 377 322 569 203 374
Earnings before income taxes from continuing operations. . . . . . . 77,740 51,827 4,670 50,510 11,610
Income tax (provision) benefit . . . . . . . . . . . . . . . . . . . . . . (23,758) (16,656) 1,421 (15,106) (1,223)
Net earnings from continuing operations . . . . . . . . . . . . . . . . 53,982 35,171 6,091 35,404 10,387
Discontinued operations:
(Loss) earnings from discontinued operations, net of tax . . . . . . . (4,574) (4,437) 4,334 1,656 56
Disposition/impairment of discontinued operations, net of tax . . . . (11,512) (3,530) 13,965 – –
Net (loss) earnings from discontinued operations . . . . . . . . . . . (16,086) (7,967) 18,299 1,656 56
Net earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,896 27,204 24,390 37,060 10,443
Net (loss) earnings attributable to noncontrolling interests . . . . . . (177) (287) (199) (173) 943
Net earnings attributable to Brown Shoe Company, Inc. . . . . . . . . $ 38,073 $ 27,491 $ 24,589 $ 37,233 $ 9,500
Operations:
Return on net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.5% 1.1% 1.0% 1.5% 0.4%
Return on beginning Brown Shoe Company, Inc. shareholders’ equity . 9.0% 6.7% 5.9% 9.3% 2.4%
Return on average invested capital(1) . . . . . . . . . . . . . . . . . . . 9.6% 6.5% 2.6% 7.2% 3.7%
Dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12,105 $ 12,011 $ 12,076 $ 12,254 $ 12,009
Purchases of property and equipment . . . . . . . . . . . . . . . . . . $ 43,968 $ 55,801 $ 27,857 $ 30,781 $ 24,880
Capitalized software . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,235 $ 7,928 $ 10,707 $ 24,046 $ 25,098
Depreciation and amortization(2) . . . . . . . . . . . . . . . . . . . . . $ 57,842 $ 57,344 $ 61,449 $ 52,517 $ 53,295
Per Common Share:
Basic earnings (loss) per common share:
From continuing operations . . . . . . . . . . . . . . . . . . . . . $ 1.25 $ 0.83 $ 0.15 $ 0.81 $ 0.22
From discontinued operations . . . . . . . . . . . . . . . . . . . . (0.37) (0.19) 0.42 0.04 –
Basic earnings per common share attributable to
Brown Shoe Company, Inc. shareholders . . . . . . . . . . . . . . 0.88 0.64 0.57 0.85 0.22
Diluted earnings (loss) per common share:
From continuing operations . . . . . . . . . . . . . . . . . . . . . 1.25 0.83 0.14 0.81 0.22
From discontinued operations . . . . . . . . . . . . . . . . . . . . (0.37) (0.19) 0.42 0.04 –
Diluted earnings per common share attributable to
Brown Shoe Company, Inc. shareholders . . . . . . . . . . . . . . 0.88 0.64 0.56 0.85 0.22
Dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.28 0.28 0.28 0.28 0.28
Ending Brown Shoe Company, Inc. shareholders’ equity . . . . . . . . 10.99 9.91 9.83 9.45 9.38
Financial Position:
Receivables, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 129,217 $ 111,392 $ 130,485 $ 108,302 $ 79,478
Inventories, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 547,531 503,688 518,893 516,318 451,166
Working capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 405,694 303,319 236,017 289,557 289,055
Property and equipment, net . . . . . . . . . . . . . . . . . . . . . . . 143,560 144,856 130,244 135,632 141,561
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,149,403 1,173,973 1,227,476 1,148,043 1,040,150
Borrowings under our revolving credit agreement . . . . . . . . . . . 7,000 105,000 201,000 198,000 94,500
Long-term debt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199,010 198,823 198,633 150,000 150,000
Brown Shoe Company, Inc. shareholders’ equity . . . . . . . . . . . . 476,699 425,129 412,669 415,080 402,171
Average common shares outstanding – basic . . . . . . . . . . . . . . 41,356 40,659 41,126 42,156 41,585
Average common shares outstanding – diluted . . . . . . . . . . . . . 41,653 40,794 41,668 42,487 41,649
All data presented reflects the fiscal year ended on the Saturday nearest to January 31. Certain prior period amounts have been reclassified to conform
to current period presentation. These reclassifications did not aect net earnings attributable to Brown Shoe Company, Inc. See Item 7, Management’s
Discussion and Analysis of Financial Condition and Results of Operations, for additional information related to the selected financial data above.
(1) Return on average invested capital is calculated by dividing operating earnings for the period, adjusted for income taxes at the applicable
eective rate, by the average of each month-end invested capital balance during the year. Invested capital is defined as Brown Shoe Company, Inc.
shareholders’ equity plus long-term debt and borrowings under the Credit Agreement.
(2) Depreciation and amortization includes depreciation of property and equipment and amortization of capitalized software, intangibles, and debt
issuance costs and debt discount. The amortization of debt issuance costs is reflected within interest expense in our consolidated statement of
earnings and totaled $2.5 million in 2013, $2.6 million in 2012, $2.3 million in 2011, and $2.2 million in both 2010 and 2009.
(3) During 2013, we recognized a non-cash impairment charge related to certain supply chain and sourcing assets held for sale of $4.7 million.