Famous Footwear 2013 Annual Report Download - page 60

Download and view the complete annual report

Please find page 60 of the 2013 Famous Footwear annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 96

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96

58 2013 BROWN SHOE COMPANY, INC. FORM 10-K
• Investments in corporate stocks – common, U.S. government securities, mutual fund, money market funds, real estate
investment trusts, and S&P 500 Index put and call options (traded on security exchanges) are classified within Level
1 of the fair value hierarchy because the fair values are based on unadjusted quoted market prices in active markets
with sucient volume and frequency.
• Corporate debt instruments and interest rate swap agreements are valued at fair value based on vendor-quoted
pricing for which inputs are observable and can be corroborated; therefore, these are classified within Level 2 of the
fair value hierarchy.
• The unallocated insurance contract is valued at contract value, which approximates fair value; therefore, this contract
is classified within Level 3 of the fair value hierarchy. The unallocated insurance contract fair value was $0.1 million as
of both February 1, 2014 and February 2, 2013.
• In 2012, the limited partnership investment represented the pension plan’s undivided interest in a limited partnership.
The limited partnership invested primarily in a diversified portfolio of equity securities of U.S. and non-U.S. issuers
whose fair values were based on unadjusted quoted market prices in active markets with sucient volume and
frequency. Limited partnership assets were allocated to the pension plan by assigning the pension plan transactions
that were specifically identified and allocating non-specific transactions in proportion to the pension plan’s beneficial
interest in the limited partnership. This contract is classified within Level 2 of the fair value hierarchy.
• The other pension plan assets, with a fair value of $0.4 million as of February 1, 2014, are not priced and therefore are
classified within Level 3 of the fair value hierarchy.
The fair values of the Company’s pension plan assets at February 1, 2014 by asset category are as follows:
Fair Value Measurements at February 1, 2014
($ thousands) Total Level 1 Level 2 Level 3
Asset
Money market funds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 14,038 $ 14,038 $ – $ –
U.S. government securities . . . . . . . . . . . . . . . . . . . . . . . . . . 73,813 73,813 – –
Mutual fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,376 27,376 – –
Real estate investment trusts . . . . . . . . . . . . . . . . . . . . . . . . . 105 105 – –
Corporate debt instruments . . . . . . . . . . . . . . . . . . . . . . . . . 29,783 – 29,783 –
Corporate stocks – common . . . . . . . . . . . . . . . . . . . . . . . . . 212,211 212,211 – –
S&P 500 Index options . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,343) (1,343) – –
Interest rate swap agreements . . . . . . . . . . . . . . . . . . . . . . . . (131) – (131) –
Unallocated insurance contract . . . . . . . . . . . . . . . . . . . . . . . 82 – – 82
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 386 – – 386
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 356,320 $ 326,200 $ 29,652 $ 468
The fair values of the Company’s pension plan assets at February 2, 2013 by asset category are as follows:
Fair Value Measurements at February 2, 2013
($ thousands) Total Level 1 Level 2 Level 3
Asset
Money market funds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,729 $ 4,729 $ – $ –
U.S. government securities . . . . . . . . . . . . . . . . . . . . . . . . . . 59,342 59,342 – –
Mutual fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,168 75,168 – –
Limited partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,982 – 35,982 –
Real estate investment trusts . . . . . . . . . . . . . . . . . . . . . . . . . 3,239 3,239 – –
Corporate debt instruments . . . . . . . . . . . . . . . . . . . . . . . . . 28,357 – 28,357 –
Corporate stocks – common . . . . . . . . . . . . . . . . . . . . . . . . . 136,275 136,275 – –
S&P 500 Index options . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,495) (2,495) – –
Interest rate swap agreements . . . . . . . . . . . . . . . . . . . . . . . . (4,258) – (4,258) –
Unallocated insurance contract. . . . . . . . . . . . . . . . . . . . . . . . 106 – – 106
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 336,445 $ 276,258 $ 60,081 $ 106
The following table sets forth changes in the fair value of plan assets, including all domestic and Canadian plans:
Pension Benefits Other Postretirement Benefits
($ thousands) 2013 2012 2013 2012
Fair value of plan assets at beginning of year . . . . . . . . . . . . . . . . $ 336,445 $ 321,299 $ – $ –
Actual return on plan assets. . . . . . . . . . . . . . . . . . . . . . . . . . 30,628 26,167 – –
Employer contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . 331 413 88 190
Plan participants’ contributions . . . . . . . . . . . . . . . . . . . . . . . . 12 12 19 13
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (11,107) (11,464) (107) (203)
Foreign exchange rate changes . . . . . . . . . . . . . . . . . . . . . . . . 11 18 – –
Fair value of plan assets at end of year. . . . . . . . . . . . . . . . . . . . $ 356,320 $ 336,445 $ – $ –