Famous Footwear 2013 Annual Report Download - page 73

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2013 BROWN SHOE COMPANY, INC. FORM 10-K 71
The Company recognized impairment charges in selling and administrative expenses, primarily related to underperforming
retail stores, of $1.9 million during 2011. Of the $1.9 million, $1.4 million related to the Famous Footwear segment and
$0.5 million related to the Specialty Retail segment.
The Company performed its annual impairment tests of indefinite lived intangible assets, which involves estimating the fair
value using significant unobservable inputs (Level 3). As a result of its annual impairment testing, the Company did not
record any impairment charges during 2013 or 2012 related to intangible assets.
The Company performed its annual impairment test of goodwill, which involves estimating the fair value of its reporting
units using significant unobservable inputs (Level 3). The impairment test, performed as of the first day of the Company’s
fourth fiscal quarter of 2013 and 2012, resulted in no impairment charges. See Note 1 and Note 9 for additional information
related to the goodwill impairment test.
Fair Value of the Company’s Other Financial Instruments
The fair values of cash and cash equivalents (excluding money market funds discussed above), receivables, trade accounts
payable, and borrowing under the revolving credit agreement approximate their carrying values due to the short-term nature
of these instruments.
The carrying amounts and fair values of the Company’s other financial instruments subject to fair value disclosures are as follows:
February 1, 2014 February 2, 2013
Carrying Carrying
($ thousands) Amount Fair Value Amount Fair Value
Long-term debt - Senior Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 199,010 $210,500 $198,823 $208,000
The fair value of the Company’s Senior Notes was based upon quoted prices in an inactive market as of the end of the
respective periods (Level 2).
14. SHAREHOLDERS’ EQUITY
Stock Repurchase Program
In January 2008, the Board of Directors approved a stock repurchase program (“2008 Program”) authorizing the repurchase
of up to 2.5 million shares of the Company’s outstanding common stock. During 2011, the Company repurchased 2.5 million
shares of its outstanding common stock for $25.5 million.
On August 25, 2011, the Board of Directors approved a stock repurchase program (“2011 Program”) authorizing the repurchase
of up to 2.5 million additional shares of the Company’s outstanding common stock. The Company can utilize the repurchase
program to repurchase shares on the open market or in private transactions from time to time, depending on market
conditions. The repurchase program does not have an expiration date. Repurchases of common stock are limited under the
Company’s debt agreements. There have been no shares repurchased under the 2011 Program.
Repurchases Related to Employee Share-based Awards
During 2013 and 2012, 327,276 shares and 298,636 shares, respectively, were tendered by employees related to certain share-
based awards. These shares were tendered in satisfaction of the exercise price of stock options and/or to satisfy minimum
tax withholding amounts for non-qualified stock options, restricted stock and stock performance awards. Accordingly, these
share repurchases are not considered a part of the Company’s publicly announced stock repurchase programs.
Accumulated Other Comprehensive Income
The following table sets forth the changes in accumulated other comprehensive income, net of tax, by component for
2013 and 2012:
Accumulated
Foreign Other
Currency Derivative Postretirement Comprehensive
($ thousands) Translation Transactions Transactions Income (Loss)
Balance at January 28, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,449 $ 74 $ 3,114 $9,637
Other comprehensive income (loss) before reclassifications. . . . . . . . . . . . . 463 (402) (9,122) (9,061)
Amounts reclassified from accumulated other comprehensive (loss) income . . . – 247 61 308
Other comprehensive income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . 463 (155) (9,061) (8,753)
Balance at February 2, 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,912 $ (81) $ (5,947) $ 884
Other comprehensive (loss) income before reclassifications. . . . . . . . . . . . . (4,556) 1,260 19,136 15,840
Amounts reclassified from accumulated other comprehensive (loss) income . . . – (441) 393 (48)
Other comprehensive (loss) income . . . . . . . . . . . . . . . . . . . . . . . . . . (4,556) 819 19,529 15,792
Balance at February 1, 2014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,356 $ 738 $ 13,582 $16,676