Famous Footwear 2013 Annual Report Download - page 83

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2013 BROWN SHOE COMPANY, INC. FORM 10-K 81
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME
FOR THE FISCAL YEAR ENDED JANUARY 28, 2012
($ thousands) Parent Guarantors Non-Guarantors Eliminations Total
Net earnings (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 24,589 $ 49,662 $ (14,812) $ (35,049) $ 24,390
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment . . . . . . . . . . . . . – 1,320 (1,113) – 207
Pension and other postretirement benefits adjustments,
net of tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,358 (417) – – 2,941
Derivative financial instruments, net of tax . . . . . . . . . . . . (14) 401 – – 387
Other comprehensive income (loss) from investment
in subsidiaries, net of tax . . . . . . . . . . . . . . . . . . . . 152 (1,152) – 1,000 –
Other comprehensive income (loss), net of tax . . . . . . . . . . . . 3,496 152 (1,113) 1,000 3,535
Comprehensive income (loss) . . . . . . . . . . . . . . . . . . . . . . 28,085 49,814 (15,925) (34,049) 27,925
Comprehensive loss attributable to noncontrolling interests. . . . . – – (160) – (160)
Comprehensive income (loss) attributable
to Brown Shoe Company, Inc. . . . . . . . . . . . . . . . . . . . $ 28,085 $ 49,814 $ (15,765) $ (34,049) $ 28,085
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE FISCAL YEAR ENDED JANUARY 28, 2012
($ thousands) Parent Guarantors Non-Guarantors Eliminations Total
Net cash (used for) provided by operating activities . . . . . . . $ (205,188) $ 234,780 $ 18,439 $ 55 $ 48,086
Investing activities
Purchases of property and equipment . . . . . . . . . . . . . . . (2,739) (21,917) (3,201) – (27,857)
Capitalized software . . . . . . . . . . . . . . . . . . . . . . . . . (10,419) (288) – – (10,707)
Acquisition cost. . . . . . . . . . . . . . . . . . . . . . . . . . . . – – (156,636) – (156,636)
Cash recognized on initial consolidation . . . . . . . . . . . . . . – 3,121 – – 3,121
Net proceeds from sale of subsidiary. . . . . . . . . . . . . . . . – 61,922 (6,572) – 55,350
Net cash (used for) provided by investing activities . . . . . . . (13,158) 42,838 (166,409) – (136,729)
Financing activities
Borrowings under revolving credit agreement . . . . . . . . . . 1,595,500 – – – 1,595,500
Repayments under revolving credit agreement . . . . . . . . . . (1,592,500) – – – (1,592,500)
Intercompany financing . . . . . . . . . . . . . . . . . . . . . . . 205,689 (271,509) 65,875 (55) –
Proceeds from issuance of 2019 Senior Notes . . . . . . . . . . . 198,633 – – – 198,633
Redemption of 2012 Senior Notes . . . . . . . . . . . . . . . . . (150,000) – – – (150,000)
Dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . (12,076) – – – (12,076)
Debt issuance costs . . . . . . . . . . . . . . . . . . . . . . . . . (6,428) – – – (6,428)
Acquisition of treasury stock . . . . . . . . . . . . . . . . . . . . (25,484) – – – (25,484)
Issuance of common stock under share-based plans, net . . . . 918 – – – 918
Tax (deficiency) benefit related to share-based plans . . . . . . (292) 1,292 – – 1,000
Contributions by noncontrolling interests . . . . . . . . . . . . . – – 378 – 378
Net cash provided by (used for) financing activities . . . . . . . 213,960 (270,217) 66,253 (55) 9,941
Eect of exchange rate changes on cash and cash equivalents . – (164) – – (164)
(Decrease) increase in cash and cash equivalents. . . . . . . . . (4,386) 7,237 (81,717) – (78,866)
Cash and cash equivalents at beginning of year. . . . . . . . . . – 27,095 99,453 – 126,548
Cash and cash equivalents at end of year . . . . . . . . . . . . . $ (4,386) $ 34,332 $ 17,736 $ – $ 47,682
19. SUBSEQUENT EVENT
On February 3, 2014, the Company entered into and simultaneously closed an Asset Purchase Agreement (the “Asset
Purchase Agreement”), pursuant to which the Company acquired the Franco Sarto trademarks. As consideration,
the Company agreed to pay a cash purchase price of $65.0 million, which was paid at the time of closing. As a result
of entering into and closing the Asset Purchase Agreement, the Company’s existing license agreement, granting
the Company the right to sell footwear and other products using the Franco Sarto trademarks through 2019, was
terminated. The purchase price of $65.0 million, as well as transaction costs of $0.1 million, will be amortized over its
useful life. The impact to estimated amortization expense related to this transaction for the next five years is included
in Note 9 to the consolidated financial statements.