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F- 38
Uncertain Tax Positions- As of February 2, 2013, January 28, 2012 and January 29, 2011, unrecognized tax benefits of $1.3
million, $1.2 million and $0.9 million, respectively, of the total unrecognized tax benefits would affect the Company’s effective
tax rate if recognized. The following table presents the reconciliation of the beginning and ending amount of unrecognized tax
benefits as of the periods presented:
February 2, 2013 January 28, 2012 January 29, 2011
(in thousands)
Beginning balance $ 2,315 $ 2,899 $ 9,039
(Decreases) – tax positions taken in a prior period (1,462)(958)(7,666)
Increases – tax positions taken in the current period 400 374 1,526
Ending balance $ 1,253 $ 2,315 $ 2,899
While it is expected that the amount of unrecognized tax benefits will change in the next 12 months, any changes are not
expected to have a material impact on DSW's financial position, results of operations or cash flows.
As of February 2, 2013 and January 28, 2012, $0.3 million and $0.4 million, respectively, was accrued for the payment of
interest and penalties.
DSW is no longer subject to U.S federal income tax examination and state income tax examinations for years prior to 2009.
DSW is currently under audit for fiscal 2010. DSW estimates the range of possible changes that may result from any current
and future tax examinations to be insignificant at this time.
18. QUARTERLY FINANCIAL DATA (UNAUDITED)
In the Company’s opinion, the unaudited quarterly financial information reflects all normal and recurring accruals and
adjustments necessary for a fair presentation of the Company’s net income (loss) for interim periods. Quarterly results are not
necessarily indicative of a full year’s operations because of various factors. The following tables present the Company’s
unaudited quarterly financial information for the periods presented:
Thirteen weeks ended
Fourteen
weeks
ended
April 28,
2012 July 28,
2012 October 27,
2012 February 2,
2013
(in thousands, except per share data)
Net sales $ 558,572 $ 512,218 $ 592,734 $ 594,254
Cost of sales (365,982)(351,973)(392,563)(422,540)
Operating expenses (121,923)(112,118)(121,734)(126,022)
Change in fair value of derivative instruments (5,342)(779) — —
Operating profit 65,325 47,348 78,437 45,692
Interest income, net 467 496 2,575 273
Income from continuing operations before income taxes 65,792 47,844 81,012 45,965
Income tax provision (27,185)(18,526)(30,897)(18,819)
Income from continuing operations 38,607 29,318 50,115 27,146
Total income from discontinued operations, net of tax 1,253 — — —
Net income $ 39,860 $ 29,318 $ 50,115 $ 27,146
Diluted earnings per share(1):
Diluted earnings per share from continuing operations $ 0.86 $ 0.65 $ 1.10 $ 0.59
Diluted earnings per share from discontinued operations $ 0.03 $ 0.00 $ 0.00 $ 0.00
Diluted earnings per share $ 0.89 $ 0.65 $ 1.10 $ 0.59
Table of Contents DSW INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS