DSW 2013 Annual Report Download - page 68

Table of Contents
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On May 31, 2012, DSW issued 682,444 of its Class B Common Shares, without par value, to the Schottenstein Affiliates in connection with the exercise of
its outstanding warrants. The Common Shares were issued at an exercise price of $5.17 per share, for an aggregate cash purchase price of $3.5 million, and
DSW paid accrued dividends of $0.7 million related to DSW's special dividend issued on September 30, 2011. In connection with this exercise and in
addition to the purchase price, DSW reclassified $16.8 million from the warrant liability to paid in capital during the second quarter of fiscal 2012.
On March 14, 2012, DSW issued 823,926 of its Class B Common Shares, without par value, to the Schottenstein Affiliates in connection with the exercise
of its outstanding warrant. The Common Shares were issued at an exercise price of $5.17 per share, for an aggregate cash purchase price of $4.3 million, and
DSW paid accrued dividends of $0.8 million related to DSW's special dividend issued on September 30, 2011. In connection with this exercise and in
addition to the purchase price, DSW reclassified $18.6 million from the warrant liability to paid in capital during the first quarter of fiscal 2012. The fiscal
2012 warrant exercises resulted in an total increase to paid in capital of $43.2 million.
On April 28, 2011, RVI issued 442,074 common shares (which represent 192,302 DSW Common Shares factoring in the exchange ratio of 0.435 subsequent
to the Merger), without par value, to Millennium Partners, L.P. in connection with the exercise of its outstanding warrant. The common shares were issued at
an exercise price of $2.25 per share, for an aggregate cash purchase price of $1.0 million. In connection with this exercise, DSW reclassified $3.6 million
from the warrant liability to paid in capital during the first quarter of fiscal 2011, for a total of $4.6 million increase to paid in capital.
The effect of derivative instruments on DSW’s, and prior to the Merger, RVI’s, consolidated statements of operations was as follows for the periods presented:
Fiscal years ended
February 2, 2013
January 28, 2012
(in thousands)
Warrants – related party $6,121
$11,071
Warrants – non-related party —
1,192
Conversion feature of debt —
41,651
Expense related to the change in fair value of derivative instruments $6,121
$53,914
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The balance sheet caption "Property and equipment, net" was comprised of the following as of the periods presented:
February 1, 2014
February 2, 2013
(in thousands)
Property and equipment:
Land
$1,110
$1,110
Furniture, fixtures and equipment
387,913
343,614
Buildings, building and leasehold improvements
325,340
291,572
Total property and equipment
714,363
636,296
Accumulated depreciation and amortization
(395,743)
(335,983)
Property and equipment, net
$ 318,620
$300,313
F- 25
Source: DSW Inc., 10-K, March 27, 2014 Powered by Morningstar® Document Research℠
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