DSW 2013 Annual Report Download - page 78

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Table of Contents


Uncertain Tax Positions- As of February 1, 2014, February 2, 2013 and January 28, 2012, unrecognized tax benefits of $1.8 million, $1.3 million and
$1.2 million, respectively, of the total unrecognized tax benefits would affect DSW’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 1, 2014
February 2, 2013
January 28, 2012
(in thousands)
Beginning balance $1,253
$2,315
$2,899
Additions for tax positions taken in the current year 1,184
400
374
Reductions for tax positions taken in prior years:
Changes in judgment (69)
(345)
(870)
Lapses of applicable statutes of limitations (530)
(755)
(86)
Settlements during the year —
(362)
(2)
Ending balance $ 1,838
$1,253
$2,315
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 1, 2014 and February 2, 2013, $0.2 million and $0.3 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 2010. DSW estimates the range of
possible changes that may result from any current and future tax examinations to be insignificant at this time.
 
In DSW’s opinion, the unaudited quarterly financial information reflects all normal and recurring accruals and adjustments necessary for a fair presentation
of DSW’s net income for interim periods. Quarterly results are not necessarily indicative of a full year’s operations because of various factors. The following
tables present DSW’s unaudited quarterly financial information for the periods presented:
Thirteen weeks ended
May 4, 2013
August 3, 2013
November 2, 2013
February 1, 2014
(in thousands, except per share data)
Net sales $601,362
$562,063
$632,976
$572,267
Cost of sales (418,365)
(378,621)
(420,106)
(412,289)
Operating expenses (128,711)
(129,461)
(124,614)
(115,113)
Operating profit 54,286
53,981
88,256
44,865
Interest income, net 340
481
1,036
762
Income from continuing operations before income taxes 54,626
54,462
89,292
45,627
Income tax provision (20,111)
(20,742)
(34,331)
(17,521)
Net income 34,515
33,720
54,961
28,106
Diluted earnings per share(1):$0.38
$0.37
$0.60
$0.30
F- 35
Source: DSW Inc., 10-K, March 27, 2014 Powered by Morningstar® Document Research℠
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except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.