DSW 2014 Annual Report Download - page 56

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Table of Contents
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
Consistent with DSW Inc.'s related party transaction policy, the audit committee of DSW Inc.'s board of directors reviewed and approved the transactions
mentioned above. The following table highlights the key financial statement line items impacted by the transaction:
Impact on Consolidated Financial Statements
Fiscal 2012
Financial Statement Section/Line item
Impact on the Consolidated Statement of Cash Flows:
(in thousands)
Historical cost carrying amount
$ (32,443)
Net cash and equivalents used in investing activities from
continuing operations
Equity impact of Corporate Headquarters and Distribution Center
Acquisition
(39,557)
Net cash and equivalents used in financing activities from
continuing operations
Total cash transferred to the sellers
$ (72,000)
Impact on the Consolidated Balance Sheet:
Historical cost carrying amount
$ 32,443
Less: Tenant allowances and deferred rent
(8,310)
Total net book value of assets recorded
$ 24,133
Property and equipment, net
Impact on the Consolidated Statement of Shareholders' Equity:
Equity impact of Corporate Headquarters and Distribution Center
Acquisition
$ (39,557)
Tax impact of Corporate Headquarters and Distribution Center
Acquisition
17,877
Adjustment to the tax impact of basis difference of Corporate
Headquarters and Distribution Center Acquisition
(3,313)
Basis difference related to acquisition of commonly controlled entity
$ (24,993)
Acquisition of commonly controlled entity
Prior to the transfer of the buildings to DSW Inc., lease payments by DSW Inc. for the buildings were $2.6 million for fiscal 2012.
Equity Investment- In fiscal 2012, DSW received a return of capital of $1.2 million when the investment, which was majority held by a Schottenstein
Affiliate, was sold to a third party.
Other- Purchases and services from related parties were $0.9 million, $0.9 million and $1.3 million in fiscal 2014, 2013 and 2012, respectively. In fiscal 2013
and 2012, $1.8 million and $0.2 million, respectively, were reimbursements to a Schottenstein Affiliate in connection with DSW Inc.'s test sale of luxury
merchandise, which were then primarily paid to unrelated vendors.
License Agreement with Town Shoes- In May 2014, DSW Inc. entered into a licensing agreement with Town Shoes, which allows Town Shoes to use the
DSW Designer Shoe Warehouse tradename for their new larger concept Canadian stores. Town Shoes pays DSW Inc. a royalty fee based on a percentage of
net sales. The first two Canadian DSW stores opened in August 2014.
F- 16
Source: DSW Inc., 10-K, March 26, 2015 Powered by Morningstar® Document Research℠
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