Famous Footwear 2004 Annual Report Download - page 62

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Table of Contents
Notes to Consolidated Financial Statements (continued)
BROWN SHOE COMPANY, INC. 2003 FORM 10-K
$3.5 million for Famous Footwear, $10.2 million for Wholesale operations, $5.3 million for Naturalizer Retail and $1.4 million for the Other
segment.
8. PROPERTY AND EQUIPMENT
Property and equipment consisted of the following:
($ thousands) January 31, 2004 February 1, 2003
Land and buildings $ 30,944 $31,075
Leasehold improvements 89,196 73,993
Technology equipment 26,994 23,706
Machinery and equipment 24,319 24,801
Furniture and fixtures 94,689 94,851
Construction in progress 6,009 7,540
272,151 255,966
Allowances for depreciation and amortization (186,603) (171,153)
$ 85,548 $84,813
Useful lives of property and equipment are as follows:
Buildings 15-30 years
Leasehold improvements 5-20 years
Technology equipment 3-5 years
Machinery and equipment 8-20 years
Furniture and fixtures 3-10 years
Selling and administrative expenses include charges for impaired assets of $2.7 million, $1.7 million and $0.9 million, which were
recognized in fiscal 2003, 2002 and 2001, respectively. Fair value was based on estimated future cash flows to be generated by retail stores,
discounted at a market rate of interest.
9. LONG-TERM AND SHORT-TERM FINANCING ARRANGEMENTS
Long-term debt, including capitalized lease obligations, net of unamortized discounts, consisted of the following:
($ thousands) January 31, 2004 February 1, 2003
Revolving Credit Agreement, maturing in 2006 $100,000 $100,000
7.36% Senior Notes — 10,000
7.15% Debentures — 10,000
Capitalized lease obligations — 3,493
$100,000 $123,493
In December 2001, the Company entered into a five-year, secured $350 million revolving bank credit agreement. The amount that can be
borrowed under this agreement is based on Availability, which is the sum of eligible accounts receivable and inventory less certain
adjustments, less outstanding borrowings and letters of credit. If Availability falls below a certain level, the Company would be required to
reclassify all outstanding borrowings under the Revolving Credit Agreement to a current liability. In addition, certain covenants would be
triggered if Availability were to fall below specified levels, including fixed charge coverage requirements if Availability falls below $35 million
and default if Availability falls below $25 million. The agreement includes certain other covenants and restrictions. Interest on borrowings