Famous Footwear 2011 Annual Report Download - page 25

2011 BROWN SHOE COMPANY, INC. FORM 10-K 23
ITEM 6 SELECTED FINANCIAL DATA
The selected fi nancial data set forth below should be read in conjunction with the consolidated fi nancial statements and
notes thereto and the other information contained elsewhere in this report.
2011 2010 2009 2008 2007
($ thousands, except per share amounts) (52 Weeks) (52 Weeks) (52 Weeks) (52 Weeks) (52 Weeks)
Operations:
Net sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,582,824 $ 2,504,091 $ 2,241,968 $ 2,276,362 $ 2,359,909
Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,586,184 1,500,537 1,338,829 1,394,126 1,416,510
Gross profi t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 996,640 1,003,554 903,139 882,236 943,399
Selling and administrative expenses . . . . . . . . . . . . . . . . . . . 937,419 922,976 859,693 851,893 827,350
Restructuring and other special charges, net . . . . . . . . . . . . . . 23,671 7,914 11,923 54,278 19,000
Impairment of goodwill and intangible assets. . . . . . . . . . . . . . – – – 149,150(4) –
Equity in net loss of nonconsolidated a liate . . . . . . . . . . . . . . – – – 216 439
Operating earnings (loss) . . . . . . . . . . . . . . . . . . . . . . . . . 35,550 72,664 31,523 (173,301) 96,610
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (26,141) (19,647) (20,195) (17,105) (16,232)
Loss on early extinguishment of debt . . . . . . . . . . . . . . . . . . (1,003) – – – –
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 644 203 374 1,800 3,434
Earnings (loss) before income taxes from continuing operations . . . 9,050 53,220 11,702 (188,606) 83,812
Income tax (provision) benefi t . . . . . . . . . . . . . . . . . . . . . . (326) (16,160) (1,259) 53,793 (23,483)
Net earnings (loss) from continuing operations . . . . . . . . . . . . . 8,724 37,060 10,443 (134,813) 60,329
Discontinued operations:
Earnings from operations of subsidiary, net of tax . . . . . . . . . 1,701 – – – –
Gain on sale of subsidiary, net of tax. . . . . . . . . . . . . . . . . 13,965 – – – –
Net earnings from discontinued operations . . . . . . . . . . . . . . . 15,666 – – – –
Net earnings (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,390 37,060 10,443 (134,813) 60,329
Net (loss) earnings attributable to noncontrolling interests . . . . . . (199) (173) 943 (1,575) (98)
Net earnings (loss) attributable to Brown Shoe Company, Inc. . . . . $ 24,589 $ 37,233 $ 9,500 $ (133,238) $ 60,427
Operations:
Return on net sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.0% 1.5% 0.4% (5.9)% 2.6%
Return on beginning Brown Shoe Company, Inc. shareholders’ equity . 5.9% 9.3% 2.4% (23.9)% 11.5%
Return on average invested capital(1) . . . . . . . . . . . . . . . . . . . 4.0% 7.8% 3.6% (17.2)% 9.5%
Dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12,076 $ 12,254 $ 12,009 $ 11,855 $ 12,312
Purchases of property and equipment . . . . . . . . . . . . . . . . . . $ 27,857 $ 30,781 $ 24,880 $ 60,417 $ 41,355
Capitalized software . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10,707 $ 24,046 $ 25,098 $ 16,327 $ 5,770
Depreciation and amortization(2) . . . . . . . . . . . . . . . . . . . . . $ 61,449 $ 52,517 $ 53,295 $ 56,510 $ 52,148
Per Common Share:
Basic earnings (loss) per common share attributable to
Brown Shoe Company, Inc. shareholders . . . . . . . . . . . . . . $ 0.57 $ 0.85 $ 0.22 $ (3.21) $ 1.38
Diluted earnings (loss) per common share attributable to
Brown Shoe Company, Inc. shareholders . . . . . . . . . . . . . . 0.56 0.85 0.22 (3.21) 1.36
Dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.28 0.28 0.28 0.28 0.28
Ending Brown Shoe Company, Inc. shareholders’ equity . . . . . . . . 9.83 9.45 9.38 9.31 13.35
Financial Position:
Receivables, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 154,022 $ 113,937 $ 84,297 $ 84,252 $ 116,873
Inventories, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 561,797 524,250 456,682 466,002 435,682
Working capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 290,558 296,376 294,186 279,297 333,142
Property and equipment, net . . . . . . . . . . . . . . . . . . . . . . . 131,471 135,632 141,561 157,451 141,964
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,227,476 1,148,043 1,040,150 1,026,031 1,099,841
Average net assets(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 440,774 483,398 465,057 496,979 496,996
Borrowings under our revolving credit agreement . . . . . . . . . . . 201,000 198,000 94,500 112,500 15,000
Long-term debt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198,633 150,000 150,000 150,000 150,000
Brown Shoe Company, Inc. shareholders’ equity . . . . . . . . . . . . 412,669 415,080 402,171 394,104 558,577
Average common shares outstanding – basic . . . . . . . . . . . . . . 41,126 42,156 41,585 41,525 43,223
Average common shares outstanding – diluted . . . . . . . . . . . . . 41,668 42,487 41,649 41,525 43,916
All data presented refl ects the fi scal year ended on the Saturday nearest to January 31. Certain prior-period amounts have been reclassifi ed
to conform to current-period presentation. These reclassifi cations did not a ect net earnings (loss) attributable to Brown Shoe Company, Inc.
See Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, for additional information related to the
selected fi nancial data above.
(1) Return on average invested capital is calculated by dividing operating earnings (loss) for the period, adjusted for income taxes at the
applicable e ective rate, by the average of each month-end invested capital balance during the year. Invested capital is defi ned as
Brown Shoe Company, Inc. shareholders’ equity plus long-term debt and borrowings under the Credit Agreement.
(2) Depreciation and amortization includes depreciation of property and equipment and amortization of capitalized software, intangibles
and debt issuance costs. The amortization of debt issuance costs is refl ected within interest expense in our consolidated statement of
earnings and totaled $2.3 million in 2011, $2.2 million in 2010, $2.2 million in 2009, $1.6 million in 2008 and $1.5 million in 2007.
(3) Average net assets are calculated as the average of each month-end net asset balance during the year. Net assets are calculated as the
sum of working capital, property and equipment, net and capitalized software, net.
(4) During 2008, we recognized non-cash impairment charges to goodwill and intangibles totaling $149.2 million.