Famous Footwear 2012 Annual Report Download - page 26

24 2012 BROWN SHOE COMPANY, INC. FORM 10-K
ITEM 6 SELECTED FINANCIAL DATA
The selected financial data set forth below should be read in conjunction with the consolidated financial statements and
notes thereto and the other information contained elsewhere in this report.
2012 2011 2010 2009 2008
($ thousands, except per share amounts) (53 Weeks) (52 Weeks) (52 Weeks) (52 Weeks) (52 Weeks)
Operations:
Net sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,598,065 $ 2,582,824 $ 2,504,091 $ 2,241,968 $ 2,276,362
Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,587,706 1,586,184 1,500,537 1,338,829 1,394,126
Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,010,359 996,640 1,003,554 903,139 882,236
Selling and administrative expenses . . . . . . . . . . . . . . . . . . . 918,957 937,419 922,976 859,693 851,893
Restructuring and other special charges, net . . . . . . . . . . . . . . 24,018 23,671 7,914 11,923 54,278
Impairment of goodwill and intangible assets(4) . . . . . . . . . . . . . 5,777 – – – 149,150
Equity in net loss of nonconsolidated aliate . . . . . . . . . . . . . . – – – – 216
Operating earnings (loss) . . . . . . . . . . . . . . . . . . . . . . . . . 61,607 35,550 72,664 31,523 (173,301)
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (23,382) (26,141) (19,647) (20,195) (17,105)
Loss on early extinguishment of debt . . . . . . . . . . . . . . . . . . – (1,003) – – –
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 322 644 203 374 1,800
Earnings (loss) before income taxes from continuing operations . . . 38,547 9,050 53,220 11,702 (188,606)
Income tax (provision) benefit . . . . . . . . . . . . . . . . . . . . . . (11,343) (326) (16,160) (1,259) 53,793
Net earnings (loss) from continuing operations . . . . . . . . . . . . . 27,204 8,724 37,060 10,443 (134,813)
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) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,204 24,390 37,060 10,443 (134,813)
Net (loss) earnings attributable to noncontrolling interests . . . . . . (287) (199) (173) 943 (1,575)
Net earnings (loss) attributable to Brown Shoe Company, Inc. . . . . $ 27,491 24,589 $ 37,233 $ 9,500 $ (133,238)
Operations:
Return on net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1% 1.0% 1.5% 0.4% (5.9)%
Return on beginning Brown Shoe Company, Inc. shareholders’ equity . 6.7% 5.9% 9.3% 2.4% (23.9)%
Return on average invested capital(1) . . . . . . . . . . . . . . . . . . . 5.5% 2.9% 7.5% 3.6% (17.2)%
Dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12,011 $ 12,076 $ 12,254 $ 12,009 $ 11,855
Purchases of property and equipment . . . . . . . . . . . . . . . . . . $ 55,801 $ 27,857 $ 30,781 $ 24,880 $ 60,417
Capitalized software . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,928 $ 10,707 $ 24,046 $ 25,098 $ 16,327
Depreciation and amortization(2) . . . . . . . . . . . . . . . . . . . . . $ 57,344 $ 61,449 $ 52,51 7 $ 53,295 $ 56,510
Per Common Share:
Basic earnings (loss) per common share:
From continuing operations . . . . . . . . . . . . . . . . . . . . . $ 0.64 $ 0.20 $ 0.85 $ 0.22 $ (3.21)
From discontinued operations . . . . . . . . . . . . . . . . . . . . – 0.37 – – –
Basic earnings (loss) per common share attributable to
Brown Shoe Company, Inc. shareholders . . . . . . . . . . . . . . 0.64 0.57 0.85 0.22 (3.21)
Diluted earnings (loss) per common share:
From continuing operations . . . . . . . . . . . . . . . . . . . . . 0.64 0.20 0.85 0.22 (3.21)
From discontinued operations . . . . . . . . . . . . . . . . . . . . – 0.36 – – –
Diluted earnings (loss) per common share attributable to
Brown Shoe Company, Inc. shareholders . . . . . . . . . . . . . . 0.64 0.56 0.85 0.22 (3.21)
Dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.28 0.28 0.28 0.28 0.28
Ending Brown Shoe Company, Inc. shareholders’ equity . . . . . . . . 9.91 9.83 9.45 9.38 9.31
Financial Position:
Receivables, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 125,683 $ 154,022 $ 113,937 $ 84,297 $ 84,252
Inventories, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 533,275 561,797 524,250 456,682 466,002
Working capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 303,319 290,558 296,376 294,186 279,297
Property and equipment, net . . . . . . . . . . . . . . . . . . . . . . . 146,089 131,471 135,632 141,561 157,451
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,171,259 1,227,476 1,148,043 1,040,150 1,026,031
Average net assets(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 490,245 440,774 483,398 465,057 496,979
Borrowings under our revolving credit agreement . . . . . . . . . . . 105,000 201,000 198,000 94,500 112,500
Long-term debt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198,823 198,633 150,000 150,000 150,000
Brown Shoe Company, Inc. shareholders’ equity . . . . . . . . . . . . 425,129 412,669 415,080 402,171 394,104
Average common shares outstanding – basic . . . . . . . . . . . . . . 40,659 41,126 42,156 41,585 41,525
Average common shares outstanding – diluted . . . . . . . . . . . . . 40,794 41,668 42,487 41,649 41,525
All data presented reflects the fiscal year ended on the Saturday nearest to January 31. Certain prior-period amounts have been reclassified to conform to
current-period presentation. These reclassifications 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 financial 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 defined 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 reflected within interest expense in our consolidated statement of earnings and totaled
$2.6 million in 2012, $2.3 million in 2011, $2.2 million in 2010, $2.2 million in 2009 and $1.6 million in 2008.
(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 2012, we recognized a non-cash impairment charge related to an intangible asset of $5.8 million. During 2008, we recognized non-cash
impairment charges to goodwill and intangibles totaling $149.2 million.