Famous Footwear 2013 Annual Report Download - page 85

2013 BROWN SHOE COMPANY, INC. FORM 10-K 83
SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS
Col. A Col. B Col. C Col. D Col. E
Additions
Balance at Charged Charged Balance
Beginning Costs and Other Accounts- Deductions- at End
Description of Period Expenses Describe Describe of Period
($ thousands)
YEAR ENDED FEBRUARY 1, 2014
Deducted from assets or accounts:
Doubtful accounts and allowances . . . . . . . . $ 973 $ 602 – $ 743(A) $ 832
Customer allowances . . . . . . . . . . . . . . . 19,080 45,099 – 44,317(B) 19,862
Customer discounts . . . . . . . . . . . . . . . . 489 4,809 – 4,522(B) 776
Inventory valuation allowances. . . . . . . . . . 19,080 53,881 – 55,222(C) 17,739
Deferred tax asset valuation allowance . . . . . 8,014 6,490 – 555(D) 13,949
YEAR ENDED FEBRUARY 2, 2013
Deducted from assets or accounts:
Doubtful accounts and allowances . . . . . . . . $ 1,352 $ 1,329 – $ 1,708(A) $ 973
Customer allowances . . . . . . . . . . . . . . . 19,465 44,759 – 45,144(B) 19,080
Customer discounts . . . . . . . . . . . . . . . . 350 4,284 – 4,145(B) 489
Inventory valuation allowances. . . . . . . . . . 17,105 56,797 – 54,822(C) 19,080
Deferred tax asset valuation allowance . . . . . 6,465 1,815 – 266(D) 8,014
YEAR ENDED JANUARY 28, 2012
Deducted from assets or accounts:
Doubtful accounts and allowances . . . . . . . . $ 1,059 $ 1,046 – $ 753(A) $ 1,352
Customer allowances . . . . . . . . . . . . . . . 15,505 48,360 – 44,400(B) 19,465
Customer discounts . . . . . . . . . . . . . . . . 296 3,450 – 3,396(B) 350
Inventory valuation allowances. . . . . . . . . . 14,017 49,496 – 46,408(C) 17,105
Deferred tax asset valuation allowance . . . . . 6,751 495 – 781(D) 6,465
(A) Accounts written o, net of recoveries.
(B) Discounts and allowances granted to customers of the Wholesale Operations segment.
(C) Adjustment upon disposal of related inventories.
(D) Reflects reductions to valuation allowance for the net operating loss carryforwards for certain states based
on the Company’s expectations for utilization of net operating loss carryforwards.
ITEM 9 CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.
ITEM 9A CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
It is the Chief Executive Ocer’s and Chief Financial Ocer’s ultimate responsibility to ensure we maintain disclosure
controls and procedures designed to provide reasonable assurance that information required to be disclosed in the reports
that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized, and reported within
the time periods specified in the Commission’s rules and forms and is accumulated and communicated to our management,
including our principal executive and principal financial ocers, or persons performing similar functions, as appropriate
to allow timely decisions regarding required disclosure. Our disclosure controls and procedures include mandatory
communication of material events; automated accounting processing and reporting; management review of monthly,
quarterly and annual results; an established system of internal controls; and internal control reviews by our internal auditors.
A control system, no matter how well-conceived or operated, can provide only reasonable, not absolute, assurance that
the objectives of the control system are met. Furthermore, the design of a control system must reflect the fact there
are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent
limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and
instances of fraud, if any, have been detected. These inherent limitations include the realities that judgments in decision-
making can be faulty, and breakdowns can occur because of simple error or mistake. Additionally, controls can be
circumvented by the individual acts of some persons, by collusion of two or more people or by management override of
the controls. The design of any system of controls is based in part upon certain assumptions about the likelihood of future
events, and there can be no assurance any design will succeed in achieving its stated goals under all potential future
conditions; over time, controls may become inadequate because of changes in conditions or the degree of compliance
with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-eective control system,
misstatements due to errors or fraud may occur and not be detected. Our disclosure controls and procedures are designed