Famous Footwear 2014 Annual Report Download - page 93

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* NON-GAAP FINANCIAL MEASURES
In this annual report, the company’s financial results are provided both in accordance with generally accepted accounting
principles (GAAP) and using certain non-GAAP financial measures. In particular, the company provides historic net
earnings (loss) and earnings (loss) per diluted share adjusted to exclude certain gains, charges and recoveries, which
are non-GAAP financial measures. These results are included as a complement to results provided in accordance
with GAAP because management believes these non-GAAP financial measures help identify underlying trends in the
company’s business and provide useful information to both management and investors by excluding certain items that
may not be indicative of the company’s core operating results. These measures should not be considered a substitute
for or superior to GAAP results.
SELECTED CONDENSED CONSOLIDATED FINANCIAL INFORMATION
DILUTED EARNINGS PER SHARE 2014 2013 2012
GAAP earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.89 $ 0.88 $ 0.64
Charges, other items
ASG acquisition and integration-related costs . . . . . . . . . . . . . . . . . . . . . . – – 0.01
Loss on debt extinguishment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.01 – –
Organizational changes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.03 – 0.03
Portfolio realignment
Brand exits and cost reductions . . . . . . . . . . . . . . . . . . . . . . . . . . . . – 0.15 0.37
Non-cash impairments/dispositions . . . . . . . . . . . . . . . . . . . . . . . . . . – 0.38 0.08
Disposal of Shoes.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.23) – –
Tax on dividend of international subsidiary . . . . . . . . . . . . . . . . . . . . . . . . 0.02 – –
Total charges, other items . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.17) 0.53 0.49
Adjusted earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.72 $ 1.41 $ 1.13
FORWARD LOOKING STATEMENTS AND RISK FACTORS
This document contains certain forward-looking statements and expectations regarding the company’s future performance
and the future performance of its brands. Such statements are subject to various risks and uncertainties that could cause
actual results to dier materially. These risks include (i) changing consumer demands, which may be influenced by
consumers’ disposable income, which in turn can be influenced by general economic conditions; (ii) intense competition
within the footwear industry; (iii) rapidly changing fashion trends and purchasing patterns; (iv) customer concentration
and increased consolidation in the retail industry; (v) political and economic conditions or other threats to the continued
and uninterrupted flow of inventory from China and other Asia-Pac countries, where Brown Shoe Company relies heavily
on third-party manufacturing facilities for a significant amount of their inventory; (vi) the ability to recruit and retain senior
management and other key associates; (vii) the ability to attract, retain and maintain good relationships with licensors and
protect intellectual property rights; (viii) the ability to secure/exit leases on favorable terms; (ix) the ability to maintain
relationships with current suppliers; (x) compliance with applicable laws and standards with respect to lead content in
paint and other product safety issues; (xi) the ability to source product at a pace consistent with increased demand for
footwear; and (xii) the impact of rising prices in a potentially inflationary global environment. The company’s reports to
the Securities and Exchange Commission contain detailed information relating to such factors, including, without limitation,
the information under the caption Risk Factors in Item 1A of the company’s Annual Report on Form 10-K for the year ended
January 31, 2015, which information is incorporated by reference herein and updated by the company’s Quarterly Reports
on Form 10-Q. The company does not undertake any obligation or plan to update these forward-looking statements, even
though its situation may change.