Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2018 | Mar. 02, 2018 | Jul. 28, 2017 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | CALERES INC | ||
Entity Central Index Key | 14,707 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Current Fiscal Year End Date | --02-03 | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Document Type | 10-K | ||
Document Period End Date | Feb. 3, 2018 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 43,028,130 | ||
Entity Public Float | $ 1,133.1 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Feb. 03, 2018 | Jan. 28, 2017 |
Current assets | ||
Cash and cash equivalents | $ 64,047 | $ 55,332 |
Receivables, net of allowances of $27,098 in 2017 and $23,652 in 2016 | 152,613 | 153,121 |
Inventories, net of adjustments to last-in, first-out cost of $4,038 in 2017 and $4,345 in 2016 | 569,379 | 585,764 |
Income Taxes | 0 | 9,659 |
Prepaid expenses and other current assets | 60,750 | 39,869 |
Total current assets | 846,789 | 843,745 |
Prepaid pension costs | 62,575 | 32,489 |
Property and equipment, net | 212,799 | 219,196 |
Deferred income taxes | 2,305 | 2,486 |
Goodwill | 127,081 | 127,098 |
Intangible assets, net | 212,087 | 216,660 |
Other assets | 25,779 | 33,599 |
Total assets | 1,489,415 | 1,475,273 |
Current liabilities | ||
Borrowings under revolving credit agreement | 0 | 110,000 |
Trade accounts payable | 272,962 | 266,370 |
Employee compensation and benefits | 45,226 | 44,644 |
Income taxes | 8,222 | 3,599 |
Other accrued expenses | 103,749 | 102,982 |
Total current liabilities | 430,159 | 527,595 |
Other liabilities | ||
Long-term debt | 197,472 | 197,003 |
Deferred rent | 53,071 | 51,124 |
Income taxes | 11,933 | 0 |
Deferred income taxes | 50,667 | 52,702 |
Other liabilities | 27,151 | 32,363 |
Total other liabilities | 340,294 | 333,192 |
Equity | ||
Preferred Stock, $1.00 par value, 1,000,000 shares authorized; no shares outstanding | 0 | 0 |
Common stock, $0.01 par value, 100,000,000 shares authorized; 43,031,689 and 42,963,219 shares outstanding, net of 3,055,106 and 3,123,576 treasury shares in 2017 and 2016, respectively | 430 | 430 |
Additional paid-in capital | 136,460 | 121,537 |
Accumulated other comprehensive loss | (15,170) | (30,434) |
Retained earnings | 595,769 | 521,584 |
Total Caleres, Inc. shareholders’ equity | 717,489 | 613,117 |
Noncontrolling interests | 1,473 | 1,369 |
Total equity | 718,962 | 614,486 |
Total liabilities and equity | $ 1,489,415 | $ 1,475,273 |
Consolidated Balance Sheets Con
Consolidated Balance Sheets Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Thousands | Feb. 03, 2018 | Jan. 28, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for Doubtful Accounts Receivable, Current | $ 27,098 | $ 23,652 |
Inventory, LIFO Reserve | $ 4,038 | $ 4,345 |
Preferred Stock, Par or Stated Value Per Share | $ 1 | $ 1 |
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares, Outstanding | 43,031,689 | 42,963,219 |
Treasury Stock, Shares | 3,055,106 | 3,123,576 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Feb. 03, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Jan. 28, 2017 | Oct. 29, 2016 | Jul. 30, 2016 | Apr. 30, 2016 | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |||||||||
Income Statement [Abstract] | |||||||||||||||||||
Net sales | $ 702,465 | $ 774,656 | $ 676,954 | $ 631,509 | $ 639,488 | $ 732,230 | $ 622,937 | $ 584,733 | $ 2,785,584 | $ 2,579,388 | $ 2,577,430 | ||||||||
Cost of goods sold | 1,616,935 | 1,517,397 | 1,529,627 | ||||||||||||||||
Gross profit | 293,395 | 316,885 | 287,461 | 270,908 | 260,872 | 293,771 | 259,555 | 247,793 | 1,168,649 | 1,061,991 | 1,047,803 | ||||||||
Selling and administrative expenses | 1,023,703 | 927,602 | 912,696 | ||||||||||||||||
Restructuring and other special charges, net | 20,200 | 4,915 | 23,404 | 0 | |||||||||||||||
Operating earnings | 140,031 | 110,985 | 135,107 | ||||||||||||||||
Interest expense | (18,089) | (15,111) | (16,589) | ||||||||||||||||
Loss on early extinguishment of debt | 0 | 0 | (10,651) | ||||||||||||||||
Interest income | 764 | 1,380 | 899 | ||||||||||||||||
Earnings before income taxes | 122,706 | 97,254 | 108,766 | ||||||||||||||||
Income tax provision | (35,475) | (31,168) | (26,942) | ||||||||||||||||
Net earnings | 20,301 | [1] | 34,373 | [1] | 17,674 | [1] | 14,884 | [1] | (6,196) | [2] | 34,726 | [2] | 19,679 | [2] | 17,878 | [2] | 87,231 | 66,086 | 81,824 |
Net earnings attributable to noncontrolling interests | 31 | 428 | 345 | ||||||||||||||||
Net earnings attributable to Caleres, Inc. | $ 20,316 | [1] | $ 34,387 | [1] | $ 17,595 | [1] | $ 14,902 | [1] | $ (6,622) | [2] | $ 34,730 | [2] | $ 19,768 | [2] | $ 17,782 | [2] | $ 87,200 | $ 65,658 | $ 81,479 |
Basic earnings per common share: | |||||||||||||||||||
Basic earnings per common share attributable to Caleres, Inc. shareholders | $ 0.47 | [3] | $ 0.80 | [3] | $ 0.41 | [3] | $ 0.35 | [3] | $ (0.16) | [3] | $ 0.81 | [3] | $ 0.46 | [3] | $ 0.41 | [3] | $ 2.03 | $ 1.52 | $ 1.86 |
Diluted earnings per common share: | |||||||||||||||||||
Diluted earnings per common share attributable to Caleres, Inc. shareholders | $ 0.47 | [3] | $ 0.80 | [3] | $ 0.41 | [3] | $ 0.35 | [3] | $ (0.16) | [3] | $ 0.81 | [3] | $ 0.46 | [3] | $ 0.41 | [3] | $ 2.02 | $ 1.52 | $ 1.85 |
[1] | The first and second quarters of 2017 reflect the impact of amortization of the inventory fair value adjustment required for purchase accounting of $1.9 million and $1.1 million, respectively, on an after-tax basis, as further described in Note 2 to the consolidated financial statements and several restructuring and other charges totaling $0.7 million and $1.9 million, respectively, on an after-tax basis, as further described in Note 4 to the consolidated financial statements. The fourth quarter of 2017 reflects restructuring charges totaling $0.6 million, on an after-tax basis, as further described in Note 4 to the consolidated financial statements and the benefit of income tax reform of $0.3 million, as further described in Note 6 to the consolidated financial statements. | ||||||||||||||||||
[2] | The fourth quarter of 2016 reflects the impact of several restructuring and other charges totaling $20.2 million on an after-tax basis, as further described in Note 4 to the consolidated financial statements. | ||||||||||||||||||
[3] | EPS for the quarters may not sum to the annual amount as each period is computed on a discrete period basis. |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Feb. 03, 2018 | [1] | Oct. 28, 2017 | [1] | Jul. 29, 2017 | [1] | Apr. 29, 2017 | [1] | Jan. 28, 2017 | [2] | Oct. 29, 2016 | [2] | Jul. 30, 2016 | [2] | Apr. 30, 2016 | [2] | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | |||||||||||||||||||
Net earnings | $ 20,301 | $ 34,373 | $ 17,674 | $ 14,884 | $ (6,196) | $ 34,726 | $ 19,679 | $ 17,878 | $ 87,231 | $ 66,086 | $ 81,824 | ||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||
Foreign Currency Translation Adjustment | 1,116 | 1,045 | (224) | ||||||||||||||||
Pension and other postretirement benefit adjustments | 18,794 | (24,728) | (8,589) | ||||||||||||||||
Derivative financial instruments | 1,101 | (934) | 168 | ||||||||||||||||
Other comprehensive income (loss), net of tax | 21,011 | (24,617) | (8,645) | ||||||||||||||||
Comprehensive income | 108,242 | 41,469 | 73,179 | ||||||||||||||||
Comprehensive income attributable to noncontrolling interests | 104 | 381 | 276 | ||||||||||||||||
Comprehensive income attributable to Caleres, Inc. | $ 108,138 | $ 41,088 | $ 72,903 | ||||||||||||||||
[1] | The first and second quarters of 2017 reflect the impact of amortization of the inventory fair value adjustment required for purchase accounting of $1.9 million and $1.1 million, respectively, on an after-tax basis, as further described in Note 2 to the consolidated financial statements and several restructuring and other charges totaling $0.7 million and $1.9 million, respectively, on an after-tax basis, as further described in Note 4 to the consolidated financial statements. The fourth quarter of 2017 reflects restructuring charges totaling $0.6 million, on an after-tax basis, as further described in Note 4 to the consolidated financial statements and the benefit of income tax reform of $0.3 million, as further described in Note 6 to the consolidated financial statements. | ||||||||||||||||||
[2] | The fourth quarter of 2016 reflects the impact of several restructuring and other charges totaling $20.2 million on an after-tax basis, as further described in Note 4 to the consolidated financial statements. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Statement of Cash Flows [Abstract] | |||
Net earnings | $ 87,231 | $ 66,086 | $ 81,824 |
Net Cash Provided by (Used in) Operating Activities [Abstract] | |||
Depreciation | 45,799 | 39,419 | 35,428 |
Amortization of capitalized software | 14,198 | 13,007 | 12,323 |
Amortization of intangibles | 4,073 | 3,705 | 3,688 |
Amortization of debt issuance costs and debt discount | 1,761 | 1,726 | 1,167 |
Loss on early extinguishment of debt | 0 | 0 | 10,651 |
Share-based compensation expense | 11,298 | 7,725 | 7,491 |
Excess tax benefit related to share-based Plans | 0 | (2,251) | (2,651) |
Loss (gain) on disposal of property and equipment | 1,288 | 1,065 | (1,963) |
Impairment charges for property and equipment | 3,775 | 1,586 | 2,761 |
Impairment of note receivable | 0 | 7,281 | 0 |
Impairment of investment in nonconsolidated affiliate | 0 | 7,000 | 0 |
Deferred rent | 1,947 | 4,618 | 6,764 |
Deferred income tax (benefit) provision | (1,424) | (5,303) | 10,581 |
Provision for doubtful accounts | 1,336 | 1,384 | 480 |
Changes in operating assets and liabilities, net of acquired amounts | |||
Receivables | (828) | 5,433 | (17,438) |
Inventories | 18,099 | 13,835 | (5,270) |
Prepaid expenses and other current and noncurrent assets | (32,096) | 14,226 | (8,654) |
Trade accounts payable | 6,160 | 16,074 | 21,881 |
Accrued expenses and other liabilities | 2,247 | (15,051) | (1,865) |
Income taxes, net | 26,208 | 1,329 | (10,308) |
Other, net | 303 | 728 | 2,262 |
Net cash provided by operating activities | 191,375 | 183,622 | 149,152 |
Investing Activities | |||
Purchases of property and equipment | (44,720) | (50,523) | (73,479) |
Proceeds from disposal of property and equipment | 0 | 0 | 7,433 |
Capitalized software | (6,458) | (9,039) | (7,735) |
Acquisition cost, net of cash received | 0 | (259,932) | 0 |
Net cash used for investing activities | (51,178) | (319,494) | (73,781) |
Financing Activities | |||
Borrowings under revolving credit agreement | 454,000 | 623,000 | 198,000 |
Repayments under revolving credit agreement | (564,000) | (513,000) | (198,000) |
Proceeds from issuance of 2023 senior notes | 0 | 0 | 200,000 |
Redemption of 2019 senior notes | 0 | 0 | (200,000) |
Dividends paid | (12,027) | (12,104) | (12,253) |
Debt issuance costs | 0 | 0 | (3,650) |
Acquisition of treasury stock | (5,993) | (23,139) | (4,921) |
Issuance of common stock under share-based plans, net | (3,816) | (4,188) | (5,297) |
Excess tax benefit related to share-based plans | 0 | 2,251 | 2,651 |
Net cash (used for) provided by financing activities | (131,836) | 72,820 | (23,470) |
Effect of exchange rate changes on cash and cash equivalents | 354 | 233 | (1,153) |
Increase (decrease) in cash and cash equivalents | 8,715 | (62,819) | 50,748 |
Cash and cash equivalents at beginning of period | 55,332 | 118,151 | 67,403 |
Cash and cash equivalents at end of period | $ 64,047 | $ 55,332 | $ 118,151 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity Consolidated Statement of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Parent | Noncontrolling Interest |
Shareholders' Equity at Jan. 31, 2015 | $ 541,622 | $ 437 | $ 138,957 | $ 2,712 | $ 398,804 | $ 540,910 | $ 712 |
Common stock shares outstanding at Jan. 31, 2015 | 43,752,031 | ||||||
Net earnings | $ 81,824 | 81,479 | 81,479 | 345 | |||
Foreign currency translation adjustment | (224) | (155) | (155) | (69) | |||
Unrealized gain (loss) on derivative financial instruments, net of tax | 168 | 168 | 168 | ||||
Pension and other postretirement benefit adjustments, net of tax | (8,589) | (8,589) | (8,589) | ||||
Comprehensive income | 73,179 | 72,903 | 276 | ||||
Dividends ($0.28 per share) | $ (12,253) | (12,253) | (12,253) | ||||
Acquisition of treasury stock - shares | (151,500) | ||||||
Acquisition of treasury stock | $ (4,921) | (2) | (4,919) | (4,921) | |||
Issuance of common stock under share-based plans, net - shares | 59,682 | ||||||
Issuance of common stock under share-based plans, net | $ (5,297) | 2 | (5,299) | (5,297) | |||
Excess tax benefit related to share-based plans | 2,651 | 2,651 | 2,651 | ||||
Share-based compensation expense | 7,491 | 7,491 | 7,491 | ||||
Shareholders' Equity at Jan. 30, 2016 | $ 602,472 | 437 | 138,881 | (5,864) | 468,030 | 601,484 | 988 |
Common stock shares outstanding at Jan. 30, 2016 | 43,660,213 | ||||||
Net earnings | $ 66,086 | 65,658 | 65,658 | 428 | |||
Foreign currency translation adjustment | 1,045 | 1,092 | 1,092 | (47) | |||
Unrealized gain (loss) on derivative financial instruments, net of tax | (934) | (934) | (934) | ||||
Pension and other postretirement benefit adjustments, net of tax | (24,728) | (24,728) | (24,728) | ||||
Comprehensive income | 41,469 | 41,088 | 381 | ||||
Dividends ($0.28 per share) | $ (12,104) | (12,104) | (12,104) | ||||
Acquisition of treasury stock - shares | (900,000) | ||||||
Acquisition of treasury stock | $ (23,139) | (9) | (23,130) | (23,139) | |||
Issuance of common stock under share-based plans, net - shares | 203,006 | ||||||
Issuance of common stock under share-based plans, net | $ (4,188) | 2 | (4,190) | (4,188) | |||
Excess tax benefit related to share-based plans | 2,251 | 2,251 | 2,251 | ||||
Share-based compensation expense | 7,725 | 7,725 | 7,725 | ||||
Shareholders' Equity at Jan. 28, 2017 | $ 614,486 | 430 | 121,537 | (30,434) | 521,584 | 613,117 | 1,369 |
Common stock shares outstanding at Jan. 28, 2017 | 42,963,219 | ||||||
Net earnings | $ 87,231 | 87,200 | 87,200 | 31 | |||
Foreign currency translation adjustment | 1,116 | 1,043 | 1,043 | 73 | |||
Unrealized gain (loss) on derivative financial instruments, net of tax | 1,101 | 1,101 | 1,101 | ||||
Pension and other postretirement benefit adjustments, net of tax | 18,794 | 18,794 | 18,794 | ||||
Comprehensive income | 108,242 | 108,138 | 104 | ||||
Dividends ($0.28 per share) | $ (12,027) | (12,027) | (12,027) | ||||
Acquisition of treasury stock - shares | (225,000) | ||||||
Acquisition of treasury stock | $ (5,993) | (2) | (5,991) | (5,993) | |||
Issuance of common stock under share-based plans, net - shares | 293,470 | ||||||
Issuance of common stock under share-based plans, net | $ (3,816) | 2 | (3,818) | (3,816) | |||
Cumulative Effect on Retained Earnings, Tax | 441 | 1,112 | (671) | 441 | |||
Share-based compensation expense | 11,298 | 11,298 | 11,298 | ||||
Conversion of restricted stock units for non-employee directors | 6,331 | 6,331 | 6,331 | ||||
Shareholders' Equity at Feb. 03, 2018 | $ 718,962 | $ 430 | $ 136,460 | (15,170) | 595,769 | $ 717,489 | $ 1,473 |
Common stock shares outstanding at Feb. 03, 2018 | 43,031,689 | ||||||
Reclassification of stranded tax effects | $ (5,674) | $ 5,674 |
Consolidated Statement of Shar8
Consolidated Statement of Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||
Unrealized gain (loss) on derivative financial instruments, tax | $ 669 | $ (309) | $ 170 |
Pension and other postretirement benefit adjustments, tax | $ 12,801 | $ 15,766 | $ 5,537 |
Dividends | $ 0.28 | $ 0.28 | $ 0.28 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Feb. 03, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization Caleres, Inc., originally founded as Brown Shoe Company in 1878 and incorporated in 1913, is a global footwear retailer and wholesaler. In May 2015, the shareholders of Brown Shoe Company, Inc. approved a rebranding initiative that changed the name of the company to Caleres, Inc. (the "Company"). The Company’s shares are traded under the “CAL” symbol on the New York Stock Exchange. The Company provides a broad offering of licensed, branded and private-label casual, dress and athletic footwear products to women, men and children. Footwear is sold at a variety of price points through multiple distribution channels both domestically and internationally. The Company currently operates 1,262 retail shoe stores in the United States, Canada, Guam and Italy, primarily under the Famous Footwear, Naturalizer and Allen Edmonds names. In addition, through its Brand Portfolio segment, the Company designs, sources and markets footwear to retail stores domestically and internationally, including national chains, online retailers, department stores, mass merchandisers, independent retailers and catalogs. In 2017 , approximately 69% of the Company’s net sales were at retail, compared to 67% in 2016 and 66% in 2015 . Refer to Note 7 to the consolidated financial statements for additional information regarding the Company’s business segments. The Company’s business is seasonal in nature due to consumer spending patterns with higher back-to-school and holiday season sales. Traditionally, the third fiscal quarter accounts for a substantial portion of the Company’s earnings for the year. Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned and majority-owned subsidiaries, after the elimination of intercompany accounts and transactions. Noncontrolling Interests Noncontrolling interests in the Company’s consolidated financial statements result from the accounting for noncontrolling interests in partially-owned consolidated subsidiaries or affiliates. The Company consolidates B&H Footwear Company Limited (“B&H Footwear”), a joint venture, into its consolidated financial statements. Net earnings attributable to noncontrolling interests represent the share of net earnings that are attributable to the B&H Footwear equity. Transactions between the Company and B&H Footwear have been eliminated in the consolidated financial statements. As further discussed in Note 17 to the consolidated financial statements, in 2016, the Company communicated its intention to dissolve the joint venture upon the expiration of the joint venture agreement in August 2017. The parties are in the process of dissolving their joint venture arrangements. Accounting Period The Company’s fiscal year is the 52- or 53-week period ending the Saturday nearest to January 31. Fiscal year 2017 , which included 53 weeks, ended on February 3, 2018 . Fiscal years 2016 and 2015 , both of which included 52 weeks, ended on January 28, 2017 and January 30, 2016 , respectively. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Cash and Cash Equivalents The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. Receivables The Company evaluates the collectibility of selected accounts receivable on a case-by-case basis and makes adjustments to the bad debt reserve for expected losses. The Company considers factors such as ability to pay, bankruptcy, credit ratings and payment history. For all other accounts, the Company estimates reserves for bad debts based on experience and past due status of the accounts. If circumstances related to customers change, estimates of recoverability are further adjusted. The Company recognized a provision for doubtful accounts of $1.3 million in 2017 , $1.4 million in 2016 and $0.5 million in 2015 . Customer allowances represent reserves against our wholesale customers’ accounts receivable for margin assistance, product returns, customer deductions and co-op advertising allowances. The Company estimates the reserves needed for margin assistance by reviewing inventory levels on the retail floors, sell-through rates, historical dilution, current gross margin levels and other performance indicators of our major retail customers. Product returns and customer deductions are estimated using historical experience and anticipated future trends. Co-op advertising allowances are estimated based on customer agreements. The Company recognized a provision for customer allowances of $51.1 million in 2017 , $45.2 million in 2016 and $47.4 million in 2015 . Customer discounts represent reserves against our accounts receivable for discounts that our wholesale customers may take based on meeting certain order, payment or return guidelines. The Company estimates the reserves needed for customer discounts based upon customer net sales and respective agreement terms. The Company recognized a provision for customer discounts of $4.8 million in 2017 , $3.6 million in 2016 and $2.6 million in 2015 . Inventories All inventories are valued at the lower of cost and net realizable value with approximately 85% of consolidated inventories using the last-in, first-out (“LIFO”) method. An actual valuation of inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations are based on management’s estimates of expected year-end inventory levels and costs and are subject to the final year-end LIFO inventory valuation. If the first-in, first-out (“FIFO”) method had been used, consolidated inventories would have been $4.0 million and $4.3 million higher at February 3, 2018 and January 28, 2017 , respectively. Refer to Note 8 to the consolidated financial statements for further discussion. The costs of inventory, inbound freight and duties, markdowns, shrinkage and royalty expense are classified in cost of goods sold. Costs of warehousing and distribution are classified in selling and administrative expenses and are expensed as incurred. Such warehousing and distribution costs totaled $89.7 million , $77.7 million and $70.4 million in 2017 , 2016 and 2015 , respectively. Costs of overseas sourcing offices and other inventory procurement costs are reflected in selling and administrative expenses and are expensed as incurred. Such sourcing and procurement costs totaled $23.1 million , $21.5 million and $23.9 million in 2017 , 2016 and 2015 , respectively. The Company applies judgment in valuing inventories by assessing the net realizable value of inventories based on current selling prices. At the Famous Footwear segment and certain Brand Portfolio retail operations, markdowns are recognized when it becomes evident that inventory items will be sold at retail prices less than cost, plus the cost to sell the product. This policy causes the gross profit rates at Famous Footwear and, to a lesser extent, Brand Portfolio to be lower than the initial markup during periods when permanent price reductions are taken to clear product. Within the Brand Portfolio segment, markdown reserves generally reduce the carrying values of inventories to a level where, upon sale of the product, the Company will realize its normal gross profit rate. The Company believes these policies reflect the difference in operating models between the Famous Footwear and Brand Portfolio segments. Famous Footwear periodically runs promotional events to drive sales to clear seasonal inventories. The Brand Portfolio segment relies on permanent price reductions to clear slower-moving inventory. Markdowns are recorded to reflect expected adjustments to sales prices. In determining markdowns, management considers current and recently recorded sales prices, the length of time the product is held in inventory and quantities of various product styles contained in inventory, among other factors. The ultimate amount realized from the sale of certain products could differ from management estimates. The Company performs physical inventory counts or cycle counts on all merchandise inventory on hand throughout the year and adjusts the recorded balance to reflect the results. The Company records estimated shrinkage between physical inventory counts based on historical results. Computer Software Costs The Company capitalizes certain costs in other assets, including internal payroll costs incurred in connection with the development or acquisition of software for internal use. Other assets on the consolidated balance sheets include $22.3 million and $30.0 million of computer software costs as of February 3, 2018 and January 28, 2017 , respectively, which are net of accumulated amortization of $123.0 million and $111.7 million as of the end of the respective periods. Property and Equipment Property and equipment are stated at cost. Depreciation of property and equipment is provided over the estimated useful lives of the assets or the remaining lease terms, where applicable, using the straight-line method. Interest Expense Capitalized Interest Interest costs for major asset additions are capitalized during the construction or development period and amortized over the lives of the related assets. The Company capitalized interest of $1.4 million and $0.3 million in 2016 and 2015 , respectively, related to its expansion and modernization project at its Lebanon, Tennessee distribution center, with no corresponding interest capitalized in 2017. Interest Expense Interest expense includes interest for borrowings under both the Company’s short-term and long-term debt, net of amounts capitalized. Interest expense includes fees paid under the short-term revolving credit agreement for the unused portion of its line of credit. Interest expense also includes the amortization of deferred debt issuance costs and debt discount as well as the accretion of certain discounted noncurrent liabilities. Goodwill and Intangible Assets Goodwill and intangible assets deemed to have indefinite lives are not amortized but are subject to annual impairment tests. The Company adopted the provisions of Accounting Standards Codification (“ASC”), Intangibles-Goodwill and Other (ASC Topic 350) Testing Goodwill for Impairment , which permits, but does not require, a company to qualitatively assess indicators of a reporting unit’s fair value when it is unlikely that a reporting unit is impaired. If, after completing the qualitative assessment, a company believes it is likely that a reporting unit is impaired, a discounted cash flow analysis is prepared to estimate fair value. A fair value-based test is applied at the reporting unit level, which is generally at or one level below the operating segment level. The test compares the fair value of the Company’s reporting units to the carrying value of those reporting units. This test requires significant assumptions, estimates and judgments by management, and is subject to inherent uncertainties and subjectivity. The fair value of the reporting unit is determined using an estimate of future cash flows of the reporting unit and a risk-adjusted discount rate to compute a net present value of future cash flows. Projected net sales, gross profit, selling and administrative expense, capital expenditures and working capital requirements are based on the Company's internal projections. Discount rates reflect market-based estimates of the risks associated with the projected cash flows of the reporting units directly resulting from the use of its assets in its operations. Assumptions that market participants may use are also considered. The estimate of the fair values of the Company's reporting units is based on the best information available to the Company's management as of the date of the assessment. As further discussed below, during the third quarter of 2017, the Company adopted ASU 2017-04, Simplifying the Test for Goodwill Impairment, which eliminates the requirement to calculate the implied fair value of goodwill. Goodwill impairment is recorded if the fair value of the tangible and intangible assets exceeds the fair value of the reporting unit, not to exceed the carrying value of goodwill. As a result of the acquisition of Allen Edmonds in 2016 , the Company performed a quantitative assessment for the goodwill impairment test as of the first day of the fourth quarter of 2017 . Based on the results of the most recent goodwill impairment quantitative assessment, the Company determined that the fair values of the reporting units exceeded the carrying values. The Company performs impairment tests on its indefinite-lived intangible assets as of the first day of the fourth quarter of each fiscal year unless events indicate an interim test is required. The indefinite-lived intangible asset impairment reviews performed as of the first day of the Company’s fourth fiscal quarter resulted in no impairment charges. Definite-lived intangible assets, other than goodwill, are amortized over their useful lives and are reviewed for impairment if and when impairment indicators are present. Investment in Nonconsolidated Affiliate The Company has an investment in a nonconsolidated affiliate that is accounted for using the cost method. The investment's carrying value of $7.0 million was included in other assets on the consolidated balance sheets. During 2016, the Company determined that the investment had an other-than-temporary decline in its fair value that exceeded its carrying value and recorded an impairment charge of $7.0 million , which is presented in restructuring and other special charges, net in the consolidated statements of earnings in 2016. Self-Insurance Reserves The Company is self-insured and/or retains high deductibles for a significant portion of its workers’ compensation, health, disability, cyber risk, general liability, automobile and property programs, among others. Liabilities associated with the risks that are retained by the Company are estimated by considering historical claims experience, trends of the Company and the industry and other actuarial assumptions. The estimated accruals for these liabilities could be affected if development of costs on claims differ from these assumptions and historical trends. Based on available information as of February 3, 2018 , the Company believes it has provided adequate reserves for its self-insurance exposure. As of February 3, 2018 and January 28, 2017 , self-insurance reserves were $11.0 million and $10.4 million , respectively. Revenue Recognition Retail sales, recognized at the point of sale, are recorded net of returns and exclude sales tax. Wholesale sales are recorded, net of returns, allowances and discounts, generally when the merchandise has been shipped and title and risk of loss have passed to the customer. Revenue for products sold that are shipped directly to an individual consumer is recognized upon delivery to the consumer. Reserves for projected merchandise returns, discounts and allowances are determined based on historical experience and current expectations. Revenue is recognized on license fees related to Company-owned brand-names, where the Company is the licensor, when the related sales of the licensee are made. As further discussed below, the Company will adopt ASC 606, Revenue with Contracts from Customers , in the first quarter of 2018, which will change how revenue is recognized for certain aspects of the Company's business. Gift Cards The Company sells gift cards to its consumers in its retail stores, through its Internet sites and at other retailers. The Company’s gift cards do not have expiration dates or inactivity fees. The Company recognizes revenue from gift cards when (i) the gift card is redeemed by the consumer or (ii) the likelihood of the gift card being redeemed by the consumer is remote (“gift card breakage”) and the Company determines that it does not have a legal obligation to remit the value of unredeemed gift cards to the relevant jurisdictions. The Company determines its gift card breakage rate based upon historical redemption patterns. The Company recognizes gift card breakage during the 24-month period following the sale of the gift card, according to the Company’s historical redemption pattern. Gift card breakage income is included in net sales in the consolidated statements of earnings and the liability established upon the sale of a gift card is included in other accrued expenses within the consolidated balance sheets. The Company recognized $1.7 million of gift card breakage in 2017 and $0.7 million in 2016 and 2015 . Loyalty Program The Company maintains a loyalty program (“Rewards”) at Famous Footwear, through which consumers earn points toward savings certificates for qualifying purchases. Upon reaching specified point values, consumers are issued a savings certificate that may be redeemed for purchases at Famous Footwear. Savings certificates earned must be redeemed within stated expiration dates. In addition to the savings certificates, the Company also offers exclusive member discounts. The value of points and rewards earned by Famous Footwear’s Rewards program members are recorded as a reduction of net sales and a liability is established within other accrued expenses at the time the points are earned based on historical conversion and redemption rates. Approximately 75% of net sales in the Famous Footwear segment were made to its Rewards members in both 2017 and 2016, compared to 74% in 2015 . As of February 3, 2018 and January 28, 2017 , the Company had a Rewards program liability of $8.1 million and $7.6 million , respectively, which is included in other accrued expenses on the consolidated balance sheets. As further discussed below, the adoption of ASC 606 in the first quarter of 2018 will have a material impact on the Rewards program liability. Store Closing and Impairment Charges The costs of closing stores, including lease termination costs, property and equipment write-offs and severance, as applicable, are recorded when the store is closed or when a binding agreement is reached with the landlord to close the store. The Company regularly analyzes the results of all of its stores and assesses the viability of underperforming stores to determine whether events or circumstances exist that indicate the stores should be closed or whether the carrying amount of their long-lived assets may not be recoverable. After allowing for an appropriate start-up period, unusual nonrecurring events or favorable trends, property and equipment at stores indicated as impaired are written down to fair value as calculated using a discounted cash flow method. The Company recorded asset impairment charges, primarily related to underperforming retail stores, of $3.8 million in 2017 , $1.6 million in 2016 and $2.8 million in 2015 . Advertising and Marketing Expense Advertising and marketing costs are expensed as incurred, except for the costs of direct response advertising that relate primarily to the production and distribution of the Company's catalogs and coupon mailers. Direct response advertising costs are capitalized and amortized over the expected future revenue stream, which is generally one to three months from the date the materials are mailed. External production costs of advertising are expensed when the advertising first appears in the media or in the store. In addition, the Company participates in co-op advertising programs with certain of its wholesale customers. For those co-op advertising programs where the Company has validated the fair value of the advertising received, co-op advertising costs are reflected as advertising expense within selling and administrative expenses. Otherwise, co-op advertising costs are reflected as a reduction of net sales. Total advertising and marketing expense was $83.6 million , $78.8 million and $78.4 million in 2017 , 2016 and 2015 , respectively. These costs were offset by co-op advertising allowances recovered by the Company’s retail business of $4.8 million , $4.1 million and $6.5 million in 2017 , 2016 and 2015 , respectively. Total co-op advertising costs reflected as a reduction of net sales were $10.0 million in 2017 , $8.4 million in 2016 and $9.7 million in 2015 . Total advertising costs attributable to future periods that are deferred and recognized as a component of prepaid expenses and other current assets were $4.0 million and $2.3 million at February 3, 2018 and January 28, 2017 , respectively. Income Taxes The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the consolidated financial statement carrying amounts and the tax bases of its assets and liabilities. The Company establishes valuation allowances if it believes that it is more-likely-than-not that some or all of its deferred tax assets will not be realized. The Company does not recognize a tax benefit unless it concludes that it is more-likely-than-not that the benefit will be sustained on audit by the taxing authority based solely on the technical merits of the associated tax position. If the recognition threshold is met, the Company recognizes a tax benefit measured at the largest amount of the tax benefit that, in its judgment, is greater than 50% likely to be realized. The Company records interest and penalties related to unrecognized tax positions within the income tax provision on the consolidated statements of earnings. As further discussed in Note 6 to the consolidated financial statements, on December 22, 2017 , the Tax Cuts and Jobs Act was signed into law, making significant changes to the U.S. Internal Revenue Code. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective January 1, 2018 , the transition of U.S. international taxation from a worldwide tax system to a quasi-territorial tax system and a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings. Operating Leases The Company leases its store premises and certain office locations, distribution centers and equipment under operating leases. Approximately one-half of the leases entered into by the Company include options that allow the Company to extend the lease term beyond the initial commitment period, subject to terms agreed to at lease inception. Some leases also include early termination options that can be exercised under specific conditions. Contingent Rentals Many of the leases covering retail stores require contingent rentals in addition to the minimum monthly rental charge based on retail sales volume. The Company records expense for contingent rentals during the period in which the retail sales volume exceeds the respective targets. Construction Allowances Received From Landlords At the time its retail facilities are initially leased, the Company often receives consideration from landlords to be applied against the cost of leasehold improvements necessary to open the store. The Company treats these construction allowances as a lease incentive. The allowances are recorded as a deferred rent obligation and amortized to income over the lease term as a reduction of rent expense. The allowances are reflected as a component of other accrued expenses and deferred rent on the consolidated balance sheets. Straight-Line Rents and Rent Holidays The Company records rent expense on a straight-line basis over the lease term for all of its leased facilities. For leases that have predetermined fixed escalations of the minimum rentals, the Company recognizes the related rental expense on a straight-line basis and records the difference between the recognized rental expense and amounts payable under the lease as deferred rent. At the time its retail facilities are leased, the Company is frequently not charged rent for a specified period of time, typically 30 to 60 days, while the store is being prepared for opening. This rent-free period is referred to as a rent holiday. The Company recognizes rent expense over the lease term, including any rent holiday, within selling and administrative expenses on the consolidated statements of earnings. Pre-opening Costs Pre-opening costs associated with opening retail stores, including payroll, supplies and facility costs, are expensed as incurred. Earnings Per Common Share Attributable to Caleres, Inc. Shareholders The Company uses the two-class method to calculate basic and diluted earnings per common share attributable to Caleres, Inc. shareholders. Unvested restricted stock awards are considered participating units because they entitle holders to non-forfeitable rights to dividends or dividend equivalents during the vesting term. Under the two-class method, basic earnings per common share attributable to Caleres, Inc. shareholders is computed by dividing the net earnings attributable to Caleres, Inc. after allocation of earnings to participating securities by the weighted-average number of common shares outstanding during the year. Diluted earnings per common share attributable to Caleres, Inc. shareholders is computed by dividing the net earnings attributable to Caleres, Inc. after allocation of earnings to participating securities by the weighted-average number of common shares and potential dilutive securities outstanding during the year. Potential dilutive securities consist of outstanding stock options and contingently issuable shares for the Company's performance share awards. Refer to Note 3 to the consolidated financial statements for additional information related to the calculation of earnings per common share attributable to Caleres, Inc. shareholders. Comprehensive Income Comprehensive income includes the effect of foreign currency translation adjustments, pension and other postretirement benefits adjustments and unrealized gains or losses from derivatives used for hedging activities. Foreign Currency Translation Adjustment For certain of the Company’s international subsidiaries, the local currency is the functional currency. Assets and liabilities of these subsidiaries are translated into United States dollars at the period-end exchange rate or historical rates as appropriate. Consolidated statements of earnings amounts are translated at average exchange rates for the period. The cumulative translation adjustments resulting from changes in exchange rates are included in the consolidated balance sheets as a component of accumulated other comprehensive loss in total Caleres, Inc. shareholders’ equity. Transaction gains and losses are included in the consolidated statements of earnings. Pension and Other Postretirement Benefits Adjustments The Company determines the expense and obligations for retirement and other benefit plans using assumptions related to discount rates, expected long-term rates of return on invested plan assets, expected salary increases and certain employee-related factors. The Company determines the fair value of plan assets and benefit obligations as of the January 31 measurement date. The unrecognized portion of the gain or loss on plan assets is included in the consolidated balance sheets as a component of accumulated other comprehensive loss in total Caleres, Inc. shareholders’ equity and is recognized into the plans’ expense over time. Refer to additional information related to pension and other postretirement benefits in Note 5 and Note 15 to the consolidated financial statements. Derivative Financial Instruments The Company recognizes all derivative financial instruments as either assets or liabilities in the consolidated balance sheets and measures those instruments at fair value. The Company evaluates its exposure to volatility in foreign currency rates and may enter into derivative transactions. These derivative financial instruments are viewed as risk management tools and are not used for trading or speculative purposes. Refer to additional information related to derivative financial instruments in Note 13, Note 14 and Note 15 to the consolidated financial statements. Litigation Contingencies The Company is the defendant in several claims and lawsuits arising in the ordinary course of business. The Company believes any of these ordinary- course-of-business proceedings will not have a material adverse effect on the consolidated financial position or results of operations. The Company accrues its best estimate of the cost of resolution of these claims. Legal defense costs of such claims are recognized in the period in which the costs are incurred. Refer to Note 18 to the consolidated financial statements for a further description of commitments and contingencies. Environmental Matters The Company is involved in environmental remediation and ongoing compliance activities at several sites. The Company is remediating, under the oversight of Colorado authorities, the groundwater and indoor air at its owned facility and residential neighborhoods adjacent to and near the property, which have been affected by solvents previously used at the facility. In addition, various federal and state authorities have identified the Company as a potentially responsible party for remediation at certain other sites. The Company's prior operations included numerous manufacturing and other facilities for which the Company may have responsibility under various environmental laws to address conditions that may be identified in the future. Refer to Note 18 to the consolidated financial statements for a further description of specific properties. Environmental expenditures relating to an existing condition caused by past operations and that do not contribute to current or future revenue generation are expensed. Liabilities are recorded when environmental assessments and/or remedial efforts are probable and the costs can be reasonably estimated and are evaluated independently of any future claims recovery. Generally, the timing of these accruals coincides with completion of a feasibility study or our commitment to a formal plan of action, and our estimates of cost are subject to change as new information becomes available. Costs of future expenditures for environmental remediation obligations are discounted to their present value in those situations requiring only continuing maintenance and monitoring based upon a schedule of fixed payments. Business Combination Accounting The Company allocates the purchase price of an acquired entity to the assets and liabilities acquired based upon their estimated fair values at the business combination date. The Company also identifies and estimates the fair values of intangible assets that should be recognized as assets apart from goodwill. A single estimate of fair value results from a complex series of judgments about future events and uncertainties and relies heavily on estimates and assumptions. The Company typically engages third-party valuation specialists to assist in the estimation of fair values for intangible assets other than goodwill, inventory and fixed assets. The carrying values of acquired receivables and trade accounts payable have historically approximated their fair values at the business combination date. With respect to other acquired assets and liabilities, the Company uses all available information to make the best estimates of their fair values at the business combination date. The Company’s purchase price allocation methodology contains uncertainties because it requires management to make assumptions and to apply judgment to estimate the fair value of the acquired assets and liabilities. Management estimates the fair value of assets and liabilities based upon quoted market prices, the carrying value of the acquired assets and widely accepted valuation techniques, including discounted cash flows. Unanticipated events or circumstances may occur which could affect the accuracy of the Company’s estimates, including assumptions regarding industry economic factors and business strategies. Share-Based Compensation The Company has share-based incentive compensation plans under which certain officers, employees and members of the Board of Directors are participants and may be granted restricted stock, stock performance awards and stock options. Additionally, share-based grants may be made to non-employee members of the Board of Directors in the form of restricted stock units (“RSUs”) payable in c |
Acquisition
Acquisition | 12 Months Ended |
Feb. 03, 2018 | |
Business Combinations [Abstract] | |
Acquisition | ACQUISITION Allen Edmonds On December 13, 2016 , the Company entered into a Stock Purchase Agreement (the "Purchase Agreement") with Apollo Investors, LLC (the "Seller") and Apollo Buyer Holding Company, Inc. (the "Holding Company"), pursuant to which the Company acquired all outstanding capital stock of Allen Edmonds ("Allen Edmonds"). The aggregate purchase price for the Allen Edmonds stock was $259.9 million , net of cash received of $0.7 million . The purchase was funded with cash and funds available under the Company's revolving credit agreement. Refer to Note 11 to the consolidated financial statements for additional information regarding the revolving credit agreement. The operating results of Allen Edmonds since December 13, 2016 have been included in the Company’s consolidated financial statements within the Brand Portfolio segment. Allen Edmonds, founded in 1922, is a U.S.-based direct-to-consumer and wholesaler of premium men’s footwear, apparel, leather goods and accessories with a strong manufacturing heritage. The acquisition increased the Company's exposure in men’s footwear, solidifying a new revenue stream to drive overall growth. During 2017, the Company incurred integration and reorganization costs totaling $4.0 million ( $2.6 million on an after-tax basis, or $0.06 per diluted share), related to the men's business, as further discussed in Note 4 to the consolidated financial statements. During 2016, the Company incurred acquisition and integration costs of $5.8 million ( $5.0 million on an after-tax basis, or $0.11 per diluted share), which were recorded as a component of restructuring and other special charges, net. Of the $5.8 million , $5.2 million was reflected within the Other category and $0.6 million was reflected within the Brand Portfolio segment. In addition, the Brand Portfolio segment recognized $4.9 million ( $3.0 million on an after-tax basis, or $0.07 per diluted share) in cost of goods sold in 2017 and $1.2 million ( $0.7 million on an after-tax basis, or $0.02 per diluted share) in 2016 related to the amortization of the inventory fair value adjustment required for purchase accounting. The inventory fair value adjustment was fully amortized as of July 29, 2017 . The assets and liabilities of Allen Edmonds were recorded at their estimated fair values, and the excess of the purchase price over the fair value of the assets acquired and liabilities assumed, including identified intangible assets, was recorded as goodwill. The Company allocated the purchase price as of the acquisition date, December 13, 2016 as follows: ($ thousands) December 13, 2016 ASSETS Current assets: Cash and cash equivalents $ 668 Receivables 6,273 Inventories 52,364 Prepaid expense and other current assets 2,353 Total current assets 61,658 Other assets 1,060 Goodwill 113,127 Intangible assets 102,920 Property and equipment 32,243 Total assets $ 311,008 LIABILITIES AND EQUITY Current liabilities: Trade accounts payable $ 12,256 Other accrued expenses 12,692 Total current liabilities 24,948 Deferred income taxes 25,109 Other liabilities 351 Total liabilities 50,408 Net assets $ 260,600 The Company’s purchase price allocation contained uncertainties because it required management to make assumptions and to apply judgment to estimate the fair value of the acquired assets and liabilities. A single estimate of fair value results from a complex series of judgments about future events and uncertainties and relies heavily on estimates and assumptions. The judgments the Company used in estimating the fair values assigned to each class of the acquired assets and assumed liabilities could materially affect the results of its operations. Management estimated the fair value of the assets and liabilities based upon quoted market prices, the carrying value of the acquired assets and widely accepted valuation techniques, including discounted cash flows. Unanticipated events or circumstances may occur, which could affect the accuracy of the Company’s fair value estimates, including assumptions regarding industry economic factors and business strategies. A third-party valuation specialist assisted the Company with its fair value estimates for inventory, property and equipment and intangible assets other than goodwill. The Company estimated the fair value of inventories based on the estimated selling price of the work-in-process and finished goods acquired at the closing date, less the sum of the costs to complete the work-in-process, the costs of disposal and a reasonable profit allowance for the completion and post-transaction selling effort based on profit for similar finished goods. The book value of the raw materials acquired was considered a reasonable representation of fair value. With respect to other acquired assets and liabilities, the Company used all available information to make its best estimate of fair values at the acquisition date. The Company's allocation of purchase price was considered complete as of October 28, 2017 . Goodwill and intangible assets reflected above were determined to meet the criteria for recognition apart from tangible assets acquired and liabilities assumed. The goodwill recognized is primarily attributable to non-separable retail customer relationships, synergies and an assembled workforce and is not deductible for tax purposes. Refer to Note 10 to the consolidated financial statements for additional information regarding goodwill and intangible assets. Allen Edmonds contributed $178.6 million of net sales in 2017 and $24.3 million during the period from the acquisition date through January 28, 2017. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Feb. 03, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The Company uses the two-class method to compute basic and diluted earnings per common share attributable to Caleres, Inc. shareholders. In periods of net loss, no effect is given to the Company’s participating securities since they do not contractually participate in the losses of the Company. The following table sets forth the computation of basic and diluted earnings per common share attributable to Caleres, Inc. shareholders: (in $ thousands, except per share amounts) 2017 2016 2015 NUMERATOR Net earnings $ 87,231 $ 66,086 $ 81,824 Net earnings attributable to noncontrolling interests (31 ) (428 ) (345 ) Net earnings allocated to participating securities (2,384 ) (1,750 ) (2,587 ) Net earnings attributable to Caleres, Inc. after allocation of earnings to participating securities $ 84,816 $ 63,908 $ 78,892 DENOMINATOR Denominator for basic earnings per common share attributable to Caleres, Inc. shareholders 41,801 42,026 42,455 Dilutive effect of share-based awards 179 155 201 Denominator for diluted earnings per common share attributable to Caleres, Inc. shareholders 41,980 42,181 42,656 Basic earnings per common share attributable to Caleres, Inc. shareholders $ 2.03 $ 1.52 $ 1.86 Diluted earnings per common share attributable to Caleres, Inc. shareholders $ 2.02 $ 1.52 $ 1.85 Options to purchase 16,667 , 63,915 and 56,997 shares of common stock in 2017 , 2016 and 2015 , respectively, were not included in the denominator for diluted earnings per common share attributable to Caleres, Inc. shareholders because the effect would be antidilutive. The Company repurchased 225,000 , 900,000 and 151,500 shares during the years ended February 3, 2018 , January 28, 2017 and January 30, 2016 , respectively, under the publicly announced share repurchase program, which permits repurchases of up to 2.5 million shares. Therefore, as of February 3, 2018 , the Company has repurchased a total of 1.3 million shares at a cost of $34.1 million . |
Restructuring and Other Initiat
Restructuring and Other Initiatives | 12 Months Ended |
Feb. 03, 2018 | |
Restructuring Charges [Abstract] | |
Restructuring and Other Initiatives, Net | RESTRUCTURING AND OTHER INITIATIVES, NET Acquisition and Integration Costs On December 13, 2016 , the Company acquired the outstanding capital stock of Allen Edmonds, as further discussed in Note 2 to the consolidated financial statements. During 2017, the Company incurred integration and reorganization costs, primarily for professional fees and severance, totaling $4.0 million ( $2.6 million on an after-tax basis, or $0.06 per diluted share), related to the men's business. Of the $4.0 million included in restructuring and other special costs in the consolidated statements of earnings, $2.5 million is included in the Other category and $1.5 million is reflected within the Brand Portfolio segment. During 2016, the Company incurred acquisition and integration costs totaling $5.8 million ( $5.0 million on an after-tax basis, or $0.11 per diluted share), of which $5.2 million was reflected within the Other category and $0.6 million was reflected within the Brand Portfolio segment. Retail Operations Restructuring During 2017, the Company incurred costs, primarily for severance expense, of $0.9 million ( $0.6 million on an after-tax basis, or $0.02 per diluted share) related to restructuring of its retail operations. Of the $0.9 million included in restructuring and other special costs in the consolidated statements of earnings, $0.6 million is reflected within the Famous Footwear segment, $0.2 million is reflected within the Other category and $0.1 million is included in the Brand Portfolio segment. Impairment of Note Receivable During 2014, the Company sold Shoes.com for an aggregate purchase price of $15.0 million , subject to working capital and other adjustments. The Company received $4.4 million in cash and a $7.5 million face value secured convertible note ("convertible note") at closing. The convertible note required installments over four years with the first principal payment of $1.25 million due on July 1, 2017 and quarterly installments of $0.6 million thereafter, plus accrued interest, until it matured on December 12, 2019 . The Company recognized a pre-tax gain on the sale of $4.7 million . On January 27, 2017 , Shoes.com announced the business had ceased operating and would be working with creditors to liquidate. In conjunction with the announcement, the Company recorded an impairment charge of $8.0 million ( $4.9 million on an after-tax basis, or $0.11 per diluted share), comprised of the fair value of the convertible note of $7.3 million , and associated accounts receivable of $0.7 million . Of the $8.0 million in costs recorded in restructuring and other special charges, net during 2016, $7.3 million was reflected within the Other category and $0.7 million was reflected within the Brand Portfolio segment. Impairment of Investment in Nonconsolidated Affiliate In August 2014, the Company invested $7.0 million in a nonconsolidated affiliate that is accounted for using the cost method and was presented within other assets on the consolidated balance sheets. During 2016, the Company determined that the investment had an other-than-temporary decline in its fair value that exceeded its carrying value and recorded an impairment charge of $7.0 million ( $7.0 million on an after-tax basis, or $0.16 per diluted share) in restructuring and other special charges, net, which was included in the Other category. Business Exits and Restructuring The Company incurred costs of $4.2 million ( $3.3 million on an after-tax basis, or $0.08 per diluted share) during 2016 related to the planned exit of its international e-commerce business and other restructuring. Approximately $2.6 million represents severance and closure costs and were presented within restructuring and other special charges, net within the Brand Portfolio segment. The remaining $1.6 million , which was included in cost of goods sold within the Brand Portfolio segment, represents incremental inventory markdowns required to reduce the value of inventory to net realizable value. |
Retirement and Other Benefit Pl
Retirement and Other Benefit Plans | 12 Months Ended |
Feb. 03, 2018 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement and Other Benefit Plans | RETIREMENT AND OTHER BENEFIT PLANS The Company sponsors pension plans in both the United States and Canada. The Company’s domestic pension plans cover substantially all United States employees. Under the domestic plans, salaried, management and certain hourly employees’ pension benefits are based on a two-rate formula applied to each year of service. Participants receive the larger of the accrued benefit as of December 31, 2015 (based on service commencing at the date of hire and a 35 -year service cap and an average annual salary for the five highest consecutive years during the last 10 year period) and the benefit calculated under the current plan provisions using pay and service from the date of hire. Generally, under the current plan provisions, a participant receives credit for one year of service for each 365 days of employment as an eligible employee with the Company commencing after the employee's date of participation in the plan, up to 30 years. A service credit of 0.825% is applied to that portion of the average annual salary for the last 10 years that does not exceed “covered compensation,” which is the 35 -year average compensation subject to FICA tax based on a participant’s year of birth, and a service credit of 1.425% is applied to that portion of the average salary during those 10 years that exceeds said level. The Company’s Canadian pension plans cover certain employees based on plan specifications. Under the Canadian plans, employees’ pension benefits are based on the employee’s highest consecutive five years of compensation during the 10 years before retirement. The Company’s funding policy for all plans is to make the minimum annual contributions required by applicable regulations. The Company also maintains an unfunded Supplemental Executive Retirement Plan (“SERP”). In addition to providing pension benefits, the Company sponsors unfunded defined benefit postretirement life insurance plans that cover both salaried and hourly employees who became eligible for benefits by January 1, 1995. The life insurance plans provide coverage of up to $20 thousand dollars for qualifying retired employees. Benefit Obligations The following table sets forth changes in benefit obligations, including all domestic and Canadian plans: Pension Benefits Other Postretirement Benefits ($ thousands) 2017 2016 2017 2016 Benefit obligation at beginning of year $ 340,278 $ 326,077 $ 1,666 $ 1,411 Service cost 9,705 8,288 — — Interest cost 14,948 15,275 68 76 Plan participants’ contribution 11 11 7 9 Plan amendments (2,985 ) 316 — — Actuarial loss 18,505 11,155 40 357 Benefits paid (13,703 ) (19,853 ) (187 ) (187 ) Settlement gain — (1,304 ) — — Contractual termination benefits — 77 — — Curtailments (10,534 ) — — — Foreign exchange rate changes 244 236 — — Benefit obligation at end of year $ 356,469 $ 340,278 $ 1,594 $ 1,666 The accumulated benefit obligation for the United States pension plans was $346.9 million and $320.1 million as of February 3, 2018 and January 28, 2017 , respectively. The accumulated benefit obligation for the Canadian pension plans was $4.2 million and $3.8 million as of February 3, 2018 and January 28, 2017 , respectively. Pension Benefits Other Postretirement Benefits Weighted–average assumptions used to determine benefit obligations, end of year 2017 2016 2017 2016 Discount rate 4.00 % 4.40 % 4.00 % 4.40 % Rate of compensation increase 3.00 % 3.00 % N/A N/A As of February 3, 2018 , the Company is using the RP-2014 Bottom Quartile tables, projected using generational scale MP-2017, an updated projection scale issued by the Society of Actuaries in 2017, grading to 0.75% by 2033, to estimate the plan liabilities. Actuarial gains, related to the change in mortality projection scales, reduced the projected benefit obligation by approximately $3.2 million as of February 3, 2018. During 2014, the Company announced amendments to the domestic qualified pension plan and the SERP, including certain changes to eligibility and service period requirements as well as changes to the benefit formula, including the calculation of participants' final average compensation. Certain changes became effective in January 2015, while other changes became effective in January 2016. These plan amendments decreased the pension liability by $3.0 million as of February 3, 2018 and increased the liability by $0.3 million as of January 28, 2017 . In addition, during 2017, the Company announced changes to the domestic qualified pension plan that will become effective in January 2019. Except for grandfathered employees and certain hourly associates in our retail divisions, final average compensation, taxable covered compensation and credit service for purposes of determining accrued pension benefits will be frozen as of December 31, 2018. These plan changes resulted in a curtailment, which decreased the pension liability by $10.5 million as of February 3, 2018 and increased the net periodic benefit income by $2.2 million . Plan Assets Pension assets are managed in accordance with the prudent investor standards of the Employee Retirement Income Security Act (“ERISA”). The plan’s investment objective is to earn a competitive total return on assets, while also ensuring plan assets are adequately managed to provide for future pension obligations. This results in the protection of plan surplus and is accomplished by matching the duration of the projected benefit obligation using leveraged fixed income instruments and, while maintaining an equity commitment, managing an equity overlay strategy. The overlay strategy is intended to protect the managed equity portfolios against adverse stock market environments. The Company delegates investment management of the plan assets to specialists in each asset class and regularly monitors manager performance and compliance with investment guidelines. The Company’s overall investment strategy is to achieve a mix of approximately 97% of investments for long-term growth and 3% for near-term benefit payments with a wide diversification of asset types, fund strategies and fund managers. The target allocations for plan assets for 2017 were 70% equities and 30% debt securities. Allocations may change periodically based upon changing market conditions. Equities did not include any Company stock at February 3, 2018 or January 28, 2017 . Assets of the Canadian pension plans, which total approximately $4.7 million at February 3, 2018 , were invested 55% in equity funds, 38% in bond funds and 7% in money market funds. The Canadian pension plans did not include any Company stock as of February 3, 2018 or January 28, 2017 . A financial instrument’s level within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Refer to further discussion on the fair value hierarchy in Note 14 to the consolidated financial statements. Following is a description of the pension plan investments measured at fair value, including the general classification of such investments pursuant to the valuation hierarchy. • Cash and cash equivalents include cash collateral and margin as well as money market funds. The fair values are based on unadjusted quoted market prices in active markets with sufficient volume and frequency and therefore are classified within Level 1 of the fair value hierarchy. • Investments in U.S. government securities, mutual funds, real estate investment trusts, exchange-traded funds, corporate stocks - common, preferred securities and S&P 500 Index put and call options (traded on security exchanges) are classified within Level 1 of the fair value hierarchy because the fair values are based on unadjusted quoted market prices in active markets with sufficient volume and frequency. • Interest rate swap agreements are valued at fair value based on vendor-quoted pricing for which inputs are observable and can be corroborated; therefore, these are classified within Level 2 of the fair value hierarchy. • The alternative investment fund, with a fair value of $13.4 million and $12.1 million as of February 3, 2018 and January 28, 2017 , respectively, is an investment in a pool of long-duration domestic investment grade assets. This investment is valued at fair value based on vendor-quoted pricing for which inputs are observable and can be corroborated and therefore, are classified within Level 2 of the fair value hierarchy. • The unallocated insurance contract is valued at contract value, which approximates fair value; therefore, this contract is classified within Level 3 of the fair value hierarchy. The unallocated insurance contract fair value was $0.1 million as of both February 3, 2018 and January 28, 2017 . The fair values of the Company’s pension plan assets at February 3, 2018 by asset category are as follows: Fair Value Measurements at February 3, 2018 ($ thousands) Total Level 1 Level 2 Level 3 Asset Cash and cash equivalents $ 8,998 $ 8,998 $ — $ — U.S. government securities 98,027 98,027 — — Mutual fund 41,344 41,344 — — Real estate investment trusts 1,412 1,412 — — Exchange-traded funds 68,362 68,362 — — Corporate stocks - common 175,928 175,928 — — Preferred securities 703 703 — — S&P 500 Index options (1,186 ) (1,186 ) — — Alternative investment fund 13,412 — 13,412 — Unallocated insurance contract 81 — — 81 Total $ 407,081 $ 393,588 $ 13,412 $ 81 The fair values of the Company’s pension plan assets at January 28, 2017 by asset category are as follows: Fair Value Measurements at January 28, 2017 ($ thousands) Total Level 1 Level 2 Level 3 Asset Cash and cash equivalents $ 16,484 $ 16,484 $ — $ — U.S. government securities 97,226 97,226 — — Mutual fund 34,833 34,833 — — Real estate investment trusts 1,505 1,505 — — Exchange-traded funds 62,244 62,244 — — Corporate stocks - common 141,372 141,372 — — Preferred securities 706 706 — — S&P 500 Index options 4,392 4,392 — — Interest rate swap agreements (8,997 ) — (8,997 ) — Alternative investment fund 12,101 — 12,101 — Unallocated insurance contract 90 — — 90 Total $ 361,956 $ 358,762 $ 3,104 $ 90 The following table sets forth changes in the fair value of plan assets, including all domestic and Canadian plans: Pension Benefits Other Postretirement Benefits ($ thousands) 2017 2016 2017 2016 Fair value of plan assets at beginning of year $ 361,956 $ 379,638 $ — $ — Actual return on plan assets 58,106 1,755 — — Employer contributions 450 1,458 180 178 Plan participants’ contributions 11 11 7 9 Benefits paid (13,703 ) (19,853 ) (187 ) (187 ) Settlement gain — (1,304 ) — — Foreign exchange rate changes 261 251 — — Fair value of plan assets at end of year $ 407,081 $ 361,956 $ — $ — Funded Status The over-funded status as of February 3, 2018 and January 28, 2017 for pension benefits was $50.6 million and $21.7 million , respectively. The under-funded status as of February 3, 2018 and January 28, 2017 for other postretirement benefits was $1.6 million and $1.7 million , respectively. Amounts recognized in the consolidated balance sheets consist of: Pension Benefits Other Postretirement Benefits ($ thousands) 2017 2016 2017 2016 Prepaid pension costs (noncurrent assets) $ 62,575 $ 32,489 $ — $ — Accrued benefit liabilities (current liability) (3,988 ) (2,765 ) (238 ) (250 ) Accrued benefit liabilities (noncurrent liability) (7,975 ) (8,043 ) (1,356 ) (1,416 ) Net amount recognized at end of year $ 50,612 $ 21,681 $ (1,594 ) $ (1,666 ) The projected benefit obligation, the accumulated benefit obligation and the fair value of plan assets for pension plans with a projected benefit obligation in excess of plan assets and for pension plans with an accumulated benefit obligation in excess of plan assets, which includes only the Company’s SERP, were as follows: Projected Benefit Obligation Exceeds the Fair Value of Plan Assets Accumulated Benefit Obligation Exceeds the Fair Value of Plan Assets ($ thousands) 2017 2016 2017 2016 End of Year Projected benefit obligation $ 11,959 $ 10,808 $ 11,959 $ 10,808 Accumulated benefit obligation 10,956 9,646 10,956 9,646 Fair value of plan assets — — — — The accumulated postretirement benefit obligation exceeds assets for all of the Company’s other postretirement benefit plans. The amounts in accumulated other comprehensive loss that have not yet been recognized as components of net periodic benefit income at February 3, 2018 and January 28, 2017 , and the expected amortization of the February 3, 2018 amounts as components of net periodic benefit income for fiscal year 2018 , are as follows: Pension Benefits Other Postretirement Benefits ($ thousands) 2017 2016 2017 2016 Components of accumulated other comprehensive loss, net of tax: Net actuarial loss (gain) $ 22,424 $ 35,104 $ (634 ) $ (635 ) Net prior service credit (4,618 ) (4,385 ) — — $ 17,806 $ 30,719 $ (634 ) $ (635 ) Pension Benefits Other Postretirement Benefits ($ thousands) 2018 2018 Expected amortization, net of tax: Amortization of net actuarial loss (gain) $ 3,042 $ (92 ) Amortization of net prior service credit (1,164 ) — $ 1,878 $ (92 ) Net Periodic Benefit Income Net periodic benefit income for 2017 , 2016 and 2015 for all domestic and Canadian plans included the following components: Pension Benefits Other Postretirement Benefits ($ thousands) 2017 2016 2015 2017 2016 2015 Service cost $ 9,705 $ 8,288 $ 12,639 $ — $ — $ — Interest cost 14,948 15,275 14,321 68 76 56 Expected return on assets (27,589 ) (28,949 ) (31,682 ) — — — Amortization of: Actuarial loss (gain) 4,315 272 604 (145 ) (163 ) (220 ) Prior service credit (1,780 ) (1,840 ) (1,906 ) — — — Settlement cost — 259 — — — — Cost of contractual termination benefits — 77 — — — — Curtailments (2,165 ) — (184 ) — — — Total net periodic benefit income $ (2,566 ) $ (6,618 ) $ (6,208 ) $ (77 ) $ (87 ) $ (164 ) Weighted-average assumptions used to determine net periodic benefit income: Pension Benefits Other Postretirement Benefits 2017 2016 2015 2017 2016 2015 Discount rate 4.40 % 4.70 % 3.90 % 4.40 % 4.70 % 3.90 % Rate of compensation increase 3.00 % 3.00 % 3.00 % N/A N/A N/A Expected return on plan assets 8.00 % 8.00 % 8.25 % N/A N/A N/A The net actuarial loss (gain) subject to amortization is amortized on a straight-line basis over the average future service of active plan participants as of the measurement date. The prior service credit is amortized on a straight-line basis over the average future service of active plan participants benefiting under the plan at the time of each plan amendment. The expected long-term rate of return on plan assets is based on historical and projected rates of return for current and planned asset classes in the plan’s investment portfolio. Assumed projected rates of return for each asset class were selected after analyzing experience and future expectations of the returns. The overall expected rate of return for the portfolio was developed based on the target allocation for each asset class. Expected Cash Flows Information about expected cash flows for all pension and postretirement benefit plans follows: Pension Benefits ($ thousands) Funded Plan SERP Total Other Postretirement Benefits Employer Contributions 2018 expected contributions to plan trusts $ 159 $ — $ 159 $ — 2018 expected contributions to plan participants — 4,063 4,063 243 2018 refund of assets (e.g. surplus) to employer 186 — 186 — Expected Benefit Payments 2018 $ 12,766 $ 4,063 $ 16,829 $ 243 2019 13,363 1,176 14,539 216 2020 14,131 3,079 17,210 192 2021 14,933 322 15,255 169 2022 15,638 656 16,294 148 2023 – 2027 86,432 1,817 88,249 481 Defined Contribution Plans The Company’s domestic defined contribution 401(k) plan covers salaried and certain hourly employees. Company contributions represent a partial matching of employee contributions, generally up to a maximum of 3.5% of the employee’s salary and bonus. The Company’s expense for this plan was $3.9 million in 2017 , $3.5 million in 2016 , and $3.6 million in 2015 . The Company’s Canadian defined contribution plan covers certain salaried and hourly employees. The Company makes contributions for all eligible employees, ranging from 3% to 5% of the employee’s salary. In addition, eligible employees may voluntarily contribute to the plan. The Company’s expense for this plan was $0.3 million in 2017 and $0.2 million in 2016 and 2015 , respectively. Deferred Compensation Plan The Company has a non-qualified deferred compensation plan (the “Deferred Compensation Plan”) for the benefit of certain management employees. The investment funds offered to the participants generally correspond to the funds offered in the Company’s 401(k) plan and the account balance fluctuates with the investment returns on those funds. The Deferred Compensation Plan permits the deferral of up to 50% of base salary and 100% of compensation received under the Company’s annual incentive plan. The deferrals are held in a separate trust, which has been established by the Company to administer the Deferred Compensation Plan. The assets of the trust are subject to the claims of the Company’s creditors in the event that the Company becomes insolvent. Consequently, the trust qualifies as a grantor trust for income tax purposes (i.e., a “Rabbi Trust”). The liabilities of the Deferred Compensation Plan of $6.4 million and $5.1 million as of February 3, 2018 and January 28, 2017 , respectively, are presented in employee compensation and benefits in the accompanying consolidated balance sheets. The assets held by the trust of $6.4 million as of February 3, 2018 and $5.1 million as of January 28, 2017 are classified as trading securities within prepaid expenses and other current assets in the accompanying consolidated balance sheets, with changes in the deferred compensation charged to selling and administrative expenses in the accompanying consolidated statements of earnings. Deferred Compensation Plan for Non-Employee Directors Non-employee directors are eligible to participate in a deferred compensation plan, whereby deferred compensation amounts are valued as if invested in the Company’s common stock through the use of phantom stock units (“PSUs”). Under the plan, each participating director’s account is credited with the number of PSUs equal to the number of shares of the Company’s common stock that the participant could purchase or receive with the amount of the deferred compensation, based upon the fair value (as determined based on the average of the high and low prices) of the Company’s common stock on the last trading day of the fiscal quarter when the cash compensation was earned. Dividend equivalents are paid on PSUs at the same rate as dividends on the Company’s common stock and are re-invested in additional PSUs at the next fiscal quarter-end. The PSUs are payable in cash based on the number of PSUs credited to the participating director’s account, valued on the basis of the fair value at fiscal quarter-end on or following termination of the director’s service. The liabilities of the plan of $2.3 million as of February 3, 2018 and $1.9 million as of January 28, 2017 are based on 69,527 and 57,234 outstanding PSUs, respectively, and are presented in other liabilities in the accompanying consolidated balance sheets. Gains and losses resulting from changes in the fair value of the PSUs are charged to selling and administrative expenses in the accompanying consolidated statements of earnings. |
Income Taxes
Income Taxes | 12 Months Ended |
Feb. 03, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES On December 22, 2017 , the Tax Cuts and Jobs Act (the “Act”) was signed into law, making significant changes to the U.S. Internal Revenue Code. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective January 1, 2018, the transition of U.S. international taxation from a worldwide tax system to a quasi-territorial tax system and a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings. The Company has calculated its best estimate of the impact of the Act in its income tax provision in accordance with its understanding of the Act and guidance available as of February 3, 2018 and, as a result, has recorded a $0.3 million income tax benefit in the fourth quarter of 2017, the period in which the legislation was enacted. This provisional income tax benefit is comprised of a $24.6 million deferred tax benefit for the remeasurement of deferred tax assets and liabilities to the 21% rate at which they are expected to reverse, partially offset by a one-time tax expense on deemed repatriation of $22.9 million and $1.4 million deferred tax expense recorded in connection with Internal Revenue Code section 162(m) and other provisions in the Act. In December 2017, the SEC issued Staff Accounting Bulletin 118 (“SAB 118”) to address the application of GAAP in situations when a registrant does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Act. SAB 118 permits provisional amounts to be recorded during a measurement period, not to exceed one year beyond the enactment date. In accordance with SAB 118, the Company has determined that the tax benefits and expenses described above are provisional amounts and reasonable estimates at February 3, 2018. The Company continues to analyze these provisional estimates and the impact of these changes may be material. Further analysis of all provisional amounts associated with the Act is necessary as a result of pending issuance of Notices and Regulations related to the Act and finalization of foreign earnings and profits for 2017. Any subsequent adjustment to these amounts will be recorded to the Company's income tax provision in 2018 when the analysis is complete. The Act also includes the Global Intangibles Low-taxed Income ("GILTI") provision, a new minimum tax on global intangible low-taxed income, and the Base Erosion Anti-Avoidance ("BEAT"), a new tax for certain payments to foreign related parties. As of the date of this filing, the Company is still evaluating the GILTI and BEAT provisions on future periods and has not yet elected an accounting policy related to its treatment of these future tax liabilities. The components of earnings before income taxes consisted of domestic earnings before income taxes of $78.2 million , $60.9 million and $68.2 million in 2017 , 2016 and 2015 , respectively, and foreign earnings before income taxes of $44.5 million , $36.4 million and $40.6 million in 2017 , 2016 and 2015 , respectively. The components of income tax provision (benefit) on earnings were as follows: ($ thousands) 2017 2016 2015 Federal Current $ 31,102 $ 10,577 $ 9,530 Deferred (10,358 ) 14,164 11,202 20,744 24,741 20,732 State Current 7,691 3,844 497 Deferred 913 (1,157 ) 1,176 8,604 2,687 1,673 Foreign 6,127 3,740 4,537 Total income tax provision $ 35,475 $ 31,168 $ 26,942 The Company made federal, state and foreign tax payments, net of refunds, of $18.7 million , $16.9 million and $22.1 million in 2017 , 2016 and 2015 , respectively. The differences between the income tax provision reflected in the consolidated financial statements and the amounts calculated at the federal statutory income tax rate were as follows: ($ thousands) 2017 2016 2015 Income taxes at statutory rate (1) $ 41,376 $ 34,039 $ 38,068 State income taxes, net of federal tax benefit 3,579 3,149 2,481 Foreign earnings taxed at lower rates (8,072 ) (8,404 ) (9,491 ) Excess tax benefit related to share-based plans (1,265 ) — — Tax Cuts and Jobs Act, net benefit (294 ) — — Valuation allowance release on state loss carryforwards (100 ) — (1,635 ) Disposal and settlement of Shoes.com — — (1,701 ) Valuation allowance release on other tax carryforwards — (179 ) (1,367 ) Valuation allowance for impairment of investment in nonconsolidated affiliate — 2,450 — Non-deductibility of acquisition costs — 1,280 — Settlement of federal and state audit matters — (945 ) — Other 251 (222 ) 587 Total income tax provision $ 35,475 $ 31,168 $ 26,942 (1) The federal statutory tax rate was 33.7% in 2017, reflecting a single month impact from tax reform, and was 35.0% in both 2016 and 2015. In 2017 , the Company's effective tax rate was impacted by several discrete tax benefits, which totaled $2.3 million for the year. The discrete tax benefits include $1.3 million related to share-based compensation as a result of the adoption of ASU 2016-09 in 2017. The ASU requires prospective recognition of excess tax benefits in the statements of earnings, rather than in additional paid-in-capital. If these discrete tax benefits had not been recognized, the Company's full fiscal year 2017 effective tax rate would have been 30.8% . The other category of income tax provision principally represents the impact of expenses that are not deductible or partially deductible for federal income tax purposes and adjustments in the amounts of deferred tax assets that are anticipated to be realized. Significant components of the Company’s deferred income tax assets and liabilities were as follows: ($ thousands) February 3, 2018 January 28, 2017 Deferred Tax Assets Employee benefits, compensation and insurance $ 10,011 $ 18,783 Accrued expenses 12,122 18,843 Postretirement and postemployment benefit plans 401 706 Deferred rent 6,438 8,319 Accounts receivable reserves 5,105 7,479 Net operating loss (“NOL”) carryforward/carryback 7,540 23,302 Capital loss carryforward 1,450 2,185 Inventory capitalization and inventory reserves 3,058 3,871 Impairment of investment in nonconsolidated affiliate 1,470 2,590 Alternative minimum tax credit carryforward — 270 Other 1,234 1,580 Total deferred tax assets, before valuation allowance 48,829 87,928 Valuation allowance (5,763 ) (7,890 ) Total deferred tax assets, net of valuation allowance 43,066 80,038 Deferred Tax Liabilities Retirement plans (13,071 ) (8,421 ) LIFO inventory valuation (42,032 ) (61,301 ) Capitalized software (4,141 ) (8,715 ) Depreciation (1,786 ) (9,076 ) Intangible assets (28,831 ) (41,645 ) Other (1,567 ) (1,096 ) Total deferred tax liabilities (91,428 ) (130,254 ) Net deferred tax liability $ (48,362 ) $ (50,216 ) As of February 3, 2018 , the Company had various federal and state net operating loss carryforwards totaling $7.5 million , with expiration dates between 2018 and 2037 . The Company's state net operating loss carryforwards have tax values totaling $7.0 million , for which the Company has recorded a valuation allowance of $2.8 million . The remaining net operating loss will be carried forward to future tax years. The Company also has valuation allowances of $1.5 million related to the impairment of an investment in a nonconsolidated affiliate, as further described in Note 4 to the consolidated financial statements, and $1.5 million related to capital loss carryforwards. In connection with the Allen Edmonds acquisition, the Company acquired net operating loss carryforwards totaling $15.6 million , which were fully utilized during 2017. As of February 3, 2018 , no deferred taxes have been provided on the accumulated unremitted earnings of the Company’s foreign subsidiaries that are not subject to United States income tax, beyond the amounts recorded for the one-time transition tax for the mandatory deemed repatriation of cumulative foreign earnings, as required by the Act. The Company periodically evaluates its foreign investment opportunities and plans, as well as its foreign working capital needs, to determine the level of investment required and, accordingly, determines the level of foreign earnings that is considered indefinitely reinvested. Based upon that evaluation, earnings of the Company’s foreign subsidiaries that are not otherwise subject to United States taxation are considered to be indefinitely reinvested, and accordingly, deferred taxes have not been provided. If changes occur in future investment opportunities and plans, those changes will be reflected when known and may result in providing residual United States deferred taxes on unremitted foreign earnings. If the Company’s unremitted foreign earnings were not considered indefinitely reinvested as of February 3, 2018 , an immaterial amount of additional deferred taxes would have been provided. Uncertain Tax Positions ASC 740, Income Taxes , establishes a single model to address accounting for uncertain tax positions. The standard clarifies the accounting for income taxes by prescribing a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. The standard also provides guidance on derecognition, measurement classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company had no unrecognized tax benefits as of February 3, 2018 or January 28, 2017. For federal purposes, the Company’s tax years 2014 to 2016 (fiscal years ending January 31, 2015 , January 30, 2016 and January 28, 2017 ) remain open to examination. The Company also files tax returns in various foreign jurisdictions and numerous states for which various tax years are subject to examination. The Company does not expect any significant changes to its liability for unrecognized tax benefits during the next 12 months. |
Business Segment Information
Business Segment Information | 12 Months Ended |
Feb. 03, 2018 | |
Segment Reporting [Abstract] | |
Business Segment Information | BUSINESS SEGMENT INFORMATION The Company's reportable segments are Famous Footwear and Brand Portfolio. The Famous Footwear segment is comprised of Famous Footwear and Famous.com. Famous Footwear operated 1,026 stores at the end of 2017 , primarily selling branded footwear for the entire family. The Brand Portfolio segment is comprised of our branded footwear, our branded retail stores and e-commerce sites associated with those brands. This segment sources and markets licensed, branded and private-label footwear primarily to national chains, online retailers, department stores, mass merchandisers, independent retailers and catalogs as well as Company-owned Famous Footwear, Allen Edmonds, Naturalizer and Sam Edelman stores, and e-commerce businesses. The Brand Portfolio segment included 151 branded retail stores in the United States, 84 branded retail stores in Canada, and one branded retail store in Italy at the end of 2017 . The Company’s Famous Footwear and Brand Portfolio reportable segments are operating units that are managed separately. An operating segment’s performance is evaluated and resources are allocated based primarily on operating earnings (loss). Operating earnings (loss) represent gross profit, less selling and administrative expenses and restructuring and other special charges, net. The accounting policies of the reportable segments are the same as those described in Note 1 to the consolidated financial statements. Intersegment sales are generally recorded at a profit to the selling segment. All intersegment earnings related to inventory on hand at the purchasing segment are eliminated against the earnings of the selling segment. Corporate assets, administrative expenses and other costs and recoveries that are not allocated to the operating units are reported in the Other category. Following is a summary of certain key financial measures for the respective periods: ($ thousands) Famous Footwear Brand Portfolio Other Total Fiscal 2017 External sales $ 1,637,627 $ 1,147,957 $ — $ 2,785,584 Intersegment sales — 85,124 — 85,124 Depreciation and amortization 29,990 16,873 17,207 64,070 Operating earnings (loss) 92,230 80,212 (32,411 ) 140,031 Segment assets 500,862 814,508 174,045 1,489,415 Purchases of property and equipment 22,920 15,865 5,935 44,720 Capitalized software 483 232 5,743 6,458 Fiscal 2016 External sales $ 1,590,065 $ 989,323 $ — $ 2,579,388 Intersegment sales — 91,415 — 91,415 Depreciation and amortization 27,832 11,028 17,271 56,131 Operating earnings (loss) 83,735 76,248 (48,998 ) 110,985 Segment assets 526,555 838,328 110,390 1,475,273 Purchases of property and equipment 37,697 8,828 3,998 50,523 Capitalized software 3,468 50 5,521 9,039 Fiscal 2015 External sales $ 1,572,665 $ 1,004,765 $ — $ 2,577,430 Intersegment sales — 100,186 — 100,186 Depreciation and amortization 25,842 9,339 16,258 51,439 Operating earnings (loss) 109,030 66,578 (40,501 ) 135,107 Segment assets 542,842 534,137 226,344 1,303,323 Purchases of property and equipment 48,761 18,340 6,378 73,479 Capitalized software 2,538 — 5,197 7,735 Following is a reconciliation of operating earnings to earnings before income taxes: ($ thousands) 2017 2016 2015 Operating earnings $ 140,031 $ 110,985 $ 135,107 Interest expense (18,089 ) (15,111 ) (16,589 ) Loss on early extinguishment of debt — — (10,651 ) Interest income 764 1,380 899 Earnings before income taxes $ 122,706 $ 97,254 $ 108,766 For geographic purposes, the domestic operations include the Company's domestic retail operations, the wholesale distribution of licensed, branded and private-label footwear to a variety of retail customers, including the Famous Footwear and Brand Portfolio stores, as well as the Company's e-commerce businesses. The Company’s foreign operations primarily consist of wholesale and retail operations in the Far East, Canada and Italy. The Far East operations include first-cost transactions, where footwear is sold at foreign ports to customers who then import the footwear into the United States and other countries. A summary of the Company’s net sales and long-lived assets by geographic area were as follows: ($ thousands) 2017 2016 2015 Net Sales United States $ 2,603,725 $ 2,385,111 $ 2,342,590 Far East 98,287 134,430 177,654 Canada 75,764 59,847 57,186 Latin America and other 7,808 — — Total net sales $ 2,785,584 $ 2,579,388 $ 2,577,430 Long-Lived Assets United States $ 450,323 $ 617,211 $ 417,198 Europe 177,755 286 271 Canada 10,878 10,141 8,596 Far East 1,686 1,814 2,193 Other 1,984 2,076 — Total long-lived assets $ 642,626 $ 631,528 $ 428,258 Long-lived assets consisted primarily of property and equipment, intangible assets, goodwill, prepaid pension costs and other noncurrent assets. |
Inventories
Inventories | 12 Months Ended |
Feb. 03, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES The Company's net inventory balance was comprised of the following: ($ thousands) February 3, 2018 January 28, 2017 Raw materials $ 17,531 $ 15,378 Work-in-process 689 1,093 Finished goods 551,159 569,293 Inventories, net $ 569,379 $ 585,764 As of February 3, 2018 and January 28, 2017 , the Company's inventory balance includes $1.4 million and $1.6 million , respectively, of product subject to a consignment arrangement with wholesale customers. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Feb. 03, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | PROPERTY AND EQUIPMENT Property and equipment consisted of the following: ($ thousands) February 3, 2018 January 28, 2017 Land and buildings $ 49,621 $ 40,363 Leasehold improvements 233,034 215,347 Technology equipment 53,070 52,680 Machinery and equipment 67,778 67,245 Furniture and fixtures 131,884 148,473 Construction in progress 7,425 6,996 Property and equipment 542,812 531,104 Allowances for depreciation (330,013 ) (311,908 ) Property and equipment, net $ 212,799 $ 219,196 Useful lives of property and equipment are as follows: Buildings 5-30 years Leasehold improvements 5-20 years Technology equipment 2-10 years Machinery and equipment 4-20 years Furniture and fixtures 3-10 years The Company recorded charges for impairment within selling and administrative expenses of $3.8 million , $1.6 million and $2.8 million in 2017 , 2016 and 2015 , respectively, primarily for leasehold improvements and furniture and fixtures in the Company’s retail stores. Fair value was based on estimated future cash flows to be generated by retail stores, discounted at a market rate of interest. Interest costs for major asset additions are capitalized during the construction or development period and amortized over the lives of the related assets. In 2016 and 2015 , the Company capitalized interest of $1.4 million and $0.3 million , respectively, related to its expansion and modernization project at its Lebanon, Tennessee distribution center that was completed in 2016. No interest was capitalized in 2017 . |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Feb. 03, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Intangible Assets | GOODWILL AND INTANGIBLE ASSETS Goodwill and intangible assets were as follows: ($ thousands) February 3, 2018 January 28, 2017 Intangible Assets Famous Footwear $ 2,800 $ 2,800 Brand Portfolio 285,988 286,488 Total intangible assets 288,788 289,288 Accumulated amortization (76,701 ) (72,628 ) Total intangible assets, net 212,087 216,660 Goodwill Brand Portfolio 127,081 127,098 Total goodwill 127,081 127,098 Goodwill and intangible assets, net $ 339,168 $ 343,758 As further described in Note 2 to the consolidated financial statements, the Company acquired Allen Edmonds on December 13, 2016. The allocation of the purchase price resulted in incremental intangible assets of $102.9 million , consisting of trademarks and customer relationships of $97.5 million and $5.4 million , respectively, and incremental goodwill of $113.1 million . The Company's intangible assets as of February 3, 2018 and January 28, 2017 were as follows: ($ thousands) February 3, 2018 Estimated Useful Lives Original Cost Accumulated Amortization Net Carrying Value Trademarks 15-40 years $ 165,288 $ 76,296 $ 88,992 Trademarks Indefinite 118,100 (1 ) — 118,100 Customer relationships 15 years 5,400 (1 ) 405 4,995 $ 288,788 $ 76,701 $ 212,087 (1) The Allen Edmonds trademark and customer relationships intangible assets were acquired in the Allen Edmonds acquisition, as further discussed in Note 2 to the consolidated financial statements. Immaterial adjustments attributable to the purchase price allocation were recorded during 2017, resulting in an adjustment to the original cost. January 28, 2017 Estimated Useful Lives Original Cost Accumulated Amortization Net Carrying Value Trademarks 15-40 years $ 165,288 $ 72,604 $ 92,684 Trademarks Indefinite 117,900 (1 ) — 117,900 Customer relationships 15 years 6,100 (1 ) 24 6,076 $ 289,288 $ 72,628 $ 216,660 Amortization expense related to intangible assets was $4.1 million in 2017 and $3.7 million in 2016 and 2015 . The Company estimates $4.1 million of amortization expense related to intangible assets in each of the years from 2018 through 2022 . As a result of its annual impairment testing, the Company did not record any impairment charges during 2017 , 2016 and 2015 related to intangible assets. Goodwill is tested for impairment at least annually, or more frequently if events or circumstances indicate it might be impaired, using either the qualitative assessment or a quantitative fair value-based test, as further discussed in Note 1 to the consolidated financial statements. As a result of the acquisition of Allen Edmonds in 2016, the Company performed a quantitative goodwill impairment test as of the first day of the Company’s fourth fiscal quarter and determined that the fair values of the reporting units exceeded the carrying values. Indefinite-lived intangible assets are tested for impairment as of the first day of the fourth quarter of each fiscal year unless events indicate an interim test is required. The indefinite-lived intangible asset impairment reviews resulted in no impairment charges. |
Long-Term and Short-Term Financ
Long-Term and Short-Term Financing Arrangements | 12 Months Ended |
Feb. 03, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term and Short-Term Financing Arrangements | LONG-TERM AND SHORT-TERM FINANCING ARRANGEMENTS Credit Agreement The Company maintains a revolving credit facility for working capital needs in an aggregate amount of up to $600.0 million , with the option to increase by up to $150.0 million . On December 18, 2014 , the Company and certain of its subsidiaries (the “Loan Parties”) entered into a Fourth Amended and Restated Credit Agreement, which was further amended on July 20, 2015 to release all of the Company’s subsidiaries that were borrowers under or that guaranteed the Credit Agreement other than Sidney Rich Associates, Inc. and BG Retail, LLC (as so amended, the “Credit Agreement”). On December 13, 2016 , Allen Edmonds was joined to the Credit Agreement as a guarantor. After giving effect to the joinder, the Company is the lead borrower, and Sidney Rich Associates, Inc., BG Retail, LLC and Allen Edmonds are each co-borrowers and guarantors under the Credit Agreement. The Credit Agreement matures on December 18, 2019 . The Credit Agreement amended and restated the Third Amended and Restated Credit Agreement, dated January 7, 2011 (the "Former Credit Agreement"). Borrowing availability under the Credit Agreement is limited to the lesser of the total commitments and the borrowing base ("Loan Cap"), which is based on stated percentages of the sum of eligible accounts receivable, eligible inventory and eligible credit card receivables, as defined, less applicable reserves. Under the Credit Agreement, the Loan Parties’ obligations are secured by a first-priority security interest in all accounts receivable, inventory and certain other collateral. Interest on borrowings is at variable rates based on the London Interbank Offered Rate (“LIBOR”) or the prime rate, as defined in the Credit Agreement, plus a spread. The interest rate and fees for letters of credit vary based upon the level of excess availability under the Credit Agreement. There is an unused line fee payable on the unused portion under the facility and a letter of credit fee payable on the outstanding face amount under letters of credit. The Credit Agreement limits the Company’s ability to create, incur, assume or permit to exist additional indebtedness and liens, make investments or specified payments, give guarantees, pay dividends, make capital expenditures and merge or acquire or sell assets. In addition, certain additional covenants would be triggered if excess availability were to fall below specified levels, including fixed charge coverage ratio requirements. Furthermore, if excess availability falls below 12.5% of the Loan Cap for three consecutive business days or an event of default occurs, the lenders may assume dominion and control over the Company’s cash (a “cash dominion event”) until such event of default is cured or waived or the excess availability exceeds such amount for 30 consecutive days, provided that a cash dominion event shall be deemed continuing (even if an event of default is no longer continuing and/or excess availability exceeds the required amount for 30 consecutive business days) after a cash dominion event has occurred and been discontinued on two occasions in any 12-month period. The Credit Agreement contains customary events of default, including, without limitation, payment defaults, breaches of representations and warranties, covenant defaults, cross-defaults to other material indebtedness, certain events of bankruptcy and insolvency, judgment defaults in excess of a certain threshold, the failure of any guaranty or security document supporting the agreement to be in full force and effect and a change of control event. In addition, if the excess availability falls below the greater of (i) 10.0% of the lesser of the Loan Cap and (ii) $50.0 million , and the fixed charge coverage ratio is less than 1.0 to 1.0 , the Company would be in default under the Credit Agreement. The Credit Agreement also contains certain other covenants and restrictions. The Company was in compliance with all covenants and restrictions under the Credit Agreement as of February 3, 2018 . The maximum amount of borrowings under the Credit Agreement at the end of any month was $260.0 million in both 2017 and 2016 . As discussed further in Note 2 to the consolidated financial statements, the Company utilized the Credit Agreement in December 2016 to fund the Allen Edmonds acquisition. The average daily borrowings during the year were $93.5 million and $34.8 million in 2017 and 2016 , respectively, and the weighted-average interest rates approximated 2.5% and 2.7% in 2017 and 2016 , respectively. At February 3, 2018 , the Company had no borrowings outstanding and $10.4 million in letters of credit outstanding under the Credit Agreement. Total additional borrowing availability was $535.2 million at February 3, 2018 . $200 Million Senior Notes Due 2019 During 2011, the Company issued $200.0 million aggregate principal amount of 7.125% Senior Notes due 2019 (the “2019 Senior Notes”). The 2019 Senior Notes were guaranteed on a senior unsecured basis by each of its subsidiaries that was an obligor under the Credit Agreement. Interest on the 2019 Senior Notes was payable on May 15 and November 15 of each year. The 2019 Senior Notes were scheduled to mature on May 15, 2019 but were callable at specified redemption prices, plus accrued and unpaid interest. On July 20, 2015 , the Company commenced a cash tender offer (the "Tender Offer") to purchase any and all of the outstanding aggregate principal amount of its 2019 Senior Notes. Upon expiration of the Tender Offer on July 24, 2015 , $160.7 million aggregate principal amount of the 2019 Senior Notes were validly tendered at the redemption price of 103.950% , representing the specified redemption price and a tender premium. On August 26, 2015 , the remaining outstanding $39.3 million aggregate principal amount of outstanding 2019 Senior Notes were redeemed at the redemption price of 103.563% . $200 Million Senior Notes Due 2023 On July 27, 2015 , the Company issued $200.0 million aggregate principal amount of 6.25% Senior Notes due 2023 (the "2023 Senior Notes") in a private placement. On October 22, 2015 , the Company commenced an offer to exchange its 2023 Senior Notes outstanding for substantially identical debt securities registered under the Securities Act of 1933. The exchange offer was completed on November 23, 2015 and did not affect the amount of the Company's indebtedness outstanding. The net proceeds from the issuance of the 2023 Senior Notes were approximately $196.3 million after deducting fees and expenses associated with the offering. The Company used the net proceeds, together with cash on hand, to redeem the outstanding 2019 Senior Notes. The 2023 Senior Notes are guaranteed on a senior unsecured basis by each of the Company's subsidiaries that is a borrower or guarantor under the Credit Agreement. Interest on the 2023 Senior Notes is payable on February 15 and August 15 of each year. The 2023 Senior Notes will mature on August 15, 2023 . Prior to August 15, 2018 , the Company may redeem some or all of the 2023 Senior Notes at a redemption price equal to 100% of the principal amount of the 2023 Senior Notes plus a "make-whole" premium (as defined in the 2023 Senior Notes indenture) and accrued and unpaid interest to the redemption date. After August 15, 2018 , the Company may redeem all or a part of the 2023 Senior Notes at the redemption prices (expressed as a percentage of principal amount) set forth below plus accrued and unpaid interest, and Additional Interest (as defined in the 2023 Senior Notes indenture), if redeemed during the 12-month period beginning on August 15 of the years indicated below: Year Percentage 2018 104.688 % 2019 103.125 % 2020 101.563 % 2021 and thereafter 100.000 % If the Company experiences specific kinds of changes of control, it would be required to offer to purchase the 2023 Senior Notes at a purchase price equal to 101% of the principal amount, plus accrued and unpaid interest and Additional Interest, if any, to, but not including, the date of repurchase. The 2023 Senior Notes also contain certain other covenants and restrictions that limit certain activities including, among other things, levels of indebtedness, payments of dividends, the guarantee or pledge of assets, certain investments, common stock repurchases, mergers and acquisitions and sales of assets. As of February 3, 2018, the Company was in compliance with all covenants and restrictions relating to the 2023 Senior Notes. Cash payments of interest for these financing arrangements during 2017 , 2016 and 2015 were $16.5 million , $15.2 million and $11.9 million , respectively. Loss on Early Extinguishment of Debt During 2015, the Company incurred a loss on early extinguishment of debt of $10.7 million with no corresponding losses in 2016 or 2017. The loss in 2015 represents the tender offer and call premiums, the unamortized debt issuance costs and the original issue discount related to the 2019 Senior Notes. Of the $10.7 million loss on early extinguishment of debt recognized in 2015, approximately $3.0 million was non-cash. |
Leases
Leases | 12 Months Ended |
Feb. 03, 2018 | |
Leases [Abstract] | |
Leases | LEASES The Company leases all of its retail locations, a manufacturing facility, and certain office locations, distribution centers and equipment. The minimum lease terms for the Company’s retail stores generally range from five to 10 years . Approximately 45% of the retail store leases contain renewal options for varying periods. The term of the manufacturing facility lease is eight years . The terms of the leases for office facilities and distribution centers range from 10 to 20 years with renewal options of five to 20 years . At the time its retail facilities are initially leased, the Company often receives consideration from landlords for a portion of the cost of leasehold improvements necessary to open the store, which are recorded as a deferred rent obligation and amortized to income over the lease term as a reduction of rent expense. In addition to minimum rental payments, certain of the retail store leases require contingent payments based on sales levels. The Company is also required to pay real estate taxes, maintenance and insurance which can vary year by year, and are therefore not included in the minimum rent payments below. A majority of the Company’s retail operating leases contain provisions that allow it to modify amounts payable under the lease or terminate the lease in certain circumstances, such as experiencing actual sales volume below a defined threshold and/or co-tenancy provisions associated with the facility. The following is a summary of rent expense for operating leases: ($ thousands) 2017 2016 2015 Minimum rent $ 171,980 $ 160,806 $ 149,902 Contingent rent 513 470 520 Sublease income (1,705 ) (1,665 ) (1,223 ) Total $ 170,788 $ 159,611 $ 149,199 Future minimum rent payments under noncancelable operating leases with an initial term of one year or more at February 3, 2018 were as follows: ($ thousands) 2018 $ 177,056 2019 146,218 2020 126,898 2021 103,692 2022 82,402 Thereafter 229,157 Total minimum operating lease payments (1) $ 865,423 (1) Minimum operating lease payments have not been reduced by minimum sublease rental income of $0.6 million due in the future under noncancelable sublease agreements. |
Risk Management and Derivatives
Risk Management and Derivatives | 12 Months Ended |
Feb. 03, 2018 | |
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |
Risk Management And Derivatives | RISK MANAGEMENT AND DERIVATIVES General Risk Management The Company maintains cash and cash equivalents and certain other financial instruments with various financial institutions. The financial institutions are located throughout the world and the Company’s policy is designed to limit exposure to any one institution or geographic region. The Company’s periodic evaluations of the relative credit standing of these financial institutions are considered in the Company’s investment strategy. The Company’s Brand Portfolio segment sells to national chains, online retailers, department stores, mass merchandisers, independent retailers and catalogs in the United States, Canada and approximately 57 other countries. Receivables arising from these sales are not collateralized. However, a portion is covered by documentary letters of credit. Credit risk is affected by conditions or occurrences within the economy and the retail industry. The Company maintains an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers and historical trends. Derivatives In the normal course of business, the Company’s financial results are impacted by currency rate movements in foreign-currency-denominated assets, liabilities and cash flows as it makes a portion of its purchases and sales in local currencies. The Company has established policies and business practices that are intended to mitigate a portion of the effect of these exposures. The Company uses derivative financial instruments, primarily forward contracts, to manage its currency exposures. These derivative financial instruments are viewed as risk management tools and are not used for trading or speculative purposes. Derivatives entered into by the Company are designated as cash flow hedges of forecasted foreign currency transactions. Derivative financial instruments expose the Company to credit and market risk. The market risk associated with these instruments resulting from currency exchange movements is expected to offset the market risk of the underlying transactions being hedged. The Company does not believe there is a significant risk of loss in the event of non-performance by the counterparties associated with these instruments because these transactions are executed with major international financial institutions and have varying maturities through February 2019 . Credit risk is managed through the continuous monitoring of exposures to such counterparties. The Company principally uses foreign currency forward contracts as cash flow hedges to offset a portion of the effects of exchange rate fluctuations. The Company’s cash flow exposures include anticipated foreign currency transactions, such as foreign currency denominated sales, costs, expenses and intercompany charges, as well as collections and payments. The Company performs a quarterly assessment of the effectiveness of the hedge relationship and measures and recognizes any hedge ineffectiveness in the consolidated statements of earnings. Hedge ineffectiveness is evaluated using the hypothetical derivative method. The amount of hedge ineffectiveness for 2017 , 2016 and 2015 was not material. The Company’s hedging strategy uses forward contracts as cash flow hedging instruments, which are recorded in the Company’s consolidated balance sheets at fair value. The effective portion of gains and losses resulting from changes in the fair value of these hedge instruments are deferred in accumulated other comprehensive income and reclassified to earnings in the period that the hedged transaction is recognized in earnings. As of February 3, 2018 and January 28, 2017 , the Company had forward contracts maturing at various dates through February 2019 and February 2018 , respectively. The contract amounts in the following table represent the net notional amount of all purchase and sale contracts of a foreign currency. (U.S. $ equivalent in thousands) February 3, 2018 January 28, 2017 Financial Instruments Euro $ 21,223 $ 13,297 U.S. dollars (purchased by the Company’s Canadian division with Canadian dollars) 16,874 18,826 Chinese yuan 12,058 7,723 New Taiwanese dollars 596 526 United Arab Emirates dirham — 823 Japanese yen — 769 Other currencies 415 124 Total financial instruments $ 51,166 $ 42,088 The classification and fair values of derivative instruments designated as hedging instruments included within the consolidated balance sheets as of February 3, 2018 and January 28, 2017 are as follows: ($ in thousands) Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value Foreign exchange forwards contracts: February 3, 2018 Prepaid expenses and other current assets $ 1,540 Other accrued expenses $ 542 January 28, 2017 Prepaid expenses and other current assets $ 234 Other accrued expenses $ 874 During 2017 and 2016 , the effect of derivative instruments in cash flow hedging relationships on the consolidated statements of earnings was as follows: 2017 2016 Foreign exchange forward contracts: (Loss) Gain Gain (Loss) Reclassified Loss (Loss) Gain Reclassified Net sales $ (25 ) $ 30 $ (61 ) $ (125 ) Cost of goods sold 1,144 171 (1,308 ) 64 Selling and administrative expenses 1,011 157 (359 ) (441 ) Interest expense (1 ) (1 ) (21 ) (4 ) All of the gains and losses currently included within accumulated other comprehensive loss associated with the Company’s foreign exchange forward contracts are expected to be reclassified into net earnings within the next 12 months. Additional information related to the Company’s derivative financial instruments are disclosed within Note 1 and Note 14 to the consolidated financial statements. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Feb. 03, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Fair Value Hierarchy Fair value measurement disclosure requirements specify a hierarchy of valuation techniques based upon whether the inputs to those valuation techniques reflect assumptions other market participants would use based upon market data obtained from independent sources (“observable inputs”) or reflect the Company’s own assumptions of market participant valuation (“unobservable inputs”). In accordance with the fair value guidance, the inputs to valuation techniques used to measure fair value are categorized into three levels based on the reliability of the inputs as follows: • Level 1 – Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities; • Level 2 – Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly; and • Level 3 – Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. In determining fair value, the Company uses valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value. Classification of the financial or non-financial asset or liability within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. Measurement of Fair Value The Company measures fair value as an exit price, the price to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date, using the procedures described below for all financial and non-financial assets and liabilities measured at fair value. Money Market Funds The Company has cash equivalents primarily consisting of short-term money market funds backed by U.S. Treasury securities. The primary objective of these investing activities is to preserve the Company's capital for the purpose of funding operations and it does not enter into money market funds for trading or speculative purposes. The fair value is based on unadjusted quoted market prices for the funds in active markets with sufficient volume and frequency (Level 1). Deferred Compensation Plan Assets and Liabilities The Company maintains a non-qualified deferred compensation plan (the “Deferred Compensation Plan”) for the benefit of certain management employees. The investment funds offered to the participants generally correspond to the funds offered in the Company’s 401(k) plan, and the account balance fluctuates with the investment returns on those funds. The Deferred Compensation Plan permits the deferral of up to 50% of base salary and 100% of compensation received under the Company’s annual incentive plan. The deferrals are held in a separate trust, which has been established by the Company to administer the Deferred Compensation Plan. The assets of the trust are subject to the claims of the Company’s creditors in the event that the Company becomes insolvent. Consequently, the trust qualifies as a grantor trust for income tax purposes (i.e., a “Rabbi Trust”). The liabilities of the Deferred Compensation Plan are presented in other accrued expenses and the assets held by the trust are classified as trading securities within prepaid expenses and other current assets in the accompanying consolidated balance sheets. Changes in deferred compensation plan assets and liabilities are charged to selling and administrative expenses. The fair value is based on unadjusted quoted market prices for the funds in active markets with sufficient volume and frequency (Level 1). Deferred Compensation Plan for Non-Employee Directors Non-employee directors are eligible to participate in a deferred compensation plan with deferred amounts valued as if invested in the Company’s common stock through the use of phantom stock units (“PSUs”). Under the plan, each participating director’s account is credited with the number of PSUs equal to the number of shares of the Company’s common stock that the participant could purchase or receive with the amount of the deferred compensation, based upon the average of the high and low prices of the Company’s common stock on the last trading day of the fiscal quarter when the cash compensation was earned. Dividend equivalents are paid on PSUs at the same rate as dividends on the Company’s common stock and are re-invested in additional PSUs at the next fiscal quarter-end. The liabilities of the plan are based on the fair value of the outstanding PSUs and are presented in other accrued expenses (current portion) or other liabilities in the accompanying consolidated balance sheets. Gains and losses resulting from changes in the fair value of the PSUs are presented in selling and administrative expenses in the Company’s consolidated statements of earnings. The fair value of each PSU is based on an unadjusted quoted market price for the Company’s common stock in an active market with sufficient volume and frequency on each measurement date (Level 1). Restricted Stock Units for Non-Employee Directors Under the Company’s incentive compensation plans, restricted stock units (“RSUs”) payable in cash or common stock of the Company may be granted at no cost to non-employee directors. The RSUs are subject to a vesting requirement (usually one year), earn dividend-equivalent units and are payable in cash or common stock on the date the director terminates service or such earlier date as a director may elect, subject to restrictions, based on the then current fair value of the Company’s common stock. The fair value of each RSU payable in cash is based on an unadjusted quoted market price for the Company’s common stock in an active market with sufficient volume and frequency on each measurement date (Level 1). During the fourth quarter of 2017, the Company converted 210,302 RSUs payable in cash to RSUs payable in common stock. The amended RSUs were previously to be settled and payable in cash. Additional information related to RSUs for non-employee directors is disclosed in Note 16 to the consolidated financial statements. Performance Share Units Under the Company’s incentive compensation plans, common stock or cash may be awarded at the end of the performance period at no cost to certain officers and key employees if certain financial goals are met. Under the plan, employees are granted performance share awards at a target number of shares or units, which generally vest over a three -year service period. At the end of the vesting period, the employee will have earned an amount of shares or units between 0% and 200% of the targeted award, depending on the achievement of specified financial goals for the service period. The fair value of each performance share unit is based on an unadjusted quoted market price for the Company’s common stock in an active market with sufficient volume and frequency on each measurement date (Level 1). During the first quarter of 2017, the Company's remaining performance share awards granted in units vested and were settled in cash at fair value. Additional information related to performance share units is disclosed in Note 16 to the consolidated financial statements. Derivative Financial Instruments The Company uses derivative financial instruments, primarily foreign exchange contracts, to reduce its exposure to market risks from changes in foreign exchange rates. These foreign exchange contracts are measured at fair value using quoted forward foreign exchange prices from counterparties corroborated by market-based pricing (Level 2). Additional information related to the Company’s derivative financial instruments is disclosed in Note 1 and Note 13 to the consolidated financial statements. The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis at February 3, 2018 and January 28, 2017 . The Company did not have any transfers between Level 1 and Level 2 during 2017 or 2016 . Fair Value Measurements ($ thousands) Total Level 1 Level 2 Level 3 Asset (Liability) As of February 3, 2018 Cash equivalents – money market funds $ 53,106 $ 53,106 $ — $ — Non-qualified deferred compensation plan assets 6,445 6,445 — — Non-qualified deferred compensation plan liabilities (6,445 ) (6,445 ) — — Deferred compensation plan liabilities for non-employee directors (2,289 ) (2,289 ) — — Restricted stock units for non-employee directors (4,343 ) (4,343 ) — — Derivative financial instruments, net 998 — 998 — As of January 28, 2017 Cash equivalents – money market funds $ 27,530 $ 27,530 $ — $ — Non-qualified deferred compensation plan assets 5,051 5,051 — — Non-qualified deferred compensation plan liabilities (5,051 ) (5,051 ) — — Deferred compensation plan liabilities for non-employee directors (1,909 ) (1,909 ) — — Restricted stock units for non-employee directors (9,390 ) (9,390 ) — — Performance share units (3,352 ) (3,352 ) — — Derivative financial instruments, net (640 ) — (640 ) — Impairment Charges The Company assesses the impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors the Company considers important that could trigger an impairment review include underperformance relative to expected historical or projected future operating results, a significant change in the manner of the use of the asset or a negative industry or economic trend. When the Company determines that the carrying value of long-lived assets may not be recoverable based upon the existence of one or more of the aforementioned factors, impairment is measured based on a projected discounted cash flow method. Certain factors, such as estimated store sales and expenses, used for this nonrecurring fair value measurement are considered Level 3 inputs as defined by FASB ASC 820, Fair Value Measurement . Long-lived assets held and used with a carrying amount of $112.5 million , $99.4 million and $92.9 million in 2017 , 2016 and 2015 , respectively, were assessed for indicators of impairment and written down to their fair value. This assessment resulted in the following impairment charges, by segment, which were included in selling and administrative expenses for the respective periods. ($ thousands) 2017 2016 2015 Impairment Charges Famous Footwear $ 677 $ 211 $ 1,159 Brand Portfolio 3,098 1,375 1,602 Total impairment charges $ 3,775 $ 1,586 $ 2,761 During the fourth quarter of 2016, the Company recognized an impairment charge of $7.0 million ( $7.0 million on an after-tax basis, or $0.16 per diluted share) related to its cost method investment in a nonconsolidated affiliate. The impairment charge is included in restructuring and other special charges in the Company's consolidated statements of earnings. Refer to Note 4 to the consolidated financial statements for additional information. The Company performed its annual impairment tests of indefinite-lived intangible assets, which involves estimating the fair value using significant unobservable inputs (Level 3). As a result of its annual impairment testing, the Company did not record any impairment charges during 2017 , 2016 or 2015 related to intangible assets. During 2017, the Company performed its annual impairment test of goodwill by completing a quantitative assessment at the reporting unit level, which involved estimating the fair value of its reporting units using significant unobservable inputs (Level 3). During 2016 and 2015 , the Company elected to perform a qualitative assessment of goodwill. The impairment tests, performed as of the first day of the Company’s fourth fiscal quarter of 2017 , 2016 and 2015 , resulted in no impairment charges. See Note 1 and Note 10 to the consolidated financial statements for additional information related to the goodwill impairment test. Fair Value of the Company’s Other Financial Instruments The fair values of cash and cash equivalents (excluding money market funds discussed above), receivables and trade accounts payable approximate their carrying values due to the short-term nature of these instruments. The carrying amounts and fair values of the Company’s other financial instruments subject to fair value disclosures are as follows: February 3, 2018 January 28, 2017 Carrying Value Fair Value Carrying Value Fair Value ($ thousands) Borrowings under revolving credit agreement $ — $ — $ 110,000 $ 110,000 Long-term debt 197,472 210,000 197,003 209,000 Total debt $ 197,472 $ 210,000 $ 307,003 $ 319,000 The fair value of the borrowings under revolving credit agreement approximates its carrying value due to the short-term nature (Level 1), and the fair value of the Company's long-term debt was based upon quoted prices in an inactive market as of the end of the respective periods (Level 2). |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Feb. 03, 2018 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | SHAREHOLDERS' EQUITY Stock Repurchase Program On August 25, 2011 , the Board of Directors approved a stock repurchase program (“2011 Program”) authorizing the repurchase of up to 2.5 million shares of the Company’s outstanding common stock. The Company can use the repurchase program to repurchase shares on the open market or in private transactions from time to time, depending on market conditions. The repurchase program does not have an expiration date. Repurchases of common stock are limited under the Company’s debt agreements. During 2017 , 2016 and 2015 there were 225,000 , 900,000 and 151,500 shares, respectively, repurchased under the 2011 Program. Therefore, there were 1.2 million shares remaining that are authorized to be repurchased under the 2011 Program as of February 3, 2018 . Repurchases Related to Employee Share-based Awards During 2017 , 2016 and 2015 , employees tendered 141,713 , 205,569 and 222,110 shares, respectively, related to certain share-based awards. These shares were tendered in satisfaction of the exercise price of stock options and/or to satisfy tax withholding amounts for non-qualified stock options, restricted stock and stock performance awards. Accordingly, these share repurchases are not considered a part of the Company’s publicly announced stock repurchase programs. Accumulated Other Comprehensive Loss The following table sets forth the changes in accumulated other comprehensive loss, net of tax, by component for 2017 , 2016 and 2015 : ($ thousands) Foreign Currency Translation Pension and Other Postretirement Transactions (1) Derivative Transactions (2) Accumulated Other Comprehensive Income (Loss) Balance January 31, 2015 $ (745 ) $ 3,233 $ 224 $ 2,712 Other comprehensive (loss) income before reclassifications (155 ) (7,559 ) 74 (7,640 ) Reclassifications: Amounts reclassified from accumulated other comprehensive loss — (1,706 ) 177 (1,529 ) Tax provision (benefit) — 676 (83 ) 593 Net reclassifications — (1,030 ) 94 (936 ) Other comprehensive (loss) income (155 ) (8,589 ) 168 (8,576 ) Balance January 30, 2016 $ (900 ) $ (5,356 ) $ 392 $ (5,864 ) Other comprehensive income (loss) before reclassifications 1,092 (23,888 ) (1,255 ) (24,051 ) Reclassifications: Amounts reclassified from accumulated other comprehensive loss — (1,395 ) 506 (889 ) Tax provision (benefit) — 555 (185 ) 370 Net reclassifications — (840 ) 321 (519 ) Other comprehensive income (loss) 1,092 (24,728 ) (934 ) (24,570 ) Balance January 28, 2017 $ 192 $ (30,084 ) $ (542 ) $ (30,434 ) Other comprehensive income before reclassifications 1,043 18,627 1,337 21,007 Reclassifications: Amounts reclassified from accumulated other comprehensive loss — 225 (357 ) (132 ) Tax (benefit) provision — (58 ) 121 63 Net reclassifications — 167 (236 ) (69 ) Other comprehensive income 1,043 18,794 1,101 20,938 Reclassification of stranded tax effects — (5,882 ) 208 (5,674 ) Balance February 3, 2018 $ 1,235 $ (17,172 ) $ 767 $ (15,170 ) (1) Amounts reclassified are included in selling and administrative expenses. Refer to Note 5 to the consolidated financial statements for additional information related to pension and other postretirement benefits. (2) Amounts reclassified are included in net sales, costs of goods sold, selling and administrative expenses and interest expense. Refer to Note 13 and Note 14 to the consolidated financial statements for additional information related to derivative financial instruments. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Feb. 03, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | SHARE-BASED COMPENSATION The Company has share-based incentive compensation plans under which certain officers, employees and members of the Board of Directors are participants and may be granted restricted stock, stock performance awards, restricted stock units and stock options. ASC 718, Compensation – Stock Compensation , and ASC 505, Equity , require companies to recognize compensation expense in an amount equal to the fair value of all share-based payments granted to employees over the requisite service period for each award. In certain limited circumstances, the Company’s incentive compensation plan provides for accelerated vesting of the awards, such as in the event of a change in control, qualified retirement, death or disability. The Company has a policy of issuing treasury shares in satisfaction of share-based awards. Share-based compensation expense of $11.3 million , $7.7 million and $7.5 million was recognized in 2017 , 2016 and 2015 , respectively, as a component of selling and administrative expenses. The following table details the share-based compensation expense by plan for 2017 , 2016 and 2015 : ($ thousands) 2017 2016 2015 Expense for share-based compensation plans, net of forfeitures: Restricted stock $ 7,657 $ 5,858 $ 6,027 Stock performance awards 3,508 1,829 1,398 Restricted stock units 66 — — Stock options 67 38 66 Total share-based compensation expense $ 11,298 $ 7,725 $ 7,491 In addition to the share-based compensation expense above, the Company recognized cash-based expense related to performance share units and cash awards granted under the performance share plans. In 2017 , 2016 and 2015 , the Company recognized $0.1 million , $2.9 million and $5.1 million , respectively, in expense for cash-based awards under the performance share plans. During the first quarter of 2017 , the Company's remaining performance share awards granted in units vested and were settled in cash at fair value. The Company issued 293,470 , 203,066 and 59,682 shares of common stock in 2017 , 2016 and 2015 , respectively, for restricted stock grants, stock performance awards issued to employees, stock options exercised and common and restricted stock grants issued to non-employee directors, net of forfeitures and shares withheld to satisfy the tax withholding requirement. The Company recognized excess tax benefits related to restricted stock vestings and dividends, performance share award vestings and stock options exercised of $1.3 million , $2.3 million and $2.7 million in 2017 , 2016 and 2015 , respectively. In accordance with ASU 2016-09, Improvements to Employee Share-Based Payment Accounting , which the Company adopted during the first quarter of 2017, the Company recognized these excess tax benefits within the income tax provision in 2017 , as further discussed in Note 1 to the consolidated financial statements. The excess tax benefits recognized in 2016 and 2015 were reflected as an increase to additional paid-in capital. Restricted Stock Under the Company’s incentive compensation plans, restricted stock of the Company may be granted at no cost to certain officers, key employees and directors. Plan participants are entitled to cash dividends and voting rights for their respective shares. The restricted stock awards limit the sale or transfer of these shares during the requisite service period. Expense for restricted stock grants is recognized on a straight-line basis separately for each vesting portion of the stock award based upon fair value of the award on the date of grant. The fair value of the restricted stock grants is the quoted market price for the Company’s common stock on the date of grant. The following table summarizes restricted stock activity for 2017 , 2016 and 2015 : Number of Nonvested Weighted-Average Nonvested at January 31, 2015 1,562,470 $15.61 Granted 318,921 30.02 Vested (492,092 ) 14.10 Forfeited (126,850 ) 18.74 Nonvested at January 30, 2016 1,262,449 19.55 Granted 402,100 27.55 Vested (428,750 ) 9.29 Forfeited (107,750 ) 24.24 Nonvested at January 28, 2017 1,128,049 25.85 Granted 392,812 27.07 Vested (267,585 ) 17.55 Forfeited (78,475 ) 29.26 Nonvested at February 3, 2018 1,174,801 $27.92 Of the 392,812 restricted shares granted during 2017 , 4,492 shares have a cliff-vesting term of one year, 12,000 shares have a graded-vesting term of four years, and 376,320 shares have a cliff-vesting term of four years. Of the 402,100 restricted shares granted during 2016 , 45,000 shares have a graded-vesting term of four years and 357,100 shares have a cliff-vesting term of four years. Of the 318,921 restricted shares granted during 2015 , 306,421 have a cliff-vesting term of four years and 12,500 had a cliff-vesting term of five years. The total grant date fair value of restricted stock awards vested during the years ended February 3, 2018 , January 28, 2017 and January 30, 2016 , was $4.7 million , $4.0 million and $6.9 million , respectively. As of February 3, 2018 , the total remaining unrecognized compensation cost related to nonvested restricted stock grants was $15.1 million , which will be amortized over the weighted-average remaining requisite service period of 2.5 years . Performance Share Awards Under the Company’s incentive compensation plans, common stock or cash may be awarded at the end of the performance period at no cost to certain officers and key employees if certain financial goals are met. Under the plan, employees are granted performance share awards at a target number of shares or units, which vest over a three -year service period. At the end of the vesting period, the employee will have earned an amount of shares between 0% and 200% of the targeted award, depending on the achievement of specified financial goals for the service period. If the awards are granted in units, the employee will be given an amount of cash ranging from 0% to 200% of the equivalent market value of the targeted award. Expense for performance share awards is recognized based upon the fair value of the awards on the date of grant and the anticipated number of shares or cash to be awarded on a straight-line basis for each vesting portion of the share award. The fair value of the performance share awards granted in units is the unadjusted quoted market price for the Company’s common stock on the date of grant, as further discussed in Note 14 to the consolidated financial statements. During the first quarter of 2017 , the Company's remaining performance share awards granted in units vested and were settled in cash at fair value. The following table summarizes performance share award activity for 2017 , 2016 and 2015 : Number of Number of Weighted-Average Nonvested at January 31, 2015 148,535 297,070 $23.39 Granted 177,921 355,842 30.12 Vested (15,182 ) (30,364 ) 24.71 Expired — — — Forfeited (3,750 ) (7,500 ) 29.47 Nonvested at January 30, 2016 307,524 615,048 27.14 Granted 159,000 318,000 26.64 Vested (56,175 ) (112,350 ) 17.00 Expired — — — Forfeited (7,850 ) (15,700 ) 27.14 Nonvested at January 28, 2017 402,499 804,998 28.36 Granted 169,500 339,000 26.90 Vested (160,372 ) (320,744 ) 29.16 Expired — — — Forfeited (12,000 ) (24,000 ) 27.46 Nonvested at February 3, 2018 399,627 799,254 $27.45 As of February 3, 2018 , the remaining unrecognized compensation cost related to nonvested performance share awards was $4.5 million , which will be recognized over the weighted-average remaining service period of 1.8 years . Stock Options Stock options are granted to employees at exercise prices equal to the quoted market price of the Company’s stock at the date of grant. Stock options generally vest over four years and have a term of 10 years . Compensation cost for all stock options is recognized over the requisite service period for each award. No dividends are paid on unexercised options. Expense for stock options is recognized on a straight-line basis separately for each vesting portion of the stock option award. The Company granted 16,667 stock options during 2015 . No stock options were granted during 2017 or 2016 . The fair value of options granted was estimated using the Black-Scholes option-pricing model based on the following assumptions: 2015 Dividend yield 1.0 % Expected volatility 45.5 % Risk-free interest rate 1.8 % Expected term (in years) 7 Dividend yields are based on historical dividend yields. Expected volatilities are based on historical volatilities of the Company’s common stock at the time of grant. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of the grant for periods corresponding with the expected term of the options. The expected term of options represents the weighted-average period of time that options granted are expected to be outstanding, giving consideration to vesting schedules and the Company’s historical exercise patterns. Summarized information about stock options outstanding and exercisable at February 3, 2018 is as follows: Outstanding Exercisable Exercise Price Range Number of Weighted- Weighted- Number of Weighted- Weighted- $3.33 - $5.99 17,000 1.1 $3.49 12,000 1.1 $3.56 $6.00 - $9.17 14,875 3.4 8.05 14,875 3.4 8.05 $9.18 - $14.60 16,000 3.1 11.22 16,000 3.1 11.22 $14.61 - $22.34 16,500 1.4 15.23 16,500 1.4 15.23 $22.35 - $29.18 16,667 7.0 29.18 — — — 81,042 3.2 $13.53 59,375 2.3 $9.99 The aggregate intrinsic value of stock options outstanding and currently exercisable at February 3, 2018 was $1.2 million and $1.1 million , respectively. Intrinsic value for stock options is calculated based on the exercise price of the underlying awards as compared to the quoted price of the Company’s common stock as of the reporting date. The following table summarizes stock option activity for 2017 under the current and prior plans: Number of Weighted-Average Outstanding at January 28, 2017 150,540 $20.25 Exercised (21,250 ) 12.55 Forfeited — — Canceled or expired (48,248 ) 34.94 Outstanding at February 3, 2018 81,042 $13.53 Exercisable at February 3, 2018 59,375 $9.99 The intrinsic value of stock options exercised was $0.3 million , $1.4 million and $1.3 million for 2017 , 2016 and 2015 , respectively. The amount of cash received from the exercise of stock options was an immaterial amount in 2017 , $0.6 million in 2016 and $0.4 million in 2015 . In addition, 9,622 , 39,402 and 32,139 shares were tendered by employees in satisfaction of the exercise price of stock options during 2017 , 2016 and 2015 , respectively. The following table summarizes nonvested stock option activity for 2017 under the current and prior plans: Number of Weighted-Average Nonvested at January 28, 2017 26,667 $8.42 Granted — — Vested (5,000 ) 1.12 Forfeited — — Nonvested at February 3, 2018 21,667 $10.11 The weighted-average grant date fair value of stock options granted for 2015 was $12.81 . The total grant date fair value of stock options vested during 2015 was $0.1 million and immaterial in 2017 and 2016 . As of February 3, 2018 , the total remaining unrecognized compensation cost related to nonvested stock options was $0.1 million , which will be amortized over the weighted-average remaining requisite service period of 1.6 years . Restricted Stock Units for Non-Employee Directors Equity-based grants may be made to non-employee directors in the form of restricted stock units (“RSUs”) payable in cash or common stock at no cost to the non-employee director. The RSUs are subject to a vesting requirement (usually one year), earn dividend equivalent units and are payable in cash or common stock on the date the director terminates service or such earlier date as a director may elect, subject to restrictions, based on the then current fair value of the Company’s common stock. Dividend equivalents are paid on outstanding RSUs at the same rate as dividends on the Company’s common stock, are automatically re-invested in additional RSUs and vest immediately as of the payment date for the dividend. Expense related to the initial grant of RSUs is recognized ratably over the vesting period based upon the fair value of the RSUs, as remeasured at the end of each period. Expense for the dividend equivalents is recognized at fair value immediately. Gains and losses resulting from changes in the fair value of the RSUs payable in cash subsequent to the vesting period and through the settlement date are reported in the Company’s consolidated statements of earnings. During the fourth quarter of 2017, the Company converted 210,302 of its director RSUs payable in cash with a value of $6.3 million to RSUs payable in common stock. Refer to Note 5 and Note 14 to the consolidated financial statements for information regarding the deferred compensation plan for non-employee directors. The following table summarizes restricted stock unit activity for the year ended February 3, 2018 : Outstanding Accrued (1) Nonvested RSUs Number of Number of Total Number (2) Total Number Weighted-Average January 28, 2017 299,770 52,200 351,970 334,570 $21.74 Granted (3) 2,980 45,371 48,351 33,378 27.84 Vested 46,851 (46,851 ) — 15,467 24.89 Settled (10,356 ) — (10,356 ) (10,356 ) 26.68 February 3, 2018 339,245 50,720 389,965 373,059 $24.29 (1) Accrued RSUs include all fully vested awards and a pro-rata portion of nonvested awards based on the elapsed portion of the vesting period. (2) Total number of RSUs as of February 3, 2018 includes 210,759 RSUs payable in shares and 179,206 RSUs payable in cash. (3) Granted RSUs include 3,431 RSUs resulting from dividend equivalents paid on outstanding RSUs, of which 2,980 related to outstanding vested RSUs and 451 to outstanding nonvested RSUs. The following table summarizes RSUs granted, vested and settled during 2017 , 2016 and 2015 : ($ thousands, except per unit amounts) 2017 2016 2015 Weighted-average grant date fair value of RSUs granted (1) $ 27.93 $ 21.95 $ 31.54 Fair value of RSUs vested $ 1,349 $ 1,086 $ 1,049 RSUs settled 10,356 52,524 21,698 (1) Includes dividend equivalents granted on outstanding RSUs, which vest immediately. The following table details the RSU compensation expense and the related income tax benefit for 2017 , 2016 and 2015 : ($ thousands) 2017 2016 2015 Compensation expense $ 1,645 $ 2,459 $ 704 Income tax benefit (620 ) (956 ) (276 ) Compensation expense, net of income tax benefit $ 1,025 $ 1,503 $ 428 The aggregate fair value of RSUs outstanding and currently vested at February 3, 2018 is $11.2 million and $9.8 million , respectively. The liabilities associated with the accrued RSUs totaled $4.3 million and $9.4 million as of February 3, 2018 and January 28, 2017 , respectively. As discussed above, director RSUs payable in cash totaling $6.3 million were converted to RSUs payable in common stock during 2017. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Feb. 03, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS C. banner International Holdings Limited The Company has a joint venture agreement with a subsidiary of C. banner International Holdings Limited (“CBI”) to market Naturalizer footwear in China. The Company is a 51% owner of the joint venture (“B&H Footwear”), with CBI owning the other 49% . The license enabling the joint venture to market the footwear expired in August 2017 and the parties are in the process of dissolving their joint venture arrangements. Prior to the expiration of the joint venture agreement, B&H Footwear sold Naturalizer footwear to a retail affiliate of CBI on a wholesale basis, which in turn sold the Naturalizer products through department store shops and free-standing stores in China. The Company, through its consolidated subsidiary, B&H Footwear, sold Naturalizer footwear on a wholesale basis to CBI totaling $5.4 million , and $8.4 million in 2016 and 2015 , respectively, with no corresponding sales during 2017 . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Feb. 03, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Environmental Remediation Prior operations included numerous manufacturing and other facilities for which the Company may have responsibility under various environmental laws for the remediation of conditions that may be identified in the future. The Company is involved in environmental remediation and ongoing compliance activities at several sites and has been notified that it is or may be a potentially responsible party at several other sites. Redfield The Company is remediating, under the oversight of Colorado authorities, the groundwater and indoor air at its owned facility in Colorado (the “Redfield site” or, when referring to remediation activities at or under the facility, the “on-site remediation”) and residential neighborhoods adjacent to and near the property (the “off-site remediation”) that have been affected by solvents previously used at the facility. The on-site remediation calls for the operation of a pump and treat system (which prevents migration of contaminated groundwater off the property) as the final remedy for the site, subject to monitoring and periodic review of the on-site conditions and other remedial technologies that may be developed in the future. In 2016, the Company submitted a revised plan to address on-site conditions, including direct treatment of source areas, and received approval from the oversight authorities to begin implementing the revised plan. As the treatment of the on-site source areas progresses, the Company expects to convert the pump and treat system to a passive treatment barrier system. Off-site groundwater concentrations have been reducing over time since installation of the pump and treat system in 2000 and injection of clean water beginning in 2003. However, localized areas of contaminated bedrock just beyond the property line continue to impact off-site groundwater. The modified workplan for addressing this condition includes converting the off-site bioremediation system into a monitoring well network and employing different remediation methods in these recalcitrant areas. In accordance with the workplan, a pilot test was conducted of certain groundwater remediation methods and the results of that test were used to develop more detailed plans for remedial activities in the off-site areas, which were approved by the authorities and are being implemented in a phased manner. The results of groundwater monitoring are being used to evaluate the effectiveness of these activities. The Company continues to implement the expanded remedy workplan that was approved by the oversight authorities in 2015. Based on the progress of the direct remedial action of on-site conditions, the Company has submitted a request to the oversight authorities for permission to convert the perimeter pump and treat active remediation system to a passive one. The cumulative expenditures for both on-site and off-site remediation through February 3, 2018 were $30.0 million . The Company has recovered a portion of these expenditures from insurers and other third parties. The reserve for the anticipated future remediation activities at February 3, 2018 is $9.4 million , of which $8.7 million is recorded within other liabilities and $0.7 million is recorded within other accrued expenses. Of the total $9.4 million reserve, $4.9 million is for off-site remediation and $4.5 million is for on-site remediation. The liability for the on-site remediation was discounted at 4.8% . On an undiscounted basis, the on-site remediation liability would be $14.1 million as of February 3, 2018 . The Company expects to spend approximately $0.2 million in the next year, $0.1 million in each of the following four years and $13.5 million in the aggregate thereafter related to the on-site remediation. Other Various federal and state authorities have identified the Company as a potentially responsible party for remediation at certain other sites. However, the Company does not currently believe that its liability for such sites, if any, would be material. The Company continues to evaluate its estimated costs in conjunction with its environmental consultants and records its best estimate of such liabilities. However, future actions and the associated costs are subject to oversight and approval of various governmental authorities. Accordingly, the ultimate costs may vary, and it is possible costs may exceed the recorded amounts. Litigation The Company is involved in legal proceedings and litigation arising in the ordinary course of business. In the opinion of management, the outcome of such ordinary course of business proceedings and litigation currently pending is not expected to have a material adverse effect on the Company’s results of operations or financial position. Legal costs associated with litigation are generally expensed as incurred. |
Financial Information for the C
Financial Information for the Company and its Subsidiaries | 12 Months Ended |
Feb. 03, 2018 | |
Financial Information For The Company And Its Subsidiaries [Abstract] | |
Financial Information for the Company and its Subsidiaries | FINANCIAL INFORMATION FOR THE COMPANY AND ITS SUBSIDIARIES The Company's 2023 Senior Notes are fully and unconditionally and jointly and severally guaranteed by all of its existing and future subsidiaries that are guarantors under the Credit Agreement, as further discussed in Note 11 to the consolidated financial statements. The following table presents the condensed consolidating financial information for each of Caleres, Inc. (“Parent”), the Guarantors, and subsidiaries of the Parent that are not Guarantors (the “Non-Guarantors”), together with consolidating eliminations, as of and for the periods indicated. Guarantors are 100% owned by the Parent. On December 13, 2016, Allen Edmonds was joined to the Credit Agreement as a guarantor. After giving effect to the joinder, the Company is the lead borrower, and Sidney Rich Associates, Inc., BG Retail, LLC and Allen Edmonds are each co-borrowers and guarantors under the Credit Agreement. The condensed consolidating financial statements have been prepared using the equity method of accounting in accordance with the requirements for presentation of such information. Management believes that the information, presented in lieu of complete financial statements for each of the Guarantors, provides meaningful information to allow investors to determine the nature of the assets held by, and operations and cash flows of, each of the consolidated groups. CONDENSED CONSOLIDATING BALANCE SHEET AS OF FEBRUARY 3, 2018 Non-Guarantors ($ thousands) Parent Guarantors Eliminations Total Assets Current assets: Cash and cash equivalents $ 26,089 $ — $ 37,958 $ — $ 64,047 Receivables, net 124,957 3,663 23,993 — 152,613 Inventories, net 146,068 394,438 28,873 — 569,379 Prepaid expenses and other current assets 26,284 30,456 8,394 (4,384 ) 60,750 Intercompany receivable - current 521 74 9,250 (9,845 ) — Total current assets 323,919 428,631 108,468 (14,229 ) 846,789 Property and equipment, net 35,474 165,227 12,098 — 212,799 Goodwill and intangible assets, net 111,108 40,937 187,123 — 339,168 Other assets 76,317 13,610 732 — 90,659 Investment in subsidiaries 1,329,428 — (23,565 ) (1,305,863 ) — Intercompany receivable - noncurrent 774,588 520,362 704,810 (1,999,760 ) — Total assets $ 2,650,834 $ 1,168,767 $ 989,666 $ (3,319,852 ) $ 1,489,415 Liabilities and Equity Current liabilities: Trade accounts payable $ 136,797 $ 102,420 $ 33,745 $ — $ 272,962 Other accrued expenses 65,817 74,006 21,758 (4,384 ) 157,197 Intercompany payable - current 5,524 — 4,321 (9,845 ) — Total current liabilities 208,138 176,426 59,824 (14,229 ) 430,159 Other liabilities: Long-term debt 197,472 — — — 197,472 Other liabilities 101,784 35,574 5,464 — 142,822 Intercompany payable - noncurrent 1,425,951 98,610 475,199 (1,999,760 ) — Total other liabilities 1,725,207 134,184 480,663 (1,999,760 ) 340,294 Equity: Caleres, Inc. shareholders’ equity 717,489 858,157 447,706 (1,305,863 ) 717,489 Noncontrolling interests — — 1,473 — 1,473 Total equity 717,489 858,157 449,179 (1,305,863 ) 718,962 Total liabilities and equity $ 2,650,834 $ 1,168,767 $ 989,666 $ (3,319,852 ) $ 1,489,415 CONDENSED CONSOLIDATING STATEMENT OF EARNINGS FOR THE FISCAL YEAR ENDED FEBRUARY 3, 2018 ($ thousands) Parent Guarantors Non-Guarantors Eliminations Total Net sales $ 837,849 $ 1,935,265 $ 211,815 $ (199,345 ) $ 2,785,584 Cost of goods sold 580,038 1,090,354 109,104 (162,561 ) 1,616,935 Gross profit 257,811 844,911 102,711 (36,784 ) 1,168,649 Selling and administrative expenses 233,860 771,027 55,600 (36,784 ) 1,023,703 Restructuring and other special charges, net 3,942 756 217 — 4,915 Operating earnings 20,009 73,128 46,894 — 140,031 Interest expense (18,075 ) (14 ) — — (18,089 ) Interest income 332 — 432 — 764 Intercompany interest income (expense) 8,354 (8,813 ) 459 — — Earnings before income taxes 10,620 64,301 47,785 — 122,706 Income tax provision (24,963 ) (175 ) (10,337 ) — (35,475 ) Equity in earnings (loss) of subsidiaries, net of tax 101,543 — (1,619 ) (99,924 ) — Net earnings 87,200 64,126 35,829 (99,924 ) 87,231 Less: Net earnings attributable to noncontrolling interests — — 31 — 31 Net earnings attributable to Caleres, Inc. $ 87,200 $ 64,126 $ 35,798 $ (99,924 ) $ 87,200 CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME FOR THE FISCAL YEAR ENDED FEBRUARY 3, 2018 Non-Guarantors ($ thousands) Parent Guarantors Eliminations Total Net earnings $ 87,200 $ 64,126 $ 35,829 $ (99,924 ) $ 87,231 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment — — 1,116 — 1,116 Pension and other postretirement benefits adjustments 18,855 — (61 ) — 18,794 Derivative financial instruments 1,539 14 (452 ) — 1,101 Other comprehensive income from investment in subsidiaries 544 — — (544 ) — Other comprehensive income, net of tax 20,938 14 603 (544 ) 21,011 Comprehensive income 108,138 64,140 36,432 (100,468 ) 108,242 Comprehensive income attributable to noncontrolling interests — — 104 — 104 Comprehensive income attributable to Caleres, Inc. $ 108,138 $ 64,140 $ 36,328 $ (100,468 ) $ 108,138 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE FISCAL YEAR ENDED FEBRUARY 3, 2018 Non-Guarantors ($ thousands) Parent Guarantors Eliminations Total Net cash provided by operating activities $ 40,601 $ 90,745 $ 60,029 $ — $ 191,375 Investing activities Purchases of property and equipment (9,522 ) (31,159 ) (4,039 ) — (44,720 ) Capitalized software (5,950 ) (483 ) (25 ) — (6,458 ) Intercompany investing (20,224 ) 197,929 (177,705 ) — — Net cash (used for) provided by investing activities (35,696 ) 166,287 (181,769 ) — (51,178 ) Financing activities Borrowings under revolving credit agreement 454,000 — — — 454,000 Repayments under revolving credit agreement (564,000 ) — — — (564,000 ) Dividends paid (12,027 ) — — — (12,027 ) Acquisition of treasury stock (5,993 ) — — — (5,993 ) Issuance of common stock under share-based plans, net (3,816 ) — — — (3,816 ) Intercompany financing 129,021 (266,061 ) 137,040 — — Net cash (used for) provided by financing activities (2,815 ) (266,061 ) 137,040 — (131,836 ) Effect of exchange rate changes on cash and cash equivalents — — 354 — 354 Increase (decrease) in cash and cash equivalents 2,090 (9,029 ) 15,654 — 8,715 Cash and cash equivalents at beginning of year 23,999 9,029 22,304 — 55,332 Cash and cash equivalents at end of year $ 26,089 $ — $ 37,958 $ — $ 64,047 CONDENSED CONSOLIDATING BALANCE SHEET AS OF JANUARY 28, 2017 Non- Guarantors ($ thousands) Parent Guarantors Eliminations Total Assets Current assets: Cash and cash equivalents $ 23,999 $ 9,029 $ 22,304 $ — $ 55,332 Receivables, net 118,746 5,414 28,961 — 153,121 Inventories, net 150,098 410,867 24,799 — 585,764 Prepaid expenses and other current assets 24,293 23,040 8,058 (5,863 ) 49,528 Intercompany receivable - current 695 263 22,091 (23,049 ) — Total current assets 317,831 448,613 106,213 (28,912 ) 843,745 Property and equipment, net 31,424 176,358 11,414 — 219,196 Goodwill and intangible assets, net 113,333 219,337 11,088 — 343,758 Other assets 51,181 16,567 826 — 68,574 Investment in subsidiaries 1,343,954 — (21,946 ) (1,322,008 ) — Intercompany receivable - noncurrent 568,541 366,902 581,624 (1,517,067 ) — Total assets $ 2,426,264 $ 1,227,777 $ 689,219 $ (2,867,987 ) $ 1,475,273 Liabilities and Equity Current liabilities: Borrowings under revolving credit agreement $ 110,000 $ — $ — $ — $ 110,000 Trade accounts payable 116,783 112,434 37,153 — 266,370 Other accrued expenses 74,941 65,228 16,919 (5,863 ) 151,225 Intercompany payable - current 12,794 — 10,255 (23,049 ) — Total current liabilities 314,518 177,662 64,327 (28,912 ) 527,595 Other liabilities: Long-term debt 197,003 — — — 197,003 Other liabilities 91,683 40,507 3,999 — 136,189 Intercompany payable - noncurrent 1,209,943 98,982 208,142 (1,517,067 ) — Total other liabilities 1,498,629 139,489 212,141 (1,517,067 ) 333,192 Equity: Caleres, Inc. shareholders’ equity 613,117 910,626 411,382 (1,322,008 ) 613,117 Noncontrolling interests — — 1,369 — 1,369 Total equity 613,117 910,626 412,751 (1,322,008 ) 614,486 Total liabilities and equity $ 2,426,264 $ 1,227,777 $ 689,219 $ (2,867,987 ) $ 1,475,273 CONDENSED CONSOLIDATING STATEMENT OF EARNINGS FOR THE FISCAL YEAR ENDED JANUARY 28, 2017 Non-Guarantors ($ thousands) Parent Guarantors Eliminations Total Net sales $ 825,654 $ 1,692,093 $ 227,557 $ (165,916 ) $ 2,579,388 Cost of goods sold 583,131 938,169 129,410 (133,313 ) 1,517,397 Gross profit 242,523 753,924 98,147 (32,603 ) 1,061,991 Selling and administrative expenses 212,156 690,292 57,757 (32,603 ) 927,602 Restructuring and other special charges, net 15,333 433 7,638 — 23,404 Operating earnings 15,034 63,199 32,752 — 110,985 Interest expense (15,102 ) (9 ) — — (15,111 ) Interest income 811 — 569 — 1,380 Intercompany interest income (expense) 8,888 (9,033 ) 145 — — Earnings before income taxes 9,631 54,157 33,466 — 97,254 Income tax provision (5,075 ) (20,084 ) (6,009 ) — (31,168 ) Equity in earnings (loss) of subsidiaries, net of tax 61,102 — (2,422 ) (58,680 ) — Net earnings 65,658 34,073 25,035 (58,680 ) 66,086 Less: Net earnings attributable to noncontrolling interests — — 428 — 428 Net earnings attributable to Caleres, Inc. $ 65,658 $ 34,073 $ 24,607 $ (58,680 ) $ 65,658 CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME FOR THE FISCAL YEAR ENDED JANUARY 28, 2017 Non-Guarantors ($ thousands) Parent Guarantors Eliminations Total Net earnings $ 65,658 $ 34,073 $ 25,035 $ (58,680 ) $ 66,086 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment — — 1,045 — 1,045 Pension and other postretirement benefits adjustments (24,790 ) — 62 — (24,728 ) Derivative financial instruments 181 — (1,115 ) — (934 ) Other comprehensive income from investment in subsidiaries 39 — — (39 ) — Other comprehensive loss, net of tax (24,570 ) — (8 ) (39 ) (24,617 ) Comprehensive income 41,088 34,073 25,027 (58,719 ) 41,469 Comprehensive income attributable to noncontrolling interests — — 381 — 381 Comprehensive income attributable to Caleres, Inc. $ 41,088 $ 34,073 $ 24,646 $ (58,719 ) $ 41,088 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE FISCAL YEAR ENDED JANUARY 28, 2017 Non-Guarantors ($ thousands) Parent Guarantors Eliminations Total Net cash provided by operating activities $ 66,800 $ 71,781 $ 45,041 $ — $ 183,622 Investing activities Purchases of property and equipment (4,769 ) (41,606 ) (4,148 ) — (50,523 ) Capitalized software (5,521 ) (3,481 ) (37 ) — (9,039 ) Acquisition cost, net of cash received (259,932 ) — — — (259,932 ) Intercompany investing (3,257 ) 3,257 — — — Net cash used for investing activities (273,479 ) (41,830 ) (4,185 ) — (319,494 ) Financing activities Borrowings under revolving credit agreement 623,000 — — — 623,000 Repayments under revolving credit agreement (513,000 ) — — — (513,000 ) Dividends paid (12,104 ) — — — (12,104 ) Acquisition of treasury stock (23,139 ) — — — (23,139 ) Issuance of common stock under share-based plans, net (4,188 ) — — — (4,188 ) Excess tax benefit related to share-based plans 2,251 — — — 2,251 Intercompany financing 126,858 (20,922 ) (105,936 ) — — Net cash provided by (used for) financing activities 199,678 (20,922 ) (105,936 ) — 72,820 Effect of exchange rate changes on cash and cash equivalents — — 233 — 233 (Decrease) increase in cash and cash equivalents (7,001 ) 9,029 (64,847 ) — (62,819 ) Cash and cash equivalents at beginning of year 31,000 — 87,151 — 118,151 Cash and cash equivalents at end of year $ 23,999 $ 9,029 $ 22,304 — $ 55,332 CONDENSED CONSOLIDATING STATEMENT OF EARNINGS FOR THE FISCAL YEAR ENDED JANUARY 30, 2016 Non-Guarantors ($ thousands) Parent Guarantors Eliminations Total Net sales $ 819,148 $ 1,652,444 $ 268,779 $ (162,941 ) $ 2,577,430 Cost of goods sold 591,539 905,412 162,384 (129,708 ) 1,529,627 Gross profit 227,609 747,032 106,395 (33,233 ) 1,047,803 Selling and administrative expenses 235,210 649,020 61,699 (33,233 ) 912,696 Operating (loss) earnings (7,601 ) 98,012 44,696 — 135,107 Interest expense (16,588 ) (1 ) — — (16,589 ) Loss on early extinguishment of debt (10,651 ) — — — (10,651 ) Interest income 695 — 204 — 899 Intercompany interest income (expense) 14,363 (14,581 ) 218 — — (Loss) earnings before income taxes (19,782 ) 83,430 45,118 — 108,766 Income tax benefit (provision) 8,755 (29,475 ) (6,222 ) — (26,942 ) Equity in earnings (loss) of subsidiaries, net of tax 92,506 — (616 ) (91,890 ) — Net earnings 81,479 53,955 38,280 (91,890 ) 81,824 Less: Net earnings attributable to noncontrolling interests — — 345 — 345 Net earnings attributable to Caleres, Inc. $ 81,479 $ 53,955 $ 37,935 $ (91,890 ) $ 81,479 CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME FOR THE FISCAL YEAR ENDED JANUARY 30, 2016 Non-Guarantors ($ thousands) Parent Guarantors Eliminations Total Net earnings $ 81,479 $ 53,955 $ 38,280 $ (91,890 ) $ 81,824 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment — — (224 ) — (224 ) Pension and other postretirement benefits adjustments (8,838 ) — 249 — (8,589 ) Derivative financial instruments 628 — (460 ) — 168 Other comprehensive loss from investment in subsidiaries (366 ) — — 366 — Other comprehensive loss, net of tax (8,576 ) — (435 ) 366 (8,645 ) Comprehensive income 72,903 53,955 37,845 (91,524 ) 73,179 Comprehensive income attributable to noncontrolling interests — — 276 — 276 Comprehensive income attributable to Caleres, Inc. $ 72,903 $ 53,955 $ 37,569 $ (91,524 ) $ 72,903 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE FISCAL YEAR ENDED JANUARY 30, 2016 Non-Guarantors ($ thousands) Parent Guarantors Eliminations Total Net cash (used for) provided by operating activities $ (1,259 ) $ 99,222 $ 51,189 $ — $ 149,152 Investing activities Purchases of property and equipment (14,585 ) (56,382 ) (2,512 ) — (73,479 ) Proceeds from disposal of property and equipment 7,111 — 322 — 7,433 Capitalized software (5,197 ) (2,538 ) — — (7,735 ) Intercompany investing (568 ) 568 — — — Net cash used for investing activities (13,239 ) (58,352 ) (2,190 ) — (73,781 ) Financing activities Borrowings under revolving credit agreement 198,000 — — — 198,000 Repayments under revolving credit agreement (198,000 ) — — — (198,000 ) Proceeds from issuance of 2023 senior notes 200,000 — — — 200,000 Redemption of 2019 senior notes (200,000 ) — — — (200,000 ) Dividends paid (12,253 ) — — — (12,253 ) Debt issuance costs (3,650 ) — — — (3,650 ) Acquisition of treasury stock (4,921 ) — — — (4,921 ) Issuance of common stock under share-based plans, net (5,297 ) — — — (5,297 ) Excess tax benefit related to share-based plans 2,651 — — — 2,651 Intercompany financing 55,077 (40,870 ) (14,207 ) — — Net cash provided by (used for) financing activities 31,607 (40,870 ) (14,207 ) — (23,470 ) Effect of exchange rate changes on cash and cash equivalents — — (1,153 ) — (1,153 ) Increase in cash and cash equivalents 17,109 — 33,639 — 50,748 Cash and cash equivalents at beginning of year 13,891 — 53,512 — 67,403 Cash and cash equivalents at end of year $ 31,000 $ — $ 87,151 $ — $ 118,151 |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Feb. 03, 2018 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data | QUARTERLY FINANCIAL DATA (Unaudited) Quarterly financial results (unaudited) for 2017 and 2016 are as follows: Quarters First Quarter Second Quarter Third Quarter Fourth Quarter ($ thousands, except per share amounts) (13 weeks) (13 weeks) (13 weeks) (14 Weeks) 2017 Net sales $ 631,509 $ 676,954 $ 774,656 $ 702,465 Gross profit 270,908 287,461 316,885 293,395 Net earnings (1) 14,884 17,674 34,373 20,301 Net earnings attributable to Caleres, Inc. (1) 14,902 17,595 34,387 20,316 Per share of common stock: Basic earnings per common share attributable to Caleres, Inc. shareholders (2) 0.35 0.41 0.80 0.47 Diluted earnings per common share attributable to Caleres, Inc. shareholders (2) 0.35 0.41 0.80 0.47 Dividends paid 0.07 0.07 0.07 0.07 Market value: High 32.83 29.11 31.27 34.34 Low 24.86 24.45 22.39 26.54 (1) The first and second quarters of 2017 reflect the impact of amortization of the inventory fair value adjustment required for purchase accounting of $1.9 million and $1.1 million , respectively, on an after-tax basis, as further described in Note 2 to the consolidated financial statements and several restructuring and other charges totaling $0.7 million and $1.9 million , respectively, on an after-tax basis, as further described in Note 4 to the consolidated financial statements. The fourth quarter of 2017 reflects restructuring charges totaling $0.6 million , on an after-tax basis, as further described in Note 4 to the consolidated financial statements and the benefit of income tax reform of $0.3 million , as further described in Note 6 to the consolidated financial statements. (2) EPS for the quarters may not sum to the annual amount as each period is computed on a discrete period basis. Quarters First Quarter Second Quarter Third Quarter Fourth Quarter ($ thousands, except per share amounts) (13 weeks) (13 weeks) (13 weeks) (13 Weeks) 2016 Net sales $ 584,733 $ 622,937 $ 732,230 $ 639,488 Gross profit 247,793 259,555 293,771 260,872 Net earnings (loss) (1) 17,878 19,679 34,726 (6,196 ) Net earnings (loss) attributable to Caleres, Inc. (1) 17,782 19,768 34,730 (6,622 ) Per share of common stock: Basic earnings (loss) per common share attributable to Caleres, Inc. shareholders (2) 0.41 0.46 0.81 (0.16 ) Diluted earnings (loss) per common share attributable to Caleres, Inc. shareholders (2) 0.41 0.46 0.81 (0.16 ) Dividends paid 0.07 0.07 0.07 0.07 Market value: High 29.49 27.30 26.90 36.61 Low 23.89 21.27 23.12 24.14 (1) The fourth quarter of 2016 reflects the impact of several restructuring and other charges totaling $20.2 million on an after-tax basis, as further described in Note 4 to the consolidated financial statements. (2) EPS for the quarters may not sum to the annual amount as each period is computed on a discrete period basis. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Feb. 03, 2018 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts | SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS Col. A Col. B Col. C Col. D Col. E Additions Balance at Beginning of Period Charged to Costs and Expenses Charged to Other Accounts - Describe Deductions - Describe Balance at End of Period Description ($ thousands) YEAR ENDED FEBRUARY 3, 2018 Deducted from assets or accounts: Doubtful accounts and allowances $ 1,567 $ 1,336 $ — $ 858 (A) $ 2,045 Customer allowances 20,923 51,135 — 47,756 (B) 24,302 Customer discounts 1,162 4,804 — 5,215 (B) 751 Inventory valuation allowances 14,229 47,084 — 47,059 (C) 14,254 Deferred tax asset valuation allowance 7,890 — — 2,127 (D) 5,763 YEAR ENDED JANUARY 28, 2017 Deducted from assets or accounts: Doubtful accounts and allowances $ 2,295 $ 1,384 $ 70 (E) $ 2,182 (A) $ 1,567 Customer allowances 21,590 45,186 — 45,853 (B) 20,923 Customer discounts 895 3,573 — 3,306 (B) 1,162 Inventory valuation allowances 15,780 52,041 2,225 (E) 55,817 (C) 14,229 Deferred tax asset valuation allowance 6,544 3,697 450 (E) 2,801 (D) 7,890 YEAR ENDED JANUARY 30, 2016 Deducted from assets or accounts: Doubtful accounts and allowances $ 2,235 $ 480 $ — $ 420 (A) $ 2,295 Customer allowances 21,906 47,435 — 47,751 (B) 21,590 Customer discounts 1,252 2,624 — 2,981 (B) 895 Inventory valuation allowances 16,051 55,126 — 55,397 (C) 15,780 Deferred tax asset valuation allowance 11,514 670 — 5,640 (D) 6,544 (A) Accounts written off, net of recoveries. (B) Discounts and allowances granted to wholesale customers of the Brand Portfolio segment. (C) Adjustment upon disposal of related inventories. (D) Reductions to the valuation allowances for the net operating loss carryforwards for certain states based on the Company’s expectations for utilization of net operating loss carryforwards. In addition, in 2017, the valuation allowances related to the impairment of the investment in a nonconsolidated affiliate and capital loss carryforwards were reduced, reflecting the impact of the Tax Cuts and Jobs Act. (E) Established through purchase accounting related to the Allen Edmonds acquisition. |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Feb. 03, 2018 | |
Accounting Policies [Abstract] | |
Organization | Organization Caleres, Inc., originally founded as Brown Shoe Company in 1878 and incorporated in 1913, is a global footwear retailer and wholesaler. In May 2015, the shareholders of Brown Shoe Company, Inc. approved a rebranding initiative that changed the name of the company to Caleres, Inc. (the "Company"). The Company’s shares are traded under the “CAL” symbol on the New York Stock Exchange. The Company provides a broad offering of licensed, branded and private-label casual, dress and athletic footwear products to women, men and children. Footwear is sold at a variety of price points through multiple distribution channels both domestically and internationally. The Company currently operates 1,262 retail shoe stores in the United States, Canada, Guam and Italy, primarily under the Famous Footwear, Naturalizer and Allen Edmonds names. In addition, through its Brand Portfolio segment, the Company designs, sources and markets footwear to retail stores domestically and internationally, including national chains, online retailers, department stores, mass merchandisers, independent retailers and catalogs. In 2017 , approximately 69% of the Company’s net sales were at retail, compared to 67% in 2016 and 66% in 2015 . Refer to Note 7 to the consolidated financial statements for additional information regarding the Company’s business segments. The Company’s business is seasonal in nature due to consumer spending patterns with higher back-to-school and holiday season sales. Traditionally, the third fiscal quarter accounts for a substantial portion of the Company’s earnings for the year. |
Consolidation | Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned and majority-owned subsidiaries, after the elimination of intercompany accounts and transactions. |
Noncontrolling Interests | Noncontrolling Interests Noncontrolling interests in the Company’s consolidated financial statements result from the accounting for noncontrolling interests in partially-owned consolidated subsidiaries or affiliates. The Company consolidates B&H Footwear Company Limited (“B&H Footwear”), a joint venture, into its consolidated financial statements. Net earnings attributable to noncontrolling interests represent the share of net earnings that are attributable to the B&H Footwear equity. Transactions between the Company and B&H Footwear have been eliminated in the consolidated financial statements. As further discussed in Note 17 to the consolidated financial statements, in 2016, the Company communicated its intention to dissolve the joint venture upon the expiration of the joint venture agreement in August 2017. The parties are in the process of dissolving their joint venture arrangements. |
Accounting Period | Accounting Period The Company’s fiscal year is the 52- or 53-week period ending the Saturday nearest to January 31. Fiscal year 2017 , which included 53 weeks, ended on February 3, 2018 . Fiscal years 2016 and 2015 , both of which included 52 weeks, ended on January 28, 2017 and January 30, 2016 , respectively. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. |
Receivables | Receivables The Company evaluates the collectibility of selected accounts receivable on a case-by-case basis and makes adjustments to the bad debt reserve for expected losses. The Company considers factors such as ability to pay, bankruptcy, credit ratings and payment history. For all other accounts, the Company estimates reserves for bad debts based on experience and past due status of the accounts. If circumstances related to customers change, estimates of recoverability are further adjusted. The Company recognized a provision for doubtful accounts of $1.3 million in 2017 , $1.4 million in 2016 and $0.5 million in 2015 . Customer allowances represent reserves against our wholesale customers’ accounts receivable for margin assistance, product returns, customer deductions and co-op advertising allowances. The Company estimates the reserves needed for margin assistance by reviewing inventory levels on the retail floors, sell-through rates, historical dilution, current gross margin levels and other performance indicators of our major retail customers. Product returns and customer deductions are estimated using historical experience and anticipated future trends. Co-op advertising allowances are estimated based on customer agreements. The Company recognized a provision for customer allowances of $51.1 million in 2017 , $45.2 million in 2016 and $47.4 million in 2015 . Customer discounts represent reserves against our accounts receivable for discounts that our wholesale customers may take based on meeting certain order, payment or return guidelines. The Company estimates the reserves needed for customer discounts based upon customer net sales and respective agreement terms. The Company recognized a provision for customer discounts of $4.8 million in 2017 , $3.6 million in 2016 and $2.6 million in 2015 . |
Inventories | Inventories All inventories are valued at the lower of cost and net realizable value with approximately 85% of consolidated inventories using the last-in, first-out (“LIFO”) method. An actual valuation of inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations are based on management’s estimates of expected year-end inventory levels and costs and are subject to the final year-end LIFO inventory valuation. If the first-in, first-out (“FIFO”) method had been used, consolidated inventories would have been $4.0 million and $4.3 million higher at February 3, 2018 and January 28, 2017 , respectively. Refer to Note 8 to the consolidated financial statements for further discussion. The costs of inventory, inbound freight and duties, markdowns, shrinkage and royalty expense are classified in cost of goods sold. Costs of warehousing and distribution are classified in selling and administrative expenses and are expensed as incurred. Such warehousing and distribution costs totaled $89.7 million , $77.7 million and $70.4 million in 2017 , 2016 and 2015 , respectively. Costs of overseas sourcing offices and other inventory procurement costs are reflected in selling and administrative expenses and are expensed as incurred. Such sourcing and procurement costs totaled $23.1 million , $21.5 million and $23.9 million in 2017 , 2016 and 2015 , respectively. The Company applies judgment in valuing inventories by assessing the net realizable value of inventories based on current selling prices. At the Famous Footwear segment and certain Brand Portfolio retail operations, markdowns are recognized when it becomes evident that inventory items will be sold at retail prices less than cost, plus the cost to sell the product. This policy causes the gross profit rates at Famous Footwear and, to a lesser extent, Brand Portfolio to be lower than the initial markup during periods when permanent price reductions are taken to clear product. Within the Brand Portfolio segment, markdown reserves generally reduce the carrying values of inventories to a level where, upon sale of the product, the Company will realize its normal gross profit rate. The Company believes these policies reflect the difference in operating models between the Famous Footwear and Brand Portfolio segments. Famous Footwear periodically runs promotional events to drive sales to clear seasonal inventories. The Brand Portfolio segment relies on permanent price reductions to clear slower-moving inventory. Markdowns are recorded to reflect expected adjustments to sales prices. In determining markdowns, management considers current and recently recorded sales prices, the length of time the product is held in inventory and quantities of various product styles contained in inventory, among other factors. The ultimate amount realized from the sale of certain products could differ from management estimates. The Company performs physical inventory counts or cycle counts on all merchandise inventory on hand throughout the year and adjusts the recorded balance to reflect the results. The Company records estimated shrinkage between physical inventory counts based on historical results. |
Computer Software Costs | Computer Software Costs The Company capitalizes certain costs in other assets, including internal payroll costs incurred in connection with the development or acquisition of software for internal use. Other assets on the consolidated balance sheets include $22.3 million and $30.0 million of computer software costs as of February 3, 2018 and January 28, 2017 , respectively, which are net of accumulated amortization of $123.0 million and $111.7 million as of the end of the respective periods. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. Depreciation of property and equipment is provided over the estimated useful lives of the assets or the remaining lease terms, where applicable, using the straight-line method. |
Interest Expense | Interest Expense Capitalized Interest Interest costs for major asset additions are capitalized during the construction or development period and amortized over the lives of the related assets. The Company capitalized interest of $1.4 million and $0.3 million in 2016 and 2015 , respectively, related to its expansion and modernization project at its Lebanon, Tennessee distribution center, with no corresponding interest capitalized in 2017. Interest Expense Interest expense includes interest for borrowings under both the Company’s short-term and long-term debt, net of amounts capitalized. Interest expense includes fees paid under the short-term revolving credit agreement for the unused portion of its line of credit. Interest expense also includes the amortization of deferred debt issuance costs and debt discount as well as the accretion of certain discounted noncurrent liabilities. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill and intangible assets deemed to have indefinite lives are not amortized but are subject to annual impairment tests. The Company adopted the provisions of Accounting Standards Codification (“ASC”), Intangibles-Goodwill and Other (ASC Topic 350) Testing Goodwill for Impairment , which permits, but does not require, a company to qualitatively assess indicators of a reporting unit’s fair value when it is unlikely that a reporting unit is impaired. If, after completing the qualitative assessment, a company believes it is likely that a reporting unit is impaired, a discounted cash flow analysis is prepared to estimate fair value. A fair value-based test is applied at the reporting unit level, which is generally at or one level below the operating segment level. The test compares the fair value of the Company’s reporting units to the carrying value of those reporting units. This test requires significant assumptions, estimates and judgments by management, and is subject to inherent uncertainties and subjectivity. The fair value of the reporting unit is determined using an estimate of future cash flows of the reporting unit and a risk-adjusted discount rate to compute a net present value of future cash flows. Projected net sales, gross profit, selling and administrative expense, capital expenditures and working capital requirements are based on the Company's internal projections. Discount rates reflect market-based estimates of the risks associated with the projected cash flows of the reporting units directly resulting from the use of its assets in its operations. Assumptions that market participants may use are also considered. The estimate of the fair values of the Company's reporting units is based on the best information available to the Company's management as of the date of the assessment. As further discussed below, during the third quarter of 2017, the Company adopted ASU 2017-04, Simplifying the Test for Goodwill Impairment, which eliminates the requirement to calculate the implied fair value of goodwill. Goodwill impairment is recorded if the fair value of the tangible and intangible assets exceeds the fair value of the reporting unit, not to exceed the carrying value of goodwill. As a result of the acquisition of Allen Edmonds in 2016 , the Company performed a quantitative assessment for the goodwill impairment test as of the first day of the fourth quarter of 2017 . Based on the results of the most recent goodwill impairment quantitative assessment, the Company determined that the fair values of the reporting units exceeded the carrying values. The Company performs impairment tests on its indefinite-lived intangible assets as of the first day of the fourth quarter of each fiscal year unless events indicate an interim test is required. The indefinite-lived intangible asset impairment reviews performed as of the first day of the Company’s fourth fiscal quarter resulted in no impairment charges. Definite-lived intangible assets, other than goodwill, are amortized over their useful lives and are reviewed for impairment if and when impairment indicators are present. |
Investment in Nonconsolidated Affiliate | Investment in Nonconsolidated Affiliate The Company has an investment in a nonconsolidated affiliate that is accounted for using the cost method. The investment's carrying value of $7.0 million was included in other assets on the consolidated balance sheets. During 2016, the Company determined that the investment had an other-than-temporary decline in its fair value that exceeded its carrying value and recorded an impairment charge of $7.0 million , which is presented in restructuring and other special charges, net in the consolidated statements of earnings in 2016. |
Self Insurance Reserve | Self-Insurance Reserves The Company is self-insured and/or retains high deductibles for a significant portion of its workers’ compensation, health, disability, cyber risk, general liability, automobile and property programs, among others. Liabilities associated with the risks that are retained by the Company are estimated by considering historical claims experience, trends of the Company and the industry and other actuarial assumptions. The estimated accruals for these liabilities could be affected if development of costs on claims differ from these assumptions and historical trends. Based on available information as of February 3, 2018 , the Company believes it has provided adequate reserves for its self-insurance exposure. As of February 3, 2018 and January 28, 2017 , self-insurance reserves were $11.0 million and $10.4 million , respectively. |
Revenue Recognition | Revenue Recognition Retail sales, recognized at the point of sale, are recorded net of returns and exclude sales tax. Wholesale sales are recorded, net of returns, allowances and discounts, generally when the merchandise has been shipped and title and risk of loss have passed to the customer. Revenue for products sold that are shipped directly to an individual consumer is recognized upon delivery to the consumer. Reserves for projected merchandise returns, discounts and allowances are determined based on historical experience and current expectations. Revenue is recognized on license fees related to Company-owned brand-names, where the Company is the licensor, when the related sales of the licensee are made. As further discussed below, the Company will adopt ASC 606, Revenue with Contracts from Customers , in the first quarter of 2018, which will change how revenue is recognized for certain aspects of the Company's business. |
Gift Cards | Gift Cards The Company sells gift cards to its consumers in its retail stores, through its Internet sites and at other retailers. The Company’s gift cards do not have expiration dates or inactivity fees. The Company recognizes revenue from gift cards when (i) the gift card is redeemed by the consumer or (ii) the likelihood of the gift card being redeemed by the consumer is remote (“gift card breakage”) and the Company determines that it does not have a legal obligation to remit the value of unredeemed gift cards to the relevant jurisdictions. The Company determines its gift card breakage rate based upon historical redemption patterns. The Company recognizes gift card breakage during the 24-month period following the sale of the gift card, according to the Company’s historical redemption pattern. Gift card breakage income is included in net sales in the consolidated statements of earnings and the liability established upon the sale of a gift card is included in other accrued expenses within the consolidated balance sheets. The Company recognized $1.7 million of gift card breakage in 2017 and $0.7 million in 2016 and 2015 . |
Loyalty Program | Loyalty Program The Company maintains a loyalty program (“Rewards”) at Famous Footwear, through which consumers earn points toward savings certificates for qualifying purchases. Upon reaching specified point values, consumers are issued a savings certificate that may be redeemed for purchases at Famous Footwear. Savings certificates earned must be redeemed within stated expiration dates. In addition to the savings certificates, the Company also offers exclusive member discounts. The value of points and rewards earned by Famous Footwear’s Rewards program members are recorded as a reduction of net sales and a liability is established within other accrued expenses at the time the points are earned based on historical conversion and redemption rates. Approximately 75% of net sales in the Famous Footwear segment were made to its Rewards members in both 2017 and 2016, compared to 74% in 2015 . As of February 3, 2018 and January 28, 2017 , the Company had a Rewards program liability of $8.1 million and $7.6 million , respectively, which is included in other accrued expenses on the consolidated balance sheets. As further discussed below, the adoption of ASC 606 in the first quarter of 2018 will have a material impact on the Rewards program liability. |
Store Closing and Impairment Charges | Store Closing and Impairment Charges The costs of closing stores, including lease termination costs, property and equipment write-offs and severance, as applicable, are recorded when the store is closed or when a binding agreement is reached with the landlord to close the store. The Company regularly analyzes the results of all of its stores and assesses the viability of underperforming stores to determine whether events or circumstances exist that indicate the stores should be closed or whether the carrying amount of their long-lived assets may not be recoverable. After allowing for an appropriate start-up period, unusual nonrecurring events or favorable trends, property and equipment at stores indicated as impaired are written down to fair value as calculated using a discounted cash flow method. The Company recorded asset impairment charges, primarily related to underperforming retail stores, of $3.8 million in 2017 , $1.6 million in 2016 and $2.8 million in 2015 . |
Advertising and Marketing Expense | Advertising and Marketing Expense Advertising and marketing costs are expensed as incurred, except for the costs of direct response advertising that relate primarily to the production and distribution of the Company's catalogs and coupon mailers. Direct response advertising costs are capitalized and amortized over the expected future revenue stream, which is generally one to three months from the date the materials are mailed. External production costs of advertising are expensed when the advertising first appears in the media or in the store. In addition, the Company participates in co-op advertising programs with certain of its wholesale customers. For those co-op advertising programs where the Company has validated the fair value of the advertising received, co-op advertising costs are reflected as advertising expense within selling and administrative expenses. Otherwise, co-op advertising costs are reflected as a reduction of net sales. Total advertising and marketing expense was $83.6 million , $78.8 million and $78.4 million in 2017 , 2016 and 2015 , respectively. These costs were offset by co-op advertising allowances recovered by the Company’s retail business of $4.8 million , $4.1 million and $6.5 million in 2017 , 2016 and 2015 , respectively. Total co-op advertising costs reflected as a reduction of net sales were $10.0 million in 2017 , $8.4 million in 2016 and $9.7 million in 2015 . Total advertising costs attributable to future periods that are deferred and recognized as a component of prepaid expenses and other current assets were $4.0 million and $2.3 million at February 3, 2018 and January 28, 2017 , respectively. |
Income Taxes | Income Taxes The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the consolidated financial statement carrying amounts and the tax bases of its assets and liabilities. The Company establishes valuation allowances if it believes that it is more-likely-than-not that some or all of its deferred tax assets will not be realized. The Company does not recognize a tax benefit unless it concludes that it is more-likely-than-not that the benefit will be sustained on audit by the taxing authority based solely on the technical merits of the associated tax position. If the recognition threshold is met, the Company recognizes a tax benefit measured at the largest amount of the tax benefit that, in its judgment, is greater than 50% likely to be realized. The Company records interest and penalties related to unrecognized tax positions within the income tax provision on the consolidated statements of earnings. As further discussed in Note 6 to the consolidated financial statements, on December 22, 2017 , the Tax Cuts and Jobs Act was signed into law, making significant changes to the U.S. Internal Revenue Code. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective January 1, 2018 , the transition of U.S. international taxation from a worldwide tax system to a quasi-territorial tax system and a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings. |
Operating Leases | Operating Leases The Company leases its store premises and certain office locations, distribution centers and equipment under operating leases. Approximately one-half of the leases entered into by the Company include options that allow the Company to extend the lease term beyond the initial commitment period, subject to terms agreed to at lease inception. Some leases also include early termination options that can be exercised under specific conditions. Contingent Rentals Many of the leases covering retail stores require contingent rentals in addition to the minimum monthly rental charge based on retail sales volume. The Company records expense for contingent rentals during the period in which the retail sales volume exceeds the respective targets. Construction Allowances Received From Landlords At the time its retail facilities are initially leased, the Company often receives consideration from landlords to be applied against the cost of leasehold improvements necessary to open the store. The Company treats these construction allowances as a lease incentive. The allowances are recorded as a deferred rent obligation and amortized to income over the lease term as a reduction of rent expense. The allowances are reflected as a component of other accrued expenses and deferred rent on the consolidated balance sheets. Straight-Line Rents and Rent Holidays The Company records rent expense on a straight-line basis over the lease term for all of its leased facilities. For leases that have predetermined fixed escalations of the minimum rentals, the Company recognizes the related rental expense on a straight-line basis and records the difference between the recognized rental expense and amounts payable under the lease as deferred rent. At the time its retail facilities are leased, the Company is frequently not charged rent for a specified period of time, typically 30 to 60 days, while the store is being prepared for opening. This rent-free period is referred to as a rent holiday. The Company recognizes rent expense over the lease term, including any rent holiday, within selling and administrative expenses on the consolidated statements of earnings. Pre-opening Costs Pre-opening costs associated with opening retail stores, including payroll, supplies and facility costs, are expensed as incurred. |
Earnings Per Common Share Attributable to Caleres, Inc. Shareholders | Earnings Per Common Share Attributable to Caleres, Inc. Shareholders The Company uses the two-class method to calculate basic and diluted earnings per common share attributable to Caleres, Inc. shareholders. Unvested restricted stock awards are considered participating units because they entitle holders to non-forfeitable rights to dividends or dividend equivalents during the vesting term. Under the two-class method, basic earnings per common share attributable to Caleres, Inc. shareholders is computed by dividing the net earnings attributable to Caleres, Inc. after allocation of earnings to participating securities by the weighted-average number of common shares outstanding during the year. Diluted earnings per common share attributable to Caleres, Inc. shareholders is computed by dividing the net earnings attributable to Caleres, Inc. after allocation of earnings to participating securities by the weighted-average number of common shares and potential dilutive securities outstanding during the year. Potential dilutive securities consist of outstanding stock options and contingently issuable shares for the Company's performance share awards. Refer to Note 3 to the consolidated financial statements for additional information related to the calculation of earnings per common share attributable to Caleres, Inc. shareholders. |
Comprehensive Income | Comprehensive Income Comprehensive income includes the effect of foreign currency translation adjustments, pension and other postretirement benefits adjustments and unrealized gains or losses from derivatives used for hedging activities. Foreign Currency Translation Adjustment For certain of the Company’s international subsidiaries, the local currency is the functional currency. Assets and liabilities of these subsidiaries are translated into United States dollars at the period-end exchange rate or historical rates as appropriate. Consolidated statements of earnings amounts are translated at average exchange rates for the period. The cumulative translation adjustments resulting from changes in exchange rates are included in the consolidated balance sheets as a component of accumulated other comprehensive loss in total Caleres, Inc. shareholders’ equity. Transaction gains and losses are included in the consolidated statements of earnings. Pension and Other Postretirement Benefits Adjustments The Company determines the expense and obligations for retirement and other benefit plans using assumptions related to discount rates, expected long-term rates of return on invested plan assets, expected salary increases and certain employee-related factors. The Company determines the fair value of plan assets and benefit obligations as of the January 31 measurement date. The unrecognized portion of the gain or loss on plan assets is included in the consolidated balance sheets as a component of accumulated other comprehensive loss in total Caleres, Inc. shareholders’ equity and is recognized into the plans’ expense over time. Refer to additional information related to pension and other postretirement benefits in Note 5 and Note 15 to the consolidated financial statements. Derivative Financial Instruments The Company recognizes all derivative financial instruments as either assets or liabilities in the consolidated balance sheets and measures those instruments at fair value. The Company evaluates its exposure to volatility in foreign currency rates and may enter into derivative transactions. These derivative financial instruments are viewed as risk management tools and are not used for trading or speculative purposes. Refer to additional information related to derivative financial instruments in Note 13, Note 14 and Note 15 to the consolidated financial statements. |
Litigation Contingencies | Litigation Contingencies The Company is the defendant in several claims and lawsuits arising in the ordinary course of business. The Company believes any of these ordinary- course-of-business proceedings will not have a material adverse effect on the consolidated financial position or results of operations. The Company accrues its best estimate of the cost of resolution of these claims. Legal defense costs of such claims are recognized in the period in which the costs are incurred. Refer to Note 18 to the consolidated financial statements for a further description of commitments and contingencies. |
Environmental Matters | Environmental Matters The Company is involved in environmental remediation and ongoing compliance activities at several sites. The Company is remediating, under the oversight of Colorado authorities, the groundwater and indoor air at its owned facility and residential neighborhoods adjacent to and near the property, which have been affected by solvents previously used at the facility. In addition, various federal and state authorities have identified the Company as a potentially responsible party for remediation at certain other sites. The Company's prior operations included numerous manufacturing and other facilities for which the Company may have responsibility under various environmental laws to address conditions that may be identified in the future. Refer to Note 18 to the consolidated financial statements for a further description of specific properties. Environmental expenditures relating to an existing condition caused by past operations and that do not contribute to current or future revenue generation are expensed. Liabilities are recorded when environmental assessments and/or remedial efforts are probable and the costs can be reasonably estimated and are evaluated independently of any future claims recovery. Generally, the timing of these accruals coincides with completion of a feasibility study or our commitment to a formal plan of action, and our estimates of cost are subject to change as new information becomes available. Costs of future expenditures for environmental remediation obligations are discounted to their present value in those situations requiring only continuing maintenance and monitoring based upon a schedule of fixed payments. |
Business Combination Accounting | Business Combination Accounting The Company allocates the purchase price of an acquired entity to the assets and liabilities acquired based upon their estimated fair values at the business combination date. The Company also identifies and estimates the fair values of intangible assets that should be recognized as assets apart from goodwill. A single estimate of fair value results from a complex series of judgments about future events and uncertainties and relies heavily on estimates and assumptions. The Company typically engages third-party valuation specialists to assist in the estimation of fair values for intangible assets other than goodwill, inventory and fixed assets. The carrying values of acquired receivables and trade accounts payable have historically approximated their fair values at the business combination date. With respect to other acquired assets and liabilities, the Company uses all available information to make the best estimates of their fair values at the business combination date. The Company’s purchase price allocation methodology contains uncertainties because it requires management to make assumptions and to apply judgment to estimate the fair value of the acquired assets and liabilities. Management estimates the fair value of assets and liabilities based upon quoted market prices, the carrying value of the acquired assets and widely accepted valuation techniques, including discounted cash flows. Unanticipated events or circumstances may occur which could affect the accuracy of the Company’s estimates, including assumptions regarding industry economic factors and business strategies. |
Share-based Compensation | Share-Based Compensation The Company has share-based incentive compensation plans under which certain officers, employees and members of the Board of Directors are participants and may be granted restricted stock, stock performance awards and stock options. Additionally, share-based grants may be made to non-employee members of the Board of Directors in the form of restricted stock units (“RSUs”) payable in cash or the Company's common stock at no cost to the non-employee member of the Board of Directors. The Company accounts for share-based compensation in accordance with the fair value recognition provisions of ASC 718, Compensation – Stock Compensation , and ASC 505, Equity , which require all share-based payments to employees and members of the Board of Directors, including grants of employee stock options, to be recognized as expense in the consolidated financial statements based on their fair values. The fair value of stock options is estimated using the Black-Scholes option pricing formula that requires assumptions for expected volatility, expected dividends, the risk-free interest rate and the expected term of the option. Stock options generally vest over four years, with 25% vesting annually and expense is recognized on a straight-line basis separately for each vesting portion of the stock option award. Expense for restricted stock is based on the fair value of the restricted stock on the date of grant and is generally recognized on a straight-line basis over a four-year vesting period. Expense for stock performance awards is recognized based upon the fair value of the awards on the date of grant and the anticipated number of shares or units to be awarded on a straight-line basis over the respective term of the award, or individual vesting portion of an award. Expense for the initial grant of RSUs is recognized ratably over the one-year vesting period based upon the fair value of the RSUs, and for cash-equivalent RSUs, is remeasured at the end of each period. If any of the assumptions used in the Black-Scholes model or the anticipated number of shares to be awarded change significantly, share-based compensation expense may differ materially in the future from that recorded in the current period. Refer to additional information related to share-based compensation in Note 16 to the consolidated financial statements. |
Impact of New Accounting Pronouncements | Impact of Recently Adopted Accounting Pronouncements In July 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-11, Simplifying the Measurement of Inventory (Topic 330), which requires entities to measure inventory at "the lower of cost and net realizable value", simplifying the current guidance under which entities must measure inventory at the lower of cost or market. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Subsequent measurement is unchanged for inventory measured using the last-in, first-out (LIFO) method. The ASU is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2016. The Company adopted the ASU in the first quarter of 2017, which did not have a material impact on the consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting (Topic 718) , which simplifies accounting for certain aspects of share-based payments to employees, including income taxes, forfeitures and statutory income tax withholding requirements, as well as classification in the statement of cash flows. The Company adopted the ASU during the first quarter of 2017, which had the following impact to the consolidated financial statements: • The Company recognized excess tax benefits during 2017 of $1.3 million related to share-based plans, which are required to be recognized in the statements of earnings on a prospective basis. Prior to the adoption of the ASU, the excess tax benefit related to share-based plans was recorded in additional paid-in-capital. • The Company elected to adopt the provision of the ASU to account for forfeitures as they occur. This election was applied on a modified retrospective basis, resulting in a net increase to Caleres, Inc. shareholders' equity of $0.4 million . • The ASU requires cash flows from excess tax benefits related to share-based payments to be reported as operating activities in the consolidated statements of cash flows. The Company elected to adopt this provision on a prospective basis and as a result, the excess tax benefits related to share-based plans for 2016 and 2015 are presented as financing activities, while the benefit for 2017 is presented as an operating activity. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which simplifies the accounting for goodwill impairment by eliminating the requirement to calculate the implied fair value of goodwill. Under the ASU, goodwill impairment will be measured as the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying value of goodwill. The ASU is effective prospectively for annual and interim impairment tests beginning after December 15, 2019, with early adoption permitted. The Company adopted the ASU during the third quarter of 2017, which had no impact on the consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income , which contains amendments that allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. This ASU is effective for annual and interim periods in fiscal years beginning after December 15, 2018, with early adoption permitted. The Company adopted the ASU during the fourth quarter of 2017, which resulted in the reclassification of $5.7 million from accumulated other comprehensive loss to retained earnings. The reclassification was comprised of a $5.9 million unrealized gain on pension and other postretirement benefits and a $0.2 million unrealized loss on derivative financial instruments. Impact of Prospective Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , and subsequently issued ASU 2015-14 to defer the effective date. Several ASUs to clarify the implementation guidance in ASU 2014-09 have also been issued. Topic 606 provides a five-step analysis of transactions to determine when and how revenue is recognized, based upon the core principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also requires additional disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The ASUs are effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The Company will adopt the ASUs during the first quarter of 2018 using the modified retrospective method. The area most significantly impacted by the ASUs will be the value assigned to loyalty points issued under the Company's loyalty program for the Famous Footwear segment. The new standards will require a deferral of revenue associated with loyalty points using a relative stand-alone selling price method rather than the incremental cost approach the Company uses under the current standard. The standards allow entities to elect various practical expedients. The Company will elect the practical expedient to disregard the effect of the time value of money in a significant financing component when its payment terms are less than one year. The Company will also elect the practical expedient to exclude sales and similar taxes collected from consumers from the measurement of the transaction price for its retail sales. Although adoption of the ASUs will result in a significant initial adjustment to deferred revenue related to loyalty points and require certain changes in presentation to the Company's consolidated balance sheets, it is not anticipated to significantly impact the Company's consolidated statements of earnings on an ongoing basis. The cumulative effect adjustment upon adoption of the ASUs in the first quarter of 2018 is expected to decrease the opening balance of retained earnings by approximately $5 million . While we are substantially complete with quantifying the impact of adopting the ASUs, the Company's assessment will be finalized during the first quarter of 2018. The Company has also identified and implemented changes to its accounting policies and practices and accounting systems. In addition, specific controls over the evaluation of the impact of adoption of the ASUs have been designed and implemented, including, but not limited to, the calculation of the cumulative effect adjustment to retained earnings and disclosure requirements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize most leases on the balance sheet. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 using a modified retrospective approach, with early adoption permitted. The Company's implementation team is developing and executing the plan to adopt the ASU. The Company's accounting systems to comply with the requirements of the new standard have been upgraded and the Company is in the process of evaluating the impact of the standard on its leases and processes. The Company anticipates electing the package of practical expedients permitted within the ASU. Due to the large number of retail operating leases to which the Company is a party, the Company anticipates that the impact to its consolidated balance sheets upon adoption in the first quarter of 2019 will be material. The Company is still assessing the impact to the consolidated statements of earnings. As the impact of the ASU is non-cash in nature, the impact to the Company's consolidated statements of cash flows is not expected to be material. Adoption of the ASU is not expected to trigger non-compliance with any covenant or other restrictions under the provisions of any of the Company’s debt obligations. The Company is monitoring the proposed ASU, Targeted Improvements, Leases (ASC 842) that, if finalized as proposed, would provide an optional transition method that would allow the Company to only apply ASC 842 in the year of adoption and apply the legacy guidance in ASC 840, Leases , including its disclosure requirements, in the comparative periods. In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory , which requires the recognition of the income tax effects of intercompany sales and intra-entity transfers of assets, other than inventory, when the transfer occurs. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The ASU will be adopted during the first quarter of 2018 using a modified retrospective approach. The adoption will require the Company to reclassify to retained earnings the tax impacts of intra-entity transfers of intangible assets that occurred prior to adoption. As a result, the Company will record a $5.4 million reduction to an income tax asset and a $5.1 million increase to deferred tax liabilities, with a corresponding reduction in retained earnings of $10.5 million . In March 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The ASU amends ASC 715, Compensation — Retirement Benefits , to require employers that present a measure of operating income in their statements of earnings to include only the service cost component of net periodic pension cost and net periodic postretirement benefit cost in operating expenses (together with other employee compensation costs). The other components of net benefit cost, including amortization of prior service cost/credit, and settlement and curtailment effects, are to be included in non-operating expenses. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Upon adoption of the ASU during the first quarter of 2018, the Company will separately present the components of net periodic benefit cost or income, excluding the service cost component, in non-operating expenses on a retrospective basis. Net periodic benefit income, excluding the service cost component, was $12.3 million , $15.0 million and $19.0 million for 2017, 2016 and 2015, respectively. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities , which amends the hedge accounting model in ASC 815 to better portray the economic results of an entity's risk management activities in its financial statements and simplifies the application of hedge accounting in certain situations. The ASU eliminates the requirement to separately measure and report hedge ineffectiveness. ASU 2017-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The Company will adopt the ASU in the first quarter of 2018, which is not expected to have a material impact on the Company's consolidated financial statements. |
Acqusition (Tables)
Acqusition (Tables) | 12 Months Ended |
Feb. 03, 2018 | |
Business Combinations [Abstract] | |
Schedule of Allocation of Purchase Price | The Company allocated the purchase price as of the acquisition date, December 13, 2016 as follows: ($ thousands) December 13, 2016 ASSETS Current assets: Cash and cash equivalents $ 668 Receivables 6,273 Inventories 52,364 Prepaid expense and other current assets 2,353 Total current assets 61,658 Other assets 1,060 Goodwill 113,127 Intangible assets 102,920 Property and equipment 32,243 Total assets $ 311,008 LIABILITIES AND EQUITY Current liabilities: Trade accounts payable $ 12,256 Other accrued expenses 12,692 Total current liabilities 24,948 Deferred income taxes 25,109 Other liabilities 351 Total liabilities 50,408 Net assets $ 260,600 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Feb. 03, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted earnings per common share attributable to Caleres, Inc. shareholders: (in $ thousands, except per share amounts) 2017 2016 2015 NUMERATOR Net earnings $ 87,231 $ 66,086 $ 81,824 Net earnings attributable to noncontrolling interests (31 ) (428 ) (345 ) Net earnings allocated to participating securities (2,384 ) (1,750 ) (2,587 ) Net earnings attributable to Caleres, Inc. after allocation of earnings to participating securities $ 84,816 $ 63,908 $ 78,892 DENOMINATOR Denominator for basic earnings per common share attributable to Caleres, Inc. shareholders 41,801 42,026 42,455 Dilutive effect of share-based awards 179 155 201 Denominator for diluted earnings per common share attributable to Caleres, Inc. shareholders 41,980 42,181 42,656 Basic earnings per common share attributable to Caleres, Inc. shareholders $ 2.03 $ 1.52 $ 1.86 Diluted earnings per common share attributable to Caleres, Inc. shareholders $ 2.02 $ 1.52 $ 1.85 |
Retirement and Other Benefit 33
Retirement and Other Benefit Plans (Tables) | 12 Months Ended |
Feb. 03, 2018 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Changes in Benefit Obligations | The following table sets forth changes in benefit obligations, including all domestic and Canadian plans: Pension Benefits Other Postretirement Benefits ($ thousands) 2017 2016 2017 2016 Benefit obligation at beginning of year $ 340,278 $ 326,077 $ 1,666 $ 1,411 Service cost 9,705 8,288 — — Interest cost 14,948 15,275 68 76 Plan participants’ contribution 11 11 7 9 Plan amendments (2,985 ) 316 — — Actuarial loss 18,505 11,155 40 357 Benefits paid (13,703 ) (19,853 ) (187 ) (187 ) Settlement gain — (1,304 ) — — Contractual termination benefits — 77 — — Curtailments (10,534 ) — — — Foreign exchange rate changes 244 236 — — Benefit obligation at end of year $ 356,469 $ 340,278 $ 1,594 $ 1,666 |
Schedule of Assumptions Used | Weighted-average assumptions used to determine net periodic benefit income: Pension Benefits Other Postretirement Benefits 2017 2016 2015 2017 2016 2015 Discount rate 4.40 % 4.70 % 3.90 % 4.40 % 4.70 % 3.90 % Rate of compensation increase 3.00 % 3.00 % 3.00 % N/A N/A N/A Expected return on plan assets 8.00 % 8.00 % 8.25 % N/A N/A N/A Pension Benefits Other Postretirement Benefits Weighted–average assumptions used to determine benefit obligations, end of year 2017 2016 2017 2016 Discount rate 4.00 % 4.40 % 4.00 % 4.40 % Rate of compensation increase 3.00 % 3.00 % N/A N/A |
Schedule of Allocation of Plan Assets | The fair values of the Company’s pension plan assets at February 3, 2018 by asset category are as follows: Fair Value Measurements at February 3, 2018 ($ thousands) Total Level 1 Level 2 Level 3 Asset Cash and cash equivalents $ 8,998 $ 8,998 $ — $ — U.S. government securities 98,027 98,027 — — Mutual fund 41,344 41,344 — — Real estate investment trusts 1,412 1,412 — — Exchange-traded funds 68,362 68,362 — — Corporate stocks - common 175,928 175,928 — — Preferred securities 703 703 — — S&P 500 Index options (1,186 ) (1,186 ) — — Alternative investment fund 13,412 — 13,412 — Unallocated insurance contract 81 — — 81 Total $ 407,081 $ 393,588 $ 13,412 $ 81 The fair values of the Company’s pension plan assets at January 28, 2017 by asset category are as follows: Fair Value Measurements at January 28, 2017 ($ thousands) Total Level 1 Level 2 Level 3 Asset Cash and cash equivalents $ 16,484 $ 16,484 $ — $ — U.S. government securities 97,226 97,226 — — Mutual fund 34,833 34,833 — — Real estate investment trusts 1,505 1,505 — — Exchange-traded funds 62,244 62,244 — — Corporate stocks - common 141,372 141,372 — — Preferred securities 706 706 — — S&P 500 Index options 4,392 4,392 — — Interest rate swap agreements (8,997 ) — (8,997 ) — Alternative investment fund 12,101 — 12,101 — Unallocated insurance contract 90 — — 90 Total $ 361,956 $ 358,762 $ 3,104 $ 90 |
Schedule of Changes in Fair Value of Plan Assets | The following table sets forth changes in the fair value of plan assets, including all domestic and Canadian plans: Pension Benefits Other Postretirement Benefits ($ thousands) 2017 2016 2017 2016 Fair value of plan assets at beginning of year $ 361,956 $ 379,638 $ — $ — Actual return on plan assets 58,106 1,755 — — Employer contributions 450 1,458 180 178 Plan participants’ contributions 11 11 7 9 Benefits paid (13,703 ) (19,853 ) (187 ) (187 ) Settlement gain — (1,304 ) — — Foreign exchange rate changes 261 251 — — Fair value of plan assets at end of year $ 407,081 $ 361,956 $ — $ — |
Schedule of Amounts Recognized in Balance Sheet | Amounts recognized in the consolidated balance sheets consist of: Pension Benefits Other Postretirement Benefits ($ thousands) 2017 2016 2017 2016 Prepaid pension costs (noncurrent assets) $ 62,575 $ 32,489 $ — $ — Accrued benefit liabilities (current liability) (3,988 ) (2,765 ) (238 ) (250 ) Accrued benefit liabilities (noncurrent liability) (7,975 ) (8,043 ) (1,356 ) (1,416 ) Net amount recognized at end of year $ 50,612 $ 21,681 $ (1,594 ) $ (1,666 ) |
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets | The projected benefit obligation, the accumulated benefit obligation and the fair value of plan assets for pension plans with a projected benefit obligation in excess of plan assets and for pension plans with an accumulated benefit obligation in excess of plan assets, which includes only the Company’s SERP, were as follows: Projected Benefit Obligation Exceeds the Fair Value of Plan Assets Accumulated Benefit Obligation Exceeds the Fair Value of Plan Assets ($ thousands) 2017 2016 2017 2016 End of Year Projected benefit obligation $ 11,959 $ 10,808 $ 11,959 $ 10,808 Accumulated benefit obligation 10,956 9,646 10,956 9,646 Fair value of plan assets — — — — |
Schedule of Amounts Recognized in Consolidated Balance Sheet | The amounts in accumulated other comprehensive loss that have not yet been recognized as components of net periodic benefit income at February 3, 2018 and January 28, 2017 , and the expected amortization of the February 3, 2018 amounts as components of net periodic benefit income for fiscal year 2018 , are as follows: Pension Benefits Other Postretirement Benefits ($ thousands) 2017 2016 2017 2016 Components of accumulated other comprehensive loss, net of tax: Net actuarial loss (gain) $ 22,424 $ 35,104 $ (634 ) $ (635 ) Net prior service credit (4,618 ) (4,385 ) — — $ 17,806 $ 30,719 $ (634 ) $ (635 ) |
Schedule of Expected Amortization as Components of Net Periodic Benefit Income | Pension Benefits Other Postretirement Benefits ($ thousands) 2018 2018 Expected amortization, net of tax: Amortization of net actuarial loss (gain) $ 3,042 $ (92 ) Amortization of net prior service credit (1,164 ) — $ 1,878 $ (92 ) |
Schedule of Components of Net Periodic Benefit (Income) Cost | Net periodic benefit income for 2017 , 2016 and 2015 for all domestic and Canadian plans included the following components: Pension Benefits Other Postretirement Benefits ($ thousands) 2017 2016 2015 2017 2016 2015 Service cost $ 9,705 $ 8,288 $ 12,639 $ — $ — $ — Interest cost 14,948 15,275 14,321 68 76 56 Expected return on assets (27,589 ) (28,949 ) (31,682 ) — — — Amortization of: Actuarial loss (gain) 4,315 272 604 (145 ) (163 ) (220 ) Prior service credit (1,780 ) (1,840 ) (1,906 ) — — — Settlement cost — 259 — — — — Cost of contractual termination benefits — 77 — — — — Curtailments (2,165 ) — (184 ) — — — Total net periodic benefit income $ (2,566 ) $ (6,618 ) $ (6,208 ) $ (77 ) $ (87 ) $ (164 ) |
Schedule of Expected Cash Flows | Information about expected cash flows for all pension and postretirement benefit plans follows: Pension Benefits ($ thousands) Funded Plan SERP Total Other Postretirement Benefits Employer Contributions 2018 expected contributions to plan trusts $ 159 $ — $ 159 $ — 2018 expected contributions to plan participants — 4,063 4,063 243 2018 refund of assets (e.g. surplus) to employer 186 — 186 — Expected Benefit Payments 2018 $ 12,766 $ 4,063 $ 16,829 $ 243 2019 13,363 1,176 14,539 216 2020 14,131 3,079 17,210 192 2021 14,933 322 15,255 169 2022 15,638 656 16,294 148 2023 – 2027 86,432 1,817 88,249 481 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Feb. 03, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of the Components of Income Tax Provision (Benefit) | The components of income tax provision (benefit) on earnings were as follows: ($ thousands) 2017 2016 2015 Federal Current $ 31,102 $ 10,577 $ 9,530 Deferred (10,358 ) 14,164 11,202 20,744 24,741 20,732 State Current 7,691 3,844 497 Deferred 913 (1,157 ) 1,176 8,604 2,687 1,673 Foreign 6,127 3,740 4,537 Total income tax provision $ 35,475 $ 31,168 $ 26,942 |
Schedule of the Differences Between the Tax Provision Reflected in the Consolidated Financial Statements and the Amounts Calculated at the Federal Statutory Income Tax Rate | The differences between the income tax provision reflected in the consolidated financial statements and the amounts calculated at the federal statutory income tax rate were as follows: ($ thousands) 2017 2016 2015 Income taxes at statutory rate (1) $ 41,376 $ 34,039 $ 38,068 State income taxes, net of federal tax benefit 3,579 3,149 2,481 Foreign earnings taxed at lower rates (8,072 ) (8,404 ) (9,491 ) Excess tax benefit related to share-based plans (1,265 ) — — Tax Cuts and Jobs Act, net benefit (294 ) — — Valuation allowance release on state loss carryforwards (100 ) — (1,635 ) Disposal and settlement of Shoes.com — — (1,701 ) Valuation allowance release on other tax carryforwards — (179 ) (1,367 ) Valuation allowance for impairment of investment in nonconsolidated affiliate — 2,450 — Non-deductibility of acquisition costs — 1,280 — Settlement of federal and state audit matters — (945 ) — Other 251 (222 ) 587 Total income tax provision $ 35,475 $ 31,168 $ 26,942 (1) The federal statutory tax rate was 33.7% in 2017, reflecting a single month impact from tax reform, and was 35.0% in both 2016 and 2015. |
Schedule of Significant Components of the Company’s Deferred Income Tax Assets and Liabilities | Significant components of the Company’s deferred income tax assets and liabilities were as follows: ($ thousands) February 3, 2018 January 28, 2017 Deferred Tax Assets Employee benefits, compensation and insurance $ 10,011 $ 18,783 Accrued expenses 12,122 18,843 Postretirement and postemployment benefit plans 401 706 Deferred rent 6,438 8,319 Accounts receivable reserves 5,105 7,479 Net operating loss (“NOL”) carryforward/carryback 7,540 23,302 Capital loss carryforward 1,450 2,185 Inventory capitalization and inventory reserves 3,058 3,871 Impairment of investment in nonconsolidated affiliate 1,470 2,590 Alternative minimum tax credit carryforward — 270 Other 1,234 1,580 Total deferred tax assets, before valuation allowance 48,829 87,928 Valuation allowance (5,763 ) (7,890 ) Total deferred tax assets, net of valuation allowance 43,066 80,038 Deferred Tax Liabilities Retirement plans (13,071 ) (8,421 ) LIFO inventory valuation (42,032 ) (61,301 ) Capitalized software (4,141 ) (8,715 ) Depreciation (1,786 ) (9,076 ) Intangible assets (28,831 ) (41,645 ) Other (1,567 ) (1,096 ) Total deferred tax liabilities (91,428 ) (130,254 ) Net deferred tax liability $ (48,362 ) $ (50,216 ) |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Feb. 03, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Business Segment Information | ($ thousands) Famous Footwear Brand Portfolio Other Total Fiscal 2017 External sales $ 1,637,627 $ 1,147,957 $ — $ 2,785,584 Intersegment sales — 85,124 — 85,124 Depreciation and amortization 29,990 16,873 17,207 64,070 Operating earnings (loss) 92,230 80,212 (32,411 ) 140,031 Segment assets 500,862 814,508 174,045 1,489,415 Purchases of property and equipment 22,920 15,865 5,935 44,720 Capitalized software 483 232 5,743 6,458 Fiscal 2016 External sales $ 1,590,065 $ 989,323 $ — $ 2,579,388 Intersegment sales — 91,415 — 91,415 Depreciation and amortization 27,832 11,028 17,271 56,131 Operating earnings (loss) 83,735 76,248 (48,998 ) 110,985 Segment assets 526,555 838,328 110,390 1,475,273 Purchases of property and equipment 37,697 8,828 3,998 50,523 Capitalized software 3,468 50 5,521 9,039 Fiscal 2015 External sales $ 1,572,665 $ 1,004,765 $ — $ 2,577,430 Intersegment sales — 100,186 — 100,186 Depreciation and amortization 25,842 9,339 16,258 51,439 Operating earnings (loss) 109,030 66,578 (40,501 ) 135,107 Segment assets 542,842 534,137 226,344 1,303,323 Purchases of property and equipment 48,761 18,340 6,378 73,479 Capitalized software 2,538 — 5,197 7,735 |
Schedule of Reconciliation of Operating Earnings Before Income Taxes | Following is a reconciliation of operating earnings to earnings before income taxes: ($ thousands) 2017 2016 2015 Operating earnings $ 140,031 $ 110,985 $ 135,107 Interest expense (18,089 ) (15,111 ) (16,589 ) Loss on early extinguishment of debt — — (10,651 ) Interest income 764 1,380 899 Earnings before income taxes $ 122,706 $ 97,254 $ 108,766 |
Summary of Net Sales and Long-lived Assets by Geographical Area | A summary of the Company’s net sales and long-lived assets by geographic area were as follows: ($ thousands) 2017 2016 2015 Net Sales United States $ 2,603,725 $ 2,385,111 $ 2,342,590 Far East 98,287 134,430 177,654 Canada 75,764 59,847 57,186 Latin America and other 7,808 — — Total net sales $ 2,785,584 $ 2,579,388 $ 2,577,430 Long-Lived Assets United States $ 450,323 $ 617,211 $ 417,198 Europe 177,755 286 271 Canada 10,878 10,141 8,596 Far East 1,686 1,814 2,193 Other 1,984 2,076 — Total long-lived assets $ 642,626 $ 631,528 $ 428,258 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Feb. 03, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | The Company's net inventory balance was comprised of the following: ($ thousands) February 3, 2018 January 28, 2017 Raw materials $ 17,531 $ 15,378 Work-in-process 689 1,093 Finished goods 551,159 569,293 Inventories, net $ 569,379 $ 585,764 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Feb. 03, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment consisted of the following: ($ thousands) February 3, 2018 January 28, 2017 Land and buildings $ 49,621 $ 40,363 Leasehold improvements 233,034 215,347 Technology equipment 53,070 52,680 Machinery and equipment 67,778 67,245 Furniture and fixtures 131,884 148,473 Construction in progress 7,425 6,996 Property and equipment 542,812 531,104 Allowances for depreciation (330,013 ) (311,908 ) Property and equipment, net $ 212,799 $ 219,196 Useful lives of property and equipment are as follows: Buildings 5-30 years Leasehold improvements 5-20 years Technology equipment 2-10 years Machinery and equipment 4-20 years Furniture and fixtures 3-10 years |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Feb. 03, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Intangible Assets | Goodwill and intangible assets were as follows: ($ thousands) February 3, 2018 January 28, 2017 Intangible Assets Famous Footwear $ 2,800 $ 2,800 Brand Portfolio 285,988 286,488 Total intangible assets 288,788 289,288 Accumulated amortization (76,701 ) (72,628 ) Total intangible assets, net 212,087 216,660 Goodwill Brand Portfolio 127,081 127,098 Total goodwill 127,081 127,098 Goodwill and intangible assets, net $ 339,168 $ 343,758 |
Schedule of Finite-Lived Intangible Assets | The Company's intangible assets as of February 3, 2018 and January 28, 2017 were as follows: ($ thousands) February 3, 2018 Estimated Useful Lives Original Cost Accumulated Amortization Net Carrying Value Trademarks 15-40 years $ 165,288 $ 76,296 $ 88,992 Trademarks Indefinite 118,100 (1 ) — 118,100 Customer relationships 15 years 5,400 (1 ) 405 4,995 $ 288,788 $ 76,701 $ 212,087 (1) The Allen Edmonds trademark and customer relationships intangible assets were acquired in the Allen Edmonds acquisition, as further discussed in Note 2 to the consolidated financial statements. Immaterial adjustments attributable to the purchase price allocation were recorded during 2017, resulting in an adjustment to the original cost. January 28, 2017 Estimated Useful Lives Original Cost Accumulated Amortization Net Carrying Value Trademarks 15-40 years $ 165,288 $ 72,604 $ 92,684 Trademarks Indefinite 117,900 (1 ) — 117,900 Customer relationships 15 years 6,100 (1 ) 24 6,076 $ 289,288 $ 72,628 $ 216,660 |
Schedule of Indefinite-Lived Intangible Assets | The Company's intangible assets as of February 3, 2018 and January 28, 2017 were as follows: ($ thousands) February 3, 2018 Estimated Useful Lives Original Cost Accumulated Amortization Net Carrying Value Trademarks 15-40 years $ 165,288 $ 76,296 $ 88,992 Trademarks Indefinite 118,100 (1 ) — 118,100 Customer relationships 15 years 5,400 (1 ) 405 4,995 $ 288,788 $ 76,701 $ 212,087 (1) The Allen Edmonds trademark and customer relationships intangible assets were acquired in the Allen Edmonds acquisition, as further discussed in Note 2 to the consolidated financial statements. Immaterial adjustments attributable to the purchase price allocation were recorded during 2017, resulting in an adjustment to the original cost. January 28, 2017 Estimated Useful Lives Original Cost Accumulated Amortization Net Carrying Value Trademarks 15-40 years $ 165,288 $ 72,604 $ 92,684 Trademarks Indefinite 117,900 (1 ) — 117,900 Customer relationships 15 years 6,100 (1 ) 24 6,076 $ 289,288 $ 72,628 $ 216,660 |
Long-Term and Short-Term Fina39
Long-Term and Short-Term Financing Arrangements (Tables) | 12 Months Ended |
Feb. 03, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Redemption Price Percentage | Year Percentage 2018 104.688 % 2019 103.125 % 2020 101.563 % 2021 and thereafter 100.000 % |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Feb. 03, 2018 | |
Leases [Abstract] | |
Summary of Rent Expense for Operating Leases | The following is a summary of rent expense for operating leases: ($ thousands) 2017 2016 2015 Minimum rent $ 171,980 $ 160,806 $ 149,902 Contingent rent 513 470 520 Sublease income (1,705 ) (1,665 ) (1,223 ) Total $ 170,788 $ 159,611 $ 149,199 |
Future Minimum Payments Under Noncancelable Operating Leases | Future minimum rent payments under noncancelable operating leases with an initial term of one year or more at February 3, 2018 were as follows: ($ thousands) 2018 $ 177,056 2019 146,218 2020 126,898 2021 103,692 2022 82,402 Thereafter 229,157 Total minimum operating lease payments (1) $ 865,423 (1) Minimum operating lease payments have not been reduced by minimum sublease rental income of $0.6 million due in the future under noncancelable sublease agreements. |
Risk Management and Derivativ41
Risk Management and Derivatives (Tables) | 12 Months Ended |
Feb. 03, 2018 | |
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |
Schedule of Contract Notional Amount of all Purchase and Sale Contracts of a Foreign Currency | (U.S. $ equivalent in thousands) February 3, 2018 January 28, 2017 Financial Instruments Euro $ 21,223 $ 13,297 U.S. dollars (purchased by the Company’s Canadian division with Canadian dollars) 16,874 18,826 Chinese yuan 12,058 7,723 New Taiwanese dollars 596 526 United Arab Emirates dirham — 823 Japanese yen — 769 Other currencies 415 124 Total financial instruments $ 51,166 $ 42,088 |
Schedule of Derivatives Instruments in the Consolidated Balance Sheet | The classification and fair values of derivative instruments designated as hedging instruments included within the consolidated balance sheets as of February 3, 2018 and January 28, 2017 are as follows: ($ in thousands) Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value Foreign exchange forwards contracts: February 3, 2018 Prepaid expenses and other current assets $ 1,540 Other accrued expenses $ 542 January 28, 2017 Prepaid expenses and other current assets $ 234 Other accrued expenses $ 874 |
Schedule of Effect of Derivative Instruments in Cash Flow Hedging Relationships on Consolidated Statements of Earnings | During 2017 and 2016 , the effect of derivative instruments in cash flow hedging relationships on the consolidated statements of earnings was as follows: 2017 2016 Foreign exchange forward contracts: (Loss) Gain Gain (Loss) Reclassified Loss (Loss) Gain Reclassified Net sales $ (25 ) $ 30 $ (61 ) $ (125 ) Cost of goods sold 1,144 171 (1,308 ) 64 Selling and administrative expenses 1,011 157 (359 ) (441 ) Interest expense (1 ) (1 ) (21 ) (4 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Feb. 03, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis at February 3, 2018 and January 28, 2017 . The Company did not have any transfers between Level 1 and Level 2 during 2017 or 2016 . Fair Value Measurements ($ thousands) Total Level 1 Level 2 Level 3 Asset (Liability) As of February 3, 2018 Cash equivalents – money market funds $ 53,106 $ 53,106 $ — $ — Non-qualified deferred compensation plan assets 6,445 6,445 — — Non-qualified deferred compensation plan liabilities (6,445 ) (6,445 ) — — Deferred compensation plan liabilities for non-employee directors (2,289 ) (2,289 ) — — Restricted stock units for non-employee directors (4,343 ) (4,343 ) — — Derivative financial instruments, net 998 — 998 — As of January 28, 2017 Cash equivalents – money market funds $ 27,530 $ 27,530 $ — $ — Non-qualified deferred compensation plan assets 5,051 5,051 — — Non-qualified deferred compensation plan liabilities (5,051 ) (5,051 ) — — Deferred compensation plan liabilities for non-employee directors (1,909 ) (1,909 ) — — Restricted stock units for non-employee directors (9,390 ) (9,390 ) — — Performance share units (3,352 ) (3,352 ) — — Derivative financial instruments, net (640 ) — (640 ) — |
Schedule of Impairment Charges by Segment | This assessment resulted in the following impairment charges, by segment, which were included in selling and administrative expenses for the respective periods. ($ thousands) 2017 2016 2015 Impairment Charges Famous Footwear $ 677 $ 211 $ 1,159 Brand Portfolio 3,098 1,375 1,602 Total impairment charges $ 3,775 $ 1,586 $ 2,761 |
Schedule of Fair Value of Financial Instruments | The carrying amounts and fair values of the Company’s other financial instruments subject to fair value disclosures are as follows: February 3, 2018 January 28, 2017 Carrying Value Fair Value Carrying Value Fair Value ($ thousands) Borrowings under revolving credit agreement $ — $ — $ 110,000 $ 110,000 Long-term debt 197,472 210,000 197,003 209,000 Total debt $ 197,472 $ 210,000 $ 307,003 $ 319,000 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Feb. 03, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The following table sets forth the changes in accumulated other comprehensive loss, net of tax, by component for 2017 , 2016 and 2015 : ($ thousands) Foreign Currency Translation Pension and Other Postretirement Transactions (1) Derivative Transactions (2) Accumulated Other Comprehensive Income (Loss) Balance January 31, 2015 $ (745 ) $ 3,233 $ 224 $ 2,712 Other comprehensive (loss) income before reclassifications (155 ) (7,559 ) 74 (7,640 ) Reclassifications: Amounts reclassified from accumulated other comprehensive loss — (1,706 ) 177 (1,529 ) Tax provision (benefit) — 676 (83 ) 593 Net reclassifications — (1,030 ) 94 (936 ) Other comprehensive (loss) income (155 ) (8,589 ) 168 (8,576 ) Balance January 30, 2016 $ (900 ) $ (5,356 ) $ 392 $ (5,864 ) Other comprehensive income (loss) before reclassifications 1,092 (23,888 ) (1,255 ) (24,051 ) Reclassifications: Amounts reclassified from accumulated other comprehensive loss — (1,395 ) 506 (889 ) Tax provision (benefit) — 555 (185 ) 370 Net reclassifications — (840 ) 321 (519 ) Other comprehensive income (loss) 1,092 (24,728 ) (934 ) (24,570 ) Balance January 28, 2017 $ 192 $ (30,084 ) $ (542 ) $ (30,434 ) Other comprehensive income before reclassifications 1,043 18,627 1,337 21,007 Reclassifications: Amounts reclassified from accumulated other comprehensive loss — 225 (357 ) (132 ) Tax (benefit) provision — (58 ) 121 63 Net reclassifications — 167 (236 ) (69 ) Other comprehensive income 1,043 18,794 1,101 20,938 Reclassification of stranded tax effects — (5,882 ) 208 (5,674 ) Balance February 3, 2018 $ 1,235 $ (17,172 ) $ 767 $ (15,170 ) (1) Amounts reclassified are included in selling and administrative expenses. Refer to Note 5 to the consolidated financial statements for additional information related to pension and other postretirement benefits. (2) Amounts reclassified are included in net sales, costs of goods sold, selling and administrative expenses and interest expense. Refer to Note 13 and Note 14 to the consolidated financial statements for additional information related to derivative financial instruments. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended | |
Feb. 03, 2018 | ||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Schedule of Compensation Expense by Plan | The following table details the share-based compensation expense by plan for 2017 , 2016 and 2015 : ($ thousands) 2017 2016 2015 Expense for share-based compensation plans, net of forfeitures: Restricted stock $ 7,657 $ 5,858 $ 6,027 Stock performance awards 3,508 1,829 1,398 Restricted stock units 66 — — Stock options 67 38 66 Total share-based compensation expense $ 11,298 $ 7,725 $ 7,491 | |
Schedule of Share-based Compensation, Restricted Stock Activity | The following table summarizes restricted stock activity for 2017 , 2016 and 2015 : Number of Nonvested Weighted-Average Nonvested at January 31, 2015 1,562,470 $15.61 Granted 318,921 30.02 Vested (492,092 ) 14.10 Forfeited (126,850 ) 18.74 Nonvested at January 30, 2016 1,262,449 19.55 Granted 402,100 27.55 Vested (428,750 ) 9.29 Forfeited (107,750 ) 24.24 Nonvested at January 28, 2017 1,128,049 25.85 Granted 392,812 27.07 Vested (267,585 ) 17.55 Forfeited (78,475 ) 29.26 Nonvested at February 3, 2018 1,174,801 $27.92 | |
Schedule of Share-based Compensation, Performance Shares Activity | The following table summarizes performance share award activity for 2017 , 2016 and 2015 : Number of Number of Weighted-Average Nonvested at January 31, 2015 148,535 297,070 $23.39 Granted 177,921 355,842 30.12 Vested (15,182 ) (30,364 ) 24.71 Expired — — — Forfeited (3,750 ) (7,500 ) 29.47 Nonvested at January 30, 2016 307,524 615,048 27.14 Granted 159,000 318,000 26.64 Vested (56,175 ) (112,350 ) 17.00 Expired — — — Forfeited (7,850 ) (15,700 ) 27.14 Nonvested at January 28, 2017 402,499 804,998 28.36 Granted 169,500 339,000 26.90 Vested (160,372 ) (320,744 ) 29.16 Expired — — — Forfeited (12,000 ) (24,000 ) 27.46 Nonvested at February 3, 2018 399,627 799,254 $27.45 | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value of options granted was estimated using the Black-Scholes option-pricing model based on the following assumptions: 2015 Dividend yield 1.0 % Expected volatility 45.5 % Risk-free interest rate 1.8 % Expected term (in years) 7 | |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | Summarized information about stock options outstanding and exercisable at February 3, 2018 is as follows: Outstanding Exercisable Exercise Price Range Number of Weighted- Weighted- Number of Weighted- Weighted- $3.33 - $5.99 17,000 1.1 $3.49 12,000 1.1 $3.56 $6.00 - $9.17 14,875 3.4 8.05 14,875 3.4 8.05 $9.18 - $14.60 16,000 3.1 11.22 16,000 3.1 11.22 $14.61 - $22.34 16,500 1.4 15.23 16,500 1.4 15.23 $22.35 - $29.18 16,667 7.0 29.18 — — — 81,042 3.2 $13.53 59,375 2.3 $9.99 | |
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes stock option activity for 2017 under the current and prior plans: Number of Weighted-Average Outstanding at January 28, 2017 150,540 $20.25 Exercised (21,250 ) 12.55 Forfeited — — Canceled or expired (48,248 ) 34.94 Outstanding at February 3, 2018 81,042 $13.53 Exercisable at February 3, 2018 59,375 $9.99 | |
Schedule of Disclosure of Share-based Compensation Nonvested Stock Option Activity | The following table summarizes nonvested stock option activity for 2017 under the current and prior plans: Number of Weighted-Average Nonvested at January 28, 2017 26,667 $8.42 Granted — — Vested (5,000 ) 1.12 Forfeited — — Nonvested at February 3, 2018 21,667 $10.11 | |
Schedule of Share-based Compensation, Restricted Stock Units Activity | The following table summarizes restricted stock unit activity for the year ended February 3, 2018 : Outstanding Accrued (1) Nonvested RSUs Number of Number of Total Number (2) Total Number Weighted-Average January 28, 2017 299,770 52,200 351,970 334,570 $21.74 Granted (3) 2,980 45,371 48,351 33,378 27.84 Vested 46,851 (46,851 ) — 15,467 24.89 Settled (10,356 ) — (10,356 ) (10,356 ) 26.68 February 3, 2018 339,245 50,720 389,965 373,059 $24.29 (1) Accrued RSUs include all fully vested awards and a pro-rata portion of nonvested awards based on the elapsed portion of the vesting period. (2) Total number of RSUs as of February 3, 2018 includes 210,759 RSUs payable in shares and 179,206 RSUs payable in cash. (3) Granted RSUs include 3,431 RSUs resulting from dividend equivalents paid on outstanding RSUs, of which 2,980 related to outstanding vested RSUs and 451 to outstanding nonvested RSUs. | [1],[2] |
Schedule of Information about Restricted Stock Units Granted, Vested and Settled | RSUs granted, vested and settled during 2017 , 2016 and 2015 : ($ thousands, except per unit amounts) 2017 2016 2015 Weighted-average grant date fair value of RSUs granted (1) $ 27.93 $ 21.95 $ 31.54 Fair value of RSUs vested $ 1,349 $ 1,086 $ 1,049 RSUs settled 10,356 52,524 21,698 (1) Includes dividend equivalents granted on outstanding RSUs, which vest immediately. | |
Schedule of Restricted Stock Units Compensation Expense | The following table details the RSU compensation expense and the related income tax benefit for 2017 , 2016 and 2015 : ($ thousands) 2017 2016 2015 Compensation expense $ 1,645 $ 2,459 $ 704 Income tax benefit (620 ) (956 ) (276 ) Compensation expense, net of income tax benefit $ 1,025 $ 1,503 $ 428 | |
[1] | Granted RSUs include 3,431 RSUs resulting from dividend equivalents paid on outstanding RSUs, of which 2,980 related to outstanding vested RSUs and 451 to outstanding nonvested RSUs. | |
[2] | Total number of RSUs as of February 3, 2018 includes 210,759 RSUs payable in shares and 179,206 RSUs payable in cash. |
Financial Information for the45
Financial Information for the Company and its Subsidiaries (Tables) | 12 Months Ended |
Feb. 03, 2018 | |
Financial Information For The Company And Its Subsidiaries [Abstract] | |
Schedule of Condensed Consolidating Balance Sheets | CONDENSED CONSOLIDATING BALANCE SHEET AS OF FEBRUARY 3, 2018 Non-Guarantors ($ thousands) Parent Guarantors Eliminations Total Assets Current assets: Cash and cash equivalents $ 26,089 $ — $ 37,958 $ — $ 64,047 Receivables, net 124,957 3,663 23,993 — 152,613 Inventories, net 146,068 394,438 28,873 — 569,379 Prepaid expenses and other current assets 26,284 30,456 8,394 (4,384 ) 60,750 Intercompany receivable - current 521 74 9,250 (9,845 ) — Total current assets 323,919 428,631 108,468 (14,229 ) 846,789 Property and equipment, net 35,474 165,227 12,098 — 212,799 Goodwill and intangible assets, net 111,108 40,937 187,123 — 339,168 Other assets 76,317 13,610 732 — 90,659 Investment in subsidiaries 1,329,428 — (23,565 ) (1,305,863 ) — Intercompany receivable - noncurrent 774,588 520,362 704,810 (1,999,760 ) — Total assets $ 2,650,834 $ 1,168,767 $ 989,666 $ (3,319,852 ) $ 1,489,415 Liabilities and Equity Current liabilities: Trade accounts payable $ 136,797 $ 102,420 $ 33,745 $ — $ 272,962 Other accrued expenses 65,817 74,006 21,758 (4,384 ) 157,197 Intercompany payable - current 5,524 — 4,321 (9,845 ) — Total current liabilities 208,138 176,426 59,824 (14,229 ) 430,159 Other liabilities: Long-term debt 197,472 — — — 197,472 Other liabilities 101,784 35,574 5,464 — 142,822 Intercompany payable - noncurrent 1,425,951 98,610 475,199 (1,999,760 ) — Total other liabilities 1,725,207 134,184 480,663 (1,999,760 ) 340,294 Equity: Caleres, Inc. shareholders’ equity 717,489 858,157 447,706 (1,305,863 ) 717,489 Noncontrolling interests — — 1,473 — 1,473 Total equity 717,489 858,157 449,179 (1,305,863 ) 718,962 Total liabilities and equity $ 2,650,834 $ 1,168,767 $ 989,666 $ (3,319,852 ) $ 1,489,415 CONDENSED CONSOLIDATING BALANCE SHEET AS OF JANUARY 28, 2017 Non- Guarantors ($ thousands) Parent Guarantors Eliminations Total Assets Current assets: Cash and cash equivalents $ 23,999 $ 9,029 $ 22,304 $ — $ 55,332 Receivables, net 118,746 5,414 28,961 — 153,121 Inventories, net 150,098 410,867 24,799 — 585,764 Prepaid expenses and other current assets 24,293 23,040 8,058 (5,863 ) 49,528 Intercompany receivable - current 695 263 22,091 (23,049 ) — Total current assets 317,831 448,613 106,213 (28,912 ) 843,745 Property and equipment, net 31,424 176,358 11,414 — 219,196 Goodwill and intangible assets, net 113,333 219,337 11,088 — 343,758 Other assets 51,181 16,567 826 — 68,574 Investment in subsidiaries 1,343,954 — (21,946 ) (1,322,008 ) — Intercompany receivable - noncurrent 568,541 366,902 581,624 (1,517,067 ) — Total assets $ 2,426,264 $ 1,227,777 $ 689,219 $ (2,867,987 ) $ 1,475,273 Liabilities and Equity Current liabilities: Borrowings under revolving credit agreement $ 110,000 $ — $ — $ — $ 110,000 Trade accounts payable 116,783 112,434 37,153 — 266,370 Other accrued expenses 74,941 65,228 16,919 (5,863 ) 151,225 Intercompany payable - current 12,794 — 10,255 (23,049 ) — Total current liabilities 314,518 177,662 64,327 (28,912 ) 527,595 Other liabilities: Long-term debt 197,003 — — — 197,003 Other liabilities 91,683 40,507 3,999 — 136,189 Intercompany payable - noncurrent 1,209,943 98,982 208,142 (1,517,067 ) — Total other liabilities 1,498,629 139,489 212,141 (1,517,067 ) 333,192 Equity: Caleres, Inc. shareholders’ equity 613,117 910,626 411,382 (1,322,008 ) 613,117 Noncontrolling interests — — 1,369 — 1,369 Total equity 613,117 910,626 412,751 (1,322,008 ) 614,486 Total liabilities and equity $ 2,426,264 $ 1,227,777 $ 689,219 $ (2,867,987 ) $ 1,475,273 |
Schedule of Condensed Consolidating Statements of Earnings | CONDENSED CONSOLIDATING STATEMENT OF EARNINGS FOR THE FISCAL YEAR ENDED FEBRUARY 3, 2018 ($ thousands) Parent Guarantors Non-Guarantors Eliminations Total Net sales $ 837,849 $ 1,935,265 $ 211,815 $ (199,345 ) $ 2,785,584 Cost of goods sold 580,038 1,090,354 109,104 (162,561 ) 1,616,935 Gross profit 257,811 844,911 102,711 (36,784 ) 1,168,649 Selling and administrative expenses 233,860 771,027 55,600 (36,784 ) 1,023,703 Restructuring and other special charges, net 3,942 756 217 — 4,915 Operating earnings 20,009 73,128 46,894 — 140,031 Interest expense (18,075 ) (14 ) — — (18,089 ) Interest income 332 — 432 — 764 Intercompany interest income (expense) 8,354 (8,813 ) 459 — — Earnings before income taxes 10,620 64,301 47,785 — 122,706 Income tax provision (24,963 ) (175 ) (10,337 ) — (35,475 ) Equity in earnings (loss) of subsidiaries, net of tax 101,543 — (1,619 ) (99,924 ) — Net earnings 87,200 64,126 35,829 (99,924 ) 87,231 Less: Net earnings attributable to noncontrolling interests — — 31 — 31 Net earnings attributable to Caleres, Inc. $ 87,200 $ 64,126 $ 35,798 $ (99,924 ) $ 87,200 CONDENSED CONSOLIDATING STATEMENT OF EARNINGS FOR THE FISCAL YEAR ENDED JANUARY 28, 2017 Non-Guarantors ($ thousands) Parent Guarantors Eliminations Total Net sales $ 825,654 $ 1,692,093 $ 227,557 $ (165,916 ) $ 2,579,388 Cost of goods sold 583,131 938,169 129,410 (133,313 ) 1,517,397 Gross profit 242,523 753,924 98,147 (32,603 ) 1,061,991 Selling and administrative expenses 212,156 690,292 57,757 (32,603 ) 927,602 Restructuring and other special charges, net 15,333 433 7,638 — 23,404 Operating earnings 15,034 63,199 32,752 — 110,985 Interest expense (15,102 ) (9 ) — — (15,111 ) Interest income 811 — 569 — 1,380 Intercompany interest income (expense) 8,888 (9,033 ) 145 — — Earnings before income taxes 9,631 54,157 33,466 — 97,254 Income tax provision (5,075 ) (20,084 ) (6,009 ) — (31,168 ) Equity in earnings (loss) of subsidiaries, net of tax 61,102 — (2,422 ) (58,680 ) — Net earnings 65,658 34,073 25,035 (58,680 ) 66,086 Less: Net earnings attributable to noncontrolling interests — — 428 — 428 Net earnings attributable to Caleres, Inc. $ 65,658 $ 34,073 $ 24,607 $ (58,680 ) $ 65,658 CONDENSED CONSOLIDATING STATEMENT OF EARNINGS FOR THE FISCAL YEAR ENDED JANUARY 30, 2016 Non-Guarantors ($ thousands) Parent Guarantors Eliminations Total Net sales $ 819,148 $ 1,652,444 $ 268,779 $ (162,941 ) $ 2,577,430 Cost of goods sold 591,539 905,412 162,384 (129,708 ) 1,529,627 Gross profit 227,609 747,032 106,395 (33,233 ) 1,047,803 Selling and administrative expenses 235,210 649,020 61,699 (33,233 ) 912,696 Operating (loss) earnings (7,601 ) 98,012 44,696 — 135,107 Interest expense (16,588 ) (1 ) — — (16,589 ) Loss on early extinguishment of debt (10,651 ) — — — (10,651 ) Interest income 695 — 204 — 899 Intercompany interest income (expense) 14,363 (14,581 ) 218 — — (Loss) earnings before income taxes (19,782 ) 83,430 45,118 — 108,766 Income tax benefit (provision) 8,755 (29,475 ) (6,222 ) — (26,942 ) Equity in earnings (loss) of subsidiaries, net of tax 92,506 — (616 ) (91,890 ) — Net earnings 81,479 53,955 38,280 (91,890 ) 81,824 Less: Net earnings attributable to noncontrolling interests — — 345 — 345 Net earnings attributable to Caleres, Inc. $ 81,479 $ 53,955 $ 37,935 $ (91,890 ) $ 81,479 |
Schedule of Condensed Consolidating Statements of Comprehensive Income | CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME FOR THE FISCAL YEAR ENDED FEBRUARY 3, 2018 Non-Guarantors ($ thousands) Parent Guarantors Eliminations Total Net earnings $ 87,200 $ 64,126 $ 35,829 $ (99,924 ) $ 87,231 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment — — 1,116 — 1,116 Pension and other postretirement benefits adjustments 18,855 — (61 ) — 18,794 Derivative financial instruments 1,539 14 (452 ) — 1,101 Other comprehensive income from investment in subsidiaries 544 — — (544 ) — Other comprehensive income, net of tax 20,938 14 603 (544 ) 21,011 Comprehensive income 108,138 64,140 36,432 (100,468 ) 108,242 Comprehensive income attributable to noncontrolling interests — — 104 — 104 Comprehensive income attributable to Caleres, Inc. $ 108,138 $ 64,140 $ 36,328 $ (100,468 ) $ 108,138 CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME FOR THE FISCAL YEAR ENDED JANUARY 28, 2017 Non-Guarantors ($ thousands) Parent Guarantors Eliminations Total Net earnings $ 65,658 $ 34,073 $ 25,035 $ (58,680 ) $ 66,086 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment — — 1,045 — 1,045 Pension and other postretirement benefits adjustments (24,790 ) — 62 — (24,728 ) Derivative financial instruments 181 — (1,115 ) — (934 ) Other comprehensive income from investment in subsidiaries 39 — — (39 ) — Other comprehensive loss, net of tax (24,570 ) — (8 ) (39 ) (24,617 ) Comprehensive income 41,088 34,073 25,027 (58,719 ) 41,469 Comprehensive income attributable to noncontrolling interests — — 381 — 381 Comprehensive income attributable to Caleres, Inc. $ 41,088 $ 34,073 $ 24,646 $ (58,719 ) $ 41,088 CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME FOR THE FISCAL YEAR ENDED JANUARY 30, 2016 Non-Guarantors ($ thousands) Parent Guarantors Eliminations Total Net earnings $ 81,479 $ 53,955 $ 38,280 $ (91,890 ) $ 81,824 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment — — (224 ) — (224 ) Pension and other postretirement benefits adjustments (8,838 ) — 249 — (8,589 ) Derivative financial instruments 628 — (460 ) — 168 Other comprehensive loss from investment in subsidiaries (366 ) — — 366 — Other comprehensive loss, net of tax (8,576 ) — (435 ) 366 (8,645 ) Comprehensive income 72,903 53,955 37,845 (91,524 ) 73,179 Comprehensive income attributable to noncontrolling interests — — 276 — 276 Comprehensive income attributable to Caleres, Inc. $ 72,903 $ 53,955 $ 37,569 $ (91,524 ) $ 72,903 |
Schedule of Condensed Consolidating Statements of Cash Flows | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE FISCAL YEAR ENDED FEBRUARY 3, 2018 Non-Guarantors ($ thousands) Parent Guarantors Eliminations Total Net cash provided by operating activities $ 40,601 $ 90,745 $ 60,029 $ — $ 191,375 Investing activities Purchases of property and equipment (9,522 ) (31,159 ) (4,039 ) — (44,720 ) Capitalized software (5,950 ) (483 ) (25 ) — (6,458 ) Intercompany investing (20,224 ) 197,929 (177,705 ) — — Net cash (used for) provided by investing activities (35,696 ) 166,287 (181,769 ) — (51,178 ) Financing activities Borrowings under revolving credit agreement 454,000 — — — 454,000 Repayments under revolving credit agreement (564,000 ) — — — (564,000 ) Dividends paid (12,027 ) — — — (12,027 ) Acquisition of treasury stock (5,993 ) — — — (5,993 ) Issuance of common stock under share-based plans, net (3,816 ) — — — (3,816 ) Intercompany financing 129,021 (266,061 ) 137,040 — — Net cash (used for) provided by financing activities (2,815 ) (266,061 ) 137,040 — (131,836 ) Effect of exchange rate changes on cash and cash equivalents — — 354 — 354 Increase (decrease) in cash and cash equivalents 2,090 (9,029 ) 15,654 — 8,715 Cash and cash equivalents at beginning of year 23,999 9,029 22,304 — 55,332 Cash and cash equivalents at end of year $ 26,089 $ — $ 37,958 $ — $ 64,047 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE FISCAL YEAR ENDED JANUARY 28, 2017 Non-Guarantors ($ thousands) Parent Guarantors Eliminations Total Net cash provided by operating activities $ 66,800 $ 71,781 $ 45,041 $ — $ 183,622 Investing activities Purchases of property and equipment (4,769 ) (41,606 ) (4,148 ) — (50,523 ) Capitalized software (5,521 ) (3,481 ) (37 ) — (9,039 ) Acquisition cost, net of cash received (259,932 ) — — — (259,932 ) Intercompany investing (3,257 ) 3,257 — — — Net cash used for investing activities (273,479 ) (41,830 ) (4,185 ) — (319,494 ) Financing activities Borrowings under revolving credit agreement 623,000 — — — 623,000 Repayments under revolving credit agreement (513,000 ) — — — (513,000 ) Dividends paid (12,104 ) — — — (12,104 ) Acquisition of treasury stock (23,139 ) — — — (23,139 ) Issuance of common stock under share-based plans, net (4,188 ) — — — (4,188 ) Excess tax benefit related to share-based plans 2,251 — — — 2,251 Intercompany financing 126,858 (20,922 ) (105,936 ) — — Net cash provided by (used for) financing activities 199,678 (20,922 ) (105,936 ) — 72,820 Effect of exchange rate changes on cash and cash equivalents — — 233 — 233 (Decrease) increase in cash and cash equivalents (7,001 ) 9,029 (64,847 ) — (62,819 ) Cash and cash equivalents at beginning of year 31,000 — 87,151 — 118,151 Cash and cash equivalents at end of year $ 23,999 $ 9,029 $ 22,304 — $ 55,332 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE FISCAL YEAR ENDED JANUARY 30, 2016 Non-Guarantors ($ thousands) Parent Guarantors Eliminations Total Net cash (used for) provided by operating activities $ (1,259 ) $ 99,222 $ 51,189 $ — $ 149,152 Investing activities Purchases of property and equipment (14,585 ) (56,382 ) (2,512 ) — (73,479 ) Proceeds from disposal of property and equipment 7,111 — 322 — 7,433 Capitalized software (5,197 ) (2,538 ) — — (7,735 ) Intercompany investing (568 ) 568 — — — Net cash used for investing activities (13,239 ) (58,352 ) (2,190 ) — (73,781 ) Financing activities Borrowings under revolving credit agreement 198,000 — — — 198,000 Repayments under revolving credit agreement (198,000 ) — — — (198,000 ) Proceeds from issuance of 2023 senior notes 200,000 — — — 200,000 Redemption of 2019 senior notes (200,000 ) — — — (200,000 ) Dividends paid (12,253 ) — — — (12,253 ) Debt issuance costs (3,650 ) — — — (3,650 ) Acquisition of treasury stock (4,921 ) — — — (4,921 ) Issuance of common stock under share-based plans, net (5,297 ) — — — (5,297 ) Excess tax benefit related to share-based plans 2,651 — — — 2,651 Intercompany financing 55,077 (40,870 ) (14,207 ) — — Net cash provided by (used for) financing activities 31,607 (40,870 ) (14,207 ) — (23,470 ) Effect of exchange rate changes on cash and cash equivalents — — (1,153 ) — (1,153 ) Increase in cash and cash equivalents 17,109 — 33,639 — 50,748 Cash and cash equivalents at beginning of year 13,891 — 53,512 — 67,403 Cash and cash equivalents at end of year $ 31,000 $ — $ 87,151 $ — $ 118,151 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Feb. 03, 2018 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data | QUARTERLY FINANCIAL DATA (Unaudited) Quarterly financial results (unaudited) for 2017 and 2016 are as follows: Quarters First Quarter Second Quarter Third Quarter Fourth Quarter ($ thousands, except per share amounts) (13 weeks) (13 weeks) (13 weeks) (14 Weeks) 2017 Net sales $ 631,509 $ 676,954 $ 774,656 $ 702,465 Gross profit 270,908 287,461 316,885 293,395 Net earnings (1) 14,884 17,674 34,373 20,301 Net earnings attributable to Caleres, Inc. (1) 14,902 17,595 34,387 20,316 Per share of common stock: Basic earnings per common share attributable to Caleres, Inc. shareholders (2) 0.35 0.41 0.80 0.47 Diluted earnings per common share attributable to Caleres, Inc. shareholders (2) 0.35 0.41 0.80 0.47 Dividends paid 0.07 0.07 0.07 0.07 Market value: High 32.83 29.11 31.27 34.34 Low 24.86 24.45 22.39 26.54 (1) The first and second quarters of 2017 reflect the impact of amortization of the inventory fair value adjustment required for purchase accounting of $1.9 million and $1.1 million , respectively, on an after-tax basis, as further described in Note 2 to the consolidated financial statements and several restructuring and other charges totaling $0.7 million and $1.9 million , respectively, on an after-tax basis, as further described in Note 4 to the consolidated financial statements. The fourth quarter of 2017 reflects restructuring charges totaling $0.6 million , on an after-tax basis, as further described in Note 4 to the consolidated financial statements and the benefit of income tax reform of $0.3 million , as further described in Note 6 to the consolidated financial statements. (2) EPS for the quarters may not sum to the annual amount as each period is computed on a discrete period basis. Quarters First Quarter Second Quarter Third Quarter Fourth Quarter ($ thousands, except per share amounts) (13 weeks) (13 weeks) (13 weeks) (13 Weeks) 2016 Net sales $ 584,733 $ 622,937 $ 732,230 $ 639,488 Gross profit 247,793 259,555 293,771 260,872 Net earnings (loss) (1) 17,878 19,679 34,726 (6,196 ) Net earnings (loss) attributable to Caleres, Inc. (1) 17,782 19,768 34,730 (6,622 ) Per share of common stock: Basic earnings (loss) per common share attributable to Caleres, Inc. shareholders (2) 0.41 0.46 0.81 (0.16 ) Diluted earnings (loss) per common share attributable to Caleres, Inc. shareholders (2) 0.41 0.46 0.81 (0.16 ) Dividends paid 0.07 0.07 0.07 0.07 Market value: High 29.49 27.30 26.90 36.61 Low 23.89 21.27 23.12 24.14 (1) The fourth quarter of 2016 reflects the impact of several restructuring and other charges totaling $20.2 million on an after-tax basis, as further described in Note 4 to the consolidated financial statements. (2) EPS for the quarters may not sum to the annual amount as each period is computed on a discrete period basis. |
Summary of Significant Accoun47
Summary of Significant Accounting Policies (Narrative) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jan. 28, 2017USD ($) | Feb. 03, 2018USD ($)retail_store | Jan. 28, 2017USD ($) | Jan. 30, 2016USD ($) | |
Accounting Policies [Line Items] | ||||
Number of Stores | retail_store | 1,262 | |||
Provision for doubtful accounts | $ 1,336 | $ 1,384 | $ 480 | |
Provision for customer allowances | 51,100 | 45,200 | 47,400 | |
Provision for customer discounts | $ 4,800 | 3,600 | 2,600 | |
Percentage of LIFO inventory | 85.00% | |||
Inventories, adjustment to last-in, first-out cost | $ 4,345 | $ 4,038 | 4,345 | |
Selling and administrative expenses | 1,023,703 | 927,602 | 912,696 | |
Other assets | 33,599 | 25,779 | 33,599 | |
Interest Costs Capitalized | 0 | 1,400 | 300 | |
Cost Method Investments, Original Cost | 7,000 | 7,000 | ||
Self insurance reserves | 10,400 | 11,000 | 10,400 | |
Gift card breakage | 1,700 | 700 | 700 | |
Advertising and marketing expense | 83,600 | 78,800 | 78,400 | |
Co-op advertising allowances | 4,800 | 4,100 | 6,500 | |
Co-op advertising expense | 10,000 | 8,400 | 9,700 | |
Deferred advertising costs | 2,300 | $ 4,000 | 2,300 | |
More likely than not, percentage | 50.00% | |||
Corporate tax rate - prior to Jan 1 2018 | 35.00% | |||
Corporate tax rate - effective Jan 1 2018 | 21.00% | |||
Annual vesting percentage | 25.00% | |||
Excess tax benefit from share-based compensation | $ 1,265 | 0 | 0 | |
Cumulative Effect on Retained Earnings, Tax | 441 | |||
Reduction to income tax assets as a result of adoption of ASU 2016-16 | 5,400 | |||
Increase to deferred tax liabilities as a result of adoption of ASU 2016-16 | 5,100 | |||
Reduction to retained earnings as a result of adoption of ASU 2016-16 | 10,500 | |||
Defined benefit plan, net periodic benefit income excluding service cost | 12,300 | 15,000 | 19,000 | |
Warehousing and Distribution Costs | ||||
Accounting Policies [Line Items] | ||||
Selling and administrative expenses | 89,700 | 77,700 | 70,400 | |
Overseas Sourcing Offices and Other Inventory Procurement Costs | ||||
Accounting Policies [Line Items] | ||||
Selling and administrative expenses | 23,100 | 21,500 | $ 23,900 | |
Software Development and Acquisition Costs | ||||
Accounting Policies [Line Items] | ||||
Other assets | 30,000 | 22,300 | 30,000 | |
Accumulated amortization | 111,700 | $ 123,000 | $ 111,700 | |
Retail | ||||
Accounting Policies [Line Items] | ||||
Pecentage of net sales | 69.00% | 67.00% | 66.00% | |
Famous Footwear Rewards Program Members | ||||
Accounting Policies [Line Items] | ||||
Pecentage of net sales | 75.00% | 75.00% | 74.00% | |
Customer Loyalty Program Liability, Current | 7,600 | $ 8,100 | $ 7,600 | |
Expected decrease to the opening balance of retained earnings due to the adoption of ASU 2014-09 | $ 5,000 | |||
Minimum | ||||
Accounting Policies [Line Items] | ||||
Rent holiday, number of days | 30 days | |||
Maximum | ||||
Accounting Policies [Line Items] | ||||
Rent holiday, number of days | 60 days | |||
Restructuring and other special charges, net | ||||
Accounting Policies [Line Items] | ||||
Asset Impairment Charges | $ 7,000 | |||
Restructuring and other special charges, net | Other | ||||
Accounting Policies [Line Items] | ||||
Asset Impairment Charges | 7,000 | |||
Selling and administrative expenses | ||||
Accounting Policies [Line Items] | ||||
Asset Impairment Charges | $ 3,800 | $ 1,600 | $ 2,800 | |
AOCI Including Portion Attributable to Noncontrolling Interest | ||||
Accounting Policies [Line Items] | ||||
Reclassification of stranded tax effects | (5,674) | |||
Pension and Other Postretirement Transactions | ||||
Accounting Policies [Line Items] | ||||
Reclassification of stranded tax effects | (5,882) | |||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | ||||
Accounting Policies [Line Items] | ||||
Reclassification of stranded tax effects | $ 208 |
Acquisiton (Narrative)
Acquisiton (Narrative) - USD ($) | Dec. 13, 2016 | Jan. 28, 2017 | Feb. 03, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Jan. 28, 2017 | Oct. 29, 2016 | Jul. 30, 2016 | Apr. 30, 2016 | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 |
Business Acquisition [Line Items] | |||||||||||||
Restructuring and other special charges, net | $ 20,200,000 | $ 4,915,000 | $ 23,404,000 | $ 0 | |||||||||
Date inventory fair value adjustment was fully amortized | Jul. 29, 2017 | ||||||||||||
Date purchase price allocation was considered complete | Oct. 28, 2017 | ||||||||||||
Net sales | $ 702,465,000 | $ 774,656,000 | $ 676,954,000 | $ 631,509,000 | 639,488,000 | $ 732,230,000 | $ 622,937,000 | $ 584,733,000 | $ 2,785,584,000 | 2,579,388,000 | 2,577,430,000 | ||
Allen Edmonds | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Business Acquisition, Effective Date of Acquisition | Dec. 13, 2016 | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 259,900,000 | ||||||||||||
Cash and Equivalents | $ 668,000 | ||||||||||||
Restructuring and other special charges, net | 4,000,000 | ||||||||||||
Net sales | $ 24,300,000 | 178,600,000 | |||||||||||
Restructuring and other special charges, net | Allen Edmonds | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Restructuring and other special charges, net | 4,000,000 | ||||||||||||
Restructuring And Related Cost Incurred Cost After Tax | 1,900,000 | 700,000 | $ 2,600,000 | 5,000,000 | |||||||||
Transaction costs | 5,800,000 | 5,800,000 | $ 5,800,000 | ||||||||||
Restructuring And Related Cost Incurred Cost Per Diluted Share | $ 0.06 | $ 0.11 | |||||||||||
Other | Restructuring and other special charges, net | Allen Edmonds | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Restructuring and other special charges, net | $ 2,500,000 | ||||||||||||
Transaction costs | 5,200,000 | 5,200,000 | $ 5,200,000 | ||||||||||
Brand Portfolio | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Net sales | 1,147,957,000 | 989,323,000 | $ 1,004,765,000 | ||||||||||
Brand Portfolio | Restructuring and other special charges, net | Allen Edmonds | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Restructuring and other special charges, net | 1,500,000 | ||||||||||||
Transaction costs | $ 600,000 | $ 600,000 | 600,000 | ||||||||||
Brand Portfolio | Cost of goods sold | Allen Edmonds | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Business Combination, Acquisition Amortization of Inventory Fair Value Adjustment | 4,900,000 | 1,200,000 | |||||||||||
Business Combination, Acquisition Amortization of Inventory Fair Value Adjustment, Net of Tax | $ 1,100,000 | $ 1,900,000 | 3,000,000 | 700,000 | |||||||||
Business Combination, Acquisition Amortization of Inventory Fair Value Adjustment, Per Diluted Share | $ 0.07 | $ 0.02 |
Acqusition (Schedule of Allocat
Acqusition (Schedule of Allocation of Purchase Price) - USD ($) $ in Thousands | Dec. 13, 2016 | Jan. 28, 2017 |
Business Acquisition [Line Items] | ||
Goodwill | $ 113,100 | |
Intangible Assets | $ 102,900 | |
Allen Edmonds | ||
Business Acquisition [Line Items] | ||
Cash and Equivalents | 668 | |
Receivables | 6,273 | |
Inventories | 52,364 | |
Prepaid expense and other current assets | 2,353 | |
Total current assets | 61,658 | |
Other Assets | 1,060 | |
Goodwill | 113,127 | |
Intangible Assets | 102,920 | |
Property and Equipment | 32,243 | |
Total assets | 311,008 | |
Trade accounts payable | 12,256 | |
Other accrued expenses | 12,692 | |
Total current liabilities | 24,948 | |
Deferred income taxes | 25,109 | |
Other liabilities | 351 | |
Total liabilities | 50,408 | |
Net assets | $ 260,600 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) - USD ($) $ in Thousands | 12 Months Ended | 77 Months Ended | |||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | Feb. 03, 2018 | Aug. 25, 2011 | |
Earnings Per Share [Abstract] | |||||
Antidilutive options excluded from computation of earnings per share | 16,667 | 63,915 | 56,997 | ||
Shares repurchased during period under share repurchase program | 225,000 | 900,000 | 151,500 | 1,300,000 | |
Share repurchase program, number of shares authorized to be repurchased | 2,500,000 | 2,500,000 | 2,500,000 | ||
Payments for repurchase of shares under share repurchase program | $ 5,993 | $ 23,139 | $ 4,921 | $ 34,100 |
Earnings Per Share Earnings Per
Earnings Per Share Earnings Per Share (Schedule of Earnings Per Share, Basic and Diluted) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Feb. 03, 2018 | [1] | Oct. 28, 2017 | [1] | Jul. 29, 2017 | [1] | Apr. 29, 2017 | [1] | Jan. 28, 2017 | [1] | Oct. 29, 2016 | [1] | Jul. 30, 2016 | [1] | Apr. 30, 2016 | [1] | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
NUMERATOR | |||||||||||||||||||
Net earnings | $ 87,231 | $ 66,086 | $ 81,824 | ||||||||||||||||
Net earnings attributable to noncontrolling interests | (31) | (428) | (345) | ||||||||||||||||
Net earnings allocated to participating securities | (2,384) | (1,750) | (2,587) | ||||||||||||||||
Net earnings attributable to Caleres, Inc. after allocation of earnings to participating securities | $ 84,816 | $ 63,908 | $ 78,892 | ||||||||||||||||
DENOMINATOR | |||||||||||||||||||
Denominator for basic earnings per common share attributable to Caleres, Inc. shareholders | 41,801 | 42,026 | 42,455 | ||||||||||||||||
Dilutive effect of share-based awards | 179 | 155 | 201 | ||||||||||||||||
Denominator for diluted earnings per common share attributable to Caleres, Inc. shareholders | 41,980 | 42,181 | 42,656 | ||||||||||||||||
Basic earnings per common share: | |||||||||||||||||||
Basic earnings per common share attributable to Caleres, Inc. shareholders | $ 0.47 | $ 0.80 | $ 0.41 | $ 0.35 | $ (0.16) | $ 0.81 | $ 0.46 | $ 0.41 | $ 2.03 | $ 1.52 | $ 1.86 | ||||||||
Earnings Per Share, Diluted [Abstract] | |||||||||||||||||||
Diluted earnings per common share attributable to Caleres, Inc. shareholders | $ 0.47 | $ 0.80 | $ 0.41 | $ 0.35 | $ (0.16) | $ 0.81 | $ 0.46 | $ 0.41 | $ 2.02 | $ 1.52 | $ 1.85 | ||||||||
[1] | EPS for the quarters may not sum to the annual amount as each period is computed on a discrete period basis. |
Restructuring and Other Initi52
Restructuring and Other Initiatives (Narrative) - USD ($) $ / shares in Units, $ in Thousands | Dec. 12, 2014 | Feb. 03, 2018 | Jul. 29, 2017 | Apr. 29, 2017 | Jan. 28, 2017 | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 |
Restructuring and Related Cost [Line Items] | ||||||||
Restructuring and other special charges, net | $ 20,200 | $ 4,915 | $ 23,404 | $ 0 | ||||
Impairment of note receivable | 0 | 7,281 | 0 | |||||
Investment in nonconsolidated affiliate | 7,000 | |||||||
Shoes.com | ||||||||
Restructuring and Related Cost [Line Items] | ||||||||
Sale price | $ 15,000 | |||||||
Proceeds from Divestiture of Businesses | 4,400 | |||||||
Note receivable | 7,500 | |||||||
Disposal Group, Note Receivable, First Periodic Payment Due | 1,250 | |||||||
Disposal Group, Note Receivable, Periodic Payment Due After First Installment | $ 600 | |||||||
Gain on sale of subsidiary | $ 4,700 | |||||||
Allen Edmonds | ||||||||
Restructuring and Related Cost [Line Items] | ||||||||
Restructuring and other special charges, net | 4,000 | |||||||
Restructuring and other special charges, net | ||||||||
Restructuring and Related Cost [Line Items] | ||||||||
Asset Impairment Charges | 7,000 | |||||||
Restructuring and other special charges, net | Other | ||||||||
Restructuring and Related Cost [Line Items] | ||||||||
Asset Impairment Charges | 7,000 | |||||||
Restructuring and other special charges, net | Shoes.com | ||||||||
Restructuring and Related Cost [Line Items] | ||||||||
Restructuring And Related Cost Incurred Cost After Tax | $ 4,900 | |||||||
Restructuring And Related Cost Incurred Cost Per Diluted Share | $ 0.11 | |||||||
Impairment charge | $ 8,000 | |||||||
Impairment of note receivable | 7,300 | |||||||
Financing Receivable, Allowance for Credit Losses | $ 700 | 700 | ||||||
Restructuring and other special charges, net | Shoes.com | Other | ||||||||
Restructuring and Related Cost [Line Items] | ||||||||
Impairment of note receivable | 7,300 | |||||||
Restructuring and other special charges, net | Shoes.com | Brand Portfolio | ||||||||
Restructuring and Related Cost [Line Items] | ||||||||
Impairment charge | 700 | |||||||
Restructuring and other special charges, net | Allen Edmonds | ||||||||
Restructuring and Related Cost [Line Items] | ||||||||
Restructuring and other special charges, net | 4,000 | |||||||
Restructuring And Related Cost Incurred Cost After Tax | $ 1,900 | $ 700 | $ 2,600 | $ 5,000 | ||||
Restructuring And Related Cost Incurred Cost Per Diluted Share | $ 0.06 | $ 0.11 | ||||||
Transaction costs | 5,800 | $ 5,800 | ||||||
Restructuring and other special charges, net | Allen Edmonds | Other | ||||||||
Restructuring and Related Cost [Line Items] | ||||||||
Restructuring and other special charges, net | $ 2,500 | |||||||
Transaction costs | 5,200 | 5,200 | ||||||
Restructuring and other special charges, net | Allen Edmonds | Brand Portfolio | ||||||||
Restructuring and Related Cost [Line Items] | ||||||||
Restructuring and other special charges, net | 1,500 | |||||||
Transaction costs | 600 | 600 | ||||||
Other Restructuring | ||||||||
Restructuring and Related Cost [Line Items] | ||||||||
Restructuring And Related Cost Incurred Cost After Tax | 300 | |||||||
Other Restructuring | Brand Portfolio | ||||||||
Restructuring and Related Cost [Line Items] | ||||||||
Restructuring And Related Cost Incurred Cost After Tax | $ 3,300 | |||||||
Restructuring And Related Cost Incurred Cost Per Diluted Share | $ 0.08 | |||||||
Restructuring Costs | $ 4,200 | |||||||
Other Restructuring | Restructuring and other special charges, net | ||||||||
Restructuring and Related Cost [Line Items] | ||||||||
Restructuring And Related Cost Incurred Cost After Tax | $ 7,000 | $ 7,000 | ||||||
Restructuring And Related Cost Incurred Cost Per Diluted Share | $ 0.16 | $ 0.16 | ||||||
Other Restructuring | Cost of goods sold | Brand Portfolio | ||||||||
Restructuring and Related Cost [Line Items] | ||||||||
Restructuring Costs | $ 1,600 | |||||||
Employee Severance | ||||||||
Restructuring and Related Cost [Line Items] | ||||||||
Restructuring and other special charges, net | 900 | |||||||
Restructuring And Related Cost Incurred Cost After Tax | $ 600 | $ 600 | ||||||
Restructuring And Related Cost Incurred Cost Per Diluted Share | $ 0.02 | |||||||
Employee Severance | Other | ||||||||
Restructuring and Related Cost [Line Items] | ||||||||
Restructuring and other special charges, net | $ 200 | |||||||
Employee Severance | Brand Portfolio | ||||||||
Restructuring and Related Cost [Line Items] | ||||||||
Restructuring and other special charges, net | 100 | |||||||
Employee Severance | Famous Footwear | ||||||||
Restructuring and Related Cost [Line Items] | ||||||||
Restructuring and other special charges, net | $ 600 | |||||||
Employee Severance | Restructuring and other special charges, net | Brand Portfolio | ||||||||
Restructuring and Related Cost [Line Items] | ||||||||
Restructuring Costs | $ 2,600 |
Retirement and Other Benefit 53
Retirement and Other Benefit Plans Retirement and Other Benefit Plans (Narrative) - USD ($) | 12 Months Ended | ||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Life Insurance Coverage, Amount | $ 20,000 | ||
Actuarial grading percentage | 0.75% | ||
Actuarial gain related to change in mortality tables | $ 3,200,000 | ||
Deferred Compensation Plan Maximum Percentage of Deferral of Base Salary | 100.00% | ||
Percentage component of compensation allowed as deferral under deferred compensation plan | 50.00% | ||
United States Pension Plan of US Entity, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Year service cap | 35 years | ||
Defined Benefit Plan, Benefit Measure, Number of Highest Consecutive Years | 5 years | ||
Defined Benefit Plan, Benefit Measure, Number of Years Before Retirement | 10 years | ||
Year of service | 1 year | ||
Days of employment | 365 days | ||
Maximum years of service | 30 years | ||
Service credit percentage | 0.825% | ||
Additional service credit percentage | 1.425% | ||
Defined Benefit Plan, Benefit Obligation | $ 346,900,000 | $ 320,100,000 | |
Canadian Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Benefit Measure, Number of Highest Consecutive Years | 5 years | ||
Defined Benefit Plan, Benefit Measure, Number of Years Before Retirement | 10 years | ||
Defined Benefit Plan, Benefit Obligation | $ 4,200,000 | 3,800,000 | |
Defined Benefit Plan, Fair Value of Plan Assets | 4,700,000 | ||
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Benefit Obligation | 356,469,000 | 340,278,000 | $ 326,077,000 |
Plan amendments | (2,985,000) | 316,000 | |
Defined Benefit Plan, Effect of Settlements and Curtailments on Accumulated Benefit Obligation | (10,534,000) | ||
Defined Benefit Plan, Effect of Plan Amendment on Net Periodic Benefit Cost | 2,200,000 | ||
Defined Benefit Plan, Fair Value of Plan Assets | 407,081,000 | 361,956,000 | 379,638,000 |
Net amount recognized at end of year | 50,612,000 | 21,681,000 | |
Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Benefit Obligation | 1,594,000 | 1,666,000 | 1,411,000 |
Net amount recognized at end of year | (1,594,000) | (1,666,000) | |
Domestic Defined Contribution 401(k) Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Cost Recognized | $ 3,900,000 | 3,500,000 | 3,600,000 |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 3.50% | ||
Canadian Defined Contribution 401(k) Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Cost Recognized | $ 300,000 | 200,000 | $ 200,000 |
Defined Contribution Plan, Minimum Annual Contributions Per Employee, Percent | 3.00% | ||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 5.00% | ||
Management | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Deferred Compensation Plan Maximum Percentage of Deferral of Base Salary | 50.00% | ||
Percentage component of compensation allowed as deferral under deferred compensation plan | 100.00% | ||
Deferred Compensation Arrangement with Individual, Recorded Liability | $ 6,400,000 | 5,100,000 | |
Deferred Compensation Plan Assets | 6,400,000 | 5,100,000 | |
Non-employee Director | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Deferred Compensation Arrangement with Individual, Recorded Liability | $ 2,300,000 | $ 1,900,000 | |
Phantom Share Units (PSUs) | Non-employee Director | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Deferred Compensation Arrangement with Individual, Shares Issued | 69,527 | 57,234 | |
Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Target Plan Asset Allocations | 70.00% | ||
Equity Securities | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | $ 175,928,000 | $ 141,372,000 | |
Debt Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Target Plan Asset Allocations | 30.00% | ||
Equity Funds | Canadian Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Actual Plan Asset Allocations | 55.00% | ||
Bond fund | Canadian Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Actual Plan Asset Allocations | 38.00% | ||
Money Market Funds | Canadian Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Actual Plan Asset Allocations | 7.00% | ||
Alternative Investment Fund | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | $ 13,412,000 | 12,101,000 | |
Unallocated Insurance Contracts | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | $ 81,000 | $ 90,000 | |
Other Long-term Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Target Plan Asset Allocations | 97.00% | ||
Short-term Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Target Plan Asset Allocations | 3.00% |
Retirement and Other Benefit 54
Retirement and Other Benefit Plans Retirement and Other Benefit Plans (Schedule of Changes in Benefit Obligations) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Benefit obligation at beginning of year | $ 340,278 | $ 326,077 | |
Service cost | 9,705 | 8,288 | $ 12,639 |
Interest cost | 14,948 | 15,275 | 14,321 |
Plan participants’ contribution | 11 | 11 | |
Plan amendments | (2,985) | 316 | |
Actuarial loss | 18,505 | 11,155 | |
Benefits paid | (13,703) | (19,853) | |
Settlement gain | (1,304) | ||
Contractual termination benefits | 77 | ||
Curtailments | (10,534) | ||
Foreign exchange rate changes | 244 | 236 | |
Benefit obligation at end of year | 356,469 | 340,278 | 326,077 |
Other Postretirement Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Benefit obligation at beginning of year | 1,666 | 1,411 | |
Interest cost | 68 | 76 | 56 |
Plan participants’ contribution | 7 | 9 | |
Actuarial loss | 40 | 357 | |
Benefits paid | (187) | (187) | |
Benefit obligation at end of year | $ 1,594 | $ 1,666 | $ 1,411 |
Retirement and Other Benefit 55
Retirement and Other Benefit Plans Retirement and Other Benefit Plans (Schedule of Assumptions Used to Determine Benefit Obligation) | Feb. 03, 2018 | Jan. 28, 2017 |
Pension Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate | 4.00% | 4.40% |
Rate of compensation increase | 3.00% | 3.00% |
Other Postretirement Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate | 4.00% | 4.40% |
Retirement and Other Benefit 56
Retirement and Other Benefit Plans Retirement and Other Benefit Plans (Schedule of Fair Value Allocation of Plan Assets) - Pension Benefits - USD ($) $ in Thousands | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | $ 407,081 | $ 361,956 | $ 379,638 |
Cash and cash equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 8,998 | 16,484 | |
U.S. government securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 98,027 | 97,226 | |
Mutual fund | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 41,344 | 34,833 | |
Real Estate Investment Trusts | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 1,412 | 1,505 | |
Exchange Traded Funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 68,362 | 62,244 | |
Corporate stocks - common | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 175,928 | 141,372 | |
Preferred securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 703 | 706 | |
S&P 500 Index options [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | (1,186) | 4,392 | |
Interest Rate Swap [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | (8,997) | ||
Alternative Investment Fund | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 13,412 | 12,101 | |
Unallocated Insurance Contracts | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 81 | 90 | |
Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 393,588 | 358,762 | |
Level 1 | Cash and cash equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 8,998 | 16,484 | |
Level 1 | U.S. government securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 98,027 | 97,226 | |
Level 1 | Mutual fund | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 41,344 | 34,833 | |
Level 1 | Real Estate Investment Trusts | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 1,412 | 1,505 | |
Level 1 | Exchange Traded Funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 68,362 | 62,244 | |
Level 1 | Corporate stocks - common | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 175,928 | 141,372 | |
Level 1 | Preferred securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 703 | 706 | |
Level 1 | S&P 500 Index options [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | (1,186) | 4,392 | |
Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 13,412 | 3,104 | |
Level 2 | Interest Rate Swap [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | (8,997) | ||
Level 2 | Alternative Investment Fund | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 13,412 | 12,101 | |
Level 3 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 81 | 90 | |
Level 3 | Unallocated Insurance Contracts | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | $ 81 | $ 90 |
Retirement and Other Benefit 57
Retirement and Other Benefit Plans Retirement and Other Benefit Plans (Schedule of Changes in Fair Value of Plan Assets) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 03, 2018 | Jan. 28, 2017 | |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Balance, beginning of year | $ 361,956 | $ 379,638 |
Actual return on plan assets | 58,106 | 1,755 |
Employer contributions | 450 | 1,458 |
Plan participants’ contribution | 11 | 11 |
Benefits paid | (13,703) | (19,853) |
Settlement gain | (1,304) | |
Foreign exchange rate changes | 261 | 251 |
Balance, end of year | 407,081 | 361,956 |
Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Employer contributions | 180 | 178 |
Plan participants’ contribution | 7 | 9 |
Benefits paid | $ (187) | $ (187) |
Retirement and Other Benefit 58
Retirement and Other Benefit Plans Retirement and Other Benefit Plans (Schedule of Amounts Recognized in Consolidated Balance Sheet) - USD ($) $ in Thousands | Feb. 03, 2018 | Jan. 28, 2017 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Prepaid pension costs (noncurrent assets) | $ 62,575 | $ 32,489 |
Pension Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Prepaid pension costs (noncurrent assets) | 62,575 | 32,489 |
Accrued benefit liabilities (current liability) | (3,988) | (2,765) |
Accrued benefit liabilities (noncurrent liability) | (7,975) | (8,043) |
Net amount recognized at end of year | 50,612 | 21,681 |
Other Postretirement Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Accrued benefit liabilities (current liability) | (238) | (250) |
Accrued benefit liabilities (noncurrent liability) | (1,356) | (1,416) |
Net amount recognized at end of year | $ (1,594) | $ (1,666) |
Retirement and Other Benefit 59
Retirement and Other Benefit Plans Retirement and Other Benefit Plans (Schedule of Projected and Accumulated Benefit Obligation in Excess of Fair Value) - Pension Benefits - USD ($) $ in Thousands | Feb. 03, 2018 | Jan. 28, 2017 |
Projected Benefit Obligation Exceeds the Fair Value of Plan Assets | ||
Projected benefit obligation | $ 11,959 | $ 10,808 |
Accumulated benefit obligation | 10,956 | 9,646 |
Fair value of plan assets | 0 | 0 |
Accumulated Benefit Obligation Exceeds the Fair Value of Plan Assets | ||
Projected benefit obligation | 11,959 | 10,808 |
Accumulated benefit obligation | 10,956 | 9,646 |
Fair value of plan assets | $ 0 | $ 0 |
Retirement and Other Benefit 60
Retirement and Other Benefit Plans Retirement and Other Benefit Plans (Schedule of Components of Accumulated Other Comprehensive Income, Net of Tax) - USD ($) $ in Thousands | Feb. 03, 2018 | Jan. 28, 2017 |
Pension Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Net actuarial loss (gain) | $ 22,424 | $ 35,104 |
Net prior service credit | (4,618) | (4,385) |
Components of accumulated other comprehensive loss, net of tax: | 17,806 | 30,719 |
Other Postretirement Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Net actuarial loss (gain) | (634) | (635) |
Components of accumulated other comprehensive loss, net of tax: | $ (634) | $ (635) |
Retirement and Other Benefit 61
Retirement and Other Benefit Plans Retirement and Other Benefit Plans (Schedule of Expected Amortization of Components of AOCI) $ in Thousands | 12 Months Ended |
Feb. 03, 2018USD ($) | |
Pension Benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Amortization of net actuarial loss (gain) | $ 3,042 |
Amortization of net prior service credit | (1,164) |
Expected amortization, net of tax: | 1,878 |
Other Postretirement Benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Amortization of net actuarial loss (gain) | (92) |
Expected amortization, net of tax: | $ (92) |
Retirement and Other Benefit 62
Retirement and Other Benefit Plans Retirement and Other Benefit Plans (Schedule of Net Periodic Benefit Income) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | $ 9,705 | $ 8,288 | $ 12,639 |
Interest cost | 14,948 | 15,275 | 14,321 |
Expected return on assets | (27,589) | (28,949) | (31,682) |
Amortization of actuarial loss (gain) | 4,315 | 272 | 604 |
Amortization of prior service credit | (1,780) | (1,840) | (1,906) |
Settlement cost | 259 | ||
Cost of contractual termination benefits | 77 | ||
Curtailments | (2,165) | (184) | |
Total net periodic benefit income | (2,566) | (6,618) | (6,208) |
Other Postretirement Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Interest cost | 68 | 76 | 56 |
Amortization of actuarial loss (gain) | (145) | (163) | (220) |
Total net periodic benefit income | $ (77) | $ (87) | $ (164) |
Retirement and Other Benefit 63
Retirement and Other Benefit Plans Retirement and Other Benefit Plans (Schedule of Assumptions to Determine Net Periodic Benefit Income) | 12 Months Ended | ||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 4.40% | 4.70% | 3.90% |
Rate of compensation increase | 3.00% | 3.00% | 3.00% |
Expected return on plan assets | 8.00% | 8.00% | 8.25% |
Other Postretirement Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 4.40% | 4.70% | 3.90% |
Retirement and Other Benefit 64
Retirement and Other Benefit Plans Retirement and Other Benefit Plans (Schdeule of Information on Expected Cash Flows) $ in Thousands | 12 Months Ended |
Feb. 03, 2018USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2018 Employer contributions expected | $ 159 |
Defined benefit plans, estimated refund of assets (e.g. surplus) to employer | 186 |
Funded-Pension Plan, Defined Benefit | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2018 Employer contributions expected | 159 |
Defined benefit plans, estimated refund of assets (e.g. surplus) to employer | 186 |
Expected Benefit Payments: 2018 | 12,766 |
Expected Benefit Payments: 2019 | 13,363 |
Expected Benefit Payments: 2020 | 14,131 |
Expected Benefit Payments: 2021 | 14,933 |
Expected Benefit Payments: 2022 | 15,638 |
Expected Benefit Payments: 2023 - 2027 | 86,432 |
Pension Benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Expected Benefit Payments: 2018 | 16,829 |
Expected Benefit Payments: 2019 | 14,539 |
Expected Benefit Payments: 2020 | 17,210 |
Expected Benefit Payments: 2021 | 15,255 |
Expected Benefit Payments: 2022 | 16,294 |
Expected Benefit Payments: 2023 - 2027 | 88,249 |
SERP | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2018 Employer contributions expected | 4,063 |
Expected Benefit Payments: 2018 | 4,063 |
Expected Benefit Payments: 2019 | 1,176 |
Expected Benefit Payments: 2020 | 3,079 |
Expected Benefit Payments: 2021 | 322 |
Expected Benefit Payments: 2022 | 656 |
Expected Benefit Payments: 2023 - 2027 | 1,817 |
Other Postretirement Benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2018 Employer contributions expected | 243 |
Expected Benefit Payments: 2018 | 243 |
Expected Benefit Payments: 2019 | 216 |
Expected Benefit Payments: 2020 | 192 |
Expected Benefit Payments: 2021 | 169 |
Expected Benefit Payments: 2022 | 148 |
Expected Benefit Payments: 2023 - 2027 | $ 481 |
Income Taxes (Narrative)
Income Taxes (Narrative) - USD ($) | 12 Months Ended | |||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Income Tax Contingency [Line Items] | ||||
Corporate tax rate - prior to Jan 1 2018 | 35.00% | |||
Corporate tax rate - effective Jan 1 2018 | 21.00% | |||
Federal statutory rate | 33.70% | 35.00% | 35.00% | |
Income tax benefit | $ 35,475,000 | $ 31,168,000 | $ 26,942,000 | |
Deferred tax benefit for the remeasurement of DTA and DTL | (1,424,000) | (5,303,000) | 10,581,000 | |
Domestic earnings before income taxes from continuing operations | 78,200,000 | 60,900,000 | 68,200,000 | |
Foreign earnings before income taxes from continuing operations | 44,500,000 | 36,400,000 | 40,600,000 | |
Tax payments, net of refunds | 18,700,000 | 16,900,000 | 22,100,000 | |
Effective Income Tax Rate Reconciliation, Deduction, Amount | 2,300,000 | |||
Excess tax benefit from share-based compensation | $ (1,265,000) | 0 | 0 | |
Effective tax rate if discrete tax benefits had not been recognized | 30.80% | |||
Deferred Tax Assets, Operating Loss Carryforwards | $ 7,540,000 | 23,302,000 | ||
Valuation allowance release on state loss carryforwards | 1,500,000 | |||
Deferred Tax Assets, Capital Loss Carryforwards | 1,450,000 | 2,185,000 | ||
Net operating loss carryforward | $ 15,600,000 | |||
Deferred Tax Liabilities, Undistributed Foreign Earnings | 0 | |||
Tax years open to examination | 2,016 | 2,014 | ||
State | ||||
Income Tax Contingency [Line Items] | ||||
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | 7,000,000 | |||
Valuation allowance release on state loss carryforwards | $ 2,800,000 | |||
Minimum | ||||
Income Tax Contingency [Line Items] | ||||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2018 | |||
Maximum | ||||
Income Tax Contingency [Line Items] | ||||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2037 | |||
Tax Cuts and Jobs Act | ||||
Income Tax Contingency [Line Items] | ||||
Corporate tax rate - effective Jan 1 2018 | 21.00% | |||
Income tax benefit | $ (294,000) | $ 0 | $ 0 | |
Deferred tax benefit for the remeasurement of DTA and DTL | 24,600,000 | |||
Transition tax on repatriation of foreign earnings due to Tax Cuts and Jobs Act | 22,900,000 | |||
Deferred tax expense recorded in connection with section 162(m) | $ 1,400,000 |
Income Taxes (Schedule of the C
Income Taxes (Schedule of the Components of Income Tax Provision (Benefit)) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Income Tax Disclosure [Abstract] | |||
Federal: Current | $ 31,102 | $ 10,577 | $ 9,530 |
Federal: Deferred | (10,358) | 14,164 | 11,202 |
Federal income tax provision | 20,744 | 24,741 | 20,732 |
State: Current | 7,691 | 3,844 | 497 |
State: Deferred | 913 | (1,157) | 1,176 |
State inome tax provision | 8,604 | 2,687 | 1,673 |
Foreign | 6,127 | 3,740 | 4,537 |
Total income tax provision | $ 35,475 | $ 31,168 | $ 26,942 |
Income Taxes (Schedule of the D
Income Taxes (Schedule of the Differences Between the Tax Provision Reflected in the Consolidated Financial Statements and the Amounts Calculated at the Federal Statutory Income Tax Rate) - USD ($) $ in Thousands | 12 Months Ended | |||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | ||
Operating Loss Carryforwards [Line Items] | ||||
Income taxes at statutory rate | [1] | $ 41,376 | $ 34,039 | $ 38,068 |
State income taxes, net of federal tax benefit | 3,579 | 3,149 | 2,481 | |
Foreign earnings taxed at lower rates | (8,072) | (8,404) | (9,491) | |
Excess tax benefit from share-based compensation | (1,265) | 0 | 0 | |
Disposal and settlement of Shoes.com | 0 | 0 | (1,701) | |
Valuation allowance for impairment of investment in nonconsolidated affiliate | 0 | 2,450 | 0 | |
Non-deductibility of acquisition costs | 0 | 1,280 | 0 | |
Settlement of federal and state audit matters | 0 | (945) | 0 | |
Other | 251 | (222) | 587 | |
Income tax provision (benefit) | $ 35,475 | $ 31,168 | $ 26,942 | |
Federal statutory rate | 33.70% | 35.00% | 35.00% | |
State and Local Jurisdiction | ||||
Operating Loss Carryforwards [Line Items] | ||||
Valuation allowance release on other tax carryforwards | $ (100) | $ 0 | $ (1,635) | |
General Business Tax Credit Carryforward | ||||
Operating Loss Carryforwards [Line Items] | ||||
Valuation allowance release on other tax carryforwards | 0 | (179) | (1,367) | |
Tax Cuts and Jobs Act | ||||
Operating Loss Carryforwards [Line Items] | ||||
Income tax provision (benefit) | $ (294) | $ 0 | $ 0 | |
[1] | The federal statutory tax rate was 33.7% in 2017, reflecting a single month impact from tax reform, and was 35.0% in both 2016 35.0% 2015. |
Income Taxes (Schedule of Signi
Income Taxes (Schedule of Significant Components of Deferred Income Tax Assets and Liabilities) - USD ($) $ in Thousands | Feb. 03, 2018 | Jan. 28, 2017 |
Income Tax Disclosure [Abstract] | ||
Deferred Tax Assets: Employee benefits, compensation and insurance | $ 10,011 | $ 18,783 |
Deferred Tax Assets: Accrued expenses | 12,122 | 18,843 |
Deferred Tax Assets: Postretirement and postemployment benefit plans | 401 | 706 |
Deferred Tax Assets: Deferred rent | 6,438 | 8,319 |
Deferred Tax Assets: Accounts receivable reserves | 5,105 | 7,479 |
Deferred Tax Assets: Net operating loss (“NOL”) carryforward/carryback | 7,540 | 23,302 |
Deferred Tax Assets, Capital Loss Carryforwards | 1,450 | 2,185 |
Deferred Tax Assets: Inventory capitalization and inventory reserves | 3,058 | 3,871 |
Deferred Tax Assets: Impairment of investment in nonconsolidated affiliate | 1,470 | 2,590 |
Deferred Tax Assets: Alternative minimum tax credit carryforward | 270 | |
Deferred Tax Assets: Other | 1,234 | 1,580 |
Total deferred tax assets, before valuation allowance | 48,829 | 87,928 |
Valuation allowance | (5,763) | (7,890) |
Total deferred tax assets, net of valuation allowance | 43,066 | 80,038 |
Deferred Tax Liabilities: Retirement plans | (13,071) | (8,421) |
Deferred Tax Liabilities: LIFO inventory valuation | (42,032) | (61,301) |
Deferred Tax Liabilities: Capitalized software | (4,141) | (8,715) |
Deferred tax liability, Depreciation | (1,786) | (9,076) |
Deferred Tax Liabilities, Intangible Assets | (28,831) | (41,645) |
Deferred Tax Liabilities: Other | (1,567) | (1,096) |
Total deferred tax liabilities | (91,428) | (130,254) |
Deferred Tax Liabilities, Net | $ (48,362) | $ (50,216) |
Business Segment Information Bu
Business Segment Information Business Segment Information (Narrative) | Feb. 03, 2018retail_store |
Segment Reporting Information [Line Items] | |
Number of Stores | 1,262 |
Famous Footwear | |
Segment Reporting Information [Line Items] | |
Number of Stores | 1,026 |
United States | Brand Portfolio | |
Segment Reporting Information [Line Items] | |
Number of Stores | 151 |
Canada | Brand Portfolio | |
Segment Reporting Information [Line Items] | |
Number of Stores | 84 |
Italy | Brand Portfolio | |
Segment Reporting Information [Line Items] | |
Number of Stores | 1 |
Business Segment Information (S
Business Segment Information (Schedule of Business Segment Information) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 03, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Jan. 28, 2017 | Oct. 29, 2016 | Jul. 30, 2016 | Apr. 30, 2016 | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
External sales | $ 702,465 | $ 774,656 | $ 676,954 | $ 631,509 | $ 639,488 | $ 732,230 | $ 622,937 | $ 584,733 | $ 2,785,584 | $ 2,579,388 | $ 2,577,430 |
Intersegment sales | 85,124 | 91,415 | 100,186 | ||||||||
Depreciation and amortization | 64,070 | 56,131 | 51,439 | ||||||||
Operating earnings (loss) | 140,031 | 110,985 | 135,107 | ||||||||
Segment assets | 1,489,415 | 1,475,273 | 1,489,415 | 1,475,273 | 1,303,323 | ||||||
Purchases of property and equipment | 44,720 | 50,523 | 73,479 | ||||||||
Capitalized software | 6,458 | 9,039 | 6,458 | 9,039 | 7,735 | ||||||
Famous Footwear | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
External sales | 1,637,627 | 1,590,065 | 1,572,665 | ||||||||
Depreciation and amortization | 29,990 | 27,832 | 25,842 | ||||||||
Operating earnings (loss) | 92,230 | 83,735 | 109,030 | ||||||||
Segment assets | 500,862 | 526,555 | 500,862 | 526,555 | 542,842 | ||||||
Purchases of property and equipment | 22,920 | 37,697 | 48,761 | ||||||||
Capitalized software | 483 | 3,468 | 483 | 3,468 | 2,538 | ||||||
Brand Portfolio | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
External sales | 1,147,957 | 989,323 | 1,004,765 | ||||||||
Intersegment sales | 85,124 | 91,415 | 100,186 | ||||||||
Depreciation and amortization | 16,873 | 11,028 | 9,339 | ||||||||
Operating earnings (loss) | 80,212 | 76,248 | 66,578 | ||||||||
Segment assets | 814,508 | 838,328 | 814,508 | 838,328 | 534,137 | ||||||
Purchases of property and equipment | 15,865 | 8,828 | 18,340 | ||||||||
Capitalized software | 232 | 50 | 232 | 50 | 0 | ||||||
Other category | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and amortization | 17,207 | 17,271 | 16,258 | ||||||||
Operating earnings (loss) | (32,411) | (48,998) | (40,501) | ||||||||
Segment assets | 174,045 | 110,390 | 174,045 | 110,390 | 226,344 | ||||||
Purchases of property and equipment | 5,935 | 3,998 | 6,378 | ||||||||
Capitalized software | $ 5,743 | $ 5,521 | $ 5,743 | $ 5,521 | $ 5,197 |
Business Segment Information 71
Business Segment Information (Schedule of Reconciliation of Operating Earnings Before Income Taxes) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Segment Reporting [Abstract] | |||
Operating earnings | $ 140,031 | $ 110,985 | $ 135,107 |
Interest expense | (18,089) | (15,111) | (16,589) |
Loss on early extinguishment of debt | 0 | 0 | (10,651) |
Interest income | 764 | 1,380 | 899 |
Earnings before income taxes | $ 122,706 | $ 97,254 | $ 108,766 |
Business Segment Information 72
Business Segment Information (Schedule of Net Sales and Long-Lived Assets by Geographic Area) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 03, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Jan. 28, 2017 | Oct. 29, 2016 | Jul. 30, 2016 | Apr. 30, 2016 | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 702,465 | $ 774,656 | $ 676,954 | $ 631,509 | $ 639,488 | $ 732,230 | $ 622,937 | $ 584,733 | $ 2,785,584 | $ 2,579,388 | $ 2,577,430 |
Long-Lived Assets | 642,626 | 631,528 | 642,626 | 631,528 | 428,258 | ||||||
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 2,603,725 | 2,385,111 | 2,342,590 | ||||||||
Long-Lived Assets | 450,323 | 617,211 | 450,323 | 617,211 | 417,198 | ||||||
Far East | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 98,287 | 134,430 | 177,654 | ||||||||
Long-Lived Assets | 1,686 | 1,814 | 1,686 | 1,814 | 2,193 | ||||||
Europe | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Long-Lived Assets | 177,755 | 286 | 177,755 | 286 | 271 | ||||||
Canada | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 75,764 | 59,847 | 57,186 | ||||||||
Long-Lived Assets | 10,878 | 10,141 | 10,878 | 10,141 | 8,596 | ||||||
Latin America and Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 7,808 | 0 | 0 | ||||||||
Long-Lived Assets | $ 1,984 | $ 2,076 | $ 1,984 | $ 2,076 | $ 0 |
Inventories (Narrative)
Inventories (Narrative) - USD ($) $ in Millions | Feb. 03, 2018 | Jan. 28, 2017 |
Inventory Disclosure [Abstract] | ||
Consigned inventory | $ 1.4 | $ 1.6 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventories) - USD ($) $ in Thousands | Feb. 03, 2018 | Jan. 28, 2017 |
Inventory [Line Items] | ||
Raw materials | $ 17,531 | $ 15,378 |
Work-in-process | 689 | 1,093 |
Finished goods | 551,159 | 569,293 |
Inventories, net | $ 569,379 | $ 585,764 |
Property and Equipment (Narrati
Property and Equipment (Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |||
Impairment charges for property and equipment | $ 3,775 | $ 1,586 | $ 2,761 |
Interest Costs Capitalized | $ 0 | $ 1,400 | $ 300 |
Property and Equipment (Schedul
Property and Equipment (Schedule of Property and Equipment) - USD ($) $ in Thousands | Feb. 03, 2018 | Jan. 28, 2017 |
Property and Equipment [Line Items] | ||
Property and Equipment, Gross | $ 542,812 | $ 531,104 |
Allowances for Depreciation | 330,013 | 311,908 |
Property and equipment, net | 212,799 | 219,196 |
Land and Building | ||
Property and Equipment [Line Items] | ||
Property and Equipment, Gross | 49,621 | 40,363 |
Leasehold Improvements | ||
Property and Equipment [Line Items] | ||
Property and Equipment, Gross | 233,034 | 215,347 |
Technology Equipment | ||
Property and Equipment [Line Items] | ||
Property and Equipment, Gross | 53,070 | 52,680 |
Machinery and Equipment | ||
Property and Equipment [Line Items] | ||
Property and Equipment, Gross | 67,778 | 67,245 |
Furniture and Fixtures | ||
Property and Equipment [Line Items] | ||
Property and Equipment, Gross | 131,884 | 148,473 |
Construction in Progress | ||
Property and Equipment [Line Items] | ||
Property and Equipment, Gross | $ 7,425 | $ 6,996 |
Property and Equipment (Sched77
Property and Equipment (Schedule of Useful Lives of Property and Equipment) | 12 Months Ended |
Feb. 03, 2018 | |
Building | Minimum | |
Property and Equipment [Line Items] | |
Property and Equipment, Useful Life | 5 years |
Building | Maximum | |
Property and Equipment [Line Items] | |
Property and Equipment, Useful Life | 30 years |
Leasehold Improvements | Minimum | |
Property and Equipment [Line Items] | |
Property and Equipment, Useful Life | 5 years |
Leasehold Improvements | Maximum | |
Property and Equipment [Line Items] | |
Property and Equipment, Useful Life | 20 years |
Technology Equipment | Minimum | |
Property and Equipment [Line Items] | |
Property and Equipment, Useful Life | 2 years |
Technology Equipment | Maximum | |
Property and Equipment [Line Items] | |
Property and Equipment, Useful Life | 10 years |
Machinery and Equipment | Minimum | |
Property and Equipment [Line Items] | |
Property and Equipment, Useful Life | 4 years |
Machinery and Equipment | Maximum | |
Property and Equipment [Line Items] | |
Property and Equipment, Useful Life | 20 years |
Furniture and Fixtures | Minimum | |
Property and Equipment [Line Items] | |
Property and Equipment, Useful Life | 3 years |
Furniture and Fixtures | Maximum | |
Property and Equipment [Line Items] | |
Property and Equipment, Useful Life | 10 years |
Goodwill and Intangible Asset78
Goodwill and Intangible Assets (Narrative) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Jan. 28, 2017 | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | Dec. 13, 2016 | ||
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible Assets | $ 102,900 | |||||
Intangible assets not subject to amortization | [1] | $ 117,900 | $ 118,100 | $ 117,900 | ||
Goodwill, Acquired During Period | $ 113,100 | |||||
Amortization of intangible assets | 4,073 | 3,705 | $ 3,688 | |||
Intangible assets, estimated amortization expense in 2018 | 4,100 | |||||
Intangible assets, estimated amortization expense in 2019 | 4,100 | |||||
Intangible assets, estimated amortization expense in 2020 | 4,100 | |||||
Intangible assets, estimated amortization expense in 2021 | 4,100 | |||||
Intangible assets, estimated amortization expense in 2022 | 4,100 | |||||
Primarily Owned and Licensed Trademarks | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Amortization of intangible assets | $ 4,100 | 3,700 | ||||
Customer Relationships | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible assets acquired | $ 5,400 | |||||
Intangible assets, estimated useful lives | 15 years | 15 years | ||||
Primarily Owned and Licensed Trademarks | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Indefinite-lived Intangible Assets Acquired | $ 97,500 | |||||
[1] | The Allen Edmonds trademark and customer relationships intangible assets were acquired in the Allen Edmonds acquisition, as further discussed in Note 2 to the consolidated financial statements. Immaterial adjustments attributable to the purchase price allocation were recorded during 2017, resulting in an adjustment to the original cost. |
Goodwill and Intangible Asset79
Goodwill and Intangible Assets (Schedule of Goodwill and Intangible Assets) - USD ($) $ in Thousands | Feb. 03, 2018 | Jan. 28, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross (Excluding Goodwill) | $ 288,788 | $ 289,288 |
Accumulated amortization | (76,701) | (72,628) |
Intangible assets, net | 212,087 | 216,660 |
Goodwill | 127,081 | 127,098 |
Goodwill and intangible assets, net | 339,168 | 343,758 |
Famous Footwear | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross (Excluding Goodwill) | 2,800 | 2,800 |
Brand Portfolio | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross (Excluding Goodwill) | 285,988 | 286,488 |
Goodwill | $ 127,081 | $ 127,098 |
Goodwill and Intangible Asset80
Goodwill and Intangible Assets Goodwill and Intangible Assets (Schedule of Finite and Indefinite-Lived Intangible Assets) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2018 | Jan. 28, 2017 | ||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Accumulated Amortization | $ 76,701 | $ 72,628 | |
Intangible assets not subject to amortization | [1] | 118,100 | 117,900 |
Intangible Assets, Gross (Excluding Goodwill) | 288,788 | 289,288 | |
Intangible assets, net | 212,087 | 216,660 | |
Primarily Owned and Licensed Trademarks | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 165,288 | 165,288 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 76,296 | 72,604 | |
Finite-Lived Intangible Assets, Net | $ 88,992 | $ 92,684 | |
Primarily Owned and Licensed Trademarks | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, estimated useful lives | 15 years | 15 years | |
Primarily Owned and Licensed Trademarks | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, estimated useful lives | 40 years | 40 years | |
Customer Relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, estimated useful lives | 15 years | 15 years | |
Finite-Lived Intangible Assets, Gross | [1] | $ 5,400 | $ 6,100 |
Finite-Lived Intangible Assets, Accumulated Amortization | 405 | 24 | |
Finite-Lived Intangible Assets, Net | $ 4,995 | $ 6,076 | |
[1] | The Allen Edmonds trademark and customer relationships intangible assets were acquired in the Allen Edmonds acquisition, as further discussed in Note 2 to the consolidated financial statements. Immaterial adjustments attributable to the purchase price allocation were recorded during 2017, resulting in an adjustment to the original cost. |
Long-Term and Short-Term Fina81
Long-Term and Short-Term Financing Arrangements (Narrative) - USD ($) $ in Thousands | Aug. 26, 2015 | Jul. 27, 2015 | Jul. 24, 2015 | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | May 11, 2011 |
Debt Instrument [Line Items] | |||||||
Borrowings under revolving credit agreement | $ 0 | $ 110,000 | |||||
Cash payments of interest for financing arrangements | 16,500 | 15,200 | $ 11,900 | ||||
Loss on early extinguishment of debt | 0 | 0 | (10,651) | ||||
Extinguishment of debt, non-cash | 3,000 | ||||||
Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Maximum Borrowing Capacity | 600,000 | ||||||
Line of Credit Borrowing Capacity Increase Option | $ 150,000 | ||||||
Line of Credit Facility, Initiation Date | Dec. 18, 2014 | ||||||
Expiration date | Dec. 18, 2019 | ||||||
Facility Percentage of Borrowing Base Under Condition One | 12.50% | ||||||
Number of consecutive business days for borrowing base availability over minimum under condition one | 30 days | ||||||
Percentage Of Borrowing Base Under Condition Two | 10.00% | ||||||
Borrowing Base Availability Under Condition Two | $ 50,000 | ||||||
Fixed Charge Coverage Ratio | 100.00% | ||||||
Maximum amount of borrowings under either the Credit Agreement or Former Credit Agreement at the end of any month | $ 260,000 | 260,000 | |||||
Average daily borrowings | $ 93,500 | $ 34,800 | |||||
Weighted average interest rate | 2.50% | 2.70% | |||||
Borrowings under revolving credit agreement | $ 0 | ||||||
Letters of credit outstanding under the Credit Agreement | 10,400 | ||||||
Additional borrowing availability under Credit Agreement | $ 535,200 | ||||||
2019 Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 200,000 | ||||||
Debt instrument, interest rate | 7.125% | ||||||
Principal Amount Redeemed in Tender Offer | $ 39,300 | $ 160,700 | |||||
Debt Instrument, Redemption Price, Percentage | 103.563% | 103.95% | |||||
2023 Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 200,000 | ||||||
Debt instrument, interest rate | 6.25% | ||||||
Debt Instrument, Redemption Price, Percentage | 101.00% | ||||||
Proceeds from Issuance of Debt | $ 196,300 | ||||||
Debt instrument, maturity date | Aug. 15, 2023 |
Long-Term and Short-Term Fina82
Long-Term and Short-Term Financing Arrangements (Schedule of Redemption Price Percentages) - 2023 Senior Notes | 12 Months Ended |
Feb. 03, 2018 | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 101.00% |
2,018 | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 104.688% |
2,019 | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 103.125% |
2,020 | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 101.563% |
2021 and thereafter | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 100.00% |
Leases (Narrative)
Leases (Narrative) | 12 Months Ended |
Feb. 03, 2018 | |
Retail Site | |
Operating Leased Assets [Line Items] | |
Leases subject to renewal options, percentage | 45.00% |
Manufacturing Facility | |
Operating Leased Assets [Line Items] | |
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 8 years |
Minimum | Retail Site | |
Operating Leased Assets [Line Items] | |
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 5 years |
Minimum | Office Building | |
Operating Leased Assets [Line Items] | |
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 10 years |
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 5 years |
Maximum | Retail Site | |
Operating Leased Assets [Line Items] | |
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 10 years |
Maximum | Office Building | |
Operating Leased Assets [Line Items] | |
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 20 years |
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 20 years |
Leases (Schedule of Summary of
Leases (Schedule of Summary of Rent Expense for Operating Leases) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Leases [Abstract] | |||
Minimum Rent | $ 171,980 | $ 160,806 | $ 149,902 |
Contingent Rentals | 513 | 470 | 520 |
Sublease Income | (1,705) | (1,665) | (1,223) |
Total | $ 170,788 | $ 159,611 | $ 149,199 |
Leases (Schedule of Future Mini
Leases (Schedule of Future Minimum Payments under Noncancelable Operating Leases with an Initial Term of One Year or More) $ in Thousands | Feb. 03, 2018USD ($) | |
Leases [Abstract] | ||
2,018 | $ 177,056 | |
2,019 | 146,218 | |
2,020 | 126,898 | |
2,021 | 103,692 | |
2,022 | 82,402 | |
Thereafter | 229,157 | |
Total Minimum Operating Lease Payments | 865,423 | [1] |
Future minimum sublease rental income | $ 600 | |
[1] | Minimum operating lease payments have not been reduced by minimum sublease rental income of $0.6 million due in the future under noncancelable sublease agreements. |
Risk Management and Derivativ86
Risk Management and Derivatives (Narrative) | 12 Months Ended | |
Feb. 03, 2018 | Jan. 28, 2017 | |
Derivative [Line Items] | ||
Number of countries sold to | 57 | |
Forward contracts | ||
Derivative [Line Items] | ||
Derivative, Maturity Date | Feb. 1, 2019 | Feb. 2, 2018 |
Risk Management and Derivativ87
Risk Management and Derivatives Risk Management and Derivatives (Schedule of all Purchase and Sale Contracts of a Foreign Currency) - Forward contracts - USD ($) $ in Thousands | Feb. 03, 2018 | Jan. 28, 2017 |
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 51,166 | $ 42,088 |
Euro | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 21,223 | 13,297 |
U.S. Dollars (Purchased By The Company's Canadian Division with Canadian Dollars) | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 16,874 | 18,826 |
Chinese yuan | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 12,058 | 7,723 |
New Taiwanese dollars | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 596 | 526 |
United Arab Emirates dirham | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 0 | 823 |
Japanese yen | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 0 | 769 |
Other Currencies | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 415 | $ 124 |
Risk Management and Derivativ88
Risk Management and Derivatives (Schedule of Fair Values of Derivative Instruments Designated as Hedging Instruments Included within the Consolidated Balance Sheet) - USD ($) $ in Thousands | Feb. 03, 2018 | Jan. 28, 2017 |
Prepaid expenses and other current assets | ||
Derivative [Line Items] | ||
Asset Derivatives, Fair Value | $ 1,540 | $ 234 |
Other accrued expenses | ||
Derivative [Line Items] | ||
Liability Derivatives, Fair Value | $ 542 | $ 874 |
Risk Management and Derivativ89
Risk Management and Derivatives (Schedule of Effect of Derivative Instruments in Cash Flow Hedging Relationships on the Consolidated Statements of Earnings) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 03, 2018 | Jan. 28, 2017 | |
Net sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
(Loss) Gain Recognized in OCI on Derivatives | $ (25) | $ (61) |
Gain (Loss) Reclassified from Accumulated OCI into Earnings | 30 | (125) |
Cost of goods sold | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
(Loss) Gain Recognized in OCI on Derivatives | 1,144 | (1,308) |
Gain (Loss) Reclassified from Accumulated OCI into Earnings | 171 | 64 |
Selling and administrative expenses | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
(Loss) Gain Recognized in OCI on Derivatives | 1,011 | (359) |
Gain (Loss) Reclassified from Accumulated OCI into Earnings | 157 | (441) |
Interest expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
(Loss) Gain Recognized in OCI on Derivatives | (1) | (21) |
Gain (Loss) Reclassified from Accumulated OCI into Earnings | $ (1) | $ (4) |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||
Feb. 03, 2018 | Jan. 28, 2017 | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Percentage component of compensation allowed as deferral under deferred compensation plan | 50.00% | ||||
Deferred Compensation Plan Maximum Percentage of Deferral of Base Salary | 100.00% | ||||
Long-lived assets held and used assessed for indicators of impairment and written down to their fair value | $ 112.5 | $ 99.4 | $ 92.9 | ||
Restructuring and other special charges, net | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Asset Impairment Charges | $ 7 | ||||
Restricted Stock Units for Non-Employee Directors | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Non-employee director RSUs shares payable in cash converted to RSUs payable in common stock | 210,302 | 210,302 | |||
Performance share units | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Requisite service period | 3 years | ||||
Minimum | Performance share units | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Payout percentage | 0.00% | ||||
Maximum | Performance share units | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Payout percentage | 200.00% | ||||
Other Restructuring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impairment of assets held for sale after tax | $ 0.3 | ||||
Other Restructuring | Brand Portfolio | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impairment of assets held for sale after tax | $ 3.3 | ||||
Impairment of assets held for sale per diluted share | $ 0.08 | ||||
Other Restructuring | Restructuring and other special charges, net | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impairment of assets held for sale after tax | $ 7 | $ 7 | |||
Impairment of assets held for sale per diluted share | $ 0.16 | $ 0.16 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis) - USD ($) $ in Thousands | Feb. 03, 2018 | Jan. 28, 2017 |
Non-qualified deferred compensation plan liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liability, Fair Value | $ (6,445) | $ (5,051) |
Non-qualified deferred compensation plan liabilities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liability, Fair Value | (6,445) | (5,051) |
Non-qualified deferred compensation plan liabilities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liability, Fair Value | 0 | 0 |
Non-qualified deferred compensation plan liabilities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liability, Fair Value | 0 | 0 |
Deferred compensation plan liabilities for non-employee directors | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liability, Fair Value | (2,289) | (1,909) |
Deferred compensation plan liabilities for non-employee directors | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liability, Fair Value | (2,289) | (1,909) |
Deferred compensation plan liabilities for non-employee directors | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liability, Fair Value | 0 | 0 |
Deferred compensation plan liabilities for non-employee directors | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liability, Fair Value | 0 | 0 |
Restricted Stock Units (RSUs) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liability, Fair Value | (4,343) | (9,390) |
Restricted Stock Units (RSUs) | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liability, Fair Value | (4,343) | (9,390) |
Restricted Stock Units (RSUs) | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liability, Fair Value | 0 | 0 |
Restricted Stock Units (RSUs) | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liability, Fair Value | 0 | 0 |
Performance shares | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liability, Fair Value | (3,352) | |
Performance shares | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liability, Fair Value | (3,352) | |
Performance shares | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liability, Fair Value | 0 | |
Performance shares | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liability, Fair Value | 0 | |
Derivative financial instruments, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liability, Fair Value | 640 | |
Derivative financial instruments, net | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liability, Fair Value | 0 | |
Derivative financial instruments, net | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liability, Fair Value | 640 | |
Derivative financial instruments, net | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liability, Fair Value | 0 | |
Cash equivalents - money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset, Fair Value | 53,106 | 27,530 |
Cash equivalents - money market funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset, Fair Value | 53,106 | 27,530 |
Cash equivalents - money market funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset, Fair Value | 0 | 0 |
Cash equivalents - money market funds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset, Fair Value | 0 | 0 |
Non-qualified deferred compensation plan assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset, Fair Value | 6,445 | 5,051 |
Non-qualified deferred compensation plan assets | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset, Fair Value | 6,445 | 5,051 |
Non-qualified deferred compensation plan assets | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset, Fair Value | 0 | 0 |
Non-qualified deferred compensation plan assets | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset, Fair Value | 0 | $ 0 |
Derivative financial instruments, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset, Fair Value | 998 | |
Derivative financial instruments, net | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset, Fair Value | 0 | |
Derivative financial instruments, net | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset, Fair Value | 998 | |
Derivative financial instruments, net | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset, Fair Value | $ 0 |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements (Schedule of Impairment Charges by Segment) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment charges for property and equipment | $ 3,775 | $ 1,586 | $ 2,761 |
Selling and administrative expenses | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment charges for property and equipment | 3,775 | 1,586 | 2,761 |
Famous Footwear | Selling and administrative expenses | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment charges for property and equipment | 677 | 211 | 1,159 |
Brand Portfolio | Selling and administrative expenses | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment charges for property and equipment | $ 3,098 | $ 1,375 | $ 1,602 |
Fair Value Measurements (Sche93
Fair Value Measurements (Schedule of Fair Value of Financial Instruments) - USD ($) $ in Thousands | Feb. 03, 2018 | Jan. 28, 2017 |
Fair Value Disclosures [Abstract] | ||
Borrowings under revolving credit agreement | $ 0 | $ 110,000 |
Borrowings under revolving credit agreement, fair value | 0 | 110,000 |
Long-term debt - Senior Notes, carrying amount | 197,472 | 197,003 |
Long-term debt - Senior Notes, fair value | 210,000 | 209,000 |
Total debt | 197,472 | 307,003 |
Total debt, fair value | $ 210,000 | $ 319,000 |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) - shares | 12 Months Ended | 77 Months Ended | |||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | Feb. 03, 2018 | Aug. 25, 2011 | |
Shareholders' Equity [Line Items] | |||||
Share Repurchase Program, Authorized Amount | 2,500,000 | 2,500,000 | 2,500,000 | ||
Shares repurchased during period under share repurchase program | 225,000 | 900,000 | 151,500 | 1,300,000 | |
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 1,200,000 | 1,200,000 | |||
Repurchases Related To Employee Share Based Awards | |||||
Shareholders' Equity [Line Items] | |||||
Exercised | 141,713 | 205,569 | 222,110 |
Shareholders' Equity (Schedule
Shareholders' Equity (Schedule of Accumulated Other Comprehensive Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance, beginning | $ (30,434) | ||
Income tax provision (benefit) | 35,475 | $ 31,168 | $ 26,942 |
Other comprehensive income (loss), net of tax | 21,011 | (24,617) | (8,645) |
Balance, ending | (15,170) | (30,434) | |
Foreign Currency Translation | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance, beginning | 192 | (900) | (745) |
Other comprehensive income (loss) before reclassifications | 1,043 | 1,092 | (155) |
Other comprehensive income (loss), net of tax | 1,043 | 1,092 | (155) |
Reclassification of stranded tax effects | 0 | ||
Balance, ending | 1,235 | 192 | (900) |
Pension and Other Postretirement Transactions | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance, beginning | (30,084) | (5,356) | 3,233 |
Other comprehensive income (loss) before reclassifications | 18,627 | (23,888) | (7,559) |
Reclassification from accumulated other comprehensive income | 225 | (1,395) | (1,706) |
Income tax provision (benefit) | (58) | 555 | 676 |
Net reclassifications | 167 | (840) | (1,030) |
Other comprehensive income (loss), net of tax | 18,794 | (24,728) | (8,589) |
Reclassification of stranded tax effects | (5,882) | ||
Balance, ending | (17,172) | (30,084) | (5,356) |
Derivative Transactions | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance, beginning | (542) | 392 | 224 |
Other comprehensive income (loss) before reclassifications | 1,337 | (1,255) | 74 |
Reclassification from accumulated other comprehensive income | (357) | 506 | 177 |
Income tax provision (benefit) | 121 | (185) | (83) |
Net reclassifications | (236) | 321 | 94 |
Other comprehensive income (loss), net of tax | 1,101 | (934) | 168 |
Reclassification of stranded tax effects | 208 | ||
Balance, ending | 767 | (542) | 392 |
AOCI Including Portion Attributable to Noncontrolling Interest | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance, beginning | (30,434) | (5,864) | 2,712 |
Other comprehensive income (loss) before reclassifications | 21,007 | (24,051) | (7,640) |
Reclassification from accumulated other comprehensive income | (132) | (889) | (1,529) |
Income tax provision (benefit) | 63 | 370 | 593 |
Net reclassifications | (69) | (519) | (936) |
Other comprehensive income (loss), net of tax | 20,938 | (24,570) | (8,576) |
Reclassification of stranded tax effects | (5,674) | ||
Balance, ending | $ (15,170) | $ (30,434) | $ (5,864) |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 11,298 | $ 7,725 | $ 7,491 | |
Shares of common stock issued during the period | (293,470) | (203,066) | (59,682) | |
Excess tax benefit from share-based compensation | $ (1,265) | $ 0 | $ 0 | |
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | 2,251 | 2,651 | ||
Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 7,657 | $ 5,858 | $ 6,027 | |
Granted | 392,812 | 402,100 | 318,921 | |
Fair value of RSA's vested | $ 4,700 | $ 4,000 | $ 6,900 | |
Unrecognized compensation cost related to nonvested grants | $ 15,100 | |||
Weighted-average remaining requisite service period | 2 years 6 months | |||
Performance share units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 3,508 | $ 1,829 | $ 1,398 | |
Granted | 169,500 | 159,000 | 177,921 | |
Unrecognized compensation cost related to nonvested grants | $ 4,500 | |||
Weighted-average remaining requisite service period | 1 year 9 months 18 days | |||
Requisite service period | 3 years | |||
Restricted Stock Units for Non-Employee Directors | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 1,645 | $ 2,459 | $ 704 | |
Granted | [1],[2] | 48,351 | ||
Fair value of RSA's vested | $ 1,349 | 1,086 | $ 1,049 | |
Non-employee director RSUs shares payable in cash converted to RSUs payable in common stock | 210,302 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Intrinsic Value | $ 11,200 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Vested, Intrinsic Value | 9,800 | |||
Liabilities associated with accrued RSUs | 4,300 | 9,400 | ||
Non-employee director RSUs payable in cash converted to RSUs payable in common stock | 6,300 | |||
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 12.81 | |||
Share-based compensation expense | $ 67 | 38 | $ 66 | |
Weighted-average remaining requisite service period | 1 year 7 months 6 days | |||
Vesting period, in years | 4 years | |||
Stock option term | 10 years | |||
Options granted | 16,667 | |||
Aggregate intrinsic value of stock options outstanding | $ 1,200 | |||
Aggregate intrinsic value of stock options exercisable | 1,100 | |||
Intrinsic value of stock options exercised | $ 300 | 1,400 | $ 1,300 | |
Cash received from exercise of stock options | $ 600 | $ 400 | ||
Shares tendered by employees in satisfaction of the exercise price of stock options | 9,622 | 39,402 | 32,139 | |
Total grant date fair value of stock options vested | $ 100 | |||
Unrecognized compensation cost related to nonvested stock options | $ 100 | |||
Cash-based awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 100 | $ 2,900 | $ 5,100 | |
One year cliff-vesting period | Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted | 4,492 | |||
Four year cliff-vesting period | Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted | 376,320 | 357,100 | 306,421 | |
Four year graded-vesting period | Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted | 12,000 | 45,000 | ||
Five year cliff-vesting period | Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted | 12,500 | |||
Minimum | Performance share units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Payout percentage | 0.00% | |||
Maximum | Performance share units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted | 339,000 | 318,000 | 355,842 | |
Payout percentage | 200.00% | |||
[1] | Granted RSUs include 3,431 RSUs resulting from dividend equivalents paid on outstanding RSUs, of which 2,980 related to outstanding vested RSUs and 451 to outstanding nonvested RSUs. | |||
[2] | Total number of RSUs as of February 3, 2018 includes 210,759 RSUs payable in shares and 179,206 RSUs payable in cash. |
Share-Based Compensation (Sched
Share-Based Compensation (Schedule of Share-based Compensation by Plan) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 11,298 | $ 7,725 | $ 7,491 |
Restricted stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | 7,657 | 5,858 | 6,027 |
Performance shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | 3,508 | 1,829 | 1,398 |
RSUs for non-employee directors payable in shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | 66 | 0 | 0 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | $ 67 | $ 38 | $ 66 |
Share-Based Compensation (Sch98
Share-Based Compensation (Schedule of Restricted Stock Activity) - Restricted stock - $ / shares | 12 Months Ended | |||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Nonvested | 1,174,801 | 1,128,049 | 1,262,449 | 1,562,470 |
Nonvested, Weighted Average Grant Date Fair Value | $ 27.92 | $ 25.85 | $ 19.55 | $ 15.61 |
Granted | 392,812 | 402,100 | 318,921 | |
Granted, Weighted Average Grant Date Fair Value | $ 27.07 | $ 27.55 | $ 30.02 | |
Vested | (267,585) | (428,750) | (492,092) | |
Vested, Weighted Average Grant Date Fair Value | $ 17.55 | $ 9.29 | $ 14.10 | |
Forfeited | (78,475) | (107,750) | (126,850) | |
Forfeited, Weighted Average Grant Date Fair Value | $ 29.26 | $ 24.24 | $ 18.74 |
Share-Based Compensation (Sch99
Share-Based Compensation (Schedule of Performance Share Activity) - Performance shares - $ / shares | 12 Months Ended | |||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Nonvested | 399,627 | 402,499 | 307,524 | 148,535 |
Nonvested, Weighted Average Grant Date Fair Value | $ 27.45 | $ 28.36 | $ 27.14 | $ 23.39 |
Granted | 169,500 | 159,000 | 177,921 | |
Granted, Weighted Average Grant Date Fair Value | $ 26.90 | $ 26.64 | $ 30.12 | |
Vested | (160,372) | (56,175) | (15,182) | |
Vested, Weighted Average Grant Date Fair Value | $ 29.16 | $ 17 | $ 24.71 | |
Forfeited | (12,000) | (7,850) | (3,750) | |
Forfeited, Weighted Average Grant Date Fair Value | $ 27.46 | $ 27.14 | $ 29.47 | |
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Nonvested | 799,254 | 804,998 | 615,048 | 297,070 |
Granted | 339,000 | 318,000 | 355,842 | |
Vested | (320,744) | (112,350) | (30,364) | |
Forfeited | (24,000) | (15,700) | (7,500) |
Share-Based Compensation (Sc100
Share-Based Compensation (Schedule of Fair Value Assumptions Used) - Stock options | 12 Months Ended |
Jan. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Dividend yield | 1.00% |
Expected volatility | 45.50% |
Risk-free interest rate | 1.80% |
Expected term (in years) | 7 years |
Share-Based Compensation (Sc101
Share-Based Compensation (Schedule of Stock options Outstanding and Exercisable) - Stock options - $ / shares | 12 Months Ended | |
Feb. 03, 2018 | Jan. 28, 2017 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Number of Options | 81,042 | 150,540 |
Weighted- Average Remaining Life (Years) | 3 years 2 months 5 days | |
Weighted- Average Exercise Price | $ 13.53 | $ 20.25 |
Number of Options | 59,375 | |
Weighted average remaining life (years) | 2 years 3 months 11 days | |
Weighted- Average Exercise Price | $ 9.99 | |
$3.33 - $5.99 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Number of Options | 17,000 | |
Weighted- Average Remaining Life (Years) | 1 year 26 days | |
Weighted- Average Exercise Price | $ 3.49 | |
Number of Options | 12,000 | |
Weighted average remaining life (years) | 1 year 22 days | |
Weighted- Average Exercise Price | $ 3.56 | |
$6.00 - $9.17 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Number of Options | 14,875 | |
Weighted- Average Remaining Life (Years) | 3 years 4 months 9 days | |
Weighted- Average Exercise Price | $ 8.05 | |
Number of Options | 14,875 | |
Weighted average remaining life (years) | 3 years 4 months 9 days | |
Weighted- Average Exercise Price | $ 8.05 | |
$9.18 - $14.60 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Number of Options | 16,000 | |
Weighted- Average Remaining Life (Years) | 3 years 1 month 13 days | |
Weighted- Average Exercise Price | $ 11.22 | |
Number of Options | 16,000 | |
Weighted average remaining life (years) | 3 years 1 month 13 days | |
Weighted- Average Exercise Price | $ 11.22 | |
$14.61 - $22.34 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Number of Options | 16,500 | |
Weighted- Average Remaining Life (Years) | 1 year 4 months 13 days | |
Weighted- Average Exercise Price | $ 15.23 | |
Number of Options | 16,500 | |
Weighted average remaining life (years) | 1 year 4 months 13 days | |
Weighted- Average Exercise Price | $ 15.23 | |
$22.35 - $29.18 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Number of Options | 16,667 | |
Weighted- Average Remaining Life (Years) | 7 years 15 days | |
Weighted- Average Exercise Price | $ 29.18 |
Share-Based Compensation (Sc102
Share-Based Compensation (Schedule of Stock Option Activity) - Stock options | 12 Months Ended |
Feb. 03, 2018$ / sharesshares | |
Number of Options (in shares) | |
Outstanding at January 28, 2017 | shares | 150,540 |
Exercised | shares | (21,250) |
Forfeited | shares | 0 |
Canceled or expired | shares | (48,248) |
Outstanding at February 3, 2018 | shares | 81,042 |
Exercisable | shares | 59,375 |
Weighted-average exercise price, outstanding | $ / shares | $ 20.25 |
Exercised in Period, Weighted Average Exercise Price | $ / shares | 12.55 |
Forfeited, Weighted Average Exercise Price | $ / shares | 0 |
Canceled or Expired, Weighted Average Exercise Price | $ / shares | 34.94 |
Weighted-average exercise price, outstanding | $ / shares | 13.53 |
Weighted-average exercise price, exercisable | $ / shares | $ 9.99 |
Share-Based Compensation (Sc103
Share-Based Compensation (Schedule of Nonvested Stock Option Activity) - Stock options - $ / shares | 12 Months Ended | |
Feb. 03, 2018 | Jan. 28, 2017 | |
Number of Options (in shares) | ||
Number of Nonvested Options | 21,667 | 26,667 |
Vested | (5,000) | |
Nonvested, Weighted Average Grant Date Fair Value | $ 10.11 | $ 8.42 |
Vested, Weighted Average Grant Date Fair Value | $ 1.12 |
Share-Based Compensation (Sc104
Share-Based Compensation (Schedule of Restricted Stock Unit Activity) - $ / shares | 12 Months Ended | ||
Feb. 03, 2018 | Jan. 28, 2017 | ||
Restricted Stock Units for Non-Employee Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted Stock Units | [1] | 389,965 | 351,970 |
RSUs payable in shares | 210,759 | ||
Accrued Restricted Stock Units | [2] | 373,059 | 334,570 |
Nonvested, Weighted Average Grant Date Fair Value | $ 24.29 | $ 21.74 | |
Granted | [1],[3] | 48,351 | |
Accrued Granted RSUs | [2],[3] | 33,378 | |
Non-Vested RSU Granted, Weighted Average Grant Date Fair Value | [3] | $ 27.84 | |
Accrued RSUs Vested | [2] | 15,467 | |
Nonvested RSUs, Weighted Average Grant Date Fair Value | $ 24.89 | ||
Number of RSUs Settled | [1] | (10,356) | |
Accrued Number of RSU's Settled | [2] | (10,356) | |
Nonvested RSU's Settled, Weighted Average Grant Date Fair Value | $ 26.68 | ||
Director RSUs payable in shares | 179,206 | ||
Restricted Stock Units for Non-Employee Directors | Number of vested RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted Stock Units | 299,770 | ||
Granted | [3] | 2,980 | |
Vested | (46,851) | ||
Number of RSUs Settled | (10,356) | ||
Vested RSU's | 339,245 | ||
Restricted Stock Units for Non-Employee Directors | Number of nonvested RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Nonvested | 50,720 | 52,200 | |
Granted | [3] | 45,371 | |
Vested | (46,851) | ||
Resulting from dividend equivalents paid on outstanding RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted Stock Units | 3,431 | ||
Related to outstanding vested RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted Stock Units | 2,980 | ||
Related to outstanding nonvested RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted Stock Units | 451 | ||
[1] | Total number of RSUs as of February 3, 2018 includes 210,759 RSUs payable in shares and 179,206 RSUs payable in cash. | ||
[2] | Accrued RSUs include all fully vested awards and a pro-rata portion of nonvested awards based on the elapsed portion of the vesting period. | ||
[3] | Granted RSUs include 3,431 RSUs resulting from dividend equivalents paid on outstanding RSUs, of which 2,980 related to outstanding vested RSUs and 451 to outstanding nonvested RSUs. |
Share-Based Compensation (Sc105
Share-Based Compensation (Schedule of Information about Restricted Stock Units Granted, Vested and Settled) - Restricted Stock Units for Non-Employee Directors - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted, Weighted Average Grant Date Fair Value | [1] | $ 27.93 | $ 21.95 | $ 31.54 |
Fair value of RSA's vested | $ 1,349 | $ 1,086 | $ 1,049 | |
RSU's Settled | 10,356 | 52,524 | 21,698 | |
[1] | Includes dividend equivalents granted on outstanding RSUs, which vest immediately. |
Share-Based Compensation (Sc106
Share-Based Compensation (Schedule of Restricted Stock Units Compensation Expense) - Restricted Stock Units for Non-Employee Directors - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 1,645 | $ 2,459 | $ 704 |
Less: Income tax benefit | 620 | 956 | 276 |
Total share-based compensation expense, net of income tax benefit | $ 1,025 | $ 1,503 | $ 428 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Caleres, Inc. | |||
Related Party Transaction [Line Items] | |||
Joint venture, ownership percentage | 51.00% | ||
C. Banner International Holdings Limited | |||
Related Party Transaction [Line Items] | |||
Joint venture, ownership percentage | 49.00% | ||
B&H Footwear | |||
Related Party Transaction [Line Items] | |||
Sales to related parties | $ 0 | $ 5.4 | $ 8.4 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) - Redfield Site | 12 Months Ended |
Feb. 03, 2018USD ($) | |
Loss Contingencies [Line Items] | |
Cumulative expenditures for both on-site and off-site remediation | $ 30,000,000 |
Environmental Exit Costs, Assets Previously Disposed, Liability for Remediation | 9,400,000 |
Reserve for anticipated future remediation activities for off-site remediation | 4,900,000 |
Reserve for anticipated future remediation activities for on-site remediation | $ 4,500,000 |
Liability for on-site remediation, discounted rate | 4.80% |
On-site remediation liability, undiscounted basis | $ 14,100,000 |
Expected on-site remediation liability, year one | 200,000 |
Expected on-site remediation liability, year two | 100,000 |
Expected on-site remediation liability, year three | 100,000 |
Expected on-site remediation liability, year four | 100,000 |
Expected on-site remediation liability, year five | 100,000 |
Expected on-site remediation liability, thereafter | 13,500,000 |
Other liabilities | |
Loss Contingencies [Line Items] | |
Environmental Exit Costs, Assets Previously Disposed, Liability for Remediation | 8,700,000 |
Other accrued expenses | |
Loss Contingencies [Line Items] | |
Environmental Exit Costs, Assets Previously Disposed, Liability for Remediation | $ 700,000 |
Financial Information for th109
Financial Information for the Company and its Subsidiaries (Narrative) | 12 Months Ended |
Feb. 03, 2018 | |
Financial Information For The Company And Its Subsidiaries [Abstract] | |
Guarantors, ownership percentage by parent | 100.00% |
Financial Information for th110
Financial Information for the Company and its Subsidiaries (Schedule of Condensed Consolidating Balance Sheets) - USD ($) $ in Thousands | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 |
Assets | ||||
Cash and cash equivalents | $ 64,047 | $ 55,332 | $ 118,151 | $ 67,403 |
Receivables, net | 152,613 | 153,121 | ||
Inventories, net | 569,379 | 585,764 | ||
Prepaid expenses and other current assets incl. taxes | 60,750 | 49,528 | ||
Intercompany receivable – current | 0 | 0 | ||
Total current assets | 846,789 | 843,745 | ||
Property and equipment, net | 212,799 | 219,196 | ||
Goodwill and intangible assets, net | 339,168 | 343,758 | ||
Other assets noncurrent incl. pension and deferred taxes | 90,659 | 68,574 | ||
Total assets | 1,489,415 | 1,475,273 | 1,303,323 | |
Liabilities and Equity | ||||
Borrowings under revolving credit agreement | 0 | 110,000 | ||
Trade accounts payable | 272,962 | 266,370 | ||
Other accrued expenses | 157,197 | 151,225 | ||
Total current liabilities | 430,159 | 527,595 | ||
Other liabilities | ||||
Long-term debt | 197,472 | 197,003 | ||
Other liabilities | 142,822 | 136,189 | ||
Total other liabilities | 340,294 | 333,192 | ||
Equity | ||||
Total Caleres, Inc. shareholders' equity | 717,489 | 613,117 | ||
Noncontrolling interests | 1,473 | 1,369 | ||
Total equity | 718,962 | 614,486 | 602,472 | 541,622 |
Total liabilities and equity | 1,489,415 | 1,475,273 | ||
Parent | ||||
Assets | ||||
Cash and cash equivalents | 26,089 | 23,999 | 31,000 | 13,891 |
Receivables, net | 124,957 | 118,746 | ||
Inventories, net | 146,068 | 150,098 | ||
Prepaid expenses and other current assets incl. taxes | 26,284 | 24,293 | ||
Intercompany receivable – current | 521 | 695 | ||
Total current assets | 323,919 | 317,831 | ||
Property and equipment, net | 35,474 | 31,424 | ||
Goodwill and intangible assets, net | 111,108 | 113,333 | ||
Other assets noncurrent incl. pension and deferred taxes | 76,317 | 51,181 | ||
Investment in subsidiaries | 1,329,428 | 1,343,954 | ||
Intercompany receivable – noncurrent | 774,588 | 568,541 | ||
Total assets | 2,650,834 | 2,426,264 | ||
Liabilities and Equity | ||||
Borrowings under revolving credit agreement | 110,000 | |||
Trade accounts payable | 136,797 | 116,783 | ||
Other accrued expenses | 65,817 | 74,941 | ||
Intercompany payable – current | 5,524 | 12,794 | ||
Total current liabilities | 208,138 | 314,518 | ||
Other liabilities | ||||
Long-term debt | 197,472 | 197,003 | ||
Other liabilities | 101,784 | 91,683 | ||
Intercompany payable – noncurrent | 1,425,951 | 1,209,943 | ||
Total other liabilities | 1,725,207 | 1,498,629 | ||
Equity | ||||
Total Caleres, Inc. shareholders' equity | 717,489 | 613,117 | ||
Total equity | 717,489 | 613,117 | ||
Total liabilities and equity | 2,650,834 | 2,426,264 | ||
Guarantors | ||||
Assets | ||||
Cash and cash equivalents | 0 | 9,029 | ||
Receivables, net | 3,663 | 5,414 | ||
Inventories, net | 394,438 | 410,867 | ||
Prepaid expenses and other current assets incl. taxes | 30,456 | 23,040 | ||
Intercompany receivable – current | 74 | 263 | ||
Total current assets | 428,631 | 448,613 | ||
Property and equipment, net | 165,227 | 176,358 | ||
Goodwill and intangible assets, net | 40,937 | 219,337 | ||
Other assets noncurrent incl. pension and deferred taxes | 13,610 | 16,567 | ||
Intercompany receivable – noncurrent | 520,362 | 366,902 | ||
Total assets | 1,168,767 | 1,227,777 | ||
Liabilities and Equity | ||||
Borrowings under revolving credit agreement | 0 | |||
Trade accounts payable | 102,420 | 112,434 | ||
Other accrued expenses | 74,006 | 65,228 | ||
Total current liabilities | 176,426 | 177,662 | ||
Other liabilities | ||||
Other liabilities | 35,574 | 40,507 | ||
Intercompany payable – noncurrent | 98,610 | 98,982 | ||
Total other liabilities | 134,184 | 139,489 | ||
Equity | ||||
Total Caleres, Inc. shareholders' equity | 858,157 | 910,626 | ||
Total equity | 858,157 | 910,626 | ||
Total liabilities and equity | 1,168,767 | 1,227,777 | ||
Non-Guarantors | ||||
Assets | ||||
Cash and cash equivalents | 37,958 | 22,304 | $ 87,151 | $ 53,512 |
Receivables, net | 23,993 | 28,961 | ||
Inventories, net | 28,873 | 24,799 | ||
Prepaid expenses and other current assets incl. taxes | 8,394 | 8,058 | ||
Intercompany receivable – current | 9,250 | 22,091 | ||
Total current assets | 108,468 | 106,213 | ||
Property and equipment, net | 12,098 | 11,414 | ||
Goodwill and intangible assets, net | 187,123 | 11,088 | ||
Other assets noncurrent incl. pension and deferred taxes | 732 | 826 | ||
Investment in subsidiaries | (23,565) | (21,946) | ||
Intercompany receivable – noncurrent | 704,810 | 581,624 | ||
Total assets | 989,666 | 689,219 | ||
Liabilities and Equity | ||||
Borrowings under revolving credit agreement | 0 | |||
Trade accounts payable | 33,745 | 37,153 | ||
Other accrued expenses | 21,758 | 16,919 | ||
Intercompany payable – current | 4,321 | 10,255 | ||
Total current liabilities | 59,824 | 64,327 | ||
Other liabilities | ||||
Other liabilities | 5,464 | 3,999 | ||
Intercompany payable – noncurrent | 475,199 | 208,142 | ||
Total other liabilities | 480,663 | 212,141 | ||
Equity | ||||
Total Caleres, Inc. shareholders' equity | 447,706 | 411,382 | ||
Noncontrolling interests | 1,473 | 1,369 | ||
Total equity | 449,179 | 412,751 | ||
Total liabilities and equity | 989,666 | 689,219 | ||
Eliminations | ||||
Assets | ||||
Prepaid expenses and other current assets incl. taxes | (4,384) | (5,863) | ||
Intercompany receivable – current | (9,845) | (23,049) | ||
Total current assets | (14,229) | (28,912) | ||
Investment in subsidiaries | (1,305,863) | (1,322,008) | ||
Intercompany receivable – noncurrent | (1,999,760) | (1,517,067) | ||
Total assets | (3,319,852) | (2,867,987) | ||
Liabilities and Equity | ||||
Borrowings under revolving credit agreement | 0 | |||
Other accrued expenses | (4,384) | (5,863) | ||
Intercompany payable – current | (9,845) | (23,049) | ||
Total current liabilities | (14,229) | (28,912) | ||
Other liabilities | ||||
Intercompany payable – noncurrent | (1,999,760) | (1,517,067) | ||
Total other liabilities | (1,999,760) | (1,517,067) | ||
Equity | ||||
Total Caleres, Inc. shareholders' equity | (1,305,863) | (1,322,008) | ||
Total equity | (1,305,863) | (1,322,008) | ||
Total liabilities and equity | $ (3,319,852) | $ (2,867,987) |
Financial Information for th111
Financial Information for the Company and its Subsidiaries (Schedule of Condensed Consolidating Statements of Earnings) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Feb. 03, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Jan. 28, 2017 | Oct. 29, 2016 | Jul. 30, 2016 | Apr. 30, 2016 | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||||||||||
Net sales | $ 702,465 | $ 774,656 | $ 676,954 | $ 631,509 | $ 639,488 | $ 732,230 | $ 622,937 | $ 584,733 | $ 2,785,584 | $ 2,579,388 | $ 2,577,430 | ||||||||
Cost of goods sold | 1,616,935 | 1,517,397 | 1,529,627 | ||||||||||||||||
Gross profit | 293,395 | 316,885 | 287,461 | 270,908 | 260,872 | 293,771 | 259,555 | 247,793 | 1,168,649 | 1,061,991 | 1,047,803 | ||||||||
Selling and administrative expenses | 1,023,703 | 927,602 | 912,696 | ||||||||||||||||
Restructuring and other special charges, net | 20,200 | 4,915 | 23,404 | 0 | |||||||||||||||
Operating earnings | 140,031 | 110,985 | 135,107 | ||||||||||||||||
Interest expense | (18,089) | (15,111) | (16,589) | ||||||||||||||||
Loss on early extinguishment of debt | 0 | 0 | (10,651) | ||||||||||||||||
Interest income | 764 | 1,380 | 899 | ||||||||||||||||
Earnings before income taxes | 122,706 | 97,254 | 108,766 | ||||||||||||||||
Income tax provision | (35,475) | (31,168) | (26,942) | ||||||||||||||||
Net earnings | 20,301 | [1] | 34,373 | [1] | 17,674 | [1] | 14,884 | [1] | (6,196) | [2] | 34,726 | [2] | 19,679 | [2] | 17,878 | [2] | 87,231 | 66,086 | 81,824 |
Net earnings attributable to noncontrolling interests | 31 | 428 | 345 | ||||||||||||||||
Net earnings attributable to Caleres, Inc. | $ 20,316 | [1] | $ 34,387 | [1] | $ 17,595 | [1] | $ 14,902 | [1] | $ (6,622) | [2] | $ 34,730 | [2] | $ 19,768 | [2] | $ 17,782 | [2] | 87,200 | 65,658 | 81,479 |
Parent | |||||||||||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||||||||||
Net sales | 837,849 | 825,654 | 819,148 | ||||||||||||||||
Cost of goods sold | 580,038 | 583,131 | 591,539 | ||||||||||||||||
Gross profit | 257,811 | 242,523 | 227,609 | ||||||||||||||||
Selling and administrative expenses | 233,860 | 212,156 | 235,210 | ||||||||||||||||
Restructuring and other special charges, net | 3,942 | 15,333 | |||||||||||||||||
Operating earnings | 20,009 | 15,034 | (7,601) | ||||||||||||||||
Interest expense | (18,075) | (15,102) | (16,588) | ||||||||||||||||
Loss on early extinguishment of debt | (10,651) | ||||||||||||||||||
Interest income | 332 | 811 | 695 | ||||||||||||||||
Intercompany interest income (expense) | 8,354 | 8,888 | 14,363 | ||||||||||||||||
Earnings before income taxes | 10,620 | 9,631 | (19,782) | ||||||||||||||||
Income tax provision | (24,963) | (5,075) | 8,755 | ||||||||||||||||
Equity in earnings (loss) from continuing operations of subsidiaries, net of tax | 101,543 | 61,102 | 92,506 | ||||||||||||||||
Net earnings | 87,200 | 65,658 | 81,479 | ||||||||||||||||
Net earnings attributable to Caleres, Inc. | 87,200 | 65,658 | 81,479 | ||||||||||||||||
Guarantors | |||||||||||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||||||||||
Net sales | 1,935,265 | 1,692,093 | 1,652,444 | ||||||||||||||||
Cost of goods sold | 1,090,354 | 938,169 | 905,412 | ||||||||||||||||
Gross profit | 844,911 | 753,924 | 747,032 | ||||||||||||||||
Selling and administrative expenses | 771,027 | 690,292 | 649,020 | ||||||||||||||||
Restructuring and other special charges, net | 756 | 433 | |||||||||||||||||
Operating earnings | 73,128 | 63,199 | 98,012 | ||||||||||||||||
Interest expense | (14) | (9) | (1) | ||||||||||||||||
Intercompany interest income (expense) | (8,813) | (9,033) | (14,581) | ||||||||||||||||
Earnings before income taxes | 64,301 | 54,157 | 83,430 | ||||||||||||||||
Income tax provision | (175) | (20,084) | (29,475) | ||||||||||||||||
Net earnings | 64,126 | 34,073 | 53,955 | ||||||||||||||||
Net earnings attributable to Caleres, Inc. | 64,126 | 34,073 | 53,955 | ||||||||||||||||
Non-Guarantors | |||||||||||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||||||||||
Net sales | 211,815 | 227,557 | 268,779 | ||||||||||||||||
Cost of goods sold | 109,104 | 129,410 | 162,384 | ||||||||||||||||
Gross profit | 102,711 | 98,147 | 106,395 | ||||||||||||||||
Selling and administrative expenses | 55,600 | 57,757 | 61,699 | ||||||||||||||||
Restructuring and other special charges, net | 217 | 7,638 | |||||||||||||||||
Operating earnings | 46,894 | 32,752 | 44,696 | ||||||||||||||||
Loss on early extinguishment of debt | 0 | ||||||||||||||||||
Interest income | 432 | 569 | 204 | ||||||||||||||||
Intercompany interest income (expense) | 459 | 145 | 218 | ||||||||||||||||
Earnings before income taxes | 47,785 | 33,466 | 45,118 | ||||||||||||||||
Income tax provision | (10,337) | (6,009) | (6,222) | ||||||||||||||||
Equity in earnings (loss) from continuing operations of subsidiaries, net of tax | (1,619) | (2,422) | (616) | ||||||||||||||||
Net earnings | 35,829 | 25,035 | 38,280 | ||||||||||||||||
Net earnings attributable to noncontrolling interests | 31 | 428 | 345 | ||||||||||||||||
Net earnings attributable to Caleres, Inc. | 35,798 | 24,607 | 37,935 | ||||||||||||||||
Eliminations | |||||||||||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||||||||||
Net sales | (199,345) | (165,916) | (162,941) | ||||||||||||||||
Cost of goods sold | (162,561) | (133,313) | (129,708) | ||||||||||||||||
Gross profit | (36,784) | (32,603) | (33,233) | ||||||||||||||||
Selling and administrative expenses | (36,784) | (32,603) | (33,233) | ||||||||||||||||
Equity in earnings (loss) from continuing operations of subsidiaries, net of tax | (99,924) | (58,680) | (91,890) | ||||||||||||||||
Net earnings | (99,924) | (58,680) | (91,890) | ||||||||||||||||
Net earnings attributable to Caleres, Inc. | $ (99,924) | $ (58,680) | $ (91,890) | ||||||||||||||||
[1] | The first and second quarters of 2017 reflect the impact of amortization of the inventory fair value adjustment required for purchase accounting of $1.9 million and $1.1 million, respectively, on an after-tax basis, as further described in Note 2 to the consolidated financial statements and several restructuring and other charges totaling $0.7 million and $1.9 million, respectively, on an after-tax basis, as further described in Note 4 to the consolidated financial statements. The fourth quarter of 2017 reflects restructuring charges totaling $0.6 million, on an after-tax basis, as further described in Note 4 to the consolidated financial statements and the benefit of income tax reform of $0.3 million, as further described in Note 6 to the consolidated financial statements. | ||||||||||||||||||
[2] | The fourth quarter of 2016 reflects the impact of several restructuring and other charges totaling $20.2 million on an after-tax basis, as further described in Note 4 to the consolidated financial statements. |
Financial Information for th112
Financial Information for the Company and its Subsidiaries (Schedule of Condensed Consolidating Statements of Comprehensive Income) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Feb. 03, 2018 | [1] | Oct. 28, 2017 | [1] | Jul. 29, 2017 | [1] | Apr. 29, 2017 | [1] | Jan. 28, 2017 | [2] | Oct. 29, 2016 | [2] | Jul. 30, 2016 | [2] | Apr. 30, 2016 | [2] | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Condensed Income Statements, Captions [Line Items] | |||||||||||||||||||
Net earnings | $ 20,301 | $ 34,373 | $ 17,674 | $ 14,884 | $ (6,196) | $ 34,726 | $ 19,679 | $ 17,878 | $ 87,231 | $ 66,086 | $ 81,824 | ||||||||
Foreign Currency Translation Adjustment | 1,116 | 1,045 | (224) | ||||||||||||||||
Pension and other postretirement benefit adjustments | 18,794 | (24,728) | (8,589) | ||||||||||||||||
Derivative financial instruments | 1,101 | (934) | 168 | ||||||||||||||||
Other comprehensive income (loss), net of tax | 21,011 | (24,617) | (8,645) | ||||||||||||||||
Comprehensive income | 108,242 | 41,469 | 73,179 | ||||||||||||||||
Comprehensive income (loss) attributable to noncontrolling interest | 104 | 381 | 276 | ||||||||||||||||
Comprehensive income (loss) attributable to Caleres, Inc. | 108,138 | 41,088 | 72,903 | ||||||||||||||||
Parent | |||||||||||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||||||||||
Net earnings | 87,200 | 65,658 | 81,479 | ||||||||||||||||
Pension and other postretirement benefit adjustments | 18,855 | (24,790) | (8,838) | ||||||||||||||||
Derivative financial instruments | 1,539 | 181 | 628 | ||||||||||||||||
Other comprehensive income from investment in subsidiaries | 544 | 39 | (366) | ||||||||||||||||
Other comprehensive income (loss), net of tax | 20,938 | (24,570) | (8,576) | ||||||||||||||||
Comprehensive income | 108,138 | 41,088 | 72,903 | ||||||||||||||||
Comprehensive income (loss) attributable to Caleres, Inc. | 108,138 | 41,088 | 72,903 | ||||||||||||||||
Guarantors | |||||||||||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||||||||||
Net earnings | 64,126 | 34,073 | 53,955 | ||||||||||||||||
Derivative financial instruments | 14 | ||||||||||||||||||
Other comprehensive income (loss), net of tax | 14 | ||||||||||||||||||
Comprehensive income | 64,140 | 34,073 | 53,955 | ||||||||||||||||
Comprehensive income (loss) attributable to Caleres, Inc. | 64,140 | 34,073 | 53,955 | ||||||||||||||||
Non-Guarantors | |||||||||||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||||||||||
Net earnings | 35,829 | 25,035 | 38,280 | ||||||||||||||||
Foreign Currency Translation Adjustment | 1,116 | 1,045 | (224) | ||||||||||||||||
Pension and other postretirement benefit adjustments | (61) | 62 | 249 | ||||||||||||||||
Derivative financial instruments | (452) | (1,115) | (460) | ||||||||||||||||
Other comprehensive income (loss), net of tax | 603 | (8) | (435) | ||||||||||||||||
Comprehensive income | 36,432 | 25,027 | 37,845 | ||||||||||||||||
Comprehensive income (loss) attributable to noncontrolling interest | 104 | 381 | 276 | ||||||||||||||||
Comprehensive income (loss) attributable to Caleres, Inc. | 36,328 | 24,646 | 37,569 | ||||||||||||||||
Eliminations | |||||||||||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||||||||||
Net earnings | (99,924) | (58,680) | (91,890) | ||||||||||||||||
Other comprehensive income from investment in subsidiaries | (544) | (39) | 366 | ||||||||||||||||
Other comprehensive income (loss), net of tax | (544) | (39) | 366 | ||||||||||||||||
Comprehensive income | (100,468) | (58,719) | (91,524) | ||||||||||||||||
Comprehensive income (loss) attributable to Caleres, Inc. | $ (100,468) | $ (58,719) | $ (91,524) | ||||||||||||||||
[1] | The first and second quarters of 2017 reflect the impact of amortization of the inventory fair value adjustment required for purchase accounting of $1.9 million and $1.1 million, respectively, on an after-tax basis, as further described in Note 2 to the consolidated financial statements and several restructuring and other charges totaling $0.7 million and $1.9 million, respectively, on an after-tax basis, as further described in Note 4 to the consolidated financial statements. The fourth quarter of 2017 reflects restructuring charges totaling $0.6 million, on an after-tax basis, as further described in Note 4 to the consolidated financial statements and the benefit of income tax reform of $0.3 million, as further described in Note 6 to the consolidated financial statements. | ||||||||||||||||||
[2] | The fourth quarter of 2016 reflects the impact of several restructuring and other charges totaling $20.2 million on an after-tax basis, as further described in Note 4 to the consolidated financial statements. |
Financial Information for th113
Financial Information for the Company and its Subsidiaries (Schedule of Condensed Consolidating Statements of Cash Flows) - USD ($) $ in Thousands | 12 Months Ended | 77 Months Ended | ||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | Feb. 03, 2018 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash provided by (used for) operating activities | $ 191,375 | $ 183,622 | $ 149,152 | |
Purchases of property and equipment | (44,720) | (50,523) | (73,479) | |
Proceeds from disposal of property and equipment | 0 | 0 | 7,433 | |
Capitalized software | (6,458) | (9,039) | (7,735) | |
Acquisition cost, net of cash received | 0 | (259,932) | 0 | |
Intercompany investing | 0 | |||
Net cash (used for) provided by investing activities | (51,178) | (319,494) | (73,781) | |
Borrowings under revolving credit agreement | 454,000 | 623,000 | 198,000 | |
Repayments under revolving credit agreement | (564,000) | (513,000) | (198,000) | |
Proceeds from issuance of 2023 senior notes | 0 | 0 | 200,000 | |
Redemption of 2019 senior notes | 0 | 0 | (200,000) | |
Dividends paid | (12,027) | (12,104) | (12,253) | |
Debt issuance costs | 0 | 0 | (3,650) | |
Acquisition of treasury stock | (5,993) | (23,139) | (4,921) | $ (34,100) |
Issuance of common stock under share-based plans, net | (3,816) | (4,188) | (5,297) | |
Excess tax benefit related to share-based plans | 0 | 2,251 | 2,651 | |
Intercompany financing | 0 | |||
Net cash (used for) provided by financing activities | (131,836) | 72,820 | (23,470) | |
Effect of exchange rate changes on cash and cash equivalents | 354 | 233 | (1,153) | |
Cash and Cash Equivalents, Period Increase (Decrease) | 8,715 | (62,819) | 50,748 | |
Cash and cash equivalents at beginning of period | 55,332 | 118,151 | 67,403 | |
Cash and cash equivalents at end of period | 64,047 | 55,332 | 118,151 | 64,047 |
Parent | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash provided by (used for) operating activities | 40,601 | 66,800 | (1,259) | |
Purchases of property and equipment | (9,522) | (4,769) | (14,585) | |
Proceeds from disposal of property and equipment | 7,111 | |||
Capitalized software | (5,950) | (5,521) | (5,197) | |
Acquisition cost, net of cash received | (259,932) | |||
Intercompany investing | (20,224) | 3,257 | 568 | |
Net cash (used for) provided by investing activities | (35,696) | (273,479) | (13,239) | |
Borrowings under revolving credit agreement | 454,000 | 623,000 | 198,000 | |
Repayments under revolving credit agreement | (564,000) | (513,000) | (198,000) | |
Proceeds from issuance of 2023 senior notes | 200,000 | |||
Redemption of 2019 senior notes | (200,000) | |||
Dividends paid | (12,027) | (12,104) | (12,253) | |
Debt issuance costs | (3,650) | |||
Acquisition of treasury stock | (5,993) | (23,139) | (4,921) | |
Issuance of common stock under share-based plans, net | (3,816) | (4,188) | (5,297) | |
Excess tax benefit related to share-based plans | 2,251 | 2,651 | ||
Intercompany financing | 129,021 | 126,858 | 55,077 | |
Net cash (used for) provided by financing activities | (2,815) | 199,678 | 31,607 | |
Cash and Cash Equivalents, Period Increase (Decrease) | 2,090 | (7,001) | 17,109 | |
Cash and cash equivalents at beginning of period | 23,999 | 31,000 | 13,891 | |
Cash and cash equivalents at end of period | 26,089 | 23,999 | 31,000 | 26,089 |
Guarantors | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash provided by (used for) operating activities | 90,745 | 71,781 | 99,222 | |
Purchases of property and equipment | (31,159) | (41,606) | (56,382) | |
Capitalized software | (483) | (3,481) | (2,538) | |
Intercompany investing | 197,929 | (3,257) | (568) | |
Net cash (used for) provided by investing activities | 166,287 | (41,830) | (58,352) | |
Intercompany financing | (266,061) | (20,922) | (40,870) | |
Net cash (used for) provided by financing activities | (266,061) | (20,922) | (40,870) | |
Cash and Cash Equivalents, Period Increase (Decrease) | (9,029) | 9,029 | ||
Cash and cash equivalents at beginning of period | 9,029 | |||
Cash and cash equivalents at end of period | 0 | 9,029 | 0 | |
Non-Guarantors | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash provided by (used for) operating activities | 60,029 | 45,041 | 51,189 | |
Purchases of property and equipment | (4,039) | (4,148) | (2,512) | |
Proceeds from disposal of property and equipment | 322 | |||
Capitalized software | (25) | (37) | ||
Intercompany investing | (177,705) | |||
Net cash (used for) provided by investing activities | (181,769) | (4,185) | (2,190) | |
Intercompany financing | 137,040 | (105,936) | (14,207) | |
Net cash (used for) provided by financing activities | 137,040 | (105,936) | (14,207) | |
Effect of exchange rate changes on cash and cash equivalents | 354 | 233 | (1,153) | |
Cash and Cash Equivalents, Period Increase (Decrease) | 15,654 | (64,847) | 33,639 | |
Cash and cash equivalents at beginning of period | 22,304 | 87,151 | 53,512 | |
Cash and cash equivalents at end of period | $ 37,958 | $ 22,304 | $ 87,151 | $ 37,958 |
Quarterly Financial Data (Sched
Quarterly Financial Data (Schedule of Quarterly Financial Data) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Jan. 28, 2017 | Feb. 03, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Jan. 28, 2017 | Oct. 29, 2016 | Jul. 30, 2016 | Apr. 30, 2016 | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |||||||||
Net sales | $ 702,465 | $ 774,656 | $ 676,954 | $ 631,509 | $ 639,488 | $ 732,230 | $ 622,937 | $ 584,733 | $ 2,785,584 | $ 2,579,388 | $ 2,577,430 | |||||||||
Gross profit | 293,395 | 316,885 | 287,461 | 270,908 | 260,872 | 293,771 | 259,555 | 247,793 | 1,168,649 | 1,061,991 | 1,047,803 | |||||||||
Net earnings (loss) | 20,301 | [1] | 34,373 | [1] | 17,674 | [1] | 14,884 | [1] | (6,196) | [2] | 34,726 | [2] | 19,679 | [2] | 17,878 | [2] | 87,231 | 66,086 | 81,824 | |
Net earnings (loss) attributable to Caleres, Inc. | $ 20,316 | [1] | $ 34,387 | [1] | $ 17,595 | [1] | $ 14,902 | [1] | $ (6,622) | [2] | $ 34,730 | [2] | $ 19,768 | [2] | $ 17,782 | [2] | $ 87,200 | $ 65,658 | $ 81,479 | |
Earnings (loss) per share, basic | $ 0.47 | [3] | $ 0.80 | [3] | $ 0.41 | [3] | $ 0.35 | [3] | $ (0.16) | [3] | $ 0.81 | [3] | $ 0.46 | [3] | $ 0.41 | [3] | $ 2.03 | $ 1.52 | $ 1.86 | |
Earnings (loss) per share, diluted | 0.47 | [3] | 0.80 | [3] | 0.41 | [3] | 0.35 | [3] | (0.16) | [3] | 0.81 | [3] | 0.46 | [3] | 0.41 | [3] | 2.02 | 1.52 | 1.85 | |
Dividends paid | 0.07 | 0.07 | 0.07 | 0.07 | $ 0.07 | 0.07 | 0.07 | 0.07 | $ 0.28 | $ 0.28 | $ 0.28 | |||||||||
Restructuring and other special charges, net | $ 20,200 | $ 4,915 | $ 23,404 | $ 0 | ||||||||||||||||
Maximum | ||||||||||||||||||||
Market value | $ 36.61 | 34.34 | 31.27 | 29.11 | 32.83 | $ 36.61 | 26.90 | 27.30 | 29.49 | $ 34.34 | $ 36.61 | |||||||||
Minimum | ||||||||||||||||||||
Market value | $ 24.14 | $ 26.54 | $ 22.39 | $ 24.45 | $ 24.86 | $ 24.14 | $ 23.12 | $ 21.27 | $ 23.89 | $ 26.54 | $ 24.14 | |||||||||
Allen Edmonds | ||||||||||||||||||||
Net sales | $ 24,300 | $ 178,600 | ||||||||||||||||||
Restructuring and other special charges, net | 4,000 | |||||||||||||||||||
Restructuring and other special charges, net | Allen Edmonds | ||||||||||||||||||||
Restructuring And Related Cost Incurred Cost After Tax | $ 1,900 | $ 700 | 2,600 | $ 5,000 | ||||||||||||||||
Restructuring and other special charges, net | 4,000 | |||||||||||||||||||
Brand Portfolio | ||||||||||||||||||||
Net sales | 1,147,957 | 989,323 | $ 1,004,765 | |||||||||||||||||
Brand Portfolio | Restructuring and other special charges, net | Allen Edmonds | ||||||||||||||||||||
Restructuring and other special charges, net | 1,500 | |||||||||||||||||||
Brand Portfolio | Cost of goods sold | Allen Edmonds | ||||||||||||||||||||
Business Combination, Acquisition Amortization of Inventory Fair Value Adjustment, Net of Tax | $ 1,100 | $ 1,900 | 3,000 | 700 | ||||||||||||||||
Other Restructuring | ||||||||||||||||||||
Restructuring And Related Cost Incurred Cost After Tax | $ 300 | |||||||||||||||||||
Other Restructuring | Restructuring and other special charges, net | ||||||||||||||||||||
Restructuring And Related Cost Incurred Cost After Tax | $ 7,000 | 7,000 | ||||||||||||||||||
Other Restructuring | Brand Portfolio | ||||||||||||||||||||
Restructuring And Related Cost Incurred Cost After Tax | $ 3,300 | |||||||||||||||||||
Employee Severance | ||||||||||||||||||||
Restructuring And Related Cost Incurred Cost After Tax | $ 600 | 600 | ||||||||||||||||||
Restructuring and other special charges, net | 900 | |||||||||||||||||||
Employee Severance | Brand Portfolio | ||||||||||||||||||||
Restructuring and other special charges, net | $ 100 | |||||||||||||||||||
[1] | The first and second quarters of 2017 reflect the impact of amortization of the inventory fair value adjustment required for purchase accounting of $1.9 million and $1.1 million, respectively, on an after-tax basis, as further described in Note 2 to the consolidated financial statements and several restructuring and other charges totaling $0.7 million and $1.9 million, respectively, on an after-tax basis, as further described in Note 4 to the consolidated financial statements. The fourth quarter of 2017 reflects restructuring charges totaling $0.6 million, on an after-tax basis, as further described in Note 4 to the consolidated financial statements and the benefit of income tax reform of $0.3 million, as further described in Note 6 to the consolidated financial statements. | |||||||||||||||||||
[2] | The fourth quarter of 2016 reflects the impact of several restructuring and other charges totaling $20.2 million on an after-tax basis, as further described in Note 4 to the consolidated financial statements. | |||||||||||||||||||
[3] | EPS for the quarters may not sum to the annual amount as each period is computed on a discrete period basis. |
Valuation of Qualifying Account
Valuation of Qualifying Accounts (Schedule of Valuation and Qualifying Accounts) - USD ($) $ in Thousands | 12 Months Ended | ||||
Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | ||
Doubtful accounts and allowances | |||||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
Valuation Allowances and Reserves, Balance | $ 2,045 | $ 1,567 | $ 2,295 | $ 2,235 | |
Valuation Allowances and Reserves, Charged to Cost and Expense | 1,336 | 1,384 | 480 | ||
Valuation Allowances and Reserves, Charged to Other Accounts | [1] | 70 | |||
Valuation Allowances and Reserves, Deductions | [2] | 858 | 2,182 | 420 | |
Customer allowances | |||||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
Valuation Allowances and Reserves, Balance | 24,302 | 20,923 | 21,590 | 21,906 | |
Valuation Allowances and Reserves, Charged to Cost and Expense | 51,135 | 45,186 | 47,435 | ||
Valuation Allowances and Reserves, Deductions | [3] | 47,756 | 45,853 | 47,751 | |
Customer discounts | |||||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
Valuation Allowances and Reserves, Balance | 751 | 1,162 | 895 | 1,252 | |
Valuation Allowances and Reserves, Charged to Cost and Expense | 4,804 | 3,573 | 2,624 | ||
Valuation Allowances and Reserves, Deductions | [3] | 5,215 | 3,306 | 2,981 | |
Inventory valuation allowances | |||||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
Valuation Allowances and Reserves, Balance | 14,254 | 14,229 | 15,780 | 16,051 | |
Valuation Allowances and Reserves, Charged to Cost and Expense | 47,084 | 52,041 | 55,126 | ||
Valuation Allowances and Reserves, Charged to Other Accounts | [1] | 2,225 | |||
Valuation Allowances and Reserves, Deductions | [4] | 47,059 | 55,817 | 55,397 | |
Deferred tax asset valuation allowance | |||||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
Valuation Allowances and Reserves, Balance | 5,763 | 7,890 | 6,544 | $ 11,514 | |
Valuation Allowances and Reserves, Charged to Cost and Expense | 0 | 3,697 | 670 | ||
Valuation Allowances and Reserves, Charged to Other Accounts | [1] | 450 | |||
Valuation Allowances and Reserves, Deductions | [5] | $ 2,127 | $ 2,801 | $ 5,640 | |
[1] | (E)Established through purchase accounting related to the Allen Edmonds acquisition. | ||||
[2] | (A)Accounts written off, net of recoveries. | ||||
[3] | (B)Discounts and allowances granted to wholesale customers of the Brand Portfolio segment. | ||||
[4] | (C)Adjustment upon disposal of related inventories. | ||||
[5] | (D)Reductions to the valuation allowances for the net operating loss carryforwards for certain states based on the Company’s expectations for utilization of net operating loss carryforwards. In addition, in 2017, the valuation allowances related to the impairment of the investment in a nonconsolidated affiliate and capital loss carryforwards were reduced, reflecting the impact of the Tax Cuts and Jobs Act. |