Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 27, 2021 | Aug. 01, 2020 | |
Document And Entity Information | |||
Entity Central Index Key | 0000014707 | ||
Entity Registrant Name | CALERES INC | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --01-30 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 30, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 1-2191 | ||
Entity Incorporation, State or Country Code | NY | ||
Entity Tax Identification Number | 43-0197190 | ||
Entity Address, Address Line One | 8300 Maryland Avenue | ||
Entity Address, City or Town | St. Louis | ||
Entity Address, State or Province | MO | ||
Entity Address, Postal Zip Code | 63105 | ||
City Area Code | 314 | ||
Local Phone Number | 854-4000 | ||
Title of 12(b) Security | Common Stock — par value of $0.01 per share | ||
Trading Symbol | CAL | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 224.4 | ||
Entity Common Stock, Shares Outstanding | 37,947,704 | ||
ICFR Auditor Attestation Flag | true |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 30, 2021 | Feb. 01, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 88,295 | $ 45,218 |
Receivables, net of allowances of $31,971 in 2020 and $28,827 in 2019 | 126,994 | 162,181 |
Inventories, net of adjustment to last-in, first-out cost of $793 in 2020 and $3,826 in 2019 | 487,955 | 618,406 |
Income taxes | 33,925 | 6,189 |
Prepaid expenses and other current assets | 45,387 | 50,305 |
Total current assets | 782,556 | 882,299 |
Prepaid pension costs | 88,833 | 50,660 |
Lease right-of-use assets | 554,303 | 695,594 |
Property and equipment, net | 172,437 | 224,846 |
Deferred income taxes | 0 | 9,735 |
Goodwill | 4,956 | 245,275 |
Intangible assets, net | 235,115 | 294,304 |
Other assets | 28,850 | 28,994 |
Total assets | 1,867,050 | 2,431,707 |
Current liabilities: | ||
Borrowings under revolving credit agreement | 250,000 | 275,000 |
Mandatory purchase obligation - Blowfish Malibu | 39,134 | 0 |
Trade accounts payable | 280,501 | 267,018 |
Employee compensation and benefits | 48,641 | 54,720 |
Income taxes | 5,069 | 7,186 |
Lease obligations | 153,060 | 127,869 |
Other accrued expenses | 129,104 | 119,157 |
Total current liabilities | 905,509 | 850,950 |
Other liabilities: | ||
Noncurrent lease obligations | 518,942 | 629,032 |
Long-term debt | 198,851 | 198,391 |
Income taxes | 5,038 | 7,786 |
Deferred income taxes | 8,244 | 55,013 |
Other liabilities | 26,612 | 41,405 |
Total other liabilities | 757,687 | 931,627 |
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; 37,966,204 and 40,396,757 shares outstanding, net of 8,120,591 and 5,690,038 treasury shares in 2020 and 2019, respectively | 380 | 404 |
Additional paid-in capital | 160,446 | 153,489 |
Accumulated other comprehensive loss | (9,136) | (31,843) |
Retained earnings | 48,557 | 523,900 |
Total Caleres, Inc. shareholders' equity | 200,247 | 645,950 |
Noncontrolling interests | 3,607 | 3,180 |
Total equity | 203,854 | 649,130 |
Total liabilities and equity | $ 1,867,050 | $ 2,431,707 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Jan. 30, 2021 | Feb. 01, 2020 |
Consolidated Balance Sheets | ||
Receivables, allowance | $ 31,971 | $ 28,827 |
Inventories, adjustment to last-in, first-out cost | $ 793 | $ 3,826 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares outstanding (in shares) | 37,966,204 | 40,396,757 |
Common stock, treasury shares (in shares) | 8,120,591 | 5,690,038 |
Consolidated Statements of Earn
Consolidated Statements of Earnings (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Consolidated Statements of Earnings (Loss) | |||
Net sales | $ 2,117,070 | $ 2,921,562 | $ 2,834,846 |
Cost of goods sold | 1,330,021 | 1,737,202 | 1,678,502 |
Gross profit | 787,049 | 1,184,360 | 1,156,344 |
Selling and administrative expenses | 889,489 | 1,065,760 | 1,041,765 |
Impairment of goodwill and intangible assets | 286,524 | 0 | 98,044 |
Restructuring and other special charges, net | 96,694 | 14,787 | 16,134 |
Operating (loss) earnings | (485,658) | 103,813 | 401 |
Interest expense, net | (48,287) | (33,123) | (18,277) |
Loss on early extinguishment of debt | 0 | 0 | (186) |
Other income, net | 16,834 | 7,903 | 12,308 |
(Loss) earnings before income taxes | (517,111) | 78,593 | (5,754) |
Income tax benefit (provision) | 78,117 | (16,511) | 273 |
Net (loss) earnings | (438,994) | 62,082 | (5,481) |
Net earnings (loss) attributable to noncontrolling interests | 120 | (737) | (40) |
Net (loss) earnings attributable to Caleres, Inc. | $ (439,114) | $ 62,819 | $ (5,441) |
Basic (loss) earnings per common share attributable to Caleres, Inc. shareholders (in dollars per share) | $ (11.80) | $ 1.53 | $ (0.13) |
Diluted (loss) earnings per common share attributable to Caleres, Inc. shareholders (in dollars per share) | $ (11.80) | $ 1.53 | $ (0.13) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Consolidated Statements of Comprehensive Income (Loss) | |||
Net (loss) earnings | $ (438,994) | $ 62,082 | $ (5,481) |
Other comprehensive income (loss) ("OCI"), net of tax: | |||
Foreign currency translation adjustment | 637 | (607) | (1,224) |
Pension and other postretirement benefits adjustments | 22,146 | (116) | (13,883) |
Derivative financial instruments | 92 | 516 | (1,375) |
Other comprehensive income (loss), net of tax | 22,875 | (207) | (16,482) |
Comprehensive (loss) income | (416,119) | 61,875 | (21,963) |
Comprehensive income (loss) attributable to noncontrolling interests | 288 | (702) | (91) |
Comprehensive (loss) income attributable to Caleres, Inc. | $ (416,407) | $ 62,577 | $ (21,872) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Operating Activities | |||
Net (loss) earnings | $ (438,994) | $ 62,082 | $ (5,481) |
Adjustments to reconcile net (loss) earnings to net cash provided by operating activities: | |||
Depreciation | 41,644 | 46,014 | 45,540 |
Amortization of capitalized software | 5,911 | 6,486 | 10,136 |
Amortization of intangible assets | 12,984 | 13,062 | 7,021 |
Amortization of debt issuance costs and debt discount | 1,359 | 7,261 | 1,960 |
Fair value adjustments to mandatory purchase obligation | 23,934 | 5,955 | 250 |
Loss on early extinguishment of debt | 0 | 0 | 186 |
Share-based compensation expense | 8,097 | 10,246 | 13,805 |
Loss on disposal of property and equipment | 2,890 | 1,469 | 2,396 |
Impairment charges for property, equipment, and lease right-of-use assets | 56,343 | 5,867 | 3,665 |
Impairment of goodwill and intangible assets | 286,524 | 0 | 98,044 |
Provision for expected credit losses | 10,575 | 773 | 518 |
Deferred rent | 0 | 0 | 1,779 |
Deferred income taxes | (37,034) | 9,796 | (6,922) |
Changes in operating assets and liabilities, net of acquired amounts: | |||
Receivables | 22,465 | 28,768 | (2,635) |
Inventories | 130,796 | 63,430 | (51,676) |
Prepaid expenses and other current and noncurrent assets | (12,400) | (16,833) | (6,064) |
Trade accounts payable | 13,373 | (46,106) | 17,236 |
Accrued expenses and other liabilities | 30,181 | (27,304) | 19,350 |
Income taxes, net | (32,600) | (517) | (17,736) |
Other, net | 305 | 337 | (1,783) |
Net cash provided by operating activities | 126,353 | 170,786 | 129,589 |
Investing Activities | |||
Purchases of property and equipment | (16,786) | (44,533) | (62,483) |
Disposals of property and equipment | 0 | 636 | 0 |
Capitalized software | (5,274) | (5,619) | (4,416) |
Net cash used for investing activities | (22,060) | (49,516) | (436,357) |
Financing Activities | |||
Borrowings under revolving credit agreement | 438,500 | 288,500 | 360,000 |
Repayments under revolving credit agreement | (463,500) | (348,500) | (25,000) |
Dividends paid | (10,764) | (11,422) | (11,983) |
Debt issuance costs | 0 | 0 | (1,298) |
Acquisition of treasury stock | (23,348) | (33,424) | (43,771) |
Issuance of common stock under share-based plans, net | (1,135) | (2,644) | (4,372) |
Contributions by noncontrolling interests, net | 139 | 2,500 | 0 |
Other | (1,198) | (1,342) | (406) |
Net cash (used for) provided by financing activities | (61,306) | (106,332) | 273,170 |
Effect of exchange rate changes on cash and cash equivalents | 90 | 80 | (249) |
Increase (decrease) in cash and cash equivalents | 43,077 | 15,018 | (33,847) |
Cash and cash equivalents at beginning of period | 45,218 | 30,200 | 64,047 |
Cash and cash equivalents at end of period | 88,295 | 45,218 | 30,200 |
Blowfish, LLC | |||
Adjustments to reconcile net (loss) earnings to net cash provided by operating activities: | |||
Fair value adjustments to mandatory purchase obligation | 23,900 | 5,400 | |
Investing Activities | |||
Acquisition of businesses, net of cash received | 0 | 0 | (16,792) |
Vionic | |||
Investing Activities | |||
Acquisition of businesses, net of cash received | $ 0 | $ 0 | $ (352,666) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Cumulative effect adjustmentRetained Earnings | Cumulative effect adjustmentCalares, Inc. | Cumulative effect adjustment | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive (Loss) Income | Retained Earnings | Calares, Inc. | Non-controlling Interest | Total |
BALANCE (Accounting Standards Update 2016-16) at Feb. 03, 2018 | $ (10,468) | $ (10,468) | $ (10,468) | |||||||
BALANCE (Accounting Standards Update 2014-09) at Feb. 03, 2018 | (4,775) | (4,775) | (4,775) | |||||||
BALANCE at Feb. 03, 2018 | $ 430 | $ 136,460 | $ (15,170) | $ 595,769 | $ 717,489 | $ 1,473 | $ 718,962 | |||
BALANCE (in shares) at Feb. 03, 2018 | 43,031,689 | |||||||||
Net (loss) earnings | (5,441) | (5,441) | (40) | (5,481) | ||||||
Foreign currency translation adjustment | (1,173) | (1,173) | (51) | (1,224) | ||||||
Unrealized gain (loss) on derivative financial instruments, net of tax | (1,375) | (1,375) | (1,375) | |||||||
Pension and other postretirement benefits adjustments | (13,883) | (13,883) | (13,883) | |||||||
Comprehensive income (loss) | (16,431) | (5,441) | (21,872) | (91) | (21,963) | |||||
Dividends | (11,983) | (11,983) | (11,983) | |||||||
Acquisition of treasury stock | $ (15) | (43,756) | (43,771) | (43,771) | ||||||
Acquisition of treasury stock (in shares) | (1,465,649) | |||||||||
Issuance of common stock under share-based plans, net | $ 4 | (4,376) | (4,372) | (4,372) | ||||||
Issuance of common stock under share-based plans, net (in shares) | 320,522 | |||||||||
Share-based compensation expense | 13,805 | 13,805 | 13,805 | |||||||
BALANCE (Accounting Standards Update 2016-02) at Feb. 02, 2019 | (13,436) | (13,436) | (13,436) | |||||||
BALANCE at Feb. 02, 2019 | $ 419 | 145,889 | (31,601) | 519,346 | 634,053 | 1,382 | 635,435 | |||
BALANCE (in shares) at Feb. 02, 2019 | 41,886,562 | |||||||||
Net (loss) earnings | 62,819 | 62,819 | (737) | 62,082 | ||||||
Foreign currency translation adjustment | (642) | (642) | 35 | (607) | ||||||
Unrealized gain (loss) on derivative financial instruments, net of tax | 516 | 516 | 516 | |||||||
Pension and other postretirement benefits adjustments | (116) | (116) | (116) | |||||||
Comprehensive income (loss) | (242) | 62,819 | 62,577 | (702) | 61,875 | |||||
Contributions by noncontrolling interests | 2,500 | 2,500 | ||||||||
Dividends | (11,422) | (11,422) | (11,422) | |||||||
Acquisition of treasury stock | $ (17) | (33,407) | (33,424) | (33,424) | ||||||
Acquisition of treasury stock (in shares) | (1,704,240) | |||||||||
Issuance of common stock under share-based plans, net | $ 2 | (2,646) | (2,644) | (2,644) | ||||||
Issuance of common stock under share-based plans, net (in shares) | 214,435 | |||||||||
Share-based compensation expense | 10,246 | 10,246 | 10,246 | |||||||
BALANCE (Accounting Standards Update 2016-13) at Feb. 01, 2020 | $ (2,146) | $ (2,146) | $ (2,146) | |||||||
BALANCE at Feb. 01, 2020 | $ 404 | 153,489 | (31,843) | 523,900 | 645,950 | 3,180 | 649,130 | |||
BALANCE (in shares) at Feb. 01, 2020 | 40,396,757 | |||||||||
Net (loss) earnings | (439,114) | (439,114) | 120 | (438,994) | ||||||
Foreign currency translation adjustment | 469 | 469 | 168 | 637 | ||||||
Unrealized gain (loss) on derivative financial instruments, net of tax | 92 | 92 | 92 | |||||||
Pension and other postretirement benefits adjustments | 22,146 | 22,146 | 22,146 | |||||||
Comprehensive income (loss) | 22,707 | (439,114) | (416,407) | 288 | (416,119) | |||||
Contributions by noncontrolling interests | 139 | 139 | ||||||||
Dividends | (10,764) | (10,764) | (10,764) | |||||||
Acquisition of treasury stock | $ (29) | (23,319) | (23,348) | (23,348) | ||||||
Acquisition of treasury stock (in shares) | (2,902,122) | |||||||||
Issuance of common stock under share-based plans, net | $ 5 | (1,140) | (1,135) | (1,135) | ||||||
Issuance of common stock under share-based plans, net (in shares) | 471,569 | |||||||||
Share-based compensation expense | 8,097 | 8,097 | 8,097 | |||||||
BALANCE at Jan. 30, 2021 | $ 380 | $ 160,446 | $ (9,136) | $ 48,557 | $ 200,247 | $ 3,607 | $ 203,854 | |||
BALANCE (in shares) at Jan. 30, 2021 | 37,966,204 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Consolidated Statements of Shareholders' Equity | |||
Pension and other postretirement benefits adjustments, tax | $ 7,671 | $ 42 | $ 4,816 |
Dividends, per share (in dollars per share) | $ 0.28 | $ 0.28 | $ 0.28 |
Unrealized gain (loss) on derivative financial instruments, tax | $ 31 | $ 127 | $ 350 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jan. 30, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization Caleres, Inc., originally founded as Brown Shoe Company in 1878 and incorporated in 1913, is a global footwear 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 athletic, casual and dress footwear products to women, men and children. The footwear is sold at a variety of price points through multiple distribution channels both domestically and internationally. The Company currently operates 1,086 retail shoe stores in the United States, Canada, China and Guam under the Famous Footwear, Naturalizer, Sam Edelman 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 online retailers, national chains, department stores, mass merchandisers and independent retailers. Refer to Note 3 to the consolidated financial statements for additional information regarding the Company’s revenue by category and Note 8 for discussion of 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. Certain prior period amounts in the notes to the consolidated financial statements have been reclassified to conform to the current period presentation. These reclassifications did not affect net (loss) earnings attributable to Caleres, Inc. 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. During 2019, the Company entered into a joint venture with Brand Investment Holding Limited ("Brand Investment Holding"), a member of the Gemkell Group. The Company and Brand Investment Holding are each 50% owners of the joint venture, which is named CLT Brand Solutions ("CLT"). During 2020, CLT was funded with $3.0 million in capital contributions, including $1.5 million from the Company and $1.5 million from Brand Investment Holding. In 2019, CLT was funded with $5.0 million in capital contributions, including $2.5 million from the Company and $2.5 million from Brand Investment Holding. Net sales and operating results were immaterial in both 2020 and 2019. The Company had a joint venture agreement with a subsidiary of C. banner International Holdings Limited (“CBI”) to market Naturalizer footwear in China. The Company was 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. The Company anticipates the liquidation to be completed in 2021. The Company consolidates CLT and B&H Footwear into its consolidated financial statements. Net (loss) earnings attributable to noncontrolling interests represents the share of net earnings or losses that are attributable to CBI and Brand Investment Holding equity. Transactions between the Company and the joint ventures have been eliminated in the consolidated financial statements. Accounting Period The Company’s fiscal year is the 52- or 53-week period ending the Saturday nearest to January 31. Fiscal years 2020, 2019 and 2018, all of which included 52 weeks, ended on January 30, 2021, February 1, 2020 and February 2, 2019, 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. COVID-19 Pandemic The United St ates and global economies continue to be adversely affected by the coronavirus (“COVID-19”) pandemic. Although the Company has reopened all its retail stores from the temporary store closures in the first half of 2020, the Company’s financial results were adversely impacted by COVID-19 in 2020 . The Company took actions to manage its resources conservatively to mitigate the adverse impact of the pandemic, including reductions in the workforce, associate furloughs for a significant portion of the workforce during the first half of 2020 , and reductions in salary for most remaining associates, as well as a reduction in the cash retainers for the Board of Directors through the end of the second quarter; reducing inventory purchases; reducing marketing expenses; and minimizing costs associated with the closed retail facilities. In addition, as a precautionary measure to increase its cash position and preserve financial flexibility given the uncertainty in the United States and global markets resulting from COVID-19, the Company increased the borrowings on its revolving credit facility in March 2020 to $440.0 million. In April, the Company entered into an amendment to the Fourth Amended and Restated Credit Agreement to increase its borrowing capacity, as further discussed in Note 1 2 to the consolidated financial statements. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security ("CARES") Act was enacted. The CARES Act includes a provision that allows the Company to defer the employer portion of social security payroll tax payments that would have been paid between the enactment date and December 31, 2020, with 50% payable by December 31, 2021 and 50% payable by December 31, 2022. As of January 30, 2021, the Company has deferred $9.4 million of employer social security payroll taxes, of which $4.7 million are presented in other accrued expenses and $4.7 million are presented in other liabilities on the consolidated balance sheet. In addition, as further discussed below and in Note 7 to the consolidated financial statements, the CARES Act permits the carryback of certain current operating losses to prior years, which resulted in an incremental tax benefit of $8.2 million. Cash and Cash Equivalents The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. The Company had an immaterial amount of restricted cash as of January 30, 2021 and February 1, 2020. Receivables Prior to the adoption of Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, Customer allowances represent reserves against the Company’s 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 $20.4 million in 2020, $62.7 million in 2019 and $54.2 million in 2018. Customer discounts represent reserves against the Company’s accounts receivable for discounts that 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 $11.7 million in 2020, $12.0 million in 2019 and $5.5 million in 2018. Inventories All inventories are valued at the lower of cost and net realizable value with approximately 88% 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 $0.8 million and $3.8 million higher at January 30, 2021 and February 1, 2020, respectively. In the fourth quarter of 2020, a reduction in inventory quantities associated with the ongoing exit of the Naturalizer retail business resulted in a liquidation of LIFO layers and reduction of the LIFO reserve of $2.9 million, with a corresponding reduction of cost of goods sold. Refer to Note 9 to the consolidated financial statements for additional information related to inventories. 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 $84.0 million, $106.0 million and $106.9 million in 2020, 2019 and 2018, 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 $18.6 million, $23.1 million and $22.1 million in 2020, 2019 and 2018, 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 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. For the majority of the Brand Portfolio operations, markdown reserves 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 $15.5 million and $16.2 million of computer software costs as of January 30, 2021 and February 1, 2020, respectively, which are net of accumulated amortization of $131.1 million and $126.1 million as of the end of the respective periods. In addition, other assets on the consolidated balance sheets include $9.6 million and $8.0 million of implementation costs for software as a service as of January 30, 2021 and February 1, 2020, respectively, which are net of accumulated amortization of $0.6 million and $0.3 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. There was no interest capitalized in 2020. The Company capitalized interest of $0.6 million and $0.2 million in 2019 and 2018, respectively, related to the new company-operated Brand Portfolio warehouse facilities in California. Interest Expense Interest expense includes interest for borrowings under both the Company’s short-term and long-term debt, net of amounts capitalized, as well as accretion and fair value adjustments on the mandatory purchase obligation from the acquisition of Blowfish Malibu, as further described in Note 2 to the consolidated financial statements. Interest expense also includes fees paid under the short-term revolving credit agreement for the unused portion of its line of credit, and the amortization of deferred debt issuance costs and debt discount. Goodwill and Intangible Assets Goodwill and intangible assets deemed to have indefinite lives are not amortized but are subject to annual impairment tests. In accordance with Accounting Standards Codification (“ASC”), Intangibles-Goodwill and Other (ASC Topic 350) Simplifying the Test for Goodwill Impairment, The Company performs its goodwill impairment assessment as of the first day of the fourth quarter of each fiscal year unless events indicate an interim test is required. During the first quarter of 2020, as a result of the significant decline in the Company’s share price and market capitalization, and the impact of COVID-19 on business operations, the Company determined that an interim assessment of goodwill was required and performed the quantitative assessment for all reporting units. The interim assessment indicated that the carrying value of the goodwill associated with the Brand Portfolio and Vionic reporting units exceeded the carrying value, resulting in non-cash goodwill impairment charges totaling $240.3 million in the first quarter of 2020. In addition to the interim assessment, an impairment review of the goodwill associated with the Blowfish Malibu reporting unit was performed as of the first day of the fourth fiscal quarter, which indicated no impairment. In 2019, the Company elected to perform the quantitative assessment for all reporting units and determined that the fair values of the reporting units exceeded the carrying values, resulting in no impairment. During 2018, the Company recorded a non-cash impairment charge of $38.0 million for the impairment of goodwill of the Allen Edmonds reporting unit. Refer to Note 11 to the consolidated financial statements for further discussion of goodwill and intangible assets. 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. 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. During the first quarter of 2020, as a result of the triggering event from the economic impacts of COVID-19, an interim assessment of the Company’s indefinite-lived intangible assets was performed as of May 2, 2020. The impairment review resulted in total impairment charges of $22.4 million in the first quarter of 2020, including $12.2 million associated with the indefinite-lived Allen Edmonds trade name and $10.2 million of impairment associated with the indefinite-lived Via Spiga trade name. The carrying value of the Via Spiga trade name of $0.5 million is being amortized over approximately two 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 January 30, 2021, the Company believes it has provided adequate reserves for its self-insurance exposure. As of January 30, 2021 and February 1, 2020, self-insurance reserves were $10.4 million and $10.0 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, when obligations under the terms of a contract with the consumer are satisfied. This generally occurs at the time of transfer of control of merchandise. The Company considers several control indicators in its assessment of the timing of the transfer of control, including significant risks and rewards of ownership, physical possession and the Company’s right to receive payment. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring merchandise. 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. The Company applies the guidance using the portfolio approach in ASC 606, Revenue from Contracts with Customers, Gift Cards The Company sells gift cards to its customers in its retail stores, through its e-commerce 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 gift card breakage rate is determined based upon historical redemption patterns. Gift card breakage is recognized 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 (loss) 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 gift card breakage of $0.7 million, $1.1 million and $0.9 million in 2020, 2019 and 2018, respectively. Loyalty Program The Company maintains a loyalty program 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 loyalty 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 79% of net sales in the Famous Footwear segment were made to its loyalty program members in 2020, compared to 78% in 2019. As of January 30, 2021 and February 1, 2020, the Company had a loyalty program liability of $14.0 million and $16.4 million, respectively, which is included in other accrued expenses on the consolidated balance sheets. Store Impairment Charges 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 and, beginning in 2019, the lease right-of-use asset, 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 $56.3 million in 2020, $5.9 million in 2019 and $3.7 million in 2018. Impairment charges in 2019 were higher as a result of the adoption of ASC 842, Leases 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 $77.9 million, $100.9 million and $84.8 million in 2020, 2019 and 2018, respectively. These costs were offset by co-op advertising allowances recovered by the Company’s retail business of $3.4 million, $7.8 million and $7.6 million in 2020, 2019 and 2018, respectively. Total co-op advertising costs reflected as a reduction of net sales were $7.2 million in 2020, $13.3 million in 2019 and $9.4 million in 2018. Total advertising costs attributable to future periods that are deferred and recognized as a component of prepaid expenses and other current assets were $4.6 million and $2.8 million at January 30, 2021 and February 1, 2020, 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 benefit (provision) on the consolidated statements of earnings (loss). As further discussed in Note 7 to the consolidated financial statements, the CARES Act was signed into law in March 2020. The CARES Act modified certain provisions of the Internal Revenue Code, including the five-year carryback period for net operating losses incurred in 2018, 2019 and 2020 tax years, which permits the Company to carry back net operating losses from years with a statutory 21% federal tax rate to years when the rate was 35%. During 2020, the Company recorded a net income tax benefit of $8.2 million related to the carryback of the 2020 net operating loss. Operating Leases The Company leases all of its retail locations, a manufacturing facility and certain office locations, distribution centers and equipment under operating leases. Approximately 40% 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. As further discussed in Note 13 to the consolidated financial statements, during the first quarter of 2019, the Company adopted ASC 842 using the modified retrospective transition method. In accordance with ASC 842, lease right-of-use assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term. The majority of the Company’s leases do not provide an implicit rate and therefore, the Company uses an incremental borrowing rate based on the information available at the commencement date, including implied traded debt yield and seniority adjustments, to determine the present value of future payments. Lease expense for the minimum lease payments is recognized on a straight-line basis over the lease term. Variable lease payments are expensed as incurred. As further discussed below, the Company has elected to account for COVID-19-related lease concessions as though the enforceable rights and obligations existed in the original lease and accordingly, has treated these lease concessions as variable rent. Contingent Rentals Many of the leases covering retail stores require contingent rental payments in addition to the minimum monthly rental charge based on retail sales volume. Subsequent to the adoption of ASC 842 in the first quarter of 2019, the Company excludes from lease payments any variable payments that are not based on an index or market. If payment for a lease is fully contingent on sales, such as a percentage of sales gross rent lease, none of the lease payments are included in the lease right-of-use asset or the lease liability. In accordance with ASC 840, the Company recorded expense for contingent rentals during the period in which the retail sales volume exceeded 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. In accordance with ASC 842, the allowances are recorded within the lease right-of-use asset and amortized to income over the lease term as a reduction of rent expense. 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 the lease right-of-use asset, or under the guidance in ASC 840, 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 (loss). Pre-opening Costs Pre-opening costs associated with opening retail stores, including payroll, supplies and facility costs, are expensed as incurred. (Loss) Earnings Per Common Share Attributable to Caleres, Inc. Shareholders The Company uses the two-class method to calculate basic and diluted (loss) 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 (loss) earnings per common share attributable to Caleres, Inc. shareholders is computed by dividing the net (loss) 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 (loss) earnings per common share attributable to Caleres, Inc. shareholders is computed by dividing the net (loss) 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 4 to the consolidated financial statements for additional information related to the calculation of (loss) earnings per common share attributable to Caleres, Inc. shareholders. Comprehensive (Loss) Income Comprehensive (loss) 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 (loss) 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 (loss). 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 6 and Note 16 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 14, Note 15 and Note 16 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 the outcome of such proceedings and litigation currently pending will not have a material adverse effect on the consolidated financial position or results of operations. The Company accrues |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Jan. 30, 2021 | |
ACQUISITIONS | |
ACQUISITIONS | 2. ACQUISITIONS Acquisition of Blowfish, LLC On July 6, 2018, the Company entered into a Membership Interest Purchase Agreement ("Purchase Agreement") with Blowfish, LLC ("Blowfish Malibu"), pursuant to which the Company acquired a controlling interest in Blowfish Malibu. The noncontrolling interest is subject to a mandatory purchase obligation after a three-year period based upon an earnings multiple formula, as specified in the Purchase Agreement. The aggregate purchase price was estimated to be $28.0 million, including approximately $9.0 million initially assigned to the mandatory purchase obligation, which will be paid upon settlement in 2021. The remaining $19.0 million (or $16.8 million, net of $2.2 million of cash received) was funded with cash. The initial $9.0 million estimate of the mandatory purchase obligation was valued on a discounted basis and is subject to remeasurement based on the earnings formula specified in the Purchase Agreement. As of January 30, 2021, the fair value of the mandatory purchase obligation of $39.1 million is presented within current liabilities, reflecting the anticipated settlement in the third quarter of 2021. As of February 1, 2020, the mandatory purchase obligation was valued at $15.2 million and was presented within other liabilities on the consolidated balance sheets. Accretion and remeasurement adjustments on the mandatory purchase obligation are being recorded as interest expense and totaled $23.9 million and $6.0 million in 2020 and 2019, respectively. The operating results of Blowfish Malibu since July 6, 2018 have been included in the Company’s consolidated financial statements within the Brand Portfolio segment, with the elimination of sales and profit for sales to the Famous Footwear segment reflected in the Eliminations and Other category. Acquisition of Vionic On October 18, 2018, the Company entered into an Equity and Asset Purchase Agreement (the "Agreement") with the equity holders of Vionic Group LLC and Vionic International LLC, and VCG Holdings Ltd., a Cayman Islands corporation (collectively, "Vionic"), pursuant to which the Company acquired all of the outstanding equity interests of Vionic Group LLC and Vionic International LLC and certain related intellectual property from VCG Holdings Ltd for $360.0 million plus adjustments for cash and indebtedness, as defined in the Agreement. The aggregate purchase price was $360.7 million (or $352.7 million, net of $8.0 million of cash received). The purchase was funded with borrowings from the Company’s revolving credit agreement. The operating results of Vionic since October 18, 2018 have been included in the Company’s consolidated financial statements within the Brand Portfolio segment, with the elimination of sales and profits for sales to the Famous Footwear segment reflected in the Eliminations and Other category. The Company recognized Vionic acquisition and integration-related costs of $5.8 million ($4.3 million on an after-tax basis, or $0.10 per diluted share) and $8.9 million ($6.6 million on an after-tax basis, or $0.15 per diluted share) for the incremental cost of goods sold in 2019 and 2018, respectively, related to the amortization of the inventory fair value adjustment required for purchase accounting. There were no corresponding charges in 2020. In addition, the Company incurred acquisition and integration-related costs of $3.4 million ($2.6 million on an after-tax basis, or $0.07 per diluted share), $1.9 million ($1.4 million on an after-tax basis, or $0.03 per diluted share) and $4.5 million ($3.3 million on an after-tax basis, or $0.08 per diluted share) in 2020, 2019 and 2018, respectively. Of the $3.4 million of costs incurred in 2020, which were recorded as a component of restructuring and other special charges, $3.3 million is presented within the Brand Portfolio segment and $0.1 million is presented in the Eliminations and Other category. Of the $1.9 million of costs incurred in 2019, $1.8 million is presented within the Eliminations and Other category and $0.1 million is presented in the Brand Portfolio segment and recorded as a component of restructuring and other special charges, net. All of the 2018 costs are reflected within the Eliminations and Other category. Refer to Note 5 to the consolidated financial statements for additional information related to these costs. |
REVENUES
REVENUES | 12 Months Ended |
Jan. 30, 2021 | |
REVENUES | |
REVENUES | 3. REVENUES Disaggregation of Revenues The following table disaggregates revenue by segment and major source for 2020, 2019 and 2018: 2020 Eliminations and ($ thousands) Famous Footwear Brand Portfolio Other Total Retail stores $ 983,669 $ 52,796 $ — $ 1,036,465 Landed wholesale - e-commerce - drop ship (1) — 87,226 (4,192) 83,034 E-commerce - Company websites (1) 279,353 149,090 — 428,443 Total direct-to-consumer sales $ 1,263,022 $ 289,112 $ (4,192) $ 1,547,942 First-cost wholesale - e-commerce (1) — 1,249 — 1,249 Landed wholesale - e-commerce (1) — 124,548 — 124,548 Landed wholesale - other — 408,752 (44,770) 363,982 First-cost wholesale — 69,172 — 69,172 Licensing and royalty — 9,478 — 9,478 Other (2) 529 170 — 699 Total net sales $ 1,263,551 $ 902,481 $ (48,962) $ 2,117,070 2019 Eliminations and ($ thousands) Famous Footwear Brand Portfolio Other Total Retail stores $ 1,427,473 $ 154,549 $ — $ 1,582,022 Landed wholesale - e-commerce - drop ship (1) — 93,249 — 93,249 E-commerce - Company websites (1) 159,724 145,897 — 305,621 Total direct-to-consumer sales $ 1,587,197 $ 393,695 $ — $ 1,980,892 First-cost wholesale - e-commerce (1) — 2,204 — 2,204 Landed wholesale - e-commerce (1) — 190,536 — 190,536 Landed wholesale - other — 708,262 (72,955) 635,307 First-cost wholesale — 96,021 — 96,021 Licensing and royalty — 15,469 — 15,469 Other (2) 860 273 — 1,133 Net sales $ 1,588,057 $ 1,406,460 $ (72,955) $ 2,921,562 2018 Eliminations and ($ thousands) Famous Footwear Brand Portfolio Other Total Retail stores $ 1,469,857 $ 166,903 $ — $ 1,636,760 Landed wholesale - e-commerce - drop ship (1) — 61,518 — 61,518 E-commerce - Company websites (1) 136,327 125,877 — 262,204 Total direct-to-consumer sales $ 1,606,184 $ 354,298 $ — $ 1,960,482 First-cost wholesale - e-commerce (1) — 1,086 — 1,086 Landed wholesale - e-commerce (1) — 155,637 — 155,637 Landed wholesale - other — 690,988 (85,513) 605,475 First-cost wholesale — 94,734 — 94,734 Licensing and royalty — 16,501 — 16,501 Other (2) 624 307 — 931 Net sales $ 1,606,808 $ 1,313,551 $ (85,513) $ 2,834,846 (1) Collectively referred to as "e-commerce" below (2) Includes breakage revenue from unredeemed gift cards Retail stores The majority of the Company’s revenue is generated from retail sales where control is transferred and revenue is recognized at the point of sale. Retail sales are recorded net of estimated returns and exclude sales tax. The Company carries a returns reserve and a corresponding return asset for expected returns of merchandise. Retail sales to members of the Company’s loyalty programs, including the Famously You Rewards program, include two performance obligations: the sale of merchandise and the delivery of points that may be redeemed for future purchases. The transaction price is allocated to the separate performance obligations based on the relative stand-alone selling price. The stand-alone selling price for the points is estimated using the retail value of the merchandise earned, adjusted for estimated breakage based upon historical redemption patterns. The Company disregards the effect of the time value of money between payment for and receipt of goods when the sale does not include a financing element. The revenue associated with the initial merchandise purchased is recognized immediately and the value assigned to the points is deferred until the points are redeemed, forfeited or expired. Landed wholesale Landed sales are wholesale sales in which the merchandise is shipped directly to the customer from the Company’s warehouses. Many landed customers arrange their own transportation of merchandise and, with limited exceptions, control is transferred at the time of shipment. First-cost wholesale First-cost sales are wholesale sales in which the Company purchases merchandise from an international factory that manufactures the product and subsequently sells to a customer at an overseas port. Revenue is recognized at the time the merchandise is delivered to the customer’s designated freight forwarder and control is transferred to the customer. E-commerce The Company also generates revenue from sales on websites maintained by the Company that are shipped from the Company’s distribution centers or retail stores directly to the consumer, picked up directly by the consumer from the Company’s stores and e-commerce sales from the Company’s wholesale customers’ websites that are fulfilled on a drop-ship or first cost basis (collectively referred to as "e-commerce"). The Company transfers control and recognizes revenue for merchandise sold that is shipped directly to an individual consumer upon delivery to the consumer. Licensing and royalty The Company has license agreements with third parties allowing them to sell the Company’s branded product, or other merchandise that uses the Company’s owned or licensed brand names. These license agreements provide the licensee access to the Company’s symbolic intellectual property, and revenue is therefore recognized over the license term. For royalty contracts that do not have guaranteed minimums, the Company recognizes revenue as the licensee’s sales occur. For royalty contracts that have guaranteed minimums, revenue for the guaranteed minimum is recognized on a straight-line basis during the term, until such time that the cumulative royalties exceed the total minimum guarantee. Up-front payments are recognized over the contractual term to which the guaranteed minimum relates. Contract Balances Revenue is recorded at the transaction price, net of estimates for variable consideration for which reserves are established, including returns, allowances and discounts. Variable consideration is estimated using the expected value method and given the large number of contracts with similar characteristics, the portfolio approach is applied to determine the variable consideration for each revenue stream. Reserves for projected returns are based on historical patterns and current expectations. Information about significant contract balances from contracts with customers is as follows: ($ thousands) January 30, 2021 February 1, 2020 Customer allowances and discounts $ 17,043 $ 26,200 Loyalty programs liability 13,986 16,405 Returns reserve 11,040 14,033 Gift card liability 6,091 5,742 Changes in contract balances with customers generally reflect differences in relative sales volume for the period presented. In addition, during 2020, the loyalty programs liability increased $26.4 million due to points and material rights accrued for purchases and decreased $28.8 million due to expirations and redemptions. During 2019, the loyalty programs liability increased $27.8 million due to points and material rights accrued for purchases and decreased $26.0 million due to expirations and redemptions. |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 12 Months Ended |
Jan. 30, 2021 | |
EARNINGS (LOSS) PER SHARE | |
EARNINGS (LOSS) PER SHARE | 4. EARNINGS (LOSS) PER SHARE The Company uses the two-class method to compute basic and diluted (loss) earnings per common share attributable to Caleres, Inc. shareholders. In periods of net loss, no effect is given to the Company’s participating securities since they do not contractually participate in the losses of the Company. The following table sets forth the computation of basic and diluted earnings (loss) per common share attributable to Caleres, Inc. shareholders: ($ thousands, except per share amounts) 2020 2019 2018 NUMERATOR Net (loss) earnings $ (438,994) $ 62,082 $ (5,481) Net (earnings) loss attributable to noncontrolling interests (120) 737 40 Net (loss) earnings attributable to Caleres, Inc. $ (439,114) $ 62,819 $ (5,441) Net earnings allocated to participating securities — (1,988) — Net (loss) earnings attributable to Caleres, Inc. after allocation of earnings to participating securities $ (439,114) $ 60,831 $ (5,441) DENOMINATOR Denominator for basic (loss) earnings per common share attributable to Caleres, Inc. shareholders 37,220 39,796 41,756 Dilutive effect of share-based awards — 57 — Denominator for diluted (loss) earnings per common share attributable to Caleres, Inc. shareholders 37,220 39,853 41,756 Basic (loss) earnings per common share attributable to Caleres, Inc. shareholders $ (11.80) $ 1.53 $ (0.13) Diluted (loss) earnings per common share attributable to Caleres, Inc. shareholders $ (11.80) $ 1.53 $ (0.13) Options to purchase 22,667 and 16,667 shares of common stock in 2020 and 2019, respectively, were not included in the denominator for diluted (loss) earnings per common share attributable to Caleres, Inc. shareholders because the effect would be antidilutive. There were no options to purchase shares excluded from the denominator in 2018. Due to the Company’s net loss attributable to Caleres, Inc. in 2020 and 2018, the denominator for diluted loss per common share attributed to Caleres, Inc. shareholders is the same as the denominator for basic loss per common share attributable to Caleres, Inc. shareholders. The Company repurchased 2,902,122, 1,704,240 and 1,465,649 shares at a cost of $23.3 million, $33.4 million and $43.8 million during the years ended January 30, 2021, February 1, 2020 and February 2, 2019, respectively, under the 2011, 2018 and 2019 publicly announced share repurchase programs. The 2011 and 2018 repurchase programs permit repurchases of up to 2.5 million shares and the 2019 repurchase program permits repurchases of up to 5.0 million shares, as further discussed in Item 5, Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
RESTRUCTURING AND OTHER INITIAT
RESTRUCTURING AND OTHER INITIATIVES | 12 Months Ended |
Jan. 30, 2021 | |
RESTRUCTURING AND OTHER INITIATIVES | |
RESTRUCTURING AND OTHER INITIATIVES | 5. RESTRUCTURING AND OTHER INITIATIVES COVID-19-Related Impairments and Expenses The Company incurred costs associated with the COVID-19 pandemic and related impacts on the Company’s business, totaling $114.3 million ($115.5 million on an after-tax basis, or $3.10 per diluted share) during 2020. These costs included non-cash impairment of property and equipment and lease right-of-use assets, incremental inventory markdowns, employee severance and other direct expenses specific to the impact of COVID-19 on the Company’s operations. Of the $114.3 million in charges, $80.9 million is presented in restructuring and other special charges, net and $33.4 million is reflected as cost of goods sold in the consolidated statements of earnings (loss). Of the $80.9 million reflected as restructuring and other special charges, $63.7 million is reflected in the Brand Portfolio segment, $16.6 million is reflected in the Famous Footwear segment and $0.6 million is reflected within the Eliminations and Other category. The $33.4 million reflected as cost of goods sold represents incremental inventory markdowns, of which $27.4 million is reflected in the Brand Portfolio segment and $6.0 million is reflected in the Famous Footwear segment. There were no corresponding charges in 2019 or 2018. Blowfish Mandatory Purchase Obligation In 2018, the Company acquired a controlling interest in Blowfish Malibu, as further discussed in Note 2 to the consolidated financial statements. The noncontrolling interest is subject to a mandatory purchase obligation after a three-year period based upon an earnings multiple formula as specified in the purchase agreement. Accretion and remeasurement adjustments on the mandatory purchase obligation are being recorded as interest expense. The fair value adjustments on the mandatory purchase obligation totaled $23.9 million ($17.8 million on an after-tax basis, or $0.48 per diluted share) in 2020 and $5.4 million ($4.0 million on an after-tax basis, or $0.10 per diluted share) in 2019. Refer to further discussion regarding the mandatory purchase obligation in Note 15 to the consolidated financial statements. Brand Portfolio – Business Exits During 2020, the Company incurred costs of $16.4 million ($14.9 million on an after-tax basis, or $0.40 per diluted share) related to the decision to close all but a limited number of its Naturalizer retail stores and exit the Fergie brand. Of these charges, which are all reflected within the Brand Portfolio segment, $12.4 million is presented as restructuring and other special charges and primarily represents non-cash impairment of property and right-of-use lease assets, incremental rent and lease termination costs, and severance costs. An additional $4.0 million is presented as cost of goods sold and represents the incremental inventory markdowns required to reduce the value of inventory for these two brands to net realizable value. As of January 30, 2021, reserves of $2.1 million were included in other accrued expenses on the consolidated balance sheet. During 2019, the Company incurred costs of $3.5 million ($2.6 million on an after-tax basis, or $0.06 per diluted share) related to the decision to exit the Carlos brand and reposition the Via Spiga brand. Of these charges, which are all reflected within the Brand Portfolio segment, $3.0 million relates to incremental inventory markdowns required to reduce the value of inventory to net realizable value and is presented in cost of goods sold on the consolidated statements of earnings (loss), while the remaining $0.5 million, which is presented in restructuring and other special charges, is for severance and other related costs. During 2018, the Company incurred costs of $2.4 million ($1.8 million on an after-tax basis, or $0.04 per diluted share) related to the decision to exit the Diane von Furstenberg and George Brown Bilt brands. Of these charges, which are all reflected within the Brand Portfolio segment, $1.8 million primarily represents incremental inventory markdowns required to reduce the value of inventory to net realizable value and is presented in cost of goods sold on the consolidated statements of earnings (loss), while the remaining $0.6 million is for severance and other related costs and presented in restructuring and other special charges. Vionic Acquisition and Integration-Related Costs On October 18, 2018, the Company acquired all of the outstanding equity interests of Vionic Group LLC and Vionic International LLC, as further discussed in Note 2 to the consolidated financial statements. The Company incurred acquisition and integration-related costs associated with the acquisition totaling $3.4 million ($2.6 million on an after-tax basis, $0.07 per diluted share), $1.9 million ($1.4 million on an after-tax basis, or $0.03 per diluted share) and $4.5 million ($3.3 million on an after-tax basis, or $0.08 per diluted share) during 2020, 2019 and 2018, respectively. Of the $3.4 million in charges in 2020, which were presented as restructuring and other special charges in the consolidated statements of earnings (loss), $3.3 million is reflected within the Brand Portfolio segment and $0.1 million is reflected within the Eliminations and Other category, and represent non-cash impairment of assets, severance and other related costs. Of the $1.9 million in charges in 2019 presented as restructuring and other special charges, which were primarily for severance and professional fees, $1.8 million is reflected within the Eliminations and Other category and $0.1 million is reflected in the Brand Portfolio segment. All of the 2018 charges, which were primarily for professional fees, are reflected within the Eliminations and Other category. Expense Containment Initiatives During the fourth quarter of 2019, the Company announced expense containment initiatives, including a Voluntary Early Retirement Program ("VERP") and other restructuring actions. The total costs to implement these initiatives, which were recorded in the fourth quarter of 2019, were $15.0 million ($11.2 million on an after-tax basis, or $0.27 per diluted share). These costs included employee-related costs for severance, including health care benefits and enhanced pension benefits. Of the $15.0 million in charges, $12.3 million is presented as restructuring and other special charges, net and $2.7 million is reflected as other income, net in the consolidated statements of earnings (loss). Of the $12.3 million reflected as restructuring and other special charges, $5.0 million is reflected in the Brand Portfolio segment, $3.8 million is reflected within the Eliminations and Other category and $3.5 million is reflected in the Famous Footwear segment. The $2.7 million presented in other income within the Eliminations and Other category is a one-time pension settlement charge and special termination benefit costs associated with the VERP, as further discussed in Note 6 to the consolidated financial statements. As of February 1, 2020, reserves of $8.0 million were included in other accrued expenses on the consolidated balance sheets, with no corresponding reserves as of January 30, 2021. Integration and Reorganization of Men’s Brands During 2018, the Company incurred integration and reorganization costs related to the 2016 acquisition of Allen Edmonds, primarily for professional fees and severance, totaling $5.8 million ($4.3 million on an after-tax basis, or $0.10 per diluted share), related to the men’s business. These charges are presented in restructuring and other special charges in the consolidated statement of earnings (loss). Of the $5.8 million of costs in 2018, $5.4 million is included in the Brand Portfolio segment and $0.4 million is reflected within the Eliminations and Other category. Logistics Transition During the fourth quarter of 2018, the Company incurred costs of $4.5 million ($3.3 million on an after-tax basis, or $0.08 per diluted share) associated with the transition from a third-party operated warehouse in Chino, California to new company-operated Brand Portfolio warehouse facilities in California, as well as the transition of the Allen Edmonds distribution center in Port Washington, Wisconsin to the Company’s existing retail distribution center in Lebanon, Tennessee. These charges are presented as restructuring and other special charges within the Brand Portfolio segment. Retail Operations Restructuring During 2018, the Company incurred costs, primarily for severance expense, of $0.4 million ($0.3 million on an after-tax basis, or $0.01 per diluted share), related to restructuring of its retail operations, which are presented in restructuring and other special charges in the consolidated statements of earnings (loss). All of the costs for 2018 are presented within the Famous Footwear segment. |
RETIREMENT AND OTHER BENEFIT PL
RETIREMENT AND OTHER BENEFIT PLANS | 12 Months Ended |
Jan. 30, 2021 | |
RETIREMENT AND OTHER BENEFIT PLANS | |
RETIREMENT AND OTHER BENEFIT PLANS | 6. RETIREMENT AND OTHER BENEFIT PLANS The Company sponsors pension plans in both the United States and Canada. 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 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 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 $20,000 for qualifying retired employees. Benefit Obligations The following table sets forth changes in benefit obligations, including all domestic and Canadian plans: Pension Benefits Other Postretirement Benefits ($ thousands) 2020 2019 2020 2019 Benefit obligation at beginning of year $ 388,288 $ 342,192 $ 1,371 $ 1,461 Service cost 8,492 7,219 — — Interest cost 12,205 14,811 41 60 Plan participants’ contribution 7 9 4 6 Plan amendments — 93 — — Actuarial loss (gain) 8,710 58,278 (55) (39) Benefits paid (15,272) (14,399) (112) (117) Settlements (36,747) (20,263) — — Contractual termination benefits — 482 — — Curtailments (95) (90) — — Foreign exchange rate changes (18) (44) — — Benefit obligation at end of year $ 365,570 $ 388,288 $ 1,249 $ 1,371 The accumulated benefit obligation for the United States pension plans was $358.7 million and $379.9 million as of January 30, 2021 and February 1, 2020, respectively. The accumulated benefit obligation for the Canadian pension plans was $4.0 million and $4.3 million as of January 30, 2021 and February 1, 2020, respectively. Pension Benefits Other Postretirement Benefits Weighted–average assumptions used to determine benefit obligations, end of year 2020 2019 2020 2019 Discount rate 3.10 % 3.25 % 3.10 % 3.25 % Rate of compensation increase 3.00 % 3.00 % N/A N/A As of January 30, 2021, the Company is using the PRI-2012 Bottom Quartile mortality table, projected using generational scale MP-2020, an updated base mortality table issued by the Society of Actuaries in 2020, to estimate the plan liabilities. Actuarial losses, related to the change in mortality projection scales from the MP-2019 scale used in 2019, increased the projected benefit obligation by approximately $2.0 million as of January 30, 2021. In the fourth quarter of 2020, a lump sum option was offered to certain former employees, resulting in $35.7 million of lump sum payments and a settlement charge that decreased the net periodic benefit income for 2020 by $1.1 million. During the fourth quarter of 2019, in conjunction with the Company’s expense containment initiatives, a Voluntary Early Retirement Program ("VERP") was offered to pension participants who met certain criteria. A lump sum option was also offered to certain former employees during the fourth quarter of 2019. The VERP and terminated vested lump sums resulted in $19.9 million of lump sum payments, and a settlement charge and curtailment that decreased the net periodic benefit income for 2019 by $2.7 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 2020 were 70% equities and 30% debt securities. Allocations may change periodically based upon changing market conditions. Corporate stocks – common did not include any Company stock at January 30, 2021 or February 1, 2020. Assets of the Canadian pension plans, which total approximately $4.6 million at January 30, 2021, were invested 55% in equity funds, 42% in bond funds and 3% in money market funds. The Canadian pension plans did not include any Company stock as of January 30, 2021 or February 1, 2020. 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 15 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 and certain U.S. government securities are not traded on an exchange but are based on observable inputs that can be corroborated. Therefore, these investments are classified within Level 2 of the fair value hierarchy. Certain preferred securities were offered in a private placement. The fair value of these investments is based on unobservable prices and therefore, they are classified within Level 3 of the fair value hierarchy. ● The alternative investment fund, with a fair value of $17.5 million and $16.3 million as of January 30, 2021 and February 1, 2020, respectively, is an investment in a pool of long-duration domestic investment grade assets. This investment is measured using net asset value per share, and therefore, is not classified within the fair value hierarchy. ● The unallocated insurance contract is measured at net asset value per share, and therefore, is not classified within the fair value hierarchy. The fair values of the Company’s pension plan assets at January 30, 2021 by asset category are as follows: Fair Value Measurements at January 30, 2021 ($ thousands) Total Level 1 Level 2 Level 3 Asset Cash and cash equivalents $ 9,149 $ 9,149 $ — $ — U.S. government securities 108,733 50,116 58,617 — Interest rate swap agreements (4,597) — (4,597) — Mutual fund 38,064 38,064 — — Exchange-traded funds 119,647 119,647 — — Corporate stocks - common 160,137 160,112 — 25 Preferred securities 2,495 — — 2,495 S&P 500 Index options (6,482) (6,482) — — Total investments in the fair value hierarchy $ 427,146 $ 370,606 $ 54,020 $ 2,520 Investments measured at net asset value: Alternative investment fund 17,522 — — — Unallocated insurance contract 49 — — — Total investments measured at net asset value 17,571 — — — Total investments at fair value $ 444,717 $ 370,606 $ 54,020 $ 2,520 The fair values of the Company’s pension plan assets at February 1, 2020 by asset category are as follows: Fair Value Measurements at February 1, 2020 ($ thousands) Total Level 1 Level 2 Level 3 Asset Cash and cash equivalents $ 31,588 $ 31,588 $ — $ — U.S. government securities 94,285 18,388 75,897 — Mutual fund 32,551 32,551 — — Exchange-traded funds 71,505 71,505 — — Corporate stocks - common 177,743 177,718 — 25 Preferred securities 852 — — 852 S&P 500 Index options 3,252 3,252 — — Total $ 411,776 $ 335,002 $ 75,897 $ 877 Investments measured at net asset value: Alternative investment fund 16,335 — — — Unallocated insurance contract 75 — — — Total investments measured at net asset value 16,410 — — — Total investments at fair value $ 428,186 $ 335,002 $ 75,897 $ 877 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) 2020 2019 2020 2019 Fair value of plan assets at beginning of year $ 428,186 $ 381,450 $ — $ — Actual return on plan assets 67,413 81,282 — — Employer contributions 1,148 151 108 111 Plan participants’ contributions 7 9 4 6 Benefits paid (15,272) (14,399) (112) (117) Settlements (36,747) (20,263) — — Foreign exchange rate changes (18) (44) — — Fair value of plan assets at end of year $ 444,717 $ 428,186 $ — $ — Funded Status The over-funded status as of January 30, 2021 and February 1, 2020 for pension benefits was $79.1 million and $39.9 million, respectively. The under-funded status as of January 30, 2021 and February 1, 2020 for other postretirement benefits was $1.2 million and $1.4 million, respectively. Amounts recognized in the consolidated balance sheets consist of: Pension Benefits Other Postretirement Benefits ($ thousands) 2020 2019 2020 2019 Prepaid pension costs (noncurrent assets) $ 88,833 $ 50,660 $ — $ — Accrued benefit liabilities (current liability) (1,896) (2,405) (194) (200) Accrued benefit liabilities (noncurrent liability) (7,790) (8,361) (1,055) (1,171) Net amount recognized at end of year $ 79,147 $ 39,894 $ (1,249) $ (1,371) 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 Accumulated Benefit Obligation Fair Value of Plan Assets Exceeds the Fair Value of Plan Assets ($ thousands) 2020 2019 2020 2019 End of Year Projected benefit obligation $ 9,686 $ 10,766 $ 9,686 $ 10,766 Accumulated benefit obligation 8,954 9,516 8,954 9,516 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 January 30, 2021 and February 1, 2020 are as follows: Pension Benefits Other Postretirement Benefits ($ thousands) 2020 2019 2020 2019 Components of accumulated other comprehensive loss, net of tax: Net actuarial loss (gain) $ 10,438 $ 33,771 $ (466) $ (507) Net prior service credit (947) (2,093) — — Accumulated other comprehensive loss, net of tax $ 9,491 $ 31,678 $ (466) $ (507) Net Periodic Benefit Income Net periodic benefit income for 2020, 2019 and 2018 for all domestic and Canadian plans included the following components: Pension Benefits Other Postretirement Benefits ($ thousands) 2020 2019 2018 2020 2019 2018 Service cost $ 8,492 $ 7,219 $ 8,995 $ — $ — $ — Interest cost 12,205 14,811 14,236 41 60 59 Expected return on assets (31,498) (27,735) (29,091) — — — Amortization of: Actuarial loss (gain) 2,718 3,904 4,122 (110) (107) (125) Prior service credit (1,354) (1,486) (1,567) — — — Settlement cost 1,353 2,236 324 — — — Curtailments (189) — — — — — Cost of contractual termination benefits — 482 — — — — Total net periodic benefit income $ (8,273) $ (569) $ (2,981) $ (69) $ (47) $ (66) The non-service cost components of net periodic benefit income are included in other income, net in the consolidated statements of earnings (loss). Service cost is included in selling and administrative expenses. Weighted-average assumptions used to determine net periodic benefit income: Pension Benefits Other Postretirement Benefits 2020 2019 2018 2020 2019 2018 Discount rate 3.25 % 4.35 % 4.00 % 3.25 % 4.35 % 4.00 % Rate of compensation increase 3.00 % 3.00 % 3.00 % N/A N/A N/A Expected return on plan assets 7.50 % 7.75 % 8.00 % 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 Other Postretirement ($ thousands) Funded Plan SERP Total Benefits Employer Contributions 2021 expected contributions to plan trusts $ 58 $ — $ 58 $ — 2021 expected contributions to plan participants — 1,925 1,925 197 2021 refund of assets (e.g. surplus) to employer 136 — 136 — Expected Benefit Payments — 2021 $ 15,405 $ 1,925 $ 17,330 $ 197 2022 16,883 1,465 18,348 167 2023 15,301 2,094 17,395 141 2024 15,694 247 15,941 119 2025 16,271 270 16,541 99 2026-2030 87,139 1,840 88,979 285 Defined Contribution Plans The Company’s domestic defined contribution 401(k) plan covers salaried and certain hourly employees. Prior to certain plan changes that became effective on January 1, 2019, the Company’s contributions represented a partial matching of employee contributions, generally up to a maximum of 3.5% of the employee’s salary and bonus. Currently, for eligible salaried employees, the Company makes a core contribution of 1.5% and a matching contribution of up to 50% of the first 6% of the employees’ contributions. In addition, the Company has the discretion to contribute up to an additional 2% profit-sharing benefit based on the Company’s performance. The Company’s expense for this plan was $4.0 million in 2020, $5.4 million in 2019, and $4.4 million in 2018. 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 $0.1 million in 2020, and $0.2 million in both 2019 and 2018. 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 $7.9 million and $8.0 million as of January 30, 2021 and February 1, 2020, respectively, are presented in employee compensation and benefits in the accompanying consolidated balance sheets. The assets held by the trust of $7.9 million and $8.0 million as of January 30, 2021 and February 1, 2020, respectively, are presented 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 (loss). 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 $1.0 million as of January 30, 2021 and $1.5 million as of February 1, 2020 are based on 23,644 and 71,108 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 (loss). |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jan. 30, 2021 | |
INCOME TAXES | |
INCOME TAXES | 7. INCOME TAXES On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law. The CARES Act modified certain provisions to the Internal Revenue Code. Among the provisions modified by the CARES Act was a five-year carryback period for net operating losses incurred in the 2018, 2019 and 2020 tax years; temporary removal of the 80% limitation on net operating loss usage, reinstated for tax years after 2020; a temporary increase in the interest expense limitation and acceleration of refundable AMT credit. The five-year carryback presented an opportunity to carry back net operating losses from years with a statutory 21% federal tax rate to years when the rate was 35%. During 2020, the Company recorded a net income tax benefit of $8.2 million related to the carryback of the 2020 net operating loss. The components of (loss) earnings before income taxes consisted of domestic loss before income taxes of $441.5 million in 2020 and domestic earnings before income taxes of $37.3 million and $40.0 million in 2019 and 2018, respectively. The Company’s international earnings before incomes taxes were $41.3 million in 2019 and international losses before income taxes were $75.6 million and $45.8 million in 2020 and 2018, respectively. The components of income tax (benefit) provision on (loss) earnings were as follows: ($ thousands) 2020 2019 2018 Federal Current $ (37,140) $ 4,003 $ 1,953 Deferred (45,145) 5,390 4,451 Total federal income tax (benefit) provision (82,285) 9,393 6,404 State Current 1,532 290 (718) Deferred (9,038) 2,403 1,284 Total state income tax (benefit) provision (7,506) 2,693 566 International Current 2,288 3,914 5,413 Deferred 9,386 511 (12,656) Total international income tax provision (benefit) 11,674 4,425 (7,243) Total income tax (benefit) provision $ (78,117) $ 16,511 $ (273) The differences between the income tax (benefit) provision reflected in the consolidated financial statements and the amounts calculated at the federal statutory income tax rate were as follows: ($ thousands) 2020 2019 2018 Income taxes at statutory rate $ (108,593) $ 16,505 $ (1,208) State income taxes, net of federal tax benefit (17,433) 2,218 2,519 International earnings taxed at differing rates from U.S. statutory (5,210) (4,071) (4,210) Share-based compensation 1,094 86 (347) Non-deductibility of goodwill impairment 20,179 — 7,989 Impairment of international trade name taxed at higher rate (1,440) — (2,400) Provision for valuation allowance 41,019 872 — CARES Act NOL, net carryback benefit (8,203) — — Income tax reform, net benefit — — (3,891) GILTI, BEAT and FDII provisions — 668 613 Non-deductibility of acquisition costs — — 46 Other (1) 470 233 616 Total income tax (benefit) provision $ (78,117) $ 16,511 $ (273) (1) The other category of income tax (benefit) provision principally represents the impact of expenses that are not deductible or partially deductible for federal income tax purposes and the impact of any return-to-provision adjustments. In 2020, the Company’s effective tax rate was 15.1% in 2020, compared to 21.0% in 2019. In 2020, the Company’s effective tax rate was impacted by several discrete tax items, including the non-deductibility of a portion of its goodwill impairment charges and the incremental tax provision related to the vesting of stock awards. The Company’s tax benefit also includes the favorable impact of approximately $8.2 million related to the CARES Act, which permits the Company to carry back a significant portion of our 2020 losses to years with a higher federal tax rate, as discussed above. In 2019, the Company’s effective tax rate was impacted by discrete tax benefits totaling $1.4 million, primarily reflecting adjustments to changes in tax rates in state and other international jurisdictions. In 2018, the Company’s effective tax rate was impacted by several factors, including the non-deductibility of our goodwill impairment charge of $38.0 million. In addition, discrete tax benefits totaling $5.9 million were recognized in 2018, primarily reflecting adjustments associated with the Tax Cuts and Jobs Act and related actions for state and other international jurisdictions (in aggregate, "income tax reform"). Significant components of the Company’s deferred income tax assets and liabilities were as follows: ($ thousands) January 30, 2021 February 1, 2020 Deferred Tax Assets Lease obligations $ 176,953 $ 200,408 Goodwill and intangible assets 25,659 — Net operating loss carryforward/carryback 20,736 6,671 Accrued expenses 18,610 18,762 Employee benefits, compensation and insurance 11,006 12,812 Accounts receivable 6,149 3,109 Inventory capitalization and inventory reserves 4,130 4,123 Impairment of investment in nonconsolidated affiliate 1,470 1,470 Postretirement and postemployment benefit plans 285 314 Capital loss carryforward 14 14 Other 1,245 1,349 Total deferred tax assets, before valuation allowance 266,257 249,032 Valuation allowance (49,981) (4,809) Total deferred tax assets, net of valuation allowance $ 216,276 $ 244,223 Deferred Tax Liabilities Lease right-of-use assets $ (151,962) $ (187,978) LIFO inventory valuation (38,437) (44,774) Retirement plans (21,041) (10,466) Capitalized software (5,331) (4,420) Depreciation (4,779) (8,416) Goodwill and intangible assets — (29,636) Other (2,970) (3,811) Total deferred tax liabilities (224,520) (289,501) Net deferred tax liability $ (8,244) $ (45,278) As of January 30, 2021, the Company had various federal, state and international net operating loss (“NOL”) carryforwards with tax values totaling $20.7 million. The state NOLs totaling $11.6 million have carryforward periods ranging from one 16 As of January 30, 2021, no deferred taxes have been provided on the accumulated unremitted earnings of the Company’s international 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 international earnings, as required by the Tax Cuts and Jobs Act. The Company periodically evaluates its international investment opportunities and plans, as well as its international working capital needs, to determine the level of investment required and, accordingly, determines the level of international earnings that is considered indefinitely reinvested. Based upon that evaluation, earnings of the Company’s international 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 international earnings. If the Company’s unremitted international earnings were not considered indefinitely reinvested as of January 30, 2021, an immaterial amount of additional deferred taxes would have been provided. Uncertain Tax Positions ASC 740, Income Taxes 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. As of January 30, 2021, February 1, 2020 and February 2, 2019, the Company had unrecognized tax benefits of $1.5 million, $1.9 million and $2.5 million, respectively, associated with international jurisdictions. For federal purposes, the Company’s tax filings for fiscal years 2017 to 2019 remain open to examination but are not currently being examined. The Company also files tax returns in various international jurisdictions and numerous states for which various tax years are subject to examination and currently involved in audits. While the Company is involved in examinations in certain jurisdictions, it does not expect any significant changes in its liability for uncertain tax positions during the next 12 months. |
BUSINESS SEGMENT INFORMATION
BUSINESS SEGMENT INFORMATION | 12 Months Ended |
Jan. 30, 2021 | |
BUSINESS SEGMENT INFORMATION | |
BUSINESS SEGMENT INFORMATION | 8. BUSINESS SEGMENT INFORMATION The Company’s reportable segments are Famous Footwear and Brand Portfolio. The Famous Footwear segment is comprised of Famous Footwear, famousfootwear.com and famousfootwear.ca. Famous Footwear operated 916 stores at the end of 2020, primarily selling branded footwear for the entire family. The Brand Portfolio segment is comprised of wholesale operations selling the Company’s branded footwear, and the retail stores and e-commerce sites associated with those brands. This segment sources and markets licensed, branded and private-label footwear primarily to online retailers, national chains, department stores, mass merchandisers and independent retailers as well as Company-owned Famous Footwear, Allen Edmonds, Naturalizer and Sam Edelman stores and e-commerce businesses. The Brand Portfolio segment included 107 branded retail stores in the United States, 50 branded retail stores in Canada, and 13 branded retail stores in China at the end of 2020. The Company’s Famous Footwear and Brand Portfolio reportable segments are operating units that are managed separately. These reportable segments reflect the level at which the Company’s chief operating decision maker evaluates financial performance and allocates resources. Operating (loss) earnings for the reportable segments represents gross profit, less selling and administrative expenses, impairment of goodwill and intangible assets 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, and intersegment earnings related to inventory on hand at the purchasing segment are eliminated against the earnings. Corporate assets, administrative expenses and other costs and recoveries that are not allocated to the operating units, as well as the elimination of intersegment sales and profit, are reported in the Eliminations and Other category. Following is a summary of certain key financial measures for the respective periods: Famous Brand Eliminations ($ thousands) Footwear Portfolio and Other Total Fiscal 2020 Net sales $ 1,263,551 $ 902,481 $ (48,962) $ 2,117,070 Intersegment sales — 48,962 — 48,962 Depreciation and amortization 23,090 28,889 8,560 60,539 Operating loss (23,821) (408,444) (53,393) (485,658) Segment assets 765,754 851,027 250,269 1,867,050 Purchases of property and equipment 7,693 6,486 2,607 16,786 Capitalized software 870 153 4,251 5,274 Fiscal 2019 Net sales $ 1,588,057 $ 1,406,460 $ (72,955) $ 2,921,562 Intersegment sales — 72,955 — 72,955 Depreciation and amortization 26,706 29,875 8,981 65,562 Operating earnings (loss) 76,896 58,153 (31,236) 103,813 Segment assets 891,042 1,383,500 157,165 2,431,707 Purchases of property and equipment 16,129 21,973 6,431 44,533 Capitalized software 16 1,544 4,059 5,619 Fiscal 2018 Net sales $ 1,606,808 $ 1,313,551 $ (85,513) $ 2,834,846 Intersegment sales — 85,513 — 85,513 Depreciation and amortization 28,816 20,768 13,113 62,697 Operating earnings (loss) 85,268 (40,799) (44,068) 401 Segment assets 502,507 1,211,008 125,053 1,838,568 Purchases of property and equipment 17,552 41,993 2,938 62,483 Capitalized software 351 814 3,251 4,416 Products purchased for the Famous Footwear segment from three key third-party suppliers (Nike, Skechers and adidas) represented approximately 25%, 22% and 24% of consolidated net sales for 2020, 2019 and 2018, respectively. Following is a reconciliation of operating (loss) earnings to (loss) earnings before income taxes: ($ thousands) 2020 2019 2018 Operating (loss) earnings $ (485,658) $ 103,813 $ 401 Interest expense, net (48,287) (33,123) (18,277) Loss on early extinguishment of debt — — (186) Other income, net 16,834 7,903 12,308 (Loss) earnings before income taxes $ (517,111) $ 78,593 $ (5,754) 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 international operations consist of wholesale and retail operations primarily in Eastern Asia, Canada and Europe. The Eastern Asia operations primarily include first-cost transactions, where footwear is sold at international 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, including lease right-of-use assets and property and equipment, by geographic area were as follows: ($ thousands) 2020 2019 2018 Net Sales United States $ 1,984,713 $ 2,734,912 $ 2,656,928 Eastern Asia 77,793 98,045 93,883 Canada 46,781 80,247 63,354 Other 7,783 8,358 20,681 Total net sales $ 2,117,070 $ 2,921,562 $ 2,834,846 Long-Lived Assets (1) United States $ 703,642 $ 881,338 $ 219,975 Canada 20,246 35,317 9,381 Eastern Asia 2,660 3,527 1,348 Other 192 258 80 Total long-lived assets $ 726,740 $ 920,440 $ 230,784 (1) Long-lived assets include $554,303 and $695,594 of lease right-of-use assets in 2020 and 2019, respectively, with no corresponding amounts in 2018, as it precedes the adoption of ASC 842. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Jan. 30, 2021 | |
INVENTORIES | |
INVENTORIES | 9. INVENTORIES The Company’s net inventory balance was comprised of the following: ($ thousands) January 30, 2021 February 1, 2020 Raw materials $ 14,592 $ 18,455 Work-in-process 349 454 Finished goods 473,014 599,497 Inventories, net $ 487,955 $ 618,406 As of January 30, 2021 and February 1, 2020, the Company’s inventory balance included $0.8 million and $2.5 million, respectively, of finished goods product subject to a consignment arrangement with wholesale customers. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Jan. 30, 2021 | |
PROPERTY AND EQUIPMENT | |
PROPERTY AND EQUIPMENT | 10. PROPERTY AND EQUIPMENT Property and equipment consisted of the following: ($ thousands) January 30, 2021 February 1, 2020 Land and buildings $ 53,561 $ 52,638 Leasehold improvements 208,939 241,209 Technology equipment 49,105 56,480 Machinery and equipment 98,862 98,715 Furniture and fixtures 126,405 140,233 Construction in progress 6,773 4,704 Property and equipment 543,645 593,979 Allowances for depreciation (371,208) (369,133) Property and equipment, net $ 172,437 $ 224,846 Useful lives of property and equipment are as follows: Years Buildings 5 - 30 Leasehold improvements 5 - 20 Technology equipment 2 - 7 Machinery and equipment 4 - 20 Furniture and fixtures 3 - 10 The Company recorded charges for impairment of $56.3 million, $5.9 million and $3.7 million in 2020, 2019 and 2018, respectively, primarily for operating lease right-of-use assets, leasehold improvements and furniture and fixtures in the Company’s retail stores. Of the $56.3 million of impairment charges in 2020, $55.3 million is reflected in restructuring and other special charges, and $1.0 million is reflected in selling and administrative expenses. All of the charges in 2019 and 2018 are presented in selling and administrative expenses. Fair value was based on estimated future cash flows to be generated by retail stores, discounted at a market rate of interest. Refer to Note 5, Note 13 and Note 15 to the consolidated financial statements for further discussion of these impairment charges. 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 $0.6 million and $0.2 million in 2019 and 2018, respectively, related to the new company-operated Brand Portfolio warehouse facilities in California, with no corresponding interest capitalized in 2020. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Jan. 30, 2021 | |
GOODWILL AND INTANGIBLE ASSETS | |
GOODWILL AND INTANGIBLE ASSETS | 11. GOODWILL AND INTANGIBLE ASSETS Goodwill and intangible assets were as follows: ($ thousands) January 30, 2021 February 1, 2020 Intangible Assets Famous Footwear $ 2,800 $ 2,800 Brand Portfolio 342,083 388,288 Total intangible assets 344,883 391,088 Accumulated amortization (109,768) (96,784) Total intangible assets, net 235,115 294,304 Goodwill Brand Portfolio 4,956 245,275 Total goodwill 4,956 245,275 Goodwill and intangible assets, net $ 240,071 $ 539,579 The Company’s intangible assets as of January 30, 2021 and February 1, 2020 were as follows: ($ thousands) January 30, 2021 Estimated Useful Lives Accumulated (In Years) Cost Basis (1) Amortization Impairment Net Carrying Value Trade names 2 - 40 $ 299,488 $ 101,919 $ 10,200 $ 187,369 Trade names Indefinite 47,400 — 32,000 15,400 Customer relationships 15 - 16 44,200 7,849 4,005 32,346 $ 391,088 $ 109,768 $ 46,205 $ 235,115 February 1, 2020 Estimated Useful Lives Accumulated (In Years) Cost Basis Amortization Impairment Net Carrying Value Trade names 15 40 $ 288,788 $ 91,827 $ — $ 196,961 Trade names Indefinite 58,100 (2) — — 58,100 Customer relationships 15 16 44,200 4,957 — 39,243 $ 391,088 $ 96,784 $ — $ 294,304 (1) The Via Spiga trade name was reclassified from indefinite-lived trade names to definite-lived trade names. The remaining carrying value of $0.5 million is being amortized over two years . (2) Cost basis has been reduced by $60.0 million in impairment charges recognized in 2018 related to the Allen Edmonds trade name. Amortization expense related to intangible assets was $13.0 million in 2020, $13.1 million in 2019 and $7.0 million in 2018. The Company estimates $12.6 million of amortization expense related to intangible assets in 2021, $12.1 million in 2022, $11.9 million in 2023, and $11.0 million in 2024 and 2025 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. During the first quarter of 2020, as a result of the significant decline in the Company’s share price and market capitalization and the impact of the COVID-19 pandemic on the Company’s business operations, the Company determined that an interim assessment of goodwill was required. A quantitative assessment was performed for all reporting units as of May 2, 2020. The assessment indicated that the carrying value of the goodwill associated with the Brand Portfolio and Vionic reporting units was impaired, resulting in total goodwill impairment charges of $240.3 million. In addition to the interim assessment, the Company performed an impairment review of the remaining goodwill balance, which is associated with the Blowfish Malibu reporting unit, as of the first day of the fourth fiscal quarter. That review indicated no impairment. During 2019 and 2018, the goodwill impairment testing was performed as of the first day of the fourth fiscal quarter, which resulted in no impairment charges in 2019 and $38.0 million of impairment charges in 2018 associated with goodwill of the Allen Edmonds reporting unit. Indefinite-lived intangible assets are tested for impairment as of the first day of the fourth quarter of each fiscal year unless events or circumstances indicate an interim test is required. As a result of the triggering event from the economic impacts of COVID-19, an interim assessment was performed as of May 2, 2020. The indefinite-lived trade name impairment review resulted in total impairment charges of $22.4 million for the thirteen weeks ended May 2, 2020, including $12.2 million associated with the indefinite-lived Allen Edmonds trade name and $10.2 million of impairment associated with the indefinite-lived Via Spiga trade name. The remaining carrying value of the Via Spiga trade name of $0.5 million is being amortized over approximately two years. In addition to the interim assessment, the Company tested the indefinite-lived intangible assets as of the first day of the fourth fiscal quarter. As a result of the impairment indicator for Allen Edmonds, the Company also tested the definite-lived Allen Edmonds customer relationships intangible asset. Those reviews resulted in additional impairment totaling $23.8 million, consisting of $19.8 million associated with the Allen Edmonds trade name and $4.0 million associated with the Allen Edmonds customer relationships intangible asset. The Company did not record any impairment charges during 2019. During 2018, an impairment charge of $60.0 million was recorded for impairment of the Allen Edmonds indefinite-lived trade name. Total intangible asset impairment charges of $46.2 million and $60.0 million in 2020 and 2018, respectively, are reflected within the Brand Portfolio segment. |
LONG-TERM AND SHORT-TERM FINANC
LONG-TERM AND SHORT-TERM FINANCING ARRANGEMENTS | 12 Months Ended |
Jan. 30, 2021 | |
LONG-TERM AND SHORT-TERM FINANCING ARRANGEMENTS | |
LONG-TERM AND SHORT-TERM FINANCING ARRANGEMENTS | 12. LONG-TERM AND SHORT-TERM FINANCING ARRANGEMENTS Credit Agreement The Company maintains a revolving credit facility for working capital needs. The Company is the lead borrower, and Sidney Rich Associates, Inc., BG Retail, LLC, Allen Edmonds LLC, Vionic Group LLC and Vionic International LLC are each co-borrowers and guarantors under the revolving credit facility. On January 18, 2019, the Loan Parties entered into a Third Amendment to Fourth Amended and Restated Credit Agreement to extend the maturity date to January 18, 2024 and change the borrowing capacity from an aggregate amount of up to $600.0 million to an aggregate amount of up to $500.0 million, with the option to further increase by up to $250.0 million. On April 14, 2020, the Company entered into a Fourth Amendment to Fourth Amended and Restated Credit Agreement (as so amended, the "Credit Agreement") which, among other modifications, increased the amount available under the revolving credit facility by $100.0 million to an aggregate amount of up to $600.0 million, subject to borrowing base restrictions, and may be further increased by up to $150.0 million. The Credit Agreement increased the spread applied to the LIBOR or prime rate by a total of 75 basis points and increased the unused line fee by 5 basis points. 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”) (with a floor of 1.0% imposed by the Credit Agreement) 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, if excess availability falls below the greater of 10.0% of the lesser of the Loan Cap and $40.0 million for three consecutive business days, 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 contains customary events of default, including, without limitation, payment defaults, breaches of representations and warranties, covenant defaults, cross-defaults to similar obligations, certain events of bankruptcy and insolvency, judgment defaults and the failure of any guaranty or security document supporting the agreement to be in full force and effect. If an event of default occurs, the collateral agent 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 also contains certain other covenants and restrictions. The Company was in compliance with all covenants and restrictions under the Credit Agreement as of January 30, 2021. The maximum amount of borrowings under the Credit Agreement at the end of any month was $438.5 million and $407.5 million in 2020 and 2019, respectively. As discussed further in Note 2 to the consolidated financial statements, the Company utilized the Credit Agreement in October 2018 to fund the Vionic acquisition. In addition, in March 2020, the Company increased the borrowings on the revolving credit facility to $440.0 million as a precautionary measure to increase its cash position and preserve financial flexibility given the uncertainty resulting from COVID-19. The Company made debt reduction a priority during the second half of 2020, reducing the borrowings outstanding to $250.0 million as of January 30, 2021. In addition to the $250.0 million of borrowings outstanding, the Company had $11.2 million in letters of credit outstanding under the Credit Agreement, with total additional borrowing availability of $136.0 million at January 30, 2021. Average daily borrowings during the year were $299.8 million and $352.4 million in 2020 and 2019, respectively, and the weighted-average interest rates approximated 3.4% and 4.1% for the respective periods. $200 Million Senior Notes On July 27, 2015, the Company issued $200.0 million aggregate principal amount of Senior Notes due on August 15, 2023 (the "Senior Notes"). The Senior Notes bear interest at 6.25%, which is payable on February 15 and August 15 of each year. The 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. If the Company experiences specific kinds of changes of control, it would be required to offer to purchase the Senior Notes at a purchase price equal to 101% of the principal amount, plus accrued and unpaid interest and Additional Interest (as defined in the Senior Notes indenture), if any, to, but not including, the date of repurchase. The 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 January 30, 2021, the Company was in compliance with all covenants and restrictions relating to the Senior Notes. |
LEASES
LEASES | 12 Months Ended |
Jan. 30, 2021 | |
LEASES | |
LEASES | 13. LEASES The Company leases all of its retail locations, a manufacturing facility, and certain office locations, distribution centers and equipment. At contract inception, leases are evaluated and classified as either operating or finance leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet. During the first quarter of 2019, the Company adopted ASC Topic 842, Leases Lease right-of-use assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term. The majority of the Company’s leases do not provide an implicit rate and therefore, the Company uses an incremental borrowing rate based on the information available at the commencement date to determine the present value of future payments. Lease expense for the minimum lease payments is recognized on a straight-line basis over the lease term. Variable lease payments are expensed as incurred. 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 and the lease right-of-use assets indicated as impaired are written down to fair value as calculated using a discounted cash flow method. The fair value of the lease right-of-use assets is determined utilizing projected cash flows for each store location, discounted using a risk-adjusted discount rate, subject to a market floor based on current market lease rates. As a result of the temporary store closures during the first half of 2020 associated with the COVID-19 pandemic, the Company negotiated with landlords to modify payment terms for certain leases. Deferred payments for these leases are reflected in lease obligations on the consolidated balance sheets. As further discussed in Note 1 to the consolidated financial statements, under relief provided by the FASB, entities may make a policy election to account for the lease concessions related to COVID-19 as if the enforceable rights existed under the original contract, accounting for them as variable rent rather than lease modifications. The Company has made a policy election to account for lease concessions related to COVID-19 as variable rent. Accordingly, in 2020 the Company recorded $5.4 million in lease concessions as a reduction of rent expense within selling and administrative expenses in the consolidated statements of earnings (loss). Rent deferrals for leases that were extended in connection with the rent concession will continue to be recognized consistent with the original lease agreement. The weighted-average lease term and discount rate as of January 30, 2021 and February 1, 2020 were as follows: January 30, 2021 February 1, 2020 Weighted-average remaining lease term (in years) 6.8 7.2 Weighted-average discount rate 4.2 % 4.3 % During 2020, the Company entered into new or amended leases that resulted in the recognition of right-of-use assets and lease obligations of $88.5 million on the consolidated balance sheets. As of January 30, 2021, the Company has entered into lease commitments for six retail locations for which the leases have not yet commenced. The Company anticipates that the leases for five of the new retail locations will begin in the next fiscal year and one will begin in fiscal year 2022. Upon commencement, right-of-use assets lease liabilities The components of lease expense for 2020 and 2019 were as follows: ($ thousands) 2020 2019 Operating lease expense $ 167,624 $ 186,185 Variable lease expense 48,443 45,455 Short-term lease expense 4,512 3,339 Sublease income (96) (269) Total lease expense (1) $ 220,483 $ 234,710 (1) Net of lease concessions recognized of $5.4 million. The aggregate future annual lease obligations at January 30, 2021 were as follows: ($ thousands) 2021 $ 176,902 2022 137,151 2023 108,201 2024 86,114 2025 66,566 Thereafter 201,925 Total minimum operating lease payments $ 776,859 Less imputed interest (104,857) Present value of lease obligations $ 672,002 Supplemental cash flow information related to leases is as follows: ($ thousands) 2020 2019 Cash paid for lease liabilities $ 145,552 $ 196,033 Cash received from sublease income 96 269 As previously reported in accordance with the guidance in ASC 840, a summary of rent expense for operating leases for 2018 is as follows: ($ thousands) 2018 Minimum rent $ 171,410 Contingent rent 671 Sublease income (428) Total $ 171,653 |
RISK MANAGEMENT AND DERIVATIVES
RISK MANAGEMENT AND DERIVATIVES | 12 Months Ended |
Jan. 30, 2021 | |
RISK MANAGEMENT AND DERIVATIVES | |
RISK MANAGEMENT AND DERIVATIVES | 14. 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 online retailers, national chains, department stores, mass merchandisers and independent retailers in the United States, Canada and approximately 66 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 expected credit losses 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’s hedging strategy permits the use of forward contracts as cash flow hedging instruments 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. 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 cash flow hedging instruments 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 loss ("OCL") and reclassified to earnings in the period that the hedged transaction is recognized in earnings. The Company had no forward contracts as of January 30, 2021. As of February 1, 2020, the Company had forward contracts maturing at various dates through May 2020. 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) January 30, 2021 February 1, 2020 Financial Instruments U.S. dollars (purchased by the Company’s Canadian division with Canadian dollars) $ — $ 3,963 Euro — 1,251 Chinese yuan — 2,355 Other currencies — 69 Total financial instruments $ — $ 7,638 The classification and fair values of derivative instruments designated as hedging instruments included within the consolidated balance sheets as of January 30, 2021 and February 1, 2020 are as follows: Asset Derivatives Liability Derivatives ($ thousands) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Foreign Exchange Forward Contracts January 30, 2021 Prepaid expenses and other current assets — Other accrued expenses — February 1, 2020 Prepaid expenses and other current assets — Other accrued expenses 103 During 2020 and 2019, the effect of derivative instruments in cash flow hedging relationships on the consolidated statements of earnings (loss) was as follows: 2020 2019 Loss Gain (Loss) Reclassified Reclassified Gain from Gain (Loss) from Foreign exchange forward contracts: Recognized in Accumulated Recognized in Accumulated Income Statement Classification OCI on OCL into OCL on OCL into Gains (Losses)- Realized Derivatives Earnings Derivatives Earnings Net sales $ 23 $ — $ 16 $ 9 Cost of goods sold 60 — 439 (38) Selling and administrative expenses 33 (6) (68) (227) Additional information related to the Company’s derivative financial instruments are disclosed within Note 1 and Note 15 to the consolidated financial statements. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Jan. 30, 2021 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 15. 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. The Company also 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 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 (loss). 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, cash-equivalent restricted stock units (“RSUs”) of the Company were previously granted at no cost to non-employee directors. These cash-equivalent RSUs are subject to a vesting requirement (usually one year), earn dividend-equivalent units and are settled in cash 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 cash-equivalent RSU payable 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). Additional information related to RSUs for non-employee directors is disclosed in Note 17 to the consolidated financial statements. Derivative Financial Instruments The Company may use 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 14 to the consolidated financial statements. Mandatory Purchase Obligation The Company recorded a mandatory purchase obligation of the noncontrolling interest in conjunction with the acquisition of Blowfish Malibu in July 2018 as further discussed in Note 2 in the consolidated financials. The fair value of the mandatory purchase obligation is based on the earnings formula specified in the Purchase Agreement (Level 3). The mandatory purchase obligation and any fair value adjustments are recorded as interest expense. The Company recorded fair value adjustments of $23.9 million during 2020 and $6.0 million during 2019. From the acquisition date of July 6, 2018 through February 2, 2019, an immaterial amount of accretion was recorded on the mandatory purchase obligation. The earnings projections and discount rate utilized in the initial estimate of the fair value of the mandatory purchase obligation required management judgment and are the assumptions to which the fair value calculation was the most sensitive. The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis at January 30, 2021 and February 1, 2020. The Company did not have any transfers between Level 1, Level 2 or Level 3 during 2020, 2019 or 2018. Fair Value Measurements ($ thousands) Total Level 1 Level 2 Level 3 Asset (Liability) January 30, 2021: Cash equivalents – money market funds $ 45,000 $ 45,000 $ — $ — Non-qualified deferred compensation plan assets 7,918 7,918 — — Non-qualified deferred compensation plan liabilities (7,918) (7,918) — — Deferred compensation plan liabilities for non-employee directors (989) (989) — — Restricted stock units for non-employee directors (1,661) (1,661) — — Mandatory purchase obligation - Blowfish Malibu (39,134) — — (39,134) February 1, 2020: Cash equivalents – money market funds $ 18,001 $ 18,001 $ — $ — Non-qualified deferred compensation plan assets 8,004 8,004 — — Non-qualified deferred compensation plan liabilities (8,004) (8,004) — — Deferred compensation plan liabilities for non-employee directors (1,536) (1,536) — — Restricted stock units for non-employee directors (2,572) (2,572) — — Derivative financial instruments, net (103) — (103) — Mandatory purchase obligation - Blowfish Malibu (15,200) — — (15,200) 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 ($ thousands) 2020 2019 2018 Long-Lived Asset Impairment Charges Famous Footwear $ 14,900 $ 1,980 $ 800 Brand Portfolio 41,443 3,887 2,865 Total long-lived asset impairment charges $ 56,343 $ 5,867 $ 3,665 The Company performed its annual impairment review 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 recorded $46.2 million in impairment charges in 2020. The Company did not During 2020, the Company performed an interim impairment test of goodwill, as further discussed in Note 11 to the consolidated financial statements. A quantitative assessment was performed for all reporting units as of May 2, 2020, which involved estimating the fair value of the reporting units using significant unobservable inputs (Level 3). The assessment indicated that the carrying value of the goodwill associated with the Brand Portfolio and Vionic reporting units was impaired, resulting in total goodwill impairment charges of $240.3 million. In addition to the interim assessment, the Company performed an impairment review of the remaining goodwill balance, which is associated with the Blowfish Malibu reporting unit, as of the first day of the fourth fiscal quarter. The review indicated no impairment. The quantitative assessments performed in 2019 resulted no impairment charges. The quantitative and qualitative assessments performed in 2018 resulted in impairment charges of $38.0 million. Refer to Note 1 and Note 11 to the consolidated financial statements for additional information related to the goodwill impairment tests. Fair Value of the Company’s Other Financial Instruments The fair values of cash and cash equivalents (excluding money market funds discussed above), receivables and trade accounts payable approximate their carrying values due to the short-term nature of these instruments. The carrying amounts and fair values of the Company’s other financial instruments subject to fair value disclosures are as follows: January 30, 2021 February 1, 2020 Carrying Carrying ($ thousands) Value (1) Fair Value Value (1) Fair Value Borrowings under revolving credit agreement $ 250,000 $ 250,000 $ 275,000 $ 275,000 Long-term debt 200,000 201,000 200,000 205,000 Total debt $ 450,000 $ 451,000 $ 475,000 $ 480,000 (1) Excludes unamortized debt issuance costs and debt discount The fair value of the borrowings under revolving credit agreement approximates its carrying value due to its short-term nature (Level 1). 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 |
Jan. 30, 2021 | |
SHAREHOLDERS' EQUITY | |
SHAREHOLDERS' EQUITY | 16. SHAREHOLDERS’ EQUITY Stock Repurchase Programs On August 25, 2011, December 14, 2018 and September 2, 2019, the Board of Directors approved stock repurchase programs (“2011 Program”, "2018 Program" and "2019 Program", respectively) authorizing the repurchase of the Company’s outstanding common stock of up to 2.5 million shares in both the 2011 Program and 2018 Program and 5.0 million shares in the 2019 Program. The Company can use the repurchase programs to repurchase shares on the open market or in private transactions from time to time, depending on market conditions. The repurchase programs do not have an expiration date. Repurchases of common stock are limited under the Company’s debt agreements. In total, 2.5 million shares have been repurchased under the 2011 Program and there are no additional shares authorized to be repurchased. During 2020, the Company repurchased the remaining 553,611 shares under the 2018 Program and 2,348,511 shares under the 2019 Program. There are 2,651,489 shares additional shares authorized to be repurchased under the 2019 Program as of January 30, 2021. Repurchases Related to Employee Share-based Awards During 2020, 2019 and 2018, employees tendered 160,101, 100,728 and 145,357 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 2020, 2019 and 2018: Pension and Accumulated Foreign Other Other Currency Postretirement Derivative Comprehensive ($ thousands) Translation Transactions (1) Transactions (2) (Loss) Income Balance January 28, 2018 $ 1,235 $ (17,172) $ 767 $ (15,170) Other comprehensive loss before reclassifications (1,173) (15,927) (1,497) (18,597) Reclassifications: Amounts reclassified from accumulated other comprehensive loss — 2,754 154 2,908 Tax benefit — (710) (32) (742) Net reclassifications — 2,044 122 2,166 Other comprehensive loss (1,173) (13,883) (1,375) (16,431) Balance February 3, 2019 $ 62 $ (31,055) $ (608) $ (31,601) Other comprehensive (loss) income before reclassifications (642) (3,523) 315 (3,850) Reclassifications: Amounts reclassified from accumulated other comprehensive loss — 4,590 256 4,846 Tax benefit — (1,183) (55) (1,238) Net reclassifications — 3,407 201 3,608 Other comprehensive (loss) income (642) (116) 516 (242) Balance February 1, 2020 $ (580) (31,171) (92) $ (31,843) Other comprehensive income before reclassifications 469 20,351 87 20,907 Reclassifications: Amounts reclassified from accumulated other comprehensive loss — 2,418 6 2,424 Tax benefit — (623) (1) (624) Net reclassifications — 1,795 5 1,800 Other comprehensive income 469 22,146 92 22,707 Balance January 30, 2021 $ (111) $ (9,025) $ — $ (9,136) (1) Amounts reclassified are included in other income, net. Refer to Note 6 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 and selling and administrative expenses. Refer to Note 14 and Note 15 to the consolidated financial statements for additional information related to derivative financial instruments . |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Jan. 30, 2021 | |
SHARE-BASED COMPENSATION | |
SHARE-BASED COMPENSATION | 17. 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 Equity Share-based compensation expense of $8.1 million, $10.2 million and $13.8 million was recognized in 2020, 2019 and 2018, respectively, as a component of selling and administrative expenses. The following table details the share-based compensation expense by plan for 2020, 2019 and 2018: ($ thousands) 2020 2019 2018 Expense for share-based compensation plans, net of forfeitures: Restricted stock $ 6,840 $ 9,597 $ 10,925 Stock performance awards 147 (502) 1,741 Restricted stock units 1,109 1,129 1,091 Stock options 1 22 48 Total share-based compensation expense $ 8,097 $ 10,246 $ 13,805 The Company issued 471,569, 214,435 and 350,522 shares of common stock in 2020, 2019 and 2018, 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 an excess tax provision of $1.1 million and $0.1 million in 2020 and 2019, respectively, related to restricted stock vestings and dividends, performance share award vestings and stock options exercised. Excess tax benefits of $0.3 million were recognized in 2018. The excess tax provision or benefit for the respective periods were recorded in income tax benefit (provision). 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 2020, 2019 and 2018: Number of Nonvested Weighted- Restricted Average Grant Shares Date Fair Value Nonvested at February 3, 2018 1,174,801 27.92 Granted 427,083 31.88 Vested (291,061) 28.18 Forfeited (61,600) 28.77 Nonvested at February 2, 2019 1,249,223 29.17 Granted 463,234 22.93 Vested (222,562) 30.26 Forfeited (218,100) 28.83 Nonvested at February 1, 2020 1,271,795 26.77 Granted 707,931 6.99 Vested (430,837) 28.27 Forfeited (151,662) 22.19 Nonvested at January 30, 2021 1,397,227 $ 16.74 Of the 707,931 restricted shares granted during 2020, 12,748 shares have a cliff-vesting term of one year and 695,183 shares have a graded-vesting term of three years, with 50% vesting after two years and 50% after three years. Of the 463,234 restricted shares granted during 2019, 12,914 shares had a cliff-vesting term of one year and 450,320 shares have a graded-vesting term of three years, with 50% vesting after two years and 50% after three years. Of the 427,083 restricted shares granted during 2018, 3,642 shares had a cliff-vesting term of one year, 413,941 shares have a graded-vesting term of three years, with 50% vesting after two years and 50% after three years, and 9,500 shares have a cliff-vesting term of four years. The total grant date fair value of restricted stock awards vested during the years ended January 30, 2021, February 1, 2020 and February 2, 2019, was $4.4 million, $6.7 million and $8.2 million, respectively. As of January 30, 2021, the total remaining unrecognized compensation cost related to nonvested restricted stock grants was $5.9 million, which will be amortized over the weighted-average remaining requisite service period of 1.5 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 generally vest over a three-year service period. Vesting of the performance share award granted in 2020 is dependent upon the attainment of certain financial goals during the second half of 2020. 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 attainment of certain financial goals during 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 following table summarizes performance share award activity for 2020, 2019 and 2018: Number of Nonvested Number of Nonvested Performance Share Performance Share Awards at Target Awards at Maximum Weighted-Average Level Level Grant Date Fair Value Nonvested at February 3, 2018 399,627 799,254 27.45 Granted 155,000 310,000 31.84 Vested (80,627) (161,254) 30.12 Forfeited (16,167) (32,334) 26.83 Nonvested at February 2, 2019 457,833 915,666 28.49 Granted 180,000 360,000 23.42 Vested (149,833) (299,666) 26.64 Forfeited (12,000) (24,000) 28.33 Nonvested at February 1, 2020 476,000 952,000 27.16 Granted 87,750 175,500 7.47 Vested (153,000) (306,000) 26.90 Forfeited (25,000) (50,000) 18.64 Nonvested at January 30, 2021 385,750 771,500 $ 23.33 As of January 30, 2021, the remaining unrecognized compensation cost related to nonvested performance share awards was $1.0 million, which will be recognized over the remaining service period of two 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 no stock options during 2020, 2019 and 2018. The following table summarizes stock option activity for 2020: Weighted- Number of Average Options Exercise Price Outstanding at February 1, 2020 35,667 $ 19.70 Forfeited (9,000) 9.89 Canceled or expired (2,000) 13.99 Outstanding at January 30, 2021 24,667 $ 23.74 Exercisable at January 30, 2021 24,667 $ 23.74 As of January 30, 2021, there are no nonvested options. 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. The RSUs payable in cash are 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 recognized in the Company’s consolidated statements of earnings (loss). Refer to Note 6 and Note 15 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 January 30, 2021: Nonvested Outstanding Accrued (3) RSUs Weighted- Number of Number of Total Total Average Vested Nonvested Number of Number of Grant Date RSUs RSUs RSUs (2) RSUs Fair Value February 1, 2020 415,157 76,827 491,984 466,375 $ 17.66 Granted (1) 14,983 105,421 120,404 86,408 10.50 Vested 74,464 (74,464) — 23,676 18.83 Settled (88,370) — (88,370) (88,370) 9.52 January 30, 2021 416,234 107,784 524,018 488,089 $ 9.85 (1) Granted RSUs include 18,420 RSUs resulting from dividend equivalents paid on outstanding RSUs, of which 14,983 related to outstanding vested RSUs and 3,437 to outstanding nonvested RSUs. (2) Total number of RSUs as of January 30, 2021 includes 388,752 RSUs payable in shares and 135,266 RSUs payable in cash. (3) Accrued RSUs include all fully vested awards and a pro-rata portion of nonvested awards based on the elapsed portion of the vesting period. The following table summarizes RSUs granted, vested and settled during 2020, 2019 and 2018: ($ thousands, except per unit amounts) 2020 2019 2018 Weighted-average grant date fair value of RSUs granted (1) $ 10.12 $ 19.59 $ 34.23 Fair value of RSUs vested $ 1,125 $ 589 $ 1,340 RSUs settled 88,370 4,574 5,914 (1) Includes dividend equivalents granted on outstanding RSUs, which vest immediately. The following table details the RSU compensation expense and the related income tax provision (benefit) for 2020, 2019 and 2018: ($ thousands) 2020 2019 2018 Compensation (income) expense $ (613) $ (1,756) $ 287 Income tax provision (benefit) 158 452 (74) Compensation (income) expense, net of tax $ (455) $ (1,304) $ 213 The aggregate fair value of RSUs outstanding and currently vested at January 30, 2021 is $7.9 million and $6.3 million, respectively. The liabilities associated with the accrued RSUs totaled $1.7 million and $2.6 million as of January 30, 2021 and February 1, 2020, respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jan. 30, 2021 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 18. 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. During 2019, a final response was received from the oversight authorities, which is allowing the Company to move forward with implementation of the revised plan. The cumulative expenditures for both on-site and off-site remediation through January 30, 2021 were $31.8 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 January 30, 2021 is $9.8 million, of which $8.8 million is recorded within other liabilities and $1.0 million is recorded within other accrued expenses. Of the total $9.8 million reserve, $5.0 million is for off-site remediation and $4.8 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 $13.5 million as of January 30, 2021 next year four years Other Various federal and state authorities have identified the Company as a potentially responsible party for remediation at certain other sites. However, the Company does not currently believe that its liability for such sites, if any, would be material. The Company continues to evaluate its estimated costs in conjunction with its environmental consultants and records its best estimate of such liabilities. However, future actions and the associated costs are subject to oversight and approval of various governmental authorities. Accordingly, the ultimate costs may vary, and it is possible costs may exceed the recorded amounts. Litigation The Company is involved in legal proceedings and litigation arising in the ordinary course of business. In the opinion of management, the outcome of such ordinary course of business proceedings and litigation currently pending is not expected to have a material adverse effect on the Company’s results of operations or financial position. Legal costs associated with litigation are generally expensed as incurred. |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Jan. 30, 2021 | |
Schedule II - Valuation and Qualifying Accounts | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS Col. A Col. B Col. C Col. D Col. E Additions Balance at Charged to Charged to Other Balance at Beginning of Costs and Accounts - Deductions - End of Description Period Expenses Describe Describe Period ($ thousands) YEAR ENDED JANUARY 30, 2021 Deducted from assets or accounts: Doubtful accounts and allowances $ 1,813 $ 10,575 $ 2,521 (E) $ (19) (A) $ 14,928 Customer allowances 25,816 20,355 — 31,020 (B) 15,151 Customer discounts 1,198 11,692 — 10,998 (B) 1,892 Inventory valuation allowances 20,610 63,543 — 51,525 (C) 32,628 Deferred tax asset valuation allowance 4,809 45,434 — 262 (D) 49,981 YEAR ENDED FEBRUARY 1, 2020 Deducted from assets or accounts: Doubtful accounts and allowances $ 3,050 $ 773 $ — $ 2,010 (A) $ 1,813 Customer allowances 24,750 62,737 — 61,671 (B) 25,816 Customer discounts 1,198 12,046 — 12,046 (B) 1,198 Inventory valuation allowances 14,401 45,489 — 39,280 (C) 20,610 Deferred tax asset valuation allowance 4,199 873 — 263 (D) 4,809 YEAR ENDED FEBRUARY 2, 2019 Deducted from assets or accounts: Doubtful accounts and allowances $ 2,045 $ 518 $ 876 (F) $ 389 (A) $ 3,050 Customer allowances 24,302 54,161 713 (F) 54,426 (B) 24,750 Customer discounts 751 5,545 268 (F) 5,366 (B) 1,198 Inventory valuation allowances 14,254 40,670 277 (F) 40,800 (C) 14,401 Deferred tax asset valuation allowance 5,763 — — 1,564 (D) 4,199 (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. (E) Adjustment upon adoption of ASU 2016-13, as further discussed in Note 1 to the consolidated financial statements. (F) Established through purchase accounting related to the Vionic acquisition . |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jan. 30, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Organization | Organization Caleres, Inc., originally founded as Brown Shoe Company in 1878 and incorporated in 1913, is a global footwear 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 athletic, casual and dress footwear products to women, men and children. The footwear is sold at a variety of price points through multiple distribution channels both domestically and internationally. The Company currently operates 1,086 retail shoe stores in the United States, Canada, China and Guam under the Famous Footwear, Naturalizer, Sam Edelman 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 online retailers, national chains, department stores, mass merchandisers and independent retailers. Refer to Note 3 to the consolidated financial statements for additional information regarding the Company’s revenue by category and Note 8 for discussion of 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. Certain prior period amounts in the notes to the consolidated financial statements have been reclassified to conform to the current period presentation. These reclassifications did not affect net (loss) earnings attributable to Caleres, Inc. |
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. During 2019, the Company entered into a joint venture with Brand Investment Holding Limited ("Brand Investment Holding"), a member of the Gemkell Group. The Company and Brand Investment Holding are each 50% owners of the joint venture, which is named CLT Brand Solutions ("CLT"). During 2020, CLT was funded with $3.0 million in capital contributions, including $1.5 million from the Company and $1.5 million from Brand Investment Holding. In 2019, CLT was funded with $5.0 million in capital contributions, including $2.5 million from the Company and $2.5 million from Brand Investment Holding. Net sales and operating results were immaterial in both 2020 and 2019. The Company had a joint venture agreement with a subsidiary of C. banner International Holdings Limited (“CBI”) to market Naturalizer footwear in China. The Company was 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. The Company anticipates the liquidation to be completed in 2021. The Company consolidates CLT and B&H Footwear into its consolidated financial statements. Net (loss) earnings attributable to noncontrolling interests represents the share of net earnings or losses that are attributable to CBI and Brand Investment Holding equity. Transactions between the Company and the joint ventures have been eliminated in the consolidated financial statements. |
Accounting Period | Accounting Period The Company’s fiscal year is the 52- or 53-week period ending the Saturday nearest to January 31. Fiscal years 2020, 2019 and 2018, all of which included 52 weeks, ended on January 30, 2021, February 1, 2020 and February 2, 2019, 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. |
COVID-19 Pandemic | COVID-19 Pandemic The United St ates and global economies continue to be adversely affected by the coronavirus (“COVID-19”) pandemic. Although the Company has reopened all its retail stores from the temporary store closures in the first half of 2020, the Company’s financial results were adversely impacted by COVID-19 in 2020 . The Company took actions to manage its resources conservatively to mitigate the adverse impact of the pandemic, including reductions in the workforce, associate furloughs for a significant portion of the workforce during the first half of 2020 , and reductions in salary for most remaining associates, as well as a reduction in the cash retainers for the Board of Directors through the end of the second quarter; reducing inventory purchases; reducing marketing expenses; and minimizing costs associated with the closed retail facilities. In addition, as a precautionary measure to increase its cash position and preserve financial flexibility given the uncertainty in the United States and global markets resulting from COVID-19, the Company increased the borrowings on its revolving credit facility in March 2020 to $440.0 million. In April, the Company entered into an amendment to the Fourth Amended and Restated Credit Agreement to increase its borrowing capacity, as further discussed in Note 1 2 to the consolidated financial statements. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security ("CARES") Act was enacted. The CARES Act includes a provision that allows the Company to defer the employer portion of social security payroll tax payments that would have been paid between the enactment date and December 31, 2020, with 50% payable by December 31, 2021 and 50% payable by December 31, 2022. As of January 30, 2021, the Company has deferred $9.4 million of employer social security payroll taxes, of which $4.7 million are presented in other accrued expenses and $4.7 million are presented in other liabilities on the consolidated balance sheet. In addition, as further discussed below and in Note 7 to the consolidated financial statements, the CARES Act permits the carryback of certain current operating losses to prior years, which resulted in an incremental tax benefit of $8.2 million. |
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. The Company had an immaterial amount of restricted cash as of January 30, 2021 and February 1, 2020. |
Receivables | Receivables Prior to the adoption of Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, Customer allowances represent reserves against the Company’s 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 $20.4 million in 2020, $62.7 million in 2019 and $54.2 million in 2018. Customer discounts represent reserves against the Company’s accounts receivable for discounts that 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 $11.7 million in 2020, $12.0 million in 2019 and $5.5 million in 2018. |
Inventories | Inventories All inventories are valued at the lower of cost and net realizable value with approximately 88% 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 $0.8 million and $3.8 million higher at January 30, 2021 and February 1, 2020, respectively. In the fourth quarter of 2020, a reduction in inventory quantities associated with the ongoing exit of the Naturalizer retail business resulted in a liquidation of LIFO layers and reduction of the LIFO reserve of $2.9 million, with a corresponding reduction of cost of goods sold. Refer to Note 9 to the consolidated financial statements for additional information related to inventories. 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 $84.0 million, $106.0 million and $106.9 million in 2020, 2019 and 2018, 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 $18.6 million, $23.1 million and $22.1 million in 2020, 2019 and 2018, 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 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. For the majority of the Brand Portfolio operations, markdown reserves 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 $15.5 million and $16.2 million of computer software costs as of January 30, 2021 and February 1, 2020, respectively, which are net of accumulated amortization of $131.1 million and $126.1 million as of the end of the respective periods. In addition, other assets on the consolidated balance sheets include $9.6 million and $8.0 million of implementation costs for software as a service as of January 30, 2021 and February 1, 2020, respectively, which are net of accumulated amortization of $0.6 million and $0.3 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. There was no interest capitalized in 2020. The Company capitalized interest of $0.6 million and $0.2 million in 2019 and 2018, respectively, related to the new company-operated Brand Portfolio warehouse facilities in California. Interest Expense Interest expense includes interest for borrowings under both the Company’s short-term and long-term debt, net of amounts capitalized, as well as accretion and fair value adjustments on the mandatory purchase obligation from the acquisition of Blowfish Malibu, as further described in Note 2 to the consolidated financial statements. Interest expense also includes fees paid under the short-term revolving credit agreement for the unused portion of its line of credit, and the amortization of deferred debt issuance costs and debt discount. |
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. In accordance with Accounting Standards Codification (“ASC”), Intangibles-Goodwill and Other (ASC Topic 350) Simplifying the Test for Goodwill Impairment, The Company performs its goodwill impairment assessment as of the first day of the fourth quarter of each fiscal year unless events indicate an interim test is required. During the first quarter of 2020, as a result of the significant decline in the Company’s share price and market capitalization, and the impact of COVID-19 on business operations, the Company determined that an interim assessment of goodwill was required and performed the quantitative assessment for all reporting units. The interim assessment indicated that the carrying value of the goodwill associated with the Brand Portfolio and Vionic reporting units exceeded the carrying value, resulting in non-cash goodwill impairment charges totaling $240.3 million in the first quarter of 2020. In addition to the interim assessment, an impairment review of the goodwill associated with the Blowfish Malibu reporting unit was performed as of the first day of the fourth fiscal quarter, which indicated no impairment. In 2019, the Company elected to perform the quantitative assessment for all reporting units and determined that the fair values of the reporting units exceeded the carrying values, resulting in no impairment. During 2018, the Company recorded a non-cash impairment charge of $38.0 million for the impairment of goodwill of the Allen Edmonds reporting unit. Refer to Note 11 to the consolidated financial statements for further discussion of goodwill and intangible assets. 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. 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. During the first quarter of 2020, as a result of the triggering event from the economic impacts of COVID-19, an interim assessment of the Company’s indefinite-lived intangible assets was performed as of May 2, 2020. The impairment review resulted in total impairment charges of $22.4 million in the first quarter of 2020, including $12.2 million associated with the indefinite-lived Allen Edmonds trade name and $10.2 million of impairment associated with the indefinite-lived Via Spiga trade name. The carrying value of the Via Spiga trade name of $0.5 million is being amortized over approximately two |
Self-Insurance Reserves | 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 January 30, 2021, the Company believes it has provided adequate reserves for its self-insurance exposure. As of January 30, 2021 and February 1, 2020, self-insurance reserves were $10.4 million and $10.0 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, when obligations under the terms of a contract with the consumer are satisfied. This generally occurs at the time of transfer of control of merchandise. The Company considers several control indicators in its assessment of the timing of the transfer of control, including significant risks and rewards of ownership, physical possession and the Company’s right to receive payment. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring merchandise. 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. The Company applies the guidance using the portfolio approach in ASC 606, Revenue from Contracts with Customers, |
Gift Cards | Gift Cards The Company sells gift cards to its customers in its retail stores, through its e-commerce 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 gift card breakage rate is determined based upon historical redemption patterns. Gift card breakage is recognized 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 (loss) 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 gift card breakage of $0.7 million, $1.1 million and $0.9 million in 2020, 2019 and 2018, respectively. |
Loyalty Program | Loyalty Program The Company maintains a loyalty program 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 loyalty 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 79% of net sales in the Famous Footwear segment were made to its loyalty program members in 2020, compared to 78% in 2019. As of January 30, 2021 and February 1, 2020, the Company had a loyalty program liability of $14.0 million and $16.4 million, respectively, which is included in other accrued expenses on the consolidated balance sheets. |
Store Closing and Impairment Charges | Store Impairment Charges 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 and, beginning in 2019, the lease right-of-use asset, 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 $56.3 million in 2020, $5.9 million in 2019 and $3.7 million in 2018. Impairment charges in 2019 were higher as a result of the adoption of ASC 842, Leases |
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 $77.9 million, $100.9 million and $84.8 million in 2020, 2019 and 2018, respectively. These costs were offset by co-op advertising allowances recovered by the Company’s retail business of $3.4 million, $7.8 million and $7.6 million in 2020, 2019 and 2018, respectively. Total co-op advertising costs reflected as a reduction of net sales were $7.2 million in 2020, $13.3 million in 2019 and $9.4 million in 2018. Total advertising costs attributable to future periods that are deferred and recognized as a component of prepaid expenses and other current assets were $4.6 million and $2.8 million at January 30, 2021 and February 1, 2020, 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 benefit (provision) on the consolidated statements of earnings (loss). As further discussed in Note 7 to the consolidated financial statements, the CARES Act was signed into law in March 2020. The CARES Act modified certain provisions of the Internal Revenue Code, including the five-year carryback period for net operating losses incurred in 2018, 2019 and 2020 tax years, which permits the Company to carry back net operating losses from years with a statutory 21% federal tax rate to years when the rate was 35%. During 2020, the Company recorded a net income tax benefit of $8.2 million related to the carryback of the 2020 net operating loss. |
Operating Leases | Operating Leases The Company leases all of its retail locations, a manufacturing facility and certain office locations, distribution centers and equipment under operating leases. Approximately 40% 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. As further discussed in Note 13 to the consolidated financial statements, during the first quarter of 2019, the Company adopted ASC 842 using the modified retrospective transition method. In accordance with ASC 842, lease right-of-use assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term. The majority of the Company’s leases do not provide an implicit rate and therefore, the Company uses an incremental borrowing rate based on the information available at the commencement date, including implied traded debt yield and seniority adjustments, to determine the present value of future payments. Lease expense for the minimum lease payments is recognized on a straight-line basis over the lease term. Variable lease payments are expensed as incurred. As further discussed below, the Company has elected to account for COVID-19-related lease concessions as though the enforceable rights and obligations existed in the original lease and accordingly, has treated these lease concessions as variable rent. Contingent Rentals Many of the leases covering retail stores require contingent rental payments in addition to the minimum monthly rental charge based on retail sales volume. Subsequent to the adoption of ASC 842 in the first quarter of 2019, the Company excludes from lease payments any variable payments that are not based on an index or market. If payment for a lease is fully contingent on sales, such as a percentage of sales gross rent lease, none of the lease payments are included in the lease right-of-use asset or the lease liability. In accordance with ASC 840, the Company recorded expense for contingent rentals during the period in which the retail sales volume exceeded 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. In accordance with ASC 842, the allowances are recorded within the lease right-of-use asset and amortized to income over the lease term as a reduction of rent expense. 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 the lease right-of-use asset, or under the guidance in ASC 840, 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 (loss). Pre-opening Costs Pre-opening costs associated with opening retail stores, including payroll, supplies and facility costs, are expensed as incurred. |
(Loss) Earnings Per Common Share Attributable to Caleres, Inc. Shareholders | (Loss) Earnings Per Common Share Attributable to Caleres, Inc. Shareholders The Company uses the two-class method to calculate basic and diluted (loss) 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 (loss) earnings per common share attributable to Caleres, Inc. shareholders is computed by dividing the net (loss) 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 (loss) earnings per common share attributable to Caleres, Inc. shareholders is computed by dividing the net (loss) 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 4 to the consolidated financial statements for additional information related to the calculation of (loss) earnings per common share attributable to Caleres, Inc. shareholders. |
Comprehensive (Loss) Income | Comprehensive (Loss) Income Comprehensive (loss) 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 (loss) 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 (loss). 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 6 and Note 16 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 14, Note 15 and Note 16 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 the outcome of such proceedings and litigation currently pending 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 further discussion 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. Based upon independent environmental assessments, liabilities are recorded when remedial action is considered 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. |
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. The Company accounts for share-based compensation in accordance with the fair value recognition provisions of ASC 718, Compensation – Stock Compensation Equity |
Consolidated Statements of Cash Flows Supplemental Disclosures | Consolidated Statements of Cash Flows Supplemental Disclosures The Company had refunds for federal, state and international taxes, net of payments, of $0.6 million in 2020 and made payments, net of refunds, of $10.2 million, and $21.3 million in 2019 and 2018, respectively. Refer to Note 7 to the consolidated financial statements for further information regarding income taxes. Cash payments of interest for the Company’s borrowings under the revolving credit agreement and long-term debt during 2020, 2019 and 2018 were $23.6 million, $26.8 million and $17.4 million, respectively. Refer to Note 12 to the consolidated financial statements for further discussion regarding the Company’s financing arrangements. |
Impact of Recently Adopted and Impact of Prospective Accounting Pronouncements | Impact of Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) The following table summarizes the activity in the Company’s allowance for expected credit losses for the year ended January 30, 2021: ($ thousands) Balance at February 1, 2020 $ 1,813 Adjustment upon adoption of ASU 2016-13 2,521 Provision for credit losses 10,575 Uncollectible accounts written-off, net of recoveries (19) Balance at January 30, 2021 $ 14,928 In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement In March 2020, the SEC issued SEC Release No. 33-10762, Financial Disclosures about Guarantors and Issuers of Guaranteed Securities and Affiliates Whose Securities Collateralize a Registrant’s Securities ASU 2020-09, Debt (Topic 470): Amendments to SEC Paragraphs Pursuant to SEC Release No. 33-10762 In April 2020, the FASB issued interpretive guidance indicating that entities may elect not to evaluate whether a concession provided by lessors is a lease modification. Under existing lease guidance, an entity would be required to determine if a lease concession was the result of a new arrangement reached with the landlord, which would be accounted for under the lease modification framework, or if the concession was under the enforceable rights and obligations that existed in the original lease, it would be accounted for outside the lease modification framework. The FASB guidance provides entities with the option to elect to account for COVID-19-related lease concessions as though the enforceable rights and obligations existed in the original lease. The Company has elected to treat these lease concessions as variable rent. Accordingly, COVID-19-related lease concessions totaling $5.4 million for the year ended January 30, 2021 were recorded as a reduction of rent expense within selling and administrative expenses in the consolidated statements of earnings (loss). Refer to Note 13 to the condensed consolidated financial statements for further discussion regarding the Company’s leases. In November 2020, the SEC issued SEC Release No. 33-10890, Management’s Discussion and Analysis, Selected Financial Data and Supplementary Financial Information. Impact of Prospective Accounting Pronouncements In August 2018, the FASB issued ASU 2018-14, Compensation — Retirement Benefits — Defined Benefit Plans — General (Subtopic 715-20), Disclosure Framework — Changes to the Disclosure Requirements for Defined Benefit Plans. In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of allowance for expected credit losses | ($ thousands) Balance at February 1, 2020 $ 1,813 Adjustment upon adoption of ASU 2016-13 2,521 Provision for credit losses 10,575 Uncollectible accounts written-off, net of recoveries (19) Balance at January 30, 2021 $ 14,928 |
REVENUES (Tables)
REVENUES (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
REVENUES | |
Schedule of disaggregated revenue by segment and major source | 2020 Eliminations and ($ thousands) Famous Footwear Brand Portfolio Other Total Retail stores $ 983,669 $ 52,796 $ — $ 1,036,465 Landed wholesale - e-commerce - drop ship (1) — 87,226 (4,192) 83,034 E-commerce - Company websites (1) 279,353 149,090 — 428,443 Total direct-to-consumer sales $ 1,263,022 $ 289,112 $ (4,192) $ 1,547,942 First-cost wholesale - e-commerce (1) — 1,249 — 1,249 Landed wholesale - e-commerce (1) — 124,548 — 124,548 Landed wholesale - other — 408,752 (44,770) 363,982 First-cost wholesale — 69,172 — 69,172 Licensing and royalty — 9,478 — 9,478 Other (2) 529 170 — 699 Total net sales $ 1,263,551 $ 902,481 $ (48,962) $ 2,117,070 2019 Eliminations and ($ thousands) Famous Footwear Brand Portfolio Other Total Retail stores $ 1,427,473 $ 154,549 $ — $ 1,582,022 Landed wholesale - e-commerce - drop ship (1) — 93,249 — 93,249 E-commerce - Company websites (1) 159,724 145,897 — 305,621 Total direct-to-consumer sales $ 1,587,197 $ 393,695 $ — $ 1,980,892 First-cost wholesale - e-commerce (1) — 2,204 — 2,204 Landed wholesale - e-commerce (1) — 190,536 — 190,536 Landed wholesale - other — 708,262 (72,955) 635,307 First-cost wholesale — 96,021 — 96,021 Licensing and royalty — 15,469 — 15,469 Other (2) 860 273 — 1,133 Net sales $ 1,588,057 $ 1,406,460 $ (72,955) $ 2,921,562 2018 Eliminations and ($ thousands) Famous Footwear Brand Portfolio Other Total Retail stores $ 1,469,857 $ 166,903 $ — $ 1,636,760 Landed wholesale - e-commerce - drop ship (1) — 61,518 — 61,518 E-commerce - Company websites (1) 136,327 125,877 — 262,204 Total direct-to-consumer sales $ 1,606,184 $ 354,298 $ — $ 1,960,482 First-cost wholesale - e-commerce (1) — 1,086 — 1,086 Landed wholesale - e-commerce (1) — 155,637 — 155,637 Landed wholesale - other — 690,988 (85,513) 605,475 First-cost wholesale — 94,734 — 94,734 Licensing and royalty — 16,501 — 16,501 Other (2) 624 307 — 931 Net sales $ 1,606,808 $ 1,313,551 $ (85,513) $ 2,834,846 (1) Collectively referred to as "e-commerce" below (2) Includes breakage revenue from unredeemed gift cards |
Schedule of significant contract balances from contracts with customers | ($ thousands) January 30, 2021 February 1, 2020 Customer allowances and discounts $ 17,043 $ 26,200 Loyalty programs liability 13,986 16,405 Returns reserve 11,040 14,033 Gift card liability 6,091 5,742 |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
EARNINGS (LOSS) PER SHARE | |
Schedule of Earnings Per Share, Basic and Diluted | ($ thousands, except per share amounts) 2020 2019 2018 NUMERATOR Net (loss) earnings $ (438,994) $ 62,082 $ (5,481) Net (earnings) loss attributable to noncontrolling interests (120) 737 40 Net (loss) earnings attributable to Caleres, Inc. $ (439,114) $ 62,819 $ (5,441) Net earnings allocated to participating securities — (1,988) — Net (loss) earnings attributable to Caleres, Inc. after allocation of earnings to participating securities $ (439,114) $ 60,831 $ (5,441) DENOMINATOR Denominator for basic (loss) earnings per common share attributable to Caleres, Inc. shareholders 37,220 39,796 41,756 Dilutive effect of share-based awards — 57 — Denominator for diluted (loss) earnings per common share attributable to Caleres, Inc. shareholders 37,220 39,853 41,756 Basic (loss) earnings per common share attributable to Caleres, Inc. shareholders $ (11.80) $ 1.53 $ (0.13) Diluted (loss) earnings per common share attributable to Caleres, Inc. shareholders $ (11.80) $ 1.53 $ (0.13) |
RETIREMENT AND OTHER BENEFIT _2
RETIREMENT AND OTHER BENEFIT PLANS (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Notes Tables | |
Schedule of Changes in Projected Benefit Obligations | Pension Benefits Other Postretirement Benefits ($ thousands) 2020 2019 2020 2019 Benefit obligation at beginning of year $ 388,288 $ 342,192 $ 1,371 $ 1,461 Service cost 8,492 7,219 — — Interest cost 12,205 14,811 41 60 Plan participants’ contribution 7 9 4 6 Plan amendments — 93 — — Actuarial loss (gain) 8,710 58,278 (55) (39) Benefits paid (15,272) (14,399) (112) (117) Settlements (36,747) (20,263) — — Contractual termination benefits — 482 — — Curtailments (95) (90) — — Foreign exchange rate changes (18) (44) — — Benefit obligation at end of year $ 365,570 $ 388,288 $ 1,249 $ 1,371 |
Defined Benefit Plan, Assumptions | Pension Benefits Other Postretirement Benefits Weighted–average assumptions used to determine benefit obligations, end of year 2020 2019 2020 2019 Discount rate 3.10 % 3.25 % 3.10 % 3.25 % Rate of compensation increase 3.00 % 3.00 % N/A N/A Pension Benefits Other Postretirement Benefits 2020 2019 2018 2020 2019 2018 Discount rate 3.25 % 4.35 % 4.00 % 3.25 % 4.35 % 4.00 % Rate of compensation increase 3.00 % 3.00 % 3.00 % N/A N/A N/A Expected return on plan assets 7.50 % 7.75 % 8.00 % N/A N/A N/A |
Schedule of Allocation of Plan Assets | Fair Value Measurements at January 30, 2021 ($ thousands) Total Level 1 Level 2 Level 3 Asset Cash and cash equivalents $ 9,149 $ 9,149 $ — $ — U.S. government securities 108,733 50,116 58,617 — Interest rate swap agreements (4,597) — (4,597) — Mutual fund 38,064 38,064 — — Exchange-traded funds 119,647 119,647 — — Corporate stocks - common 160,137 160,112 — 25 Preferred securities 2,495 — — 2,495 S&P 500 Index options (6,482) (6,482) — — Total investments in the fair value hierarchy $ 427,146 $ 370,606 $ 54,020 $ 2,520 Investments measured at net asset value: Alternative investment fund 17,522 — — — Unallocated insurance contract 49 — — — Total investments measured at net asset value 17,571 — — — Total investments at fair value $ 444,717 $ 370,606 $ 54,020 $ 2,520 Fair Value Measurements at February 1, 2020 ($ thousands) Total Level 1 Level 2 Level 3 Asset Cash and cash equivalents $ 31,588 $ 31,588 $ — $ — U.S. government securities 94,285 18,388 75,897 — Mutual fund 32,551 32,551 — — Exchange-traded funds 71,505 71,505 — — Corporate stocks - common 177,743 177,718 — 25 Preferred securities 852 — — 852 S&P 500 Index options 3,252 3,252 — — Total $ 411,776 $ 335,002 $ 75,897 $ 877 Investments measured at net asset value: Alternative investment fund 16,335 — — — Unallocated insurance contract 75 — — — Total investments measured at net asset value 16,410 — — — Total investments at fair value $ 428,186 $ 335,002 $ 75,897 $ 877 |
Schedule of Changes in Fair Value of Plan Assets | Pension Benefits Other Postretirement Benefits ($ thousands) 2020 2019 2020 2019 Fair value of plan assets at beginning of year $ 428,186 $ 381,450 $ — $ — Actual return on plan assets 67,413 81,282 — — Employer contributions 1,148 151 108 111 Plan participants’ contributions 7 9 4 6 Benefits paid (15,272) (14,399) (112) (117) Settlements (36,747) (20,263) — — Foreign exchange rate changes (18) (44) — — Fair value of plan assets at end of year $ 444,717 $ 428,186 $ — $ — |
Schedule of Amounts Recognized in Balance Sheet | Pension Benefits Other Postretirement Benefits ($ thousands) 2020 2019 2020 2019 Prepaid pension costs (noncurrent assets) $ 88,833 $ 50,660 $ — $ — Accrued benefit liabilities (current liability) (1,896) (2,405) (194) (200) Accrued benefit liabilities (noncurrent liability) (7,790) (8,361) (1,055) (1,171) Net amount recognized at end of year $ 79,147 $ 39,894 $ (1,249) $ (1,371) |
Schedule of Projected Benefit Obligation and Accumulated Benefit Obligation in Excess of Plan Assets | Projected Benefit Obligation Exceeds the Accumulated Benefit Obligation Fair Value of Plan Assets Exceeds the Fair Value of Plan Assets ($ thousands) 2020 2019 2020 2019 End of Year Projected benefit obligation $ 9,686 $ 10,766 $ 9,686 $ 10,766 Accumulated benefit obligation 8,954 9,516 8,954 9,516 Fair value of plan assets — — — — |
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year | Pension Benefits Other Postretirement Benefits ($ thousands) 2020 2019 2020 2019 Components of accumulated other comprehensive loss, net of tax: Net actuarial loss (gain) $ 10,438 $ 33,771 $ (466) $ (507) Net prior service credit (947) (2,093) — — Accumulated other comprehensive loss, net of tax $ 9,491 $ 31,678 $ (466) $ (507) |
Schedule of Net Benefit Costs | Pension Benefits Other Postretirement Benefits ($ thousands) 2020 2019 2018 2020 2019 2018 Service cost $ 8,492 $ 7,219 $ 8,995 $ — $ — $ — Interest cost 12,205 14,811 14,236 41 60 59 Expected return on assets (31,498) (27,735) (29,091) — — — Amortization of: Actuarial loss (gain) 2,718 3,904 4,122 (110) (107) (125) Prior service credit (1,354) (1,486) (1,567) — — — Settlement cost 1,353 2,236 324 — — — Curtailments (189) — — — — — Cost of contractual termination benefits — 482 — — — — Total net periodic benefit income $ (8,273) $ (569) $ (2,981) $ (69) $ (47) $ (66) |
Schedule of Expected Benefit Payments | Pension Benefits Other Postretirement ($ thousands) Funded Plan SERP Total Benefits Employer Contributions 2021 expected contributions to plan trusts $ 58 $ — $ 58 $ — 2021 expected contributions to plan participants — 1,925 1,925 197 2021 refund of assets (e.g. surplus) to employer 136 — 136 — Expected Benefit Payments — 2021 $ 15,405 $ 1,925 $ 17,330 $ 197 2022 16,883 1,465 18,348 167 2023 15,301 2,094 17,395 141 2024 15,694 247 15,941 119 2025 16,271 270 16,541 99 2026-2030 87,139 1,840 88,979 285 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) | ($ thousands) 2020 2019 2018 Federal Current $ (37,140) $ 4,003 $ 1,953 Deferred (45,145) 5,390 4,451 Total federal income tax (benefit) provision (82,285) 9,393 6,404 State Current 1,532 290 (718) Deferred (9,038) 2,403 1,284 Total state income tax (benefit) provision (7,506) 2,693 566 International Current 2,288 3,914 5,413 Deferred 9,386 511 (12,656) Total international income tax provision (benefit) 11,674 4,425 (7,243) Total income tax (benefit) provision $ (78,117) $ 16,511 $ (273) |
Schedule of Effective Income Tax Rate Reconciliation | ($ thousands) 2020 2019 2018 Income taxes at statutory rate $ (108,593) $ 16,505 $ (1,208) State income taxes, net of federal tax benefit (17,433) 2,218 2,519 International earnings taxed at differing rates from U.S. statutory (5,210) (4,071) (4,210) Share-based compensation 1,094 86 (347) Non-deductibility of goodwill impairment 20,179 — 7,989 Impairment of international trade name taxed at higher rate (1,440) — (2,400) Provision for valuation allowance 41,019 872 — CARES Act NOL, net carryback benefit (8,203) — — Income tax reform, net benefit — — (3,891) GILTI, BEAT and FDII provisions — 668 613 Non-deductibility of acquisition costs — — 46 Other (1) 470 233 616 Total income tax (benefit) provision $ (78,117) $ 16,511 $ (273) (1) The other category of income tax (benefit) provision principally represents the impact of expenses that are not deductible or partially deductible for federal income tax purposes and the impact of any return-to-provision adjustments. |
Schedule of Deferred Tax Assets and Liabilities | ($ thousands) January 30, 2021 February 1, 2020 Deferred Tax Assets Lease obligations $ 176,953 $ 200,408 Goodwill and intangible assets 25,659 — Net operating loss carryforward/carryback 20,736 6,671 Accrued expenses 18,610 18,762 Employee benefits, compensation and insurance 11,006 12,812 Accounts receivable 6,149 3,109 Inventory capitalization and inventory reserves 4,130 4,123 Impairment of investment in nonconsolidated affiliate 1,470 1,470 Postretirement and postemployment benefit plans 285 314 Capital loss carryforward 14 14 Other 1,245 1,349 Total deferred tax assets, before valuation allowance 266,257 249,032 Valuation allowance (49,981) (4,809) Total deferred tax assets, net of valuation allowance $ 216,276 $ 244,223 Deferred Tax Liabilities Lease right-of-use assets $ (151,962) $ (187,978) LIFO inventory valuation (38,437) (44,774) Retirement plans (21,041) (10,466) Capitalized software (5,331) (4,420) Depreciation (4,779) (8,416) Goodwill and intangible assets — (29,636) Other (2,970) (3,811) Total deferred tax liabilities (224,520) (289,501) Net deferred tax liability $ (8,244) $ (45,278) |
BUSINESS SEGMENT INFORMATION (T
BUSINESS SEGMENT INFORMATION (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
BUSINESS SEGMENT INFORMATION | |
Schedule of Segment Reporting Information, by Segment | Famous Brand Eliminations ($ thousands) Footwear Portfolio and Other Total Fiscal 2020 Net sales $ 1,263,551 $ 902,481 $ (48,962) $ 2,117,070 Intersegment sales — 48,962 — 48,962 Depreciation and amortization 23,090 28,889 8,560 60,539 Operating loss (23,821) (408,444) (53,393) (485,658) Segment assets 765,754 851,027 250,269 1,867,050 Purchases of property and equipment 7,693 6,486 2,607 16,786 Capitalized software 870 153 4,251 5,274 Fiscal 2019 Net sales $ 1,588,057 $ 1,406,460 $ (72,955) $ 2,921,562 Intersegment sales — 72,955 — 72,955 Depreciation and amortization 26,706 29,875 8,981 65,562 Operating earnings (loss) 76,896 58,153 (31,236) 103,813 Segment assets 891,042 1,383,500 157,165 2,431,707 Purchases of property and equipment 16,129 21,973 6,431 44,533 Capitalized software 16 1,544 4,059 5,619 Fiscal 2018 Net sales $ 1,606,808 $ 1,313,551 $ (85,513) $ 2,834,846 Intersegment sales — 85,513 — 85,513 Depreciation and amortization 28,816 20,768 13,113 62,697 Operating earnings (loss) 85,268 (40,799) (44,068) 401 Segment assets 502,507 1,211,008 125,053 1,838,568 Purchases of property and equipment 17,552 41,993 2,938 62,483 Capitalized software 351 814 3,251 4,416 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | ($ thousands) 2020 2019 2018 Operating (loss) earnings $ (485,658) $ 103,813 $ 401 Interest expense, net (48,287) (33,123) (18,277) Loss on early extinguishment of debt — — (186) Other income, net 16,834 7,903 12,308 (Loss) earnings before income taxes $ (517,111) $ 78,593 $ (5,754) |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | ($ thousands) 2020 2019 2018 Net Sales United States $ 1,984,713 $ 2,734,912 $ 2,656,928 Eastern Asia 77,793 98,045 93,883 Canada 46,781 80,247 63,354 Other 7,783 8,358 20,681 Total net sales $ 2,117,070 $ 2,921,562 $ 2,834,846 Long-Lived Assets (1) United States $ 703,642 $ 881,338 $ 219,975 Canada 20,246 35,317 9,381 Eastern Asia 2,660 3,527 1,348 Other 192 258 80 Total long-lived assets $ 726,740 $ 920,440 $ 230,784 (1) Long-lived assets include $554,303 and $695,594 of lease right-of-use assets in 2020 and 2019, respectively, with no corresponding amounts in 2018, as it precedes the adoption of ASC 842. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
INVENTORIES | |
Schedule of Inventory, Current | ($ thousands) January 30, 2021 February 1, 2020 Raw materials $ 14,592 $ 18,455 Work-in-process 349 454 Finished goods 473,014 599,497 Inventories, net $ 487,955 $ 618,406 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
PROPERTY AND EQUIPMENT | |
Property, Plant and Equipment | ($ thousands) January 30, 2021 February 1, 2020 Land and buildings $ 53,561 $ 52,638 Leasehold improvements 208,939 241,209 Technology equipment 49,105 56,480 Machinery and equipment 98,862 98,715 Furniture and fixtures 126,405 140,233 Construction in progress 6,773 4,704 Property and equipment 543,645 593,979 Allowances for depreciation (371,208) (369,133) Property and equipment, net $ 172,437 $ 224,846 Years Buildings 5 - 30 Leasehold improvements 5 - 20 Technology equipment 2 - 7 Machinery and equipment 4 - 20 Furniture and fixtures 3 - 10 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
GOODWILL AND INTANGIBLE ASSETS | |
Schedule of Intangible Assets and Goodwill | ($ thousands) January 30, 2021 February 1, 2020 Intangible Assets Famous Footwear $ 2,800 $ 2,800 Brand Portfolio 342,083 388,288 Total intangible assets 344,883 391,088 Accumulated amortization (109,768) (96,784) Total intangible assets, net 235,115 294,304 Goodwill Brand Portfolio 4,956 245,275 Total goodwill 4,956 245,275 Goodwill and intangible assets, net $ 240,071 $ 539,579 |
Schedule of Finite-lived and Indefinite Lived Intangible Assets | ($ thousands) January 30, 2021 Estimated Useful Lives Accumulated (In Years) Cost Basis (1) Amortization Impairment Net Carrying Value Trade names 2 - 40 $ 299,488 $ 101,919 $ 10,200 $ 187,369 Trade names Indefinite 47,400 — 32,000 15,400 Customer relationships 15 - 16 44,200 7,849 4,005 32,346 $ 391,088 $ 109,768 $ 46,205 $ 235,115 February 1, 2020 Estimated Useful Lives Accumulated (In Years) Cost Basis Amortization Impairment Net Carrying Value Trade names 15 40 $ 288,788 $ 91,827 $ — $ 196,961 Trade names Indefinite 58,100 (2) — — 58,100 Customer relationships 15 16 44,200 4,957 — 39,243 $ 391,088 $ 96,784 $ — $ 294,304 (1) The Via Spiga trade name was reclassified from indefinite-lived trade names to definite-lived trade names. The remaining carrying value of $0.5 million is being amortized over two years . (2) Cost basis has been reduced by $60.0 million in impairment charges recognized in 2018 related to the Allen Edmonds trade name. |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
LEASES | |
Lessee, Weighted Average Lease Term and Discount Rate | January 30, 2021 February 1, 2020 Weighted-average remaining lease term (in years) 6.8 7.2 Weighted-average discount rate 4.2 % 4.3 % |
Lease, Cost | ($ thousands) 2020 2019 Operating lease expense $ 167,624 $ 186,185 Variable lease expense 48,443 45,455 Short-term lease expense 4,512 3,339 Sublease income (96) (269) Total lease expense (1) $ 220,483 $ 234,710 (1) Net of lease concessions recognized of $5.4 million. |
Lessee, Operating Lease, Liability, Maturity | ($ thousands) 2021 $ 176,902 2022 137,151 2023 108,201 2024 86,114 2025 66,566 Thereafter 201,925 Total minimum operating lease payments $ 776,859 Less imputed interest (104,857) Present value of lease obligations $ 672,002 |
Leases, Cash Flow Information | ($ thousands) 2020 2019 Cash paid for lease liabilities $ 145,552 $ 196,033 Cash received from sublease income 96 269 |
Schedule of Rent Expense | ($ thousands) 2018 Minimum rent $ 171,410 Contingent rent 671 Sublease income (428) Total $ 171,653 |
RISK MANAGEMENT AND DERIVATIV_2
RISK MANAGEMENT AND DERIVATIVES (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
RISK MANAGEMENT AND DERIVATIVES | |
Schedule of Notional Amounts of Outstanding Derivative Positions | (U.S. $equivalent in thousands) January 30, 2021 February 1, 2020 Financial Instruments U.S. dollars (purchased by the Company’s Canadian division with Canadian dollars) $ — $ 3,963 Euro — 1,251 Chinese yuan — 2,355 Other currencies — 69 Total financial instruments $ — $ 7,638 |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location | Asset Derivatives Liability Derivatives ($ thousands) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Foreign Exchange Forward Contracts January 30, 2021 Prepaid expenses and other current assets — Other accrued expenses — February 1, 2020 Prepaid expenses and other current assets — Other accrued expenses 103 |
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location | 2020 2019 Loss Gain (Loss) Reclassified Reclassified Gain from Gain (Loss) from Foreign exchange forward contracts: Recognized in Accumulated Recognized in Accumulated Income Statement Classification OCI on OCL into OCL on OCL into Gains (Losses)- Realized Derivatives Earnings Derivatives Earnings Net sales $ 23 $ — $ 16 $ 9 Cost of goods sold 60 — 439 (38) Selling and administrative expenses 33 (6) (68) (227) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
FAIR VALUE MEASUREMENTS | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Fair Value Measurements ($ thousands) Total Level 1 Level 2 Level 3 Asset (Liability) January 30, 2021: Cash equivalents – money market funds $ 45,000 $ 45,000 $ — $ — Non-qualified deferred compensation plan assets 7,918 7,918 — — Non-qualified deferred compensation plan liabilities (7,918) (7,918) — — Deferred compensation plan liabilities for non-employee directors (989) (989) — — Restricted stock units for non-employee directors (1,661) (1,661) — — Mandatory purchase obligation - Blowfish Malibu (39,134) — — (39,134) February 1, 2020: Cash equivalents – money market funds $ 18,001 $ 18,001 $ — $ — Non-qualified deferred compensation plan assets 8,004 8,004 — — Non-qualified deferred compensation plan liabilities (8,004) (8,004) — — Deferred compensation plan liabilities for non-employee directors (1,536) (1,536) — — Restricted stock units for non-employee directors (2,572) (2,572) — — Derivative financial instruments, net (103) — (103) — Mandatory purchase obligation - Blowfish Malibu (15,200) — — (15,200) |
Details of Long-lived Asset Impairment Charges | ($ thousands) 2020 2019 2018 Long-Lived Asset Impairment Charges Famous Footwear $ 14,900 $ 1,980 $ 800 Brand Portfolio 41,443 3,887 2,865 Total long-lived asset impairment charges $ 56,343 $ 5,867 $ 3,665 |
Fair Value, by Balance Sheet Grouping | January 30, 2021 February 1, 2020 Carrying Carrying ($ thousands) Value (1) Fair Value Value (1) Fair Value Borrowings under revolving credit agreement $ 250,000 $ 250,000 $ 275,000 $ 275,000 Long-term debt 200,000 201,000 200,000 205,000 Total debt $ 450,000 $ 451,000 $ 475,000 $ 480,000 (1) Excludes unamortized debt issuance costs and debt discount |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
SHAREHOLDERS' EQUITY | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Pension and Accumulated Foreign Other Other Currency Postretirement Derivative Comprehensive ($ thousands) Translation Transactions (1) Transactions (2) (Loss) Income Balance January 28, 2018 $ 1,235 $ (17,172) $ 767 $ (15,170) Other comprehensive loss before reclassifications (1,173) (15,927) (1,497) (18,597) Reclassifications: Amounts reclassified from accumulated other comprehensive loss — 2,754 154 2,908 Tax benefit — (710) (32) (742) Net reclassifications — 2,044 122 2,166 Other comprehensive loss (1,173) (13,883) (1,375) (16,431) Balance February 3, 2019 $ 62 $ (31,055) $ (608) $ (31,601) Other comprehensive (loss) income before reclassifications (642) (3,523) 315 (3,850) Reclassifications: Amounts reclassified from accumulated other comprehensive loss — 4,590 256 4,846 Tax benefit — (1,183) (55) (1,238) Net reclassifications — 3,407 201 3,608 Other comprehensive (loss) income (642) (116) 516 (242) Balance February 1, 2020 $ (580) (31,171) (92) $ (31,843) Other comprehensive income before reclassifications 469 20,351 87 20,907 Reclassifications: Amounts reclassified from accumulated other comprehensive loss — 2,418 6 2,424 Tax benefit — (623) (1) (624) Net reclassifications — 1,795 5 1,800 Other comprehensive income 469 22,146 92 22,707 Balance January 30, 2021 $ (111) $ (9,025) $ — $ (9,136) (1) Amounts reclassified are included in other income, net. Refer to Note 6 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 and selling and administrative expenses. Refer to Note 14 and Note 15 to the consolidated financial statements for additional information related to derivative financial instruments . |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
SHARE-BASED COMPENSATION | |
Share-based Payment Arrangement, Cost by Plan | ($ thousands) 2020 2019 2018 Expense for share-based compensation plans, net of forfeitures: Restricted stock $ 6,840 $ 9,597 $ 10,925 Stock performance awards 147 (502) 1,741 Restricted stock units 1,109 1,129 1,091 Stock options 1 22 48 Total share-based compensation expense $ 8,097 $ 10,246 $ 13,805 |
Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity | Number of Nonvested Weighted- Restricted Average Grant Shares Date Fair Value Nonvested at February 3, 2018 1,174,801 27.92 Granted 427,083 31.88 Vested (291,061) 28.18 Forfeited (61,600) 28.77 Nonvested at February 2, 2019 1,249,223 29.17 Granted 463,234 22.93 Vested (222,562) 30.26 Forfeited (218,100) 28.83 Nonvested at February 1, 2020 1,271,795 26.77 Granted 707,931 6.99 Vested (430,837) 28.27 Forfeited (151,662) 22.19 Nonvested at January 30, 2021 1,397,227 $ 16.74 |
Share-based Payment Arrangement, Performance Shares, Outstanding Activity | Number of Nonvested Number of Nonvested Performance Share Performance Share Awards at Target Awards at Maximum Weighted-Average Level Level Grant Date Fair Value Nonvested at February 3, 2018 399,627 799,254 27.45 Granted 155,000 310,000 31.84 Vested (80,627) (161,254) 30.12 Forfeited (16,167) (32,334) 26.83 Nonvested at February 2, 2019 457,833 915,666 28.49 Granted 180,000 360,000 23.42 Vested (149,833) (299,666) 26.64 Forfeited (12,000) (24,000) 28.33 Nonvested at February 1, 2020 476,000 952,000 27.16 Granted 87,750 175,500 7.47 Vested (153,000) (306,000) 26.90 Forfeited (25,000) (50,000) 18.64 Nonvested at January 30, 2021 385,750 771,500 $ 23.33 |
Share-based Payment Arrangement, Option, Activity | Weighted- Number of Average Options Exercise Price Outstanding at February 1, 2020 35,667 $ 19.70 Forfeited (9,000) 9.89 Canceled or expired (2,000) 13.99 Outstanding at January 30, 2021 24,667 $ 23.74 Exercisable at January 30, 2021 24,667 $ 23.74 |
Share-based Payment Arrangement, Restricted Stock Unit, Activity | Nonvested Outstanding Accrued (3) RSUs Weighted- Number of Number of Total Total Average Vested Nonvested Number of Number of Grant Date RSUs RSUs RSUs (2) RSUs Fair Value February 1, 2020 415,157 76,827 491,984 466,375 $ 17.66 Granted (1) 14,983 105,421 120,404 86,408 10.50 Vested 74,464 (74,464) — 23,676 18.83 Settled (88,370) — (88,370) (88,370) 9.52 January 30, 2021 416,234 107,784 524,018 488,089 $ 9.85 (1) Granted RSUs include 18,420 RSUs resulting from dividend equivalents paid on outstanding RSUs, of which 14,983 related to outstanding vested RSUs and 3,437 to outstanding nonvested RSUs. (2) Total number of RSUs as of January 30, 2021 includes 388,752 RSUs payable in shares and 135,266 RSUs payable in cash. (3) Accrued RSUs include all fully vested awards and a pro-rata portion of nonvested awards based on the elapsed portion of the vesting period. |
Restricted Stock Units Granted, Vested and Settles | ($ thousands, except per unit amounts) 2020 2019 2018 Weighted-average grant date fair value of RSUs granted (1) $ 10.12 $ 19.59 $ 34.23 Fair value of RSUs vested $ 1,125 $ 589 $ 1,340 RSUs settled 88,370 4,574 5,914 (1) Includes dividend equivalents granted on outstanding RSUs, which vest immediately. |
Restricted Stock Unit Compensation Expense | ($ thousands) 2020 2019 2018 Compensation (income) expense $ (613) $ (1,756) $ 287 Income tax provision (benefit) 158 452 (74) Compensation (income) expense, net of tax $ (455) $ (1,304) $ 213 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
Feb. 02, 2019USD ($) | Jan. 30, 2021USD ($)store | May 02, 2020USD ($) | Feb. 01, 2020USD ($) | Jan. 30, 2021USD ($)store | Dec. 31, 2020 | Feb. 01, 2020USD ($) | Dec. 31, 2019 | Feb. 02, 2019USD ($) | Dec. 31, 2018 | Feb. 03, 2018USD ($) | Dec. 31, 2017 | Mar. 31, 2020USD ($) | |
Number of Stores | store | 1,086 | 1,086 | |||||||||||
Deferred employer social security payroll taxes, CARES Act | $ 9,400 | $ 9,400 | |||||||||||
Income tax benefit related to the carryback of the net operating loss | 8,200 | ||||||||||||
Provision for expected credit losses | 10,575 | $ 773 | $ 518 | ||||||||||
Capital Contributions | $ 1,500 | 2,500 | |||||||||||
Percentage of LIFO Inventory | 88.00% | 88.00% | |||||||||||
Inventory, LIFO Reserve | $ 793 | $ 3,826 | $ 793 | 3,826 | |||||||||
Inventory, LIFO Reserve, Period Charge | 2,900 | ||||||||||||
Capitalized Computer Software, Accumulated Amortization | 131,100 | 126,100 | 131,100 | 126,100 | |||||||||
Capitalized Computer Software, Implementation Cost, Accumulated Amortization | 600 | 300 | 600 | 300 | |||||||||
Interest Costs Capitalized | 0 | 600 | 200 | ||||||||||
Goodwill, Impairment Loss | 0 | 38,000 | |||||||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 22,400 | 0 | |||||||||||
Self Insurance Reserve | 10,400 | 10,000 | 10,400 | 10,000 | |||||||||
Customer Loyalty Program Liability | 13,986 | 16,405 | 13,986 | 16,405 | |||||||||
Impairment of Long-Lived Assets Held-for-use | 56,343 | 5,867 | 3,665 | ||||||||||
Marketing and Advertising Expense, Total | 77,900 | 100,900 | 84,800 | ||||||||||
Cooperative Advertising Amount | 3,400 | 7,800 | 7,600 | ||||||||||
Cooperative Advertising Expense | 7,200 | 13,300 | $ 9,400 | ||||||||||
Prepaid Advertising | 4,600 | 2,800 | $ 4,600 | $ 2,800 | |||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 21.00% | 21.00% | 21.00% | 21.00% | 35.00% | 35.00% | |||||
Percentage of Operating Leases | 40.00% | ||||||||||||
Income Taxes Paid, Net, Total | $ 600 | $ 10,200 | $ 21,300 | ||||||||||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities, Total | 23,600 | 26,800 | 17,400 | ||||||||||
Operating Lease, Right-of-Use Asset | $ 0 | 554,303 | 695,594 | 554,303 | 695,594 | 0 | |||||||
Operating Lease, Liability, Total | 672,002 | 672,002 | |||||||||||
Retained earnings | 635,435 | 203,854 | 649,130 | 203,854 | 649,130 | 635,435 | $ 718,962 | ||||||
Retained Earnings (Accumulated Deficit), Ending Balance | 48,557 | 523,900 | 48,557 | 523,900 | |||||||||
Accounts Receivable, Credit Loss Expense (Reversal) | 10,575 | 773 | 518 | ||||||||||
Lease concessions | 5,400 | ||||||||||||
Accounting Standards Update 2016-13 | |||||||||||||
Provision for expected credit losses | 2,521 | ||||||||||||
Accounts Receivable, Credit Loss Expense (Reversal) | 2,521 | ||||||||||||
Cumulative effect adjustment | Accounting Standards Update 2016-02 | |||||||||||||
Retained earnings | (13,436) | (13,436) | |||||||||||
Cumulative effect adjustment | Accounting Standards Update 2016-13 | |||||||||||||
Retained earnings | (2,146) | (2,146) | |||||||||||
Retained Earnings (Accumulated Deficit), Ending Balance | 2,100 | 2,100 | |||||||||||
Retained Earnings, (Accumulated Deficit), Tax | 400 | 400 | |||||||||||
Revolving Credit Facility | |||||||||||||
Long-term Line of Credit, Total | $ 250,000 | 250,000 | $ 440,000 | ||||||||||
CLT Brand Solutions | |||||||||||||
Capital Contributions | $ 3,000 | 5,000 | |||||||||||
Share-based Payment Arrangement, Option | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||||||||||||
Share-based Payment Arrangement, Option | Share-based Payment Arrangement, Annual | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | ||||||||||||
Restricted Stock | Share-based Compensation Award, Cliff-vesting | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||||||||||||
Restricted Stock Units (RSUs) | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||||||||||||
Brand Portfolio | |||||||||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 46,200 | 60,000 | |||||||||||
Impairment of Long-Lived Assets Held-for-use | 41,443 | 3,887 | 2,865 | ||||||||||
Brand Portfolio | Fergie Brand Exit and Close Naturalizer Stores | |||||||||||||
Restructuring Costs, Total | $ 16,400 | ||||||||||||
Famous Footwear | |||||||||||||
Number of Stores | store | 916 | 916 | |||||||||||
Impairment of Long-Lived Assets Held-for-use | $ 14,900 | 1,980 | 800 | ||||||||||
Allen Edmonds | |||||||||||||
Goodwill, Impairment Loss | 38,000 | ||||||||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 23,800 | ||||||||||||
Allen Edmonds | Trade Names | |||||||||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 60,000 | 19,800 | 12,200 | ||||||||||
Allen Edmonds | Customer Relationships | |||||||||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 4,000 | ||||||||||||
Via Spiga | Trade Names | |||||||||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 10,200 | ||||||||||||
Indefinite-lived Intangible Assets (Excluding Goodwill), Ending Balance | $ 500 | ||||||||||||
Intangible Assets, Amortization Period | 2 years | ||||||||||||
Blowfish, LLC | |||||||||||||
Goodwill, Impairment Loss | 0 | ||||||||||||
Other Accrued Liabilities [Member] | |||||||||||||
Deferred employer social security payroll taxes, CARES Act | 4,700 | 4,700 | |||||||||||
Other Noncurrent Liabilities | |||||||||||||
Deferred employer social security payroll taxes, CARES Act | 4,700 | 4,700 | |||||||||||
Other Assets | |||||||||||||
Capitalized Computer Software, Gross | 15,500 | 16,200 | 15,500 | 16,200 | |||||||||
Capitalized Computer Software, Implementation Costs | $ 9,600 | $ 8,000 | 9,600 | 8,000 | |||||||||
Selling and Administrative Expenses | |||||||||||||
Production and Distribution Costs | 84,000 | 106,000 | 106,900 | ||||||||||
Overseas Sourcing and Other Inventory Procurement Expense | 18,600 | 23,100 | 22,100 | ||||||||||
Impairment of Long-Lived Assets Held-for-use | 1,000 | ||||||||||||
Lease concessions | 5,400 | ||||||||||||
Customer Allowance | |||||||||||||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Cost and Expense | 20,355 | 62,737 | 54,161 | ||||||||||
Customer Discounts | |||||||||||||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Cost and Expense | $ 11,692 | $ 12,046 | 5,545 | ||||||||||
B&H Footwear | |||||||||||||
Percentage of joint venture | 51.00% | 51.00% | |||||||||||
B&H Footwear | C. banner International Holdings Limited | |||||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 49.00% | 49.00% | |||||||||||
CLT Brand Solutions | |||||||||||||
Percentage of joint venture | 50.00% | 50.00% | |||||||||||
Gift Cards | |||||||||||||
Gift card breakage income | $ 700 | $ 1,100 | $ 900 | ||||||||||
Brand Investment Holding Ltd | |||||||||||||
Capital Contributions | $ 1,500 | $ 2,500 | |||||||||||
Customer Concentration Risk | Revenue Benchmark | Famous Footwear | Rewards Program Members | |||||||||||||
Concentration risk percentage | 79.00% | 78.00% |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Allowance for Expected Credit Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Impact of New Accounting Pronouncements | |||
Balance, beginning of period | $ 1,813 | ||
Provision for doubtful accounts | 10,575 | $ 773 | $ 518 |
Uncollectible accounts written off, net of recoveries | 19 | ||
Balance, end of period | 14,928 | $ 1,813 | |
Accounting Standards Update 2016-13 | |||
Impact of New Accounting Pronouncements | |||
Provision for doubtful accounts | $ 2,521 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 18, 2018 | Jul. 06, 2018 | Jan. 30, 2021 | Feb. 01, 2020 | Dec. 31, 2019 | Feb. 02, 2019 |
Cost of Goods and Services Sold, Total | $ 1,330,021 | $ 1,737,202 | $ 1,678,502 | |||
Earnings Per Share, Diluted, Total | $ (11.80) | $ 1.53 | $ (0.13) | |||
Blowfish, LLC | ||||||
Business Acquisitions, Estimated Aggregate Purchase Price | $ 28,000 | |||||
Business acquisitions purchase obligation | 9,000 | $ 15,200 | ||||
Business Acquisitions Purchase Obligation, Fair Value | $ 39,100 | |||||
Payments to Acquire Businesses, Gross | 19,000 | |||||
Payments to Acquire Businesses, Net of Cash Acquired, Total | 16,800 | 0 | 0 | $ 16,792 | ||
Cash Acquired in Excess of Payments to Acquire Business | $ 2,200 | |||||
Interest Expense, Total | 23,900 | 6,000 | ||||
Business Acquisition, Effective Date of Acquisition | Jul. 6, 2018 | |||||
Business Acquisition, Name of Acquired Entity | Blowfish Malibu | |||||
Vionic | ||||||
Business Acquisitions, Estimated Aggregate Purchase Price | $ 360,000 | |||||
Payments to Acquire Businesses, Gross | 360,700 | |||||
Payments to Acquire Businesses, Net of Cash Acquired, Total | 352,700 | 0 | 0 | 352,666 | ||
Cash Acquired in Excess of Payments to Acquire Business | $ 8,000 | |||||
Cost of Goods and Services Sold, Total | 0 | $ 5,800 | 8,900 | |||
Costs of Goods and Services Sold, After-Tax Basis | $ 4,300 | $ 6,600 | ||||
Earnings Per Share, Diluted, Total | $ 0.10 | $ 0.15 | ||||
Business Combination, Acquisition Related Costs | $ 1,900 | |||||
Business Acquisition, Effective Date of Acquisition | Oct. 18, 2018 | |||||
Business Acquisition, Name of Acquired Entity | Vionic | |||||
Vionic | Restructuring and Other Special Charges | ||||||
Business Combination, Acquisition Related Costs | 3,400 | 1,900 | $ 4,500 | |||
Business Combination, Acquisition Related Costs, After-Tax Basis | $ 2,600 | $ 1,400 | $ 3,300 | |||
Business Combination, Acquisition Related Costs Per Share, Diluted | $ 0.07 | $ 0.03 | $ 0.08 | |||
Vionic | Brand Portfolio | ||||||
Business Combination, Acquisition Related Costs | $ 100 | |||||
Vionic | Brand Portfolio | Restructuring and Other Special Charges | ||||||
Business Combination, Acquisition Related Costs | $ 3,300 | $ 100 | ||||
Vionic | Eliminations and Other | ||||||
Business Combination, Acquisition Related Costs | $ 1,800 | |||||
Vionic | Eliminations and Other | Restructuring and Other Special Charges | ||||||
Business Combination, Acquisition Related Costs | $ 100 | $ 1,800 |
REVENUES (Details)
REVENUES (Details) - Loyalty Program - USD ($) $ in Millions | 12 Months Ended | |
Jan. 30, 2021 | Feb. 01, 2020 | |
Revenues | ||
Contract with Customer, Liability, Increase Due to Points and Material Rights Accrued for Purchases | $ 26.4 | $ 27.8 |
Contract with Customer, Liability, Decrease Due to Expirations and Redemptions | $ 28.8 | $ 26 |
REVENUES - Disaggregation of Re
REVENUES - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | ||
Revenues | ||||
Net sales | $ 2,117,070 | $ 2,921,562 | $ 2,834,846 | |
Famous Footwear | ||||
Revenues | ||||
Net sales | 1,263,551 | 1,588,057 | 1,606,808 | |
Brand Portfolio | ||||
Revenues | ||||
Net sales | 902,481 | 1,406,460 | 1,313,551 | |
Eliminations and Other | ||||
Revenues | ||||
Net sales | (48,962) | (72,955) | (85,513) | |
Retail stores | ||||
Revenues | ||||
Net sales | 1,036,465 | 1,582,022 | 1,636,760 | |
Retail stores | Famous Footwear | ||||
Revenues | ||||
Net sales | 983,669 | 1,427,473 | 1,469,857 | |
Retail stores | Brand Portfolio | ||||
Revenues | ||||
Net sales | 52,796 | 154,549 | 166,903 | |
Retail stores | Eliminations and Other | ||||
Revenues | ||||
Net sales | 0 | 0 | 0 | |
Landed wholesale - E-commerce / drop ship | ||||
Revenues | ||||
Net sales | 83,034 | [1] | 93,249 | 61,518 |
Landed wholesale - E-commerce / drop ship | Famous Footwear | ||||
Revenues | ||||
Net sales | 0 | [1] | 0 | 0 |
Landed wholesale - E-commerce / drop ship | Brand Portfolio | ||||
Revenues | ||||
Net sales | 87,226 | [1] | 93,249 | 61,518 |
Landed wholesale - E-commerce / drop ship | Eliminations and Other | ||||
Revenues | ||||
Net sales | (4,192) | [1] | 0 | 0 |
E-commerce - Company websites | ||||
Revenues | ||||
Net sales | 428,443 | [1] | 305,621 | 262,204 |
E-commerce - Company websites | Famous Footwear | ||||
Revenues | ||||
Net sales | 279,353 | [1] | 159,724 | 136,327 |
E-commerce - Company websites | Brand Portfolio | ||||
Revenues | ||||
Net sales | 149,090 | [1] | 145,897 | 125,877 |
E-commerce - Company websites | Eliminations and Other | ||||
Revenues | ||||
Net sales | 0 | [1] | 0 | 0 |
Direct to consumer | ||||
Revenues | ||||
Net sales | 1,547,942 | 1,980,892 | 1,960,482 | |
Direct to consumer | Famous Footwear | ||||
Revenues | ||||
Net sales | 1,263,022 | 1,587,197 | 1,606,184 | |
Direct to consumer | Brand Portfolio | ||||
Revenues | ||||
Net sales | 289,112 | 393,695 | 354,298 | |
Direct to consumer | Eliminations and Other | ||||
Revenues | ||||
Net sales | (4,192) | 0 | 0 | |
First-cost wholesale - e-commerce | ||||
Revenues | ||||
Net sales | 1,249 | 2,204 | 1,086 | |
First-cost wholesale - e-commerce | Famous Footwear | ||||
Revenues | ||||
Net sales | 0 | 0 | 0 | |
First-cost wholesale - e-commerce | Brand Portfolio | ||||
Revenues | ||||
Net sales | 1,249 | 2,204 | 1,086 | |
First-cost wholesale - e-commerce | Eliminations and Other | ||||
Revenues | ||||
Net sales | 0 | 0 | 0 | |
Landed wholesale - e-commerce | ||||
Revenues | ||||
Net sales | 124,548 | 190,536 | 155,637 | |
Landed wholesale - e-commerce | Famous Footwear | ||||
Revenues | ||||
Net sales | 0 | 0 | 0 | |
Landed wholesale - e-commerce | Brand Portfolio | ||||
Revenues | ||||
Net sales | 124,548 | 190,536 | 155,637 | |
Landed wholesale - e-commerce | Eliminations and Other | ||||
Revenues | ||||
Net sales | 0 | 0 | 0 | |
Landed wholesale - other | ||||
Revenues | ||||
Net sales | 363,982 | 635,307 | 605,475 | |
Landed wholesale - other | Famous Footwear | ||||
Revenues | ||||
Net sales | 0 | 0 | 0 | |
Landed wholesale - other | Brand Portfolio | ||||
Revenues | ||||
Net sales | 408,752 | 708,262 | 690,988 | |
Landed wholesale - other | Eliminations and Other | ||||
Revenues | ||||
Net sales | (44,770) | (72,955) | (85,513) | |
First-cost wholesale | ||||
Revenues | ||||
Net sales | 69,172 | 96,021 | 94,734 | |
First-cost wholesale | Famous Footwear | ||||
Revenues | ||||
Net sales | 0 | 0 | 0 | |
First-cost wholesale | Brand Portfolio | ||||
Revenues | ||||
Net sales | 69,172 | 96,021 | 94,734 | |
First-cost wholesale | Eliminations and Other | ||||
Revenues | ||||
Net sales | 0 | 0 | 0 | |
Licensing and royalty | ||||
Revenues | ||||
Net sales | 9,478 | 15,469 | 16,501 | |
Licensing and royalty | Famous Footwear | ||||
Revenues | ||||
Net sales | 0 | 0 | 0 | |
Licensing and royalty | Brand Portfolio | ||||
Revenues | ||||
Net sales | 9,478 | 15,469 | 16,501 | |
Licensing and royalty | Eliminations and Other | ||||
Revenues | ||||
Net sales | 0 | 0 | 0 | |
Other | ||||
Revenues | ||||
Net sales | 699 | [2] | 1,133 | 931 |
Other | Famous Footwear | ||||
Revenues | ||||
Net sales | 529 | [2] | 860 | 624 |
Other | Brand Portfolio | ||||
Revenues | ||||
Net sales | 170 | [2] | 273 | 307 |
Other | Eliminations and Other | ||||
Revenues | ||||
Net sales | $ 0 | [2] | $ 0 | $ 0 |
[1] | Collectively referred to as "e-commerce" below | |||
[2] | Includes breakage revenue from unredeemed gift cards |
REVENUES - Contract Balances (D
REVENUES - Contract Balances (Details) - USD ($) $ in Thousands | Jan. 30, 2021 | Feb. 01, 2020 |
REVENUES | ||
Customer allowances and discounts | $ 17,043 | $ 26,200 |
Loyalty programs liability | 13,986 | 16,405 |
Returns reserve | 11,040 | 14,033 |
Gift card liability | $ 6,091 | $ 5,742 |
EARNINGS (LOSS) PER SHARE (Deta
EARNINGS (LOSS) PER SHARE (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | Sep. 02, 2019 | |
Earnings (Loss) Per Share | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 22,667 | 16,667 | 0 | |
Stock Repurchase Programs, 2011 and 2018 | ||||
Earnings (Loss) Per Share | ||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 2,500,000 | |||
Stock Repurchase Programs, 2011, 2018 and 2019 | ||||
Earnings (Loss) Per Share | ||||
Treasury Stock, Shares, Acquired (in shares) | 2,902,122 | 1,704,240 | 1,465,649 | |
Treasury Stock, Value, Acquired, Cost Method | $ 23.3 | $ 33.4 | $ 43.8 | |
Stock Repurchase Program, 2019 | ||||
Earnings (Loss) Per Share | ||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 5,000,000 | 5,000,000 |
EARNINGS (LOSS) PER SHARE - Sch
EARNINGS (LOSS) PER SHARE - Schedule of Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
EARNINGS (LOSS) PER SHARE | |||
Net (loss) earnings | $ (438,994) | $ 62,082 | $ (5,481) |
Net loss (earnings) attributable to noncontrolling interests | (120) | 737 | 40 |
Net (loss) earnings attributable to Caleres, Inc. | (439,114) | 62,819 | (5,441) |
Net earnings allocated to participating securities | (1,988) | ||
Net (loss) earnings attributable to Caleres, Inc. after allocation of earnings to participating securities | $ (439,114) | $ 60,831 | $ (5,441) |
Denominator for basic (loss) earnings per common share attributable to Caleres, Inc. shareholders (in shares) | 37,220 | 39,796 | 41,756 |
Dilutive effect of share-based awards (in shares) | 57 | ||
Denominator for diluted (loss) earnings per common share attributable to Caleres, Inc. shareholders | 37,220 | 39,853 | 41,756 |
Basic (loss) earnings per common share attributable to Caleres, Inc. shareholders (in dollars per share) | $ (11.80) | $ 1.53 | $ (0.13) |
Diluted (loss) earnings per common share attributable to Caleres, Inc. shareholders (in dollars per share) | $ (11.80) | $ 1.53 | $ (0.13) |
RESTRUCTURING AND OTHER INITI_2
RESTRUCTURING AND OTHER INITIATIVES (Details) $ / shares in Units, $ in Thousands | May 02, 2020USD ($) | Jan. 30, 2021USD ($)item | May 02, 2020USD ($) | Feb. 01, 2020USD ($)$ / shares | Feb. 02, 2019USD ($)$ / shares | Jan. 30, 2021USD ($)item$ / shares | Feb. 01, 2020USD ($)$ / shares | Feb. 02, 2019USD ($)$ / shares | Feb. 01, 2020USD ($) |
Restructuring and Other Special Charges | |||||||||
Fair Value Adjustments of Mandatory Purchase Obligation | $ 23,934 | $ 5,955 | $ 250 | ||||||
Goodwill and Intangible Asset Impairment, Total | 286,524 | 0 | 98,044 | ||||||
Goodwill, Impairment Loss | 0 | 38,000 | |||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 22,400 | $ 0 | |||||||
Other accrued expenses | $ 129,104 | 119,157 | 129,104 | 119,157 | $ 119,157 | ||||
Restructuring and other special charges, net | 96,694 | 14,787 | 16,134 | ||||||
Logistics Transition | |||||||||
Restructuring and Other Special Charges | |||||||||
Restructuring and Related Cost, Incurred Cost, Per Diluted Share | $ / shares | $ 0.08 | ||||||||
Restructuring and Related Costs, Incurred Cost, Total | $ 4,500 | ||||||||
Restructuring and Related Cost, Incurred Cost, After Tax | $ 3,300 | ||||||||
Retail Operations Restructuring | |||||||||
Restructuring and Other Special Charges | |||||||||
Severance Costs | 400 | ||||||||
Severance Costs, Net of Tax | $ 300 | ||||||||
Severance Costs, Per Diluted Share | $ / shares | $ 0.01 | ||||||||
Expense Containment Initiatives | |||||||||
Restructuring and Other Special Charges | |||||||||
Restructuring Costs, Total | 15,000 | ||||||||
Restructuring Costs, After-tax Basis | $ 11,200 | ||||||||
Restructuring and Related Cost, Incurred Cost, Per Diluted Share | $ / shares | $ 0.27 | ||||||||
Indefinite Lived Tradenames | |||||||||
Restructuring and Other Special Charges | |||||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 32,000 | ||||||||
Blowfish, LLC | |||||||||
Restructuring and Other Special Charges | |||||||||
Fair Value Adjustments of Mandatory Purchase Obligation | 23,900 | 5,400 | |||||||
Fair Value Adjustments of Mandatory Purchase Obligation, After Tax Basis | $ 17,800 | $ 4,000 | |||||||
Fair Value Adjustments of Mandatory Purchase Obligation, Per Diluted Share (in dollars per share) | $ / shares | $ 0.48 | $ 0.10 | |||||||
Goodwill, Impairment Loss | 0 | ||||||||
Vionic | |||||||||
Restructuring and Other Special Charges | |||||||||
Business Combination, Acquisition Related Costs | $ 1,900 | ||||||||
Allen Edmonds | |||||||||
Restructuring and Other Special Charges | |||||||||
Goodwill, Impairment Loss | $ 38,000 | ||||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 23,800 | ||||||||
Restructuring and Other Special Charges | Expense Containment Initiatives | |||||||||
Restructuring and Other Special Charges | |||||||||
Restructuring Costs, Total | $ 12,300 | ||||||||
Restructuring and Other Special Charges | Vionic | |||||||||
Restructuring and Other Special Charges | |||||||||
Business Combination, Acquisition Related Costs | $ 3,400 | 1,900 | 4,500 | ||||||
Business Combination, Acquisition Related Costs, After-Tax Basis | $ 2,600 | $ 1,400 | $ 3,300 | ||||||
Business Combination, Acquisition Related Costs Per Share, Diluted | $ / shares | $ 0.07 | $ 0.03 | $ 0.08 | ||||||
Restructuring and Other Special Charges | Allen Edmonds | Employee Severance | |||||||||
Restructuring and Other Special Charges | |||||||||
Business Combination, Acquisition Related Costs | $ 5,800 | ||||||||
Business Combination, Acquisition Related Costs, After-Tax Basis | $ 4,300 | ||||||||
Business Combination, Acquisition Related Costs Per Share, Diluted | $ / shares | $ 0.10 | ||||||||
Other Nonoperating Income (Expense) | Expense Containment Initiatives | Pension Settlement Charge and Special Termination Benefits | |||||||||
Restructuring and Other Special Charges | |||||||||
Restructuring Costs, Total | 2,700 | ||||||||
Other Accrued Expenses | Expense Containment Initiatives | |||||||||
Restructuring and Other Special Charges | |||||||||
Restructuring Reserve, Ending Balance | $ 0 | 8,000 | $ 0 | $ 8,000 | 8,000 | ||||
Brand Portfolio | |||||||||
Restructuring and Other Special Charges | |||||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 46,200 | $ 60,000 | |||||||
Brand Portfolio | Fergie Brand Exit and Close Naturalizer Stores | |||||||||
Restructuring and Other Special Charges | |||||||||
Restructuring Costs, Total | 16,400 | ||||||||
Restructuring Costs, After-tax Basis | $ 14,900 | ||||||||
Restructuring and Related Cost, Incurred Cost, Per Diluted Share | $ / shares | $ 0.40 | ||||||||
Brand Portfolio | Fergie Brand Exit and Close Naturalizer Stores | Inventory Mark downs | |||||||||
Restructuring and Other Special Charges | |||||||||
Restructuring Costs, Total | $ 4,000 | ||||||||
Number of Brands | item | 2 | 2 | |||||||
Brand Portfolio | Fergie Brand Exit and Close Naturalizer Stores | Restructuring and Other Special Charges | |||||||||
Restructuring and Other Special Charges | |||||||||
Restructuring Costs, Total | $ 12,400 | ||||||||
Brand Portfolio | Carlos Brand Exit | |||||||||
Restructuring and Other Special Charges | |||||||||
Restructuring Costs, Total | 3,500 | ||||||||
Restructuring Costs, After-tax Basis | $ 2,600 | ||||||||
Restructuring and Related Cost, Incurred Cost, Per Diluted Share | $ / shares | $ 0.06 | ||||||||
Brand Portfolio | Carlos Brand Exit | Inventory Mark downs | |||||||||
Restructuring and Other Special Charges | |||||||||
Restructuring Costs, Total | $ 3,000 | ||||||||
Brand Portfolio | Vionic | |||||||||
Restructuring and Other Special Charges | |||||||||
Goodwill, Impairment Loss | $ 240,300 | $ 240,300 | |||||||
Business Combination, Acquisition Related Costs | 100 | ||||||||
Brand Portfolio | Allen Edmonds | Employee Severance | |||||||||
Restructuring and Other Special Charges | |||||||||
Business Combination, Acquisition Related Costs | 5,400 | ||||||||
Brand Portfolio | Restructuring and Other Special Charges | Employee Severance | |||||||||
Restructuring and Other Special Charges | |||||||||
Restructuring Costs, Total | 500 | ||||||||
Brand Portfolio | Restructuring and Other Special Charges | Expense Containment Initiatives | |||||||||
Restructuring and Other Special Charges | |||||||||
Restructuring Costs, Total | 5,000 | ||||||||
Brand Portfolio | Restructuring and Other Special Charges | Vionic | |||||||||
Restructuring and Other Special Charges | |||||||||
Business Combination, Acquisition Related Costs | 3,300 | 100 | |||||||
Brand Portfolio | Other Accrued Expenses | Brand Portfolio - Business Exits | |||||||||
Restructuring and Other Special Charges | |||||||||
Other accrued expenses | $ 2,100 | 2,100 | |||||||
Famous Footwear | Restructuring and Other Special Charges | Expense Containment Initiatives | |||||||||
Restructuring and Other Special Charges | |||||||||
Restructuring Costs, Total | 3,500 | ||||||||
Eliminations and Other | Vionic | |||||||||
Restructuring and Other Special Charges | |||||||||
Business Combination, Acquisition Related Costs | $ 1,800 | ||||||||
Eliminations and Other | Allen Edmonds | Employee Severance | |||||||||
Restructuring and Other Special Charges | |||||||||
Business Combination, Acquisition Related Costs | 400 | ||||||||
Eliminations and Other | Restructuring and Other Special Charges | Expense Containment Initiatives | |||||||||
Restructuring and Other Special Charges | |||||||||
Restructuring Costs, Total | 3,800 | ||||||||
Eliminations and Other | Restructuring and Other Special Charges | Vionic | |||||||||
Restructuring and Other Special Charges | |||||||||
Business Combination, Acquisition Related Costs | $ 100 | 1,800 | |||||||
Eliminations and Other | Other Nonoperating Income (Expense) | Expense Containment Initiatives | |||||||||
Restructuring and Other Special Charges | |||||||||
Restructuring Costs, Total | $ 2,700 | ||||||||
Diane Von Furstenberg and George Brown Bilt Brands | |||||||||
Restructuring and Other Special Charges | |||||||||
Business Exit Costs | 2,400 | ||||||||
Business Exit Costs, After Tax | $ 1,800 | ||||||||
Business Exit Costs, Per Share, Diluted | $ / shares | $ 0.04 | ||||||||
Business Exit, Inventory Markdowns | $ 1,800 | ||||||||
Diane Von Furstenberg and George Brown Bilt Brands | Restructuring and Other Special Charges | |||||||||
Restructuring and Other Special Charges | |||||||||
Business Exit, Inventory Markdowns | $ 600 | ||||||||
COVID-19 | |||||||||
Restructuring and Other Special Charges | |||||||||
Restructuring and Related Cost, Incurred Cost, Per Diluted Share | $ / shares | $ 3.10 | ||||||||
Restructuring and Related Costs, Incurred Cost, Total | $ 114,300 | $ 0 | |||||||
Restructuring and other special charges, net | 80,900 | ||||||||
Restructuring and Related Cost, Incurred Cost, After Tax | 115,500 | ||||||||
COVID-19 | Cost of Sales | |||||||||
Restructuring and Other Special Charges | |||||||||
Inventory Write-down | 33,400 | ||||||||
COVID-19 | Brand Portfolio | |||||||||
Restructuring and Other Special Charges | |||||||||
Restructuring and other special charges, net | 63,700 | ||||||||
COVID-19 | Brand Portfolio | Cost of Sales | |||||||||
Restructuring and Other Special Charges | |||||||||
Inventory Write-down | 27,400 | ||||||||
COVID-19 | Famous Footwear | |||||||||
Restructuring and Other Special Charges | |||||||||
Restructuring and other special charges, net | 16,600 | ||||||||
COVID-19 | Famous Footwear | Cost of Sales | |||||||||
Restructuring and Other Special Charges | |||||||||
Inventory Write-down | 6,000 | ||||||||
COVID-19 | Eliminations and Other | |||||||||
Restructuring and Other Special Charges | |||||||||
Restructuring and other special charges, net | $ 600 |
RETIREMENT AND OTHER BENEFIT _3
RETIREMENT AND OTHER BENEFIT PLANS (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Jan. 30, 2021 | Feb. 01, 2020 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | Dec. 31, 2015 | |
Retirement and Other Benefit Plans | ||||||
Defined Benefit Plan, Plan Assets, Amount, Ending Balance | $ 411,776,000 | $ 411,776,000 | ||||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position, Total | $ 79,100,000 | 39,900,000 | $ 79,100,000 | 39,900,000 | ||
Management | ||||||
Retirement and Other Benefit Plans | ||||||
Deferred Compensation Arrangement with Individual, Maximum Percentage of Deferral of Base Salary | 50.00% | |||||
Deferred Compensation Arrangement with Individual, Maximum Percentage of Deferral of Annual Incentive Compensation | 100.00% | |||||
Deferred Compensation Arrangement with Individual, Recorded Liability | 7,900,000 | 8,000,000 | $ 7,900,000 | 8,000,000 | ||
Deferred Compensation Plan Assets | 7,900,000 | 8,000,000 | 7,900,000 | 8,000,000 | ||
Non-employee Director | ||||||
Retirement and Other Benefit Plans | ||||||
Deferred Compensation Arrangement with Individual, Recorded Liability | 1,000,000 | 1,500,000 | $ 1,000,000 | $ 1,500,000 | ||
Non-employee Director | Phantom Share Units (PSUs) | ||||||
Retirement and Other Benefit Plans | ||||||
Deferred Compensation Arrangement with Individual, Shares Issued | 23,644 | 71,108 | ||||
Alternative Investment Fund | ||||||
Retirement and Other Benefit Plans | ||||||
Defined Benefit Plan, Plan Assets, Amount, Ending Balance | $ 427,146,000 | $ 427,146,000 | ||||
Long-term Investments | ||||||
Retirement and Other Benefit Plans | ||||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 97.00% | 97.00% | ||||
Short-term Investments 1 | ||||||
Retirement and Other Benefit Plans | ||||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 3.00% | 3.00% | ||||
Equities | ||||||
Retirement and Other Benefit Plans | ||||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 70.00% | 70.00% | ||||
Debt Securities 1 | ||||||
Retirement and Other Benefit Plans | ||||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 30.00% | 30.00% | ||||
Domestic Defined Contribution 401(k) Plan | ||||||
Retirement and Other Benefit Plans | ||||||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 3.50% | |||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 1.50% | |||||
Defined Contribution Plan, Employer Matching Contribution, Percent of First 6% Match | 50.00% | |||||
Defined Contribution Plan, Employer Matching Contribution, Additional Percentage | 2.00% | |||||
Defined Contribution Plan, Cost | $ 4,000,000 | $ 5,400,000 | $ 4,400,000 | |||
Canadian Defined Contribution 401(k) Plan | ||||||
Retirement and Other Benefit Plans | ||||||
Defined Contribution Plan, Cost | $ 100,000 | 200,000 | 200,000 | |||
Canadian Defined Contribution 401(k) Plan | Minimum | ||||||
Retirement and Other Benefit Plans | ||||||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 3.00% | |||||
Canadian Defined Contribution 401(k) Plan | Maximum | ||||||
Retirement and Other Benefit Plans | ||||||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 5.00% | |||||
Pension Plan | ||||||
Retirement and Other Benefit Plans | ||||||
Defined Benefit Plan, Benefit Obligation, Ending Balance | $ 365,570,000 | 388,288,000 | $ 365,570,000 | 388,288,000 | 342,192,000 | |
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) Due to Change in Mortality Projection Scales | 2,000,000 | |||||
Defined Benefit Plan, Plan Assets, Amount, Ending Balance | 444,717,000 | 428,186,000 | 444,717,000 | 428,186,000 | 381,450,000 | |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position, Total | 79,147,000 | 39,894,000 | 79,147,000 | 39,894,000 | ||
Pension Plan | Alternative Investment Fund | ||||||
Retirement and Other Benefit Plans | ||||||
Defined Benefit Plan, Plan Assets, Amount, Ending Balance | 17,500,000 | 16,300,000 | 17,500,000 | 16,300,000 | ||
Pension Plan | VERP | ||||||
Retirement and Other Benefit Plans | ||||||
Defined Benefit Plan, Recognized Lump Sum Payments and Settlement Charges | 35,700,000 | 19,900,000 | ||||
Defined Benefit Plan, Accumulated Benefit Obligation, (Increase) Decrease for Settlement and Curtailment | 1,100,000 | 2,700,000 | ||||
Postretirement Life Insurance | ||||||
Retirement and Other Benefit Plans | ||||||
Defined Benefit Plan, Maximum Insurance Coverage | 20,000 | |||||
Other Postretirement Benefits Plan | ||||||
Retirement and Other Benefit Plans | ||||||
Defined Benefit Plan, Benefit Obligation, Ending Balance | 1,249,000 | 1,371,000 | 1,249,000 | 1,371,000 | $ 1,461,000 | |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position, Total | (1,249,000) | (1,371,000) | $ (1,249,000) | (1,371,000) | ||
UNITED STATES | Pension Plan | ||||||
Retirement and Other Benefit Plans | ||||||
Defined Benefit Plan, Years Service Cap | 35 years | |||||
Defined Benefit Plan, Number of Highest Annual Salary Consecutive Years | 5 years | |||||
Defined Benefit Plan, Number of Years Before Retirement | 10 years | |||||
Defined Benefit Plan, Maximum Years of Service | 30 years | |||||
Defined Benefit Plan, Benefit Obligation, Ending Balance | 358,700,000 | 379,900,000 | $ 358,700,000 | 379,900,000 | ||
Foreign Plan | Pension Plan | ||||||
Retirement and Other Benefit Plans | ||||||
Defined Benefit Plan, Number of Highest Annual Salary Consecutive Years | 5 years | |||||
Defined Benefit Plan, Number of Years Before Retirement | 10 years | |||||
Defined Benefit Plan, Benefit Obligation, Ending Balance | 4,000,000 | $ 4,300,000 | $ 4,000,000 | $ 4,300,000 | ||
Defined Benefit Plan, Plan Assets, Amount, Ending Balance | $ 4,600,000 | $ 4,600,000 | ||||
Foreign Plan | Pension Plan | Equities | ||||||
Retirement and Other Benefit Plans | ||||||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 55.00% | 55.00% | ||||
Foreign Plan | Pension Plan | Bond Funds | ||||||
Retirement and Other Benefit Plans | ||||||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 42.00% | 42.00% | ||||
Foreign Plan | Pension Plan | Money Market Fund | ||||||
Retirement and Other Benefit Plans | ||||||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 3.00% | 3.00% |
RETIREMENT AND OTHER BENEFIT _4
RETIREMENT AND OTHER BENEFIT PLANS - Changes in Benefit Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Pension Plan | |||
Retirement and Other Benefit Plans | |||
Benefit obligation | $ 388,288 | $ 342,192 | |
Service cost | 8,492 | 7,219 | $ 8,995 |
Interest cost | 12,205 | 14,811 | 14,236 |
Plan participant's contribution | 7 | 9 | |
Plan amendments | 93 | ||
Actuarial loss (gain) | 8,710 | 58,278 | |
Benefits paid | (15,272) | (14,399) | |
Settlements | (36,747) | (20,263) | |
Contractual termination benefits | 482 | ||
Curtailments | (95) | (90) | |
Foreign exchange rate changes | (18) | (44) | |
Benefit obligation | 365,570 | 388,288 | 342,192 |
Other Postretirement Benefits Plan | |||
Retirement and Other Benefit Plans | |||
Benefit obligation | 1,371 | 1,461 | |
Interest cost | 41 | 60 | 59 |
Plan participant's contribution | 4 | 6 | |
Actuarial loss (gain) | (55) | (39) | |
Benefits paid | (112) | (117) | |
Benefit obligation | $ 1,249 | $ 1,371 | $ 1,461 |
RETIREMENT AND OTHER BENEFIT _5
RETIREMENT AND OTHER BENEFIT PLANS - Weighted-average Assumptions Used (Details) | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Pension Plan | |||
Retirement and Other Benefit Plans | |||
Discount rate, benefit obligations | 3.10% | 3.25% | |
Rate of compensation increase, benefit obligations | 3.00% | 3.00% | |
Discount rate, net periodic benefit income | 3.25% | 4.35% | 4.00% |
Rate of compensation increase, net periodic benefit income | 3.00% | 3.00% | 3.00% |
Expected return on plan assets, net periodic benefit income | 7.50% | 7.75% | 8.00% |
Other Postretirement Benefits Plan | |||
Retirement and Other Benefit Plans | |||
Discount rate, benefit obligations | 3.10% | 3.25% | |
Discount rate, net periodic benefit income | 3.25% | 4.35% | 4.00% |
RETIREMENT AND OTHER BENEFIT _6
RETIREMENT AND OTHER BENEFIT PLANS - Pension Plan Assets (Details) - USD ($) $ in Thousands | Jan. 30, 2021 | Feb. 01, 2020 |
Retirement and Other Benefit Plans | ||
Plan assets | $ 411,776 | |
Investments | $ 17,571 | 16,410 |
Total investments at fair value | 444,717 | 428,186 |
Fair Value, Inputs, Level 1 | ||
Retirement and Other Benefit Plans | ||
Plan assets | 370,606 | 335,002 |
Total investments at fair value | 370,606 | 335,002 |
Fair Value, Inputs, Level 2 | ||
Retirement and Other Benefit Plans | ||
Plan assets | 54,020 | 75,897 |
Total investments at fair value | 54,020 | 75,897 |
Fair Value, Inputs, Level 3 | ||
Retirement and Other Benefit Plans | ||
Plan assets | 2,520 | 877 |
Total investments at fair value | 2,520 | 877 |
Defined Benefit Plan, Cash and Cash Equivalents | ||
Retirement and Other Benefit Plans | ||
Plan assets | 9,149 | 31,588 |
Defined Benefit Plan, Cash and Cash Equivalents | Fair Value, Inputs, Level 1 | ||
Retirement and Other Benefit Plans | ||
Plan assets | 9,149 | 31,588 |
US Government Agencies Debt Securities | ||
Retirement and Other Benefit Plans | ||
Plan assets | 108,733 | 94,285 |
US Government Agencies Debt Securities | Fair Value, Inputs, Level 1 | ||
Retirement and Other Benefit Plans | ||
Plan assets | 50,116 | 18,388 |
US Government Agencies Debt Securities | Fair Value, Inputs, Level 2 | ||
Retirement and Other Benefit Plans | ||
Plan assets | 58,617 | 75,897 |
Interest Rate Swap Agreements | ||
Retirement and Other Benefit Plans | ||
Plan assets | (4,597) | |
Interest Rate Swap Agreements | Fair Value, Inputs, Level 2 | ||
Retirement and Other Benefit Plans | ||
Plan assets | (4,597) | |
Mutual Fund | ||
Retirement and Other Benefit Plans | ||
Plan assets | 38,064 | 32,551 |
Mutual Fund | Fair Value, Inputs, Level 1 | ||
Retirement and Other Benefit Plans | ||
Plan assets | 38,064 | 32,551 |
Exchange Traded Funds | ||
Retirement and Other Benefit Plans | ||
Plan assets | 119,647 | 71,505 |
Exchange Traded Funds | Fair Value, Inputs, Level 1 | ||
Retirement and Other Benefit Plans | ||
Plan assets | 119,647 | 71,505 |
Defined Benefit Plan, Equity Securities, Common Stock | ||
Retirement and Other Benefit Plans | ||
Plan assets | 160,137 | 177,743 |
Defined Benefit Plan, Equity Securities, Common Stock | Fair Value, Inputs, Level 1 | ||
Retirement and Other Benefit Plans | ||
Plan assets | 160,112 | 177,718 |
Defined Benefit Plan, Equity Securities, Common Stock | Fair Value, Inputs, Level 3 | ||
Retirement and Other Benefit Plans | ||
Plan assets | 25 | 25 |
Preferred Securities | ||
Retirement and Other Benefit Plans | ||
Plan assets | 2,495 | 852 |
Preferred Securities | Fair Value, Inputs, Level 3 | ||
Retirement and Other Benefit Plans | ||
Plan assets | 2,495 | 852 |
S&P 500 Index Options | ||
Retirement and Other Benefit Plans | ||
Plan assets | (6,482) | 3,252 |
S&P 500 Index Options | Fair Value, Inputs, Level 1 | ||
Retirement and Other Benefit Plans | ||
Plan assets | (6,482) | 3,252 |
Alternative Investment Fund | ||
Retirement and Other Benefit Plans | ||
Plan assets | 427,146 | |
Investments | 17,522 | 16,335 |
Unallocated Insurance Contracts | ||
Retirement and Other Benefit Plans | ||
Investments | $ 49 | $ 75 |
RETIREMENT AND OTHER BENEFIT _7
RETIREMENT AND OTHER BENEFIT PLANS - Changes in Fair Value of Plan Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 30, 2021 | Feb. 01, 2020 | |
Retirement and Other Benefit Plans | ||
Fair value of plan assets | $ 411,776 | |
Fair value of plan assets | $ 411,776 | |
Pension Plan | ||
Retirement and Other Benefit Plans | ||
Fair value of plan assets | 428,186 | 381,450 |
Actual return on plan assets | 67,413 | 81,282 |
Employer contributions | 1,148 | 151 |
Plan participant's contributions | 7 | 9 |
Benefits paid | (15,272) | (14,399) |
Settlements | (36,747) | (20,263) |
Foreign exchange rate changes | (18) | (44) |
Fair value of plan assets | 444,717 | 428,186 |
Other Postretirement Benefits Plan | ||
Retirement and Other Benefit Plans | ||
Employer contributions | 108 | 111 |
Plan participant's contributions | 4 | 6 |
Benefits paid | $ (112) | $ (117) |
RETIREMENT AND OTHER BENEFIT _8
RETIREMENT AND OTHER BENEFIT PLANS - Amounts Recognized in the Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Jan. 30, 2021 | Feb. 01, 2020 |
Retirement and Other Benefit Plans | ||
Prepaid pension costs | $ 88,833 | $ 50,660 |
Net amount recognized at end of year | 79,100 | 39,900 |
Pension Plan | ||
Retirement and Other Benefit Plans | ||
Prepaid pension costs | 88,833 | 50,660 |
Accrued benefit liabilities (current liability) | (1,896) | (2,405) |
Accrued benefit liabilities (noncurrent liability) | (7,790) | (8,361) |
Net amount recognized at end of year | 79,147 | 39,894 |
Other Postretirement Benefits Plan | ||
Retirement and Other Benefit Plans | ||
Accrued benefit liabilities (current liability) | (194) | (200) |
Accrued benefit liabilities (noncurrent liability) | (1,055) | (1,171) |
Net amount recognized at end of year | $ (1,249) | $ (1,371) |
RETIREMENT AND OTHER BENEFIT _9
RETIREMENT AND OTHER BENEFIT PLANS - Projected and Accumulated Benefit Obligation in Excess of Plan Assets (Details) - Supplemental Employee Retirement Plan - USD ($) $ in Thousands | Jan. 30, 2021 | Feb. 01, 2020 |
Retirement and Other Benefit Plans | ||
Projected benefit obligation | $ 9,686 | $ 10,766 |
Projected benefit obligation | 9,686 | 10,766 |
Accumulated benefit obligation | 8,954 | 9,516 |
Accumulated benefit obligation | $ 8,954 | $ 9,516 |
RETIREMENT AND OTHER BENEFIT_10
RETIREMENT AND OTHER BENEFIT PLANS - Amounts in Accumulated Other Comprehensive Loss and Expected Amortization (Details) - USD ($) $ in Thousands | Jan. 30, 2021 | Feb. 01, 2020 |
Pension Plan | ||
Retirement and Other Benefit Plans | ||
Net actuarial loss (gain) | $ 10,438 | $ 33,771 |
Net prior service credit | (947) | (2,093) |
Accumulated other comprehensive loss, net of tax | 9,491 | 31,678 |
Other Postretirement Benefits Plan | ||
Retirement and Other Benefit Plans | ||
Net actuarial loss (gain) | (466) | (507) |
Accumulated other comprehensive loss, net of tax | $ (466) | $ (507) |
RETIREMENT AND OTHER BENEFIT_11
RETIREMENT AND OTHER BENEFIT PLANS - Net Periodic Benefit Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Pension Plan | |||
Retirement and Other Benefit Plans | |||
Service cost | $ 8,492 | $ 7,219 | $ 8,995 |
Interest cost | 12,205 | 14,811 | 14,236 |
Expected return on assets | (31,498) | (27,735) | (29,091) |
Actuarial loss (gain) | 2,718 | 3,904 | 4,122 |
Prior service credit | (1,354) | (1,486) | (1,567) |
Settlement cost | 1,353 | 2,236 | 324 |
Cost of contractual termination benefits | 482 | ||
Curtailments | (189) | ||
Total net periodic benefit income | (8,273) | (569) | (2,981) |
Other Postretirement Benefits Plan | |||
Retirement and Other Benefit Plans | |||
Interest cost | 41 | 60 | 59 |
Actuarial loss (gain) | (110) | (107) | (125) |
Total net periodic benefit income | $ (69) | $ (47) | $ (66) |
RETIREMENT AND OTHER BENEFIT_12
RETIREMENT AND OTHER BENEFIT PLANS - Expected Cash Flows (Details) $ in Thousands | Jan. 30, 2021USD ($) |
Pension Plan | |
Retirement and Other Benefit Plans | |
2021 expected contributions to plan trusts | $ 1,925 |
2021 refund of assets (e.g. surplus) to employer | 136 |
2021 | 17,330 |
2022 | 18,348 |
2023 | 17,395 |
2024 | 15,941 |
2025 | 16,541 |
2026-2030 | 88,979 |
Pension Plan | Trust for Benefit of Employees | |
Retirement and Other Benefit Plans | |
2021 expected contributions to plan trusts | 58 |
Pension Plan | Funded Plan | |
Retirement and Other Benefit Plans | |
2021 refund of assets (e.g. surplus) to employer | 136 |
2021 | 15,405 |
2022 | 16,883 |
2023 | 15,301 |
2024 | 15,694 |
2025 | 16,271 |
2026-2030 | 87,139 |
Pension Plan | Funded Plan | Trust for Benefit of Employees | |
Retirement and Other Benefit Plans | |
2021 expected contributions to plan trusts | 58 |
Supplemental Employee Retirement Plan | |
Retirement and Other Benefit Plans | |
2021 expected contributions to plan trusts | 1,925 |
2021 | 1,925 |
2022 | 1,465 |
2023 | 2,094 |
2024 | 247 |
2025 | 270 |
2026-2030 | 1,840 |
Other Postretirement Benefits Plan | |
Retirement and Other Benefit Plans | |
2021 expected contributions to plan trusts | 197 |
2021 | 197 |
2022 | 167 |
2023 | 141 |
2024 | 119 |
2025 | 99 |
2026-2030 | $ 285 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||||
Jan. 30, 2021 | Dec. 31, 2020 | Feb. 01, 2020 | Dec. 31, 2019 | Feb. 02, 2019 | Dec. 31, 2018 | Feb. 03, 2018 | Dec. 31, 2017 | |
Effective Income Tax Rate Reconciliation | ||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 21.00% | 21.00% | 21.00% | 21.00% | 35.00% | 35.00% |
Earnings (Loss) from Continuing Operations before Income Taxes, Domestic | $ 441,500 | $ 37,300 | $ 40,000 | |||||
Earnings Loss) from Continuing Operations before Income Taxes, International | $ (75,600) | 41,300 | (45,800) | |||||
Other Tax Expense (Benefit) | (1,400) | (5,900) | ||||||
Goodwill, Impairment Loss | $ 0 | 38,000 | ||||||
Effective Income Tax Rate, Before Discrete Benefits of Provisions | 15.10% | 21.00% | ||||||
Net operating loss | $ 20,700 | |||||||
Deferred Tax Assets, Valuation Allowance | 49,981 | $ 4,809 | ||||||
Deferred Income Tax Expense (Benefit), Total | (37,034) | 9,796 | (6,922) | |||||
Unrecognized Tax Benefits | 1,500 | $ 1,900 | $ 2,500 | |||||
Income tax benefit related to the carryback of the net operating loss | 8,200 | |||||||
CANADA | ||||||||
Effective Income Tax Rate Reconciliation | ||||||||
Net operating loss | $ 3,000 | |||||||
CANADA | Minimum | ||||||||
Effective Income Tax Rate Reconciliation | ||||||||
Operating loss carryforwards period | 16 years | |||||||
CANADA | Maximum | ||||||||
Effective Income Tax Rate Reconciliation | ||||||||
Operating loss carryforwards period | 20 years | |||||||
UNITED KINGDOM | ||||||||
Effective Income Tax Rate Reconciliation | ||||||||
Net operating loss | $ 1,700 | |||||||
State and Local Jurisdiction and Foreign Tax Authority | ||||||||
Effective Income Tax Rate Reconciliation | ||||||||
Net operating loss | $ 11,600 | |||||||
State and Local Jurisdiction and Foreign Tax Authority | Minimum | ||||||||
Effective Income Tax Rate Reconciliation | ||||||||
Operating loss carryforwards period | 1 year | |||||||
State and Local Jurisdiction and Foreign Tax Authority | Maximum | ||||||||
Effective Income Tax Rate Reconciliation | ||||||||
Operating loss carryforwards period | 20 years | |||||||
Foreign Tax Authority | ||||||||
Effective Income Tax Rate Reconciliation | ||||||||
Deferred Income Tax Expense (Benefit), Total | $ 0 | |||||||
Federal Tax Authority | ||||||||
Effective Income Tax Rate Reconciliation | ||||||||
Tax benefit (expense) due to the planned carryback of the federal NOL | $ 4,400 |
INCOME TAXES - Components of In
INCOME TAXES - Components of Income Tax (Benefit) Provision on (Loss) Earnings (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Components of Income Tax (Benefit) Provision on (Loss) Earnings | |||
Current | $ (37,140) | $ 4,003 | $ 1,953 |
Deferred | (45,145) | 5,390 | 4,451 |
Total federal income tax provision (benefit) | (82,285) | 9,393 | 6,404 |
Current | 1,532 | 290 | (718) |
Deferred | (9,038) | 2,403 | 1,284 |
Total state income tax provision (benefit) | (7,506) | 2,693 | 566 |
Current | 2,288 | 3,914 | 5,413 |
Deferred | 9,386 | 511 | (12,656) |
Total international income tax provision (benefit) | 11,674 | 4,425 | (7,243) |
Total income tax provision (benefit) | $ (78,117) | $ 16,511 | $ (273) |
INCOME TAXES - Differences Betw
INCOME TAXES - Differences Between the Income Tax (Benefit) Provision and Federal Statutory Income Tax Rate Calculation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Income taxes at statutory rate | $ (108,593) | $ 16,505 | $ (1,208) |
State income taxes, net of federal tax benefit | (17,433) | 2,218 | 2,519 |
International earnings taxed at differing rates from U.S statutory | (5,210) | (4,071) | (4,210) |
Share-based compensation | 1,094 | 86 | (347) |
Non-deductibility of goodwill impairment | 20,179 | 0 | 7,989 |
Impairment of foreign tradename taxed at higher rate | (1,440) | 0 | (2,400) |
Provision for valuation allowance | 41,019 | 872 | 0 |
CARES Act NOL, net carryback benefit | (8,203) | 0 | 0 |
Income tax reform, net benefit | 0 | 0 | (3,891) |
GILTI, BEAT and FDII provisions | 0 | 668 | 613 |
Non-deductibility of acquisition costs | 0 | 0 | 46 |
Other | 470 | 233 | 616 |
Total income tax provision (benefit) | $ (78,117) | $ 16,511 | $ (273) |
INCOME TAXES - Deferred Income
INCOME TAXES - Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jan. 30, 2021 | Feb. 01, 2020 |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits [Abstract] | ||
Lease obligations | $ 176,953 | $ 200,408 |
Goodwill and intangible assets | 25,659 | 0 |
Net operating loss carryforward/carryback | 20,736 | 6,671 |
Accrued expenses | 18,610 | 18,762 |
Employee benefits, compensation and insurance | 11,006 | 12,812 |
Accounts receivable | 6,149 | 3,109 |
Inventory capitalization and inventory reserves | 4,130 | 4,123 |
Impairment of investment in nonconsolidated affiliate | 1,470 | 1,470 |
Postretirement and postemployment benefit plans | 285 | 314 |
Capital loss carryforward | 14 | 14 |
Other | 1,245 | 1,349 |
Total deferred tax assets, before valuation allowance | 266,257 | 249,032 |
Valuation allowance | (49,981) | (4,809) |
Total deferred tax assets, net of valuation allowance | 216,276 | 244,223 |
Lease right-of-use assets | (151,962) | (187,978) |
LIFO inventory valuation | (38,437) | (44,774) |
Retirement plans | (21,041) | (10,466) |
Capitalized software | (5,331) | (4,420) |
Depreciation | (4,779) | (8,416) |
Goodwill and intangible assets | 0 | (29,636) |
Other | (2,970) | (3,811) |
Total deferred tax liabilities | (224,520) | (289,501) |
Net deferred tax liability | $ (8,244) | $ (45,278) |
BUSINESS SEGMENT INFORMATION (D
BUSINESS SEGMENT INFORMATION (Details) $ in Thousands | 12 Months Ended | |||
Jan. 30, 2021USD ($)store | Feb. 01, 2020USD ($) | Feb. 02, 2019USD ($) | ||
Revenues from External Customers and Long-Lived Assets | ||||
Number of Stores | store | 1,086 | |||
Operating Lease, Right-of-Use Asset | $ 554,303 | $ 695,594 | $ 0 | |
Total net sales | 2,117,070 | 2,921,562 | 2,834,846 | |
Total long-lived assets | [1] | 726,740 | 920,440 | 230,784 |
UNITED STATES | ||||
Revenues from External Customers and Long-Lived Assets | ||||
Total net sales | 1,984,713 | 2,734,912 | 2,656,928 | |
Total long-lived assets | [1] | 703,642 | 881,338 | 219,975 |
Asia | ||||
Revenues from External Customers and Long-Lived Assets | ||||
Total net sales | 77,793 | 98,045 | 93,883 | |
Total long-lived assets | [1] | 2,660 | 3,527 | 1,348 |
CANADA | ||||
Revenues from External Customers and Long-Lived Assets | ||||
Total net sales | 46,781 | 80,247 | 63,354 | |
Total long-lived assets | [1] | 20,246 | 35,317 | 9,381 |
Other | ||||
Revenues from External Customers and Long-Lived Assets | ||||
Total net sales | 7,783 | 8,358 | 20,681 | |
Total long-lived assets | [1] | $ 192 | 258 | 80 |
Famous Footwear | ||||
Revenues from External Customers and Long-Lived Assets | ||||
Number of Stores | store | 916 | |||
Total net sales | $ 1,263,551 | $ 1,588,057 | $ 1,606,808 | |
Famous Footwear | Supplier Concentration Risk | ||||
Revenues from External Customers and Long-Lived Assets | ||||
Concentration risk percentage | 25.00% | 22.00% | 24.00% | |
Brand Portfolio | ||||
Revenues from External Customers and Long-Lived Assets | ||||
Total net sales | $ 902,481 | $ 1,406,460 | $ 1,313,551 | |
Brand Portfolio | UNITED STATES | ||||
Revenues from External Customers and Long-Lived Assets | ||||
Number of Stores | store | 107 | |||
Brand Portfolio | CHINA | ||||
Revenues from External Customers and Long-Lived Assets | ||||
Number of Stores | store | 13 | |||
Brand Portfolio | CANADA | ||||
Revenues from External Customers and Long-Lived Assets | ||||
Number of Stores | store | 50 | |||
[1] | Long-lived assets include $554,303 and $695,594 of lease right-of-use assets in 2020 and 2019, respectively, with no corresponding amounts in 2018, as it precedes the adoption of ASC 842. |
BUSINESS SEGMENT INFORMATION -
BUSINESS SEGMENT INFORMATION - Key Financial Measures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Business Segment Information - Key Financial Measures | |||
Net sales | $ 2,117,070 | $ 2,921,562 | $ 2,834,846 |
Intersegment sales | 48,962 | 72,955 | 85,513 |
Depreciation and amortization | 60,539 | 65,562 | 62,697 |
Operating (loss) earnings | (485,658) | 103,813 | 401 |
Segment assets | 1,867,050 | 2,431,707 | 1,838,568 |
Purchases of property and equipment | 16,786 | 44,533 | 62,483 |
Capitalized software | 5,274 | 5,619 | 4,416 |
Famous Footwear | |||
Business Segment Information - Key Financial Measures | |||
Net sales | 1,263,551 | 1,588,057 | 1,606,808 |
Intersegment sales | 0 | 0 | 0 |
Depreciation and amortization | 23,090 | 26,706 | 28,816 |
Operating (loss) earnings | (23,821) | 76,896 | 85,268 |
Segment assets | 765,754 | 891,042 | 502,507 |
Purchases of property and equipment | 7,693 | 16,129 | 17,552 |
Capitalized software | 870 | 16 | 351 |
Brand Portfolio | |||
Business Segment Information - Key Financial Measures | |||
Net sales | 902,481 | 1,406,460 | 1,313,551 |
Intersegment sales | 48,962 | 72,955 | 85,513 |
Depreciation and amortization | 28,889 | 29,875 | 20,768 |
Operating (loss) earnings | (408,444) | 58,153 | (40,799) |
Segment assets | 851,027 | 1,383,500 | 1,211,008 |
Purchases of property and equipment | 6,486 | 21,973 | 41,993 |
Capitalized software | 153 | 1,544 | 814 |
Eliminations and Other | |||
Business Segment Information - Key Financial Measures | |||
Net sales | (48,962) | (72,955) | (85,513) |
Intersegment sales | 0 | 0 | 0 |
Depreciation and amortization | 8,560 | 8,981 | 13,113 |
Operating (loss) earnings | (53,393) | (31,236) | (44,068) |
Segment assets | 250,269 | 157,165 | 125,053 |
Purchases of property and equipment | 2,607 | 6,431 | 2,938 |
Capitalized software | $ 4,251 | $ 4,059 | $ 3,251 |
BUSINESS SEGMENT INFORMATION _2
BUSINESS SEGMENT INFORMATION - Reconciliation of Operating Earnings Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
BUSINESS SEGMENT INFORMATION | |||
Operating (loss) earnings | $ (485,658) | $ 103,813 | $ 401 |
Interest expense, net | (48,287) | (33,123) | (18,277) |
Loss on early extinguishment of debt | 0 | 0 | (186) |
Other income, net | 16,834 | 7,903 | 12,308 |
(Loss) earnings before income taxes | $ (517,111) | $ 78,593 | $ (5,754) |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
INVENTORIES | ||
Other Inventory, Materials, Supplies and Merchandise under Consignment, Gross | $ 0.8 | $ 2.5 |
INVENTORIES - Schedule of Inven
INVENTORIES - Schedule of Inventories (Details) - USD ($) $ in Thousands | Jan. 30, 2021 | Feb. 01, 2020 |
INVENTORIES | ||
Raw materials | $ 14,592 | $ 18,455 |
Work-in-process | 349 | 454 |
Finished goods | 473,014 | 599,497 |
Inventories, net | $ 487,955 | $ 618,406 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Asset Impairment Charges | |||
Impairment of Long-Lived Assets Held-for-use | $ 56,343 | $ 5,867 | $ 3,665 |
Interest Costs Capitalized | 0 | 600 | 200 |
Company Operated Warehouse Facilities | |||
Asset Impairment Charges | |||
Interest Costs Capitalized | 0 | $ 600 | $ 200 |
Restructuring and Other Special Charges | |||
Asset Impairment Charges | |||
Impairment of Long-Lived Assets Held-for-use | 55,300 | ||
Selling and Administrative Expenses | |||
Asset Impairment Charges | |||
Impairment of Long-Lived Assets Held-for-use | $ 1,000 |
PROPERTY AND EQUIPMENT - Proper
PROPERTY AND EQUIPMENT - Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 30, 2021 | Feb. 01, 2020 | |
Property and Equipment | ||
Property and equipment | $ 543,645 | $ 593,979 |
Allowances for depreciation | (371,208) | (369,133) |
Property and equipment, net | 172,437 | 224,846 |
Land and Building | ||
Property and Equipment | ||
Property and equipment | $ 53,561 | 52,638 |
Building | Minimum | ||
Property and Equipment | ||
Useful life (Year) | 5 years | |
Building | Maximum | ||
Property and Equipment | ||
Useful life (Year) | 30 years | |
Leasehold Improvements | ||
Property and Equipment | ||
Property and equipment | $ 208,939 | 241,209 |
Leasehold Improvements | Minimum | ||
Property and Equipment | ||
Useful life (Year) | 5 years | |
Leasehold Improvements | Maximum | ||
Property and Equipment | ||
Useful life (Year) | 20 years | |
Technology Equipment | ||
Property and Equipment | ||
Property and equipment | $ 49,105 | 56,480 |
Technology Equipment | Minimum | ||
Property and Equipment | ||
Useful life (Year) | 2 years | |
Technology Equipment | Maximum | ||
Property and Equipment | ||
Useful life (Year) | 7 years | |
Machinery and Equipment | ||
Property and Equipment | ||
Property and equipment | $ 98,862 | 98,715 |
Machinery and Equipment | Minimum | ||
Property and Equipment | ||
Useful life (Year) | 4 years | |
Machinery and Equipment | Maximum | ||
Property and Equipment | ||
Useful life (Year) | 20 years | |
Furniture and Fixtures | ||
Property and Equipment | ||
Property and equipment | $ 126,405 | 140,233 |
Furniture and Fixtures | Minimum | ||
Property and Equipment | ||
Useful life (Year) | 3 years | |
Furniture and Fixtures | Maximum | ||
Property and Equipment | ||
Useful life (Year) | 10 years | |
Construction in Progress | ||
Property and Equipment | ||
Property and equipment | $ 6,773 | $ 4,704 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | Nov. 01, 2020 | May 02, 2020 | Jan. 30, 2021 | May 02, 2020 | Feb. 01, 2020 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 |
Goodwill and Intangible Assets | ||||||||
Amortization of Intangible Assets, Total | $ 12,984 | $ 13,062 | $ 7,021 | |||||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 12,600 | 12,600 | ||||||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 12,100 | 12,100 | ||||||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 11,900 | 11,900 | ||||||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 11,000 | 11,000 | ||||||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 11,000 | 11,000 | ||||||
Goodwill, Impairment Loss | 0 | 38,000 | ||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 22,400 | $ 0 | ||||||
Indefinite-lived Tradenames | ||||||||
Goodwill and Intangible Assets | ||||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 22,400 | |||||||
Tradenames | ||||||||
Goodwill and Intangible Assets | ||||||||
Definite-Lived Intangible Assets, Impairment | 10,200 | |||||||
Customer Relationships | ||||||||
Goodwill and Intangible Assets | ||||||||
Definite-Lived Intangible Assets, Impairment | 4,005 | |||||||
Blowfish, LLC | ||||||||
Goodwill and Intangible Assets | ||||||||
Goodwill, Impairment Loss | 0 | |||||||
Brand Portfolio | ||||||||
Goodwill and Intangible Assets | ||||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 46,200 | 60,000 | ||||||
Brand Portfolio | Vionic | ||||||||
Goodwill and Intangible Assets | ||||||||
Goodwill, Impairment Loss | $ 240,300 | 240,300 | ||||||
Allen Edmonds | ||||||||
Goodwill and Intangible Assets | ||||||||
Goodwill, Impairment Loss | 0 | 38,000 | ||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 60,000 | |||||||
Definite-Lived Intangible Assets, Impairment | $ 23,800 | |||||||
Allen Edmonds | Indefinite-lived Allen Edmonds Trademark | ||||||||
Goodwill and Intangible Assets | ||||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 12,200 | $ 60,000 | ||||||
Allen Edmonds | Tradenames | ||||||||
Goodwill and Intangible Assets | ||||||||
Definite-Lived Intangible Assets, Impairment | 19,800 | |||||||
Allen Edmonds | Customer Relationships | ||||||||
Goodwill and Intangible Assets | ||||||||
Definite-Lived Intangible Assets, Impairment | $ 4,000 | |||||||
Via Spiga | Indefinite-lived Via Spiga Trademark | ||||||||
Goodwill and Intangible Assets | ||||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 10,200 | |||||||
Indefinite-Lived Intangible Assets, Net Carrying Value | $ 500 | $ 500 | ||||||
Indefinite-Lived Intangible Assets, Impairment Period (in years) | 2 years |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Schedule of Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | Jan. 30, 2021 | Feb. 01, 2020 |
Goodwill and Intangible Assets | ||
Intangible Assets | $ 344,883 | $ 391,088 |
Accumulated amortization | (109,768) | (96,784) |
Total intangible assets, net | 235,115 | 294,304 |
Goodwill | 4,956 | 245,275 |
Goodwill and intangible assets, net | 240,071 | 539,579 |
Famous Footwear | ||
Goodwill and Intangible Assets | ||
Intangible Assets | 2,800 | 2,800 |
Brand Portfolio | ||
Goodwill and Intangible Assets | ||
Intangible Assets | 342,083 | 388,288 |
Goodwill | $ 4,956 | $ 245,275 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Finite and Infinite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Nov. 01, 2020 | May 02, 2020 | Feb. 01, 2020 | Jan. 30, 2021 | Feb. 01, 2020 |
Goodwill and Intangible Assets | |||||
Finite-Lived Intangible Assets, Accumulated Amortization | $ 96,784 | $ 109,768 | $ 96,784 | ||
Indefinite-Lived Intangible Assets, Impairment | $ 22,400 | 0 | |||
Intangible Assets, Cost Basis | 391,088 | 391,088 | 391,088 | ||
Intangible Assets, Impairment | 46,205 | 0 | |||
Intangible Assets, Net Carrying Value | 294,304 | 235,115 | 294,304 | ||
Indefinite-lived Tradenames | |||||
Goodwill and Intangible Assets | |||||
Indefinite-Lived Intangible Assets, Impairment | 22,400 | ||||
Indefinite Lived Tradenames | |||||
Goodwill and Intangible Assets | |||||
Indefinite-Lived Intangible Assets, Cost Basis | 58,100 | 47,400 | 58,100 | ||
Indefinite-Lived Intangible Assets, Impairment | 32,000 | ||||
Indefinite-Lived Intangible Assets, Net Carrying Value | 58,100 | 15,400 | 58,100 | ||
Tradenames | |||||
Goodwill and Intangible Assets | |||||
Finite-Lived Intangible Assets, Cost Basis | 288,788 | 299,488 | 288,788 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | 91,827 | 101,919 | 91,827 | ||
Definite-Lived Intangible Assets, Impairment | 10,200 | ||||
Finite-Lived Intangible Assets, Net Carrying Value | 196,961 | $ 187,369 | $ 196,961 | ||
Tradenames | Minimum | |||||
Goodwill and Intangible Assets | |||||
Finite-Lived Intangible Assets, Estimated Useful Life (Year) | 2 years | 15 years | |||
Tradenames | Maximum | |||||
Goodwill and Intangible Assets | |||||
Finite-Lived Intangible Assets, Estimated Useful Life (Year) | 40 years | 40 years | |||
Customer Relationships | |||||
Goodwill and Intangible Assets | |||||
Finite-Lived Intangible Assets, Cost Basis | 44,200 | $ 44,200 | $ 44,200 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | 4,957 | 7,849 | 4,957 | ||
Definite-Lived Intangible Assets, Impairment | 4,005 | ||||
Finite-Lived Intangible Assets, Net Carrying Value | $ 39,243 | $ 32,346 | $ 39,243 | ||
Customer Relationships | Minimum | |||||
Goodwill and Intangible Assets | |||||
Finite-Lived Intangible Assets, Estimated Useful Life (Year) | 15 years | 15 years | |||
Customer Relationships | Maximum | |||||
Goodwill and Intangible Assets | |||||
Finite-Lived Intangible Assets, Estimated Useful Life (Year) | 16 years | 16 years | |||
Allen Edmonds | |||||
Goodwill and Intangible Assets | |||||
Definite-Lived Intangible Assets, Impairment | $ 23,800 | ||||
Indefinite-Lived Intangible Assets, Impairment | $ 60,000 | ||||
Allen Edmonds | Tradenames | |||||
Goodwill and Intangible Assets | |||||
Definite-Lived Intangible Assets, Impairment | 19,800 | ||||
Allen Edmonds | Customer Relationships | |||||
Goodwill and Intangible Assets | |||||
Definite-Lived Intangible Assets, Impairment | $ 4,000 | ||||
Via Spiga | Indefinite Lived Tradenames | |||||
Goodwill and Intangible Assets | |||||
Indefinite-Lived Intangible Assets, Impairment Period (in years) | 2 years | ||||
Indefinite-Lived Intangible Assets, Net Carrying Value | $ 500 | ||||
Via Spiga | Indefinite-lived Via Spiga Trademark | |||||
Goodwill and Intangible Assets | |||||
Indefinite-Lived Intangible Assets, Impairment | $ 10,200 | ||||
Indefinite-Lived Intangible Assets, Impairment Period (in years) | 2 years | ||||
Indefinite-Lived Intangible Assets, Net Carrying Value | $ 500 |
LONG-TERM AND SHORT-TERM FINA_2
LONG-TERM AND SHORT-TERM FINANCING ARRANGEMENTS (Details) - USD ($) $ in Thousands | Apr. 14, 2020 | Jan. 30, 2021 | Feb. 01, 2020 | Mar. 31, 2020 | Jan. 18, 2019 | Jan. 17, 2019 | Jul. 27, 2015 |
Senior Notes Due 2023 | |||||||
Long-term and Short-term Financing Arrangements | |||||||
Senior Notes, Total | $ 200,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.25% | ||||||
Senior Notes, Repurchase Price, Change of Control | 101.00% | ||||||
Revolving Credit Facility | |||||||
Long-term and Short-term Financing Arrangements | |||||||
Line of Credit Facility, Maximum Month-end Outstanding Amount | $ 438,500 | $ 407,500 | |||||
Line of Credit Facility, Average Outstanding Amount | $ 299,800 | $ 352,400 | |||||
Debt, Weighted Average Interest Rate | 3.40% | 4.10% | |||||
Long-term Line of Credit, Total | $ 250,000 | $ 440,000 | |||||
Letters of Credit Outstanding, Amount | 11,200 | ||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 136,000 | ||||||
Revolving Credit Facility | Third Amendment to Fourth Amended and Restated Credit Agreement | |||||||
Long-term and Short-term Financing Arrangements | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 500,000 | $ 600,000 | |||||
Line of Credit Facility, Option to Increase, Amount | $ 250,000 | ||||||
Line of Credit Facility, Excess Availability, Percent to Trigger Debt Restrictions | 10.00% | ||||||
Line of Credit Facility, Excess Availability to Trigger Debt Restrictions | $ 40,000 | ||||||
Line of Credit Facility, Fixed Charge Coverage Ratio to Trigger Debt Restrictions | 1 | ||||||
Revolving Credit Facility | Fourth Amendment to Fourth Amended and Restated Credit Agreement | |||||||
Long-term and Short-term Financing Arrangements | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 600,000 | ||||||
Line of Credit Facility, Option to Increase, Amount | 150,000 | ||||||
Line of Credit Facility, Additional Maximum Borrowing Capacity | $ 100,000 | ||||||
Debt Instrument, Increase in Basis Spread on Variable Rate | 0.75% | ||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage Increase | 0.05% | ||||||
Minimum | Revolving Credit Facility | Fourth Amendment to Fourth Amended and Restated Credit Agreement | |||||||
Long-term and Short-term Financing Arrangements | |||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% |
LEASES (Details)
LEASES (Details) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021USD ($)location | Feb. 01, 2020USD ($) | Feb. 02, 2019USD ($) | |
Leases | |||
Impairment of Long-Lived Assets Held-for-use | $ 56,343 | $ 5,867 | $ 3,665 |
Lease concessions | 5,400 | ||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 88,500 | ||
Operating Lease, Liability, Total | 672,002 | ||
Operating Lease, Right-of-Use Asset | 554,303 | 695,594 | 0 |
Sublease Income | $ 96 | 269 | |
Current Fiscal Year | |||
Leases | |||
Number Of Lease Commitments Not Yet Commenced In Current Fiscal Year | location | 6 | ||
Next Fiscal Year | |||
Leases | |||
Number Of Locations Of Lease Commitments Not Yet Commenced In Current Fiscal Year | location | 5 | ||
Operating Lease, Liability, Total | $ 4,500 | ||
Operating Lease, Right-of-Use Asset | $ 4,500 | ||
Fiscal Year 2022 | |||
Leases | |||
Number Of Anticipated Leases In Next Fiscal Year | location | 1 | ||
Operating Lease, Liability, Total | $ 500 | ||
Operating Lease, Right-of-Use Asset | 500 | ||
Selling and Administrative Expenses | |||
Leases | |||
Impairment of Long-Lived Assets Held-for-use | 1,000 | ||
Variable Lease Reversal of Cost, Rent Abatement | 5,400 | ||
Lease concessions | 5,400 | ||
COVID-19 | |||
Leases | |||
Operating Lease, Impairment Loss | 31,400 | ||
Impairment of Long-Lived Assets Held-for-use | 24,900 | ||
Retail Stores | |||
Leases | |||
Asset Impairment Charges, Total | $ 56,300 | $ 5,900 | $ 3,700 |
LEASES - Weighted-average Lease
LEASES - Weighted-average Lease Term and Discount Rate (Details) | Jan. 30, 2021 | Feb. 01, 2020 |
LEASES | ||
Weighted-average remaining lease term (in years) | 6 years 9 months 18 days | 7 years 2 months 12 days |
Weighted-average discount rate | 4.20% | 4.30% |
LEASES - Components of Lease Ex
LEASES - Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 30, 2021 | Feb. 01, 2020 | |
LEASES | ||
Operating lease expense | $ 167,624 | $ 186,185 |
Variable lease expense | 48,443 | 45,455 |
Short-term lease expense | 4,512 | 3,339 |
Sublease income | (96) | (269) |
Lease, Cost, Total | 220,483 | $ 234,710 |
Lease concessions | $ 5,400 |
LEASES - Future Minimum Rent Pa
LEASES - Future Minimum Rent Payments (Details) $ in Thousands | Jan. 30, 2021USD ($) |
LEASES | |
2021 | $ 176,902 |
2022 | 137,151 |
2023 | 108,201 |
2024 | 86,114 |
2025 | 66,566 |
Thereafter | 201,925 |
Total minimum operating lease payments | 776,859 |
Less imputed interest | (104,857) |
Operating Lease, Liability, Total | $ 672,002 |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 30, 2021 | Feb. 01, 2020 | |
LEASES | ||
Cash paid for lease liabilities | $ 145,552 | $ 196,033 |
Sublease Income | $ 96 | $ 269 |
LEASES - Summary of Rent Expens
LEASES - Summary of Rent Expense for Operating Lease (Details) $ in Thousands | 12 Months Ended |
Feb. 02, 2019USD ($) | |
LEASES | |
Minimum rent | $ 171,410 |
Contingent rent | 671 |
Sublease income | (428) |
Total | $ 171,653 |
RISK MANAGEMENT AND DERIVATIV_3
RISK MANAGEMENT AND DERIVATIVES - Net Notional Amount of All Purchase and Sale Contracts of a Foreign Currency (Details) - USD ($) $ in Thousands | Jan. 30, 2021 | Feb. 01, 2020 |
Foreign Currency Fair Value Hedge Derivative | ||
Net notional amount | $ 0 | $ 7,638 |
Foreign Exchange Forward, US Dollars | ||
Foreign Currency Fair Value Hedge Derivative | ||
Net notional amount | 0 | 3,963 |
Foreign Exchange Forward, Euro | ||
Foreign Currency Fair Value Hedge Derivative | ||
Net notional amount | 0 | 1,251 |
Foreign Exchange Forward, Chinese Yuan | ||
Foreign Currency Fair Value Hedge Derivative | ||
Net notional amount | 0 | 2,355 |
Foreign Exchange Forward, Other Currencies | ||
Foreign Currency Fair Value Hedge Derivative | ||
Net notional amount | $ 0 | $ 69 |
RISK MANAGEMENT AND DERIVATIV_4
RISK MANAGEMENT AND DERIVATIVES - Schedule of Fair Values of Derivative Instruments Designated as Hedging Instruments (Details) - Foreign Exchange Forward - USD ($) $ in Thousands | Jan. 30, 2021 | Feb. 01, 2020 |
Prepaid Expenses and Other Current Assets | ||
Derivatives, Fair Value | ||
Asset Derivatives | $ 0 | $ 0 |
Accounts Payable and Accrued Liabilities | ||
Derivatives, Fair Value | ||
Liability Derivatives | $ 0 | $ 103 |
RISK MANAGEMENT AND DERIVATIV_5
RISK MANAGEMENT AND DERIVATIVES - Effect of Derivative Instruments in Cash Flow Hedging Relationships (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Derivative Instruments, Gain (Loss) | |||
Unrealized gain (loss) on derivative financial instruments, net of tax | $ 92 | $ 516 | $ (1,375) |
Foreign Exchange Forward | Sales | |||
Derivative Instruments, Gain (Loss) | |||
Unrealized gain (loss) on derivative financial instruments, net of tax | 23 | 16 | |
Gain (Loss) Reclassified from Accumulated OCL into Earnings | 0 | 9 | |
Foreign Exchange Forward | Cost of Sales | |||
Derivative Instruments, Gain (Loss) | |||
Unrealized gain (loss) on derivative financial instruments, net of tax | 60 | 439 | |
Gain (Loss) Reclassified from Accumulated OCL into Earnings | 0 | (38) | |
Foreign Exchange Forward | Selling and Administrative Expenses | |||
Derivative Instruments, Gain (Loss) | |||
Unrealized gain (loss) on derivative financial instruments, net of tax | 33 | (68) | |
Gain (Loss) Reclassified from Accumulated OCL into Earnings | $ (6) | $ (227) |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | May 02, 2020 | Jan. 30, 2021 | May 02, 2020 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Deferred Compensation Plan, Maximum Percentage of Deferral of Base Salary | 50.00% | 50.00% | ||||
Deferred Compensation Plan, Maximum Percentage of Deferral of Annual Incentive Compensation | 100.00% | 100.00% | ||||
Accretion and Remeasurement Adjustments | $ 23,900 | $ 6,000 | ||||
Long-lived Assets, Held and Used | $ 615,700 | 615,700 | 780,200 | $ 99,000 | ||
Intangible Assets, Impairment | $ 46,205 | 0 | ||||
Goodwill, Impairment Loss | $ 0 | 38,000 | ||||
Restricted Stock Units (RSUs) | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | |||||
Allen Edmonds | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Goodwill, Impairment Loss | 38,000 | |||||
Allen Edmonds | Tradenames | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Intangible Assets, Impairment | $ 60,000 | |||||
Blowfish, LLC | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Goodwill, Impairment Loss | $ 0 | |||||
Brand Portfolio | Vionic | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Goodwill, Impairment Loss | $ 240,300 | $ 240,300 |
FAIR VALUE MEASUREMENTS - Asset
FAIR VALUE MEASUREMENTS - Assets and Liabilities Measured on a Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Jan. 30, 2021 | Feb. 01, 2020 |
Fair Value Measurements - Assets and Liabilities Measured on a Recurring Basis | ||
Cash equivalents - money market funds | $ 45,000 | $ 18,001 |
Non-qualified deferred compensation plan assets | 7,918 | 8,004 |
Non-qualified deferred compensation plan liabilities | (7,918) | (8,004) |
Deferred compensation plan liabilities for non-employee directors | (989) | (1,536) |
Restricted stock units for non-employee directors | (1,661) | (2,572) |
Mandatory purchase obligation - Blowfish Malibu | (39,134) | (15,200) |
Derivative financial instruments, net | (103) | |
Fair Value, Inputs, Level 1 | ||
Fair Value Measurements - Assets and Liabilities Measured on a Recurring Basis | ||
Cash equivalents - money market funds | 45,000 | 18,001 |
Non-qualified deferred compensation plan assets | 7,918 | 8,004 |
Non-qualified deferred compensation plan liabilities | (7,918) | (8,004) |
Deferred compensation plan liabilities for non-employee directors | (989) | (1,536) |
Restricted stock units for non-employee directors | (1,661) | (2,572) |
Mandatory purchase obligation - Blowfish Malibu | 0 | 0 |
Derivative financial instruments, net | 0 | |
Fair Value, Inputs, Level 2 | ||
Fair Value Measurements - Assets and Liabilities Measured on a Recurring Basis | ||
Cash equivalents - money market funds | 0 | 0 |
Non-qualified deferred compensation plan assets | 0 | 0 |
Non-qualified deferred compensation plan liabilities | 0 | 0 |
Deferred compensation plan liabilities for non-employee directors | 0 | 0 |
Restricted stock units for non-employee directors | 0 | 0 |
Mandatory purchase obligation - Blowfish Malibu | 0 | 0 |
Derivative financial instruments, net | (103) | |
Fair Value, Inputs, Level 3 | ||
Fair Value Measurements - Assets and Liabilities Measured on a Recurring Basis | ||
Cash equivalents - money market funds | 0 | 0 |
Non-qualified deferred compensation plan assets | 0 | 0 |
Non-qualified deferred compensation plan liabilities | 0 | 0 |
Deferred compensation plan liabilities for non-employee directors | 0 | 0 |
Restricted stock units for non-employee directors | 0 | 0 |
Mandatory purchase obligation - Blowfish Malibu | $ (39,134) | (15,200) |
Derivative financial instruments, net | $ 0 |
FAIR VALUE MEASUREMENTS - Impai
FAIR VALUE MEASUREMENTS - Impairment Charges (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Fair Value Measurements - Assets and Liabilities Measured on a Recurring Basis | |||
Total long-lived asset impairment charges | $ 56,343 | $ 5,867 | $ 3,665 |
Selling and Administrative Expenses | |||
Fair Value Measurements - Assets and Liabilities Measured on a Recurring Basis | |||
Total long-lived asset impairment charges | 1,000 | ||
Famous Footwear | |||
Fair Value Measurements - Assets and Liabilities Measured on a Recurring Basis | |||
Total long-lived asset impairment charges | 14,900 | 1,980 | 800 |
Brand Portfolio | |||
Fair Value Measurements - Assets and Liabilities Measured on a Recurring Basis | |||
Total long-lived asset impairment charges | $ 41,443 | $ 3,887 | $ 2,865 |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Jan. 30, 2021 | Feb. 01, 2020 |
Reported Value Measurement | ||
Fair Value of Financial Instruments | ||
Borrowings under revolving credit agreement | $ 250,000 | $ 275,000 |
Long-term debt | 200,000 | 200,000 |
Total debt | 450,000 | 475,000 |
Estimate of Fair Value Measurement | ||
Fair Value of Financial Instruments | ||
Borrowings under revolving credit agreement | 250,000 | 275,000 |
Long-term debt | 201,000 | 205,000 |
Total debt | $ 451,000 | $ 480,000 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - USD ($) $ in Thousands | 12 Months Ended | 101 Months Ended | ||||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 01, 2020 | Sep. 02, 2019 | Dec. 14, 2018 | |
Deferred Tax Assets, Valuation Allowance | $ 49,981 | $ 4,809 | $ 4,809 | |||
Stock Repurchase Program, 2018 | ||||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 2,500,000 | |||||
Stock Repurchased During Period, Shares | 553,611 | |||||
Stock Repurchase Program, 2019 | ||||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 5,000,000 | 5,000,000 | ||||
Stock Repurchased During Period, Shares | 2,348,511 | |||||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 2,651,489 | |||||
Stock Repurchase Program, 2011 | ||||||
Stock Repurchased During Period, Shares | 2,500,000 | |||||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 0 | |||||
Stock Repurchase Programs, 2011 and 2018 | ||||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 2,500,000 | |||||
Repurchases Related To Employee Share Based Awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 160,101 | 100,728 | 145,357 |
SHAREHOLDERS' EQUITY - Accumula
SHAREHOLDERS' EQUITY - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 02, 2019 | |
Balance | $ (31,843) | |||
Other comprehensive income (loss), net of tax | 22,875 | $ (207) | $ (16,482) | |
Balance | (9,136) | (31,843) | ||
Accumulated Foreign Currency Adjustment Attributable to Parent | ||||
Balance | (580) | 62 | $ 1,235 | |
Other comprehensive (loss) income before reclassifications | 469 | (642) | (1,173) | |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | |
Tax (benefit) provision | 0 | 0 | 0 | |
Net reclassifications | 0 | 0 | 0 | |
Other comprehensive income (loss), net of tax | 469 | (642) | (1,173) | |
Balance | (111) | (580) | 62 | 62 |
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent | ||||
Balance | (31,171) | (31,055) | (17,172) | |
Other comprehensive (loss) income before reclassifications | 20,351 | (3,523) | (15,927) | |
Amounts reclassified from accumulated other comprehensive loss | 2,418 | 4,590 | 2,754 | |
Tax (benefit) provision | (623) | (1,183) | (710) | |
Net reclassifications | 1,795 | 3,407 | 2,044 | |
Other comprehensive income (loss), net of tax | 22,146 | (116) | (13,883) | |
Balance | (9,025) | (31,171) | (31,055) | (31,055) |
AOCI, Derivative Qualifying as Hedge, Excluded Component, Parent | ||||
Balance | (92) | (608) | 767 | |
Other comprehensive (loss) income before reclassifications | 87 | 315 | (1,497) | |
Amounts reclassified from accumulated other comprehensive loss | 6 | 256 | 154 | |
Tax (benefit) provision | (1) | (55) | (32) | |
Net reclassifications | 5 | 201 | 122 | |
Other comprehensive income (loss), net of tax | 92 | 516 | (1,375) | |
Balance | 0 | (92) | (608) | (608) |
Accumulated Other Comprehensive (Loss) Income | ||||
Balance | (31,843) | (31,601) | (15,170) | |
Other comprehensive (loss) income before reclassifications | 20,907 | (3,850) | (18,597) | |
Amounts reclassified from accumulated other comprehensive loss | 2,424 | 4,846 | 2,908 | |
Tax (benefit) provision | (624) | (1,238) | (742) | |
Net reclassifications | 1,800 | 3,608 | 2,166 | |
Other comprehensive income (loss), net of tax | 22,707 | (242) | (16,431) | |
Balance | $ (9,136) | $ (31,843) | $ (31,601) | $ (31,601) |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) - USD ($) | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Share-based Compensation | |||
Share-based Payment Arrangement, Expense | $ 8,097,000 | $ 10,246,000 | $ 13,805,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 471,569 | 214,435 | 350,522 |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Payment Arrangement, Amount | $ 1,100,000 | $ 100,000 | $ 300,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares, Ending Balance | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | 0 |
Dividends | $ 0 | ||
Maximum | |||
Share-based Compensation | |||
Granted, total number of restricted shares (in shares) | 175,500 | 360,000 | 310,000 |
Restricted Stock | |||
Share-based Compensation | |||
Share-based Payment Arrangement, Expense | $ 6,840,000 | $ 9,597,000 | $ 10,925,000 |
Granted, total number of restricted shares (in shares) | 707,931 | 463,234 | 427,083 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 4,400,000 | $ 6,700,000 | $ 8,200,000 |
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | $ 5,900,000 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 4 months 24 days | ||
Restricted Stock | Share-based Compensation Award, Cliff-vesting, Tranche One | |||
Share-based Compensation | |||
Granted, total number of restricted shares (in shares) | 12,748 | 12,914 | 3,642 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | 1 year | 1 year |
Restricted Stock | Share-based Compensation Award, Graded-vesting | |||
Share-based Compensation | |||
Granted, total number of restricted shares (in shares) | 695,183 | 450,320 | 413,941 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | 3 years | 3 years |
Restricted Stock | Share-based Compensation Award, Graded-vesting Tranche One | |||
Share-based Compensation | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 2 years | 2 years | 2 years |
Share-based Compensation Arrangement by Share-based Payment Award, Award Performance Percentage Earned | 50.00% | 50.00% | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | ||
Restricted Stock | Share-based Compensation Award, Graded-vesting Tranche Two | |||
Share-based Compensation | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | 3 years | 3 years |
Share-based Compensation Arrangement by Share-based Payment Award, Award Performance Percentage Earned | 50.00% | 50.00% | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | ||
Restricted Stock | Share-based Compensation Award, Cliff-vesting, Tranche Three | |||
Share-based Compensation | |||
Granted, total number of restricted shares (in shares) | 9,500 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||
Performance Shares | |||
Share-based Compensation | |||
Share-based Payment Arrangement, Expense | $ 147,000 | $ (502,000) | $ 1,741,000 |
Granted, total number of restricted shares (in shares) | 87,750 | 180,000 | 155,000 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years | ||
Performance Shares | Minimum | |||
Share-based Compensation | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Performance Percentage Earned | 0.00% | ||
Performance Shares | Maximum | |||
Share-based Compensation | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Performance Percentage Earned | 200.00% | ||
Share-based Payment Arrangement, Option | |||
Share-based Compensation | |||
Share-based Payment Arrangement, Expense | $ 1,000 | $ 22,000 | $ 48,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation | |||
Share-based Payment Arrangement, Expense | $ 1,109,000 | 1,129,000 | 1,091,000 |
Granted, total number of restricted shares (in shares) | 105,421 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 1,125,000 | $ 589,000 | $ 1,340,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number, Ending Balance | 524,018 | 491,984 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Dividend Equivalent | 18,420 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Dividend Equivalents | 14,983 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Nonvested, Dividend Equivalent | 3,437 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding | $ 7,900,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Vested | 6,300,000 | ||
Deferred Compensation Share-based Arrangements, Liability, Current and Noncurrent | $ 1,700,000 | $ 2,600,000 | |
Restricted Stock Units (RSUs) Payable in Stock | |||
Share-based Compensation | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number, Ending Balance | 388,752 | ||
Restricted Stock Units (RSUs) Payable in Cash | |||
Share-based Compensation | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number, Ending Balance | 135,266 |
SHARE-BASED COMPENSATION - Shar
SHARE-BASED COMPENSATION - Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Share-based Compensation | |||
Total share-based compensation expense | $ 8,097 | $ 10,246 | $ 13,805 |
Restricted Stock | |||
Share-based Compensation | |||
Total share-based compensation expense | 6,840 | 9,597 | 10,925 |
Performance Shares | |||
Share-based Compensation | |||
Total share-based compensation expense | 147 | (502) | 1,741 |
Restricted Stock Units (RSUs) | |||
Share-based Compensation | |||
Total share-based compensation expense | 1,109 | 1,129 | 1,091 |
Share-based Payment Arrangement, Option | |||
Share-based Compensation | |||
Total share-based compensation expense | $ 1 | $ 22 | $ 48 |
SHARE-BASED COMPENSATION - Rest
SHARE-BASED COMPENSATION - Restricted Stock Activity (Details) - $ / shares | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Share-based Compensation | |||
Nonvested, weighted-average grant date fair value (in dollars per share) | $ 27.16 | $ 28.49 | $ 27.45 |
Granted (in dollars per share) | 7.47 | 23.42 | 31.84 |
Vested (in dollars per share) | 26.90 | 26.64 | 30.12 |
Forfeited (in dollars per share) | 18.64 | 28.33 | 26.83 |
Nonvested, weighted-average grant date fair value (in dollars per share) | $ 23.33 | $ 27.16 | $ 28.49 |
Restricted Stock | |||
Share-based Compensation | |||
Nonvested, total number of restricted shares (in shares) | 1,271,795 | 1,249,223 | 1,174,801 |
Granted, total number of restricted shares (in shares) | 707,931 | 463,234 | 427,083 |
Vested, total number of restricted shares (in shares) | (430,837) | (222,562) | (291,061) |
Forfeited, total number of restricted shares (in shares) | (151,662) | (218,100) | (61,600) |
Nonvested, total number of restricted shares (in shares) | 1,397,227 | 1,271,795 | 1,249,223 |
Nonvested, weighted-average grant date fair value (in dollars per share) | $ 26.77 | $ 29.17 | $ 27.92 |
Granted (in dollars per share) | 6.99 | 22.93 | 31.88 |
Vested (in dollars per share) | 28.27 | 30.26 | 28.18 |
Forfeited (in dollars per share) | 22.19 | 28.83 | 28.77 |
Nonvested, weighted-average grant date fair value (in dollars per share) | $ 16.74 | $ 26.77 | $ 29.17 |
SHARE-BASED COMPENSATION - Perf
SHARE-BASED COMPENSATION - Performance Shares Award Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Share-based Compensation | |||
Nonvested, weighted-average grant date fair value (in dollars per share) | $ 27.16 | $ 28.49 | $ 27.45 |
Granted, weighted-average grant date fair value (in dollars per share) | 7.47 | 23.42 | 31.84 |
Vested, weighted-average grant date fair value (in dollars per share) | 26.90 | 26.64 | 30.12 |
Forfeited, weighted-average grant date fair value (in dollars per share) | 18.64 | 28.33 | 26.83 |
Nonvested, weighted-average grant date fair value (in dollars per share) | $ 23.33 | $ 27.16 | $ 28.49 |
Maximum | |||
Share-based Compensation | |||
Nonvested, total number of restricted shares (in shares) | 952,000 | 915,666 | 799,254 |
Granted, total number of restricted shares (in shares) | 175,500 | 360,000 | 310,000 |
Vested, total number of restricted shares (in shares) | (306,000) | (299,666) | (161,254) |
Forfeited, total number of restricted shares (in shares) | (50,000) | (24,000) | (32,334) |
Nonvested, total number of restricted shares (in shares) | 771,500 | 952,000 | 915,666 |
Performance Shares | |||
Share-based Compensation | |||
Nonvested, total number of restricted shares (in shares) | 476,000 | 457,833 | 399,627 |
Granted, total number of restricted shares (in shares) | 87,750 | 180,000 | 155,000 |
Vested, total number of restricted shares (in shares) | (153,000) | (149,833) | (80,627) |
Forfeited, total number of restricted shares (in shares) | (25,000) | (12,000) | (16,167) |
Nonvested, total number of restricted shares (in shares) | 385,750 | 476,000 | 457,833 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 1 | ||
us-gaap_EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedPeriodForRecognition1 | 2 years |
SHARE-BASED COMPENSATION - Stoc
SHARE-BASED COMPENSATION - Stock Option Activity (Details) | 12 Months Ended |
Jan. 30, 2021$ / sharesshares | |
SHARE-BASED COMPENSATION | |
Outstanding, total number of stock options (in shares) | shares | 35,667 |
Outstanding, weighted-average grant date fair value (in dollars per share) | $ / shares | $ 19.70 |
Forfeited, total number of stock options (in shares) | shares | (9,000) |
Forfeited, weighted-average grant date fair value (in dollars per share) | $ / shares | $ 9.89 |
Canceled or expired, total number of stock options (in shares) | shares | (2,000) |
Canceled or expired, weighted-average grant date fair value (in dollars per share) | $ / shares | $ 13.99 |
Outstanding, total number of stock options (in shares) | shares | 24,667 |
Outstanding, weighted-average grant date fair value (in dollars per share) | $ / shares | $ 23.74 |
Exercisable, total number of stock options (in shares) | shares | 24,667 |
Exercisable, weighted-average grant date fair value (in dollars per share) | $ / shares | $ 23.74 |
SHARE-BASED COMPENSATION - Re_2
SHARE-BASED COMPENSATION - Restricted Stock Unit Activity (Details) - $ / shares | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Share-based Compensation | |||
Nonvested, weighted-average grant date fair value (in dollars per share) | $ 27.16 | $ 28.49 | $ 27.45 |
Granted, Weighted-Average Grant Date Fair Value (in dollars per share) | 7.47 | 23.42 | 31.84 |
Vested, Weighted-Average Grant Date Fair Value (in dollars per share) | 26.90 | 26.64 | 30.12 |
Nonvested, weighted-average grant date fair value (in dollars per share) | $ 23.33 | $ 27.16 | $ 28.49 |
Restricted Stock Units (RSUs) | |||
Share-based Compensation | |||
Number of Vested RSUs (in shares) | 415,157 | ||
Nonvested, total number of restricted shares (in shares) | 76,827 | ||
Total Number of RSUs (in shares) | 491,984 | ||
Total Number of RSUs Accrued (in shares) | 466,375 | ||
Nonvested, weighted-average grant date fair value (in dollars per share) | $ 17.66 | ||
Granted, Number of Vested RSUs (in shares) | 14,983 | ||
Granted, Number of Nonvested RSUs (in shares) | 105,421 | ||
Granted, Total Number of RSUs (in shares) | 120,404 | ||
Granted, Total Number of RSUs Accrued (in shares) | 86,408 | ||
Granted, Weighted-Average Grant Date Fair Value (in dollars per share) | $ 10.50 | ||
Vested, Number of Vested RSUs (in shares) | 74,464 | ||
Vested, Total Number of RSUs Accrued (in shares) | 23,676 | ||
Vested, Weighted-Average Grant Date Fair Value (in dollars per share) | $ 18.83 | ||
Settled, Number of Vested RSUs (in shares) | (88,370) | ||
Settled, Weighted-Average Grant Date Fair Value (in dollars per share) | $ 9.52 | ||
Number of Vested RSUs (in shares) | 416,234 | 415,157 | |
Nonvested, total number of restricted shares (in shares) | 107,784 | 76,827 | |
Total Number of RSUs (in shares) | 524,018 | 491,984 | |
Total Number of RSUs Accrued (in shares) | 488,089 | 466,375 | |
Nonvested, weighted-average grant date fair value (in dollars per share) | $ 9.85 | $ 17.66 |
SHARE-BASED COMPENSATION - RSU
SHARE-BASED COMPENSATION - RSU Granted, Vested and Settled (Details) - Restricted Stock Units (RSUs) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Share-based Compensation | |||
Weighted-average grant date fair value of RSUs granted (1) (in dollars per share) | $ 10.12 | $ 19.59 | $ 34.23 |
Fair value of RSUs vested | $ 1,125 | $ 589 | $ 1,340 |
RSUs settled (in shares) | 88,370 | 4,574 | 5,914 |
SHARE-BASED COMPENSATION - RS_2
SHARE-BASED COMPENSATION - RSU Compensation Expense and the Related Income Tax Benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
SHARE-BASED COMPENSATION | |||
Compensation (income) expense | $ (613) | $ (1,756) | $ 287 |
Income tax provision (benefit) | 158 | 452 | (74) |
Compensation (income) expense, net of income tax provision (benefit) | $ (455) | $ (1,304) | $ 213 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - Redfield Site $ in Millions | 12 Months Ended |
Jan. 30, 2021USD ($) | |
Commitments and Contingencies | |
Cumulative Environmental Remediation Expense | $ 31.8 |
Environmental Exit Costs, Assets Previously Disposed, Liability for Remediation | 9.8 |
Reserve For Anticipated Future Remediation Activities For Off Site Remediation | 5 |
Reserve For Anticipated Future Remediation Activities For On Site Remediation | $ 4.8 |
Accrual for Environmental Loss Contingencies, Discount Rate | 4.80% |
Accrual for Environmental Loss Contingencies, Gross, Total | $ 13.5 |
Accrual for Environmental Loss Contingencies, Undiscounted, Next Twelve Months | 0.4 |
Accrual for Environmental Loss Contingencies, Undiscounted, Second Year | 0.1 |
Accrual for Environmental Loss Contingencies, Undiscounted, Third Year | 0.1 |
Accrual for Environmental Loss Contingencies, Undiscounted, Fourth Year | 0.1 |
Accrual for Environmental Loss Contingencies, Undiscounted, Fifth Year | 0.1 |
Accrual for Environmental Loss Contingencies, Undiscounted, after Fifth Year | 12.7 |
Other Noncurrent Liabilities | |
Commitments and Contingencies | |
Environmental Exit Costs, Assets Previously Disposed, Liability for Remediation | 8.8 |
Other Accrued Expenses | |
Commitments and Contingencies | |
Environmental Exit Costs, Assets Previously Disposed, Liability for Remediation | $ 1 |
SCHEDULE II - VALUATION AND Q_2
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Balance at Beginning of Period | $ 26,200 | ||
Balance at End of Period | 17,043 | $ 26,200 | |
SEC Schedule, 12-09, Allowance, Credit Loss | |||
Balance at Beginning of Period | 1,813 | 3,050 | $ 2,045 |
Charged to Costs and Expenses | 10,575 | 773 | 518 |
Charged to Other Accounts | 2,521 | 0 | 876 |
Deductions | (19) | 2,010 | 389 |
Balance at End of Period | 14,928 | 1,813 | 3,050 |
Customer Allowance | |||
Balance at Beginning of Period | 25,816 | 24,750 | 24,302 |
Charged to Costs and Expenses | 20,355 | 62,737 | 54,161 |
Charged to Other Accounts | 0 | 0 | 713 |
Deductions | 31,020 | 61,671 | 54,426 |
Balance at End of Period | 15,151 | 25,816 | 24,750 |
Customer Discounts | |||
Balance at Beginning of Period | 1,198 | 1,198 | 751 |
Charged to Costs and Expenses | 11,692 | 12,046 | 5,545 |
Charged to Other Accounts | 0 | 0 | 268 |
Deductions | 10,998 | 12,046 | 5,366 |
Balance at End of Period | 1,892 | 1,198 | 1,198 |
SEC Schedule, 12-09, Reserve, Inventory | |||
Balance at Beginning of Period | 20,610 | 14,401 | 14,254 |
Charged to Costs and Expenses | 63,543 | 45,489 | 40,670 |
Charged to Other Accounts | 0 | 0 | 277 |
Deductions | 51,525 | 39,280 | 40,800 |
Balance at End of Period | 32,628 | 20,610 | 14,401 |
SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset | |||
Balance at Beginning of Period | 4,809 | 4,199 | 5,763 |
Charged to Costs and Expenses | 45,434 | 873 | 0 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 262 | 263 | 1,564 |
Balance at End of Period | $ 49,981 | $ 4,809 | $ 4,199 |