Subsidiary Guarantors of Senior Notes - Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jul. 28, 2012

Condensed Consolidating Statements of Earnings

CONDENSED CONSOLIDATING STATEMENT OF EARNINGS

(dollars in millions)

	13 Weeks Ended July 28, 2012
	Parent Company			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	747.4		$	423.8		$	(285.2	)	$	886.0
Cost of sales		—			516.5			354.2			(279.8	)		590.9
Gross margin		—			230.9			69.6			(5.4	)		295.1
Selling, general and administrative expenses		1.3			235.1			42.9			(5.4	)		273.9
Operating (loss) profit		(1.3	)		(4.2	)		26.7			—			21.2
Interest expense		11.7			5.1			0.1			(9.4	)		7.5
Interest income		—			(9.0	)		(0.6	)		9.4			(0.2	)
Equity in earnings of subsidiaries		(22.7	)		(24.0	)		—			46.7			—
Earnings before income taxes		9.7			23.7			27.2			(46.7	)		13.9
Provision for income taxes		—			1.0			1.4			—			2.4
Net earnings		9.7			22.7			25.8			(46.7	)		11.5
Net earnings attributable to noncontrolling interests		—			—			(1.8	)		—			(1.8	)
Net earnings attributable to Collective Brands, Inc.	$	9.7		$	22.7		$	24.0		$	(46.7	)	$	9.7

	26 Weeks Ended July 28, 2012
	Parent Company			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	1,535.3		$	786.5		$	(523.7	)	$	1,798.1
Cost of sales		—			1,027.9			663.1			(513.1	)		1,177.9
Gross margin		—			507.4			123.4			(10.6	)		620.2
Selling, general and administrative expenses		2.5			474.6			83.3			(10.6	)		549.8
Operating (loss) profit		(2.5	)		32.8			40.1			—			70.4
Interest expense		23.4			11.0			0.2			(18.8	)		15.8
Interest income		—			(18.0	)		(1.1	)		18.8			(0.3	)
Equity in earnings of subsidiaries		(68.8	)		(34.7	)		—			103.5			—
Earnings before income taxes		42.9			74.5			41.0			(103.5	)		54.9
Provision for income taxes		—			5.7			3.7			—			9.4
Net earnings		42.9			68.8			37.3			(103.5	)		45.5
Net earnings attributable to noncontrolling interests		—			—			(2.6	)		—			(2.6	)
Net earnings attributable to Collective Brands, Inc.	$	42.9		$	68.8		$	34.7		$	(103.5	)	$	42.9

	13 Weeks Ended July 28, 2012
	Parent Company			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
Comprehensive income:
Net earnings	$	9.7		$	22.7		$	25.8		$	(46.7	)	$	11.5
Other comprehensive income:
Translation adjustments		—			—			(3.3	)		—			(3.3	)
Change in fair value of derivatives		—			0.3			—			—			0.3
Income tax impact of change in fair value of derivatives		—			(0.1	)		—			—			(0.1	)
Change in unrecognized pension benefits		—			1.5			—			—			1.5
Equity in other comprehensive income of subsidiaries		(1.5	)		(3.2	)		—			4.7			—
Other comprehensive loss, net		(1.5	)		(1.5	)		(3.3	)		4.7			(1.6	)
Comprehensive income		8.2			21.2			22.5			(42.0	)		9.9
Comprehensive loss attributable to noncontrolling interests		—			—			(1.7	)		—			(1.7	)
Comprehensive income attributable to Collective Brands, Inc.	$	8.2		$	21.2		$	20.8		$	(42.0	)	$	8.2

	26 Weeks Ended July 28, 2012
	Parent Company		Guarantor Subsidiaries		Non-guarantor Subsidiaries			Eliminations			Consolidated
Comprehensive income:
Net earnings	$	42.9	$	68.8	$	37.3		$	(103.5	)	$	45.5
Other comprehensive income:
Translation adjustments		—		—		0.8			—			0.8
Change in fair value of derivatives		—		0.9		—			—			0.9
Change in unrecognized pension benefits		—		3.2		—			—			3.2
Equity in other comprehensive income of subsidiaries		4.4		0.3		—			(4.7	)		—
Other comprehensive income, net		4.4		4.4		0.8			(4.7	)		4.9
Comprehensive income		47.3		73.2		38.1			(108.2	)		50.4
Comprehensive loss attributable to noncontrolling interests		—		—		(3.1	)		—			(3.1	)
Comprehensive income attributable to Collective Brands, Inc.	$	47.3	$	73.2	$	35.0		$	(108.2	)	$	47.3

	Parent Company			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	720.6		$	375.3		$	(213.5	)	$	882.4
Cost of sales		—			565.3			324.4			(215.8	)		673.9
Gross margin		—			155.3			50.9			2.3			208.5
Selling, general and administrative expenses		1.0			235.5			22.1			2.3			260.9
Impairment of goodwill		—			10.0			—			—			10.0
Operating (loss) profit		(1.0	)		(90.2	)		28.8			—			(62.4	)
Interest expense		12.8			6.1			0.2			(9.1	)		10.0
Interest income		—			(9.1	)		(0.1	)		9.1			(0.1	)
Equity in earnings of subsidiaries		23.6			(17.7	)		—			(5.9	)		—
(Loss) earnings before income taxes		(37.4	)		(69.5	)		28.7			5.9			(72.3	)
(Benefit) provision for income taxes		(2.4	)		(45.9	)		9.3			—			(39.0	)
Net (loss) earnings		(35.0	)		(23.6	)		19.4			5.9			(33.3	)
Net earnings attributable to noncontrolling interests		—			—			(1.7	)		—			(1.7	)
Net (loss) earnings attributable to Collective Brands, Inc.	$	(35.0	)	$	(23.6	)	$	17.7		$	5.9		$	(35.0	)

	26 Weeks Ended July 30, 2011
	Parent Company			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	1,493.2		$	763.9		$	(505.7	)	$	1,751.4
Cost of sales		—			1,088.0			627.2			(482.2	)		1,233.0
Gross margin		—			405.2			136.7			(23.5	)		518.4
Selling, general and administrative expenses		2.0			462.8			87.1			(23.5	)		528.4
Impairment of goodwill		—			10.0			—			—			10.0
Operating (loss) profit		(2.0	)		(67.6	)		49.6			—			(20.0	)
Interest expense		25.6			13.2			0.2			(18.1	)		20.9
Interest income		—			(18.2	)		(0.1	)		18.1			(0.2	)
Equity in earnings of subsidiaries		(11.7	)		(33.8	)		—			45.5			—
(Loss) earnings before income taxes		(15.9	)		(28.8	)		49.5			(45.5	)		(40.7	)
(Benefit) provision for income taxes		(7.3	)		(40.5	)		12.2			—			(35.6	)
Net (loss) earnings		(8.6	)		11.7			37.3			(45.5	)		(5.1	)
Net earnings attributable to noncontrolling interests		—			—			(3.5	)		—			(3.5	)
Net (loss) earnings attributable to Collective Brands, Inc.	$	(8.6	)	$	11.7		$	33.8		$	(45.5	)	$	(8.6	)

Condensed Consolidating Statement Of Comprehensive Income

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

(dollars in millions)

	13 Weeks Ended July 28, 2012
	Parent Company			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
Comprehensive income:
Net earnings	$	9.7		$	22.7		$	25.8		$	(46.7	)	$	11.5
Other comprehensive income:
Translation adjustments		—			—			(3.3	)		—			(3.3	)
Change in fair value of derivatives		—			0.3			—			—			0.3
Income tax impact of change in fair value of derivatives		—			(0.1	)		—			—			(0.1	)
Change in unrecognized pension benefits		—			1.5			—			—			1.5
Equity in other comprehensive income of subsidiaries		(1.5	)		(3.2	)		—			4.7			—
Other comprehensive loss, net		(1.5	)		(1.5	)		(3.3	)		4.7			(1.6	)
Comprehensive income		8.2			21.2			22.5			(42.0	)		9.9
Comprehensive loss attributable to noncontrolling interests		—			—			(1.7	)		—			(1.7	)
Comprehensive income attributable to Collective Brands, Inc.	$	8.2		$	21.2		$	20.8		$	(42.0	)	$	8.2

	26 Weeks Ended July 28, 2012
	Parent Company		Guarantor Subsidiaries		Non-guarantor Subsidiaries			Eliminations			Consolidated
Comprehensive income:
Net earnings	$	42.9	$	68.8	$	37.3		$	(103.5	)	$	45.5
Other comprehensive income:
Translation adjustments		—		—		0.8			—			0.8
Change in fair value of derivatives		—		0.9		—			—			0.9
Change in unrecognized pension benefits		—		3.2		—			—			3.2
Equity in other comprehensive income of subsidiaries		4.4		0.3		—			(4.7	)		—
Other comprehensive income, net		4.4		4.4		0.8			(4.7	)		4.9
Comprehensive income		47.3		73.2		38.1			(108.2	)		50.4
Comprehensive loss attributable to noncontrolling interests		—		—		(3.1	)		—			(3.1	)
Comprehensive income attributable to Collective Brands, Inc.	$	47.3	$	73.2	$	35.0		$	(108.2	)	$	47.3

CONDENSED CONSOLIDATING STATEMENT OF (LOSS) EARNINGS

(dollars in millions)

	13 Weeks Ended July 30, 2011
	Parent Company			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	720.6		$	375.3		$	(213.5	)	$	882.4
Cost of sales		—			565.3			324.4			(215.8	)		673.9
Gross margin		—			155.3			50.9			2.3			208.5
Selling, general and administrative expenses		1.0			235.5			22.1			2.3			260.9
Impairment of goodwill		—			10.0			—			—			10.0
Operating (loss) profit		(1.0	)		(90.2	)		28.8			—			(62.4	)
Interest expense		12.8			6.1			0.2			(9.1	)		10.0
Interest income		—			(9.1	)		(0.1	)		9.1			(0.1	)
Equity in earnings of subsidiaries		23.6			(17.7	)		—			(5.9	)		—
(Loss) earnings before income taxes		(37.4	)		(69.5	)		28.7			5.9			(72.3	)
(Benefit) provision for income taxes		(2.4	)		(45.9	)		9.3			—			(39.0	)
Net (loss) earnings		(35.0	)		(23.6	)		19.4			5.9			(33.3	)
Net earnings attributable to noncontrolling interests		—			—			(1.7	)		—			(1.7	)
Net (loss) earnings attributable to Collective Brands, Inc.	$	(35.0	)	$	(23.6	)	$	17.7		$	5.9		$	(35.0	)

	26 Weeks Ended July 30, 2011
	Parent Company			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	1,493.2		$	763.9		$	(505.7	)	$	1,751.4
Cost of sales		—			1,088.0			627.2			(482.2	)		1,233.0
Gross margin		—			405.2			136.7			(23.5	)		518.4
Selling, general and administrative expenses		2.0			462.8			87.1			(23.5	)		528.4
Impairment of goodwill		—			10.0			—			—			10.0
Operating (loss) profit		(2.0	)		(67.6	)		49.6			—			(20.0	)
Interest expense		25.6			13.2			0.2			(18.1	)		20.9
Interest income		—			(18.2	)		(0.1	)		18.1			(0.2	)
Equity in earnings of subsidiaries		(11.7	)		(33.8	)		—			45.5			—
(Loss) earnings before income taxes		(15.9	)		(28.8	)		49.5			(45.5	)		(40.7	)
(Benefit) provision for income taxes		(7.3	)		(40.5	)		12.2			—			(35.6	)
Net (loss) earnings		(8.6	)		11.7			37.3			(45.5	)		(5.1	)
Net earnings attributable to noncontrolling interests		—			—			(3.5	)		—			(3.5	)
Net (loss) earnings attributable to Collective Brands, Inc.	$	(8.6	)	$	11.7		$	33.8		$	(45.5	)	$	(8.6	)

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE (LOSS) INCOME

(dollars in millions)

	13 Weeks Ended July 30, 2011
	Parent Company			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations		Consolidated
Comprehensive (loss) income:
Net (loss) earnings	$	(35.0	)	$	(23.6	)	$	19.4		$	5.9	$	(33.3	)
Other comprehensive income:
Translation adjustments		—			—			(1.4	)		—		(1.4	)
Change in fair value of derivatives		—			2.6			—			—		2.6
Income tax impact of change in fair value of derivatives		—			(1.1	)		—			—		(1.1	)
Change in unrecognized pension benefits		—			1.7			—			—		1.7
Income tax impact of change in unrecognized pension benefits		—			(0.6	)		—			—		(0.6	)
Equity in other comprehensive income of subsidiaries		0.9			(1.7	)		—			0.8		—
Other Comprehensive income (loss), net		0.9			0.9			(1.4	)		0.8		1.2
Comprehensive (loss) income		(34.1	)		(22.7	)		18.0			6.7		(32.1	)
Comprehensive loss attributable to noncontrolling interests		—			—			(2.0	)		—		(2.0	)
Comprehensive (loss) income attributable to Collective Brands, Inc.	$	(34.1	)	$	(22.7	)	$	16.0		$	6.7	$	(34.1	)

	26 Weeks Ended July 30, 2011
	Parent Company			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
Comprehensive (loss) income:
Net (loss) earnings	$	(8.6	)	$	11.7		$	37.3		$	(45.5	)	$	(5.1	)
Other comprehensive income:
Translation adjustments		—			—			6.6			—			6.6
Change in fair value of derivatives		—			4.4			—			—			4.4
Income tax impact of change in fair value of derivatives		—			(1.7	)		—			—			(1.7	)
Change in unrecognized pension benefits		—			2.8			—			—			2.8
Income tax impact of change in unrecognized pension benefits		—			(0.9	)		—			—			(0.9	)
Equity in other comprehensive income of subsidiaries		10.6			6.0			—			(16.6	)		—
Other Comprehensive income (loss), net		10.6			10.6			6.6			(16.6	)		11.2
Comprehensive (loss) income		2.0			22.3			43.9			(62.1	)		6.1
Comprehensive loss attributable to noncontrolling interests		—			—			(4.1	)		—			(4.1	)
Comprehensive (loss) income attributable to Collective Brands, Inc.	$	2.0		$	22.3		$	39.8		$	(62.1	)	$	2.0

Condensed Consolidating Balance Sheet

CONDENSED CONSOLIDATING BALANCE SHEET

(dollars in millions)

	As of July 28, 2012
	Parent Company		Guarantor Subsidiaries		Non-guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	—	$	38.8	$	151.5	$	—		$	190.3
Accounts receivable, net		—		170.5		39.3		(20.8	)		189.0
Inventories		—		498.9		137.7		(12.2	)		624.4
Current deferred income taxes		—		—		6.7		—			6.7
Prepaid expenses		35.6		21.4		11.7		—			68.7
Other current assets		—		354.5		123.3		(456.3	)		21.5
Total current assets		35.6		1,084.1		470.2		(489.3	)		1,100.6
Property and equipment, net		—		283.7		64.6		—			348.3
Intangible assets, net		—		354.8		24.4		—			379.2
Goodwill		—		133.5		136.3		—			269.8
Deferred income taxes		—		—		12.8		—			12.8
Other assets		1,477.0		958.9		25.7		(2,433.4	)		28.2
Total Assets	$	1,512.6	$	2,815.0	$	734.0	$	(2,922.7	)	$	2,138.9
LIABILITIES AND EQUITY
Current Liabilities:
Current maturities of long-term debt	$	—	$	5.1	$	—	$	—		$	5.1
Other current liabilities		217.0		533.3		221.1		(489.3	)		482.1
Total current liabilities		217.0		538.4		221.1		(489.3	)		487.2
Long-term debt		587.6		501.6		7.8		(494.7	)		602.3
Deferred income taxes		—		119.8		0.9		—			120.7
Other liabilities		4.4		178.5		15.2		—			198.1
Commitments and contingencies
Equity:
Collective Brands, Inc. shareowners’ equity		703.6		1,476.7		462.0		(1,938.7	)		703.6
Noncontrolling interests		—		—		27.0		—			27.0
Total equity		703.6		1,476.7		489.0		(1,938.7	)		730.6
Total Liabilities and Equity	$	1,512.6	$	2,815.0	$	734.0	$	(2,922.7	)	$	2,138.9

CONDENSED CONSOLIDATING BALANCE SHEET

(dollars in millions)

	As of July 30, 2011
	Parent Company		Guarantor Subsidiaries		Non-guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	—	$	70.3	$	164.5	$	—		$	234.8
Accounts receivable, net		—		159.3		31.6		(19.1	)		171.8
Inventories		—		457.7		132.1		(4.8	)		585.0
Current deferred income taxes		—		22.1		14.4		—			36.5
Prepaid expenses		35.6		14.4		9.8		—			59.8
Other current assets		—		355.2		147.7		(482.6	)		20.3
Total current assets		35.6		1,079.0		500.1		(506.5	)		1,108.2
Property and equipment, net		—		312.9		70.5		—			383.4
Intangible assets, net		—		363.4		27.3		—			390.7
Goodwill		—		133.5		136.3		—			269.8
Deferred income taxes		—		—		6.8		—			6.8
Other assets		1,558.7		971.1		21.2		(2,511.6	)		39.4
Total Assets	$	1,594.3	$	2,859.9	$	762.2	$	(3,018.1	)	$	2,198.3
LIABILITIES AND EQUITY
Current Liabilities:
Current maturities of long-term debt	$	—	$	5.1	$	—	$	—		$	5.1
Other current liabilities		137.5		591.5		241.9		(506.5	)		464.4
Total current liabilities		137.5		596.6		241.9		(506.5	)		469.5
Long-term debt		637.1		501.7		36.4		(518.2	)		657.0
Deferred income taxes		—		37.0		3.6		—			40.6
Other liabilities		3.2		166.9		16.0		—			186.1
Commitments and contingencies
Equity:
Collective Brands, Inc. shareowners’ equity		816.5		1,557.7		435.7		(1,993.4	)		816.5
Noncontrolling interests		—		—		28.6		—			28.6
Total equity		816.5		1,557.7		464.3		(1,993.4	)		845.1
Total Liabilities and Equity	$	1,594.3	$	2,859.9	$	762.2	$	(3,018.1	)	$	2,198.3

CONDENSED CONSOLIDATING BALANCE SHEET

(dollars in millions)

	As of January 28, 2012
	Parent Company		Guarantor Subsidiaries		Non-guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	—	$	46.3	$	135.0	$	—		$	181.3
Accounts receivable, net		—		127.9		36.7		(18.6	)		146.0
Inventories		—		434.0		124.1		5.3			563.4
Current deferred income taxes		—		—		7.2		—			7.2
Prepaid expenses		35.6		16.3		9.6		—			61.5
Other current assets		—		356.0		160.3		(494.5	)		21.8
Total current assets		35.6		980.5		472.9		(507.8	)		981.2
Property and equipment, net		—		302.3		67.1		—			369.4
Intangible assets, net		—		358.7		26.0		—			384.7
Goodwill		—		133.5		136.3		—			269.8
Deferred income taxes		—		—		10.7		—			10.7
Other assets		1,409.9		979.5		25.7		(2,383.7	)		31.4
Total Assets	$	1,445.5	$	2,754.5	$	738.7	$	(2,891.5	)	$	2,047.2
LIABILITIES AND EQUITY
Current Liabilities:
Current maturities of long-term debt	$	—	$	5.1	$	—	$	—		$	5.1
Other current liabilities		209.7		532.2		205.3		(508.6	)		438.6
Total current liabilities		209.7		537.3		205.3		(508.6	)		443.7
Long-term debt		587.5		504.2		7.9		(494.8	)		604.8
Deferred income taxes		—		121.3		1.1		—			122.4
Other liabilities		3.5		183.2		16.1		—			202.8
Commitments and contingencies
Equity:
Collective Brands, Inc. shareowners’ equity		644.8		1,408.5		479.6		(1,888.1	)		644.8
Noncontrolling interests		—		—		28.7		—			28.7
Total equity		644.8		1,408.5		508.3		(1,888.1	)		673.5
Total Liabilities and Equity	$	1,445.5	$	2,754.5	$	738.7	$	(2,891.5	)	$	2,047.2

Condensed Consolidating Statement of Cash Flows

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(dollars in millions)

	26 Weeks Ended July 28, 2012
	Parent Company			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
Operating Activities:
Net earnings	$	42.9		$	68.8		$	37.3		$	(103.5	)	$	45.5
Adjustments for non-cash items included in net earnings		0.1			54.6			11.0			—			65.7
Changes in working capital		7.3			(107.3	)		31.9			0.8			(67.3	)
Other, net		(57.9	)		10.4			(54.5	)		102.7			0.7
Cash flow (used in) provided by operating activities		(7.6	)		26.5			25.7			—			44.6
Investing Activities:
Capital expenditures		—			(31.4	)		(9.3	)		—			(40.7	)
Cash flow used in investing activities		—			(31.4	)		(9.3	)		—			(40.7	)
Financing Activities:
Net (repayments) proceeds of debt or notes payable		—			(2.6	)		—			—			(2.6	)
Net issuances of common stock		7.6			—			—			—			7.6
Net distributions to noncontrolling interests		—			—			(4.8	)		—			(4.8	)
Cash flow provided by (used in) financing activities		7.6			(2.6	)		(4.8	)		—			0.2
Effect of exchange rate changes on cash		—			—			4.9			—			4.9
(Decrease) increase in cash and cash equivalents		—			(7.5	)		16.5			—			9.0
Cash and cash equivalents, beginning of year		—			46.3			135.0			—			181.3
Cash and cash equivalents, end of quarter	$	—		$	38.8		$	151.5		$	—		$	190.3

	26 Weeks Ended July 30, 2011
	Parent Company			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
Operating Activities:
Net (loss) earnings	$	(8.6	)	$	11.7		$	37.3		$	(45.5	)	$	(5.1	)
Adjustments for non-cash items included in net earnings		0.2			110.1			13.2			—			123.5
Changes in working capital		26.5			(97.1	)		(41.0	)		(6.7	)		(118.3	)
Other, net		(1.7	)		(41.3	)		(32.1	)		52.2			(22.9	)
Cash flow provided by (used in) operating activities		16.4			(16.6	)		(22.6	)		—			(22.8	)
Investing Activities:
Capital expenditures		—			(32.9	)		(9.4	)		—			(42.3	)
Cash flow used in investing activities		—			(32.9	)		(9.4	)		—			(42.3	)
Financing Activities:
Net repayments of debt or notes payable		—			(2.6	)		—			—			(2.6	)
Net purchases of common stock		(16.4	)		—			—			—			(16.4	)
Net distributions to noncontrolling interests		—			—			(7.0	)		—			(7.0	)
Cash flow used in financing activities		(16.4	)		(2.6	)		(7.0	)		—			(26.0	)
Effect of exchange rate changes on cash		—			—			1.8			—			1.8
Decrease in cash and cash equivalents		—			(52.1	)		(37.2	)		—			(89.3	)
Cash and cash equivalents, beginning of year		—			122.4			201.7			—			324.1
Cash and cash equivalents, end of quarter	$	—		$	70.3		$	164.5		$	—		$	234.8