Business Segment Information

9 Months Ended

Oct. 27, 2012

Business Segment Information [Abstract]

Business Segment Information

Note 6 Business Segment Information

Applicable business segment information is as follows for the periods ended October 27, 2012 and October 29, 2011:

		Famous		Wholesale		Specialty
($ thousands)		Footwear		Operations		Retail		Other		Total
Thirteen Weeks Ended October 27, 2012
External sales	$	436,812	$	232,555	$	62,802	$	–	$	732,169
Intersegment sales		505		59,714		–		–		60,219
Operating earnings (loss)		35,525		15,397		1,771		(11,570)		41,123
Operating segment assets		462,904		498,839		59,805		142,556		1,164,104
Thirteen Weeks Ended October 29, 2011
External sales	$	416,243	$	233,590	$	63,955	$	–	$	713,788
Intersegment sales		485		54,177		–		–		54,662
Operating earnings (loss)		28,374		9,558		53		(5,624)		32,361
Operating segment assets		474,617		573,235		62,502		117,404		1,227,758
Thirty-nine Weeks Ended October 27, 2012
External sales	$	1,134,237	$	650,724	$	172,928	$	–	$	1,957,889
Intersegment sales		1,529		167,231		–		–		168,760
Operating earnings (loss)		74,365		14,828		(7,551)		(30,539)		51,103
Thirty-nine Weeks Ended October 29, 2011
External sales	$	1,103,900	$	665,771	$	184,262	$	–	$	1,953,933
Intersegment sales		1,285		138,911		–		–		140,196
Operating earnings (loss)		54,651		18,502		(6,703)		(23,007)		43,443

The Other segment includes corporate assets, administrative expenses and other costs and recoveries, which are not allocated to the operating segments.

During the thirteen weeks ended October 27, 2012, operating earnings (loss) included portfolio realignment costs of $2.6 million. Of the $2.6 million, $1.7 million is included in the Wholesale Operations segment, $0.4 million is included in the Specialty Retail segment, $0.4 million is included in the Famous Footwear segment and $0.1 million is included in the Other segment. During the thirty-nine weeks ended October 27, 2012, operating earnings (loss) included portfolio realignment costs of $27.0 million, organizational change costs of $2.3 million and ASG integration-related costs of $0.7 million. Of the $27.0 million, $14.5 million is included in the Wholesale Operations segment, $7.7 million is included in the Famous Footwear segment, $3.9 million is included in the Specialty Retail segment and $0.9 million is included in the Other segment. The $2.3 million of organizational change costs are included in the Other segment. The $0.7 million of ASG integration-related costs are included in the Wholesale Operations segment.

During the thirteen weeks and thirty-nine weeks ended October 29, 2011, operating earnings of the Wholesale Operations segment included portfolio realignment costs of $4.5 million. For the thirty-nine weeks ended October 29, 2011, operating earnings of the Wholesale Operations segment included an increase in cost of goods sold related to the impact of the inventory fair value adjustment in connection with the acquisition of ASG of $3.9 million, which excludes the effect of TBMC.During the thirteen and thirty-nine weeks ended October 29, 2011, the operating loss of the Other segment included costs related to the Company’s acquisition and integration of ASG of $1.1 million and $3.5 million, respectively.

Following is a reconciliation of operating earnings to earnings before income taxes from continuing operations:

	Thirteen Weeks Ended				Thirty-nine Weeks Ended
	October 27,		October 29,		October 27,		October 29,
($ thousands)		2012		2011		2012		2011
Operating earnings	$	41,123	$	32,361	$	51,103	$	43,443
Interest expense		(5,513)		(6,685)		(17,428)		(19,903)
Loss on early extinguishment of debt		–		–		–		(1,003)
Interest income		76		98		236		248
Earnings before income taxes from continuing operations	$	35,686	$	25,774	$	33,911	$	22,785