Assets Held For Sale

3 Months Ended

May 04, 2013

Assets Held For Sale [Abstract]

Assets Held For Sale

Note 4 Assets Held For Sale

As part of its portfolio realignment efforts, the Company entered into an agreement to sell certainof its supply chain and sourcing assets (“Sale Agreement”) on April 30, 2013 for $9.0 million, $1.5 million in cash and a $7.5 million promissory note, subject to working capital adjustments. The sale closed during the second quarter of 2013. The promissory note will be paid in installments over two years with the first payment of $3.0 million due no later than 45 days from the closing date with the remaining balance payable in eightquarterly payments of $562,500 plus accrued interest of 5%, compounded monthly, starting no later than three months after the closing date. As part of the Sale Agreement, the Company agreed to purchase a minimum of four million pairs of shoes each year for the next two years at market pricing, which can be fulfilled from any of the facilities owned by the purchaser, many of which the Company has historically used for sourcing. The promissory note and purchase commitment constitute significant continuing involvement, therefore, the supply chain and sourcing assets were not classified as discontinued operations.

The Company classified the related assets and liabilities of the supply chain and sourcing assets as held for sale as of May 4, 2013 on the condensed consolidated balance sheet and recognized an impairment loss of $4.7 million ($4.7 million after-tax, $0.11 per diluted share) representing the fair value less costs to sell compared to the net assets.  This impairment charge is reflected in the condensed consolidated statement of earnings as impairment of assets held for sale and as a reduction of current assets – held for sale in the condensed consolidated balance sheet. The financial results of the supply chain and sourcing assets are included in the Wholesale Operations segment as continuing operations.

The detail of assets and liabilities reported as held for sale in the condensed consolidated balance sheet at May 4, 2013 are as follows:

	May 4,
($ thousands)		2013
Assets Held For Sale
Current assets
Cash and cash equivalents	$	3,143
Receivables, net		113
Inventories, net		6,727
Prepaid expenses and other current assets		1,092
Total current assets		11,075
Other assets		196
Property and equipment, net		1,225
Total assets	$	12,496
Liabilities Held For Sale
Current liabilities
Trade accounts payable	$	2,558
Other accrued expenses		2,783
Total current liabilities		5,341
Other liabilities		(35)
Total liabilities	$	5,306