

Note 16	Financial Information for the Company and its Subsidiaries

The Company issued senior notes, which are fully and unconditionally and jointly and severally guaranteed by all of its existing and future subsidiaries that are guarantors under its existing revolving credit facility agreement. The following table presents the consolidating financial information for each of Caleres, Inc. (“Parent”), the Guarantors, and subsidiaries of the Parent that are not Guarantors (the “Non-Guarantors”), together with consolidating eliminations, as of and for the periods indicated. The Guarantors are 100% owned by the Parent.

The condensed consolidating financial statements have been prepared using the equity method of accounting in accordance with the requirements for presentation of such information. Management believes that the information, presented in lieu of complete financial statements for each of the Guarantors, provides meaningful information to allow investors to determine the nature of the assets held by, and operations and cash flows of, each of the consolidated groups.



UNAUDITED CONDENSED CONSOLIDATING BALANCE SHEET
AS OF MAY 2, 2015
					Non-
($ thousands)	Parent		Guarantors		Guarantors		Eliminations			Total
Assets
Current assets
Cash and cash equivalents	$	8,528	$	413	$	57,389	$	—		$	66,330
Receivables, net	101,968		1,657		22,887		—			126,512
Inventories, net	95,948		396,642		5,923		—			498,513
Prepaid expenses and other current assets	18,820		24,335		4,149		(6,301		)	41,003
Intercompany receivable – current	1,082		432		15,800		(17,314		)	—
Total current assets	226,346		423,479		106,148		(23,615		)	732,358
Other assets	130,781		12,931		597		—			144,309
Goodwill and intangible assets, net	117,226		16,431		—		—			133,657
Property and equipment, net	34,186		117,144		2,020		—			153,350
Investment in subsidiaries	998,697		219,134		—		(1,217,831		)	—
Intercompany receivable – noncurrent	431,964		601,993		268,758		(1,302,715		)	—
Total assets	$	1,939,200	$	1,391,112	$	377,523	$	(2,544,161	)	$	1,163,674

Liabilities and Equity
Current liabilities
Trade accounts payable	$	8,381	$	141,613	$	22,122	$	—		$	172,116
Other accrued expenses	66,040		91,553		7,408		(6,301		)	158,700
Intercompany payable – current	2,034		237		15,043		(17,314		)	—
Total current liabilities	76,455		233,403		44,573		(23,615		)	330,816
Other liabilities
Long-term debt	199,244		—		—		—			199,244
Other liabilities	41,212		37,890		192		—			79,294
Intercompany payable – noncurrent	1,068,815		121,122		112,778		(1,302,715		)	—
Total other liabilities	1,309,271		159,012		112,970		(1,302,715		)	278,538
Equity
Caleres, Inc. shareholders’ equity	553,474		998,697		219,134		(1,217,831		)	553,474
Noncontrolling interests	—		—		846		—			846
Total equity	553,474		998,697		219,980		(1,217,831		)	554,320
Total liabilities and equity	$	1,939,200	$	1,391,112	$	377,523	$	(2,544,161	)	$	1,163,674



UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME
FOR THE THIRTEEN WEEKS ENDED MAY 2, 2015
							Non-
($ thousands)	Parent			Guarantors			Guarantors			Eliminations			Total
Net sales	$	192,351		$	391,793		$	43,462		$	(25,323	)	$	602,283
Cost of goods sold	137,594			206,772			31,773			(22,382		)	353,757
Gross profit	54,757			185,021			11,689			(2,941		)	248,526
Selling and administrative expenses	52,976			159,710			8,445			(2,941		)	218,190
Operating earnings	1,781			25,311			3,244			—			30,336
Interest expense	(4,462		)	(1		)	—			—			(4,463		)
Interest income	251			11			42			—			304
Intercompany interest income (expense)	3,678			(3,794		)	116			—			—
Earnings before income taxes	1,248			21,527			3,402			—			26,177
Income tax benefit (provision)	1,684			(7,848		)	(622		)	—			(6,786		)
Equity in earnings of subsidiaries, net of tax	16,329			2,650			—			(18,979		)	—
Net earnings	19,261			16,329			2,780			(18,979		)	19,391
Less: Net earnings attributable to noncontrolling interests	—			—			130			—			130
Net earnings attributable to Caleres, Inc.	$	19,261		$	16,329		$	2,650		$	(18,979	)	$	19,261

Comprehensive income	$	20,217		$	17,054		$	2,838		$	(19,758	)	$	20,351
Less: Comprehensive income attributable to noncontrolling interests	—			—			134			—			134
Comprehensive income attributable to Caleres, Inc.	$	20,217		$	17,054		$	2,704		$	(19,758	)	$	20,217



UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE THIRTEEN WEEKS ENDED MAY 2, 2015
							Non-
($ thousands)	Parent			Guarantors			Guarantors			Eliminations		Total
Net cash (used for) provided by operating activities	$	(5,418	)	$	18,086		$	9,246		$	—	$	21,914

Investing activities
Purchases of property and equipment	(2,435		)	(10,321		)	(149		)	—		(12,905		)
Capitalized software	(750		)	(205		)	—			—		(955		)
Intercompany investing	(151		)	151			—			—		—
Net cash used for investing activities	(3,336		)	(10,375		)	(149		)	—		(13,860		)

Financing activities
Borrowings under revolving credit agreement	86,000			—			—			—		86,000
Repayments under revolving credit agreement	(86,000		)	—			—			—		(86,000		)
Dividends paid	(3,073		)	—			—			—		(3,073		)
Acquisition of treasury stock	(4,921		)	—			—			—		(4,921		)
Issuance of common stock under share-based plans, net	(3,751		)	—			—			—		(3,751		)
Tax benefit related to share-based plans	2,401			—			—			—		2,401
Intercompany financing	12,735			(16,285		)	3,550			—		—
Net cash provided by (used for) financing activities	3,391			(16,285		)	3,550			—		(9,344		)
Effect of exchange rate changes on cash and cash equivalents	—			217			—			—		217
(Decrease) increase in cash and cash equivalents	(5,363		)	(8,357		)	12,647			—		(1,073		)
Cash and cash equivalents at beginning of period	13,891			8,770			44,742			—		67,403
Cash and cash equivalents at end of period	$	8,528		$	413		$	57,389		$	—	$	66,330



CONDENSED CONSOLIDATING BALANCE SHEET
AS OF JANUARY 31, 2015
					Non-
($ thousands)	Parent		Guarantors		Guarantors		Eliminations			Total
Assets
Current assets
Cash and cash equivalents	$	13,891	$	8,770	$	44,742	$	—		$	67,403
Receivables, net	89,030		5,398		42,218		—			136,646
Inventories, net	148,082		386,468		8,553		—			543,103
Prepaid expenses and other current assets	41,494		24,397		5,344		(27,491		)	43,744
Intercompany receivable – current	1,194		279		8,471		(9,944		)	—
Total current assets	293,691		425,312		109,328		(37,435		)	790,896
Other assets	127,879		13,104		603		—			141,586
Goodwill and intangible assets, net	117,792		16,795		—		—			134,587
Property and equipment, net	29,237		118,525		1,981		—			149,743
Investment in subsidiaries	982,640		200,946		—		(1,183,586		)	—
Intercompany receivable – noncurrent	459,774		581,594		264,673		(1,306,041		)	—
Total assets	$	2,011,013	$	1,356,276	$	376,585	$	(2,527,062	)	$	1,216,812

Liabilities and Equity
Current liabilities
Trade accounts payable	$	60,377	$	117,899	$	37,645	$	—		$	215,921
Other accrued expenses	106,682		94,108		7,863		(27,491		)	181,162
Intercompany payable – current	4,948		361		4,635		(9,944		)	—
Total current liabilities	172,007		212,368		50,143		(37,435		)	397,083
Other liabilities
Long-term debt	199,197		—		—		—			199,197
Other liabilities	41,847		36,869		194		—			78,910
Intercompany payable – noncurrent	1,057,052		124,399		124,590		(1,306,041		)	—
Total other liabilities	1,298,096		161,268		124,784		(1,306,041		)	278,107
Equity
Caleres, Inc. shareholders’ equity	540,910		982,640		200,946		(1,183,586		)	540,910
Noncontrolling interests	—		—		712		—			712
Total equity	540,910		982,640		201,658		(1,183,586		)	541,622
Total liabilities and equity	$	2,011,013	$	1,356,276	$	376,585	$	(2,527,062	)	$	1,216,812



UNAUDITED CONDENSED CONSOLIDATING BALANCE SHEET
AS OF MAY 3, 2014
					Non-
($ thousands)	Parent		Guarantors		Guarantors		Eliminations			Total
Assets
Current assets
Cash and cash equivalents	$	—	$	25,528	$	11,140	$	—		$	36,668
Receivables, net	83,713		1,412		20,621		—			105,746
Inventories, net	93,159		414,424		5,228		—			512,811
Prepaid expenses and other current assets	34,476		507		2,930		—			37,913
Intercompany receivable – current	981		368		10,655		(12,004		)	—
Total current assets	212,329		442,239		50,574		(12,004		)	693,138
Other assets	120,941		14,678		637		—			136,256
Goodwill and intangible assets, net	119,666		18,084		—		—			137,750
Property and equipment, net	27,303		112,630		1,885		—			141,818
Investment in subsidiaries	879,965		169,843		—		(1,049,808		)	—
Intercompany receivable – noncurrent	450,481		500,580		242,150		(1,193,211		)	—
Total assets	$	1,810,685	$	1,258,054	$	295,246	$	(2,255,023	)	$	1,108,962

Liabilities and Equity
Current liabilities
Trade accounts payable	$	48,509	$	123,656	$	23,538	$	—		$	195,703
Other accrued expenses	69,665		64,082		7,971		—			141,718
Intercompany payable – current	2,367		59		9,578		(12,004		)	—
Total current liabilities	120,541		187,797		41,087		(12,004		)	337,421
Other liabilities
Long-term debt	199,057		—		—		—			199,057
Other liabilities	33,499		44,745		1,469		—			79,713
Intercompany payable – noncurrent	965,515		145,547		82,149		(1,193,211		)	—
Total other liabilities	1,198,071		190,292		83,618		(1,193,211		)	278,770
Equity
Caleres, Inc. shareholders’ equity	492,073		879,965		169,843		(1,049,808		)	492,073
Noncontrolling interests	—		—		698		—			698
Total equity	492,073		879,965		170,541		(1,049,808		)	492,771
Total liabilities and equity	$	1,810,685	$	1,258,054	$	295,246	$	(2,255,023	)	$	1,108,962



UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME
FOR THE THIRTEEN WEEKS ENDED MAY 3, 2014
							Non-
($ thousands)	Parent			Guarantors			Guarantors			Eliminations			Total
Net sales	$	179,160		$	401,580		$	40,165		$	(29,743	)	$	591,162
Cost of goods sold	127,466			218,366			29,191			(26,202		)	348,821
Gross profit	51,694			183,214			10,974			(3,541		)	242,341
Selling and administrative expenses	49,197			159,967			7,992			(3,541		)	213,615
Operating earnings	2,497			23,247			2,982			—			28,726
Interest expense	(5,305		)	(1		)	—			—			(5,306		)
Interest income	1			59			16			—			76
Intercompany interest income (expense)	3,974			(4,079		)	105			—			—
Earnings before income taxes	1,167			19,226			3,103			—			23,496
Income tax benefit (provision)	464			(7,954		)	(530		)	—			(8,020		)
Equity in earnings of subsidiaries, net of tax	13,798			2,526			—			(16,324		)	—
Net earnings	15,429			13,798			2,573			(16,324		)	15,476
Less: Net earnings attributable to noncontrolling interests	—			—			47			—			47
Net earnings attributable to Caleres, Inc.	$	15,429		$	13,798		$	2,526		$	(16,324	)	$	15,429

Comprehensive income	$	15,918		$	14,355		$	2,520		$	(16,840	)	$	15,953
Less: Comprehensive income attributable to noncontrolling interests	—			—			35			—			35
Comprehensive income attributable to Caleres, Inc.	$	15,918		$	14,355		$	2,485		$	(16,840	)	$	15,918



UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE THIRTEEN WEEKS ENDED MAY 3, 2014
							Non-
($ thousands)	Parent			Guarantors			Guarantors			Eliminations		Total
Net cash (used for) provided by operating activities	$	(3,343	)	$	25,854		$	13,872		$	—	$	36,383

Investing activities
Purchases of property and equipment	(1,866		)	(5,411		)	(104		)	—		(7,381		)
Capitalized software	(1,171		)	(43		)	(31		)	—		(1,245		)
Acquisition of trademarks	(65,065		)	—			—			—		(65,065		)
Intercompany investing	(533		)	533			—			—		—
Net cash used for investing activities	(68,635		)	(4,921		)	(135		)	—		(73,691		)

Financing activities
Borrowings under revolving credit agreement	251,000			—			—			—		251,000
Repayments under revolving credit agreement	(258,000		)	—			—			—		(258,000		)
Dividends paid	(3,053		)	—			—			—		(3,053		)
Issuance of common stock under share-based plans, net	(803		)	—			—			—		(803		)
Tax benefit related to share-based plans	1,769			—			—			—		1,769
Intercompany financing	81,065			(25,924		)	(55,141		)	—		—
Net cash provided by (used for) financing activities	71,978			(25,924		)	(55,141		)	—		(9,087		)
Effect of exchange rate changes on cash and cash equivalents	—			517			—			—		517
Decrease in cash and cash equivalents	—			(4,474		)	(41,404		)	—		(45,878		)
Cash and cash equivalents at beginning of period	—			30,002			52,544			—		82,546
Cash and cash equivalents at end of period	$	—		$	25,528		$	11,140		$	—	$	36,668