

Note 17	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 our revolving credit facility ("Credit Agreement"). The following tables present the condensed 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. Guarantors are 100% owned by the Parent. On December 13, 2016, Allen Edmonds was joined to the Credit Agreement as a guarantor. After giving effect to the joinder, the Company is the lead borrower, and Sidney Rich Associates, Inc., BG Retail, LLC and Allen Edmonds are each co-borrowers and guarantors under the Credit Agreement.

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
APRIL 29, 2017
					Non-
($ thousands)	Parent		Guarantors		Guarantors			Eliminations			Total
Assets
Current assets
Cash and cash equivalents	$	43,201	$	15,601	$	13,014		$	—		$	71,816
Receivables, net	90,121		3,705		13,195			—			107,021
Inventories, net	117,815		422,911		24,325			—			565,051
Prepaid expenses and other current assets	20,499		15,134		7,313			(4,628		)	38,318
Intercompany receivable – current	1,487		159		18,297			(19,943		)	—
Total current assets	273,123		457,510		76,144			(24,571		)	782,206
Other assets	51,823		14,631		835			—			67,289
Goodwill and intangible assets, net	112,777		218,707		10,724			—			342,208
Property and equipment, net	32,093		173,567		12,194			—			217,854
Investment in subsidiaries	1,370,854		—		(22,994		)	(1,347,860		)	—
Intercompany receivable – noncurrent	581,957		409,466		591,105			(1,582,528		)	—
Total assets	$	2,422,627	$	1,273,881	$	668,008		$	(2,954,959	)	$	1,409,557

Liabilities and Equity
Current liabilities
Borrowings under revolving credit agreement	$	85,000	$	—	$	—		$	—		$	85,000
Trade accounts payable	65,364		140,924		18,744			—			225,032
Other accrued expenses	57,359		78,302		15,282			(4,628		)	146,315
Intercompany payable – current	10,398		—		9,545			(19,943		)	—
Total current liabilities	218,121		219,226		43,571			(24,571		)	456,347
Other liabilities
Long-term debt	197,118		—		—			—			197,118
Other liabilities	90,110		40,223		4,026			—			134,359
Intercompany payable – noncurrent	1,296,891		80,188		205,449			(1,582,528		)	—
Total other liabilities	1,584,119		120,411		209,475			(1,582,528		)	331,477
Equity
Caleres, Inc. shareholders’ equity	620,387		934,244		413,616			(1,347,860		)	620,387
Noncontrolling interests	—		—		1,346			—			1,346
Total equity	620,387		934,244		414,962			(1,347,860		)	621,733
Total liabilities and equity	$	2,422,627	$	1,273,881	$	668,008		$	(2,954,959	)	$	1,409,557



UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME
FOR THE THIRTEEN WEEKS ENDED APRIL 29, 2017
							Non-
($ thousands)	Parent			Guarantors			Guarantors			Eliminations			Total
Net sales	$	194,440		$	427,539		$	38,045		$	(28,515	)	$	631,509
Cost of goods sold	132,851			231,786			18,530			(22,566		)	360,601
Gross profit	61,589			195,753			19,515			(5,949		)	270,908
Selling and administrative expenses	52,424			182,347			15,253			(5,949		)	244,075
Restructuring and other special charges, net	1,108			—			—			—			1,108
Operating earnings	8,057			13,406			4,262			—			25,725
Interest expense	(5,035		)	(9		)	—			—			(5,044		)
Interest income	88			—			147			—			235
Intercompany interest income (expense)	2,083			(2,324		)	241			—			—
Earnings before income taxes	5,193			11,073			4,650			—			20,916
Income tax provision	(1,087		)	(3,875		)	(1,070		)	—			(6,032		)
Equity in earnings (loss) of subsidiaries, net of tax	10,796			—			(1,048		)	(9,748		)	—
Net earnings	14,902			7,198			2,532			(9,748		)	14,884
Less: Net loss attributable to noncontrolling interests	—			—			(18		)	—			(18		)
Net earnings attributable to Caleres, Inc.	$	14,902		$	7,198		$	2,550		$	(9,748	)	$	14,902

Comprehensive income	$	15,563		$	7,198		$	2,453		$	(9,674	)	$	15,540
Less: Comprehensive loss attributable to noncontrolling interests	—			—			(23		)	—			(23		)
Comprehensive income attributable to Caleres, Inc.	$	15,563		$	7,198		$	2,476		$	(9,674	)	$	15,563



UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE THIRTEEN WEEKS ENDED APRIL 29, 2017
							Non-
($ thousands)	Parent			Guarantors			Guarantors			Eliminations		Total
Net cash provided by operating activities	$	8,601		$	55,017		$	1,766		$	—	$	65,384

Investing activities
Purchases of property and equipment	(1,915		)	(7,570		)	(1,493		)	—		(10,978		)
Proceeds from disposal of property and equipment	(17,238		)	17,238			—			—		—
Capitalized software	(1,167		)	(223		)	—			—		(1,390		)
Intercompany investing	(2,494		)	2,494			—			—		—
Net cash (used for) provided by investing activities	(22,814		)	11,939			(1,493		)	—		(12,368		)

Financing activities
Borrowings under revolving credit agreement	195,000			—			—			—		195,000
Repayments under revolving credit agreement	(220,000		)	—			—			—		(220,000		)
Dividends paid	(3,025		)	—			—			—		(3,025		)
Acquisition of treasury stock	(5,993		)	—			—			—		(5,993		)
Issuance of common stock under share-based plans, net	(2,422		)	—			—			—		(2,422		)
Intercompany financing	69,855			(60,384		)	(9,471		)	—		—
Net cash provided by (used for) financing activities	33,415			(60,384		)	(9,471		)	—		(36,440		)
Effect of exchange rate changes on cash and cash equivalents	—			—			(92		)	—		(92		)
Increase (decrease) in cash and cash equivalents	19,202			6,572			(9,290		)	—		16,484
Cash and cash equivalents at beginning of period	23,999			9,029			22,304			—		55,332
Cash and cash equivalents at end of period	$	43,201		$	15,601		$	13,014		$	—	$	71,816



UNAUDITED CONDENSED CONSOLIDATING BALANCE SHEET
APRIL 30, 2016
					Non-
($ thousands)	Parent		Guarantors		Guarantors			Eliminations			Total
Assets
Current assets
Cash and cash equivalents	$	47,611	$	4,104	$	97,819		$	—		$	149,534
Receivables, net	99,021		761		17,179			—			116,961
Inventories, net	96,450		370,114		21,312			—			487,876
Prepaid expenses and other current assets	12,950		21,546		5,313			—			39,809
Intercompany receivable – current	571		185		10,084			(10,840		)	—
Total current assets	256,603		396,710		151,707			(10,840		)	794,180
Other assets	95,244		13,253		7,850			—			116,347
Goodwill and intangible assets, net	115,002		2,800		12,177			—			129,979
Property and equipment, net	31,473		144,427		9,686			—			185,586
Investment in subsidiaries	1,040,178		—		(20,061		)	(1,020,117		)	—
Intercompany receivable – noncurrent	462,382		375,975		561,419			(1,399,776		)	—
Total assets	$	2,000,882	$	933,165	$	722,778		$	(2,430,733	)	$	1,226,092

Liabilities and Equity
Current liabilities
Trade accounts payable	$	42,121	$	131,783	$	15,250		$	—		$	189,154
Other accrued expenses	41,347		69,268		14,790			—			125,405
Intercompany payable – current	2,228		—		8,612			(10,840		)	—
Total current liabilities	85,696		201,051		38,652			(10,840		)	314,559
Other liabilities
Long-term debt	196,659		—		—			—			196,659
Other liabilities	36,925		66,321		3,651			—			106,897
Intercompany payable – noncurrent	1,074,723		38,518		286,535			(1,399,776		)	—
Total other liabilities	1,308,307		104,839		290,186			(1,399,776		)	303,556
Equity
Caleres, Inc. shareholders’ equity	606,879		627,275		392,842			(1,020,117		)	606,879
Noncontrolling interests	—		—		1,098			—			1,098
Total equity	606,879		627,275		393,940			(1,020,117		)	607,977
Total liabilities and equity	$	2,000,882	$	933,165	$	722,778		$	(2,430,733	)	$	1,226,092



UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME
FOR THE THIRTEEN WEEKS ENDED APRIL 30, 2016
							Non-
($ thousands)	Parent			Guarantors			Guarantors			Eliminations			Total
Net sales	$	187,187		$	383,046		$	38,796		$	(24,296	)	$	584,733
Cost of goods sold	129,909			204,627			22,894			(20,490		)	336,940
Gross profit	57,278			178,419			15,902			(3,806		)	247,793
Selling and administrative expenses	49,542			157,103			16,211			(3,806		)	219,050
Operating earnings (loss)	7,736			21,316			(309		)	—			28,743
Interest expense	(3,608		)	(2		)	—			—			(3,610		)
Interest income	157			—			90			—			247
Intercompany interest income (expense)	2,254			(2,301		)	47			—			—
Earnings (loss) before income taxes	6,539			19,013			(172		)	—			25,380
Income tax provision	(866		)	(6,304		)	(332		)	—			(7,502		)
Equity in earnings (loss) of subsidiaries, net of tax	12,109			—			(537		)	(11,572		)	—
Net earnings (loss)	17,782			12,709			(1,041		)	(11,572		)	17,878
Less: Net earnings attributable to noncontrolling interests	—			—			96			—			96
Net earnings (loss) attributable to Caleres, Inc.	$	17,782		$	12,709		$	(1,137	)	$	(11,572	)	$	17,782

Comprehensive income	$	19,578		$	12,709		$	228		$	(12,827	)	$	19,688
Less: Comprehensive income attributable to noncontrolling interests	—			—			110			—			110
Comprehensive income attributable to Caleres, Inc.	$	19,578		$	12,709		$	118		$	(12,827	)	$	19,578



UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE THIRTEEN WEEKS ENDED APRIL 30, 2016
							Non-
($ thousands)	Parent			Guarantors			Guarantors			Eliminations		Total
Net cash provided by operating activities	$	14,658		$	42,360		$	8,142		$	—	$	65,160

Investing activities
Purchases of property and equipment	(590		)	(15,434		)	(343		)	—		(16,367		)
Capitalized software	(1,097		)	(723		)	—			—		(1,820		)
Intercompany investing	(2,815		)	2,815			—			—		—
Net cash used for investing activities	(4,502		)	(13,342		)	(343		)	—		(18,187		)

Financing activities
Borrowings under revolving credit agreement	103,000			—			—			—		103,000
Repayments under revolving credit agreement	(103,000		)	—			—			—		(103,000		)
Dividends paid	(3,068		)	—			—			—		(3,068		)
Acquisition of treasury stock	(12,130		)	—			—			—		(12,130		)
Issuance of common stock under share-based plans, net	(4,149		)	—			—			—		(4,149		)
Excess tax benefit related to share-based plans	3,163			—			—			—		3,163
Intercompany financing	22,639			(24,914		)	2,275			—		—
Net cash provided by (used for) financing activities	6,455			(24,914		)	2,275			—		(16,184		)
Effect of exchange rate changes on cash and cash equivalents	—			—			594			—		594
Increase in cash and cash equivalents	16,611			4,104			10,668			—		31,383
Cash and cash equivalents at beginning of period	31,000			—			87,151			—		118,151
Cash and cash equivalents at end of period	$	47,611		$	4,104		$	97,819		$	—	$	149,534



CONDENSED CONSOLIDATING BALANCE SHEET
JANUARY 28, 2017
					Non-
($ thousands)	Parent		Guarantors		Guarantors			Eliminations			Total
Assets
Current assets
Cash and cash equivalents	$	23,999	$	9,029	$	22,304		$	—		$	55,332
Receivables, net	118,746		5,414		28,961			—			153,121
Inventories, net	150,098		410,867		24,799			—			585,764
Prepaid expenses and other current assets	24,293		23,040		8,058			(5,863		)	49,528
Intercompany receivable – current	695		263		22,091			(23,049		)	—
Total current assets	317,831		448,613		106,213			(28,912		)	843,745
Other assets	51,181		16,567		826			—			68,574
Goodwill and intangible assets, net	113,333		219,337		11,088			—			343,758
Property and equipment, net	31,424		176,358		11,414			—			219,196
Investment in subsidiaries	1,343,954		—		(21,946		)	(1,322,008		)	—
Intercompany receivable – noncurrent	568,541		366,902		581,624			(1,517,067		)	—
Total assets	$	2,426,264	$	1,227,777	$	689,219		$	(2,867,987	)	$	1,475,273

Liabilities and Equity
Current liabilities
Borrowings under revolving credit agreement	$	110,000	$	—	$	—		$	—		$	110,000
Trade accounts payable	116,783		112,434		37,153			—			266,370
Other accrued expenses	74,941		65,228		16,919			(5,863		)	151,225
Intercompany payable – current	12,794		—		10,255			(23,049		)	—
Total current liabilities	314,518		177,662		64,327			(28,912		)	527,595
Other liabilities
Long-term debt	197,003		—		—			—			197,003
Other liabilities	91,683		40,507		3,999			—			136,189
Intercompany payable – noncurrent	1,209,943		98,982		208,142			(1,517,067		)	—
Total other liabilities	1,498,629		139,489		212,141			(1,517,067		)	333,192
Equity
Caleres, Inc. shareholders’ equity	613,117		910,626		411,382			(1,322,008		)	613,117
Noncontrolling interests	—		—		1,369			—			1,369
Total equity	613,117		910,626		412,751			(1,322,008		)	614,486
Total liabilities and equity	$	2,426,264	$	1,227,777	$	689,219		$	(2,867,987	)	$	1,475,273