

Note 16	Financial Information for the Company and its Subsidiaries

The Company's 2023 Senior Notes are fully and unconditionally and jointly and severally guaranteed by all of its existing and future subsidiaries that are guarantors under the Credit Agreement, as further discussed in Note 5 to the condensed consolidated financial statements. The following table presents 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. 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 AUGUST 1, 2015
					Non-
($ thousands)	Parent		Guarantors		Guarantors			Eliminations			Total
Assets
Current assets
Cash and cash equivalents	$	42,738	$	12,742	$	73,865		$	—		$	129,345
Restricted cash	41,482		—		—			—			41,482
Receivables, net	102,455		2,635		39,123			—			144,213
Inventories, net	158,061		458,869		24,198			—			641,128
Prepaid expenses and other current assets	12,032		22,554		6,416			—			41,002
Intercompany receivable – current	369		120		14,122			(14,611		)	—
Total current assets	357,137		496,920		157,724			(14,611		)	997,170
Other assets	133,056		15,227		(1,556		)	—			146,727
Goodwill and intangible assets, net	116,670		2,800		13,267			—			132,737
Property and equipment, net	31,530		109,463		9,846			—			150,839
Investment in subsidiaries	1,010,293		—		(18,530		)	(991,763		)	—
Intercompany receivable – noncurrent	425,872		359,067		533,324			(1,318,263		)	—
Total assets	$	2,074,558	$	983,477	$	694,075		$	(2,324,637	)	$	1,427,473

Liabilities and Equity
Current liabilities
Current portion of long-term debt	$	39,157	$	—	$	—		$	—		$	39,157
Trade accounts payable	121,213		222,148		39,265			—			382,626
Other accrued expenses	44,465		96,992		14,649			—			156,106
Intercompany payable – current	5,211		297		9,103			(14,611		)	—
Total current liabilities	210,046		319,437		63,017			(14,611		)	577,889
Other liabilities
Long-term debt	200,000		—		—			—			200,000
Other liabilities	44,049		33,812		2,495			—			80,356
Intercompany payable – noncurrent	1,052,118		37,745		228,400			(1,318,263		)	—
Total other liabilities	1,296,167		71,557		230,895			(1,318,263		)	280,356
Equity
Caleres, Inc. shareholders’ equity	568,345		592,483		399,280			(991,763		)	568,345
Noncontrolling interests	—		—		883			—			883
Total equity	568,345		592,483		400,163			(991,763		)	569,228
Total liabilities and equity	$	2,074,558	$	983,477	$	694,075		$	(2,324,637	)	$	1,427,473



UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME
FOR THE THIRTEEN WEEKS ENDED AUGUST 1, 2015
							Non-
($ thousands)	Parent			Guarantors			Guarantors			Eliminations			Total
Net sales	$	196,809		$	415,717		$	81,169		$	(55,861	)	$	637,834
Cost of goods sold	144,750			225,771			47,563			(43,045		)	375,039
Gross profit	52,059			189,946			33,606			(12,816		)	262,795
Selling and administrative expenses	60,220			164,064			15,593			(12,816		)	227,061
Operating (loss) earnings	(8,161		)	25,882			18,013			—			35,734
Interest expense	(4,345		)	—			—			—			(4,345		)
Loss on early extinguishment of debt	(8,690		)	—			—			—			(8,690		)
Interest income	196			—			42			—			238
Intercompany interest income (expense)	3,432			(3,471		)	39			—			—
(Loss) earnings before income taxes	(17,568		)	22,411			18,094			—			22,937
Income tax benefit (provision)	3,651			(7,570		)	(2,155		)	—			(6,074		)
Equity in earnings of subsidiaries, net of tax	30,742			—			394			(31,136		)	—
Net earnings	16,825			14,841			16,333			(31,136		)	16,863
Less: Net earnings attributable to noncontrolling interests	—			—			38			—			38
Net earnings attributable to Caleres, Inc.	$	16,825		$	14,841		$	16,295		$	(31,136	)	$	16,825

Comprehensive income	$	16,181		$	14,229		$	15,719		$	(29,911	)	$	16,218
Less: Comprehensive income attributable to noncontrolling interests	—			—			37			—			37
Comprehensive income attributable to Caleres, Inc.	$	16,181		$	14,229		$	15,682		$	(29,911	)	$	16,181




UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)
FOR THE TWENTY-SIX WEEKS ENDED AUGUST 1, 2015
							Non-
($ thousands)	Parent			Guarantors			Guarantors			Eliminations			Total
Net sales	$	389,160		$	795,906		$	136,150		$	(81,099	)	$	1,240,117
Cost of goods sold	282,343			427,354			84,526			(65,427		)	728,796
Gross profit	106,817			368,552			51,624			(15,672		)	511,321
Selling and administrative expenses	113,197			316,310			31,416			(15,672		)	445,251
Operating (loss) earnings	(6,380		)	52,242			20,208			—			66,070
Interest expense	(8,807		)	(1		)	—			—			(8,808		)
Loss on early extinguishment of debt	(8,690		)	—			—			—			(8,690		)
Interest income	448			—			94			—			542
Intercompany interest income (expense)	7,109			(7,193		)	84			—			—
(Loss) earnings before income taxes	(16,320		)	45,048			20,386			—			49,114
Income tax benefit (provision)	5,335			(15,590		)	(2,605		)	—			(12,860		)
Equity in earnings of subsidiaries, net of tax	47,071			—			378			(47,449		)	—
Net earnings	36,086			29,458			18,159			(47,449		)	36,254
Less: Net earnings attributable to noncontrolling interests	—			—			168			—			168
Net earnings attributable to Caleres, Inc.	$	36,086		$	29,458		$	17,991		$	(47,449	)	$	36,086

Comprehensive income	$	36,398		$	29,570		$	18,275		$	(47,674	)	$	36,569
Less: Comprehensive income attributable to noncontrolling interests	—			—			171			—			171
Comprehensive income attributable to Caleres, Inc.	$	36,398		$	29,570		$	18,104		$	(47,674	)	$	36,398



UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE TWENTY-SIX WEEKS ENDED AUGUST 1, 2015
							Non-
($ thousands)	Parent			Guarantors			Guarantors			Eliminations		Total
Net cash (used for) provided by operating activities	$	(3,561	)	$	71,298		$	33,518		$	—	$	101,255

Investing activities
Purchases of property and equipment	(9,933		)	(14,470		)	(469		)	—		(24,872		)
Disposals of property and equipment	7,111			—			—			—		7,111
Capitalized software	(1,959		)	(739		)	—			—		(2,698		)
Intercompany investing	(253		)	253			—			—		—
Net cash used for investing activities	(5,034		)	(14,956		)	(469		)	—		(20,459		)

Financing activities
Borrowings under revolving credit agreement	86,000			—			—			—		86,000
Repayments under revolving credit agreement	(86,000		)	—			—			—		(86,000		)
Proceeds from issuance of 2023 senior notes	200,000			—			—			—		200,000
Redemption of 2019 senior notes	(160,700		)	—			—			—		(160,700		)
Restricted cash	(41,482		)	—			—			—		(41,482		)
Debt issuance costs	(3,650		)	—			—			—		(3,650		)
Dividends paid	(6,135		)	—			—			—		(6,135		)
Acquisition of treasury stock	(4,921		)	—			—			—		(4,921		)
Issuance of common stock under share-based plans, net	(4,428		)	—			—			—		(4,428		)
Tax benefit related to share-based plans	2,838			—			—			—		2,838
Intercompany financing	55,920			(43,600		)	(12,320		)	—		—
Net cash provided by (used for) financing activities	37,442			(43,600		)	(12,320		)	—		(18,478		)
Effect of exchange rate changes on cash and cash equivalents	—			—			(376		)	—		(376		)
Increase in cash and cash equivalents	28,847			12,742			20,353			—		61,942
Cash and cash equivalents at beginning of period	13,891			—			53,512			—		67,403
Cash and cash equivalents at end of period	$	42,738		$	12,742		$	73,865		$	—	$	129,345



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	$	—	$	53,512		$	—		$	67,403
Receivables, net	89,030		5,398		42,218			—			136,646
Inventories, net	148,082		376,254		18,767			—			543,103
Prepaid expenses and other current assets	41,494		20,777		8,964			(27,491		)	43,744
Intercompany receivable – current	1,194		—		8,750			(9,944		)	—
Total current assets	293,691		402,429		132,211			(37,435		)	790,896
Other assets	113,922		13,733		13,931			—			141,586
Goodwill and intangible assets, net	117,792		2,800		13,995			—			134,587
Property and equipment, net	29,237		109,720		10,786			—			149,743
Investment in subsidiaries	956,831		—		(18,909		)	(937,922		)	—
Intercompany receivable – noncurrent	459,774		306,871		539,396			(1,306,041		)	—
Total assets	$	1,971,247	$	835,553	$	691,410		$	(2,281,398	)	$	1,216,812

Liabilities and Equity
Current liabilities
Trade accounts payable	$	60,377	$	114,208	$	41,336		$	—		$	215,921
Other accrued expenses	110,714		85,638		12,301			(27,491		)	181,162
Intercompany payable – current	4,948		—		4,996			(9,944		)	—
Total current liabilities	176,039		199,846		58,633			(37,435		)	397,083
Other liabilities
Long-term debt	199,197		—		—			—			199,197
Other liabilities	41,847		32,574		4,489			—			78,910
Intercompany payable – noncurrent	1,013,254		21,078		271,709			(1,306,041		)	—
Total other liabilities	1,254,298		53,652		276,198			(1,306,041		)	278,107
Equity
Caleres, Inc. shareholders’ equity	540,910		582,055		355,867			(937,922		)	540,910
Noncontrolling interests	—		—		712			—			712
Total equity	540,910		582,055		356,579			(937,922		)	541,622
Total liabilities and equity	$	1,971,247	$	835,553	$	691,410		$	(2,281,398	)	$	1,216,812



UNAUDITED CONDENSED CONSOLIDATING BALANCE SHEET
AS OF AUGUST 2, 2014
					Non-
($ thousands)	Parent		Guarantors		Guarantors			Eliminations			Total
Assets
Current assets
Cash and cash equivalents	$	—	$	—	$	46,876		$	—		$	46,876
Receivables, net	85,285		2,491		37,708			—			125,484
Inventories, net	160,581		470,596		26,479			—			657,656
Prepaid expenses and other current assets	11,869		20,278		7,020			—			39,167
Intercompany receivable – current	1,958		—		19,165			(21,123		)	—
Total current assets	259,693		493,365		137,248			(21,123		)	869,183
Other assets	119,473		13,455		1,851			—			134,779
Goodwill and intangible assets, net	119,041		2,800		14,921			—			136,762
Property and equipment, net	26,935		112,203		9,220			—			148,358
Investment in subsidiaries	886,736		—		(19,151		)	(867,585		)	—
Intercompany receivable – noncurrent	450,516		278,910		485,949			(1,215,375		)	—
Total assets	$	1,862,394	$	900,733	$	630,038		$	(2,104,083	)	$	1,289,082

Liabilities and Equity
Current liabilities
Trade accounts payable	$	104,054	$	192,787	$	44,853		$	—		$	341,694
Other accrued expenses	49,838		94,649		14,665			—			159,152
Intercompany payable – current	6,143		—		14,980			(21,123		)	—
Total current liabilities	160,035		287,436		74,498			(21,123		)	500,846
Other liabilities
Long-term debt	199,104		—		—			—			199,104
Other liabilities	34,659		37,543		7,678			—			79,880
Intercompany payable – noncurrent	960,014		38,569		216,792			(1,215,375		)	—
Total other liabilities	1,193,777		76,112		224,470			(1,215,375		)	278,984
Equity
Caleres, Inc. shareholders’ equity	508,582		537,185		330,400			(867,585		)	508,582
Noncontrolling interests	—		—		670			—			670
Total equity	508,582		537,185		331,070			(867,585		)	509,252
Total liabilities and equity	$	1,862,394	$	900,733	$	630,038		$	(2,104,083	)	$	1,289,082



UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME
FOR THE THIRTEEN WEEKS ENDED AUGUST 2, 2014
							Non-
($ thousands)	Parent			Guarantors			Guarantors			Eliminations			Total
Net sales	$	183,598		$	417,917		$	94,578		$	(60,216	)	$	635,877
Cost of goods sold	136,433			229,064			60,154			(49,416		)	376,235
Gross profit	47,165			188,853			34,424			(10,800		)	259,642
Selling and administrative expenses	57,149			164,142			17,849			(10,800		)	228,340
Operating (loss) earnings	(9,984		)	24,711			16,575			—			31,302
Interest expense	(5,125		)	—			—			—			(5,125		)
Interest income	12			—			97			—			109
Intercompany interest income (expense)	3,828			(3,787		)	(41		)	—			—
(Loss) earnings before income taxes	(11,269		)	20,924			16,631			—			26,286
Income tax benefit (provision)	1,684			(8,375		)	(1,556		)	—			(8,247		)
Equity in earnings of subsidiaries, net of tax	27,649			—			81			(27,730		)	—
Net earnings	18,064			12,549			15,156			(27,730		)	18,039
Less: Net earnings attributable to noncontrolling interests	—			—			(25		)	—			(25		)
Net earnings attributable to Caleres, Inc.	$	18,064		$	12,549		$	15,181		$	(27,730	)	$	18,064

Comprehensive income	$	17,555		$	12,541		$	15,143		$	(27,712	)	$	17,527
Less: Comprehensive income attributable to noncontrolling interests	—			—			(28		)	—			(28		)
Comprehensive income attributable to Caleres, Inc.	$	17,555		$	12,541		$	15,171		$	(27,712	)	$	17,555




UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME
FOR THE TWENTY-SIX WEEKS ENDED AUGUST 2, 2014
							Non-
($ thousands)	Parent			Guarantors			Guarantors			Eliminations			Total
Net sales	$	362,758		$	795,330		$	158,931		$	(89,980	)	$	1,227,039
Cost of goods sold	263,899			433,619			103,156			(75,618		)	725,056
Gross profit	98,859			361,711			55,775			(14,362		)	501,983
Selling and administrative expenses	106,346			310,783			39,188			(14,362		)	441,955
Operating (loss) earnings	(7,487		)	50,928			16,587			—			60,028
Interest expense	(10,430		)	(1		)	—			—			(10,431		)
Interest income	13			—			172			—			185
Intercompany interest income (expense)	7,802			(7,720		)	(82		)	—			—
(Loss) earnings before income taxes	(10,102		)	43,207			16,677			—			49,782
Income tax benefit (provision)	2,148			(17,229		)	(1,186		)	—			(16,267		)
Equity in earnings (loss) of subsidiaries, net of tax	41,447			—			(207		)	(41,240		)	—
Net earnings	33,493			25,978			15,284			(41,240		)	33,515
Less: Net loss attributable to noncontrolling interests	—			—			22			—			22
Net earnings attributable to Caleres, Inc.	$	33,493		$	25,978		$	15,262		$	(41,240	)	$	33,493

Comprehensive income	$	33,473		$	26,526		$	15,818		$	(42,337	)	$	33,480
Less: Comprehensive loss attributable to noncontrolling interests	—			—			7			—			7
Comprehensive income attributable to Caleres, Inc.	$	33,473		$	26,526		$	15,811		$	(42,337	)	$	33,473



UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE TWENTY-SIX WEEKS ENDED AUGUST 2, 2014
							Non-
($ thousands)	Parent			Guarantors			Guarantors			Eliminations		Total
Net cash (used for) provided by operating activities	$	(14,071	)	$	57,490		$	23,072		$	—	$	66,491

Investing activities
Purchases of property and equipment	(2,810		)	(19,355		)	(1,346		)	—		(23,511		)
Capitalized software	(2,642		)	(43		)	(29		)	—		(2,714		)
Acquisition of trademarks	(65,065		)	—			—			—		(65,065		)
Intercompany investing	(624		)	(295		)	919			—		—
Net cash used for investing activities	(71,141		)	(19,693		)	(456		)	—		(91,290		)

Financing activities
Borrowings under revolving credit agreement	456,000			—			—			—		456,000
Repayments under revolving credit agreement	(463,000		)	—			—			—		(463,000		)
Dividends paid	(6,110		)	—			—			—		(6,110		)
Issuance of common stock under share-based plans, net	(523		)	—			—			—		(523		)
Tax benefit related to share-based plans	2,097			—			—			—		2,097
Intercompany financing	96,748			(37,797		)	(58,951		)	—		—
Net cash provided by (used for) financing activities	85,212			(37,797		)	(58,951		)	—		(11,536		)
Effect of exchange rate changes on cash and cash equivalents	—			—			665			—		665
Decrease in cash and cash equivalents	—			—			(35,670		)	—		(35,670		)
Cash and cash equivalents at beginning of period	—			—			82,546			—		82,546
Cash and cash equivalents at end of period	$	—		$	—		$	46,876		$	—	$	46,876