

Note 15	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 4 to the condensed consolidated financial statements. 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.

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 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		)
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
AS OF JANUARY 30, 2016
					Non-
($ thousands)	Parent		Guarantors		Guarantors			Eliminations			Total
Assets
Current assets
Cash and cash equivalents	$	31,000	$	—	$	87,151		$	—		$	118,151
Receivables, net	110,235		2,290		41,139			—			153,664
Inventories, net	151,704		371,538		23,503			—			546,745
Prepaid expenses and other current assets	29,765		24,597		8,109			(5,966		)	56,505
Intercompany receivable – current	650		176		6,877			(7,703		)	—
Total current assets	323,354		398,601		166,779			(13,669		)	875,065
Other assets	94,767		15,772		7,810			—			118,349
Goodwill and intangible assets, net	115,558		2,800		12,541			—			130,899
Property and equipment, net	32,538		136,223		10,249			—			179,010
Investment in subsidiaries	1,028,143		—		(19,524		)	(1,008,619		)	—
Intercompany receivable – noncurrent	431,523		354,038		556,259			(1,341,820		)	—
Total assets	$	2,025,883	$	907,434	$	734,114		$	(2,364,108	)	$	1,303,323

Liabilities and Equity
Current liabilities
Trade accounts payable	$	78,332	$	123,274	$	36,196		$	—		$	237,802
Other accrued expenses	80,053		62,729		15,681			(5,966		)	152,497
Intercompany payable – current	4,394		—		3,309			(7,703		)	—
Total current liabilities	162,779		186,003		55,186			(13,669		)	390,299
Other liabilities
Long-term debt	196,544		—		—			—			196,544
Other liabilities	44,011		66,302		3,695			—			114,008
Intercompany payable – noncurrent	1,021,065		39,175		281,580			(1,341,820		)	—
Total other liabilities	1,261,620		105,477		285,275			(1,341,820		)	310,552
Equity
Caleres, Inc. shareholders’ equity	601,484		615,954		392,665			(1,008,619		)	601,484
Noncontrolling interests	—		—		988			—			988
Total equity	601,484		615,954		393,653			(1,008,619		)	602,472
Total liabilities and equity	$	2,025,883	$	907,434	$	734,114		$	(2,364,108	)	$	1,303,323



UNAUDITED CONDENSED CONSOLIDATING BALANCE SHEET
AS OF MAY 2, 2015
					Non-
($ thousands)	Parent		Guarantors		Guarantors			Eliminations			Total
Assets
Current assets
Cash and cash equivalents	$	3,564	$	—	$	62,766		$	—		$	66,330
Receivables, net	101,968		1,570		22,974			—			126,512
Inventories, net	95,948		380,104		22,461			—			498,513
Prepaid expenses and other current assets	12,519		22,119		6,365			—			41,003
Intercompany receivable – current	1,082		432		15,800			(17,314		)	—
Total current assets	215,081		404,225		130,366			(17,314		)	732,358
Other assets	121,441		13,551		6,977			—			141,969
Goodwill and intangible assets, net	117,226		2,800		13,631			—			133,657
Property and equipment, net	34,186		108,866		10,298			—			153,350
Investment in subsidiaries	955,609		—		(18,924		)	(936,685		)	—
Intercompany receivable – noncurrent	431,964		353,117		517,634			(1,302,715		)	—
Total assets	$	1,875,507	$	882,559	$	659,982		$	(2,256,714	)	$	1,161,334

Liabilities and Equity
Current liabilities
Trade accounts payable	$	3,417	$	145,328	$	23,371		$	—		$	172,116
Other accrued expenses	66,847		59,140		11,745			—			137,732
Intercompany payable – current	2,034		—		15,280			(17,314		)	—
Total current liabilities	72,298		204,468		50,396			(17,314		)	309,848
Other liabilities
Long-term debt	196,904		—		—			—			196,904
Other liabilities	34,689		61,678		3,895			—			100,262
Intercompany payable – noncurrent	1,018,142		37,477		247,096			(1,302,715		)	—
Total other liabilities	1,249,735		99,155		250,991			(1,302,715		)	297,166
Equity
Caleres, Inc. shareholders’ equity	553,474		578,936		357,749			(936,685		)	553,474
Noncontrolling interests	—		—		846			—			846
Total equity	553,474		578,936		358,595			(936,685		)	554,320
Total liabilities and equity	$	1,875,507	$	882,559	$	659,982		$	(2,256,714	)	$	1,161,334



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		$	380,189		$	54,981		$	(25,238	)	$	602,283
Cost of goods sold	137,594			201,583			36,962			(22,382		)	353,757
Gross profit	54,757			178,606			18,019			(2,856		)	248,526
Selling and administrative expenses	52,936			152,246			15,864			(2,856		)	218,190
Operating earnings	1,821			26,360			2,155			—			30,336
Interest expense	(4,462		)	(1		)	—			—			(4,463		)
Interest income	251			—			53			—			304
Intercompany interest income (expense)	3,678			(3,722		)	44			—			—
Earnings before income taxes	1,288			22,637			2,252			—			26,177
Income tax benefit (provision)	1,300			(7,724		)	(362		)	—			(6,786		)
Equity in earnings (loss) of subsidiaries, net of tax	16,673			—			(15		)	(16,658		)	—
Net earnings	19,261			14,913			1,875			(16,658		)	19,391
Less: Net earnings attributable to noncontrolling interests	—			—			130			—			130
Net earnings attributable to Caleres, Inc.	$	19,261		$	14,913		$	1,745		$	(16,658	)	$	19,261

Comprehensive income	$	20,217		$	14,913		$	2,604		$	(17,383	)	$	20,351
Less: Comprehensive income attributable to noncontrolling interests	—			—			134			—			134
Comprehensive income attributable to Caleres, Inc.	$	20,217		$	14,913		$	2,470		$	(17,383	)	$	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	$	(41,223	)	$	46,835		$	16,302		$	—	$	21,914

Investing activities
Purchases of property and equipment	(6,328		)	(6,302		)	(275		)	—		(12,905		)
Capitalized software	(750		)	(205		)	—			—		(955		)
Intercompany investing	(151		)	151			—			—		—
Net cash used for investing activities	(7,229		)	(6,356		)	(275		)	—		(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	47,469			(40,479		)	(6,990		)	—		—
Net cash provided by (used for) financing activities	38,125			(40,479		)	(6,990		)	—		(9,344		)
Effect of exchange rate changes on cash and cash equivalents	—			—			217			—		217
(Decrease) increase in cash and cash equivalents	(10,327		)	—			9,254			—		(1,073		)
Cash and cash equivalents at beginning of period	13,891			—			53,512			—		67,403
Cash and cash equivalents at end of period	$	3,564		$	—		$	62,766		$	—	$	66,330