

Note 19	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 the Company's 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 October 31, 2018, Vionic 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, Allen Edmonds and Vionic 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
MAY 4, 2019
					Non-
($ thousands)	Parent		Guarantors		Guarantors			Eliminations			Total
Assets
Current assets
Cash and cash equivalents	$	6,812	$	14,703	$	14,263		$	—		$	35,778
Receivables, net	91,170		39,619		17,698			—			148,487
Inventories, net	124,703		492,630		30,812			—			648,145
Prepaid expenses and other current assets	31,046		18,077		6,586			(807		)	54,902
Intercompany receivable – current	314		76		8,800			(9,190		)	—
Total current assets	254,045		565,105		78,159			(9,997		)	887,312
Other assets	73,066		11,793		852			—			85,711
Goodwill and intangible assets, net	108,328		331,689		108,491			—			548,508
Lease right-of-use assets	130,006		572,551		32,725			—			735,282
Property and equipment, net	75,763		149,955		10,539			—			236,257
Investment in subsidiaries	1,503,973		—		(25,376		)	(1,478,597		)	—
Intercompany receivable – noncurrent	586,453		620,752		775,061			(1,982,266		)	—
Total assets	$	2,731,634	$	2,251,845	$	980,451		$	(3,470,860	)	$	2,493,070

Liabilities and Equity
Current liabilities
Borrowings under revolving credit agreement	$	318,000	$	—	$	—		$	—		$	318,000
Trade accounts payable	83,559		183,057		22,455			—			289,071
Lease obligations	11,096		118,041		6,868			—			136,005
Other accrued expenses	65,845		83,503		19,683			(807		)	168,224
Intercompany payable – current	4,669		—		4,521			(9,190		)	—
Total current liabilities	483,169		384,601		53,527			(9,997		)	911,300
Other liabilities
Noncurrent lease obligations	$	132,565	$	497,527	$	32,658		$	—		$	662,750
Long-term debt	198,046		—		—			—			198,046
Other liabilities	88,358		2,848		1,136			—			92,342
Intercompany payable – noncurrent	1,202,260		113,338		666,668			(1,982,266		)	—
Total other liabilities	1,621,229		613,713		700,462			(1,982,266		)	953,138
Equity
Caleres, Inc. shareholders’ equity	627,236		1,253,531		225,066			(1,478,597		)	627,236
Noncontrolling interests	—		—		1,396			—			1,396
Total equity	627,236		1,253,531		226,462			(1,478,597		)	628,632
Total liabilities and equity	$	2,731,634	$	2,251,845	$	980,451		$	(3,470,860	)	$	2,493,070



UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME
FOR THE THIRTEEN WEEKS ENDED MAY 4, 2019
							Non-
($ thousands)	Parent			Guarantors			Guarantors			Eliminations			Total
Net sales	$	191,404		$	488,321		$	52,426		$	(54,397	)	$	677,754
Cost of goods sold	129,259			289,541			27,095			(47,977		)	397,918
Gross profit	62,145			198,780			25,331			(6,420		)	279,836
Selling and administrative expenses	55,941			194,585			18,005			(6,420		)	262,111
Restructuring and other special charges, net	856			—			—			—			856
Operating earnings	5,348			4,195			7,326			—			16,869
Interest (expense) income	(7,339		)	(22		)	21			—			(7,340		)
Other income (expense)	2,637			—			(18		)	—			2,619
Intercompany interest income (expense)	2,841			(2,817		)	(24		)	—			—
Earnings before income taxes	3,487			1,356			7,305			—			12,148
Income tax provision	(1,312		)	(355		)	(1,396		)	—			(3,063		)
Equity in earnings (loss) of subsidiaries, net of tax	6,908			—			(538		)	(6,370		)	—
Net earnings	9,083			1,001			5,371			(6,370		)	9,085
Less: Net earnings attributable to noncontrolling interests	—			—			2			—			2
Net earnings attributable to Caleres, Inc.	$	9,083		$	1,001		$	5,369		$	(6,370	)	$	9,083

Comprehensive income	$	8,811		$	923		$	4,570		$	(5,479	)	$	8,825
Less: Comprehensive income attributable to noncontrolling interests	—			—			14			—			14
Comprehensive income attributable to Caleres, Inc.	$	8,811		$	923		$	4,556		$	(5,479	)	$	8,811



UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE THIRTEEN WEEKS ENDED MAY 4, 2019
							Non-
($ thousands)	Parent			Guarantors			Guarantors			Eliminations		Total
Net cash (used for) provided by operating activities	$	(5,419	)	$	47,435		$	7,894		$	—	$	49,910

Investing activities
Purchases of property and equipment	(14,787		)	(2,833		)	(823		)	—		(18,443		)
Capitalized software	(2,911		)	(6		)	—			—		(2,917		)
Intercompany investing	(120		)	120			—			—		—
Net cash used for investing activities	(17,818		)	(2,719		)	(823		)	—		(21,360		)

Financing activities
Borrowings under revolving credit agreement	84,000			—			—			—		84,000
Repayments under revolving credit agreement	(101,000		)	—			—			—		(101,000		)
Dividends paid	(2,947		)	—			—			—		(2,947		)
Issuance of common stock under share-based plans, net	(2,559		)	—			—			—		(2,559		)
Other	(394		)	—			—			—		(394		)
Intercompany financing	52,947			(39,161		)	(13,786		)	—		—
Net cash provided by (used for) financing activities	30,047			(39,161		)	(13,786		)	—		(22,900		)
Effect of exchange rate changes on cash and cash equivalents	—			—			(72		)	—		(72		)
Increase (decrease) in cash and cash equivalents	6,810			5,555			(6,787		)	—		5,578
Cash and cash equivalents at beginning of period	2			9,148			21,050			—		30,200
Cash and cash equivalents at end of period	$	6,812		$	14,703		$	14,263		$	—	$	35,778



UNAUDITED CONDENSED CONSOLIDATING BALANCE SHEET
MAY 5, 2018
					Non-
($ thousands)	Parent		Guarantors		Guarantors			Eliminations			Total
Assets
Current assets
Cash and cash equivalents	$	41,795	$	10,011	$	44,675		$	—		$	96,481
Receivables, net	113,763		2,721		9,075			—			125,559
Inventories, net	110,242		441,144		28,516			—			579,902
Prepaid expenses and other current assets	28,677		31,669		6,632			(4,593		)	62,385
Intercompany receivable – current	919		339		14,444			(15,702		)	—
Total current assets	295,396		485,884		103,342			(20,295		)	864,327
Other assets	75,242		12,937		762			—			88,941
Goodwill and intangible assets, net	112,298		40,937		186,665			—			339,900
Property and equipment, net	36,178		160,903		11,817			—			208,898
Investment in subsidiaries	1,341,505		—		(24,043		)	(1,317,462		)	—
Intercompany receivable – noncurrent	783,315		536,213		708,992			(2,028,520		)	—
Total assets	$	2,643,934	$	1,236,874	$	987,535		$	(3,366,277	)	$	1,502,066

Liabilities and Equity
Current liabilities
Trade accounts payable	$	99,013	$	150,288	$	19,616		$	—		$	268,917
Other accrued expenses	67,588		85,180		20,571			(4,593		)	168,746
Intercompany payable – current	5,467		—		10,235			(15,702		)	—
Total current liabilities	172,068		235,468		50,422			(20,295		)	437,663
Other liabilities
Long-term debt	197,587		—		—			—			197,587
Other liabilities	102,303		40,200		10,175			—			152,678
Intercompany payable – noncurrent	1,459,271		91,100		478,149			(2,028,520		)	—
Total other liabilities	1,759,161		131,300		488,324			(2,028,520		)	350,265
Equity
Caleres, Inc. shareholders’ equity	712,705		870,106		447,356			(1,317,462		)	712,705
Noncontrolling interests	—		—		1,433			—			1,433
Total equity	712,705		870,106		448,789			(1,317,462		)	714,138
Total liabilities and equity	$	2,643,934	$	1,236,874	$	987,535		$	(3,366,277	)	$	1,502,066



UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME
FOR THE THIRTEEN WEEKS ENDED MAY 5, 2018
							Non-
($ thousands)	Parent			Guarantors			Guarantors			Eliminations			Total
Net sales	$	199,260		$	445,695		$	37,392		$	(50,205	)	$	632,142
Cost of goods sold	134,594			247,799			17,867			(43,039		)	357,221
Gross profit	64,666			197,896			19,525			(7,166		)	274,921
Selling and administrative expenses	66,342			177,886			13,135			(7,166		)	250,197
Restructuring and other special charges, net	525			1,253			—			—			1,778
Operating (loss) earnings	(2,201		)	18,757			6,390			—			22,946
Interest (expense) income	(3,819		)	(12		)	148			—			(3,683		)
Other income (expense)	3,120			—			(29		)	—			3,091
Intercompany interest income (expense)	2,768			(2,799		)	31			—			—
(Loss) earnings before income taxes	(132		)	15,946			6,540			—			22,354
Income tax provision	(952		)	(3,302		)	(920		)	—			(5,174		)
Equity in earnings (loss) of subsidiaries, net of tax	18,296			—			(478		)	(17,818		)	—
Net earnings	17,212			12,644			5,142			(17,818		)	17,180
Less: Net loss attributable to noncontrolling interests	—			—			(32		)	—			(32		)
Net earnings attributable to Caleres, Inc.	$	17,212		$	12,644		$	5,174		$	(17,818	)	$	17,212

Comprehensive income	$	16,325		$	12,626		$	4,995		$	(17,661	)	$	16,285
Less: Comprehensive loss attributable to noncontrolling interests	—			—			(40		)	—			(40		)
Comprehensive income attributable to Caleres, Inc.	$	16,325		$	12,626		$	5,035		$	(17,661	)	$	16,325



UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE THIRTEEN WEEKS ENDED MAY 5, 2018
							Non-
($ thousands)	Parent			Guarantors			Guarantors			Eliminations		Total
Net cash provided by operating activities	$	5,799		$	38,599		$	6,949		$	—	$	51,347

Investing activities
Purchases of property and equipment	(3,095		)	(4,334		)	(500		)	—		(7,929		)
Capitalized software	(1,248		)	(186		)	—			—		(1,434		)
Intercompany investing	286			(286		)	—			—		—
Net cash used for investing activities	(4,057		)	(4,806		)	(500		)	—		(9,363		)

Financing activities
Dividends paid	(3,023		)	—			—			—		(3,023		)
Acquisition of treasury stock	(3,288		)	—			—			—		(3,288		)
Issuance of common stock under share-based plans, net	(3,122		)	—			—			—		(3,122		)
Intercompany financing	23,397			(23,782		)	385			—		—
Net cash provided by (used for) financing activities	13,964			(23,782		)	385			—		(9,433		)
Effect of exchange rate changes on cash and cash equivalents	—			—			(117		)	—		(117		)
Increase in cash and cash equivalents	15,706			10,011			6,717			—		32,434
Cash and cash equivalents at beginning of period	26,089			—			37,958			—		64,047
Cash and cash equivalents at end of period	$	41,795		$	10,011		$	44,675		$	—	$	96,481



CONDENSED CONSOLIDATING BALANCE SHEET
FEBRUARY 2, 2019
					Non-
($ thousands)	Parent		Guarantors		Guarantors			Eliminations			Total
Assets
Current assets
Cash and cash equivalents	$	2	$	9,148	$	21,050		$	—		$	30,200
Receivables, net	130,684		32,319		28,719			—			191,722
Inventories, net	175,697		470,610		36,864			—			683,171
Prepaid expenses and other current assets	31,195		32,556		7,603			—			71,354
Intercompany receivable – current	190		42		15,279			(15,511		)	—
Total current assets	337,768		544,675		109,515			(15,511		)	976,447
Other assets	68,707		11,824		909			—			81,440
Goodwill and intangible assets, net	108,884		331,810		109,203			—			549,897
Property and equipment, net	62,608		157,270		10,906			—			230,784
Investment in subsidiaries	1,499,209		—		(24,838		)	(1,474,371		)	—
Intercompany receivable – noncurrent	597,515		578,821		762,281			(1,938,617		)	—
Total assets	$	2,674,691	$	1,624,400	$	967,976		$	(3,428,499	)	$	1,838,568

Liabilities and Equity
Current liabilities
Borrowings under revolving credit agreement	$	335,000	$	—	$	—		$	—		$	335,000
Trade accounts payable	146,400		130,670		39,228			—			316,298
Other accrued expenses	95,498		86,015		20,525			—			202,038
Intercompany payable – current	10,781		—		4,730			(15,511		)	—
Total current liabilities	587,679		216,685		64,483			(15,511		)	$	853,336
Other liabilities
Long-term debt	197,932		—		—			—			197,932
Other liabilities	105,689		41,149		5,027			—			151,865
Intercompany payable – noncurrent	1,149,338		115,114		674,165			(1,938,617		)	—
Total other liabilities	1,452,959		156,263		679,192			(1,938,617		)	349,797
Equity
Caleres, Inc. shareholders’ equity	634,053		1,251,452		222,919			(1,474,371		)	634,053
Noncontrolling interests	—		—		1,382			—			1,382
Total equity	634,053		1,251,452		224,301			(1,474,371		)	635,435
Total liabilities and equity	$	2,674,691	$	1,624,400	$	967,976		$	(3,428,499	)	$	1,838,568