ZALE CORP

CIK:0000109156|SEC Filings

ACCUMULATED OTHER COMPREHENSIVE INCOME

9 Months Ended

Apr. 30, 2014

ACCUMULATED OTHER COMPREHENSIVE INCOME

7. ACCUMULATED OTHER COMPREHENSIVE INCOME

The following table includes detail regarding changes in the composition of accumulated other comprehensive income (in thousands):

	Three Months Ended April 30,						Nine Months Ended April 30,

	2014			2013			2014			2013
Beginning of period	$	28,374		$	54,594		$	47,015		$	54,103
Foreign currency translation adjustment		3,299			(2,094	)		(12,697	)		(1,624	)
Unrealized loss on interest rate swaps		(141	)		—			(2,817	)		—
Reclassification of loss on interest rate swaps to interest expense		43			—			128			—
Unrealized (loss) gain on securities, net		(164	)		318			(218	)		339


End of period	$	31,411		$	52,818		$	31,411		$	52,818

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Apr. 30, 2014	Apr. 30, 2013
Cash Flows From Operating Activities:
Net earnings	$ 32,302	$ 17,996
Adjustments to reconcile net earnings to net cash (used in) provided by operating activities:
Non-cash interest	2,157	2,156
Depreciation and amortization	22,325	25,165
Deferred taxes	(559)	491
Loss on disposition of property and equipment	1,399	935
Impairment of property and equipment	488	851
Stock-based compensation	3,570	2,466
Changes in operating assets and liabilities:
Merchandise inventories	(86,640)	(87,575)
Other current assets	1,730	(2,385)
Other assets	335	1,648
Accounts payable and accrued liabilities	20,341	55,744
Deferred revenue	(5,553)	(10,194)
Other liabilities	(2,533)	(4,375)
Net cash (used in) provided by operating activities	(10,638)	2,923
Cash Flows From Investing Activities:
Payments for property and equipment	(28,212)	(16,459)
Purchase of available-for-sale investments	(7,006)	(1,674)
Proceeds from sales of available-for-sale investments	6,330	3,449
Net cash used in investing activities	(28,888)	(14,684)
Cash Flows From Financing Activities:
Borrowings under revolving credit agreement	3,829,600	3,950,500
Payments on revolving credit agreement	(3,784,800)	(3,936,900)
Proceeds from exercise of stock options	884	81
Payments on capital lease obligations	(821)	(751)
Net cash provided by financing activities	44,863	12,930
Effect of exchange rate changes on cash	(502)	(79)
Net change in cash and cash equivalents	4,835	1,090
Cash and cash equivalents at beginning of period	17,060	24,603
Cash and cash equivalents at end of period	$ 21,895	$ 25,693

CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Apr. 30, 2014	Jul. 31, 2013	Apr. 30, 2013
Current assets:
Cash and cash equivalents	$ 21,895	$ 17,060	$ 25,693
Merchandise inventories	845,428	767,540	828,197
Other current assets	50,261	53,335	48,862
Total current assets	917,584	837,935	902,752
Property and equipment	667,743	675,705	679,065
Less accumulated depreciation and amortization	(561,300)	(570,427)	(570,827)
Net property and equipment	106,443	105,278	108,238
Goodwill	93,621	98,372	99,975
Other assets	37,556	38,560	46,300
Deferred tax asset	107,110	107,110	96,888
Total assets	1,262,314	1,187,255	1,254,153
Current liabilities:
Accounts payable and accrued liabilities	241,193	220,558	260,608
Deferred revenue	80,934	82,110	84,190
Deferred tax liability	106,579	107,016	97,110
Total current liabilities	428,706	409,684	441,908
Long-term debt	454,002	410,050	466,480
Deferred revenue - long-term	102,947	109,135	113,924
Other liabilities	70,926	73,057	33,922
Commitments and contingencies
Stockholders' investment:
Common stock	588	488	488
Additional paid-in capital	148,831	155,625	158,760
Accumulated other comprehensive income	31,411	47,015	52,818
Accumulated earnings	467,444	435,140	442,390
Total stockholders' investment before treasury stock	648,274	638,268	654,456
Treasury stock	(442,541)	(452,939)	(456,537)
Total stockholders' investment	205,733	185,329	197,919
Total liabilities and stockholders' investment	$ 1,262,314	$ 1,187,255	$ 1,254,153