TIMBERLAND CO

CIK:0000814361|SEC Filings

Earnings/(Loss) Per Share

6 Months Ended

Jul. 01, 2011

Earnings/(Loss) per share [Abstract]

Note 5. Earnings/(Loss) Per Share

Basic and diluted loss per share (“LPS”) for the quarters ended July 1, 2011 and July 2, 2010 and the six months ended July 1, 2011 exclude common stock equivalents and are computed by dividing net loss by the weighted-average number of common shares outstanding for the periods presented.

Basic earnings per share (“EPS”) excludes common stock equivalents and is computed by dividing net income by the weighted-average number of common shares outstanding for the periods presented. Diluted EPS reflects the potential dilution that would occur if potentially dilutive securities such as stock options were exercised and nonvested shares vested, to the extent such securities would not be anti-dilutive.

The following is a reconciliation of the number of shares (in thousands) for the basic and diluted EPS computation for the six months ended July 2, 2010:


	Net		Weighted- Average		Per-Share
	Income		Shares		Amount
Basic EPS		$2,295		53,698		$.04
Effect of dilutive securities:
Stock options and employee stock purchase plan shares		—		323		—
Nonvested shares		—		163		—

Diluted EPS		$2,295		54,184		$.04

The following securities (in thousands) were outstanding as of July 1, 2011 and July 2, 2010, but were not included in the computation of diluted EPS/(LPS) as their inclusion would be anti-dilutive:

For the Quarter Ended

For the Six Months Ended

July 1, 2011

July 2, 2010

July 1, 2011

July 2, 2010

Anti-dilutive securities

1,214

2,967

1,336

2,491

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands	6 Months Ended
	Jul. 01, 2011	Jul. 02, 2010
Cash flows from operating activities:
Net income/(loss)	$ (2,135)	$ 2,295
Adjustments to reconcile net income/(loss) to net cash provided/(used) by operating activities:
Deferred income taxes	9,929	(4,811)
Share-based compensation	6,993	3,647
Depreciation and amortization	13,033	13,053
Provision for losses on accounts receivable	316	1,584
Impairment of goodwill		5,395
Impairment of intangible assets	736	7,854
Excess tax benefit from share-based compensation	(5,116)	(303)
Unrealized (gain)/loss on derivatives	283	(176)
Other non-cash charges/(credits), net	(32)	222
Increase/(decrease) in cash from changes in operating assets and liabilities:
Accounts receivable	75,438	53,559
Inventory	(71,005)	(20,139)
Prepaid expense and other assets	(1,954)	1,429
Accounts payable	19,416	(700)
Accrued expense	(41,607)	(43,006)
Prepaid income taxes	(11,163)	(15,451)
Income taxes payable	(15,527)	(3,611)
Other liabilities	2,160	205
Net cash provided/(used) by operating activities	(20,235)	1,046
Cash flows from investing activities:
Additions to property, plant and equipment	(19,236)	(7,289)
Other	(499)	(116)
Net cash used by investing activities	(19,735)	(7,405)
Cash flows from financing activities:
Common stock repurchases	(40,939)	(44,220)
Issuance of common stock	36,499	2,435
Excess tax benefit from share-based compensation	5,116	587
Other	(1,195)	(634)
Net cash used by financing activities	(519)	(41,832)
Effect of exchange rate changes on cash and equivalents	2,068	(3,850)
Net decrease in cash and equivalents	(38,421)	(52,041)
Cash and equivalents at beginning of period	272,221	289,839
Cash and equivalents at end of period	233,800	237,798
Supplemental disclosures of cash flow information:
Interest paid	282	276
Income taxes paid	19,088	26,891
Non-cash investing activity (ERP system costs on account)	$ 3,027

Condensed Consolidated Balance Sheets (Unaudited) (USD $) In Thousands	Jul. 01, 2011	Dec. 31, 2010	Jul. 02, 2010
Current assets
Cash and equivalents	$ 233,800	$ 272,221	$ 237,798
Accounts receivable, net of allowance for doubtful accounts of $7,577 at July 1, 2011, $10,859 at December 31, 2010 and $11,130 at July 2, 2010	116,701	188,336	86,836
Inventory	251,720	180,068	177,206
Prepaid expense	32,748	32,729	31,506
Prepaid income taxes	36,245	25,083	27,244
Deferred income taxes	19,343	22,562	27,085
Derivative assets	51	29	7,882
Total current assets	690,608	721,028	595,557
Property, plant and equipment and capitalized software costs, net	78,411	68,043	64,502
Deferred income taxes	10,148	15,594	18,683
Goodwill	38,958	38,958	38,958
Intangible assets, net	33,630	34,839	36,195
Other assets, net	18,264	13,897	12,670
Total assets	870,019	892,359	766,565
Current liabilities
Accounts payable	110,156	91,025	78,946
Accrued expense
Payroll and related	30,262	47,376	27,678
Other	59,594	80,675	52,877
Income taxes payable	5,172	25,760	15,330
Deferred income taxes	0	0	388
Derivative liabilities	6,870	1,690	91
Total current liabilities	212,054	246,526	175,310
Other long-term liabilities	38,858	34,322	38,234
Commitments and contingencies (See Note 13)
Stockholders' equity
Preferred Stock, $.01 par value; 2,000,000 shares authorized; none issued	0	0	0
Additional paid-in capital	328,503	280,154	272,820
Retained earnings	1,069,170	1,071,305	976,978
Accumulated other comprehensive income	9,254	6,671	9,478
Treasury Stock at cost; 36,845,309 Class A shares at July 1, 2011, 35,610,050 Class A shares at December 31, 2010 and 33,511,452 Class A shares at July 2, 2010	(788,697)	(747,481)	(707,115)
Total stockholders' equity	619,107	611,511	553,021
Total liabilities and stockholders' equity	870,019	892,359	766,565
Common Class A
Stockholders' equity
Common Stock	771	756	751
Common Class B
Stockholders' equity
Common Stock	$ 106	$ 106	$ 109