PAYLESS SHOESOURCE INC /DE/

CIK:0001060232|SEC Filings

Earnings Per Share

6 Months Ended

Jul. 28, 2012

Note 10 – Earnings Per Share

Basic earnings per share is computed by dividing net earnings available to common shareholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share include the effect of conversions of stock options and stock-settled SARs. For all periods presented, the Company used the two-class method to calculate earnings per share. Earnings per share has been computed as follows:


	13 Weeks Ended					26 Weeks Ended
(dollars in millions, except per share amounts; shares in thousands)	July 28, 2012		July 30, 2011			July 28, 2012		July 30, 2011
Net earnings (loss) attributable to Collective Brands, Inc.	$	9.7	$	(35.0	)	$	42.9	$	(8.6	)
Less: net earnings allocated to participating securities⁽¹⁾		0.1		—			0.4		—

Net earnings (loss) available to common shareholders	$	9.6	$	(35.0	)	$	42.5	$	(8.6	)

Weighted average shares outstanding—basic		60,647		60,275			60,380		60,465
Net effect of dilutive stock options		58		—			56		—
Net effect of dilutive stock-settled SARs		671		—			636		—

Weighted average shares outstanding—diluted		61,376		60,275			61,072		60,465

Basic earnings (loss) per share attributable to common shareholders	$	0.16	$	(0.58	)	$	0.70	$	(0.14	)
Diluted earnings (loss) per share attributable to common shareholders	$	0.16	$	(0.58	)	$	0.70	$	(0.14	)

⁽¹⁾	Net earnings allocated to participating securities is calculated based upon a weighted average percentage of participating securities in relation to total shares outstanding. Net losses are not allocated to participating securities.

The Company excluded approximately 2.7 million and 3.1 million stock options and stock-settled SARs from the calculation of diluted earnings per share for the thirteen and twenty-six weeks ended July 28, 2012, respectively, because to include them would have been antidilutive. All of the Company’s stock options and stock-settled SARs were excluded from the calculation of diluted earnings per share for the thirteen and twenty-six weeks ended July 30, 2011 as their effects were antidilutive. Certain grants that are subject to performance conditions for vesting are considered antidilutive if the performance conditions are not met as of the end of the reporting period.

Condensed Consolidating Statement Of Cash Flows (Detail) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jul. 28, 2012	Jul. 30, 2011
Operating Activities:
Net (loss) earnings	$ 45.5	$ (5.1)
Adjustments for non-cash items included in net earnings	65.7	123.5
Changes in working capital	(67.3)	(118.3)
Other, net	0.7	(22.9)
Cash flow (used in) provided by operating activities	44.6	(22.8)
Investing Activities:
Capital expenditures	(40.7)	(42.3)
Cash flow used in investing activities	(40.7)	(42.3)
Financing Activities:
Net (repayments) proceeds of debt or notes payable	(2.6)	(2.6)
Net issuances of common stock	7.6	(16.4)
Net distributions to noncontrolling interests	(4.8)	(7.0)
Cash flow provided by (used in) financing activities	0.2	(26.0)
Effect of exchange rate changes on cash	4.9	1.8
(Decrease) increase in cash and cash equivalents	9.0	(89.3)
Cash and cash equivalents, beginning of year	181.3	324.1
Cash and cash equivalents, end of quarter	190.3	234.8
Parent Company
Operating Activities:
Net (loss) earnings	42.9	(8.6)
Adjustments for non-cash items included in net earnings	0.1	0.2
Changes in working capital	7.3	26.5
Other, net	(57.9)	(1.7)
Cash flow (used in) provided by operating activities	(7.6)	16.4
Financing Activities:
Net issuances of common stock	7.6	(16.4)
Cash flow provided by (used in) financing activities	7.6	(16.4)
Guarantor Subsidiaries
Operating Activities:
Net (loss) earnings	68.8	11.7
Adjustments for non-cash items included in net earnings	54.6	110.1
Changes in working capital	(107.3)	(97.1)
Other, net	10.4	(41.3)
Cash flow (used in) provided by operating activities	26.5	(16.6)
Investing Activities:
Capital expenditures	(31.4)	(32.9)
Cash flow used in investing activities	(31.4)	(32.9)
Financing Activities:
Net (repayments) proceeds of debt or notes payable	(2.6)	(2.6)
Cash flow provided by (used in) financing activities	(2.6)	(2.6)
(Decrease) increase in cash and cash equivalents	(7.5)	(52.1)
Cash and cash equivalents, beginning of year	46.3	122.4
Cash and cash equivalents, end of quarter	38.8	70.3
Non-Guarantor Subsidiaries
Operating Activities:
Net (loss) earnings	37.3	37.3
Adjustments for non-cash items included in net earnings	11.0	13.2
Changes in working capital	31.9	(41.0)
Other, net	(54.5)	(32.1)
Cash flow (used in) provided by operating activities	25.7	(22.6)
Investing Activities:
Capital expenditures	(9.3)	(9.4)
Cash flow used in investing activities	(9.3)	(9.4)
Financing Activities:
Net distributions to noncontrolling interests	(4.8)	(7.0)
Cash flow provided by (used in) financing activities	(4.8)	(7.0)
Effect of exchange rate changes on cash	4.9	1.8
(Decrease) increase in cash and cash equivalents	16.5	(37.2)
Cash and cash equivalents, beginning of year	135.0	201.7
Cash and cash equivalents, end of quarter	151.5	164.5
Eliminations
Operating Activities:
Net (loss) earnings	(103.5)	(45.5)
Changes in working capital	0.8	(6.7)
Other, net	$ 102.7	$ 52.2

Condensed Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified

Jul. 28, 2012

Jan. 28, 2012

Jul. 30, 2011

Current Assets:

Cash and cash equivalents

$ 190.3

$ 181.3

$ 234.8

Accounts receivable, net of allowance for doubtful accounts and returns reserve as of July 28, 2012, July 30, 2011 and January 28, 2012 of $6.9, $7.1 and $6.3, respectively

189.0

146.0

171.8

Inventories

624.4

563.4

585.0

Deferred income taxes

6.7

7.2

36.5

Prepaid expenses

68.7

61.5

59.8

Other current assets

21.5

21.8

20.3

Total current assets

1,100.6

981.2

1,108.2

Property and Equipment:

Land

5.9

6.0

Property, buildings and equipment

1,426.4

1,411.5

1,437.3

Accumulated depreciation and amortization

(1,084.0)

(1,048.0)

(1,059.9)

Property and equipment, net

348.3

369.4

383.4

Intangible assets, net

379.2

384.7

390.7

Goodwill

269.8

^[1]

269.8

^[1]

269.8

^[1]

Deferred income taxes

12.8

10.7

6.8

Other assets

28.2

31.4

39.4

Total Assets

2,138.9

2,047.2

2,198.3

Current Liabilities:

Current maturities of long-term debt

5.1

Accounts payable

325.2

291.6

310.0

Accrued expenses

156.9

147.0

154.4

Total current liabilities

487.2

443.7

469.5

Long-term debt

602.3

604.8

657.0

Deferred income taxes

120.7

122.4

40.6

Other liabilities

198.1

202.8

186.1

Commitments and contingencies (Note 12)

Equity:

Collective Brands, Inc. shareowners' equity

703.6

644.8

816.5

Noncontrolling interests

27.0

28.7

28.6

Total equity

730.6

673.5

845.1

Total Liabilities and Equity

$ 2,138.9

$ 2,047.2

$ 2,198.3

[1]	Cumulative goodwill impairment charges total $52.0 million, of which $42.0 million relates to the PLG Retail reporting segment and $10.0 million relates to the Payless Domestic reporting segment.