3 unchanged sentences
($ thousands)
+Added: July 31, 2021
+Added: August 1, 2020
January 30, 2021
13 unchanged sentences
Borrowings under revolving credit agreement
+Added: Current portion of long-term debt
Mandatory purchase obligation - Blowfish Malibu
20 unchanged sentences
Thirteen Weeks Ended
+Added: Twenty-Six Weeks Ended
($ thousands, except per share amounts)
+Added: August 1,2020
+Added: July 31, 2021
+Added: August 1, 2020
Cost of goods sold
16 unchanged sentences
Thirteen Weeks Ended
+Added: Twenty-Six Weeks Ended
($ thousands)
+Added: July 31, 2021
+Added: August 1, 2020
+Added: July 31, 2021
+Added: August 1, 2020
Net earnings (loss)
3 unchanged sentences
Derivative financial instruments
−Removed: Other comprehensive income (loss), net of tax
+Added: Other comprehensive income, net of tax
Comprehensive income (loss)
4 unchanged sentences
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
−Removed: Thirteen Weeks Ended
+Added: Twenty-Six Weeks Ended
($ thousands)
+Added: July 31, 2021
+Added: August 1, 2020
Operating Activities
4 unchanged sentences
Amortization of debt issuance costs and debt discount
−Removed: Fair value adjustments to mandatory purchase obligation
+Added: Fair value adjustments to Blowfish mandatory purchase obligation
Share-based compensation expense
22 unchanged sentences
Effect of exchange rate changes on cash and cash equivalents
−Removed: Increase in cash and cash equivalents
+Added: (Decrease) increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
9 unchanged sentences
(Loss) Income
−Removed: BALANCE JANUARY 30, 2021
+Added: BALANCE MAY 1, 2021
Foreign currency translation adjustment
4 unchanged sentences
Share-based compensation expense
+Added: BALANCE JULY 31, 2021
BALANCE MAY 2, 2020
+Added: Net (loss) earnings
+Added: Foreign currency translation adjustment
+Added: Pension and other postretirement benefits adjustments, net of tax of $ 248
+Added: Comprehensive income (loss)
+Added: Dividends ($ 0.07 per share)
+Added: Acquisition of treasury stock
+Added: ( 1,391,234 )
+Added: Issuance of common stock under share-based plans, net
+Added: Share-based compensation expense
+Added: BALANCE AUGUST 1, 2020
+Added: Total Caleres, Inc.
+Added: Comprehensive
+Added: Shareholders’
+Added: ($ thousands, except number of shares and per share amounts)
+Added: Paid-In Capital
+Added: (Loss) Income
+Added: BALANCE AS OF JANUARY 31, 2021
+Added: Foreign currency translation adjustment
+Added: Pension and other postretirement benefits adjustments, net of tax of $ 182
+Added: Comprehensive income
+Added: Dividends ($ 0.14 per share)
+Added: Issuance of common stock under share-based plans, net
+Added: Share-based compensation expense
+Added: BALANCE JULY 31, 2021
BALANCE FEBRUARY 1, 2020
Foreign currency translation adjustment
−Removed: Unrealized gain on derivative financial instruments, net of tax of $ 31
+Added: Unrealized loss on derivative financial instruments, net of tax of $ 31
Pension and other postretirement benefits adjustments, net of tax of $ 380
−Removed: Comprehensive loss
+Added: Comprehensive income (loss)
Dividends ($ 0.14 per share)
4 unchanged sentences
Share-based compensation expense
−Removed: BALANCE MAY 2, 2020
+Added: BALANCE AUGUST 1, 2020
CALERES, INC.
8 unchanged sentences
Traditionally, the third fiscal quarter accounts for a substantial portion of the Company’s earnings for the year.
−Removed: Interim results may not necessarily be indicative of results which may be expected for any other interim period or for the year as a whole, particularly given the impact of the coronavirus pandemic, as further discussed below.
+Added: Interim results may not necessarily be indicative of results which may be expected for any other interim period or for the year as a whole.
Certain prior period amounts in the condensed consolidated financial statements and footnotes have been reclassified to conform to the current period presentation.
−Removed: These reclassifications did not affect net (loss) earnings attributable to Caleres, Inc.
+Added: These reclassifications did not affect net earnings (loss) attributable to Caleres, Inc.
The accompanying condensed consolidated financial statements and footnotes should be read in conjunction with the consolidated financial statements and footnotes included in the Company’s Annual Report on Form 10-K for the year ended January 30, 2021.
2 unchanged sentences
The Company and Brand Investment Holding are each 50 % owners of the joint venture, which is named CLT Brand Solutions (“CLT”).
−Removed: Net sales and operating earnings were not significant during the thirteen weeks ended May 1, 2021 and May 2, 2020.
+Added: Net sales and operating earnings were not significant during the thirteen or twenty-six weeks ended July 31, 2021 and August 1, 2020.
The Company had a joint venture agreement with a subsidiary of C.
15 unchanged sentences
The United States economy and the retail industry have begun to recover from the adverse impact of the coronavirus (“COVID-19”) pandemic.
−Removed: The Company’s financial results were significantly impacted during the first half of 2020 as a result of the temporary closure of all retail stores beginning in mid-March.
+Added: The Company’s financial results were negatively impacted during the first half of 2020 as a result of the temporary closure of all retail stores beginning in mid-March.
The Company experienced sequential improvement in sales in the second half of 2020, driven by the reopening of the retail stores, and continued solid growth of the e-commerce business.
−Removed: During the first quarter of 2021, as the vaccine
−Removed: became widely distributed and state and local governments continued to ease restrictions, consumer sentiment and spending began to improve.
+Added: During the first half of 2021, as the vaccines became
+Added: widely distributed and governments continued to ease restrictions, consumer sentiment and spending began to improve.
In addition, the additional stimulus measures approved by the federal government provided a boost in consumer spending.
−Removed: These factors strengthened demand for our products in the first quarter of 2021, which contributed to strong growth in our net sales and operating earnings.
+Added: These factors strengthened demand for our products in the first half of 2021, which contributed to higher store traffic and strong growth in the Company’s net sales and operating earnings.
On March 27, 2020, the Coronavirus Aid, Relief and Economic Security ("CARES") Act was enacted.
1 unchanged sentence
During 2020, the Company deferred approximately $ 9.4 million of employer social security payroll taxes.
−Removed: As of May 1, 2021, approximately $ 4.7 million is recorded in other accrued expenses and $ 4.7 million is recorded in other liabilities on the condensed consolidated balance sheet.
+Added: As of July 31, 2021, approximately $ 4.7 million is recorded in other accrued expenses and $ 4.7 million is recorded in other liabilities on the condensed consolidated balance sheets.
+Added: Corporate Headquarters Campus
+Added: In April 2021, the Company announced that it would begin marketing for sale its nine-acre corporate headquarters campus (“campus”) located in Clayton, Missouri.
+Added: The Company is in the process of evaluating offers as well as exploring relocation options.
+Added: The Company does not anticipate the campus to qualify as a completed sale within the next twelve months.
+Added: Accordingly, as of July 31, 2021, the campus is considered held and used and classified within property and equipment, net on the condensed consolidated balance sheets.
+Added: In addition, the Company evaluated the campus asset group for impairment indicators and determined that no indicators were present.
Note 2 Impact of New Accounting Pronouncements
4 unchanged sentences
In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes .
−Removed: ASU 2019-12 eliminates certain exceptions in Accounting Standards Codification 740 related to intraperiod tax allocation, simplifies certain elements of accounting for basis differences and deferred tax liabilities during a business combination, and standardizes the classification of franchise taxes.
+Added: ASU 2019-12 eliminates certain exceptions in Accounting Standards Codification (“ASC”) 740 related to intraperiod tax allocation, simplifies certain elements of accounting for basis differences and deferred tax liabilities during a business combination, and standardizes the classification of franchise taxes.
The Company adopted ASU 2019-12 during the first quarter of 2021, which did not have a material impact on the Company’s condensed consolidated financial statements.
4 unchanged sentences
Disaggregation of Revenues
−Removed: The following table disaggregates revenue by segment and major source for the periods ended May 1, 2021 and May 2, 2020:
−Removed: Thirteen Weeks Ended May 1, 2021
+Added: The following table disaggregates revenue by segment and major source for the periods ended July 31, 2021 and August 1, 2020:
+Added: Thirteen Weeks Ended July 31,2021
Eliminations and
11 unchanged sentences
Licensing and royalty
+Added: Thirteen Weeks Ended August 1, 2020
+Added: Eliminations and
+Added: ($ thousands)
+Added: Famous Footwear
+Added: Brand Portfolio
+Added: Retail stores
+Added: Landed wholesale - e-commerce - drop ship (1)
+Added: E-commerce - Company websites (1)
+Added: Total direct-to-consumer sales
+Added: First-cost wholesale - e-commerce (1)
+Added: Landed wholesale - e-commerce (1)
+Added: Landed wholesale - other
+Added: First-cost wholesale
+Added: Licensing and royalty
+Added: Twenty-Six Weeks Ended July 31, 2021
+Added: Eliminations and
+Added: ($ thousands)
+Added: Famous Footwear
+Added: Brand Portfolio
+Added: Retail stores
+Added: Landed wholesale - e-commerce - drop ship (1)
+Added: E-commerce - Company websites (1)
+Added: Total direct-to-consumer sales
+Added: First-cost wholesale - e-commerce (1)
+Added: Landed wholesale - e-commerce (1)
+Added: Landed wholesale - other
+Added: First-cost wholesale
+Added: Licensing and royalty
Total net sales
−Removed: Thirteen Weeks Ended May 2, 2020
+Added: Twenty-Six Weeks Ended August 1, 2020
Eliminations and
42 unchanged sentences
($ thousands)
+Added: July 31, 2021
+Added: August 1, 2020
January 30, 2021
4 unchanged sentences
Changes in contract balances with customers generally reflect differences in relative sales volume for the periods presented.
−Removed: In addition, during the thirteen weeks ended May 1, 2021, the loyalty programs liability increased $ 9.3 million due to points and material rights earned on purchases and decreased $ 7.1 million due to expirations and redemptions.
−Removed: During the thirteen weeks ended May 2, 2020, the loyalty programs liability increased $ 5.9 million due to points and material rights earned on purchases and decreased $ 5.0 million due to expirations and redemptions.
−Removed: The following table summarizes the activity in the Company’s allowance for expected credit losses during the thirteen weeks ended May 1, 2021 and May 2, 2020:
−Removed: Thirteen Weeks Ended
+Added: In addition, during the twenty-six weeks ended July 31, 2021, the loyalty programs liability increased $ 17.1 million due to points and material rights earned on purchases and decreased $ 13.3 million due to expirations and redemptions.
+Added: During the twenty-six weeks ended August 1, 2020, the loyalty programs liability increased $ 14.1 million due to points and material rights earned on purchases and decreased $ 14.0 million due to expirations and redemptions.
+Added: The following table summarizes the activity in the Company’s allowance for expected credit losses during the twenty-six weeks ended July 31, 2021 and August 1, 2020:
+Added: Twenty-Six Weeks Ended
($ thousands)
+Added: July 31, 2021
+Added: August 1, 2020
Balance, beginning of period
3 unchanged sentences
Balance, end of period
−Removed: (1) The Company’s provision/adjustment for expected credit losses for the thirteen weeks ended May 2, 2020 was higher than the comparable period in 2021 as a result of the COVID-19 pandemic and its impact on the financial condition of several of the Company’s wholesale customers.
+Added: (1) The Company’s provision/adjustment for expected credit losses for the twenty-six weeks ended August 1, 2020 was higher than the comparable period in 2021 as a result of the COVID-19 pandemic and its impact on the financial condition of several of the Company’s wholesale customers.
Note 4 Earnings (Loss) Per Share
3 unchanged sentences
The following table sets forth the computation of basic and diluted earnings (loss) per common share attributable to Caleres, Inc.
−Removed: shareholders for the periods ended May 1, 2021 and May 2, 2020:
+Added: shareholders for the periods ended July 31, 2021 and August 1, 2020:
Thirteen Weeks Ended
+Added: Twenty-Six Weeks Ended
($ thousands, except per share amounts)
+Added: July 31, 2021
+Added: August 1, 2020
+Added: July 31, 2021
+Added: August 1, 2020
Net earnings (loss)
9 unchanged sentences
Diluted earnings (loss) per common share attributable to Caleres, Inc.
−Removed: Options to purchase 16,667 and 22,667 shares of common stock for the thirteen weeks ended May 1, 2021 and May 2, 2020, respectively, were not included in the denominator for diluted earnings (loss) per common share attributable to Caleres, Inc.
+Added: Options to purchase 16,667 shares of common stock for both the thirteen and twenty-six weeks ended July 31, 2021 were not included in the denominator for diluted earnings (loss) per common share attributable to Caleres, Inc.
shareholders because the effect would be anti-dilutive.
−Removed: During the thirteen weeks ended May 1, 2021 and May 2, 2020, the Company repurchased zero and 1,510,888 shares, respectively, under the 2018 and 2019 publicly announced share repurchase programs, which permits repurchases of up to 2.5 million and 5.0 million shares, respectively.
+Added: Options to purchase 24,667 shares of common stock were excluded from the denominator for both the thirteen and twenty-six weeks ended August 1, 2020.
+Added: During the thirteen and twenty-six weeks ended August 1, 2020, the Company repurchased 1,391,234 and 2,902,122 shares, respectively, under the 2018 and 2019 publicly announced share repurchase programs, which permits repurchases of up to 2.5 million and 5.0 million shares, respectively.
+Added: The Company did not repurchase any shares under the share repurchase programs during the twenty-six weeks ended July 31, 2021.
Refer to further discussion in Item 2, Unregistered Sales of Equity Securities and Use of Proceeds .
Note 5 Restructuring and Other Special Charges
−Removed: During the thirteen weeks ended May 1, 2021, the Company incurred costs of $ 13.5 million ($ 11.9 million on an after-tax basis, or $ 0.31 per diluted share) related to the strategic realignment of the Naturalizer retail store operations.
−Removed: These costs primarily represent lease termination and other store closure costs, including employee severance, for the 73 stores that were closed during the first quarter of 2021.
−Removed: These charges are presented in restructuring and special charges on the condensed consolidated statements of earnings (loss) within the Brand Portfolio segment.
−Removed: As of May 1, 2021, reserves of $ 5.2 million were included on the condensed consolidated balance sheet.
−Removed: During the thirteen weeks ended May 2, 2020, the Company incurred costs of $ 1.6 million ($ 1.2 million on an after-tax basis, or $ 0.03 per diluted share) related to the decision to exit the Fergie brand.
−Removed: These charges, which represented inventory markdowns required to reduce the value of inventory to net realizable value, are presented in cost of goods sold on the condensed consolidated statements of earnings (loss) within the Brand Portfolio segment.
Blowfish Mandatory Purchase Obligation
In 2018, the Company acquired a controlling interest in Blowfish Malibu.
−Removed: The noncontrolling interest is subject to a mandatory purchase obligation after a three-year period based upon an earnings multiple formula as specified in the purchase agreement.
−Removed: Approximately $ 9.0 million was initially assigned to the mandatory purchase obligation and remeasurement adjustments are being recorded as interest expense.
−Removed: The fair value adjustments on the mandatory purchase obligation totaled $ 6.4 million ($ 4.7 million on an after-tax basis, or $ 0.13 per diluted share) and $ 3.2 million ($ 2.4 million on an after-tax basis, or $ 0.06 per diluted share) for the thirteen weeks ended May 1, 2021 and May 2, 2020, respectively.
−Removed: As of May 1, 2021, the mandatory purchase obligation is valued at $ 45.5 million.
−Removed: The mandatory purchase obligation is expected to be settled during the third quarter of 2021.
+Added: The noncontrolling interest is subject to a mandatory purchase obligation after a three-year period, which ended on July 31, 2021, based upon an earnings multiple formula as specified in the purchase agreement.
+Added: Approximately $ 9.0 million was initially assigned to the mandatory purchase obligation and remeasurement adjustments are recorded as interest expense.
+Added: The fair value adjustments on the mandatory purchase obligation totaled $ 7.1 million ($ 5.3 million on an after-tax basis, or $ 0.14 per diluted share) and $ 13.5 million ($ 10.0 million on an after-tax basis, or $ 0.26 per diluted share) for the thirteen and twenty-six weeks ended July 31, 2021, respectively.
+Added: The fair value adjustments totaled $ 6.6 million ($ 4.9 million on an after-tax basis, or $ 0.13 per diluted share) and $ 9.8 million ($ 7.3 million on an after-tax basis, or $ 0.19 per diluted share) for the thirteen and twenty-six weeks ended and August 1, 2020, respectively.
+Added: As of July 31, 2021, the mandatory purchase obligation was valued at $ 52.6 million.
+Added: The mandatory
+Added: purchase obligation is expected to be settled during the third quarter of 2021.
Refer to further discussion regarding the mandatory purchase obligation in Note 14 to the condensed consolidated financial statements.
+Added: During the twenty-six weeks ended July 31, 2021, the Company incurred costs of $ 13.5 million ($ 11.9 million on an after-tax basis, or $ 0.31 per diluted share) related to the strategic realignment of the Naturalizer retail store operations.
+Added: These costs primarily represented lease termination and other store closure costs, including employee severance, for the 73 stores that were closed during the first quarter of 2021.
+Added: These charges are presented in restructuring and special charges on the condensed consolidated statements of earnings (loss) within the Brand Portfolio segment for the twenty-six weeks ended July 31, 2021.
+Added: As of July 31, 2021, reserves of $ 3.3 million were included on the condensed consolidated balance sheets.
+Added: During the twenty-six weeks ended August 1, 2020, the Company incurred costs of $ 1.6 million ($ 1.2 million on an after-tax basis, or $ 0.03 per diluted share) related to the decision to exit the Fergie brand.
+Added: These charges, which represented inventory markdowns required to reduce the value of inventory to net realizable value, are presented in cost of goods sold on the condensed consolidated statements of earnings (loss) within the Brand Portfolio segment for the twenty-six weeks ended August 1, 2020.
COVID-19-Related Expenses
−Removed: During the thirteen weeks ended May 2, 2020, the Company incurred costs associated with the COVID-19 pandemic and related impacts on the Company’s business, totaling $ 93.6 million ($ 73.3 million on an after-tax basis, or $ 1.90 per diluted share).
+Added: During the thirteen weeks ended August 1, 2020, the Company incurred costs associated with the COVID-19 pandemic and related impacts on the Company’s business, totaling $ 5.4 million ($ 4.7 million on an after-tax basis, or $ 0.13 per diluted share).
+Added: These costs were primarily for employee severance and related costs, as well as the cost of supplies and deep cleaning of the Company’s facilities.
+Added: Of the $ 5.4 million reflected as restructuring and other special charges, $ 4.5 million is reflected in the Brand Portfolio segment, $ 0.6 million is reflected in the Famous Footwear segment and $ 0.3 million is reflected within the Eliminations and Other category.
+Added: During the twenty-six weeks ended August 1, 2020, the Company incurred costs associated with the COVID-19 pandemic and related impacts on the Company’s business totaling $ 99.0 million ($ 78.0 million on an after-tax basis, or $ 2.17 per diluted share).
These costs included non-cash impairment of property and equipment and lease right-of-use assets, incremental inventory markdowns, employee severance and other direct expenses specific to the impact of COVID-19 on the Company’s operations.
2 unchanged sentences
The $ 33.4 million reflected as cost of goods sold represents incremental inventory markdowns, of which $ 27.4 million is reflected in the Brand Portfolio segment and $ 6.0 million is reflected in the Famous Footwear segment.
−Removed: There were no corresponding charges for the thirteen weeks ended May 1, 2021.
+Added: There were no corresponding special charges for the twenty-six weeks ended July 31, 2021.
Refer to Note 9 to the condensed consolidated financial statements for additional information regarding the impact of COVID-19 on the Company’s leases.
Note 6 Business Segment Information
−Removed: Following is a summary of certain key financial measures for the Company’s business segments for the periods ended May 1, 2021 and May 2, 2020:
+Added: Following is a summary of certain key financial measures for the Company’s business segments for the periods ended July 31, 2021 and August 1, 2020:
($ thousands)
−Removed: Thirteen Weeks Ended May 1, 2021
+Added: Thirteen Weeks Ended July 31, 2021
Intersegment sales (1)
+Added: Operating earnings
+Added: Segment assets
+Added: Thirteen Weeks Ended August 1, 2020
+Added: Intersegment sales (1)
Operating earnings (loss)
Segment assets
−Removed: Thirteen Weeks Ended May 2, 2020
+Added: Twenty-Six Weeks Ended July 31, 2021
Intersegment sales (1)
+Added: Operating earnings
+Added: Twenty-Six Weeks Ended August 1, 2020
+Added: Intersegment sales (1)
Operating loss
−Removed: Segment assets
(1) Included in net sales in the Brand Portfolio segment and eliminated in the Eliminations and Other category.
2 unchanged sentences
Thirteen Weeks Ended
+Added: Twenty-Six Weeks Ended
($ thousands)
+Added: July 31, 2021
+Added: August 1, 2020
+Added: July 31, 2021
+Added: August 1, 2020
Operating earnings (loss)
5 unchanged sentences
($ thousands)
+Added: July 31, 2021
+Added: August 1, 2020
January 30, 2021
6 unchanged sentences
($ thousands)
+Added: July 31, 2021
+Added: August 1, 2020
January 30, 2021
8 unchanged sentences
Goodwill and intangible assets, net
−Removed: The Company’s intangible assets as of May 1, 2021, May 2, 2020 and January 30, 2021 were as follows:
+Added: (1) The carrying amount of goodwill as of July 31, 2021, August 1, 2020 and January 30, 2021 is presented net of accumulated impairment charges of $ 415.7 million.
+Added: The Company’s intangible assets as of July 31, 2021, August 1, 2020 and January 30, 2021 were as follows:
($ thousands)
+Added: July 31, 2021
Estimated Useful Lives
2 unchanged sentences
Customer relationships
+Added: August 1, 2020
Estimated Useful Lives
+Added: Cost Basis (2)
Net Carrying Value
6 unchanged sentences
(2) The Via Spiga trade name was reclassified from indefinite-lived trade names to definite-lived trade names.
−Removed: The remaining carrying value of $ 0.5 million is being amortized over two years .
−Removed: Amortization expense related to intangible assets was $ 3.1 million and $ 3.2 million for the thirteen weeks ended May 1, 2021 and May 2, 2020, respectively.
+Added: The remaining carrying value of $ 0.1 million as of July 31, 2021 will be fully amortized by the end of fiscal 2021.
+Added: Amortization expense related to intangible assets was $ 3.1 million and $ 3.3 million for the thirteen weeks ended July 31, 2021 and August 1, 2020, respectively, and $ 6.3 and $ 6.5 million for the twenty-six weeks ended July 31, 2021 and August 1, 2020, respectively.
The Company estimates that amortization expense related to intangible assets will be approximately $ 12.6 million in 2021, $ 12.1 million in 2022, $ 11.9 million in 2023, and $ 11.0 million in 2024 and 2025.
2 unchanged sentences
A quantitative assessment was performed for all reporting units as of May 2, 2020.
−Removed: The assessment indicated that the carrying value of the goodwill associated with the Brand Portfolio and Vionic reporting
−Removed: units was impaired, resulting in total goodwill impairment charges of $ 240.3 million.
−Removed: The Company recorded no goodwill impairment charges during the thirteen weeks ended May 1, 2021.
+Added: The assessment indicated that the carrying value of the goodwill associated with the Brand Portfolio and Vionic reporting units was impaired, resulting in total goodwill impairment charges of $ 240.3 million.
+Added: The Company recorded no goodwill impairment charges during the twenty-six weeks ended July 31, 2021 or the thirteen weeks ended August 1, 2020.
Indefinite-lived intangible assets are tested for impairment as of the first day of the fourth quarter of each fiscal year unless events or circumstances indicate an interim test is required.
As a result of the triggering event from the economic impacts of COVID-19, an interim assessment was performed as of May 2, 2020.
−Removed: The indefinite-lived intangible asset impairment review resulted in total impairment charges of $ 22.4 million for the thirteen weeks ended May 2, 2020, including $ 12.2 million associated with the indefinite-lived Allen Edmonds trade name and $ 10.2 million of impairment associated with the indefinite-lived Via Spiga trade name.
+Added: The indefinite-lived intangible asset impairment review resulted in total impairment charges of $ 22.4 million during the first quarter of 2020, including $ 12.2 million associated with the indefinite-lived Allen Edmonds trade name and $ 10.2 million of impairment associated with the indefinite-lived Via Spiga trade name.
The carrying value of the Via Spiga trade name of $ 0.5 million is being amortized over approximately two years .
2 unchanged sentences
Those assessments resulted in additional impairment totaling $ 23.8 million, consisting of $ 19.8 million associated with the Allen Edmonds trade name and $ 4.0 million associated with the Allen Edmonds customer relationships intangible asset.
−Removed: The Company recorded no impairment charges during the thirteen weeks ended May 1, 2021.
+Added: The Company recorded no impairment charges during the twenty-six weeks ended July 31, 2021 or the thirteen weeks ended August 1, 2020.
Note 9 Leases
9 unchanged sentences
The fair value of the lease right-of-use assets is determined utilizing projected cash flows for each store location, discounted using a risk-adjusted discount rate, subject to a market floor based on current market lease rates.
−Removed: The Company recorded asset impairment charges of $ 1.9 million and $ 35.2 million during the thirteen weeks ended May 1, 2021 and May 2, 2020, respectively.
−Removed: The impairment charges recorded in the thirteen weeks ended May 1, 2021 are related to underperforming retail stores.
−Removed: The impairment charges recorded in the thirteen weeks ended May 2, 2020, including $ 20.4 million associated with operating lease right-of-use assets and $ 14.8 million associated with property and equipment, reflect the impact of the COVID-19 pandemic on the Company’s retail operations and estimates of remaining cash flows for each store.
+Added: The Company recorded asset impairment charges of $ 0.4 million during the thirteen weeks ended July 31, 2021.
+Added: The Company did no t record any impairment charges during the thirteen weeks ended August 1, 2020.
+Added: The Company recorded asset impairment charges of $ 2.3 million and $ 35.2 million during the twenty-six weeks ended July 31, 2021 and August 1, 2020, respectively.
+Added: The impairment charges recorded in the thirteen and twenty-six weeks ended July 31, 2021 are related to underperforming retail stores.
+Added: The impairment charges recorded in the twenty-six weeks ended August 1, 2020, including $ 20.4 million associated with operating lease right-of-use assets and $ 14.8 million associated with property and equipment, reflect the impact of the COVID-19 pandemic on the Company’s retail operations and estimates of remaining cash flows for each store.
Refer to Note 5 and Note 14 to the condensed consolidated financial statements for further discussion on these impairment charges.
3 unchanged sentences
The Company made a policy election to account for rent abatements as variable rent.
−Removed: Accordingly, during the thirteen weeks ended May 1, 2021, the Company recorded $ 1.3 million in lease concessions as a reduction of rent expense within selling and administrative expenses in the condensed consolidated statements of earnings (loss).
−Removed: Rent concessions for leases that were extended will be recognized as a lease modification.
−Removed: There were no lease concessions recorded during the thirteen weeks ended May 2, 2020.
−Removed: During the thirteen weeks ended May 1, 2021, the Company entered into new or amended leases that resulted in the recognition of right-of-use assets and lease obligations of $ 16.0 million on the condensed consolidated balance sheets.
−Removed: As of May 1, 2021, the Company has entered into lease commitments for three retail locations for which the leases have not yet commenced.
−Removed: The Company anticipates that one lease will begin in the current fiscal year and two leases will begin in the next fiscal year.
−Removed: Upon commencement, right-of-use assets and lease liabilities of approximately $ 0.6 million will be recorded in the current fiscal year and $ 1.8 million in the next fiscal year on the condensed consolidated balance sheets.
−Removed: The components of lease expense for the thirteen weeks ended May 1, 2021 and May 2, 2020 were as follows:
+Added: Accordingly, during the thirteen and twenty-six weeks ended July 31, 2021, the Company recorded $ 0.3 million and $ 1.6 million, respectively, in lease concessions as a reduction of rent expense within selling and administrative expenses in the condensed consolidated statements of earnings (loss).
+Added: The Company recorded $ 2.0 million in lease concessions during the thirteen and twenty-six weeks ended August 1, 2020.
+Added: Rent concessions for leases that were extended were recognized as a lease modification.
+Added: During the twenty-six weeks ended July 31, 2021, the Company entered into new or amended leases that resulted in the recognition of right-of-use assets and lease obligations of $ 45.5 million on the condensed consolidated balance sheets.
+Added: As of July 31, 2021, the Company has entered into lease commitments for two retail locations for which the leases have not yet commenced.
+Added: The Company anticipates that both leases will begin in the next fiscal year.
+Added: Upon commencement, right-of-use assets and lease liabilities of approximately $ 1.3 million will be recorded in the next fiscal year on the condensed consolidated balance sheets.
+Added: The components of lease expense for the thirteen and twenty-six weeks ended July 31, 2021 and August 1, 2020 were as follows:
Thirteen Weeks Ended
($ thousands)
+Added: July 31, 2021
+Added: August 1, 2020
Operating lease expense
3 unchanged sentences
Total lease expense
+Added: Twenty-Six Weeks Ended
+Added: ($ thousands)
+Added: July 31, 2021
+Added: August 1, 2020
+Added: Operating lease expense
+Added: Variable lease expense
+Added: Short-term lease expense
+Added: Sublease income
+Added: Total lease expense
Supplemental cash flow information related to leases is as follows:
−Removed: Thirteen Weeks Ended
+Added: Twenty-Six Weeks Ended
($ thousands)
+Added: July 31, 2021
+Added: August 1, 2020
Cash paid for lease liabilities (1)
Cash received from sublease income
−Removed: (1) Cash paid for lease liabilities for the thirteen weeks ended May 1, 2021 includes payment of certain lease payments deferred in 2020, as described above, as well as lease termination costs associated with the Naturalizer retail store closings, as further discussed in Note 5 to the condensed consolidated financial statements.
−Removed: In addition, cash paid for lease liabilities during the thirteen weeks ended May 2, 2020 was significantly lower than comparable periods, reflecting the deferral of lease payments during the onset of the pandemic.
+Added: (1) Cash paid for lease liabilities for the twenty-six weeks ended July 31, 2021 includes payment of certain lease payments deferred in 2020, as described above, as well as lease termination costs associated with the Naturalizer retail store closings, as further discussed in Note 5 to the condensed consolidated financial statements.
+Added: In addition, cash paid for lease liabilities during the twenty-six weeks ended August 1, 2020 was significantly lower than comparable periods, reflecting the deferral of lease payments during the onset of the pandemic.
Note 10 Long-term and Short-term Financing Arrangements
1 unchanged sentence
The Company maintains a revolving credit facility for working capital needs.
−Removed: The Company is the lead borrower, and Sidney Rich Associates, Inc., BG Retail, LLC, Allen Edmonds and Vionic are each co-borrowers and guarantors.
+Added: The Company is the lead borrower, and Sidney Rich Associates, Inc., BG Retail, LLC, Allen Edmonds, LLC, Vionic Group, LLC and Vionic International, LLC are each co-borrowers and guarantors.
On April 14, 2020, the Company entered into a Fourth Amendment to Fourth Amended and Restated Credit Agreement (as so amended, the "Credit Agreement") which, among other modifications, increased the amount available under the revolving credit facility by $ 100.0 million to an aggregate amount of up to $ 600.0 million, subject to borrowing base restrictions, and may be further increased by up to $ 150.0 million.
8 unchanged sentences
The Credit Agreement contains customary events of default, including, without limitation, payment defaults, breaches of representations and warranties, covenant defaults, cross-defaults to similar obligations, certain events of bankruptcy and insolvency, judgment defaults and the failure of any guaranty or security document supporting the agreement to be in full force and effect.
−Removed: If an event of default occurs, the collateral agent may assume dominion and control over the Company’s cash (a “cash dominion event”) until such event of default is cured
−Removed: or waived or the excess availability exceeds such amount for 30 consecutive days, provided that a cash dominion event shall be deemed continuing (even if an event of default is no longer continuing and/or excess availability exceeds the required amount for 30 consecutive business days) after a cash dominion event has occurred and been discontinued on two occasions in any 12-month period.
+Added: If an event of default occurs, the collateral agent may assume dominion and control over the Company’s cash (a “cash dominion event”) until such event of default is cured or waived or the excess availability exceeds such amount for 30 consecutive days, provided that a cash dominion event shall be deemed continuing (even if an event of default is no longer continuing and/or excess availability exceeds the required amount for 30 consecutive business days) after a cash dominion event has occurred and been discontinued on two occasions in any 12-month period.
The Credit Agreement also contains certain other covenants and restrictions.
−Removed: The Company was in compliance with all covenants and restrictions under the Credit Agreement as of May 1, 2021.
−Removed: At May 1, 2021, the Company had $ 200.0 million borrowings outstanding and $ 12.5 million in letters of credit outstanding under the Credit Agreement.
−Removed: Total additional borrowing availability was $ 211.3 million at May 1, 2021.
+Added: The Company was in compliance with all covenants and restrictions under the Credit Agreement as of July 31, 2021.
+Added: At July 31, 2021, the Company had $ 100.0 million of borrowings outstanding and $ 12.5 million in letters of credit outstanding under the Credit Agreement.
+Added: Total additional borrowing availability was $ 364.5 million at July 31, 2021.
$200 Million Senior Notes
3 unchanged sentences
The Company may redeem some or all of the Senior Notes at a redemption price (expressed as a percentage of principal amount) of 101.563 % if redeemed prior to August 15, 2021 and 100.000 % if redeemed after August 15, 2021, plus accrued and unpaid interest and Additional Interest (as defined in the Senior Notes indenture).
+Added: During the thirteen weeks ended July 31, 2021, the Company determined that it would redeem a portion of its Senior Notes on August 16, 2021.
+Added: Accordingly, the Company classified $ 100.0 million aggregate principal amount of its Senior Notes as a current liability.
+Added: On August 16, 2021, the Company redeemed $ 100.0 million of Senior Notes at 100.000 % using borrowings under the revolving credit agreement.
If the Company experiences specific kinds of changes of control, it would be required to offer to purchase the Senior Notes at a purchase price equal to 101 % of the principal amount, plus accrued and unpaid interest and Additional Interest, if any, to, but not including, the date of repurchase.
The Senior Notes also contain certain other covenants and restrictions that limit certain activities including, among other things, levels of indebtedness, payments of dividends, the guarantee or pledge of assets, certain investments, common stock repurchases, mergers and acquisitions and sales of assets.
−Removed: As of May 1, 2021, the Company was in compliance with all covenants and restrictions relating to the Senior Notes.
+Added: As of July 31, 2021, the Company was in compliance with all covenants and restrictions relating to the Senior Notes.
Note 11 Shareholders’ Equity
Accumulated Other Comprehensive Loss
−Removed: The following table sets forth the changes in accumulated other comprehensive loss (OCL) by component for the periods ended May 1, 2021 and May 2, 2020:
+Added: The following table sets forth the changes in accumulated other comprehensive loss (OCL) by component for the periods ended July 31, 2021 and August 1, 2020:
Postretirement
2 unchanged sentences
(Loss) Income
+Added: Balance at May 1, 2021
+Added: Other comprehensive income before reclassifications
+Added: Reclassifications:
+Added: Amounts reclassified from accumulated other comprehensive loss
+Added: Net reclassifications
+Added: Other comprehensive income
+Added: Balance at July 31, 2021
+Added: Balance at May 2, 2020
+Added: Other comprehensive income before reclassifications
+Added: Reclassifications:
+Added: Amounts reclassified from accumulated other comprehensive loss
+Added: Tax provision (3)
+Added: Net reclassifications
+Added: Other comprehensive income
+Added: Balance at August 1, 2020
Balance at January 30, 2021
4 unchanged sentences
Other comprehensive (loss) income
−Removed: Balance at May 1, 2021
+Added: Balance at July 31, 2021
Balance at February 1, 2020
2 unchanged sentences
Amounts reclassified from accumulated other comprehensive loss
+Added: Tax benefit (3)
Net reclassifications
Other comprehensive (loss) income
−Removed: Balance at May 2, 2020
+Added: Balance at August 1, 2020
(1) Amounts reclassified are included in other income, net.
2 unchanged sentences
Refer to Note 1 to the condensed consolidated financial statements for additional information related to derivative financial instruments .
+Added: (3) Includes approximately $ 0.5 million of expense related to a valuation allowance on net deferred taxes, including those related to other comprehensive income, for the Company’s Canadian subsidiary.
Note 12 Share-Based Compensation
−Removed: The Company recognized share-based compensation expense of $ 2.4 million for both the thirteen weeks ended May 1, 2021 and May 2, 2020.
−Removed: The Company had net issuances of 327,268 and 414,121 shares of common stock during the thirteen weeks ended May 1, 2021 and May 2, 2020, respectively, for restricted stock grants, stock performance awards issued to employees and common and restricted stock grants issued to non-employee directors, net of forfeitures and shares withheld to satisfy the tax withholding requirement.
+Added: The Company recognized share-based compensation expense of $ 3.0 and $ 2.1 million during the thirteen weeks and $ 5.4 million and $ 4.4 million during the twenty-six weeks ended July 31, 2021 and August 1, 2020, respectively.
+Added: The Company had net (repurchases) issuances of ( 25,408 ) and 3,400 shares of common stock during the thirteen weeks ended July 31, 2021 and August 1, 2020, respectively, for restricted stock grants, stock performance awards issued to employees and common and restricted stock grants issued to non-employee directors, net of forfeitures and shares withheld to satisfy the tax withholding requirement.
+Added: During the twenty-six weeks ended July 31, 2021 and August 1, 2020, the Company had net issuances of 301,860 and 417,521 shares of common stock, respectively, related to the share-based plans.
Restricted Stock
−Removed: The following table summarizes restricted stock activity for the periods ended May 1, 2021 and May 2, 2020:
+Added: The following table summarizes restricted stock activity for the periods ended July 31, 2021 and August 1, 2020:
Thirteen Weeks Ended
Thirteen Weeks Ended
+Added: July 31, 2021
+Added: August 1, 2020
of Restricted
of Restricted
+Added: July 31, 2021
+Added: August 1, 2020
+Added: Twenty-Six Weeks Ended
+Added: Twenty-Six Weeks Ended
+Added: July 31, 2021
+Added: August 1, 2020
+Added: of Restricted
+Added: of Restricted
January 30, 2021
February 1, 2020
−Removed: Of the 562,506 restricted shares granted during the thirteen weeks ended May 1, 2021, 20,000 shares have a cliff-vesting term of two years and 542,506 shares have a graded-vesting term of three years , with 50 % vesting after two years and 50 % after three years .
−Removed: All of the restricted shares granted during the thirteen weeks ended May 2, 2020 have a graded-vesting term of three years , with 50 % vesting after two years and 50 % after three years .
+Added: July 31, 2021
+Added: August 1, 2020
+Added: Of the 6,410 restricted shares granted during the thirteen weeks ended July 31, 2021, 4,910 shares have a cliff-vesting term of one year and 1,500 shares have a graded-vesting term of three years , with 50 % vesting after two years and 50 % after three years .
+Added: Of the 568,916 restricted shares granted during the twenty-six weeks ended July 31, 2021, 4,910 shares have a cliff-vesting term of one year , 20,000 shares have a cliff-vesting term of two years and 544,006 shares have a graded-vesting term of three years , with 50 % vesting after two years and 50 % after three years .
+Added: All of the restricted shares granted during the thirteen weeks ended August 1, 2020 have a cliff-vesting term of one year .
+Added: Of the 563,431 restricted shares granted during the twenty-six weeks ended August 1, 2020, 12,748 shares have a cliff-vesting term of one year and 550,683 shares have a graded-vesting term of three years , with 50 % vesting after two years and 50 % after three years .
Share-based compensation expense for graded-vesting grants is recognized ratably over the respective vesting periods.
Performance Share Awards
−Removed: During the thirteen weeks ended May 1, 2021, the Company granted performance share awards for a targeted 175,500 shares, with a weighted-average grant date fair value of $ 18.63 in connection with the 2020 performance award.
−Removed: There were no performance-based share awards granted by the Company during the thirteen weeks ended May 2, 2020.
+Added: During the twenty-six weeks ended July 31, 2021, the Company granted performance share awards for a targeted 175,500 shares, with a weighted-average grant date fair value of $ 18.63 in connection with the 2020 performance award.
+Added: There were no performance-based share awards granted by the Company during the thirteen weeks ended July 31, 2021 or for the twenty-six weeks ended August 1, 2020.
Vesting of performance-based awards is generally dependent upon the financial performance of the Company and the attainment of certain financial goals during the three-year period following the grant.
1 unchanged sentence
Compensation expense is recognized based on the fair value of the award and the anticipated number of shares or units to be awarded for each tranche in accordance with the vesting schedule of the units over the three-year service period.
−Removed: During the thirteen weeks ended May 1, 2021, the Company granted long-term incentive awards payable in cash for the 2021-2023 performance period, with a target value of $ 6.5 million and a maximum value of $ 13.0 million.
+Added: During the twenty-six weeks ended July 31, 2021, the Company granted long-term incentive awards payable in cash for the 2021-2023 performance period, with a target value of $ 6.5 million and a maximum value of $ 13.0 million.
These awards, which vest after a three-year period, are dependent upon the attainment of certain financial goals of the Company for each of the three years and individual achievement of strategic initiatives over the cumulative period of the award.
The estimated value of the award, which is reflected within other liabilities on the condensed consolidated balance sheets, is being accrued over the three-year performance period.
+Added: There were no long-term incentive awards granted by the Company during the thirteen weeks ended July 31, 2021 or during the twenty-six weeks ended August 1, 2020.
Restricted Stock Units for Non-Employee Directors
5 unchanged sentences
Expense for the dividend equivalents is recognized at fair value when the dividend equivalents are granted.
−Removed: The Company granted 1,712 and 8,309 to non-employee directors for dividend equivalents, during the thirteen weeks ended May 1, 2021 and May 2, 2020, respectively, with weighted-average grant date fair values of $ 20.91 and $ 3.86 , respectively.
+Added: The Company granted 40,729 and 106,222 RSUs to non-employee directors, including 1,449 and 4,238 for dividend equivalents, during the thirteen weeks ended July 31, 2021 and August 1, 2020, respectively, with weighted-average grant date fair values of $ 27.48 and $ 10.50 , respectively.
+Added: The Company granted 42,441 and 114,531 RSUs to non-employee directors, including 3,161 and 12,548 for dividend equivalents, during the twenty-six weeks ended July 31, 2021 and August 1, 2020, respectively, with weighted-average grant date fair values of $ 27.21 and $ 10.02 , respectively.
Note 13 Retirement and Other Benefit Plans
5 unchanged sentences
($ thousands)
+Added: July 31, 2021
+Added: August 1, 2020
+Added: July 31, 2021
+Added: August 1, 2020
Interest cost
3 unchanged sentences
Prior service income
+Added: Settlement cost
+Added: Curtailment gain
Total net periodic benefit income
+Added: Pension Benefits
+Added: Other Postretirement Benefits
+Added: Twenty-Six Weeks Ended
+Added: Twenty-Six Weeks Ended
+Added: ($ thousands)
+Added: July 31, 2021
+Added: August 1, 2020
+Added: July 31, 2021
+Added: August 1, 2020
+Added: Interest cost
+Added: Expected return on assets
+Added: Amortization of:
+Added: Actuarial loss (gain)
+Added: Prior service income
+Added: Settlement cost
+Added: Curtailment gain
+Added: Total net periodic benefit income
The non-service cost components of net periodic benefit income are included in other income, net in the condensed consolidated statements of earnings (loss).
21 unchanged sentences
The Deferred Compensation Plan permits the deferral of up to 50 % of base salary and 100 % of compensation received under the Company’s annual incentive plan.
−Removed: The deferrals are held
−Removed: in a separate trust, which has been established by the Company to administer the Deferred Compensation Plan.
+Added: The deferrals are held in a separate trust, which has been established by the Company to administer the Deferred Compensation Plan.
The assets of the trust are subject to the claims of the Company’s creditors in the event that the Company becomes insolvent.
9 unchanged sentences
Gains and losses resulting from changes in the fair value of the PSUs are presented in selling and administrative expenses in the Company’s condensed consolidated statements of earnings (loss).
−Removed: The fair value of each PSU is based on an unadjusted quoted market price for the Company’s common stock in an active market with sufficient volume and frequency on each measurement date (Level 1).
+Added: The fair value of each PSU
+Added: is based on an unadjusted quoted market price for the Company’s common stock in an active market with sufficient volume and frequency on each measurement date (Level 1).
Restricted Stock Units for Non-Employee Directors
7 unchanged sentences
Fair value adjustments on the mandatory purchase obligation are recorded as interest expense.
−Removed: During the thirteen weeks ended May 1, 2021 and May 2, 2020, the Company recorded fair value adjustments of $ 6.4 million and $ 3.2 million, respectively.
+Added: During the thirteen weeks ended July 31, 2021 and August 1, 2020, the Company recorded fair value adjustments of $ 7.1 million and $ 6.6 million, respectively.
+Added: During the twenty-six weeks ended July 31, 2021 and August 1, 2020, the Company recorded fair value adjustments of $ 13.5 million and $ 9.8 million, respectively.
Refer to further discussion of the mandatory purchase obligation in Note 5 to the condensed consolidated financial statements.
−Removed: The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis at May 1, 2021, May 2, 2020 and January 30, 2021.
−Removed: During the thirteen weeks ended May 1, 2021 and May 2, 2020, there were no transfers into or out of Level 3.
+Added: The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis at July 31, 2021, August 1, 2020 and January 30, 2021.
+Added: During the twenty-six weeks ended July 31, 2021 and August 1, 2020, there were no transfers into or out of Level 3.
Fair Value Measurements
1 unchanged sentence
Asset (Liability)
+Added: July 31, 2021:
Cash equivalents – money market funds
4 unchanged sentences
Mandatory purchase obligation - Blowfish Malibu
+Added: August 1, 2020:
Cash equivalents – money market funds
14 unchanged sentences
Factors the Company considers important that could trigger an impairment review include underperformance relative to historical or projected future operating results, a significant change in the manner of the use of the asset, or a negative industry or economic trend.
−Removed: When the Company determines that the carrying value of long-lived assets may not be recoverable based upon the existence of one or more of the aforementioned factors, impairment is measured based on a projected discounted cash flow method.
+Added: When the Company determines that the carrying value of long-lived assets may not be recoverable based upon the existence
+Added: of one or more of the aforementioned factors, impairment is measured based on a projected discounted cash flow method.
Certain factors, such as estimated store sales and expenses, used for this nonrecurring fair value measurement are considered Level 3 inputs as defined by FASB ASC Topic 820, Fair Value Measurement .
−Removed: Long-lived assets held and used with a carrying amount of $ 571.5 million and $ 726.2 million at May 1, 2021 and May 2, 2020, respectively, were assessed for indicators of impairment and written down to their fair value.
+Added: Long-lived assets held and used with a carrying amount of $ 551.8 million and $ 684.9 million at July 31, 2021 and August 1, 2020, respectively, were assessed for indicators of impairment and written down to their fair value.
This assessment resulted in the following impairment charges, primarily for operating lease right-of-use assets, leasehold improvements and furniture and fixtures in the Company’s retail stores.
−Removed: Higher impairment charges were recorded in the thirteen weeks ended May 1, 2020, reflecting the deteriorating economic conditions driven in part by the COVID-19 pandemic, as further discussed in Note 5 and Note 9 to the condensed consolidated financial statements.
+Added: Higher impairment charges were recorded in the twenty-six weeks ended August 1, 2020, reflecting the deteriorating economic conditions driven in part by the COVID-19 pandemic, as further discussed in Note 5 and Note 9 to the condensed consolidated financial statements.
Thirteen Weeks Ended
+Added: Twenty-Six Weeks Ended
($ thousands)
+Added: July 31, 2021
+Added: August 1, 2020
+Added: July 31, 2021
+Added: August 1, 2020
Long-Lived Asset Impairment Charges
5 unchanged sentences
The carrying amounts and fair values of the Company’s other financial instruments subject to fair value disclosures are as follows:
+Added: July 31, 2021
+Added: August 1, 2020
January 30, 2021
1 unchanged sentence
Borrowings under revolving credit agreement
+Added: Current portion of long-term debt
Long-term debt
(1) Excludes unamortized debt issuance costs and debt discount
−Removed: The fair value of borrowings under the revolving credit agreement approximates its carrying value due to its short-term nature (Level 1).
+Added: The fair values of borrowings under the revolving credit agreement and current portion of long-term debt approximate their carrying values due to the short-term nature of these borrowings (Level 1).
The fair value of the Company’s long-term debt was based upon quoted prices in an inactive market as of the end of the respective periods (Level 2).
1 unchanged sentence
The Company’s consolidated effective tax rate can vary considerably from period to period, depending on a number of factors.
−Removed: The Company’s consolidated effective tax rates were 35.5 % and 19.9 % for the thirteen weeks ended May 1, 2021 and May 2, 2020, respectively.
−Removed: The higher tax rate for the thirteen weeks ended May 1, 2021 primarily reflects the non-deductibility of losses at the Company’s Canadian division, which were driven by exit-related costs associated with Naturalizer retail stores.
−Removed: The tax rate was partially offset by discrete tax benefits totaling $ 1.2 million.
−Removed: During the thirteen weeks ended May 2, 2020, the Company's effective tax rate was impacted by several discrete tax items, including the non-deductibility of a portion of the Company's intangible asset impairment charges, the provision of a valuation allowance related to net deferred tax assets of its Canadian business division and the incremental tax provision related to share-based compensation.
−Removed: As of May 1, 2021, no deferred taxes have been provided on the accumulated unremitted earnings of the Company’s foreign subsidiaries that are not subject to United States income tax, beyond the amounts recorded for the one-time transition tax for the mandatory deemed repatriation of cumulative foreign earnings, as required by the Tax Cuts and Jobs Act.
+Added: The Company’s consolidated effective tax rates were a provision of 30.3 % and a benefit of 9.4 % for the thirteen weeks ended July 31, 2021 and August 1, 2020, respectively.
+Added: The higher tax rate for the thirteen weeks ended July 31, 2021 was driven by discrete tax adjustments totaling $ 2.9 million, inclusive of $ 3.3 million of incremental valuation allowances on the Company’s deferred tax assets, as the Company is in a full valuation allowance position for federal, state and certain international jurisdictions.
+Added: During the thirteen weeks ended August 1, 2020, the Company's effective tax rate was impacted by several discrete tax items totaling $ 2.7 million, including the non-deductibility of losses at the Company’s Canadian business division.
+Added: Offsetting this impact was a benefit associated with the CARES Act, which permits the Company to carry back 2020 losses to years with a higher federal tax rate.
+Added: The Company’s consolidated effective tax rate was a provision of 31.1 % for the twenty-six weeks ended July 31, 2021, compared to a benefit of 19.1 % for the twenty-six weeks ended August 1, 2020.
+Added: The higher tax rate for the twenty-six weeks ended July 31, 2021 primarily reflects the incremental valuation allowances recorded in the second quarter, as described above, and the non-deductibility of losses at the Company’s Canadian business division, which were driven by exit-related costs associated with Naturalizer retail stores during the first quarter.
+Added: The Company's effective tax rate for the twenty-six weeks ended August 1, 2020 was impacted by several discrete tax items, including the non-deductibility of a portion of the Company's intangible asset impairment charges, the provision of a valuation allowance related to certain
+Added: state and Canada deferred tax assets, and the incremental tax provision related to the vesting of stock awards.
+Added: Offsetting these impacts was a benefit associated with the CARES ACT, which permits the Company to carry back 2020 losses to years with a higher federal tax rate.
+Added: As of July 31, 2021, no deferred taxes have been provided on the accumulated unremitted earnings of the Company’s foreign subsidiaries that are not subject to United States income tax, beyond the amounts recorded for the one-time transition tax for the mandatory deemed repatriation of cumulative foreign earnings, as required by the Tax Cuts and Jobs Act.
The Company periodically evaluates its foreign investment opportunities and plans, as well as its foreign working capital needs, to determine the level of investment required and, accordingly, determines the level of foreign earnings that is considered indefinitely reinvested.
9 unchanged sentences
As the treatment of the on-site source areas progresses, the Company expects to convert the pump and treat system to a passive treatment barrier system.
−Removed: Off-site groundwater concentrations have been reducing over time since installation of the pump and treat system in 2000
−Removed: and injection of clean water beginning in 2003.
+Added: Off-site groundwater concentrations have been reducing over time since installation of the pump and treat system in 2000 and injection of clean water beginning in 2003.
However, localized areas of contaminated bedrock just beyond the property line continue to impact off-site groundwater.
6 unchanged sentences
The Company continues to work with outside experts and the oversight authorities on the off-site work plan.
−Removed: The cumulative expenditures for both on-site and off-site remediation through May 1, 2021 were $ 32.0 million.
+Added: The cumulative expenditures for both on-site and off-site remediation through July 31, 2021 were $ 32.1 million.
The Company has recovered a portion of these expenditures from insurers and other third parties.
−Removed: The reserve for the anticipated future remediation activities at May 1, 2021 is $ 9.9 million, of which $ 8.9 million is recorded within other liabilities and $ 1.0 million is recorded within other accrued expenses.
+Added: The reserve for the anticipated future remediation activities at July 31, 2021 is $ 9.9 million, of which $ 9.0 million is recorded within other liabilities and $ 0.9 million is recorded within other accrued expenses.
Of the total $ 9.9 million reserve, $ 5.1 million is for off-site remediation and $ 4.8 million is for on-site remediation.
The liability for the on-site remediation was discounted at 4.8 %.
−Removed: On an undiscounted basis, the on-site remediation liability would be $ 13.6 million as of May 1, 2021.
+Added: On an undiscounted basis, the on-site remediation liability would be $ 13.6 million as of July 31, 2021.
The Company expects to spend approximately $ 0.5 million in 2 0 21 , $ 0.1 million in each of the following four years and $ 12.7 million in the aggregate thereafter related to the on-site remediation.
8 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.