CALERES INC 10-K

ITEM 8 FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA Management’s Report on Internal Control Over Financial Reporting Our management is responsible for establishing and maintaining adequate internal control over financial reporting as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f). Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 Framework). Based on our evaluation, our principal executive officer and principal financial officer have concluded that the Company’s internal control over financial reporting was effective as of January 29, 2022. The effectiveness of our internal control over financial reporting as of January 29, 2022 has been audited by Ernst & Young LLP, an independent registered public accounting firm, as stated in its report, which is included herein. ​ ​ 38 Table of Contents Report of Independent Registered Public Accounting Firm To the Shareholders and Board of Directors of Caleres, Inc. Opinion on Internal Control Over Financial Reporting We have audited Caleres, Inc.’s internal control over financial reporting as of January 29, 2022, based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 Framework) (the COSO criteria). In our opinion, Caleres, Inc. (the Company) maintained, in all material respects, effective internal control over financial reporting as of January 29, 2022, based on the COSO criteria. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of Caleres, Inc. as of January 29, 2022 and January 30, 2021, the related consolidated statements of earnings (loss), comprehensive income (loss), shareholders’ equity and cash flows for each of the three years in the period ended January 29, 2022, and the related notes and financial statement schedule listed in the Index at Item 15(a), and our report dated March 28, 2022 expressed an unqualified opinion thereon. Basis for Opinion The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. ​ Definition and Limitations of Internal Control Over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. ​ /s/ Ernst & Young LLP St. Louis, Missouri March 28, 2022 39 Table of Contents Report of Independent Registered Public Accounting Firm To the Shareholders and Board of Directors of Caleres, Inc. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Caleres, Inc. (the Company) as of January 29, 2022 and January 30, 2021, the related consolidated statements of earnings (loss), comprehensive income (loss), shareholders’ equity and cash flows for each of the three years in the period ended January 29, 2022, and the related notes and financial statement schedule listed in the Index at Item 15(a) (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at January 29, 2022 and January 30, 2021, and the results of its operations and its cash flows for each of the three years in the period ended January 29, 2022, in conformity with U.S. generally accepted accounting principles. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of January 29, 2022, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 Framework) and our report dated March 28, 2022 expressed an unqualified opinion thereon. Basis for Opinion These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the account or disclosure to which it relates. 40 Table of Contents ​ Inventory Markdown Reserve Description of the Matter ​ As described in Note 1 and Note 8, the Company had inventories of $596.8 million as of January 29, 2022 which included finished goods of $579.4 million, net of related reserves of $30.5 million. The Company provides markdown reserves to reduce the carrying values of inventories. In determining markdown reserves, the Company considers recent and forecasted sales prices, historical gross profit rates, the length of time the product is held in inventory, quantities of various product styles contained in inventory as well as demand, among other factors. ​ Auditing the Company’s Brand Portfolio markdown reserves was complex and involved a high degree of subjectivity, as it included assessing the significant assumptions, including forecasted sales prices, gross profit rates and demand. ​ ​ ​ ​ ​ ​ How We Addressed the Matter in Our Audit ​ We obtained an understanding, evaluated the design, and tested the operating effectiveness of controls over the Company's markdown reserves determination process. This included controls over the Company’s review of the significant assumptions underlying the markdown reserves estimate, as outlined above. ​ ​ ​ ​ ​ We performed audit procedures which included, among other procedures, testing the accuracy and completeness of the underlying data used in the estimation calculations and evaluating significant assumptions, including forecasted sales prices, gross profit rates and demand. For example, we compared recent sales and gross margins of inventory items on-hand at year-end, performed a retrospective review analysis comparing sales activity in the current year to the inventory markdown reserves estimated by the Company in the prior year to evaluate management’s ability to accurately estimate the markdown reserves, and developed an independent expectation of the markdown reserves using historical activity and compared our independent expectation to the markdown reserves recorded. In addition, we performed inquiries of the Company’s management to evaluate the Company’s estimate of the markdown reserves. ​ ​ /s/ Ernst & Young LLP We have served as the Company’s auditor since 1917. St. Louis, Missouri March 28, 2022 ​ ​ ​ ​ ​ ​ ​ 41 Table of Contents ​ ​ Consolidated Balance Sheets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ($ thousands) January 29, 2022 January 30, 2021 Assets ​ ​ Current assets: ​ ​ ​ Cash and cash equivalents ​ $ 30,115 ​ $ 88,295 Receivables, net of allowances of $ 29,930 in 2021 and $ 31,971 in 2020 ​ 122,236 ​ 126,994 Inventories, net of adjustment to last-in, first-out cost of $ 1,255 in 2021 and $ 793 in 2020 ​ 596,807 ​ 487,955 Income taxes ​ 33,073 ​ 33,925 Property and equipment, held for sale ​ ​ 5,455 ​ ​ — Prepaid expenses and other current assets ​ 48,790 ​ 45,387 Total current assets ​ 836,476 ​ 782,556 ​ ​ ​ ​ ​ ​ ​ Prepaid pension costs ​ 99,139 ​ 88,833 Lease right-of-use assets ​ 503,430 ​ 554,303 Property and equipment, net ​ 150,238 ​ 172,437 Goodwill and intangible assets, net ​ 227,503 ​ 240,071 Other assets ​ 27,140 ​ 28,850 Total assets ​ $ 1,843,926 ​ $ 1,867,050 ​ ​ ​ ​ ​ ​ ​ Liabilities and Equity ​ ​ Current liabilities: ​ ​ Borrowings under revolving credit agreement ​ $ 290,000 ​ $ 250,000 Mandatory purchase obligation - Blowfish Malibu ​ ​ — ​ ​ 39,134 Trade accounts payable ​ 331,470 ​ 280,501 Employee compensation and benefits ​ 88,034 ​ 48,641 Income taxes ​ 22,622 ​ 5,069 Lease obligations ​ 128,495 ​ 153,060 Other accrued expenses ​ 164,992 ​ 129,104 Total current liabilities ​ 1,025,613 ​ 905,509 ​ ​ ​ ​ ​ ​ ​ Other liabilities: ​ ​ Noncurrent lease obligations ​ 452,909 ​ 518,942 Long-term debt ​ — ​ 198,851 Income taxes ​ 2,464 ​ 5,038 Deferred income taxes ​ 14,731 ​ 8,244 Other liabilities ​ 24,822 ​ 26,612 Total other liabilities ​ 494,926 ​ 757,687 ​ ​ ​ ​ ​ ​ ​ Equity: ​ ​ Preferred stock, $ 1.00 par value, 1,000,000 shares authorized; no shares outstanding ​ — ​ — Common stock, $ 0.01 par value, 100,000,000 shares authorized; 37,635,145 and 37,966,204 shares outstanding, net of 8,451,650 and 8,120,591 treasury shares in 2021 and 2020, respectively ​ 376 ​ 380 Additional paid-in capital ​ 168,830 ​ 160,446 Accumulated other comprehensive loss ​ ( 8,606 ) ​ ( 9,136 ) Retained earnings ​ 157,970 ​ 48,557 Total Caleres, Inc. shareholders’ equity ​ 318,570 ​ 200,247 Noncontrolling interests ​ 4,817 ​ 3,607 Total equity ​ 323,387 ​ 203,854 Total liabilities and equity ​ $ 1,843,926 ​ $ 1,867,050 ​ See notes to consolidated financial statements. ​ 42 Table of Contents Consolidated Statements of Earnings (Loss) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ($ thousands, except per share amounts) 2021 2020 2019 Net sales $ 2,777,604 ​ $ 2,117,070 ​ $ 2,921,562 Cost of goods sold 1,550,287 ​ 1,330,021 ​ 1,737,202 Gross profit 1,227,317 ​ 787,049 ​ 1,184,360 Selling and administrative expenses 1,008,028 ​ 889,489 ​ 1,065,760 Impairment of goodwill and intangible assets — ​ 286,524 ​ — Restructuring and other special charges, net 13,482 ​ 96,694 ​ 14,787 Operating earnings (loss) 205,807 ​ ( 485,658 ) ​ 103,813 Interest expense, net ( 30,930 ) ​ ( 48,287 ) ​ ( 33,123 ) Loss on early extinguishment of debt ( 1,011 ) ​ — ​ — Other income, net 15,378 ​ 16,834 ​ 7,903 Earnings (loss) before income taxes 189,244 ​ ( 517,111 ) ​ 78,593 Income tax (provision) benefit ( 51,081 ) ​ 78,117 ​ ( 16,511 ) Net earnings (loss) 138,163 ​ ( 438,994 ) ​ 62,082 Net earnings (loss) attributable to noncontrolling interests 1,144 ​ 120 ​ ( 737 ) Net earnings (loss) attributable to Caleres, Inc. 137,019 ​ ( 439,114 ) ​ 62,819 ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic earnings (loss) per common share attributable to Caleres, Inc. shareholders $ 3.59 ​ $ ( 11.80 ) ​ $ 1.53 ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted earnings (loss) per common share attributable to Caleres, Inc. shareholders $ 3.56 ​ $ ( 11.80 ) ​ $ 1.53 ​ See notes to consolidated financial statements. ​ ​ 43 Table of Contents Consolidated Statements of Comprehensive Income (Loss) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ($ thousands) 2021 2020 2019 Net earnings (loss) $ 138,163 ​ $ ( 438,994 ) ​ $ 62,082 Other comprehensive income (loss) ("OCI"), net of tax: ​ ​ ​ Foreign currency translation adjustment ( 611 ) ​ 637 ​ ( 607 ) Pension and other postretirement benefits adjustments 1,207 ​ 22,146 ​ ( 116 ) Derivative financial instruments — ​ 92 ​ 516 Other comprehensive income (loss), net of tax 596 ​ 22,875 ​ ( 207 ) Comprehensive income (loss) 138,759 ​ ( 416,119 ) ​ 61,875 Comprehensive income (loss) attributable to noncontrolling interests 1,210 ​ 288 ​ ( 702 ) Comprehensive income (loss) attributable to Caleres, Inc. $ 137,549 ​ $ ( 416,407 ) ​ $ 62,577 ​ See notes to consolidated financial statements. ​ ​ 44 Table of Contents Consolidated Statements of Cash Flows ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ($ thousands) 2021 2020 2019 Operating Activities ​ ​ ​ Net earnings (loss) ​ $ 138,163 ​ $ ( 438,994 ) ​ $ 62,082 Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: ​ ​ ​ ​ Depreciation ​ 34,069 ​ 41,644 ​ 46,014 Amortization of capitalized software ​ 5,693 ​ 5,911 ​ 6,486 Amortization of intangible assets ​ 12,568 ​ 12,984 ​ 13,062 Amortization of debt issuance costs and debt discount ​ 874 ​ 1,359 ​ 7,261 Fair value adjustments to Blowfish mandatory purchase obligation ​ ​ 15,424 ​ ​ 23,934 ​ ​ 5,955 Blowfish mandatory purchase obligation ​ ​ ( 45,562 ) ​ ​ — ​ ​ — Loss on early extinguishment of debt ​ 1,011 ​ — ​ — Share-based compensation expense ​ 12,297 ​ 8,097 ​ 10,246 Loss on disposal of property and equipment ​ 472 ​ 2,890 ​ 1,469 Impairment charges for property, equipment, and lease right-of-use assets ​ 4,135 ​ 56,343 ​ 5,867 Impairment of goodwill and intangible assets ​ ​ — ​ ​ 286,524 ​ ​ — Provision/adjustment for expected credit losses ​ ​ ( 2,242 ) ​ ​ 10,575 ​ ​ 773 Deferred income taxes ​ 6,487 ​ ( 37,034 ) ​ 9,796 Changes in operating assets and liabilities: ​ ​ ​ Receivables ​ 7,002 ​ 22,465 ​ 28,768 Inventories ​ ( 108,772 ) ​ 130,796 ​ 63,430 Prepaid expenses and other current and noncurrent assets ​ ( 11,843 ) ​ ( 12,400 ) ​ ( 16,833 ) Trade accounts payable ​ 50,936 ​ 13,373 ​ ( 46,106 ) Accrued expenses and other liabilities ​ 32,656 ​ 30,181 ​ ( 27,304 ) Income taxes, net ​ 15,831 ​ ( 32,600 ) ​ ( 517 ) Other, net ​ ( 758 ) ​ 305 ​ 337 Net cash provided by operating activities ​ 168,441 ​ 126,353 ​ 170,786 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investing Activities ​ ​ ​ Purchases of property and equipment ​ ( 18,393 ) ​ ( 16,786 ) ​ ( 44,533 ) Disposals of property and equipment ​ — ​ — ​ 636 Capitalized software ​ ( 5,752 ) ​ ( 5,274 ) ​ ( 5,619 ) Net cash used for investing activities ​ ( 24,145 ) ​ ( 22,060 ) ​ ( 49,516 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financing Activities ​ ​ ​ Borrowings under revolving credit agreement ​ 632,000 ​ 438,500 ​ 288,500 Repayments under revolving credit agreement ​ ( 592,000 ) ​ ( 463,500 ) ​ ( 348,500 ) Redemption of senior notes ​ ​ ( 200,000 ) ​ ​ — ​ ​ — Dividends paid ​ ( 10,648 ) ​ ( 10,764 ) ​ ( 11,422 ) Blowfish Malibu mandatory purchase obligation ​ ​ ( 8,996 ) ​ ​ — ​ ​ — Debt issuance costs ​ ( 1,190 ) ​ — ​ — Acquisition of treasury stock ​ ( 16,965 ) ​ ( 23,348 ) ​ ( 33,424 ) Issuance of common stock under share-based plans, net ​ ( 3,910 ) ​ ( 1,135 ) ​ ( 2,644 ) Contributions by noncontrolling interests, net ​ — ​ 139 ​ 2,500 Other ​ ( 676 ) ​ ( 1,198 ) ​ ( 1,342 ) Net cash used for financing activities ​ ( 202,385 ) ​ ( 61,306 ) ​ ( 106,332 ) Effect of exchange rate changes on cash and cash equivalents ​ ( 91 ) ​ 90 ​ 80 (Decrease) increase in cash and cash equivalents ​ ( 58,180 ) ​ 43,077 ​ 15,018 Cash and cash equivalents at beginning of period ​ 88,295 ​ 45,218 ​ 30,200 Cash and cash equivalents at end of period ​ $ 30,115 ​ $ 88,295 ​ $ 45,218 ​ See notes to consolidated financial statements, including the supplemental disclosures on cash flows in Note 1. 45 Table of Contents ​ Consolidated Statements of Shareholders’ Equity ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other ​ ​ ​ ​ Total ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive ​ ​ ​ ​ Caleres, Inc. ​ Non- ​ ​ ​ ($ thousands, except number of shares ​ Common Stock ​ Additional ​ (Loss) ​ Retained ​ Shareholders’ ​ controlling ​ ​ ​ and per share amounts) ​ Shares ​ Dollars ​ Paid-In Capital ​ Income ​ Earnings ​ Equity ​ Interests ​ Total Equity BALANCE FEBRUARY 2, 2019 41,886,562 ​ $ 419 ​ $ 145,889 ​ $ ( 31,601 ) ​ $ 519,346 ​ $ 634,053 ​ $ 1,382 ​ $ 635,435 Net earnings (loss) ​ ​ ​ ​ ​ ​ ​ ​ 62,819 ​ 62,819 ​ ( 737 ) ​ 62,082 Foreign currency translation adjustment ​ ​ ​ ​ ​ ​ ​ ​ ​ ( 642 ) ​ ​ ​ ( 642 ) ​ 35 ​ ( 607 ) Unrealized gain on derivative financial instruments, net of tax of $ 127 ​ ​ ​ ​ ​ ​ 516 ​ ​ ​ 516 ​ ​ 516 Pension and other postretirement benefits adjustments, net of tax of $ 42 ​ ​ ​ ​ ​ ​ ( 116 ) ​ ​ ​ ( 116 ) ​ ​ ( 116 ) Comprehensive (loss) income ​ ​ ​ ​ ​ ​ ( 242 ) ​ 62,819 ​ 62,577 ​ ( 702 ) ​ 61,875 Contributions by noncontrolling interests ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2,500 ​ ​ 2,500 Dividends ($ 0.28 per share) ​ ​ ​ ​ ​ ​ ​ ​ ( 11,422 ) ​ ( 11,422 ) ​ ​ ( 11,422 ) Acquisition of treasury stock ( 1,704,240 ) ​ ( 17 ) ​ ​ ​ ​ ​ ( 33,407 ) ​ ( 33,424 ) ​ ​ ( 33,424 ) Issuance of common stock under share-based plans, net 214,435 ​ 2 ​ ( 2,646 ) ​ ​ ​ ​ ​ ( 2,644 ) ​ ​ ( 2,644 ) Cumulative-effect adjustment from adoption of ASC 842 ​ ​ ​ ​ ​ ​ ​ ​ ( 13,436 ) ​ ( 13,436 ) ​ ​ ( 13,436 ) Share-based compensation expense ​ ​ ​ ​ 10,246 ​ ​ ​ ​ ​ 10,246 ​ ​ 10,246 BALANCE FEBRUARY 1, 2020 40,396,757 ​ $ 404 ​ $ 153,489 ​ $ ( 31,843 ) ​ $ 523,900 ​ $ 645,950 ​ $ 3,180 ​ $ 649,130 Net (loss) earnings ​ ​ ​ ​ ​ ​ ​ ​ ( 439,114 ) ​ ( 439,114 ) ​ 120 ​ ( 438,994 ) Foreign currency translation adjustment ​ ​ ​ ​ ​ ​ 469 ​ ​ ​ 469 ​ 168 ​ 637 Unrealized gain on derivative financial instruments, net of tax of $ 31 ​ ​ ​ ​ ​ ​ 92 ​ ​ ​ 92 ​ ​ ​ 92 Pension and other postretirement benefits adjustments, net of tax of $ 7,671 ​ ​ ​ ​ ​ ​ 22,146 ​ ​ ​ 22,146 ​ ​ ​ 22,146 Comprehensive income (loss) ​ ​ ​ ​ ​ ​ 22,707 ​ ( 439,114 ) ​ ( 416,407 ) ​ 288 ​ ( 416,119 ) Contributions by noncontrolling interests, net ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 139 ​ 139 Dividends ($ 0.28 per share) ​ ​ ​ ​ ​ ​ ​ ​ ( 10,764 ) ​ ( 10,764 ) ​ ​ ​ ( 10,764 ) Acquisition of treasury stock ( 2,902,122 ) ​ ( 29 ) ​ ​ ​ ​ ​ ( 23,319 ) ​ ( 23,348 ) ​ ​ ​ ( 23,348 ) Issuance of common stock under share-based plans, net 471,569 ​ 5 ​ ( 1,140 ) ​ ​ ​ ​ ​ ( 1,135 ) ​ ​ ​ ( 1,135 ) Cumulative-effect adjustment from adoption of ASC 326 ​ ​ ​ ​ ​ ​ ​ ​ ( 2,146 ) ​ ( 2,146 ) ​ ​ ​ ( 2,146 ) Share-based compensation expense ​ ​ ​ ​ 8,097 ​ ​ ​ ​ ​ 8,097 ​ ​ ​ 8,097 BALANCE JANUARY 30, 2021 37,966,204 ​ $ 380 ​ $ 160,446 ​ $ ( 9,136 ) ​ $ 48,557 ​ $ 200,247 ​ $ 3,607 ​ $ 203,854 Net earnings ​ ​ ​ ​ ​ ​ ​ ​ 137,019 ​ 137,019 ​ 1,144 ​ 138,163 Foreign currency translation adjustment ​ ​ ​ ​ ​ ​ ( 677 ) ​ ​ ​ ( 677 ) ​ 66 ​ ( 611 ) Pension and other postretirement benefits adjustments, net of tax of $ 444 ​ ​ ​ ​ ​ ​ 1,207 ​ ​ ​ 1,207 ​ ​ ​ 1,207 Comprehensive income ​ ​ ​ ​ ​ ​ 530 ​ 137,019 ​ 137,549 ​ 1,210 ​ 138,759 Dividends ($ 0.28 per share) ​ ​ ​ ​ ​ ​ ​ ​ ( 10,648 ) ​ ( 10,648 ) ​ ​ ​ ( 10,648 ) Acquisition of treasury stock ( 661,265 ) ​ ( 7 ) ​ ​ ​ ​ ​ ( 16,958 ) ​ ( 16,965 ) ​ ​ ​ ( 16,965 ) Issuance of common stock under share-based plans, net 330,206 ​ 3 ​ ( 3,913 ) ​ ​ ​ ​ ​ ( 3,910 ) ​ ​ ​ ( 3,910 ) Share-based compensation expense ​ ​ ​ ​ 12,297 ​ ​ ​ ​ ​ 12,297 ​ ​ ​ 12,297 BALANCE JANUARY 29, 2022 37,635,145 ​ $ 376 ​ $ 168,830 ​ $ ( 8,606 ) ​ $ 157,970 ​ $ 318,570 ​ $ 4,817 ​ $ 323,387 ​ See notes to consolidated financial statements. ​ ​ 46 Table of Contents Notes to Consolidated Financial Statements 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ​ Organization Caleres, Inc., originally founded as Brown Shoe Company in 1878 and incorporated in 1913, is a global footwear company. The Company’s shares are traded under the “CAL” symbol on the New York Stock Exchange. The Company provides a broad offering of licensed, branded and private-label athletic, casual and dress footwear products to women, men and children. The footwear is sold at a variety of price points through multiple distribution channels both domestically and internationally. The Company currently operates 980 retail shoe stores in the United States, Canada, China and Guam under the Famous Footwear, Sam Edelman, Naturalizer and Allen Edmonds names. In addition, through its Brand Portfolio segment, the Company designs, sources, manufactures and markets footwear to retail stores domestically and internationally, including online retailers, national chains, department stores, mass merchandisers and independent retailers. Refer to Note 2 to the consolidated financial statements for additional information regarding the Company’s revenue by category and Note 7 for discussion of the Company’s business segments. The Company’s business is seasonal in nature due to consumer spending patterns with higher back-to-school and holiday season sales. Although the third fiscal quarter has historically accounted for a substantial portion of the Company’s earnings for the year, the Company is beginning to experience more equal distribution among the quarters. Certain prior period amounts in the notes to the consolidated financial statements have been reclassified to conform to the current period presentation. These reclassifications did not affect net earnings (loss) attributable to Caleres, Inc. ​ Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned and majority-owned subsidiaries, after the elimination of intercompany accounts and transactions. Noncontrolling Interests Noncontrolling interests in the Company’s consolidated financial statements result from the accounting for noncontrolling interests in partially-owned consolidated subsidiaries or affiliates. During 2019, the Company entered into a joint venture with Brand Investment Holding Limited ("Brand Investment Holding"), a member of the Gemkell Group, to sell branded footwear in China, including Sam Edelman, Naturalizer and other brands. The Company and Brand Investment Holding are each 50 % owners of the joint venture, which is named CLT Brand Solutions ("CLT"). During 2020, CLT was funded with $ 3.0 million in capital contributions, including $ 1.5 million from the Company and $ 1.5 million from Brand Investment Holding. In 2019, CLT was funded with $ 5.0 million in capital contributions, including $ 2.5 million from the Company and $ 2.5 million from Brand Investment Holding. Net sales and operating earnings of CLT were $ 17.5 million and $ 1.2 million, respectively, in 2021. Net sales and operating earnings were immaterial in both 2020 and 2019. The Company had a joint venture agreement with a subsidiary of C. banner International Holdings Limited (“CBI”) to market Naturalizer footwear in China. The Company was a 51 % owner of the joint venture (“B&H Footwear”), with CBI owning the other 49 %. The license enabling the joint venture to market the footwear expired in August 2017 and the parties are in the process of dissolving their joint venture arrangements. The Company consolidates CLT and B&H Footwear into its consolidated financial statements. Net earnings (loss) attributable to noncontrolling interests represents the share of net earnings or losses that are attributable to Brand Investment Holding and CBI. Transactions between the Company and the joint ventures have been eliminated in the consolidated financial statements. Accounting Period The Company’s fiscal year is the 52- or 53-week period ending the Saturday nearest to January 31. Fiscal years 2021, 2020 and 2019, all of which included 52 weeks, ended on January 29, 2022, January 30, 2021 and February 1, 2020, respectively. 47 Table of Contents Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. COVID-19 Pandemic The United St ates and global economies continue to be adversely affected by the coronavirus (“COVID-19”) pandemic. Variants of the virus have emerged, resulting in additional shutdowns and supply chain disruptions. During 2020, the Company’s financial results were adversely impacted by COVID-19 , driven by the temporary closure of all retail store locations for a portion of the first half of 2020 . The Company took actions to manage its resources conservatively to mitigate the adverse impact of the pandemic, including reductions in the workforce, associate furloughs for a significant portion of the workforce during the first half of 2020 , and reductions in salary for most remaining associates, as well as a reduction in the cash retainers for the Board of Directors through the end of the second quarter; reducing inventory purchases; reducing marketing expenses; and minimizing costs associated with the temporarily closed retail facilities. ​ In 2020, the Coronavirus Aid, Relief and Economic Security ("CARES") Act was enacted. The CARES Act includes a provision that allowed the Company to defer the employer portion of social security payroll tax payments that would have been paid between the enactment date and December 31, 2020, with 50% payable by December 31, 2021 and 50% payable by December 31, 2022. As of January 29, 2022, the Company has deferred $ 5.0 million of employer social security payroll taxes, which are payable by December 31, 2022 and presented in other accrued expenses on the consolidated balance sheet. As of January 30, 2021, the Company had deferred $ 9.4 million of employer social security payroll taxes, of which $ 4.7 million are presented in other accrued expenses and $ 4.7 million are presented in other liabilities on the consolidated balance sheet. In addition, as further discussed below and in Note 6 to the consolidated financial statements, the CARES Act permits the carryback of certain current operating losses to prior years, which resulted in an incremental tax benefit of $ 8.2 million in 2020. ​ Refer to further discussion of the impact of the pandemic on the Company’s business throughout this document, including Note 4, Note 6, Note 10 and Note 12 to the consolidated financial statements. ​ Cash and Cash Equivalents The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. The Company had an immaterial amount of restricted cash as of January 29, 2022 and January 30, 2021. Receivables In accordance with Accounting Standards Codification (“ASC”) Topic 326, Financial Instruments - Credit Losses, the Company estimates and records an expected lifetime credit loss on accounts receivable by utilizing credit ratings and other customer-related information, as well as historical loss experience. The allowance for expected credit losses is adjusted for current conditions and reasonable and supportable forecasts. The Company recognized an adjustment to the provision for expected credit losses of $ 2.2 million in 2021 and a provision for expected credit losses of $ 10.6 million and $ 0.8 million in 2020 and 2019, respectively. As a result of the COVID-19 pandemic, the financial results of many of the Company’s wholesale customers were adversely impacted due to store closures during the first half of 2020. Many of those customers also experienced deterioration in their credit ratings, which resulted in higher expected credit losses for the Company and an increase in expense in 2020, as well as a corresponding increase in uncollectible accounts written off in 2021. Customer allowances represent reserves against the Company’s wholesale customers’ accounts receivable for margin assistance, product returns, customer deductions and co-op advertising allowances. The Company estimates the reserves needed for margin assistance by reviewing inventory levels on the retail floors, sell-through rates, historical dilution, current gross margin levels and other performance indicators of our major retail customers. Product returns and customer deductions are estimated using historical experience and anticipated future trends. Co-op advertising allowances are estimated based on customer agreements. The Company recognized a provision for customer allowances of $ 26.1 million in 2020, $ 20.4 million in 2020 and $ 62.7 million in 2019. 48 Table of Contents Customer discounts represent reserves against the Company’s accounts receivable for discounts that wholesale customers may take based on meeting certain order, payment or return guidelines. The Company estimates the reserves needed for customer discounts based upon customer net sales and respective agreement terms. The Company recognized a provision for customer discounts of $ 7.5 million in 2021, $ 11.7 million in 2020 and $ 12.0 million in 2019. Inventories The Company values inventories at the lower of cost or market for approximately 89 % of consolidated inventories, which represents divisions using the last-in, first-out (“LIFO”) method. For the remaining portion, the Company’s inventories are valued at the lower of cost or net realizable value. For inventory valued at LIFO, the Company regularly reviews the inventory for excess, obsolete or impaired inventory, and writes it down to the lower of cost or market. An actual valuation of inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs at that time. If the first-in, first-out (“FIFO”) method had been used, consolidated inventories would have been $ 1.3 million and $ 0.8 million higher at January 29, 2022 and January 30, 2021, respectively. I n the fourth quarter of 2020, a reduction in inventory quantities associated with the ongoing exit of the Naturalizer retail business resulted in a liquidation of LIFO layers and reduction of the LIFO reserve of $ 2.9 million, with a corresponding reduction of cost of goods sold. Refer to Note 8 to the consolidated financial statements for additional information related to inventories. The Company applies judgment in determining the market value of inventory, which requires an estimate of net realizable value, including current and expected selling prices, costs to sell and normal gross profit rates. The method used to determine market value varies by business division, based on the unique operating models. At the Famous Footwear segment and certain operations within the Brand Portfolio segment, market value is determined based on net realizable value less an estimate of expected costs to be incurred to sell the product. Accordingly, the Company records markdowns when it becomes evident that inventory items will be sold at prices below cost. As a result, gross profit rates at the Famous Footwear segment and, to a lesser extent, the Brand Portfolio segment are lower than the initial markup during periods when permanent price reductions are taken to clear product. For the majority of the Brand Portfolio segment, the Company determines market value based upon the net realizable value of inventory less a normal gross profit rate. The Company believes these policies reflect the difference in operating models between the Famous Footwear and Brand Portfolio segments. Famous Footwear periodically runs promotional events to drive sales to clear seasonal inventories. The Brand Portfolio segment generally relies on permanent price reductions to clear slower-moving inventory. The determination of markdown reserves for the Brand Portfolio segment requires significant assumptions, estimates and judgments by management, and is subject to inherent uncertainties and subjectivity. In determining markdown reserves, management considers recent and forecasted sales prices, historical gross profit rates, the length of time the product is held in inventory and quantities of various product styles contained in inventory, as well as demand, among other factors. The ultimate amount realized from the sale of certain products could differ from management estimates. The costs of inventory, inbound freight and duties, markdowns, shrinkage and royalty expense are classified in cost of goods sold. Costs of warehousing and distribution are classified in selling and administrative expenses and are expensed as incurred. Such warehousing and distribution costs totaled $ 99.5 million, $ 84.0 million and $ 106.0 million in 2021, 2020 and 2019, respectively. Costs of overseas sourcing offices and other inventory procurement costs are reflected in selling and administrative expenses and are expensed as incurred. Such sourcing and procurement costs totaled $ 22.2 million, $ 18.6 million and $ 23.1 million in 2021, 2020 and 2019, respectively. The Company performs physical inventory counts or cycle counts on all merchandise inventory on hand throughout the year and adjusts the recorded balance to reflect the results. The Company records estimated shrinkage between physical inventory counts based on historical results. Computer Software Costs The Company capitalizes certain costs in other assets, including internal payroll costs incurred in connection with the development or acquisition of software for internal use. Other assets on the consolidated balance sheets include $ 14.1 million and $ 15.5 million of computer software costs as of January 29, 2022 and January 30, 2021, respectively, which are net of accumulated amortization of $ 130.3 million and $ 131.1 million as of the end of the respective periods. In addition, other assets on the consolidated balance sheets include $ 7.7 million and $ 9.6 million of implementation costs for 49 Table of Contents software as a service as of January 29, 2022 and January 30, 2021, respectively, which are net of accumulated amortization of $ 2.7 million and $ 0.6 million as of the end of the respective periods. Property and Equipment Property and equipment are stated at cost. Depreciation of property and equipment is provided over the estimated useful lives of the assets or the remaining lease terms, where applicable, using the straight-line method. Interest Expense Capitalized Interest Interest costs for major asset additions are capitalized during the construction or development period and amortized over the lives of the related assets. There was no interest capitalized in 2021 or 2020. The Company capitalized interest of $ 0.6 million in 2019 related to the new company-operated Brand Portfolio warehouse facilities in California. Interest Expense Interest expense includes interest for borrowings under both the Company’s short-term and long-term debt, net of amounts capitalized, as well as fair value adjustments on the mandatory purchase obligation from the acquisition of Blowfish Malibu, as further described in Note 4 to the consolidated financial statements. Interest expense also includes fees paid under the short-term revolving credit agreement for the unused portion of its line of credit, and the amortization of deferred debt issuance costs and debt discount. Goodwill and Intangible Assets Goodwill and intangible assets deemed to have indefinite lives are not amortized but are subject to annual impairment tests. In accordance with ASC 350, Intangibles-Goodwill and Other , the Company is permitted, but not required, to qualitatively assess indicators of a reporting unit’s fair value when it is unlikely that a reporting unit is impaired. If a quantitative test is deemed necessary, a discounted cash flow analysis is prepared to estimate fair value. A fair value-based test is applied at the reporting unit level, which is generally at or one level below the operating segment level. The test compares the fair value of the Company’s reporting units to the carrying value of those reporting units. This test requires significant assumptions, estimates and judgments by management, and is subject to inherent uncertainties and subjectivity. The fair value of the reporting unit is determined using both a market approach and discounted cash flow analysis. The market approach method includes the use of multiples of comparable publicly-traded companies. The discounted cash flow approach estimates the fair value of the reporting unit using projected cash flows of the reporting unit and a risk-adjusted discount rate to compute a net present value of future cash flows. Projected net sales, gross profit, selling and administrative expense, capital expenditures and working capital requirements are based on the Company’s internal projections. Discount rates reflect market-based estimates of the risks associated with the projected cash flows of the reporting units directly resulting from the use of its assets in its operations. Assumptions that market participants may use are also considered. The estimate of the fair values of the Company’s reporting units is based on the best information available to the Company’s management as of the date of the assessment. Goodwill impairment is recorded if the fair value of the tangible and intangible assets exceeds the fair value of the reporting unit, not to exceed the carrying value of goodwill. The Company performs its goodwill impairment assessment as of the first day of the fourth quarter of each fiscal year unless events indicate an interim test is required. In 2021, the Company elected to perform the qualitative assessment for the goodwill associated with the Blowfish Malibu reporting unit, resulting in no impairment. During the first quarter of 2020, as a result of the significant decline in the Company’s share price and market capitalization, and the impact of COVID-19 on business operations, the Company determined that an interim assessment of goodwill was required and performed the quantitative assessment for all reporting units as of May 2, 2020. The interim assessment indicated that the carrying value of the goodwill associated with the Brand Portfolio and Vionic reporting units exceeded the carrying value, resulting in non-cash goodwill impairment charges totaling $ 240.3 million in the first quarter of 2020. In addition to the interim assessment, an impairment review of the goodwill associated with the Blowfish Malibu reporting unit was performed as of the first day of the fourth fiscal quarter, which indicated no impairment. In 2019, the Company elected to perform the quantitative assessment for all reporting units and determined that the fair values of the reporting units exceeded the carrying values, resulting in no impairment. Refer to Note 10 to the consolidated financial statements for further discussion of goodwill and intangible assets. 50 Table of Contents The Company performs impairment tests on its indefinite-lived intangible assets as of the first day of the fourth quarter of each fiscal year unless events indicate an interim test is required. Definite-lived intangible assets are amortized over their useful lives and are reviewed for impairment if and when impairment indicators are present. The indefinite-lived intangible asset impairment reviews performed as of the first day of the Company’s fourth fiscal quarter in 2021 and 2019 resulted in no impairment charges. During the first quarter of 2020, as a result of the triggering event from the economic impacts of COVID-19, an interim assessment of the Company’s indefinite-lived intangible assets was performed as of May 2, 2020. The impairment review resulted in total impairment charges of $ 22.4 million in 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. In addition to the interim assessment, the Company evaluated the indefinite-lived intangible assets and the definite-lived Allen Edmonds customer relationship intangible asset as of the first day of the fourth fiscal quarter. These impairment reviews resulted in additional impairment totaling $ 23.8 million, consisting of $ 19.8 million associated with the Allen Edmonds tradename and $ 4.0 million associated with the Allen Edmonds customer relationships intangible asset. Refer to Note 10 to the consolidated financial statements for further discussion. Self-Insurance Reserves The Company is self-insured and/or retains high deductibles for a significant portion of its workers’ compensation, health, disability, cyber risk, general liability, automobile and property programs, among others. Liabilities associated with the risks that are retained by the Company are estimated by considering historical claims experience, trends of the Company and the industry and other actuarial assumptions. The estimated accruals for these liabilities could be affected if development of costs on claims differ from these assumptions and historical trends. Based on available information as of January 29, 2022, the Company believes it has provided adequate reserves for its self-insurance exposure. As of January 29, 2022 and January 30, 2021, self-insurance reserves were $ 11.4 million and $ 10.4 million, respectively. Revenue Recognition Retail sales, recognized at the point of sale, are recorded net of returns and exclude sales tax. Wholesale sales are recorded, net of returns, allowances and discounts, when obligations under the terms of a contract with the consumer are satisfied. This generally occurs at the time of transfer of control of merchandise. The Company considers several control indicators in its assessment of the timing of the transfer of control, including significant risks and rewards of ownership, physical possession and the Company’s right to receive payment. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring merchandise. Reserves for projected merchandise returns, discounts and allowances are determined based on historical experience and current expectations. Revenue is recognized on license fees related to Company-owned brand names, where the Company is the licensor, when the related sales of the licensee are made. The Company applies the guidance using the portfolio approach in ASC 606, Revenue from Contracts with Customers, because this methodology would not differ materially from applying the guidance to the individual contracts within the portfolio. The Company excludes sales and similar taxes collected from customers from the measurement of the transaction price for its retail sales. Gift Cards The Company sells gift cards to its customers in its retail stores, through its e-commerce sites and at other retailers. The Company’s gift cards do not have expiration dates or inactivity fees. The Company recognizes revenue from gift cards when (i) the gift card is redeemed by the consumer or (ii) the likelihood of the gift card being redeemed by the consumer is remote (“gift card breakage”) and the Company determines that it does not have a legal obligation to remit the value of unredeemed gift cards to the relevant jurisdictions. The gift card breakage rate is determined based upon historical redemption patterns. Gift card breakage is recognized during the 24-month period following the sale of the gift card, according to the Company’s historical redemption pattern. Gift card breakage income is included in net sales in the consolidated statements of earnings (loss) and the liability established upon the sale of a gift card is included in other accrued expenses within the consolidated balance sheets. The Company recognized gift card breakage of $ 1.0 million, $ 0.7 million and $ 1.1 million in 2021, 2020 and 2019, respectively. Loyalty Program The Company maintains a loyalty program at Famous Footwear, through which consumers earn points toward savings certificates for qualifying purchases. Upon reaching specified point values, consumers are issued a savings certificate that may be redeemed for purchases at Famous Footwear. Savings certificates earned must be redeemed within stated 51 Table of Contents expiration dates. In addition to the savings certificates, the Company also offers exclusive member discounts. The value of points and rewards earned by Famous Footwear’s loyalty program members are recorded as a reduction of net sales and a liability is established within other accrued expenses at the time the points are earned based on historical conversion and redemption rates. Approximately 78 % of net sales in the Famous Footwear segment were made to its loyalty program members in 2021, compared to 79 % in 2020. As of January 29, 2022 and January 30, 2021, the Company had a loyalty program liability of $ 18.8 million and $ 14.0 million, respectively, which is included in other accrued expenses on the consolidated balance sheets. Store Impairment Charges The Company regularly analyzes the results of all of its stores and assesses the viability of underperforming stores to determine whether events or circumstances exist that indicate the stores should be closed or whether the carrying amount of their long-lived assets may not be recoverable. After allowing for an appropriate start-up period, unusual nonrecurring events or favorable trends, property and equipment at stores and the lease right-of-use asset, indicated as impaired are written down to fair value as calculated using a discounted cash flow method. The Company recorded asset impairment charges, primarily for operating lease right-of-use assets, leasehold improvements, and furniture and fixtures in the Company’s retail stores, of $ 4.1 million, $ 56.3 million and $ 5.9 million in 2021, 2020 and 2019, respectively. Impairment charges were higher in 2020 as a result of the adverse economic conditions driven by the COVID-19 pandemic. Advertising and Marketing Expense Advertising and marketing costs are expensed as incurred, except for the costs of direct response advertising that relate primarily to the production and distribution of the Company’s catalogs and coupon mailers. Direct response advertising costs are capitalized and amortized over the expected future revenue stream, which is generally one to three months from the date the materials are mailed. External production costs of advertising are expensed when the advertising first appears in the media or in the store. In addition, the Company participates in co-op advertising programs with certain of its wholesale customers. For those co-op advertising programs where the Company has validated the fair value of the advertising received, co-op advertising costs are reflected as advertising expense within selling and administrative expenses. Otherwise, co-op advertising costs are reflected as a reduction of net sales. Total advertising and marketing expense was $ 118.1 million, $ 77.9 million and $ 100.9 million in 2021, 2020 and 2019, respectively. These costs were offset by co-op advertising allowances recovered by the Company’s retail business of $ 5.4 million, $ 3.4 million and $ 7.8 million in 2021, 2020 and 2019, respectively. Total co-op advertising costs reflected as a reduction of net sales were $ 10.8 million in 2021, $ 7.2 million in 2020 and $ 13.3 million in 2019. Total advertising costs attributable to future periods that are deferred and recognized as a component of prepaid expenses and other current assets were $ 4.4 million and $ 4.6 million at January 29, 2022 and January 30, 2021, respectively. Income Taxes The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the consolidated financial statement carrying amounts and the tax bases of its assets and liabilities. The Company establishes valuation allowances if it believes that it is more-likely-than-not that some or all of its deferred tax assets will not be realized. The Company does not recognize a tax benefit unless it concludes that it is more-likely-than-not that the benefit will be sustained on audit by the taxing authority based solely on the technical merits of the associated tax position. If the recognition threshold is met, the Company recognizes a tax benefit measured at the largest amount of the tax benefit that, in its judgment, is greater than 50% likely to be realized. The Company records interest and penalties related to unrecognized tax positions within the income tax (provision) benefit on the consolidated statements of earnings (loss). Operating Leases The Company leases all of its retail locations, a manufacturing facility and certain office locations, distribution centers and equipment under operating leases. Approximately 38 % of the leases entered into by the Company include options that allow the Company to extend the lease term beyond the initial commitment period, subject to terms agreed to at lease inception. Some leases also include early termination options that can be exercised under specific conditions. In accordance with ASC Topic 842, Leases (“ASC 842”), lease right-of-use assets and lease liabilities are recognized based 52 Table of Contents on the present value of the future minimum lease payments over the lease term. The majority of the Company’s leases do not provide an implicit rate and therefore, the Company uses an incremental borrowing rate based on the information available at the commencement date, including implied traded debt yield and seniority adjustments, to determine the present value of future payments. Lease expense for the minimum lease payments is recognized on a straight-line basis over the lease term. Variable lease payments are expensed as incurred. During 2020, the Company elected to account for COVID-19-related lease concessions as though the enforceable rights and obligations existed in the original lease and accordingly, treated those lease concessions as variable rent. Contingent Rentals Many of the leases covering retail stores require contingent rental payments in addition to the minimum monthly rental charge based on retail sales volume. The Company excludes from lease payments any variable payments that are not based on an index or market. If payment for a lease is fully contingent on sales, such as a percentage of sales gross rent lease, none of the lease payments are included in the lease right-of-use asset or the lease liability. Construction Allowances Received From Landlords At the time its retail facilities are initially leased, the Company often receives consideration from landlords to be applied against the cost of leasehold improvements necessary to open the store. The Company treats these construction allowances as a lease incentive. In accordance with ASC 842, the allowances are recorded within the lease right-of-use asset and amortized to income over the lease term as a reduction of rent expense. Straight-Line Rents and Rent Holidays The Company records rent expense on a straight-line basis over the lease term for all of its leased facilities. For leases that have predetermined fixed escalations of the minimum rentals, the Company recognizes the related rental expense on a straight-line basis and records the difference between the recognized rental expense and amounts payable under the lease as the lease right-of-use asset. At the time its retail facilities are leased, the Company is frequently not charged rent for a specified period of time, typically 30 to 60 days, while the store is being prepared for opening. This rent-free period is referred to as a rent holiday. The Company recognizes rent expense over the lease term, including any rent holiday, within selling and administrative expenses on the consolidated statements of earnings (loss). Pre-opening Costs Pre-opening costs associated with opening retail stores, including payroll, supplies and facility costs, are expensed as incurred. Earnings (Loss) Per Common Share Attributable to Caleres, Inc. Shareholders The Company uses the two-class method to calculate basic and diluted earnings (loss) per common share attributable to Caleres, Inc. shareholders. Unvested restricted stock awards are considered participating units because they entitle holders to non-forfeitable rights to dividends or dividend equivalents during the vesting term. Under the two-class method, basic earnings (loss) per common share attributable to Caleres, Inc. shareholders is computed by dividing the net earnings (loss) attributable to Caleres, Inc. after allocation of earnings to participating securities by the weighted-average number of common shares outstanding during the year. Diluted earnings (loss) per common share attributable to Caleres, Inc. shareholders is computed by dividing the net earnings (loss) attributable to Caleres, Inc. after allocation of earnings to participating securities by the weighted-average number of common shares and potential dilutive securities outstanding during the year. Potential dilutive securities consist of outstanding stock options and contingently issuable shares for the Company’s performance share awards. Refer to Note 3 to the consolidated financial statements for additional information related to the calculation of earnings (loss) per common share attributable to Caleres, Inc. shareholders. Comprehensive Income (Loss) Comprehensive income (loss) includes the effect of foreign currency translation adjustments, pension and other postretirement benefits adjustments and unrealized gains or losses from derivatives used for hedging activities. Foreign Currency Translation Adjustment For certain of the Company’s international subsidiaries, the local currency is the functional currency. Assets and liabilities of these subsidiaries are translated into United States dollars at the period-end exchange rate or historical rates as appropriate. Consolidated statements of earnings (loss) amounts are translated at average exchange rates for the period. 53 Table of Contents The cumulative translation adjustments resulting from changes in exchange rates are included in the consolidated balance sheets as a component of accumulated other comprehensive loss in total Caleres, Inc. shareholders’ equity. Transaction gains and losses are included in the consolidated statements of earnings (loss). Pension and Other Postretirement Benefits Adjustments The Company determines the expense and obligations for retirement and other benefit plans using assumptions related to discount rates, expected long-term rates of return on invested plan assets, expected salary increases and certain employee-related factors. The Company determines the fair value of plan assets and benefit obligations as of the January 31 measurement date. The unrecognized portion of the gain or loss on plan assets is included in the consolidated balance sheets as a component of accumulated other comprehensive loss in total Caleres, Inc. shareholders’ equity and is recognized into the plans’ expense over time. Refer to additional information related to pension and other postretirement benefits in Note 5 and Note 14 to the consolidated financial statements. Derivative Financial Instruments In the normal course of business, the Company’s financial results are impacted by currency rate movements in foreign-currency-denominated assets, liabilities and cash flows as it makes a portion of its purchases and sales in local currencies. The Company evaluates its exposure to volatility in foreign currency rates and may enter into derivative transactions that are intended to mitigate a portion of the effect of exchange rate fluctuations. The Company’s hedging strategy permits the use of forward contracts as cash flow hedging instruments to manage its currency exposures. These derivative financial instruments are viewed as risk management tools and are not used for trading or speculative purposes. The Company recognizes all derivative financial instruments as either assets or liabilities in the consolidated balance sheets and measures those instruments at fair value. The effective portion of gains and losses resulting from changes in the fair value of these hedge instruments are deferred in accumulated other comprehensive loss ("OCL") and reclassified to earnings in the period that the hedged transaction is recognized in earnings. Litigation Contingencies The Company is the defendant in several claims and lawsuits arising in the ordinary course of business. The Company believes the outcome of such proceedings and litigation currently pending will not have a material adverse effect on the consolidated financial position or results of operations. The Company accrues its best estimate of the cost of resolution of these claims. Legal defense costs of such claims are recognized in the period in which the costs are incurred. Refer to Note 16 to the consolidated financial statements for further discussion of commitments and contingencies. Environmental Matters The Company is involved in environmental remediation and ongoing compliance activities at several sites. The Company is remediating, under the oversight of Colorado authorities, the groundwater and indoor air at its owned facility and residential neighborhoods adjacent to and near the property, which have been affected by solvents previously used at the facility. In addition, various federal and state authorities have identified the Company as a potentially responsible party for remediation at certain other sites. The Company’s prior operations included numerous manufacturing and other facilities for which the Company may have responsibility under various environmental laws to address conditions that may be identified in the future. Refer to Note 16 to the consolidated financial statements for additional information. Environmental expenditures relating to an existing condition caused by past operations and that do not contribute to current or future revenue generation are expensed. Based upon independent environmental assessments, liabilities are recorded when remedial action is considered probable and the costs can be reasonably estimated and are evaluated independently of any future claims recovery. Generally, the timing of these accruals coincides with completion of a feasibility study or the Company’s commitment to a formal plan of action, and our estimates of cost are subject to change as new information becomes available. Costs of future expenditures for environmental remediation obligations are discounted to their present value in those situations requiring only continuing maintenance and monitoring based upon a schedule of fixed payments. Share-Based Compensation The Company has share-based incentive compensation plans under which certain officers, employees and members of the Board of Directors are participants and may be granted restricted stock, stock performance awards and stock options. Additionally, share-based grants may be made to non-employee members of the Board of Directors in the form of restricted stock units (“RSUs”) payable in cash or the Company’s common stock. The Company accounts for share-based 54 Table of Contents compensation in accordance with the fair value recognition provisions of ASC 718, Compensation – Stock Compensation , and ASC 505, Equity , which require all share-based payments to employees and members of the Board of Directors, including grants of employee stock options, to be recognized as expense in the consolidated financial statements based on their fair values. The fair value of stock options is estimated using the Black-Scholes option pricing formula that requires assumptions for expected volatility, expected dividends, the risk-free interest rate and the expected term of the option. Stock options generally vest over four years , with 25 % vesting annually and expense is recognized on a straight-line basis separately for each vesting portion of the stock option award. Expense for restricted stock is based on the fair value of the restricted stock on the date of grant. Expense for graded-vesting grants is recognized ratably over the respective vesting periods, which is generally 50 % over two years and 50 % over three years , and expense for cliff-vesting grants is recognized on a straight-line basis over the vesting period, which is generally one year . Expense for stock performance awards is recognized based upon the fair value of the awards on the date of grant and the anticipated number of shares or units to be awarded on a straight-line basis over the respective term of the award, or individual vesting portion of an award. Expense for the initial grant of RSUs is recognized ratably over the one-year vesting period based upon the fair value of the RSUs, and for cash-equivalent RSUs, is remeasured at the end of each period. The Company accounts for forfeitures of share-based grants as they occur. If the anticipated number of shares to be awarded changes significantly, share-based compensation expense may differ materially in the future from that recorded in the current period. Refer to additional information related to share-based compensation in Note 15 to the consolidated financial statements. Consolidated Statements of Cash Flows Supplemental Disclosures The Company made payments for federal, state and international taxes, net of refunds, of $ 29.3 million, and $ 10.2 million in 2021 and 2019, respectively, and received refunds, net of payments, of $ 0.6 million in 2020. Refer to Note 6 to the consolidated financial statements for further information regarding income taxes. Cash payments of interest for the Company’s borrowings under the revolving credit agreement and long-term debt during 2021, 2020 and 2019 were $ 20.4 million, $ 23.6 million and $ 26.8 million, respectively. Refer to Note 11 to the consolidated financial statements for further discussion regarding the Company’s financing arrangements. Impact of Recently Adopted Accounting Pronouncements In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-14, Compensation — Retirement Benefits — Defined Benefit Plans — General (Subtopic 715-20), Disclosure Framework — Changes to the Disclosure Requirements for Defined Benefit Plans. The guidance changes the disclosure requirements for employers that sponsor defined benefit pension or other postretirement benefit plans, eliminating the requirements for certain disclosures that are no longer considered cost beneficial and requiring new disclosures that the FASB considers pertinent. The Company adopted the ASU during the first quarter of 2021, which did not have a material impact on the Company’s financial statement disclosures. In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes . ASU 2019-12 eliminates certain exceptions in 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 consolidated financial statements. ​ In November 2020, the SEC issued SEC Release No. 33-10890, Management’s Discussion and Analysis, Selected Financial Data and Supplementary Financial Information . The rule amends existing requirements in Regulation S-K for disclosures related to management’s discussion and analysis and certain financial disclosure requirements. The final rule became effective on February 10, 2021 and the amendments are required for a registrant’s first fiscal year ending on or after August 9, 2021, with early adoption permitted on an item-by item basis. The Company adopted the amendments associated with Items 301 and 302 of the rule during 2020. The remaining provisions of the rule are reflected in this Form 10-K and did not have a material impact on the Company’s financial statement disclosures. ​ Impact of Prospective Accounting Pronouncements The Company has evaluated all recently issued, but not yet effective, accounting pronouncements and does not expect any of the pronouncements to have a material impact on the Company’s consolidated financial statements or disclosures. 55 Table of Contents ​ ​ ​ ​ 2. REVENUES ​ Disaggregation of Revenues The following table disaggregates revenue by segment and major source for 2021, 2020 and 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 ​ ​ ​ ​ ​ ​ ​ ​ Eliminations and ​ ​ ​ ($ thousands) Famous Footwear Brand Portfolio Other Total ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Retail stores ​ $ 1,494,595 ​ $ 59,269 ​ $ — ​ $ 1,553,864 Landed wholesale - e-commerce - drop ship (1) ​ — ​ 93,783 ​ ( 2,427 ) ​ 91,356 E-commerce - Company websites (1) ​ 251,823 ​ 189,564 ​ — ​ 441,387 Total direct-to-consumer sales ​ $ 1,746,418 ​ $ 342,616 ​ $ ( 2,427 ) ​ $ 2,086,607 First-cost wholesale - e-commerce (1) ​ — ​ 3,011 ​ — ​ 3,011 Landed wholesale - e-commerce (1) ​ ​ — ​ ​ 154,184 ​ ​ — ​ ​ 154,184 Landed wholesale - other ​ — ​ 468,436 ​ ( 49,263 ) ​ 419,173 First-cost wholesale ​ — ​ 100,467 ​ — ​ 100,467 Licensing and royalty ​ 1,010 ​ 12,138 ​ — ​ 13,148 Other (2) ​ 863 ​ 151 ​ — ​ 1,014 Total net sales ​ $ 1,748,291 ​ $ 1,081,003 ​ $ ( 51,690 ) ​ $ 2,777,604 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2020 ​ ​ ​ ​ ​ ​ ​ ​ Eliminations and ​ ​ ​ ($ thousands) Famous Footwear Brand Portfolio Other Total ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Retail stores ​ $ 983,669 ​ $ 52,796 ​ $ — ​ $ 1,036,465 Landed wholesale - e-commerce - drop ship (1) ​ ​ — ​ ​ 87,226 ​ ​ ( 4,192 ) ​ ​ 83,034 E-commerce - Company websites (1) ​ 279,353 ​ 149,090 ​ — ​ 428,443 Total direct-to-consumer sales ​ $ 1,263,022 ​ $ 289,112 ​ $ ( 4,192 ) ​ $ 1,547,942 First-cost wholesale - e-commerce (1) ​ — ​ 1,249 ​ — ​ 1,249 Landed wholesale - e-commerce (1) ​ ​ — ​ ​ 124,548 ​ ​ — ​ ​ 124,548 Landed wholesale - other ​ — ​ 408,752 ​ ( 44,770 ) ​ 363,982 First-cost wholesale ​ — ​ 69,172 ​ — ​ 69,172 Licensing and royalty ​ — ​ 9,478 ​ — ​ 9,478 Other (2) ​ 529 ​ 170 ​ — ​ 699 Net sales ​ $ 1,263,551 ​ $ 902,481 ​ $ ( 48,962 ) ​ $ 2,117,070 ​ 56 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2019 ​ ​ ​ ​ ​ ​ ​ ​ Eliminations and ​ ​ ​ ($ thousands) Famous Footwear Brand Portfolio Other Total ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Retail stores ​ $ 1,427,473 ​ $ 154,549 ​ $ — ​ $ 1,582,022 Landed wholesale - e-commerce - drop ship (1) ​ ​ — ​ ​ 93,249 ​ ​ — ​ ​ 93,249 E-commerce - Company websites (1) ​ 159,724 ​ 145,897 ​ — ​ 305,621 Total direct-to-consumer sales ​ $ 1,587,197 ​ $ 393,695 ​ $ — ​ $ 1,980,892 First-cost wholesale - e-commerce (1) ​ — ​ 2,204 ​ — ​ 2,204 Landed wholesale - e-commerce (1) ​ ​ — ​ ​ 190,536 ​ ​ — ​ ​ 190,536 Landed wholesale - other ​ — ​ 708,262 ​ ( 72,955 ) ​ 635,307 First-cost wholesale ​ — ​ 96,021 ​ — ​ 96,021 Licensing and royalty ​ — ​ 15,469 ​ — ​ 15,469 Other (2) ​ 860 ​ 273 ​ — ​ 1,133 Net sales ​ $ 1,588,057 ​ $ 1,406,460 ​ $ ( 72,955 ) ​ $ 2,921,562 (1) Collectively referred to as "e-commerce" below (2) Includes breakage revenue from unredeemed gift cards Retail stores Traditionally, the majority of the Company’s revenue is generated from retail sales where control is transferred and revenue is recognized at the point of sale. Retail sales are recorded net of estimated returns and exclude sales tax. The Company records a returns reserve and a corresponding return asset for expected returns of merchandise. Retail sales to members of the Company’s loyalty programs, including the Famously You Rewards program, include two performance obligations: the sale of merchandise and the delivery of points that may be redeemed for future purchases. The transaction price is allocated to the separate performance obligations based on the relative stand-alone selling price. The stand-alone selling price for the points is estimated using the retail value of the merchandise earned, adjusted for estimated breakage based upon historical redemption patterns. The revenue associated with the initial merchandise purchased is recognized immediately and the value assigned to the points is deferred until the points are redeemed, forfeited or expired. Landed wholesale Landed sales are wholesale sales in which the merchandise is shipped directly to the customer from the Company’s warehouses. Many customers that purchase footwear on a landed basis arrange their own transportation of merchandise and, with limited exceptions, control is transferred at the time of shipment. First-cost wholesale First-cost sales are wholesale sales in which the Company purchases merchandise from an international factory that manufactures the product and subsequently sells to a customer at an overseas port. Revenue is recognized at the time the merchandise is delivered to the customer’s designated freight forwarder and control is transferred to the customer. E-commerce The Company also generates revenue from sales on websites maintained by the Company that are shipped from the Company’s distribution centers or retail stores directly to the consumer, picked up directly by the consumer from the Company’s stores and e-commerce sales from the Company’s wholesale customers’ websites that are fulfilled on a drop-ship or first cost basis (collectively referred to as "e-commerce"). The Company transfers control and recognizes revenue for merchandise sold that is shipped directly to an individual consumer upon delivery to the consumer. Licensing and royalty The Company has license agreements with third parties allowing them to sell the Company’s branded product, or other merchandise that uses the Company’s owned or licensed brand names. These license agreements provide the licensee access to the Company’s symbolic intellectual property, and revenue is therefore recognized over the license term. For 57 Table of Contents royalty contracts that do not have guaranteed minimums, the Company recognizes revenue as the licensee’s sales occur. For royalty contracts that have guaranteed minimums, revenue for the guaranteed minimum is recognized on a straight-line basis during the term, until such time that the cumulative royalties exceed the total minimum guarantee. Up-front payments are recognized over the contractual term to which the guaranteed minimum relates. The Company also licenses its Famous Footwear trade name and logo to a third-party financial institution to offer Famous Footwear-branded credit cards to its consumers. The Company receives royalties based upon cardholder spending, which is recognized as licensing revenue at the time when the credit card is used. ​ Contract Balances Revenue is recorded at the transaction price, net of estimates for variable consideration for which reserves are established, including returns, allowances and discounts. Variable consideration is estimated using the expected value method and given the large number of contracts with similar characteristics, the portfolio approach is applied to determine the variable consideration for each revenue stream. Reserves for projected returns are based on historical patterns and current expectations. Information about significant contract balances from contracts with customers is as follows: ​ ​ ​ ​ ​ ​ ​ ($ thousands) January 29, 2022 January 30, 2021 Customer allowances and discounts $ 20,328 ​ $ 17,043 Loyalty programs liability 18,814 ​ 13,986 Returns reserve 12,468 ​ 11,040 Gift card liability 6,804 ​ 6,091 ​ Changes in contract balances with customers generally reflect differences in relative sales volume for the period presented. In addition, during 2021, the loyalty programs liability increased $ 36.3 million due to points and material rights earned on purchases and decreased $ 31.5 million due to expirations and redemptions. During 2020, the loyalty programs liability increased $ 26.4 million due to points and material rights earned on purchases and decreased $ 28.8 million due to expirations and redemptions. ​ Allowance for Expected Credit Losses The following table summarizes the activity in the Company’s allowance for expected credit losses for 2021 and 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ($ thousands) 2021 ​ 2020 Balance, beginning of period ​ $ 14,928 ​ $ 1,813 Adjustment upon adoption of ASU 2016-13 ​ ​ — ​ ​ 2,521 Provision/adjustment for expected credit losses (1) ​ ​ ( 2,242 ) ​ ​ 10,575 Uncollectible accounts written off, net of recoveries ​ ​ ( 3,085 ) ​ ​ 19 Balance, end of period ​ $ 9,601 ​ $ 14,928 ​ (1) The Company’s provision/adjustment for expected credit losses for 2020 was higher than 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. ​ ​ ​ 58 Table of Contents 3. EARNINGS (LOSS) PER SHARE The Company uses the two-class method to compute basic and diluted earnings (loss) per common share attributable to Caleres, Inc. shareholders. In periods of net loss, no effect is given to the Company’s participating securities since they do not contractually participate in the losses of the Company. The following table sets forth the computation of basic and diluted earnings (loss) per common share attributable to Caleres, Inc. shareholders: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ($ thousands, except per share amounts) 2021 2020 2019 ​ ​ ​ ​ ​ ​ ​ ​ ​ NUMERATOR ​ ​ ​ ​ ​ ​ ​ ​ Net earnings (loss) $ 138,163 ​ $ ( 438,994 ) ​ $ 62,082 Net (earnings) loss attributable to noncontrolling interests ( 1,144 ) ​ ( 120 ) ​ 737 Net earnings (loss) attributable to Caleres, Inc. $ 137,019 ​ $ ( 439,114 ) ​ $ 62,819 Net earnings allocated to participating securities ( 4,982 ) ​ — ​ ( 1,988 ) Net earnings (loss) attributable to Caleres, Inc. after allocation of earnings to participating securities $ 132,037 ​ $ ( 439,114 ) ​ $ 60,831 ​ ​ ​ DENOMINATOR ​ ​ Denominator for basic earnings (loss) per common share attributable to Caleres, Inc. shareholders 36,741 ​ 37,220 ​ 39,796 Dilutive effect of share-based awards 354 ​ — ​ 57 Denominator for diluted earnings (loss) per common share attributable to Caleres, Inc. shareholders 37,095 ​ 37,220 ​ 39,853 ​ ​ ​ Basic earnings (loss) per common share attributable to Caleres, Inc. shareholders $ 3.59 ​ $ ( 11.80 ) ​ $ 1.53 ​ ​ ​ Diluted earnings (loss) per common share attributable to Caleres, Inc. shareholders $ 3.56 ​ $ ( 11.80 ) ​ $ 1.53 ​ Options to purchase 16,667 shares of common stock in both 2021 and 2019 and 22,667 shares of common stock in 2020, were not included in the denominator for diluted earnings (loss) per common share attributable to Caleres, Inc. shareholders because the effect would be antidilutive. Due to the Company’s net loss attributable to Caleres, Inc. in 2020, the denominator for diluted loss per common share attributed to Caleres, Inc. shareholders is the same as the denominator for basic loss per common share attributable to Caleres, Inc. shareholders. The Company repurchased 661,265 , 2,902,122 and 1,704,240 shares at a cost of $ 17.0 million, $ 23.3 million and $ 33.4 million during the years ended January 29, 2022, January 30, 2021 and February 1, 2020, respectively, under the 2011, 2018 and 2019 publicly announced share repurchase programs. The 2011 and 2018 repurchase programs permit repurchases of up to 2.5 million shares and the 2019 repurchase program permits repurchases of up to 5.0 million shares, as further discussed in Item 5, Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities . ​ 4. RESTRUCTURING AND OTHER INITIATIVES ​ Blowfish Mandatory Purchase Obligation On July 6, 2018, the Company acquired a controlling interest in Blowfish Malibu. The remaining interest was 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. Approximately $ 9.0 million was initially assigned to the mandatory purchase obligation and remeasurement adjustments on the mandatory purchase obligation were recorded as interest expense. The fair value adjustments on the mandatory purchase obligation totaled $ 15.4 million ($ 11.5 million on an after-tax basis, or $ 0.30 per diluted share) in 2021, $ 23.9 million ($ 17.8 million on an after-tax basis, or $ 0.48 per diluted share) in 2020 and $ 5.4 million ($ 4.0 million on an after-tax basis, or $ 0.10 per diluted share) in 2019. The mandatory 59 Table of Contents purchase obligation was settled for $ 54.6 million on November 4, 2021. The settlement of the $ 9.0 million initially assigned to the mandatory purchase obligation is presented within financing activities on the consolidated statements of cash flows and the remaining $ 45.6 million is presented within operating activities, in accordance with ASC 230, Statement of Cash Flows . Refer to further discussion regarding the mandatory purchase obligation in Note 13 to the consolidated financial statements. Brand Portfolio – Business Exits During 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. 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. These charges are presented in restructuring and special charges on the consolidated statement of earnings (loss) within the Brand Portfolio segment. As of January 29, 2022 and January 30, 2021, reserves of $ 0.4 million and $ 2.1 million, respectively, were included in other accrued expenses on the consolidated balance sheets related to the strategic realignment of the Naturalizer retail store operations. During 2020, the Company incurred costs of $ 16.4 million ($ 14.9 million on an after-tax basis, or $ 0.40 per diluted share) related to the decision to close all but a limited number of its Naturalizer retail stores and exit the Fergie brand. Of these charges, which are all reflected within the Brand Portfolio segment, $ 12.4 million is presented as restructuring and other special charges and primarily represents non-cash impairment of property and right-of-use lease assets, incremental rent and lease termination costs, and severance costs. An additional $ 4.0 million is presented as cost of goods sold and represents the incremental inventory markdowns required to reduce the value of inventory for these two brands to net realizable value. During 2019, the Company incurred costs of $ 3.5 million ($ 2.6 million on an after-tax basis, or $ 0.06 per diluted share) related to the decision to exit the Carlos brand and reposition the Via Spiga brand. Of these charges, which are all reflected within the Brand Portfolio segment, $ 3.0 million relates to incremental inventory markdowns required to reduce the value of inventory to net realizable value and is presented in cost of goods sold on the consolidated statements of earnings (loss), while the remaining $ 0.5 million, which is presented in restructuring and other special charges, is for severance and other related costs. COVID-19-Related Impairments and Expenses The Company incurred costs associated with the COVID-19 pandemic and related impacts on the Company’s business, totaling $ 114.3 million ($ 115.5 million on an after-tax basis, or $ 3.10 per diluted share) during 2020. 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. Of the $ 114.3 million in charges, $ 80.9 million is presented in restructuring and other special charges, net and $ 33.4 million is reflected as cost of goods sold in the consolidated statements of earnings (loss). Of the $ 80.9 million presented as restructuring and other special charges, $ 63.7 million is reflected in the Brand Portfolio segment, $ 16.6 million is reflected in the Famous Footwear segment and $ 0.6 million is reflected within the Eliminations and Other category. The $ 33.4 million presented 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. There were no corresponding charges in 2021 or 2019. Vionic Acquisition and Integration-Related Costs On October 18, 2018, the Company acquired all of the outstanding equity interests of Vionic Group LLC and Vionic International LLC. The Company incurred acquisition and integration-related costs associated with the acquisition totaling $ 3.4 million ($ 2.6 million on an after-tax basis, $ 0.07 per diluted share) and $ 1.9 million ($ 1.4 million on an after-tax basis, or $ 0.03 per diluted share) during 2020 and 2019, respectively. Of the $ 3.4 million in charges in 2020, which were presented as restructuring and other special charges in the consolidated statements of earnings (loss), $ 3.3 million is reflected within the Brand Portfolio segment and $ 0.1 million is reflected within the Eliminations and Other category, and represent non-cash impairment of assets, severance and other related costs. Of the $ 1.9 million in charges in 2019 presented as restructuring and other special charges, which were primarily for severance and professional fees, $ 1.8 million is reflected within the Eliminations and Other category and $ 0.1 million is reflected in the Brand Portfolio segment. There were no corresponding charges during 2021. 60 Table of Contents Expense Containment Initiatives During the fourth quarter of 2019, the Company announced expense containment initiatives, including a Voluntary Early Retirement Program ("VERP") and other restructuring actions. The total costs to implement these initiatives, including employee-related costs for severance, health care benefits and enhanced pension benefits, which were recorded in the fourth quarter of 2019, were $ 15.0 million ($ 11.2 million on an after-tax basis, or $ 0.27 per diluted share). Of the $ 15.0 million in charges recorded in the fourth quarter of 2019, $ 12.3 million is presented as restructuring and other special charges, net and $ 2.7 million is presented as other income, net in the consolidated statements of earnings (loss). Of the $ 12.3 million presented as restructuring and other special charges, $ 5.0 million is reflected in the Brand Portfolio segment, $ 3.8 million is reflected within the Eliminations and Other category and $ 3.5 million is reflected in the Famous Footwear segment. The $ 2.7 million presented in other income within the Eliminations and Other category is a one-time pension settlement charge and special termination benefit costs associated with the VERP, as further discussed in Note 5 to the consolidated financial statements. ​ 5. RETIREMENT AND OTHER BENEFIT PLANS ​ The Company sponsors pension plans in both the United States and Canada. Under the domestic plans, salaried, management and certain hourly employees’ pension benefits are based on a two-rate formula applied to each year of service. Participants receive the larger of the accrued benefit as of December 31, 2015 (based on service commencing at the date of hire and a 35 -year service cap and an average annual salary for the five highest consecutive years during the last 10 year period) and the benefit calculated under the current plan provisions from the date of hire. Generally, under the current plan provisions, a participant receives credit for one year of service for each 365 days of employment as an eligible employee with the Company commencing after the employee’s date of participation in the plan, up to 30 years . Except for grandfathered employees and certain hourly associates in the Company’s retail divisions, final average compensation, taxable covered compensation and credit service for purposes of determining accrued pension benefits were frozen as of December 31, 2018. The Company’s Canadian pension plans cover certain employees based on plan specifications. Under the Canadian plans, employees’ pension benefits are based on the employee’s highest consecutive five years of compensation during the 10 years before retirement. The Company’s funding policy for all plans is to make the minimum annual contributions required by applicable regulations. The Company also maintains an unfunded Supplemental Executive Retirement Plan (“SERP”). In addition to providing pension benefits, the Company sponsors unfunded postretirement life insurance plans that cover both salaried and hourly employees who became eligible for benefits by January 1, 1995. The life insurance plans provide coverage of up to $ 20,000 for qualifying retired employees. 61 Table of Contents Benefit Obligations The following table sets forth changes in benefit obligations, including all domestic and Canadian plans: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pension Benefits ​ Other Postretirement Benefits ($ thousands) 2021 2020 2021 2020 Benefit obligation at beginning of year ​ $ 365,570 ​ $ 388,288 ​ $ 1,249 ​ $ 1,371 Service cost ​ 7,494 ​ 8,492 ​ — ​ — Interest cost ​ 11,236 ​ 12,205 ​ 35 ​ 41 Plan participants’ contribution ​ 11 ​ 7 ​ 5 ​ 4 Actuarial (gain) loss ​ ( 13,962 ) ​ 8,710 ​ ( 50 ) ​ ( 55 ) Benefits paid ​ ( 15,062 ) ​ ( 15,272 ) ​ ( 96 ) ​ ( 112 ) Settlements ​ — ​ ( 36,747 ) ​ — ​ — Curtailments ​ — ​ ( 95 ) ​ — ​ — Foreign exchange rate changes ​ ( 1 ) ​ ( 18 ) ​ — ​ — Benefit obligation at end of year ​ $ 355,286 ​ $ 365,570 ​ $ 1,143 ​ $ 1,249 ​ The accumulated benefit obligation for the United States pension plans was $ 348.8 million and $ 358.7 million as of January 29, 2022 and January 30, 2021, respectively. The accumulated benefit obligation for the Canadian pension plans was $ 3.9 million and $ 4.0 million as of January 29, 2022 and January 30, 2021, respectively. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pension Benefits Other Postretirement Benefits Weighted–average assumptions used to determine benefit obligations, end of year 2021 2020 2021 2020 Discount rate ​ 3.40 % 3.10 % 3.40 % 3.10 % Rate of compensation increase 3.00 % 3.00 % N/A N/A ​ ​ As of January 29, 2022, the Company is using the PRI-2012 Bottom Quartile mortality table, projected using generational scale MP-2021, an updated base mortality table issued by the Society of Actuaries in 2021, to estimate the plan liabilities. Actuarial losses related to the change in mortality projection scales from the MP-2020 scale used in 2020 and the MP-2019 scale used in 2019, increased the projected benefit obligation by approximately $ 1.1 million and $ 2.0 million as of January 29, 2022 and January 30, 2021, respectively. In the fourth quarter of 2020, a lump sum option was offered to certain former employees, resulting in $ 35.7 million of lump sum payments and a settlement charge that decreased the net periodic benefit income for 2020 by $ 1.1 million. During the fourth quarter of 2019, in conjunction with the Company’s expense containment initiatives, a Voluntary Early Retirement Program ("VERP") was offered to pension participants who met certain criteria. A lump sum option was also offered to certain former employees during the fourth quarter of 2019. The VERP and terminated vested lump sums resulted in $ 19.9 million of lump sum payments, and a settlement charge and curtailment that decreased the net periodic benefit income for 2019 by $ 2.7 million. Plan Assets Pension assets are managed in accordance with the prudent investor standards of the Employee Retirement Income Security Act (“ERISA”). The plan’s investment objective is to earn a competitive total return on assets, while also ensuring plan assets are adequately managed to provide for future pension obligations. This results in the protection of plan surplus and is accomplished by matching the duration of the projected benefit obligation using leveraged fixed income instruments and, while maintaining an equity commitment, managing an equity overlay strategy. The overlay strategy is intended to protect the managed equity portfolios against adverse stock market environments. The Company delegates investment management of the plan assets to specialists in each asset class and regularly monitors manager performance and compliance with investment guidelines. The Company’s overall investment strategy is to achieve a mix of approximately 97 % of investments for long-term growth and 3 % for near-term benefit payments with a wide diversification of asset types, fund strategies and fund managers. The target allocations for plan assets for 2021 were 70 % equities and 30 % debt securities. Allocations may change periodically based upon changing market conditions. Corporate stocks – common did not include any Company stock at January 29, 2022 or January 30, 2021. 62 Table of Contents Assets of the Canadian pension plans, which total approximately $ 5.0 million at January 29, 2022, were invested 55 % in equity funds, 42 % in bond funds and 3 % in money market funds. The Canadian pension plans did not include any Company stock as of January 29, 2022 or January 30, 2021. A financial instrument’s level within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Refer to further discussion on the fair value hierarchy in Note 13 to the consolidated financial statements. Following is a description of the pension plan investments measured at fair value, including the general classification of such investments pursuant to the valuation hierarchy. ● Cash and cash equivalents include cash collateral and margin as well as money market funds. The fair values are based on unadjusted quoted market prices in active markets with sufficient volume and frequency and therefore are classified within Level 1 of the fair value hierarchy. ● Investments in U.S. government securities, the mutual fund, exchange-traded funds, corporate stocks - common, preferred securities and S&P 500 Index put and call options (traded on security exchanges) are classified within Level 1 of the fair value hierarchy because the fair values are based on unadjusted quoted market prices in active markets with sufficient volume and frequency. Interest rate swap agreements and certain U.S. government securities are not traded on an exchange but are based on observable inputs that can be corroborated. Therefore, these investments are classified within Level 2 of the fair value hierarchy. Certain preferred securities and corporate stocks – common were offered in a private placement. The fair value of these investments is based on unobservable prices and therefore, they are classified within Level 3 of the fair value hierarchy. ● The alternative investment fund is an investment in a pool of long-duration domestic investment grade assets. This investment is measured using net asset value per share, and therefore, is not classified within the fair value hierarchy. ● The unallocated insurance contract is measured at net asset value per share, and therefore, is not classified within the fair value hierarchy. The fair values of the Company’s pension plan assets at January 29, 2022 by asset category are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements at January 29, 2022 ($ thousands) Total Level 1 Level 2 Level 3 Asset ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 11,714 ​ $ 11,714 ​ $ — ​ $ — U.S. government securities ​ 102,525 ​ 46,668 ​ 55,857 ​ — Interest rate swap agreements ​ ​ ( 232 ) ​ ​ — ​ ​ ( 232 ) ​ ​ — Mutual fund ​ 31,595 ​ 31,595 ​ — ​ — Exchange-traded funds ​ 120,323 ​ 120,323 ​ — ​ — Corporate stocks - common ​ 155,014 ​ 155,014 ​ — ​ — Preferred securities ​ 523 ​ — ​ — ​ 523 S&P 500 Index options ​ 5,694 ​ 5,694 ​ — ​ — Total investments in the fair value hierarchy ​ $ 427,156 ​ $ 371,008 ​ $ 55,625 ​ $ 523 ​ ​ ​ ​ ​ Investments measured at net asset value: ​ ​ ​ ​ Alternative investment fund ​ 16,891 ​ — ​ — ​ — Unallocated insurance contract ​ 44 ​ — ​ — ​ — Total investments measured at net asset value ​ 16,935 ​ — ​ — ​ — ​ ​ ​ ​ ​ Total investments at fair value ​ $ 444,091 ​ $ 371,008 ​ $ 55,625 ​ $ 523 ​ 63 Table of Contents The fair values of the Company’s pension plan assets at January 30, 2021 by asset category are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements at January 30, 2021 ($ thousands) Total Level 1 Level 2 Level 3 Asset ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 9,149 ​ $ 9,149 ​ $ — ​ $ — U.S. government securities ​ 108,733 ​ 50,116 ​ 58,617 ​ — Interest rate swap agreements ​ ​ ( 4,597 ) ​ ​ — ​ ​ ( 4,597 ) ​ ​ ​ Mutual fund ​ 38,064 ​ 38,064 ​ — ​ — Exchange-traded funds ​ 119,647 ​ 119,647 ​ — ​ — Corporate stocks - common ​ 160,137 ​ 160,112 ​ — ​ 25 Preferred securities ​ 2,495 ​ — ​ — ​ 2,495 S&P 500 Index options ​ ( 6,482 ) ​ ( 6,482 ) ​ — ​ — Total investments in the fair value hierarchy ​ $ 427,146 ​ $ 370,606 ​ $ 54,020 ​ $ 2,520 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investments measured at net asset value: ​ ​ ​ ​ Alternative investment fund ​ 17,522 ​ — ​ — ​ — Unallocated insurance contract ​ 49 ​ — ​ — ​ — Total investments measured at net asset value ​ 17,571 ​ — ​ — ​ — ​ ​ ​ ​ ​ Total investments at fair value ​ $ 444,717 ​ $ 370,606 ​ $ 54,020 ​ $ 2,520 ​ The following table sets forth changes in the fair value of plan assets, including all domestic and Canadian plans: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pension Benefits Other Postretirement Benefits ($ thousands) 2021 2020 2021 2020 Fair value of plan assets at beginning of year ​ $ 444,717 ​ $ 428,186 ​ $ — ​ $ — Actual return on plan assets ​ 14,322 ​ 67,413 ​ — ​ — Employer contributions ​ 104 ​ 1,148 ​ 91 ​ 108 Plan participants’ contributions ​ 11 ​ 7 ​ 5 ​ 4 Benefits paid ​ ( 15,062 ) ​ ( 15,272 ) ​ ( 96 ) ​ ( 112 ) Settlements ​ — ​ ( 36,747 ) ​ — ​ — Foreign exchange rate changes ​ ( 1 ) ​ ( 18 ) ​ — ​ — Fair value of plan assets at end of year ​ $ 444,091 ​ $ 444,717 ​ $ — ​ $ — ​ Funded Status The over-funded status as of January 29, 2022 and January 30, 2021 for pension benefits was $ 88.8 million and $ 79.1 million, respectively. The under-funded status for other postretirement benefits was $ 1.1 million and $ 1.2 million as of January 29, 2022 and January 30, 2021, respectively. Amounts recognized in the consolidated balance sheets consist of: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pension Benefits Other Postretirement Benefits ($ thousands) ​ 2021 2020 2021 2020 Prepaid pension costs (noncurrent assets) ​ $ 99,139 ​ $ 88,833 ​ $ — ​ $ — Accrued benefit liabilities (current liability) ​ ( 3,755 ) ​ ( 1,896 ) ​ ( 189 ) ​ ( 194 ) Accrued benefit liabilities (noncurrent liability) ​ ( 6,579 ) ​ ( 7,790 ) ​ ( 954 ) ​ ( 1,055 ) Net amount recognized at end of year ​ $ 88,805 ​ $ 79,147 ​ $ ( 1,143 ) ​ $ ( 1,249 ) ​ 64 Table of Contents The projected benefit obligation, the accumulated benefit obligation and the fair value of plan assets for pension plans with a projected benefit obligation in excess of plan assets and for pension plans with an accumulated benefit obligation in excess of plan assets, which includes only the Company’s SERP, were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Projected Benefit Obligation Exceeds the ​ ​ Accumulated Benefit Obligation ​ ​ ​ Fair Value of Plan Assets ​ ​ Exceeds the Fair Value of Plan Assets ($ thousands) ​ 2021 ​ 2020 ​ 2021 ​ 2020 End of Year ​ ​ ​ ​ ​ ​ ​ ​ Projected benefit obligation ​ $ 10,334 ​ $ 9,686 ​ $ 10,334 ​ $ 9,686 Accumulated benefit obligation ​ 9,247 ​ 8,954 ​ 9,247 ​ 8,954 Fair value of plan assets ​ — ​ — ​ — ​ — ​ The accumulated postretirement benefit obligation exceeds assets for all of the Company’s other postretirement benefit plans. The amounts in accumulated other comprehensive loss that have not yet been recognized as components of net periodic benefit income at January 29, 2022 and January 30, 2021 are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pension Benefits ​ Other Postretirement Benefits ($ thousands) 2021 2020 2021 2020 Components of accumulated other comprehensive loss, net of tax: ​ ​ ​ ​ ​ ​ ​ ​ Net actuarial loss (gain) ​ $ 8,807 ​ $ 10,438 ​ $ ( 424 ) ​ $ ( 466 ) Net prior service credit ​ ( 565 ) ​ ( 947 ) ​ — ​ — Accumulated other comprehensive loss, net of tax ​ $ 8,242 ​ $ 9,491 ​ $ ( 424 ) ​ $ ( 466 ) ​ ​ Net Periodic Benefit Income Net periodic benefit income for 2021, 2020 and 2019 for all domestic and Canadian plans included the following components: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pension Benefits ​ Other Postretirement Benefits ($ thousands) 2021 2020 2019 2021 2020 2019 Service cost ​ $ 7,494 ​ $ 8,492 ​ $ 7,219 ​ $ — ​ $ — ​ $ — Interest cost ​ 11,236 ​ 12,205 ​ 14,811 ​ 35 ​ 41 ​ 60 Expected return on assets ​ ( 28,437 ) ​ ( 31,498 ) ​ ( 27,735 ) ​ — ​ — ​ — Amortization of: ​ ​ ​ ​ ​ ​ Actuarial loss (gain) ​ 2,410 ​ 2,718 ​ 3,904 ​ ( 108 ) ​ ( 110 ) ​ ( 107 ) Prior service credit ​ ( 514 ) ​ ( 1,354 ) ​ ( 1,486 ) ​ — ​ — ​ — Settlement cost ​ — ​ 1,353 ​ 2,236 ​ — ​ — ​ — Curtailments ​ — ​ ( 189 ) ​ — ​ — ​ — ​ — Cost of contractual termination benefits ​ — ​ — ​ 482 ​ — ​ — ​ — Total net periodic benefit income ​ $ ( 7,811 ) ​ $ ( 8,273 ) ​ $ ( 569 ) ​ $ ( 73 ) ​ $ ( 69 ) ​ $ ( 47 ) ​ The non-service cost components of net periodic benefit income are included in other income, net in the consolidated statements of earnings (loss). Service cost is included in selling and administrative expenses. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pension Benefits ​ Other Postretirement Benefits Weighted–average assumptions used to determine net periodic benefit income 2021 2020 2019 2021 2020 2019 Discount rate 3.10 % 3.25 % 4.35 % 3.10 % 3.25 % 4.35 % Rate of compensation increase 3.00 % 3.00 % 3.00 % N/A N/A N/A ​ Expected return on plan assets 7.25 % 7.50 % 7.75 % N/A N/A N/A ​ ​ 65 Table of Contents The net actuarial loss (gain) subject to amortization is amortized on a straight-line basis over the average future service of active plan participants as of the measurement date. The prior service credit is amortized on a straight-line basis over the average future service of active plan participants benefiting under the plan at the time of each plan amendment. The expected long-term rate of return on plan assets is based on historical and projected rates of return for current and planned asset classes in the plan’s investment portfolio. Assumed projected rates of return for each asset class were selected after analyzing experience and future expectations of the returns. The overall expected rate of return for the portfolio was developed based on the target allocation for each asset class. Expected Cash Flows Information about expected cash flows for all pension and postretirement benefit plans follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pension Benefits ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Postretirement ($ thousands) Funded Plan SERP Total Benefits Employer Contributions ​ ​ ​ ​ 2022 expected contributions to plan trusts ​ $ 82 ​ $ — ​ $ 82 ​ $ — 2022 expected contributions to plan participants ​ 420 ​ 3,818 ​ 4,238 ​ 192 2022 refund of assets (e.g. surplus) to employer ​ 139 ​ — ​ 139 ​ — Expected Benefit Payments ​ ​ ​ — ​ 2022 ​ $ 17,852 ​ $ 3,818 ​ $ 21,670 ​ $ 192 2023 ​ 15,148 ​ 3,376 ​ 18,524 ​ 159 2024 ​ 15,618 ​ 1,021 ​ 16,639 ​ 132 2025 ​ 16,241 ​ 1,315 ​ 17,556 ​ 109 2026 ​ 16,782 ​ 479 ​ 17,261 ​ 89 2027-2031 ​ 89,409 ​ 1,600 ​ 91,009 ​ 248 ​ Defined Contribution Plans The Company’s domestic defined contribution 401(k) plan covers certain salaried employees. For eligible salaried employees, the Company makes a core contribution of 1.5 % and a matching contribution of up to 50 % of the first 6 % of the employees’ contributions. The Company’s expense for this plan was $ 5.5 million in 2021, $ 4.0 million in 2020, and $ 5.4 million in 2019. In addition to the core and matching contributions, the Company has the discretion to contribute up to an additional 2 % profit-sharing benefit based on the Company’s performance. The Company’s expense for the profit-sharing contribution was $ 3.3 million for 2021, with no corresponding expenses in 2020 or 2019. The Company’s Canadian defined contribution plan covers certain salaried and hourly employees. The Company makes contributions for all eligible employees, ranging from 3 % to 5 % of the employee’s salary. In addition, eligible employees may voluntarily contribute to the plan. The Company’s expense for this plan was $ 0.1 million in both 2021 and 2020, and $ 0.2 million in 2019. Deferred Compensation Plan The Company has a non-qualified deferred compensation plan (the “Deferred Compensation Plan”) for the benefit of certain management employees. The investment funds offered to the participants generally correspond to the funds offered in the Company’s 401(k) plan and the account balance fluctuates with the investment returns on those funds. 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. 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. Consequently, the trust qualifies as a grantor trust for income tax purposes (i.e., a “Rabbi Trust”). The liabilities of the Deferred Compensation Plan of $ 7.5 million and $ 7.9 million as of January 29, 2022 and January 30, 2021, respectively, are presented in employee compensation and benefits in the accompanying consolidated balance sheets. The assets held by the trust of $ 7.5 million and $ 7.9 million as of January 29, 2022 and January 30, 2021, respectively, are presented within prepaid expenses and other current assets in the 66 Table of Contents accompanying consolidated balance sheets, with changes in the deferred compensation charged to selling and administrative expenses in the accompanying consolidated statements of earnings (loss). Deferred Compensation Plan for Non-Employee Directors Non-employee directors are eligible to participate in a deferred compensation plan, whereby deferred compensation amounts are valued as if invested in the Company’s common stock through the use of phantom stock units (“PSUs”). Under the plan, each participating director’s account is credited with the number of PSUs equal to the number of shares of the Company’s common stock that the participant could purchase or receive with the amount of the deferred compensation, based upon the fair value (as determined based on the average of the high and low prices) of the Company’s common stock on the last trading day of the fiscal quarter when the cash compensation was earned. Dividend equivalents are paid on PSUs at the same rate as dividends on the Company’s common stock and are re-invested in additional PSUs at the next fiscal quarter-end. The PSUs are payable in cash based on the number of PSUs credited to the participating director’s account, valued on the basis of the fair value at fiscal quarter-end on or following termination of the director’s service. The liabilities of the plan of $ 1.8 million as of January 29, 2022 and $ 1.0 million as of January 30, 2021 are based on 64,227 and 23,644 outstanding PSUs, respectively, and are presented in other liabilities in the accompanying consolidated balance sheets. Gains and losses resulting from changes in the fair value of the PSUs are charged to selling and administrative expenses in the accompanying consolidated statements of earnings (loss). ​ 6. INCOME TAXES ​ The components of earnings (loss) before income taxes consisted of domestic earnings before income taxes of $ 152.5 million and $ 37.3 million in 2021 and 2019, respectively, and domestic loss before income taxes of $ 441.5 million in 2020. The Company’s international earnings before incomes taxes were $ 36.7 and $ 41.3 million in 2021 and 2019, respectively, and international losses before income taxes were $ 75.6 million in 2020. The components of income tax provision (benefit) on earnings (loss) were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ($ thousands) 2021 2020 2019 Federal ​ ​ ​ Current ​ $ 36,388 ​ $ ( 37,140 ) ​ $ 4,003 Deferred ​ ( 227 ) ​ ( 45,145 ) ​ 5,390 Total federal income tax provision (benefit) ​ 36,161 ​ ( 82,285 ) ​ 9,393 State ​ ​ ​ Current ​ 4,012 ​ 1,532 ​ 290 Deferred ​ 6,531 ​ ( 9,038 ) ​ 2,403 Total state income tax provision (benefit) ​ 10,543 ​ ( 7,506 ) ​ 2,693 International ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ ​ 4,615 ​ ​ 2,288 ​ ​ 3,914 Deferred ​ ( 238 ) ​ 9,386 ​ 511 Total international income tax provision ​ 4,377 ​ 11,674 ​ 4,425 Total income tax provision (benefit) ​ $ 51,081 ​ $ ( 78,117 ) ​ $ 16,511 ​ 67 Table of Contents The differences between the income tax provision (benefit) reflected in the consolidated financial statements and the amounts calculated at the federal statutory income tax rate were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ($ thousands) 2021 2020 2019 Income taxes at statutory rate ​ $ 39,741 ​ $ ( 108,593 ) ​ $ 16,505 State income taxes, net of federal tax benefit ​ 8,361 ​ ( 17,433 ) ​ 2,218 International earnings taxed at differing rates from U.S. statutory ​ ( 3,588 ) ​ ( 5,210 ) ​ ( 4,071 ) Share-based compensation ​ 94 ​ 1,094 ​ 86 Non-deductibility of goodwill impairment ​ — ​ 20,179 ​ — Impairment of international trade name taxed at higher rate ​ — ​ ( 1,440 ) ​ — Provision for valuation allowance, net of utilization ​ 8,978 ​ 41,019 ​ 872 CARES Act NOL, net carryback benefit (1) ​ ​ 365 ​ ​ ( 8,203 ) ​ ​ — Non-deductibility of 162(m) limitations ​ ​ 3,377 ​ ​ 1,005 ​ ​ 1,113 GILTI, BEAT and FDII provisions ​ 346 ​ — ​ 668 International entity restructuring (2) ​ ​ ( 6,697 ) ​ ​ — ​ ​ — Other (3) ​ 104 ​ ( 535 ) ​ ( 880 ) Total income tax provision (benefit) ​ $ 51,081 ​ $ ( 78,117 ) ​ $ 16,511 (1) The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law during 2020. Among the Internal Revenue Code provisions modified by the CARES Act was a five-year carryback period for net operating losses incurred in the 2018, 2019 and 2020 tax years; temporary removal of the 80% limitation on net operating loss usage, reinstated for tax years after 2020; a temporary increase in the interest expense limitation and acceleration of refundable AMT credit. The five-year carryback presented an opportunity to carry back net operating losses from years with a statutory 21 % federal tax rate to years when the rate was 35 % . (2) Reflects the deferred tax impacts of the liquidation of certain international subsidiaries, with related impacts presented in the provision for valuation allowance, net of utilization line in the table above. (3) The other category of income tax provision (benefit) principally represents the impact of expenses that are not deductible or partially deductible for federal income tax purposes and the impact of any return-to-provision adjustments. ​ 68 Table of Contents Significant components of the Company’s deferred income tax assets and liabilities were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ($ thousands) January 29, 2022 January 30, 2021 Deferred Tax Assets ​ ​ Lease obligations ​ $ 149,123 ​ $ 176,953 Goodwill ​ ​ 43,510 ​ ​ 56,191 Net operating loss carryforward/carryback ​ 14,441 ​ 20,736 Accrued expenses ​ 25,314 ​ 18,610 Employee benefits, compensation and insurance ​ ​ 15,751 ​ ​ 11,006 Accounts receivable ​ 5,735 ​ 6,149 Inventory capitalization and inventory reserves ​ 6,013 ​ 4,130 Impairment of investment in nonconsolidated affiliate ​ 1,470 ​ 1,470 Postretirement and postemployment benefit plans ​ 259 ​ 285 Other ​ 1,261 ​ 1,259 Total deferred tax assets, before valuation allowance ​ 262,877 ​ 296,789 Valuation allowance ​ ( 58,959 ) ​ ( 49,981 ) Total deferred tax assets, net of valuation allowance ​ $ 203,918 ​ $ 246,808 ​ ​ ​ Deferred Tax Liabilities ​ ​ Lease right-of-use assets ​ $ ( 134,888 ) ​ $ ( 151,962 ) Intangible assets ​ ​ ( 10,624 ) ​ ​ ( 30,532 ) LIFO inventory valuation ​ ( 37,675 ) ​ ( 38,437 ) Retirement plans ​ ( 23,718 ) ​ ( 21,041 ) Capitalized software ​ ( 5,042 ) ​ ( 5,331 ) Depreciation ​ ( 3,818 ) ​ ( 4,779 ) Other ​ ( 2,884 ) ​ ( 2,970 ) Total deferred tax liabilities ​ ( 218,649 ) ​ ( 255,052 ) Net deferred tax liability ​ $ ( 14,731 ) ​ $ ( 8,244 ) ​ As of January 29, 2022, the Company had various federal, state and international net operating loss (“NOL”) carryforwards with tax values totaling $ 14.4 million. The state NOLs totaling $ 4.8 million have carryforward periods ranging from one to 20 years . The Company has NOLs in Canada and the United Kingdom of $ 7.7 million and $ 1.9 million, respectively. The Canada NOLs have carryforward periods ranging from 15 to 20 years , while the United Kingdom NOLs have no expiration. As of January 29, 2022, the Company is in a three-year cumulative loss position for federal, state and certain international tax jurisdictions. Accordingly, as of January 29, 2022, the Company increased its valuation allowances on deferred tax assets to $ 59.0 million, reflecting the uncertainty regarding the utilization of its deferred tax assets. ​ As of January 29, 2022, no deferred taxes have been provided on the accumulated unremitted earnings of the Company’s international 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 international earnings, as required by the Tax Cuts and Jobs Act. The Company periodically evaluates its international investment opportunities and plans, as well as its international working capital needs, to determine the level of investment required and, accordingly, determines the level of international earnings that is considered indefinitely reinvested. Based upon that evaluation, earnings of the Company’s international subsidiaries that are not otherwise subject to United States taxation are considered to be indefinitely reinvested, and accordingly, deferred taxes have not been provided. If changes occur in future investment opportunities and plans, those changes will be reflected when known and may result in providing residual United States deferred taxes on unremitted international earnings. If the Company’s unremitted international earnings were not considered indefinitely reinvested as of January 29, 2022, an immaterial amount of additional deferred taxes would have been provided. Uncertain Tax Positions ASC 740, Income Taxes , establishes a single model to address accounting for uncertain tax positions. The standard clarifies the accounting for income taxes by prescribing a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. The standard also provides guidance on derecognition, measurement classification, interest and penalties, accounting in interim periods, disclosure and transition. As of January 29, 2022, 69 Table of Contents January 30, 2021 and February 1, 2020, the Company had unrecognized tax benefits of $ 1.0 million, $ 1.5 million and $ 1.9 million, respectively, associated with international jurisdictions. For federal purposes, the Company’s tax filings for fiscal years 2018 to 2020 remain open to examination but are not currently being examined. The Company also files tax returns in various international jurisdictions and numerous states for which various tax years are subject to examination and currently involved in audits. While the Company is involved in examinations in certain jurisdictions, it does not expect any significant changes in its liability for uncertain tax positions during the next 12 months. ​ 7. BUSINESS SEGMENT INFORMATION ​ The Company’s reportable segments are Famous Footwear and Brand Portfolio. The Famous Footwear segment is comprised of Famous Footwear, famousfootwear.com and famousfootwear.ca. Famous Footwear operated 894 stores at the end of 2021, selling primarily branded footwear for the entire family. The Brand Portfolio segment is comprised of wholesale operations selling the Company’s branded footwear, and the retail stores and e-commerce sites associated with those brands. This segment sources, manufactures and markets licensed, branded and private-label footwear primarily to online retailers, national chains, department stores, mass merchandisers and independent retailers as well as Company-owned Famous Footwear, Sam Edelman, Naturalizer and Allen Edmonds stores and e-commerce businesses. The Brand Portfolio segment included 70 branded retail stores in the United States and 16 branded retail stores in China at the end of 2021. The Company’s Famous Footwear and Brand Portfolio reportable segments are operating units that are managed separately. These reportable segments reflect the level at which the Company’s chief operating decision maker evaluates financial performance and allocates resources. Operating earnings (loss) for the reportable segments represents gross profit, less selling and administrative expenses, impairment of goodwill and intangible assets and restructuring and other special charges, net. The accounting policies of the reportable segments are the same as those described in Note 1 to the consolidated financial statements. Intersegment sales are generally recorded at a profit, and intersegment earnings related to inventory on hand at the purchasing segment are eliminated against the earnings. Corporate assets, administrative expenses and other costs and recoveries that are not allocated to the operating units, as well as the elimination of intersegment sales and profit, are reported in the Eliminations and Other category. 70 Table of Contents Following is a summary of certain key financial measures for the respective periods: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Famous ​ Brand ​ Eliminations ​ ​ ​ ($ thousands) Footwear Portfolio and Other Total Fiscal 2021 ​ ​ ​ ​ ​ ​ ​ ​ Net sales ​ $ 1,748,291 ​ $ 1,081,003 ​ $ ( 51,690 ) ​ $ 2,777,604 Intersegment sales ​ — ​ 51,690 ​ — ​ 51,690 Depreciation and amortization ​ 20,333 ​ 23,762 ​ 8,235 ​ 52,330 Operating earnings (loss) ​ 276,415 ​ 35,928 ​ ( 106,536 ) ​ 205,807 Segment assets ​ 705,063 ​ 944,241 ​ 194,622 ​ 1,843,926 Purchases of property and equipment ​ 12,480 ​ 3,977 ​ 1,936 ​ 18,393 Capitalized software ​ 121 ​ 8 ​ 5,623 ​ 5,752 ​ ​ ​ ​ ​ Fiscal 2020 ​ ​ ​ ​ Net sales ​ $ 1,263,551 ​ $ 902,481 ​ $ ( 48,962 ) ​ $ 2,117,070 Intersegment sales ​ — ​ 48,962 ​ — ​ 48,962 Depreciation and amortization ​ 23,090 ​ 28,889 ​ 8,560 ​ 60,539 Operating loss ​ ( 23,821 ) ​ ( 408,444 ) ​ ( 53,393 ) ​ ( 485,658 ) Segment assets ​ 765,754 ​ 851,027 ​ 250,269 ​ 1,867,050 Purchases of property and equipment ​ 7,693 ​ 6,486 ​ 2,607 ​ 16,786 Capitalized software ​ 870 ​ 153 ​ 4,251 ​ 5,274 ​ ​ ​ ​ ​ Fiscal 2019 ​ ​ ​ ​ Net sales ​ $ 1,588,057 ​ $ 1,406,460 ​ $ ( 72,955 ) ​ $ 2,921,562 Intersegment sales ​ — ​ 72,955 ​ — ​ 72,955 Depreciation and amortization ​ 26,706 ​ 29,875 ​ 8,981 ​ 65,562 Operating earnings (loss) ​ 76,896 ​ 58,153 ​ ( 31,236 ) ​ 103,813 Segment assets ​ 891,042 ​ 1,383,500 ​ 157,165 ​ 2,431,707 Purchases of property and equipment ​ 16,129 ​ 21,973 ​ 6,431 ​ 44,533 Capitalized software ​ 16 ​ 1,544 ​ 4,059 ​ 5,619 ​ Products purchased for the Famous Footwear segment from three key third-party suppliers (Nike, Skechers and adidas) represented approximately 26 %, 25 % and 22 % of consolidated net sales for 2021, 2020 and 2019, respectively. ​ Following is a reconciliation of operating earnings (loss) to earnings (loss) before income taxes: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ($ thousands) 2021 2020 2019 Operating earnings (loss) $ 205,807 ​ $ ( 485,658 ) ​ $ 103,813 Interest expense, net ( 30,930 ) ​ ( 48,287 ) ​ ( 33,123 ) Loss on early extinguishment of debt ( 1,011 ) ​ — ​ — Other income, net 15,378 ​ 16,834 ​ 7,903 Earnings (loss) before income taxes $ 189,244 ​ $ ( 517,111 ) ​ $ 78,593 ​ For geographic purposes, the domestic operations include the Company’s domestic retail operations, the wholesale distribution of licensed, branded and private-label footwear to a variety of retail customers, including the Famous Footwear and Brand Portfolio stores, as well as the Company’s e-commerce businesses. The Company’s international operations consist of wholesale and retail operations primarily in Eastern Asia, Canada and Europe. The Eastern Asia operations primarily include first-cost transactions, where footwear is sold at international ports to customers who then import the footwear into the United States and other countries. 71 Table of Contents A summary of the Company’s net sales and long-lived assets, including lease right-of-use assets and property and equipment, by geographic area were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ($ thousands) 2021 2020 2019 Net Sales ​ ​ ​ United States ​ $ 2,600,848 ​ $ 1,984,713 ​ $ 2,734,912 Eastern Asia ​ 119,857 ​ 77,793 ​ 98,045 Canada ​ 43,789 ​ 46,781 ​ 80,247 Other ​ 13,110 ​ 7,783 ​ 8,358 Total net sales ​ $ 2,777,604 ​ $ 2,117,070 ​ $ 2,921,562 ​ ​ ​ ​ Long-Lived Assets (1) ​ ​ ​ United States ​ $ 630,519 ​ $ 703,642 ​ $ 881,338 Canada ​ 14,687 ​ 20,246 ​ 35,317 Eastern Asia ​ 8,357 ​ 2,660 ​ 3,527 Other ​ 105 ​ 192 ​ 258 Total long-lived assets ​ $ 653,668 ​ $ 726,740 ​ $ 920,440 (1) Long-lived assets include $ 503,430 , $ 554,303 and $ 695,594 of lease right-of-use assets in 2021, 2020 and 2019, respectively. ​ 8. INVENTORIES ​ The Company’s net inventory balance was comprised of the following: ​ ​ ​ ​ ​ ​ ​ ​ ($ thousands) January 29, 2022 January 30, 2021 Raw materials ​ $ 16,764 ​ $ 14,592 Work-in-process ​ 614 ​ 349 Finished goods ​ 579,429 ​ 473,014 Inventories, net ​ $ 596,807 ​ $ 487,955 ​ As of January 29, 2022 and January 30, 2021, the Company’s inventory balance included $ 0.1 million and $ 0.8 million, respectively, of finished goods product subject to consignment arrangements with wholesale customers. ​ 9. PROPERTY AND EQUIPMENT ​ Property and equipment consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ($thousands) January 29, 2022 January 30, 2021 Land and buildings ​ $ 48,355 ​ $ 53,561 Leasehold improvements ​ 197,218 ​ 208,939 Technology equipment ​ 49,550 ​ 49,105 Machinery and equipment ​ 98,308 ​ 98,862 Furniture and fixtures ​ 127,125 ​ 126,405 Construction in progress ​ 3,066 ​ 6,773 Property and equipment ​ 523,622 ​ 543,645 Allowances for depreciation ​ ( 373,384 ) ​ ( 371,208 ) Property and equipment, net ​ $ 150,238 ​ $ 172,437 ​ 72 Table of Contents Useful lives of property and equipment are as follows: ​ ​ ​ ​ ​ Years Buildings 5 - 30 Leasehold improvements ​ 5 - 20 Technology equipment 2 - 10 Machinery and equipment 4 - 20 Furniture and fixtures 3 - 10 ​ The Company recorded charges for impairment of $ 4.1 million, $ 56.3 million and $ 5.9 million in 2021, 2020 and 2019, respectively, primarily for operating lease right-of-use assets, leasehold improvements and furniture and fixtures in the Company’s retail stores. All of the charges in 2021 and 2019 are presented in selling and administrative expenses. Of the $ 56.3 million of impairment charges in 2020, $ 55.3 million is reflected in restructuring and other special charges, and $ 1.0 million is reflected in selling and administrative expenses. Fair value was based on estimated future cash flows to be generated by retail stores, discounted at a market rate of interest. Refer to Note 4, Note 12 and Note 13 to the consolidated financial statements for further discussion of these impairment charges. Interest costs for major asset additions are capitalized during the construction or development period and amortized over the lives of the related assets. The Company capitalized interest of $ 0.6 million in 2019 related to the new company-operated Brand Portfolio warehouse facilities in California, with no corresponding interest capitalized in 2021 or 2020. ​ Property and Equipment, Held for Sale In April 2021, the Company announced that it would begin marketing for sale its nine -acre corporate headquarters campus (the “Campus”) located in Clayton, Missouri and the Company is currently in negotiations to sell the campus. The Company expects a portion of the campus to qualify as a completed sale within twelve months . Accordingly, as of January 29, 2022, that portion of the Campus, which is included in the Eliminations and Other category, is classified within property and equipment, held for sale on the consolidated balance sheet. The remaining portion of the Campus that is not anticipated to qualify as a completed sale within twelve months is classified as property and equipment, net on the consolidated balance sheet as of January 29, 2022. The Company evaluated the Campus asset group for impairment indicators and determined that no indicators were present. ​ ​ 10. GOODWILL AND INTANGIBLE ASSETS ​ Goodwill and intangible assets were as follows: ​ ​ ​ ​ ​ ​ ​ ($ thousands) January 29, 2022 January 30, 2021 Intangible Assets ​ ​ Famous Footwear $ 2,800 ​ $ 2,800 Brand Portfolio 342,083 ​ 342,083 Total intangible assets 344,883 ​ 344,883 Accumulated amortization ( 122,336 ) ​ ( 109,768 ) Total intangible assets, net 222,547 ​ 235,115 Goodwill ​ Brand Portfolio (1) 4,956 ​ 4,956 Total goodwill 4,956 ​ 4,956 Goodwill and intangible assets, net $ 227,503 ​ $ 240,071 (1) The carrying amount of goodwill as of January 29, 2022 and January 30, 2021 is presented net of accumulated impairment charges of $ 415.7 million. 73 Table of Contents The Company’s intangible assets as of January 29, 2022 and January 30, 2021 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ($ thousands) January 29, 2022 ​ Estimated Useful Lives ​ ​ Accumulated Accumulated ​ ​ ​ ​ (In Years) ​ Cost Basis ​ Amortization ​ Impairment ​ Net Carrying Value Trade names 2 - 40 ​ $ 299,488 ​ $ 112,061 ​ $ 10,200 ​ $ 177,227 Trade names Indefinite ​ 107,400 ​ — ​ 92,000 ​ 15,400 Customer relationships 15 - 16 44,200 10,275 4,005 29,920 ​ ​ ​ ​ $ 451,088 ​ $ 122,336 ​ $ 106,205 ​ $ 222,547 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ January 30, 2021 ​ ​ Estimated Useful Lives ​ ​ ​ ​ Accumulated ​ ​ Accumulated ​ ​ ​ ​ (In Years) Cost Basis Amortization Impairment Net Carrying Value Trade names ​ 2 - 40 ​ $ 299,488 ​ $ 101,919 ​ $ 10,200 ​ $ 187,369 Trade names Indefinite ​ 107,400 ​ ​ — ​ 92,000 ​ 15,400 Customer relationships 15 - 16 ​ 44,200 ​ 7,849 ​ 4,005 ​ 32,346 ​ ​ ​ ​ $ 451,088 ​ $ 109,768 ​ $ 106,205 ​ $ 235,115 ​ Amortization expense related to intangible assets was $ 12.6 million in 2021, $ 13.0 million in 2020 and $ 13.1 million in 2019. The Company estimates $ 12.1 million of amortization expense related to intangible assets in 2022, $ 11.9 million in 2023 and $ 11.0 million in 2024, 2025 and 2026 . Goodwill is tested for impairment at least annually, or more frequently if events or circumstances indicate it might be impaired, using either the qualitative assessment or a quantitative fair value-based test. During 2021 and 2019, the goodwill impairment testing was performed as of the first day of the fourth fiscal quarter, which resulted in no impairment charges. During the first quarter of 2020, as a result of the significant decline in the Company’s share price and market capitalization and the impact of the pandemic on the Company’s business operations, the Company determined that an interim assessment of goodwill was required. A quantitative assessment was performed for all reporting units as of May 2, 2020. 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, which are reflected within the Brand Portfolio segment. In addition to the interim assessment, the Company performed an impairment review of the remaining goodwill balance, which is associated with the Blowfish Malibu reporting unit, as of the first day of the fourth fiscal quarter. That review indicated no impairment. 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. The Company did not record any impairment charges for intangible assets during 2021 or 2019. As a result of the triggering event from the economic impacts of the pandemic, an interim assessment was performed as of May 2, 2020. The interim indefinite-lived trade name impairment review resulted in total impairment charges of $ 22.4 million, 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. In addition to the interim assessment, the Company tested the indefinite-lived intangible assets as of the first day of the fourth fiscal quarter. As a result of the impairment indicator for Allen Edmonds, the Company also tested the definite-lived Allen Edmonds customer relationships intangible asset. Those reviews 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. Total intangible asset impairment charges of $ 46.2 million in 2020 are reflected within the Brand Portfolio segment. ​ 11. LONG-TERM AND SHORT-TERM FINANCING ARRANGEMENTS ​ Credit Agreement The Company maintains a revolving credit facility for working capital needs. The Company is the lead borrower, and Sidney Rich Associates, Inc., BG Retail, LLC, Allen Edmonds LLC, Vionic Group LLC and Vionic International LLC 74 Table of Contents are each co-borrowers and guarantors. On October 5, 2021, the Company entered into a Fifth Amendment to Fourth Amended and Restated Credit Agreement (as so amended, the "Credit Agreement") which, among other modifications, extended the maturity date of the credit facility from January 18, 2024 to October 5, 2026, and decreased the amount available under the revolving credit facility by $ 100.0 million to an aggregate amount of up to $ 500.0 million, subject to borrowing base restrictions, which may be further increased by up to $ 250.0 million. The Credit Agreement also decreased the spread applied to the London Interbank Offered Rate (“LIBOR”) or prime rate by a total of 75 basis points. ​ Borrowing availability under the Credit Agreement is limited to the lesser of the total commitments and the borrowing base ("Loan Cap"), which is based on stated percentages of the sum of eligible accounts receivable, eligible inventory and eligible credit card receivables, as defined, less applicable reserves. Under the Credit Agreement, the Loan Parties’ obligations are secured by a first-priority security interest in all accounts receivable, inventory and certain other collateral. Interest on borrowings is at variable rates based on LIBOR (with a floor of 0.0 %) or the prime rate (as defined in the Credit Agreement), plus a spread. The interest rate and fees for letters of credit vary based upon the level of excess availability under the Credit Agreement. There is an unused line fee payable on the unused portion under the facility and a letter of credit fee payable on the outstanding face amount under letters of credit. The Credit Agreement limits the Company’s ability to create, incur, assume or permit to exist additional indebtedness and liens, make investments or specified payments, give guarantees, pay dividends, make capital expenditures and merge or acquire or sell assets. In addition, if excess availability falls below the greater of 10.0 % of the Loan Cap and $ 40.0 million for three consecutive business days, and the fixed charge coverage ratio is less than 1.25 to 1.0, the Company would be in default under the Credit Agreement and certain additional covenants would be triggered. 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. 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. The Company was in compliance with all covenants and restrictions under the Credit Agreement as of January 29, 2022. The maximum amount of borrowings under the Credit Agreement at the end of any month was $ 290.0 million and $ 438.5 million in 2021 and 2020, respectively. In March 2020, the Company increased the borrowings on the revolving credit facility to $ 440.0 million as a precautionary measure to increase its cash position and preserve financial flexibility given the uncertainty resulting from COVID-19. The Company made debt reduction a priority during the second half of 2020 and throughout 2021. As of January 29, 2022, the Company had $ 290.0 million of borrowings outstanding and $ 10.8 million in letters of credit outstanding under the Credit Agreement, with total additional borrowing availability of $ 155.2 million at January 29, 2022. Average daily borrowings during the year were $ 172.8 million and $ 299.8 million in 2021 and 2020, respectively, and the weighted-average interest rates approximated 2.5 % and 3.4 % for the respective periods. Senior Notes On July 27, 2015, the Company issued $ 200.0 million aggregate principal amount of Senior Notes due on August 15, 2023 (the "Senior Notes"). The Senior Notes bore interest at 6.25 %, which was payable on February 15 and August 15 of each year. The Senior Notes were guaranteed on a senior unsecured basis by each of the Company’s subsidiaries that is a borrower or guarantor under the Credit Agreement. On August 16, 2021, the Company redeemed $ 100.0 million of Senior 75 Table of Contents Notes at 100.0 %. In addition, on January 3, 2022, the remaining $ 100.0 million of Senior Notes were redeemed at 100.0 %, extinguishing the Company’s long-term debt. ​ Loss on Early Extinguishment of Debt In conjunction with the redemptions of the Senior Notes in August 2021 and January 2022, prior to the maturity in August 2023, the Company incurred losses on early extinguishment of debt totaling $ 0.8 million. In addition, the Company incurred a loss on early extinguishment of debt of $ 0.2 million associated with the amendment of the revolving credit facility prior to its maturity. ​ ​ 12. LEASES ​ The Company leases all of its retail locations, a manufacturing facility, and certain office locations, distribution centers and equipment. At contract inception, leases are evaluated and classified as either operating or finance leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet. ​ During the first quarter of 2019, the Company adopted ASC 842, using the modified retrospective transition method. The Company elected the package of practical expedients and the expedient to account for lease and non-lease components as a single component for the entire population of operating lease assets. The Company did not elect the hindsight practical expedient to reevaluate the lease term of existing contracts. Lease right-of-use assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term. The majority of the Company’s leases do not provide an implicit rate and therefore, the Company uses an incremental borrowing rate based on the information available at the commencement date to determine the present value of future payments. Lease expense for the minimum lease payments is recognized on a straight-line basis over the lease term. Variable lease payments are expensed as incurred. The Company regularly analyzes the results of all of its stores and assesses the viability of underperforming stores to determine whether events or circumstances exist that indicate the stores should be closed or whether the carrying amount of their long-lived assets may not be recoverable. After allowing for an appropriate start-up period, unusual nonrecurring events, property and equipment at stores and the lease right-of-use assets indicated as impaired are written down to fair value as calculated using a discounted cash flow method. 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. The Company recorded asset impairment charges, primarily related to underperforming retail stores, of $ 4.1 million, $ 56.3 million and $ 5.9 million during 2021, 2020 and 2019, respectively. The impairment charges recorded in 2020, including $ 31.4 million associated with operating lease right-of-use assets and $ 24.9 million associated with property and equipment, primarily reflect the impact of the pandemic on the Company’s retail operations and estimates of remaining cash flows for each store, as well as the decision to close all but two of the Company’s Naturalizer retail stores. Refer to Note 4 and Note 13 to the consolidated financial statements for further discussion on these impairment charges. As a result of the temporary store closures during the first half of 2020 associated with the pandemic, certain leases were amended to provide rent abatements and/or deferral of lease payments. Deferred payments continue to be reflected in the lease obligations on the consolidated balance sheets. Under relief provided by the FASB, entities could make a policy election to account for the lease concessions related to COVID-19 as if the enforceable rights existed under the original contract, accounting for them as variable rent rather than lease modifications. The Company made a policy election to account for rent abatements as variable rent. Accordingly, in 2021 and 2020, the Company recorded $ 2.1 million and $ 5.4 million, respectively, in lease concessions as a reduction of rent expense within selling and administrative expenses in the consolidated statements of earnings (loss). Rent concessions for leases that were extended were recognized as a lease modification. 76 Table of Contents The weighted-average lease term and discount rate as of January 29, 2022 and January 30, 2021 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ January 29, 2022 ​ ​ January 30, 2021 ​ Weighted-average remaining lease term (in years) 6.5 ​ ​ 6.8 ​ Weighted-average discount rate 4.2 % ​ 4.2 % ​ During 2021, the Company entered into new or amended leases that resulted in the recognition of right-of-use assets and lease obligations of $ 118.1 million on the consolidated balance sheets. As of January 29, 2022, the Company has entered into lease commitments for four retail locations for which the leases have not yet commenced. The Company anticipates that the leases for three of the new retail locations will begin in the next fiscal year and one will begin in fiscal year 2023. Upon commencement, right-of-use assets and lease liabilities of approximately $ 2.2 million and $ 1.2 million will be recorded on the consolidated balance sheets, in 2022 and 2023, respectively. The components of lease expense for 2021 and 2020 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ($ thousands) 2021 2020 Operating lease expense ​ $ 149,850 ​ $ 167,624 Variable lease expense ​ 40,654 ​ 48,443 Short-term lease expense ​ 2,837 ​ 4,512 Sublease income ​ ( 652 ) ​ ( 96 ) Total lease expense (1) ​ $ 192,689 ​ $ 220,483 (1) Net of lease concessions recognized of $ 2.1 million and $ 5.4 million for 2021 and 2020, respectively. ​ The aggregate future annual lease obligations at January 29, 2022 were as follows: ​ ​ ​ ​ ​ ($ thousands) ​ 2022 ​ $ 149,984 2023 ​ 122,059 2024 ​ 96,474 2025 ​ 76,467 2026 ​ 58,845 Thereafter ​ 165,948 Total minimum operating lease payments ​ $ 669,777 Less imputed interest ​ ( 88,373 ) Present value of lease obligations ​ $ 581,404 ​ Supplemental cash flow information related to leases is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ($ thousands) 2021 2020 2019 Cash paid for lease liabilities (1) ​ $ 179,921 ​ $ 145,552 ​ $ 196,033 Cash received from sublease income ​ 652 ​ 96 ​ 269 ​ (1) Cash paid for lease liabilities in 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 closures, as further discussed in Note 4 to the consolidated financial statements. In addition, cash paid for lease liabilities in 2020 was significantly lower than comparable periods, reflecting the deferral of lease payments during the onset of the pandemic. ​ 13. FAIR VALUE MEASUREMENTS ​ Fair Value Hierarchy Fair value measurement disclosure requirements specify a hierarchy of valuation techniques based upon whether the inputs to those valuation techniques reflect assumptions other market participants would use based upon market data obtained 77 Table of Contents from independent sources (“observable inputs”) or reflect the Company’s own assumptions of market participant valuation (“unobservable inputs”). In accordance with the fair value guidance, the inputs to valuation techniques used to measure fair value are categorized into three levels based on the reliability of the inputs as follows: ● Level 1 – Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities; ● Level 2 – Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly; and ● Level 3 – Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. In determining fair value, the Company uses valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company also considers counterparty credit risk in its assessment of fair value. Classification of the financial or non-financial asset or liability within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. Measurement of Fair Value The Company measures fair value as an exit price, the price to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date, using the procedures described below for all financial and non-financial assets and liabilities measured at fair value. Money Market Funds The Company has cash equivalents primarily consisting of short-term money market funds backed by U.S. Treasury securities. The primary objective of these investing activities is to preserve the Company’s capital for the purpose of funding operations and it does not enter into money market funds for trading or speculative purposes. The fair value is based on unadjusted quoted market prices for the funds in active markets with sufficient volume and frequency (Level 1). Deferred Compensation Plan Assets and Liabilities The Company maintains a non-qualified deferred compensation plan (the “Deferred Compensation Plan”) for the benefit of certain management employees. The investment funds offered to the participants generally correspond to the funds offered in the Company’s 401(k) plan, and the account balance fluctuates with the investment returns on those funds. 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. 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. Consequently, the trust qualifies as a grantor trust for income tax purposes (i.e., a “Rabbi Trust”). The liabilities of the Deferred Compensation Plan are presented in other accrued expenses and the assets held by the trust are classified within prepaid expenses and other current assets in the accompanying consolidated balance sheets. Changes in deferred compensation plan assets and liabilities are charged to selling and administrative expenses. The fair value is based on unadjusted quoted market prices for the funds in active markets with sufficient volume and frequency (Level 1). Deferred Compensation Plan for Non-Employee Directors Non-employee directors are eligible to participate in a deferred compensation plan with deferred amounts valued as if invested in the Company’s common stock through the use of phantom stock units (“PSUs”). Under the plan, each participating director’s account is credited with the number of PSUs equal to the number of shares of the Company’s common stock that the participant could purchase or receive with the amount of the deferred compensation, based upon the average of the high and low prices of the Company’s common stock on the last trading day of the fiscal quarter when the cash compensation was earned. Dividend equivalents are paid on PSUs at the same rate as dividends on the Company’s common stock and are re-invested in additional PSUs at the next fiscal quarter-end. The liabilities of the plan are based on the fair value of the outstanding PSUs and are presented in other accrued expenses (current portion) or other liabilities in the accompanying consolidated balance sheets. Gains and losses resulting from changes in the fair value of the PSUs are 78 Table of Contents presented in selling and administrative expenses in the Company’s consolidated statements of earnings (loss). 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). Restricted Stock Units for Non-Employee Directors Under the Company’s incentive compensation plans, cash-equivalent restricted stock units (“RSUs”) of the Company were previously granted at no cost to non-employee directors. These cash-equivalent RSUs are subject to a vesting requirement (usually one year), earn dividend-equivalent units and are settled in cash on the date the director terminates service or such earlier date as a director may elect, subject to restrictions, based on the then current fair value of the Company’s common stock. The fair value of each cash-equivalent RSU payable 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). Additional information related to RSUs for non-employee directors is disclosed in Note 15 to the consolidated financial statements. Mandatory Purchase Obligation The Company recorded a mandatory purchase obligation of the noncontrolling interest in conjunction with the acquisition of Blowfish Malibu in July 2018 as further discussed in Note 4 in the consolidated financial statements. The fair value of the mandatory purchase obligation is based on the earnings formula specified in the Purchase Agreement (Level 3). The mandatory purchase obligation and any fair value adjustments are recorded as interest expense. The Company recorded fair value adjustments of $ 15.4 million, $ 23.9 million, $ 6.0 million during 2021, 2020 and 2019, respectively. The earnings projections and discount rate utilized in the initial estimate of the fair value of the mandatory purchase obligation required management judgment and were the assumptions to which the fair value calculation was the most sensitive. The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis at January 29, 2022 and January 30, 2021. The Company did not have any transfers between Level 1, Level 2 or Level 3 during 2021, 2020 or 2019. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements ($ thousands) Total Level 1 Level 2 Level 3 Asset (Liability) ​ ​ ​ ​ ​ ​ ​ ​ January 29, 2022: ​ ​ ​ ​ ​ ​ ​ ​ Non-qualified deferred compensation plan assets ​ $ 7,463 ​ $ 7,463 ​ $ — ​ $ — Non-qualified deferred compensation plan liabilities ​ ( 7,463 ) ​ ( 7,463 ) ​ — ​ ​ — Deferred compensation plan liabilities for non-employee directors ​ ( 1,770 ) ​ ( 1,770 ) ​ — ​ ​ — Restricted stock units for non-employee directors ​ ( 2,568 ) ​ ( 2,568 ) ​ — ​ ​ — January 30, 2021: ​ ​ ​ ​ ​ ​ ​ ​ Cash equivalents – money market funds ​ $ 45,000 ​ $ 45,000 ​ $ — ​ $ — Non-qualified deferred compensation plan assets ​ 7,918 ​ 7,918 ​ — ​ ​ — Non-qualified deferred compensation plan liabilities ​ ( 7,918 ) ​ ( 7,918 ) ​ — ​ ​ — Deferred compensation plan liabilities for non-employee directors ​ ( 989 ) ​ ( 989 ) ​ — ​ ​ — Restricted stock units for non-employee directors ​ ( 1,661 ) ​ ( 1,661 ) ​ — ​ ​ — Mandatory purchase obligation - Blowfish Malibu ​ ( 39,134 ) ​ — ​ — ​ ​ ( 39,134 ) ​ Impairment Charges The Company assesses the impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors the Company considers important that could trigger an impairment review include underperformance relative to expected 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. 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. 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 820, Fair Value Measurement . Long-lived assets held and used with a carrying amount of $ 545.1 million, $ 615.7 million and $ 780.2 million in 2021, 2020 and 2019, respectively, were assessed for indicators of impairment. This assessment resulted in the impairment charges presented in the table below, primarily for operating lease right-of-use assets, leasehold 79 Table of Contents improvements, and furniture and fixtures in the Company’s retail stores. Higher impairment charges were recorded in 2020, reflecting adverse economic conditions, driven in part by the COVID-19 pandemic. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ($ thousands) 2021 2020 2019 Long-Lived Asset Impairment Charges ​ ​ ​ Famous Footwear $ 1,241 ​ $ 14,900 ​ $ 1,980 Brand Portfolio 2,894 ​ 41,443 ​ 3,887 Total long-lived asset impairment charges $ 4,135 ​ $ 56,343 ​ $ 5,867 ​ The Company performed its annual impairment review of intangible assets, which involves estimating the fair value using significant unobservable inputs (Level 3). The intangible asset impairment reviews performed in 2021 and 2019 resulted in no impairment charges. As a result of its annual impairment testing, the Company recorded $ 46.2 million in impairment charges in 2020, as further discussed in Note 1 and Note 10 to the consolidated financial statements. During 2021, the Company performed a qualitative assessment of goodwill as of the first day of the fourth fiscal quarter. The review indicated no impairment. During 2020, the Company performed an interim impairment test of goodwill, as further discussed in Note 10 to the consolidated financial statements. A quantitative assessment was performed for all reporting units as of May 2, 2020, which involved estimating the fair value of the reporting units using significant unobservable inputs (Level 3). 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. The quantitative assessments performed as of the first day of the fourth fiscal quarter of 2020 and 2019 resulted in no impairment charges. Refer to Note 1 and Note 10 to the consolidated financial statements for additional information related to the goodwill impairment tests. Fair Value of the Company’s Other Financial Instruments The fair values of cash and cash equivalents (excluding money market funds discussed above), receivables and trade accounts payable approximate their carrying values due to the short-term nature of these instruments. The carrying amounts and fair values of the Company’s other financial instruments subject to fair value disclosures are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ January 29, 2022 January 30, 2021 ​ ​ Carrying ​ ​ ​ ​ Carrying ​ ​ ​ ($ thousands) Value (1) Fair Value Value (1) Fair Value Borrowings under revolving credit agreement ​ $ 290,000 ​ $ 290,000 ​ $ 250,000 ​ $ 250,000 Long-term debt ​ — ​ — ​ 200,000 ​ 201,000 Total debt ​ $ 290,000 ​ $ 290,000 ​ $ 450,000 ​ $ 451,000 (1) Excludes unamortized debt issuance costs and debt discount The fair value of the borrowings under revolving credit agreement approximates its carrying value due to its short-term nature (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). ​ 14. SHAREHOLDERS’ EQUITY ​ Stock Repurchase Programs On December 14, 2018 and September 2, 2019, the Board of Directors approved stock repurchase programs (“2018 Program" and "2019 Program", respectively) authorizing the repurchase of the Company’s outstanding common stock of up to 2.5 million shares in the 2018 Program and 5.0 million shares in the 2019 Program. The Company can use the repurchase programs to repurchase shares on the open market or in private transactions from time to time, depending on market conditions. The repurchase programs do not have an expiration date. Repurchases of common stock are limited 80 Table of Contents under the Company’s debt agreements. In total, 2.5 million shares have been repurchased under the 2018 Program and there are no additional shares authorized to be repurchased. During 2021, the Company repurchased 661,265 shares under the 2019 Program. There are 1,990,224 additional shares authorized to be repurchased under the 2019 Program as of January 29, 2022. Subsequent to year-end, the Board of Directors authorized an additional 7,000,000 shares under the Company’s stock repurchase programs. With this increase, the Company has 8,990,224 shares authorized to be repurchased under the repurchase programs. Repurchases Related to Employee Share-based Awards During 2021, 2020 and 2019, employees tendered 205,213 , 160,101 and 100,728 shares, respectively, related to certain share-based awards. These shares were tendered in satisfaction of the exercise price of stock options and/or to satisfy tax withholding amounts for non-qualified stock options, restricted stock and stock performance awards. Accordingly, these share repurchases are not considered a part of the Company’s publicly announced stock repurchase programs. Accumulated Other Comprehensive Loss The following table sets forth the changes in accumulated other comprehensive loss, net of tax, by component for 2021, 2020 and 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pension and ​ ​ Accumulated ​ ​ Foreign ​ Other ​ ​ ​ ​ Other ​ ​ Currency ​ Postretirement ​ Derivative ​ Comprehensive ($ thousands) ​ Translation ​ Transactions (1) ​ Transactions (2) ​ (Loss) Income Balance February 2, 2019 ​ $ 62 ​ $ ( 31,055 ) ​ $ ( 608 ) ​ $ ( 31,601 ) Other comprehensive (loss) income before reclassifications ​ ( 642 ) ​ ( 3,523 ) ​ 315 ​ ( 3,850 ) Reclassifications: ​ ​ ​ ​ Amounts reclassified from accumulated other comprehensive loss ​ — ​ 4,590 ​ 256 ​ 4,846 Tax benefit ​ — ​ ( 1,183 ) ​ ( 55 ) ​ ( 1,238 ) Net reclassifications ​ — ​ 3,407 ​ 201 ​ 3,608 Other comprehensive (loss) income ​ ( 642 ) ​ ( 116 ) ​ 516 ​ ( 242 ) Balance February 1, 2020 ​ $ ( 580 ) ​ $ ( 31,171 ) ​ $ ( 92 ) ​ $ ( 31,843 ) Other comprehensive income before reclassifications ​ 469 ​ 20,351 ​ 87 ​ 20,907 Reclassifications: ​ ​ ​ ​ Amounts reclassified from accumulated other comprehensive loss ​ — ​ 2,418 ​ 6 ​ 2,424 Tax benefit ​ — ​ ( 623 ) ​ ( 1 ) ​ ( 624 ) Net reclassifications ​ — ​ 1,795 ​ 5 ​ 1,800 Other comprehensive income ​ 469 ​ 22,146 ​ 92 ​ 22,707 Balance January 30, 2021 ​ $ ( 111 ) ​ $ ( 9,025 ) ​ $ — ​ $ ( 9,136 ) Other comprehensive loss before reclassifications ​ ( 677 ) ​ ( 116 ) ​ — ​ ( 793 ) Reclassifications: ​ ​ ​ ​ Amounts reclassified from accumulated other comprehensive loss ​ — ​ 1,788 ​ — ​ 1,788 Tax benefit ​ — ​ ( 465 ) ​ — ​ ( 465 ) Net reclassifications ​ — ​ 1,323 ​ — ​ 1,323 Other comprehensive (loss) income ​ ( 677 ) ​ 1,207 ​ — ​ 530 Balance January 29, 2022 ​ $ ( 788 ) ​ $ ( 7,818 ) ​ $ — ​ $ ( 8,606 ) (1) Amounts reclassified are included in other income, net. Refer to Note 5 to the consolidated financial statements for additional information related to pension and other postretirement benefits. (2) Amounts reclassified are included in net sales, costs of goods sold and selling and administrative expenses. Refer to Note 1 to the consolidated financial statements for additional information related to derivative financial instruments . 81 Table of Contents ​ 15. SHARE-BASED COMPENSATION ​ The Company has share-based incentive compensation plans under which certain officers, employees and members of the Board of Directors are participants and may be granted restricted stock, stock performance awards, restricted stock units and stock options. ASC 718, Compensation – Stock Compensation , and ASC 505, Equity , require companies to recognize compensation expense in an amount equal to the fair value of all share-based payments granted to employees over the requisite service period for each award. In certain limited circumstances, the Company’s incentive compensation plan provides for accelerated vesting of the awards, such as in the event of a change in control, qualified retirement, death or disability. The Company has a policy of issuing treasury shares in satisfaction of share-based awards. Share-based compensation expense of $ 12.3 million, $ 8.1 million and $ 10.2 million was recognized in 2021, 2020 and 2019, respectively, as a component of selling and administrative expenses. The following table details the share-based compensation expense by plan for 2021, 2020 and 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ($ thousands) 2021 2020 2019 Expense for share-based compensation plans, net of forfeitures: ​ ​ ​ Restricted stock ​ $ 7,308 ​ $ 6,840 ​ $ 9,597 Stock performance awards ​ 3,904 ​ 147 ​ ( 502 ) Restricted stock units ​ 1,085 ​ 1,109 ​ 1,129 Stock options ​ — ​ 1 ​ 22 Total share-based compensation expense ​ $ 12,297 ​ $ 8,097 ​ $ 10,246 ​ The Company issued 330,206 , 471,569 and 214,435 shares of common stock in 2021, 2020 and 2019, respectively, for restricted stock grants, stock performance awards issued to employees, stock options exercised and common and restricted stock grants issued to non-employee directors, net of forfeitures and shares withheld to satisfy the tax withholding requirement. The Company recognized an excess tax provision of $ 0.1 in both 2021 and 2019 and $ 1.1 million in 2020 related to restricted stock vestings and dividends, performance share award vestings and stock options exercised. The excess tax provision for the respective periods were recorded in income tax (provision) benefit. Restricted Stock Under the Company’s incentive compensation plans, restricted stock of the Company may be granted at no cost to certain officers, key employees and directors. Plan participants are entitled to cash dividends and voting rights for their respective shares. The restricted stock awards limit the sale or transfer of these shares during the requisite service period. Expense for restricted stock grants is recognized on a straight-line basis separately for each vesting portion of the stock award based upon fair value of the award on the date of grant. The fair value of the restricted stock grants is the quoted market price for the Company’s common stock on the date of grant. 82 Table of Contents The following table summarizes restricted stock activity for 2021, 2020 and 2019: ​ ​ ​ ​ ​ ​ ​ ​ Number of ​ ​ ​ ​ Nonvested ​ Weighted- ​ ​ Restricted ​ Average Grant ​ ​ Shares ​ Date Fair Value Nonvested at February 2, 2019 1,249,223 $ 29.17 Granted 463,234 ​ 22.93 Vested ( 222,562 ) ​ 30.26 Forfeited ( 218,100 ) ​ 28.83 Nonvested at February 1, 2020 1,271,795 ​ 26.77 Granted 707,931 ​ 6.99 Vested ( 430,837 ) ​ 28.27 Forfeited ( 151,662 ) ​ 22.19 Nonvested at January 30, 2021 1,397,227 ​ 16.74 Granted 616,442 ​ 19.40 Vested ( 540,647 ) ​ 26.39 Forfeited ( 82,625 ) ​ 15.37 Nonvested at January 29, 2022 1,390,397 ​ $ 14.24 ​ Of the 616,442 restricted shares granted during 2021, 4,910 shares have a cliff-vesting term of one year , 20,000 shares have a cliff-vesting term of two years and 591,532 shares have a graded-vesting term of three years . Of the 707,931 restricted shares granted during 2020, 12,748 shares have a cliff-vesting term of one year and 695,183 shares have a graded-vesting term of three years . Of the 463,234 restricted shares granted during 2019, 12,914 shares had a cliff-vesting term of one year and 450,320 shares have a graded-vesting term of three years . The shares that have a graded-vesting term of three years vest 50 % after two years and 50 % after three years . The total grant date fair value of restricted stock awards vested during the years ended January 29, 2022, January 30, 2021 and February 1, 2020, was $ 14.3 million, $ 4.4 million and $ 6.7 million, respectively. As of January 29, 2022, the total remaining unrecognized compensation cost related to nonvested restricted stock grants was $ 9.2 million, which will be amortized over the weighted-average remaining requisite service period of 1.6 years. Performance Share Awards Under the Company’s incentive compensation plans, common stock or cash may be awarded at the end of the performance period at no cost to certain officers and key employees if certain financial goals are met. Under the plan, employees are granted performance share awards at a target number of shares or units, which generally vest over a three-year service period. At the end of the vesting period, the employee will have earned an amount of shares between 0 % and 200 % of the targeted award, depending on the attainment of certain financial goals during the service period. If the awards are granted in units, the employee will be given an amount of cash ranging from 0 % to 200 % of the equivalent market value of the targeted award. Expense for performance share awards is recognized based upon the fair value of the awards on the date of grant and the anticipated number of shares or cash to be awarded on a straight-line basis for each vesting portion of the share award. 83 Table of Contents The following table summarizes performance share award activity for 2021, 2020 and 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of Nonvested Number of Nonvested ​ ​ ​ ​ Performance Share ​ Performance Share ​ ​ ​ ​ ​ Awards at Target ​ Awards at Maximum ​ Weighted-Average ​ ​ Level ​ Level ​ Grant Date Fair Value Nonvested at February 2, 2019 457,833 915,666 $ 28.49 Granted 180,000 360,000 ​ 23.42 Vested ( 149,833 ) ( 299,666 ) ​ 26.64 Forfeited ( 12,000 ) ( 24,000 ) ​ 28.33 Nonvested at February 1, 2020 476,000 952,000 ​ 27.16 Granted 87,750 175,500 ​ 7.47 Vested ( 153,000 ) ( 306,000 ) ​ 26.90 Forfeited ( 25,000 ) ( 50,000 ) ​ 18.64 Nonvested at January 30, 2021 385,750 771,500 ​ 23.33 Granted 160,500 321,000 ​ 13.05 Vested ( 148,000 ) ( 296,000 ) ​ 31.84 Forfeited ( 7,500 ) ( 15,000 ) ​ 11.19 Nonvested at January 29, 2022 390,750 781,500 ​ $ 16.12 ​ As of January 29, 2022, the remaining unrecognized compensation cost related to nonvested performance share awards was $ 2.7 million, which will be recognized over the remaining service period of one year . During 2021, the Company granted long-term incentive awards payable in cash for the 2021-2023 performance period, with a target value of $ 7.3 million and a maximum value of $ 14.6 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 consolidated balance sheets, is being accrued over the three-year performance period. There were no long-term cash incentive awards granted by the Company during 2020 or 2019. Stock Options Stock options are granted to employees at exercise prices equal to the quoted market price of the Company’s stock at the date of grant. Stock options generally vest over four years and have a term of 10 years . Compensation cost for all stock options is recognized over the requisite service period for each award. No dividends are paid on unexercised options. Expense for stock options is recognized on a straight-line basis separately for each vesting portion of the stock option award. The Company granted no stock options during 2021, 2020 and 2019. The following table summarizes stock option activity for 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted- ​ ​ Number of ​ Average ​ ​ Options ​ Exercise Price Outstanding at January 30, 2021 24,667 ​ $ 23.74 Exercised ( 2,000 ) ​ 8.85 Canceled or expired ( 6,000 ) ​ 13.60 Outstanding at January 29, 2022 16,667 ​ $ 29.18 Exercisable at January 29, 2022 16,667 ​ $ 29.18 ​ As of January 29, 2022, there are no nonvested options. Restricted Stock Units for Non-Employee Directors Equity-based grants may be made to non-employee directors in the form of restricted stock units (“RSUs”) payable in cash or common stock at no cost to the non-employee director. The RSUs are subject to a vesting requirement (usually one 84 Table of Contents year ), earn dividend equivalent units and are payable in cash or common stock on the date the director terminates service or such earlier date as a director may elect, subject to restrictions, based on the then current fair value of the Company’s common stock. Dividend equivalents are paid on outstanding RSUs at the same rate as dividends on the Company’s common stock, are automatically re-invested in additional RSUs and vest immediately as of the payment date for the dividend. Expense related to the initial grant of RSUs is recognized ratably over the vesting period based upon the fair value of the RSUs. The RSUs payable in cash are remeasured at the end of each period. Expense for the dividend equivalents is recognized at fair value immediately. Gains and losses resulting from changes in the fair value of the RSUs payable in cash subsequent to the vesting period and through the settlement date are recognized in the Company’s consolidated statements of earnings (loss). Refer to Note 5 and Note 13 to the consolidated financial statements for information regarding the deferred compensation plan for non-employee directors. The following table summarizes restricted stock unit activity for the year ended January 29, 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nonvested ​ ​ Outstanding ​ Accrued (3) ​ RSUs ​ ​ ​ ​ ​ Weighted- ​ ​ Number of ​ Number of ​ Total ​ Total ​ Average ​ ​ Vested ​ Nonvested ​ Number of ​ Number of ​ Grant Date ​ ​ RSUs ​ RSUs ​ RSUs (2) ​ RSUs ​ Fair Value January 30, 2021 416,234 107,784 524,018 488,089 ​ $ 9.85 Granted (1) 5,901 39,984 45,885 32,792 ​ 27.41 Vested 102,689 ( 102,689 ) — 33,995 ​ 10.67 January 29, 2022 524,824 45,079 569,903 554,876 ​ $ 23.56 (1) Granted RSUs include 6,605 RSUs resulting from dividend equivalents paid on outstanding RSUs, of which 5,901 related to outstanding vested RSUs and 704 to outstanding nonvested RSUs. (2) Total number of RSUs as of January 29, 2022 includes 433,298 RSUs payable in shares and 136,605 RSUs payable in cash. (3) Accrued RSUs include all fully vested awards and a pro-rata portion of nonvested awards based on the elapsed portion of the vesting period. The following table summarizes RSUs granted, vested and settled during 2021, 2020 and 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ($ thousands, except per unit amounts) 2021 2020 2019 Weighted-average grant date fair value of RSUs granted (1) ​ $ 26.88 ​ $ 10.12 ​ $ 19.59 Fair value of RSUs vested ​ $ 2,370 ​ $ 1,125 ​ $ 589 RSUs settled ​ — ​ 88,370 ​ 4,574 (1) Includes dividend equivalents granted on outstanding RSUs, which vest immediately. The following table details the RSU compensation expense and the related income tax (benefit) provision for 2021, 2020 and 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ($ thousands) 2021 2020 2019 Compensation expense (income) ​ $ 907 ​ $ ( 613 ) ​ $ ( 1,756 ) Income tax (benefit) provision ​ ( 233 ) ​ 158 ​ 452 Compensation expense (income), net of tax ​ $ 674 ​ $ ( 455 ) ​ $ ( 1,304 ) ​ The aggregate fair value of RSUs outstanding and currently vested at January 29, 2022 is $ 13.2 million and $ 12.1 million, respectively. The liabilities associated with the accrued RSUs totaled $ 2.6 million and $ 1.7 million as of January 29, 2022 and January 30, 2021, respectively. ​ 85 Table of Contents 16. COMMITMENTS AND CONTINGENCIES ​ Environmental Remediation Prior operations included numerous manufacturing and other facilities for which the Company may have responsibility under various environmental laws for the remediation of conditions that may be identified in the future. The Company is involved in environmental remediation and ongoing compliance activities at several sites and has been notified that it is or may be a potentially responsible party at several other sites. Redfield The Company is remediating, under the oversight of Colorado authorities, the groundwater and indoor air at its owned facility in Colorado (the “Redfield site” or, when referring to remediation activities at or under the facility, the “on-site remediation”) and residential neighborhoods adjacent to and near the property (the “off-site remediation”) that have been affected by solvents previously used at the facility. The on-site remediation calls for the operation of a pump and treat system (which prevents migration of contaminated groundwater off the property) as the final remedy for the site, subject to monitoring and periodic review of the on-site conditions and other remedial technologies that may be developed in the future. In 2016, the Company submitted a revised plan to address on-site conditions, including direct treatment of source areas, and received approval from the oversight authorities to begin implementing the revised plan. 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. 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. The modified workplan for addressing this condition includes converting the off-site bioremediation system into a monitoring well network and employing different remediation methods in these recalcitrant areas. In accordance with the workplan, a pilot test was conducted of certain groundwater remediation methods and the results of that test were used to develop more detailed plans for remedial activities in the off-site areas, which were approved by the authorities and are being implemented in a phased manner. The results of groundwater monitoring are being used to evaluate the effectiveness of these activities. The Company continues to implement the expanded remedy workplan that was approved by the oversight authorities in 2015. Based on the progress of the direct remedial action of on-site conditions, the Company submitted a request to the oversight authorities for permission to convert the perimeter pump and treat active remediation system to a passive one. During 2019, a final response was received from the oversight authorities, which is allowing the Company to move forward with implementation of the revised plan on a portion of the treatment system. The Company continues to pursue approval from the oversight authorities for the full conversion of the perimeter pump and treat active remediation system to a passive one. The Company also continues to work with the oversight authorities on the off-site work plan. The cumulative expenditures for both on-site and off-site remediation through January 29, 2022 were $ 32.4 million. The Company has recovered a portion of these expenditures from insurers and other third parties. The reserve for the anticipated future remediation activities at January 29, 2022 is $ 9.8 million, of which $ 8.8 million is recorded within other liabilities and $ 1.0 million is recorded within other accrued expenses. Of the total $ 9.8 million reserve, $ 5.0 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 %. On an undiscounted basis, the on-site remediation liability would be $ 13.3 million as of January 29, 2022 . The Company expects to spend approximately $ 0.5 million in the next year , $ 0.1 million in each of the following four years and $ 12.4 million in the aggregate thereafter related to the on-site remediation. Other Various federal and state authorities have identified the Company as a potentially responsible party for remediation at certain other sites. However, the Company does not currently believe that its liability for such sites, if any, would be material. The Company continues to evaluate its estimated costs in conjunction with its environmental consultants and records its best estimate of such liabilities. However, future actions and the associated costs are subject to oversight and approval of various governmental authorities. Accordingly, the ultimate costs may vary, and it is possible costs may exceed the recorded amounts. 86 Table of Contents Litigation The Company is involved in legal proceedings and litigation arising in the ordinary course of business. In the opinion of management, the outcome of such ordinary course of business proceedings and litigation currently pending is not expected to have a material adverse effect on the Company’s results of operations or financial position. Legal costs associated with litigation are generally expensed as incurred. ​ ​ ​ ​ ​ ​ 87 Table of Contents SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Col. A ​ Col. B ​ Col. C ​ ​ ​ Col. D ​ Col. E ​ ​ ​ ​ ​ Additions ​ ​ ​ ​ ​ ​ ​ Balance at ​ Charged to ​ Charged to Other ​ ​ ​ ​ Balance at ​ ​ Beginning of ​ Costs and ​ Accounts - ​ Deductions - ​ End of Description Period Expenses Describe Describe Period ($ thousands) ​ ​ ​ ​ ​ YEAR ENDED JANUARY 29, 2022 ​ ​ ​ ​ ​ Deducted from assets or accounts: ​ ​ ​ ​ ​ Doubtful accounts and allowances ​ $ 14,928 ​ $ ( 2,242 ) ​ $ — ​ $ 3,085 (A) $ 9,601 Customer allowances ​ 15,151 ​ 26,100 ​ — 23,394 (B) 17,857 Customer discounts ​ 1,892 ​ 7,459 ​ — 6,879 (B) 2,472 Inventory valuation allowances ​ 32,628 ​ 23,825 ​ — 25,998 (C) 30,455 Deferred tax asset valuation allowance ​ 49,981 ​ 8,978 ​ — — (D) 58,959 YEAR ENDED JANUARY 30, 2021 ​ ​ ​ Deducted from assets or accounts: ​ ​ ​ Doubtful accounts and allowances ​ $ 1,813 ​ $ 10,575 ​ $ 2,521 (E) $ ( 19 ) (A) $ 14,928 Customer allowances ​ 25,816 ​ 20,355 ​ — 31,020 (B) 15,151 Customer discounts ​ 1,198 ​ 11,692 ​ — 10,998 (B) 1,892 Inventory valuation allowances ​ 20,610 ​ 63,543 ​ — 51,525 (C) 32,628 Deferred tax asset valuation allowance ​ 4,809 ​ 45,434 ​ — 262 (D) 49,981 YEAR ENDED FEBRUARY 1, 2020 ​ ​ ​ Deducted from assets or accounts: ​ ​ ​ Doubtful accounts and allowances ​ $ 3,050 ​ $ 773 ​ $ — ​ $ 2,010 (A) $ 1,813 Customer allowances ​ 24,750 ​ 62,737 ​ — ​ 61,671 (B) 25,816 Customer discounts ​ 1,198 ​ 12,046 ​ — ​ 12,046 (B) 1,198 Inventory valuation allowances ​ 14,401 ​ 45,489 ​ — ​ 39,280 (C) 20,610 Deferred tax asset valuation allowance ​ 4,199 ​ 873 ​ — 263 (D) 4,809 ​ (A) Accounts written off, net of recoveries. (B) Discounts and allowances granted to wholesale customers of the Brand Portfolio segment. (C) Adjustment upon sale of related inventories. (D) Reductions to the valuation allowances for the net operating loss carryforwards for certain states based on the Company’s expectations for utilization of net operating loss carryforwards. (E) Adjustment upon adoption of ASU 2016-13. Refer to additional detail in Note 2 to the consolidated financial statements. ​ ITEM 9 CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None. 88 Table of Contents