|
(3) Stockholders’ Equity and Redeemable Noncontrolling Interests
A reconciliation of the total carrying amount of total stockholders’ equity, Guess?, Inc. stockholders’ equity and stockholders’ equity attributable to nonredeemable and redeemable noncontrolling interests for the fiscal year ended January 29, 2011 and three months ended April 30, 2011 is as follows (in thousands):
|
|
|
Stockholders’ Equity |
|
|
|
|
|
|
Guess?, Inc.
Stockholders’
Equity |
|
Nonredeemable
Noncontrolling
Interests |
|
Total |
|
Redeemable
Noncontrolling
Interests |
|
|
Balances at January 30, 2010 |
|
$ |
1,020,211 |
|
$ |
6,132 |
|
$ |
1,026,343 |
|
$ |
13,813 |
|
|
Issuance of common stock under stock compensation plans, net of tax effect |
|
18,236 |
|
— |
|
18,236 |
|
— |
|
|
Issuance of stock under ESPP |
|
1,309 |
|
— |
|
1,309 |
|
— |
|
|
Share-based compensation |
|
29,312 |
|
— |
|
29,312 |
|
— |
|
|
Dividends |
|
(247,570 |
) |
— |
|
(247,570 |
) |
— |
|
|
Share repurchases |
|
(49,361 |
) |
— |
|
(49,361 |
) |
— |
|
|
Redeemable noncontrolling interest redemption value adjustment |
|
(1,143 |
) |
— |
|
(1,143 |
) |
1,143 |
|
|
Comprehensive income (loss) (a): |
|
|
|
|
|
|
|
|
|
|
Net earnings |
|
289,508 |
|
4,995 |
|
294,503 |
|
— |
|
|
Foreign currency translation adjustment |
|
(1,631 |
) |
191 |
|
(1,440 |
) |
(245 |
) |
|
Unrealized loss on hedges, net of income tax of $399 |
|
(3,634 |
) |
— |
|
(3,634 |
) |
— |
|
|
Unrealized gain on investments, net of income tax of $72 |
|
116 |
|
— |
|
116 |
|
— |
|
|
SERP prior service cost and actuarial valuation loss amortization, net of income tax of $251 |
|
(477 |
) |
— |
|
(477 |
) |
— |
|
|
Balances at January 29, 2011 |
|
$ |
1,054,876 |
|
$ |
11,318 |
|
$ |
1,066,194 |
|
$ |
14,711 |
|
|
Issuance of common stock under stock compensation plans, net of tax effect |
|
(937 |
) |
— |
|
(937 |
) |
— |
|
|
Issuance of stock under ESPP |
|
375 |
|
— |
|
375 |
|
— |
|
|
Share-based compensation |
|
7,255 |
|
— |
|
7,255 |
|
— |
|
|
Dividends |
|
(18,484 |
) |
— |
|
(18,484 |
) |
— |
|
|
Redeemable non-controlling interest redemption value adjustment |
|
(6,231 |
) |
— |
|
(6,231 |
) |
6,231 |
|
|
Comprehensive income (loss) (a): |
|
|
|
|
|
|
|
|
|
|
Net earnings |
|
42,682 |
|
902 |
|
43,584 |
|
— |
|
|
Foreign currency translation adjustment |
|
48,691 |
|
1,042 |
|
49,733 |
|
1,296 |
|
|
Unrealized loss on hedges, net of income tax of $1,706 |
|
(8,004 |
) |
— |
|
(8,004 |
) |
— |
|
|
Unrealized gain on investments, net of income tax of $50 |
|
87 |
|
— |
|
87 |
|
— |
|
|
SERP prior service cost and actuarial valuation loss amortization, net of income tax of $335 |
|
641 |
|
— |
|
641 |
|
— |
|
|
Balances at April 30, 2011 |
|
$ |
1,120,951 |
|
$ |
13,262 |
|
$ |
1,134,213 |
|
$ |
22,238 |
|
(a) Total comprehensive income consists of net earnings, Supplemental Executive Retirement Plan (“SERP”) prior service cost and actuarial valuation gains or losses and related amortization, unrealized gains or losses on investments available-for-sale, foreign currency translation adjustments and the effective portion of the change in the fair value of cash flow hedges.
Redeemable Noncontrolling Interests
In connection with the acquisition of two majority-owned subsidiaries, the Company is party to put arrangements with respect to the common securities that represent the remaining noncontrolling interests of the acquired companies. Each put arrangement is exercisable by the counter-party outside the control of the Company by requiring the Company to redeem the counterparty’s entire equity stake in the subsidiary at a put price based on a multiple of earnings formula. Each put arrangement is recorded on the balance sheet at its redemption value and classified as a redeemable noncontrolling interest outside of permanent equity. As of April 30, 2011, the redeemable noncontrolling interests of $22.2 million was composed of redemption values related to the Focus Europe S.r.l. (“Focus”) and Guess Sud SAS (“Guess Sud”) put arrangements of $14.7 million and $7.5 million, respectively. As of January 29, 2011, the redeemable noncontrolling interests of $14.7 million was composed of redemption values related to the Focus and Guess Sud put arrangements of $10.7 million and $4.0 million, respectively.
The put arrangement for Focus, representing 25% of the total outstanding equity interest of that subsidiary, may be exercised at the discretion of the minority owner by providing written notice to the Company no later than June 27, 2012. The redemption value of the Focus put arrangement is based on a multiple of Focus’s net earnings.
The put arrangement for Guess Sud, representing 40% of the total outstanding equity interest of that subsidiary, may be exercised at the discretion of the minority owners by providing written notice to the Company anytime after January 30, 2012 or sooner in certain limited circumstances. The redemption value of the Guess Sud put arrangement is based on a multiple of Guess Sud’s earnings before interest, taxes, depreciation and amortization. |