Lululemon 2011 Annual Report Download - page 62

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Table of Contents
securities trades should not be considered to contain a market, performance or service condition. Therefore, an entity should not classify such an
award as a liability if it otherwise qualifies for classification in equity. This guidance is effective for interim and annual periods beginning on or
after December 15, 2010 and is to be applied prospectively. The Company adopted the amendment in the first quarter of fiscal 2011 with no
material impact on the Company’s consolidated financial statements.
In May 2011, the FASB amended ASC Topic 820 Fair Value Measurement (“ASC 820”) to clarify requirements for how to measure fair
value and for disclosing information about fair value measurements common to US GAAP and International Financial Reporting Standards. This
guidance is effective for interim and annual periods beginning on or after December 15, 2011. The Company will adopt the amendment in the
first quarter of fiscal 2012 and expects no material impact on the Company’s consolidated financial statements.
In June 2011, the FASB amended ASC Topic 220 Comprehensive Income (“ASC 220”) to require (i) that all non-owner changes in
stockholders’ equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive
statements, and (ii) presentation of reclassification adjustments from other comprehensive income (“OCI”) to net income on the face of the
financial statements. This guidance eliminates the option to present the components of OCI as part of the statement of changes in stockholders’
equity, but does not change the items that must be reported in OCI or when an item of OCI must be reclassified to net income. This guidance is
effective for years, and interim periods within those years, beginning after December 15, 2011. The Company will adopt the amendment in fiscal
2012 and expects no material impact on the Company’s consolidated financial statements.
In September 2011, the FASB amended ASC Topic 350 Intangibles—Goodwill and Other (“ASC 350”) to allow a company to first assess
qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. Under this amendment, a
company would not be required to calculate the fair value of a reporting unit unless the company determines, based on a qualitative assessment,
that it is more likely than not that its fair value is less than its carrying amount. The amendment includes a number of events and circumstances
for a company to consider in conducting the qualitative assessment. This guidance is effective for annual periods beginning on or after
December 15, 2011. The Company will adopt the amendment in the first quarter of fiscal 2012 and expects no material impact on the Company’
s
consolidated financial statements.
Reclassifications
Certain prior year amounts have been reclassified to conform to fiscal 2011 presentation.
3 INVENTORIES
59
January 29,
2012
January 30,
2011
Finished goods
$
105,462
$
59,138
Raw materials
2,531
1,913
Provision for obsolescence and shrink
(3,896
)
(3,582
)
$
104,097
$
57,469