Lululemon 2011 Annual Report Download - page 64

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Table of Contents
The following table summarizes the preliminary fair values of the net assets acquired as of January 29, 2012:
In May 2010, the Company increased its investment in lululemon athletica australia Pty (“lululemon australia”) from 13 percent to
80 percent. The transaction provides the Company control over lululemon australia, which became a subsidiary of the Company on this date.
lululemon australia is engaged in the distribution of healthy lifestyle inspired athletic apparel, which is sold through a chain of corporate-owned
retail locations and through a network of wholesale accounts, in Australia. The Company previously accounted for its 13 percent interest in
lululemon australia as an equity investment.
The following unaudited pro forma summary presents consolidated information of the Company as if the business combination had
occurred on February 1, 2009:
These amounts have been calculated after applying the Company’s accounting policies and adjusting the results of lululemon australia to
reflect the additional depreciation and amortization that would have been charged assuming the fair value adjustments to inventory and
intangible assets had been applied from February 1, 2010, together with the consequential tax effects.
In fiscal 2010, the Company incurred $181 of acquisition-related costs. These costs are included in general and administrative expenses in
the Company’s consolidated statements of operations for the year ended January 30, 2011.
The following tables summarize the consideration transferred to acquire lululemon australia and the amounts of identified assets acquired
and liabilities assumed at the acquisition date, as well as the fair value of the non-controlling interest in lululemon australia at the acquisition
date:
Fair value of consideration transferred :
61
Inventory
$
617
Prepaid and other assets
24
Property and equipment
239
Goodwill
5,168
Total assets acquired
6,048
Unredeemed gift card liability
224
Total liabilities assumed
224
Total identifiable net assets
$
5,824
Fiscal Year Ended
January 29,
2012
January 30,
2011
January 31,
2010
Net revenue
$
1,000,839
$
716,328
$
463,506
Income from operations
$
286,958
$
180,832
$
85,854
Cash
$
5,872
Conversion of note receivable to equity
3,481
Total
9,353
Investment in lululemon australia held prior to the business combination
2,345
Fair value of the non
-
controlling interest in lululemon australia
3,554
$
15,252