Coach 2010 Annual Report Download - page 73

Download and view the complete annual report

Please find page 73 of the 2010 Coach annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 83

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83

TABLE OF CONTENTS
COACH, INC.
Notes to Consolidated Financial Statements
(dollars and shares in thousands, except per share data)
18. ACQUISITIONS
On September 1, 2008, Coach acquired 100% of its domestic retail businesses in Hong Kong and Macau and on April 1, 2009,
acquired 100% of its domestic retail business in mainland China from the former distributor, the ImagineX group. The results of the
acquired businesses have been included in the consolidated financial statements since September 1, 2008 and April 1, 2009, respectively,
within the Direct-to-Consumer segment. These acquisitions provide the Company with greater control over the brand in Hong Kong, Macau
and mainland China, enabling Coach to raise brand awareness and aggressively grow market share with the Chinese consumer.
The aggregate purchase price of the Hong Kong, Macau and mainland China businesses was $25,600, of which $24,400 was paid
during fiscal 2009 and $1,200 was paid during fiscal 2010. The following table summarizes the fair values of the assets acquired at the
dates of acquisition:
Assets Acquired Fair Value of
Hong Kong
and Macau(1)
Fair Value of
Mainland China(2)
Total
Current assets $ 5,099 $ 4,868 $ 9,967
Fixed assets 3,555 3,525 7,080
Other assets 2,299 — 2,299
Goodwill 3,554 2,700 6,254
Total assets acquired $ 14,507 $ 11,093 $ 25,600
(1) Fair value as of the acquisition date of September 1, 2008
(2) Fair value as of the acquisition date of April 1, 2009
Prior to these acquisitions, the ImagineX group operated eight retail and department store locations in Hong Kong, two retail locations in
Macau, and 15 retail locations in mainland China. The strength of the going concern and the established locations supported a premium
above the fair value of the individual assets acquired. Unaudited pro forma information related to these acquisitions is not included as the
impact of these transactions is not material to the consolidated results of the Company.
*************************************************************************************
69