Lululemon 2010 Annual Report Download - page 70

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Table of Contents
lululemon athletica inc. and Subsidiaries
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The following table summarizes the fair values of the net assets acquired at the date of acquisition:
On September 15, 2008, the Company reacquired in an asset purchase transaction two franchised stores in
Victoria, British Columbia for total cash consideration of $1,181 less working capital adjustments of $4 from a
related party. The fair values of the net assets acquired were measured as if the transaction occurred with a arm’s
length party. Included in the Company’s consolidated statement of operations for the year ended February 1, 2009,
are the results of the two reacquired Victoria franchised stores from the date of acquisition through to February 1,
2009.
The following table summarizes the fair values of the net assets acquired as of September 15, 2008:
On September 8, 2008, the Company reacquired in an asset purchase transaction a franchised store in Bellevue,
Washington for total cash consideration of $2,067 plus working capital adjustments of $157. Included in the
Company’s consolidated statement of operations for the year ended February 1, 2009, are the results of the
reacquired Bellevue franchised store from the date of acquisition through to February 1, 2009.
The following table summarizes the fair values of the net assets acquired as of September 8, 2008:
The acquisition of the franchised stores is part of management’s vertical retail growth strategy. The reacquired
franchise rights are amortized on a straight-line basis over their estimated useful lives. Goodwill is reviewed for
65
Inventory
$
325
Prepaid and other current assets
9
Property and equipment
174
Goodwill
6,371
Total assets acquired
6,879
Current and non
-
current liabilities
269
Total liabilities assumed
269
Net assets acquired
$
6,610
Inventory
$
306
Prepaid and other current assets
2
Property and equipment
261
Reacquired franchise rights
780
Total assets acquired
1,349
Unredeemed gift card liability
172
Total liabilities assumed
172
Net assets acquired
$
1,177
Inventory
$
234
Prepaid and other current assets
38
Property and equipment
249
Reacquired franchise rights
1,755
Total assets acquired
2,276
Unredeemed gift card liability
52
Total liabilities assumed
52
Net assets acquired
$
2,224