Lululemon 2010 Annual Report Download - page 71

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Table of Contents
lululemon athletica inc. and Subsidiaries
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
impairment annually, or as events occur or circumstances arise which may reduce the fair value of goodwill below
carrying value. The weighted-average remaining useful lives of the reacquired franchise rights was 5.24 as at
January 30, 2011 and 6.28 years as at January 31, 2010.
During fiscal 2008 the Company entered into a Credit Agreement (the “Agreement”) with its Australian
franchise partner, under which advances were provided by the Company to the franchisee. The Agreement provides
for a secured non-revolving credit facility of up to AUD$3,900 and funds are only advanced upon approval by the
Company. The line of credit was converted to equity in May 2010 as part of the Company’
s consideration transferred
to increase its investment in its Australian franchise partner, as described in Note 5. As of January 31, 2010 a total of
AUD$3,255 has been drawn on the line of credit. Prior to the conversion in 2010, the loan was designated as held to
maturity and beared interest at 8% per annum which was accrued and capitalized to the loan principal.
8 OTHER NON-CURRENT LIABILITIES
In April 2007, the Company executed a new credit facility with a lending institution that provided for a
CDN$20,000 uncommitted demand revolving credit facilities to fund the working capital requirements of the
Company. Borrowings under the uncommitted credit facilities are made on a when-and-as-needed basis at the
discretion of the Company.
66
6
OTHER NON
-
CURRENT ASSETS
January 30,
January 31,
2011
2010
Security deposits
$
2,762
$
945
Deferred lease cost
1,301
1,487
Advances to and investments in franchise
—
3,673
$
4,063
$
6,105
7
ACCRUED LIABILITIES
January 30,
January 31,
2011
2010
Inventory purchases
$
11,925
$
7,664
Sales tax collected
4,505
2,758
Accrued rent
2,750
1,771
Lease exit costs
1,317
800
Other
4,769
4,590
$
25,266
$
17,583
January 30,
January 31,
2011
2010
Deferred lease liability
$
13,129
$
10,822
Tenant Inducements
6,516
4,650
$
19,645
$
15,472
9
LONG
-
TERM DEBT AND CREDIT FACILITIES