Lululemon 2011 Annual Report Download - page 76

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Table of Contents
The Company operates in five geographic areas—Canada, the United States, Asia, Australia and New Zealand. Revenue from these
regions for the years ended January 29, 2012, January 30, 2011, and January 31, 2010 was as follows:
Long-lived assets by geographic area for the years ended January 29, 2012, January 30, 2011, and January 31, 2010 were as follows:
Substantially all of the Company’s intangible assets and goodwill relate to the reporting segment consisting of corporate-owned stores.
The Company previously entered into franchise agreements under which franchisees are permitted to sell lululemon apparel and are
required to purchase lululemon apparel from the Company and to pay the Company a royalty based on a percentage of the franchisee’s gross
sales. The Company also received royalty fees of $714 for the year ended January 29, 2012, $2,222 for the year ended January 30, 2011, and
$2,980 for the year ended January 31, 2010. Sales and cost of sales of apparel sold to franchisees amounted to $3,297 and $1,943 for the year
ended January 29, 2012, $7,927 and $5,309 for the year ended January 30, 2011, and $11,441 and $9,081 for the year ended January 31, 2010,
respectively. The number of franchised stores repurchased during the years ended January 29, 2012, January 30, 2011, and January 31, 2010 was
four, 10 and nil, respectively. There are no longer any franchised stores remaining.
17 PROVISION FOR IMPAIRMENT AND LEASE EXIT COSTS
In accordance with ASC topic 360, Property, Plant and Equipment (“ASC 360”), the Company reviews its long-lived assets for
impairment when changes in circumstances indicate that the carrying amount of the asset may not be recoverable. ASC 360 requires that long-
lived assets to be held and used be recorded at the lower of carrying amount or fair value. Long-lived assets to be disposed of are to be recorded
at the lower of carrying amount or fair value, less estimated cost to sell.
In conjunction with the Company’s ongoing assessment to ensure that each of the Company’s corporate-owned stores fit into the
Company’s long-term growth strategy, the Company closed two of its corporate-owned stores in the fourth quarter of fiscal 2010. The Company
recorded a $366 charge related to these closures during fiscal 2010, which included $194 provision for asset impairment and $172 accrual for
lease exit costs. The fair market values were estimated using an expected present value technique.
During fiscal 2011, no corporate-owned stores were closed and the Company did not record a charge for the provision for impairment and
lease exit costs.
73
January 29,
2012
January 30,
2011
January 31,
2010
Canada
$
425,720
$
371,604
$
271,169
United States
536,182
323,477
181,144
Outside of North America
38,937
16,623
585
$
1,000,839
$
711,704
$
452,898
January 29,
2012
January 30,
2011
January 31,
2010
Canada
$
107,340
$
33,616
$
28,507
United States
47,131
33,513
32,997
Outside of North America
8,470
3,825
87
$
162,941
$
70,954
$
61,591