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REDEEMABLE NON-CONTROLLING INTEREST
6 Months Ended
Aug. 03, 2014
Redeemable Non-Controlling Interest Disclosure [Abstract]  
REDEEMABLE NON-CONTROLLING INTEREST
REDEEMABLE NON-CONTROLLING INTEREST
Through Warnaco, the Company owns a 51% interest in a joint venture, CK India, that was consolidated in the Company’s financial statements during 2013.
The fair value of the non-controlling interest as of the date of the Warnaco acquisition was $5.6 million. During 2013, subsequent changes in the fair value of the redeemable non-controlling interest were recognized immediately as they occurred and the carrying amount of the redeemable non-controlling interest was adjusted to equal the fair value at the end of each reporting period, provided that this amount at the end of each reporting period was not lower than the initial fair value. Any fair value adjustment to the carrying amount of the redeemable non-controlling interest was recognized immediately in retained earnings of the Company. After adjusting the carrying amount for net income and other comprehensive income during the twenty-six weeks ended August 4, 2013, an adjustment to retained earnings of $1.6 million was necessary to increase the fair value of the redeemable non-controlling interest as of August 4, 2013 to the initial fair value of $5.6 million.

During the first quarter of 2014, Arvind Limited purchased the Company’s prior joint venture partners’ shares in CK India and, as a result of the entry into a shareholder agreement with different governing arrangements between the Company and the new shareholder as compared to the arrangements with the prior minority shareholders, the Company no longer holds a controlling interest in the joint venture. CK India was deconsolidated, as a result, and the Company began reporting its 51% interest as an equity method investment in the first quarter of 2014. The Company recognized a net gain of $5.9 million in connection with the deconsolidation of CK India during the first quarter of 2014, which was recorded in selling, general and administrative expenses. The gain was measured as the difference between the fair value of the Company’s 51% interest as determined by a third-party valuation firm and the carrying value.