Acquisitions

6 Months Ended

Jul. 02, 2011

Acquisitions [Abstract]

Acquisitions

Note 3—Acquisitions

Acquisition of Equity in Joint Venture in India

On July 8, 2011, the Company acquired a controlling interest (51%) in the equity of a joint venture with a distributor of its Calvin Klein products in India for cash consideration of approximately $20,400. The acquisition will be accounted for as a business combination and its results will be consolidated into the Company’s operations and financial statements from the acquisition date, with the operating results of the non-controlling interest reported separately. In addition, the Company loaned the non-controlling party in the joint venture $6,000 with an interest rate of 5.0% per annum. The loan matures on July 8, 2016. Interest on the loan is payable in arrears on the last day of each calendar year.

Acquisition of Business in Taiwan

On January 3, 2011, the Company acquired certain assets, including inventory and leasehold improvements, and acquired the leases, of the retail stores from its Calvin Klein distributor in Taiwan for cash consideration of approximately $1,450. The acquisition was accounted for as a business combination and its results were consolidated into the Company’s operations and financial statements from the acquisition date.

Acquisition of Remaining Non-controlling Interest and Retail Stores in Brazil

During the fourth quarter of the fiscal year ended January 2, 2010 (“Fiscal 2009”), the Company acquired the remaining non-controlling interest in a Brazilian subsidiary (“WBR”) and eight retail stores in Brazil, collectively, the “Brazilian Acquisition.” As part of the consideration for the Brazilian Acquisition, the Company is required to make three payments through March 31, 2012, which are contingent on the level of operating income achieved (as specified in the acquisition agreement) by WBR during that period. The Company made the second contingent payment of 18,500 Brazilian Real (approximately $11,470), based on the operating results of WBR for Fiscal 2010, on March 31, 2011.