Stockholders' Equity and Redeemable Noncontrolling Interests

6 Months Ended

Jul. 30, 2011

Stockholders' Equity and Redeemable Noncontrolling Interests

Stockholders' Equity and Redeemable Noncontrolling Interests

(3)           Stockholders’ Equity and Redeemable Noncontrolling Interests

A reconciliation of the total carrying amount of total stockholders’ equity, Guess?, Inc. stockholders’ equity and stockholders’ equity attributable to nonredeemable and redeemable noncontrolling interests for the fiscal year ended January 29, 2011 and six months ended July 30, 2011 is as follows (in thousands):

	Stockholders’ Equity
	Guess?, Inc. Stockholders’ Equity			Nonredeemable Noncontrolling Interests		Total			Redeemable Noncontrolling Interests
Balances at January 30, 2010	$	1,020,211		$	6,132	$	1,026,343		$	13,813
Issuance of common stock under stock compensation plans, net of tax effect	18,236			—		18,236			—
Issuance of stock under ESPP	1,309			—		1,309			—
Share-based compensation	29,312			—		29,312			—
Dividends	(247,570		)	—		(247,570		)	—
Share repurchases	(49,361		)	—		(49,361		)	—
Redeemable noncontrolling interest redemption value adjustment	(1,143		)	—		(1,143		)	1,143
Comprehensive income (loss) (a):
Net earnings	289,508			4,995		294,503			—
Foreign currency translation adjustment	(1,631		)	191		(1,440		)	(245		)
Unrealized loss on hedges, net of income tax of $399	(3,634		)	—		(3,634		)	—
Unrealized gain on investments, net of income tax of ($72)	116			—		116			—
SERP prior service cost and actuarial valuation loss amortization, net of income tax of $251	(477		)	—		(477		)	—
Balances at January 29, 2011	$	1,054,876		$	11,318	$	1,066,194		$	14,711
Issuance of common stock under stock compensation plans, net of tax effect	3,710			—		3,710			—
Issuance of stock under ESPP	814			—		814			—
Share-based compensation	14,215			—		14,215			—
Dividends	(37,023		)	—		(37,023		)	—
Redeemable non-controlling interest redemption value adjustment	107			—		107			(107		)
Comprehensive income (loss) (a):
Net earnings	103,339			2,055		105,394			—
Foreign currency translation adjustment	33,924			684		34,608			807
Unrealized loss on hedges, net of income tax of $931	(3,830		)	—		(3,830		)	—
Unrealized gain on investments, net of income tax of ($30)	45			—		45			—
SERP prior service cost and actuarial valuation loss amortization, net of income tax of ($432)	965			—		965			—
Balances at July 30, 2011	$	1,171,142		$	14,057	$	1,185,199		$	15,411

(a) Total comprehensive income consists of net earnings, Supplemental Executive Retirement Plan (“SERP”) prior service cost and actuarial valuation gains or losses and related amortization, unrealized gains or losses on investments available-for-sale, foreign currency translation adjustments and the effective portion of the change in the fair value of cash flow hedges.

Redeemable Noncontrolling Interests

In connection with the acquisition of two majority-owned subsidiaries, the Company is party to put arrangements with respect to the common securities that represent the remaining noncontrolling interests of the acquired companies. Each put arrangement is exercisable by the counter-party outside the control of the Company by requiring the Company to redeem the counterparty’s entire equity stake in the subsidiary at a put price based on a multiple of earnings formula. Each put arrangement is recorded on the balance sheet at its redemption value and classified as a redeemable noncontrolling interest outside of permanent equity. As of July 30, 2011, the redeemable noncontrolling interests of $15.4 million was composed of redemption values related to the Focus Europe S.r.l. (“Focus”) and Guess Sud SAS (“Guess Sud”) put arrangements of $9.5 million and $5.9 million, respectively. As of January 29, 2011, the redeemable noncontrolling interests of $14.7 million was composed of redemption values related to the Focus and Guess Sud put arrangements of $10.7 million and $4.0 million, respectively.

The put arrangement for Focus, representing 25% of the total outstanding equity interest of that subsidiary, may be exercised at the discretion of the minority owner by providing written notice to the Company no later than June 27, 2012. The redemption value of the Focus put arrangement is based on a multiple of Focus’s net earnings.

The put arrangement for Guess Sud, representing 40% of the total outstanding equity interest of that subsidiary, may be exercised at the discretion of the minority owners by providing written notice to the Company anytime after January 30, 2012 or sooner in certain limited circumstances. The redemption value of the Guess Sud put arrangement is based on a multiple of Guess Sud’s earnings before interest, taxes, depreciation and amortization.