Stockholders' Equity and Redeemable Noncontrolling Interests

3 Months Ended

Apr. 28, 2012

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 28, 2012 and three months ended April 28, 2012 is as follows (in thousands):

	Stockholders’ Equity
	Guess?, Inc. Stockholders’ Equity			Nonredeemable Noncontrolling Interests		Total			Redeemable Noncontrolling Interests
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	2,923			—		2,923			—
Issuance of stock under ESPP	1,377			—		1,377			—
Share-based compensation	28,100			—		28,100			—
Dividends	(74,166		)	—		(74,166		)	—
Share repurchases	(92,082		)	—		(92,082		)	—
Redeemable noncontrolling interest redemption value adjustment	3,721			2,051		5,772			(5,772		)
Comprehensive income (loss):
Net earnings	265,500			5,150		270,650			—
Foreign currency translation adjustment	(17,569		)	116		(17,453		)	(646		)
Unrealized gain on hedges, net of income tax of ($1,170)	6,048			—		6,048			—
Unrealized loss on investments, net of income tax of $24	(43		)	—		(43		)	—
SERP prior service cost amortization, curtailment and actuarial valuation loss and related amortization, net of income tax of $2,057	(3,055		)	—		(3,055		)	—
Balances at January 28, 2012	$	1,175,630		$	18,635	$	1,194,265		$	8,293
Issuance of common stock under stock compensation plans, net of tax effect	(156		)	—		(156		)	—
Issuance of stock under ESPP	370			—		370			—
Share-based compensation	4,802			—		4,802			—
Dividends	(17,988		)	—		(17,988		)	—
Noncontrolling interest capital contribution	—			1,279		1,279
Redeemable non-controlling interest redemption value adjustment	(2,662		)	639		(2,023		)	2,023
Comprehensive income (loss):
Net earnings	26,646			567		27,213			—
Foreign currency translation adjustment	2,718			2		2,720			26
Unrealized loss on hedges, net of income tax of $701	(2,794		)	—		(2,794		)	—
Unrealized gain on investments, net of income tax of ($89)	143			—		143			—
SERP prior service cost and actuarial valuation amortization, net of income tax of ($378)	612			—		612			—
Balances at April 28, 2012	$	1,187,321		$	21,122	$	1,208,443		$	10,342

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 expected redemption value and classified as a redeemable noncontrolling interest outside of permanent equity. As of April 28, 2012, the redeemable noncontrolling interests of $10.3 million were composed of redemption values related to the Focus Europe S.r.l. (“Focus”) and Guess Sud SAS (“Guess Sud”) put arrangements of $3.5 million and $6.8 million, respectively. As of January 28, 2012, the redeemable noncontrolling interests of $8.3 million were composed of redemption values related to the Focus and Guess Sud put arrangements of $4.2 million and $4.1 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 calculated as of April 28, 2012 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. The redemption value of the Guess Sud put arrangement calculated as of April 28, 2012 is based on a multiple of Guess Sud’s earnings before interest, taxes, depreciation and amortization.