Stockholders' Equity and Redeemable Noncontrolling Interests | 6 Months Ended |
Aug. 02, 2014 |
Stockholders' Equity and Redeemable Noncontrolling Interests [Abstract] | ' |
Stockholders' Equity and Redeemable Noncontrolling Interests | ' |
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 February 1, 2014 and six months ended August 2, 2014 is as follows (in thousands): |
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| Stockholders’ Equity | | | | | | |
| Guess?, Inc. | | Nonredeemable | | Total | | Redeemable | | | | |
Stockholders’ | Noncontrolling | Noncontrolling | | | | |
Equity | Interests | Interests | | | | |
Balance at February 2, 2013 | $ | 1,086,992 | | | $ | 13,876 | | | $ | 1,100,868 | | | $ | 3,144 | | | | | |
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Net earnings | 153,434 | | | 4,277 | | | 157,711 | | | — | | | | | |
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Foreign currency translation adjustment | (17,621 | ) | | (804 | ) | | (18,425 | ) | | (104 | ) | | | | |
Gain on derivative financial instruments designated as cash flow hedges, net of income tax of ($237) | 1,669 | | | — | | | 1,669 | | | — | | | | | |
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Loss on marketable securities, net of income tax of $4 | (7 | ) | | — | | | (7 | ) | | — | | | | | |
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SERP plan amendment, prior service cost amortization and actuarial valuation gain (loss) and related amortization, net of income tax of ($2,963) | 4,619 | | | — | | | 4,619 | | | — | | | | | |
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Issuance of common stock under stock compensation plans, net of tax effect | 2,404 | | | — | | | 2,404 | | | — | | | | | |
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Issuance of stock under Employee Stock Purchase Plan | 980 | | | — | | | 980 | | | — | | | | | |
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Share-based compensation | 13,949 | | | — | | | 13,949 | | | — | | | | | |
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Dividends | (68,215 | ) | | — | | | (68,215 | ) | | — | | | | | |
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Share repurchases | (22,099 | ) | | — | | | (22,099 | ) | | — | | | | | |
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Noncontrolling interest capital contribution | — | | | — | | | — | | | 1,199 | | | | | |
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Noncontrolling interest capital distribution | — | | | (1,877 | ) | | (1,877 | ) | | — | | | | | |
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Redeemable noncontrolling interest redemption value adjustment | (1,591 | ) | | — | | | (1,591 | ) | | 1,591 | | | | | |
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Balance at February 1, 2014 | $ | 1,154,514 | | | $ | 15,472 | | | $ | 1,169,986 | | | $ | 5,830 | | | | | |
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Net earnings | 19,853 | | | 232 | | | 20,085 | | | — | | | | | |
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Foreign currency translation adjustment | 2,425 | | | 117 | | | 2,542 | | | 65 | | | | | |
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Gain on derivative financial instruments designated as cash flow hedges, net of income tax of $476 | 479 | | | — | | | 479 | | | — | | | | | |
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Loss on marketable securities, net of income tax of $58 | (95 | ) | | — | | | (95 | ) | | — | | | | | |
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SERP prior service credit and actuarial valuation amortization, net of income tax of ($135) | 218 | | | — | | | 218 | | | — | | | | | |
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Issuance of common stock under stock compensation plans, net of tax effect | (93 | ) | | — | | | (93 | ) | | — | | | | | |
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Issuance of stock under Employee Stock Purchase Plan | 635 | | | — | | | 635 | | | — | | | | | |
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Share-based compensation | 7,613 | | | — | | | 7,613 | | | — | | | | | |
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Dividends | (38,486 | ) | | — | | | (38,486 | ) | | — | | | | | |
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Redeemable noncontrolling interest redemption value adjustment | 427 | | | — | | | 427 | | | (427 | ) | | | | |
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Balance at August 2, 2014 | $ | 1,147,490 | | | $ | 15,821 | | | $ | 1,163,311 | | | $ | 5,468 | | | | | |
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Accumulated Other Comprehensive Income (Loss) |
The changes in accumulated other comprehensive income (loss), net of related income taxes, for the three and six months ended August 2, 2014 and August 3, 2013 are as follows (in thousands): |
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| Three Months Ended Aug 2, 2014 |
| Foreign Currency Translation Adjustment | | Derivative Financial Instruments Designated as Cash Flow Hedges | | Marketable Securities | | SERP | | Total |
Balance at May 3, 2014 | $ | 14,846 | | | $ | (1,667 | ) | | $ | 33 | | | $ | (6,679 | ) | | $ | 6,533 | |
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Gains (losses) arising during the period | (19,424 | ) | | 1,352 | | | (25 | ) | | — | | | (18,097 | ) |
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Reclassification to net earnings for losses realized | — | | | 681 | | | — | | | 109 | | | 790 | |
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Net other comprehensive income (loss) | (19,424 | ) | | 2,033 | | | (25 | ) | | 109 | | | (17,307 | ) |
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Balance at August 2, 2014 | $ | (4,578 | ) | | $ | 366 | | | $ | 8 | | | $ | (6,570 | ) | | $ | (10,774 | ) |
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| Six Months Ended Aug 2, 2014 |
| Foreign Currency Translation Adjustment | | Derivative Financial Instruments Designated as Cash Flow Hedges | | Marketable Securities | | SERP | | Total |
Balance at February 1, 2014 | $ | (7,003 | ) | | $ | (113 | ) | | $ | 103 | | | $ | (6,788 | ) | | $ | (13,801 | ) |
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Gains (losses) arising during the period | 2,425 | | | (706 | ) | | (41 | ) | | — | | | 1,678 | |
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Reclassification to net earnings for (gains) losses realized | — | | | 1,185 | | | (54 | ) | | 218 | | | 1,349 | |
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Net other comprehensive income (loss) | 2,425 | | | 479 | | | (95 | ) | | 218 | | | 3,027 | |
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Balance at August 2, 2014 | $ | (4,578 | ) | | $ | 366 | | | $ | 8 | | | $ | (6,570 | ) | | $ | (10,774 | ) |
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| Three Months Ended Aug 3, 2013 |
| Foreign Currency Translation Adjustment | | Derivative Financial Instruments Designated as Cash Flow Hedges | | Marketable Securities | | SERP | | Total |
Balance at May 4, 2013 | $ | (14,148 | ) | | $ | 1,918 | | | $ | 169 | | | $ | (11,140 | ) | | $ | (23,201 | ) |
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Gains (losses) arising during the period | 2,951 | | | 64 | | | (81 | ) | | 2,796 | | | 5,730 | |
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Reclassification to net earnings for (gains) losses realized | — | | | (424 | ) | | — | | | 268 | | | (156 | ) |
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Net other comprehensive income (loss) | 2,951 | | | (360 | ) | | (81 | ) | | 3,064 | | | 5,574 | |
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Balance at August 3, 2013 | $ | (11,197 | ) | | $ | 1,558 | | | $ | 88 | | | $ | (8,076 | ) | | $ | (17,627 | ) |
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| Six Months Ended Aug 3, 2013 |
| Foreign Currency Translation Adjustment | | Derivative Financial Instruments Designated as Cash Flow Hedges | | Marketable Securities | | SERP | | Total |
Balance at February 2, 2013 | $ | 10,618 | | | $ | (1,782 | ) | | $ | 110 | | | $ | (11,407 | ) | | $ | (2,461 | ) |
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Gains (losses) arising during the period | (21,815 | ) | | 4,152 | | | (22 | ) | | 2,796 | | | (14,889 | ) |
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Reclassification to net earnings for (gains) losses realized | — | | | (812 | ) | | — | | | 535 | | | (277 | ) |
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Net other comprehensive income (loss) | (21,815 | ) | | 3,340 | | | (22 | ) | | 3,331 | | | (15,166 | ) |
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Balance at August 3, 2013 | $ | (11,197 | ) | | $ | 1,558 | | | $ | 88 | | | $ | (8,076 | ) | | $ | (17,627 | ) |
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Details on reclassifications out of accumulated other comprehensive income (loss) to net earnings during the three and six months ended August 2, 2014 and August 3, 2013 are as follows (in thousands): |
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| Three Months Ended | | Six Months Ended | | Location of | | |
(Gain) Loss | | |
Reclassified from | | |
Accumulated OCI | | |
| Aug 2, 2014 | | 3-Aug-13 | | Aug 2, 2014 | | Aug 3, 2013 | | into Earnings | | |
Derivative financial instruments designated as cash flow hedges: | | | | | | | | | | | |
Foreign exchange currency contracts | $ | 265 | | | $ | (393 | ) | | $ | 759 | | | $ | (872 | ) | | Cost of sales | | |
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Foreign exchange currency contracts | 25 | | | (115 | ) | | 56 | | | (94 | ) | | Other income/expense | | |
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Less income tax effect | 391 | | | 84 | | | 370 | | | 154 | | | Income tax expense | | |
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| 681 | | | (424 | ) | | 1,185 | | | (812 | ) | | | | |
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Marketable securities: | | | | | | | | | | | |
Available-for-sale securities | — | | | — | | | (87 | ) | | — | | | Other income/expense | | |
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Less income tax effect | — | | | — | | | 33 | | | — | | | Income tax expense | | |
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| — | | | — | | | (54 | ) | | — | | | | | |
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SERP: | | | | | | | | | | | |
Actuarial loss amortization | 235 | | | 277 | | | 469 | | | 554 | | | (1) | | |
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Prior service (credit) cost amortization | (58 | ) | | 156 | | | (116 | ) | | 311 | | | (1) | | |
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Less income tax effect | (68 | ) | | (165 | ) | | (135 | ) | | (330 | ) | | Income tax expense | | |
| 109 | | | 268 | | | 218 | | | 535 | | | | | |
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Total reclassifications during the period | $ | 790 | | | $ | (156 | ) | | $ | 1,349 | | | $ | (277 | ) | | | | |
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-1 | These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost. Refer to Note 13 for further information. | | | | | | | | | | | | | | | | | | |
Redeemable Noncontrolling Interests |
The Company is party to a put arrangement with respect to the common securities that represent the remaining noncontrolling interest from the acquisition of its majority-owned subsidiary, Guess Sud SAS (“Guess Sud”). 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 noncontrolling interest holders by providing written notice to the Company any time after January 30, 2012. The put arrangement is recorded on the balance sheet at its expected redemption value based on a method which approximates fair value and classified as a redeemable noncontrolling interest outside of permanent equity. The redemption value of the Guess Sud redeemable put arrangement was $4.3 million and $4.7 million at August 2, 2014 and February 1, 2014, respectively. |
During fiscal 2014, the Company entered into a majority-owned joint venture to establish Guess Brasil Comércio e Distribuição S.A. (“Guess Brazil”). The Company funded $1.8 million to obtain a 60% interest in Guess Brazil and is subject to a put arrangement with respect to the common securities that represent the remaining noncontrolling interest. The put arrangement may be exercised at the discretion of the noncontrolling interest holder by providing written notice to the Company beginning in fiscal 2020, or sooner in certain limited circumstances, and every third anniversary thereafter subject to certain time restrictions. The redemption value of the Guess Brazil put arrangement is based on a multiple of Guess Brazil’s earnings before interest, taxes, depreciation and amortization subject to certain adjustments. The redemption value of the Guess Brazil redeemable put arrangement was $1.2 million and $1.1 million at August 2, 2014 and February 1, 2014, respectively. |