Kroger 2013 Annual Report Download - page 119

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A-46
NO T E S T O C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S , CO N T I N U E D
The Company acquired definite and indefinite lived intangible assets totaling approximately $558 as a
result of the merger with Harris Teeter. See Note 2 for additional information regarding the merger.
The following table summarizes the Company’s intangible assets balance through February 1, 2014.
2013 2012
Gross carrying
amount
Accumulated
amortization (1)
Gross carrying
amount
Accumulated
amortization (1)
Definite-lived favorable leasehold interests.... $144 $(61) $ 69 $ (58)
Definite-lived pharmacy prescription files .... 95 (28) 45 (26)
Definite-lived other ...................... 78 (10) 54 (2)
Indefinite-lived trade name ................ 430 — — —
Indefinite-lived liquor licenses ............. 54 — 48 —
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $801 $(99) $216 $ (86)
(1) Favorable leasehold interests are amortized to rent expense, pharmacy prescription files are amortized to
merchandise costs and other intangibles are amortized to operating, general and administrative expense.
Amortization expense associated with intangible assets totaled approximately $18, $13 and $12, during
fiscal years 2013, 2012 and 2011, respectively. Future amortization expense associated with the net carrying
amount of definite-lived intangible assets for the years subsequent to 2013 is estimated to be approximately:
2014 ...................................... $ 28
2015 ...................................... 25
2016 ...................................... 22
2017 ...................................... 21
2018 ...................................... 20
Thereafter ................................. 102
Total future estimated amortization associated
with definite-lived intangible assets........... $218
4 . P R O P E R T Y , PL A N T A N D E Q U I P M E N T , NE T
Property, plant and equipment, net consists of:
2013 2012
Land ..................................................... $ 2,639 $ 2,450
Buildings and land improvements .............................. 8,848 8,249
Equipment ................................................ 11,037 10,267
Leasehold improvements ..................................... 7,644 6,545
Construction-in-progress ..................................... 1,520 1,239
Leased property under capital leases and financing obligations ...... 691 593
Total property, plant and equipment.......................... 32,379 29,343
Accumulated depreciation and amortization ..................... (15,486) (14,495)
Property, plant and equipment, net........................... $ 16,893 $ 14,848
Accumulated depreciation for leased property under capital leases was $339 at February 1, 2014 and
$321 at February 2, 2013.
Approximately $232 and $236, original cost, of Property, Plant and Equipment collateralized certain
mortgages at February 1, 2014 and February 2, 2013, respectively.