Macy's 2008 Annual Report Download - page 73

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Goodwill decreased $5,382 million during 2008 as a result of an estimated impairment charge recorded by
the Company based on the results of goodwill impairment testing as of January 31, 2009. See Note 4, “Goodwill
Impairment Charges,” for further information.
Goodwill also decreased during 2008 as a result of adjustments to tax liabilities, unrecognized tax benefits
and related interest, totaling approximately $8 million, and less than $1 million related to certain income tax
benefits realized resulting from the exercise of stock options assumed in the acquisition of May. During 2008, the
Company recognized approximately $63 million of impairment charges associated with acquired indefinite lived
private brand tradenames. See Note 3, “Asset Impairment Charges,” for further information. During 2007, the
Company recognized approximately $10 million of impairment charges associated with acquired indefinite lived
private brand tradenames.
Intangible amortization expense amounted to $42 million for 2008, $43 million for 2007 and $69 million for
2006.
Future estimated intangible amortization expense is shown below:
(millions)
Fiscal year:
2009 ......................................................... $41
2010 ......................................................... 41
2011 ......................................................... 40
2012 ......................................................... 37
2013 ......................................................... 35
As a result of the acquisition of May, the Company established intangible assets related to favorable leases,
customer lists, customer relationships and both definite and indefinite lived tradenames. Favorable lease
intangible assets are being amortized over their respective lease terms (weighted average life of approximately
twelve years) and customer relationship intangible assets are being amortized over their estimated useful lives of
ten years.
F-25