Macy's 2009 Annual Report Download - page 71

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Included as a reduction to the expense above is deferred rent amortization of $7 million, $6 million and $6
million for 2009, 2008 and 2007, respectively, related to contributions received from landlords.
10. Goodwill and Other Intangible Assets
The following summarizes the Company’s goodwill and other intangible assets:
January 30,
2010
January 31,
2009
(millions)
Non-amortizing intangible assets
Goodwill ................................................. $3,743 $3,743
Tradenames ............................................... 414 414
$4,157 $4,157
Amortizing intangible assets
Favorable leases ........................................... $ 256 $ 264
Customer relationships ...................................... 188 188
444 452
Accumulated amortization
Favorable leases ........................................... (97) (83)
Customer relationships ...................................... (83) (64)
(180) (147)
$ 264 $ 305
During 2008, the Company recorded a goodwill impairment charge of $5,382 million 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.
Also 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.
Intangible amortization expense amounted to $41 million for 2009, $42 million for 2008 and $43 million for
2007.
F-23