Macy's 2010 Annual Report Download - page 68

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
7. Goodwill and Other Intangible Assets
The following summarizes the Company’s goodwill and other intangible assets:
January 29,
2011
January 30,
2010
(millions)
Non-amortizing intangible assets
Goodwill ................................................. $9,125 $ 9,125
Accumulated impairment losses ............................... (5,382) (5,382)
3,743 3,743
Tradenames ............................................... 414 414
$ 4,157 $ 4,157
Amortizing intangible assets
Favorable leases ........................................... $ 250 $ 256
Customer relationships ...................................... 188 188
438 444
Accumulated amortization
Favorable leases ........................................... (113) (97)
Customer relationships ...................................... (102) (83)
(215) (180)
$ 223 $ 264
During 2008, the Company recorded a goodwill impairment charge based on the results of goodwill
impairment testing as of January 31, 2009. See Note 3, “Goodwill Impairment Charges,” for further information.
Also during 2008, the Company recorded an impairment charge associated with acquired indefinite-lived private
brand tradenames. See Note 2, “Impairments, Store Closing Costs and Division Consolidation Costs,” for further
information.
Intangible amortization expense amounted to $41 million for 2010, $41 million for 2009 and $42 million for
2008.
Future estimated intangible amortization expense is shown below:
(millions)
Fiscal year:
2011 ......................................................... $39
2012 ......................................................... 37
2013 ......................................................... 34
2014 ......................................................... 31
2015 ......................................................... 21
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-20