Office Depot 2012 Annual Report Download - page 68

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OFFICE DEPOT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Other Intangible Assets
The carrying value of an indefinite-lived intangible asset related to an acquired trade name was $5.7 million and $5.5 million, at
December 29, 2012 and December 31, 2011, respectively. The carrying value change during 2012 resulted from changes in foreign
currency rates. This intangible asset is included in Other intangible assets in the Consolidated Balance Sheets. Indefinite-lived
intangibles are not subject to amortization, but are assessed for impairment at least annually.
Definite-lived intangible assets are reviewed periodically to determine whether events and circumstances warrant a revision to the
remaining period of amortization. In the third quarter of 2012, the Company re-evaluated remaining balances of certain amortizing
intangible assets associated with a 2011 acquisition in Sweden. An impairment charge of approximately $14 million was recognized
and is presented in Asset impairment in the Consolidated Statements of Operations. Refer to Notes I and P for additional information
on the fair value measurement and the acquisition, respectively.
Definite-lived intangible assets, which are included in Other intangible assets in the Consolidated Balance Sheets, are as follows:
The weighted average amortization period for the remaining finite-lived intangible assets is 4.4 years.
Amortization of intangible assets was $4.9 million in 2012, $5.2 million in 2011, and $2.9 million in 2010 (at average foreign
currency exchange rates). For 2012, $2.6 million and $2.3 million are included in the Consolidated Statement of Operations in Selling
and warehouse operating and selling expenses and General and administrative expenses, respectively.
Estimated future amortization expense for the next five years at December 29, 2012 is as follows:
65
December 29, 2012
(In thousands)
Gross
Carrying Valu
e
Accumulated
Amortization
Net
Carrying Valu
e
Customer lists
$ 28,000
$(16,864)
$ 11,136
Other
3,40
0
(3,400)
—
Total
$31,40
0
$(20,264)
$11,136
December 31, 2011
(In thousands)
Gross
Carr
y
in
g
Value
Accumulated
Amortization
Net
Carr
y
in
g
Value
Customer lists
$ 43,972
$(16,174)
$ 27,798
Other
5,868
(3,987)
1,881
Total
$49,84
0
$(20,161)
$29,679
(In thousands)
2013
$2,545
2014
2,545
2015
2,545
2016
2,545
2017
956