Target 2009 Annual Report Download - page 59

No material impairments related to goodwill and intangible assets were recorded in 2009, 2008, or 2007
as a result of the tests performed. Intangible assets by major classes were as follows:
Intangible Assets Leasehold
Acquisition Costs Other (a) Total
Jan. 30, Jan. 31, Jan. 31,
Jan. 30, Jan. 31, Jan. 30,
(millions) 2010 2009 2010 2009 2010 2009
Gross asset $197 $196 $ 150 $ 129 $ 347 $ 325
Accumulated amortization (62) (54) (105) (100) (167) (154)
Net intangible assets $135 $142 $45 $29 $ 180 $ 171
(a) Other intangible assets relate primarily to acquired trademarks and customer lists.
Amortization is computed on intangible assets with definite useful lives using the straight-line method
over estimated useful lives that typically range from 9 to 39 years for leasehold acquisition costs and from 3 to
15 years for other intangible assets. Amortization expense for 2009, 2008, and 2007 was $24 million,
$21 million, and $15 million, respectively.
Estimated Amortization Expense
(millions) 2010 2011 2012 2013 2014
Amortization expense $23 $18 $13 $11 $10
16. Accounts Payable
We reclassify book overdrafts to accounts payable at period end. Overdrafts reclassified to accounts
payable were $539 million at January 30, 2010 and $606 million at January 31, 2009.
17. Accrued and Other Current Liabilities
Accrued and Other Current Liabilities January 30, January 31,
(millions) 2010 2009
Wages and benefits $ 959 $ 727
Taxes payable (a) 490 430
Gift card liability (b) 387 381
Straight-line rent accrual 185 167
Workers’ compensation and general liability 163 176
Dividends payable 127 120
Interest payable 105 130
Construction in progress 72 182
Other 632 600
Total $3,120 $2,913
(a) Taxes payable consist of real estate, team member withholdings and sales tax liabilities.
(b) Gift card liability represents the amount of gift cards that have been issued but have not been redeemed, net of estimated breakage.
18. Commitments and Contingencies
Purchase obligations, which include all legally binding contracts, such as firm commitments for inventory
purchases, merchandise royalties, equipment purchases, marketing-related contracts, software acquisition/
license commitments and service contracts, were approximately $2,016 million and $570 million at
January 30, 2010 and January 31, 2009, respectively. We issue inventory purchase orders, which represent
authorizations to purchase that are cancelable by their terms. We do not consider purchase orders to be firm
inventory commitments. We also issue trade letters of credit in the ordinary course of business, which are not
firm commitments as they are conditional on the purchase order not being cancelled. If we choose to cancel a
purchase order, we may be obligated to reimburse the vendor for unrecoverable outlays incurred prior to
cancellation under certain circumstances.
Trade letters of credit totaled $1,484 million and $1,359 million at January 30, 2010 and January 31, 2009,
respectively, a portion of which are reflected in accounts payable. Standby letters of credit, relating primarily to
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