Target 2012 Annual Report Download - page 62

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purposes, accelerated depreciation methods are generally used. Repair and maintenance costs are expensed as
incurred and were $695 million, $666 million and $726 million in 2012, 2011 and 2010, respectively. Facility
pre-opening costs, including supplies and payroll, are expensed as incurred.
Estimated Useful Lives Life (Years)
Buildings and improvements 8-39
Fixtures and equipment 3-15
Computer hardware and software 4-7
Long-lived assets are reviewed for impairment when events or changes in circumstances indicate that the asset’s
carrying value may not be recoverable. Impairments of $37 million, $43 million and $34 million in 2012, 2011 and
2010, respectively, were recorded as a result of the reviews performed and project scope changes.
15. Other Noncurrent Assets
Other Noncurrent Assets February 2, January 28,
(millions) 2013 2012
Company-owned life insurance investments (a) $ 269 $ 371
Goodwill and intangible assets 224 242
Deferred taxes 206 56
Interest rate swaps (b) 85 114
Other 338 249
Total $1,122 $1,032
(a) Company-owned life insurance policies on approximately 4,000 team members who have been designated highly compensated under
the Internal Revenue Code and have given their consent to be insured. Amounts are presented net of loans that are secured by some of
these policies.
(b) See Notes 9 and 21 for additional information relating to our interest rate swaps.
16. Goodwill and Intangible Assets
Goodwill totaled $59 million at February 2, 2013 and January 28, 2012. No impairments were recorded in 2012,
2011 or 2010 as a result of the goodwill impairment tests performed.
Intangible Assets Leasehold
Acquisition Costs Other (a) Total
February 2, January 28, February 2, January 28, February 2, January 28,
(millions) 2013 2012 2013 2012 2013 2012
Gross asset $ 237 $ 243 $ 149 $146 $ 386 $ 389
Accumulated amortization (120) (119) (101) (87) (221) (206)
Net intangible assets $ 117 $ 124 $48 $59 $ 165 $ 183
(a) Other intangible assets relate primarily to acquired customer lists and trademarks.
We use the straight-line method to amortize leasehold acquisition costs primarily over 9 to 39 years and other
definite-lived intangibles over 3 to 15 years. The weighted average life of leasehold acquisition costs and other
intangible assets was 29 years and 5 years, respectively, at February 2, 2013. Amortization expense was $22 million
in 2012 and $24 million in each of 2011 and 2010.
Estimated Amortization Expense
(millions) 2013 2014 2015 2016 2017
Amortization expense $24 $21 $20 $19 $14
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