Foot Locker 2006 Annual Report Download - page 58

Download and view the complete annual report

Please find page 58 of the 2006 Foot Locker annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 96

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96

42
10 Intangible Assets, net
February 3, 2007 January 28, 2006
(in millions)
Gross
value
Accum.
amort.
Net
Value
(1)
Wtd. Avg.
Useful Life
in Years
Gross
value
Accum.
amort.
Net
Value
(1)
Finite life intangible assets
Lease acquisition costs .................. $178 $ (98) $ 80 11.9 $ 165 $ (77) $ 88
Trademark ............................ 21 (3) 18 20.0 21 (2) 19
Loyalty program ....................... 1 (1) — 2.0 1 (1) —
Favorable leases ....................... 9 (5) 4 3.9 10 (4) 6
Total finite life intangible assets .......... 209 (107) 102 12.3 197 (84) 113
Intangible assets not subject to
amortization ....................... 3 — 3 4 — 4
Total intangible assets .................. $ 212 $(107) $105 $201 $(84) $117
(1) Includes effect of foreign currency translation of $5 million in 2006 and $8 million in 2005 primarily related to the strengthening of the
euro in relation to the U.S. dollar.
Intangible assets not subject to amortization at February 3, 2007, includes $3 million related to the trademark
of the 11 stores acquired in the Republic of Ireland. The additional minimum liability at January 28, 2006, which
represented the amount by which the accumulated benefit obligation exceeded the fair market value of U.S. defined
benefit plan’s assets, was offset by an intangible asset to the extent of previously unrecognized prior service costs of
$1 million. The adoption of SFAS No. 158 in 2006 has eliminated the intangible asset.
Lease acquisition costs represent amounts that are required to secure prime lease locations and other lease rights,
primarily in Europe. Included in finite life intangibles, as a result of the Footaction and Republic of Ireland purchases,
are the trademark for the Footaction name, amounts paid for leased locations with rents below their fair value for both
acquisitions and amounts paid to obtain names of members of the Footaction loyalty program.
Amortization expense for the intangibles subject to amortization was approximately $19 million, $18 million and
$17 million for 2006, 2005 and 2004, respectively. Annual estimated amortization expense for finite life intangible
assets is expected to approximate $19 million for 2007, $16 million for 2008, $14 million for 2009, $12 million for 2010
and $10 million for 2011.
11 Other Assets
2006 2005
(in millions)
Deferred tax costs ................................................. $21 $24
Investments andnote receivable ..................................... 7 22
Northern Group note receivable, net of current portion ..................... 10 9
Fair value of derivative contracts ..................................... — 1
Pension benefits ................................................. 8 —
Other .......................................................... 37 40
$83 $96