Foot Locker 2008 Annual Report Download - page 62

Download and view the complete annual report

Please find page 62 of the 2008 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 99

  • 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
  • 97
  • 98
  • 99

46
12. Other Intangible Assets, net
January 31, 2009 February 2, 2008
(in millions)
Gross
value
Accum.
amort.
Net
Value
(1)
Wtd. Avg.
Useful
Life in
Years (2)
Gross
value
Accum.
amort.
Net
Value
(1)
Finite life intangible assets:
Lease acquisition costs.................. $ 173 $ (124) $ 49 12.1 $ 198 $ (125) $73
Trademark ........................... 20 (5) 15 20.0 21 (4) 17
Loyalty program ....................... 1 (1) — — 1 (1) —
Favorable leases ....................... 9 (7) 2 3.7 10 (7) 3
CCS customer relationships ............... 21 (1) 20 5.0 — — —
Total finite life intangible assets............. 224 (138) 86 11.9 230 (137) 93
Intangible assets not subject to amortization:
Republic of Ireland trademark ............ 2 — 2 3 — 3
CCS tradename ........................ 25 — 25 — — —
Total finite life intangible assets............. 27 — 27 3 — 3
Total other intangible assets................ $ 251 $ (138) $ 113 $ 233 $ (137) $96
(1) Includes the effect of foreign currency translation, which represents a reduction of $8 million in 2008 and an increase of $10 million in
2007 primarily related to the movements of the euro in relation to the U.S. dollar. Additionally, the net value at January 31, 2009 includes a
$2 million impairment charge related to the Footaction trademark and the Republic of Ireland trademark, described more fully in note 4.
(2) The weighted-average useful life disclosed excludes those assets that are fully amortized.
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 are the customer relationship intangible associated
with the purchase of CCS, trademark for the Footaction name, favorable leases associated with acquisitions and
amounts paid to obtain names of members of the Footaction loyalty program. The CCS customer relationship
intangible will be amortized on a straight-line basis over 5 years, which represents the pattern in which the
economic benefits are expected to be realized.
Amortization expense for the intangibles subject to amortization was approximately $18 million for 2008,
and $19 million for both 2007 and 2006. Annual estimated amortization expense for finite life intangible assets is
expected to approximate $20 million for 2009, $17 million for 2010, $15 million for 2011, $12 million for 2012 and
$8 million for 2013.
13. Other Assets
2008 2007
(in millions)
Deferred tax costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7 $ 9
Prepaid income taxes ............................................... 6 6
Income tax asset .................................................. 2 2
Long-term investment in auction rate security ............................ 2 —
Fair value of derivative contracts ...................................... 19 4
Other ........................................................... 30 37
$66 $58