Foot Locker 2009 Annual Report Download - page 62

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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 is 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 $19 million, $18 million, and
$19 million for 2009, 2008, and 2007, respectively. Annual estimated amortization expense for finite life
intangible assets is expected to approximate $18 million for 2010, $16 million for 2011, $14 million for 2012,
$9 million for 2013 and $3 million for 2014.
10. Other Assets
2009 2008
(in millions)
Prepaid income taxes ...................................... $ 6 $ 6
Auction rate security ...................................... 5 2
Deferred tax costs ........................................ 5 7
Income tax asset ......................................... 2 2
Fair value of derivative contracts .............................. — 19
Other ................................................ 33 30
$51 $66
11. Accrued and Other Liabilities
2009 2008
(in millions)
Other payroll and payroll related costs, excluding taxes ............... $ 46 $ 50
Taxes other than income taxes ................................ 41 36
Customer deposits
(1)
...................................... 29 32
Property and equipment .................................... 13 13
Income taxes ........................................... 10 —
Incentive bonuses ........................................ 9 23
Income taxes payable ..................................... 7 4
Current deferred tax liabilities ................................ 5 10
Pension and postretirement benefits ............................ 5 4
Sales return reserve ....................................... 3 4
Reserve for discontinued operations ............................ 2 2
Other operating costs ...................................... 48 53
$218 $231
(1) Customer deposits include unredeemed gift cards and certificates, merchandise credits, and deferred revenue related to undelivered
merchandise, including layaway sales.
44