Foot Locker 2010 Annual Report Download - page 65

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9. Other Intangible Assets, net
January 29, 2011 January 30, 2010
($ in millions) Gross
value Accum.
amort.
Net
Value
(1)
Wtd. Avg.
Useful
Life in
Years(2) Gross
value Accum.
amort. Net
Value
Finite life intangible assets:
Lease acquisition costs ........ $178 $(150) $28 12.1 $184 $(143) $41
Trademark ................ 21 (7) 14 19.6 20 (6) 14
Loyalty program............. 1 (1) — — 1 (1) —
Favorable leases............. 9 (8) 1 4.1 9 (8) 1
CCS customer relationships ..... 21 (9) 12 5.0 21 (5) 16
Total finite life intangible assets . . . 230 (175) 55 11.8 235 (163) 72
Intangible assets not subject to
amortization:
Republic of Ireland trademark . . . 2 — 2 2 — 2
CCS tradename.............. 15 — 15 25 — 25
Total indefinite life intangible
assets ................... 17 — 17 27 — 27
Total other intangible assets ...... $247 $(175) $72 $262 $(163) $99
(1) Includes the effect of foreign currency translation, which represents a decrease of $1 million in 2010 and an increase of $3 million in
2009, primarily related to the movements of the euro in relation to the U.S. dollar. Additionally, the net value at January 29, 2011
includes a $10 million impairment charge related to the CCS tradename, described more fully in Note 3.
(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 CCS customer relationship intangible,
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 $17 million, $19 million, and
$18 million for 2010, 2009, and 2008, respectively. Annual estimated amortization expense for finite life
intangible assets is expected to approximate $16 million for 2011, $14 million for 2012, $9 million for 2013,
$4 million for 2014, and $2 million for 2015.
10. Other Assets
2010 2009
(in millions)
Funds deposited in insurance trust
(1)
............................ $10 $—
Prepaid income taxes ...................................... 5 6
Auction rate security ...................................... 5 5
Deferred tax costs ........................................ 3 5
Pension asset ........................................... 2 —
Income tax asset ......................................... 1 2
Other................................................. 37 33
$63 $51
(1) The Company is required by its insurers to collateralize part of the self-insured workers’ compensation and liability claims. The Company
has chosen to satisfy these collateral requirements by depositing funds in an insurance trust.
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