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Foot Locker, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
4. Impairment and Other Charges − (continued)
Impairment of Intangible Assets
Intangible assets that are determined to have finite lives are amortized over their useful lives and are measured
for impairment only when events or changes in circumstances indicate that the carrying value may be impaired.
Intangible assets with indefinite lives are tested for impairment if impairment indicators arise and, at a minimum,
annually. We estimate the fair value based on an income approach using the relief-from-royalty method. During
the fourth quarters of 2012 and 2011, the Company determined that triggering events had occurred related to
its CCS intangible assets, which is part of the Direct-to-Customers segment, reflecting decreases in projected
revenues. The 2012 charge also reflected a decrease in the assumed royalty rate as a result of lower profitability.
No impairment charges related to intangible assets were recorded during 2013.
Impairment of Long-lived Assets
During 2012, the Company recorded non-cash impairment charges totaling $5 million to write-down long-lived
assets at its CCS division. This impairment charge was recorded to fully impair the CCS stores net book value
as a result of the Company’s decision to close all 22 of its locations during 2013.
5. Other Income
Other income includes non-operating items, such as: gains from insurance recoveries; discounts/premiums
paid on the repurchase and retirement of bonds; royalty income; and the changes in fair value, premiums paid,
and realized gains associated with foreign currency option contracts. Other income was $4 million in 2013, $2
million in 2012, and $4 million in 2011.
For 2013, other income includes $2 million of royalty income and $2 million of lease termination gains related
to the sales of leasehold interests. For 2012, other income primarily includes royalty income. For 2011, other
income primarily includes $2 million of lease termination gains related to the sales of leasehold interests,
$1 million for insurance recoveries, as well as royalty income.
6. Merchandise Inventories
2013 2012
(in millions)
LIFO inventories $ 746 $ 752
FIFO inventories 474 415
Total merchandise inventories $1,220 $1,167
The value of the Company’s LIFO inventories, as calculated on a LIFO basis, approximates their value as calcu-
lated on a FIFO basis.
7. Other Current Assets
2013 2012
(in millions)
Net receivables $99 $68
Prepaid rent 75 70
Prepaid income taxes 35 72
Prepaid expenses and other current assets 34 38
Deferred taxes and costs 20 14
Fair value of derivative contracts —6
$263 $268
48