Foot Locker 2013 Annual Report Download - page 73

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Foot Locker, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
10. Other Intangible Assets, net − (continued)
As of February 1, 2014, in connection with the allocation of the purchase price of the Runners Point Group
acquisition, the Company recognized $30 million of indefinite life intangible assets for the Runners Point Group
tradenames. Also as a result of the purchase price allocation, $5 million was recognized for favorable leases in
15 locations with rents below their fair value, which are being amortized over a weighted-average life of 6 years.
Amortizing intangible assets primarily represent lease acquisition costs, which are amounts that are required to
secure prime lease locations and other lease rights, primarily in Europe. During 2013, additions of $2 million
were recorded primarily from new leases in Europe. Amortization expense for intangibles subject to amortiza-
tion was $11 million, $14 million, and $16 million for 2013, 2012, and 2011, respectively. Estimated future
amortization expense for finite lived intangibles for the next five years is as follows:
(in millions)
2014 $6
2015 5
2016 4
2017 4
2018 4
11. Other Assets
2013 2012
(in millions)
Restricted cash
(1)
$25 $16
Deferred tax costs 75
Auction rate security 66
Funds deposited in insurance trust
(2)
69
Pension asset 47
Income tax receivables 43
Income tax asset 22
Other 22 24
$76 $72
(1) Restricted cash is comprised of amounts held in escrow in connection with various leasing arrangements in Europe.
(2) 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 insurance trusts.
12. Accrued and Other Liabilities
2013 2012
(in millions)
Taxes other than income taxes $56 $45
Other payroll and payroll related costs, excluding taxes 54 60
Current deferred tax liabilities 46 31
Incentive bonuses 41 48
Property and equipment
(2)
39 33
Customer deposits
(1)
38 34
Other 86 87
$360 $338
(1) Customer deposits include unredeemed gift cards and certificates, merchandise credits, and deferred revenue related to undelivered
merchandise, including layaway sales.
(2) Accruals for property and equipment are properly excluded from the statements of cash flows for all years presented.
50