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FOOT LOCKER, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
9. Other Intangible Assets, net
January 31, 2015 Wtd. Avg.
Life in
Years
(2)
February 1, 2014
(in millions) Gross
value Accum.
amort. Net
Value Gross
value Accum.
amort. Net
Value
Amortized intangible assets:
(1)
Lease acquisition costs $128 $(116) $12 12.0 $155 $(137) $18
Trademarks 21 (12) 9 19.7 21 (11) 10
Favorable leases 7 (4) 3 7.4 8 (3) 5
$156 $(132) $24 14.2 $184 $(151) $33
Indefinite life intangible assets
(1)
Runners Point Group trademarks
(3)
25 30
Other trademarks
(4)
—4
$25 $34
Other intangible assets, net $49 $67
(1) Includes the effect of foreign currency translation related primarily to the movements of the euro in relation to the U.S. dollar.
(2) The weighted-average useful life disclosed excludes those assets that are fully amortized.
(3) Includes the effect of foreign currency translation and a non-cash impairment charge of $1 million recorded in the fourth quarter of
2014. This impairment charge is described more fully in Note 3, Impairment Charges.
(4) During 2014, the values of other trademarks were fully impaired. Impairment charges of $3 million and $7 million were recorded in
2014 and 2012, respectively, and are described more fully in Note 3, Impairment Charges.
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. The amortizing intangible asset activity
during 2014 of $9 million reflects a $4 million decrease related to foreign currency exchange fluctuations,
partially offset by additions of $1 million related to new leases in Europe. Amortization expense for intangibles
subject to amortization was $6 million, $11 million, and $14 million for 2014, 2013, and 2012, respectively.
Estimated future amortization expense for finite lived intangibles for the next five years is as follows:
(in millions)
2015 $4
2016 4
2017 3
2018 3
2019 3
10. Other Assets
2014 2013
(in millions)
Restricted cash
(1)
$22 $25
Pension asset 13 4
Auction rate security 66
Deferred tax costs 57
Funds deposited in insurance trust
(2)
46
Other 24 28
$74 $76
(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.
50