Office Depot 2012 Annual Report Download - page 155
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Amortization expense for the years ended December 31, 2012, 2011 and 2010 (unaudited) was $98,801, $94,890 and $65,859,
respectively, which includes amortization of leasehold improvements as well as intangibles detailed in Note 8.
Intangible assets as of December 31, are as follows:
Amortization expense of intangible assets for the years ended December 31, 2012, 2011 and 2010 (unaudited) was $23,266,
$36,641 and $0, respectively. The estimated amortization expense of intangible assets with finite lives for each of the three
following years is as follows:
13
8. Intangible assets
2012 2011
Intan
g
ible assets with finite useful lives:
Non-com
p
ete a
g
reement
$ 22,412
$ 24,121
Customer list
105,908
103,346
128,32
0
127,467
Accumulated amortization
(63,575)
(40,308)
64,745
87,159
Intan
g
ible asset with indefinite useful life:
Trademar
k
13,55
0
12,99
0
$78,295
$100,149
2013
$23,340
2014
23,340
2015
18,065
9. Employee benefits
a. The Company pays seniority premium benefits to its employees, which consist of a lump sum payment of 12 days’ wage
for each year worked, calculated using the most recent salary, not to exceed twice the minimum wage established by law.
The related liability and annual cost of such benefits are calculated by an independent actuary on the basis of formulas
defined in the
p
lans usin
g
the
p
ro
j
ected unit credit method.
b. The Company also provides statutorily mandated severance benefits to its employees terminated under certain
circumstances. Such benefits consist of a one-time payment of three months wages plus 20 days wages for each year of
service
p
a
y
able u
p
on involuntar
y
termination without
j
ust cause.
c. Present value of these obli
g
ations are:
2012 2011
Defined benefit obli
g
ation
—
Underfunded
$(45,804)
$(42,316)
Unreco
g
nized items:
Past service costs, change in methodology and changes to the
plan
989
1,02
0
Transition liabilit
y
83
291
Actuarial
g
ains and losses
(219)
23
0
Total unreco
g
nized amounts
p
endin
g
amortization
853
1,541
Net
p
ro
j
ected liabilit
y
$(44,951)
$(40,775)