The Gap 2012 Annual Report Download - page 63

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45
Other Long-Term Assets
Other long-term assets consist of the following:
($ in millions) February 2,
2013 January 28,
2012
Long-term income tax-related assets $ 244 $ 258
Goodwill 184 99
Trade names 92 54
Lease rights, key money, and favorable lease assets, net of accumulated
amortization of $144 and $140 31 22
Deferred compensation plan assets 27 22
Restricted cash 11 11
Other indefinite-lived intangible assets 6 —
Intangible assets subject to amortization, net of accumulated amortization of $15
and $14 3 1
Derivative financial instruments 2 1
Other 119 122
Other long-term assets $ 719 $ 590
Both the cost and accumulated amortization of lease rights and key money are impacted by fluctuations in foreign
currency exchange rates. Amortization expense associated with lease rights and key money was $4 million, $4 million,
and $5 million in fiscal 2012, 2011, and 2010, respectively.
In connection with our acquisition of Intermix, we acquired favorable lease assets of $10 million which will be recognized
as rent expense in cost of goods sold and occupancy expenses in the Consolidated Statements of Income over the
remaining term of the leases. There was no material rent expense recognized related to the favorable lease assets in
fiscal 2012.
Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consist of the following:
($ in millions) February 2,
2013 January 28,
2012
Accrued compensation and benefits $ 369 $ 292
Unredeemed gift cards, gift certificates, and credit vouchers, net of breakage 232 228
Short-term deferred rent and tenant allowances 93 104
Insurance liabilities 72 70
Sales return allowance 27 21
Accrued advertising 26 26
Credit card reward points and certificates liability 18 14
Derivative financial instruments 14 14
Short-term asset retirement obligations 6 9
Short-term lease loss reserve 5 5
Other 230 215
Accrued expenses and other current liabilities $ 1,092 $ 998
The activity related to short-term asset retirement obligations includes adjustments to the asset retirement obligation
balance and fluctuations in foreign currency exchange rates. The activity was not material for fiscal 2012 or 2011.
No other individual items accounted for greater than five percent of total current liabilities as of February 2, 2013 or
January 28, 2012.
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