The Gap 2014 Annual Report Download - page 60

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48
Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consist of the following:
($ in millions) January 31,
2015 February 1,
2014
Accrued compensation and benefits $ 278 $ 327
Unredeemed gift cards, gift certificates, and credit vouchers, net of
breakage 251 238
Short-term deferred rent and tenant allowances 102 93
Other 389 484
Accrued expenses and other current liabilities $ 1,020 $ 1,142
No other individual items accounted for greater than five percent of total current liabilities as of January 31, 2015
or February 1, 2014.
Lease Incentives and Other Long-Term Liabilities
Lease incentives and other long-term liabilities consist of the following:
($ in millions) January 31,
2015 February 1,
2014
Long-term deferred rent and tenant allowances $ 773 $ 766
Long-term income tax-related liabilities 93 83
Long-term asset retirement obligations 63 59
Other 212 65
Lease incentives and other long-term liabilities $ 1,141 $ 973
The activity related to 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 2014 or 2013.
Sales Return Allowance
A summary of activity in the sales return allowance account is as follows:
($ in millions) January 31,
2015 February 1,
2014 February 2,
2013
Balance at beginning of fiscal year $ 26 $ 27 $ 21
Additions 896 896 845
Returns (893) (897) (839)
Balance at end of fiscal year $ 29 $ 26 $ 27
Sales return allowances are recorded in accrued expenses and other current liabilities in the Consolidated
Balance Sheets.
Note 3. Acquisition
On December 31, 2012, we acquired all of the outstanding capital stock of Intermix Holdco Inc. ("Intermix"), a
multi-brand retailer of luxury and contemporary women's apparel and accessories based in New York, New York,
for an aggregate purchase price of $129 million in cash. The acquisition allows us to extend our portfolio of
brands and further penetrate the higher-end apparel market with an established brand.
The results of operations for Intermix since the date of acquisition were not material to the Consolidated
Statement of Income for fiscal 2012. In addition, the impact of the acquisition on the Company's results of
operations, as if the acquisition had been completed on the first day of fiscal 2012, is not significant.