Target 2008 Annual Report Download - page 56

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long-lived and identifiable intangible asset would be recognized when estimated undiscounted future cash
flows from the operation and disposition of the asset are less than the asset carrying amount. Goodwill is not
amortized; instead, it is subject to an annual impairment test. Discounted cash flow models are used in
determining fair value for the purposes of the required annual impairment analysis.
No material impairments were recorded in 2008, 2007 or 2006 as a result of the tests performed.
Intangible assets by major classes were as follows:
Intangible Assets Leasehold
Acquisition Costs Other (a) Total
Jan. 31, Feb. 2, Feb. 2,
Jan. 31, Feb. 2, Jan. 31,
(millions) 2009 2008 2009 2008 2009 2008
Gross asset $196 $181 $ 129 $111 $ 325 $ 292
Accumulated amortization (54) (52) (100) (92) (154) (144)
Net intangible assets $142 $129 $29 $19 $ 171 $ 148
(a) Other intangible assets relate primarily to acquired trade names and customer lists.
Amortization is computed on intangible assets with definite useful lives using the straight-line method
over estimated useful lives that range from three to 39 years. During 2006, we adjusted the period over which
we amortize leasehold acquisition costs to match the expected terms for individual leases resulting in a
cumulative benefit to amortization expense of approximately $28 million. Amortization expense for 2008, 2007
and 2006 was $21 million, $15 million, and $(13) million, respectively.
Estimated Amortization Expense
(millions) 2009 2010 2011 2012 2013
Amortization expense $20 $15 $11 $9 $9
16. Accounts Payable
We reclassify book overdrafts to accounts payable at period end. Overdrafts reclassified to accounts
payable were $606 million at January 31, 2009 and $588 million at February 2, 2008.
17. Accrued and Other Current Liabilities
Accrued and Other Current Liabilities January 31, February 2,
(millions) 2009 2008
Wages and benefits $ 727 $ 727
Taxes payable (a) 430 400
Gift card liability (b) 381 372
Construction in process accrual 182 228
Workers’ compensation and general liability 176 164
Straight-line rent accrual 167 152
Interest payable 130 162
Dividends payable 120 115
Deferred compensation 84 176
Income taxes payable —111
Other 516 490
Total $2,913 $3,097
(a) Taxes payable consist of real estate, team member withholdings and sales tax liabilities.
(b) Gift card liability represents the amount of gift cards that have been issued but have not been redeemed, net of estimated breakage.
18. Commitments and Contingencies
Purchase obligations, which include all legally binding contracts, such as firm commitments for inventory
purchases, merchandise royalties, equipment purchases, marketing related contracts, software acquisition/
license commitments and service contracts, were approximately $570 million and $663 million at January 31,
2009 and February 2, 2008, respectively. We issue inventory purchase orders, which represent authorizations
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