Target 2010 Annual Report Download - page 68

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for the purposes of the required goodwill and intangible assets impairment tests. No material impairments were
recorded in 2010, 2009 or 2008 as a result of the tests performed.
Intangible Assets Leasehold
Acquisition Costs Other (a) Total
Jan. 29, Jan. 30, Jan. 29, Jan. 30, Jan. 29, Jan. 30,
(millions) 2011 2010 2011 2010 2011 2010
Gross asset $ 227 $ 246 $121 $101 $ 348 $ 347
Accumulated amortization (111) (110) (73) (57) (184) (167)
Net intangible assets $ 116 $ 136 $ 48 $ 44 $ 164 $ 180
(a) Other intangible assets relate primarily to acquired customer lists and trademarks.
Amortization is computed on definite-lived intangible assets using the straight-line method over estimated
useful lives that typically range from 9 to 39 years for leasehold acquisition costs and from 3 to 15 years for other
intangible assets. The weighted average life of leasehold acquisition costs and other intangible assets was 29 years
and 4 years, respectively, at January 29, 2011. Amortization expense for 2010, 2009 and 2008 was $24 million,
$24 million and $21 million, respectively.
Estimated Amortization Expense
(millions) 2011 2012 2013 2014 2015
Amortization expense $22 $16 $13 $11 $11
16. Accounts Payable
We reclassify book overdrafts to accounts payable at period end. Overdrafts reclassified to accounts payable
were $558 million at January 29, 2011 and $518 million at January 30, 2010.
17. Accrued and Other Current Liabilities
Accrued and Other Current Liabilities January 29, January 30,
(millions) 2011 2010
Wages and benefits $ 921 $ 959
Taxes payable (a) 497 490
Gift card liability (b) 422 387
Straight-line rent accrual (c) 200 185
Dividends payable 176 127
Workers’ compensation and general liability 158 163
Income tax payable 144 24
Interest payable 103 105
Other 705 680
Total $3,326 $3,120
(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.
(c) Straight-line rent accrual represents the amount of rent expense recorded that exceeds cash payments remitted in connection with
operating leases.
18. Commitments and Contingencies
In January 2011, we entered into an agreement to purchase the leasehold interests in up to 220 sites in Canada
currently operated by Zellers Inc., in exchange for C$1,825 million (Canadian dollars), due in two payments, one in
May 2011 and one in September 2011. We believe this transaction will allow us to open 100 to 150 Target stores in
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