Refer to the Target Corporation financial statements Hand-Out, including Notes 14 and 15. In addition to the above, refer to pages 356 and 532 in your text book for the data for Kohl's Corporation. Answer the following questions. Requirements 1. Which depreciation method does Target Corporation use for reporting in the financial statements? What type of depreciation method does the company probably use for income tax purposes? Where did you find this information? 2. What was the amount of depreciation and amortization expense for the year ending January 30, 2016? On what statement did you find this? 3. The statement of cash flows reports the cash purchases of property, plant, and equipment. How much were Target's additions to property, plant, and equipment during the year ending January 30, 2016? Did Target record any proceeds from the sale of property, plant, and equipment? (Hint: Look at the section Investing Activities). 4. What was the amount of accumulated depreciation at January 30, 2016? What was the net book value of property, plant, and equipment for Target as of January 34, 2016? On what statement did you find this? 5. Compute Target's asset turnover ratio for year ending January 30, 2016. Round to two decimal places. How does Target's ratio compare with that of Kohl's Corporation? (Keep in mind the amounts are in millions) 6.Compute Target's rate of inventory turnover and days' sales in inventory for year ending January 30, 2016. How does it compare with Kohl's Corporation? Consolidated Statements of Financial Position Januar2 310s Jan (millions, except footnotes) Assets Cash and cash equivalents, including short-term investments of $3,008 and $1,520 $4,046 S 2.210 8,601 322 1,161 14,130 8,282 1,058 2,074 13,624 Assets of discontinued operations Other current assets Total current assets Property and equipment 6.127 Land Buildings and improvements Fixtures and equipment Computer hardware and software 6,125 27,059 5,347 2,617 315 26,613- 5,329 2,552 424 (16,246) (15,093) Accumulated depreciation 25,952 book valuc) 25,217 75 Property and equipment, net Noncurrent assets of discontinued operations Other noncurrent assets Total assets Liabilities and shareholders' investment Accounts payable Accrued and other current liabilities Current portion of long-term debt and other borrowings Liabilities of discontinued operations 879 S 40,262 S 41,172 $ 7,418 S7,759 3,783 91 103 11,736 12,634 1,160 193 1,452 4,236 815 153 12,622 11,945 Total current liabilities Long-term debt and other borrowings Deferred income taxes Noncurrent liabilities of discontinued operations Other noncurrent liabilities Total noncurrent liabilitiles 823 18 1,897 14,683 15,439 Shareholders' investment Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss 50 5.348 8,188 53 4,899 9,644 Pension and other benefit liabilities (588) (41) (561) (38) Currency translation adjustment and cash flow hedges Total shareholders' investment Total liabilities and shareholders investment Common Stock Authorized 6,000,000,000 shares, $0.0833 parvalue; shares issued and outstanding at January 31, 2015 Preferred Stock Authorized 5,000,000 shares $0.01 par value; no shares were issued or outstanding at January 30, 2016 or See accompanying Notes to Consolidated Financial Statements 12,957 13,997 SC 40,262 $41,172 602.226,517 shares issued and outstanding at January 30,2018 010 218 982- anuary 31, 2015 Consolidated Statements of Cash Flows S 3.363 (1.636) $ 1,971 2,694 Net eamings/(loss fom dscontrued contnulng operations net of tax 3321 eamings from Adustments to recondile net earnings to cash provided by operations 1,996 2,213 2,129 Depreciation and amortization Deferred income taxes Gain on sale Loss on debt extinguishment Noncash (osins)/losses and other, net Changes in operating acoounts (391) (620) (12) Accounts reaceivablo originated at Target 157 2,703 Proceeds on sale of accounts recelvable originated at Target Other assets Accounts payabie and accrued labiines (512) 534 5,140 704 5.844 (79) 7,519 6,520 Cash provided by eperating acovities-continuing operations 5,131 Investing activities Expenditures for preparty and equipment Proceeds from disposal of property and equipment Proceeds from sale of businesses (1438) 1.786) (1,886) 70 1,875 Change in accounts receivable originated at third parties Proceeds from sale of accounts recelvable originated at thied parties Cash paid for aoquisitions, net of cash assumed Other investments 121 3,002 106 (1,605) (157) 130 1,280 Cash provided by /(required for) investing activities-continuling operations (1,926) Financing activities Change in commercial paper, net Additions to long-lom debt Reductions of long-torm debt Dividends paid Repurchase of stock (890) 1,003 (85) (1.362) (3,463) (1,006) (1461) 1,205) 373 4,516) Effoct of exchange rate changes Not increase/(decrease) in cash and cash equivalents on cash and cash equivalents 1,838 2,210 1,515 of period 784 695 4,046 $ 2.210 $ Supplemental information Interest paid, net of capitalized interest Income taxes (refunded)/paid $ 604$ (127) 126 871 $1,043 1,386 132 1,251 Property and acquired through capital lease obligations Includes cash of our discontinued operations of $25 million and $59 million at February 1, 2014 and February 2, 2013, respectively. Includes cash of our discontinued operations of $25 million at February 1, 2014. See accompanying Notes to Consolidated Financial Statements. Consolidated Statements of Operations (millions, except per share data) 2014 2013 2015 Sales Cost of sales Gross margin Selling, general and administrative expenses Depreciation and amortization Gain on sale Earnings from continuing operati S 73,785 $ 72,618 $ 71,279 51,997 21,788 14,665 2,213 (620) 51,278 21,340 14,676 2,129 50,039 21,240 14,465 1,996 (391) ons before interest expense and income 5,170 1,049 4,121 1,427 2,694 5,5304,535 taxes Net interest expense Earnings from continuing operations before income taxes Provision for income taxes Net earnings from continuing operations Discontinued operations, net of tax Net earnings/(loss) Basic earnings/ (loss) per share 607 4,923 1,602 3,321 42 882 3,653 1,204 2,449 (4,085) $3,363 $ (1,636) $ 1,971 Continuing operations 5.29 $ 3.86 $ 4.24 Discontinued operations 0.07 (6.44) 1.14 $5.35 $ (2.58) $ Net earnings/(loss) per share Diluted earnings/(loss) per share Continuing operations 4.20 $5.31 $(2.56) $ 3.07 627.7 634.7 635. S 5.25 $ 3.83 $ Discontinued operations 0.07 (6.38 Net earnings/ (loss) per share Weighted average common shares outstanding Basic Dilutive effect of share-based awards Diluted 5.2 632.9 5.4 640.1 3.3 641.8 2 Antidilutive shares ote: Per share amounts may not foot due to rounding ee accompanying Notes to Consolidated Financial Statements. Consolidated Statements of Comprehensive Income 2015 2014 2013 (millions) Net income/ (loss) Other comprehensive income/(loss), net of tax s 3,363 S (1,636) S 1,971 Pension and other benefit liabilities, net of (benefit)/provision for taxes (27) (139) 110 of $(18), $(90), and $71 Currency translation adjustment and cash flow hedges, net of provision for taxes of $2, $2, and $11 Other compreh Comprehensive (loss)/ income 431 292 (425) (315) income/(loss) (30) s 3.333 S (1.344) S 1.656 Notes to 11. Cash Equivalents Cash equivalents indude highly lqud investments with an origm0, 2016 respectively. Cash equivalents also Include amounts from eere $3,008 million and $1,520 million at January 30, 2016 and January 31, 2015 due from third-party financial institutions for credit and debit card maturity of three months or less from the time of and Januarsettle in less than five days and were $375 million and $379 million at 12.Inventory The majority of our inventory our inve nventory for first-out (LIFO) method., lony is acounted for under the retail inventory accounting method (RIM) using the last-in, amount we pay to our suppliers to acquire to our distribution centers and stores, and import inventory, freight costs incurred in connection with the delivery of product costs, reduced by vendor income and cash discounts. The majority period incurred ventory is also reduced for estimated losses related to shrink and markdowns. The LIFO provision is calculated based on inventory levels, markup rates, and internally measured retail price indices. of our distribution center operating costs, including compensation and benefits, are expensed Under RIM, inventory cost and the resulting gross margins are calculated by applying a cost-to-retail ratio to the inventory retail value. RIM is an averaging method that has been widely used in the retail industry due to its practicality The use of RIM will result in inventory being valued at the lower of cost or market because permanent markdowns are taken as a reduction of the retail value of inventory Certain other inventory is recorded at the lower of cost or market using the cost method. The valuation allowance for inventory valued under a cost method was not material to our Consolidated Financial Statements as of the end of fiscal 2015 or 2014. merchandise is ultimately sold to a guest. Activity under this program is included in sales and cost of sales in the Consolidated Statements of Operations, but the merchandise received under the program is not included in inventory We routinely enter into arrangements with vendors whereby we do not purchase or pay for merchandise until the in our Consolidated Statements of Financial Position because of the virtually simultaneous purchase and sale of this inventory. Sales made under these arrangements totaled $2,261 million, $2,040 million, and $1,833 million in 2015, 2014, and 2013, respectively. 13. Other Current Assets 30 16 352 $ 379 214 48 31 Other Current Assets (millions) Income tax and other receivablos Vendor income receivable Pharmacy-related receivables Pharmacy and clinic assets held for sale Other Total 426 426 231 274 510 207 2,074 168 1,161 S sell outstanding pharmacy-related receivaties as part of the pharmacies and clirics transaction. See Note 6 for more We did not information on the pharmacies and clinics transaction. See Note 6 for additionalIntformation relating to the pharmacy and dinic assets held for sale. 14. Property and Equipment estimated useful lives or lease terma Property and equipment is depreciated using the straight-line method over chorter. We amortize leasehold improwements purchased after the beginning o tr assets'useful livos or a term that includes the original lease term, plus any renew of the initial lease term over the shorter that are reasonably assured and capital lease amortization expense for 2015 and $1,975 million, respectively. For income tax purposes at the date the leasehold improvements are a 2014, and 2013 was $2,191 million, $2, pre-opening costs, including supplies and payroll, are expensed as 108 million, nds are generally used. Repair and maintenance costs are expensed as incurred. Facility 8-39 2-15 2-7 Estimated Useful Lives Fixtures and equipment Computer hardware and software Long-lived assets are reviewed or close a store or mako For asset groups classified as for impairment when events or changes in circumstances, such as a decision to rel sre or mako significant software changes, indicate that the asset's carrying value may not be recoverabie fr sale, the carrying value is compared to the fair value less cost to sell. We y obliaining market appraisals, valuations from third party brokers, or other valuation techniques. rments 2013 58 19 2015 2014 Impairments included in segment SG&A Unallocated impairments Total 50 $ 108 $ 54 $ 124 primarly from completed or planned store closures and software changes Co 201 mmur decitionto wincertain nonoore represents impairments of undevaloped land operstions. For 2014 and 2013, 15. Other Noncurrent Assets Other Noncurrent Assets (millions) Goodwill and intangible assets Company-owned life insurance investments Jentuar,516 Jsnun 2015 277 $ 308 298 322 Pension asset Interest rate swaps Other Total 27 162 840 S 65 193 879 Company-owned life insurance policies on approximately 4,000 team members who have been designated highly compensated under the Internal Revenue Code and have given their consent to be insured. Amounts are presented not of loans that are secured by some of these policies See Notes 10 and 21 for additional information relating to our interest rate swaps 16. Goodwill and Intangible Assets Goodwill totaled $133 million and $147 million at January 30, 2016 and January 31, 2015, respectively. During 2015, we announced our decision to wind down certain noncore operations. As a result, we recorded a $35 million pretax impairment loss, which included approximately $23 million of intangible assets and $12 million of goodwill.These costs were included in SG&A on our Consolidated Statements of Operations, but were not included in our segment results. No impairments were recorded in 2015, 2014 or 2013 as a result of the annual goodwill impairment tests performed 47 intangible Assets Leasehold Other 30, January 31 January 31. J Gross asset 299 (154) 145 224 $ 181 (117) 88 s Net intangible assots (133 84 S 91 S 588 million in connection with the sale of our pharmacy and dinios 61 S laprimarly to trademarks We sold 591 mition of oross intanaible ses with socumulated depreciation of businesses See Nota 6 for additional inormaon We use the straight-line mothod to amortize leasehold acquisition costs primarily over 9 to 39 years and other definite- OVer 3 to 15 years. The welghted average life of loasehold aoquisition costs and other intangible and oars, rospoctively, at January 30,2016. Amortization expense was $23 mitlion, $22 million, amortizo and $20 million in 2015, 2014, and 2013, respectively. Estimatod Amortization Expense 2016 2017 2018 2019 2020 17. Accounts Payable At January 30, 2016 and January 31, 2015, we reclassified book overdrafts of $534 million and $882 million respectively, to accounts payable and $99 million and $82 million, respectively, to accrued and other current liablities 18. Accrued and Other Current Liablities Accrued and Other Current Liablities 31. (millions) Wages and benefits Gift card liability, net of estimated breakage Real estate, sales, and other taxes payable 16 884 $ 644 574 502 951 612 Income tax payable 26 Dividends payable Straight-line rent accrual Workers' compensation and general liablity e interest payable Project costs accrual Other Total 255 153 76 69 758 3,783 76 73 738 S 4,236 $ Straight-ine rent accrual operating leases We retain a substantial portion of the risk related to general liability and workens losses include estimates of historical data and actuarial estimatos. General liability and workers' compensation liabilites ' compensation daims. Liabilitios associated with these of both claims filed and losses incurred but not yet reported. We estimate our ultimate cost based on analysis are recorded at our estimate of their net present value. 48 Refer to the Target Corporation financial statements Hand-Out, including Notes 14 and 15. In addition to the above, refer to pages 356 and 532 in your text book for the data for Kohl's Corporation. Answer the following questions. Requirements 1. Which depreciation method does Target Corporation use for reporting in the financial statements? What type of depreciation method does the company probably use for income tax purposes? Where did you find this information? 2. What was the amount of depreciation and amortization expense for the year ending January 30, 2016? On what statement did you find this? 3. The statement of cash flows reports the cash purchases of property, plant, and equipment. How much were Target's additions to property, plant, and equipment during the year ending January 30, 2016? Did Target record any proceeds from the sale of property, plant, and equipment? (Hint: Look at the section Investing Activities). 4. What was the amount of accumulated depreciation at January 30, 2016? What was the net book value of property, plant, and equipment for Target as of January 34, 2016? On what statement did you find this? 5. Compute Target's asset turnover ratio for year ending January 30, 2016. Round to two decimal places. How does Target's ratio compare with that of Kohl's Corporation? (Keep in mind the amounts are in millions) 6.Compute Target's rate of inventory turnover and days' sales in inventory for year ending January 30, 2016. How does it compare with Kohl's Corporation? Consolidated Statements of Financial Position Januar2 310s Jan (millions, except footnotes) Assets Cash and cash equivalents, including short-term investments of $3,008 and $1,520 $4,046 S 2.210 8,601 322 1,161 14,130 8,282 1,058 2,074 13,624 Assets of discontinued operations Other current assets Total current assets Property and equipment 6.127 Land Buildings and improvements Fixtures and equipment Computer hardware and software 6,125 27,059 5,347 2,617 315 26,613- 5,329 2,552 424 (16,246) (15,093) Accumulated depreciation 25,952 book valuc) 25,217 75 Property and equipment, net Noncurrent assets of discontinued operations Other noncurrent assets Total assets Liabilities and shareholders' investment Accounts payable Accrued and other current liabilities Current portion of long-term debt and other borrowings Liabilities of discontinued operations 879 S 40,262 S 41,172 $ 7,418 S7,759 3,783 91 103 11,736 12,634 1,160 193 1,452 4,236 815 153 12,622 11,945 Total current liabilities Long-term debt and other borrowings Deferred income taxes Noncurrent liabilities of discontinued operations Other noncurrent liabilities Total noncurrent liabilitiles 823 18 1,897 14,683 15,439 Shareholders' investment Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss 50 5.348 8,188 53 4,899 9,644 Pension and other benefit liabilities (588) (41) (561) (38) Currency translation adjustment and cash flow hedges Total shareholders' investment Total liabilities and shareholders investment Common Stock Authorized 6,000,000,000 shares, $0.0833 parvalue; shares issued and outstanding at January 31, 2015 Preferred Stock Authorized 5,000,000 shares $0.01 par value; no shares were issued or outstanding at January 30, 2016 or See accompanying Notes to Consolidated Financial Statements 12,957 13,997 SC 40,262 $41,172 602.226,517 shares issued and outstanding at January 30,2018 010 218 982- anuary 31, 2015 Consolidated Statements of Cash Flows S 3.363 (1.636) $ 1,971 2,694 Net eamings/(loss fom dscontrued contnulng operations net of tax 3321 eamings from Adustments to recondile net earnings to cash provided by operations 1,996 2,213 2,129 Depreciation and amortization Deferred income taxes Gain on sale Loss on debt extinguishment Noncash (osins)/losses and other, net Changes in operating acoounts (391) (620) (12) Accounts reaceivablo originated at Target 157 2,703 Proceeds on sale of accounts recelvable originated at Target Other assets Accounts payabie and accrued labiines (512) 534 5,140 704 5.844 (79) 7,519 6,520 Cash provided by eperating acovities-continuing operations 5,131 Investing activities Expenditures for preparty and equipment Proceeds from disposal of property and equipment Proceeds from sale of businesses (1438) 1.786) (1,886) 70 1,875 Change in accounts receivable originated at third parties Proceeds from sale of accounts recelvable originated at thied parties Cash paid for aoquisitions, net of cash assumed Other investments 121 3,002 106 (1,605) (157) 130 1,280 Cash provided by /(required for) investing activities-continuling operations (1,926) Financing activities Change in commercial paper, net Additions to long-lom debt Reductions of long-torm debt Dividends paid Repurchase of stock (890) 1,003 (85) (1.362) (3,463) (1,006) (1461) 1,205) 373 4,516) Effoct of exchange rate changes Not increase/(decrease) in cash and cash equivalents on cash and cash equivalents 1,838 2,210 1,515 of period 784 695 4,046 $ 2.210 $ Supplemental information Interest paid, net of capitalized interest Income taxes (refunded)/paid $ 604$ (127) 126 871 $1,043 1,386 132 1,251 Property and acquired through capital lease obligations Includes cash of our discontinued operations of $25 million and $59 million at February 1, 2014 and February 2, 2013, respectively. Includes cash of our discontinued operations of $25 million at February 1, 2014. See accompanying Notes to Consolidated Financial Statements. Consolidated Statements of Operations (millions, except per share data) 2014 2013 2015 Sales Cost of sales Gross margin Selling, general and administrative expenses Depreciation and amortization Gain on sale Earnings from continuing operati S 73,785 $ 72,618 $ 71,279 51,997 21,788 14,665 2,213 (620) 51,278 21,340 14,676 2,129 50,039 21,240 14,465 1,996 (391) ons before interest expense and income 5,170 1,049 4,121 1,427 2,694 5,5304,535 taxes Net interest expense Earnings from continuing operations before income taxes Provision for income taxes Net earnings from continuing operations Discontinued operations, net of tax Net earnings/(loss) Basic earnings/ (loss) per share 607 4,923 1,602 3,321 42 882 3,653 1,204 2,449 (4,085) $3,363 $ (1,636) $ 1,971 Continuing operations 5.29 $ 3.86 $ 4.24 Discontinued operations 0.07 (6.44) 1.14 $5.35 $ (2.58) $ Net earnings/(loss) per share Diluted earnings/(loss) per share Continuing operations 4.20 $5.31 $(2.56) $ 3.07 627.7 634.7 635. S 5.25 $ 3.83 $ Discontinued operations 0.07 (6.38 Net earnings/ (loss) per share Weighted average common shares outstanding Basic Dilutive effect of share-based awards Diluted 5.2 632.9 5.4 640.1 3.3 641.8 2 Antidilutive shares ote: Per share amounts may not foot due to rounding ee accompanying Notes to Consolidated Financial Statements. Consolidated Statements of Comprehensive Income 2015 2014 2013 (millions) Net income/ (loss) Other comprehensive income/(loss), net of tax s 3,363 S (1,636) S 1,971 Pension and other benefit liabilities, net of (benefit)/provision for taxes (27) (139) 110 of $(18), $(90), and $71 Currency translation adjustment and cash flow hedges, net of provision for taxes of $2, $2, and $11 Other compreh Comprehensive (loss)/ income 431 292 (425) (315) income/(loss) (30) s 3.333 S (1.344) S 1.656 Notes to 11. Cash Equivalents Cash equivalents indude highly lqud investments with an origm0, 2016 respectively. Cash equivalents also Include amounts from eere $3,008 million and $1,520 million at January 30, 2016 and January 31, 2015 due from third-party financial institutions for credit and debit card maturity of three months or less from the time of and Januarsettle in less than five days and were $375 million and $379 million at 12.Inventory The majority of our inventory our inve nventory for first-out (LIFO) method., lony is acounted for under the retail inventory accounting method (RIM) using the last-in, amount we pay to our suppliers to acquire to our distribution centers and stores, and import inventory, freight costs incurred in connection with the delivery of product costs, reduced by vendor income and cash discounts. The majority period incurred ventory is also reduced for estimated losses related to shrink and markdowns. The LIFO provision is calculated based on inventory levels, markup rates, and internally measured retail price indices. of our distribution center operating costs, including compensation and benefits, are expensed Under RIM, inventory cost and the resulting gross margins are calculated by applying a cost-to-retail ratio to the inventory retail value. RIM is an averaging method that has been widely used in the retail industry due to its practicality The use of RIM will result in inventory being valued at the lower of cost or market because permanent markdowns are taken as a reduction of the retail value of inventory Certain other inventory is recorded at the lower of cost or market using the cost method. The valuation allowance for inventory valued under a cost method was not material to our Consolidated Financial Statements as of the end of fiscal 2015 or 2014. merchandise is ultimately sold to a guest. Activity under this program is included in sales and cost of sales in the Consolidated Statements of Operations, but the merchandise received under the program is not included in inventory We routinely enter into arrangements with vendors whereby we do not purchase or pay for merchandise until the in our Consolidated Statements of Financial Position because of the virtually simultaneous purchase and sale of this inventory. Sales made under these arrangements totaled $2,261 million, $2,040 million, and $1,833 million in 2015, 2014, and 2013, respectively. 13. Other Current Assets 30 16 352 $ 379 214 48 31 Other Current Assets (millions) Income tax and other receivablos Vendor income receivable Pharmacy-related receivables Pharmacy and clinic assets held for sale Other Total 426 426 231 274 510 207 2,074 168 1,161 S sell outstanding pharmacy-related receivaties as part of the pharmacies and clirics transaction. See Note 6 for more We did not information on the pharmacies and clinics transaction. See Note 6 for additionalIntformation relating to the pharmacy and dinic assets held for sale. 14. Property and Equipment estimated useful lives or lease terma Property and equipment is depreciated using the straight-line method over chorter. We amortize leasehold improwements purchased after the beginning o tr assets'useful livos or a term that includes the original lease term, plus any renew of the initial lease term over the shorter that are reasonably assured and capital lease amortization expense for 2015 and $1,975 million, respectively. For income tax purposes at the date the leasehold improvements are a 2014, and 2013 was $2,191 million, $2, pre-opening costs, including supplies and payroll, are expensed as 108 million, nds are generally used. Repair and maintenance costs are expensed as incurred. Facility 8-39 2-15 2-7 Estimated Useful Lives Fixtures and equipment Computer hardware and software Long-lived assets are reviewed or close a store or mako For asset groups classified as for impairment when events or changes in circumstances, such as a decision to rel sre or mako significant software changes, indicate that the asset's carrying value may not be recoverabie fr sale, the carrying value is compared to the fair value less cost to sell. We y obliaining market appraisals, valuations from third party brokers, or other valuation techniques. rments 2013 58 19 2015 2014 Impairments included in segment SG&A Unallocated impairments Total 50 $ 108 $ 54 $ 124 primarly from completed or planned store closures and software changes Co 201 mmur decitionto wincertain nonoore represents impairments of undevaloped land operstions. For 2014 and 2013, 15. Other Noncurrent Assets Other Noncurrent Assets (millions) Goodwill and intangible assets Company-owned life insurance investments Jentuar,516 Jsnun 2015 277 $ 308 298 322 Pension asset Interest rate swaps Other Total 27 162 840 S 65 193 879 Company-owned life insurance policies on approximately 4,000 team members who have been designated highly compensated under the Internal Revenue Code and have given their consent to be insured. Amounts are presented not of loans that are secured by some of these policies See Notes 10 and 21 for additional information relating to our interest rate swaps 16. Goodwill and Intangible Assets Goodwill totaled $133 million and $147 million at January 30, 2016 and January 31, 2015, respectively. During 2015, we announced our decision to wind down certain noncore operations. As a result, we recorded a $35 million pretax impairment loss, which included approximately $23 million of intangible assets and $12 million of goodwill.These costs were included in SG&A on our Consolidated Statements of Operations, but were not included in our segment results. No impairments were recorded in 2015, 2014 or 2013 as a result of the annual goodwill impairment tests performed 47 intangible Assets Leasehold Other 30, January 31 January 31. J Gross asset 299 (154) 145 224 $ 181 (117) 88 s Net intangible assots (133 84 S 91 S 588 million in connection with the sale of our pharmacy and dinios 61 S laprimarly to trademarks We sold 591 mition of oross intanaible ses with socumulated depreciation of businesses See Nota 6 for additional inormaon We use the straight-line mothod to amortize leasehold acquisition costs primarily over 9 to 39 years and other definite- OVer 3 to 15 years. The welghted average life of loasehold aoquisition costs and other intangible and oars, rospoctively, at January 30,2016. Amortization expense was $23 mitlion, $22 million, amortizo and $20 million in 2015, 2014, and 2013, respectively. Estimatod Amortization Expense 2016 2017 2018 2019 2020 17. Accounts Payable At January 30, 2016 and January 31, 2015, we reclassified book overdrafts of $534 million and $882 million respectively, to accounts payable and $99 million and $82 million, respectively, to accrued and other current liablities 18. Accrued and Other Current Liablities Accrued and Other Current Liablities 31. (millions) Wages and benefits Gift card liability, net of estimated breakage Real estate, sales, and other taxes payable 16 884 $ 644 574 502 951 612 Income tax payable 26 Dividends payable Straight-line rent accrual Workers' compensation and general liablity e interest payable Project costs accrual Other Total 255 153 76 69 758 3,783 76 73 738 S 4,236 $ Straight-ine rent accrual operating leases We retain a substantial portion of the risk related to general liability and workens losses include estimates of historical data and actuarial estimatos. General liability and workers' compensation liabilites ' compensation daims. Liabilitios associated with these of both claims filed and losses incurred but not yet reported. We estimate our ultimate cost based on analysis are recorded at our estimate of their net present value. 48