Foot Locker 2006 Annual Report Download - page 38

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22
Item 8. Consolidated Financial Statements and Supplementary Data
MANAGEMENT’S REPORT
The integrity and objectivity of the financial statements and other financial information presented in this annual
report are the responsibility of the management of the Company. The financial statements have been prepared in
conformity with U.S. generally accepted accounting principles and include, when necessary, amounts based on the best
estimates and judgments of management.
The Company maintains a system of internal controls designed to provide reasonable assurance, at appropriate
cost, that assets are safeguarded, transactions are executed in accordance with management’s authorization and the
accounting records provide a reliable basis for the preparation of the financial statements. The system of internal
accounting controls is continually reviewed by management and improved and modified as necessary in response
to changing business conditions. The Company also maintains an internal audit function to assist management in
evaluating and formally reporting on the adequacy and effectiveness of internal accounting controls, policies and
procedures.
The Company’s financial statements have been audited by KPMG LLP, the Company’s independent registered public
accounting firm, whose report expresses their opinion with respect to the fairness of the presentation of these financial
statements.
The Audit Committee of the Board of Directors, which comprises solely independent non-management directors
who are not officers or employees of the Company, meets regularly with the Company’s management, internal auditors,
legal counsel and KPMG LLP to review the activities of each group and to satisfy itself that each is properly discharging
its responsibility. In addition, the Audit Committee meets on a periodic basis with KPMG LLP, without management’s
presence, to discuss the audit of the financial statements as well as other auditing and financial reporting matters.
The Company’s internal auditors and independent registered public accounting firm have direct access to the Audit
Committee.
MATTHEW D. SERRA,
Chairman of the Board,
President and Chief Executive Officer
ROBERT W. MCHUGH,
Senior Vice President and
Chief Financial Officer
April 2, 2007