Foot Locker 2006 Annual Report Download - page 40

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24
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The Board of Directors and Shareholders of
Foot Locker, Inc.
We have audited the accompanying consolidated balance sheets of Foot Locker, Inc. and subsidiaries as of February 3,
2007 and January 28, 2006, and the related consolidated statements of operations, comprehensive income, shareholders’
equity, and cash flows for each of the years in the three-year period ended February 3, 2007. These consolidated financial
statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these
consolidated financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United
States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the
financial position of Foot Locker, Inc. and subsidiaries as of February 3, 2007 and January 28, 2006, and the results of
their operations and their cash flows for each of the years in the three-year period ended February 3, 2007, in conformity
with U.S. generally accepted accounting principles.
As discussed in the notes to the consolidated financial statements, effective January 29, 2006, the Company adopted
Statement of Financial Accounting Standards (“SFAS”) No. 123(R), “Share-Based Payment,” and SFAS No. 151, “Inventory
Costs - An Amendment of ARB No. 43, Chapter 4,” as well as changed their method for quantifying errors based on SEC
Staff Accounting Bulletin No. 108, “Considering the Effects of Prior Year Misstatements when Quantifying Misstatements
in Current Year Financial Statements.” Also as discussed in the notes to the consolidated financial statements, effective
February 3, 2007, the Company adopted SFAS No. 158, “Employers’ Accounting for Defined Benefit Pension and Other Post
Retirement Plans – An Amendment of FASB Statements No. 87, 88, 106, and 132(R).”
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United
States), the effectiveness of Foot Locker. Inc.’s internal control over financial reporting as of February 3, 2007, based on
cr iter ia established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of
the Treadway Commission (COSO), and our report dated April 2, 2007 expressed an unqualified opinion on management’s
assessment of, and the effective operation of, internal control over financial reporting.
New York, New York
April 2, 2007