Foot Locker 2006 Annual Report Download - page 55

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39
Operating Results
2006 2005 2004
(in millions)
Athletic Stores ....................................... $405 $ 419 $420
Direct-to-Customers ................................... 45 48 45
450 467 465
Restructuring charges (1) ................................ (1) — (2)
Division profit ....................................... 449 467 463
Corporate expense (2) ................................... (68) (58) (74)
Operating profit ...................................... 381 409 389
Other income (3) ....................................... 14 6 —
Interest expense, net .................................. 3 10 15
Income from continuing operations before income taxes ....... $392 $405 $ 374
(1) The restructuring charge in 2006 represents a revision to the original estimate of the lease liability associated with the guarantee of
The San Francisco Music Box distribution center. During 2004, the Company recorded a restructuring charge of $2 million related to the
dispositions of non-core businesses. These charges were classified within selling, general and administrative expenses in the Consolidated
Statements of Operations.
(2) 2004 includes integration costs of $5 million related to the acquisitions of Footaction and the 11 stores in the Republic of Ireland.
(3) 2006 includes $4 million gain on lease terminations; $8 million of insurance proceeds related to the 2005 hurricane; and $2 million gain on
debt repurchase.
2005 includes a $3 million gain from insurance recoveries associated with Hurricane Katrina. Additionally, $3 million represents a net gain
on foreign currency option contracts that were entered into by the Company to mitigate the effect of fluctuating foreign exchange rates on
the reporting of euro dominated earnings.
Depreciation and
Amortization Capital Expenditures Total Assets
2006 2005 2004 2006 2005 2004 2006 2005 2004
(in millions)
Athletic Stores .............. $147 $141 $126 $135 $137 $139 $2,374 $2,322 $2,335
Direct-to-Customers .......... 66546 8195196190
153 147 131 139 143 147 2,569 2,518 2,525
Corporate .................. 22 24 23 26 12 9 680 794 711
Discontinued operations ....... ————— — — — 1
Total Company .............. $175 $171 $154 $165 $155 $156 $3,249 $3,312 $3,237
Sales and long-lived asset information by geographic area as of and for the fiscal years ended February 3, 2007,
January 28, 2006 and January 29, 2005 are presented below. Sales are attributed to the country in which the sales
originate, which is where the legal subsidiary is domiciled. Long-lived assets reflect property and equipment. The
Company’s sales in Italy and France represent approximately 36, 39 and 40 percent of the International category’s sales
for the three-year period ended February 3, 2007. No other individual country included in the International category
is significant.
Sales
2006 2005 2004
(in millions)
United States ....................................... $4,356 $4,257 $3,982
International ....................................... 1,394 1,396 1,373
Total sales ......................................... $5,750 $5,653 $5,355