Foot Locker 2006 Annual Report Download - page 56

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40
Long-Lived Assets
2006 2005 2004
(in millions)
United States ........................................... $504 $523 $547
International ........................................... 150 152 168
Total long-lived assets .................................... $654 $675 $715
4 Other Income
In 2006, other income includes a gain of $8 million related to a final settlement with the Company’s insurance
carriers of claims related to Hurricane Katrina. In 2005, the Company recorded a gain of $3 million of insurance
recoveries in excess of losses associated with Hurricane Katrina.
During 2006, the Company purchased and retired $38 million of the $200 million 8.50 percent debentures payable
in 2022, at a $2 million discount from face value. Also during 2006, the Company terminated two of its leases and
recorded a net gain of $4 million.
In 2005, the Company recorded a net gain of $3 million related to 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
denominated earnings.
5 Short-Term Investments
The Company’s auction rate security investments are accounted for as available-for-sale securities. The fair value
of all investments approximate their carrying cost as the investments are generally not held for more than 49 days and
they are traded at par value. The following represents the composition of the Company’s auction rate securities by
underlying investment.
2006 2005
(in millions)
Tax exempt municipal bonds ........................................ $ 44 $ 41
Equity securities ................................................. 205 257
$249 $298
Contractual maturities of the bonds outstanding at February 3, 2007 range from 2026 to 2042.
6 Merchandise Inventories
2006 2005
(in millions)
LIFO inventories ............................................... $ 967 $ 939
FIFO inventories ............................................... 336 315
Total merchandise inventories .................................... $1,303 $1,254
The value of the Company’s LIFO inventories, as calculated on a LIFO basis, approximates their value as calculated
on a FIFO basis.