Foot Locker 2006 Annual Report Download - page 61

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45
Rent expense consists of the following:
2006 2005 2004
(in millions)
Minimumrent ........................................ $496 $489 $470
Other occupancy expenses .............................. 145 141 135
Contingent rent based on sales ........................... 21 13 11
Sublease income ...................................... (1) (1) (1)
Total rent expense .................................... $661 $642 $615
Future minimum lease payments under non-cancelable operating leases are:
(in millions)
2007 ................................................................ $ 486
2008 ................................................................ 432
2009 ................................................................ 371
2010 ................................................................ 332
2011 ................................................................ 289
Thereafter ........................................................... 829
Total operating lease commitments ........................................ $2,739
Present value of operating lease commitments ................................ $2,069
16 Other Liabilities
2006 2005
(in millions)
Pension benefits .................................................. $ 21 $ 42
Postretirement benefits ............................................ 11 84
Straight-line rent liability ........................................... 91 83
Income taxes .................................................... 45 35
Workers’ compensation / general liability reserves ........................ 12 12
Reserve for discontinued operations ................................... 12 14
Repositioning and restructuring reserves ............................... 3 3
Fair value of derivatives ............................................ 12 2
Unfavorable leases ................................................ 2 3
Other .......................................................... 9 15
$218 $293
17 Discontinued Operations
On January 23, 2001, the Company announced that it was exiting its 694-store Northern Group segment. During
the second quarter of 2001, the Company completed the liquidation of the 324 stores in the United States. On September
28, 2001, the Company completed the stock transfer of the 370 Northern Group stores in Canada, through one of its
wholly owned subsidiaries for approximately CAD$59 million, which was paid in the form of a note. Over the last several
years, the note has been amended and payments have been received, however the interest and payment terms remained
unchanged. The note is required to be repaid upon the occurrence of “payment events,” as defined in the purchase
agreement, but no later than September 28, 2008. As of February 3, 2007, CAD$15.5 million remains outstanding on the
note. The fair value of the note at February 3, 2007 and January 28, 2006, is $11 million and $1 million is classified as
a current receivable, with the remainder classified as long term within other assets in the accompanying Consolidated
Balance Sheets. All scheduled principal and interest payments have been received in accordance with the terms of the
note. During 2006, the Company revised its estimates related to the U.S. Northern store reserve resulting in a reduction
of $2 million.