Foot Locker 2007 Annual Report Download - page 38

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22
and Disclosure Regarding Discontinued Operations,” which requires changes in the carrying value of assets received
as consideration from the disposal of a discontinued operation to be classified within continuing operations. The
purchaser has made all payments required under the terms of the note; however, the business has sustained unexpected
operating losses during the past fiscal year. The Company has evaluated the projected performance of the business and
will continue to monitor its results during the coming year. At February 2, 2008, CAD$15.5 million remains outstanding
on the note, the fair value of which is US$14 million.
The remaining discontinued reserve balances at February 2, 2008 totaled $23 million of which $14 million is
expected to be utilized within the next twelve months. The remaining repositioning and restructuring reserves totaled
$2 million at February 2, 2008.
Disclosure Regarding Forward-Looking Statements
This report contains forward-looking statements within the meaning of the federal securities laws. All statements,
other than statements of historical facts, which address activities, events or developments that the Company expects
or anticipates will or may occur in the future, including, but not limited to, such things as future capital expenditures,
expansion, strategic plans, dividend payments, stock repurchases, growth of the Company’s business and operations,
including future cash flows, revenues and earnings, and other such matters are forward-looking statements. These
forward-looking statements are based on many assumptions and factors detailed in the Company’s filings with the
Securities and Exchange Commission, including the effects of currency fluctuations, customer demand, fashion trends,
competitive market forces, uncertainties related to the effect of competitive products and pricing, customer acceptance
of the Company’s merchandise mix and retail locations, the Company’s reliance on a few key vendors for a majority of
its merchandise purchases (including a significant portion from one key vendor), unseasonable weather, economic
conditions worldwide, any changes in business, political and economic conditions due to the threat of future terrorist
activities in the United States or in other parts of the world and related U.S. military action overseas, the ability of
the Company to execute its business plans effectively with regard to each of its business units, risks associated with
foreign global sourcing, including political instability, changes in import regulations, and disruptions to transportation
services and distribution. Any changes in such assumptions or factors could produce significantly different results.
The Company undertakes no obligation to update forward-looking statements, whether as a result of new information,
future events, or otherwise.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Information regarding interest rate risk management and foreign exchange risk management is included in
the “Financial Instruments and Risk Management” footnote under “Item 8. Consolidated Financial Statements and
Supplementary Data.”