Foot Locker 2007 Annual Report Download - page 41

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25
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 2, 2008
and February 3, 2007, 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 2, 2008. 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 also includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, 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 2, 2008 and February 3, 2007, and the results of
their operations and their cash flows for each of the years in the three-year period ended February 2, 2008 in conformity
with U.S. generally accepted accounting principles.
As discussed in the Notes to Consolidated Financial Statements, effective February 4, 2007, the Company adopted
Statement of Financial Accounting Standards Interpretation (“FIN”) No. 48, “Accounting for Uncertainty in Income
Taxes.” Effective February 3, 2007, the Company adopted Statement of Financial Accounting Standards (“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).” In addition, effective January 29, 2006, the Company adopted 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.”
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 2, 2008, based on
criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations
of the Treadway Commission (COSO), and our report dated March 31, 2008 expressed an unqualified opinion on the
effectiveness of internal control over financial reporting.
New York, New York
March 31, 2008