Foot Locker 2007 Annual Report Download - page 57

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41
Depreciation and
Amortization Capital Expenditures Total Assets
2007 2006 2005 2007 2006 2005 2007 2006 2005
(in millions)
Athletic Stores . . . . . . . . . . . . . . . . $146 $ 147 $141 $125 $135 $137 $2,298 $ 2,374 $2,322
Direct-to-Customers . . . . . . . . . . . . 6 6 6 7 4 6 197 195 196
152 153 147 132 139 143 2,495 2,569 2,518
Corporate . . . . . . . . . . . . . . . . . . . . 14 22 24 16 26 12 753 680 794
Total Company . . . . . . . . . . . . . . . . $166 $ 175 $171 $148 $165 $155 $3,248 $3,249 $3,312
Sales and long-lived asset information by geographic area as of and for the fiscal years ended February 2, 2008,
February 3, 2007 and January 28, 2006 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, Canada, and France represent approximately 21, 18, and 14 percent, respectively, of the
International category’s sales for the period ended February 2, 2008. No other individual country included in the
International category is significant.
Sales
2007 2006 2005
(in millions)
United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,991 $4,356 $4,257
International . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,446 1,394 1,396
Total sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,437 $5,750 $5,653
Long-Lived Assets
2007 2006 2005
(in millions)
United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $368 $ 504 $523
International . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153 150 152
Total long-lived assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 521 $654 $675
5. Other Income
Other income was $1 million, $14 million and $6 million for 2007, 2006 and 2005, respectively. Included in other
income are non-operating items, such as the effect of foreign currency option contracts, sales of lease interests and
insurance proceeds.
In 2007, other income includes a $1 million gain related to a final settlement with the Company’s insurance carriers
of a claim related to a store damaged by fire in 2006. Additionally, the Company sold two of its lease interests in Europe
for a gain of $1 million. These gains were offset primarily by premiums paid for foreign currency option contracts.
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, income of $2 million related to the purchase and retirement of debt and
lease termination income of $4 million. The Company purchased and retired $38 million of its $200 million 8.50 percent
debentures payable in 2022, at a $2 million discount from face value. 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. Additionally, the Company recorded a gain of $3 million of insurance recoveries in excess of
losses associated with Hurricane Katrina.