Foot Locker 2007 Annual Report Download - page 60

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44
Amortization expense for the intangibles subject to amortization was approximately $19 million for both 2007
and 2006, and $18 for 2005. Annual estimated amortization expense for finite life intangible assets is expected
to approximate $18 million for 2008, $17 million for 2009, $15 million for 2010, $12 million for 2011 and $9 million
for 2012.
12. Other Assets
2007 2006
(in millions)
Deferred tax costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9 $ 21
Prepaid income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 —
Income tax asset . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 —
Investments and note receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 7
Northern Group note receivable, net of current portion . . . . . . . . . . . . . . . . . . . . . . — 10
Fair value of derivative contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 —
Pension benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 8
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 37
$58 $83
13. Accrued and Other Liabilities
2007 2006
(in millions)
Pension and postretirement benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4 $ 4
Incentive bonuses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 12
Other payroll and payroll related costs, excluding taxes . . . . . . . . . . . . . . . . . . . . . 52 46
Taxes other than income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 46
Property and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 24
Customer deposits(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 33
Income taxes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 2
Fair value of derivative contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 2
Current deferred tax liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 4
Sales return reserve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4
Current portion of repositioning and restructuring reserves . . . . . . . . . . . . . . . . . . — 1
Current portion of reserve for discontinued operations . . . . . . . . . . . . . . . . . . . . . . 14 3
Other operating costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 65
$268 $246
(1) Customer deposits include unredeemed gift cards and certificates, merchandise credits and, deferred revenue related to undelivered
merchandise, including layaway sales.
14. Revolving Credit Facility
At February 2, 2008, the Company had unused domestic lines of credit of $189 million, pursuant to a $200 million
unsecured revolving credit agreement. $11 million of the line of credit was committed to support standby letters of
credit. These letters of credit are primarily used for insurance programs.
In May 2004, shortly after the Footaction acquisition, the Company amended its revolving credit agreement,
thereby extending the maturity date to May 2009 from July 2006. In October 2007, the Company amended its revolving
credit agreement to provide for a one-year extension of the revolving credit facility to May 19, 2010 and a reduction
in the fixed charge coverage ratio to no less than 1.25:1 for the fourth quarter of 2007 and the first quarter of 2008,
increasing to 2.0:1 by the first quarter of 2010. The amendment also permits the payment of dividends by the Company
of up to $90 million in 2008 and up to $100 million for each year thereafter. With regard to stock repurchases, the
amendment provides that not more than $50 million in the aggregate may be expended after October 26, 2007 unless
the fixed charge coverage ratio is at least 2.0:1 for the quarter immediately preceding any such repurchase and the
Company has delivered its annual audited financial statements with respect to 2007.