Foot Locker 2007 Annual Report Download - page 64

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48
19. Repositioning and Restructuring Reserves
1999 Restructuring
The Company recorded restructuring charges in 1999 for programs to sell or liquidate eight non-core businesses.
The restructuring plan also included an accelerated store-closing program in North America and Asia, corporate
headcount reduction and a distribution center shutdown. The dispositions of Randy River Canada, Foot Locker Outlets,
Colorado, Going to the Game!, Weekend Edition and the store-closing program were essentially completed in 2000.
In 2001, the Company completed the sales of The San Francisco Music Box Company and the assets related to its Burger
King and Popeye’s franchises. The termination of the Maumelle distribution center lease was completed in 2002. As of
February 2, 2008 and February 3, 2007 the reserve balance is $1 million.
1993 Repositioning and 1991 Restructuring
The Company recorded charges in 1993 and in 1991 to reflect the anticipated costs to sell or close under-performing
specialty and general merchandise stores in the United States and Canada. During 2007, the Company adjusted the
reserve by $2 million primarily due to favorable lease terminations. As of February 2, 2008 and February 3, 2007, the
reserve balance was $1 million and $3 million, respectively.
20. Income Taxes
Following are the domestic and international components of pre-tax (loss) income from continuing operations:
2007 2006 2005
(in millions)
Domestic ................................................... $(131) $320 $309
International ................................................ 81 72 96
Total pre-tax (loss) income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (50) $392 $405
The income tax (benefit) provision consists of the following:
2007 2006 2005
(in millions)
Current:
Federal .................................................. $ (4) $ 93 $72
State and local ............................................ (4) 14 11
International ............................................. 38 17 35
Total current tax provision ................................... 30 124 118
Deferred:
Federal .................................................. (58) 10 22
State and local ............................................ — 6 7
International ............................................. (71) 5 (5)
Total deferred tax (benefit) provision ............................. (129) 21 24
Total income tax (benefit) provision .............................. $ (99) $145 $142
Provision has been made in the accompanying Consolidated Statements of Operations for additional income taxes
applicable to dividends received or expected to be received from international subsidiaries. The amount of unremitted
earnings of international subsidiaries for which no such tax is provided and which is considered to be permanently
reinvested in the subsidiaries totaled $476 million and $427 million at February 2, 2008, and February 3, 2007,
respectively.