Foot Locker 2007 Annual Report Download - page 79

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FIVE-YEAR SUMMARY OF SELECTED FINANCIAL DATA
The selected financial data below should be read in conjunction with the Consolidated Financial Statements and
the notes thereto and other information contained elsewhere in this report.
2007 2006(1) 2005 2004 2003
($ in millions, except per share amounts)
Summary of Continuing Operations
Sales ....................................................... $ 5,437 5,750 5,653 5,355 4,779
Gross margin (2) ............................................... 1,420 1,736 1,709 1,633 1,482
Selling, general and administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . 1,176 1,163 1,129 1,090 988
Impairment charges and store closing program costs . . . . . . . . . . . . . . . . . . 128 17 — — —
Depreciation and amortization(2) ................................. 166 175 171 154 152
Interest expense, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 3 10 15 18
Other income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) (14) (6) — —
Income from continuing operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 247 263 255 209
Cumulative effect of accounting change(3) .......................... — 1 — — (1)
Basic earnings per share from continuing operations . . . . . . . . . . . . . . . . . . 0.321.59 1.70 1.69 1.47
Basic earnings per share from cumulative
effect of accounting change .................................. — 0.01 — — —
Diluted earnings per share from continuing operations . . . . . . . . . . . . . . . . 0.321.58 1.67 1.64 1.40
Diluted earnings per share from cumulative
effect of accounting change .................................. — — — — —
Common stock dividends declared per share . . . . . . . . . . . . . . . . . . . . . . . . 0.50 0.40 0.32 0.26 0.15
Weighted-average common shares outstanding (in millions) . . . . . . . . . . . . 154.0 155.0 155.1 150.9 141.6
Weighted-average common shares outstanding
assuming dilution (in millions) ................................ 155.6 156.8 157.6 157.1 152.9
Financial Condition
Cash, cash equivalents and short-term investments . . . . . . . . . . . . . . . . . . . $ 493 470 587 492 448
Merchandise inventories ........................................ 1,281 1,303 1,254 1,151 920
Property and equipment, net(4) ................................... 521 654 675 715 668
Total assets(4) ................................................ 3,248 3,249 3,312 3,237 2,713
Short-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — — —
Long-term debt and obligations under capital leases . . . . . . . . . . . . . . . . . . 221 234 326 365 335
Total shareholders’ equity ....................................... 2,2712,295 2,027 1,830 1,375
Financial Ratios
Return on equity (ROE) ......................................... 2.1% 11.5 13.6 15.9 16.8
Operating (loss) profit margin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.9)% 6.6 7.2 7.3 7.2
Income from continuing operations as a percentage of sales . . . . . . . . . . . . 0.9% 4.3 4.7 4.8 4.4
Net debt capitalization percent(5) ................................. 44.9% 44.4 45.2 50.4 53.3
Net debt capitalization percent (without present
value of operating leases)(5) .................................. — — — — —
Current ratio ................................................. 4.1 3.9 2.8 2.7 2.8
Other Data
Capital expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 148 165 155 156 144
Number of stores at year end . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,785 3,942 3,921 3,967 3,610
Total selling square footage at year end (in millions) . . . . . . . . . . . . . . . . . . 8.50 8.74 8.71 8.89 7.92
Total gross square footage at year end (in millions) ................... 14.12 14.55 14.48 14.78 13.14
(1) 2006 represents the 53 weeks ended February 3, 2007.
(2) Gross margin and depreciation expense include the effects of the reclassification of tenant allowances as deferred credits, which are
amortized as a reduction of rent expense as a component of costs of sales. Gross margin was reduced by $5 million in 2004 and 2003 and
accordingly, depreciation expense was increased by the corresponding amount.
(3) 2006 relates to the adoption of SFAS No. 123(R), “Share-Based Payment.” 2003 relates to adoption of SFAS No. 143, “Accounting for Asset
Retirement Obligations.”
(4) Property and equipment, net and total assets include the reclassification of tenant allowances as deferred credits, which were previously
recorded as a reduction to the cost of property and equipment, and are now classified as part of the deferred rent liability. Property and
equipment, net and total assets were increased by $22 million in 2004 and $24 million in 2003.
(5) Represents total debt, net of cash, cash equivalents and short-term investments and includes the effect of interest rate swaps. The effect
of interest rate swaps increased/ (decreased) debt by $4 million, $(4) million, $(1) million, $4 million, and $(1) million at February 2, 2008,
February 3, 2007, January 28, 2006, January 29, 2005, and January 31, 2004, respectively.