Foot Locker 2008 Annual Report Download - page 42

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26
In June 2008, the FASB issued FASB Staff Position EITF 03-6-1, “Determining Whether Instruments Granted
in Share-Based Payment Transactions Are Participating Securities” (“FSP EITF 03-6-1”). FSP EITF 03-6-1 provides
that unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents
(whether paid or unpaid) are participating securities and shall be included in the computation of earnings per share
pursuant to the two-class method. The FSP EITF 03-6-1 is effective for financial statements issued for fiscal years
beginning after December 15, 2008, and interim periods within those years. Upon adoption, a company is required
to retrospectively adjust its earnings per share data (including any amounts related to interim periods, summaries
of earnings and selected financial data) to conform with the provisions of FSP EITF 03-6-1. The Company is currently
assessing the potential effect of FSP EITF 03-6-1 on its reporting of earnings per share.
In December 2008, the FASB issued FASB Staff Position (“FSP”) FAS No. 132(R)-1, “Employers’ Disclosures about
Postretirement Benefit Plan Assets” (“FSP FAS No. 132(R)-1”), which amends SFAS No. 132(R) “Employers’ Disclosures
about Pensions and Other Postretirement Benefits – an Amendment of FASB Statements No. 87, 88, and 106” (“SFAS
No. 132(R)”). FSP FAS No. 132(R)-1 requires more detailed disclosures about the assets of a defined benefit pension
or other postretirement plan and is effective for fiscal years ending after December 15, 2009. The Company is in the
process of evaluating FSP FAS No. 132(R)-1 and does not expect it will have a significant impact on its Consolidated
Financial Statements.
Disclosure Regarding Forward-Looking Statements
This report contains forward-looking statements within the meaning of the federal securities laws. All statements,
other than statements of historical facts, which address activities, events or developments that the Company expects
or anticipates will or may occur in the future, including, but not limited to, such things as future capital expenditures,
expansion, strategic plans, dividend payments, stock repurchases, growth of the Company’s business and operations,
including future cash flows, revenues and earnings, and other such matters are forward-looking statements. These
forward-looking statements are based on many assumptions and factors detailed in the Company’s filings with the
Securities and Exchange Commission, including the effects of currency fluctuations, customer demand, fashion
trends, competitive market forces, uncertainties related to the effect of competitive products and pricing, customer
acceptance of the Company’s merchandise mix and retail locations, the Company’s reliance on a few key vendors for a
majority of its merchandise purchases (including a significant portion from one key vendor), unseasonable weather,
further deterioration of global financial markets, economic conditions worldwide, any changes in business, political
and economic conditions due to the threat of future terrorist activities in the United States or in other parts of the
world and related U.S. military action overseas, the ability of the Company to execute its business plans effectively
with regard to each of its business units, risks associated with foreign global sourcing, including political instability,
changes in import regulations, and disruptions to transportation services and distribution. Any changes in such
assumptions or factors could produce significantly different results. The Company undertakes no obligation to update
forward-looking statements, whether as a result of new information, future events, or otherwise.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Information regarding interest rate risk management and foreign exchange risk management is included in
the “Financial Instruments and Risk Management” note under “Item 8. Consolidated Financial Statements and
Supplementary Data.”
Item 8. Consolidated Financial Statements and Supplementary Data