Foot Locker 2008 Annual Report Download - page 61

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45
8. Merchandise Inventories
2008 2007
(in millions)
LIFO inventories ................................................... $ 788 $ 907
FIFO inventories ................................................... 332 374
Total merchandise inventories ........................................ $1,120 $1,281
The value of the Company’s LIFO inventories, as calculated on a LIFO basis, approximates their value as calculated
on a FIFO basis.
9. Other Current Assets
2008 2007
(in millions)
Net receivables .................................................... $ 53 $ 50
Prepaid expenses and other current assets ............................... 33 34
Prepaid rent ...................................................... 62 65
Prepaid income taxes ............................................... 47 69
Deferred taxes .................................................... 29 53
Northern Group note receivable ....................................... — 14
Current tax asset .................................................. — 1
Income tax receivable ............................................... 7 —
Fair value of derivative contracts ...................................... 5 3
$ 236 $ 289
10. Property and Equipment, Net
2008 2007
(in millions)
Land ............................................................ $ 3 $ 3
Buildings:
Owned ........................................................ 31 30
Furniture, fixtures and equipment:
Owned ........................................................ 1,018 1,117
1,052 1,150
Less: accumulated depreciation ..................................... (829) (903)
223 247
Alterations to leased and owned buildings
Cost .......................................................... 724 799
Less: accumulated amortization ..................................... (515) (525)
209 274
$432 $521
11. Goodwill
2008 2007
(in millions)
Athletic Stores .................................................... $ 17 $186
Direct-to-Customers ................................................ 127 80
$144 $266
Goodwill for the Direct-to-Customers segment increased by $47 million due to the Company’s purchase of CCS
from dELiA*s, Inc. during the fourth quarter of 2008. The effect of foreign exchange fluctuations for the year ended
January 31, 2009 decreased goodwill by $2 million, resulting from the strengthening of the U.S. dollar in relation to
the euro. During the fourth quarter of 2008, the Company recorded impairment charges of $167 million, as more fully
described in note 4.