Foot Locker 2008 Annual Report Download - page 76

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Savings Plans
The Company has two qualified savings plans, a 401(k) Plan that is available to employees whose primary place
of employment is the U.S., and an 1165 (e) Plan, which began during 2004 that is available to employees whose
primary place of employment is in Puerto Rico. Both plans require that the employees have attained at least the age
of twenty-one and have completed one year of service consisting of at least 1,000 hours. The savings plans allow
eligible employees to contribute up to 40 percent and $9,000 as of January 1, 2009, for the U.S. and Puerto Rico plans,
respectively, of their compensation on a pre-tax basis. The Company matches 25 percent of the first 4 percent of the
employees’ contributions with Company stock and such matching Company contributions are vested incrementally
over 5 years for both plans. The charge to operations for the Company’s matching contribution was $2.2 million, $1.8
million, and $1.9 million in 2008, 2007, and 2006, respectively.
25. Share-Based Compensation
Stock Options
On May 30, 2007, the Company’s shareholders approved the Company’s 2007 Stock Incentive Plan (the “2007 Stock
Plan”). Upon approval of the 2007 Stock Plan, the Company stated it would no longer make stock awards under the 2003
Stock Option and Award Plan (the “2003 Stock Option Plan”), the 1998 Stock Option and Award Plan (the “1998 Plan”),
and the 2002 Foot Locker Directors’ Stock Plan (the “2002 Directors’ Plan”), although awards previously made under
those plans and outstanding on May 30, 2007 continue in effect governed by the provisions of those plans.
Under the 2007 Stock Plan, stock options, restricted stock, stock appreciation rights (SARs), or other stock-based
awards may be granted to officers and other employees of the Company, including our subsidiaries and operating
divisions worldwide. Nonemployee directors are also eligible to receive awards under this plan. Options for employees
become exercisable in substantially equal annual installments over a three-year period, beginning with the first
anniversary of the date of grant of the option, unless a shorter or longer duration is established at the time of the
option grant. Options for nonemployee directors become exercisable one year from the date of grant. The maximum
number of shares of stock reserved for all awards under the 2007 Stock Plan is 6,000,000. The number of shares reserved
for issuance as restricted stock and other stock-based awards cannot exceed 1,500,000 shares. The options terminate
up to ten years from the date of grant.
Under the Company’s 2003 Stock Option Plan and the 1998 Plan, options to purchase shares of common stock
were granted to officers and other employees at not less than the market price on the date of grant. Under these plans,
the Company was authorized to grant to officers and other employees, including those at the subsidiary level, stock
options, SARs, restricted stock or other stock-based awards. Generally, one-third of each stock option grant becomes
exercisable on each of the first three anniversary dates of the date of grant. The options terminate up to 10 years from
the date of grant.
The 2002 Directors’ Plan replaced both the Directors’ Stock Plan, which was adopted in 1996, and the Directors’
Stock Option Plan, which was adopted in 2000. No further grants or awards may be made under either of the prior
plans. Options granted prior to 2003 have a three-year vesting schedule. Options granted beginning in 2003 become
exercisable one year from the date of grant.
In addition, options to purchase shares of common stock remain outstanding under the Company’s 1995 Stock
Option and Award Plan (the “1995 Plan”). The 1995 Plan is substantially the same as the 1998 Plan. As of March 8, 2005
no further awards may be made under the 1995 Plan.
Employee Stock Purchase Plan
Under the Company’s 2003 Employees Stock Purchase Plan (the “2003 Employee Stock Purchase Plan”),
participating employees are able to contribute up to 10 percent of their annual compensation through payroll deductions
to acquire shares of the Company’s common stock at 85 percent of the lower market price on one of two specified dates
in each plan year. Under the 2003 Employee Stock Purchase Plan, 3,000,000 shares of common stock are authorized for
purchase beginning June 2005. Of the 3,000,000 shares of common stock authorized for purchase under this plan, 587
participating employees purchased 96,800 shares in 2008, and 723 participating employees purchased 98,449 shares in
2007. To date, a total of 537,725 shares have been purchased under this plan.