Foot Locker 2008 Annual Report Download - page 81

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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.
2008 2007(1) 2006(2) 2005 2004
($ in millions, except per share amounts)
Summary of Continuing Operations
Sales ................................................... $ 5,237 5,437 5,750 5,653 5,355
Gross margin(3) ........................................... 1,460 1,420 1,736 1,709 1,633
Selling, general and administrative expenses .................... 1,174 1,176 1,163 1,129 1,090
Impairment charges and store closing program costs .............. 259 128 17 — —
Depreciation and amortization(3) ............................. 130 166 175 171 154
Interest expense, net ...................................... 5 1 3 10 15
Other income ............................................ (8) (1) (14) (6) —
Income (loss) from continuing operations ...................... (79) 43 247 263 255
Cumulative effect of accounting change(4) ...................... — — 1 — —
Basic earnings per share from continuing operations .............. (0.52) 0.29 1.59 1.70 1.69
Basic earnings per share from cumulative
effect of accounting change .............................. — — 0.01 — —
Diluted earnings per share from continuing operations ............ (0.52) 0.28 1.58 1.67 1.64
Diluted earnings per share from cumulative
effect of accounting change .............................. — ————
Common stock dividends declared per share ..................... 0.60 0.50 0.40 0.32 0.26
Weighted-average common shares outstanding (in millions) ........ 154.0 154.0 155.0 155.1 150.9
Weighted-average common shares outstanding
assuming dilution (in millions) ............................ 154.0 155.6 156.8 157.6 157.1
Financial Condition
Cash, cash equivalents and short-term investments ............... $ 408 493 470 587 492
Merchandise inventories .................................... 1,120 1,281 1,303 1,254 1,151
Property and equipment, net(5) ............................... 432 521 654 675 715
Total assets(5) ............................................ 2,877 3,243 3,249 3,312 3,237
Short-term debt .......................................... — ————
Long-term debt and obligations under capital leases .............. 142 221 234 326 365
Total shareholders’ equity ................................... 1,924 2,261 2,295 2,027 1,830
Financial Ratios
Return on equity (ROE) ..................................... (3.8)% 1.6 11.5 13.6 15.9
Operating (loss) profit margin ............................... (2.0)% (0.9) 6.6 7.2 7.3
Income (loss) from continuing operations as a percentage of sales . . . (1.5)% 0.8 4.3 4.7 4.8
Net debt capitalization percent(6) ............................. 46.7% 45.1 44.4 45.2 50.4
Net debt capitalization percent (without present
value of operating leases)(6) .............................. — ————
Current ratio ............................................. 4.2 4.0 3.9 2.8 2.7
Other Data
Capital expenditures ...................................... $ 146 148 165 155 156
Number of stores at year end ................................ 3,641 3,785 3,942 3,921 3,967
Total selling square footage at year end (in millions) .............. 8.09 8.50 8.74 8.71 8.89
Total gross square footage at year end (in millions) ............... 13.50 14.12 14.55 14.48 14.78
(1) The 2007 results have been corrected to reflect an immaterial revision to its fourth quarter and full year 2007 results in accordance
with Staff Accounting Bulletin 108, “Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year
Financial Statements.” See note 2.
(2) 2006 represents the 53 weeks ended February 3, 2007.
(3) 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 accordingly,
depreciation expense was increased by the corresponding amount.
(4) 2006 relates to the adoption of SFAS No. 123(R), “Share-Based Payment.”
(5) 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.
(6) 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 $19 million, $4 million, $(4) million, $(1) million, and $4 million, at January 31, 2009,
February 2, 2008, February 3, 2007, January 28, 2006, and January 29, 2005, respectively.