Foot Locker 2009 Annual Report Download - page 44

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Recent Accounting Pronouncements
In July of 2009, the Company adopted the FASB Accounting Standards Codification (‘‘Codification’’), which
establishes the Codification as the source of authoritative accounting principles recognized by the FASB to be
applied by nongovernmental entities in the preparation of financial statements in conformity with GAAP. The
historical GAAP hierarchy was eliminated and the Codification became the only level of authoritative GAAP, other
than guidance issued by the SEC. The FASB will not issue new standards in the form of Statements, FASB Staff
Positions or Emerging Issues Task Force Abstracts. Instead, it will issue Accounting Standards Updates (‘‘ASUs’’).
ASUs will serve to update the Codification, provide background information about the guidance and provide the
basis for conclusions on changes in the Codification. The Codification was effective for all financial statements
issued for interim and annual periods ending after September 15, 2009. Accordingly, the Company has reflected
all necessary changes in this filing.
Recently issued accounting pronouncements did not, or are not believed by management to, have a material
effect on the Company’s present or future 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, financial objectives, 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), pandemics and similar major health
concerns, unseasonable weather, further deterioration of global financial markets, economic conditions
worldwide, further deterioration of business and economic conditions, 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 effectively its strategic
plan and its business plans with regard to each of its business units, and 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
26