Foot Locker 2009 Annual Report Download - page 57

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Sales
2009 2008 2007
(in millions)
Athletic Stores ......................................... $4,448 $4,847 $5,071
Direct-to-Customers ..................................... 406 390 364
Family Footwear ........................................ — — 2
Total sales .......................................... $4,854 $5,237 $5,437
Operating Results
2009 2008 2007
(in millions)
Athletic Stores
(1)
....................................... $114 $ (59) $(27)
Direct-to-Customers
(2)
.................................... 32 43 40
Family Footwear
(3)
...................................... — — (6)
146 (16) 7
Restructuring income
(4)
................................... 1 — 2
Division profit (loss) ..................................... 147 (16) 9
Corporate expense
(5)
..................................... (67) (87) (59)
Operating profit (loss) .................................... 80 (103) (50)
Other income
(6)
........................................ 3 8 1
Interest expense, net .................................... 10 5 1
Income (loss) from continuing operations before income taxes ......... $ 73 $(100) $(50)
(1) The year ended January 30, 2010 includes non-cash impairment charges totaling $32 million, which were recorded to write-down
long-lived assets such as store fixtures and leasehold improvements at the Company’s Lady Foot Locker, Kids Foot Locker, Footaction,
and Champs Sports divisions. The year ended January 31, 2009 includes a $241 million charge representing long-lived store asset
impairment, goodwill and other intangibles impairment and store closing costs related to the Company’s U.S. operations. The year
ended February 2, 2008 includes a $128 million charge representing impairment and store closing costs related to the Company’s U.S.
operations.
(2) Included in the results for the year ended January 30, 2010 is a non-cash impairment charge of $4 million to write off software
development costs.
(3) During the first quarter of 2007, the Company launched a new family footwear concept, Footquarters. The concept’s results did not meet
the Company’s expectations and, therefore, the Company decided not to invest further in this business. These stores were converted to
the Company’s other formats. Included in the operating loss of $6 million was $2 million of costs associated with the removal of
signage and the write-off of unusable fixtures.
(4) During 2009, the Company adjusted its 1999 restructuring reserves to reflect a favorable lease termination. During 2007, the Company
adjusted its 1993 Repositioning and 1991 Restructuring reserve by $2 million primarily due to favorable lease terminations.
(5) During the fourth quarter of 2009, the Company restructured its organization by consolidating the Lady Foot Locker, Foot Locker U.S.,
Kids Foot Locker and Footaction businesses in addition to reducing corporate staff resulting in a $5 million charge. Included in
corporate expense for the year ended January 31, 2009 is a $3 million other-than-temporary impairment charge related to the
investment in the Reserve International Liquidity Fund. Additionally, for the year ended January 31, 2009 the Company recorded a $15
million impairment charge on the Northern Group note receivable.
(6) Other income includes non-operating items, such as gains from insurance recoveries, gains on the repurchase and retirement of bonds,
royalty income, the changes in fair value, premiums paid and realized gains associated with foreign currency option contracts, described
more fully in Note 4, ‘‘Other Income.’’
Depreciation and
Amortization Capital Expenditures Total Assets
2009 2008 2007 2009 2008 2007 2009 2008 2007
(in millions)
Athletic Stores .... $ 90 $111 $146 $70 $122 $125 $1,873 $1,879 $2,300
Direct-to-Customers . 9 6 6 5 6 7 291 297 197
99 117 152 75 128 132 2,164 2,176 2,497
Corporate ........ 13 13 14 14 18 16 652 701 746
Total Company .... $112 $130 $166 $89 $146 $148 $2,816 $2,877 $3,243
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