Foot Locker 2009 Annual Report Download - page 58

Sales and long-lived asset information by geographic area as of and for the fiscal years ended January 30,
2010, January 31, 2009, and February 2, 2008 are presented below. Sales are attributed to the country in which
the sales originate, which is where the legal subsidiary is domiciled. Long-lived assets reflect property and
equipment. The Company’s sales in Italy, Canada, and France represent approximately 24, 17, and 14 percent,
respectively, of the International category’s sales for the period ended January 30, 2010. No other individual
country included in the International category is significant.
Sales
2009 2008 2007
(in millions)
United States .......................................... $3,425 $3,768 $3,991
International .......................................... 1,429 1,469 1,446
Total sales ............................................ $4,854 $5,237 $5,437
Long-Lived Assets
2009 2008 2007
(in millions)
United States .......................................... $266 $311 $368
International .......................................... 121 121 153
Total long-lived assets .................................... $387 $432 $521
3. Impairment and Other Charges
2009 2008 2007
(in millions)
Impairment of assets ..................................... $36 $ 67 $124
Reorganization costs ..................................... 5 — —
Store closing program .................................... — 5 4
Impairment of goodwill and other intangible assets ................ — 169 —
Money market impairment ................................. — 3 —
Northern Group note impairment ............................. — 15 —
Total impairment and other charges ........................... $41 $259 $128
Impairment of Assets
During the year ended January 30, 2010, the Company recorded non-cash impairment charges totaling
$36 million. A charge of $32 million was recorded to write-down long-lived assets such as store fixtures and
leasehold improvements at its Lady Foot Locker, Kids Foot Locker, Footaction and Champs Sports divisions for
787 stores. Additionally, the Company recorded a charge of $4 million to write off certain software development
costs for the Direct-to-Customers segment as a result of management’s decision to terminate this project. During
2008, the Company evaluated the long-lived assets of its U.S. retail store divisions, comprising Foot Locker
U.S., Kids Foot Locker, Footaction and Champs Sports, for impairment and recorded non-cash impairment charges
of $67 million primarily to write-down long-lived assets such as store fixtures and leasehold improvements for
868 stores. During 2007, the Company evaluated the long-lived assets of its U.S. retail store divisions for
impairment and recorded non-cash impairment charges of $124 million primarily to write-down long-lived assets
such as store fixtures and leasehold improvements for 1,461 stores.
Reorganization Costs
On January 8, 2010, the Company announced that it would change its organizational structure by
consolidating the management team that oversees its Lady Foot Locker business with the team that currently
manages the Foot Locker U.S., Kids Foot Locker and Footaction businesses. As a result of this divisional
reorganization, as well as certain corporate staff reductions taken to improve corporate efficiency, the Company
recorded a charge of $5 million. This charge was comprised primarily of severance costs to eliminate
approximately 120 positions.
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