Foot Locker 2010 Annual Report Download - page 5

The strong
financial position
of our Company
remains one of
the pillars that
supports our business
and provides flexibility for
the future. Our cash flow generation
last year was also significant as our financial
performance improved and we increased
the productivity of our assets. As a result,
we increased the redeployment of our
cash in a number of ways. During 2010,
we increased capital expenditures to $97
million, paid dividends to our shareholders
of $93 million, repurchased $50 million of
our common stock and contributed $32
million to our North American pension
plans. We also announced a 10 percent
increase in our common stock dividend,
beginning with the first quarter payment
of 2011.
Core Values
While we have been hard at work
developing and executing our new
strategic priorities, managing our business
on a day-to-day basis and making decisions
for the future, we also recognized the
need to formalize the core values that our
associates operate under every day. These
core values, which are detailed on the
following pages, are the underpinning of
our corporate culture.
Taken together, our core values
reflect what is truly important to us as
an organization. They are permanent in
nature and do not change based upon a
current business situation. It is a high
priority for our Company to ensure that
our associates worldwide remain
proud of being an integral part
of Foot Locker, Inc. We
are committed to these
values and believe that
they will contribute
to our ongoing
success.
Conclusion and Looking Ahead
We are very encouraged by the progress
that we achieved in 2010. Our improved
financial performance resulted from
developing and executing our business
plan effectively; working with our industry-
leading suppliers to provide us with new,
exciting assortments of athletic footwear
and apparel; and providing an improved
shopping experience to better meet the
needs of our customers.
While we are proud of our accomplish-
ments in 2010, we recognize that we have
just begun. Our progress in 2010 gives us
confidence that we will build on the posi-
tive momentum from last year through 2011
and beyond. As a result, we are optimistic
about our future. Our ongoing focus will
remain balanced between maximizing the
efficiency of our existing businesses, pursu-
ing new growth opportunities and rede-
ploying excess cash to our stakeholders.
It is likely that uncertainty in the
marketplace will continue over the coming
months. Therefore, our success will
require that we maintain a sharp focus on
serving our customers through effective
merchandising and superior customer
service. We believe that the execution of
our strategic plan will lead
to a meaningful increase
in shareholder value over
the long term.
Our success cannot
be achieved without the
ongoing support of our
associates worldwide, our valued
business partners and our long-term
shareholders. We have also benefitted
greatly from the guidance of our Board
of Directors, as their contributions during
the past year were instrumental in setting
our Company on a new path to success.
In February 2011, we welcomed two new
directors to our Board, Guillermo Marmol
and Allen Questrom, whose valuable
knowledge and expertise will be strong
complements to our Board. My sincere
thanks go to our entire Board for their
ongoing support of Foot Locker, Inc. and
their commitment, along with that of our
management team, to bring our vision
to life.
Ken C. Hicks
Chairman of the Board,
President and Chief Executive Officer
4