Foot Locker 2013 Annual Report Download - page 92

Foot Locker, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
22. Share-Based Compensation − (continued)
Restricted share and unit activity is summarized as follows:
Number of Shares and Units
2013 2012 2011
(in thousands)
Outstanding at beginning of year 1,564 2,068 1,759
Granted 469 278 686
Vested (649) (782) (327)
Cancelled or forfeited (15) — (50)
Outstanding at end of year 1,369 1,564 2,068
Aggregate value (in millions) $37 $30 $30
Weighted-average remaining contractual life (in years) 0.89 0.84 1.19
The weighted-average grant-date fair value per share was $35.03, $30.89, and $20.18 for 2013, 2012, and 2011,
respectively. The total fair value of awards for which restrictions lapsed was $9 million, $8 million, and $4 million
for 2013, 2012, and 2011, respectively.
23. Legal Proceedings
Legal proceedings pending against the Company or its consolidated subsidiaries consist of ordinary, routine
litigation, including administrative proceedings, incidental to the business of the Company or businesses that
have been sold or disposed of by the Company in past years. These legal proceedings include commercial,
intellectual property, customer, environmental, and employment-related claims.
Certain of the Company’s subsidiaries are defendants in a number of lawsuits filed in state and federal courts
containing various class action allegations under federal or state wage and hour laws, including allegations
concerning unpaid overtime, meal and rest breaks, and uniforms.
The Company is a defendant in one such case in which plaintiff alleges that the Company permitted unpaid
off-the-clock hours in violation of the Fair Labor Standards Act and state labor laws. The case, Pereira v. Foot
Locker, was filed in the U.S. District Court for the Eastern District of Pennsylvania in 2007. In his complaint, in
addition to unpaid wage and overtime allegations, plaintiff seeks compensatory and punitive damages, injunc-
tive relief, and attorneys’ fees and costs. In 2009, the Court conditionally certified a nationwide collective action.
During the course of 2010, notices were sent to approximately 81,888 current and former employees of the
Company offering them the opportunity to participate in the class action, and approximately 5,027 have
opted in.
The Company is a defendant in additional purported wage and hour class actions that assert claims similar to
those asserted in Pereira and seek similar remedies. With the exception of Hill v. Foot Locker filed in state court
in Illinois, Kissinger v. Foot Locker filed in state court of California, and Cortes v. Foot Locker filed in federal
court of New York, all of these actions were consolidated by the United States Judicial Panel on Multidistrict
Litigation with Pereira under the caption In re Foot Locker, Inc. Fair Labor Standards Act and Wage and Hour
Litigation. The consolidated cases are in the discovery stages of proceedings. In Hill v. Foot Locker, in May 2011,
the court granted plaintiffs’ motion for certification of an opt-out class covering certain Illinois employees only.
The Company’s motion for leave to appeal was denied. The Company has had and may in the future have
discussions with plaintiffs’ counsel in an attempt to determine whether it will be possible to resolve the consoli-
dated cases and Hill. Meanwhile, the Company is vigorously defending these class actions. During 2013, in
Ghattas v. Foot Locker, the court gave final approval to a settlement of the action for an amount that was not
material to the results of operations.
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