Foot Locker 2014 Annual Report Download - page 32

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Failure to fully comply with Section 404 of the Sarbanes-Oxley Act of 2002 could negatively affect our
business, market confidence in our reported financial information, and the price of our common stock.
We continue to document, test, and monitor our internal controls over financial reporting in order to satisfy all
of the requirements of Section 404 of the Sarbanes-Oxley Act of 2002; however, we cannot be assured that our
disclosure controls and procedures and our internal controls over financial reporting will prove to be completely
adequate in the future. Failure to fully comply with Section 404 of the Sarbanes-Oxley Act of 2002 could
negatively affect our business, market confidence in our reported financial information, and the price of our
common stock.
Item 1B. Unresolved Staff Comments
None.
Item 2. Properties
The properties of the Company and its consolidated subsidiaries consist of land, leased stores, administrative
facilities, and distribution centers. Gross square footage and total selling area for the Athletic Stores segment
at the end of 2014 were approximately 12.73 and 7.48 million square feet, respectively. These properties, which
are primarily leased, are located in the United States, Canada, various European countries, Australia, and
New Zealand.
The Company currently operates seven distribution centers, of which three are owned and four are leased,
occupying an aggregate of 2.9 million square feet. Three distribution centers are located in the United States,
three in Germany, and one in the Netherlands. The three locations in Germany relate to the central warehouse
distribution centers for the Runners Point Group store locations, as well as a distribution center for its
direct-to-customer business. During 2014, we opened a new distribution center in Germany which provides us
with increased capacity that will enable us to support the planned growth of both the store and
direct-to-customer businesses. This larger distribution center will also allow us to consolidate the other two
locations in Germany in 2015.
We also own a cross-dock and manufacturing facility and operate a leased warehouse in the United States,
both of which support our Team Edition apparel business.
Item 3. Legal Proceedings
Information regarding the Company’s legal proceedings is contained in the Legal Proceedings note under
‘‘Item 8. Consolidated Financial Statements and Supplementary Data.’’
Item 4. Mine Safety Disclosures
Not applicable.
9