Foot Locker (FL)

Business Risk

     The retailing business is highly competitive. Price, quality, selection of merchandise, reputation, store location, advertising and customer service are important competitive factors in the Company’s business. The Company operates in 21 countries and purchased approximately 80 percent of its merchandise in 2008 from its top 5 vendors. In 2008, the Company purchased approximately 64 percent of its athletic merchandise from one major vendor and approximately 9 percent from another major vendor. Each of our operating divisions is highly dependent on Nike; they individually purchase 44 to 78 percent of their merchandise from Nike. The Company generally considers all vendor relations to be satisfactory.

     Included in the Company’s Consolidated Balance Sheet as of January 31, 2009, are the net assets of the Company’s European operations, which total $545 million and which are located in 17 countries, 11 of which have adopted the euro as their functional currency.

Business Risk

     The
retailing business is highly competitive. Price, quality, selection of
merchandise, reputation, store location, advertising and customer service are
important competitive factors in the Company’s business. The Company operates in
21 countries and purchased approximately 80 percent of its merchandise in 2008
from its top 5 vendors. In 2008, the Company purchased approximately 64 percent
of its athletic merchandise from one major vendor and approximately 9 percent
from another major vendor. Each of our operating divisions is highly dependent
on Nike; they individually purchase 44 to 78 percent of their merchandise from
Nike. The Company generally considers all vendor relations to be
satisfactory.

     Included in the Company’s Consolidated Balance Sheet as of January 31,
2009, are the net assets of the Company’s European operations, which total $545
million and which are located in 17 countries, 11 of which have adopted the euro
as their functional currency.

Business Risk

     The
retailing business is highly competitive. Price, quality, selection of
merchandise, reputation, store location, advertising and customer service are
important competitive factors in the Company’s business. The Company operates in
21 countries and purchased approximately 80 percent of its merchandise in 2008
from its top 5 vendors. In 2008, the Company purchased approximately 64 percent
of its athletic merchandise from one major vendor and approximately 9 percent
from another major vendor. Each of our operating divisions is highly dependent
on Nike; they individually purchase 44 to 78 percent of their merchandise from
Nike. The Company generally considers all vendor relations to be
satisfactory.

     Included in the Company’s Consolidated Balance Sheet as of January 31,
2009, are the net assets of the Company’s European operations, which total $545
million and which are located in 17 countries, 11 of which have adopted the euro
as their functional currency.

Business Risk

     The retailing business is highly competitive. Price, quality, selection of merchandise, reputation, store location, advertising and customer service are important competitive factors in the Company’s business. The Company operates in 21 countries and purchased approximately 77 percent of its merchandise in 2007 from its top 5 vendors. In 2007, the Company purchased approximately 56 percent of its athletic merchandise from one major vendor and approximately 12 percent from another major vendor. Each of our operating divisions is highly dependent on Nike; they individually purchase 43 to 74 percent of their merchandise from Nike. The Company generally considers all vendor relations to be satisfactory.

     Included in the Company’s Consolidated Balance Sheet as of February 2, 2008, are the net assets of the Company’s European operations totaling $573 million, which are located in 17 countries, 11 of which have adopted the euro as their functional currency.

Business Risk

     The
retailing business is highly competitive. Price, quality, selection of
merchandise, reputation, store location, advertising and customer service are
important competitive factors in the Company’s business. The Company operates in
21 countries and purchased approximately 77 percent of its merchandise in 2007
from its top 5 vendors. In 2007, the Company purchased approximately 56 percent
of its athletic merchandise from one major vendor and approximately 12 percent
from another major vendor. Each of our operating divisions is highly dependent
on Nike; they individually purchase 43 to 74 percent of their merchandise from
Nike. The Company generally considers all vendor relations to be
satisfactory.

     Included in the Company’s Consolidated Balance Sheet as of February 2,
2008, are the net assets of the Company’s European operations totaling $573
million, which are located in 17 countries, 11 of which have adopted the euro as
their functional currency.

Business Risk

     The retailing business is highly competitive. Price, quality and selection of merchandise, reputation, store location, advertising and customer service are important competitive factors in the Company’s business. The Company operates in 20 countries and purchased approximately 78 percent of its merchandise in 2006 from its top 5 vendors. In 2006, the Company purchased approximately 50 percent of its athletic merchandise from one major vendor and approximately 14 percent from another major vendor. Each of our operating divisions are highly dependent on Nike, they individually purchase 40 to 65 percent of their merchandise from Nike. The Company generally considers all vendor relations to be satisfactory.

     Included in the Company’s Consolidated Balance Sheet as of February 3, 2007, are the net assets of the Company’s European operations totaling $478 million, which are located in 16 countries, 11 of which have adopted the euro as their functional currency.

Business Risk