Foot Locker (FL)

Corporate Expense

     Corporate expense consists of unallocated general and administrative expenses as well as depreciation and amortization related to the Company’s corporate headquarters, centrally managed departments, unallocated insurance and benefit programs, certain foreign exchange transaction gains and losses, and other items.

     Corporate expense decreased by $9 million to $59 million in 2007 as compared with 2006. Depreciation and amortization included in corporate expense amounted to $14 million in 2007 and $22 million in 2006, the decrease reflecting certain software assets which were fully depreciated. Excluding the change in corporate expense related to depreciation and amortization, corporate expense declined primarily due to reduced incentive compensation expense.

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Corporate
Expense

     Corporate expense consists of unallocated general and administrative
expenses as well as depreciation and amortization related to the Company’s
corporate headquarters, centrally managed departments, unallocated insurance and
benefit programs, certain foreign exchange transaction gains and losses, and
other items.

     Corporate expense decreased by $9 million to $59 million in 2007 as
compared with 2006. Depreciation and amortization included in corporate expense
amounted to $14 million in 2007 and $22 million in 2006, the decrease reflecting
certain software assets which were fully depreciated. Excluding the change in
corporate expense related to depreciation and amortization, corporate expense
declined primarily due to reduced incentive compensation expense.

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Corporate Expense

     Corporate expense consists of unallocated general and administrative expenses, as well as depreciation and amortization related to the Company’s corporate headquarters, centrally managed departments, unallocated insurance and benefit programs, certain foreign exchange transaction gains and losses and other items.

     The increase in corporate expense in 2006 as compared with 2005 of $10 million reflects the adoption of SFAS No. 123(R) that resulted in incremental compensation expense of $6 million and a charge of $4 million for anticipated settlements of certain legal matters. The effect of the 53^rd week on corporate expense was not significant. Depreciation and amortization included in corporate expense amounted to $22 million in 2006, $24 million in 2005, and $23 million in 2004.

     The decrease in corporate expense in 2005 as compared with 2004 primarily included decreased incentive bonuses of $14 million; a $3 million decrease in costs associated with the Company’s loyalty program, as 2004 represented the initial costs to launch the program; and decreased restricted stock expense of $2 million. In addition, 2004 included $5 million for the integration of the Footaction stores. Included in 2005 was also a settlement of $3 million pursuant to a class action settlement with Visa and MasterCard related to past overcharges for certain debit card transactions. These decreases were offset, in part, by a charge of $4 million due to the potential insolvency of one of the Company’s insurance carriers and legal and settlement costs of $5 million.

Corporate Expense

          Corporate expense consists of unallocated general and administrative expenses as well as depreciation and amortization related to the Company’s corporate headquarters, centrally managed departments, unallocated insurance and benefit programs, certain foreign exchange transaction gains and losses and other items.  Corporate expense includes the effect of the adoption of SFAS No. 123(R), which resulted in incremental compensation expense of $2 million and $5 million for the thirteen and thirty-nine week periods ended October 28, 2006, respectively. The third quarter of 2006, includes a charge of $2 million for anticipated legal settlements.  The third quarter of 2005 included a $3 million charge associated with inventory and fixed assets losses sustained due to the hurricanes, a charge of $3 million due to a legal settlement, and a charge of $4 million due to the potential insolvency of one of the Company’s insurance carriers. In addition, pursuant to a class action settlement, Visa and MasterCard agreed to refund merchants for past overcharges for certain debit card transactions. As a result of this settlement, the Company recorded income of $3 million during the third quarter of 2005.  The thirty-nine weeks ended October 28, 2006 reflects reduced incentive compensation expense as compared with the corresponding prior-year period.

Corporate Expense

          Corporate expense consists of unallocated general and administrative expenses as well as depreciation and amortization related to the Company’s corporate headquarters, centrally managed departments, unallocated insurance and benefit programs, certain foreign exchange transaction gains and losses and other items.  Corporate expense of $14 million for the thirteen weeks ended July 29, 2006 includes the effect of the adoption of SFAS No. 123(R) of $2 million, reduced incentive compensation expense of $3 million and a charge for an anticipated legal settlement of $2 million.  Corporate expense for the twenty-six weeks ended July 29, 2006 increased by $2 million to $32 million from the same period in the prior year.  The increase includes a charge of $2 million for an anticipated legal settlement and the effect of SFAS No. 123 (R), which resulted in additional compensation expense of $3 million, offset by reduced incentive compensation expense of $3 million.

Corporate Expense

          Corporate expense consists of unallocated general and administrative expenses related to the Company’s corporate headquarters, centrally managed departments, unallocated insurance and benefit programs, certain foreign exchange transaction gains and losses and other items.  Corporate expense for the thirteen weeks ended April 29, 2006 increased by $3 million.  The adoption of SFAS No. 123(R) in the first quarter of 2006 resulted in approximately $1 million in additional compensation expense.

Corporate Expense

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