Foot Locker (FL)

Goodwill and Intangible Assets

     The Company accounts for goodwill and other intangibles in accordance with SFAS No. 142, “Goodwill and Other Intangible Assets,” which requires that goodwill and intangible assets with indefinite lives be reviewed for impairment if impairment indicators arise and, at a minimum, annually.

     The Company performs its annual impairment review as of the beginning of each fiscal year. The fair value of each reporting unit is determined using a combination of market and discounted cash flow approaches. During the third and fourth quarters of 2007, the Company performed reviews of its U.S. Athletic stores’ goodwill, as a result of the SFAS No. 144 recoverability analysis. These analyses did not result in an impairment charge. Separable intangible assets that are deemed to have finite lives will continue to be amortized over their estimated useful lives. Intangible assets with finite lives primarily reflect lease acquisition costs and are amortized over the lease term.

Goodwill and Intangible
Assets

     The
Company accounts for goodwill and other intangibles in accordance with SFAS No.
142, “Goodwill and Other Intangible Assets,” which requires that goodwill and
intangible assets with indefinite lives be reviewed for impairment if impairment
indicators arise and, at a minimum, annually.

     The
Company performs its annual impairment review as of the beginning of each fiscal
year. The fair value of each reporting unit is determined using a combination of
market and discounted cash flow approaches. During the third and fourth quarters
of 2007, the Company performed reviews of its U.S. Athletic stores’ goodwill, as
a result of the SFAS No. 144 recoverability analysis. These analyses did not
result in an impairment charge. Separable intangible assets that are deemed to
have finite lives will continue to be amortized over their estimated useful
lives. Intangible assets with finite lives primarily reflect lease acquisition
costs and are amortized over the lease term.

Goodwill and Intangible Assets

     The Company accounts for goodwill and other intangibles in accordance with SFAS No. 142, “Goodwill and Other Intangible Assets,” which requires that goodwill and intangible assets with indefinite lives be reviewed for impairment if impairment indicators arise and, at a minimum, annually.

     The Company performs its annual impairment review as of the beginning of each fiscal year. The fair value of each reporting unit is evaluated as of the beginning of each year, determined using a combination of market and discounted cash flow approaches, exceeded the carrying value of each respective reporting unit. Separable intangible assets that are deemed to have finite lives will continue to be amortized over their estimated useful lives. Intangible assets with finite lives primarily reflect lease acquisition costs and are amortized over the lease term.

Goodwill and Intangible Assets