Foot Locker (FL)

Impairment of Assets and Store Closing Program

     In connection with the review of goodwill and other intangibles, the Company performed a store long-lived impairment test pursuant to SFAS No. 144 for its Foot Locker, Kids Foot Locker, and Footaction divisions. Additionally, in accordance with the Company’s store long-lived assets policy, the Company determined that triggering events had occurred during the fourth quarter of 2008 at its Lady Foot Locker and Champs Sports divisions. Accordingly, the Company evaluated the long-lived assets of those operations for impairment and recorded non-cash impairment charges of $67 million primarily to write-down long-lived assets such as store fixtures and leasehold improvements for 868 stores at the Company’s U.S. store operations.

     During the year ended January 31, 2009, the Company closed 21 unproductive stores as part of the store closing program announced in 2007. Exit costs of $5 million for the year ended January 31, 2009, comprising primarily lease termination costs, were recognized in accordance with SFAS No. 146, “Accounting for Costs Associated with Exit or Disposal Activities.”

     During 2007, the Company concluded that triggering events had occurred at its U.S. retail store divisions, comprising Foot Locker, Lady Foot Locker, Kids Foot Locker, Footaction, and Champs Sports. Accordingly, the Company evaluated the long-lived assets of those operations for impairment and recorded non-cash impairment charges of $117 million primarily to write-down long-lived assets such as store fixtures and leasehold improvements for 1,395 stores at the Company’s U.S. store operations pursuant to SFAS No. 144. The Company recorded an additional non-cash impairment charge of $7 million in 2007 as a result of the decision to close 66 unproductive stores as part of a store closing program. Exit costs related to 33 stores, which closed during 2007, comprising primarily lease termination costs of $4 million, were recognized in accordance with SFAS No. 146.

     Under SFAS No. 144, store closings may constitute discontinued operations if migration of customers and cash flows are not expected. The Company has concluded that no store closings have met the criteria for discontinued operations treatment.

Impairment of Assets and Store
Closing Program

     In
connection with the review of goodwill and other intangibles, the Company
performed a store long-lived impairment test pursuant to SFAS No. 144 for its
Foot Locker, Kids Foot Locker, and Footaction divisions. Additionally, in
accordance with the Company’s store long-lived assets policy, the Company
determined that triggering events had occurred during the fourth quarter of 2008
at its Lady Foot Locker and Champs Sports divisions. Accordingly, the Company
evaluated the long-lived assets of those operations for impairment and recorded
non-cash impairment charges of $67 million primarily to write-down long-lived
assets such as store fixtures and leasehold improvements for 868 stores at the
Company’s U.S. store operations.

     During the year ended January 31, 2009, the Company closed 21
unproductive stores as part of the store closing program announced in 2007. Exit
costs of $5 million for the year ended January 31, 2009, comprising primarily
lease termination costs, were recognized in accordance with SFAS No. 146,
“Accounting for Costs Associated with Exit or Disposal Activities.”

     During 2007, the Company concluded that triggering events had occurred at
its U.S. retail store divisions, comprising Foot Locker, Lady Foot Locker, Kids
Foot Locker, Footaction, and Champs Sports. Accordingly, the Company evaluated
the long-lived assets of those operations for impairment and recorded non-cash
impairment charges of $117 million primarily to write-down long-lived assets
such as store fixtures and leasehold improvements for 1,395 stores at the
Company’s U.S. store operations pursuant to SFAS No. 144. The Company recorded
an additional non-cash impairment charge of $7 million in 2007 as a result of
the decision to close 66 unproductive stores as part of a store closing program.
Exit costs related to 33 stores, which closed during 2007, comprising primarily
lease termination costs of $4 million, were recognized in accordance with SFAS
No. 146.

     Under SFAS No. 144, store closings may constitute discontinued operations
if migration of customers and cash flows are not expected. The Company has
concluded that no store closings have met the criteria for discontinued
operations treatment.

Impairment of Assets and Store
Closing Program

     In
connection with the review of goodwill and other intangibles, the Company
performed a store long-lived impairment test pursuant to SFAS No. 144 for its
Foot Locker, Kids Foot Locker, and Footaction divisions. Additionally, in
accordance with the Company’s store long-lived assets policy, the Company
determined that triggering events had occurred during the fourth quarter of 2008
at its Lady Foot Locker and Champs Sports divisions. Accordingly, the Company
evaluated the long-lived assets of those operations for impairment and recorded
non-cash impairment charges of $67 million primarily to write-down long-lived
assets such as store fixtures and leasehold improvements for 868 stores at the
Company’s U.S. store operations.

     During the year ended January 31, 2009, the Company closed 21
unproductive stores as part of the store closing program announced in 2007. Exit
costs of $5 million for the year ended January 31, 2009, comprising primarily
lease termination costs, were recognized in accordance with SFAS No. 146,
“Accounting for Costs Associated with Exit or Disposal Activities.”

     During 2007, the Company concluded that triggering events had occurred at
its U.S. retail store divisions, comprising Foot Locker, Lady Foot Locker, Kids
Foot Locker, Footaction, and Champs Sports. Accordingly, the Company evaluated
the long-lived assets of those operations for impairment and recorded non-cash
impairment charges of $117 million primarily to write-down long-lived assets
such as store fixtures and leasehold improvements for 1,395 stores at the
Company’s U.S. store operations pursuant to SFAS No. 144. The Company recorded
an additional non-cash impairment charge of $7 million in 2007 as a result of
the decision to close 66 unproductive stores as part of a store closing program.
Exit costs related to 33 stores, which closed during 2007, comprising primarily
lease termination costs of $4 million, were recognized in accordance with SFAS
No. 146.

     Under SFAS No. 144, store closings may constitute discontinued operations
if migration of customers and cash flows are not expected. The Company has
concluded that no store closings have met the criteria for discontinued
operations treatment.