Foot Locker (FL)

Interest Expense, Net

     Interest expense of $16 million decreased by 23.8 percent in 2008 compared to $21 million in 2007. The reduction in interest expense primarily relates to the repayment of the term loan in May 2008 and the purchases and retirements of $6 million and $5 million in 2008 and 2007, respectively, of the Company’s 8.50 percent debentures. The Company did not have any short-term borrowings for any of the periods presented. Interest rate swap agreements reduced interest expense in 2008 by approximately $2 million, while the cross currency swaps increased interest expense by $3 million. Interest income of $11 million declined from $20 million in 2007. Interest income is generated through the investment of cash equivalents and short-term investments. The decline in interest income reflects the lower interest income on cash, cash equivalents and short-term investments, which totaled $10 million in 2008 and $16 million in 2007. Additionally, the Company did not record accretion income related to the Northern Group note, which in the prior year totaled $2 million.

     Interest expense of $21 million decreased by 8.7 percent in 2007 as compared with $23 million in 2006. The reduction in interest expense primarily relates to the purchases and retirements of $5 million and $38 million in 2007 and 2006, respectively, of the Company’s 8.50 percent debentures. Interest rate swap agreements did not significantly affect interest expense in 2007. Interest income of $20 million remained unchanged from 2006. Interest income related to cash, cash equivalents and short-term investments was $16 million in 2007 and $14 million in 2006. Interest income on the Northern Group note amounted to $2 million in both 2007 and 2006. Income from the cross currency swaps totaled $1 million in 2007 as compared with $3 million in 2006.

Interest Expense,
Net

     Interest expense of $16 million decreased by 23.8 percent in 2008
compared to $21 million in 2007. The reduction in interest expense primarily
relates to the repayment of the term loan in May 2008 and the purchases and
retirements of $6 million and $5 million in 2008 and 2007, respectively, of the
Company’s 8.50 percent debentures. The Company did not have any short-term
borrowings for any of the periods presented. Interest rate swap agreements
reduced interest expense in 2008 by approximately $2 million, while the cross
currency swaps increased interest expense by $3 million. Interest income of $11
million declined from $20 million in 2007. Interest income is generated through
the investment of cash equivalents and short-term investments. The decline in
interest income reflects the lower interest income on cash, cash equivalents and
short-term investments, which totaled $10 million in 2008 and $16 million in
2007. Additionally, the Company did not record accretion income related to the
Northern Group note, which in the prior year totaled $2 million.

     Interest expense of $21 million decreased by 8.7 percent in 2007 as
compared with $23 million in 2006. The reduction in interest expense primarily
relates to the purchases and retirements of $5 million and $38 million in 2007
and 2006, respectively, of the Company’s 8.50 percent debentures. Interest rate
swap agreements did not significantly affect interest expense in 2007. Interest
income of $20 million remained unchanged from 2006. Interest income related to
cash, cash equivalents and short-term investments was $16 million in 2007 and
$14 million in 2006. Interest income on the Northern Group note amounted to $2
million in both 2007 and 2006. Income from the cross currency swaps totaled $1
million in 2007 as compared with $3 million in 2006.

Interest Expense,
Net

     Interest expense of $16 million decreased by 23.8 percent in 2008
compared to $21 million in 2007. The reduction in interest expense primarily
relates to the repayment of the term loan in May 2008 and the purchases and
retirements of $6 million and $5 million in 2008 and 2007, respectively, of the
Company’s 8.50 percent debentures. The Company did not have any short-term
borrowings for any of the periods presented. Interest rate swap agreements
reduced interest expense in 2008 by approximately $2 million, while the cross
currency swaps increased interest expense by $3 million. Interest income of $11
million declined from $20 million in 2007. Interest income is generated through
the investment of cash equivalents and short-term investments. The decline in
interest income reflects the lower interest income on cash, cash equivalents and
short-term investments, which totaled $10 million in 2008 and $16 million in
2007. Additionally, the Company did not record accretion income related to the
Northern Group note, which in the prior year totaled $2 million.

     Interest expense of $21 million decreased by 8.7 percent in 2007 as
compared with $23 million in 2006. The reduction in interest expense primarily
relates to the purchases and retirements of $5 million and $38 million in 2007
and 2006, respectively, of the Company’s 8.50 percent debentures. Interest rate
swap agreements did not significantly affect interest expense in 2007. Interest
income of $20 million remained unchanged from 2006. Interest income related to
cash, cash equivalents and short-term investments was $16 million in 2007 and
$14 million in 2006. Interest income on the Northern Group note amounted to $2
million in both 2007 and 2006. Income from the cross currency swaps totaled $1
million in 2007 as compared with $3 million in 2006.

Interest Expense, Net

     Interest expense of $21 million decreased by 8.7 percent in 2007 compared to $23 million in 2006. The reduction in interest expense primarily relates to the purchases and retirements of $5 million and $38 million in 2007 and 2006, respectively, of the Company’s 8.50 percent debentures. Interest rate swap agreements did not significantly affect interest expense in 2007.

     Interest income of $20 million remained unchanged from 2006. Interest income is generated through the investment of cash equivalents, short-term investments, the accretion of the Northern Group note to its face value and accrual of interest on the outstanding principal, as well as the effect of the Company’s cross currency swaps. Interest income related to cash, cash equivalents and short-term investments was $16 million in 2007 and $14 million in 2006. Interest income on the Northern Group note amounted to $2 million in both 2007 and 2006. The cross currency swaps income totaled $1 million in 2007 as compared with $3 million in 2006.

     Interest expense of $23 million in 2006 remained unchanged from 2005. Interest rate swap agreements did not significantly affect interest expense in 2006.

     The increase in interest income of $7 million in 2006 as compared with 2005 was primarily related to increased interest income earned on cash, cash equivalents, and short-term investments. Interest income related to cash, cash equivalents and short-term investments was $14 million in 2006 and $11 million in 2005. Interest income on the Northern Group note amounted to $2 million in both 2006 and 2005. Also included in interest income is the effect of the Company’s cross currency swaps, which totaled $3 million in 2006 and was not significant in 2005.

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Interest Expense,
Net

     Interest expense of $21 million decreased by 8.7 percent in 2007 compared
to $23 million in 2006. The reduction in interest expense primarily relates to
the purchases and retirements of $5 million and $38 million in 2007 and 2006,
respectively, of the Company’s 8.50 percent debentures. Interest rate swap
agreements did not significantly affect interest expense in 2007.

     Interest income of $20 million remained unchanged from 2006. Interest
income is generated through the investment of cash equivalents, short-term
investments, the accretion of the Northern Group note to its face value and
accrual of interest on the outstanding principal, as well as the effect of the
Company’s cross currency swaps. Interest income related to cash, cash
equivalents and short-term investments was $16 million in 2007 and $14 million
in 2006. Interest income on the Northern Group note amounted to $2 million in
both 2007 and 2006. The cross currency swaps income totaled $1 million in 2007
as compared with $3 million in 2006.

     Interest expense of $23 million in 2006 remained unchanged from 2005.
Interest rate swap agreements did not significantly affect interest expense in
2006.

     The
increase in interest income of $7 million in 2006 as compared with 2005 was
primarily related to increased interest income earned on cash, cash equivalents,
and short-term investments. Interest income related to cash, cash equivalents
and short-term investments was $14 million in 2006 and $11 million in 2005.
Interest income on the Northern Group note amounted to $2 million in both 2006
and 2005. Also included in interest income is the effect of the Company’s cross
currency swaps, which totaled $3 million in 2006 and was not significant in
2005.

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