Foot Locker (FL)

16. Long-Term Debt

     During 2008, simultaneously with entering the Credit Agreement, the Company repaid the $88 million balance that was outstanding on its term loan, which was scheduled to mature in May 2009.

     During 2007, the Company purchased and retired $5 million of its 8.50 percent debentures payable in 2022. During 2008, the Company purchased and retired an additional $6 million, bringing the outstanding amount to $123 million as of January 31, 2009. The Company has various interest rate swap agreements, which effectively convert $100 million of the 8.50 percent debentures from a fixed interest rate to a variable interest rate, which are collectively classified as a fair value hedge. The net fair value of the interest rate swaps at January 31, 2009 and February 2, 2008 was an asset of $19 million and $4 million, respectively, which was included in other assets. The carrying value of the 8.50 percent debentures was increased by the corresponding amounts.

     Following is a summary of long-term debt:

     Interest expense related to long-term debt, including the effect of the interest rate swaps and the amortization of the associated debt issuance costs, was $9 million in 2008, $18 million in 2007 and $20 million in 2006. The effect of the interest rate swaps for the year ended January 31, 2009 was a benefit of $2 million and was not significant for the years ended February 2, 2008 and February 3, 2007.

16. Long-Term
Debt

     During 2008, simultaneously with entering the Credit Agreement, the
Company repaid the $88 million balance that was outstanding on its term loan,
which was scheduled to mature in May 2009.

     During 2007, the Company purchased and retired $5 million of its 8.50
percent debentures payable in 2022. During 2008, the Company purchased and
retired an additional $6 million, bringing the outstanding amount to $123
million as of January 31, 2009. The Company has various interest rate swap
agreements, which effectively convert $100 million of the 8.50 percent
debentures from a fixed interest rate to a variable interest rate, which are
collectively classified as a fair value hedge. The net fair value of the
interest rate swaps at January 31, 2009 and February 2, 2008 was an asset of $19
million and $4 million, respectively, which was included in other assets. The
carrying value of the 8.50 percent debentures was increased by the corresponding
amounts.

     Following is a summary of long-term
debt:

     Interest expense related to long-term debt, including the effect of the
interest rate swaps and the amortization of the associated debt issuance costs,
was $9 million in 2008, $18 million in 2007 and $20 million in 2006. The effect
of the interest rate swaps for the year ended January 31, 2009 was a benefit of
$2 million and was not significant for the years ended February 2, 2008 and
February 3, 2007.

16. Long-Term
Debt

     During 2008, simultaneously with entering the Credit Agreement, the
Company repaid the $88 million balance that was outstanding on its term loan,
which was scheduled to mature in May 2009.

     During 2007, the Company purchased and retired $5 million of its 8.50
percent debentures payable in 2022. During 2008, the Company purchased and
retired an additional $6 million, bringing the outstanding amount to $123
million as of January 31, 2009. The Company has various interest rate swap
agreements, which effectively convert $100 million of the 8.50 percent
debentures from a fixed interest rate to a variable interest rate, which are
collectively classified as a fair value hedge. The net fair value of the
interest rate swaps at January 31, 2009 and February 2, 2008 was an asset of $19
million and $4 million, respectively, which was included in other assets. The
carrying value of the 8.50 percent debentures was increased by the corresponding
amounts.

     Following is a summary of long-term
debt:

     Interest expense related to long-term debt, including the effect of the
interest rate swaps and the amortization of the associated debt issuance costs,
was $9 million in 2008, $18 million in 2007 and $20 million in 2006. The effect
of the interest rate swaps for the year ended January 31, 2009 was a benefit of
$2 million and was not significant for the years ended February 2, 2008 and
February 3, 2007.