Foot Locker (FL)

Net Income

          Net income was $65 million, or $0.42 per diluted share, for the thirteen weeks ended October 28, 2006 and was $66 million, or $0.42 per diluted share, for the thirteen weeks ended October 29, 2005.  Net income of $138 million, or $0.88 per diluted share, for the thirty-nine weeks ended October 28, 2006 decreased by $0.19 per diluted share from $168 million, or $1.07 per diluted share, for the thirty-nine weeks ended October 29, 2005.  The thirty-nine weeks ended October 28, 2006 reflects a non-cash impairment charge of $17 million ($12 million after-tax), or $0.08 per diluted share, recorded in the second quarter to write-down the value of long-lived assets of underperforming stores in the Company’s European operations.

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Net Income

          Net income of $14 million, or $0.09 per diluted share, for the thirteen weeks ended July 29, 2006 decreased by $0.19 per diluted share from $44 million, or $0.28 per diluted share, for the thirteen weeks ended July 30, 2005.  The thirteen weeks ended July 29, 2006 reflects a non-cash impairment charge of $17 million ($12 million after-tax), or $0.08 per diluted share, to write-down the value of long-lived assets of underperforming stores in the Company’s European operations. Net income of $73 million, or $0.47 per diluted share, for the twenty-six weeks ended July 29, 2006 decreased by $0.18 per diluted share from $102 million, or $0.65 per diluted share, for the twenty-six weeks ended July 30, 2005.  Excluding the impairment charge, net income declined by $17 million or $0.10 per diluted share. During the first quarter of 2006, the Company adopted SFAS No. 123(R) and recorded a cumulative effect of a change in accounting of approximately $1 million, or $0.01 per diluted share, to reflect estimated forfeitures for prior periods related to the Company’s nonvested restricted stock awards. Prior to the adoption of SFAS No. 123(R), the Company recognized compensation cost of restricted stock awards over the vesting term based upon the fair value of the Company’s common stock at the date of grant.  Forfeitures were recorded as they occurred, however, under SFAS No. 123(R) an estimate of forfeitures is required to be included over the vesting term.

Net Income

          Net income of $59 million, or $0.38 per diluted share, for the thirteen weeks ended April 29, 2006 improved by $0.01 per diluted share from $58 million, or $0.37 per diluted share, for the thirteen weeks ended April 30, 2005.  During the first quarter of 2006, the Company adopted SFAS No. 123(R) and recorded a cumulative effect of change in accounting of approximately $1 million, or $0.01 per diluted share, to reflect estimated forfeitures for prior periods related to the Company’s nonvested restricted stock awards. Prior to the adoption of SFAS No. 123(R), the Company recognized compensation cost of restricted stock awards over the vesting term based upon the fair value of the Company’s common stock at the date of grant.  Forfeitures were recorded as they occurred, however, under SFAS No. 123(R) an estimate of forfeitures is required to be included over the vesting term.