Foot Locker (FL)

Restricted Shares and Units

     Restricted shares of the Company’s common stock may be awarded to certain officers and key employees of the Company. For executives outside of the United States, the Company issues restricted stock units. Each restricted stock unit represents the right to receive one share of the Company’s common stock provided that the vesting conditions are satisfied. As of November 1, 2008, 87,500 restricted stock units were outstanding. Compensation expense is recognized using the fair market value at the date of grant and is amortized over the vesting period, provided the recipient continues to be employed by the Company. These awards fully vest after the passage of time, generally three years. Restricted stock is considered outstanding at the time of grant, as the holders of restricted stock are entitled to receive dividends and have voting rights.

Restricted shares and units activity for the thirty-nine weeks ended November 1, 2008 and November 3, 2007 is summarized as follows:

     The weighted-average grant-date fair value per share was $11.86 and $22.95 for the thirty-nine weeks ended November 1, 2008 and November 3, 2007, respectively. The total value of awards for which restrictions lapsed during the thirty-nine weeks ended November 1, 2008 and November 3, 2007 was $2.1 million and $6.3 million, respectively. As of November 1, 2008, there was $7.6 million of total unrecognized compensation cost, related to nonvested restricted stock awards. The Company recorded compensation expense related to restricted shares, net of forfeitures, of $3.4 million and $4.0 million in the thirty-nine weeks ended November 1, 2008 and November 3, 2007, respectively.

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Restricted Shares and Units

     Restricted shares of the Company’s common stock may be awarded to officers and key employees of the Company. For executives outside of the United States, the Company issues restricted stock units. Each restricted stock unit represents the right to receive one share of the Company’s common stock, provided that the vesting conditions are satisfied. In 2007, 2006 and 2005, there were 90,000, 20,000 and 50,870 restricted stock units outstanding, respectively. Compensation expense is recognized using the fair market value at the date of grant and is amortized over the vesting period, provided the recipient continues to be employed by the Company. These awards fully vest after the passage of time, generally three years. Restricted stock is considered outstanding at the time of grant, as the holders of restricted stock are entitled to receive dividends and have voting rights.

     Restricted shares and units activity for the years-ended February 2, 2008, February 3, 2007, and January 28, 2006 is summarized as follows:

     The weighted average grant-date fair value per share was $22.95, $24.08 and $26.55 for 2007, 2006 and 2005, respectively. The total value of awards for which restrictions lapsed during the year-ended February 2, 2008, February 3, 2007 and January 28, 2006 was $7.3 million, $6.7 million and $4.0 million, respectively. As of February 2, 2008, there was $9.8 million of total unrecognized compensation cost, related to nonvested restricted stock awards. The Company recorded compensation expense related to restricted shares, net of forfeitures, of $5.6 million in 2007, $4.0 million in 2006 and $6.1 million in 2005.

Restricted Shares and
Units

     Restricted shares of the Company’s common stock may be awarded to
officers and key employees of the Company. For executives outside of the United
States, the Company issues restricted stock units. Each restricted stock unit
represents the right to receive one share of the Company’s common stock,
provided that the vesting conditions are satisfied. In 2007, 2006 and 2005,
there were 90,000, 20,000 and 50,870 restricted stock units outstanding,
respectively. Compensation expense is recognized using the fair market value at
the date of grant and is amortized over the vesting period, provided the
recipient continues to be employed by the Company. These awards fully vest after
the passage of time, generally three years. Restricted stock is considered
outstanding at the time of grant, as the holders of restricted stock are
entitled to receive dividends and have voting rights.

     Restricted shares and units activity for the years-ended February 2,
2008, February 3, 2007, and January 28, 2006 is summarized as
follows:

     The
weighted average grant-date fair value per share was $22.95, $24.08 and $26.55
for 2007, 2006 and 2005, respectively. The total value of awards for which
restrictions lapsed during the year-ended February 2, 2008, February 3, 2007 and
January 28, 2006 was $7.3 million, $6.7 million and $4.0 million, respectively.
As of February 2, 2008, there was $9.8 million of total unrecognized
compensation cost, related to nonvested restricted stock awards. The Company
recorded compensation expense related to restricted shares, net of forfeitures,
of $5.6 million in 2007, $4.0 million in 2006 and $6.1 million in
2005.