Foot Locker (FL)

Selling, General and Administrative

          Selling, general and administrative expenses (“SG&A”) of $284 million increased by $4 million, or 1.4 percent, in the third quarter of 2006 as compared with the corresponding prior-year period.  SG&A of $840 million increased by $12 million, or 1.4 percent, for the thirty-nine weeks ended October 28, 2006 as compared with the corresponding prior-year period.    SG&A, as a percentage of sales, was unchanged at 19.9 percent for the thirteen weeks ended October 28, 2006 as compared with the corresponding prior-year period.  SG&A, as a percentage of sales, increased to 20.5 percent for the thirty-nine weeks ended October 28, 2006 as compared with 20.2 percent in the corresponding prior-year period. Excluding the effect of foreign currency fluctuations, SG&A increased $1 million and $11 million for the thirteen and thirty-nine weeks ended October 28, 2006, respectively as compared with the corresponding prior-year periods. 

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Selling, General and Administrative

          Selling, general and administrative expenses (“SG&A”) of $273 million increased by $8 million, or 3.0 percent, in the second quarter of 2006 as compared with the corresponding prior-year period.  SG&A of $556 million increased by $8 million, or 1.5 percent, in the first half of 2006 as compared with the corresponding prior-year period.    SG&A, as a percentage of sales, increased to 20.9 percent for the thirteen weeks ended July 29, 2006 as compared with 20.3 percent in the corresponding prior-year period.  SG&A, as a percentage of sales, increased to 20.8 percent for the twenty-six weeks ended July 29, 2006 as compared with 20.4 percent in the corresponding prior-year period. Excluding the effect of foreign currency fluctuations, SG&A increased $5 million and $10 million for the thirteen and twenty-six weeks ended July 29, 2006, respectively as compared with the corresponding prior year periods.  For the thirteen and twenty-six weeks ended July 29, 2006, SG&A increased primarily as a result of incremental personnel costs, including the adoption of SFAS No. 123(R) as discussed above.

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Selling, General and Administrative

          Selling, general and administrative expenses (“SG&A”) of $283 million remained flat in the first quarter of 2006 as compared with the corresponding prior-year period.  SG&A, as a percentage of sales, increased to 20.7 percent for the thirteen weeks ended April 29, 2006 as compared with 20.6 percent in the corresponding prior-year period reflecting the decline in sales, particularly in our European operations.  Excluding the effect of foreign currency fluctuations, SG&A increased by $5 million for the thirteen weeks ended April 29, 2006, as compared with the corresponding prior year period. Corporate expense increased $3 million as compared with the corresponding prior period, which includes the adoption of SFAS No. 123(R). Net periodic pension cost declined by $3 million primarily as a result of  contributions made to the U.S. and Canadian pension plans.  During the first quarter of 2005, the Company donated a total of 82,500 pairs of athletic footwear with a cost of approximately $2 million to the Save the Children Foundation.