Foot Locker (FL)

Vendor Reimbursements

     In the normal course of business, the Company receives allowances from its vendors for markdowns taken. Vendor allowances are recognized as a reduction in cost of sales in the period in which the markdowns are taken. Vendor allowances contributed 30 basis points to the 2008 gross margin rate. The Company also has volume-related agreements with certain vendors, under which it receives rebates based on fixed percentages of cost purchases. These volume-related rebates are recorded in cost of sales when the product is sold and they contributed 10 basis points to the 2008 gross margin rate.

     The Company receives support from some of its vendors in the form of reimbursements for cooperative advertising and catalog costs for the launch and promotion of certain products. The reimbursements are agreed upon with vendors for specific advertising campaigns and catalogs. Cooperative income, to the extent that it reimburses specific, incremental and identifiable costs incurred to date, is recorded in SG&A in the same period as the associated expenses are incurred. Reimbursements received that are in excess of specific, incremental and identifiable costs incurred to date are recognized as a reduction to the cost of merchandise and are reflected in cost of sales as the merchandise is sold. Cooperative reimbursements amounted to approximately 38 percent of total advertising costs in 2008 and approximately 12 percent of catalog costs in 2008.

Vendor
Reimbursements

     In
the normal course of business, the Company receives allowances from its vendors
for markdowns taken. Vendor allowances are recognized as a reduction in cost of
sales in the period in which the markdowns are taken. Vendor
allowances contributed 30 basis points to the 2008 gross margin rate.
The Company also has volume-related agreements with certain vendors, under which
it receives rebates based on fixed percentages of cost purchases. These
volume-related rebates are recorded in cost of sales when the product is sold
and they contributed 10 basis points to the 2008 gross margin rate.

     The
Company receives support from some of its vendors in the form of reimbursements
for cooperative advertising and catalog costs for the launch and promotion of
certain products. The reimbursements are agreed upon with vendors for specific
advertising campaigns and catalogs. Cooperative income, to the extent that it
reimburses specific, incremental and identifiable costs incurred to date, is
recorded in SG&A in the same period as the associated expenses are incurred.
Reimbursements received that are in excess of specific, incremental and
identifiable costs incurred to date are recognized as a reduction to the cost of
merchandise and are reflected in cost of sales as the merchandise is sold.
Cooperative reimbursements amounted to approximately 38 percent of total
advertising costs in 2008 and approximately 12 percent of catalog costs in
2008.

Vendor
Reimbursements

     In
the normal course of business, the Company receives allowances from its vendors
for markdowns taken. Vendor allowances are recognized as a reduction in cost of
sales in the period in which the markdowns are taken. Vendor
allowances contributed 30 basis points to the 2008 gross margin rate.
The Company also has volume-related agreements with certain vendors, under which
it receives rebates based on fixed percentages of cost purchases. These
volume-related rebates are recorded in cost of sales when the product is sold
and they contributed 10 basis points to the 2008 gross margin rate.

     The
Company receives support from some of its vendors in the form of reimbursements
for cooperative advertising and catalog costs for the launch and promotion of
certain products. The reimbursements are agreed upon with vendors for specific
advertising campaigns and catalogs. Cooperative income, to the extent that it
reimburses specific, incremental and identifiable costs incurred to date, is
recorded in SG&A in the same period as the associated expenses are incurred.
Reimbursements received that are in excess of specific, incremental and
identifiable costs incurred to date are recognized as a reduction to the cost of
merchandise and are reflected in cost of sales as the merchandise is sold.
Cooperative reimbursements amounted to approximately 38 percent of total
advertising costs in 2008 and approximately 12 percent of catalog costs in
2008.

Vendor Reimbursements

     In the normal course of business, the Company receives allowances from its vendors for markdowns taken. Vendor allowances are recognized as a reduction in cost of sales in the period in which the markdowns are taken. The effect of vendor allowances negatively effected gross margin in 2007, as a percentage of sales, of 60 basis points as compared with 2006. The Company also has volume-related agreements with certain vendors, under which it receives rebates based on fixed percentages of cost purchases. These volume-related rebates are recorded in cost of sales when the product is sold and they contributed 10 basis points to the 2007 gross margin rate.

     The Company receives support from some of its vendors in the form of reimbursements for cooperative advertising and catalog costs for the launch and promotion of certain products. The reimbursements are agreed upon with vendors for specific advertising campaigns and catalogs. Cooperative income, to the extent that it reimburses specific, incremental and identifiable costs incurred to date, is recorded in SG&A in the same period as the associated expenses are incurred. Reimbursements received that are in excess of specific, incremental and identifiable costs incurred to date are recognized as a reduction to the cost of merchandise and are reflected in cost of sales as the merchandise is sold. Cooperative reimbursements amounted to approximately 33 percent of total advertising costs in 2007 and approximately 11 percent of catalog costs in 2007.

Vendor
Reimbursements

     In
the normal course of business, the Company receives allowances from its vendors
for markdowns taken. Vendor allowances are recognized as a reduction in cost of
sales in the period in which the markdowns are taken. The effect of vendor
allowances negatively effected gross margin in 2007, as a percentage of sales,
of 60 basis points as compared with 2006. The Company also has volume-related
agreements with certain vendors, under which it receives rebates based on fixed
percentages of cost purchases. These volume-related rebates are recorded in cost
of sales when the product is sold and they contributed 10 basis points to the
2007 gross margin rate.

     The
Company receives support from some of its vendors in the form of reimbursements
for cooperative advertising and catalog costs for the launch and promotion of
certain products. The reimbursements are agreed upon with vendors for specific
advertising campaigns and catalogs. Cooperative income, to the extent that it
reimburses specific, incremental and identifiable costs incurred to date, is
recorded in SG&A in the same period as the associated expenses are incurred.
Reimbursements received that are in excess of specific, incremental and
identifiable costs incurred to date are recognized as a reduction to the cost of
merchandise and are reflected in cost of sales as the merchandise is sold.
Cooperative reimbursements amounted to approximately 33 percent of total
advertising costs in 2007 and approximately 11 percent of catalog costs in
2007.

Vendor Reimbursements

     In the normal course of business, the Company receives allowances from its vendors for markdowns taken. Vendor allowances are recognized as a reduction in cost of sales in the period in which the markdowns are taken. The effect of vendor allowances was an improvement in gross margin in 2006, as a percentage of sales, of 20 basis points as compared with 2005. The Company also has volume-related agreements with certain vendors, under which it receives rebates based on fixed percentages of cost purchases. These volume-related rebates are recorded in cost of sales when the product is sold and they contributed 10 basis points to the 2006 gross margin rate.

     The Company receives support from some of its vendors in the form of reimbursements for cooperative advertising and catalog costs for the launch and promotion of certain products. The reimbursements are agreed upon with vendors for specific advertising campaigns and catalogs. Cooperative income, to the extent that it reimburses specific, incremental and identifiable costs incurred to date, is recorded in SG&A in the same period as the associated expenses are incurred. Reimbursements received that are in excess of specific, incremental and identifiable costs incurred to date are recognized as a reduction to the cost of merchandise and are reflected in cost of sales as the merchandise is sold. Cooperative reimbursements amounted to approximately 27 percent of total advertising costs in 2006 and approximately 9 percent of catalog costs in 2006.

Vendor Reimbursements