FOOT
LOCKER, INC.
|
||
(Exact name of registrant as
specified in its charter)
|
||
New
York
|
13-3513936
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
|
112 W. 34thStreet, New York, New
York
|
10120
|
|
(Address of principal executive
offices)
|
(Zip
Code)
|
Large accelerated filer x
|
Accelerated filer o
|
Non-accelerated filer o
|
Smaller reporting company o
|
Page No.
|
||||||
Part
I.
|
Financial
Information
|
|||||
Item
1.
|
Financial
Statements
|
|||||
Condensed
Consolidated Balance Sheets
|
3
|
|||||
Condensed
Consolidated Statements of Operations
|
4
|
|||||
Condensed
Consolidated Statements of Comprehensive Income
|
5
|
|||||
Condensed
Consolidated Statements of Cash Flows
|
6
|
|||||
Notes
to Condensed Consolidated Financial Statements
|
7
|
|||||
Item
2.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
14
|
||||
Item
4.
|
Controls
and Procedures
|
18
|
||||
Part
II.
|
Other
Information
|
|||||
Item
1.
|
Legal
Proceedings
|
19
|
||||
Item
1A.
|
Risk
Factors
|
19
|
||||
Item
2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
19
|
||||
Item
6.
|
Exhibits
|
19
|
||||
Signature
|
20
|
|||||
Index
to Exhibits
|
21
|
May 2,
2009
|
May 3,
2008
|
January 31,
2009
|
||||||||||
|
(Unaudited)
|
|
(Unaudited)
|
|
*
|
|||||||
ASSETS
|
||||||||||||
Current
assets:
|
||||||||||||
Cash
and cash equivalents
|
$
|
408
|
$
|
497
|
$
|
385
|
||||||
Short-term
investments
|
23
|
5
|
23
|
|||||||||
Merchandise
inventories
|
1,237
|
1,391
|
1,120
|
|||||||||
Other
current assets
|
212
|
260
|
236
|
|||||||||
1,880
|
2,153
|
1,764
|
||||||||||
Property
and equipment, net
|
429
|
526
|
432
|
|||||||||
Deferred
taxes
|
353
|
239
|
358
|
|||||||||
Goodwill
|
144
|
267
|
144
|
|||||||||
Other
intangibles and assets
|
163
|
150
|
179
|
|||||||||
$
|
2,969
|
$
|
3,335
|
$
|
2,877
|
|||||||
LIABILITIES
AND SHAREHOLDERS’ EQUITY
|
||||||||||||
Current
liabilities:
|
||||||||||||
Accounts
payable
|
$
|
292
|
$
|
335
|
$
|
187
|
||||||
Accrued
expenses and other current liabilities
|
201
|
263
|
231
|
|||||||||
493
|
598
|
418
|
||||||||||
Long-term
debt
|
142
|
219
|
142
|
|||||||||
Other
liabilities
|
383
|
255
|
393
|
|||||||||
1,018
|
1,072
|
953
|
||||||||||
Shareholders’
equity:
|
||||||||||||
Common
stock and paid-in capital: 160,400,218, 159,343,434 and 159,598,233
shares, respectively
|
|
|
697
|
|
|
681
|
|
|
|
691
|
|
|
Retained
earnings
|
1,589
|
1,734
|
1,581
|
|||||||||
Accumulated
other comprehensive loss
|
(232
|
)
|
(52
|
)
|
(246
|
)
|
||||||
Less:
Treasury stock at cost: 4,709,020, 4,564,432 and 4,680,533 shares,
respectively
|
(103
|
)
|
(100
|
)
|
(102
|
)
|
||||||
Total
shareholders’ equity
|
1,951
|
2,263
|
1,924
|
|||||||||
$
|
2,969
|
$
|
3,335
|
$
|
2,877
|
Thirteen weeks ended
|
||||||||
May 2,
|
May 3,
|
|||||||
2009
|
2008
|
|||||||
Sales
|
$ | 1,216 | $ | 1,309 | ||||
Costs
and Expenses
|
||||||||
Cost
of sales
|
860 | 943 | ||||||
Selling,
general and administrative expenses
|
278 | 299 | ||||||
Depreciation
and amortization
|
28 | 32 | ||||||
Impairment
charge and store closing program costs
|
— | 19 | ||||||
Interest
expense, net
|
2 | 1 | ||||||
Other
income
|
(1 | ) | — | |||||
1,167 | 1,294 | |||||||
Income
before income taxes
|
49 | 15 | ||||||
Income
tax expense
|
18 | 12 | ||||||
Net
income
|
$ | 31 | $ | 3 | ||||
Basic
earnings per share:
|
||||||||
Net
income
|
$ | 0.20 | $ | 0.02 | ||||
Weighted-average
common shares outstanding
|
155.3 | 153.8 | ||||||
Diluted
earnings per share:
|
||||||||
Net
income
|
$ | 0.20 | $ | 0.02 | ||||
Weighted-average
common shares assuming dilution
|
155.5 | 155.0 |
Thirteen weeks ended
|
||||||||
May 2,
|
May 3,
|
|||||||
2009
|
2008
|
|||||||
Net
income
|
$ | 31 | $ | 3 | ||||
Other
comprehensive income (expense), net of tax
|
||||||||
Foreign
currency translation adjustments arising during the period
|
15 | 18 | ||||||
Pension
and postretirement plan adjustments
|
1 | — | ||||||
Change
in fair value of derivatives
|
(1 | ) | — | |||||
Comprehensive
income
|
$ | 46 | $ | 21 |
Thirteen weeks ended
|
||||||||
May 2,
|
May 3,
|
|||||||
|
2009
|
|
2008
|
|||||
From
Operating Activities:
|
||||||||
Net
income
|
$
|
31
|
$
|
3
|
||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||
Non-cash
impairment charge
|
—
|
15
|
||||||
Depreciation
and amortization
|
28
|
32
|
||||||
Share-based
compensation expense
|
2
|
3
|
||||||
Change
in assets and liabilities:
|
||||||||
Merchandise
inventories
|
(110
|
)
|
(99
|
)
|
||||
Accounts
payable and other accruals
|
73
|
101
|
||||||
Qualified
pension plan contributions
|
(11
|
)
|
(6
|
)
|
||||
Income
tax payable
|
—
|
(8
|
)
|
|||||
Gain
on termination of interest rate swaps
|
19
|
—
|
||||||
Other,
net
|
35
|
32
|
||||||
Net
cash provided by operating activities
|
67
|
73
|
||||||
From
Investing Activities:
|
||||||||
Capital
expenditures
|
(26
|
)
|
(40
|
)
|
||||
Net
cash used in investing activities
|
(26
|
)
|
(40
|
)
|
||||
From
Financing Activities:
|
||||||||
Dividends
paid
|
(23
|
)
|
(23
|
)
|
||||
Net
cash used in financing activities
|
(23
|
)
|
(23
|
)
|
||||
Effect
of exchange rate fluctuations on Cash and Cash Equivalents
|
5
|
(1
|
)
|
|||||
Net
change in Cash and Cash Equivalents
|
23
|
9
|
||||||
Cash
and Cash Equivalents at beginning of year
|
385
|
488
|
||||||
Cash
and Cash Equivalents at end of interim period
|
$
|
408
|
$
|
497
|
||||
Cash
paid during the period:
|
||||||||
Interest
|
$
|
1
|
$
|
3
|
||||
Income
taxes
|
$
|
7
|
$
|
18
|
May 2,
|
May 3,
|
January 31,
|
||||||||
Goodwill
(in millions)
|
2009
|
2008
|
2009
|
|||||||
Athletic
Stores
|
$
|
17 |
$
|
187 |
$
|
17 | ||||
Direct-to-Customers
|
127 | 80 | 127 | |||||||
$
|
144 |
$
|
267 |
$
|
144 |
May
2, 2009
|
May
3, 2008
|
January
31, 2009
|
||||||||||||||||||||||||||||||||||
Gross
|
Accum.
|
Net
|
Gross
|
Accum.
|
Net
|
Gross
|
Accum.
|
Net
|
||||||||||||||||||||||||||||
(in
millions)
|
value
|
amort.
|
value
|
value
|
amort.
|
value
|
value
|
amort.
|
value
|
|||||||||||||||||||||||||||
Finite
life intangible assets:
|
||||||||||||||||||||||||||||||||||||
Lease
acquisition costs
|
$ | 175 | (128 | ) | 47 | $ | 206 | $ | (135 | ) | $ | 71 | $ | 173 | $ | (124 | ) | $ | 49 | |||||||||||||||||
Trademark
|
20 | (5 | ) | 15 | 21 | (4 | ) | 17 | 20 | (5 | ) | 15 | ||||||||||||||||||||||||
Loyalty
program
|
1 | (1 | ) | — | 1 | (1 | ) | — | 1 | (1 | ) | — | ||||||||||||||||||||||||
Favorable
leases
|
9 | (7 | ) | 2 | 10 | (7 | ) | 3 | 9 | (7 | ) | 2 | ||||||||||||||||||||||||
CCS
customer relationships
|
21 | (2 | ) | 19 | — | — | — | 21 | (1 | ) | 20 | |||||||||||||||||||||||||
Total
finite life intangible assets
|
$ | 226 | $ | (143 | ) | $ | 83 | $ | 238 | $ | (147 | ) | $ | 91 | $ | 224 | $ | (138 | ) | $ | 86 | |||||||||||||||
Intangible
assets not subject to amortization:
|
||||||||||||||||||||||||||||||||||||
Republic
of Ireland trademark
|
2 | — | 2 | $ | 3 | $ | — | $ | 3 | 2 | — | 2 | ||||||||||||||||||||||||
CCS
tradename
|
25 | — | 25 | — | — | — | 25 | — | 25 | |||||||||||||||||||||||||||
Total
indefinite life intangible assets
|
$ | 27 | — | 27 | $ | 3 | $ | — | $ | 3 | $ | 27 | $ | — | $ | 27 | ||||||||||||||||||||
Total
other intangible assets
|
$ | 253 | $ | (143 | ) | $ | 110 | $ | 241 | $ | (147 | ) | $ | 94 | $ | 251 | $ | (138 | ) | $ | 113 |
May 2, 2009
|
May 3, 2008
|
||||||||||
(in millions)
|
Balance Sheet
Caption
|
Fair Value
|
Balance Sheet
Caption
|
Fair Value
|
|||||||
Hedging
Instruments:
|
|||||||||||
Forward
contracts
|
Current
assets
|
$ | 1 |
Current
Assets
|
$ | 2 | |||||
Interest
rate swaps
|
Non
current assets
|
- |
Non
current assets
|
3 | |||||||
Net
investment hedges
|
Non
current liability
|
- |
Non
current liability
|
(39 | ) | ||||||
Total
|
$ | 1 | $ | (34 | ) | ||||||
Non
Hedging Instruments:
|
|||||||||||
Forward
contracts
|
Current
assets
|
$ | 1 |
Current
Assets
|
$ | 2 | |||||
European
cross currency swap
|
Non
current liability
|
(24 | ) |
Non
current liability
|
- | ||||||
Fuel
contracts
|
Non
current liability
|
- |
Non
current liability
|
- | |||||||
Total
|
$ | (23 | ) | $ | 2 |
(in millions)
|
|
May 2, 2009
|
|
May 3, 2008
|
|
January 31,
2009
|
||||||
Foreign
currency translation adjustments
|
$
|
25
|
$
|
111
|
$
|
10
|
||||||
Cash
flow hedge
|
1
|
1
|
2
|
|||||||||
Unrecognized
pension cost and postretirement benefit
|
(253
|
)
|
(162
|
)
|
(253
|
)
|
||||||
Unrealized
loss on available-for-sale securities
|
|
(5
|
)
|
(2
|
)
|
(5
|
)
|
|||||
$
|
(232
|
)
|
$
|
(52
|
)
|
$
|
(246
|
)
|
Thirteen weeks ended
|
|||||
(in millions)
|
|
May 2, 2009
|
|
May 3, 2008
|
|
Weighted-average
common shares outstanding
|
155.3
|
153.8
|
|||
Effect of
Dilution:
|
|||||
Stock
options and awards
|
0.2
|
1.2
|
|||
Weighted-average
common shares assuming dilution
|
155.5
|
155.0
|
Thirteen weeks ended
|
||||||||
(in millions)
|
May 2, 2009
|
May 3, 2008
|
||||||
Athletic
Stores
|
$ | 1,118 | $ | 1,217 | ||||
Direct-to-Customers
|
98 | 92 | ||||||
Total
sales
|
$ | 1,216 | $ | 1,309 |
Thirteen weeks ended
|
||||||||
(in millions)
|
May 2, 2009
|
May 3, 2008
|
||||||
Athletic
Stores (1)
|
$ | 61 | $ | 40 | ||||
Direct-to-Customers
|
8 | 10 | ||||||
Division
profit
|
69 | 50 | ||||||
Corporate
expense, net (2)
|
19 | 34 | ||||||
Operating
profit
|
50 | 16 | ||||||
Other
income (3)
|
(1 | ) | — | |||||
Interest
expense, net
|
2 | 1 | ||||||
Income
before income taxes
|
$ | 49 | $ | 15 |
(1)
|
Included
in the results for the thirteen weeks ended May 3, 2008 are store closing
costs of $4 million which primarily represent lease termination
costs.
|
(2)
|
Included
in corporate expense for the thirteen weeks ended May 3, 2008 is a $15
million impairment charge on the Northern Group note
receivable.
|
(3)
|
Other
income for the thirteen weeks ended May 2, 2009 is primarily comprised of
changes in fair value, realized gains and premiums paid on foreign
currency option contracts and royalty
income.
|
Pension Benefits
|
Postretirement Benefits
|
|||||||||||||||
(in millions)
|
|
May 2, 2009
|
|
May 3, 2008
|
|
May 2, 2009
|
|
May 3, 2008
|
||||||||
Service
cost
|
$
|
3
|
$
|
2
|
$
|
—
|
$
|
—
|
||||||||
Interest
cost
|
9
|
9
|
—
|
—
|
||||||||||||
Expected
return on plan assets
|
(10
|
)
|
(13
|
)
|
—
|
—
|
||||||||||
Amortization
of unrecognized prior service cost
|
—
|
—
|
—
|
—
|
||||||||||||
Amortization
of net loss (gain)
|
3
|
3
|
(2
|
)
|
(2
|
)
|
||||||||||
Net
benefit cost (income)
|
$
|
5
|
$
|
1
|
$
|
(2
|
)
|
$
|
(2
|
)
|
Stock Option Plans
|
Stock Purchase Plan
|
|||||||||||||
May 2,
2009
|
May 3,
2008
|
|
May 2,
2009
|
|
May 3,
2008
|
|||||||||
Weighted-average
risk free rate of interest
|
1.72
|
%
|
2.43
|
%
|
2.00
|
%
|
5.00
|
%
|
||||||
Expected
volatility
|
53
|
%
|
37
|
%
|
39
|
%
|
22
|
%
|
||||||
Weighted-average
expected award life
|
4.8
years
|
4.6
years
|
1.0
year
|
1.0
year
|
||||||||||
Dividend
yield
|
6.0
|
%
|
5.1
|
%
|
4.1
|
%
|
2.3
|
%
|
||||||
Weighted-average
fair value
|
$
|
2.85
|
$
|
2.47
|
$
|
3.11
|
$
|
4.18
|
Weighted-
|
Weighted-
|
|||||||||||
Average
|
Average
|
|||||||||||
(in thousands, except price per share)
|
Shares
|
Term
|
Exercise Price
|
|||||||||
Options
outstanding at the beginning of the year
|
6,080 | $ | 18.64 | |||||||||
Granted
|
868 | 9.93 | ||||||||||
Exercised
|
(28 | ) | 4.53 | |||||||||
Expired
or cancelled
|
(49 | ) | 21.34 | |||||||||
Options
outstanding at May 2, 2009
|
6,871 | 5.42 | $ | 17.58 | ||||||||
Options
exercisable at May 2, 2009
|
5,342 | 4.31 | $ | 19.02 | ||||||||
Options
available for future grant at May 2, 2009
|
3,461 |
Options Outstanding
|
Options Exercisable
|
|||||||||||||||||||||||||
Weighted-
|
||||||||||||||||||||||||||
Average
|
Weighted-
|
Weighted-
|
||||||||||||||||||||||||
Number
|
Remaining
|
Average
|
Number
|
Average
|
||||||||||||||||||||||
Range of Exercise Prices
|
Outstanding
|
Contractual Life
|
Exercise Price
|
Exercisable
|
Exercise Price
|
|||||||||||||||||||||
(in thousands, except price per share)
|
||||||||||||||||||||||||||
$
|
7.19 | $ | 10.25 | 1,436 | 7.21 | $ | 9.98 | 561 | $ | 10.05 | ||||||||||||||||
$
|
10.31 | $ | 12.99 | 1,601 | 4.29 | $ | 11.92 | 1,241 | $ | 11.99 | ||||||||||||||||
$
|
13.34 | $ | 23.42 | 1,665 | 5.16 | $ | 18.96 | 1,402 | $ | 18.54 | ||||||||||||||||
$
|
23.59 | $ | 25.39 | 1,429 | 5.28 | $ | 24.71 | 1,399 | $ | 24.71 | ||||||||||||||||
$
|
25.46 | $ | 28.50 | 740 | 5.27 | $ | 27.74 | 739 | $ | 27.74 | ||||||||||||||||
$
|
7.19 | $ | 28.50 | 6,871 | 5.42 | $ | 17.58 | 5,342 | $ | 19.02 |
Weighted-
|
||||||||
average grant
|
||||||||
Number
of
|
grant date
fair value
|
|||||||
(in thousands, except price per share)
|
shares
|
per share
|
||||||
Nonvested
at January 31, 2009
|
1,268 | $ | 17.71 | |||||
Granted
|
868 | 9.93 | ||||||
Vested
|
(558 | ) | 19.37 | |||||
Expired
or Cancelled
|
(49 | ) | 21.34 | |||||
Nonvested
at May 2, 2009
|
1,529 | $ | 12.57 |
Number of Shares and Units
|
||||||||
(in thousands)
|
May 2, 2009
|
May 3, 2008
|
||||||
Outstanding
at beginning of period
|
844 | 810 | ||||||
Granted
|
565 | 223 | ||||||
Vested
|
(39 | ) | (59 | ) | ||||
Cancelled
or forfeited
|
— | — | ||||||
Outstanding
at end of period
|
1,370 | 974 | ||||||
Aggregate
value (in millions)
|
$ | 21.3 | $ | 20.0 | ||||
Weighted
average remaining contractual life
|
1.67
years
|
1.87
years
|
Level 1 –
|
Quoted
prices for identical instruments in active
markets.
|
Level
2 –
|
Quoted
prices for similar instruments in active markets; quoted prices for
identical or similar instruments in markets that are not active; and
model-derived valuations in which all significant inputs or significant
value-drivers are observable in active
markets.
|
Level 3
–
|
Model-derived
valuations in which one or more significant inputs or significant
value-drivers are unobservable.
|
(in
millions)
|
Level
1
|
Level
2
|
Level
3
|
||||||||||
Assets
|
|||||||||||||
Cash
equivalents
|
$ | 332 | $ | — | $ | — | |||||||
Short-term
investment
|
— | — | 23 | ||||||||||
Auction
rate security
|
— | 2 | — | ||||||||||
Forward
foreign exchange contracts
|
— | 3 | — | ||||||||||
Total
Assets
|
$ | 332 | $ | 5 | $ | 23 | |||||||
Liabilities
|
|||||||||||||
Forward
foreign exchange contracts
|
$ | — | $ | 1 | $ | — | |||||||
European
cross currency swap
|
— | 24 | — | ||||||||||
Total
Liabilities
|
$ | — | $ | 25 | $ | — |
Thirteen weeks ended
|
||||||||
(in millions)
|
May 2, 2009
|
May 3, 2008
|
||||||
Athletic
Stores
|
$ | 1,118 | $ | 1,217 | ||||
Direct-to-Customers
|
98 | 92 | ||||||
Total
sales
|
$ | 1,216 | $ | 1,309 |
|
Thirteen weeks ended
|
|||||||
(in millions)
|
May 2, 2009
|
May 3, 2008
|
||||||
Athletic
Stores
|
$ | 61 | $ | 40 | ||||
Direct-to-Customers
|
8 | 10 | ||||||
Division
profit
|
69 | 50 | ||||||
Corporate
expense, net
|
19 | 34 | ||||||
Operating
profit
|
50 | 16 | ||||||
Other
income
|
(1 | ) | — | |||||
Interest
expense, net
|
2 | 1 | ||||||
Income
before income taxes
|
$ | 49 | $ | 15 |
|
Thirteen weeks ended
|
|||||||
May 2,
|
May 3,
|
|||||||
(in
millions)
|
2009
|
2008
|
||||||
Interest
expense
|
$ | 3 | $ | 5 | ||||
Interest
income
|
(1 | ) | (4 | ) | ||||
Interest
expense, net
|
$ | 2 | $ | 1 |
|
(a)
|
|
Exhibits
|
The
exhibits that are in this report immediately follow the
index.
|
FOOT
LOCKER, INC.
|
|
Date:
June 10, 2009
|
(Company)
|
/s/
Robert W. McHugh
|
|
ROBERT
W. MCHUGH
|
|
Executive
Vice President and Chief Financial
Officer
|
Exhibit No. in
|
|
|
Item 601
|
Description
|
|
12
|
Computation
of Ratio of Earnings to Fixed Charges.
|
|
15
|
Accountants’
Acknowledgment.
|
|
31.1
|
Certification
of Chief Executive Officer Pursuant to Rule 13a-14(a) or 15d-14(a), as
adopted pursuant to Section 302 of the Sarbanes-Oxley Act of
2002.
|
|
31.2
|
Certification
of Chief Financial Officer Pursuant to Rule 13a-14(a) or 15d-14(a), as
adopted pursuant to Section 302 of the Sarbanes-Oxley Act of
2002.
|
|
32.1
|
Certification
of Chief Executive Officer and Chief Financial Officer Pursuant to 18
U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.
|
|
99
|
Report
of Independent Registered Public Accounting
Firm.
|
Thirteen Weeks ended
|
Fiscal Year ended
|
|||||||||||||||||||||||||||
May 2,
|
May 3,
|
Jan. 31,
|
Feb. 2,
|
Feb. 3,
|
Jan. 28,
|
Jan. 29,
|
||||||||||||||||||||||
2009
|
2008
|
2009
|
2008
|
2007
|
2006
|
2005
|
||||||||||||||||||||||
NET
EARNINGS
|
||||||||||||||||||||||||||||
Income
from continuing operations
|
$ | 31 | $ | 3 | $ | (79 | ) | $ | 45 | $ | 247 | $ | 263 | $ | 255 | |||||||||||||
Income
tax expense (benefit)
|
18 | 12 | (21 | ) | (95 | ) | 145 | 142 | 119 | |||||||||||||||||||
Interest
expense, excluding capitalized interest
|
3 | 5 | 16 | 21 | 23 | 23 | 22 | |||||||||||||||||||||
Portion
of rents deemed representative of the interest factor
|
56 | 56 | 225 | 224 | 214 | 210 | 202 | |||||||||||||||||||||
$ | 108 | $ | 76 | $ | 141 | $ | 195 | $ | 629 | $ | 638 | $ | 598 | |||||||||||||||
FIXED
CHARGES
|
||||||||||||||||||||||||||||
Gross
interest expense
|
$ | 3 | $ | 5 | $ | 16 | $ | 21 | $ | 23 | $ | 23 | $ | 22 | ||||||||||||||
Portion
of rents deemed representative of the interest factor
|
56 | 56 | 225 | 224 | 214 | 210 | 202 | |||||||||||||||||||||
$ | 59 | $ | 61 | $ | 241 | $ | 245 | $ | 237 | $ | 233 | $ | 224 | |||||||||||||||
RATIO
OF EARNINGS TO FIXED CHARGES
|
1.8 | 1.2 | 0.6 | 0.8 | 2.7 | 2.7 | 2.7 |
/s/
KPMG LLP
|
New
York, New York
|
June
10, 2009
|
1.
|
I
have reviewed this quarterly report on Form 10-Q of Foot Locker, Inc. (the
“Registrant”);
|
2.
|
Based
on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
|
3.
|
Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the
Registrant as of, and for, the periods presented in this
report;
|
4.
|
The
Registrant’s other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules 13a-
15(f) and 15d-15(f)) for the Registrant and
have:
|
a)
|
Designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure
that material information relating to the Registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being
prepared;
|
b)
|
Designed
such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting
principles;
|
c)
|
Evaluated
the effectiveness of the Registrant’s disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of
the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation;
and
|
d)
|
Disclosed
in this report any change in the Registrant’s internal control over
financial reporting that occurred during the Registrant’s most recent
fiscal quarter (the Registrant’s fourth fiscal quarter in the case of
annual report) that has materially affected, or is reasonably likely to
materially affect, the Registrant’s internal control over financial
reporting; and
|
5.
|
The
Registrant’s other certifying officer(s) and I have disclosed, based on
our most recent evaluation of internal control over financial reporting,
to the Registrant’s auditors and the Audit Committee of the Registrant’s
Board of Directors (or persons performing the equivalent
functions):
|
a)
|
All
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the Registrant’s ability to record,
process, summarize and report financial information;
and
|
b)
|
Any
fraud, whether or not material, that involves management or other
employees who have a significant role in the Registrant’s internal control
over financial reporting.
|
June
10, 2009
|
|
/s/
Matthew D. Serra
|
|
Chief
Executive Officer
|
1.
|
I
have reviewed this quarterly report on Form 10-Q of Foot Locker, Inc. (the
“Registrant”);
|
2.
|
Based
on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
|
3.
|
Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the
Registrant as of, and for, the periods presented in this
report;
|
4.
|
The
Registrant’s other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules 13a-
15(f) and 15d-15(f)) for the Registrant and
have:
|
a)
|
Designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure
that material information relating to the Registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being
prepared;
|
b)
|
Designed
such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting
principles;
|
c)
|
Evaluated
the effectiveness of the Registrant’s disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of
the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation;
and
|
d)
|
Disclosed
in this report any change in the Registrant’s internal control over
financial reporting that occurred during the Registrant’s most recent
fiscal quarter (the Registrant’s fourth fiscal quarter in the case of
annual report) that has materially affected, or is reasonably likely to
materially affect, the Registrant’s internal control over financial
reporting; and
|
5.
|
The
Registrant’s other certifying officer(s) and I have disclosed, based on
our most recent evaluation of internal control over financial reporting,
to the Registrant’s auditors and the Audit Committee of the Registrant’s
Board of Directors (or persons performing the equivalent
functions):
|
a)
|
Allsignificant
deficiencies and material weaknesses in the design or operation of
internal control over financial reporting which are reasonably likely to
adversely affect the Registrant’s ability to record, process, summarize
and report financial information;
and
|
b)
|
Any
fraud, whether or not material, that involves management or other
employees who have a significant role in the Registrant’s internal control
over financial reporting.
|
June
10, 2009
|
|
/s/
Robert W. McHugh
|
|
Chief
Financial Officer
|
Dated:
June 10, 2009
|
|
/s/
Matthew D. Serra
|
|
Matthew
D. Serra
|
|
Chief
Executive Officer
|
|
/s/
Robert W. McHugh
|
|
Robert
W. McHugh
|
|
Chief
Financial Officer
|
/s/
KPMG LLP
|
New
York, New York
|
June
10, 2009
|