Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Aug. 01, 2015 | Aug. 28, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Aug. 1, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | FL | |
Entity Registrant Name | FOOT LOCKER INC | |
Entity Central Index Key | 850,209 | |
Current Fiscal Year End Date | --01-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 139,381,505 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Aug. 01, 2015 | Jan. 31, 2015 | [1] | Aug. 02, 2014 |
Current assets | ||||
Cash and cash equivalents | $ 970 | $ 967 | $ 957 | |
Merchandise inventories | 1,317 | 1,250 | 1,335 | |
Other current assets | 268 | 239 | 260 | |
Assets, Current, Total | 2,555 | 2,456 | 2,552 | |
Property and equipment, net | 644 | 620 | 604 | |
Deferred taxes | 222 | 221 | 247 | |
Goodwill | 156 | 157 | 162 | |
Other intangible assets, net | 46 | 49 | 61 | |
Other assets | 81 | 74 | 72 | |
Total Assets | 3,704 | 3,577 | 3,698 | |
Current liabilities | ||||
Accounts payable | 359 | 301 | 392 | |
Accrued and other liabilities | 380 | 393 | 356 | |
Current portion of capital lease obligations | 2 | 2 | 3 | |
Liabilities, Current, Total | 741 | 696 | 751 | |
Long-term debt and obligations under capital leases | 130 | 132 | 134 | |
Other liabilities | 254 | 253 | 231 | |
Total liabilities | 1,125 | 1,081 | 1,116 | |
Shareholders' equity | ||||
Common stock and paid-in capital: 172,536,861; 170,311,573 and 170,529,401 shares, respectively | 1,060 | 979 | 961 | |
Retained earnings | 3,013 | 2,780 | 2,577 | |
Accumulated other comprehensive loss | (338) | (319) | (182) | |
Less: Treasury stock at cost: 33,207,045; 26,640,176 and 29,665,213 shares, respectively | (1,156) | (944) | (774) | |
Total shareholders' equity | 2,579 | 2,496 | 2,582 | |
Liabilites and Shareholders' Equity, Total | $ 3,704 | $ 3,577 | $ 3,698 | |
[1] | The balance sheet at January 31, 2015 has been derived from the previously reported audited financial statements at that date, but does not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in Foot Locker, Inc.'s Annual Report on Form 10-K for the year ended January 31, 2015. |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Aug. 01, 2015 | Jan. 31, 2015 | Aug. 02, 2014 |
Common Stock, Shares, Issued | 172,536,861 | 170,529,401 | 170,311,573 |
Treasury Stock, Shares | 33,207,045 | 29,665,213 | 26,640,176 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Aug. 01, 2015 | Aug. 02, 2014 | Aug. 01, 2015 | Aug. 02, 2014 | ||
Sales | $ 1,695 | $ 1,641 | $ 3,611 | $ 3,509 | |
Cost of sales | 1,142 | 1,116 | 2,388 | 2,338 | |
Selling, general and administrative expenses | 331 | 343 | 676 | 698 | |
Depreciation and amortization | 36 | 36 | 71 | 72 | |
Impairment charge | 0 | 2 | 0 | 3 | |
Interest expense, net | 1 | 1 | 2 | 2 | |
Other income, net | [1] | 0 | (1) | (1) | (2) |
Costs and Expenses, Total | 1,510 | 1,497 | 3,136 | 3,111 | |
Income before income taxes | 185 | 144 | 475 | 398 | |
Income tax expense | 66 | 52 | 172 | 144 | |
Net income | $ 119 | $ 92 | $ 303 | $ 254 | |
Basic earnings per share: | |||||
Net income (in dollars per share) | $ 0.85 | $ 0.63 | $ 2.17 | $ 1.75 | |
Weighted-average common shares outstanding | 139.6 | 144.5 | 139.8 | 145 | |
Diluted earnings per share: | |||||
Net income (in dollars per share) | $ 0.84 | $ 0.63 | $ 2.14 | $ 1.73 | |
Weighted-average common shares assuming dilution | 141.3 | 146.4 | 141.7 | 147 | |
[1] | Other income includes non-operating items, such as lease termination gains, royalty income, and the changes in fair value, premiums paid, and realized gains associated with foreign currency option contracts. |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 01, 2015 | Aug. 02, 2014 | Aug. 01, 2015 | Aug. 02, 2014 | |
Net income | $ 119 | $ 92 | $ 303 | $ 254 |
Foreign currency translation adjustment: | ||||
Translation adjustment arising during the period, net of income tax | (23) | (19) | (22) | 0 |
Cash flow hedges: | ||||
Change in fair value of derivatives, net of income tax | 0 | (1) | (1) | 0 |
Pension and postretirement adjustments: | ||||
Amortization of net actuarial gain/loss included in net periodic benefit costs, net of income tax expense of $1, $1, $2, and $2 million, respectively | 3 | 2 | 4 | 4 |
Available for sale securities: | ||||
Comprehensive income | $ 99 | $ 74 | $ 284 | $ 258 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 01, 2015 | Aug. 02, 2014 | Aug. 01, 2015 | Aug. 02, 2014 | |
Amortization of net actuarial gain/loss included in net periodic benefit costs, net of income tax expense | $ 1 | $ 1 | $ 2 | $ 2 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | ||
Aug. 01, 2015 | Aug. 02, 2014 | ||
From Operating Activities: | |||
Net income | $ 303 | $ 254 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Non-cash impairment charge | 0 | 3 | |
Depreciation and amortization | 71 | 72 | |
Share-based compensation expense | 11 | 12 | |
Qualified pension plan contributions | 0 | (2) | |
Excess tax benefits on share-based compensation | (24) | (9) | |
Change in assets and liabilities: | |||
Merchandise inventories | (75) | (115) | |
Accounts payable | 61 | 130 | |
Accrued and other liabilities | (16) | 4 | |
Other, net | 3 | 13 | |
Net cash provided by operating activities | 334 | 362 | |
From Investing Activities: | |||
Capital expenditures | (116) | (93) | |
Sales and maturities of short-term investments | 0 | 9 | |
Net cash used in investing activities | (116) | (84) | |
From Financing Activities: | |||
Purchase of treasury shares | (205) | (136) | |
Dividends paid on common stock | (70) | (64) | |
Issuance of common stock | 38 | 13 | |
Treasury stock issued under employee stock purchase plan | 5 | 5 | |
Excess tax benefits on share-based compensation | 24 | 9 | |
Repayments of obligations under capital leases | (1) | (2) | |
Net cash used in financing activities | (209) | (175) | |
Effect of exchange rate fluctuations on Cash and Cash Equivalents | (6) | (4) | |
Net change in Cash and Cash Equivalents | 3 | 99 | |
Cash and Cash Equivalents at beginning of year | 967 | [1] | 858 |
Cash and Cash Equivalents at end of interim period | 970 | 957 | |
Cash paid during the period: | |||
Interest | 5 | 5 | |
Income taxes | $ 178 | $ 155 | |
[1] | The balance sheet at January 31, 2015 has been derived from the previously reported audited financial statements at that date, but does not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in Foot Locker, Inc.'s Annual Report on Form 10-K for the year ended January 31, 2015. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Aug. 01, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies The accompanying condensed consolidated financial statements contained in this report are unaudited. In the opinion of management, the condensed consolidated financial statements include all adjustments, which are of a normal recurring nature, necessary for a fair presentation of the results for the interim periods of the fiscal year ending January 30, 2016 and of the fiscal year ended January 31, 2015. Certain items included in these statements are based on management’s estimates. Actual results may differ from those estimates. The results of operations for any interim period are not necessarily indicative of the results expected for the year. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the Notes to Consolidated Financial Statements contained in Foot Locker, Inc.’s (the “Company”) Form 10-K for the year ended January 31, 2015, as filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 30, 2015. Recently issued accounting pronouncements did not, or are not believed by management to, have a material effect on the Company’s present or future consolidated financial statements. |
Segment Information
Segment Information | 6 Months Ended |
Aug. 01, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | 2. Segment Information The Company has determined that its reportable segments are those that are based on its method of internal reporting. The Company has two reportable segments, Athletic Stores and Direct-to-Customers. The Company evaluates performance based on several factors, of which the primary financial measure is division results. Division profit reflects income before income taxes, corporate expense, non-operating income, and net interest expense. Thirteen weeks ended Twenty-six weeks ended August 1, August 2, August 1, August 2, 2015 2014 2015 2014 ($ in millions) Sales Athletic Stores $ 1,503 $ 1,468 $ 3,184 $ 3,125 Direct-to-Customers 192 173 427 384 Total sales $ 1,695 $ 1,641 $ 3,611 $ 3,509 Operating Results Athletic Stores (1) $ 176 $ 149 $ 443 $ 396 Direct-to-Customers (2) 27 14 67 42 Division profit 203 163 510 438 Less: Corporate expense, net 17 19 34 40 Operating profit 186 144 476 398 Other income (3) 1 1 2 Interest expense, net 1 1 2 2 Income before income taxes $ 185 $ 144 $ 475 $ 398 (1) Included in the twenty-six weeks ended August 2, 2014 is a non-cash impairment charge of $ 1 (2) Included in both the thirteen and twenty-six weeks ended August 2, 2014 is a $ 2 (3) Other income includes non-operating items, such as lease termination gains, royalty income, and the changes in fair value, premiums paid, and realized gains associated with foreign currency option contracts. |
Goodwill
Goodwill | 6 Months Ended |
Aug. 01, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | 3. Goodwill Annually during the first quarter, or more frequently if impairment indicators arise, the Company reviews goodwill and intangible assets with indefinite lives for impairment. The annual review of goodwill and intangible assets with indefinite lives performed during the first quarter of 2015 did not result in the recognition of impairment. August 1, August 2, January 31, 2015 2014 2015 ($ in millions) Athletic Stores $ 17 $ 20 $ 17 Direct-to-Customers 139 142 140 $ 156 $ 162 $ 157 |
Other Intangible Assets, net
Other Intangible Assets, net | 6 Months Ended |
Aug. 01, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets, net | 4. Other Intangible Assets, net August 1, 2015 August 2, 2014 January 31, 2015 Gross Accum. Net Gross Accum. Net Gross Accum. Net ($ in millions) value amort. Value value amort. Value value amort. Value Amortized intangible assets: (1), (2) Lease acquisition costs $ 121 $ (111) $ 10 $ 152 $ (136) $ 16 $ 128 $ (116) $ 12 Trademarks 21 (12) 9 21 (11) 10 21 (12) 9 Favorable leases 7 (4) 3 8 (4) 4 7 (4) 3 $ 149 $ (127) $ 22 $ 181 $ (151) $ 30 $ 156 $ (132) $ 24 Indefinite life intangible assets: (1) Runners Point Group trademarks 24 30 25 Other trademarks 1 $ 24 $ 31 $ 25 Other intangible assets, net $ 46 $ 61 $ 49 (1) The change in the ending balances reflects the effect of foreign currency fluctuations due primarily to the movements of the euro in relation to the U.S. dollar. (2) During 2014, the Company exited the CCS e-commerce business; as such, the fully amortized customer relationship intangible of $ 21 For the twenty-six week period ended August 1, 2015, activity included amortization of $ 2 Thirteen weeks ended Twenty-six weeks ended August 1, August 2, August 1, August 2, ($ in millions) 2015 2014 2015 2014 Amortization expense $ 1 $ 1 $ 2 $ 3 ($ in millions) Remainder of 2015 $ 2 2016 4 2017 3 2018 3 2019 3 2020 2 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Aug. 01, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | 5. Accumulated Other Comprehensive Loss August 1, August 2, January 31, 2015 2014 2015 ($ in millions) Foreign currency translation adjustments $ (97) $ 57 $ (75) Cash flow hedges (4) (2) (3) Unrecognized pension cost and postretirement benefit (236) (236) (240) Unrealized loss on available-for-sale security (1) (1) (1) $ (338) $ (182) $ (319) Foreign Items related to currency pension and Unrealized loss translation Cash flow postretirement on available-for- ($ in millions) adjustments hedges benefits sale security Total Balance as of January 31, 2015 $ (75) (3) (240) (1) $ (319) OCI before reclassification (22) (1) (23) Reclassified from AOCL 4 4 Other comprehensive income/(loss) (22) (1) 4 (19) Balance as of August 1, 2015 $ (97) (4) (236) (1) $ (338) ($ in millions) Amortization of actuarial (gain) loss: Pension benefits - amortization of actuarial loss $ 7 Postretirement benefits - amortization of actuarial gain (1) Net periodic benefit cost (see Note 9) 6 Income tax benefit (2) Net of tax $ 4 |
Financial Instruments
Financial Instruments | 6 Months Ended |
Aug. 01, 2015 | |
Derivative Instruments and Hedges, Assets [Abstract] | |
Financial Instruments | 6. Financial Instruments The Company operates internationally and utilizes certain derivative financial instruments to mitigate its foreign currency exposures, primarily related to third-party and intercompany forecasted transactions. As a result of the use of derivative instruments, the Company is exposed to the risk that counterparties will fail to meet their contractual obligations. To mitigate this counterparty credit risk, the Company has a practice of entering into contracts only with major financial institutions selected based upon their credit ratings and other financial factors. The Company monitors the creditworthiness of counterparties throughout the duration of the derivative instrument. Additional information is contained within Note 7, Fair Value Measurements Derivative Holdings Designated as Hedges For a derivative to qualify as a hedge at inception and throughout the hedged period, the Company formally documents the nature of the hedged items and the relationships between the hedging instruments and the hedged items, as well as its risk-management objectives, strategies for undertaking the various hedge transactions, and the methods of assessing hedge effectiveness and ineffectiveness. In addition, for hedges of forecasted transactions, the significant characteristics and expected terms of a forecasted transaction must be specifically identified, and it must be probable that each forecasted transaction would occur. If it were deemed probable that the forecasted transaction would not occur, the gain or loss on the derivative instrument would be recognized in earnings immediately. No such gains or losses were recognized in earnings for any of the periods presented. Derivative financial instruments qualifying for hedge accounting must maintain a specified level of effectiveness between the hedging instrument and the item being hedged, both at inception and throughout the hedged period, which management evaluates periodically. The primary currencies to which the Company is exposed are the euro, British pound, Canadian dollar, and Australian dollar. For the most part, merchandise inventories are purchased by each geographic area in their respective local currency. The exception to this is the United Kingdom, whose merchandise inventory purchases are denominated in euros. For option and foreign exchange forward contracts designated as cash flow hedges of the purchase of inventory, the effective portion of gains and losses is deferred as a component of AOCL and is recognized as a component of cost of sales when the related inventory is sold. The amount reclassified to cost of sales related to such contracts was not significant for any of the periods presented. The effective portion of gains or losses associated with other forward contracts is deferred as a component of AOCL until the underlying transaction is reported in earnings. The ineffective portion of gains and losses related to cash flow hedges recorded to earnings was also not significant for any of the periods presented. When using a forward contract as a hedging instrument, the Company excludes the time value of the contract from the assessment of effectiveness. At each quarter-end, all of the Company’s hedged forecasted transactions are less than twelve months, and the Company expects all derivative-related amounts reported in AOCL to be reclassified to earnings within twelve months. The net change in the fair value of the foreign exchange derivative financial instruments designated as cash flow hedges of the purchase of inventory was not significant for the thirteen weeks ended August 1, 2015 and was a $1 million loss for the twenty-six weeks ended August 1, 2015, and therefore increased AOCL. At August 1, 2015, there was a $ 4 82 Derivative Holdings Not Designated as Hedges The Company enters into foreign exchange forward contracts that are not designated as hedges in order to manage the costs of foreign-currency denominated merchandise purchases and intercompany transactions. Changes in the fair value of these foreign exchange forward contracts are recorded in earnings immediately within selling, general and administrative expenses. The net change in fair value resulted in income of $ 1 2 1 105 The Company mitigates the effect of fluctuating foreign exchange rates on the reporting of foreign-currency denominated earnings by entering into currency option contracts. Changes in the fair value of these foreign currency option contracts, which are not designated as hedges, are recorded in earnings immediately within other income. The realized gains, premiums paid, and changes in the fair market value recorded were not significant for any of the periods presented. No such contracts were outstanding at August 1, 2015. Additionally, the Company enters into diesel fuel forward and option contracts to mitigate a portion of the Company’s freight expense due to the variability caused by fuel surcharges imposed by our third-party freight carriers. Changes in the fair value of these contracts are recorded in earnings immediately. The effect was not significant for any of the periods presented. The notional value of the contracts outstanding at August 1, 2015 was $ 2 Fair Value of Derivative Contracts Balance Sheet August 1, August 2, January 31, ($in millions) Caption 2015 2014 2015 Hedging Instruments: Foreign exchange forward contracts Current liabilities $ 5 $ 3 $ 4 Non-Hedging Instruments: Foreign exchange forward contracts Current assets $ 1 $ $ Foreign exchange forward contracts Current liabilities $ $ $ 1 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Aug. 01, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 7. Fair Value Measurements The Company’s financial assets recorded at fair value are categorized as follows: 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. At August 1, 2015 At August 2, 2014 At January 31, 2015 ($ in millions) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Auction rate security 6 6 6 Foreign exchange forward contracts 1 Total Assets $ $ 7 $ $ 6 $ $ $ 6 $ Liabilities Foreign exchange forward contracts 5 3 5 Total Liabilities $ $ 5 $ $ $ 3 $ $ $ 5 $ Securities classified as available-for-sale are recorded at fair value with unrealized gains and losses reported, net of tax, in other comprehensive income, unless unrealized losses are determined to be other than temporary. The fair value of the auction rate security is determined by using quoted prices for similar instruments in active markets and accordingly is classified as a Level 2 instrument. The Company’s derivative financial instruments are valued using market-based inputs to valuation models. These valuation models require a variety of inputs, including contractual terms, market prices, yield curves, and measures of volatility and, therefore, are classified as Level 2 instruments. There were no transfers into or out of Level 1, Level 2, or Level 3 assets and liabilities for any of the periods presented. August 1, August 2, January 31, 2015 2014 2015 ($ in millions) Carrying value $ 132 $ 137 $ 134 Fair value $ 157 $ 163 $ 163 The fair value of long-term debt is determined by using model-derived valuations in which all significant inputs or significant value-drivers are observable in active markets and, therefore, are classified as Level 2. The carrying values of cash and cash equivalents and other current receivables and payables approximate their fair value. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Aug. 01, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | 8. Earnings Per Share The Company accounts for and discloses earnings per share using the treasury stock method. Basic earnings per share is computed by dividing reported net income for the period by the weighted-average number of common shares outstanding at the end of the period. Restricted stock awards, which contain non-forfeitable rights to dividends, are considered participating securities and are included in the calculation of basic earnings per share. Diluted earnings per share reflects the weighted-average number of common shares outstanding during the period used in the basic earnings per share computation plus dilutive common stock equivalents. Thirteen weeks ended Twenty-six weeks ended August 1, August 2, August 1, August 2, 2015 2014 2015 2014 ($ in millions) Weighted-average common shares outstanding 139.6 144.5 139.8 145.0 Effect of Dilution: Stock options and awards 1.7 1.9 1.9 2.0 Weighted-average common shares assuming dilution 141.3 146.4 141.7 147.0 Options to purchase 0.7 0.8 0.6 0.5 0.4 |
Pension and Postretirement Plan
Pension and Postretirement Plans | 6 Months Ended |
Aug. 01, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Postretirement Plans | 9. Pension and Postretirement Plans The Company has defined benefit pension plans covering certain of its North American employees, which are funded in accordance with the provisions of the laws where the plans are in effect. In addition, the Company has a defined benefit pension plan covering certain individuals of the Runners Point Group. In addition to providing pension benefits, the Company sponsors postretirement medical and life insurance plans, which are available to most of its retired U.S. employees. These medical and life insurance plans are contributory and are not funded. Pension Benefits Postretirement Benefits Thirteen weeks Twenty-six weeks Thirteen weeks Twenty-six weeks ended ended ended ended August 1, August 2, August 1, August 2, August 1, August 2, August 1, August 2, ($ in millions) 2015 2014 2015 2014 2015 2014 2015 2014 Service cost $ 4 $ 4 $ 8 $ 8 $ $ $ $ Interest cost 6 7 12 14 1 1 Expected return on plan assets (10) (9) (19) (19) Amortization of net loss (gain) 4 3 7 7 (1) (1) (1) Net benefit expense (income) $ 4 $ 5 $ 8 $ 10 $ $ $ $ (1) No contributions were made to the plans during the thirteen and twenty-six weeks ended August 1, 2015. The Company continually evaluates the amount and timing of any future contributions. During the third quarter of 2015, the Company contributed $ 4 plan. The Company currently does not expect any further pension plan contributions during the current year |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Aug. 01, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | 10. Share-Based Compensation Thirteen weeks ended Twenty-six weeks ended August 1, August 2, August 1, August 2, 2015 2014 2015 2014 ($ in millions) Options and shares purchased under the employee stock purchase plan $ 3 $ 3 $ 6 $ 6 Restricted stock and restricted stock units 2 3 5 6 Total share-based compensation expense $ 5 $ 6 $ 11 $ 12 Tax benefit recognized $ 1 $ 2 $ 3 $ 4 Excess income tax benefit from settled equity-classified share-based awards reported as a cash flow from financing activities $ 24 $ 9 Valuation Model and Assumptions The Company uses a Black-Scholes option-pricing model to estimate the fair value of share-based awards. The Black-Scholes option-pricing model incorporates various and highly subjective assumptions, including expected term and expected volatility. Stock Option Plans Stock Purchase Plan August 1, August 2, August 1, August 2, 2015 2014 2015 2014 Weighted-average risk free rate of interest 1.51 % 2.11 % 0.19 % 0.15 % Expected volatility 30 % 39 % 24 % 24 % Weighted-average expected award life 6.0 years 6.1 years 1.0 year 1.0 year Dividend yield 1.6 % 2.0 % 1.7 % 2.2 % Weighted-average fair value $ 16.01 $ 14.88 $ 9.53 $ 6.60 Weighted- Weighted-Average Average Exercise Shares Term Price (in thousands, except price per share and weighted-average) Options outstanding at the beginning of the year 5,569 $ 25.89 Granted 682 62.11 Exercised (1,672) 22.49 Expired or cancelled (51) 48.20 Options outstanding at August 1, 2015 4,528 6.6 $ 32.35 Options exercisable at August 1, 2015 3,305 5.7 $ 24.54 Options vested and expected to vest at August 1, 2015 4,479 6.6 $ 32.09 Options available for future grant at August 1, 2015 13,104 Thirteen weeks ended Twenty-six weeks ended August 1, August 2, August 1, August 2, 2015 2014 2015 2014 ($ in millions) Exercised $ 29 $ 4 $ 65 $ 15 Twenty-six weeks ended August 1, August 2, 2015 2014 ($ in millions) Outstanding $ 173 $ 130 Outstanding and exercisable $ 152 $ 112 Vested and expected to vest $ 172 $ 130 As of August 1, 2015, there was $ 11 1.6 The cash received from option exercises for the thirteen and twenty-six weeks ended August 1, 2015 was $ 15 38 3 13 11 25 1 5 Options Outstanding Options Exercisable Weighted- Weighted- Average Average Weighted-Average Range of Exercise Number Remaining Exercise Number Exercise Prices Outstanding Contractual Life Price Exercisable Price (in thousands, except prices per share and contractual life) $ 9.85 to $18.80 872 4.1 $ 13.28 872 $ 13.28 $18.84 to $24.75 1,054 5.1 $ 19.68 1,054 $ 19.68 $30.92 to $36.59 1,249 7.0 $ 32.79 1,075 $ 32.56 $45.08 to $62.11 1,353 9.1 $ 54.10 304 $ 45.38 4,528 6.6 $ 32.35 3,305 $ 24.54 Restricted Stock and Restricted Stock Units Restricted shares of the Company’s common stock and restricted stock units (“RSU”) may be awarded to certain officers and key employees of the Company. RSU awards are made to executives outside of the United States and to nonemployee directors. Additionally, RSU awards are made in connection with the Company’s long-term incentive program. Each RSU represents the right to receive one share of the Company’s common stock provided that the vesting conditions are satisfied. There were 581,713 742,514 Generally, awards fully vest after the passage of time, typically three years. However, RSU awards made in connection with the Company’s long-term incentive program vest after the attainment of both certain performance metrics and the passage of time 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. Weighted-Average Number of Shares Grant Date Fair (in thousands, except price per share) Nonvested at the beginning of the year 1,038 $ 37.96 Granted 126 61.61 Vested (312) 32.33 Expired or cancelled (63) 38.10 Nonvested at August 1, 2015 789 $ 43.95 Aggregate value ($in millions) $ 35 Weighted-average remaining contractual life (in years) 1.3 years The weighted grant-date fair value per share was $ 61.61 45.24 10 14 13 |
Legal Proceedings
Legal Proceedings | 6 Months Ended |
Aug. 01, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings | 11. Legal Proceedings Legal proceedings pending against the Company or its consolidated subsidiaries consist of ordinary, routine litigation, including administrative proceedings, incidental to the business of the Company or businesses that have been sold or disposed of by the Company in past years. These legal proceedings include commercial, intellectual property, customer, environmental, and employment-related claims. Certain of the Company’s subsidiaries are defendants in a number of lawsuits filed in state and federal courts containing various class action allegations under federal or state wage and hour laws, including allegations concerning unpaid overtime, meal and rest breaks, and uniforms. In Pereira v. Foot Locker Pereira Hill v. Foot Locker Kissinger v. Foot Locker Cortes v. Foot Locker Pereira In re Foot Locker, Inc. Fair Labor Standards Act and Wage and Hour Litigation. Hill The Company and the Company’s U.S. retirement plan are defendants in a class action ( Osberg v. Foot Locker Management does not believe that the outcome of any such legal proceedings pending against the Company or its consolidated subsidiaries, including Cortes, Kissinger, Osberg |
Summary of Significant Accoun19
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Aug. 01, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements contained in this report are unaudited. In the opinion of management, the condensed consolidated financial statements include all adjustments, which are of a normal recurring nature, necessary for a fair presentation of the results for the interim periods of the fiscal year ending January 30, 2016 and of the fiscal year ended January 31, 2015. Certain items included in these statements are based on management’s estimates. Actual results may differ from those estimates. The results of operations for any interim period are not necessarily indicative of the results expected for the year. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the Notes to Consolidated Financial Statements contained in Foot Locker, Inc.’s (the “Company”) Form 10-K for the year ended January 31, 2015, as filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 30, 2015. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently issued accounting pronouncements did not, or are not believed by management to, have a material effect on the Company’s present or future consolidated financial statements. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Aug. 01, 2015 | |
Segment Reporting [Abstract] | |
Sales and Division Operating Results for Reportable Segments | Thirteen weeks ended Twenty-six weeks ended August 1, August 2, August 1, August 2, 2015 2014 2015 2014 ($ in millions) Sales Athletic Stores $ 1,503 $ 1,468 $ 3,184 $ 3,125 Direct-to-Customers 192 173 427 384 Total sales $ 1,695 $ 1,641 $ 3,611 $ 3,509 Operating Results Athletic Stores (1) $ 176 $ 149 $ 443 $ 396 Direct-to-Customers (2) 27 14 67 42 Division profit 203 163 510 438 Less: Corporate expense, net 17 19 34 40 Operating profit 186 144 476 398 Other income (3) 1 1 2 Interest expense, net 1 1 2 2 Income before income taxes $ 185 $ 144 $ 475 $ 398 (1) Included in the twenty-six weeks ended August 2, 2014 is a non-cash impairment charge of $ 1 (2) Included in both the thirteen and twenty-six weeks ended August 2, 2014 is a $ 2 (3) Other income includes non-operating items, such as lease termination gains, royalty income, and the changes in fair value, premiums paid, and realized gains associated with foreign currency option contracts. |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Aug. 01, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | The following table provides a summary of goodwill by reportable segment. The change in the balance represents foreign currency exchange fluctuations. August 1, August 2, January 31, 2015 2014 2015 ($ in millions) Athletic Stores $ 17 $ 20 $ 17 Direct-to-Customers 139 142 140 $ 156 $ 162 $ 157 |
Other Intangible Assets, net (T
Other Intangible Assets, net (Tables) | 6 Months Ended |
Aug. 01, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Components of Finite-Lived Intangible Assets and Intangible Assets Not Subject to Amortization | The components of finite-lived intangible assets and intangible assets not subject to amortization are as follows: August 1, 2015 August 2, 2014 January 31, 2015 Gross Accum. Net Gross Accum. Net Gross Accum. Net ($ in millions) value amort. Value value amort. Value value amort. Value Amortized intangible assets: (1), (2) Lease acquisition costs $ 121 $ (111) $ 10 $ 152 $ (136) $ 16 $ 128 $ (116) $ 12 Trademarks 21 (12) 9 21 (11) 10 21 (12) 9 Favorable leases 7 (4) 3 8 (4) 4 7 (4) 3 $ 149 $ (127) $ 22 $ 181 $ (151) $ 30 $ 156 $ (132) $ 24 Indefinite life intangible assets: (1) Runners Point Group trademarks 24 30 25 Other trademarks 1 $ 24 $ 31 $ 25 Other intangible assets, net $ 46 $ 61 $ 49 (1) The change in the ending balances reflects the effect of foreign currency fluctuations due primarily to the movements of the euro in relation to the U.S. dollar. (2) During 2014, the Company exited the CCS e-commerce business; as such, the fully amortized customer relationship intangible of $ 21 |
Amortization Expense | Thirteen weeks ended Twenty-six weeks ended August 1, August 2, August 1, August 2, ($ in millions) 2015 2014 2015 2014 Amortization expense $ 1 $ 1 $ 2 $ 3 |
Estimated Future Expected Amortization Expense for Finite Life Intangible Assets | Estimated future amortization expense for finite life intangible assets is as follows: ($ in millions) Remainder of 2015 $ 2 2016 4 2017 3 2018 3 2019 3 2020 2 |
Accumulated Other Comprehensi23
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Aug. 01, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss (“AOCL”), net of tax, is comprised the following: August 1, August 2, January 31, 2015 2014 2015 ($ in millions) Foreign currency translation adjustments $ (97) $ 57 $ (75) Cash flow hedges (4) (2) (3) Unrecognized pension cost and postretirement benefit (236) (236) (240) Unrealized loss on available-for-sale security (1) (1) (1) $ (338) $ (182) $ (319) |
Changes in Accumulated Other Comprehensive Loss | The changes in AOCL for the twenty-six weeks ended August 1, 2015 were as follows: Foreign Items related to currency pension and Unrealized loss translation Cash flow postretirement on available-for- ($ in millions) adjustments hedges benefits sale security Total Balance as of January 31, 2015 $ (75) (3) (240) (1) $ (319) OCI before reclassification (22) (1) (23) Reclassified from AOCL 4 4 Other comprehensive income/(loss) (22) (1) 4 (19) Balance as of August 1, 2015 $ (97) (4) (236) (1) $ (338) |
Reclassification from Accumulated Other Comprehensive Loss | Reclassifications from AOCL for the twenty-six weeks ended August 1, 2015 were as follows: ($ in millions) Amortization of actuarial (gain) loss: Pension benefits - amortization of actuarial loss $ 7 Postretirement benefits - amortization of actuarial gain (1) Net periodic benefit cost (see Note 9) 6 Income tax benefit (2) Net of tax $ 4 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Aug. 01, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Contracts on Gross Basis, by Type of Contract | The following represents the fair value of the Company’s derivative contracts. Many of the Company’s agreements allow for a netting arrangement. The following is presented on a gross basis, by type of contract: Balance Sheet August 1, August 2, January 31, ($in millions) Caption 2015 2014 2015 Hedging Instruments: Foreign exchange forward contracts Current liabilities $ 5 $ 3 $ 4 Non-Hedging Instruments: Foreign exchange forward contracts Current assets $ 1 $ $ Foreign exchange forward contracts Current liabilities $ $ $ 1 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Aug. 01, 2015 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables provide a summary of the Company’s recognized assets and liabilities that are measured at fair value on a recurring basis: At August 1, 2015 At August 2, 2014 At January 31, 2015 ($ in millions) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Auction rate security 6 6 6 Foreign exchange forward contracts 1 Total Assets $ $ 7 $ $ 6 $ $ $ 6 $ Liabilities Foreign exchange forward contracts 5 3 5 Total Liabilities $ $ 5 $ $ $ 3 $ $ $ 5 $ |
Carrying Value and Estimated Fair Value of Long-Term Debt | The carrying value and estimated fair value of long-term debt and obligations under capital leases were as follows: August 1, August 2, January 31, 2015 2014 2015 ($ in millions) Carrying value $ 132 $ 137 $ 134 Fair value $ 157 $ 163 $ 163 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Aug. 01, 2015 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Weighted-Average Number of Common Shares Outstanding | Thirteen weeks ended Twenty-six weeks ended August 1, August 2, August 1, August 2, 2015 2014 2015 2014 ($ in millions) Weighted-average common shares outstanding 139.6 144.5 139.8 145.0 Effect of Dilution: Stock options and awards 1.7 1.9 1.9 2.0 Weighted-average common shares assuming dilution 141.3 146.4 141.7 147.0 |
Pension and Postretirement Pl27
Pension and Postretirement Plans (Tables) | 6 Months Ended |
Aug. 01, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of Net Periodic Pension Benefit Cost and Postretirement Benefit Income | The following are the components of net periodic pension benefit cost and net periodic postretirement benefit income, which is recognized as part of SG&A expense: Pension Benefits Postretirement Benefits Thirteen weeks Twenty-six weeks Thirteen weeks Twenty-six weeks ended ended ended ended August 1, August 2, August 1, August 2, August 1, August 2, August 1, August 2, ($ in millions) 2015 2014 2015 2014 2015 2014 2015 2014 Service cost $ 4 $ 4 $ 8 $ 8 $ $ $ $ Interest cost 6 7 12 14 1 1 Expected return on plan assets (10) (9) (19) (19) Amortization of net loss (gain) 4 3 7 7 (1) (1) (1) Net benefit expense (income) $ 4 $ 5 $ 8 $ 10 $ $ $ $ (1) |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Aug. 01, 2015 | |
Share-based Compensation [Abstract] | |
Total compensation expense and the related tax benefits recognized | Total compensation expense included in SG&A, and the associated tax benefits recognized related to the Company’s share-based compensation plans were as follows: Thirteen weeks ended Twenty-six weeks ended August 1, August 2, August 1, August 2, 2015 2014 2015 2014 ($ in millions) Options and shares purchased under the employee stock purchase plan $ 3 $ 3 $ 6 $ 6 Restricted stock and restricted stock units 2 3 5 6 Total share-based compensation expense $ 5 $ 6 $ 11 $ 12 Tax benefit recognized $ 1 $ 2 $ 3 $ 4 Excess income tax benefit from settled equity-classified share-based awards reported as a cash flow from financing activities $ 24 $ 9 |
Assumptions used to Compute Share-Based Compensation Expense | The following table shows the Company’s assumptions used to compute the share-based compensation expense: Stock Option Plans Stock Purchase Plan August 1, August 2, August 1, August 2, 2015 2014 2015 2014 Weighted-average risk free rate of interest 1.51 % 2.11 % 0.19 % 0.15 % Expected volatility 30 % 39 % 24 % 24 % Weighted-average expected award life 6.0 years 6.1 years 1.0 year 1.0 year Dividend yield 1.6 % 2.0 % 1.7 % 2.2 % Weighted-average fair value $ 16.01 $ 14.88 $ 9.53 $ 6.60 |
Options Granted under Stock Option Plans | The information in the following table covers options granted under the Company’s stock option plans for the twenty-six weeks ended August 1, 2015: Weighted- Weighted-Average Average Exercise Shares Term Price (in thousands, except price per share and weighted-average) Options outstanding at the beginning of the year 5,569 $ 25.89 Granted 682 62.11 Exercised (1,672) 22.49 Expired or cancelled (51) 48.20 Options outstanding at August 1, 2015 4,528 6.6 $ 32.35 Options exercisable at August 1, 2015 3,305 5.7 $ 24.54 Options vested and expected to vest at August 1, 2015 4,479 6.6 $ 32.09 Options available for future grant at August 1, 2015 13,104 |
Total Intrinsic Value of Options Exercised | The total intrinsic value of options exercised (the difference between the market price of the Company’s common stock on the exercise date and the price paid by the optionee to exercise the option) is presented below: Thirteen weeks ended Twenty-six weeks ended August 1, August 2, August 1, August 2, 2015 2014 2015 2014 ($ in millions) Exercised $ 29 $ 4 $ 65 $ 15 |
Aggregate Intrinsic Value for Stock Options Outstanding and Exercisable | The aggregate intrinsic value for stock options outstanding and for stock options exercisable (the difference between the Company’s closing stock price on the last trading day of the period and the exercise price of the options, multiplied by the number of in-the-money stock options) is presented below: Twenty-six weeks ended August 1, August 2, 2015 2014 ($ in millions) Outstanding $ 173 $ 130 Outstanding and exercisable $ 152 $ 112 Vested and expected to vest $ 172 $ 130 |
Information about Stock Options Outstanding and Exercisable | The following table summarizes information about stock options outstanding and exercisable at August 1, 2015: Options Outstanding Options Exercisable Weighted- Weighted- Average Average Weighted-Average Range of Exercise Number Remaining Exercise Number Exercise Prices Outstanding Contractual Life Price Exercisable Price (in thousands, except prices per share and contractual life) $ 9.85 to $18.80 872 4.1 $ 13.28 872 $ 13.28 $18.84 to $24.75 1,054 5.1 $ 19.68 1,054 $ 19.68 $30.92 to $36.59 1,249 7.0 $ 32.79 1,075 $ 32.56 $45.08 to $62.11 1,353 9.1 $ 54.10 304 $ 45.38 4,528 6.6 $ 32.35 3,305 $ 24.54 |
Restricted Share and Unit Activity | Restricted share and RSU activity for the twenty-six weeks ended August 1, 2015 is summarized as follows: Weighted-Average Number of Shares Grant Date Fair (in thousands, except price per share) Nonvested at the beginning of the year 1,038 $ 37.96 Granted 126 61.61 Vested (312) 32.33 Expired or cancelled (63) 38.10 Nonvested at August 1, 2015 789 $ 43.95 Aggregate value ($in millions) $ 35 Weighted-average remaining contractual life (in years) 1.3 years |
Segment Information - Additiona
Segment Information - Additional Information (Detail) - Aug. 02, 2014 - USD ($) $ in Millions | Total | Total |
Segment Reporting Information [Line Items] | ||
Impairment and other charges | $ 1 | |
CCS Trademarks [Member] | ||
Segment Reporting Information [Line Items] | ||
Impairment and other charges | $ 2 | $ 2 |
Sales and Division Operating Re
Sales and Division Operating Results for Reportable Segments (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Aug. 01, 2015 | Aug. 02, 2014 | Aug. 01, 2015 | Aug. 02, 2014 | ||
Segment Reporting Information [Line Items] | |||||
Sales | $ 1,695 | $ 1,641 | $ 3,611 | $ 3,509 | |
Division profit | 203 | 163 | 510 | 438 | |
Less: Corporate expense, net | 17 | 19 | 34 | 40 | |
Operating profit | 186 | 144 | 476 | 398 | |
Other income | [1] | 0 | 1 | 1 | 2 |
Interest expense, net | 1 | 1 | 2 | 2 | |
Income before income taxes | 185 | 144 | 475 | 398 | |
Athletic Stores | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 1,503 | 1,468 | 3,184 | 3,125 | |
Operating results before restructuring income | [2] | 176 | 149 | 443 | 396 |
Direct-to-Customers | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 192 | 173 | 427 | 384 | |
Operating results before restructuring income | [3] | $ 27 | $ 14 | $ 67 | $ 42 |
[1] | Other income includes non-operating items, such as lease termination gains, royalty income, and the changes in fair value, premiums paid, and realized gains associated with foreign currency option contracts. | ||||
[2] | Included in the twenty-six weeks ended August 2, 2014 is a non-cash impairment charge of $1 million to fully write down the remaining value of the tradename related to the Company’s stores in the Republic of Ireland. | ||||
[3] | Included in both the thirteen and twenty-six weeks ended August 2, 2014 is a $2 million impairment charge related to the CCS tradename. |
Goodwill (Detail)
Goodwill (Detail) - USD ($) $ in Millions | Aug. 01, 2015 | Jan. 31, 2015 | Aug. 02, 2014 | |
Goodwill [Line Items] | ||||
Goodwill | $ 156 | $ 157 | [1] | $ 162 |
Athletic Stores | ||||
Goodwill [Line Items] | ||||
Goodwill | 17 | 17 | 20 | |
Direct-to-Customers | ||||
Goodwill [Line Items] | ||||
Goodwill | $ 139 | $ 140 | $ 142 | |
[1] | The balance sheet at January 31, 2015 has been derived from the previously reported audited financial statements at that date, but does not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in Foot Locker, Inc.'s Annual Report on Form 10-K for the year ended January 31, 2015. |
Other Intangible Assets, net -
Other Intangible Assets, net - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Aug. 01, 2015 | Aug. 02, 2014 | Aug. 01, 2015 | Aug. 02, 2014 | Jan. 31, 2015 | |
Changes in Amortizing intangible assets [Line Items] | |||||
Amortization expense | $ 1 | $ 1 | $ 2 | $ 3 | |
Foreign Currency Transaction Gain (Loss), before Tax | $ (1) | ||||
Other Intangible Assets [Member] | |||||
Changes in Amortizing intangible assets [Line Items] | |||||
Fully Amortized Customer Relationship | $ 21 |
Other Intangible Assets, net (D
Other Intangible Assets, net (Detail) - USD ($) $ in Millions | Aug. 01, 2015 | Jan. 31, 2015 | Aug. 02, 2014 | ||||
Intangible Assets by Major Class [Line Items] | |||||||
Amortized intangible assets, Gross value | [1],[2] | $ 149 | $ 156 | $ 181 | |||
Amortized intangible assets, Accum. amort. | [1],[2] | (127) | (132) | (151) | |||
Amortized intangible assets, Net value | [1],[2] | 22 | 24 | 30 | |||
Indefinite life intangible assets, Net Value | 24 | [2] | 25 | 31 | [2] | ||
Other intangible assets, net | 46 | 49 | [3] | 61 | |||
Lease acquisition costs | |||||||
Intangible Assets by Major Class [Line Items] | |||||||
Amortized intangible assets, Gross value | [1],[2] | 121 | 128 | 152 | |||
Amortized intangible assets, Accum. amort. | [1],[2] | (111) | (116) | (136) | |||
Amortized intangible assets, Net value | [1],[2] | 10 | 12 | 16 | |||
Trademarks | |||||||
Intangible Assets by Major Class [Line Items] | |||||||
Amortized intangible assets, Gross value | [1],[2] | 21 | 21 | 21 | |||
Amortized intangible assets, Accum. amort. | [1],[2] | (12) | (12) | (11) | |||
Amortized intangible assets, Net value | [1],[2] | 9 | 9 | 10 | |||
Favorable leases | |||||||
Intangible Assets by Major Class [Line Items] | |||||||
Amortized intangible assets, Gross value | [1],[2] | 7 | 7 | 8 | |||
Amortized intangible assets, Accum. amort. | [1],[2] | (4) | (4) | (4) | |||
Amortized intangible assets, Net value | [1],[2] | 3 | 3 | 4 | |||
Runners Point Group trademarks | |||||||
Intangible Assets by Major Class [Line Items] | |||||||
Indefinite life intangible assets, Net Value | [2] | 24 | 25 | 30 | |||
Other trademarks | |||||||
Intangible Assets by Major Class [Line Items] | |||||||
Indefinite life intangible assets, Net Value | [2] | $ 0 | $ 0 | $ 1 | |||
[1] | During 2014, the Company exited the CCS e-commerce business; as such, the fully amortized customer relationship intangible of $21 million was removed from the amounts presented above for all periods presented. | ||||||
[2] | The change in the ending balances reflects the effect of foreign currency fluctuations due primarily to the movements of the euro in relation to the U.S. dollar. | ||||||
[3] | The balance sheet at January 31, 2015 has been derived from the previously reported audited financial statements at that date, but does not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in Foot Locker, Inc.'s Annual Report on Form 10-K for the year ended January 31, 2015. |
Amortization Expense (Detail)
Amortization Expense (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 01, 2015 | Aug. 02, 2014 | Aug. 01, 2015 | Aug. 02, 2014 | |
Goodwill And Intangible Assets Disclosure [Line Items] | ||||
Amortization expense | $ 1 | $ 1 | $ 2 | $ 3 |
Estimated Future Amortization E
Estimated Future Amortization Expense for Finite Lived Intangibles (Detail) $ in Millions | Aug. 01, 2015USD ($) |
Expected Amortization Expense [Line Items] | |
Remainder of 2015 | $ 2 |
2,016 | 4 |
2,017 | 3 |
2,018 | 3 |
2,019 | 3 |
2,020 | $ 2 |
Accumulated Other Comprehensi36
Accumulated Other Comprehensive Loss, Net of Tax (Detail) - USD ($) $ in Millions | Aug. 01, 2015 | Jan. 31, 2015 | Aug. 02, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Foreign currency translation adjustments | $ (97) | $ (75) | $ 57 | |
Cash flow hedges | (4) | (3) | (2) | |
Unrecognized pension cost and postretirement benefit | (236) | (240) | (236) | |
Unrealized loss on available-for-sale security | (1) | (1) | (1) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Total | $ (338) | $ (319) | [1] | $ (182) |
[1] | The balance sheet at January 31, 2015 has been derived from the previously reported audited financial statements at that date, but does not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in Foot Locker, Inc.'s Annual Report on Form 10-K for the year ended January 31, 2015. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss (Detail) $ in Millions | 6 Months Ended | |
Aug. 01, 2015USD ($) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | [1] | $ (319) |
OCI before reclassification | (23) | |
Reclassified from AOCL | 4 | |
Other comprehensive income/(loss) | (19) | |
Ending Balance | (338) | |
Foreign currency translation adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (75) | |
OCI before reclassification | (22) | |
Reclassified from AOCL | 0 | |
Other comprehensive income/(loss) | (22) | |
Ending Balance | (97) | |
Cash flow hedges | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (3) | |
OCI before reclassification | (1) | |
Reclassified from AOCL | 0 | |
Other comprehensive income/(loss) | (1) | |
Ending Balance | (4) | |
Items related to pension and postretirement benefits | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (240) | |
OCI before reclassification | 0 | |
Reclassified from AOCL | 4 | |
Other comprehensive income/(loss) | 4 | |
Ending Balance | (236) | |
Unrealized loss on available-for- sale security | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (1) | |
OCI before reclassification | 0 | |
Reclassified from AOCL | 0 | |
Other comprehensive income/(loss) | 0 | |
Ending Balance | $ (1) | |
[1] | The balance sheet at January 31, 2015 has been derived from the previously reported audited financial statements at that date, but does not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in Foot Locker, Inc.'s Annual Report on Form 10-K for the year ended January 31, 2015. |
Reclassifications from Accumula
Reclassifications from Accumulated Other Comprehensive Loss (Detail) $ in Millions | 6 Months Ended |
Aug. 01, 2015USD ($) | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |
Net periodic benefit cost | $ 6 |
Income tax benefit | (2) |
Net of tax | 4 |
Pension Benefits | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |
Net periodic benefit cost | 7 |
Postretirement Benefits | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |
Net periodic benefit cost | $ (1) |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Aug. 01, 2015 | Aug. 02, 2014 | Aug. 01, 2015 | |
Derivatives Designated as Hedging Instruments | Forward foreign exchange contracts | |||
Derivative [Line Items] | |||
Notional value of contracts outstanding | $ 82 | $ 82 | |
Derivative contracts maturity date | 2016-07 | ||
Amount Of Hedge Loss Included in AOCL | 4 | ||
Increase Decrease In Fair Value Of Hedge Positions | (1) | ||
Derivatives not designated as hedging instruments | Forward foreign exchange contracts | |||
Derivative [Line Items] | |||
Notional value of contracts outstanding | $ 105 | 105 | |
Derivative contracts maturity date | 2015-11 | ||
Fair Value, Option, Changes in Fair Value, Gain (Loss) | $ 1 | $ 1 | 2 |
Derivatives not designated as hedging instruments | Diesel fuel forward and option contracts | |||
Derivative [Line Items] | |||
Notional value of contracts outstanding | $ 2 | $ 2 | |
Derivative contracts maturity date | 2016-05 |
Fair Value Derivative Contracts
Fair Value Derivative Contracts on Gross Basis by Type of Contract (Detail) - USD ($) $ in Millions | Aug. 01, 2015 | Jan. 31, 2015 | Aug. 02, 2014 |
Derivatives Designated as Hedging Instruments | |||
Derivative [Line Items] | |||
Fair value of derivative liability | $ 5 | $ 4 | $ 3 |
Derivatives Designated as Non-Hedging Instruments | |||
Derivative [Line Items] | |||
Fair value of derivative asset | 1 | 0 | 0 |
Fair value of derivative liability | $ 0 | $ 1 | $ 0 |
Assets and Liabilities Measured
Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Aug. 01, 2015 | Jan. 31, 2015 | Aug. 02, 2014 |
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Assets measured at fair value on recurring basis | $ 0 | $ 0 | $ 0 |
Liabilities measured at fair value on recurring basis | 0 | 0 | 0 |
Level 1 | Auction rate security | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Assets measured at fair value on recurring basis | 0 | 0 | 0 |
Level 1 | Forward foreign exchange contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Assets measured at fair value on recurring basis | 0 | 0 | 0 |
Liabilities measured at fair value on recurring basis | 0 | 0 | 0 |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Assets measured at fair value on recurring basis | 7 | 6 | 6 |
Liabilities measured at fair value on recurring basis | 5 | 5 | 3 |
Level 2 | Auction rate security | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Assets measured at fair value on recurring basis | 6 | 6 | 6 |
Level 2 | Forward foreign exchange contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Assets measured at fair value on recurring basis | 1 | 0 | 0 |
Liabilities measured at fair value on recurring basis | 5 | 5 | 3 |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Assets measured at fair value on recurring basis | 0 | 0 | 0 |
Liabilities measured at fair value on recurring basis | 0 | 0 | 0 |
Level 3 | Auction rate security | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Assets measured at fair value on recurring basis | 0 | 0 | 0 |
Level 3 | Forward foreign exchange contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Assets measured at fair value on recurring basis | 0 | 0 | 0 |
Liabilities measured at fair value on recurring basis | $ 0 | $ 0 | $ 0 |
Carrying Value and Estimated Fa
Carrying Value and Estimated Fair Value of Long-Term Debt (Detail) - USD ($) $ in Millions | Aug. 01, 2015 | Jan. 31, 2015 | Aug. 02, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Carrying value | $ 132 | $ 134 | $ 137 |
Fair value | $ 157 | $ 163 | $ 163 |
Earnings Per Share - Additional
Earnings Per Share - Additional information (Detail) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 01, 2015 | Aug. 02, 2014 | Aug. 01, 2015 | Aug. 02, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Contingently Issuable Shares Excluded From Diluted Earnings Per Share | 0.4 | 0.4 | ||
Employee Stock Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.7 | 0.8 | 0.6 | 0.5 |
Basic and Diluted Weighted-Aver
Basic and Diluted Weighted-Average Number of Common Shares Outstanding (Detail) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 01, 2015 | Aug. 02, 2014 | Aug. 01, 2015 | Aug. 02, 2014 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Weighted-average common shares outstanding | 139.6 | 144.5 | 139.8 | 145 |
Effect of Dilution: | ||||
Stock options and awards | 1.7 | 1.9 | 1.9 | 2 |
Weighted-average common shares assuming dilution | 141.3 | 146.4 | 141.7 | 147 |
Pension and Postretirement Pl45
Pension and Postretirement Plans - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Oct. 31, 2015 | Aug. 01, 2015 | Aug. 01, 2015 | |
Pension And Postretirement Plans [Line Items] | |||
Employer's contribution | $ 0 | $ 0 | |
U.S. Qualified Pension Plan | Subsequent Event | |||
Pension And Postretirement Plans [Line Items] | |||
Employer's contribution | $ 4 |
Components of Net Periodic Pens
Components of Net Periodic Pension Benefit Cost and Net Postretirement Benefit Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 01, 2015 | Aug. 02, 2014 | Aug. 01, 2015 | Aug. 02, 2014 | |
Pension Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 4 | $ 4 | $ 8 | $ 8 |
Interest cost | 6 | 7 | 12 | 14 |
Expected return on plan assets | (10) | (9) | (19) | (19) |
Amortization of net loss (gain) | 4 | 3 | 7 | 7 |
Net benefit expense (income) | 4 | 5 | 8 | 10 |
Postretirement Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 1 | 0 | 1 | 0 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of net loss (gain) | (1) | 0 | (1) | (1) |
Net benefit expense (income) | $ 0 | $ 0 | $ 0 | $ (1) |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 01, 2015 | Aug. 02, 2014 | Aug. 01, 2015 | Aug. 02, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cash received from options exercised | $ 15 | $ 3 | $ 38 | $ 13 |
Tax benefit realized from options exercised | 11 | $ 1 | 25 | $ 5 |
Restricted Stock and Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost, net of estimated forfeitures | $ 13 | $ 13 | ||
Awards vesting period description | Generally, awards fully vest after the passage of time, typically three years. However, RSU awards made in connection with the Companys long-term incentive program vest after the attainment of both certain performance metrics and the passage of time | |||
Weighted-average grant-date fair value per share | $ 61.61 | $ 45.24 | ||
Total value of awards for which restrictions lapsed | $ 10 | $ 14 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 581,713 | 742,514 | 581,713 | 742,514 |
Nonvested stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost, net of estimated forfeitures | $ 11 | $ 11 | ||
Unrecognized compensation cost related to nonvested stock options, weighted-average period expected to be recognized | 1 year 7 months 6 days |
Total compensation expense incl
Total compensation expense included in SG&A and the related tax benefits recognized (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 01, 2015 | Aug. 02, 2014 | Aug. 01, 2015 | Aug. 02, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total share-based compensation expense | $ 5 | $ 6 | $ 11 | $ 12 |
Tax benefit recognized | 1 | 2 | 3 | 4 |
Excess income tax benefit from settled equity-classified share-based awards reported as a cash flow from financing activities | 24 | 9 | ||
Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Allocated Share-based Compensation Expense | 3 | 3 | 6 | 6 |
Restricted Stock and Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Allocated Share-based Compensation Expense | $ 2 | $ 3 | $ 5 | $ 6 |
Assumption used to Compute Shar
Assumption used to Compute Share-Based Compensation Expense (Detail) - $ / shares | 6 Months Ended | |
Aug. 01, 2015 | Aug. 02, 2014 | |
Stock Option Plans | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average risk free rate of interest | 1.51% | 2.11% |
Expected volatility | 30.00% | 39.00% |
Weighted-average expected award life (in years) | 6 years | 6 years 1 month 6 days |
Dividend yield | 1.60% | 2.00% |
Weighted-average fair value | $ 16.01 | $ 14.88 |
Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average risk free rate of interest | 0.19% | 0.15% |
Expected volatility | 24.00% | 24.00% |
Weighted-average expected award life (in years) | 1 year | 1 year |
Dividend yield | 1.70% | 2.20% |
Weighted-average fair value | $ 9.53 | $ 6.6 |
Options Granted under Stock Opt
Options Granted under Stock Option Plans (Detail) - Aug. 01, 2015 - $ / shares shares in Thousands | Total |
Number of Shares | |
Options outstanding at beginning of year | 5,569 |
Granted | 682 |
Exercised | (1,672) |
Expired or cancelled | (51) |
Options outstanding at end of year | 4,528 |
Options exercisable at end of year | 3,305 |
Options vested and expected to vest | 4,479 |
Options available for future grant at end of year | 13,104 |
Weighted-Average Term | |
Options outstanding at end of year | 6 years 7 months 6 days |
Options exercisable at end of year | 5 years 8 months 12 days |
Options vested and expected to vest | 6 years 7 months 6 days |
Weighted-Average Exercise Price | |
Options outstanding at beginning of year | $ 25.89 |
Granted | 62.11 |
Exercised | 22.49 |
Expired or cancelled | 48.2 |
Options outstanding at end of year | 32.35 |
Options exercisable at end of year | 24.54 |
Options vested and expected to vest | $ 32.09 |
Total Intrinsic Value of Option
Total Intrinsic Value of Options Exercised (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 01, 2015 | Aug. 02, 2014 | Aug. 01, 2015 | Aug. 02, 2014 | |
Intrinsic value of stock options | ||||
Exercised | $ 29 | $ 4 | $ 65 | $ 15 |
Aggregate Intrinsic Value for S
Aggregate Intrinsic Value for Stock Options Outstanding and Exercisable (Detail) - USD ($) $ in Millions | Aug. 01, 2015 | Aug. 02, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding | $ 173 | $ 130 |
Outstanding and exercisable | 152 | 112 |
Vested and expected to vest | $ 172 | $ 130 |
Information about Stock Options
Information about Stock Options Outstanding and Exercisable (Detail) - $ / shares shares in Thousands | 6 Months Ended | |
Aug. 01, 2015 | Jan. 31, 2015 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding, Number of Shares | 4,528 | 5,569 |
Options Outstanding, Weighted-Average Remaining Contractual Life | 6 years 7 months 6 days | |
Options Outstanding, Weighted-Average Exercise Price | $ 32.35 | $ 25.89 |
Options Exercisable, Number of Shares | 3,305 | |
Options Exercisable, Weighted-Average Exercise Price | $ 24.54 | |
$ 9.85 to $18.80 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding, Number of Shares | 872 | |
Options Outstanding, Weighted-Average Remaining Contractual Life | 4 years 1 month 6 days | |
Options Outstanding, Weighted-Average Exercise Price | $ 13.28 | |
Options Exercisable, Number of Shares | 872 | |
Options Exercisable, Weighted-Average Exercise Price | $ 13.28 | |
$18.84 to $24.75 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding, Number of Shares | 1,054 | |
Options Outstanding, Weighted-Average Remaining Contractual Life | 5 years 1 month 6 days | |
Options Outstanding, Weighted-Average Exercise Price | $ 19.68 | |
Options Exercisable, Number of Shares | 1,054 | |
Options Exercisable, Weighted-Average Exercise Price | $ 19.68 | |
$30.92 to $36.59 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding, Number of Shares | 1,249 | |
Options Outstanding, Weighted-Average Remaining Contractual Life | 7 years | |
Options Outstanding, Weighted-Average Exercise Price | $ 32.79 | |
Options Exercisable, Number of Shares | 1,075 | |
Options Exercisable, Weighted-Average Exercise Price | $ 32.56 | |
$45.08 to $62.11 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding, Number of Shares | 1,353 | |
Options Outstanding, Weighted-Average Remaining Contractual Life | 9 years 1 month 6 days | |
Options Outstanding, Weighted-Average Exercise Price | $ 54.1 | |
Options Exercisable, Number of Shares | 304 | |
Options Exercisable, Weighted-Average Exercise Price | $ 45.38 |
Changes in Nonvested Options (D
Changes in Nonvested Options (Detail) - Aug. 01, 2015 - Restricted Stock Units - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | Total |
Number of Shares | |
Nonvested, Beginning Balance | 1,038 |
Granted | 126 |
Vested | (312) |
Expired or cancelled | (63) |
Nonvested, Ending Balance | 789 |
Aggregate value (in millions) | $ 35 |
Weighted-average remaining contractual life (in years) | 1 year 3 months 18 days |
Weighted-Average Grant Date Fair Value per Share | |
Nonvested, Beginning Balance | $ 37.96 |
Granted | 61.61 |
Vested | 32.33 |
Expired or cancelled | 38.1 |
Nonvested, Ending Balance | $ 43.95 |