Summary of Significant Accounting Policies (Tables)

12 Months Ended

Jan. 28, 2023

Significant Accounting Policies [Line Items]

Activity of Gift Card Liability Balance

The table below presents the activity of our gift card liability balance:

	January 28,		January 29,
($ in millions)	2023		2022
Gift card liability at beginning of year	$	46	$	41
Liabilities acquired - WSS		—		1
Redemptions		(259)		(249)
Breakage recognized in sales		(17)		(17)
Activations		266		271
Foreign currency fluctuations		—		(1)
Gift card liability	$	36	$	46

Costs Included as Component of Selling, General and Administrative Expenses

($ in millions)	2022		2021		2020
Minority investment in Retailors, Ltd.	$	(61)	$	77	$	—
Share of earnings (losses) related to other minority investments		1		3		(1)
Team Sales divestiture		19		—		—
Minority investment in GOAT		—		290		190
Pension and postretirement net benefit income, excluding service cost		—		7		5
Other		(1)		7		(2)
Total other income / (expense), net	$	(42)	$	384	$	192

Computation of Basic and Diluted Earnings Per Share

The computation of basic and diluted EPS is as follows:

(in millions, except per share data)	2022		2021		2020
Income from continuing operations	$	344	$	892	$	323
Net loss attributable to noncontrolling interests		1		1		—
Income from continuing operations attributable to Foot Locker, Inc.		345		893		323
Net loss from discontinued operations, net of tax		(3)		—		—
Net income attributable to Foot Locker, Inc.	$	342	$	893	$	323
Weighted-average common shares outstanding		94.3		102.5		104.3
Dilutive effect of potential common shares		1.2		1.3		0.8
Weighted-average common shares outstanding assuming dilution		95.5		103.8		105.1

1. Summary of Significant Accounting Policies (continued)

(in millions, except per share data)	2022		2021		2020
Basic earnings per share
Earnings per share from continuing operations attributable to Foot Locker, Inc.	$	3.66	$	8.72	$	3.10
Net loss per share from discontinued operations, net of tax		(0.04)		—		—
Net earnings per share attributable to Foot Locker, Inc.	$	3.62	$	8.72	$	3.10
Diluted earnings per share
Earnings per share from continuing operations attributable to Foot Locker, Inc.	$	3.62	$	8.61	$	3.08
Net loss per share from discontinued operations, net of tax		(0.04)		—		—
Net earnings per share attributable to Foot Locker, Inc.	$	3.58	$	8.61	$	3.08
Anti-dilutive share-based awards excluded from diluted calculation		2.7		1.8		2.5

Reconciliation of Cash and Cash Equivalents

The following table provides the reconciliation of cash, cash equivalents, and restricted cash, as reported on our consolidated statements of cash flows:

	January 28,		January 29,		January 30,
($ in millions)	2023		2022		2021
Cash and cash equivalents (1)	$	536	$	804	$	1,680
Restricted cash included in other current assets		13		8		8
Restricted cash included in other non-current assets		33		38		30
Cash, cash equivalents, and restricted cash	$	582	$	850	$	1,718

(1) Includes cash equivalents of $41 million, $48 million, and $503 million for the years ended January 28, 2023, January 29, 2022, and February 1, 2020, respectively.

Estimated Useful Lives

Depreciation and amortization are computed on a straight-line basis over the following estimated useful lives:

Buildings	Maximum of 50 years
Store leasehold improvements	Shorter of the asset useful life or expected term of the lease
Furniture, fixtures, and equipment	3‑10 years
Software	2‑5 years

Advertising Expense [Member]

Significant Accounting Policies [Line Items]

Costs Included as Component of Selling, General and Administrative Expenses

Advertising costs, including digital advertising, which are included as a component of SG&A, were as follows:

($ in millions)	2022		2021		2020
Advertising expenses	$	135	$	113	$	69
Digital advertising expenses		87		110		89
Cooperative advertising reimbursements		(37)		(29)		(14)
Net advertising expense	$	185	$	194	$	144