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FTAR
FOOTSTAR INC
false
Smaller Reporting Company
2011
10-Q
2011-10-01
0001011308
--01-01
<div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">
4.           Mahwah
Real Estate</font></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The
Company has been marketing its Mahwah Real Estate since May 5,
2007. As of October 1, 2011, the Company estimates that the fair
value of the real estate, less estimated closing costs, is
approximately $6.2 million. This estimate is based on unobservable
inputs and as such the actual amount ultimately realized upon
disposition of this real estate could be materially different.
There was no change in this value from January 1, 2011 to October
1, 2011.</font></div>
</div>
<div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">
6.           Commitments
and Contingencies</font></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: -0.75pt" align="left"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">
Litigation Matters</font></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The
Company is involved in various and routine litigation matters,
which arise through the normal course of business.  Management
believes that the resolution of these matters will not have a
material adverse effect on the final liquidation of the
Company.  While it firmly maintains that all pending claims
are meritless, the Company will, however, continue to expend costs
as it vigorously defends against these claims.</font></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">
Thom McAn</font></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">In
connection with the Company’s discontinued operations in
1995, the Company entered into a sublease formerly occupied by its
Thom McAn stores. The lease expires effective February 1,
2014. The obligation under the sublease is $1.8 million as of the
date of this report, although the Company believes that there
has been a novation of its obligations under such lease and may in
the future bring litigation to have a court finally determine such
issue. If we are unable to resolve this matter prior to the
conclusion of our statutory dissolution period on May 5, 2012, we
may be required to fund a Liquidating Trust with $1.5 million (the
obligation amount from May 2012 through February 2014) until such
time as the matter is concluded. At this time, the Company has not
recorded a liability relating to this commitment as the probability
of an unfavorable outcome is remote.</font></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">
Upsher-Smith Litigation</font></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">In
October 2008, CPEX and Auxilium received notice that Upsher-Smith
Laboratories, Inc. (“Upsher-Smith”) had filed an
Abbreviated New Drug Application, or ANDA containing a
paragraph IV certification in which Upsher-Smith certified
that it believes its proposed generic version of Testim does not
infringe CPEX’s patent, U.S. Patent No. 7,320,968
(“the ’968 Patent”). The ’968 Patent claims
a method for maintaining effective blood serum testosterone levels
for treating a hypogonadal male, and will expire in January 2025.
The ’968 Patent is listed for Testim<font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: text-top">®</font>
in <font style="FONT-STYLE: italic; DISPLAY: inline">Approved Drug
Products with Therapeutic Equivalence Evaluations</font> (commonly
known as the Orange Book), published by the U.S. Food and Drug
Administration (“FDA”). Upsher-Smith’s
paragraph IV certification sets forth allegations that the
’968 Patent will not be infringed by the manufacture, use, or
sale of its proposed generic product. On December 4, 2008,
CPEX and Auxilium filed a Hatch-Waxman infringement lawsuit in the
United States District Court for the District of Delaware
(“the Court”) against Upsher-Smith seeking injunctive
and declaratory relief. The Court docketed this case as Civil
Action No. 08-908-SLR. In June 2009, Upsher-Smith amended its
answer to the complaint to include a defense and counterclaim of
invalidity of the ’968 Patent, which CPEX and Auxilium have
denied. A patent issued by the U.S. Patent and Trademark
Office (USPTO), such as the ’968 Patent, is presumed valid.
As of November 18, 2011, the lawsuit remains pending; however, the
trial date has been removed from the Court’s
calendar.</font></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">CPEX
has filed continuation and divisional applications with the USPTO
relating to the ’968 Patent. Six patents, U.S. Patent
Nos. 7,608,605; 7,608,606; 7,608,607; 7,608,608; 7,608,609; and
7,608,610, were issued from these applications, which may provide
further market protection. Each of these six patents has been
listed in the Orange Book with respect to Testim<font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: text-top">®</font>.</font></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">CPEX
and its affiliates will vigorously pursue the Hatch-Waxman patent
infringement lawsuit. However, if CPEX is unsuccessful in obtaining
an injunction to keep Upsher-Smith’s proposed version of
Testim<font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: text-top">®</font>
off the market until the patent protection expires, or in defending
the ’968 Patent covering Testim<font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: text-top">®</font>,
sales of Testim<font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: text-top">®</font>
and  royalties relating to Testim<font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: text-top">®</font>
sales could be materially reduced.</font></div>
</div>
<div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">
8.           Letters
of Credit</font></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">In
the past, we have entered into standby letters of credit to secure
certain obligations, including insurance programs and duties
related to the import of our merchandise. These standby letters of
credit, before balances were drawn down by the beneficiaries, were
cash collateralized at 103% of face value, plus a reserve for
future fees (the “L/C Cash Collateral”), with Bank of
America as issuing bank. In connection therewith, Bank of America
had been granted a first priority security interest and lien upon
the L/C Cash Collateral. On May 24, 2010, the Bank of America N.A.
L/C Cash Collateral account terminated by its terms.</font></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">On
May 10, 2010, $1.8 million, representing 100% of the amounts for
which letters of credit have been provided, were drawn down by the
beneficiaries. The Company does not anticipate recovery of $1.5
million of this amount for its Workers Compensation insurance
programs. As of January 1, 2011 and October 1, 2011, the remaining
balance that is being held by the beneficiaries totals $1.5 million
and $1.2 million, respectively, is recorded as Prepaid Expenses and
included as a liability in Accrued Expenses. On July 26, 2011, the
Company recovered $.25 million from our Workers Compensation
insurance programs.</font></div>
</div>
<div>
<div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: left">
<font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
2.  </font><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Basis
of Presentation</font></div>
</div>
<div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">
Basis of Presentation</font></div>
<div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
consolidated financial statements have been prepared by the Company
without audit in accordance with the rules and regulations of the
Securities and Exchange Commission (the “SEC”), and
should be read in conjunction with the audited Consolidated
Financial Statements previously filed on the Company’s Form
10-K for the fiscal year ended January 1, 2011.  In the
opinion of management, the statements reflect all adjustments
necessary for a fair presentation of the results of interim
periods. </font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Certain
information and note disclosures, normally included in financial
statements prepared in accordance with GAAP, which are not required
for interim purposes, have been condensed or omitted.  The
results for any interim period are not necessarily indicative of
the results to be expected for a full year.</font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
conversion from the going concern to liquidation basis of
accounting required management to make significant estimates and
judgments.  In order to record assets at estimated net
realizable value and liabilities at estimated settlement amounts
under the liquidation basis of accounting, the Company recorded its
assets and liabilities at fair value as of May 6, 2009, the date of
adoption of the liquidation basis of accounting.</font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
consolidated financial statements for the nine and three months
ended October 1, 2011 were prepared on the liquidation basis of
accounting, which contemplates realization of assets and
satisfaction of liabilities in the normal course of business. 
As a result of the shareholder’ approval of the Plan of
Dissolution, the Company adopted the liquidation basis of
accounting effective May 6, 2009.  This basis of accounting is
considered appropriate when, among other things, liquidation of a
company is probable and the net realizable values of assets are
reasonably determinable.  Under this basis of accounting,
assets are valued at their net realizable values and liabilities
are stated at their estimated settlement amounts. As described
further in Note 1, the Company’s investment in FCB Holdings
has been reflected at its estimated net realizable
value.</font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">
Principles of Consolidation</font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
consolidated financial statements include the accounts of the
Company and its wholly-owned subsidiaries and majority-owned
subsidiary companies. Intercompany balances and transactions
between the entities have been eliminated. For simplicity of
presentation, these consolidated financial statements are referred
to as financial statements herein.</font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">
Accrued Cost of Liquidation</font></div>
<div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
Company will continue to incur certain operating costs and receive
income on its investments throughout the liquidation
period.  On a regular basis, we will evaluate our
assumptions, judgments and estimates that can have a significant
impact on our reported net assets in liquidation based on the most
recent information available to us, and when necessary make changes
accordingly.  Actual costs and income may differ from our
estimates, which might reduce or increase the net assets available
in liquidation to be distributed to stockholders. During the period
July 3, 2011 to October 1, 2011, the Company recorded an increase
in liquidating expense accrual of $0.6 million, related to
Compensation, General and Administrative and Headquarters Building
Costs, received cash proceeds of $0.1 million from miscellaneous
cash receipts and increase in Other Receivables of $0.3 million
which resulted from a refund received in November 2011 relating to
prior year insurance policies. Additionally, the Company has a
receivable from FCB Holdings of approximately $0.8 million and an
increase in the estimated net realizable value of FCB Holdings of
$0.3 million. During the period January 2, 2011 to October 1, 2011,
the Company recorded a reduction in liquidating expense accruals of
$0.1 million, related to reduced Compensation, General and
Administrative and Headquarters Building Costs and received cash
proceeds of $0.6 million from miscellaneous cash
receipts.</font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
Company may make further distributions to its stockholders of its
remaining cash and/or assets, less any amount applied to or
reserved for actual or contingent liabilities (which may be
deposited in a liquidating trust).  The amounts reserved
will be based on a determination by the Board of Directors, derived
from consultation with management and outside experts, if the Board
of Directors determines that it is advisable to retain such
experts, and a review of, among other things, our estimated
contingent liabilities and our estimated ongoing expenses,
including, but not limited to, payroll, legal expenses, regulatory
filings and other miscellaneous expenses.  Each
shareholder will receive its pro rata share of each distribution
based on the number of shares held on the record date for such
distribution. If at the end of the statutory three-year dissolution
period on May 5, 2012, the Company has unsettled liabilities as
more fully discussed in Note 6, it may determine to transfer its
remaining assets and liabilities to a liquidating trust. As
discussed in Note 1, the Company is considering various options to
permit stockholders to continue to participate in earnings
resulting from the CPEX Transaction, if any, after Footstar is
completely dissolved. The determination of which option to proceed
with would likely affect the amount of any further
distributions.</font></div>
</div>
<div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">10.
Subsequent Events</font></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Subsequent
to October 1, 2011, Footstar collected its $0.8 million outstanding
receivable from FCB I Holdings Inc.</font></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">In
November 2011, Footstar Corp entered into a 5-year lease for
executive office space in New York, New York at an approximate
annual expense of $97,000.</font></div>
</div>
<div>
<div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: left">
<font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
1.  </font><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Nature
of Company</font></div>
</div>
<div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Footstar,
Inc. (“Footstar”, the “Company”,
“we”, “us” or “our”), a
Delaware corporation, is a holding company that is currently
winding down pursuant to the Amended Plan of Complete Dissolution
and Liquidation of Footstar, Inc. (the “Plan of
Dissolution”), which was adopted by Footstar’s
stockholders on May 5, 2009.</font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Until
the time it discontinued regular business operations in December
2008, Footstar had operated its business since 1961 through its
subsidiaries primarily as a retailer selling family footwear
through licensed footwear departments in discount chains and
wholesale arrangements. Commencing March 2, 2004, Footstar and most
of its subsidiaries filed voluntary petitions for reorganization
under Chapter 11 of Title 11 of the United States Code in the
United States Bankruptcy Court. On February 7, 2006, Footstar
successfully emerged from bankruptcy. As part of its emergence from
bankruptcy, substantially all of Footstar’s business
operations were related to the agreement pursuant to which it
operated the licensed footwear departments in Kmart stores (the
“Kmart Agreement”).</font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Following
its emergence from bankruptcy, Footstar’s Board of Directors,
with the assistance of investment bankers, evaluated a number of
possible alternatives to enhance shareholder value, including
acquisition opportunities, changes in the terms of Footstar’s
principal contracts, including the early termination of or
extension of the Kmart Agreement, the payment of one or more
dividends, and the sale of our assets or stock. The Board of
Directors determined the best course of action was to operate under
the Kmart Agreement through its scheduled expiration at the end of
December 2008.</font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
May 2008, the Board of Directors determined that it was in the best
interests of Footstar and its stockholders to liquidate and
ultimately dissolve after the expiration of the Kmart Agreement in
December 2008 (and other miscellaneous contracts through the end of
such term) and to sell and/or dispose of any of Footstar’s
other remaining assets, including its owned property in Mahwah, New
Jersey, which contains its corporate headquarters building,
improvements and 21 acres of underlying land (collectively, the
“Mahwah Real Estate”). Under the terms of the Kmart
Agreement, Kmart was required to purchase from Footstar all of the
remaining inventory in the Kmart footwear departments at values set
forth in the Kmart Agreement. The process of selling the inventory
to Kmart commenced immediately after the expiration of the Kmart
Agreement on December 31, 2008. During 2009, Footstar received
approximately $55.3 million related to the liquidation sale of the
inventory from Kmart in full satisfaction of all of Kmart’s
obligations. Following the sale of the inventory to Kmart during
early 2009, Footstar’s principal remaining non-cash asset
consisted of the Mahwah Real Estate.</font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Also
in May 2008, the Board of Directors approved the Plan of Complete
Liquidation of Footstar, Inc. (the “Original Plan”),
which provided for the complete liquidation and ultimate
dissolution of Footstar after expiration of the Kmart Agreement in
December 2008.</font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
March 5, 2009, the Board of Directors adopted and approved the Plan
of Dissolution. The Plan of Dissolution reflects technical and
legal changes to the Original Plan consistent with the Delaware
General Corporate Law and was intended to modify, supersede and
replace the Original Plan in order to more efficiently facilitate
the liquidation and dissolution of Footstar in the best interests
of its stockholders. The Plan of Dissolution provides for the
complete, voluntary liquidation of the Company providing for the
sale of its remaining assets and the wind down of the
Company’s business as described in the Plan of Dissolution
and of the distributions of available cash to stockholders as
determined by the Board of Directors.  On May 5, 2009, at
a special meeting of stockholders of Footstar, the stockholders
adopted and approved the Plan of Dissolution and Footstar’s
dissolution. Subsequent to such time, the Board of Directors moved
forward with the liquidation, adopted the liquidation basis of
accounting (see Note 2), and worked toward selling all of
Footstar’s remaining assets and settling all
claims.</font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">
CPEX Pharmaceuticals, Inc. Acquisition</font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
August 2010, the Board of Directors was made aware of an
opportunity regarding a potential strategic transaction with CPEX
Pharmaceuticals, Inc. (“CPEX”), an emerging specialty
pharmaceutical company whose shares were traded on the Nasdaq
Capital Market under the symbol “CPEX”. Substantially
all of CPEX’s revenue is a royalty stream under a licensing
agreement with Auxilium Pharmaceuticals, Inc.
(“Auxilium”) pursuant to which CPEX licenses its
CPE-215 technology with a testosterone formulation to Auxilium and
receives royalties of 12% from Auxilium based upon Auxilium’s
sales of Testim. Testim is a gel for testosterone replacement
therapy, which is a formulation of CPEX’s technology with
testosterone. Auxilium is currently marketing Testim in the United
States, Europe and other countries. From August 2010 through
January 3, 2011, Footstar negotiated the terms of a strategic
merger transaction with CPEX pursuant to which CPEX would become a
majority-owned indirect subsidiary of Footstar (the “CPEX
Transaction”).</font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
January 3, 2011, CPEX, FCB I Holdings Inc., a Delaware corporation
(“FCB Holdings”), and FCB I Acquisition Corp., a
Delaware corporation and a wholly-owned subsidiary of FCB Holdings
(“FCB Acquisition”), entered into an Agreement and Plan
of Merger (the “CPEX Transaction
Agreement”).</font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
April 5, 2011, the parties completed the CPEX Transaction pursuant
to the CPEX Transaction Agreement. As a result of the CPEX
Transaction, FCB Acquisition merged with and into CPEX, with CPEX
surviving as a wholly owned subsidiary of FCB
Holdings.</font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
of October 1, 2011, FCB Holdings is owned 80.5% by Footstar Corp
and 19.5% by an unaffiliated investment holding company (the
“Investment Holding Company”). The Investment Holding
Company is affiliated with a minority Lender under the Term Loan
Agreement (as defined below). Footstar Corp is a wholly-owned
subsidiary of Footstar.</font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
to the CPEX Transaction, CPEX common stock that was outstanding
immediately prior to the effective time of the CPEX Transaction,
other than shares held by stockholders who properly exercised their
appraisal rights and shares owned by CPEX as treasury stock, was
automatically cancelled and converted into the right to receive
$27.25 in cash, without interest and less any applicable
withholding taxes.</font></div>
<div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
acquisition of CPEX was accounted for as a purchase under FASB ASC
Topic 805. The purchase price of $76.1 million (which includes cash
paid and liabilities assumed) has been allocated to the estimated
fair value of tangible and identifiable intangible assets acquired
and liabilities assumed. The excess of the purchase price over the
estimated fair value of tangible and identifiable assets acquired
and liabilities assumed has been allocated to Intangible Assets
based on management’s estimate and pending a final
valuation.</font></div>
<div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
April 5, 2011, in connection with the CPEX Transaction, FCB I LLC
(“Borrower”), a wholly owned subsidiary of FCB
Acquisition which became a wholly owned subsidiary of CPEX upon FCB
Acquisition’s merger with and into CPEX, borrowed
approximately $64 million under that certain Loan Agreement dated
as of January 3, 2011 (the “Term Loan Agreement”), by
and among Borrower, The Bank of New York Mellon, as Agent, and
certain Lenders from time to time party thereto, in the form of a
secured term loan to Borrower. The term loan under the Term Loan
Agreement bears interest at “LIBOR” plus 16% per annum
and matures on the earlier of January 3, 2026 or the date any of
CPEX’s patents that are associated with Testim<font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: text-top">®</font>,
a topical testosterone gel, expire, and contains customary events
of default for loans of such nature. As part of the Term Loan
Agreement, CPEX contributed to Borrower all of its intellectual
property rights in Testim<font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: text-top">®</font>
 and rights to the royalty stream pursuant to the license
agreement with Auxilium, and the loan is secured by
Borrower’s interest in all such rights. Repayment of the loan
is made through a waterfall arrangement whereby, if certain
conditions are met, the Testim royalty stream is distributed on a
quarterly basis as follows: first to pay certain fees and expenses
of Agent and Borrower, second to pay fees of the banks maintaining
the accounts associated with the loan, third to pay any expenses of
Agent used to protect the loan collateral and any other
unreimbursed fees or expenses of Agent or any Lender, fourth to
replenish any shortfall in the interest reserve (which is $2.5
million), fifth to pay interest due, sixth to pay 65% of the
remaining royalty funds to Agent for the benefit of the Lenders as
payment toward loan principal, and finally to Borrower for its
benefit.</font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
April 5, 2011, in connection with the CPEX Transaction, Footstar
Corp made a $3 million bridge loan to FCB Holdings under that
certain Loan Agreement dated as of April 5, 2011 (the
“Footstar Loan Agreement”), by and between FCB Holdings
and Footstar Corp.  The loan bore interest at 20% per
annum and provided for a fee of 3% of the principal amount (less
accrued interest) payable to Footstar, which was due upon repayment
of the loan. The bridge loan was repaid on April 5, 2011, prior to
maturity.</font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
April 5, 2011, in connection with the CPEX Transaction, Black Horse
Capital LP and Black Horse Capital Master Fund Ltd. (together,
“Black Horse”) made a $10 million bridge loan to FCB
Holdings under that certain Loan Agreement dated as of April 5,
2011 (the “Black Horse Loan Agreement”), by and between
Black Horse and FCB Holdings. The bridge loan under the Black
Horse Loan Agreement had substantially the same terms as the bridge
loan under the Footstar Loan Agreement, and was repaid on April 5,
2011, prior to maturity. Footstar Corp is party to a consulting and
advisory agreement with the Investment Holding Company for such
entity to provide certain consulting and advisory services to
Footstar Corp relating to intellectual property and other
matters.  The agreement provides for payment solely to
the extent Footstar Corp has received dividends from FCB Holdings,
of which there  have been none to date.  The
annual amounts to be paid, following receipt of such dividends
pursuant to the terms of the agreement, would be $1,000,000 for
2011, $750,000 for 2012, $750,000 for 2013, $500,000 for 2014 and
$250,000 for 2015 and annually thereafter through the agreement
termination.  The agreement terminates upon the
conclusion of the monetization of CPEX’s intellectual
property, subject to the terms of the agreement.  It is
not anticipated that any payment will be made in 2011.</font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Furthermore,
in the opinion of management, such amounts would not be payable
upon liquidation and as such have not been reflected as a liability
in the accompanying consolidated statements of net assets in
liquidation.</font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
light of the CPEX Transaction, Footstar has determined that it
would be in the best interest of stockholders to suspend
liquidating Footstar pursuant to the Plan of
Dissolution.</font></div>
<div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
July 21, 2011, the Company held a special meeting of its
stockholders to vote on a proposal to revoke the Plan of
Dissolution (“Dissolution Proposal”) and a proposal
(the “Merger Proposal”) to adopt the Agreement and Plan
of Merger, dated as of February 14, 2011, and as amended on May 16,
2011, by and among the Company, and Footstar Acquisition, Inc., a
wholly owned subsidiary of the Company, to become a non-public
company. The shares represented at the meeting did not
constitute a quorum of stockholders with respect to the Dissolution
Proposal, and accordingly, no action was taken with respect to this
matter. The approval of the Merger Proposal was subject to the
approval of the Dissolution Proposal. Therefore, although a vote
was held on the Merger Proposal, the approval and implementation of
the Merger Proposal did not proceed. In light of the failure to
revoke the Plan of Dissolution, and the resulting inability to
proceed with the Merger Proposal, the Company is considering other
alternatives. Furthermore, as the Plan of Dissolution was not
approved, the liquidation basis of accounting is still being
followed (see Note 2).</font></div>
<div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
Company is considering various options to permit stockholders to
continue to participate in earnings resulting from the CPEX
Transaction, if any, after Footstar is completely
dissolved.</font></div>
<div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
discussed further in Note 2, the consolidated financial statements
of the Company are presented on the liquidation basis of
accounting.  The 80.5% ownership of FCB Holdings (the
“Controlling Interest”) has been reflected in the
accompanying condensed consolidated financial statements at its
estimated net realizable value.</font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Presented
below is a summarized statement of operations from the date of the
acquisition of CPEX through the end of the third quarter and for
the third quarter and a summarized balance sheet at October 1, 2011
of FCB Holdings (in millions on a going concern basis in accordance
with accounting principles generally accepted in the United States
of America (“GAAP”)):</font></div>
<div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div>
<div align="right">
<table cellpadding="0" cellspacing="0" width="90%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr>
<td valign="bottom" width="70%" style="PADDING-BOTTOM: 2px">
<font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px">
<font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
 </font></td>
<td colspan="2" valign="bottom" width="13%" style="BORDER-BOTTOM: black 2px solid">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<font style="DISPLAY: inline">July 3, 2011 to</font></font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<font style="DISPLAY: inline">October 1, 2011</font></font></div>
</td>
<td nowrap="nowrap" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
 </font></td>
<td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px">
<font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
 </font></td>
<td colspan="2" valign="bottom" width="13%" style="BORDER-BOTTOM: black 2px solid">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<font style="DISPLAY: inline">April 5, 2011 to</font></font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<font style="DISPLAY: inline"> October 1,
2011</font></font></div>
</td>
<td nowrap="nowrap" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
 </font></td>
</tr>
<tr bgcolor="#CCFFCC">
<td align="left" valign="bottom" width="70%">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Royalty
revenue</font></div>
</td>
<td align="right" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="TEXT-ALIGN: left">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
$</font></td>
<td valign="bottom" width="12%" style="TEXT-ALIGN: right">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">6.6</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="TEXT-ALIGN: left">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
$</font></td>
<td valign="bottom" width="12%" style="TEXT-ALIGN: right">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">12.4</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
</tr>
<tr bgcolor="white">
<td align="left" valign="bottom" width="70%">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">G&A
expenses</font></div>
</td>
<td align="right" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="TEXT-ALIGN: left">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
 </font></td>
<td valign="bottom" width="12%" style="TEXT-ALIGN: right">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">0.4</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td align="right" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="TEXT-ALIGN: left">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
 </font></td>
<td valign="bottom" width="12%" style="TEXT-ALIGN: right">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">2.6</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
</tr>
<tr bgcolor="#CCFFCC">
<td align="left" valign="bottom" width="70%">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Amortization
expense</font></div>
</td>
<td align="right" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="TEXT-ALIGN: left">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
 </font></td>
<td valign="bottom" width="12%" style="TEXT-ALIGN: right">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">1.4</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td align="right" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="TEXT-ALIGN: left">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
 </font></td>
<td valign="bottom" width="12%" style="TEXT-ALIGN: right">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">2.7</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
</tr>
<tr bgcolor="white">
<td align="left" valign="bottom" width="70%" style="PADDING-BOTTOM: 2px">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Interest
expense</font></div>
</td>
<td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="BORDER-BOTTOM: #000000 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="12%" style="BORDER-BOTTOM: #000000 2px solid; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">3.0</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="BORDER-BOTTOM: #000000 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="12%" style="BORDER-BOTTOM: #000000 2px solid; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">6.1</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
</tr>
<tr bgcolor="#CCFFCC">
<td align="left" valign="bottom" width="70%">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Income
before income taxes</font></div>
</td>
<td align="right" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="TEXT-ALIGN: left">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
 </font></td>
<td valign="bottom" width="12%" style="TEXT-ALIGN: right">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">1.8</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td align="right" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="TEXT-ALIGN: left">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
 </font></td>
<td valign="bottom" width="12%" style="TEXT-ALIGN: right">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">1.0</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
</tr>
<tr bgcolor="white">
<td align="left" valign="bottom" width="70%" style="PADDING-BOTTOM: 2px">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Net
income attributable to Non-controlling Interest</font></div>
</td>
<td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="BORDER-BOTTOM: #000000 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="12%" style="BORDER-BOTTOM: #000000 2px solid; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">0.3</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="BORDER-BOTTOM: #000000 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="12%" style="BORDER-BOTTOM: #000000 2px solid; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">0.2</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
</tr>
<tr bgcolor="#CCFFCC">
<td align="left" valign="bottom" width="70%" style="PADDING-BOTTOM: 4px">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Net
income attributable to Controlling Interest</font></div>
</td>
<td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="BORDER-BOTTOM: #000000 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">$</font></td>
<td valign="bottom" width="12%" style="BORDER-BOTTOM: #000000 4px double; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">1.5</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; BORDER-BOTTOM: #000000 2px solid; TEXT-ALIGN: left">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">$</font></td>
<td valign="bottom" width="12%" style="PADDING-BOTTOM: 2px; BORDER-BOTTOM: #000000 2px solid; TEXT-ALIGN: right">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">0.8</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
</tr>
</table>
</div>
<div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Summarized
balance sheet related to FCB Holdings consisted of the following
(in millions):</font></div>
<div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div>
<div align="center">
<table cellpadding="0" cellspacing="0" width="80%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr>
<td valign="bottom" width="85%" style="PADDING-BOTTOM: 2px">
<font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="PADDING-BOTTOM: 2px">
<font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
 </font></td>
<td colspan="2" valign="bottom" width="13%" style="BORDER-BOTTOM: black 2px solid">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<font style="DISPLAY: inline">October 1, 2011</font></font></div>
</td>
<td nowrap="nowrap" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
 </font></td>
</tr>
<tr>
<td align="left" valign="bottom" width="85%">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Assets:</font></div>
</td>
<td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman"> </font></td>
<td colspan="2" valign="bottom" width="13%"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman"> </font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman"> </font></td>
</tr>
<tr bgcolor="#CCFFCC">
<td align="left" valign="bottom" width="85%">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Current
assets</font></div>
</td>
<td align="right" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="TEXT-ALIGN: left">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
$</font></td>
<td valign="bottom" width="12%" style="TEXT-ALIGN: right">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">17.5</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
</tr>
<tr bgcolor="white">
<td align="left" valign="bottom" width="85%">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Assets
held for resale (primarily Real Estate)</font></div>
</td>
<td align="right" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="TEXT-ALIGN: left">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
 </font></td>
<td valign="bottom" width="12%" style="TEXT-ALIGN: right">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">2.5</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
</tr>
<tr bgcolor="#CCFFCC">
<td align="left" valign="bottom" width="85%">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Intangible
assets, net</font></div>
</td>
<td align="right" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="TEXT-ALIGN: left">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
 </font></td>
<td valign="bottom" width="12%" style="TEXT-ALIGN: right">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">74.2</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
</tr>
<tr bgcolor="white">
<td align="left" valign="bottom" width="85%" style="PADDING-BOTTOM: 2px">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Deferred
charges and other assets</font></div>
</td>
<td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="BORDER-BOTTOM: #000000 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="12%" style="BORDER-BOTTOM: #000000 2px solid; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">1.6</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
</tr>
<tr bgcolor="#CCFFCC">
<td align="left" valign="bottom" width="85%" style="PADDING-BOTTOM: 2px">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Total
assets</font></div>
</td>
<td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="BORDER-BOTTOM: #000000 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">$</font></td>
<td valign="bottom" width="12%" style="BORDER-BOTTOM: #000000 2px solid; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">95.8</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
</tr>
<tr bgcolor="white">
<td valign="bottom" width="85%"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="TEXT-ALIGN: left">
<font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman">
 </font></td>
<td valign="bottom" width="12%" style="TEXT-ALIGN: right">
<font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman"> </font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman"> </font></td>
</tr>
<tr bgcolor="#CCFFCC">
<td align="left" valign="bottom" width="85%">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Liabilities
and Stockholders’ Equity:</font></div>
</td>
<td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="TEXT-ALIGN: left">
<font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman">
 </font></td>
<td valign="bottom" width="12%" style="TEXT-ALIGN: right">
<font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman"> </font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman"> </font></td>
</tr>
<tr bgcolor="white">
<td align="left" valign="bottom" width="85%">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Current
liabilities</font></div>
</td>
<td align="right" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="TEXT-ALIGN: left">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
$</font></td>
<td valign="bottom" width="12%" style="TEXT-ALIGN: right">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">1.0</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
</tr>
<tr bgcolor="#CCFFCC">
<td align="left" valign="bottom" width="85%">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Payable
to Footstar, Inc.</font></div>
</td>
<td align="right" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="TEXT-ALIGN: left">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
 </font></td>
<td valign="bottom" width="12%" style="TEXT-ALIGN: right">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">0.8</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
</tr>
<tr bgcolor="white">
<td align="left" valign="bottom" width="85%">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Current
maturities of long-term debt</font></div>
</td>
<td align="right" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="TEXT-ALIGN: left">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
 </font></td>
<td valign="bottom" width="12%" style="TEXT-ALIGN: right">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">15.0</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
</tr>
<tr bgcolor="#CCFFCC">
<td align="left" valign="bottom" width="85%">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Long-term
debt, net</font></div>
</td>
<td align="right" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="TEXT-ALIGN: left">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
 </font></td>
<td valign="bottom" width="12%" style="TEXT-ALIGN: right">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">47.6</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
</tr>
<tr bgcolor="white">
<td align="left" valign="bottom" width="85%">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Other
long-term liabilities</font></div>
</td>
<td align="right" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="TEXT-ALIGN: left">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
 </font></td>
<td valign="bottom" width="12%" style="TEXT-ALIGN: right">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">25.6</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
</tr>
<tr bgcolor="#CCFFCC">
<td align="left" valign="bottom" width="85%">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Non-controlling
Interest - Stockholders’ Equity</font></div>
</td>
<td align="right" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="TEXT-ALIGN: left">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
 </font></td>
<td valign="bottom" width="12%" style="TEXT-ALIGN: right">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">1.0</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
</tr>
<tr bgcolor="white">
<td align="left" valign="bottom" width="85%" style="PADDING-BOTTOM: 2px">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Controlling
Interest - Stockholders’ Equity</font></div>
</td>
<td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="BORDER-BOTTOM: #000000 2px solid; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="12%" style="BORDER-BOTTOM: #000000 2px solid; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">4.8</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
</tr>
<tr bgcolor="#CCFFCC">
<td align="left" valign="bottom" width="85%" style="PADDING-BOTTOM: 4px">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Liabilities
and Stockholders’ Equity</font></div>
</td>
<td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="BORDER-BOTTOM: #000000 4px double; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">$</font></td>
<td valign="bottom" width="12%" style="BORDER-BOTTOM: #000000 4px double; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">95.8</font></td>
</tr>
</table>
</div>
</div>
<div>
<div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: left">
<font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
3.  </font><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Fair
Value</font></div>
</div>
<div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">FASB
ASC Topic 820, “Fair Value Measurement and Disclosure,”
defines fair value, establishes a framework for measuring fair
value under generally accepted accounting principles and expands
disclosure about fair value measurements.  The Company
uses the following methods for determining fair value in accordance
with FASB ASC Topic 820.  For assets and liabilities that
are measured using quoted prices in active markets for the
identical asset or liability, the total fair value is the published
market price per unit multiplied by the number of units held
without consideration of transaction costs (Level
1).  Assets and liabilities that are measured using
significant other observable inputs are valued by reference to
similar assets or liabilities, such as quoted prices for similar
assets or liabilities, quoted prices in markets that are not
active, or other inputs that are observable or can be corroborated
by observable market data (Level 2).  For all remaining
assets and liabilities for which there are no significant
observable inputs, fair value is derived using an assessment of
various discount rates, default risk, credit quality and the
overall capital market liquidity (Level 3).</font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
following table summarizes the basis used to measure certain
financial assets and liabilities at fair value on a recurring basis
in the consolidated balance sheets:</font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
Fair Value Measurements at October 1,
2011 </font></div>
<div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div>
<div align="left">
<table cellpadding="0" cellspacing="0" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr>
<td align="left" valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: times new roman">
(In millions)</font></div>
<div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Description</font></div>
</td>
<td valign="bottom" style="PADDING-BOTTOM: 2px"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman"> </font></td>
<td colspan="2" valign="bottom" style="BORDER-BOTTOM: black 2px solid">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman">Balance
at</font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman">October
1, 2011</font></div>
</td>
<td nowrap="nowrap" valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" style="PADDING-BOTTOM: 2px"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman"> </font></td>
<td colspan="2" valign="bottom" style="BORDER-BOTTOM: black 2px solid">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman">Quoted Prices</font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman">in
Active</font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman">Markets
for</font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman">Identical
Items</font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman">(Level
1)</font></div>
</td>
<td nowrap="nowrap" valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" style="PADDING-BOTTOM: 2px"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman"> </font></td>
<td colspan="2" valign="bottom" style="BORDER-BOTTOM: black 2px solid">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman">Significant</font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman">Other</font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman">Observable</font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman">Inputs</font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman">(Level
2)</font></div>
</td>
<td nowrap="nowrap" valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" style="PADDING-BOTTOM: 2px"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman"> </font></td>
<td colspan="2" valign="bottom" style="BORDER-BOTTOM: black 2px solid">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman">Significant</font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman">Unobservable</font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman">Inputs
(Level 3)</font></div>
</td>
<td nowrap="nowrap" valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman"> </font></td>
</tr>
<tr bgcolor="#CCFFCC">
<td align="left" valign="bottom" width="52%">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Cash
in bank</font></div>
</td>
<td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="TEXT-ALIGN: left">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
$</font></td>
<td valign="bottom" width="9%" style="TEXT-ALIGN: right">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">-</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="TEXT-ALIGN: left">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
$</font></td>
<td valign="bottom" width="9%" style="TEXT-ALIGN: right">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">-</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="TEXT-ALIGN: left">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
$</font></td>
<td valign="bottom" width="9%" style="TEXT-ALIGN: right">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">-</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="TEXT-ALIGN: left">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
$</font></td>
<td valign="bottom" width="9%" style="TEXT-ALIGN: right">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">-</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
</tr>
<tr bgcolor="white">
<td align="left" valign="bottom" width="52%">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Money
Market Funds</font></div>
</td>
<td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="TEXT-ALIGN: left">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
 </font></td>
<td valign="bottom" width="9%" style="TEXT-ALIGN: right">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">4.2</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="TEXT-ALIGN: left">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
 </font></td>
<td valign="bottom" width="9%" style="TEXT-ALIGN: right">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">4.2</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="TEXT-ALIGN: left">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
 </font></td>
<td valign="bottom" width="9%" style="TEXT-ALIGN: right">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">-</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="TEXT-ALIGN: left">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
 </font></td>
<td valign="bottom" width="9%" style="TEXT-ALIGN: right">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">-</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
</tr>
<tr bgcolor="#CCFFCC">
<td align="left" valign="bottom" width="52%">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Mahwah
Real Estate</font></div>
</td>
<td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="TEXT-ALIGN: left">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
 </font></td>
<td valign="bottom" width="9%" style="TEXT-ALIGN: right">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">6.2</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="TEXT-ALIGN: left">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
 </font></td>
<td valign="bottom" width="9%" style="TEXT-ALIGN: right">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">-</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="TEXT-ALIGN: left">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
 </font></td>
<td valign="bottom" width="9%" style="TEXT-ALIGN: right">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">-</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="TEXT-ALIGN: left">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
 </font></td>
<td valign="bottom" width="9%" style="TEXT-ALIGN: right">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">6.2</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
</tr>
</table>
</div>
<div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
Fair Value Measurements at January 1, 2011</font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div>
<div align="left">
<table cellpadding="0" cellspacing="0" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr>
<td align="left" valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: times new roman">
(In millions)</font></font></div>
<div style="DISPLAY: block; TEXT-INDENT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
Description</font></font></div>
</div>
</td>
<td align="left" valign="bottom" style="PADDING-BOTTOM: 2px">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td align="left" colspan="2" valign="bottom" style="BORDER-BOTTOM: black 2px solid">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
Balance at</font></font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
January 1, 2011</font></font></div>
</div>
</td>
<td nowrap="nowrap" valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td align="left" valign="bottom" style="PADDING-BOTTOM: 2px">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td align="left" colspan="2" valign="bottom" style="BORDER-BOTTOM: black 2px solid">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
Quoted Prices</font></font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
in Active</font></font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
Markets for</font></font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
Identical Items</font></font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
(Level 1)</font></font></div>
</div>
</td>
<td nowrap="nowrap" valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td align="left" valign="bottom" style="PADDING-BOTTOM: 2px">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td align="left" colspan="2" valign="bottom" style="BORDER-BOTTOM: black 2px solid">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
Significant</font></font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
Other</font></font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
Observable</font></font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
Inputs</font></font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
(Level 2)</font></font></div>
</div>
</td>
<td nowrap="nowrap" valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td align="left" valign="bottom" style="PADDING-BOTTOM: 2px">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td align="left" colspan="2" valign="bottom" style="BORDER-BOTTOM: black 2px solid">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
Significant</font></font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
Unobservable</font></font></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
Inputs (Level 3)</font></font></div>
</div>
</td>
<td nowrap="nowrap" valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
</tr>
<tr bgcolor="#CCFFCC">
<td align="left" valign="bottom" width="52%">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Cash
in bank</font></div>
</td>
<td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="TEXT-ALIGN: left">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
$</font></td>
<td valign="bottom" width="9%" style="TEXT-ALIGN: right">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">3.4</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="TEXT-ALIGN: left">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
$</font></td>
<td valign="bottom" width="9%" style="TEXT-ALIGN: right">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">3.4</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="TEXT-ALIGN: left">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
$</font></td>
<td valign="bottom" width="9%" style="TEXT-ALIGN: right">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">-</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="TEXT-ALIGN: left">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
$</font></td>
<td valign="bottom" width="9%" style="TEXT-ALIGN: right">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">-</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
</tr>
<tr bgcolor="white">
<td align="left" valign="bottom" width="52%">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Money
Market Funds</font></div>
</td>
<td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="TEXT-ALIGN: left">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
 </font></td>
<td valign="bottom" width="9%" style="TEXT-ALIGN: right">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">5.3</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="TEXT-ALIGN: left">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
 </font></td>
<td valign="bottom" width="9%" style="TEXT-ALIGN: right">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">5.3</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="TEXT-ALIGN: left">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
 </font></td>
<td valign="bottom" width="9%" style="TEXT-ALIGN: right">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">-</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="TEXT-ALIGN: left">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
 </font></td>
<td valign="bottom" width="9%" style="TEXT-ALIGN: right">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">-</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
</tr>
<tr bgcolor="#CCFFCC">
<td align="left" valign="bottom" width="52%">
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Mahwah
Real Estate</font></div>
</td>
<td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="TEXT-ALIGN: left">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
 </font></td>
<td valign="bottom" width="9%" style="TEXT-ALIGN: right">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">6.2</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="TEXT-ALIGN: left">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
 </font></td>
<td valign="bottom" width="9%" style="TEXT-ALIGN: right">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">-</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="TEXT-ALIGN: left">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
 </font></td>
<td valign="bottom" width="9%" style="TEXT-ALIGN: right">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">-</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
<td valign="bottom" width="1%" style="TEXT-ALIGN: left">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
 </font></td>
<td valign="bottom" width="9%" style="TEXT-ALIGN: right">
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">6.2</font></td>
<td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </font></td>
</tr>
</table>
</div>
<div style="DISPLAY: block; TEXT-INDENT: 0pt"><br /></div>
<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Money
Market Funds – money market funds are valued using
quoted market prices.  Accordingly, money market funds
are categorized in Level 1 of the fair value
hierarchy.</font></div>
</div>
<div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">
5.           Income
Taxes</font></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">As
of October 1, 2011, all of the Company’s deferred tax assets
continue to be subject to a full valuation allowance, including the
net operating losses available to offset future taxable
income.</font></div>
</div>
<div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 1pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">
9.           Stock
Options</font></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The
Company records stock based compensation in accordance with FASB
ASC Topic 718 “Compensation – Stock
Compensation,” which requires all companies to measure and
recognize compensation expense at fair value for all stock-based
payments to employees and directors.  The Company uses
the Black-Scholes option-pricing model to estimate fair value of
grants of employee and director stock options.</font></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The
Company calculates expected volatility for a share-based grant
based on historic daily stock price observations of our common
stock during the period immediately preceding the grant that is
equal in length to the expected term of the grant.  FASB
ASC Topic 718 also requires that estimated forfeitures be included
as a part of the estimate of expense as of the grant
date.  The Company has used historical data to estimate
expected employee behaviors related to option term, exercises and
forfeitures.  With respect to both grants of options and
awards of restricted stock, the risk free rate of interest is based
on the U.S. Treasury rates appropriate for the expected term of the
grant or award.  A summary of option activity as of
October 1, 2011 and changes during the nine months ended October 1,
2011 is presented below.</font></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div>
<div align="left">
<table style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" width="100%">
<tr>
<td style="PADDING-BOTTOM: 2px" valign="bottom" width="70%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 8pt"> </font></td>
<td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">
 </font></td>
<td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="13%" colspan="2">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">
Shares</font></div>
</div>
</td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">
 </font></td>
<td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">
 </font></td>
<td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="13%" colspan="2">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">
Weighted Average</font></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">
Exercise Price</font></div>
</div>
</td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">
 </font></td>
</tr>
<tr bgcolor="#CCFFCC">
<td valign="bottom" width="70%" align="left">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Balance
: January 1, 2011</font></div>
</td>
<td valign="bottom" width="1%" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> </font></td>
<td style="TEXT-ALIGN: left" valign="bottom" width="1%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">
 </font></td>
<td style="TEXT-ALIGN: right" valign="bottom" width="12%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">2,626,140</font></td>
<td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> </font></td>
<td valign="bottom" width="1%" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> </font></td>
<td style="TEXT-ALIGN: left" valign="bottom" width="1%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">
$</font></td>
<td style="TEXT-ALIGN: right" valign="bottom" width="12%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">2.12</font></td>
<td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> </font></td>
</tr>
<tr bgcolor="white">
<td valign="bottom" width="70%" align="left">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Granted</font></div>
</td>
<td valign="bottom" width="1%" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> </font></td>
<td style="TEXT-ALIGN: left" valign="bottom" width="1%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">
 </font></td>
<td style="TEXT-ALIGN: right" valign="bottom" width="12%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">-</font></td>
<td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> </font></td>
<td valign="bottom" width="1%" align="right"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> </font></td>
<td style="TEXT-ALIGN: left" valign="bottom" width="1%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">
 </font></td>
<td style="TEXT-ALIGN: right" valign="bottom" width="12%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">-</font></td>
<td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> </font></td>
</tr>
<tr bgcolor="#CCFFCC">
<td valign="bottom" width="70%" align="left">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Exercised</font></div>
</td>
<td valign="bottom" width="1%" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> </font></td>
<td style="TEXT-ALIGN: left" valign="bottom" width="1%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">
 </font></td>
<td style="TEXT-ALIGN: right" valign="bottom" width="12%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">-</font></td>
<td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> </font></td>
<td valign="bottom" width="1%" align="right"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> </font></td>
<td style="TEXT-ALIGN: left" valign="bottom" width="1%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">
 </font></td>
<td style="TEXT-ALIGN: right" valign="bottom" width="12%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">-</font></td>
<td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> </font></td>
</tr>
<tr bgcolor="white">
<td style="PADDING-BOTTOM: 2px" valign="bottom" width="70%" align="left">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Forfeited</font></div>
</td>
<td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> </font></td>
<td style="BORDER-BOTTOM: #000000 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> </font></td>
<td style="BORDER-BOTTOM: #000000 2px solid; TEXT-ALIGN: right" valign="bottom" width="12%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">(63,500</font></td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">)</font></td>
<td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> </font></td>
<td style="BORDER-BOTTOM: #000000 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">$</font></td>
<td style="BORDER-BOTTOM: #000000 2px solid; TEXT-ALIGN: right" valign="bottom" width="12%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">(46.18</font></td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">)</font></td>
</tr>
<tr bgcolor="#CCFFCC">
<td style="PADDING-BOTTOM: 2px" valign="bottom" width="70%" align="left">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Balance
: October 1, 2011</font></div>
</td>
<td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">
 </font></td>
<td style="BORDER-BOTTOM: #000000 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">
 </font></td>
<td style="BORDER-BOTTOM: #000000 2px solid; TEXT-ALIGN: right" valign="bottom" width="12%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">
2,562,640</font></td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">
 </font></td>
<td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">
 </font></td>
<td style="BORDER-BOTTOM: #000000 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">
$</font></td>
<td style="BORDER-BOTTOM: #000000 2px solid; TEXT-ALIGN: right" valign="bottom" width="12%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">
1.03</font></td>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">
 </font></td>
</tr>
<tr bgcolor="white">
<td valign="bottom" width="70%" align="left">
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Options
Exercisable: October 1, 2011</font></div>
</td>
<td valign="bottom" width="1%" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> </font></td>
<td style="TEXT-ALIGN: left" valign="bottom" width="1%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">
 </font></td>
<td style="TEXT-ALIGN: right" valign="bottom" width="12%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">2,562,640</font></td>
<td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> </font></td>
<td valign="bottom" width="1%" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> </font></td>
<td style="TEXT-ALIGN: left" valign="bottom" width="1%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">
$</font></td>
<td style="TEXT-ALIGN: right" valign="bottom" width="12%">
<font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">1.03</font></td>
<td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> </font></td>
</tr>
</table>
</div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block"> </div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">On
March 15, 2010, Mr. Couchman, Chief Executive Officer and Chief
Financial Officer, was awarded a stock option to purchase up to
2,500,000 shares of the Company’s common stock at an exercise
price of $0.40 per share (after giving effect to the liquidating
cash dividend of $0.10 paid on March 12, 2010). The exercise price
was adjusted in accordance with the terms of the initial grant from
$0.40 to $0.35 due to a $0.05 dividend paid to the stockholders of
the Company on October 7, 2010. On the date of the grant, the
closing stock price of the Company’s stock price was $0.23.
The stock option was fully vested at the time of the grant. The
stock option expires upon the earlier of the tenth anniversary of
the grant date and the payment of the final liquidation
distribution to the Company’s stockholders. The Company
believed that granting a stock option with an exercise price
substantially above the market price per share at the time of the
grant would further incentive Mr. Couchman to work to maximize
stockholder value.</font></div>
</div>
<div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">
7.           Special
Cash Distribution</font></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The
aggregate amount of any remaining liquidation distribution to our
stockholders is expected to be in the range of $.44 to $.48 per
common share as determined on October 1, 2011, without adjustment
for any subsequent change in net realizable value of the investment
in FCB Holdings or the success of any of the options of the Company
to permit stockholders to continue to participate in the earnings
from the CPEX Transaction. However, uncertainties as to the
ultimate amount of our liabilities make it impossible to predict
with certainty the actual aggregate net amounts that will
ultimately be available for distribution to stockholders or the
timing of any such distributions.  Such amount and timing will
depend on a number of factors, several of which cannot be
determined at this time, including:</font></div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div>
<div>
<table style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" width="100%">
<tr valign="top">
<td style="WIDTH: 63pt" align="right">
<div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">1)  </font></div>
</td>
<td>
<div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">the
ultimate amount of our known, unknown and contingent debts and
liabilities;</font></div>
</td>
</tr>
</table>
</div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div>
<div>
<table style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" width="100%">
<tr valign="top">
<td style="WIDTH: 63pt" align="right">
<div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">2)  </font></div>
</td>
<td>
<div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">the
fees and expenses incurred by us in the liquidation of our
assets;</font></div>
</td>
</tr>
</table>
</div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div>
<div>
<table style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" width="100%">
<tr valign="top">
<td style="WIDTH: 63pt" align="right">
<div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">3)  </font></div>
</td>
<td>
<div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">the
ultimate proceeds from the sale of the Mahwah Real
Estate;</font></div>
</td>
</tr>
</table>
</div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div>
<div>
<table style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" width="100%">
<tr valign="top">
<td style="WIDTH: 63pt" align="right">
<div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">4)  </font></div>
</td>
<td>
<div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">the
investment in or ultimate proceeds realized, if any, as a result of
the CPEX Transaction; and</font></div>
</td>
</tr>
</table>
</div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div>
<div>
<table style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" width="100%">
<tr valign="top">
<td style="WIDTH: 63pt" align="right">
<div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">5)  </font></div>
</td>
<td>
<div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">the
success of any of the options of the Company to permit stockholders
to continue to participate in the earnings from the CPEX
Transaction.</font></div>
</td>
</tr>
</table>
</div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div>
<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">As
a result, the amount of cash remaining following completion of our
liquidation could vary significantly from our current estimates. In
addition, as discussed in Note 1, the Company is considering
various options to permit stockholders to continue to participate
in earnings resulting from the CPEX Transaction, if any, after
Footstar is completely dissolved. The determination of which option
to proceed with would likely effect the amount of any further
distributions.</font></div>
</div>
3000000
700000
-600000
3000000
300000
300000
200000
-600000
-200000
-300000
-300000
100000
0001011308
2011-07-03
2011-10-01
0001011308
2011-01-02
2011-04-02
0001011308
2011-04-03
2011-07-02
0001011308
2011-01-02
2011-10-01
0001011308
2011-01-01
0001011308
2011-10-01
0001011308
2011-04-02
0001011308
2011-07-02
0001011308
2011-11-15
shares
iso4217:USD
Derived from audited financial information