The Gap 2008 Annual Report Download - page 14

Special Note on Forward-looking Statements
This Annual Report on Form 10-K contains forward-looking statements within the “safe harbor” provisions of the
Private Securities Litigation Reform Act of 1995. All statements other than those that are purely historical are forward-
looking statements. Words such as “expect,” “anticipate,” “believe,” “estimate,” “intend,” “plan,” “project,” and similar
expressions also identify forward-looking statements. Forward-looking statements include, but are not limited to,
statements regarding: (i) our plans to expand internationally through franchising and similar arrangements; (ii) the
outcome of proceedings, lawsuits, disputes and claims; (iii) cash balances and cash flows being sufficient for the
foreseeable future; (iv) improvement in return on invested capital; (v) managing inventory to support a healthy
merchandise margin; (vi) maintaining a focus on cost management; (vii) generating strong free cash flow;
(viii) current cash balances and cash flows being adequate to support our business operations, capital expenditures,
and the payment of dividends and share repurchases; (ix) being able to supplement near-term liquidity with our
existing credit facility; (x) capital expenditures in fiscal 2009; (xi) the number of new store openings and store closings
in fiscal 2009; (xii) net square footage change in fiscal 2009; (xiii) our plan to maintain our dividend in fiscal 2009;
(xiv) future share repurchases, including repurchases from members of the Fisher family; (xv) the expected payments
and the expected benefits, including cost savings, resulting from our services agreement with IBM; (xvi) the
maximum potential amount of future lease payments; (xvii) the impact of losses due to indemnification obligations;
(xviii) the maximum exposure and cash collateralized balance for the reinsurance pool in future periods; (xix) the
estimates and assumptions we use in our accounting policies, including those used to calculate our lower of cost or
market and inventory shortage reserves, our impairment of long-lived assets, goodwill, and intangible assets, our
insurance liabilities, our future sales returns, and our settlement of foreign and domestic tax audits; (xx) future lease
payments related to the closure of Forth & Towne; (xxi) the assumptions used to value share-based compensation
expense; (xxii) future lease payments and sublease income; (xxiii) our intent to use earnings in foreign operations for
an indefinite period or repatriate them only when tax-effective to do so; (xxiv) total gross unrecognized tax benefits;
(xxv) driving traffic, improving product, and creating new store prototypes; (xxvi) growing our international, online,
and outlet businesses; (xxvii) maximizing earnings potential; and (xxviii) performing better than the competition and
gaining back market share.
Because these forward-looking statements involve risks and uncertainties, there are important factors that could
cause our actual results to differ materially from those in the forward-looking statements. These factors include,
without limitation, the following: the risk that the adoption of new accounting pronouncements will impact future
results; the risk that we will be unsuccessful in gauging fashion trends and changing consumer preferences; the risk
that changes in general economic conditions, consumer confidence, or consumer spending patterns will have a
negative impact on our financial performance or strategies; the highly competitive nature of our business in the
United States and internationally and our dependence on consumer spending patterns, which are influenced by
numerous other factors; the risk that we will be unsuccessful in identifying and negotiating new store locations and
renewing leases for existing store locations effectively; the risk that comparable store sales and margins will
experience fluctuations; the risk that we will be unsuccessful in implementing our strategic, operating and people
initiatives; the risk that adverse changes in our credit ratings may have a negative impact on our financing costs,
structure and access to capital in future periods; the risk that changes to our information technology (“IT”) systems
may disrupt our operations; the risk that trade matters, events causing disruptions in product shipments from China
and other foreign countries, or an inability to secure sufficient manufacturing capacity may disrupt our supply chain
or operations; the risk that our efforts to expand internationally through franchising and similar arrangements may
not be successful and could impair the value of our brands; the risk that acts or omissions by our third party vendors,
including a failure to comply with our code of vendor conduct, could have a negative impact on our reputation or
operations; the risk that changes in the regulatory or administrative landscape could adversely affect our financial
condition and results of operations; the risk that we do not repurchase some or all of the shares we anticipate
purchasing pursuant to our repurchase program; and the risk that we will not be successful in defending various
proceedings, lawsuits, disputes, claims, and audits; any of which could impact net sales, expenses, and/or planned
strategies. Additional information regarding factors that could cause results to differ can be found in this Annual
Report on Form 10-K and our other filings with the U.S. Securities and Exchange Commission.
Future economic and industry trends that could potentially impact net sales and profitability are difficult to
predict. These forward-looking statements are based on information as of March 27, 2009 and we assume no
obligation to publicly update or revise our forward-looking statements even if experience or future changes make
it clear that any projected results expressed or implied therein will not be realized.
2Gap Inc. Form 10-K