The Gap 2008 Annual Report Download - page 76

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Fiscal Year 2006 Gap Old
Navy Banana
Republic Other (3) Total
Percentage
of Net
Sales
U.S.(1) ............................................ $4,494 $6,042 $2,251 $— $12,787 80%
Canada ........................................... 379 442 119 — 940 6%
Europe ........................................... 792 — — 1 793 5%
Asia .............................................. 581 — 61 7 649 4%
OtherRegions ..................................... — — — 24 24 —
Total Stores reportable segment .................... 6,246 6,484 2,431 32 15,193 95%
Direct reportable segment (2) ....................... 261 345 117 7 730 5%
Total ............................................. $6,507 $6,829 $2,548 $ 39 $15,923 100%
(1) U.S. includes the United States and Puerto Rico.
(2) U.S. only. Direct includes Athleta beginning September 2008.
(3) Other includes our wholesale business, franchise business, Piperlime, and, beginning September 2008, Athleta.
Financial Information for Reportable Segments
The measure of profit we use to make decisions on allocating resources to our operating segments and to assess
the operating performance of each operating segment is operating income. Operating income is defined as
income from continuing operations before interest expense, interest income, and income taxes. Corporate costs
are allocated to each operating segment, and included in operating income, based on a rational and
systematic basis.
Reportable segment assets presented below include those assets that are directly used in, or allocable to, that
segment’s operations. Total assets for the Stores reportable segment primarily consist of merchandise inventory,
the net book value of store facilities, and prepaid expenses and receivables related to store operations. Total assets
for the Direct reportable segment primarily consist of merchandise inventory, the net book value of information
technology and distribution center assets, and the net book value of goodwill and intangible assets as a result of
the acquisition of Athleta. We do not allocate corporate assets to our operating segments. Unallocated corporate
assets include cash and cash equivalents, short-term investments, restricted cash, the net book value of corporate
property and equipment, and tax-related assets. Reportable segment capital expenditures are direct purchases of
property and equipment by that segment. Unallocated capital expenditures primarily consist of corporate
purchases of property and equipment.
64 Gap Inc. Form 10-K