The Gap 2010 Annual Report Download - page 10

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• the assumptions used to value share-based compensation expense;
• future lease payments and related net cash outlay;
• our intent to use earnings in foreign operations for an indefinite period of time;
• total gross unrecognized tax benefits; and
• the impact of recent tax return and refund claim audits.
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 changes in general economic conditions 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;
• the risk that we will be unsuccessful in gauging fashion trends and changing consumer preferences;
• the risk that our efforts to expand internationally may not be successful and could impair the value of our brands;
• the risk that our franchisees will be unable to successfully open, operate, and grow the company’s franchised stores;
• the risk that we will be unsuccessful in identifying, negotiating, and securing new store locations and renewing
or modifying leases for existing store locations effectively;
• the risk that comparable sales and margins will experience fluctuations;
• the risk that we will be unsuccessful in implementing our strategic, operating and people initiatives;
• the risk that changes in our credit profile or deterioration in market conditions may limit our access to the capital markets;
• the risk that trade matters, sourcing costs, 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, or impact our financial results;
• the risk that updates or changes to our information technology (“IT”) systems may disrupt our operations;
• the risk that our IT services agreement with IBM could cause disruptions in our operations and have an adverse
effect on our financial results;
• 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 we do not repurchase some or all of the shares we anticipate purchasing pursuant to our
repurchase program;
• 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; and
• the risk that changes in the regulatory or administrative landscape could adversely affect our financial condition
and results of operations.
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