The Gap 2010 Annual Report Download - page 35

Share Repurchases
In February 2010, we announced that the Board of Directors authorized $1 billion for share repurchases, which was
fully utilized by the end of August 2010. In August 2010, we announced that the Board of Directors authorized an
additional $750 million for share repurchases, of which $711 million was utilized through January 29, 2011. In
February 2011, we announced that the Board of Directors authorized an additional $2 billion for share repurchases.
During fiscal 2010, we repurchased approximately 96 million shares for $2.0 billion, including commissions, at an
average price per share of $20.44.
Contractual Cash Obligations
We are party to many contractual obligations involving commitments to make payments to third parties. The
following table provides summary information concerning our future contractual obligations as of January 29,
2011. These obligations impact our short-term and long-term liquidity and capital resource needs. Certain of
these contractual obligations are reflected in the Consolidated Balance Sheet, while others are disclosed as
future obligations.
Payments Due by Period
($ in millions) Less than 1 Year 1-3 Years 3-5 Years More Than 5 Years Total
Amounts reflected in Consolidated Balance Sheet:
Debt(a).............................................. $ 3 $— $— $— $ 3
Liabilities for unrecognized tax benefits (b) .............. 1— — — 1
Other cash obligations not reflected in Consolidated Balance
Sheet:
Operating leases (c) ................................... 997 1,551 1,085 1,483 5,116
Purchase obligations and commitments (d) ............. 2,217 234 183 8 2,642
Total contractual cash obligations .......................... $3,218 $1,785 $1,268 $1,491 $7,762
(a) Represents principal maturities, excluding interest. See Note 4 of Notes to Consolidated Financial Statements.
(b) The table above excludes $66 million of long-term liabilities related to uncertain tax positions, as we are not able to reasonably estimate
when cash payments will occur. The amount is recorded in lease incentives and other long-term liabilities in the Consolidated Balance
Sheet as of January 29, 2011.
(c) Maintenance, insurance, taxes, and contingent rent obligations are excluded. See Note 9 of Notes to Consolidated Financial Statements
for discussion of our operating leases.
(d) Represents estimated open purchase orders to purchase inventory as well as commitments for products and services used in the normal
course of business.
Commercial Commitments
We have commercial commitments, not reflected in the table above, that were incurred in the normal course of
business to support our operations, including standby letters of credit of $51 million (of which $49 million was
issued under the revolving credit facility lines), surety bonds of $40 million, and bank guarantees of $11 million
outstanding at January 29, 2011.
Amounts Reflected in the Consolidated Balance Sheet
We have other long-term liabilities reflected in the Consolidated Balance Sheet, including deferred income taxes.
The payment obligations associated with these liabilities are not reflected in the table above due to the absence of
scheduled maturities. Therefore, the timing of these payments cannot be determined, except for amounts
estimated to be paid in fiscal 2011 that are recorded in current liabilities.
28 Gap Inc. Form 10-K