The Gap 2010 Annual Report Download - page 74

($ in millions)
Fiscal Year 2009 Gap Old Navy Banana Republic Other (3) Total Percentage of Net Sales
U.S.(1) ........................................... $3,508 $4,949 $2,034 $ — $10,491 74%
Canada .......................................... 312 386 162 — 860 6
Europe .......................................... 683 — 24 36 743 5
Asia ............................................. 774 — 106 48 928 7
Otherregions .................................... — — — 57 57 —
Total Stores reportable segment ................... 5,277 5,335 2,326 141 13,079 92
Direct reportable segment (2) ...................... 324 473 134 187 1,118 8
Total ............................................ $5,601 $5,808 $2,460 $328 $14,197 100%
SalesGrowth(Decline) ............................ (6)% 2% (7)% 46% (2)%
($ in millions)
Fiscal Year 2008 Gap Old Navy Banana Republic Other (3) Total Percentage of Net Sales
U.S.(1) ........................................... $3,840 $4,840 $2,221 $ — $10,901 75%
Canada .......................................... 329 392 146 — 867 6
Europe .......................................... 724 — 23 33 780 6
Asia ............................................. 732 — 101 47 880 6
Otherregions .................................... — — — 68 68 —
Total Stores reportable segment ................... 5,625 5,232 2,491 148 13,496 93
Direct reportable segment (2) ...................... 333 475 145 77 1,030 7
Total ............................................ $5,958 $5,707 $2,636 $225 $14,526 100%
SalesGrowth(Decline) ............................ (5)% (14)% (3)% 84% (8)%
(1) U.S. includes the United States and Puerto Rico.
(2) In July 2010, we began selling products online to customers in select countries outside the U.S. using a U.S.-based third party that
provides logistics and fulfillment services. In August 2010, we began selling products online to customers in select countries outside the
U.S. utilizing our own logistics and fulfillment capabilities. For fiscal 2010, there was $42 million of online sales that were shipped from
distribution centers located outside the U.S. For fiscal 2009 and 2008, there were no amounts related to online sales that were shipped
from distribution centers located outside the U.S.
(3) Other includes our wholesale business, franchise business, Piperlime, and beginning September 2008, Athleta.
Gap and Banana Republic outlet retail sales are reflected within the respective results of each brand.
Financial Information for Reportable Segments
Operating income is the primary measure of profit we use to make decisions on allocating resources to our
operating segments and to assess the performance of each operating segment. It is defined as income before
interest expense, interest income, and income taxes. Corporate expenses are allocated to each operating segment
and recorded in operating income 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 assets, 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 primarily include cash and cash equivalents, short-term investments, 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.
67