The Gap 2010 Annual Report Download - page 9

Download and view the complete annual report

Please find page 9 of the 2010 The Gap annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 88

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88

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 the following:
• our plans to expand internationally through a number of channels and brands, including additional Gap stores in
Europe and China, expand Banana Republic stores in Europe, additional outlet stores in Canada, Europe, and Asia,
online sales internationally, and additional franchising and similar arrangements;
• future online revenue growth;
• the impact that increases in commodity prices will have on our gross margins;
• our plans to downsize, consolidate, reposition, or close some of our stores;
• cash and cash flows being sufficient for the next 12 months and beyond;
• the outcome of proceedings, lawsuits, disputes, and claims;
• growing revenues;
• maintaining a focus on cost management and return on invested capital;
• generating strong free cash flow and returning excess cash to shareholders;
• investing in the future while delivering earnings per share growth;
• the effective tax rate in fiscal 2011;
• current cash balances and cash flows being adequate to support our business operations, including growth
initiatives, planned capital expenditures, and dividend payments and share repurchases;
• being able to supplement near-term liquidity with our existing credit facility;
• capital expenditures in fiscal 2011;
• the number of new store openings and store closings in fiscal 2011;
• net square footage change in fiscal 2011;
• our plan to increase our dividend in fiscal 2011;
• future share repurchases;
• the expected payments and the expected benefits, including cost savings, resulting from our services agreement
with IBM;
• the maximum potential amount of future lease payments;
• the impact of losses due to indemnification obligations;
• the maximum exposure for the reinsurance pool in future periods;
• the estimates and assumptions we use in our accounting policies, including those used to calculate our lower of
cost or market and inventory shortage adjustments, our impairment of long-lived assets, goodwill, and
intangible assets, our insurance liabilities, our future sales returns, our breakage income, and our settlement of
foreign and domestic tax audits;
2Gap Inc. Form 10-K