Banana Republic 2006 Annual Report Download - page 79

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NOTE 15. QUARTERLY INFORMATION (UNAUDITED)
The following quarterly data are derived from our Consolidated Statements of Income:
($ in millions except per
share amounts)
13 Weeks Ended
April 29, 2006
13 Weeks Ended
July 29, 2006 (a)
13 Weeks Ended
Oct. 28, 2006
14 Weeks Ended
February 3, 2007
53 Weeks Ended
February 3, 2007 (a)
Fiscal 2006
Net sales .......... $3,441 $3,716 $3,856 $4,930 $15,943
Gross profit ....... 1,382 1,223 1,441 1,603 5,649
Net earnings ....... 242 128 189 219 778
Earnings per share-
basic ........... 0.28 0.15 0.23 0.27 0.94
Earnings per share-
diluted ......... 0.28 0.15 0.23 0.27 0.93
13 Weeks Ended
April 30, 2005
13 Weeks Ended
July 30, 2005 (b)
13 Weeks Ended
Oct. 29, 2005 (c)
13 Weeks Ended
January 28, 2006 (d)
52 Weeks Ended
January 28, 2006
(b), (c), (d)
Fiscal 2005
Net sales .......... $3,626 $3,716 $3,860 $4,821 $16,023
Gross profit ....... 1,481 1,385 1,363 1,640 5,869
Net earnings ....... 291 272 212 338 1,113
Earnings per share-
basic ........... 0.33 0.30 0.24 0.39 1.26
Earnings per share-
diluted ......... 0.31 0.30 0.24 0.39 1.24
(a) During the second quarter of fiscal 2006, we recognized approximately $31 million relating to the change in
our estimate of the elapsed time for recording income associated with unredeemed gift cards. During fiscal
2006, we recorded a charge of approximately $32 million in impairment of long-lived assets.
(b) During the second quarter of fiscal 2005, we released approximately $58 million of our sublease loss reserve
related to properties in San Francisco that we now occupy.
(c) During the third quarter of fiscal 2005, we reclassified approximately $30 million of certain year to date
sourcing expenses from operating expenses to cost of goods sold and occupancy expenses. These sourcing
expenses were primarily comprised of payroll and benefit expenses for our wholly owned agent offices.
Fiscal 2005 impact of this reclassification was approximately $42 million. This reclassification had no
impact on net earnings.
(d) During the fourth quarter of fiscal 2005, we recorded approximately $50 million in cost of goods sold and
occupancy expenses representing the cumulative impact of amortizing our key money balance from fiscal
1995 through the end of fiscal 2005.
Item 9. Changes In and Disagreements With Accountants on Accounting and Financial Disclosure
None
Item 9A. Controls and Procedures.
Evaluation of Disclosure Controls and Procedures
We carried out an evaluation, under the supervision and with the participation of management, including the
Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our
disclosure controls and procedures (as defined in Exchange Act Rule 13a-15(e)) as of the end of the period
covered by this Annual Report on Form 10-K. Based upon that evaluation, the Chief Executive Officer and Chief
Financial Officer concluded that the Company’s disclosure controls and procedures are effective.
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