Banana Republic 2009 Annual Report Download

Download and view the complete annual report

Please find the complete 2009 Banana Republic 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 100

  • 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
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100

Connecting with our customers
2009 Annual Report

Table of contents

  • Page 1
    Connecting with our customers 2009 Annual Report

  • Page 2
    ... to win. Delivering results Our formula of focusing on cost management, healthy merchandise margins and strong cash generation continued to serve us well. In 2009, we increased our earnings-per-share 18 percent. We ended the year with $2.3 billion of cash on the balance sheet and no debt. In...

  • Page 3
    "Gap's new line just fits again. I now have three pairs of the 1969 jeans and I wear them nearly every day." Amber Adrian

  • Page 4
    Style & Value "For my kids, Old Navy just offers a nice balance between being stylish and not-too-baby looking. And it's not expensive." Erica Pan

  • Page 5
    ..., Old Navy worked hard to make sure that decisions were made with this target family clearly in mind. As a result, Old Navy was able to deliver fashion at a great value for the entire family. The strategy is paying off; the business delivered six months of positive comps in the back half of 2009...

  • Page 6
    ... Republic successfully tested a new store prototype in three cities, creating a fresh, boutique-like setting to showcase versatile style. Gap is testing a new outlet store design for value shoppers around the world. With a bright, modern aesthetic, shoppers can't miss Gap's casual style. Old Navy...

  • Page 7
    New Store Looks "Banana Republic is so easy to wear to work or out with friends. The clothes are sharp, smart, stylish and clean." Tom Flannigan

  • Page 8
    Building Buzz "Athleta is known for a lot of yoga and soft and fuzzy sports- but, as a runner, I think their performance wear is excellent." Andrea Smalling

  • Page 9
    ... same time, we dressed the New York Stock Exchange traders-for the first time in history-in denim to coincide with our 40th anniversary. Banana Republic-with its focus on "affordable luxury"-adjusted the marketing strategy after putting new product filters in place for the second half of 2009. One...

  • Page 10
    ... to launch Gap, Banana Republic and Old Navy online in Canada, and Gap and Banana Republic online in the UK, also serving nine other European countries. Similarly, our outlet stores will be a significant part of our global expansion plans. Our franchise business continues to expand, including signed...

  • Page 11
    ... committed to working with government officials in both the United States and Haiti to support the long-term recovery. It's all a reflection of the unique company that passionately embraces the foundation on which it was built. In January 2009, Don spoke to about 1,000 Gap store managers, with Doris...

  • Page 12
    Don Fisher 1928 - 2009

  • Page 13
    .... Today, Gap Inc., with about 3,100 stores and 135,000 employees, remains a company that takes pride in the values on which it was founded. In the process of revolutionizing retail, Don continued to lead with entrepreneurial spirit. He knew many store managers by name. His mantra was "change or fail...

  • Page 14
    ... about building quality and value in absolutely everything we do," said Marka Hansen, Gap Brand North America president and 22-year veteran of Gap Inc. "These words still guide us today." Today, the Fisher legacy lives on. Doris served for nearly 40 years on the Gap Inc. Board of Directors, and now...

  • Page 15
    "Our company continues to demonstrate values that, from the beginning, set us apart- creativity, risk-taking, loyalty, integrity, doing what's right and staying focused on our customers." Don Fisher August 21, 2009

  • Page 16
    ... a challenging economic environment, Gap Inc. delivered its third consecutive year of double-digit earnings per share growth in fiscal year 2009. The earnings results were driven by improved sales in the fourth quarter and continued margin improvement. We ended the year with $2.3 billion in cash...

  • Page 17
    ..., San Francisco, California 94105 (Address of principal executive offices) (Zip code) Registrant's telephone number, including area code: (650) 952-4400 Securities registered pursuant to Section 12(b) of the Act: Common Stock, $0.05 par value New York Stock Exchange, Inc. (Title of class) (Name of...

  • Page 18
    ... through a number of channels and brands, including additional Gap stores in Europe and our first Gap stores in China, additional Banana Republic stores in Europe, additional outlet stores in Canada, Europe, and Asia, online sales internationally, and additional franchising and similar arrangements...

  • Page 19
    ... Market Risk ...Financial Statements and Supplementary Data ...Changes in and Disagreements With Accountants on Accounting and Financial Disclosure ...Controls and Procedures ...Other Information ...PART III Item 10. Item 11. Item 12. Item 13. Item 14. Directors, Executive Officers and Corporate...

  • Page 20
    ... points than Gap. We also operate Banana Republic Factory Stores, which carry similar categories of products at lower price points. As of January 30, 2010, we operated a total of 3,095 store locations. For more information on the number of stores by brand and region, see the table in "Management...

  • Page 21
    ...the size and location of the store. Our stores generally are open seven days per week (where permitted by law) and most holidays. All sales are tendered for cash, personal checks, debit cards, or credit cards. We also issue and redeem gift cards through our brands. Gap, Banana Republic, and Old Navy...

  • Page 22
    ... United Arab Emirates. Under these agreements, third parties operate, or will operate, stores that sell apparel purchased from us under our brand names. While we expect this will be a small part of our business in the near future, we plan over time to continue increasing the number of countries in...

  • Page 23
    ... President of Merchandising from April 1990 to April 1995. John T. (Tom) Keiser, 44, Executive Vice President and Chief Information Officer since January 2010; Executive Vice President and Chief Information Officer of The Limited Brands, Inc., an apparel company, from 2006 to October 2009; Senior...

  • Page 24
    ...that satisfies customer demand in a timely manner. The global specialty retail business fluctuates according to changes in consumer preferences, dictated in part by fashion and season. To the extent we misjudge the market for our merchandise or the products suitable for local markets, our sales will...

  • Page 25
    ... global specialty retail business especially affect the inventory owned by apparel retailers, as merchandise usually must be ordered well in advance of the season and frequently before fashion trends are evidenced by customer purchases. In addition, the cyclical nature of the global specialty retail...

  • Page 26
    ... value of our brands. Our current strategies include international expansion in a number of countries around the world through a number of channels and brands. For example, we currently plan to open additional Gap stores in Europe and our first Gap stores in China, expand Banana Republic in Europe...

  • Page 27
    ..., we plan over time to continue increasing these types of arrangements as part of our efforts to expand internationally. The effect of these arrangements on our business and results of operations is uncertain and will depend upon various factors, including the demand for our products in new markets...

  • Page 28
    ... marketed for sublease to others. We also lease 15 regional offices in North America and 31 international offices. We own approximately 8.6 million square feet of distribution space located in Fresno, California; Fishkill, New York; Groveport, Ohio; Gallatin, Tennessee; Brampton, Ontario, Canada...

  • Page 29
    ..., settlements, or resolutions may occur and negatively impact income in the quarter of such development, settlement, or resolution. However, we do not believe that the outcome of any current Action would have a material adverse effect on our financial results. Item 4. Removed and Reserved. 13

  • Page 30
    ... the New York Stock Exchange. The number of holders of record of our stock as of March 22, 2010 was 8,903. The table below sets forth the market prices and dividends declared and paid for each of the fiscal quarters in fiscal 2009 and fiscal 2008. Market Prices Fiscal Year 2009 Fiscal Year 2008 High...

  • Page 31
    ... information with respect to purchases of common stock of the Company made during the thirteen weeks ended January 30, 2010, by The Gap, Inc. or any affiliated purchaser, as defined in Exchange Act Rule 10b-18(a)(3). Average Price Paid Per Share Including Commissions Total Number of Shares Purchased...

  • Page 32
    ..."Management's Discussion and Analysis of Financial Condition and Results of Operations" in Item 7 and the Company's Consolidated Financial Statements and related notes herein. 2009 (52) Fiscal Year (number of weeks) 2008 (52) 2007 (52) 2006 (53) 2005 (52) Operating Results ($ in millions) Net sales...

  • Page 33
    ... current maturities of long-term debt. (c) In September 2008, we acquired all of the outstanding capital stock of Athleta, Inc., a women's sports and active apparel company, for an aggregate purchase price of $148 million. (d) Excludes square footage related to the discontinued operation of Forth...

  • Page 34
    ... and Results of Operations. Overview We are a global specialty retailer offering clothing, accessories, and personal care products for men, women, children, and babies under the Gap, Old Navy, Banana Republic, Piperlime, and Athleta brands. We operate stores in the United States, Canada, the United...

  • Page 35
    ... sales by brand, region, and reportable segment. Comparable Store Sales The percentage change in comparable store sales by brand and region and for total Company, as compared with the preceding year, is as follows: Fiscal Year 2009 2008 Gap North America ...Old Navy North America ...Banana Republic...

  • Page 36
    ... of Store Locations Fiscal 2008 Number of Number of Stores Opened Stores Closed January 31, 2009 Number of Square Footage Store Locations (in millions) Gap North America ...Gap Europe ...Gap Asia ...Old Navy North America ...Banana Republic North America ...Banana Republic Asia ...Banana Republic...

  • Page 37
    ... companies. As a general business practice, we review our inventory levels in order to identify slow-moving merchandise and broken assortments (items no longer in stock in a sufficient range of sizes) and use markdowns to clear the majority of this merchandise. ($ in millions) 2009 Fiscal Year 2008...

  • Page 38
    ... payroll and related benefits (for our store operations, field management, distribution centers, and corporate functions); • marketing; • general and administrative expenses; • costs to design and develop our products; • merchandise handling and receiving in distribution centers and stores...

  • Page 39
    ... points as a percentage of net sales, in fiscal 2009 compared with fiscal 2008. The increase was mainly due to $78 million in increased marketing expenses primarily for Gap and Old Navy, offset by $68 million in decreased store payroll and benefits and other store-related expenses. Operating...

  • Page 40
    ...relates to the Forth & Towne brand, whose stores were closed by the end of June 2007. Loss from the discontinued operation of Forth & Towne, net of income tax benefit, was $34 million for fiscal 2007. Liquidity and Capital Resources Our largest source of cash flows is cash collections from the sale...

  • Page 41
    ... increased balance in accounts payable in fiscal 2007 due to the change in vendor payment terms; • a higher payout during the first quarter of fiscal 2008 related to the fiscal 2007 bonus compared with the prior year comparable period; • a decrease in the gift card, gift certificate, and credit...

  • Page 42
    ... are recorded in the Consolidated Balance Sheets at the time of merchandise title transfer, although the letters of credit are generally issued prior to this. Most of our merchandise vendors are now on open account payment terms. As of January 30, 2010, our letter of credit agreements consist of two...

  • Page 43
    ...). The Fisher family shares were purchased at the same weighted-average market price that we paid for share repurchases in the open market. The purchase agreements were terminable upon 15 business days notice by the Company or individual Fisher family members. During fiscal 2009, we repurchased...

  • Page 44
    ... 11 of Notes to Consolidated Financial Statements for discussion of our operating leases. (c) 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...

  • Page 45
    ... Finance Committee of our Board of Directors, which has reviewed our disclosure relating to critical accounting policies and estimates in this annual report on Form 10-K. Merchandise Inventory We value inventory at the lower of cost or market ("LCM"), with cost determined using the weighted-average...

  • Page 46
    ... fourth quarter of fiscal 2009, we completed our annual impairment review of our goodwill and the trade name and did not recognize any impairment charges. The fair value of the Direct reporting unit significantly exceeded its carrying value as of the date of our annual impairment review. We do not...

  • Page 47
    ... accounting policy. We recognize revenue and the related cost of goods sold at the time the products are received by the customers. For store sales, revenue is recognized when the customer receives and pays for the merchandise at the register, primarily with either cash or credit card. For sales...

  • Page 48
    ... See Item 8, Financial Statements and Supplementary Data, Note 1 of Notes to Consolidated Financial Statements for recent accounting pronouncements, including the expected dates of adoption and estimated effects on our financial position, statement of cash flows, and results of operations. 32 Gap...

  • Page 49
    ... Market Risk. We operate in foreign countries, which exposes us to market risk associated with foreign currency exchange rate fluctuations. Our risk management policy is to hedge a significant portion of forecasted merchandise purchases for foreign operations and forecasted royalty payments using...

  • Page 50
    Item 8. Financial Statements and Supplementary Data. THE GAP, INC. INDEX TO CONSOLIDATED FINANCIAL STATEMENTS Page Report of Independent Registered Public Accounting Firm ...Consolidated Balance Sheets as of January 30, 2010 and January 31, 2009 ...Consolidated Statements of Income for the fiscal ...

  • Page 51
    ...Registered Public Accounting Firm To the Board of Directors and Stockholders of The Gap, Inc.: We have audited the accompanying consolidated balance sheets of The Gap, Inc. and subsidiaries (the "Company") as of January 30, 2010 and January 31, 2009, and the related consolidated statements of income...

  • Page 52
    THE GAP, INC. CONSOLIDATED BALANCE SHEETS ($ and shares in millions except par value) January 30, 2010 January 31, 2009 ASSETS Current assets: Cash and cash equivalents ...Short-term investments ...Restricted cash ...Merchandise inventory ...Other current assets ...Total current assets ...Property ...

  • Page 53
    THE GAP, INC. CONSOLIDATED STATEMENTS OF INCOME ($ and shares in millions except per share amounts) 2009 Fiscal Year 2008 2007 Net sales ...Cost of goods sold and occupancy expenses ...Gross profit ...Operating expenses ...Operating income ...Interest expense ...Interest income ...Income from ...

  • Page 54
    ... of adoption of uncertain tax position guidance (formerly FIN 48) ...Issuance of common stock pursuant to stock option and other stock award plans, net of shares withheld for employee taxes ...7 Tax benefit from exercise of stock options and vesting of stock units ...Share-based compensation, net of...

  • Page 55
    ...) 2009 Fiscal Year 2008 2007 Cash flows from operating activities: Net income ...Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization ...Amortization of lease incentives ...Share-based compensation ...Tax benefit from exercise of stock...

  • Page 56
    ... The Gap, Inc., a Delaware Corporation, is a global specialty retailer offering clothing, accessories, and personal care products for men, women, children, and babies under the Gap, Old Navy, Banana Republic, Piperlime, and Athleta brands. We operate stores in the United States, Canada, the United...

  • Page 57
    ... in other long-term assets in the Consolidated Balance Sheets. Insurance and Self-Insurance We use a combination of insurance and self-insurance for a number of risk management activities including workers' compensation, general liability, and employee related health care benefits, a portion of...

  • Page 58
    ...We recognize revenue and the related cost of goods sold at the time the products are received by the customers. Revenue is recognized for store sales when the customer receives and pays for the merchandise at the register. For sales from our online and catalog business, we estimate and defer revenue...

  • Page 59
    ... payroll and related benefits (for our store operations, field management, distribution centers, and corporate functions); • marketing; • general and administrative expenses; • costs to design and develop our products; • merchandise handling and receiving in distribution centers and stores...

  • Page 60
    ... trade name are recorded in other long-term assets in the Consolidated Balance Sheets. Lease Losses The decision to close a store, corporate facility, or distribution center can result in accelerated depreciation and amortization over the revised remaining useful lives of the associated long-lived...

  • Page 61
    .... Our gift cards, gift certificates, and credit vouchers do not have expiration dates. Beginning in the third quarter of fiscal 2009, we changed our estimate of the elapsed time for recording breakage income associated with unredeemed gift certificates and credit vouchers to three years from our...

  • Page 62
    ... techniques used to measure fair value. The update is effective for interim and annual reporting periods beginning after December 15, 2009, except for the requirement to disclose purchases, sales, issuances, and settlements related to level 3 measurements, which will be effective for fiscal years...

  • Page 63
    ...deposit and time deposits ...Short-term investments (original maturities of greater than 91 days) ... $1,279 590 479 1,069 $2,348 $ 50 175 $1,195 275 245 520 $1,715 $ $ - - - $ 225 We did not record any impairment charges on our cash equivalents and short-term investments in fiscal 2009, 2008, or...

  • Page 64
    ...long-lived assets, primarily related to our Stores reportable segment, of $14 million, $5 million, and $13 million for fiscal 2009, 2008, and 2007, respectively, which is recorded in operating expenses in the Consolidated Statements of Income. See Note 3 of Notes to Consolidated Financial Statements...

  • Page 65
    ... currency rates. The activity was not material for fiscal 2009 or 2008. Accumulated Other Comprehensive Income Accumulated OCI consists of the following: ($ in millions) January 30, 2010 January 31, 2009 Foreign currency translation ...Accumulated changes in fair value of derivative financial...

  • Page 66
    ... by approximately 550 employees in fiscal 2007. The results of Forth & Towne, net of income tax benefit, are presented as a discontinued operation in the Consolidated Statements of Income for all periods presented and are as follows: Fiscal Year ($ in millions) 2009 2008 2007 Net sales ...Loss from...

  • Page 67
    ... are recorded in the Consolidated Balance Sheets at the time of merchandise title transfer, although the letters of credit are generally issued prior to this. Most of our merchandise vendors are now on open account payment terms. As of January 30, 2010, our letter of credit agreements consist of two...

  • Page 68
    ...recorded at market value and are designated for the deferred compensation plans. The fair value of the Company's deferred compensation plan assets is determined based on quoted market prices, and the assets are recorded in other long-term assets in the Consolidated Balance Sheets. 52 Gap Inc. Form...

  • Page 69
    .... We operate in foreign countries, which exposes us to market risk associated with foreign currency exchange rate fluctuations. Our risk management policy is to hedge a significant portion of forecasted merchandise purchases for foreign operations, forecasted intercompany royalty payments, and...

  • Page 70
    ... Hedges We also use foreign exchange forward contracts to hedge the net assets of international subsidiaries to offset the foreign currency translation and economic exposures related to our investment in the subsidiaries. There were no amounts recorded in income for fiscal 2009, 2008, or 2007 as...

  • Page 71
    ... about Derivative Financial Instruments The fair values of asset and liability derivative financial instruments are as follows: January 30, 2010 Asset Derivatives ($ in millions) Balance Sheet Location Fair Value Liability Derivatives Balance Sheet Location Fair Value Derivatives designated as cash...

  • Page 72
    ... exchange forward contracts used to hedge forecasted intercompany royalty payments. The gain of $1 million related to the cross-currency interest rate swap was recorded in operating expenses. (2) Recorded in operating expenses. Note 9. Common Stock Common and Preferred Stock The Board of Directors...

  • Page 73
    ... in the Consolidated Statements of Income, primarily in operating expenses, is as follows: ($ in millions) 2009 Fiscal Year 2008 2007 Stock units ...Stock options ...Employee stock purchase plan ...Share-based compensation expense ...Less: Income tax benefit ...Share-based compensation expense...

  • Page 74
    ... were recognized in fiscal 2009, 2008, or 2007 as a result of the modification. The modification clause expired in February 2009. Stock Units Under the 2006 Plan, Stock Units are granted to employees and members of the Board of Directors. Vesting is based on continued service by the employee and is...

  • Page 75
    ... Consolidated Balance Sheets. Stock Options The fair value of options issued during fiscal 2009, 2008, and 2007 was estimated on the date of grant using the following assumptions: Fiscal Year 2009 2008 2007 Expected term (in years) ...Expected volatility ...Dividend yield ...Risk-free interest rate...

  • Page 76
    ...85 percent of the closing price on the New York Stock Exchange on the last day of the three-month purchase period. Accordingly, compensation expense is recognized for an amount equal to the 15 percent discount. Employees pay for their stock purchases through payroll deductions at a rate equal to any...

  • Page 77
    Rent expense related to our store premises, corporate facilities, and distribution centers under operating leases is as follows: ($ in millions) 2009 Fiscal Year 2008 2007 Minimum rent expense ...Contingent rent expense ...Less: Sublease income ...Total ... $ 973 $ 992 $ 970 135 126 129 (2) (4) (4)...

  • Page 78
    .... The difference between the effective income tax rate and the U.S. federal income tax rate is as follows: 2009 Fiscal Year 2008 2007 Federal tax rate ...State income taxes, less federal benefit ...Tax impact of foreign operations ...Other ...Effective tax rate ...Deferred tax assets (liabilities...

  • Page 79
    .... There were no accrued penalties related to the unrecognized tax benefits as of January 30, 2010 and January 31, 2009. The Company conducts business globally, and as a result, files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. In the normal...

  • Page 80
    ... Company. Our contributions to the deferred compensation plan in fiscal 2009, 2008, and 2007 were not material. We do not match non-employee members of the Board of Directors contributions under the deferred compensation plan. Note 14. Earnings per Share Weighted-average number of shares used for...

  • Page 81
    ... to Consolidated Financial Statements. Net sales by brand, region, and reportable segment are as follows: ($ in millions) Fiscal Year 2009 Gap Old Navy Banana Republic Other (3) Total Percentage of Net Sales U.S. (1) ...Canada ...Europe ...Asia ...Other Regions ...Total Stores reportable segment...

  • Page 82
    Fiscal Year 2008 Gap Old Navy Banana Republic Other (3) Total Percentage of Net Sales U.S. (1) ...Canada ...Europe ...Asia ...Other Regions ...Total Stores reportable segment ...Direct reportable segment (2) ...Total ...Sales Growth (Decline) ...Fiscal Year 2007 $3,840 329 724 732 - 5,625 ...

  • Page 83
    ... 30, 2010 January 31, 2009 United States ...Foreign ...Total long-lived assets ... $2,420 581 $3,001 $2,743 544 $3,287 Note 17. Quarterly Information (Unaudited) The following quarterly data are derived from our Consolidated Statements of Income: 13 Weeks Ended May 2, 2009 13 Weeks Ended August...

  • Page 84
    ...independent registered public accounting firm, as stated in their report which is included herein. Changes in Internal Control over Financial Reporting There was no change in the Company's internal control over financial reporting that occurred during the Company's fourth quarter of fiscal 2009 that...

  • Page 85
    ... "Compensation of Directors," "Corporate Governance-Compensation and Management Development Committee," and "Executive Compensation and Related Information" in the 2010 Proxy Statement. Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. The...

  • Page 86
    ...: See "Index to Consolidated Financial Statements" in Part II, Item 8 of this Form 10-K. Financial Statement Schedules: Schedules are included in the Consolidated Financial Statements or notes of this Form 10-K or are not required. Exhibits: The exhibits listed in the accompanying index to exhibits...

  • Page 87
    ... (Principal Financial and Accounting Officer) Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. Date: March 26, 2010 Date: March 26, 2010 Date...

  • Page 88
    ... 21, 2001, between Registrant and The Bank of New York, filed as Exhibit 4.2 to Registrant's Annual Report on Form 10-K for the year ended February 2, 2002, Commission File No. 1-7562. Credit Agreement, dated as of August 30, 2004, among The Gap, Inc., the LC Subsidiaries, the Subsidiary Borrowers...

  • Page 89
    ...Second Amendment to Supplemental Deferred Compensation Plan - Merging of Executive Deferred Compensation Plan into the Plan and Name Change to Deferred Compensation Plan, filed as Exhibit 10.33 to Registrant's Form 10-K for the year ended January 31, 2009, Commission File No. 1-7562. Third Amendment...

  • Page 90
    ...of Executive Deferred Compensation Plan into the Plan and Name Change to Deferred Compensation Plan, filed as Exhibit 10.2 to Registrant's Form 10-Q for the quarter ended October 31, 2009, Commission File No. 1-7562. 1981 Stock Option Plan, filed as Exhibit 4.1 to Registrant's Registration Statement...

  • Page 91
    .... Non-Employee Director Retirement Plan, dated October 27, 1992, filed as Exhibit 10.43 to Registrant's Annual Report on Form 10-K for the year ended January 30, 1993, Commission File No. 1-7562. Amendment, authorized as of August 20, 2008, to Nonemployee Director Retirement Plan, dated October 27...

  • Page 92
    ... of Stock Unit Agreement and Stock Unit Deferral Election Form for Nonemployee Directors under the 2006 Long-Term Incentive Plan, filed as Exhibit 10.2 to Registrant's Form 10-Q for the quarter ended July 29, 2006, Commission File No. 1-7562. Form of Performance Share Agreement for Executives under...

  • Page 93
    ... Form of Director Stock Unit Agreement and Stock Unit Deferral Election Form under the 2006 Long-Term Incentive Plan, filed as Exhibit 10.4 to Registrant's Form 10-Q for the quarter ended November 3, 2007, Commission File No. 1-7562. Summary of Revised Timing of Annual Board Member Stock Unit Grants...

  • Page 94
    ... following materials from The Gap, Inc.'s Annual Report on Form 10-K for the year ended January 30, 2010 are formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Income, (iii) Consolidated Statements of Stockholders' Equity, (iv...

  • Page 95
    [This page intentionally left blank.]

  • Page 96
    [This page intentionally left blank.]

  • Page 97
    ... President, Banana Republic John Ermatinger President, Asia Pacific Region, Gap Inc. Marka Hansen President, Gap North America Tom Keiser EVP and Chief Information Officer, Gap Inc. Toby Lenk President, Gap Inc. Direct Art Peck President, Gap Inc. Outlet; EVP, Strategy and Operations, Gap Inc. Stan...

  • Page 98
    ... quarter and month, please call: - Within the U.S.: 800-GAP-NEWS - Outside the U.S.: 706-634-4421 Stock Exchange listing Trading Symbol "GPS"/New York Stock Exchange Annual Shareholders' Meeting May 18, 2010, 10 a.m. Gap Inc. headquarters 2 Folsom Street San Francisco, CA 94105 Independent auditors...

  • Page 99
    About this report The Gap Inc. 2009 Annual Report was printed by an environmentally sustainable printer, which utilizes 100 percent renewable wind power and sustainable manufacturing principles including: socially responsible procurement; manufacturing; green chemistry principles; reduced VOC inks ...

  • Page 100
    Wear your passion.