The Gap 2007 Annual Report Download - page 27

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THE GAP, INC.
CONSOLIDATED BALANCE SHEETS
($ and shares in millions except par value)
February 2,
2008
February 3,
2007
ASSETS
Current assets:
Cash and cash equivalents ................................................ $1,724 $ 2,030
Short-terminvestments ................................................... 177 570
Restrictedcash .......................................................... 38 44
Merchandise inventory .................................................... 1,575 1,796
Othercurrentassets...................................................... 572 589
Total current assets .................................................. 4,086 5,029
Property and equipment, net ................................................... 3,267 3,197
Otherlong-termassets ....................................................... 485 318
Total assets ......................................................... $7,838 $ 8,544
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current maturities of long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 138 $ 325
Accounts payable ........................................................ 1,006 772
Accrued expenses and other current liabilities ................................. 1,259 1,159
Incometaxespayable .................................................... 30 16
Total current liabilities ................................................. 2,433 2,272
Long-term liabilities:
Long-termdebt .......................................................... 50 188
Lease incentives and other long-term liabilities ................................ 1,081 910
Total long-term liabilities ............................................... 1,131 1,098
Commitments and contingencies (see Notes 10 and 14)
Stockholders’ equity:
Common stock $0.05 par value .............................................
Authorized 2,300 shares; Issued 1,100 and 1,093 shares;
Outstanding 734 and 814 shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 55
Additional paid-in capital .................................................. 2,783 2,631
Retained earnings ....................................................... 9,223 8,646
Accumulated other comprehensive earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125 77
Treasury stock, at cost (366 and 279 shares) ................................. (7,912) (6,235)
Total stockholders’ equity .............................................. 4,274 5,174
Total liabilities and stockholders’ equity .................................. $7,838 $ 8,544
See Notes to the Consolidated Financial Statements
36฀฀฀Form฀10-K
THE GAP, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
($ and shares in millions except per share amounts)
52 Weeks Ended
February 2, 2008
53 Weeks Ended
February 3, 2007
52 Weeks Ended
January 28, 2006
Net sales ............................................. $15,763 $15,923 $16,019
Cost of goods sold and occupancy expenses ................ 10,071 10,266 10,145
Gross profit ........................................... 5,692 5,657 5,874
Operating expenses .................................... 4,377 4,432 4,099
Interestexpense ....................................... 26 41 45
Interest income ........................................ (117) (131) (93)
Earnings from continuing operations before income taxes ..... 1,406 1,315 1,823
Incometaxes .......................................... 539 506 692
Earnings from continuing operations, net of income taxes . . . . . 867 809 1,131
Loss from discontinued operation, net of income tax benefit .... (34) (31) (18)
Netearnings .......................................... $ 833 $ 778 $ 1,113
Weighted-average number of shares—basic . . . . . . . . . . . . . . . . 791 831 881
Weighted-average number of shares—diluted . . . . . . . . . . . . . . . 794 836 902
Basic earnings per share:
Earnings from continuing operations, net of income
taxes ........................................... $ 1.10 $ 0.97 $ 1.28
Loss from discontinued operation, net of income tax
benefit .......................................... (0.05) (0.03) (0.02)
Net earnings per share .............................. $ 1.05 $ 0.94 $ 1.26
Diluted earnings per share:
Earnings from continuing operations, net of income
taxes ........................................... $ 1.09 $ 0.97 $ 1.26
Loss from discontinued operation, net of income tax
benefit .......................................... (0.04) (0.04) (0.02)
Net earnings per share .............................. $ 1.05 $ 0.93 $ 1.24
See Notes to the Consolidated Financial Statements
฀฀ Form฀10-K฀฀฀37