The Gap 2007 Annual Report Download - page 42

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NOTE 16. SEGMENT INFORMATION
We are primarily engaged in selling retail apparel through stores in North America, Europe and Asia. We identify
our operating segments according to how operations are managed. Our operating segments include Gap North
America, Banana Republic North America, Old Navy North America, Europe, Asia, Outlet and Direct. Our stores
sell merchandise under the Gap, Old Navy, and Banana Republic brand names. We consider our operating
segments to be similar in terms of economic characteristics, production processes, and operations, and have
aggregated them into a single reporting segment. Revenues from external customers are derived from
merchandise sales and we do not rely on any major customers as a source of revenue.
Net Sales
($ in millions)
52 Weeks Ended February 2, 2008 Gap Old Navy
Banana
Republic Other (2) Total
Percentage of
Net Sales
U.S. (1) ............Stores $4,146 $5,776 $2,351 $ — $12,273 78%
Direct (Online) 308 428 136 31 903 6%
Canada . . . . . . . . . . . . 364 461 147 — 972 6%
Europe . . . . . . . . . . . . . 822 — — 5 827 5%
Asia . . . . . . . . . . . . . . . 613 — 89 36 738 5%
Other (2) . . . . . . . . . . . — — — 50 50 —
Total Company ...... $6,253 $6,665 $2,723 $122 $15,763 100%
53 Weeks Ended February 3, 2007 Gap Old Navy
Banana
Republic Other (2) Total
Percentage of
Net Sales
U.S. (1) ............Stores $4,494 $6,042 $2,251 $ — $12,787 80%
Direct (Online) 261 345 117 7 730 5%
Canada . . . . . . . . . . . . 379 442 119 — 940 6%
Europe . . . . . . . . . . . . . 792 — — 1 793 5%
Asia . . . . . . . . . . . . . . . 581 — 61 7 649 4%
Other (2) . . . . . . . . . . . — — — 24 24 —
Total Company ...... $6,507 $6,829 $2,548 $ 39 $15,923 100%
52 Weeks Ended January 28, 2006 Gap Old Navy
Banana
Republic Other (2) Total
Percentage of
Net Sales
U.S. (1) ............Stores $4,767 $6,153 $2,100 $ — $13,020 81%
Direct (Online) 233 268 91 3 595 4%
Canada . . . . . . . . . . . . 409 435 96 — 940 6%
Europe . . . . . . . . . . . . . 825 — — 2 827 5%
Asia . . . . . . . . . . . . . . . 603 — 14 1 618 4%
Other (2) . . . . . . . . . . . — — — 19 19 —
Total Company ...... $6,837 $6,856 $2,301 $ 25 $16,019 100%
(1) U.S. includes the United States and Puerto Rico.
(2) Other includes our wholesale business, franchise business beginning September 2006, Piperlime.com
beginning October 2006, and Business Direct which ended in July 2006.
Long-lived assets of our international operations, including Puerto Rico, were $632 million and $537 million, and
represented 18 percent and 16 percent of our long-lived assets for fiscal 2007 and 2006, respectively.
66฀฀฀Form฀10-K
NOTE 17. QUARTERLY INFORMATION (UNAUDITED)
The following quarterly data are derived from our Consolidated Statements of Earnings with the results of Forth &
Towne presented as a discontinued operation for all periods presented:
($ in millions except per
share amounts)
13 Weeks Ended
May 5, 2007
13 Weeks Ended
August 4, 2007 (b)
13 Weeks Ended
November 3, 2007
13 Weeks Ended
February 2, 2008
52 Weeks Ended
February 2, 2008
Fiscal 2007
Net sales .................. $3,549 $3,685 $3,854 $4,675 $15,763
Gross profit ................ $1,355 $1,264 $1,447 $1,626 $ 5,692
Earnings from continuing
operations, net of income
taxes . . . . . . . . . . . . . . . . . . . $ 205 $ 158 $ 239 $ 265 $ 867
Loss from discontinued
operation, net of income tax
benefit .................. $ (27) $ (6) $ (1) $ — $ (34)
Net earnings . . . . . . . . . . . . . . . $ 178 $ 152 $ 238 $ 265 $ 833
Basic earnings per share (a):
Earnings from continuing
operations, net of income
taxes ................... $ 0.25 $ 0.19 $ 0.30 $ 0.36 $ 1.10
Loss from discontinued
operation, net of income tax
benefit .................. $(0.03) $ — $ — $ — $ (0.05)
Net earnings per share ...... $ 0.22 $ 0.19 $ 0.30 $ 0.36 $ 1.05
Diluted earnings per share (a):
Earnings from continuing
operations, net of income
taxes ................... $ 0.25 $ 0.19 $ 0.30 $ 0.35 $ 1.09
Loss from discontinued
operation, net of income tax
benefit .................. $(0.03) $ — $ — $ — $ (0.04)
Net earnings per share ...... $ 0.22 $ 0.19 $ 0.30 $ 0.35 $ 1.05
฀฀ Form฀10-K฀฀฀67