The Gap 2009 Annual Report Download - page 82

Fiscal Year 2008 Gap Old Navy Banana Republic Other (3) Total Percentage of Net Sales
U.S.(1) .......................................... $3,840 $4,840 $2,221 $ — $10,901 75%
Canada ......................................... 329 392 146 — 867 6
Europe ......................................... 724 — 23 33 780 6
Asia ............................................ 732 — 101 47 880 6
OtherRegions................................... — — — 68 68 —
Total Stores reportable segment .................. 5,625 5,232 2,491 148 13,496 93
Direct reportable segment (2) ..................... 333 475 145 77 1,030 7
Total ........................................... $5,958 $5,707 $2,636 $225 $14,526 100%
SalesGrowth(Decline) ........................... (5)% (14)% (3)% 84% (8)%
Fiscal Year 2007 Gap Old Navy Banana Republic Other (3) Total Percentage of Net Sales
U.S.(1) .......................................... $4,146 $5,776 $2,351 $ — $12,273 78%
Canada ......................................... 364 461 147 — 972 6
Europe ......................................... 822 — — 5 827 5
Asia ............................................ 613 — 89 36 738 5
OtherRegions................................... — — — 50 50 —
Total Stores reportable segment .................. 5,945 6,237 2,587 91 14,860 94
Direct reportable segment (2) ..................... 308 428 136 31 903 6
Total ........................................... $6,253 $6,665 $2,723 $122 $15,763 100%
SalesGrowth(Decline) ........................... (4)% (2)% 7% 213% (1)%
(1) U.S. includes the United States and Puerto Rico.
(2) U.S. only. Direct includes Athleta beginning September 2008.
(3) Other includes our wholesale business, franchise business, Piperlime, and beginning September 2008, Athleta.
Financial Information for Reportable Segments
Operating income is the measure of profit we use to make decisions on allocating resources to our operating
segments and to assess the operating performance of each operating segment. It is defined as income before
interest expense, interest income, and income taxes. Corporate expenses are allocated to each operating segment
and recorded in operating income on a rational and systematic basis.
Reportable segment assets presented below include those assets that are directly used in, or allocable to, that
segment’s operations. Total assets for the Stores reportable segment primarily consist of merchandise inventory,
the net book value of store assets, and prepaid expenses and receivables related to store operations. Total assets
for the Direct reportable segment primarily consist of merchandise inventory, the net book value of information
technology and distribution center assets, and the net book value of goodwill and intangible assets as a result of
the acquisition of Athleta. We do not allocate corporate assets to our operating segments. Unallocated corporate
assets primarily include cash and cash equivalents, short-term investments, restricted cash, the net book value of
corporate property and equipment, and tax-related assets. Reportable segment capital expenditures are direct
purchases of property and equipment by that segment. Unallocated capital expenditures primarily consist of
corporate purchases of property and equipment.
66 Gap Inc. Form 10-K