The Gap 2010 Annual Report Download - page 73

As a multinational company, we are subject to various proceedings, lawsuits, disputes, and claims (“Actions”)
arising in the ordinary course of our business. Many of these Actions raise complex factual and legal issues and are
subject to uncertainties. As of January 29, 2011, actions filed against us included commercial, intellectual property,
customer, employment, data privacy, and securities related claims, including class action lawsuits. The plaintiffs in
some Actions seek unspecified damages or injunctive relief, or both. Actions are in various procedural stages, and
some are covered in part by insurance. As of January 29, 2011 and January 30, 2010, we recorded a liability for the
estimated loss if the outcome of an Action is expected to result in a loss that is considered probable and reasonably
estimable. The amount of liability as of January 29, 2011 and January 30, 2010 was not material for any individual
Action or in total. Subsequent to January 29, 2011, no information has become available that indicates our estimate
is materially misstated.
We cannot predict with assurance the outcome of Actions brought against us. Accordingly, adverse developments,
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 results of operations, cash flows, or financial position taken as a whole.
Note 14. Segment Information
We identify our operating segments according to how our business activities are managed and evaluated. All of
our operating segments sell a group of similar products – apparel, accessories, and personal care products. We
have two reportable segments:
• Stores – The Stores reportable segment includes the results of the retail stores for Gap, Old Navy, and
Banana Republic. We have aggregated the results of all Stores operating segments into one reportable segment
because we believe the operating segments have similar economic characteristics.
• Direct – The Direct operating segment includes the results for our online brands, both domestic and
international. Due to the different distribution method associated with the Direct operating segment, Direct is
considered a reportable segment.
The accounting policies for each of our operating segments are the same as those described in Note 1 of Notes to
Consolidated Financial Statements.
Net sales by brand, region, and reportable segment are as follows:
($ in millions)
Fiscal Year 2010 Gap Old Navy Banana
Republic Other (3) Total Percentage of Net Sales
U.S.(1) ........................................... $3,454 $4,945 $2,084 $ — $10,483 71%
Canada .......................................... 341 427 190 — 958 7
Europe .......................................... 703 — 36 47 786 5
Asia ............................................. 872 — 118 59 1,049 7
Otherregions .................................... — — — 89 89 1
Total Stores reportable segment ................... 5,370 5,372 2,428 195 13,365 91
Direct reportable segment (2) ...................... 365 533 155 246 1,299 9
Total ............................................ $5,735 $5,905 $2,583 $441 $14,664 100%
SalesGrowth..................................... 2% 2% 5% 34% 3%
66 Gap Inc. Form 10-K