The Gap 2012 Annual Report Download - page 20

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Special Note on Forward-Looking Statements
This Annual Report on Form 10-K contains forward-looking statements within the “safe harbor” provisions of the Private
Securities Litigation Reform Act of 1995. All statements other than those that are purely historical are forward-looking
statements. Words such as “expect,” “anticipate,” “believe,” “estimate,” “intend,” “plan,” “project,” and similar expressions
also identify forward-looking statements. Forward-looking statements include, but are not limited to, statements regarding
the following:
• our international expansion plans, including our plans to open Old Navy stores outside of North America, open
additional Gap stores in China, and open additional international outlet stores;
• continued growth of online sales internationally;
• our ability to maintain a strong financial profile with ample liquidity;
• the outcome of proceedings, lawsuits, disputes, and claims;
• improving sales with healthy merchandise margins;
• investing in our business;
• growing earnings per share;
• returning excess cash to shareholders;
• diluted earnings per share in fiscal 2013;
• growing sales with healthy merchandise margins;
• managing our expenses in a disciplined manner;
• growing revenues through new brands, channels, and geographies;
• continuing to open franchise stores worldwide;
• opening additional Athleta stores;
• the number of new store openings and store closings in fiscal 2013;
• net square footage change in fiscal 2013;
• the number of new franchise stores in fiscal 2013;
• impact of returning to a 52-week fiscal year in fiscal 2013;
• impact of foreign exchange rate fluctuations;
• operating margin in fiscal 2013;
• the effective tax rate in fiscal 2013;
• current cash balances and cash flows being sufficient to support our business operations, including growth initiatives
and planned capital expenditures;
• our ability to supplement near-term liquidity, if necessary, with our revolving credit facility;
• depreciation and amortization in fiscal 2013;
• capital expenditures in fiscal 2013;
• our plan to increase our dividend in fiscal 2013;
• the estimates and assumptions we use in our accounting policies;
• the impact on our income tax provision of any changes in our estimated tax liability;
• the adoption of accounting standards updates in fiscal 2013;
• the extension of our portfolio of brands and further penetration of the higher-end apparel market;
• the assumptions used to estimate the grant date fair value of stock options issued;
• the expected amount of future lease payments;
• our intention to utilize undistributed earnings of our foreign subsidiaries;
• total gross unrecognized tax benefits;
• expected payments to International Business Machines Corporation ("IBM"); and
• the impact of losses due to indemnification obligations.
Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause
our actual results to differ materially from those in the forward-looking statements. These factors include, without
limitation, the following: