The Gap 2013 Annual Report Download - page 21

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• 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:
• the risk that the adoption of new accounting pronouncements will impact future results;
• the risk that changes in global economic conditions or consumer spending patterns could adversely impact our
results of operations;
• the highly competitive nature of our business in the United States and internationally;
• the risk that we or our franchisees will be unsuccessful in gauging apparel trends and changing consumer
preferences;
• the risk that if we are unable to manage our inventory effectively, our gross margins will be adversely affected;
• the risks to our efforts to expand internationally, including our ability to operate under a global brand structure,
foreign exchange, and operating in regions where we have less experience;
• the risks to our business, including our costs and supply chain, associated with global sourcing and
manufacturing;
• the risks associated with importing merchandise from foreign countries, including failure of our vendors to
adhere to our Code of Vendor Conduct, could have a negative impact on our reputation or operations;
• the risk that trade matters could increase the cost or reduce the supply of apparel available to us and adversely
affect our business, financial condition, and results of operations;
• the risk that our franchisees’ operation of franchise stores is not directly within our control and could impair the
value of our brands;
• the risk that we or our franchisees will be unsuccessful in identifying, negotiating, and securing new store
locations and renewing, modifying, or terminating leases for existing store locations effectively;
• the risk that comparable sales and margins will experience fluctuations;
• the risk that changes in our credit profile or deterioration in market conditions may limit our access to the capital
markets and adversely impact our financial results or our business initiatives;
• the risk that the failure to attract and retain key personnel could have an adverse impact on our results of
operations;
• the risk that our investments in omni-channel shopping initiatives may not deliver the results we anticipate;
• the risk that updates or changes to our information technology (“IT”) systems may disrupt our operations;
• the risk that we are subject to data or other security breaches that may result in increased costs, violations of
law, significant legal and financial exposure, and a loss of confidence in our security measures, which could
have an adverse effect on our results of operations and our reputation;
• the risk that natural disasters, public health crises, political crises, or other catastrophic events could adversely
affect our operations and financial results, or those of our franchisees or vendors;
• the risk that changes in the regulatory or administrative landscape could adversely affect our financial condition,
strategies, and results of operations;
• the risk that we do not repurchase some or all of the shares we anticipate purchasing pursuant to our
repurchase program; and
• the risk that we will not be successful in defending various proceedings, lawsuits, disputes, claims, and audits.
Additional information regarding factors that could cause results to differ can be found in this Annual Report on
Form 10-K and our other filings with the U.S. Securities and Exchange Commission (“SEC”).