The Gap 2013 Annual Report Download - page 35

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11
Changes in the regulatory or administrative landscape could adversely affect our financial condition and
results of operations.
Laws and regulations at the local, state, federal, and international levels frequently change, and the ultimate cost
of compliance cannot be precisely estimated. In addition, we cannot predict the impact that may result from
changes in the regulatory or administrative landscape. Any changes in regulations, the imposition of additional
regulations, or the enactment of any new or more stringent legislation that impacts employment and labor, trade,
product safety, transportation and logistics, health care, tax, privacy, operations, or environmental issues, among
others, could have an adverse impact on our financial condition and results of operations.
Item 1B. Unresolved Staff Comments.
None.
Item 2. Properties.
We have Company-operated stores in the United States, Canada, the United Kingdom, France, Ireland, Japan,
Italy, China, Hong Kong, and beginning in March 2014, Taiwan. As of February 1, 2014, our Company-operated
stores aggregated approximately 37.2 million square feet. Almost all of these stores are leased, with one or more
renewal options after our initial term. Economic terms vary by type of location.
We own approximately 1.2 million square feet of corporate office space located in San Francisco, San Bruno, and
Rocklin, California, of which approximately 476,000 square feet is leased to and occupied by others. We lease
approximately 1.1 million square feet of corporate office space located in San Francisco, Rocklin, Petaluma,
Pleasanton, and Los Angeles, California; New York, New York; Albuquerque, New Mexico; and Toronto, Ontario,
Canada. We also lease regional offices in North America and in various international locations. We own
approximately 8.6 million square feet of distribution space located in Fresno, California; Fishkill, New York;
Groveport, Ohio; Gallatin, Tennessee; Brampton, Ontario, Canada; and Rugby, England. Of the 8.6 million square
feet of owned distribution space, 100,000 square feet is leased to others. We lease approximately 1.8 million
square feet of distribution space located in Phoenix, Arizona; Grove City and Obetz, Ohio; Erlanger and Hebron,
Kentucky; Bolton and Mississauga, Ontario, Canada; and Stafford, England. Third-party logistics companies
provide logistics services to us through distribution warehouses in Chiba, Japan; Shanghai and Hong Kong,
China; and Edison, New Jersey.
Item 3. Legal Proceedings.
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. Actions filed against us from time to time include commercial, intellectual property,
customer, employment, and data privacy 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.
We cannot predict with assurance the outcome of Actions brought against us. Accordingly, developments,
settlements, or resolutions may occur and 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 effect on our
Consolidated Financial Statements.
Item 4. Mine Safety Disclosures.
Not applicable.