The Gap 2013 Annual Report Download - page 39

Download and view the complete annual report

Please find page 39 of the 2013 The Gap annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 110

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110

15
Item 6. Selected Financial Data.
The following selected financial data are derived from the Consolidated Financial Statements of the Company.
We have also included certain non-financial data to enhance your understanding of our business. The data set
forth below should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and
Results of Operations” in Item 7 and the Company’s Consolidated Financial Statements and related notes in
Item 8.
Fiscal Year (number of weeks)
2013 (52) 2012 (53) 2011 (52) 2010 (52) 2009 (52)
Operating Results ($ in millions)
Net sales $ 16,148 $ 15,651 $ 14,549 $ 14,664 $ 14,197
Gross margin 39.0% 39.4 % 36.2 % 40.2 % 40.3 %
Operating margin 13.3% 12.4 % 9.9 % 13.4 % 12.8 %
Net income $ 1,280 $ 1,135 $ 833 $ 1,204 $ 1,102
Cash dividends paid $ 321 $ 240 $ 236 $ 252 $ 234
Per Share Data (number of shares in millions)
Basic earnings per share $ 2.78 $ 2.35 $ 1.57 $ 1.89 $ 1.59
Diluted earnings per share $ 2.74 $ 2.33 $ 1.56 $ 1.88 $ 1.58
Weighted-average number of shares—basic 461 482 529 636 694
Weighted-average number of shares—diluted 467 488 533 641 699
Cash dividends declared and paid per share $ 0.70 $ 0.50 $ 0.45 $ 0.40 $ 0.34
Balance Sheet Information ($ in millions)
Merchandise inventory $ 1,928 $ 1,758 $ 1,615 $ 1,620 $ 1,477
Total assets $ 7,849 $ 7,470 $ 7,422 $ 7,065 $ 7,985
Working capital $ 1,985 $ 1,788 $ 2,181 $ 1,831 $ 2,533
Total long-term debt, less current maturities (1) $ 1,369 $ 1,246 $ 1,606 $ — $ —
Stockholders’ equity $ 3,062 $ 2,894 $ 2,755 $ 4,080 $ 4,891
Other Data ($ and square footage in millions)
Cash used for purchases of property and
equipment $ 670 $ 659 $ 548 $ 557 $ 334
Acquisition of business, net of cash acquired
(2) $ —$129$ —$ —$ —
Percentage increase (decrease) in comparable
sales (3) 2% 5 % (4)% 2 % (3)%
Number of Company-operated store locations
open at year-end 3,164 3,095 3,036 3,068 3,095
Number of franchise store locations open at
year-end 375 312 227 178 136
Number of store locations open at year-end (4) 3,539 3,407 3,263 3,246 3,231
Square footage of Company-operated store
space at year-end 37.2 36.9 37.2 38.2 38.8
Percentage increase (decrease) in square
footage of Company-operated store space at
year-end 0.8% (0.8)% (2.6)% (1.5)% (1.8)%
Number of employees at year-end 137,000 136,000 132,000 134,000 135,000
__________
(1) In April 2012, we made the first scheduled payment of $40 million related to our $400 million term loan and in August 2012, we repaid
the remaining $360 million balance in full.