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Segment Information | 12 Months Ended
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Feb. 02, 2013
Segment Reporting [Abstract] |
Segment Information | Note 16. 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. As of February 2, 2013, 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 the operating segments have similar economic characteristics.
• | Direct – The Direct reportable segment includes the results of our online brands, as well as Piperlime and Athleta. Intermix is also a component of the Direct reportable segment; however, its results since the date of acquisition are immaterial.
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) |  | Gap |  | Old Navy |  | Banana Republic |  | Franchise (3) |  | Other (4) |  | Total |  | Percentage of Net Sales
Fiscal 2012 |  |  |  |  |  |  |
U.S. (1) |  | $ | 3,323 |  |  | $ | 4,945 |  |  | $ | 2,171 |  |  | $ | — |  |  | $ | — |  |  | $ | 10,439 |  |  | 67 | %
Canada |  | 352 |  |  | 410 |  |  | 216 |  |  | — |  |  | — |  |  | 978 |  |  | 6 |
Europe |  | 691 |  |  | — |  |  | 66 |  |  | 63 |  |  | — |  |  | 820 |  |  | 5 |
Asia |  | 1,062 |  |  | 9 |  |  | 148 |  |  | 86 |  |  | — |  |  | 1,305 |  |  | 9 |
Other regions |  | — |  |  | — |  |  | — |  |  | 182 |  |  | — |  |  | 182 |  |  | 1 |
Total Stores reportable segment |  | 5,428 |  |  | 5,364 |  |  | 2,601 |  |  | 331 |  |  | — |  |  | 13,724 |  |  | 88 |
Direct reportable segment (2) |  | 537 |  |  | 748 |  |  | 247 |  |  | — |  |  | 395 |  |  | 1,927 |  |  | 12 |
Total |  | $ | 5,965 |  |  | $ | 6,112 |  |  | $ | 2,848 |  |  | $ | 331 |  |  | $ | 395 |  |  | $ | 15,651 |  |  | 100 | %
Sales growth |  | 5 | % |  | 8 | % |  | 8 | % |  | 17 | % |  | 31 | % |  | 8 | % |  |
($ in millions) |  | Gap |  | Old Navy |  | Banana Republic |  | Franchise (3) |  | Other (4) |  | Total |  | Percentage of Net Sales
Fiscal 2011 |  |  |  |  |  |  |
U.S. (1) |  | $ | 3,231 |  |  | $ | 4,644 |  |  | $ | 2,060 |  |  | $ | — |  |  | $ | — |  |  | $ | 9,935 |  |  | 68 | %
Canada |  | 333 |  |  | 392 |  |  | 193 |  |  | — |  |  | — |  |  | 918 |  |  | 6 |
Europe |  | 702 |  |  | — |  |  | 54 |  |  | 69 |  |  | — |  |  | 825 |  |  | 6 |
Asia |  | 966 |  |  | — |  |  | 131 |  |  | 79 |  |  | — |  |  | 1,176 |  |  | 8 |
Other regions |  | — |  |  | — |  |  | — |  |  | 135 |  |  | — |  |  | 135 |  |  | 1 |
Total Stores reportable segment |  | 5,232 |  |  | 5,036 |  |  | 2,438 |  |  | 283 |  |  | — |  |  | 12,989 |  |  | 89 |
Direct reportable segment (2) |  | 433 |  |  | 638 |  |  | 188 |  |  | — |  |  | 301 |  |  | 1,560 |  |  | 11 |
Total |  | $ | 5,665 |  |  | $ | 5,674 |  |  | $ | 2,626 |  |  | $ | 283 |  |  | $ | 301 |  |  | $ | 14,549 |  |  | 100 | %
Sales growth (decline) |  | (1 | )% |  | (4 | )% |  | 2 | % |  | 45 | % |  | 22 | % |  | (1 | )% |  |
($ in millions) |  | Gap |  | Old Navy |  | Banana Republic |  | Franchise (3) |  | Other (4) |  | Total |  | Percentage of Net Sales
Fiscal 2010 |  |  |  |  |  |  |
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 |
Other regions |  | — |  |  | — |  |  | — |  |  | 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 |  |  | $ | 195 |  |  | $ | 246 |  |  | $ | 14,664 |  |  | 100 | %
Sales growth |  | 2 | % |  | 2 | % |  | 5 | % |  | 38 | % |  | 32 | % |  | 3 | % |  |
__________
(1) | U.S. includes the United States and Puerto Rico.
(2) | In July 2010, we began selling products online to customers in select countries outside the U.S. using a U.S.-based third party that provides logistics and fulfillment services. In August 2010, we began selling products online to customers in select countries outside the U.S. utilizing our own logistics and fulfillment capabilities. Online sales shipped from distribution centers located outside the U.S. were $172 million ($117 million for Canada, $50 million for Europe, and $5 million for Japan), $127 million ($89 million for Canada and $38 million for Europe), and $42 million ($30 million for Canada and $12 million for Europe) in fiscal 2012, 2011, and 2010, respectively.
(3) | Franchise sales were $331 million ($289 million for Gap and $42 million for Banana Republic), $283 million ($247 million for Gap and $36 million for Banana Republic), and $195 million ($171 million for Gap and $24 million for Banana Republic) in fiscal 2012, 2011, and 2010, respectively.
(4) | Includes Piperlime and Athleta.
Gap and Banana Republic outlet retail sales are reflected within the respective results of each brand. Financial Information for Reportable Segments Operating income is a primary measure of profit we use to make decisions on allocating resources to our operating segments and to assess the operating performance of each operating segment. It is defined as income before interest expense, interest income, and income taxes. Corporate expenses are allocated to each operating segment and recorded in operating income on a rational and systematic basis. Reportable segment assets presented below include those assets that are directly used in, or allocable to, that segment’s operations. Total assets for the Stores reportable segment primarily consist of merchandise inventory, the net book value of store assets, and prepaid expenses and receivables related to store operations. Total assets for the Direct reportable segment primarily consist of merchandise inventory, the net book value of IT and distribution center assets, and the net book value of goodwill and intangible assets as a result of the acquisitions of Athleta and Intermix. We do not allocate corporate assets to our operating segments. Unallocated corporate assets primarily include cash and cash equivalents, short-term investments, the net book value of corporate property and equipment, and tax-related assets. Reportable segment capital expenditures are direct purchases of property and equipment by that segment. Unallocated capital expenditures primarily consist of corporate purchases of property and equipment. Selected financial information by reportable segment and reconciliations to our consolidated totals are as follows:
|  | Fiscal Year
($ in millions) |  | 2012 |  | 2011 |  | 2010
Operating income: |  |  |  |  |  |
Stores |  | $ | 1,508 |  |  | $ | 1,095 |  |  | $ | 1,666 |
Direct |  | 434 |  |  | 343 |  |  | 302 |
Operating income |  | $ | 1,942 |  |  | $ | 1,438 |  |  | $ | 1,968 |
Depreciation and amortization expense: |  |  |  |  |  |
Stores |  | $ | 496 |  |  | $ | 533 |  |  | $ | 584 |
Direct |  | 63 |  |  | 59 |  |  | 64 |
Depreciation and amortization expense |  | $ | 559 |  |  | $ | 592 |  |  | $ | 648 |
Purchases of property and equipment: |  |  |  |  |  |
Stores |  | $ | 364 |  |  | $ | 362 |  |  | $ | 391 |
Direct |  | 89 |  |  | 70 |  |  | 55 |
Unallocated |  | 206 |  |  | 116 |  |  | 111 |
Purchases of property and equipment |  | $ | 659 |  |  | $ | 548 |  |  | $ | 557 |
($ in millions) |  | February 2, 2013 |  | January 28, 2012
Segment assets: |  |  |  |
Stores |  | $ | 3,407 |  |  | $ | 3,315 |
Direct |  | 886 |  |  | 591 |
Unallocated |  | 3,177 |  |  | 3,516 |
Total assets |  | $ | 7,470 |  |  | $ | 7,422 |
Long-lived assets, excluding long-term derivative financial instruments in an asset position and long-term deferred tax assets, by geographic location are as follows:
($ in millions) |  | February 2, 2013 |  | January 28, 2012
U.S. (1) |  | $ | 2,488 |  |  | $ | 2,245 |
Canada |  | 196 |  |  | 191 |
Total North America |  | 2,684 |  |  | 2,436 |
Other regions |  | 445 |  |  | 462 |
Total long-lived assets |  | $ | 3,129 |  |  | $ | 2,898 |
__________
(1) | U.S. includes the United States and Puerto Rico.
Net sales by region are allocated based on the location in which the sale was originated. Store sales are allocated based on the location of the store, and online sales are allocated based on the location of the distribution center from which the products were shipped. Net sales by geographic location are as follows:
|  | Fiscal Year
($ in millions) |  | 2012 |  | 2011 |  | 2010
U.S. (1) |  | $ | 12,194 |  |  | $ | 11,368 |  |  | $ | 11,740 |
Canada |  | 1,095 |  |  | 1,007 |  |  | 988 |
Total North America |  | 13,289 |  |  | 12,375 |  |  | 12,728 |
Other regions |  | 2,362 |  |  | 2,174 |  |  | 1,936 |
Total net sales |  | $ | 15,651 |  |  | $ | 14,549 |  |  | $ | 14,664 |
__________
(1) | U.S. includes the United States and Puerto Rico.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 + Details
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