This excerpt taken from the GPS 8-K filed Feb 24, 2005.
Company Announces Expected Lease-Related Accounting Adjustments
SAN FRANCISCO Feb. 24, 2005 Gap Inc. (NYSE:GPS) today announced that preliminary earnings for the 2004 fourth quarter increased 4 percent to $370 million, or $0.40 per share on a diluted basis. Full year 2004 earnings increased 11 percent to $1.1 billion, or $1.20 per share, compared to $1.09 per share for full year 2003. The company also announced that fourth quarter and full year earnings and earnings per share are subject to adjustments based on the outcome of a pending review by the company of its lease-related accounting.
In 2004, we delivered solid earnings performance, while mining growth opportunities within our brands, significantly strengthening our balance sheet, retiring debt and completing a $1 billion share repurchase program, said Gap Inc. President and CEO Paul Pressler. Having stabilized our operations and well positioned our brands in the marketplace, we have a strong foundation for 2005. Going forward we will focus on driving growth opportunities across our brand portfolio, strengthening operating performance and enhancing shareholder value through cash distributions.