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GPS » Topics » Free Cash Flow

This excerpt taken from the GPS 10-Q filed Jun 9, 2009.

Free Cash Flow

Free cash flow is a non-GAAP measure. We believe free cash flow is an important metric because it represents a measure of how much cash a company has available after the deduction of capital expenditures, as we require regular capital expenditures to build and maintain stores and purchase new equipment to improve our business. We use this metric internally, as we believe our sustained ability to generate free cash flow is an important driver of value creation. However, this non-GAAP financial measure is not intended to supersede or replace our GAAP results.

The following table reconciles free cash flow, a non-GAAP financial measure, from a GAAP financial measure.

 

     13 Weeks Ended  
($ in millions)    May 2,
2009		     May 3,
2008		  

Net cash provided by operating activities

    $ 202     $ 176  

Less: Purchases of property and equipment

      (63 )     (114 )
                

Free cash flow

    $ 139     $ 62  
                
This excerpt taken from the GPS 10-K filed Mar 27, 2009.

Free Cash Flow

Free cash flow is a non-GAAP measure. We believe free cash flow is an important metric because it represents a measure of how much cash a company has available after the deduction of capital expenditures, as we require regular capital expenditures to build and maintain stores and purchase new equipment to improve our business. We use this metric internally, as we believe our sustained ability to generate free cash flow is an important driver of value creation. However, this non-GAAP financial measure is not intended to supersede or replace our GAAP results.

The following table reconciles free cash flow, a non-GAAP financial measure, from a GAAP financial measure.

 

     Fiscal Year  
($ in millions)    2008     2007     2006  

Net cash provided by operating activities

    $ 1,412     $ 2,081     $ 1,250  

Less: Purchases of property and equipment

      (431 )     (682 )     (572 )
                        

Free cash flow

    $ 981     $ 1,399     $ 678  
                        

 

27

Table of Contents

 

This excerpt taken from the GPS 10-Q filed Dec 9, 2008.

Free Cash Flow

Free cash flow is a non-GAAP measure. We believe free cash flow is an important metric because it represents a measure of how much cash a company has available after the deduction of capital expenditures, as we require regular capital expenditures to build and maintain stores and purchase new equipment to improve our business. We use this metric internally, as we believe our sustained ability to generate free cash flow is an important driver of value creation. However, this non-GAAP financial measure is not intended to supersede or replace our GAAP results.

In the thirty-nine weeks ended November 1, 2008, we delivered $519 million in free cash flow, compared with $484 million in the prior year comparable period.

The following table reconciles free cash flow, a non-GAAP financial measure, from a GAAP financial measure.

 

     39 Weeks Ended  
($ in millions)    November 1, 2008     November 3, 2007  

Net cash provided by operating activities

    $ 834     $ 1,003  

Less: Purchases of property and equipment

      (315 )     (519 )
                

Free cash flow

    $ 519     $ 484  
                

The following table sets forth our expected full year fiscal 2008 free cash flow of about $1.0 billion:

 

($ in millions)    Expected
52 Weeks Ending
January 31, 2009		  

Expected net cash provided by operating activities

    $ 1,450  

Less: Expected purchases of property and equipment

      (450 )
        

Expected fiscal 2008 free cash flow

    $ 1,000  
        

 

19

Table of Contents
This excerpt taken from the GPS 10-Q filed Sep 9, 2008.

Free Cash Flow

Free cash flow is a non-GAAP measure. We believe free cash flow is an important metric because it represents a measure of how much cash a company has available after the deduction of capital expenditures, as we require regular capital expenditures to build and maintain stores and purchase new equipment to improve our business. We use this metric internally, as we believe our sustained ability to generate free cash flow is an important driver of value creation. However, this non-GAAP financial measure is not intended to supersede or replace our GAAP results.

In the first half of fiscal 2008, we delivered $354 million in free cash flow, compared with $347 million in the prior year comparable period.

The following table reconciles free cash flow, a non-GAAP financial measure, from a GAAP financial measure.

 

     26 Weeks Ended  
($ in millions)    August 2, 2008     August 4, 2007  

Net cash provided by operating activities

    $ 562     $ 669  

Less: Purchases of property and equipment

      (208 )     (322 )
                

Free cash flow

    $ 354     $ 347  
                

 

18

Table of Contents

The following table sets forth our expected full year fiscal 2008 free cash flow of about $1.0 billion:

 

($ in millions)    Expected 52 Weeks
Ending January 31, 2009		  

Expected net cash provided by operating activities

    $ 1,450  

Less: Expected purchases of property and equipment

      (450 )
        

Expected fiscal 2008 free cash flow

    $ 1,000  
        
This excerpt taken from the GPS 10-Q filed Jun 10, 2008.

Free Cash Flow

Free cash flow is a non-GAAP measure. We believe free cash flow is an important metric because it represents a measure of how much cash a company has available after the deduction of capital expenditures, as we require regular capital expenditures to build and maintain stores and purchase new equipment to improve our business. We use this metric internally, as we believe our sustained ability to generate free cash flow is an important driver of value creation. However, this non-GAAP financial measure is not intended to supersede or replace our GAAP results.

In the first quarter of fiscal 2008, we delivered $62 million in free cash flow, compared with $159 million in the prior year comparable period.

The following table reconciles free cash flow, a non-GAAP financial measure, from a GAAP financial measure.

 

     13 Weeks Ended  
($ in millions)    May 3,
2008		     May 5,
2007		  

Net cash provided by operating activities

    $ 176     $ 281  

Less: Purchases of property and equipment

      (114 )     (122 )
                

Free cash flow

    $ 62     $ 159  
                

The following table sets forth our expected full fiscal 2008 free cash flow of about $900 million:

 

($ in millions)    Expected
52 Weeks
Ending
January 31,
2009		  

Expected net cash provided by operating activities

    $ 1,400  

Less: Expected purchases of property and equipment

      (500 )
        

Expected fiscal 2008 free cash flow

    $ 900  
        
These excerpts taken from the GPS 10-K filed Mar 28, 2008.

Free Cash Flow

Free cash flow is a non-GAAP measure. We believe free cash flow is an important metric because it represents a measure of how much cash a company has available after the deduction of capital expenditures, as we require regular capital expenditures to build and maintain stores and purchase new equipment to improve our business. We use this metric internally, as we believe our sustained ability to generate free cash flow is an important driver of value creation. However, this non-GAAP financial measure is not intended to supersede or replace our GAAP results.

In fiscal 2007, we delivered $1.4 billion in free cash flow, which represented 168 percent of net earnings, compared with $678 million in fiscal 2006. The increase was driven primarily by lower inventory levels and the change in vendor payment terms. Free cash flow as a percent of net earnings was 87 percent and 85 percent for fiscal 2006 and 2005, respectively.

 

Gap Inc. Form 10-K  25

Table of Contents

 

The following table reconciles free cash flow, a non-GAAP financial measure, to a GAAP financial measure.

 

($ in millions)    52 Weeks Ended
February 2, 2008		     53 Weeks Ended
February 3, 2007		     52 Weeks Ended
January 28, 2006		  

Net cash provided by operating activities

    $ 2,081     $ 1,250     $ 1,551  

Less: Purchases of property and equipment

      (682 )     (572 )     (600 )
                        

Free cash flow

    $ 1,399     $ 678     $ 951  
                        

The following table sets forth our expected fiscal 2008 free cash flow of about $900 million:

 

($ in millions)    Projected
52 Weeks Ending
January 31, 2009		  

Expected net cash provided by operating activities

    $ 1,400  

Less: Expected purchases of property and equipment

      (500 )
        

Expected fiscal 2008 free cash flow

    $ 900  
        

Free Cash Flow

STYLE="margin-top:6px;margin-bottom:0px">Free cash flow is a non-GAAP measure. We believe free cash flow is an important metric because it represents a measure of how much cash a company has available after the deduction
of capital expenditures, as we require regular capital expenditures to build and maintain stores and purchase new equipment to improve our business. We use this metric internally, as we believe our sustained ability to generate free cash flow is an
important driver of value creation. However, this non-GAAP financial measure is not intended to supersede or replace our GAAP results.

In fiscal 2007, we delivered
$1.4 billion in free cash flow, which represented 168 percent of net earnings, compared with $678 million in fiscal 2006. The increase was driven primarily by lower inventory levels and the change in vendor payment terms. Free cash flow as a percent
of net earnings was 87 percent and 85 percent for fiscal 2006 and 2005, respectively.

 


Gap Inc. Form 10-KSIZE="1">  25






Table of Contents


 

The following table reconciles free cash flow, a
non-GAAP financial measure, to a GAAP financial measure.

 



































































































($ in millions)  52 Weeks Ended
February 2, 2008		  53 Weeks Ended
February 3, 2007		  52 Weeks Ended
January 28, 2006		 

Net cash provided by operating activities

  $2,081  $1,250  $1,551 

Less: Purchases of property and equipment

   (682)  (572)  (600)
             

Free cash flow

  $1,399  $678  $951 
             

The following table sets forth our expected fiscal 2008 free cash flow of about $900 million:

STYLE="font-size:12px;margin-top:0px;margin-bottom:0px"> 













































($ in millions)  Projected
52 Weeks Ending
January 31, 2009		 

Expected net cash provided by operating activities

  $1,400 

Less: Expected purchases of property and equipment

   (500)
     

Expected fiscal 2008 free cash flow

  $900 
     
This excerpt taken from the GPS 10-Q filed Dec 12, 2007.

Free Cash Flow

Free cash flow is a non-GAAP measure. We believe free cash flow is an important metric since it represents a measure of how much cash a company has available after the deduction of capital expenditures, and we require regular capital expenditures to build and maintain stores and purchase new equipment to improve our business. We use this metric internally, as we believe our sustained ability to generate free cash flow is an important driver of value creation.

For the first three quarters of fiscal year 2007, we delivered $484 million in free cash flow, compared with $214 million in the prior year comparable period.

The following table reconciles free cash flow, a non-GAAP financial measure, to a GAAP financial measure.

 

($ in millions)    39 Weeks
Ended
November 3,
2007		     39 Weeks
Ended
October 28,
2006		  

Net cash provided by operating activities

    $ 1,003     $ 620  

Less: Purchases of property and equipment

      (519 )     (406 )
                

Free cash flow

    $ 484     $ 214  
                

The following table sets forth our expected full fiscal year 2007 free cash flow of about $900 million:

 

($ in millions)   

Expected

52 Weeks Ending

February 2, 2008

  

Expected net cash provided by operating activities

    $ 1,600  

Less: Expected purchases of property and equipment

      (700 )
        

Expected free cash flow

    $ 900  
        
This excerpt taken from the GPS 10-Q filed Sep 12, 2007.

Free Cash Flow

Free cash flow is a non-GAAP measure. We believe free cash flow is an important metric, as it represents a measure of how much cash a company has available after the deduction of capital expenditures, as we require regular capital expenditures to build and maintain stores and purchase new equipment to keep the business growing. We use this metric internally, as we believe our sustained ability to increase free cash flow is an important driver of value creation.

 

19

Table of Contents

The following table reconciles free cash flow, a non-GAAP financial measure, to a GAAP financial measure.

 

($ in millions)

    26 Weeks
Ended
August 4,
2007		     26 Weeks
Ended
July 29,
2006		  

Net cash provided by operating activities

    $ 669     $ 533  

Less: Purchases of property and equipment

      (322 )     (233 )
                

Free cash flow

    $ 347     $ 300  
                

The following table sets forth our expected full fiscal year 2007 free cash flow of at least $500 million:

 

($ in millions)

   

Expected

52 Weeks Ending

February 2, 2008

  

Expected minimum net cash provided by operating activities

    $ 1,200  

Less: Expected purchases of property and equipment

      (700 )
        

Expected minimum free cash flow

    $ 500  
        

In the first half of fiscal year 2007, we delivered $347 million in free cash flow, compared to $300 million in the prior year comparable period. We are committed to maintaining sufficient cash to support the needs of our business and withstand unanticipated business volatility; therefore, we plan to keep approximately $1.2 billion of cash on our balance sheet. We will continue to evaluate and evolve our $1.2 billion cash balance target over time to reflect the changing needs of our business.

This excerpt taken from the GPS 10-Q filed Jun 12, 2007.

Free Cash Flow

Free cash flow is a non-GAAP measure. We believe free cash flow is an important metric, as it represents a measure of how much cash a company has available after the deduction of capital expenditures, as we require regular capital expenditures to build and maintain stores and purchase new equipment to keep the business growing. We use this metric internally, as we believe our sustained ability to increase free cash flow is an important driver of value creation.

The following table reconciles free cash flow, a non-GAAP financial measure, to a GAAP financial measure.

 

($ in millions)

   

13 Weeks Ended

May 5, 2007

    

13 Weeks Ended

April 29, 2006

  

Net cash provided by operating activities

    $ 281     $ 316  

Less: Purchases of property and equipment

      (122 )     (91 )
                

Free cash flow

    $ 159     $ 225  
                

The following table sets forth our expected full year 2007 free cash flow:

 

($ in millions)

   

Expected

52 Weeks Ending

February 2, 2008

  

Expected net cash provided by operating activities

    $ 1,200  

Less: Expected purchases of property and equipment

      (700 )
        

Expected free cash flow

    $ 500  
        

In the first quarter of fiscal year 2007, we delivered $159 million in free cash flow, which represented 89 percent of net earnings. We are committed to maintaining sufficient cash to support the needs of our business and withstand unanticipated business volatility; therefore, we plan to keep approximately $1.5 billion of cash on our balance sheet. We will continue to evaluate and evolve our $1.5 billion cash balance target over time to reflect the changing needs of our business.

As of May 5, 2007, we had $2.8 billion of total cash, short-term investments and restricted cash on our condensed consolidated balance sheet. Of the total cash balances, we had $2.2 billion in cash and cash equivalents, $522 million in short-term investments and $43 million in restricted cash.

This excerpt taken from the GPS 10-K filed Apr 2, 2007.

Free Cash Flow

Free cash flow is a non-GAAP measure. We believe free cash flow is an important metric, as it represents a measure of how much cash a company has available after the deduction of capital expenditures, as we require regular capital expenditures to build and maintain stores and purchase new equipment to keep the business growing. We use this metric internally, as we believe our sustained ability to increase free cash flow is an important driver of value creation.

The following table reconciles free cash flow, a non-GAAP financial measure, to a GAAP financial measure.

 

($ in millions)

    53 Weeks Ended
February 3, 2007		     52 Weeks Ended
January 28, 2006		     52 Weeks Ended
January 29, 2005		  

Net cash provided by operating activities

    $ 1,250     $ 1,551     $ 1,597  

Less: Purchases of property and equipment

      (572 )     (600 )     (419 )
                        

Free cash flow

    $ 678     $ 951     $ 1,178  
                        

The following table sets forth our reconciliation of projected fiscal 2007 free cash flow:

 

($ in millions)

   

Projected

52 Weeks Ending
February 2, 2008

  

Projected net cash provided by operating activities

    $ 1,200  

Less: Projected purchase of property and equipment

      (700 )
        

Projected fiscal 2007 free cash flow

    $ 500  
        

In fiscal 2006, we delivered $678 million in free cash flow, which represented 87% of net earnings. Our earnings continue to generate strong free cash flow. Free cash flow as a percent of net earnings was 85% and 102% for fiscal 2005 and 2004, respectively. For the year ended February 3, 2007, our free cash flow decreased $273 million compared with the prior year primarily due to lower earnings in fiscal 2006.

We are committed to maintaining sufficient liquidity to support the needs of our business and withstand unanticipated business volatility and plan to keep about $1.5 billion of cash and investments available. We will continue to evaluate our $1.5 billion target over time to reflect the changing needs of our business.

This excerpt taken from the GPS 10-Q filed Dec 1, 2006.

Free Cash Flow

Free cash flow is a non-GAAP measure. We believe free cash flow is an important metric, as it represents a measure of how much cash is available after the deduction of capital expenditures, as we require regular capital expenditures to build and maintain stores and purchase new equipment to keep the business growing. We use this metric internally, as we believe our sustained ability to increase free cash flow is an important driver of value creation.

The following table reconciles free cash flow, a non-GAAP measure, to a GAAP financial measure.

 

($ in millions)

    Thirty-Nine
Weeks Ended
October 28,
2006		     Thirty-Nine
Weeks Ended
October 29,
2005		  

Net cash provided by operating activities

    $ 620     $ 328  

Net cash provided by (used for) investing activities

      (50 )     530  

Net cash used for financing activities

      (859 )     (1,724 )

Effect of exchange rate fluctuations on cash

      7       (7 )
                

Net decrease in cash and equivalents

    $ (282 )   $ (873 )
                

Net cash provided by operating activities

    $ 620     $ 328  

Less: Net purchases of property and equipment

      (406 )     (448 )
                

Free cash flow

    $ 214     $ (120 )
                

The following table sets forth our projected minimum fiscal 2006 free cash flow components to accomplish our target to generate free cash flow of at least $800 million:

 

($ in millions)

   

Projected

Fifty-Three
Weeks Ending

Feb. 3, 2007

  

Projected minimum net cash provided by operating activities

    $ 1,425  

Less: Projected net purchases of property and equipment

      (625 )
        

Projected minimum free cash flow

    $ 800  
        

 

21

Table of Contents

EXCERPTS ON THIS PAGE:

10-Q
Jun 9, 2009
10-K
Mar 27, 2009
10-Q
Dec 9, 2008
10-Q
Sep 9, 2008
10-Q
Jun 10, 2008
10-K (2 sections)
Mar 28, 2008
10-Q
Dec 12, 2007
10-Q
Sep 12, 2007
10-Q
Jun 12, 2007
10-K
Apr 2, 2007
10-Q
Dec 1, 2006

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