RECONCILIATION OF FREE CASH FLOW TO GAAP FINANCIAL MEASURE for Gap (GPS)

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Gap (GPS)

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GPS » Topics » RECONCILIATION OF FREE CASH FLOW TO GAAP FINANCIAL MEASURE

This excerpt taken from the GPS 8-K filed Jan 4, 2007.

RECONCILIATION OF FREE CASH FLOW TO GAAP FINANCIAL MEASURE

Free cash flow is a non-GAAP financial 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.

This excerpt taken from the GPS 8-K filed May 18, 2006.

RECONCILIATION OF FREE CASH FLOW TO A GAAP FINANCIAL MEASURE


($ in millions)	Thirteen Weeks Ended April 29, 2006
Net cash provided by operating activities	$	316
Net cash used for investing activities		(128	)
Net cash used for financing activities		(408	)
Effect of exchange rate fluctuations on cash		7

Net decrease in cash and equivalents	$	(213	)

Net cash provided by operating activities	$	316
Less: Net purchase of property and equipment		(91	)

Free cash flow (a)	$	225


($ in millions)	Thirteen Weeks Ended April 30, 2005
Net cash provided by operating activities	$	235
Net cash used for investing activities		(600	)
Net cash used for financing activities		(526	)
Effect of exchange rate fluctuations on cash		—

Net decrease in cash and equivalents	$	(891	)

Net cash provided by operating activities	$	235
Less: Purchase of property and equipment		(122	)

Free cash flow (a)	$	113

This excerpt taken from the GPS 8-K filed Feb 23, 2006.

RECONCILIATION OF FREE CASH FLOW TO A GAAP FINANCIAL MEASURE


(In millions)	Fifty-two Weeks Ended January 28, 2006
Net cash provided by operating activities	$	1,551
Net cash provided by investing activities		286
Net cash used for financing activities		(2,040	)
Effect of exchange rate fluctuations on cash		(7	)

Net decrease in cash and equivalents	$	(210	)

Net cash provided by operating activities	$	1,551
Less: Purchase of property and equipment		(600	)

Free Cash Flow (a)	$	951


(In millions)	Fifty-two Weeks Ended January 29, 2005
Net cash provided by operating activities	$	1,597
Net cash provided by investing activities		183
Net cash used for financing activities		(1,796	)

Net decrease in cash and equivalents	$	(16	)

Net cash provided by operating activities	$	1,597
Less: Purchase of property and equipment		(419	)

Free Cash Flow (a)	$	1,178


RECONCILIATION OF GAP INC.'S EXPECTATION OF AT LEAST $900 MILLION IN FREE CASH FLOW FOR FISCAL YEAR 2006 TO A GAAP FINANCIAL MEASURE

(In millions)	Fifty-three Weeks Ending February 3, 2007
Minimum net cash provided by operating activities	$	1,575
Less: Estimated purchase of property and equipment		(675	)

Free Cash Flow (a)	$	900

(a)

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 companies 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.

EXCERPTS ON THIS PAGE:

8-K	Jan 4, 2007

8-K	May 18, 2006

8-K	Feb 23, 2006

RELATED TOPICS for GPS:

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