GPS » Topics » RECONCILIATION OF GAP INC.S EXPECTATION OF AT LEAST $900 MILLION IN FREE CASH FLOW FOR FISCAL YEAR 2006 TO A GAAP FINANCIAL MEASURE
This excerpt taken from the GPS 8-K filed May 18, 2006.
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
Projected minimum net cash provided by operating activities
Less: Projected net purchase of property and equipment
Projected minimum free cash flow (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 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.