Section 8. Shareholders Equity

1. At 2/1/20: How many shares of common stock are: (a) authorized _______________ (b) issued _______________ (c) outstanding _______________ How many shares of preferred stock are: (a) authorized _______________ (b) issued _______________ (c) outstanding _______________ 2. What was the amount of dividends paid to shareholders during 2020? _______________

Section 6. Current Liabilities

What is the amount of Current Liabilities at 1/30/21? _______________

What are the following amounts for the year ended 1/30/21:

2. Accounts Payable _______________
3. Current ratio _______________

Section 5. Noncurrent Assets

1. What is the amount of Noncurrent Assets at 1/30/21? _______________
2. What is the amount of Property and Equipment (net) held by Gap at 1/30/21? _______________
3. How much depreciation has been recorded on these assets at 1/30/21? _______________
4. What method does Gap use to calculate depreciation? _______________________
5. What is the amount of Furniture and Equipment held by Gap at 1/30/21? _______________

THE GAP, INC. CONSOLIDATED BALANCE SHEETS January 30, 2021 February 1, 2020 $ 1,988 $ 410 2,451 1,159 6,008 2,841 4,217 703 13,769 $ 1,364 290 2,156 706 4,516 3,122 5,402 639 13,679 $ $ ($ and shares in millions except par value) ASSETS Current assets: Cash and cash equivalents Short-term investments Merchandise inventory Other current assets Total current assets Property and equipment, net of accumulated depreciation Operating lease assets Other long-term assets Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable Accrued expenses and other current liabilities Current portion of operating lease liabilities Income taxes payable Total current liabilities Long-term liabilities: Long-term debt Long-term operating lease liabilities Other long-term liabilities Total long-term liabilities Commitments and contingencies (see Note 14) Stockholders' equity: Common stock $0.05 par value Authorized 2,300 shares for all periods presented; Issued and Outstanding 374 and 371 shares Additional paid-in capital Retained earnings Accumulated other comprehensive income Total stockholders' equity Total liabilities and stockholders' equity 1,743 $ 1,276 831 34 3,884 1,174 1,067 920 48 3,209 2,216 4,617 438 7,271 1,249 5,508 397 7,154 19 19 85 2,501 9 2,614 13,769 $ 3,257 40 3,316 13,679 $ THE GAP, INC. CONSOLIDATED STATEMENTS OF OPERATIONS Fiscal Year 2019 2020 2018 13,800 $ 9,095 4,705 5,567 (862) 58 16,383 $ 10,250 6,133 5,559 574 ($ and shares in millions except per share amounts) Net sales Cost of goods sold and occupancy expenses Gross profit Operating expenses Operating income (loss) Loss on extinguishment of debt Interest expense Interest income Income (loss) before income taxes Income taxes Net income (loss) 16,580 10,258 6,322 4,960 1,362 192 (10) (1,102) (437) (665) $ 76 (30) 528 177 351 $ 73 (33) 1,322 319 1,003 $ 376 Weighted average number of sharesbasic Weighted-average number of sharesdiluted 374 374 385 388 378 A Earnings (loss) per share basic Earnings (loss) per share-diluted (1.78) $ (1.78) $ 0.93 $ 0.93 $ 2.61 2.59 $ THE GAP, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Fiscal Year 2020 2019 2018 $ (665) $ 351 $ 1,003 (17) (2) (17) ($ in millions) Net income (loss) Other comprehensive income (loss), net of tax: Foreign currency translation Change in fair value of derivative financial instruments, net of tax (tax benefit) of $(1), $5, and $(4) Reclassification adjustments on derivative financial instruments, net of (tax) tax benefit of $(2), $(5), and $6 Other comprehensive income (loss), net of tax Comprehensive income (loss) (3) 13 54 (11) (31) (696) $ (24) (13) 338 $ (20) 17 1,020 $ THE GAP, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY Common Stock Accumulated Additional Other Paid in Retained Comprehensive Shares Amount Capital Earnings Income Total 389 $ 19 $ 8 $ 3,081 $ 36 $ 3,144 36 36 1,003 1,003 (17) 54 (20) (266) (14) 2 1 (132) 46 (23) 101 (17) 54 (20) (398) un' 46 (23) 101 (373) 3,553 (86) 351 378 19 53 (373) 3,481 (86) 351 ($ and shares in millions except per share amounts) Balance as of February 3, 2018 Cumulative effect of a change in accounting principle related to revenue recognition Net income Other comprehensive loss, net of tax Foreign currency translation Change in fair value of derivative instruments Amounts reclassified from accumulated other comprehensive income Repurchases and retirement of common stock Issuance of common stock related to stock options and employee stock purchase plans Issuance of common stock and withholding tax payments related to vesting of stock units Share-based compensation, net of forfeitures Common stock dividends declared and paid ($0.97 per share) Balance as of February 2, 2019 Cumulative effect of a change in accounting principle related to leases Net income Other comprehensive income, net of tax Foreign currency translation Change in fair value of derivative instruments Amounts reclassified from accumulated other comprehensive income Repurchases and retirement of common stock Issuance of common stock related to stock options and employee stock purchase plans Issuance of common stock and withholding tax payments related to vesting of stock units Share-based compensation, net of forfeitures Common stock dividends declared and paid ($0.97 per share) Balance as of February 1, 2020 Net income (loss) Other comprehensive loss, net of tax Foreign currency translation Change in fair value of derivative instruments Amounts reclassified from accumulated other comprehensive income Issuance of common stock related to stock options and employee stock purchase plans Issuance of common stock and withholding tax payments related to vesting of stock units Share-based compensation, net of forfeitures Common stock dividends declared ($0.2425 per share) (1) Balance as of January 30, 2021 (2) 13 (24) (125) (10) 1 2 (75) 25 (21) 71 (2) 13 (24) (200) 25 (21) 71 (364) 3,316 (665) 371 19 (364) 3,257 (665) 40 (11) 2 1 22 (9) 72 (91) 85 $ 2,501 $ (17) (17) (3) (3) (11) 22 (9) 72 (91) 9 $ 2,614 374 $ 19 $ (1) On March 4, 2020, the Company declared a first quarter fiscal year 2020 dividend of $0.2425 per share. The dividend will be payable on or after April 28, 2021 to shareholders of record at the close of business on April 7, 2021. The dividend payable amount was estimated based upon the shareholders of record as of January 30, 2021. See Accompanying Notes to Consolidated Financial Statements THE GAP, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS Fiscal Year 2019 2020 2018 $ (665) $ 351 $ 1,003 507 557 578 (61) 91 68 239 E 77 391 135 31 58 98 14 12 70 2 (12) (191) (81) 4 2 (12) (137) 65 (305) 64 564 (14) (304) 12 (189) 237 4 105 66 110 86 (154) (18) (78) (196) 113 30 (61) 1,411 1,381 (392) (705) ($ in millions) Cash flows from operating activities: Net income (loss) Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization Amortization of lease incentives Share-based compensation Impairment of operating lease assets Impairment of store assets Impairment of intangible asset Loss on extinguishment of debt Loss on disposal of property and equipment Amortization of debt issuance costs Non-cash and other items Gain on sale of building Deferred income taxes Changes in operating assets and liabilities: Merchandise inventory Other current assets and other long-term assets Accounts payable Accrued expenses and other current liabilities Income taxes payable, net of receivables and other tax-related items Other long-term liabilities Operating lease assets and liabilities, net Net cash provided by operating activities Cash flows from investing activities: Purchases of property and equipment Purchase of building Proceeds from sale of building Purchases of short-term investments Proceeds from sales and maturities of short-term investments Purchase of Janie and Jack Other Net cash used for investing activities Cash flows from financing activities: Proceeds from revolving credit facility Payments for revolving credit facility Proceeds from issuance of long-term debt Payments to extinguish debt Payments for debt issuance costs Proceeds from issuances under share-based compensation plans Withholding tax payments related to vesting of stock units Repurchases of common stock Cash dividends paid Net cash provided by (used for) financing activities Effect of foreign exchange rate fluctuations on cash, cash equivalents, and restricted cash Net increase (decrease) in cash, cash equivalents, and restricted cash Cash, cash equivalents, and restricted cash at beginning of period Cash, cash equivalents, and restricted cash at end of period Non-cash investing activities: Purchases of property and equipment not yet paid at end of period Supplemental disclosure of cash flow information: Cash paid for interest during the period Cash paid for income taxes during the period, net of refunds Cash paid for operating lease liabilities (702) (343) 220 (293) 293 (69) (508) 388 (464) 177 2. (510) (9 (1,001) (894) 500 (500) 2,250 (1,307) (61) (1) 22 25 46 (9) (21) (23) (200) (398) (364) (373) 895 (560) (749) 13 4 (10) 635 (39) (379) 1,381 1,420 1,799 $ 2,016 $ 1,381 $ 1,381 $ 1,420 $ 60 $ 85 $ 93 $ 145 $ 76 $ $ 20 $ 176 $ $ 1,096 $ 1,244 $ 76 143 See Accompanying Notes to Consolidated Financial Statements