Gap Inc – ‘10-K405’ for 1/29/00

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Annual Report — [x] Reg. S-K Item 405   —   Form 10-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 10-K405     Form 10-K                                             15     90K 
 2: EX-3.2      Cert. of Amended Cert. of Incorporation                1      7K 
 3: EX-10.25    Executive Long-Term Cash Award Plan                    6     29K 
 4: EX-13       Portions of Registrants A/R Dated 1/29/2000           26    215K 
 5: EX-21       Subsidiaries of Registrant                             3     11K 
 6: EX-23       Consent of Deloitte & Touche LLP                       1      7K 
 7: EX-27       Financial Data Schedule                                2      8K 

10-K405   —   Form 10-K
Document Table of Contents

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SECURITIES AND EXCHANGE COMMISSION  
Washington, D.C. 20549  
FORM 10-K 
(Mark One)                                                                      
[X]  Annual report pursuant to Section 13 or 15(d) of the Securities Exchange   
Act of 1934 For the fiscal year ended January 29, 2000 or                       

[ ]  Transition report pursuant to Section 13 or 15(d) of the Securities        
Exchange Act of 1934 For the transition period from ______________              
to ______________                                                               

Commission File Number 1-7562 

THE GAP, INC. 
(Exact name of registrant as specified in its charter)  

Delaware                                 94-1697231     
-----------------------                   ----------------------      
(State of Incorporation)                     (I.R.S. Employer         
                                     Identification No.)
One Harrison Street 
San Francisco, California 94105 
(Address of principal executive offices) (Zip code) 

Registrant's telephone number, including area code: (415) 427-2000  

----------------------- 

Securities registered pursuant to Section 12(b) of the Act: 

 Common Stock, $0.05 par value       New York Stock Exchange, Inc.
     (Title of class)               Pacific Exchange, Inc.
                                    (Name of each exchange where registered)

Securities registered pursuant to Section 12(g) of the Act: None  

----------------------- 

Indicate by check mark whether registrant (1) has filed all reports   
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of   
1934 during the preceding 12 months (or for such shorter period that the        
registrant was required to file such reports), and (2) has been subject to such 
filing requirements for the past 90 days.  Yes   X      No                      
                               -----       -----

    Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements   
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [X]                                                                  

   The aggregate market value of the common equity held by non-affiliates of
the registrant as of March 10, 2000 was approximately $24,479,000,000 based upon
the last price reported for such date in the NYSE-Composite transactions.       

 The number of shares of the registrant's Common Stock outstanding as of
March 10, 2000 was 851,577,689.                                                 

DOCUMENTS INCORPORATED BY REFERENCE 

Portions of the registrant's Proxy Statement for the Annual Meeting of
Shareholders to be held on May 5, 2000 (hereinafter referred to as the "2000    
Proxy Statement") are incorporated into Parts I and III.                        

   Portions of the Registrant's Annual Report to Shareholders for the fiscal
year ended January 29, 2000 (hereinafter referred to as the "1999 Annual Report 
to Shareholders") are incorporated into Parts II and IV.                        

The Exhibit Index is located on Page 12 hereof. 

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         This Annual Report on Form 10-K and the information incorporated herein
by reference contain certain forward-looking statements which reflect the       
Company's current view with respect to future events and financial performance. 
Whenever used, the words "expect," "plan," "anticipate," "believe" and similar  
expressions identify forward-looking statements.                                

Any such forward-looking statements are subject to risks and  
uncertainties and the Company's future results of operations could differ       
materially from historical results or current expectations. Some of these risks 
are discussed in Item 1 of this report below, and include, without limitation,  
ongoing competitive pressures in the apparel industry, risks associated with    
challenging international retail environments, changes in the level of consumer 
spending or preferences in apparel, trade restrictions and political or         
financial instability in countries where the Company's goods are manufactured,  
disruption to operations from Year 2000 issues and/or other factors that may be 
described in the Company's filings with the Securities and Exchange Commission. 
Future economic and industry trends that could potentially impact revenue and   
profitability are difficult to predict.                                         

    The Company assumes no obligation to publicly update or revise its
forward-looking statements even if experience or future changes make it clear   
that any projected results expressed or implied therein will not be realized.   

PART I  
------  

Item 1 - Business                                                               

General                                                                         
-------                                                                         

    The Gap, Inc. (together with its subsidiaries, the "Company") is a
global specialty retailer which operates stores selling casual apparel, personal
care and other accessories for men, women and children under the Gap, Banana    
Republic and Old Navy brands. As of February 26, 2000, the Company operated     
3,058 stores in the United States, Canada, the United Kingdom, France, Germany  
and Japan.                                                                      

      The Company designs virtually all of its products, which in turn are
manufactured by independent sources, and sells them under its brands in the     
following store formats:                                                        

          Gap. Founded in 1969, Gap stores offer extensive selections of
    classically-styled, high quality, casual apparel at moderate price
        points. Products range from wardrobe basics, such as denim, khakis and
       T-shirts, to accessories and personal care products for men and women
     aged teen through adult. The Company entered the children's apparel
      market with the introduction of GapKids in 1986 and babyGap in 1989.
These stores offer casual basics, outerwear, shoes and other  
         accessories in the tradition of Gap style and quality for children aged
       newborn through teen. As of February 26, 2000, the Company operated a
     total of 1,781 Gap brand stores in the United States, including 115
      Outlet stores. Gap brand stores outside the United States total 400.

              Banana Republic. Acquired in 1983 with two stores, Banana Republic
       now offers sophisticated, fashionable collections of dress-casual and
     tailored clothing and accessories for men and women at higher price
 points. Banana Republic products range from clothing, including
      intimate apparel, to personal care products and home products. As of
     February 26, 2000, the Company operated 347 Banana Republic stores,
including 10 in Canada and 18 outlet stores.                  

          Old Navy. The Company launched Old Navy in 1994 to address the
market for value-priced family apparel. Old Navy offers broad 
       selections of apparel, shoes and accessories for adults, children and
         infants, as well as other items including personal care products, in an
         innovative, exciting shopping environment. As of February 26, 2000, the
Company operated 530 Old Navy stores.                         

       The Company established Gap Online in 1997, a web-based store located
at www.gap.com. GapKids and babyGap web-based stores, located at www.gapkids.com
and www.babygap.com, were established in 1998. Products                         

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from Gap, GapKids and babyGap stores can be purchased online. Banana Republic   
introduced a catalog format in 1998 and Banana Republic Online, a web-based     
store located at www.bananarepublic.com, in 1999. Both of the new Banana        
Republic formats offer clothing and accessories comparable to those carried in  
the store collections. Also, in 1999 the Company established Old Navy Online, a 
promotional website located at www.oldnavy.com. The Company plans to begin      
operating Old Navy Online as a web-based store during 2000. The online and      
catalog business is offered as an extension of our store experience and is      
intended to strengthen our relationship with our customers.                     

      The Company was incorporated in the State of California in July 1969
and was reincorporated under the laws of the State of Delaware in May 1988.     

Customer Preferences; Impact of Economic Conditions                             
---------------------------------------------------                             

         The retail apparel business fluctuates according to changes in customer
preferences dictated in part by fashion and season. In addition, certain        
economic conditions affect the level of consumer spending on merchandise offered
by the Company, including, among others, business conditions, interest rates,   
taxation and consumer confidence in future economic conditions. Customer        
preferences and economic conditions may differ or change from time to time in   
each market in which the Company operates.                                      

Merchandise Inventory, Replenishment and Distribution                           
-----------------------------------------------------                           

   Fluctuations in the retail apparel business especially affect the
inventory owned by apparel retailers, since merchandise usually must be ordered 
well in advance of the season and sometimes before fashion trends are evidenced 
by customer purchases. In addition, the cyclical nature of the retail business  
requires the Company to carry a significant amount of inventory, especially     
prior to peak selling seasons when the Company and other retailers generally    
build up their inventory levels. The Company must enter into contracts for the  
purchase and manufacture of apparel well in advance of the applicable selling   
season. As a result, the Company is vulnerable to demand and pricing shifts and 
to suboptimal selection and timing of merchandise purchases.                    

     The Company reviews its inventory levels in order to identify slow-
moving merchandise and broken assortments (items no longer in stock in a        
sufficient range of sizes) and uses markdowns to clear merchandise. Markdowns   
may be used if inventory exceeds customer demand for reasons of style, seasonal 
adaptation, changes in customer preference or lack of consumer acceptance of    
fashion items, or if it is determined that the inventory in stock will not sell 
at its currently marked price. Such markdowns may have an adverse impact on     
earnings, depending on the extent of the markdowns and amount of inventory      
affected.                                                                       

        Because the Company does not carry much replenishment inventory in its
stores, much of the inventory is maintained in the Company's distribution       
centers in California, Kentucky, Maryland, Ohio, Tennessee, Canada, England and 
The Netherlands, and in distribution centers operated by third parties in       
California, Kentucky, Japan and England, and then shipped to the stores.        

Store Operations and Expansion                                                  
------------------------------                                                  

   The Company's stores offer a shopper-friendly environment with an
assortment of casual clothing and accessories which emphasize style, quality and
good value. The range of apparel displayed in each store varies significantly   
depending on the selling season and the size and location of the store.         

    The Company's stores generally are open seven days per week (where
permitted by law), three to six nights per week and most holidays. All sales are
tendered for cash, personal checks or credit cards issued by others, including a
Banana Republic private label credit card.                                      

       The Company's continued success depends, in part, upon its ability to
increase sales at existing store locations, to open new stores and to operate   
stores on a profitable basis. There can be no assurance that the Company's      
growth will result in enhanced profitability or that it will continue at the    
same rate in future years.                                                      

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International Expansion                                                         
-----------------------                                                         

       The Company continued to expand internationally in fiscal 1999. It is
faced with competition in European and Japanese markets from established        
regional and national chains. If international expansion is not successful, the 
Company's results of operations could be adversely affected. The Company's      
ability to grow successfully in the continental European market will depend in  
part on determining a sustainable profit formula to build brand loyalty and gain
market share in the especially challenging retail environments of France and    
Germany.                                                                        

     Certain financial information about international operations is set
forth in Note A to Notes to Consolidated Financial Statements, incorporated by  
reference in Item 8 - Financial Statements and Supplementary Data.              

Suppliers                                                                       
---------                                                                       

      The Company purchases merchandise from approximately 1,200 suppliers
located domestically and overseas. No supplier accounted for more than 5% of the
Company's fiscal 1999 purchases. Of the Company's merchandise sold during fiscal
1999, approximately 22% of all units (representing approximately 16% of total   
cost) were produced domestically while the remaining 78% of all units (84% of   
cost) were made outside the United States. Approximately 12% of the Company's   
total merchandise units (representing 16% of cost) was from China, including    
Hong Kong, with the remainder coming from 55 other countries. Any event causing 
a sudden disruption of imports from China or other foreign countries, including 
the imposition of additional import restrictions, could have a material adverse 
effect on the Company's operations. Substantially all of the Company's foreign  
purchases of merchandise are negotiated and paid for in U.S. dollars.           

      The Company cannot predict whether any of the countries in which its
products currently are manufactured or may be manufactured in the future will be
subject to trade restrictions imposed by the U.S. government, including the     
likelihood, type or effect of any such restrictions. Trade restrictions,        
including increased tariffs or quotas, or both, against apparel items could     
increase the cost or reduce the supply of apparel available to the Company and  
adversely affect the Company's business, financial condition and results of     
operations. The Company pursues a diversified global sourcing strategy that     
includes relationships with vendors in over 50 countries. These sourcing        
operations may be adversely affected by political and financial instability     
resulting in the disruption of trade from exporting countries, significant      
fluctuation in the value of the U.S. dollar against foreign currencies,         
restrictions on the transfer of funds and/or other trade disruptions.           

Seasonal Business                                                               
-----------------                                                               

         The Company's business follows a seasonal pattern, peaking over a total
of about 10-13 weeks during the Back-to-School (mid-August through early        
September) and Holiday (November through December) periods. During fiscal year  
1999, these periods accounted for approximately 36% of the Company's annual     
sales.                                                                          

Competition                                                                     
-----------                                                                     

         The Company's business is highly competitive. The Company competes with
national and local department stores, specialty and discount store chains,      
independent retail stores and internet and catalog businesses which handle      
similar lines of merchandise. Some competitors have more resources than the     
Company. The Company's online business has limited operating history and is     
faced with competition from other online apparel retailers. In addition, certain
other online retailers, some of whom have greater resources than the Company,   
may enter the online apparel market, further increasing competition. There is no
guarantee that consumers will embrace shopping for apparel online or that the   
Company's online business will be profitable. Given the large number of         
companies in the retail industry, the Company cannot estimate the number of its 
competitors.                                                                    

Depth of selection in sizes, colors and styles of merchandise,
merchandise procurement and pricing, ability to anticipate fashion trends and   
customer preferences, inventory control, reputation, quality of merchandise,    
store design and location, advertising and customer service are all important   
factors in competing successfully in the retail industry.                       

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         The performance of the Company in recent years has increased the amount
of imitation by other retailers. Such imitation has made and will continue to   
make the retail environment in which the Company operates more competitive. In  
addition, the success of the Company's operations depends upon a number of      
factors relating to consumer spending, including future economic conditions     
affecting disposable consumer income such as employment, business conditions,   
interest rates and taxation. A decline in consumer spending on apparel could    
have a material adverse effect on the Company's net sales and profitability.    

Brand Building                                                                  
--------------                                                                  

        The ability of the Company to continually change and evolve its brands
is a key source of competitive advantage and the Company believes its three     
distinct brands are among its most important assets. All aspects of brand       
development -from product design and distribution, to marketing, merchandising  
and shopping environments - are controlled by the Company. The Company continues
to invest in the development of its brands through advertising spending, the    
establishment of an online presence and the opening of flagship stores. The     
Company has also made investments to enhance the customer experience through the
opening of new stores, the expansion and remodeling of existing stores, and a   
focus on customer service.                                                      

Advertising                                                                     
-----------                                                                     

         The Company places print ads in major metropolitan newspapers and their
Sunday magazines, major news weeklies and lifestyle and fashion magazines. The  
Company's ads also appeared in various outdoor venues, such as mass transit     
posters, exterior bus panels, bus shelters and gigantic billboards spanning     
entire buildings. The Company continues to run TV ads for all of its brands and 
radio ads for Old Navy. The Company plans to continue its investments in        
advertising and marketing in 2000. There can be no assurances that these        
investments will result in increased sales or profitability.                    

Employees                                                                       
---------                                                                       

    On January 29, 2000, the Company had a work force of approximately
140,000 employees. The Company also hires temporary employees during the peak   
Back-to-School and Holiday seasons. The Company considers its employee relations
to be good.                                                                     

Trademarks and Service Marks                                                    
----------------------------                                                    

        The Gap, GapKids, babyGap, Banana Republic and Old Navy trademarks and
service marks, and certain other trademarks, either have been registered, or are
the subject of pending trademark applications, with the United States Patent and
Trademark Office and with the registries of many foreign countries.             

Year 2000 Issue                                                                 
---------------                                                                 

        The Year 2000 issue is primarily the result of computer programs using
a two-digit format, as opposed to four digits, to indicate the year.            

   The Company has noticed no material impact to its operations as a
result of transition to the Year 2000. Problems relating to the Year 2000 issue 
could still arise. However, the Company does not believe that the Year 2000     
issue will have a material adverse effect on its financial condition or results 
of operations. The Company operates a large number of geographically dispersed  
stores and has a large supplier base and believes that these factors will       
mitigate any adverse impact.                                                    

       The Company's beliefs and expectations, however, are based on certain
assumptions and expectations that ultimately may prove to be inaccurate,        
including the Year 2000 viability of sourcing countries, and compliance of      
third-party vendors and suppliers. The Company has identified that a significant
disruption in the product supply chain represents the most reasonably likely    
worst case Year 2000 scenario. A substantial, extended disruption in the        

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product supply chain could have a material adverse effect on the Company's      
financial condition and results of operations.                                  

        To date, the Company has incurred $40 million to address the Year 2000
issue. The Company does not expect to incur significant additional costs in     
connection with this issue.                                                     

Executive Officers of the Registrant                                            
------------------------------------                                            

        The Chairman of the Company is Donald G. Fisher. Millard S. Drexler is
the President and Chief Executive Officer of the Company. Both Donald G. Fisher 
and Millard S. Drexler are directors of the Company and the required information
for each of them is set forth in the table located in the section entitled      
"Nominees for Election as Directors" of the 2000 Proxy Statement and is         
incorporated by reference herein. The following are also executive officers of  
the Company:                                                                    

      Name, Age, Position and Principal Occupation During Past Five Years:

    Charles K. Crovitz, 46, Executive Vice President, Supply Chain and
     Technology since September 1998; Senior Vice President of Strategy,
      Logistics and Information Systems from March 1998 to September 1998;
      Senior Vice President of Strategic Planning and Business Development
from 1993 to March 1998. Joined the Company in 1993.          

     Anne B. Gust, 42, Executive Vice President, Human Resources, Legal,
Global Compliance and Corporate Administration since May 1999;
Executive Vice President, Human Resources, Legal and Corporate
       Administration from September 1998 to May 1999; Senior Vice President
       and General Counsel from April 1994 to September 1998; Vice President
    and General Counsel from 1993 to 1994. Joined the Company in 1991.

      Heidi Kunz, 45, Executive Vice President and Chief Financial Officer
         since August 1999. Executive Vice President and Chief Financial Officer
      of ITT Industries from 1995 to 1999. Vice President and Treasurer of
General Motors from 1994 to 1995.                             

  John B. Wilson, 40, Executive Vice President and Chief Operating
Officer since March 1998; Executive Vice President and Chief  
        Administrative Officer from October 1996 to March 1998. Executive Vice
         President, Finance and Strategy and Chief Financial Officer of Staples,
Inc. from 1992 to 1996.                                       

Item 2 - Properties                                                             

       During fiscal year 1999, the Company opened 570 stores and closed 18.
The newly-opened stores include 281 domestic Gap stores, 18 domestic Gap Outlet 
stores, 98 international Gap stores, 41 Banana Republic stores and 15 Banana    
Republic Factory stores in the United States and 117 Old Navy stores in the     
United States. In addition, during fiscal 1999, the Company expanded 68 domestic
Gap stores, 4 Gap Outlet stores, 28 international Gap stores, 21 Banana Republic
stores and 8 Old Navy stores. The 3,018 stores operating as of January 29, 2000 
aggregated approximately 24 million square feet. The Company leases virtually   
all of its store premises. Terms generally range from five to 15 years with one 
or two five-year renewal options. Most leases provide for additional rent based 
on a percentage of store sales above a certain level in addition to or in lieu  
of minimum rentals, as well as for the payment of certain other expenses. Some  
leases contain cancellation clauses in favor of the Company if specified sales  
levels are not achieved. In the United States, the Company's stores are located 
in the 50 largest metropolitan areas.                                           

   The Company currently leases its regional offices and much of its
headquarters office space, including approximately 495,000 square feet in       
buildings in San Francisco, California, 270,000 square feet in buildings in San 
Bruno, California (near the San Francisco Airport), and 300,000 square feet in  
buildings in New York City. The Company also leases its Eastern Distribution    
Center/Kentucky Distribution Center complex (EDC/KDC) and certain other         
distribution facilities. The EDC/KDC facilities in Erlanger, Kentucky (near     
Cincinnati) consist of                                                          

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approximately 725,000 square feet. Nearby Northern Kentucky facilities include  
an approximately 325,000 square foot warehouse for consolidation/deconsolidation
purposes, an approximately 520,000 square foot warehouse for distribution       
purposes, and an approximately 175,000 square foot warehouse for supply         
purposes. The Company leases a temporary distribution facility of approximately 
350,000 square feet in Baltimore, Maryland. The Company also leases a           
warehouse/call center of approximately 270,000 square feet in Grove City, Ohio  
(near Columbus), which services Gap Online and Banana Republic catalog and      
Online; this facility is expected to be expanded to service other aspects of the
Company's direct-to-consumer business. The Company leases its Japan Distribution
Center (JDC), approximately 127,000 square feet, in Funabashi City, Chiba,      
Japan. The JDC is operated by a third party. The Company also leases an         
approximately 134,000 square foot warehouse in Essex, England and an            
approximately 17,000 square foot facility also in Essex, England for supply and 
distribution purposes.                                                          

        The Company purchased an approximately 160,000 square feet building in
San Francisco in 1999, owns an office facility in San Bruno of approximately    
190,000 square feet and nearby land at that site which potentially could        
accommodate up to an additional 290,000 square feet, and also owns an           
office/computer facility of approximately 40,000 square feet in Rocklin,        
California (near Sacramento). The Company currently is in the process of        
developing an office building of approximately 540,000 square feet near its     
existing facilities in San Francisco, and an office building of approximately   
260,000 square feet near its existing leased and owned facilities in San Bruno. 

      The Company owns distribution facilities in the following locations:

                                                        [Enlarge/Download Table]

Location                         Square Footage (Approximate)                            
-----------------------------------------------------------------------------------------
                                                                                         
Ventura, California              230,000 square feet                                     
-----------------------------------------------------------------------------------------
Edgewood, Maryland               600,000 square feet                                     
-----------------------------------------------------------------------------------------
Gallatin, Tennessee              1,030,000 square feet                                   
-----------------------------------------------------------------------------------------
Gallatin, Tennessee              550,000 square feet                                     
-----------------------------------------------------------------------------------------
Gallatin, Tennessee              710,000 square feet (Under Construction)                
-----------------------------------------------------------------------------------------
Fresno, California               540,000 square feet                                     
                                 490,000 square feet (Expansion Under Construction)      
-----------------------------------------------------------------------------------------
Fishkill, New York               1,400,000 square feet (Under Construction)              
-----------------------------------------------------------------------------------------
Brampton, Ontario                370,000 square feet                                     
-----------------------------------------------------------------------------------------
Brampton, Ontario                740,000 square feet (Under Construction)                
-----------------------------------------------------------------------------------------
Roosendaal, The Netherlands      130,000 square feet                                     

The sites in Ventura, California and Edgewood, Maryland have additional land    
available for expansion or for additional facilities.                           

Item 3 - Legal Proceedings                                                      

       The Company has been named as a defendant in two lawsuits relating to
sourcing of products from Saipan (Commonwealth of the Northern Mariana Islands).
A complaint was filed on January 13, 1999 in California Superior Court in San   
Francisco by the Union of Needletrades Industrial and Textile Employees, AFL-   
CIO; Global Exchange; Sweatshop Watch; and Asian Law Caucus against the Company 
and 17 other parties. The plaintiffs allege violations of California's unlawful,
fraudulent and unfair business practices and untrue and misleading advertising  
statutes in connection with labeling of product and labor practices regarding   
workers of factories that make product for the Company in Saipan. The plaintiffs
seek injunctive relief, restitution, disgorgement of profits and other damages. 
Trial has not been set in the state case. A second complaint was filed on       
January 13, 1999 in Federal District Court, Central District of California, by  
various unidentified worker plaintiffs against the Company and 25 other parties.
Those unidentified worker plaintiffs seek class-action status and allege, among 
other things, that the Company (and other defendants) violated the Racketeer    
Influenced and Corrupt Organizations Act also in connection with the labor      
practices and treatment of workers of factories in Saipan that make product for 
the Company. The plaintiffs seek injunctive relief as well as actual and        
punitive damages. On September 29, 1999 the action was transferred to the       

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United States District Court, State of Hawaii. On April 22, 1999 the Company,   
along with several other defendants, filed a motion in Federal District Court,  
Central District of California, to dismiss the case. That motion currently is   
set for hearing on May 22, 2000. Trial in the Federal case has been set for     
February 27, 2001.                                                              

   The Company also is a party to routine litigation incident to its
business. Some of the lawsuits to which the Company is a party are covered by   
insurance and are being defended by the Company's insurance carriers.           

    The Company has established reserves which management believes are
adequate to cover any litigation losses which may occur.                        

Item 4 - Submission of Matters to a Vote of Security Holders                    

Not applicable.                                               

PART II 
------- 

Item 5 - Market For Registrant's Common Equity and Related Stockholder Matters  

 The information required by this item is incorporated herein by
reference to page 26 of the 1999 Annual Report to Shareholders (Results book)   
included as Exhibit 13 to this Annual Report on Form 10-K.                      

Item 6 - Selected Financial Data                                                

 The information required by this item is incorporated herein by
reference to pages 4 and 5 of the 1999 Annual Report to Shareholders (Results   
book) included as Exhibit 13 to this Annual Report on Form 10-K.                

Item 7 - Management's Discussion and Analysis of Financial Condition and Results
of Operations                                                                   

 The information required by this item is incorporated herein by
reference to pages 6-10 of the 1999 Annual Report to Shareholders (Results book)
included as Exhibit 13 to this Annual Report on Form 10-K.                      

Item 7A - Quantitative and Qualitative Disclosures about Market Risk            

 The information required by this item is incorporated herein by
reference to page 11 of the 1999 Annual Report to Shareholders (Results book)   
included as Exhibit 13 to this Annual Report on Form 10-K.                      

Item 8 - Financial Statements and Supplementary Data                            

 The information required by this item is incorporated herein by
reference to pages 12-26 of the 1999 Annual Report to Shareholders (Results     
book) included as Exhibit 13 to this Annual Report on Form 10-K.                

Item 9 - Changes In and Disagreements With Accountants on   Accounting and      
Financial Disclosure                                                            

Not applicable.                                               

PART III  
--------  

Item 10 - Directors and Executive Officers of the Registrant                    

 The information required by this item is incorporated herein by
reference to the section entitled "Nominees for Election as Directors" in the   
2000 Proxy Statement. See also Item 1 above in the section entitled "Executive  
Officers of the Registrant."                                                    

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Item 11 - Executive Compensation                                                

   The information required by this item is incorporated herein by
reference to the sections entitled "Compensation of Directors," "Summary of     
Executive Compensation," "Stock Options," "Employment Contracts," and           
"Compensation Committee Interlocks and Insider Participation" in the 2000 Proxy 
Statement.                                                                      

Item 12 - Security Ownership of Certain Beneficial Owners and Management        

   The information required by this item is incorporated herein by
reference to the section entitled "Beneficial Ownership of Shares" in the 2000  
Proxy Statement.                                                                

Item 13 - Certain Relationships and Related Transactions                        

   The information required by this item is incorporated herein by
reference to the section entitled "Other Reportable Transactions" in the 2000   
Proxy Statement.                                                                

PART IV 
------- 

Item 14 - Exhibits, Financial Statements, Schedules, and Reports On Form 8-K    

        (a)   The following consolidated financial statements, schedules and
exhibits are filed as part of this report or are incorporated herein as         
indicated.                                                                      

(1)   Financial Statements                      
--------------------                

              (i)  Independent Auditors' Report. Incorporated by
                       reference to page 12 of the 1999 Annual Report to
                           Shareholders (Results book) included as Exhibit 13 to
      this Annual Report on Form 10-K.

                  (ii) The consolidated balance sheets as of January 29,
               2000 and January 30, 1999 and the related
                        consolidated statements of earnings, shareholders'
                           equity, cash flows, and notes thereto for each of the
                        three fiscal years in the period ended January 29,
                          2000 are incorporated by reference to pages 13-26 of
                           the 1999 Annual Report to Shareholders (Results book)
                          included as Exhibit 13 to this Annual Report on Form
10-K.                     

(2)   Financial Statement Schedules             
-----------------------------       

                     Schedules have been omitted because they are not required
               or are not applicable or because the information required to be
              set forth therein either is not material or is included in the
financial statements or notes thereto.          

(3)   Exhibits                                  
--------                            

                      Incorporated herein by reference is a list of the Exhibits
           contained in the Exhibit Index which begins on sequentially
    numbered page 12 of this Annual Report on Form 10-K.

       (b)   No reports on Form 8-K were filed or required to be filed for
the last quarter of the fiscal year.                                            

9 

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SIGNATURES  
----------  

         Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.                       

   THE GAP, INC.

Date:  March 28, 2000              By /s/ MILLARD S. DREXLER                    
                  ----------------------
               Millard S. Drexler,
                   Chief Executive Officer
                         (Principal Executive Officer)

Date: March 28, 2000               By /s/ HEIDI KUNZ                            
          --------------
       Heidi Kunz,
                    Executive Vice President
                       and Chief Financial Officer
                               (Principal Financial and Accounting
    Officer)

        Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below by the following persons on behalf of the     
registrant and in the capacities and on the dates indicated.                    

Date: March 28, 2000               By /s/ ADRIAN D.P. BELLAMY                   
                   -----------------------
                          Adrian D. P. Bellamy, Director

Date: March 28, 2000               By /s/ EVAN S. DOBELLE                       
               -------------------
                     Evan S. Dobelle, Director

Date: March 28, 2000               By /s/ MILLARD S. DREXLER                    
                  ----------------------
                        Millard S. Drexler, Director

Date: March 28, 2000               By /s/ DONALD G. FISHER                      
                --------------------
                      Donald G. Fisher, Director

Date: March 28, 2000               By /s/ DORIS F. FISHER                       
               -------------------
                     Doris F. Fisher, Director

10

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SIGNATURES (con't.)                                                   
-------------------                                                   

Date: March 28, 2000               By /s/ ROBERT J. FISHER                      
                --------------------
                      Robert J. Fisher, Director

Date: March 28, 2000               By /s/ GLENDA A. HATCHETT                    
                  ----------------------
                        Glenda A. Hatchett, Director

Date: March 28, 2000               By /s/ STEVEN P. JOBS                        
              ------------------
                    Steven P. Jobs, Director

Date: March 28, 2000               By /s/ JOHN M. LILLIE                        
              ------------------
                    John M. Lillie, Director

Date: March 28, 2000               By /s/ CHARLES R. SCHWAB                     
                 ---------------------
                       Charles R. Schwab, Director

Date: March 28, 2000               By /s/ BROOKS WALKER, JR.                    
                  ----------------------
                        Brooks Walker, Jr., Director

Date: March 28, 2000               By /s/ SERGIO S. ZYMAN                       
               -------------------
                     Sergio S. Zyman, Director

11

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Exhibit Index                                                                   

3.1  Registrant's Amended and Restated Certificate of Incorporation, filed as   
   Exhibit 3.1 to Registrant's Annual Report on Form 10-K for the year ended
January 30, 1993, Commission File No. 1-7562.                         

3.2  Certificate of Amendment of Amended and Restated Certificate of            
Incorporation.                                                        

3.3  Registrant's By-Laws, filed as Exhibit C to Registrant's definitive proxy  
statement for its annual meeting of stockholders held on May 24, 1988,
Commission File No. 1-7562                                            

3.4  Amended Article IV of Registrant's By-Laws, filed as Exhibit 4.4 to        
Registrant's Registration Statement on Form S-8, Commission File No.  
333-00417                                                             

4    Indenture, dated September 1, 1997, between the Registrant and Harris Trust
    Company of California filed as Exhibit 4 to Registrant's Form 10-Q for the
quarter ended November 1, 1997, Commission File No. 1-7562            

10.1 Amended and Restated Credit Agreement dated as of June 29, 1999 between the
   Registrant; Citicorp USA Inc.; Salomon Smith Barney Inc.; Bank of America
    National Trust & Savings Association; HSBC Bank USA; Morgan Guaranty Trust
     Company of New York; Bank of Montreal; ABN Amro Bank N.V.; Deutsche Bank AG
New York Branch and/or Cayman Islands Branch; Societe Generale; The   
Sumitomo Bank Limited; The First National Bank of Chicago; Fleet Bank;
Wells Fargo Bank, National Association; The Bank of New York; The Fuji
Bank, Limited; Royal Bank of Canada U.S. Bank National Association and
Citibank, N.A. filed as Exhibit 10.1 to Registrant's Form 10-Q for the
quarter ended July 31, 1999, Commission File No. 1-7562               

10.2 Credit Agreement dated as of July 1, 1997 between the Registrant; Citicorp 
USA Inc.; Bank of America National; Trust & Savings Association; The  
  Hongkong and Shanghai Banking Corporation Limited; Nationsbank of Texas,
 N.A.; The Royal Bank of Canada; Bank of Montreal; Societe Generale; The
     Fuji Bank, Limited; Morgan Guaranty Trust Company of New York; The Sumitomo
Bank Limited; Deutsche Bank AG New York Branch and/or Cayman Islands  
   Branch; Union Bank of Switzerland, New York Branch; U.S. National Bank of
    Oregon; and Citibank, N.A. filed as Exhibit 10.4 to Registrant's Form 10-Q
for the quarter ended August 2, 1997, Commission File No. 1-7562      

10.3 First Letter Agreement dated June 30, 1998 to the Credit Agreement dated   
   July 1, 1997 filed as Exhibit 10.4 to Registrant's Form 10-K for the year
ended January 30, 1999, Commission File No. 1-7562                    

EXECUTIVE COMPENSATION PLANS AND ARRANGEMENTS                                   

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10.5  1981 Stock Option Plan, filed as Exhibit 4.1 to Registrant's Registration 
Statement on Form S-8, Commission File No. 33-54690                 

10.6  Management Incentive Restricted Stock Plan II, filed as exhibit 4.1 to    
Registrant's Registration Statement on Form S-8, Commission File No.
33-54686                                                            

10.7  Description of Management Incentive Cash Award Plan filed as Exhibit 10.34
     to Registrant's Annual Report on Form 10-K for the year ended January 29,
1994, Commission File No. 1-7562                                    

10.8  Executive Management Incentive Cash Award Plan (March 21, 1995 Amendment  
     and Restatement), filed as Exhibit B to the Registrant's definitive proxy
  statement for its annual meeting of stockholders held on May 23, 1995,
Commission File No. 1-7562                                          

10.9  Executive Management Incentive Cash Award Plan (January 25, 2000 Amendment
     and Restatement), filed as Exhibit A to the Registrant's definitive proxy
 statement for its annual meeting of stockholders held on May 5, 2000,
Commission File No. 1-7562                                          

10.10 The Gap, Inc. Executive Deferred Compensation Plan, filed as Exhibit 10.3 
to Registrant's Form 10-Q for the quarter ended October 31, 1998,   
Commission File No.1-7562                                           

10.11 1996 Stock Option and Award Plan, filed as Exhibit A to the Registrant's  
     definitive proxy statement for its annual meeting of stockholders held on
May 21, 1996, Commission File No. 1-7562                            

10.12 Amendment Number 1 to the Registrant's 1996 Stock Option and Award Plan   
 filed as Exhibit 10.1 to Registrant's Form 10-Q for the quarter ended
August 2, 1997, Commission File No. 1-7562                          

10.13 Amendment Number 2 to the Registrant's 1996 Stock Option and Award Plan   
filed as Exhibit 10.15 to Registrant's Form 10-K for the year ended 
January 31, 1998, Commission File No. 1-7562                        

10.14 Amendment Number 3 to the Registrant's 1996 Stock Option and Award Plan   
 filed as Exhibit 10.1 to Registrant's Form 10-Q for the quarter ended
October 31, 1998, Commission File No. 1-7562                        

10.15 Form of Nonqualified Stock Option Agreement for employees under           
  Registrant's 1996 Stock Option and Award Plan filed as Exhibit 10.5 to
   Registrant's Form 10-Q for the quarter ended August 2, 1997, Commission
File No. 1-7562                                                     

10.16 Form of Nonqualified Stock Option Agreement for directors under           
  Registrant's 1996 Stock Option and Award Plan filed as Exhibit 10.6 to
   Registrant's Form 10-Q for the quarter ended August 2, 1997, Commission
File No. 1-7562                                                     

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10.17 Form of Restricted Stock Agreement under Registrant's 1996 Stock Option   
  and Award Plan filed as Exhibit 10.7 to Registrant's Form 10-Q for the
quarter ended August 2, 1997, Commission File No. 1-7562            

10.18 Form of Nonqualified Stock Option Agreement for consultants under         
  Registrant's 1996 Stock Option and Award Plan filed as Exhibit 10.4 to
     Registrant's Form 10-Q for the quarter ended October 31, 1998, Commission
File No. 1-7562                                                     

10.19 Form of Nonqualified Stock Option Agreement for employees in France under 
  Registrant's 1996 Stock Option and Award Plan filed as Exhibit 10.5 to
     Registrant's Form 10-Q for the quarter ended October 31, 1998, Commission
File No. 1-7562                                                     

10.20 Form of Nonqualified Stock Option Agreement for international employees   
     under Registrant's 1996 Stock Option and Award Plan filed as Exhibit 10.6
to Registrant's Form 10-Q for the quarter ended October 31, 1998,   
Commission File No. 1-7562                                          

10.21 Form of Nonqualified Stock Option Agreement for employees in Japan under  
  Registrant's 1996 Stock Option and Award Plan filed as Exhibit 10.7 to
     Registrant's Form 10-Q for the quarter ended October 31, 1998, Commission
File No. 1-7562                                                     

10.22 Form of stock option agreement for employees under the UK Sub-plan to the 
  U.S. Stock Option and Award Plan filed as Exhibit 10.8 to Registrant's
Form 10-Q for the quarter ended October 31, 1998, Commission File   
No. 1-7562                                                          

10.23 Executive Long-Term Cash Award Performance Plan, filed as Exhibit B to the
Registrant's definitive proxy statement for its annual meeting of   
stockholders held on May 21, 1996, Commission File No. 1-7562       

10.24 Executive Long-Term Cash Award Performance Plan (January 26, 1999         
 Restatement), filed as Exhibit B to the Registrant's definitive proxy
 statement for its annual meeting of stockholders held on May 4, 1999,
Commission File No. 1-7562                                          

10.25 Executive Long-Term Cash Award Performance Plan (January 26, 1999         
Restatement, as amended March 28, 2000)                             

10.26 Relocation Loan Plan, filed as Exhibit A to Registrant's definitive proxy 
      statement for its annual meeting of stockholders held on October 25, 1977,
Commission File No. 1-7562                                          

10.27 Certificate of Corporate Resolution amending the Relocation Loan Plan,    
    adopted by the Board of Directors on November 27, 1990, filed as Exhibit
10.34 to Registrant's Annual Report on Form 10-K for the year ended 
February 2, 1991, Commission File No. 1-7562                        

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10.28 Non-Employee Director Retirement Plan, dated October 27, 1992, filed as   
 Exhibit 10.43 to Registrant's Annual Report on Form 10-K for the year
ended January 30, 1993, Commission File No. 1-7562                  

10.29 Statement Regarding Non-Employee Director Retirement Plan filed as Exhibit
10.25 to Registrant's Form 10-K for the year ended January 31, 1998,
Commission File No. 1-7562                                          

10.30 The Gap, Inc. Nonemployee Director Deferred Compensation Plan, filed as   
      Exhibit 4.1 to Registrant's Registration Statement on Form S-8, Commission
File No. 333-36265                                                  

10.31 Amendment Number 1 to the Registrant's Nonemployee Director Deferred      
     Compensation Plan filed as Exhibit 10.2 to Registrant's Form 10-Q for the
quarter ended October 31, 1998, Commission File No. 1-7562          

10.32 Form of Discounted Stock Option Agreement under the Nonemployee Director  
Deferred Compensation Plan, filed as Exhibit 4.5 to Registrant's    
Registration Statement on Form S-8, Commission File No. 333-36265   

10.4  Income continuation protection arrangement, dated December 21, 1998,      
between Registrant and John B. Wilson, filed as Exhibit 10.33 to    
  Registrant's Form 10-K for the year ended January 30, 1999, Commission
File No. 1-7562                                                     

10.33 Employment arrangement, dated July 6, 1999, between Registrant and Heidi  
      Kunz, filed as Exhibit 10.2 to Registrant's Annual Report on Form 10-Q for
the quarter ended July 31, 1999, Commission File No. 1-7562         

13    Portions of Registrant's annual report to security holders for the fiscal 
year ended January 29, 2000                                         

21    Subsidiaries of Registrant                                                

23    Consent of Deloitte & Touche LLP                                          

27    Financial Data Schedule for the year ended January 29, 2000               

Dates Referenced Herein   and   Documents Incorporated by Reference

				Referenced-On Page
This ‘10-K405’ Filing		Date		First		Last			Other Filings
		2/27/01		8
		5/22/00		8
		5/5/00		1		13			DEF 14A
Filed on:		4/4/00
		3/28/00		10		14
		3/10/00		1
		2/26/00		2
For Period End:		1/29/00		1		15
		1/25/00		13
		9/29/99		7
		7/31/99		12		15			10-Q
		7/6/99		15
		6/29/99		12
		5/4/99		14					DEF 14A
		4/22/99		8
		1/30/99		9		15			10-K
		1/26/99		14
		1/13/99		7
		12/21/98		15
		10/31/98		13		15			10-Q
		6/30/98		12
		1/31/98		13		15			10-K
		11/1/97		12					10-Q
		9/1/97		12
		8/2/97		12		14			10-Q
		7/1/97		12
		5/21/96		13		14
		5/23/95		13
		3/21/95		13
		1/29/94		13					10-K
		1/30/93		12		15
		10/27/92		15
									List all Filings

15 Subsequent Filings that Reference this Filing

  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

 3/19/24  Gap Inc.                          10-K        2/03/24  123:11M
11/21/23  Gap Inc.                          10-Q       10/28/23   70:6.2M
 8/25/23  Gap Inc.                          10-Q        7/29/23   68:5.8M
 5/26/23  Gap Inc.                          10-Q        4/29/23   69:5.8M
 3/14/23  Gap Inc.                          10-K        1/28/23  118:12M
11/22/22  Gap Inc.                          10-Q       10/29/22   63:8.8M
 8/26/22  Gap Inc.                          10-Q        7/30/22   67:9.4M
 5/27/22  Gap Inc.                          10-Q        4/30/22   62:5.3M
 3/15/22  Gap Inc.                          10-K        1/29/22  118:11M
11/24/21  Gap Inc.                          10-Q       10/30/21   66:6.3M
 8/27/21  Gap Inc.                          10-Q        7/31/21   63:7.9M
 5/28/21  Gap Inc.                          10-Q        5/01/21   63:5.6M
 3/16/21  Gap Inc.                          10-K        1/30/21  118:11M
11/25/20  Gap Inc.                          10-Q       10/31/20   74:6.9M
 8/31/20  Gap Inc.                          10-Q        8/01/20   68:6.6M