We identify our operating segments according to how our business activities are managed and evaluated. All of our operating segments sell a group of similar products – apparel, accessories, and personal care products. We have two reportable segments:


($ in millions) 13 Weeks Ended April 30, 2011	Gap			Old Navy			Banana Republic			Other (3)			Total			Percentage of Net Sales
U.S. (1)	$	743		$	1,097		$	460		$	—		$	2,300			70	%
Canada		70			88			43			—			201			6
Europe		161			—			11			15			187			5
Asia		190			—			24			16			230			7
Other regions		—			—			—			29			29			1

Total Stores reportable segment		1,164			1,185			538			60			2,947			89
Direct reportable segment (2)		96			140			41			71			348			11

Total	$	1,260		$	1,325		$	579		$	131		$	3,295			100	%

Sales Growth (Decline)		(1	)%		(4	)%		1	%		28	%		(1	)%

($ in millions) 13 Weeks Ended May 1, 2010	Gap			Old Navy			Banana Republic			Other (3)			Total			Percentage of Net Sales
U.S. (1)	$	788		$	1,163		$	468		$	—		$	2,419			73	%
Canada		73			92			41			—			206			6
Europe		156			—			7			11			174			5
Asia		180			—			24			13			217			7
Other regions		—			—			—			18			18			—

Total Stores reportable segment		1,197			1,255			540			42			3,034			91
Direct reportable segment (2)		79			122			34			60			295			9

Total	$	1,276		$	1,377		$	574		$	102		$	3,329			100	%

Sales Growth		5	%		6	%		7	%		29	%		6	%

(1)	U.S. includes the United States and Puerto Rico.

(2)

In July 2010, we began selling products online to customers in select countries outside the U.S. using a U.S.-based third party that provides logistics and fulfillment services. In August 2010, we began selling products online to customers in select countries outside the U.S. utilizing our own logistics and fulfillment capabilities. For the thirteen weeks ended April 30, 2011, there was $26 million of online sales that were shipped from distribution centers located outside the U.S. For the thirteen weeks ended May 1, 2010, there were no amounts related to online sales that were shipped from distribution centers located outside the U.S.

(3)	Other includes our wholesale business, franchise business, Piperlime, and Athleta.

Gap and Banana Republic outlet retail sales are reflected within the respective results of each brand.

Operating income is the primary measure of profit we use to make decisions on allocating resources to our operating segments and to assess the operating performance of each operating segment. It is defined as income before interest expense, interest income, and income taxes. Corporate expenses are allocated to each operating segment and recorded in operating income on a rational and systematic basis.

Reportable segment assets presented below include those assets that are directly used in, or allocable to, that segment's operations. Total assets for the Stores reportable segment primarily consist of merchandise inventory, the net book value of store assets, and prepaid expenses and receivables related to store operations. Total assets for the Direct reportable segment primarily consist of merchandise inventory, the net book value of information technology and distribution center assets, and the net book value of goodwill and intangible assets as a result of the acquisition of Athleta. We do not allocate corporate assets to our operating segments. Unallocated corporate assets primarily include cash and cash equivalents, short-term investments, the net book value of corporate property and equipment, and tax-related assets.

Selected financial information by reportable segment and reconciliations to our consolidated totals are as follows:


	13 Weeks Ended
($ in millions)	April 30, 2011		May 1, 2010
Operating income:
Stores	$	304	$	402
Direct		82		72

Operating income	$	386	$	474


($ in millions)	April 30, 2011		January 29, 2011		May 1, 2010
Segment assets:
Stores	$	3,402	$	3,264	$	3,225
Direct		537		545		474
Unallocated		4,088		3,256		4,246

Total assets	$	8,027	$	7,065	$	7,945

Net sales by region are allocated based on the location in which the sale was originated. Store sales are allocated based on the location of the store, and online sales are allocated based on the location of the distribution center from which the products were shipped. Net sales generated in the U.S. and in foreign locations are as follows: