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## Non-GAAP Financial Measures (continued) 

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(1) Store depreciation, amortization and impairment includes depreciation and amortization of all capitalized assets in store locations, including leasehold improvements, furniture and fixtures, and computer hardware and software and store asset impairment charges. 

(2) Goodwill impairment represents the write-off of the goodwill associated with the UK reporting unit. 

(3) General and administrative expenses consist of non-store, central office general and administrative functions such as management payroll and related benefits, travel, information systems, accounting, purchasing and legal costs as well as the depreciation and amortization of central office leasehold improvements, furniture and fixtures, computer hardware and software, including intellectual property, store closing and pre-opening expenses, and intercompany charges. General and administrative expenses also include a central office marketing department, primarily payroll and related benefits expense, but exclude advertising expenses, such as television advertising, virtual world costs and direct mail catalogs, which are included in store contribution. 

(4) Franchising and commercial contribution includes franchising and commercial revenues and all expenses attributable to the international franchising and commercial segments, including asset impairments but excluding depreciation, amortization and interest expense/income. Depreciation and amortization related to franchising and licensing is included in the general and administrative expense caption. Interest expense/income related to franchising and commercial activities is included in the interest expense (income) caption. 

(5) Non-store activities include our web stores and temporary and seasonal locations. Non-store activity contribution also includes intercompany revenues. 

