I’ll conclude my portion of today’s call with guidance. Incorporated into our guidance are the order trends that we’ve seen to date and what we believe today to be appropriately conservative assumptions. Our results are inherently unpredictable and may be materially affected by many factors, including a high level of uncertainty surrounding exchange rate fluctuations as well as the global economy and consumer spending. It’s not possible to accurately predict demand, and therefore our actual results could differ materially from our guidance.
As we describe in more detail in our public filings, issues such as settling intercompany balances and foreign currencies amongst our subsidiaries, unfavorable resolution of legal matters and changes to our effective tax rates can all have a material effect on guidance. Our guidance further assumes that we don’t conclude any additional business acquisitions, investments, restructurings or legal settlements, record any further revisions to stock-based compensation estimates and that foreign exchange rates remain approximately where they have been recently.
For Q3 2014, we expect net sales of between $19.7 billion and $21.5 billion or growth of between 15% and 26%. This guidance anticipates approximately 120 basis points of favorable impact from foreign exchange rates. GAAP operating loss to be between $810 million loss and a $410 million loss compared to a $25 million loss in the third quarter of 2013. This includes approximately $410 million for stock-based compensation and amortization of intangible assets.
We anticipate consolidated segment operating income or loss, which excludes stock-based compensation and other operating expense to be between $400 million loss and $0 compared to $267 million of income in the third quarter of 2013.
We remain heads-down focused on driving a better customer experience through price, selection and convenience. We believe putting customers first is the only reliable way to create lasting value for shareholders.
Thanks. And with that, Phil, let’s move to questions.
Phil Hardin – Director of Investor Relations
Great. Thanks, Tom. Let’s move on to the Q&A portion of the call. Operator, will you please remind our listeners how to initiate a question?