GameStop 2003 Annual Report Download - page 57

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Table of Contents
GAMESTOP CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
pay dividends and requires the Company to maintain certain financial ratios. There have been no borrowings under the revolving credit facility.
8. Comprehensive Income
Comprehensive income is net earnings, plus certain other items that are recorded directly to stockholders’ equity and consists of the following:
52 Weeks 52 Weeks 52 Weeks
Ended Ended Ended
January 31, February 1, February 2,
2004 2003 2002
(In thousands)
Net earnings $63,467 $52,404 $6,960
Other comprehensive income:
Foreign currency translation adjustments 296
—
—
Total comprehensive income $ 63,763 $ 52,404 $ 6,960
9. Payable to Barnes & Noble
On November 18, 1997, Barnes & Noble obtained an $850,000, five-year senior revolving credit facility (the “Revolving Credit Facility”) with a syndicate led by
the Chase Manhattan Bank. Amounts available under the Revolving Credit Facility were used to fund the acquisitions of Funco and Babbage’s described in Note 1, and
Barnes & Noble has allocated such debt to the Company and charged the Company interest of $825 and $19,575 relating to this debt for the 52 weeks ended February 1,
2003 and February 2, 2002, respectively. A portion of the net proceeds of the Offering was used to repay $250,000 of intercompany debt owed to Barnes & Noble.
Additionally, upon the effective date of the Offering, Barnes & Noble made a capital contribution of the $150,000 remaining balance of the intercompany debt.
In fiscal 2002, Barnes & Noble entered into a $500,000 three-year senior revolving credit facility with a syndicate of banks led by Fleet National Bank as
administrative agent. This facility replaced the $850,000 facility led by Chase Manhattan Bank. The Company’s Class B common stock, which is owned entirely by
Barnes & Noble, is pledged as collateral on the $500,000 facility.
10. Leases
The Company leases retail stores, warehouse facilities, office space and equipment. These are generally leased under noncancelable agreements that expire at
various dates through 2034 with various renewal options for additional periods. The agreements, which have been classified as operating leases, generally provide for
both minimum and percentage rentals and require the Company to pay all insurance, taxes and other maintenance costs. Percentage rentals are based on sales
performance in excess of specified minimums at various stores.
Approximate rental expenses under operating leases are as follows:
52 Weeks 52 Weeks 52 Weeks
Ended Ended Ended
January 31, February 1, February 2,
2004 2003 2002
(In thousands)
Minimum $58,016 $47,316 $42,110
Percentage rentals 7,418 10,704 10,436
$65,434 $58,020 $52,546
F-15