GameStop 2004 Annual Report Download - page 24

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available on our website under ""Investor Relations Ì Corporate Governance'' and is available to our
stockholders in print, free of charge, upon written request to the Company's Investor Relations Department at
GameStop Corp., 2250 William D. Tate Avenue, Grapevine, Texas 76051.
Item 2. Properties
All of our stores are leased. Store leases typically provide for an initial lease term of three to ten years,
plus renewal options. This arrangement gives us the Öexibility to pursue extension or relocation opportunities
that arise from changing market conditions. We believe that, as current leases expire, we will be able to obtain
either renewals at present locations or leases for equivalent locations in the same area.
The terms of the store leases for the 1,826 leased stores open as of January 29, 2005 expire as follows:
Number
Lease Terms to Expire During of Stores
(12 Months Ending on or About January 31)
Expired and in negotiations ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 139
2006 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 186
2007 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 174
2008 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 132
2009 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 169
2010 and later ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,026
1,826
In addition to our stores, we lease a 250,000 square foot headquarters and distribution center in
Grapevine, Texas. This lease expires on January 31, 2006.
In March 2004, we purchased a 420,000 square foot facility in Grapevine, Texas. We relocated certain of
our distribution operations to this facility in Ñscal 2004 and will be relocating our headquarters and remaining
distribution center operations to this facility in the second quarter of Ñscal 2005. Management believes this
facility will support our long-term growth.
We lease a 7,300 square foot oÇce facility in Minneapolis, Minnesota which houses the operations of
Game Informer magazine. This lease expires in February 2007.
We lease a 15,000 square foot facility in Dublin, Ireland, which houses the corporate and distribution
operations for the Company's operations in Ireland and Northern Ireland. This lease expires in January 2013.
Item 3. Legal Proceedings
On May 29, 2003, former Store Manager Carlos Moreira (""Moreira'') Ñled a class action lawsuit against
the Company and its wholly-owned subsidiary Gamestop, Inc. (collectively ""GameStop'') in Los Angeles
County Superior Court alleging that GameStop's salaried retail managers were misclassiÑed as exempt and
should have been paid overtime. Moreira was seeking to represent a class of current and former salaried retail
managers who were employed by GameStop in California at any time between May 29, 1999 and
September 30, 2004. Moreira alleged claims for violation of California Labor Code sections 203, 226 and 1194
and California Business and Professions Code section 17200. Moreira was seeking recovery of unpaid
overtime, interest, penalties, attorneys' fees and costs. During court-ordered mediation in March 2004, the
parties reached a settlement which deÑned the class of current and former salaried retail managers and will
result in a cost to the Company of approximately $2,750,000. On January 28, 2005, the court granted approval
of the settlement. The matter is now in the claims administration process. A provision for this proposed
settlement was recorded in the 13 weeks ended May 1, 2004. Management expects that the Ñnal settlement
and resolution of this case will take place in the second quarter of Ñscal 2005.
On October 20, 2004, former Store Manager John P. Kurtz (""Kurtz'') Ñled a collective action lawsuit
against the Company in U.S. District Court, Western District of Louisiana, Lafayette/Opelousas Division,
17