GameStop 2004 Annual Report Download - page 52

a promissory note in the principal amount of $74.0 million, which is payable in installments over the next three
years and bears interest at 5.5% per annum, payable when principal installments are due. The Company made
a principal payment of $37.5 million on the promissory note in January 2005. Interest expense on the
promissory note for the 52 weeks ended January 29, 2005 totaled $1.3 million.
In July 2003, the Company purchased an airplane from a company controlled by a member of the Board
of Directors. The purchase price was $9.5 million and was negotiated through an independent third party
following an independent appraisal.
Michael N. Rosen, our Secretary and one of our directors, is a partner of Bryan Cave LLP, which is
counsel to us.
Item 14. Principal Accountant Fees and Services
Registered Independent Public Accounting Firm
The Ñrm of BDO Seidman, LLP (""BDO Seidman'') has been selected as the registered independent
public accounting Ñrm for the Company.
The independent accountants examine annual Ñnancial statements and provide other permissible non-
audit and tax-related services for the Company. The Company and the Audit Committee have considered
whether the non-audit services provided by BDO Seidman are compatible with maintaining the independence
of BDO Seidman in its audit of the Company and are not considered prohibited services under the Sarbanes-
Oxley Act of 2002.
Audit Fees. In Ñscal 2004, the professional services of BDO Seidman totaled $575,907 for the
Company's audit of the annual Ñnancial statements, for reviews of the Company's Ñnancial statements
included in the Company's quarterly reports on Form 10-Q Ñled with the SEC and for the audit of the
Company's internal controls over Ñnancial reporting. For Ñscal 2003, the Company paid BDO Seidman
$258,253 for professional services rendered for the Company's audit of the annual Ñnancial statements and for
reviews of the Company's Ñnancial statements included in the Company's quarterly reports on Form 10-Q
Ñled with the SEC.
Audit-Related Fees. In Ñscal 2004, the Company paid BDO Seidman $122,465 for services in respect of
employee beneÑt plan audits ($9,000) and consultation concerning Ñnancial accounting and reporting
standards ($113,465). In Ñscal 2003, the Company paid BDO Seidman $13,450 for services in respect of
employee beneÑt plan audits ($11,000) and consultation concerning Ñnancial accounting and reporting
standards ($2,450).
Tax Fees. In Ñscal 2004, the Company paid BDO Seidman $355,285 for tax-related services. In Ñscal
2003, the Company paid BDO Seidman $59,390 for tax-related services. Tax-related services included
professional services rendered for tax compliance, tax advice and tax planning.
All Other Fees. The Company did not pay BDO Seidman any other fees in Ñscal 2004 or Ñscal 2003.
Pre-approval Policies and Procedures. The Audit Committee Charter adopted by the board of directors
of the Company requires that, among other things, the Audit Committee pre-approve the rendering by the
Company's independent auditor of all audit and permissible non-audit services. Accordingly, as part of its
policies and procedures, the Audit Committee considers and pre-approves any such audit and permissible non-
audit services on a case-by-case basis. Since its formation in September 2002, the Audit Committee has
approved the services provided by BDO Seidman referred to above.
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