GameStop 2004 Annual Report Download - page 76

GAMESTOP CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
Future minimum annual rentals, excluding percentage rentals, required under leases that had initial,
noncancelable lease terms greater than one year, as of January 29, 2005 are approximately:
Year Ended Amount
(In thousands)
January 2006 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 70,045
January 2007 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 63,084
January 2008 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 57,756
January 2009 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 53,162
January 2010 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 45,689
Thereafter ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 154,646
$444,382
11. Litigation
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. 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,
alleging that GameStop's salaried retail managers were misclassiÑed as exempt and should have been paid
overtime, in violation of the Fair Labor Standards Act. Kurtz is seeking to represent all current and former
salaried retail managers who were employed by GameStop for the three years before October 20, 2004. Kurtz
is seeking recovery of unpaid overtime, interest, penalties, attorneys' fees and costs. On January 12, 2005,
GameStop Ñled an answer to the complaint and a motion to transfer the action to the Northern District of
Texas, Fort Worth Division. GameStop is awaiting the court's decision on the motion. Management intends to
vigorously defend this action and does not believe there is suÇcient information to estimate the amount of the
possible loss, if any, resulting from the lawsuit.
On February 14, 2005, Steve Strickland, as personal representative of the Estate of Arnold Strickland,
deceased, and Henry Mealer, as personal representative of the Estate of Ace Mealer, deceased, Ñled a
wrongful death lawsuit against GameStop, Sony, Take-Two Interactive and Wal-Mart (collectively, the
""Defendants'') and Devin Moore in the Circuit Court of Fayette County, Alabama, alleging that Defendants'
actions in designing, manufacturing, marketing and supplying Defendant Moore with violent video games were
negligent and contributed to Defendant Moore killing Arnold Strickland and Ace Mealer. PlaintiÅs are
seeking damages in excess of $600 million under the Alabama wrongful death statute. GameStop and the
other defendants are in the process of preparing an initial response and intend to vigorously defend this action.
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