GameStop 2005 Annual Report Download - page 103

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The following table sets forth gross profit (in millions) and gross profit percentages by significant product
category for the periods indicated:
Gross
Profit
Gross
Profit
Percent
Gross
Profit
Gross
Profit
Percent
Gross
Profit
Gross
Profit
Percent
52 Weeks Ended
January 28,
2006
52 Weeks Ended
January 29,
2005
52 Weeks Ended
January 31,
2004
Gross Profit:
New video game hardware ........... $ 30.9 6.1% $ 8.5 4.1% $ 10.6 5.3%
New video game software ........... 266.5 21.4% 151.9 19.6% 128.6 19.9%
Used video game products ........... 383.0 47.4% 231.6 45.3% 179.3 44.5%
Other ........................... 191.6 35.8% 117.3 34.0% 114.4 34.7%
Total ......................... $872.0 28.2% $509.3 27.6% $432.9 27.4%
17. Segment Information
Following the completion of the merger, the Company now operates its business in the following segments:
United States, Canada, Australia and Europe. The Company identifies segments based on a combination of
geographic areas and management responsibility. Each of the segments includes significant retail operations with
all stores engaged in the sale of new and used video game systems and software and personal computer
entertainment software and related accessories. Segment results for the United States include retail operations
in 50 states, the District of Columbia, Guam and Puerto Rico, electronic commerce web sites under the names
gamestop.com and ebgames.com and Game Informer magazine. Segment results for Canada include retail
operations in Canada and segment results for Australia include retail operations in Australia and New Zealand.
Segment results for Europe include retail operations in 11 European countries. Prior to the merger, Historical
GameStop had operations in Ireland and the United Kingdom which were not material. The Company measures
segment profit using operating earnings, which is defined as income from continuing operations before net interest
expense and income taxes. Transactions between reportable segments consist primarily of intersegment loans and
related interest.
Information on segments and the reconciliation to earnings before income taxes are as follows (in millions):
Fiscal Year Ended January 28, 2006
United
States Canada Australia Europe Other Consolidated
Sales ...................... $2,709.8 $111.4 $ 94.4 $176.2 $ — $3,091.8
Depreciation and amortization .... 58.6 2.6 1.9 3.3 — 66.4
Operating earnings ............ 173.7 7.9 11.0 0.1 — 192.7
Interest income ............... (4.6) (0.2) (0.3) (1.3) 1.3 (5.1)
Interest expense .............. 28.4 0.2 — 3.1 (1.3) 30.4
Earnings (loss) before income tax
expense (benefit)............ 142.4 7.9 11.2 (1.6) — 159.9
Goodwill ................... 1,091.1 116.8 146.4 38.1 — 1,392.4
Other long-lived assets ......... 359.1 37.6 21.0 83.8 — 501.5
Total assets. . . ............... 2,347.1 210.4 214.7 242.9 — 3,015.1
94
GAMESTOP CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)