GameStop 2005 Annual Report Download - page 92

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6. Accrued Liabilities
Accrued liabilities consist of the following:
January 28,
2006
January 29,
2005
(In thousands)
Customer liabilities .......................................... $ 89,053 $35,213
Deferred revenue ........................................... 40,808 10,497
Accrued rent............................................... 13,501 6,090
Accrued interest ............................................ 19,943 22
Employee compensation and related taxes ......................... 36,543 5,750
Accrued merger costs and expenses (Note 2) ....................... 28,089 —
Other taxes ................................................ 20,917 5,129
Other accrued liabilities ...................................... 83,005 32,282
Total accrued liabilities ....................................... $331,859 $94,983
7. Goodwill and Intangible Assets
The changes in the carrying amount of goodwill for the Company’s business segments for the 52 weeks ended
January 29, 2005 and January 28, 2006 were as follows:
United States Canada Australia Europe Total
(In thousands)
Balance at January 31, 2004 ...... $ 317,957 $ — $ — $ 2,869 $ 320,826
Addition for the acquisition of
Gamesworld Group Limited .... — — — 62 62
Impairment for the 52 weeks ended
January 29, 2005 ............ — — — — —
Balance at January 29, 2005 ...... 317,957 — — 2,931 320,888
Additional cost relating to the
acquisition of Electronics
Boutique .................. 773,100 116,818 146,419 35,127 1,071,464
Impairment for the 52 weeks ended
January 28, 2006 ............ — — — — —
Balance at January 28, 2006 ...... $1,091,057 $116,818 $146,419 $38,058 $1,392,352
Intangible assets consist of non-compete agreements, point-of-sale software and amounts attributed to
favorable leasehold interests acquired in the merger and are included in other non-current assets in the consolidated
balance sheet. The total weighted-average amortization period for the intangible assets, excluding goodwill, is
approximately four years. The intangible assets are being amortized based upon the pattern in which the economic
benefits of the intangible assets are being utilized, with no expected residual value. Note 2 provides additional
information regarding intangible assets. The deferred financing fees associated with the Company’s revolving
credit facility and the senior floating rate notes and senior notes issued in connection with the financing of the
merger are separately shown in the consolidated balance sheet. The deferred financing fees are being amortized
over five, six and seven years to match the terms of the revolving credit facility, the senior floating rate notes and the
83
GAMESTOP CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)