GameStop 2005 Annual Report Download - page 96

Download and view the complete annual report

Please find page 96 of the 2005 GameStop annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 120

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120

required by the promissory note, which also requires payments of $12,173 due in each of October 2006 and October
2007. The note is unsecured and bears interest at 5.5% per annum, payable when principal installments are due.
On May 25, 2005, a subsidiary of EB closed on a 10-year, $9,450 mortgage agreement collateralized by a new
315,000 square foot distribution facility located in Sadsbury Township, Pennsylvania. Interest is fixed at a rate of
5.4% per annum. As of January 28, 2006, the outstanding principal balance under the mortgage was approximately
$9,301.
Maturities on debt, gross of the unamortized original issue discount of $8,212 on the Senior Notes, are as
follows:
Year Ended Amount
(In thousands)
January 2007 ....................................................... $ 12,527
January 2008 ....................................................... 12,549
January 2009 ....................................................... 390
January 2010 ....................................................... 627
January 2011 ....................................................... 338
Thereafter ......................................................... 957,771
$984,202
9. Comprehensive Income
Comprehensive income is net earnings, plus certain other items that are recorded directly to stockholders’
equity and consists of the following:
52 Weeks
Ended
January 28,
2006
52 Weeks
Ended
January 29,
2005
52 Weeks
Ended
January 31,
2004
(In thousands)
Net earnings ..................................... $100,784 $60,926 $63,467
Other comprehensive income:
Foreign currency translation adjustments .............. 319 271 296
Total comprehensive income ......................... $101,103 $61,197 $63,763
10. Leases
The Company leases retail stores, warehouse facilities, office space and equipment. These are generally leased
under noncancelable agreements that expire at various dates through 2034 with various renewal options for
additional periods. The agreements, which have been classified as operating leases, generally provide for both
minimum and percentage rentals and require the Company to pay all insurance, taxes and other maintenance costs.
Leases with step rent provisions, escalation clauses or other lease concessions are accounted for on a straight-line
basis over the lease term, which includes renewal option periods when the Company is reasonably assured of
exercising the renewal options and includes “rent holidays” (periods in which the Company is not obligated to pay
rent). The Company does not have leases with capital improvement funding. Percentage rentals are based on sales
performance in excess of specified minimums at various stores.
87
GAMESTOP CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)