GameStop 2005 Annual Report Download - page 97

Approximate rental expenses under operating leases are as follows:
52 Weeks
Ended
January 28,
2006
52 Weeks
Ended
January 29,
2005
52 Weeks
Ended
January 31,
2004
(In thousands)
Minimum ....................................... $126,562 $76,466 $58,105
Percentage rentals. ................................ 8,620 4,471 7,418
$135,182 $80,937 $65,523
Future minimum annual rentals, excluding percentage rentals, required under leases that had initial, non-
cancelable lease terms greater than one year, as of January 28, 2006 are approximately:
Year Ended Amount
(In thousands)
January 2007 ....................................................... $ 197,128
January 2008 ....................................................... 183,076
January 2009 ....................................................... 156,223
January 2010 ....................................................... 120,540
January 2011 ....................................................... 86,014
Thereafter ......................................................... 274,463
$1,017,444
11. Litigation
On October 19, 2004, Milton Diaz filed a complaint against a subsidiary of EB in the U.S. District Court for the
Western District of New York. Mr. Diaz claims to represent a group of current and former employees to whom
Electronics Boutique of America Inc. (“EBOA”) allegedly failed to pay minimum wages and overtime compen-
sation in violation of the Fair Labor Standards Act (“FLSA”) and New York law. The plaintiff, joined by another
former employee, moved to conditionally certify a group of similarly situated individuals under the FLSA and in
March 2005, there was a hearing on this motion. In March 2005, plaintiffs filed a motion on behalf of current and
former store managers and assistant store managers in New York to certify a class under New York wage and hour
laws. In August 2005, EBOA filed a motion for summary judgment as to certain claims and renewed its request that
certification of the claims be denied. On October 17, 2005, the District Court issued an Order denying plaintiffs’
request for conditional certification under the FLSA and for class certification of plaintiffs’ New York claims.
Plaintiffs have requested permission from the Second Circuit Court of Appeals to appeal the District Court’s Order
denying class certification of their New York claims. EBOA’s summary judgment motion was scheduled to be heard
in December 2005. Before the hearing on the summary judgment motion, the parties agreed to attempt to resolve the
matter without further litigation. Both the District Court and the Second Circuit have stayed their proceedings
pending the parties’ settlement negotiations. We do not believe there is sufficient information to estimate the
amount of the possible loss, if any, resulting from this matter.
On February 14, 2005, and as amended, Steve Strickland, as personal representative of the Estate of Arnold
Strickland, deceased, Henry Mealer, as personal representative of the Estate of Ace Mealer, deceased, and Willie
Crump, as personal representative of the Estate of James Crump, deceased, filed a wrongful death lawsuit against
GameStop, Sony, Take-Two Interactive, Rock Star Games and Wal-Mart (collectively, the “Defendants”) and Devin
Moore in the Circuit Court of Fayette County, Alabama, alleging that Defendants’ actions in designing, manu-
facturing, marketing and supplying Defendant Moore with violent video games were negligent and contributed to
Defendant Moore killing Arnold Strickland, Ace Mealer and James Crump. Plaintiffs are seeking damages of
$600,000 under the Alabama wrongful death statute and punitive damages. GameStop and the other defendants
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GAMESTOP CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)