GameStop 2006 Annual Report Download - page 18

Recent Developments
On February 7, 2007, following approval by a majority of the Class B common stockholders in a Special
Meeting of the Company’s Class B common stockholders, all outstanding Class B common shares were converted
into Class A common shares on a one-for-one basis (the “Conversion”). In addition, on February 9, 2007, the Board
of Directors of the Company authorized a two-for-one stock split, effected by a one-for-one stock dividend to
stockholders of record at the close of business on February 20, 2007, paid on March 16, 2007 (the “Stock Split”).
Unless otherwise indicated, all numbers in this Annual Report on Form 10-K have been restated to reflect the
Conversion and the Stock Split.
On February 9, 2007, the Board of Directors of the Company also authorized an additional $150,000,000 for
the buyback of the Company’s senior floating rate notes and senior notes. The timing and amount of the repurchases
will be determined by the Company’s management based on their evaluation of market conditions and other factors.
In addition, the repurchases may be suspended or discontinued at any time.
Disclosure Regarding Forward-looking Statements
This report on Form 10-K and other oral and written statements made by the Company to the public contain
forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the
“Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The
forward-looking statements involve a number of risks and uncertainties. A number of factors could cause our actual
results, performance, achievements or industry results to be materially different from any future results, perfor-
mance or achievements expressed or implied by these forward-looking statements. These factors include, but are
not limited to:
• our reliance on suppliers and vendors for sufficient quantities of their products and for new product releases;
• economic conditions affecting the electronic game industry;
• the competitive environment in the electronic game industry;
• our ability to open and operate new stores;
• our ability to attract and retain qualified personnel;
• the impact and costs of litigation and regulatory compliance;
• unanticipated litigation results;
• the risks involved with our international operations;
• alternate sources of distribution of video game software; and
• other factors described in this Form 10-K, including those set forth under the caption, “Item 1A. Risk
Factors.”
In some cases, forward-looking statements can be identified by the use of terms such as “anticipates,”
“believes,” “continues,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,” “will,”
“should,” “seeks,” “pro forma” or similar expressions. These statements are only predictions based on current
expectations and assumptions and involve known and unknown risks, uncertainties and other factors that may cause
our or our industry’s actual results, levels of activity, performance or achievements to be materially different from
any future results, levels of activity, performance or achievements expressed or implied by such forward-looking
statements. You should not place undue reliance on these forward-looking statements.
Although we believe that the expectations reflected in our forward-looking statements are reasonable, we
cannot guarantee future results, levels of activity, performance or achievements. We undertake no obligation to
publicly update or revise any forward-looking statements, whether as a result of new information, future events or
otherwise after the date of this Form 10-K. In light of these risks and uncertainties, the forward-looking events and
circumstances contained in this Form 10-K may not occur, causing actual results to differ materially from those
anticipated or implied by our forward-looking statements.
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