GameStop 2006 Annual Report Download - page 29

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located in malls and other locations; toy retail chains, including Toys “R” Us, Inc.; mail-order businesses; catalogs;
direct sales by software publishers; and online retailers and game rental companies. In addition, video games are
available for sale and rental from many video stores, such as Movie Gallery Inc. and Blockbuster, Inc. Video game
products may also be distributed through other methods which may emerge in the future. We also compete with
sellers of used video game products. Additionally, we compete with other forms of entertainment activities,
including movies, television, theater, sporting events and family entertainment centers.
Competitors in Europe include Game Group PLC and its subsidiaries, which operates in the United Kingdom,
Ireland, Scandinavia, France, Australia, Spain and Portugal and Media Markt, which operates throughout Europe.
Competitors in Canada include Wal-Mart, Best Buy and its subsidiary Future Shop. In Australia, competitors
include K-Mart, Target, Myer Department stores, Big W discount department stores and Dick Smith electronics
stores.
Seasonality
Our business, like that of many retailers, is seasonal, with the major portion of our sales and operating profit
realized during the fourth fiscal quarter, which includes the holiday selling season. During fiscal 2006, we generated
approximately 43% of our sales and approximately 67% of our operating earnings during the fourth quarter. During
fiscal 2005, on a pro forma basis, we generated approximately 38% of our sales and approximately 75% of our
operating earnings during the fourth quarter.
Trademarks
We have a number of trademarks and servicemarks, including “GameStop,” “Game Informer,” “EB Games,”
“Electronics Boutique,” “Babbage’s” and “FuncoLand,” all of which have been registered by us with the United
States Patent and Trademark Office. For many of our trademarks and servicemarks, we also have registered or have
registrations pending with the trademark authorities for our international locations. We maintain a policy of
pursuing registration of our principal marks and opposing any infringement of our marks.
Employees
We have approximately 12,000 full-time salaried and hourly employees and between 20,000 and 30,000 part-
time hourly employees worldwide, depending on the time of year. Fluctuation in the number of part-time hourly
employees is due to the seasonality of our business. We believe that our relationship with our employees is
excellent. None of our employees is represented by a labor union or is a member of a collective bargaining unit.
Available Information
We make available on our website (www.gamestop.com), under “Investor Relations — SEC Filings,” free of
charge, our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and
amendments to those reports as soon as reasonably practicable after we electronically file or furnish such material
with the Securities and Exchange Commission (“SEC”). You may read and copy this information or obtain copies of
this information by mail from the Public Reference Room of the SEC, 100 F Street, N.E., Washington, D.C. 20549,
at prescribed rates. Further information on the operation of the SEC’s Public Reference Room in Washington, D.C.
can be obtained by calling the SEC at 1-800-SEC-0330. The SEC also maintains a website that contains reports,
proxy statements and other information about issuers, like GameStop, who file electronically with the SEC. The
address of that site is http://www.sec.gov. In addition to copies of our annual reports on Form 10-K, quarterly reports
on Form 10-Q, current reports on Form 8-K, and amendments to those reports, the Company’s Code of Standards,
Ethics and Conduct is available on our website under “Investor Relations — Corporate Governance” and is
available to our stockholders in print, free of charge, upon written request to the Company’s Investor Relations
Department at GameStop Corp., 625 Westport Parkway, Grapevine, Texas 76051.
Item 1A. Risk Factors
An investment in our Company involves a high degree of risk. You should carefully consider the risks below,
together with the other information contained in this report, before you make an investment decision with respect to
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