GameStop 2006 Annual Report Download - page 36

from changing market conditions. We believe that, as current leases expire, we will be able to obtain either renewals
at present locations or leases for equivalent locations in the same area.
The terms of the store leases for the 4,778 leased stores open as of February 3, 2007 expire as follows:
Lease Terms to Expire During
Number
of Stores
(12 Months Ending on or About January 31)
Expired and in negotiations ................................................ 815
2008................................................................. 941
2009................................................................. 1,035
2010................................................................. 756
2011................................................................. 536
2012 and later .......................................................... 695
4,778
In March 2004, we purchased a 480,000 square foot facility in Grapevine, Texas, which houses our corporate
headquarters and certain of our distribution operations. In May 2006, we purchased an additional 65,000 square foot
building at the Grapevine, Texas location which is currently being used in our refurbishing operations. We also own
the following distribution facilities: an 80,000 square foot distribution facility in Arlov, Sweden; a 120,000 square
foot distribution facility in Brampton, Ontario, Canada; a 107,500 square foot distribution facility in Milan, Italy; a
67,000 square foot distribution facility in Memmingen, Germany; and a 70,000 square foot distribution facility in
Pinkenba, Queensland, Australia.
In addition to our stores, we lease the following distribution or office facilities: a 260,000 square foot
distribution center in Louisville, Kentucky under a lease which expires in July 2010; a 13,000 square foot
distribution facility in New Zealand under a lease which expires in April 2010; a 22,000 square foot distribution
facility in Valencia, Spain under a lease which expires in March 2009; a 15,000 square foot office facility in
Valencia, Spain under a lease which expires in August 2009; a 11,700 square foot office facility in Minneapolis,
Minnesota which houses the operations of Game Informer magazine, under a lease which expires in February 2012;
a 15,000 square foot facility in Dublin, Ireland under a lease which expires in January 2013; and a 6,100 square foot
office facility in West Chester, Pennsylvania under a lease which expires in August 2008.
We lease a 27,000 square foot distribution center in Betzigau, Germany under a lease which, by its terms,
expires in September 2011. This facility is no longer in use and we are actively seeking a settlement with the
landlord with respect to the remaining term of the lease.
On June 15, 2006, the Company sold EB’s 140,000 square foot corporate office building in West Chester,
Pennsylvania and EB’s 315,000 square foot distribution facility in Sadsbury Township, Pennsylvania. The
Company retired a $9.2 million mortgage related to the Pennsylvania distribution facility.
Item 3. Legal Proceedings
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 claimed 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 four other
former employees, 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 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
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