GameStop 2006 Annual Report Download - page 91

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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. In June 2006, the outstanding
principal balance under the mortgage of approximately $9,200 was paid in full in conjunction with the sale of the
distribution facility.
Maturities on debt, gross of the unamortized original issue discount of $6,689 on the Senior Notes, are as
follows:
Year Ended Amount
(In thousands)
January 2008 ....................................................... $ 12,176
January 2009 ....................................................... 86
January 2010 ....................................................... 326
January 2011 ....................................................... —
January 2012 ....................................................... 250,000
Thereafter ......................................................... 600,000
$862,588
9. Comprehensive Income
Comprehensive income is net earnings, plus certain other items that are recorded directly to stockholders’
equity and consisted of the following:
53 Weeks
Ended
February 3,
2007
52 Weeks
Ended
January 28,
2006
52 Weeks
Ended
January 29,
2005
(In thousands)
Net earnings ..................................... $158,250 $100,784 $60,926
Other comprehensive income:
Foreign currency translation adjustments ................ 2,341 319 271
Total comprehensive income ......................... $160,591 $101,103 $61,197
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 minimum
and, in some cases, 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.
F-23
GAMESTOP CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)