GameStop 2007 Annual Report Download - page 109

Download and view the complete annual report

Please find page 109 of the 2007 GameStop annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 115

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115

21. Subsequent Event
On March 28, 2008, the Company entered into a stock purchase agreement with Free Record Shop Holding
B.V., a Dutch company, to purchase all of the outstanding stock of Free Record Shop Norway AS, a Norwegian
private limited liability company (“FRS”). FRS operates approximately 50 record stores in Norway and also
operates office and warehouse facilities in Oslo, Norway. During fiscal 2008, the Company intends to convert these
stores into video game stores with an inventory assortment similar to its other stores in Norway. The Company will
include the results of operations of FRS, which are not expected to be material, in its financial statements beginning
on the closing date of the acquisition, which is expected to be April 5, 2008.
22. Unaudited Quarterly Financial Information
The following table sets forth certain unaudited quarterly consolidated statement of operations information for
the fiscal years ended February 2, 2008 and February 3, 2007. The unaudited quarterly information includes all
normal recurring adjustments that management considers necessary for a fair presentation of the information
shown.
1st
Quarter(1)
2nd
Quarter(2)
3rd
Quarter(3)
4th
Quarter
1st
Quarter(4)
2nd
Quarter(5)
3rd
Quarter(6)
4th
Quarter(7)
Fiscal Year Ended February 2, 2008 Fiscal Year Ended February 3, 2007
(Amounts in thousands, except per share amounts)
Sales . . ................ $1,278,983 $1,338,193 $1,611,201 $2,865,585 $1,040,027 $963,347 $1,011,560 $2,303,966
Gross profit . . . ........... 348,769 361,299 419,564 684,075 302,034 299,264 315,656 554,488
Operating earnings . . . ...... 60,618 50,747 96,905 293,151 38,116 25,753 44,940 224,870
Net earnings . . ........... 24,723 21,810 51,957 189,801 11,701 3,177 13,569 129,803
Net earnings per common
share — basic ........... 0.16 0.14 0.32 1.18 0.08 0.02 0.09 0.85
Net earnings per common
share — diluted .......... 0.15 0.13 0.31 1.14 0.07 0.02 0.09 0.81
The following footnotes are discussed as pretax expenses.
(1) The results of operations for the first quarter of the fiscal year ended February 2, 2008 include debt
extinguishment expense of $6,724.
(2) The results of operations for the second quarter of the fiscal year ended February 2, 2008 include debt
extinguishment expense of $2,027.
(3) The results of operations for the third quarter of the fiscal year ended February 2, 2008 include debt
extinguishment expense of $3,840.
(4) The results of operations for the first quarter of the fiscal year ended February 3, 2007 include merger-related
expenses of $1,326.
(5) The results of operations for the second quarter of the fiscal year ended February 3, 2007 include merger-related
expenses of $2,572 and debt extinguishment expense of $191.
(6) The results of operations for the third quarter of the fiscal year ended February 3, 2007 include merger-related
expenses of $2,890 and debt extinguishment expense of $3,371.
(7) The results of operations for the fourth quarter of the fiscal year ended February 3, 2007 include 14 weeks of
operations and debt extinguishment expense of $2,497.
F-42
GAMESTOP CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)