GameStop 2007 Annual Report Download - page 35

• make loans and investments;
• declare dividends, make payments or redeem or repurchase capital stock;
• engage in mergers, acquisitions and other business combinations;
• prepay, redeem or purchase certain indebtedness;
• amend or otherwise alter the terms of our organizational documents and our indebtedness, including the
senior notes;
• sell assets; and
• transact with affiliates.
We cannot assure you that these covenants will not adversely affect our ability to finance our future operations
or capital needs or to pursue available business opportunities.
The senior credit facility contains various restrictive covenants prohibiting us, in certain circumstances, from,
among other things, prepaying, redeeming or purchasing certain indebtedness.
Despite current anticipated indebtedness levels and restrictive covenants, we may incur additional indebt-
edness in the future.
Despite our current level of indebtedness, we may be able to incur substantial additional indebtedness in the
future, including additional secured indebtedness. Although the terms of the indenture governing the senior notes
and our senior credit facility restrict the issuers of the senior notes and GameStop’s restricted subsidiaries from
incurring additional indebtedness, these restrictions are subject to important exceptions and qualifications. If we
incur additional indebtedness, the risks that we now face as a result of our leverage could intensify.
Item 1B. Unresolved Staff Comments
None.
Item 2. Properties
All of our stores are leased. Store leases typically provide for an initial lease term of three to ten years, plus
renewal options. This arrangement gives us the flexibility to pursue extension or relocation opportunities that arise
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 5,264 leased stores open as of February 2, 2008 expire as follows:
Lease Terms to Expire During
Number
of Stores
(12 Months Ending on or About January 31)
Expired and in negotiations ............................................. 52
2009 .............................................................. 881
2010 .............................................................. 1,022
2011 .............................................................. 909
2012 .............................................................. 616
2013 and later ....................................................... 1,784
5,264
The Company owns a 510,000 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
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