GameStop 2007 Annual Report Download - page 86

6. Accrued Liabilities
Accrued liabilities consisted of the following:
February 2,
2008
February 3,
2007
(In thousands)
Customer liabilities .......................................... $145,626 $111,213
Deferred revenue ........................................... 47,423 56,049
Accrued rent............................................... 22,698 16,074
Accrued interest ............................................ 19,181 21,240
Employee compensation and related taxes ......................... 58,445 47,371
Other taxes ................................................ 34,004 34,851
Other accrued liabilities ...................................... 82,501 70,218
Total accrued liabilities ....................................... $409,878 $357,016
7. Goodwill, Intangible Assets and Deferred Financing Fees
The changes in the carrying amount of goodwill for the Company’s business segments for the 53 weeks ended
February 3, 2007 and the 52 weeks ended February 2, 2008 were as follows:
United States Canada Australia Europe Total
(In thousands)
Balance at January 28, 2006 ............. $1,091,057 $116,818 $146,419 $38,058 $1,392,352
Additional cost relating to the acquisition of
Electronics Boutique ................. (1,051) — 805 3,718 3,472
Cost relating to the acquisition of Game
Brands Inc. ....................... 8,083 — — — 8,083
Balance at February 3, 2007 ............. $1,098,089 $116,818 $147,224 $41,776 $1,403,907
Adjustment relating to the acquisition of
Game Brands Inc. .................. (1,467) — — — (1,467)
Balance at February 2, 2008 ............. $1,096,622 $116,818 $147,224 $41,776 $1,402,440
There were no impairments to goodwill during the 52 weeks ended February 2, 2008 and the 53 weeks ended
February 3, 2007.
Intangible assets consist of point-of-sale software and amounts attributed to favorable leasehold interests
acquired in the mergers and are included in other non-current assets in the consolidated balance sheet. The total
weighted-average amortization period for the intangible assets, excluding goodwill, is approximately four years.
The intangible assets are being amortized based upon the pattern in which the economic benefits of the intangible
assets are being utilized, with no expected residual value.
The deferred financing fees associated with the Company’s revolving credit facility and senior notes issued in
connection with the financing of the mergers are separately shown in the consolidated balance sheet. The deferred
financing fees are being amortized over five and seven years to match the terms of the revolving credit facility and
the senior notes, respectively. The deferred financing fees shown in the consolidated balance sheet for February 3,
2007 included deferred financing fees associated with the senior floating rate notes payable which were repurchased
or redeemed in the 52 weeks ended February 2, 2008. The deferred financing fees associated with the senior floating
rate notes were being amortized over six years to match the term of the underlying notes and any remaining deferred
financing fees were written-off as the underlying notes were repurchased or redeemed.
F-19
GAMESTOP CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)