GameStop 2007 Annual Report Download - page 87

Download and view the complete annual report

Please find page 87 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

The changes in the carrying amount of deferred financing fees and intangible assets for the 53 weeks ended
February 3, 2007 and the 52 weeks ended February 2, 2008 were as follows:
Deferred
Financing Fees
Intangible
Assets
(In thousands)
Balance at January 28, 2006 .................................. $18,561 $19,519
Addition for the exchange offer in May 2006 .................... 409 —
Write-off of deferred financing fees remaining on repurchased senior
notes and senior floating rate notes (see Note 8) ................ (1,445) —
Amortization for the 53 weeks ended February 3, 2007 ............ (3,150) (4,974)
Balance at February 3, 2007 .................................. 14,375 14,545
Addition for revolving credit facility renewal and extension in 2007 . . . 263 —
Write-off of deferred financing fees remaining on repurchased senior
notes and senior floating rate notes (see Note 8) ................ (3,416) —
Amortization for the 52 weeks ended February 2, 2008 ............ (2,259) (4,646)
Balance at February 2, 2008 .................................. $ 8,963 $ 9,899
The gross carrying value and accumulated amortization of deferred financing fees as of February 2, 2008 were
$20,318 and $11,355, respectively.
The estimated aggregate amortization expenses for deferred financing fees and other intangible assets for the
next five fiscal years are approximately:
Year Ended
Amortization
of Deferred
Financing Fees
Amortization of
Intangible
Assets
(In thousands)
January 2009 .......................................... $1,957 $3,599
January 2010 .......................................... 1,948 2,705
January 2011 .......................................... 1,946 1,891
January 2012 .......................................... 1,946 832
January 2013 .......................................... 894 396
$8,691 $9,423
8. Debt
In October 2005, in connection with the merger with EB, the Company entered into a five-year, $400,000
Credit Agreement (the “Revolver”), including a $50,000 letter of credit sub-limit, secured by the assets of the
Company and its U.S. subsidiaries. The Revolver places certain restrictions on the Company and its U.S. subsid-
iaries, including limitations on asset sales, additional liens and the incurrence of additional indebtedness.
In April 2007, the Company amended the Revolver to extend the maturity date from October 11, 2010 to
April 25, 2012, reduce the LIBO interest rate margin, reduce and fix the rate of the unused commitment fee and
modify or delete certain other covenants.
The availability under the Revolver is limited to a borrowing base which allows the Company to borrow up to
the lesser of (x) approximately 70% of eligible inventory and (y) 90% of the appraisal value of the inventory, in each
case plus 85% of eligible credit card receivables, net of certain reserves. Letters of credit reduce the amount
available to borrow by their face value. The Company’s ability to pay cash dividends, redeem options and
repurchase shares is generally prohibited, except that if availability under the Revolver is, or will be after any such
F-20
GAMESTOP CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)