GameStop 2008 Annual Report Download - page 87

7. Goodwill, Intangible Assets and Deferred Financing Fees
The changes in the carrying amount of goodwill for the Company’s business segments for the 52 weeks ended
February 2, 2008 and the 52 weeks ended January 31, 2009 were as follows:
United States Canada Australia Europe Total
(In thousands)
Balance at February 3, 2007 ............ $1,098,089 $116,818 $147,224 $ 41,776 $1,403,907
Adjustment to goodwill acquired ......... (1,467) — — — (1,467)
Balance at February 2, 2008 ............ $1,096,622 $116,818 $147,224 $ 41,776 $1,402,440
Goodwill acquired, net ................ — — 423 459,244 459,667
Balance at January 31, 2009 ............ $1,096,622 $116,818 $147,647 $501,020 $1,862,107
There were no impairments to goodwill during the 52 weeks ended January 31, 2009 and February 2, 2008.
Intangible assets consist of point-of-sale software and amounts attributed to favorable leasehold interests
acquired in the EB merger and Micromania acquisition and are included in other non-current assets in the
consolidated balance sheet. The tradename acquired in the Micromania acquisition in the amount of $133,231 has
been determined to be an indefinite lived intangible asset and is therefore not subject to amortization. The total
weighted-average amortization period for the remaining intangible assets, excluding goodwill, is approximately ten
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 EB merger are included in other noncurrent assets 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 changes in the carrying amount of deferred financing fees and other intangible assets for the 52 weeks
ended February 2, 2008 and January 31, 2009 were as follows:
Deferred
Financing Fees
Other Intangible
Assets
(In thousands)
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) —
Addition of leasehold rights ............................ — 5,238
Amortization for the 52 weeks ended February 2, 2008 ........ (2,259) (5,569)
Balance at February 2, 2008 .............................. 8,963 14,214
Addition for revolving credit facility amendment ............. 1,025 —
Addition for term loan facility fee ........................ 2,525 —
Write-off of deferred financing fees remaining on repurchased
senior notes (see Note 8) ............................. (337) —
Addition of non-compete agreement ...................... — 2,987
Addition of tradename from Micromania acquisition .......... — 133,231
Addition of leasehold rights from Micromania acquisition ...... — 105,292
Amortization for the 52 weeks ended January 31, 2009 ........ (3,256) (7,934)
Balance at January 31, 2009 .............................. $ 8,920 $247,790
F-20
GAMESTOP CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)