GameStop 2009 Annual Report Download - page 46

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Consolidated Results of Operations
The following table sets forth certain statement of operations items as a percentage of sales for the periods
indicated:
52 Weeks Ended
January 30,
2010
52 Weeks Ended
January 31,
2009
52 Weeks Ended
February 2,
2008
Statement of Operations Data:
Sales ................................... 100.0% 100.0% 100.0%
Cost of sales ............................. 73.2 74.2 74.4
Gross profit .............................. 26.8 25.8 25.6
Selling, general and administrative expenses ...... 18.0 16.4 16.7
Depreciation and amortization ................ 1.8 1.6 1.8
Merger-related expenses ..................... — 0.1 —
Operating earnings ......................... 7.0 7.7 7.1
Interest expense, net ........................ 0.4 0.5 0.7
Debt extinguishment expense ................. 0.1 — 0.2
Earnings before income taxes ................. 6.5 7.2 6.2
Income tax expense ........................ 2.4 2.7 2.1
Consolidated net income .................... 4.1 4.5 4.1
Net loss attributable to noncontrolling interests .... 0.1 — —
Consolidated net income attributable to GameStop . . . 4.2% 4.5% 4.1%
The Company includes purchasing, receiving and distribution costs in selling, general and administrative
expenses, rather than cost of sales, in the statement of operations. The Company includes processing fees associated
with purchases made by check and credit cards in cost of sales, rather than selling, general and administrative
expenses, in the statement of operations. As a result of these classifications, our gross margins are not comparable to
those retailers that include purchasing, receiving and distribution costs in cost of sales and include processing fees
associated with purchases made by check and credit cards in selling, general and administrative expenses. The net
effect of these classifications as a percentage of sales has not historically been material.
The following table sets forth sales (in millions) by significant product category for the periods indicated:
Sales
Percent
of Total Sales
Percent
of Total Sales
Percent
of Total
52 Weeks
Ended
January 30,
2010
52 Weeks
Ended
January 31,
2009
52 Weeks
Ended
February 2,
2008
Sales:
New video game hardware .............. $1,756.5 19.3% $1,860.2 21.1% $1,668.9 23.5%
New video game software .............. 3,730.9 41.1% 3,685.0 41.9% 2,800.7 39.5%
Used video game products .............. 2,394.1 26.4% 2,026.6 23.0% 1,586.7 22.4%
Other.............................. 1,196.5 13.2% 1,234.1 14.0% 1,037.7 14.6%
Total .............................. $9,078.0 100.0% $8,805.9 100.0% $7,094.0 100.0%
Other products include PC entertainment and other software, accessories and magazines.
31