GameStop 2009 Annual Report Download - page 92

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costs. Leases with step rent provisions, escalation clauses or other lease concessions are accounted for on a straight-
line basis over the lease term, which includes renewal option periods when the Company is reasonably assured of
exercising the renewal options and includes “rent holidays” (periods in which the Company is not obligated to pay
rent). The Company does not have leases with capital improvement funding. Percentage rentals are based on sales
performance in excess of specified minimums at various stores.
Approximate rental expenses under operating leases were as follows:
52 Weeks
Ended
January 30,
2010
52 Weeks
Ended
January 31,
2009
52 Weeks
Ended
February 2,
2008
(In thousands)
Minimum ....................................... $354,310 $303,727 $255,259
Percentage rentals. ................................ 22,580 22,927 19,968
$376,890 $326,654 $275,227
Future minimum annual rentals, excluding percentage rentals, required under leases that had initial, non-
cancelable lease terms greater than one year, as of January 30, 2010 are approximately:
Year Ended Amount
(In thousands)
January 2011 ....................................................... $ 338,745
January 2012 ....................................................... 282,537
January 2013 ....................................................... 228,683
January 2014 ....................................................... 160,224
January 2015 ....................................................... 100,420
Thereafter ......................................................... 154,933
$1,265,542
11. Commitments and Contingencies
Contingencies
On February 14, 2005, and as amended, Steve Strickland, as personal representative of the Estate of
Arnold Strickland, deceased, Henry Mealer, as personal representative of the Estate of Ace Mealer, deceased,
and Willie Crump, as personal representative of the Estate of James Crump, deceased, filed a wrongful death lawsuit
against GameStop, Sony, Take-Two Interactive, Rock Star Games and Wal-Mart (collectively, the “Defendants”)
and Devin Moore, alleging that Defendants’ actions in designing, manufacturing, marketing and supplying
Defendant Moore with violent video games were negligent and contributed to Defendant Moore killing Arnold
Strickland, Ace Mealer and James Crump. Moore was found guilty of capital murder in a criminal trial and was
sentenced to death in August 2005.
Plaintiffs’ counsel named an expert who plaintiffs indicated would testify that violent video games were a
substantial factor in causing the murders. The testimony of plaintiffs’ psychologist expert was heard by the Court on
October 30, 2008, and the motion to exclude that testimony was argued on December 12, 2008. On July 30, 2009,
the trial court entered its Order granting summary judgment for all defendants, dismissing the case with prejudice on
the grounds that plaintiffs’ expert’s testimony did not satisfy the Frye standard for expert admissibility. Subsequent
to the entry of the Order, the plaintiffs filed a notice of appeal.
The Company does not believe there is sufficient information to estimate the amount of the possible loss, if
any, resulting from the lawsuit if the plaintiffs’ appeal is successful.
F-24
GAMESTOP CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)