GameStop 2010 Annual Report Download - page 100

Download and view the complete annual report

Please find page 100 of the 2010 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 143

  • 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
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143

Table of Contents
GAMESTOP CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The following table sets forth gross profit (in millions) and gross profit percentages by significant product category for the periods indicated:
52 Weeks 52 Weeks 52 Weeks
Ended Ended Ended
January 29, January 30, January 31,
2011 2010 2009
Gross Gross Gross
Gross Profit Gross Profit Gross Profit
Profit Percent Profit Percent Profit Percent
Gross Profit:
New video game hardware $ 124.9 7.3% $ 113.5 6.5% $ 112.6 6.1%
New video game software 819.6 20.7% 795.0 21.3% 768.4 20.9%
Used video game products 1,140.5 46.2% 1,121.2 46.8% 974.5 48.1%
Other 452.6 34.4% 405.0 33.8% 414.6 33.6%
Total $ 2,537.6 26.8% $ 2,434.7 26.8% $ 2,270.1 25.8%
17. Segment Information
The Company operates its business in the following segments: United States, Canada, Australia and Europe. The Company identifies segments
based on a combination of geographic areas and management responsibility. Each of the segments includes significant retail operations with all
stores engaged in the sale of new and used video game systems and software and personal computer entertainment software and related accessories.
Segment results for the United States include retail operations in 50 states, the District of Columbia, Guam and Puerto Rico, the electronic
commerce Web site www.gamestop.com, Game Informer magazine, and the online video gaming Web site www.kongregate.com. Segment results
for Canada include retail and e-commerce operations in Canada and segment results for Australia include retail and e-commerce operations in
Australia and New Zealand. Segment results for Europe include retail operations in 13 European countries and e-commerce operations in five
countries. The fiscal 2010 and fiscal 2009 results of the European segment include Micromania's results. The fiscal 2008 results of the European
segment include 11 weeks of Micromania's results. The Company measures segment profit using operating earnings, which is defined as income
from continuing operations before intercompany royalty fees, net interest expense and income taxes. Transactions between reportable segments
consist primarily of royalties, management fees, intersegment loans and related interest.
Information on segments and the reconciliation to earnings before income taxes are as follows (in millions):
United
Fiscal Year Ended January 29, 2011 States Canada Australia Europe Other Consolidated
Sales $ 6,681.2 $ 502.3 $ 565.2 $ 1,725.0 $ — $ 9,473.7
Depreciation and amortization 115.6 7.4 10.9 40.8 — 174.7
Operating earnings 530.8 22.6 41.0 68.2 — 662.6
Interest income (45.7) (0.2) (4.4) (0.7) 49.2 (1.8)
Interest expense 35.7 — 0.2 50.3 (49.2) 37.0
Earnings before income tax expense 534.9 22.8 45.1 18.6 — 621.4
Income tax expense 180.4 7.4 13.7 13.1 — 214.6
Goodwill 1,128.6 137.4 195.9 534.4 — 1,996.3
Other long-lived assets 421.9 27.2 50.5 413.1 — 912.7
Total assets 2,896.7 357.6 469.4 1,340.1 — 5,063.8
F-30