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Table of Contents
GAMESTOP CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Summary of Significant Accounting Policies
Background
GameStop Corp. (together with its predecessor companies, "GameStop," "we," "us," "our," or the "Company") is the world's largest
multichannel retailer of video game products and PC entertainment software. The Company sells new and used video game hardware, video game
software and accessories, PC entertainment software and other merchandise primarily through its GameStop, EB Games and Micromania stores. The
Company's stores, which totaled 6,670 at January 29, 2011, are located in major regional shopping malls and strip centers. We also operate
electronic commerce Web sites www.gamestop.com, www.ebgames.com.au, www.gamestop.ca, www.gamestop.it, www.gamestop.es,
www.gamestop.ie, www.gamestop.de and www.micromania.fr. In addition, we publish Game Informer magazine and operate the online video
gaming Web site www.kongregate.com. The Company operates in four business segments, which are the United States, Australia, Canada and
Europe.
The Company is a Delaware corporation, formerly known as GSC Holdings Corp., and has grown through a business combination (the "EB
merger") of GameStop Holdings Corp., formerly known as GameStop Corp., and Electronics Boutique Holdings Corp. ("EB"), which was
completed on October 8, 2005. The Company also has grown through acquisitions, including the purchase in November 2008 of SFMI Micromania
SAS ("Micromania"), a leading retailer of video and computer games in France.
Basis of Presentation and Consolidation
Our consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and its majority-owned
subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. All dollar and share amounts (other than
dollar amounts per share) in the consolidated financial statements are stated in millions unless otherwise indicated.
The Company's fiscal year is composed of the 52 or 53 weeks ending on the Saturday closest to the last day of January. Fiscal 2010 consisted
of the 52 weeks ended on January 29, 2011. Fiscal 2009 consisted of the 52 weeks ended on January 30, 2010. Fiscal 2008 consisted of the 52 weeks
ended on January 31, 2009. The financial statements included herein for fiscal 2010 include the results of Kongregate Inc., the online video gaming
company acquired by the Company on August 1, 2010. The Company's operating results for fiscal 2010 and fiscal 2009 include 52 weeks of
Micromania's results and the operating results for fiscal 2008 include 11 weeks of Micromania's results.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP")
requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. In preparing
these financial statements, management has made its best estimates and judgments of certain amounts included in the financial statements, giving
due consideration to materiality. Changes in the estimates and assumptions used by management could have significant impact on the Company's
financial results. Actual results could differ from those estimates.
Reclassifications
Certain reclassifications have been made to conform the prior period data to the current year presentation.
F-8