GameStop 2010 Annual Report Download - page 93

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Table of Contents
GAMESTOP CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Term Loan Agreement provided for term loans ("Term Loans") in the aggregate of $150 million, consisting of a $50 million secured term loan
("Term Loan A") and a $100 million unsecured term loan ("Term Loan B"). The effective interest rate on Term Loan A was 5.75% per annum and
the effective rate on Term Loan B ranged from 5.0% to 5.75% per annum.
In addition to the $150 million under the Term Loans, the Company borrowed $275 million under the Credit Agreement to complete the
acquisition of Micromania in November 2008. As of January 31, 2009, the Credit Agreement and the Term Loans were repaid in full.
As of January 30, 2010 and January 29, 2011, the only long-term debt outstanding was the Senior Notes.
The maturity on the $250 million Senior Notes, gross of the unamortized original issue discount of $1.0 million, occurs in the fiscal year
ending January 2013.
10. Leases
The Company leases retail stores, warehouse facilities, office space and equipment. These are generally leased under noncancelable
agreements that expire at various dates through 2034 with various renewal options for additional periods. The agreements, which have been
classified as operating leases, generally provide for minimum and, in some cases, percentage rentals and require the Company to pay all insurance,
taxes and other maintenance 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 52 Weeks 52 Weeks
Ended Ended Ended
January 29, January 30, January 31,
2011 2010 2009
(In millions)
Minimum $ 370.8 $ 354.3 $ 303.7
Percentage rentals 11.1 22.6 23.0
$ 381.9 $ 376.9 $ 326.7
Future minimum annual rentals, excluding percentage rentals, required under leases that had initial, noncancelable lease terms greater than one
year, as of January 29, 2011, are approximately:
Year Ended Amount
(In millions)
January 2012 $ 350.7
January 2013 285.7
January 2014 206.5
January 2015 138.6
January 2016 93.2
Thereafter 262.9
$ 1,337.6
F-23