GameStop 2010 Annual Report Download - page 94

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Table of Contents
GAMESTOP CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
11. Commitments and Contingencies
Contingencies
In the ordinary course of the Company's business, the Company is, from time to time, subject to various legal proceedings, including matters
involving wage and hour employee class actions. The Company may enter into discussions regarding settlement of these and other types of lawsuits,
and may enter into settlement agreements, if it believes settlement is in the best interest of the Company's shareholders. Management does not
believe that any such existing legal proceedings or settlements, individually or in the aggregate, will have a material adverse effect on the Company's
financial condition, results of operations or liquidity.
In 2003, the Company purchased a 51% controlling interest in GameStop Group Limited, which operates stores in Ireland and the United
Kingdom. Under the terms of the purchase agreement, the minority interest owners have the ability to require the Company to purchase their
remaining shares in incremental percentages at a price to be determined based partially on the Company's price to earnings ratio and GameStop
Group Limited's earnings. Shares representing approximately 16% were purchased in June 2008 and in July 2009 an additional 16% was purchased,
bringing the Company's total interest in GameStop Group Limited to approximately 84%. The Company already consolidates the results of
GameStop Group Limited; therefore, any additional amounts acquired will not have a material effect on the Company's financial statements.
12. Income Taxes
The provision for income tax consisted of the following:
52 Weeks 52 Weeks 52 Weeks
Ended Ended Ended
January 29, January 30, January 31,
2011 2010 2009
(In millions)
Current tax expense:
Federal $ 133.3 $ 162.3 $ 201.4
State 13.3 12.1 18.9
Foreign 29.8 39.6 40.1
176.4 214.0 260.4
Deferred tax expense (benefit):
Federal 39.1 0.2 (15.8)
State 2.7 1.5 (7.5)
Foreign (3.6) (2.9) (1.4)
38.2 (1.2) (24.7)
Total income tax expense $ 214.6 $ 212.8 $ 235.7
The components of earnings before income tax expense consisted of the following:
52 Weeks 52 Weeks 52 Weeks
Ended Ended Ended
January 29, January 30, January 31,
2011 2010 2009
(In millions)
United States $ 553.8 $ 508.9 $ 532.8
International 67.6 79.6 101.2
Total $ 621.4 $ 588.5 $ 634.0
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