GameStop 2011 Annual Report Download - page 105

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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
Ended
January 28,
2012
52 Weeks
Ended
January 29,
2011
52 Weeks
Ended
January 30,
2010
Gross
Profit
Gross
Profit
Percent
Gross
Profit
Gross
Profit
Percent
Gross
Profit
Gross
Profit
Percent
Gross Profit:
New video game hardware .................. $ 113.6 7.0% $ 124.9 7.3% $ 113.5 6.5%
New video game software ................... 839.0 20.7% 819.6 20.7% 795.0 21.3%
Used video game products ................... 1,221.2 46.6% 1,140.5 46.2% 1,121.2 46.8%
Other ................................... 505.7 39.8% 452.6 34.4% 405.0 33.8%
Total .................................. $2,679.5 28.1% $2,537.6 26.8% $2,434.7 26.8%
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, the online video
gaming Web site www.kongregate.com, a digital PC game distribution platform available at
www.gamestop.com/pcgames and the streaming technology company Spawn Labs. 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 six countries. 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):
Fiscal Year Ended January 28, 2012
United
States Canada Australia Europe Other Consolidated
Sales .................................. $6,637.0 $498.4 $604.7 $1,810.4 $ — $9,550.5
Depreciation and amortization .............. 126.4 6.1 12.4 41.4 — 186.3
Asset impairment and restructuring charges .... 28.9 1.3 0.6 50.4 — 81.2
Operating earnings ....................... 501.9 12.4 35.4 20.2 — 569.9
Interest income .......................... (50.4) (0.3) (5.3) (0.2) 55.3 (0.9)
Interest expense .......................... 18.9 — 0.2 56.9 (55.3) 20.7
Earnings before income tax expense .......... 532.4 12.8 40.5 (36.6) — 549.1
Income tax expense (benefit) ............... 197.4 4.2 11.7 (2.7) — 210.6
Goodwill ............................... 1,152.0 137.4 210.0 519.6 — 2,019.0
Other long-lived assets .................... 404.0 23.0 58.3 345.8 — 831.1
Total assets ............................. 2,718.2 350.8 513.3 1,265.1 — 4,847.4
F-31