GameStop 2011 Annual Report Download - page 94

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GAMESTOP CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
8. Accrued Liabilities
Accrued liabilities consisted of the following (in millions):
January 28,
2012
January 29,
2011
Customer liabilities ............................................. $323.2 $242.7
Deferred revenue ............................................... 84.6 74.9
Accrued rent .................................................. 7.4 10.4
Employee benefits, compensation and related taxes ................... 135.4 124.3
Other taxes ................................................... 60.4 60.9
Settlement of treasury share purchases .............................. 0.1 22.0
Other accrued liabilities ......................................... 138.7 121.8
Total accrued liabilities .......................................... $749.8 $657.0
9. Goodwill, Intangible Assets and Deferred Financing Fees
The changes in the carrying amount of goodwill for the Company’s business segments for the 52 weeks
ended January 29, 2011 and the 52 weeks ended January 28, 2012 were as follows:
United States Canada Australia Europe Total
(In millions)
Balance at January 30, 2010 ......................... $1,100.2 $128.5 $174.1 $543.7 $1,946.5
Goodwill acquired, net ............................. 28.5 — — — 28.5
Foreign currency translation adjustment ............... (0.1) 8.9 21.8 (9.3) 21.3
Balance at January 29, 2011 ......................... 1,128.6 137.4 195.9 534.4 1,996.3
Goodwill acquired, net ............................. 26.9 — — — 26.9
Impairment loss .................................. (3.3) — — — (3.3)
Foreign currency translation adjustment ............... (0.2) — 14.1 (14.8) (0.9)
Balance at January 28, 2012 ......................... $1,152.0 $137.4 $210.0 $519.6 $2,019.0
There were no impairments to goodwill during the 52 weeks ended January 29, 2011. During the 52 weeks
ended January 28, 2012, $3.3 million of goodwill was expensed in the United States segment as a result of the
exiting of an immaterial non-core business.
Intangible assets, primarily from the EB merger and Micromania acquisition, consist of internally developed
software, amounts attributed to favorable leasehold interests and advertiser relationships which are included in
other intangible assets in the consolidated balance sheet. The trade names acquired, primarily Micromania, have
been determined to be indefinite-lived intangible assets and are therefore not subject to amortization. The total
weighted-average amortization period for the remaining intangible assets, excluding goodwill, is approximately
ten years. The intangible assets are being amortized based upon the pattern in which the economic benefits of the
intangible assets are being utilized, with no expected residual value. For fiscal 2011, the Company recorded a
$37.8 million charge as a result of the Company’s annual impairment test of its Micromania trade name.
The deferred financing fees associated with the Company’s revolving credit facility are included in other
noncurrent assets in the consolidated balance sheet and are being amortized over five years to match the term of
F-20