GameStop 2011 Annual Report Download - page 97

GAMESTOP CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
In September 2007, the Company’s Luxembourg subsidiary entered into a discretionary $20.0 million
Uncommitted Line of Credit (the “Line of Credit”) with Bank of America. There is no term associated with the
Line of Credit and Bank of America may withdraw the facility at any time without notice. The Line of Credit will
be made available to the Company’s foreign subsidiaries for use primarily as a bank overdraft facility for short-
term liquidity needs and for the issuance of bank guarantees and letters of credit to support operations. As of
January 28, 2012, there were no cash overdrafts outstanding under the Line of Credit and bank guarantees
outstanding totaled $5.0 million.
In September 2005, the Company, along with GameStop, Inc. as co-issuer (together with the Company, the
“Issuers”), completed the offering of $300 million aggregate principal amount of Senior Floating Rate Notes due
2011 (the “Senior Floating Rate Notes”) and $650 million aggregate principal amount of Senior Notes due 2012
(the “Senior Notes” and, together with the Senior Floating Rate Notes, the “Notes”). The Notes were issued
under an Indenture, dated September 28, 2005 (the “Indenture”), by and among the Issuers, the subsidiary
guarantors party thereto, and Citibank, N.A., as trustee. In November 2006, Wilmington Trust Company was
appointed as the new trustee for the Notes (the “Trustee”).
The Senior Notes bore interest at 8.0% per annum, were to mature on October 1, 2012 and were priced at
98.688%, resulting in a discount at the time of issue of $8.5 million. The discount was amortized using the
effective interest method. The Issuers paid interest on the Senior Notes semi-annually, in arrears, every April 1
and October 1, to holders of record on the immediately preceding March 15 and September 15, and at maturity.
As of January 28, 2012, the Senior Notes have been fully redeemed.
Between May 2006 and December 2011, the Company repurchased and redeemed the $300 million of
Senior Floating Rate Notes and the $650 million of Senior Notes under previously announced buybacks
authorized by the Company’s Board of Directors. The repurchased Notes were delivered to the Trustee for
cancellation. The associated loss on the retirement of debt was $1.0 million for the 52 week period ended
January 28, 2012, which consisted of the write-off of the deferred financing fees and the original issue discount
on the Notes. The associated loss on the retirement of debt was $6.0 million and $5.3 million for the 52 week
periods ended January 29, 2011 and January 30, 2010, respectively, which consisted of the premium paid to retire
the Notes and the write-off of the deferred financing fees and the original issue discount on the Notes.
The changes in the carrying amount of the Senior Notes for the Company for the 52 weeks ended
January 29, 2011 and the 52 weeks ended January 28, 2012 were as follows (in millions):
Balance at January 30, 2010 ................................................... $447.3
Repurchased and redeemed Senior Notes, net ..................................... (198.3)
Balance at January 29, 2011 ................................................... $249.0
Redeemed Senior Notes, net ................................................... (249.0)
Balance at January 28, 2012 ................................................... $ 0.0
As of January 29, 2011, the only long-term debt outstanding was the Senior Notes.
11. 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
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