GameStop 2012 Annual Report Download - page 45

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(1) The Company’s results of operations for fiscal 2012 include charges related to goodwill impairments of
$627.0 million resulting from the Company’s interim goodwill impairment tests performed during the third
quarter of fiscal 2012.
(2) The Company’s results of operations for fiscal 2012 include charges related to asset impairments of
$53.7 million of which $44.9 million relates to the impairment of the Micromania trade name and $8.8
million relates to other impairment charges from the interim and annual evaluations of store property,
equipment and other assets. The Company’s results of operations for fiscal 2011 include charges related to
asset impairments and restructuring charges of $81.2 million, of which $37.8 million relates to the
impairment of the Micromania trade name, $22.7 million relates to the impairment of investments in non-
core businesses and $20.7 million relates to other impairments, termination benefits and facility closure
costs. For fiscal years 2008 through 2010, the asset impairments and restructuring charges are related to the
impairment charges from the annual evaluation of store property, equipment and other assets.
(3) The Company’s results of operations for the 52 weeks ended January 31, 2009 include expenses of
$4.6 million which were of a one-time or short-term nature associated with the Micromania acquisition, of
which $3.5 million related to foreign currency losses on funds used to purchase Micromania.
(4) Comparable store sales is a measure commonly used in the retail industry, which indicates store
performance by measuring the growth in sales for certain stores for a particular period over the
corresponding period in the prior year. Our comparable store sales is comprised of sales from stores
operating for at least 12 full months as well as sales related to our Web sites and sales we earn from sales of
pre-owned merchandise to wholesalers or dealers. Comparable store sales for our international operating
segments exclude the effect of changes in foreign currency exchange rates. The calculation of comparable
store sales for the 53 weeks ended February 2, 2013 compares the 53 weeks for the period ended February 2,
2013 to the most closely comparable weeks for the prior year period. The method of calculating comparable
store sales varies across the retail industry. As a result, our method of calculating comparable store sales
may not be the same as other retailers’ methods.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion should be read in conjunction with the information contained in our consolidated
financial statements, including the notes thereto. Statements regarding future economic performance,
management’s plans and objectives, and any statements concerning assumptions related to the foregoing
contained in Management’s Discussion and Analysis of Financial Condition and Results of Operations constitute
forward-looking statements. Certain factors, which may cause actual results to vary materially from these
forward-looking statements, accompany such statements or appear elsewhere in this Form 10-K, including the
factors disclosed under “Item 1A. — Risk Factors.”
General
GameStop Corp. (together with its predecessor companies, “GameStop,” “we,” “us,” “our,” or the
“Company”) is the world’s largest multichannel video game retailer. We sell new and pre-owned video game
hardware, physical and digital video game software, accessories, as well as PC entertainment software and other
merchandise primarily through our GameStop, EB Games and Micromania stores. As of February 2, 2013, we
operated 6,602 stores, in the United States, Australia, Canada and Europe, which are primarily located in major
shopping malls and strip centers. We also operate electronic commerce Web sites www.gamestop.com,
www.ebgames.com.au, www.ebgames.co.nz, www.gamestop.ca, www.gamestop.it, www.gamestop.es,
www.gamestop.ie, www.gamestop.de, www.gamestop.co.uk and www.micromania.fr. The network also
includes: www.kongregate.com, a leading browser-based game site; Game Informer magazine, the leading multi-
platform video game publication; Spawn Labs, a streaming technology company; a digital PC distribution
platform available at www.gamestop.com/pcgames; iOS and Android mobile applications; and an online
consumer electronics marketplace available at www.buymytronics.com.
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