GameStop 2012 Annual Report Download - page 64

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In January 2010, the Board of Directors of the Company approved a $300 million share repurchase program
authorizing the Company to repurchase its common stock. At the beginning of fiscal 2010, $64.6 million of
treasury share purchases made during fiscal 2009 were settled. In September 2010, the Board of Directors of the
Company approved an additional $300 million share repurchase program authorizing the Company to repurchase
its common stock. For fiscal 2010, the number of shares repurchased was 17.1 million for an average price per
share of $19.84. Approximately $22.0 million of treasury share purchases were not settled at the end of fiscal
2010 and were reported in accrued liabilities at January 29, 2011. In February 2011, the Board of Directors of the
Company authorized a $500 million repurchase fund to be used for share repurchases of its common stock and/or
to retire the Company’s Senior Notes. This plan replaced the September 2010 $300 million stock repurchase plan
which had $138.4 million remaining. In November 2011, the Board of Directors authorized the Company to use
$500 million to repurchase shares of the Company’s common stock and/or retire the Company’s Senior Notes,
replacing the remaining $180.1 million authorization. For fiscal 2011, the number of shares repurchased was
11.2 million for an average price per share of $21.38. In March 2012, the Board of Directors authorized the
Company to use $500 million to repurchase shares of the Company’s common stock, replacing the remaining
$253.4 million of the November 2011 authorization. In November 2012, the Board of Directors authorized the
Company to use $500 million to repurchase shares of the Company’s common stock, replacing the remaining
$241.6 million of the March 2012 authorization. For fiscal 2012, the number of shares repurchased was
19.9 million for an average price per share of $20.60. As of February 2, 2013, the Company had $425.3 million
remaining under the November 2012 authorization. As of March 25, 2013, the Company has purchased an
additional 1.0 million shares for an average price per share of $25.06, leaving $400.0 million available under the
November 2012 authorization.
On February 8, 2012, the Board of Directors of the Company approved the initiation of a quarterly cash
dividend to its stockholders of Class A Common Stock. The first quarterly cash dividend of $0.15 per share was
paid on March 12, 2012. The second quarterly cash dividend of $0.15 per share was paid on June 12, 2012. The
third quarterly cash dividend of $0.25 per share was paid on September 12, 2012. The fourth quarterly cash
dividend of $0.25 per share was paid on December 12, 2012. On February 18, 2013, the Board of Directors of the
Company approved the quarterly cash dividend to its stockholders of $0.275 per share of Class A Common Stock
payable on March 19, 2013 to stockholders of record at the close of business on March 5, 2013. Future dividends
will be subject to approval by the Board of Directors of the Company.
Based on our current operating plans, we believe that available cash balances, cash generated from our
operating activities and funds available under the Revolver will be sufficient to fund our operations, digital
initiatives, store openings and remodeling activities and corporate capital expenditure programs, including the
payment of dividends declared by the Board of Directors, for at least the next 12 months.
Contractual Obligations
The following table sets forth our contractual obligations as of February 2, 2013:
Payments Due by Period
Contractual Obligations Total
Less Than
1 Year 1-3 Years 3-5 Years
More Than
5 Years
(In millions)
Operating Leases ................... $1,028.4 $ 325.8 $386.2 $170.8 $145.6
Purchase Obligations(1) ............. 769.1 769.1 — — —
Total ............................. $1,797.5 $1,094.9 $386.2 $170.8 $145.6
(1) Purchase obligations represent outstanding purchase orders for merchandise from vendors. These purchase
orders are generally cancelable until shipment of the products.
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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