GameStop 2012 Annual Report Download - page 84

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GAMESTOP CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Summary of Significant Accounting Policies
Background
GameStop Corp. (together with its predecessor companies, “GameStop,” “we,” “us,” “our,” or the
“Company”) is the world’s largest multichannel video game retailer. The Company sells 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 its GameStop, EB Games and Micromania stores. The
Company’s stores, which totaled 6,602 at February 2, 2013, are located in major regional 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. In addition, we publish Game Informer
magazine, operate the online video gaming Web site www.kongregate.com, operate Spawn Labs, a streaming
technology company, operate a digital PC game distribution platform available at www.gamestop.com/pcgames,
operate iOS and Android mobile applications and operate an online consumer electronics marketplace available
at www.buymytronics.com. The Company operates in four business segments, which are the United States,
Australia, Canada and Europe.
The Company is a Delaware corporation, formerly known as GSC Holdings Corp., and has grown through a
business combination (the “EB merger”) of GameStop Holdings Corp., formerly known as GameStop Corp., and
Electronics Boutique Holdings Corp. (“EB”), which was completed on October 8, 2005.
Basis of Presentation and Consolidation
Our consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries
and its majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated
in consolidation. All dollar and share amounts (other than dollar amounts per share) in the consolidated financial
statements are stated in millions unless otherwise indicated.
The Company’s fiscal year is composed of the 52 or 53 weeks ending on the Saturday closest to the last day
of January. Fiscal 2012 consisted of the 53 weeks ended on February 2, 2013. Fiscal 2011 consisted of the
52 weeks ended on January 28, 2012. Fiscal 2010 consisted of the 52 weeks ended on January 29, 2011.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the
United States of America (“GAAP”) requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during the reporting period. In preparing
these financial statements, management has made its best estimates and judgments of certain amounts included in
the financial statements, giving due consideration to materiality. Changes in the estimates and assumptions used
by management could have significant impact on the Company’s financial results. Actual results could differ
from those estimates.
Reclassifications
Certain reclassifications have been made to conform the data in prior periods to the current year
presentation.
F-9