GameStop 2012 Annual Report Download - page 93

GAMESTOP CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
further information associated with the trade name impairment. In addition, $22.7 million was recorded related to
the impairment of investments in non-core businesses, primarily a small retail movie chain of stores owned by
the Company until fiscal 2011. The Company also incurred restructuring charges in the fourth quarter of fiscal
2011 related to the exit of certain markets in Europe and the closure of underperforming stores in the
international segments, as well as the consolidation of European home office sites and back-office functions.
These restructuring charges were a result of management’s plan to rationalize the international store base and
improve profitability. In addition, the Company recognized impairment charges related to its annual evaluation of
store property, equipment and other assets in situations where the asset’s carrying value was not expected to be
recovered by its future cash flows over its remaining useful life.
A summary of the Company’s asset impairments and restructuring charges for the 52 weeks ended
January 28, 2012 is as follows:
United States Canada Australia Europe Total
(In millions)
Intangible asset impairment ............................ $ — $— $— $37.8 $37.8
Impairment of investments in non-core businesses .......... 22.7 — — — 22.7
Property, equipment and other asset impairments ........... 3.2 1.1 0.5 6.4 11.2
Termination benefits .................................. 3.0 0.2 — 2.4 5.6
Facility closure and other costs ......................... — — 0.1 3.8 3.9
Total .............................................. $28.9 $1.3 $0.6 $50.4 $81.2
The Company’s accrual for termination benefits and facility closure and other costs was recorded as a
current liability within accrued liabilities on its consolidated balance sheet as of January 28, 2012 in the amount
of $9.5 million. The following table summarizes the balance of accrued expenses related to the restructuring
initiative and the changes in the accrued expenses as of and for the 53 weeks ended February 2, 2013 (in
millions):
Accrued
Balance as of
January 28,
2012
Activity for the 53 Weeks Ended February 2, 2013
Accrued
Balance as of
February 2,
2013Charges
Cash
Payments
Non-cash and
Foreign
Currency
Changes
Termination benefits ................ $5.6 $— $(4.6) $(0.1) $0.9
Facility closure and other costs ........ 3.9 — (2.2) (1.7) —
Total ............................ $9.5 $— $(6.8) $(1.8) $0.9
The Company also recognized impairment charges in fiscal 2010 of $1.5 million related to its annual
evaluation of store property, equipment and other assets in situations where the asset’s carrying value was not
expected to be recovered by its future discounted cash flows over its remaining useful life. These charges were
primarily related to the Company’s stores in the European segment.
3. Acquisitions
During fiscal 2012, the Company completed acquisitions with a total consideration of $1.5 million, with the
excess of the purchase price over the net identifiable assets acquired, in the amount of $1.5 million recorded as
goodwill. During fiscal 2011, the Company completed acquisitions with a total consideration of $30.1 million,
with the excess of the purchase price over the net identifiable assets acquired, in the amount of $26.9 million
recorded as goodwill. During fiscal 2010, the Company completed acquisitions with a total consideration of
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