GameStop 2013 Annual Report Download - page 41

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cash dividends on our common stock in the future, the success of an investment in our common stock will depend entirely upon
its future appreciation. Our common stock may not appreciate in value or even maintain the price at which it was purchased.
We may record future goodwill impairment charges or other asset impairment charges which could negatively impact our
future results of operations and financial condition.
In recent periods we have recorded significant non-cash charges relating to the impairment of goodwill and other tangible
and intangible assets that had a material adverse effect on our consolidated statements of operations and consolidated balance
sheets. Because we have grown in part through acquisitions, goodwill and other acquired intangible assets represent a substantial
portion of our assets. We also have long-lived assets consisting of property and equipment and other identifiable intangible assets
which we review both on an annual basis as well as when events or circumstances indicate that the carrying amount of an asset
may not be recoverable. If a determination is made that a significant impairment in value of goodwill, other intangible assets or
long-lived assets has occurred, such determination could require us to impair a substantial portion of our assets. Asset impairments
could have a material adverse effect on our financial condition and results of operations.
Risks Relating to Indebtedness
Because of our floating rate credit facility, we may be adversely affected by interest rate changes.
Our financial position may be affected by fluctuations in interest rates, as our senior credit facility is subject to floating
interest rates.
Interest rates are highly sensitive to many factors, including governmental monetary policies, domestic and international
economic and political conditions and other factors beyond our control. If we were to borrow against our senior credit facility, a
significant increase in interest rates could have an adverse effect on our financial position and results of operations.
The terms of our senior credit facility may impose significant operating and financial restrictions on us.
The terms of our senior credit facility may impose significant operating and financial restrictions on us in certain
circumstances. These restrictions, among other things, limit our ability to:
• incur, assume or permit to exist additional indebtedness or guaranty obligations;
• incur liens or agree to negative pledges in other agreements;
• engage in sale and leaseback transactions;
• make loans and investments;
• declare dividends, make payments or redeem or repurchase capital stock;
• engage in mergers, acquisitions and other business combinations;
• prepay, redeem or purchase certain indebtedness;
• amend or otherwise alter the terms of our organizational documents and indebtedness;
• sell assets; and
• engage in transactions with affiliates.
We cannot assure you that these covenants will not adversely affect our ability to finance our future operations or capital
needs or to pursue available business opportunities.
We may incur additional indebtedness in the future, which may adversely impact our financial condition and results of
operations.
We may incur additional indebtedness in the future, including additional secured indebtedness. Our senior credit facility
restricts us from incurring additional indebtedness and is subject to important exceptions and qualifications. Such future
indebtedness may have restrictions similar to or more restrictive than those contained in our senior credit facility. The incurrence
of additional indebtedness could impact our financial condition and results of operations.
Item 1B. Unresolved Staff Comments
None.