GameStop 2013 Annual Report Download - page 97

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fee we are required to pay on the unused portion of the total commitment amount. The five-year, asset-based revolving credit
facility has a total commitment amount of $400 million, which is subject to a monthly borrowing base calculation, and is available
for the issuance of letters of credit of up to $50 million. The facility is secured by substantially all of our assets and the assets of
our domestic subsidiaries. We believe the extension of the maturity date of the revolving credit facility to March 2019 helps to
limit our exposure to potential tightening or other adverse changes in the credit markets.
In September 2007, our Luxembourg subsidiary entered into a discretionary $20.0 million Uncommitted Line of Credit (the
“Line of Credit”) with Bank of America. There is no term associated with the Line of Credit and Bank of America may withdraw
the facility at any time without notice. The Line of Credit is available to our foreign subsidiaries for use primarily as a bank
overdraft facility for short-term liquidity needs and for the issuance of bank guarantees and letters of credit to support operations.
As of February 1, 2014, there were no cash overdrafts outstanding under the Line of Credit and bank guarantees outstanding totaled
$4.3 million.
11. Leases
We lease 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 minimum and, in some cases, percentage rentals and require us to
pay all insurance, taxes and other maintenance costs. Leases with step rent provisions, escalation clauses or other lease concessions
are accounted for on a straight-line basis over the lease term, which includes renewal option periods when we are reasonably
assured of exercising the renewal options and includes “rent holidays” (periods in which we are not obligated to pay rent). Cash
or lease incentives received upon entering into certain store leases (“tenant improvement allowances”) are recognized on a straight-
line basis as a reduction to rent expense over the lease term, which includes renewal option periods when we are reasonably assured
of exercising the renewal options. We record the unamortized portion of tenant improvement allowances as a part of deferred rent.
We do not have leases with capital improvement funding. Percentage rentals are based on sales performance in excess of specified
minimums at various stores and are accounted for in the period in which the amount of percentage rentals can be accurately
estimated.
Approximate rental expenses under operating leases were as follows:
52 Weeks Ended
February 1, 2014
53 Weeks Ended
February 2, 2013
52 Weeks Ended
January 28, 2012
(In millions)
Minimum.................................................................................... $ 381.6 $ 385.4 $ 386.9
Percentage rentals....................................................................... 9.4 9.3 12.3
$ 391.0 $ 394.7 $ 399.2
Future minimum annual rentals, excluding percentage rentals, required under leases that had initial, noncancelable lease
terms greater than one year, as of February 1, 2014, are approximately:
Fiscal Year Ending on or around January 31, Amount
(In millions)
2015.............................................................................................................................................................. $ 332.5
2016.............................................................................................................................................................. 243.2
2017.............................................................................................................................................................. 162.6
2018.............................................................................................................................................................. 103.3
2019.............................................................................................................................................................. 67.8
Thereafter ..................................................................................................................................................... 130.0
$ 1,039.4
12. Commitments and Contingencies
Commitments
We had bank guarantees relating primarily to international store leases totaling $18.7 million as of February 1, 2014 and
$21 million as of February 2, 2013.
See Note 11 for information regarding commitments related to our noncancelable operating leases.