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A GROWING FAMILY
2014 ANNUAL REPORT

Table of contents

  • Page 1
    A GROWING FAMILY 2014 ANNUAL REPORT

  • Page 2
    ... in management ejtimatej. Free Cash Flow* (In Millionj) Revenue by Sales Category for 2014 $6 32 .6 21.8% New Video Game Hardware 33.2% New Video Game Software $4 70 .3 $4 59 .0 34 .3 25.7% 7.1% 2.3% Pre-Owned and Value Video Game Productj Video Game Accejjoriej Digital Mobile and Conjumer...

  • Page 3
    ... expansion of GameStop's global family of specialty retail brands. Once again, we outperformed the global video game retail category, achieving our highest market share in our history in next-generation video game hardware and software, with a 28% and 46% share, respectively. Our digital business...

  • Page 4
    ...impactful in helping us drive our market share growth. Our teams also continued to drive the growth of our digital business by maximizing our brick and mortar stores to sell digital full-game downloads, downloadable content, PC downloads and PlayStation Network, Xbox Live, and Steam Wallet cards. We...

  • Page 5
    ... We are excited about the future of GameStop and are committed to evolving from a pure video game retailer to a family of specialty retail brands that operates globally in new spaces. On behalf of our board, executive leadership team and 40,000 team members worldwide, we thank you for your continued...

  • Page 6
    ... International business, we continued finding new GameStop's next-generation software unit sales increased 92% over the last console launch cycle. ways to enhance the customer experience with the video game brands our customers love. We placed a focus on selling video game, movie and pop culture...

  • Page 7
    5 2014 ANNUAL REPORT Revenue by Operating Segment for 2014 (In Millions) global same store sales increased 3.4% compared to fiscal 2013. GameStop International delivered a 5.3% increase in same store sales, led by a 10.6% increase from EB Games in Australia. 66% United States $6,193.5 18% ...

  • Page 8
    ... 70% of those credits applied to the purchase of new products. To make trading in video game products even easier for customers, we simplified our trade pricing structure in August 2014. This change helped us increase the amount of trades we received by 20%, giving customers more currency to spend...

  • Page 9
    ... versus 2013 as value consumers entered the video game category by purchasing affordable legacy hardware. Critical to the continued success of our buy-sell-trade program is the competitive advantage we have through our 10 Refurbishment Operations Centers (ROCs) located around the world. Collectively...

  • Page 10
    ... first full year as a GameStop business segment, these AT&T and Apple retail brands contributed 5% to our overall consolidated operating profit. We undertook a major geographic expansion plan for Spring Mobile in 2014, more than doubling the number of AT&T branded retail stores to 361 in 26 states...

  • Page 11
    ... dealer acquisitions and new store Openings. Spring Mobile Cricket Wireless increased no-contract wireless activations by 51% versus 2013 Through New Store Growth. Our Technology Brands had a great 2014 And contributed 5% to GameStop's consolidated operating Profits. Simply Mac increased trade...

  • Page 12
    ... business initiatives, provide unique exclusive offers and drive overall market share. The PowerUp Rewards credit card launched in the fall of 2014. In four short months we saw more than $225 million in credit awarded to members. WE hosted more than 37,500 gaming fans at our annual U.S. Gamestop...

  • Page 13
    ... business is influencing 10X That Amount spent IN STORE. GameStop's Pick-Up at store, which lets customers shop for games, systems and accessories online and pick them up at a local store, experienced 146% SALES growth during 2014. In the U.S., 1 in 5 customers are PowerUp Rewards members...

  • Page 14
    ... of our digital business include Xbox Live and PlayStation Network digital subscriptions and point cards, Steam Wallet cards, which grew 40% in 2014, and sales of full game downloads. We continued to expand the global availability of our digital edition of Game Informer magazine with distribution in...

  • Page 15
    13 2014 ANNUAL REPORT Our mobile game titles Have been downloaded more than 35 million times. Kongregate's mobile puBlishing revenues increased 580% in 2014.

  • Page 16
    ...Foundation GameStop associates helped grant more than 300 shopping spree wishes at GameStop stores in 2014. We also conducted our firstever in-store Make-A-Wish donation program during the month of May. The in-store program allowed customers the opportunity to contribute to Wish Kids of all ages. We...

  • Page 17
    ... management team. In 2014, we provided nearly $300,000 in financial assistance to help our associates manage through the loss of a home or vehicle due to fire or natural disaster, a death of a loved one, or homelessness. Our family of GameStop associates continued to give back in the communities...

  • Page 18
    ..., we must maximize our core video game business and dominate the new console cycle. Next, we will continue to offer customers value through new and expanded benefits of our PowerUp Rewards loyalty program and unique buy-sell-trade business. Third, the introduction of new product offerings, such as...

  • Page 19
    ...Parkway Grapevine, Texas (Address of principal executive offices) Registrant's telephone number, including area code: (817) 424-2000 Securities registered pursuant to Section 12(b) of the Act: (Title of Class) Class A Common Stock, $.001 par value per share (Name of Exchange on Which Registered) New...

  • Page 20
    ... Accounting and Financial Disclosure...Item 9A. Controls and Procedures ...Item 9B. Other Information ...Item 5. PART III Directors, Executive Officers and Corporate Governance ...Executive Compensation ...Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters...

  • Page 21
    ... and digital video game software, video game accessories, as well as new and pre-owned mobile and consumer electronics products and other merchandise. As of January 31, 2015, GameStop's retail network and family of brands include 6,690 company-operated stores in the United States, Australia, Canada...

  • Page 22
    ... new and pre-owned video game systems, software and accessories, which we refer to as video game products. Our Video Game Brands stores sell various types of digital products, including downloadable content, network points cards, prepaid digital, online timecards and digitally downloadable software...

  • Page 23
    ... content downloads for console and PC, subscriptions, mobile games and social network games) was between $8 billion and $10 billion in 2014. New Video Game Products. Video game products appeal to a wide array of consumers, from avid gamers spending many hours per week playing console gaming systems...

  • Page 24
    ...Technology Brands stores. We buy, sell and trade pre-owned mobile devices and tablets in many of our Video Game Brands and Technology Brands stores. Consumer Electronics. Our Simply Mac stores are authorized Apple resellers and also offer certified training, warranty and repair services to customers...

  • Page 25
    ... are selling AT&T products and services in our Spring Mobile managed AT&T and Cricket Wireless branded stores and in some of our Simply Mac and U.S. GameStop stores. We acquired Spring Mobile in November 2013. Spring Mobile has grown from approximately 90 stores at the end of 2012 to 361 stores at...

  • Page 26
    ... to open new Simply Mac stores in fiscal 2015 and the coming years. In connection with the continued expansion of our Technology Brands business, Spring Mobile and Simply Mac completed acquisitions of several additional AT&T resellers and authorized Apple retailers, respectively, in fiscal 2014. We...

  • Page 27
    ... Xbox Live, the PlayStation Network and PC gaming websites has led to consumer demand for subscription, time and points cards ("digital currency") as well as DLC, for existing console video games. To respond to this demand, we currently sell various types of products that relate to the digital...

  • Page 28
    ...trading of select pre-owned smart phones, tablets and MP3 players in a majority of stores in our U.S. and international markets. Beginning in November 2013, this product category also includes the revenues generated in our Spring Mobile managed AT&T and Cricket Wireless branded stores and Simply Mac...

  • Page 29
    ...800 square feet. Our Spring Mobile managed AT&T and Cricket Wireless branded stores carry wireless products and accessories, and our Simply Mac stores carry Apple and other consumer electronics. Our stores are generally located in high-traffic "power strip centers," local neighborhood strip centers...

  • Page 30
    ... Locations. The table below sets forth the number and locations of our domestic stores included in the U.S. Video Game Brands and Technology Brands segments as of January 31, 2015: Number of Stores U.S. Video Game Brands Technology Brands Alabama...Alaska ...Arizona ...Arkansas ...California...

  • Page 31
    ...of each paid PowerUp Rewards membership. We also operate the website www.gameinformer.com, which is the premier destination for moment-by-moment news, features and reviews related to video gaming. In 2014, the website averaged over 2.9 million monthly unique visitors. Game Informer revenues are also...

  • Page 32
    ...to earn unique video game related rewards not available through any other retailer. Vendors also participate in these programs to increase the sales of their individual products. Our PowerUp Rewards program in the United States gives our customers the ability to sign up for a free or paid membership...

  • Page 33
    ... their business management skills. We also sponsor annual store managers' conferences at which we operate intense educational training programs to provide our employees with information about the video game products that will be released by publishers in the holiday season. All video game software...

  • Page 34
    ... and T-Mobile. Our Simply Mac stores compete with Apple, including online and corporate owned Apple stores, mass-market retailers as noted above, and other authorized Apple resellers. Our Spring Mobile managed Cricket Wireless branded stores compete with the pre-paid and post-paid wireless service...

  • Page 35
    ... a number of trademarks and servicemarks, including "GameStop," "Game Informer," "EB Games," "Electronics Boutique," "Spring Mobile," "Simply Mac," "Kongregate," "Power to the PlayersTM" and "PowerUp Rewards," which have been registered by us with the United States Patent and Trademark Office. For...

  • Page 36
    ... favorable business terms, we may not be able to offer products to our customers at competitive prices. If our vendors fail to provide marketing and merchandising support at historical levels, our sales and earnings could be negatively impacted. The manufacturers of video game hardware and software...

  • Page 37
    ... acquisitions. These activities include investments in and acquisitions of digital, browser, social and mobile gaming and technology-based companies as the delivery methods for video games continue to evolve, and investments in new retail categories like wireless and consumer electronics. Our plans...

  • Page 38
    ... our sales and profitability. Our international operations expose us to numerous risks. We have international retail operations in Australia, Canada and Europe. Because release schedules for hardware and software introduction in these markets can sometimes differ from release schedules in the United...

  • Page 39
    ... locations, enter into new leases, locate alternative sites or find additional sites for new store expansion. Restrictions on our ability to take trade-ins of and sell pre-owned video game products or pre-owned mobile devices could negatively affect our financial condition and results of operations...

  • Page 40
    ... stores worldwide in fiscal 2014 and plan to close approximately 200-300 Video Game Brands stores worldwide in fiscal 2015. We believe that we can ultimately increase profitability by successfully transferring customers and sales to other stores by marketing directly to the PowerUp Rewards members...

  • Page 41
    ... directly or indirectly restrict our ability to pay dividends, the payment of dividends is within the discretion of our Board of Directors and will depend upon our future earnings and cash flow from operations, our capital requirements, our financial condition and any other factors that the Board...

  • Page 42
    ... 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...

  • Page 43
    ... open or acquire approximately 400-600 new stores in fiscal 2015, including 50 Video Game Brands stores and 350-550 Technology Brands stores. We also plan to close approximately 200-300 Video Game Brands stores worldwide in fiscal 2015. The terms of the store leases for the 6,690 leased stores open...

  • Page 44
    Item 4. Mine Safety Disclosures Not applicable. 25

  • Page 45
    ... fiscal 2014, we paid quarterly dividends of $0.33 per share of Class A Common Stock during each of the four fiscal quarters. On March 3, 2015, our Board of Directors authorized an increase in our annual cash dividend from $1.32 to $1.44 per share of Class A Common Stock. Our payment of dividends is...

  • Page 46
    ... Yet Be Purchased Under the Plans or Programs (1) (In millions of dollars) Period Total Number of Shares Purchased Average Price Paid per Share November 2, 2014 through November 29, 2014 ...November 30, 2014 through January 3, 2015...January 4, 2015 through January 31, 2015 ...Total ... 748,859...

  • Page 47
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  • Page 48
    ... 28, 2012 and January 29, 2011 consisted of 52 weeks. The "Statement of Operations Data" for the fiscal years ended January 31, 2015, February 1, 2014 and February 2, 2013 and the "Balance Sheet Data" as of January 31, 2015 and February 1, 2014 are derived from our audited consolidated financial...

  • Page 49
    ...Operating Data: Number of stores by segment United States ...Canada...Australia ...Europe ...Technology Brands...Total...Comparable store sales increase (decrease)(3) ...Inventory turnover ...Balance Sheet Data: Working capital...Total assets...Total debt, net(4) ...Total liabilities ...Total equity...

  • Page 50
    ... sales related to our websites and sales we earn from sales of pre-owned merchandise to wholesalers or dealers. Comparable store sales for our international operating segments exclude the effect of changes in foreign currency exchange rates. The calculation of comparable store sales for the 52 weeks...

  • Page 51
    ...wireless retail stores and pre-paid wireless stores under the name Cricket Wireless (an AT&T brand) in the United States, as well as a certified Apple reseller selling Apple consumer electronic products in the United States under the name Simply Mac. We operate our business in four Video Game Brands...

  • Page 52
    ... cost method, as new product is received from vendors, its current cost is added to the existing cost of product on-hand and this amount is re-averaged over the cumulative units. Pre-owned video game products traded in by customers are recorded as inventory at the amount of the store credit given...

  • Page 53
    ...," to the consolidated financial statements included in this Form 10-K for a full description of our goodwill. Estimate Description Customer Liabilities Our PowerUp Rewards loyalty program allows enrolled members to earn points on purchases in our stores and on some of our websites that can be...

  • Page 54
    ...Micromania trade name, we are required to make certain We value our dealer agreements using a assumptions regarding future cash flow discounted cash flow analysis known as projections to ensure that such the Greenfield Method, which assumes projections represent reasonable market that a business, at...

  • Page 55
    ... related to the interpretations of complex tax laws, regulations and taxing authority rulings, as well as to the expiration of statutes of limitations in the jurisdictions in which we operate. We base our estimate of an annual effective tax rate at any given point in time on a calculated...

  • Page 56
    ... Percent of Total 52 Weeks Ended February 1, 2014 Net Sales Percent of Total 53 Weeks Ended February 2, 2013 Net Sales Percent of Total Net Sales: New video game hardware(1) ...$ New video game software ...Pre-owned and value video game products ...Video game accessories ...Digital ...Mobile and...

  • Page 57
    ... 52 Weeks Ended February 1, 2014 Gross Profit Gross Profit Percent 53 Weeks Ended February 2, 2013 Gross Profit Gross Profit Percent Gross Profit: New video game hardware(1) ...$ New video game software...Pre-owned and value video game products...Video game accessories ...Digital ...Mobile and...

  • Page 58
    ... in millions 52 Weeks Ended February 1, 2014 Dollars in millions $ Change % Net Sales: New video game hardware(1) ...New video game software...Pre-owned and value video game products...Video game accessories...Digital...Mobile and consumer electronics ...Other(2)...Total... $ $ 2,028.7 3,089...

  • Page 59
    ... a percentage of sales on mobile and consumer electronics revenues increased to 36.0% in fiscal 2014 from 21.4% in fiscal 2013 due to the acquisition and opening of new stores within the Technology Brands segment. Gross profit as a percentage of sales on new video game hardware decreased to 9.7% in...

  • Page 60
    ...fiscal 2014 compared to fiscal 2013. Operating earnings in the Video Game Brands segments increased due to the launch of the new consoles, which has driven year-over-year growth in our new video game hardware and video game accessories, as well as continued growth in our pre-owned and value category...

  • Page 61
    ... February 1, 2014 Dollars in millions 53 Weeks Ended February 2, 2013 Dollars in millions $ Change % Net Sales: New video game hardware(1) ...New video game software...Pre-owned and value video game products...Video game accessories...Digital...Mobile and consumer electronics ...Other(2)...Total...

  • Page 62
    ... 1, 2014 Dollars in millions 53 Weeks Ended February 2, 2013 Dollars in millions $ Change % Gross Profit: New video game hardware(1) ...New video game software...Pre-owned and value video game products...Video game accessories...Digital...Mobile and consumer electronics ...Other(2)...Total...

  • Page 63
    ... as a percentage of total net sales and the decrease in gross profit as a percentage of sales on pre-owned and value video game products. This decrease was partially offset by a $33.6 million benefit related to a change in management estimates on the redemption rate in our PowerUp Rewards and other...

  • Page 64
    ... systems, software and accessories (which we refer to as video game products), new and pre-owned mobile devices and related accessories. These products are substantially the same regardless of geographic location, with the primary differences in merchandise carried being the timing of the release...

  • Page 65
    ... to Fiscal 2013 Video Game Brands United States Segment results for Video Game Brands in the United States include retail GameStop operations in 50 states, the District of Columbia, Puerto Rico and Guam, the electronic commerce website www.gamestop.com, Game Informer magazine and Kongregate, our...

  • Page 66
    ...2013 Compared to Fiscal 2012 Video Game Brands United States Segment results for the United States Video Game Brands segment include retail operations in 50 states, the District of Columbia, Puerto Rico and Guam, the electronic commerce website www.gamestop.com, Game Informer magazine and Kongregate...

  • Page 67
    ... primarily to open 109 Video Game Brands stores in the U.S. and internationally and to invest in information systems and digital initiatives. During fiscal 2013, we also used $77.4 million of cash primarily for the acquisition of Spring Mobile and Simply Mac. During fiscal 2012, we used $139...

  • Page 68
    ... $150 million to $200 million, subject to certain conditions; and revised certain other terms, including a reduction of the fee we are required to pay on the unused portion of the total commitment amount. We believe the extension of the maturity date of the Revolver to March 2019 helps to limit our...

  • Page 69
    ... of our Technology Brands businesses, distribution and information systems and other digital initiatives in support of our operations and new store openings and store remodels. We used cash to expand our operations through acquisitions. During fiscal 2014, fiscal 2013 and fiscal 2012, we used $89...

  • Page 70
    ... related to unrecognized tax benefits would be partially offset by reductions in payments in other jurisdictions. See Note 13, "Income Taxes," to our consolidated financial statements for further information regarding our uncertain tax positions. We lease retail stores, warehouse facilities, office...

  • Page 71
    ... covered by this report, our management conducted an evaluation, under the supervision and with the participation of our principal executive officer and principal financial officer, of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) at the...

  • Page 72
    ...disclose material information otherwise required to be set forth in our periodic reports. Management's Annual Report on Internal Control Over Financial Reporting Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined...

  • Page 73
    ... or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements. Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper management...

  • Page 74
    Item 9B. None. Other Information 55

  • Page 75
    ... of the executive officers listed in the paragraph above, on our website (www.gamestop.com) within four business days following such amendment or waiver. Item 11. Item 12. Item 13. Item 14. Executive Compensation* Security Ownership of Certain Beneficial Owners and Management and Related Stockholder...

  • Page 76
    ... as part of this Form 10-K. (2) Financial Statement Schedules required to be filed by Item 8 of this Form 10-K: The following financial statement schedule for the 52 weeks ended January 31, 2015, 52 weeks ended February 1, 2014 and the 53 weeks ended February 2, 2013 is filed as part of this Form 10...

  • Page 77
    ... Chief Executive Officer and Director Date: March 30, 2015 Pursuant to the requirements of the Securities Exchange Act of 1934, this Form 10-K has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. Name Capacity Date /s/ J. PAUL...

  • Page 78
    INDEX TO CONSOLIDATED FINANCIAL STATEMENTS Page GameStop Corp. Consolidated Financial Statements: Reports of Independent Registered Public Accounting Firms Consolidated Financial Statements: Consolidated Balance Sheets Consolidated Statements of Operations Consolidated Statements of Comprehensive ...

  • Page 79
    ... of GameStop Corp. Grapevine, Texas We have audited the accompanying consolidated balance sheets of GameStop Corp. and subsidiaries (the "Company") as of January 31, 2015 and February 1, 2014, and the related consolidated statements of operations, comprehensive income, stockholders' equity, and cash...

  • Page 80
    ... of GameStop Corp. Grapevine, Texas We have audited the accompanying consolidated statements of operations and comprehensive income (loss), stockholders' equity, and cash flows of GameStop Corp. for the 53 week period ended February 2, 2013. In connection with our audit of the financial statements...

  • Page 81
    ...Class A common stock - $.001 par value; authorized 300.0 shares; 107.7 and 115.3 shares issued, 107.7 and 115.3 shares outstanding, respectively ...Additional paid-in-capital ...Accumulated other comprehensive income (loss) ...Retained earnings ...Total stockholders' equity...Total liabilities and...

  • Page 82
    GAMESTOP CORP. CONSOLIDATED STATEMENTS OF OPERATIONS 52 Weeks Ended January 31, 2015 52 Weeks Ended February 1, 2014 53 Weeks Ended February 2, 2013 (In millions, except per share data) Net sales ...$ Cost of sales ...Gross profit ...Selling, general and administrative expenses ...Depreciation and...

  • Page 83
    GAMESTOP CORP. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) 52 Weeks Ended January 31, 2015 52 Weeks Ended February 1, 2014 (In millions) 53 Weeks Ended February 2, 2013 Net income (loss) ...Other comprehensive loss: Foreign currency translation adjustments ...Total comprehensive income (...

  • Page 84
    ...) (In millions) Retained Earnings Noncontrolling Interest Total Balance at January 29, 2012...Purchase of subsidiary shares from noncontrolling interest...Net loss for the 53 weeks ended February 2, 2013 ...Foreign currency translation...Dividends(1) ...Stock-based compensation ...Repurchases of...

  • Page 85
    GAMESTOP CORP. CONSOLIDATED STATEMENTS OF CASH FLOWS 52 Weeks Ended January 31, 2015 52 Weeks Ended February 1, 2014 (In millions) 53 Weeks Ended February 2, 2013 Cash flows from operating activities: Net income (loss)...Adjustments to reconcile net income (loss) to net cash flows provided by ...

  • Page 86
    ....kongregate.com, a leading browser-based game site; Game Informer magazine, the world's leading print and digital video game publication; and iOS and Android mobile applications. We also own and operate Spring Mobile, an authorized AT&T reseller operating AT&T branded wireless retail stores and pre...

  • Page 87
    ... pre-owned video game products are recorded at the retail price charged to the customer. Advertising revenues for Game Informer are recorded upon release of magazines for sale to consumers. Subscription revenues for our PowerUp Rewards loyalty program and magazines are recognized on a straight-line...

  • Page 88
    ...fees associated with purchases made by check and credit cards in cost of sales, rather than selling, general and administrative expenses, in the consolidated statements of operations. For the 52 weeks ended January 31, 2015, the 52 weeks ended February 1, 2014 and the 53 weeks ended February 2, 2013...

  • Page 89
    ... to assist in the convergence of U.S. GAAP and International Financial Reporting Standards ("IFRS"), the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09 related to revenue recognition. The new guidance sets forth a new five-step revenue recognition...

  • Page 90
    ... in the statement of financial position and to separately present certain information related to the operating and investing cash flows of the discontinued operation, for all comparative periods, in the statement of cash flows. The ASU is effective for us beginning in the first quarter of our...

  • Page 91
    ... 2014 Technology Brands. During the 52 weeks ended January 31, 2015, in connection with the continued expansion of our Technology Brands business, Spring Mobile completed acquisitions of certain AT&T resellers and Simply Mac completed acquisitions of certain authorized Apple retailers for total...

  • Page 92
    ...the values of assets acquired and liabilities assumed in this acquisition. The operating results of Simply Mac and Spring Mobile have been included in our consolidated financial statements beginning on the respective closing dates of each acquisition and are reported in our Technology Brands segment...

  • Page 93
    ... stock method. Potentially dilutive securities are excluded from the computations of diluted earnings per share if their effect would be antidilutive. A reconciliation of shares used in calculating basic and diluted net income (loss) per common share is as follows: 52 Weeks Ended January 31, 2015...

  • Page 94
    ... 2.5 We do not use derivative financial instruments for trading or speculative purposes. We are exposed to counterparty credit risk on all of our derivative financial instruments and cash equivalent investments. We manage counterparty risk according to the guidelines and controls established under...

  • Page 95
    ...recorded within operating earnings in our consolidated statements of operations. The fair value measurements included in the goodwill, trade name and property and equipment impairments were primarily based on significant unobservable inputs (Level 3) developed using company-specific information. See...

  • Page 96
    ... of operations within each segment, including the nature of products, product distribution and the type of customer and separate management within these businesses. We estimate the fair value of each reporting unit based on the discounted cash flows of each reporting unit. We use a two...

  • Page 97
    ... who pay to place ads on our digital websites and are amortized on a straight-line basis over 10 years. Favorable leasehold interests represent the value of the contractual monthly rental payments that are less than the current market rent at stores acquired as part of the Micromania acquisition...

  • Page 98
    ...'s weighted-average cost of capital, current market rates and the risks associated with the projected cash flows. We completed the annual impairment tests of indefinite-lived intangible assets as of the first day of the fourth quarter of fiscal 2014 and fiscal 2013 and concluded that none of our...

  • Page 99
    ... $150 million to $200 million, subject to certain conditions; and revised certain other terms, including a reduction of the fee we are required to pay on the unused portion of the total commitment amount. We believe the extension of the maturity date of the Revolver to March 2019 helps to limit our...

  • Page 100
    ... of credit to support operations. As of January 31, 2015, there were no cash overdrafts outstanding under the Line of Credit and bank guarantees outstanding totaled $2.9 million. Notes Payable In connection with our acquisition of Spring Mobile, we assumed a promissory note that Spring Mobile had...

  • Page 101
    ...to international store leases totaling $16.6 million as of January 31, 2015 and $18.7 million as of February 1, 2014. See Note 11, "Leases," for information regarding commitments related to our noncancelable operating leases. Contingencies In the ordinary course of our business, we are, from time to...

  • Page 102
    ...) computed at the U.S. Federal statutory tax rate to income tax expense (benefit) reported in our consolidated statements of operations: 52 Weeks Ended January 31, 2015 52 Weeks Ended February 1, 2014 53 Weeks Ended February 2, 2013 Federal statutory tax rate...State income taxes, net of federal...

  • Page 103
    ...income tax expense in the fiscal years ended January 31, 2015, February 1, 2014 and February 2, 2013, respectively. If we were to prevail on all uncertain tax positions, the reversal of these accruals would also be a benefit to our effective tax rate. It is reasonably possible that the amount of the...

  • Page 104
    ... earnings. The following table summarizes our share repurchase activity during the 52 weeks ended January 31, 2015, the 52 weeks ended February 1, 2014 and the 53 weeks ended February 2, 2013: Total Number of Shares Purchased (in millions) Average Price Paid per Share Aggregate Value of Shares...

  • Page 105
    ... benefits are presented as a use of cash in the operating section and a source of cash in the financing section of the consolidated statements of cash flows. A summary of our stock option activity during the 52 weeks ended January 31, 2015 is presented below: WeightedAverage Exercise Price Shares...

  • Page 106
    ... per common share with fair value being determined by the quoted market price of our common stock on the date of grant. Of these shares, 916 thousand shares of restricted stock were granted under the 2011 Incentive Plan, which vest in equal annual installments over three years. At the same time, an...

  • Page 107
    ... commerce website www.gamestop.com; Game Informer magazine; and Kongregate, our leading web and mobile gaming platform. Segment results for Canada include retail and e-commerce operations in Canada and segment results for Australia include retail and e-commerce operations in Australia and New...

  • Page 108
    ..., management fees, intersegment loans and related interest. There were no intersegment sales during the 52 weeks ended January 31, 2015, the 52 weeks ended February 1, 2014 or the 53 weeks ended February 2, 2013. Information on segments and the reconciliation of segment profit to earnings (loss...

  • Page 109
    ... Year Ended January 31, 2015 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter (1) 1st Quarter Fiscal Year Ended February 1, 2014 2nd Quarter 3rd Quarter 4th Quarter (1) (Amounts in millions, except per share amounts) Net sales ...$ 1,996.3 Gross profit...626.4 Operating earnings ...105.9 Net income...

  • Page 110
    ... the fiscal quarter ended August 3, 2013 Quarterly Report on Form 10-Q for the fiscal quarter ended August 3, 2013 Registration Statement on Form S-3ASR Current Report on Form 8-K September 11, 2013 3.2 September 11, 2013 4.1 4.2 Form of Indenture. Indenture, dated as of September 24, 2014, by...

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    ... 10, 2013, between GameStop Corp. and Robert A. Lloyd. Executive Employment Agreement, dated as of May 10, 2013, between GameStop Corp. and Michael K. Mauler. Executive Employment Agreement, dated as of May 10, 2013, between GameStop Corp. and Michael P. Hogan. Retirement Policy. Guaranty, dated as...

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    ...Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Certification of Chief Executive Officer pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934...

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    ....522.6645 www.computerjhare.com Listed on the New York Stock Exchange Symbol: GME Legal Counsel Pepper Hamilton, LLP Philadelphia, PA FPO GameStop, EB Gamej, Electronicj Boutique, Game Informer magazine, Micromania, Kongregate, Spring Mobile, Simply Mac, PowerUp Rewardj, and "Power to the Playerj...

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    Corporate Office / 625 Wejtport Parkway / Grapevine, TX 76051 / 817.424.2000 / www.GameStop.com