GameStop 2014 Annual Report Download - page 100

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Our maximum borrowings outstanding during fiscal 2014 were $255.0 million. Average borrowings under the Revolver for fiscal
2014 were $71.2 million. Our average interest rate on those outstanding borrowings for fiscal 2014 was 1.8%. As of January 31,
2015, total availability under the Revolver was $391.6 million, with no outstanding borrowings and outstanding standby letters
of credit of $8.3 million. We arecurrently in compliance with therequirements of theRevolver.
In September 2007, our Luxembourgsubsidiary entered into adiscretionary $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 abankoverdraft
facility for short-term liquidity needs and for the issuance of bank guarantees and letters 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 apromissorynotethatSpringMobile had previously
entered into related to its prior purchase of certain wireless stores. Additionally,infiscal 2014 we assumed apromissorynote
previously entered into by one of the Spring Mobile acquirees. The carrying value of these notes at January 31, 2015 was $5.7
million, of which $5.1 million is classified as acurrent liability and is included in notes payable and $0.6 million is classified as
along-term liability and is includedinlong-term debt in theconsolidated balance sheets.
GAMESTOP CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F-23
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 astraight-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 astraight-
line basis as areduction 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 apartofdeferred 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
January 31, 2015
52 Weeks Ended
February 1, 2014
53 Weeks Ended
February 2, 2013
(In millions)
Minimum.................................................................................... $391.4 $381.6 $385.4
Percentage rentals....................................................................... 8.29.4 9.3
$399.6 $391.0 $394.7
Future minimum annual rentals, excluding percentage rentals, required under leases that had initial, noncancelable lease
terms greater than one year,asofJanuary 31, 2015, areapproximately:
Fiscal Year Ending on or around January 31, Amount
(In millions)
2016............................................................................................................................................................ $361.9
2017............................................................................................................................................................ 261.6
2018............................................................................................................................................................ 175.2
2019............................................................................................................................................................ 115.1
2020............................................................................................................................................................ 67.4
Thereafter................................................................................................................................................... 104.3
$1,085.5