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GameStop Corp. – ‘10-K’ for 1/30/10 – ‘XML.R9’

On:  Tuesday, 3/30/10, at 5:30pm ET   ·   For:  1/30/10   ·   Accession #:  950123-10-30164   ·   File #:  1-32637

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  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

 3/30/10  GameStop Corp.                    10-K        1/30/10   47:5.2M                                   Donnelley … Solutions/FA

Annual Report   —   Form 10-K   —   Sect. 13 / 15(d) – SEA’34
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 10-K        Annual Report                                       HTML   1.25M 
 3: EX-14.2     Code of Ethics                                      HTML     75K 
 4: EX-21.1     Subsidiaries List                                   HTML     17K 
 5: EX-23.1     Consent of Experts or Counsel                       HTML     15K 
 2: EX-12.1     Statement re: Computation of Ratios                 HTML     24K 
 6: EX-31.1     Certification -- §302 - SOA'02                      HTML     20K 
 7: EX-31.2     Certification -- §302 - SOA'02                      HTML     20K 
 8: EX-32.1     Certification -- §906 - SOA'02                      HTML     17K 
 9: EX-32.2     Certification -- §906 - SOA'02                      HTML     17K 
37: XML         IDEA XML File -- Definitions and References          XML     90K 
43: XML         IDEA XML File -- Filing Summary                      XML     75K 
41: XML.R1      Document and Entity Information                      XML    159K 
42: XML.R2      Consolidated Balance Sheets                          XML    382K 
24: XML.R3      Consolidated Balance Sheets (Parenthetical)          XML     83K 
29: XML.R4      Consolidated Statements of Operations                XML    244K 
35: XML.R5      Consolidated Statements of Changes in Stockholders   XML    626K 
                Equity                                                           
34: XML.R6      Consolidated Statements of Changes in Stockholders   XML     79K 
                Equity (Parenthetical)                                           
46: XML.R7      Consolidated Statements of Cash Flows                XML    441K 
20: XML.R8      Summary of Significant Accounting Policies           XML     90K 
33: XML.R9      Acquisitions                                         XML     52K 
19: XML.R10     Vendor Arrangements                                  XML     38K 
18: XML.R11     Computation of Net Income per Common Share           XML     61K 
23: XML.R12     Fair Value Measurements and Financial Instruments    XML     65K 
39: XML.R13     Receivables, Net                                     XML     44K 
25: XML.R14     Accrued Liabilities                                  XML     47K 
26: XML.R15     Goodwill, Intangible Assets and Deferred Financing   XML     86K 
                Fees                                                             
31: XML.R16     Debt                                                 XML     53K 
47: XML.R17     Leases                                               XML     54K 
22: XML.R18     Commitments and Contingencies                        XML     40K 
16: XML.R19     Income Taxes                                         XML    121K 
28: XML.R20     Stock Incentive Plan                                 XML     99K 
38: XML.R21     Employees Defined Contribution Plan                  XML     36K 
21: XML.R22     Certain Relationships and Related Transactions       XML     40K 
36: XML.R23     Significant Products                                 XML     84K 
27: XML.R24     Segment Information                                  XML    113K 
45: XML.R25     Supplemental Cash Flow Information                   XML     57K 
40: XML.R26     Shareholders Equity                                  XML     46K 
30: XML.R27     Consolidating Financial Statements                   XML    516K 
32: XML.R28     Unaudited Quarterly Financial Information            XML     63K 
17: XML.R29     Valuation and Qualifying Accounts                    XML     53K 
44: EXCEL       IDEA Workbook of Financial Reports (.xls)            XLS    156K 
10: EX-101.INS  XBRL Instance -- gme-20100130                        XML   1.31M 
12: EX-101.CAL  XBRL Calculations -- gme-20100130_cal                XML    131K 
15: EX-101.DEF  XBRL Definitions -- gme-20100130_def                 XML     52K 
13: EX-101.LAB  XBRL Labels -- gme-20100130_lab                      XML    450K 
14: EX-101.PRE  XBRL Presentations -- gme-20100130_pre               XML    255K 
11: EX-101.SCH  XBRL Schema -- gme-20100130                          XSD     63K 


‘XML.R9’   —   Acquisitions


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<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <!-- Begin Block Tagged Note 2 - us-gaap:BusinessCombinationDisclosureTextBlock--> <div style="margin-left: 0%"> <div style="margin-top: 12pt; font-size: 1pt">  </div> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff; text-align: left"> <tr> <td width="3%"></td> <td width="97%"></td> </tr> <tr valign="top"> <td> <b><font style="font-family: 'Times New Roman', Times">2.  </font></b> </td> <td> <b><font style="font-family: 'Times New Roman', Times">Acquisitions</font></b> </td> </tr> </table> <div style="margin-top: 6pt; font-size: 1pt">  </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> On November 17, 2008, GameStop France SAS, a wholly-owned subsidiary of the Company, completed the acquisition of substantially all of the outstanding capital stock of Micromania for $580,407, net of cash acquired. Micromania is a leading retailer of video and computer games in France with 368 locations, 328 of which were operating upon acquisition. The Company funded the transaction with cash on hand, funds drawn against its existing $400,000 credit agreement (the “Revolver”) totaling $275,000, and term loans totaling $150,000 under a junior term loan facility (the “Term Loans”). As of January 31, 2009, all of the borrowings against the Revolver and the Term Loans have been repaid. The purpose of the acquisition was to expand the Company’s presence in Europe. The impact of the acquisition on the Company’s results of operations, as if the acquisition had been completed as of the beginning of the periods presented, is not significant. </div> <!-- XBRL Pagebreak Begin --> </div> <!-- END PAGE WIDTH --> <!-- PAGEBREAK --> <div style="margin-left: 0%"> <!-- BEGIN PAGE WIDTH --> <div style="margin-top: 0pt; font-size: 1pt"> </div> <div align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b> <font style="font-family: 'Times New Roman', Times"> </font> </b> </div> <div style="margin-top: 0pt; font-size: 1pt"> </div> <div align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #ffffff"> <b> <font style="font-family: 'Times New Roman', Times"> </font> </b> </div> <!-- XBRL Pagebreak End --> <div style="margin-top: 6pt; font-size: 1pt">  </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The consolidated financial statements include the results of Micromania from the date of acquisition and are reported in the European segment. The purchase price has been allocated based on estimated fair values as of the acquisition date. The purchase price was allocated as follows as of November 17, 2008: </div> <div style="margin-top: 6pt; font-size: 1pt">  </div> <table border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff; text-align: left"> <!-- Table Width Row BEGIN --> <tr style="font-size: 1pt" valign="bottom"> <td width="87%"> </td><!-- colindex=01 type=maindata --> <td width="2%"> </td><!-- colindex=02 type=gutter --> <td width="1%" align="right"> </td><!-- colindex=02 type=lead --> <td width="9%" align="right"> </td><!-- colindex=02 type=body --> <td width="1%" align="left"> </td><!-- colindex=02 type=hang1 --> </tr> <!-- Table Width Row END --> <!-- TableOutputHead --> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom">   </td> <td>   </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>November 17,<br /> </b> </td> <td>   </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom">   </td> <td>   </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <b>2008</b> </td> <td>   </td> </tr> <tr style="font-size: 8pt" valign="bottom" align="center"> <td nowrap="nowrap" align="center" valign="bottom">   </td> <td>   </td> <td colspan="2" nowrap="nowrap" align="center" valign="bottom"> <b>(In thousands)</b> </td> <td>   </td> </tr> <tr style="line-height: 3pt; font-size: 1pt"> <td>  </td> </tr> <!-- TableOutputBody --> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Current assets </div> </td> <td>   </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 187,662 </td> <td nowrap="nowrap" align="left" valign="bottom">   </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Property, plant & equipment </div> </td> <td>   </td> <td nowrap="nowrap" align="left" valign="bottom">   </td> <td nowrap="nowrap" align="right" valign="bottom"> 34,164 </td> <td nowrap="nowrap" align="left" valign="bottom">   </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Goodwill </div> </td> <td>   </td> <td nowrap="nowrap" align="left" valign="bottom">   </td> <td nowrap="nowrap" align="right" valign="bottom"> 415,258 </td> <td nowrap="nowrap" align="left" valign="bottom">   </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Intangible assets: </div> </td> <td>   </td> <td nowrap="nowrap" align="left" valign="bottom">   </td> <td nowrap="nowrap" align="right" valign="bottom">   </td> <td nowrap="nowrap" align="left" valign="bottom">   </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> Tradename </div> </td> <td>   </td> <td nowrap="nowrap" align="left" valign="bottom">   </td> <td nowrap="nowrap" align="right" valign="bottom"> 131,560 </td> <td nowrap="nowrap" align="left" valign="bottom">   </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 20pt"> Leasehold rights and interests </div> </td> <td>   </td> <td nowrap="nowrap" align="left" valign="bottom">   </td> <td nowrap="nowrap" align="right" valign="bottom"> 103,955 </td> <td nowrap="nowrap" align="left" valign="bottom">   </td> </tr> <tr valign="bottom" style="font-size: 1pt"> <td>   </td> <td>   </td> <td style="border-top: 1px solid #000000">   </td> <td style="border-top: 1px solid #000000">   </td> <td>   </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 30pt"> Total intangible assets </div> </td> <td>   </td> <td nowrap="nowrap" align="left" valign="bottom">   </td> <td nowrap="nowrap" align="right" valign="bottom"> 235,515 </td> <td nowrap="nowrap" align="left" valign="bottom">   </td> </tr> <tr valign="bottom"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Other long-term assets </div> </td> <td>   </td> <td nowrap="nowrap" align="left" valign="bottom">   </td> <td nowrap="nowrap" align="right" valign="bottom"> 7,786 </td> <td nowrap="nowrap" align="left" valign="bottom">   </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Current liabilities </div> </td> <td>   </td> <td nowrap="nowrap" align="left" valign="bottom">   </td> <td nowrap="nowrap" align="right" valign="bottom"> (223,171 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom"> <td nowrap="nowrap" align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Long-term liabilities </div> </td> <td>   </td> <td nowrap="nowrap" align="left" valign="bottom">   </td> <td nowrap="nowrap" align="right" valign="bottom"> (76,807 </td> <td nowrap="nowrap" align="left" valign="bottom"> ) </td> </tr> <tr valign="bottom" style="font-size: 1pt"> <td>   </td> <td>   </td> <td style="border-top: 1px solid #000000">   </td> <td style="border-top: 1px solid #000000">   </td> <td>   </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="bottom"> <div style="text-indent: -10pt; margin-left: 10pt"> Total purchase price </div> </td> <td>   </td> <td nowrap="nowrap" align="left" valign="bottom"> $ </td> <td nowrap="nowrap" align="right" valign="bottom"> 580,407 </td> <td nowrap="nowrap" align="left" valign="bottom">   </td> </tr> <tr valign="bottom" style="font-size: 1pt"> <td>   </td> <td>   </td> <td style="border-top: 3px double #000000">   </td> <td style="border-top: 3px double #000000">   </td> <td>   </td> </tr> </table> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> </div> <div style="margin-top: 6pt; font-size: 1pt">  </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> In determining the purchase price allocation, management considered, among other factors, the Company’s intention to use the acquired assets. The total weighted-average amortization period for the intangible assets, excluding goodwill and the Micromania tradename, is approximately ten years. The intangible assets are being amortized based upon the pattern in which the economic benefits of the intangible assets are being utilized, with no expected residual value. None of the goodwill is deductible for income tax purposes. Note 8 provides additional information concerning goodwill and intangible assets. </div> <div style="margin-top: 6pt; font-size: 1pt">  </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> Merger-related expenses totaling $4,593 shown in the fiscal 2008 statements of operations include a net loss related to the change in foreign exchange rates related to the funding of the Micromania acquisition and other costs considered to be of a one-time or short-term nature which are included in operating earnings. </div> <div style="margin-top: 6pt; font-size: 1pt">  </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The acquisition of Micromania is an important part of the Company’s European and overall growth strategy and gives the Company an immediate entrance into the second largest video game market in Europe. The amount the Company paid in excess of the fair value of the net assets acquired was primarily for (i) the expected future cash flows derived from the existing business and its infrastructure, (ii) the geographical benefits from adding stores in a new large, growing market without cannibalizing existing sales, (iii) expanding the Company’s expertise in the European video game market as a whole, and (iv) increasing the Company’s impact on the European market, including increasing the Company’s purchasing power. </div> <div style="margin-top: 6pt; font-size: 1pt">  </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> On April 5, 2008, the Company purchased all the outstanding stock of Free Record Shop Norway AS, a Norwegian private limited liability company (“FRS”), for $21,006, net of cash acquired. FRS operated 49 record stores in Norway, nine of which have been closed as of January 31, 2009. The Company has converted the remaining stores into video game stores with an inventory assortment similar to its other stores in Norway. The acquisition was accounted for using the purchase method of accounting, with the excess of the purchase price over the net assets acquired, in the amount of $17,981, recorded as goodwill. The Company has included the results of operations of FRS, which were not material, in its financial statements beginning on the closing date of the acquisition on April 5, 2008. </div> <div style="margin-top: 6pt; font-size: 1pt">  </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> In 2003, the Company purchased a 51% controlling interest in GameStop Group Limited, which operates stores in Ireland and the United Kingdom. Under the terms of the purchase agreement, the minority interest owners have the ability to require the Company to purchase their remaining shares in incremental percentages at a price to be determined based partially on the Company’s price to earnings ratio and GameStop Group Limited’s earnings. Shares representing approximately 16% were purchased in June 2008 for $27,383 and in July 2009 an additional 16% was purchased for $4,667, bringing the Company’s total interest in GameStop Group Limited to approximately 84%. The Company already consolidates the results of GameStop Group Limited; therefore, any additional amounts acquired will not have a material effect on the Company’s financial statements. </div> <div style="margin-top: 6pt; font-size: 1pt">  </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> On November 4, 2009, the Company purchased a controlling interest in Omac Global Medial Limited, an online video game developer and operator, as part of the Company’s overall digital growth strategy. The acquisition in the amount of $3,790 was accounted for using the acquisition method of accounting, with the excess of the purchase price over the net assets acquired, in the amount of $3,763, recorded as goodwill. </div> <div style="margin-top: 6pt; font-size: 1pt">  </div> <div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #ffffff"> The pro forma effect assuming the above acquisitions were made at the beginning of fiscal 2007 is not material to the Company’s consolidated financial statements. </div> </div>
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<MonetaryRoundingLevel> UnKnown </MonetaryRoundingLevel>
<SharesRoundingLevel> UnKnown </SharesRoundingLevel>
<PerShareRoundingLevel> UnKnown </PerShareRoundingLevel>
<HasPureData> false </HasPureData>
<SharesShouldBeRounded> true </SharesShouldBeRounded>
</InstanceReport>

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Filing Submission 0000950123-10-030164   –   Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)

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