UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 Form 10-Q

 ☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED AUGUSTMAY 1, 20202021

OR
OR
 ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
COMMISSION FILE NO. 1-32637
gme-20210501_g1.jpg
GameStop Corp.
(Exact name of registrant as specified in its charter)
Delaware 20-2733559
(State or other jurisdiction of
incorporation or organization)
gme-20200801_g1.jpg
(I.R.S. Employer
Identification No.)
625 Westport Parkway76051
Grapevine,Texas
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code:
(817) 424-2000

Securities Registered Pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Class A Common StockGMENYSE

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes ☒ No  ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒  No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act:
Large accelerated filer☐Accelerated filer☒Non-accelerated filer☐Smaller reporting company☐Emerging growth company☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes ☐    No ☒
Number of shares of $.001 par value Class A Common Stock outstanding as of September 2, 2020: 65,161,610June 1, 2021: 71,815,131


TABLE OF CONTENTS 
Part I — FINANCIAL INFORMATION
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PART II — OTHER INFORMATION
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PART I — FINANCIAL INFORMATION
ITEM 1.    FINANCIAL STATEMENTS
GAMESTOP CORP.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions, except par value per share)
August 1,
2020		August 3,
2019		February 1,
2020
ASSETS
Current assets:
Cash and cash equivalents$735.1 $424.0 $499.4 
Receivables, net83.1 122.4 141.9 
Merchandise inventories, net474.6 948.9 859.7 
Prepaid expenses and other current assets87.1 143.2 120.9 
Assets held-for-sale0 29.1 11.8 
Total current assets1,379.9 1,667.6 1,633.7 
Property and equipment, net219.7 312.0 275.9 
Operating lease right-of-use assets689.0 769.7 767.0 
Deferred income taxes29.2 157.8 83.0 
Other noncurrent assets57.4 80.8 60.1 
Total assets$2,375.2 $2,987.9 $2,819.7 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$256.4 $368.3 $380.8 
Accrued liabilities and other current liabilities580.7 593.7 617.5 
Current portion of operating lease liabilities218.8 240.3 239.4 
Short-term debt, including current portion of long-term debt, net221.3 0 0 
Borrowings under revolving line of credit35.0 0 0 
Liabilities held-for-sale0 14.5 0 
Total current liabilities1,312.2 1,216.8 1,237.7 
Long-term debt, net215.9 419.1 419.8 
Operating lease liabilities475.5 523.9 529.3 
Other long-term liabilities19.3 18.4 21.4 
Total liabilities2,022.9 2,178.2 2,208.2 
Commitments and contingencies (Note 7)
Stockholders’ equity:
Class A common stock — $.001 par value; 300 shares authorized; 65.2, 90.5 and 64.3 shares issued and outstanding0.1 0.1 0.1 
Additional paid-in capital2.9 0 0 
Accumulated other comprehensive loss(63.9)(75.1)(78.8)
Retained earnings413.2 884.7 690.2 
Total stockholders’ equity352.3 809.7 611.5 
Total liabilities and stockholders’ equity$2,375.2 $2,987.9 $2,819.7 
May 1,
2021		May 2,
2020		January 30,
2021
ASSETS
Current assets:
Cash and cash equivalents$694.7 $570.3 $508.5 
Restricted cash57.4 0 110.0 
Receivables, net102.1 86.7 105.3 
Merchandise inventories570.9 654.7 602.5 
Prepaid expenses and other current assets232.1 99.1 224.9 
Assets held-for-sale0 9.1 0 
Total current assets1,657.2 1,419.9 1,551.2 
Property and equipment, net192.6 256.3 201.2 
Operating lease right-of-use assets654.2 706.2 662.1 
Deferred income taxes0 29.2 0 
Long-term restricted cash18.7 13.6 16.5 
Other noncurrent assets40.0 43.8 41.6 
Total assets$2,562.7 $2,469.0 $2,472.6 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$388.6 $212.1 $341.8 
Accrued liabilities and other current liabilities561.8 506.0 626.8 
Current portion of operating lease liabilities219.4 249.4 227.4 
Short-term debt, including current portion of long-term debt, net48.1 417.2 121.7 
Borrowings under revolving line of credit0 135.0 25.0 
Total current liabilities1,217.9 1,519.7 1,342.7 
Long-term debt, net0 0 216.0 
Operating lease liabilities445.0 493.9 456.7 
Other long-term liabilities20.3 20.4 20.5 
Total liabilities1,683.2 2,034.0 2,035.9 
Commitments and contingencies (Note 7)000
Stockholders’ equity:
Class A common stock — $.001 par value; 300 shares authorized; 69.3, 64.6 and 65.3 shares issued and outstanding, respectively0.1 0.1 0.1 
Additional paid-in capital518.5 1.3 11.0 
Accumulated other comprehensive loss(47.2)(90.9)(49.3)
Retained earnings408.1 524.5 474.9 
Total stockholders’ equity879.5 435.0 436.7 
Total liabilities and stockholders’ equity$2,562.7 $2,469.0 $2,472.6 










See accompanying notes to unaudited condensed consolidated financial statements.
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GAMESTOP CORP.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data)
 13 Weeks Ended26 Weeks Ended
 August 1,
2020		August 3,
2019		August 1,
2020		August 3,
2019
Net sales$942.0 $1,285.7 $1,963.0 $2,833.4 
Cost of sales689.8 886.6 1,428.4 1,963.1 
Gross profit252.2 399.1 534.6 870.3 
Selling, general and administrative expenses348.2 481.9 734.7 935.6 
Goodwill and asset impairments0.9 363.9 4.8 363.9 
Gain on sale of assets(11.3)0 (11.3)0 
Operating loss(85.6)(446.7)(193.6)(429.2)
Interest income(0.4)(2.6)(1.3)(7.9)
Interest expense7.9 9.6 15.5 22.6 
Loss from continuing operations before income taxes(93.1)(453.7)(207.8)(443.9)
Income tax expense (benefit)17.9 (40.1)68.3 (37.8)
Net loss from continuing operations(111.0)(413.6)(276.1)(406.1)
Loss from discontinued operations, net of tax(0.3)(1.7)(0.9)(2.4)
Net loss$(111.3)$(415.3)$(277.0)$(408.5)
Basic loss per share:
Continuing operations$(1.71)$(4.14)$(4.26)$(4.01)
Discontinued operations(0.01)(0.02)(0.01)(0.02)
Basic loss per share$(1.71)$(4.15)$(4.28)$(4.04)
Diluted loss per share:
Continuing operations$(1.71)$(4.14)$(4.26)$(4.01)
Discontinued operations(0.01)(0.02)(0.01)(0.02)
Diluted loss per share$(1.71)$(4.15)$(4.28)$(4.04)
Weighted-average shares outstanding:
Basic65.0 100.0 64.7 101.2 
Diluted65.0 100.0 64.7 101.2 
 13 Weeks Ended
 May 1,
2021		May 2,
2020
Net sales$1,276.8 $1,021.0 
Cost of sales946.7 738.6 
Gross profit330.1 282.4 
Selling, general and administrative expenses370.3 386.5 
Asset impairments0.6 3.9 
Operating loss(40.8)(108.0)
Interest income(0.1)(0.9)
Interest expense24.8 7.6 
Loss from continuing operations before income taxes(65.5)(114.7)
Income tax expense1.3 50.4 
Net loss from continuing operations(66.8)(165.1)
Loss from discontinued operations, net of tax0 (0.6)
Net loss$(66.8)$(165.7)
Basic loss per share:
Continuing operations$(1.01)$(2.56)
Discontinued operations0 (0.01)
Basic loss per share$(1.01)$(2.57)
Diluted loss per share:
Continuing operations$(1.01)$(2.56)
Discontinued operations0 (0.01)
Diluted loss per share$(1.01)$(2.57)
Weighted-average shares outstanding:
Basic66.0 64.5 
Diluted66.0 64.5 


















See accompanying notes to unaudited condensed consolidated financial statements.
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GAMESTOP CORP.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOMELOSS
(in millions)
 13 Weeks Ended26 Weeks Ended
 August 1,
2020		August 3,
2019		August 1,
2020		August 3,
2019
Net loss$(111.3)$(415.3)$(277.0)$(408.5)
Other comprehensive income (loss):
Foreign currency translation adjustment27.0 (6.9)14.9 (20.8)
Total comprehensive loss$(84.3)$(422.2)$(262.1)$(429.3)
 13 Weeks Ended
 May 1,
2021		May 2,
2020
Net loss$(66.8)$(165.7)
Other comprehensive (loss) income:
Foreign currency translation adjustment2.1 (12.1)
Total comprehensive loss$(64.7)$(177.8)
















































See accompanying notes to unaudited condensed consolidated financial statements.
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GAMESTOP CORP.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(in millions, except for per share data)
Class A
Common Stock		Additional
Paid-in
Capital		Accumulated
Other
Comprehensive
(Loss) Income		Retained
Earnings		Total
Stockholders'
Equity		 Class A
Common Stock		Additional
Paid-in
Capital		Accumulated
Other
Comprehensive
(Loss) Income		Retained
Earnings		Total
Stockholders'
Equity
SharesAmount SharesTotal
Stockholders'
Equity
Balance at February 1, 202064.3 $0.1 $0 $(78.8)$690.2 $611.5 
Balance at January 30, 2021Balance at January 30, 202165.3 $0.1 $11.0 $(49.3)$474.9 $436.7 
Net lossNet loss— — — — (165.7)(165.7)Net loss— — — — (66.8)(66.8)
Issuance of common stock, net of costIssuance of common stock, net of cost3.5 — 551.7 — — 551.7 
Foreign currency translationForeign currency translation— — — (12.1)— (12.1)Foreign currency translation— — — 2.1 — 2.1 
Stock-based compensation expenseStock-based compensation expense— — 1.8 — — 1.8 Stock-based compensation expense— — 5.7 — — 5.7 
Settlement of stock-based awardsSettlement of stock-based awards0.3 — (0.5)— — (0.5)Settlement of stock-based awards0.5 — (49.9)— — (49.9)
Balance at May 2, 202064.6 $0.1 $1.3 $(90.9)$524.5 $435.0 
Net loss— — — — (111.3)(111.3)
Foreign currency translation— — — 27.0 — 27.0 
Stock-based compensation expense— — 2.1 — — 2.1 
Settlement of stock-based awards0.6 — (0.5)— — (0.5)
Balance at August 1, 202065.2 $0.1 $2.9 $(63.9)$413.2 $352.3 
Balance at May 1, 2021Balance at May 1, 202169.3 $0.1 $518.5 $(47.2)$408.1 $879.5 

Class A
Common Stock		Additional
Paid-in
Capital		Accumulated
Other
Comprehensive
Loss		Retained
Earnings		Total
Stockholders'
Equity		 Class A
Common Stock		Additional
Paid-in
Capital		Accumulated
Other
Comprehensive
Loss		Retained
Earnings		Total
Stockholders'
Equity
SharesAmount SharesTotal
Stockholders'
Equity
Balance at February 2, 2019102.0 $0.1 $27.7 $(54.3)$1,362.7 $1,336.2 
Net income— — — — 6.8 6.8 
Balance at February 1, 2020Balance at February 1, 202064.3 $0.1 $0 $(78.8)$690.2 $611.5 
Net lossNet loss— — — — (165.7)(165.7)
Foreign currency translationForeign currency translation— — — (13.9)— (13.9)Foreign currency translation— — — (12.1)— (12.1)
Dividends declared, $0.38 per common share— — — — (38.7)(38.7)
Stock-based compensation expenseStock-based compensation expense— — 1.9 — — 1.9 Stock-based compensation expense— — 1.8 — — 1.8 
Settlement of stock-based awardsSettlement of stock-based awards0.3 — (0.6)— — (0.6)Settlement of stock-based awards0.3 — (0.5)— — (0.5)
Balance at May 4, 2019102.3 $0.1 $29.0 $(68.2)$1,330.8 $1,291.7 
Net loss— — — — (415.3)(415.3)
Foreign currency translation— — — (6.9)— (6.9)
Stock-based compensation expense— — 3.3 — — 3.3 
Repurchase of common shares(12.0)— (32.1)— (30.8)(62.9)
Settlement of stock-based awards0.2 — (0.2)— — (0.2)
Balance at August 3, 201990.5 $0.1 $0 $(75.1)$884.7 $809.7 
Balance at May 2, 2020Balance at May 2, 202064.6 $0.1 $1.3 $(90.9)$524.5 $435.0 






















See accompanying notes to unaudited condensed consolidated financial statements.
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GAMESTOP CORP.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
 26 Weeks Ended
 August 1,
2020		August 3,
2019
Cash flows from operating activities:
Net loss$(277.0)$(408.5)
Adjustments to reconcile net loss to net cash flows from operating activities:
Depreciation and amortization (including amounts in cost of sales)41.7 46.2 
Goodwill and asset impairments4.8 363.9 
Stock-based compensation expense3.9 5.2 
Deferred income taxes45.4 (11.8)
(Gain) loss on disposal of property and equipment, net(9.6)0.9 
Other(0.2)3.7 
Changes in operating assets and liabilities:
Receivables, net60.5 8.5 
Merchandise inventories394.2 270.5 
Prepaid expenses and other current assets1.7 (7.4)
Prepaid income taxes and income taxes payable69.8 (76.5)
Accounts payable and accrued liabilities(193.7)(839.4)
Operating lease right-of-use assets and lease liabilities2.8 (2.2)
Changes in other long-term liabilities(0.8)0.2 
Net cash flows provided by (used in) operating activities143.5 (646.7)
Cash flows from investing activities:
Purchase of property and equipment(17.5)(41.2)
Proceeds from sale of property and equipment51.8 0 
Other1.7 (1.0)
Net cash flows provided by (used in) investing activities36.0 (42.2)
Cash flows from financing activities:
Repurchase of common shares0 (62.9)
Proceeds from French term loans23.6 0 
Dividends paid(0.3)(40.5)
Borrowings from the revolver150.0 0 
Repayments of revolver borrowings(115.0)0 
Repayments of senior notes(5.3)(404.5)
Settlement of stock-based awards(1.0)(0.8)
Net cash flows provided by (used in) financing activities52.0 (508.7)
Exchange rate effect on cash and cash equivalents and restricted cash13.6 (5.1)
Increase in cash held-for-sale0 (0.1)
Increase (decrease) in cash and cash equivalents and restricted cash245.1 (1,202.8)
Cash and cash equivalents and restricted cash at beginning of period513.5 1,640.5 
Cash and cash equivalents and restricted cash at end of period$758.6 $437.7 
 13 Weeks Ended
May 1,
2021		May 2,
2020
Cash flows from operating activities:
Net loss$(66.8)$(165.7)
Adjustments to reconcile net loss to net cash flows from operating activities:
Depreciation and amortization (including amounts in cost of sales)18.7 21.5 
Loss (gain) on retirement of debt18.2 (0.7)
Asset impairments0.6 3.9 
Stock-based compensation expense5.7 1.8 
Deferred income taxes0 45.4 
Loss on disposal of property and equipment, net0.4 0.3 
Other, net(0.5)1.2 
Changes in operating assets and liabilities:
Receivables, net3.1 54.4 
Merchandise inventories32.4 196.0 
Prepaid expenses and other current assets(2.9)5.8 
Prepaid income taxes and income taxes payable(1.2)22.3 
Accounts payable and accrued liabilities(11.4)(274.1)
Operating lease right-of-use assets and lease liabilities(15.0)38.8 
Changes in other long-term liabilities(0.1)(0.2)
Net cash flows used in operating activities(18.8)(49.3)
Cash flows from investing activities:
Purchase of property and equipment(14.7)(6.6)
Other0 0.5 
Net cash flows used in investing activities(14.7)(6.1)
Cash flows from financing activities:
Proceeds from issuance of common stock, net of cost551.7 0 
Borrowings from the revolver0 150.0 
Repayments of revolver borrowings(25.0)(15.0)
Payments of senior notes(307.4)(2.3)
Settlement of stock-based awards(49.9)(0.5)
Other(0.1)(0.3)
Net cash flows provided by financing activities169.3 131.9 
Exchange rate effect on cash, cash equivalents and restricted cash0 (6.1)
Increase in cash, cash equivalents and restricted cash135.8 70.4 
Cash, cash equivalents and restricted cash at beginning of period635.0 513.5 
Cash, cash equivalents and restricted cash at end of period$770.8 $583.9 




See accompanying notes to unaudited condensed consolidated financial statements.
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GAMESTOP CORP.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1.    General Information
The Company
GameStop Corp. (“GameStop,” “we,” “us,” “our,” or the “Company”) is a global, multichannel video game, consumer electronicsleading specialty retailer offering games and collectibles retailer. GameStop operates over 5,100 stores across 10 countries. GameStop's consumer product network also includes www.gamestop.comentertainment products through its e-commerce properties and Game Informer® magazine, the world's leading print and digital video game publication.thousands of stores.
GameStop operates its business in 4 geographic segments: United States, Canada, Australia and Europe. The information contained in these unaudited condensed financial statements refers to continuing operations unless otherwise noted.
Basis of Presentation and Consolidation
The unaudited condensed consolidated financial statements include the Company'sour accounts and the accounts of itsour wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The unaudited condensed consolidated financial statements included herein reflect all adjustments (consisting only of normal, recurring adjustments) which are, in the Company'sour opinion, necessary for a fair presentation of the information as of and for the periods presented. These unaudited condensed consolidated interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the instructions to Quarterly Report on Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all disclosures required under GAAP for complete consolidated financial statements.
These unaudited condensed consolidated financial statements should be read in conjunction with the Company'sour annual report on Form 10-K for the 52 weeks ended February 1, 2020,January 30, 2021, as filed with the Securities and Exchange Commission ("SEC") on March 27, 2020,23, 2021, (the “2019“2020 Annual Report on Form 10-K”). Due to the seasonal nature of our business, the results of operations for the 13 weeks ended May 1, 2021 are not indicative of the results to be expected for the 52 weeks ending January 29, 2022 ("fiscal 2021"). Our fiscal year is composed of the 52 or 53 weeks ending on the Saturday closest to the last day of January. Each of our fiscal years ending January 29, 2022 ("fiscal 2021") and January 30, 2021 ("fiscal 2020") consist of 52 weeks. The discussion and analysis of our results of operations refers to continuing operations unless otherwise noted. Our business, like that of many retailers, is seasonal, with the major portion of the net sales realized during the fourth fiscal quarter, which includes the holiday selling season.
UseofEstimates
The preparation of financial statements in conformity with GAAPaccounting principles generally accepted in the United States of America (“GAAP”) requires the Companyus to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. In preparing these financial statements, the Company haswe have made itsour best estimates and judgments of certain amounts included in the financial statements, and changesgiving due consideration to materiality. Changes in the estimates and assumptions that we have used by the Company could have a significant impact on itsour financial results. Actual results could differ from those estimates. Due to the seasonal nature of the Company's business, the results of operations for the 26 weeks ended August 1, 2020 are not indicative of the results to be expected for the 52 weeks ending January 30, 2021 ("fiscal 2020").
Reclassifications
The Company hasWe have made certain classifications in itsour consolidated statements of cash flows in order to conform to the current year presentation. The provision for inventory reservesIn our consolidated balance sheets, restricted cash of $21.5$13.6 million for the 26 weeks ended August 3, 2019as of May 2, 2020 has been reclassified to changes in merchandise inventories. Certain changes in customer liabilities, primarily associated with loyalty point redemptions and gift card breakage, of $11.7 million for the 26 weeks ended August 3, 2019 has also been reclassified from other noncurrent assets to changes in accounts payable and accrued liabilities.
In the Company's consolidated statements of operations, depreciation and amortization of $22.6 million and $45.7 million for the 13 and 26 weeks ended August 3, 2019, respectively, have been reclassified to selling, general and administrative expenseslong-term restricted cash to conform to the current year presentation. Additionally, goodwill impairmentsIn our consolidated statements of $363.9cash flows, gain on retirement of debt of $0.7 million for both the 13 and 26 weeks ended August 3, 2019 have beenMay 2, 2020 was reclassified from other to goodwill and asset impairments to conform to the current year presentation.loss (gain) on retirement of debt.
Significant Accounting Policies
There have been no material changes to the Company'sour significant accounting policies included in Note 1, "Nature of Operations and Summary of Significant Accounting Policies," within its 2019the 2020 Annual Report on Form 10-K.
Restricted Cash
Restricted cash of $23.5$76.1 million, $13.7$13.6 million and $14.1$126.5 million as of AugustMay 1, 2021, May 2, 2020 August 3, 2019 and February 1, 2020,January 30, 2021, respectively, consists primarily of bank deposits serving as collateralthat collateralize our obligations to support landlordvendors and vendor obligations of the Company's foreign subsidiaries and is included in prepaid and other current assets and other noncurrent assets in its unaudited condensed consolidated balance sheets.landlords.
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GAMESTOP CORP.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The following table provides a reconciliation of cash, and cash equivalents and restricted cash in the condensed consolidated balance sheets to total cash, and cash equivalents and restricted cash in the condensed consolidated statements of cash flows (in millions):
August 1,
2020		August 3,
2019		February 1,
2020
Cash and cash equivalents$735.1 $424.0 $499.4 
Restricted cash (included in prepaid expenses and other current assets)11.0 0.4 0.3 
Restricted cash (included in other noncurrent assets)12.5 13.3 13.8 
Total cash and cash equivalents and restricted cash in the statements of cash flows$758.6 $437.7 $513.5 
May 1,
2021		May 2,
2020		January 30,
2021
Cash and cash equivalents$694.7 $570.3 $508.5 
Restricted cash57.4 0 110.0 
Long-term restricted cash18.7 13.6 16.5 
Total cash, cash equivalents and restricted cash in the statements of cash flows$770.8 $583.9 $635.0 
Assets and Liabilities Held-for-Sale
The Company'sOur corporate aircraft was classified as assets held-for-sale as of February 1,May 2, 2020 whichand had an estimated fair value, less costs to sell, of $11.8$9.1 million. The CompanyWe recognized impairment charges of $0.5$2.7 million and $3.2 millionon the corporate aircraft during the 13 and 26 weeks ended August 1,May 2, 2020, respectively, which were partially attributable to recent economic impacts associated with the COVID-19 pandemic. On June 5, 2020, we sold the Company completed the sale of its corporate aircraft withand received net cash proceeds from the sale totaling $8.6 million, net of costs to sell. NaN gain or loss onwas recognized upon the sale ofin the aircraft was recognized.
The assets and liabilities classified as held-for-sale as of August 3, 2019 related to the Company's previously owned Simply Mac business, which was sold to Cool Holdings, Inc. during the thirdsecond quarter in fiscal quarter of 2019. The major classes of assets and liabilities held-for-sale were as follows (in millions):
August 3,
2019
Assets:
Cash and cash equivalents$0.1
Receivables, net1.8
Merchandise inventories, net15.4
Prepaid expenses and other current assets0.6
Property and equipment, net0.8
Operating lease right-of-use assets9.0
Other assets1.4
Total assets held-for-sale$29.1
Liabilities:
Accounts payable$4.0
Accrued and other liabilities1.1
Operating lease liabilities9.4
Total liabilities held-for-sale$14.5
2020.
Property and Equipment, Net
Accumulated depreciation related to the Company'sour property and equipment totaled $1,176.5$1,109.9 million, $1,255.3$1,172.4 million and $1,190.1$1,117.7 million as of AugustMay 1, 2021, May 2, 2020 August 3, 2019 and February 1, 2020,January 30, 2021, respectively.
The CompanyWe periodically reviews itsreview our property and equipment when events or changes in circumstances indicate that its carrying amounts may not be recoverable or its depreciation or amortization periods should be accelerated. The Company assessesWe assess recoverability based on several factors, including itsour intention with respect to itsour stores and those stores’ projected undiscounted cash flows. An impairment loss is recognized for the amount by which the carrying amount of the assets exceeds its fair value, determined based on an estimate of discounted future cash flows. Impairment losses were recorded totaling $0.3 million and $1.0 million during the 13 and 26 weeks ended August 1, 2020, respectively.flows or readily available market information for similar assets. NaN impairment losses were recorded during the 13 and 26 weeks ended August 3, 2019.May 1, 2021. Impairment losses were recorded totaling $0.7 million during the 13 weeks ended May 2, 2020.
At-the-Market Equity Offering
During the 13 weeks ended May 1, 2021, we sold 3,500,000 shares of common stock under our "at-the-market" equity offering program (the "ATM Offering"). We generated $556.7 million in gross proceeds from the ATM Offering and paid fees to the sales agent of $5.0 million. Additionally, we incurred $0.2 million in other administrative fees in connection with the ATM Offering during the 13 weeks ended May 1, 2021 which is included in selling, general and administration expenses on the consolidated statement of operation. We have used, and intend to continue to use, the $551.7 million in net proceeds generated from the ATM Offering for working capital and general corporate purposes, including repayment of indebtedness, funding our transformation initiatives and product category expansion efforts, capital expenditures and the satisfaction of our tax withholding obligations upon the vesting of shares of restricted stock held by our executive officers and other employees.
Discontinued Operations and Dispositions
During the fourth quarter of fiscal 2018, the Company divested of itswe sold our Spring Mobile business. The historic results of Spring Mobile are presented as discontinued operations, which primarily consist of residual wind-down costs for all periods presented. The net
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loss from discontinued operations for the 13 weeks ended August 1,May 2, 2020 and August 3, 2019 consisted of $0.4 million and $2.2$0.8 million in selling, general and administrative expenses respectively and $0.1 million and $0.5$0.2 million in income tax benefit, respectively. The net loss fromThere were no discontinued operations forduring the 26 weeks ended August 1, 2020 and August 3, 2019 consistedfirst fiscal quarter of $1.2 million and $3.0 million in selling, general and administrative expenses, respectively and $0.3 million and $0.6 million in income tax benefit, respectively.
Adoption of New Accounting Pronouncements
In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which was further updated and clarified by the FASB through the issuance of additional related ASUs. This ASU requires financial assets measured at amortized cost to be presented at the net amount to be collected with the recognition of an allowance for credit losses expected to be incurred over an asset's lifetime based on relevant information about past events, current conditions and reasonable and supportable forecasts. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company adopted this new standard, effective February 2, 2020, using the modified-retrospective approach. The adoption of this standard did not have a material impact on the Company's consolidated financial statements.2021.
Recent Accounting Pronouncements
In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This standard is intended to simplify the accounting and disclosure requirements for income taxes by eliminating various exceptions in accounting for income taxes as well as clarifying and amending existing guidance to improve consistency in application of ASC 740. The provisions of ASU 2019-12 are effective for fiscal years beginning after December 15, 2021, with early adoption permitted. The Companyadoption of this standard is currently evaluating thenot expected to result in a material impact that ASU 2019-12 will have on itsour consolidated financial statements.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This standard provides practical expedients for contract modifications with the transition from reference rates, such as LIBOR, that are expected to be discontinued. This guidance is applicable for the Company'sour revolving line of credit, which uses LIBOR as a reference rate. The provisions of ASU 2020-04 are effective as of March 12, 2020 and may be adopted prospectively through December 31, 2022. The Company is currently evaluating the impact that ASU 2020-04 will have on its consolidated financial statements.
2. COVID-19 Impacts
The near-term macroeconomic conditions continue to be adversely impacted by the emergence of a novel coronavirus, identified as COVID-19, which was declared a global pandemic by the World Health Organization in March 2020. In efforts to mitigate the continued spread of the virus, numerous governments in geographies where the Company operates have imposed quarantines, stay-at-home orders, travel restrictions and other similar measures in attempts to limit physical human interaction, often referred to as social distancing. To comply with these measures, the Company temporarily closed stores in Europe, Canada and New Zealand. In the United States, all storefronts were temporarily closed to customers, however, the Company continued to process orders by offering curbside pick-up, ship from store and e-commerce delivery options in many of its stores. These temporary store closures began in late March 2020 and by the end of fiscal June 2020, 98% of the Company's stores globally were open to the public following the implementation of the highest level of health and safety protocols recommended by the federal and local health and governmental authorities. GameStop's store locations in Australia remained opened to the public during the 26 weeks ended August 1, 2020 and were not negatively impacted during this period by the COVID-19 restrictions as the Company's other segments and New Zealand. Subsequent to the second quarter of fiscal 2020, approximately 15% of the Company's stores in Australia were temporarily closed due to an outbreak of COVID-19.
The Company has followed the highest level of health and safety protocols recommended by the federal and local health and governmental authorities and the substantial majority of the Company's stores across the various geographies where it operates were re-opened to the public for the latter portion of the 13 weeks ended August 1, 2020. In addition, many of the Company's stores in the United States continued to offer curbside pick-up, ship from store and e-commerce delivery options during the second quarter of fiscal 2020 while they were open to the public.
Impact on Operating Results and Asset Recoverability
While the gaming industry has not been as severely impacted as certain other consumer businesses, store closures during the stay-at-home orders have adversely impacted the Company's results of operations during the 13 and 26 weeks ended August 1, 2020. As a result, the Company has taken proactive measures to align inventory purchases with demand, reduce discretionary spending and institute temporary pay reductions to partially offset the impact of store closures.
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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
prospectively through December 31, 2022. We are currently evaluating the impact that ASU 2020-04 will have on our consolidated financial statements.
2.    COVID-19 Impacts
Throughout fiscal 2020, we temporarily closed stores or limited store operations at various times across our 4 operating segments. During the 26 weeks ended August 1, 2020,first fiscal quarter of 2021, temporary closures were limited to certain jurisdictions in Europe and Canada. Although certain stores experienced temporary closures during the Company incurred $21.4 millionfirst fiscal quarter of 2021, some of our stores offered and continue to mitigateoffer curbside pick-up. We remain vigilant in our compliance with COVID-19 regulations across our operating regions.
Impact on Operating Results and Asset Recoverability
While the impact ofgaming industry has not been as severely impacted by the COVID-19 pandemic including incremental wage payments to hourly associates to help offset lost wages due toas certain other consumer businesses, store closures enhanced cleaning measures and expanded useduring the stay-at-home orders in certain countries continue to adversely impact our results of personal protective equipment at its stores, shared service centers and distribution centers across all geographies where the Company operates.
The aggregation of these events caused the Company to reassess potential impairments of long-lived assets, primarily consisting of store-level property and equipment and right-of-use assets under existing operating leases. As a result of this asset impairment analysis,operations during the 13 and 26 weeks ended AugustMay 1, 20202021. During the Company recognized impairment chargesfirst fiscal quarter of $0.4 million2021, we continued to evaluate the impact on our assets, including accounts receivable, inventory, and $1.6 million, respectively.long-lived assets. In addition, during the 13 and 26 weeks ended August 1, 2020, the Company recognized impairment charges of $0.5 million and $3.2 million, respectively, for its corporate aircraft, which were partially attributable to the current economic impacts associated with the COVID-19 pandemic. The corporate aircraft was sold during the secondfirst fiscal quarter of fiscal 2020 for $8.6 million, net of costs to sell. See Note 1, "General Information" for further details.
During the first and second quarters of fiscal 2020 the Company2021, we continued to assess the likelihood of realizing the benefits of itsour deferred tax assets. The Company estimates itsWe estimate the realizability of our deferred tax assets using several factors, including the weight of available evidence, which takes into consideration cumulative book losses recognized and projections of future taxable income in certain jurisdictions. While the Company's view of the longer-term operating outlook has not been significantly impacted by COVID-19, its ability to recover these deferred tax assets depends on several factors, including the Company's short and long-term results of operations. As a result of this analysis, there remainswe continue to maintain a full valuation allowance primarily associated with U.S.on all of our net deferred tax assets of $53.0 million as of August 1, 2020. See Note 10, “Income Taxes" for further information.
The Company also evaluated its existing short-term assets, particularly accounts receivable and inventory.
Accounts receivable are mainly comprised of bankcard receivables and vendor allowances. Given the nature of these receivables and the credit worthiness of the applicable payees, the COVID-19 pandemic did not significantly impact the estimates of allowances for doubtful accounts.
Merchandise inventories are carried at the lower of cost or market generally using the average cost method. The Company is required to record valuation adjustments to inventory to reflect potential obsolescence or over-valuation as a result of cost exceeding market. In valuing inventory, the Company considers quantities on hand, recent sales, potential price protections, returns to vendors and other factors. Given the nature of the Company's products and the temporary store closures between March and June 2020, the COVID-19 pandemic did not significantly impact its estimates of inventory valuation.assets.
Liquidity and Other Impacts
As of AugustMay 1, 2020, the Company2021, we had total unrestricted cash on hand of $735.1$694.7 million, $76.1 million of restricted cash and an additional $28.4$99.9 million of available borrowing capacity under its $420 millionour revolving credit facility, which had $35.0 million offacility. On March 15, 2021, we repaid our outstanding borrowings as of August$25.0 million under our revolving credit facility. See Note 6, "Debt," for further information.
During the 13 weeks ended May 1, 2020. The Company's total cash on hand includes $43.2 million proceeds, net of costs to sell and other deductions, from2021, we completed the sale and leaseback of its corporate headquarters, ancillary office space and a nearby refurbishment center in Grapevine, Texas and $8.6 millionATM Offering which generated aggregate net proceeds from the sale of the Company's corporate aircraft.$551.7 million. See Note 1, "General Information," and Note 5, "Leases,"Information" for further information ondetails. Additionally, during the sale13 weeks ended May 1, 2021, we repaid the remaining $73.2 million aggregate principal amount of our outstanding 6.75% unsecured senior notes due in March 2021, (the "2021 Senior Notes") and we completed the voluntary early redemption of the corporate aircraft andremaining $216.4 million balance of our outstanding 10.0% secured senior notes due 2023 ("2023 Senior Notes"). See Note 6, "Debt" for further details.
In light of our efforts to strengthen our balance sheet including the sale and leaseback transactions. As mentioned above, the Company has taken actions to align expenses and inventory levels given the impactspaydown of the current operating environment and has projected itour debt obligations, we project we will have adequate liquidity for the next 12 months and the foreseeable future to maintain normal operations. Additionally, during the second quarter of fiscal 2020, the Company completed an exchange offer for its unsecured senior notes due in March 2021 resulting in the replacement of 52% of such notes for newly issued secured senior notes due in March 2023. See Note 6, "Debt," for further details on the exchange offer and related impacts to scheduled debt maturities.
On March 27, 2020, the U.S. government enacted the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which among other things, provides employer payroll tax credits for wages paid to employees who are unable to work during the COVID-19 pandemic and options to defer the Company's share of Social Security payroll taxes. The Company qualified for the deferral of payroll and other tax payments and, as a result, it has deferred, and continues to defer payroll taxes and other tax payments through the end of the calendar year 2020. The payment of these deferred amounts are required to be made in 2021 and 2022 calendar years. These deferrals are included in accrued liabilities and other current liabilities within the Company's unaudited condensed consolidated balance sheets. In addition, during the second quarter of fiscal 2020, the Company's French subsidiary obtained €20.0 million of unsecured term loans, 90% of which is guaranteed by the French government pursuant to a state guaranteed loan program instituted in connection with the COVID-19 pandemic. See Note 6, "Debt" for further information.
During the 13 and 26 weeks ended August 1, 2020, the Company received $9.1 million of COVID-19-related rent concessions comprised of rent abatements and rent deferrals. The Company applied lease modification guidance to any concession arrangement that extended the term of the lease and substantially altered future cash flows. The Company elected, as permitted by the guidance issued by the FASB during the COVID-19 pandemic, to not use lease modification accounting for all rent concessions including any rent abatements related to leases not subject to an extension of the original terms. For these leases,
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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
which represented most of the leases subject to COVID-19-related rent concessions, the Company reduced rent expense in the later of the month in which the landlord issued the rent concession or the month for which the rent concession related. For rent concessions including a deferral of the lease payment, the liability for these rent amounts will remain on the balance sheet until paid.
The COVID-19 pandemic remains an evolving situation and its impact on the Company'sour business, operating results, cash flows and financial conditions will depend on the geographies impacted by the virus, the ongoing economic effect of the pandemic, the additional economic stimulus programs introduced by governments, and the timing of the post-pandemic economic recovery. Even as the Company continueswe continue to comply with all governmental health and safety requirements for itsour associates and customers while resuming and maintaining substantially full operations, the persistence and potential resurgence of the COVID-19 pandemic may require the Companyus to temporarily close stores again in future periods or introduce modified operating schedules and may impact customer behaviors, including a potential reduction in consumer discretionary spending. These developments could increase asset recovery and valuation risks. Further, the uncertainties in the global economy could impact the financial viability of the Company'sour suppliers, which may interrupt the Company'sour supply chain and require other changes to operations. In light of the foregoing, the extent and duration of the COVID-19 pandemic, and responses of governments, customers, suppliers and other third parties, may materially adversely impact the Company'sour business, financial condition, results of operations and cash flows.
3.    Revenue
At the end of fiscal 2019, the Company revised the categories of its similar products, as presented below, to better align with management's view of the business. Prior periods have been reclassified to conform to the current period presentation. Net sales by significant product category for the periods indicated is as follows (in millions):
13 Weeks Ended26 Weeks Ended
 August 1, 2020August 3, 2019August 1, 2020August 3, 2019
Hardware and accessories (1)
$441.6 $554.9 $954.7 $1,211.4 
Software (2)
386.5 558.3 803.5 1,291.4 
Collectibles113.9 172.5 204.8 330.6 
Total$942.0 $1,285.7 $1,963.0 $2,833.4 
13 Weeks Ended
 May 1,
2021		May 2,
2020
Hardware and accessories (1)
$703.5 $513.1 
Software (2)
397.9 417.0 
Collectibles175.4 90.9 
Total$1,276.8 $1,021.0 

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(1)    Includes sales of new and pre-owned hardware, accessories, hardware bundles in which hardware and digital or physical software are sold together in a single SKU, interactive game figures, strategy guides, mobile and consumer electronics, and the operations of Simply Mac stores, which were sold in September 2019.electronics.
(2)    Includes sales of new and pre-owned video game software, digital software and PC entertainment software.
See Note 9, "Segment Information," for net sales by geographic location.
Performance Obligations
The Company hasWe have arrangements with customers where itsour performance obligations are satisfied over time, which primarily relate to extended warranties and itsour Game Informer® magazine. Revenues do not include sales tax or other taxes collected from customers. The Company expectsWe expect to recognize revenue in future periods for remaining performance obligations it haswe have associated with unredeemed gift cards, trade-in credits, reservation deposits and itsour PowerUp Rewards loyalty program (collectively, "unredeemed customer liabilities"), extended warranties and subscriptions to itsour Game Informer® magazine. These performance obligations are included in accrued liabilities and other current liabilities in our consolidated balance sheets.
Performance obligations associated with unredeemed customer liabilities are primarily satisfied at the time customers redeem gift cards, trade-in credits, customer deposits or loyalty program points for products offered by the Company.that we offer. Unredeemed customer liabilities are generally redeemed within one year of issuance. As of AugustMay 1, 2021 and May 2, 2020, and August 3, 2019, the Company'sour unredeemed customer liabilities totaled $213.0$200.3 million and $250.6$209.7 million, respectively.
The Company offersWe offer extended warranties on certain new and pre-owned video game products with terms generally ranging from 12 to 24 months, depending on the product. Revenues for extended warranties sold are recognized on a straight-line basis over the life of the contract. As of AugustMay 1, 2021 and May 2, 2020, and August 3, 2019, the Company'sour deferred revenue liability related to extended warranties totaled $50.6$81.0 million and $63.3$60.1 million, respectively.
Performance obligations associated with subscriptions to Game Informer® magazine are satisfied when monthly magazines are delivered in print form or made available in digital format. The significant majority of customer subscriptions are for 12 monthly issues. As of AugustMay 1, 2021 and May 2, 2020, and August 3, 2019, the Companywe had deferred revenue of $29.1$41.3 million and $40.6$34.8 million, respectively, associated with our Game Informer® magazine.
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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Significant Judgments and Estimates
The Company accruesWe accrue PowerUp Rewards loyalty points at the estimated retail price per point, net of estimated breakage, which can be redeemed by loyalty program members for products offered by the Company.we offer. The estimated retail price per point is based on the actual historical retail prices of product(s) purchased through the redemption of loyalty points. The Company estimatesWe estimate breakage of loyalty points and unredeemed gift cards based on historical redemption rates.
Contract Balances
The Company'sOur contract liabilities primarily consist of unredeemed customer liabilities and deferred revenues associated with gift cards, extended warranties and subscriptions to Game Informer® magazine. The opening balance, current period changes and ending balance of the Company'sour contract liabilities are as follows (in millions):
August 1, 2020August 3, 2019May 1,
2021		May 2,
2020
Contract liability beginning balanceContract liability beginning balance$339.2 $376.9 Contract liability beginning balance$348.2 $339.2 
Increase to contract liabilities (1)
Increase to contract liabilities (1)
354.1 412.9 
Increase to contract liabilities (1)
208.7 151.5 
Decrease to contract liabilities (2)
Decrease to contract liabilities (2)
(402.0)(432.6)
Decrease to contract liabilities (2)
(234.5)(184.5)
Other adjustments (3)
Other adjustments (3)
1.4 (2.7)
Other adjustments (3)
0.2 (1.6)
Contract liability ending balanceContract liability ending balance$292.7 $354.5 Contract liability ending balance$322.6 $304.6 

(1)    Includes issuances of gift cards, trade-in credits and loyalty points, new reservation deposits, new subscriptions to Game Informer® and extended warranties sold.
(2)    Includes redemptions of gift cards, trade-in credits, loyalty points and customer deposits as well as revenues recognized for Game Informer® and extended warranties. During the 2613 weeks ended AugustMay 1, 2021, there were $23.5 million of gift cards redeemed that were outstanding as of January 30, 2021. During the 13 weeks ended May 2, 2020, there were $30.4$21.2 million of gift cards redeemed that were outstanding as of February 1, 2020. During the 26 weeks ended August 3, 2019, there were $39.8 million of gift cards redeemed that were outstanding as of February 2, 2019.
(3)    Primarily includes foreign currency translation adjustments.
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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
4.    Fair Value Measurements and Financial Instruments
Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Applicable accounting standards require disclosures that categorize assets and liabilities measured at fair value into one of three different levels depending on the observability of the inputs employed in the measurement. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs are observable inputs other than quoted prices included within Level 1 for the asset or liability, either directly or indirectly through market-corroborated inputs. Level 3 inputs are unobservable inputs for the asset or liability reflecting the Company'sour assumptions about pricing by market participants.
Assets and Liabilities that are Measured at Fair Value on a Recurring Basis
Assets and liabilities that are measured at fair value on a recurring basis include the Company'sour foreign currency contracts, Company-owned life insurance policies with a cash surrender value, and certain nonqualified deferred compensation liabilities.
The Company values itsWe value our foreign currency contracts, life insurance policies with cash surrender values and certain nonqualified deferred compensation liabilities based on Level 2 inputs using quotations provided by major market news services, such as Bloomberg, and industry-standard models that consider various assumptions, including quoted forward prices, time value, volatility factors, and contractual prices for the underlying instruments, as well as other relevant economic measures, all of which are observable in active markets. When appropriate, valuations are adjusted to reflect credit considerations, generally based on available market evidence.
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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The Company'sOur assets and liabilities measured at fair value on a recurring basis as of AugustMay 1, 2021, May 2, 2020 August 3, 2019 and February 1, 2020,January 30, 2021, utilize Level 2 inputs and include the following (in millions):
August 1, 2020August 3, 2019February 1, 2020
Assets
Foreign currency contracts(1)
$2.9 $3.2 $1.4 
Company-owned life insurance(2)
3.0 16.3 4.1 
Total assets$5.9 $19.5 $5.5 
Liabilities
Foreign currency contracts(3)
$8.4 $1.6 $0.3 
Nonqualified deferred compensation(3)
1.0 1.2 1.0 
Total liabilities$9.4 $2.8 $1.3 
May 1,
2021		May 2,
2020		January 30, 2021
Assets
Foreign currency contracts(1)
$2.7 $2.4 $2.5 
Company-owned life insurance(2)
2.8 3.6 2.7 
Total assets$5.5 $6.0 $5.2 
Liabilities
Foreign currency contracts(3)
$0.8 $1.1 $2.4 
Nonqualified deferred compensation(3)
0.6 0.9 0.6 
Total liabilities$1.4 $2.0 $3.0 

(1)     Recognized in prepaid expenses and other current assets in the Company'sour unaudited condensed consolidated balance sheets.
(2)    Recognized in other non-current assets in the Company'sour unaudited condensed consolidated balance sheets.
(3)    Recognized in accrued liabilities and other current liabilities in the Company'sour unaudited condensed consolidated balance sheets.
The Company usesWe use forward exchange contracts to manage currency risk primarily related to intercompany loans and third party accounts payable denominated in non-functional currencies. These foreign currency contracts are not designated as hedges and, therefore, changes in the fair values of these derivatives are recognized in earnings, thereby offsetting the current earnings effect of the re-measurement of related intercompany loansbalances denominated in foreign currencies. The total gross notional value of derivatives related to the Company'sour foreign currency contracts was $246.6$239.2 million, $223.7$213.9 million and $144.6$206.9 million as of AugustMay 1, 2021, May 2, 2020 August 3, 2019 and February 1, 2020,January 30, 2021, respectively.
Activity related to the trading of derivative instruments and the offsetting impact of related intercompany loansbalances denominated in foreign currencies recognized in selling, general and administrative expense is as follows (in millions):
 13 Weeks Ended
 May 1,
2021		May 2,
2020
Gains on the changes in fair value of derivative instruments$2.5 $2.4 
Losses on the re-measurement of related intercompany loans and third-party accounts payable denominated in foreign currencies(1.8)(2.1)
Net gains$0.7 $0.3 
 13 Weeks Ended26 Weeks Ended
 August 1,
2020		August 3,
2019		August 1,
2020		August 3,
2019
(Losses) gains on the changes in fair value of derivative instruments$(7.6)$0.4 $(5.2)$2.8 
Gains (losses) on the re-measurement of related intercompany loans denominated in foreign currencies7.3 (0.4)5.2 (2.8)
Net losses$(0.3)$0 $0 $0 
The Company doesWe do not use derivative financial instruments for trading or speculative purposes. The Company isWe are exposed to counterparty credit risk on all of itsour derivative financial instruments and cash equivalent investments. The Company managesWe manage counterparty risk according to the guidelines and controls established under our comprehensive risk management and investment policies. The CompanyWe continuously monitors its
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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
monitor our counterparty credit risk and utilizesutilize a number of different counterparties to minimize itsour exposure to potential defaults. The Company doesWe do not require collateral under derivative or investment agreements.
Assets that are Measured at Fair Value on a Non-recurring Basis
Assets that are measured at fair value on a non-recurring basis relate primarily to property and equipment, operating lease right-of-use ("ROU") assets and other intangible assets, which are remeasured when the estimated fair value is below its carrying value. For these assets, the Company doeswe do not periodically adjust carrying value to fair value; rather, when it determineswe determine that impairment has occurred, the carrying value of the asset is reduced to its fair value.
During the 13 and 26 weeks ended AugustMay 1, 2020, the Company2021, we recognized impairment charges totaling $0.4 million and $1.6$0.6 million associated with store-level ROU assets, to reflect their fair values of 0. For further details regarding these store-level impairments, see Note 2, "COVID-19 Impacts."values. During the 13 and 26 weeks ended August 1,May 2, 2020, the Companywe recognized $1.2 million of impairment charges associated with store-level ROU and property and equipment assets to reflect their fair values. We also recognized $2.7 million of impairment charges of $0.5 million and $3.2 million, respectively, related to itsour corporate aircraft to reflect its fair value of $8.6$9.1 million prior to the saleas of theMay 2, 2020. The corporate aircraft was classified as assets held-for-sale in our unaudited condensed consolidated balance sheet as of May 2, 2020. We sold our corporate aircraft on June 5, 2020.
Other Fair Value Disclosures
The carrying values of the Company'sour cash equivalents, net receivables, net, accounts payable and notes payableshort-term borrowings approximate their fair values due to their short-term maturities.
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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
As of August 1, 2020 the Company's unsecured 6.75% senior notes due in 2021 had a net carrying value of $197.8 million and a fair value of $172.3 million, and its secured 10.00% senior notes due in 2023 had a net carrying value of $215.9 million and a fair value of $194.2 million. The fair values of the Company's senior notes were determined based on observable inputs (Level 2), including quoted market prices obtained through an external pricing source which derives its price valuations from daily marketplace transactions, adjusted to reflect the spreads of benchmark bonds, credit risk and certain other variables.
5.    Leases
The Company conductsWe conduct the substantial majority of itsour business with leased real estate properties, including retail stores, warehousefulfillment and distribution facilities and office space. The CompanyWe also leaseslease certain equipment and vehicles. These are generally leased under noncancelable agreements and include various renewal options for additional periods. These agreements generally provide for minimum, and in some cases, percentage rentals, and require the Companyus to pay insurance, taxes and other maintenance costs. 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. All of the Company'sour lease agreements are classified as operating leases.
Effective February 3, 2019, the Company adopted ASC 842, Leases. Under ASC 842, fixed payments associated with its operating leases are included in operating lease right-of-use ("ROU") assets and both current and noncurrent operating lease liabilities on the balance sheet. The Company determines if an arrangement is considered a lease at inception. ROU assets are recognized on the commencement date based on the present value of future minimum lease payments over the lease term, including reasonably certain renewal options. As the rate implicit in the lease is not readily determinable for most leases, the Company utilizes its incremental borrowing rate ("IBR") to determine the present value of future payments. The incremental borrowing rate represents a significant judgment that is based on an analysis of the Company's credit rating, country risk, corporate bond yields, the effect of collateralization, as well as comparison to its borrowing rates. For real estate leases, the Company does not separate the components of a contract, thus its future payments include minimum rent payments and fixed executory costs. For non-real estate leases, future payments include only fixed minimum rent payments. The Company records the amortization of ROU assets and the accretion of lease liabilities as a single lease cost on a straight-line basis over the lease term, which includes option terms the Company is reasonably certain to exercise. The Company recognizes cash or lease incentives as a reduction to the ROU asset. ROU assets are assessed for impairment in accordance with the Company's long-lived asset impairment policy, which is performed periodically or when events or changes in circumstances indicate that the carrying amount may not be recoverable.

In July of 2020, the Company sold, in separate unrelated transactions, to unaffiliated third parties: i) its corporate headquarters and ancillary office space in Grapevine, Texas for $28.5 million, net of costs to sell and ii) a nearby refurbishment center for $15.2 million, net of costs to sell. The net proceeds from the sale of these assets will be used for general corporate purposes. As a result of these transactions, a gain on sale of assets of $11.3 million was recognized, which is included in the Company's unaudited condensed consolidated statement of operations in gain on sale of assets for the 13 and 26 weeks ended August 1, 2020.
In connection with each of the sales, the Company leased-back from the applicable purchasers its corporate headquarters for an initial term of ten years, and the ancillary office space and refurbishment center for two years. The leaseback agreement for the corporate headquarters contains 3 renewal periods of five years each; the Company recognized only the initial term of the lease as part of its right-of-use asset and lease liability for the corporate headquarters. The other facilities do not contain a renewal option. The annual rent for the corporate headquarters will start at $1.7 million, plus taxes, utilities, management fees and other operating and maintenance expenses and will increase by 2.25% per year. The annual rent for the other facilities will be $1.3 million with no rent escalation, plus taxes, utilities, management fees and other operating and maintenance expenses. These leaseback agreements are accounted for as operating leases.
With respect to the leaseback of the corporate headquarters, the Company agreed to provide a letter of credit to the buyer-lessor within 18 months from the closing date to secure the Company's lease obligation. Given that the purchase price of the corporate headquarters was reduced by $2.8 million to account for the deferred issuance of this letter of credit, as of August 1, 2020 the Company recognized a contract asset for the same amount within “prepaid expenses and other current assets” representing the variable consideration on the purchase price. Upon delivering the letter of credit, the Company will be entitled to a rent credit of an equivalent amount. This variable consideration is included in the total gain on sale of assets recognized during the second quarter of 2020.
Subsequent to the 26 weeks ended August 1, 2020, we sold and leased-back the Company's Australian and Canadian headquarters. See Note 11, "Subsequent Events," for further information.
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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Rent expense under operating leases was as follows (in millions):
13 Weeks Ended26 Weeks Ended
August 1,
2020		August 3,
2019		August 1,
2020		August 3,
2019
Operating lease cost$78.9 $85.0 $160.3 $171.2 
Variable lease cost (1)
19.2 24.8 40.1 49.1 
Total rent expense$98.1 $109.8 $200.4 $220.3 
13 Weeks Ended
May 1,
2021		May 2,
2020
Operating lease cost$74.9 $81.4 
Variable lease cost (1)
17.5 20.9 
Total rent expense$92.4 $102.3 

(1)    Variable lease cost primarily includes percentage rentals and variable executory costs.
During the 26 weeks ended August 1, 2020 and August 3, 2019, the Company had cash outflows of $101.8 million and $150.6 million, respectively, associated with operating leases. Refer to Note 2, "COVID-19 Impacts" as it pertains to impacts of rent obligations due to COVID-19. The Company recognized $34.5 million and $84.7 million during the 26 weeks ended August 1, 2020 and August 3, 2019, respectively, of ROU assets that were obtained in exchange for operating lease obligations. During the 13 and 26 weeks ended August 1, 2020, $0.1 million and $0.6 million, respectively, of store-level ROU asset impairment charges were recognized. The Company did not record any impairment charges related to ROU assets during the 13 and 26 weeks ended August 3, 2019.
The weighted-average remaining lease term, which includes reasonably certain renewal options, and the weighted-average discount rate for operating leases included in the measurement of the Company's lease liabilities, as of August 1, 2020, August 3, 2019, and February 1, 2020, were as follows:
August 1, 2020August 3, 2019February 1, 2020
Weighted-average remaining lease term (years)(1)
4.64.54.7
Weighted-average discount rate4.5 %4.5 %4.1 %

(1) The weighted-average remaining lease term is weighted based on the lease liability balance for each lease as of August 1, 2020, August 3, 2019 and February 1, 2020. This weighted average calculation differs from the Company's simple average remaining lease term due to the inclusion of reasonably certain renewal options and the effect of the lease liability value of longer term leases.
Expected lease payments associated with the Company's operating lease liabilities, excluding percentage rentals, as of August 1, 2020, are as follows (in millions):
Period
Operating Leases (1)
Remainder of Fiscal Year 2020, as of August 1, 2020$137.5
Fiscal Year 2021201.2
Fiscal Year 2022139.6
Fiscal Year 202399.2
Fiscal Year 202470.5
Thereafter120.5
Total remaining lease payments768.5
Less: Interest(74.2)
Present value of lease liabilities (2)
$694.3

(1) Operating lease payments exclude legally binding lease payments for leases signed but not yet commenced.
(2) The present value of lease liabilities consist of $218.8 million classified as current portion of operating lease liabilities and $475.5 million classified as long-term operating lease liabilities.

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
6.    Debt
The carrying value of the Company'sour debt is comprised as follows (in millions):
August 1, 2020August 3, 2019February 1, 2020
Revolving credit facility due November 2022$35.0 $0 $0 
French term loans due June 202123.5 0 0 
2021 Senior Notes principal amount198.2 421.4 421.4 
2023 Senior Notes principal amount216.4 0 0 
Less: Senior Notes unamortized debt financing costs(0.9)(2.3)(1.6)
Total debt, net(1)
$472.2 $419.1 $419.8 
Less: short-term debt and current portion of long-term debt(2)
(256.3)0 0 
Long-term debt, net$215.9 $419.1 $419.8 
May 1,
2021		May 2,
2020		January 30, 2021
Revolving credit facility due 2022$0 $135.0 $25.0 
French term loans due 2021(1)
48.1 0 48.6 
2021 Senior Notes principal amount0 418.4 73.2 
2023 Senior Notes principal amount0 0 216.4 
Less: Senior Notes unamortized debt financing costs0 (1.2)(0.5)
Total debt, net$48.1 $552.2 $362.7 
Less: short-term debt and current portion of long-term debt(2)
(48.1)(552.2)(146.7)
Long-term debt, net$0 $0 $216.0 

(1)    The Company's subsidiary Micromania SAS obtained an unsecured credit facility during the second quarter of fiscal 2020, which was undrawn and had 0 outstanding borrowings under the facility as of August 1, 2020.
(2) Includes the revolving credit facility due November 2022, the FrenchThese term loans due June 2021, and the current portion of the 2021 Senior Notes, net of the associated unamortized debt financing costs.
Senior Notes
2023 Senior Notes. On June 5, 2020, the Company launched an offerare government subsidized low interest loans that may be extended, subject to exchange (the “Exchange Offer”) any and all of its then outstanding $414.6 million aggregate principal amount of its 6.75% senior notes due March 15, 2021 (the "2021 Senior Notes") by eligible holdersspecified conditions, for up to $414.6 million of newly issued secured senior notes due 2023 (the “2023 Senior Notes”). On July 6, 2020, in connection with the settlement of the Exchange Offer, the Company issued $216.4 million aggregate principal amount of the 2023 Senior Notes, which bear interestfive additional years at a rate of 10.00% per annum, payable semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2020. The 2023 Senior Notes will mature on March 15, 2023. The Company incurred fees and expenses related to the Exchange Offer of $7.4 million, primarily consisting of bank and legal fees, which are included in selling, general and administrative expenses in the Company's condensed consolidated statements of operations for the 13 and 26 weeks ended August 1, 2020. Additionally, approximately 52% or $0.5 million of the unamortized deferred financing costs associated with the outstanding 2021 Senior Notes will be amortized over the term of the 2023 Senior Notes.
The 2023 Senior Notes are redeemable at the Company's option in whole or in part prior to March 15, 2022 at a price equal to 100.0% of the principal amount plus a “make-whole premium,” together with accrued and unpaid interest. On or after March 15, 2022, the 2023 Senior Notes will be redeemable, in whole or in part, at a redemption price equal to 100.0% of the principal amount plus accrued and unpaid interest, if any, up to but not including the applicable redemption date. In addition, at any time on or prior to March 15, 2022, the Company may, subject to certain limitations, redeem up to 35.0% of the aggregate principal amount of the 2023 Senior Notes at a redemption price equal to 110.0% of the aggregate principal amount thereof, plus accrued and unpaid interest, if any, up to but not including the applicable redemption date, with the net cash proceeds of certain equity offerings. If the Company or its restricted subsidiaries sell assets, under certain circumstances, it will be required to use the net proceeds to make an offer to repurchase 2023 Senior Notes at an offer price in cash in an amount equal to 100.0% of the principal amount plus accrued and unpaid interest, if any, up to but not including the repurchase date. Upon a Change of Control (as defined in the indenture governing the 2023 Senior Notes), the Company must offer to purchase the 2023 Senior Notes at a purchase price equal to 101.0% of the principal amount, plus accrued and unpaid interest, if any, up to but not including the date of such repurchase.
The Company's obligations under the 2023 Senior Notes are fully and unconditionally guaranteed on a senior secured basis by each of its existing and future domestic subsidiaries that guarantee certain of the Company's indebtedness or indebtedness of guarantors, including indebtedness under the Company's asset-based revolving credit facility. The 2023 Senior Notes and the related guarantees are secured by first-priority liens on most of the Company's and the guarantors’ assets other than certain Excluded Property and ABL Priority Collateral (each as defined in the indenture governing the 2023 Senior Notes), and by second-priority liens on the ABL Priority Collateral (which generally includes most of the Company's and the guarantors’ credit card receivables, accounts receivable, payment intangibles, inventory, pledged deposit accounts and related assets), in each case, subject to certain exceptions and permitted liens.
The indenture governing the 2023 Senior Notes contains covenants that restrict the Company's ability and that of its restricted subsidiaries to incur, assume or permit to exist additional indebtedness or guaranty obligations; declare or pay dividends or redeem or repurchase capital stock; prepay, redeem or purchase certain subordinated indebtedness; issue certain preferred stock or similar equity securities; make loans and certain investments; sell assets; incur liens; engage in transactions with affiliates; enter into agreements restricting the ability of subsidiaries to pay dividends; and engage in mergers, acquisitions and
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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
other business combinations. If the 2023 Senior Notes are assigned investment grade ratings and no default or event of default has occurred and is continuing, certain of these covenants will be suspended. The 2023 Senior Notes indenture also contains certain affirmative covenants and events of default.
The 2023 Senior Notes have not been registered under the Securities Act of 1933, as amended (the "Securities Act") or the securities laws of any state and may not be offered or sold in the United States absent registration or an exemption from the registration requirements of the Securities Act and applicable state securities laws.
2021 Senior Notes. In March 2016, the Company issued $475.0 million aggregate principal amount of unsecured 6.75% senior notes due March 15, 2021 (the "2021 Senior Notes"). The 2021 Senior Notes bear interest at the rate of 6.75% per annum with interest payable semi-annually in arrears on March 15 and September 15 of each year beginning on September 15, 2016. The net proceeds from the offering were used for general corporate purposes, including acquisitions and dividends. The Company incurred fees and expenses related to the 2021 Senior Notes offering of $8.1 million, which were capitalized during the first quarter of fiscal 2016 and are being amortized as interest expense over the term of the notes. In connection with the Exchange Offer discussed above, approximately $0.5 million of these fees and expenses are now being amortized as interest expense over the term of the 2023 Notes. The 2021 Senior Notes were sold in a private placement and are not registered under the Securities Act. The 2021 Senior Notes were offered in the United States to "qualified institutional buyers" pursuant to the exemption from registration under Rule 144A of the Securities Act and in exempted offshore transactions pursuant to Regulation S under the Securities Act.
During the 26 weeks ended August 1, 2020, the Company repurchased $6.8 million of its 2021 Senior Notes in open market transactions at prices ranging from 71.5% to 79.1% of par value, of which $0.5 million were retired as of May 2, 2020, with the remaining $6.3 million retired as of May 21, 2020. In connection with the Exchange Offer, $216.4 million aggregate principal amount of the 2021 Senior Notes was exchanged at par for the 2023 Senior Notes and all interest that had accrued on the 2021 Senior Notes that were exchanged was paid through July 6, 2020, thus leaving an aggregate principal amount of the 2021 Senior Notes of $198.2 million as of August 1, 2020.
During the first half of fiscal 2019, the Company repurchased $53.6 million of its 2021 Senior Notes in open market transactions at prices ranging from 99.6% to 101.5% of par value.
In connection with the Exchange Offer, the Company entered into the Fifth Supplemental Indenture governing its 2021 Senior Notes, which became effective on July 6, 2020. The Fifth Supplemental Indenture deleted several sections of the original indenture in their entirety, including sections that placed certain restrictions on the Company and its subsidiaries, including limitations on asset sales, additional liens, investments, stock repurchases, the incurrence of additional debt, the repurchase of debt and payments of dividends to its stockholders.
In addition, the Fifth Supplemental Indenture eliminated certain events of default, including defaults related to the failure to pay, or acceleration of, other debt, breaches of covenants, failure to pay certain judgments and certain events of bankruptcy, insolvency and reorganization of the Company's subsidiaries. However, the indenture continues to include events of default for failure to pay the principal or interest owing in respect of the 2021 Senior Notes and for certain events of bankruptcy, insolvency and reorganization of the Company. If an event of default, as amended by the Fifth Supplemental Indenture, were to occur and be continuing, then the principal amount of the 2021 Senior Notes, plus accrued and unpaid interest, if any, could be declared to be immediately due and payable. Such amounts would automatically become due and payable if an event of default relating to certain events of bankruptcy, insolvency or reorganization were to occur.
Revolving Credit Facility
The Company maintains an asset-based revolving credit facility (the “Revolver”) with a borrowing base capacity of $420 million and a maturity date of November 2022. The Revolver also includes a $200 million expansion feature and $50 million letter of credit sublimit, and allows for an incremental $50 million first-in, last-out facility. The applicable margins for prime rate loans range from 0.25% to 0.50% and, for the London Interbank Offered (“LIBO”) rate loans, range from 1.25% to 1.50%. The Revolver is secured by substantially all of the assets of the Company and the assets of its domestic subsidiaries.
Borrowing availability under the Revolver is limited to a borrowing base which allows the Company to borrow up to 90% of the appraisal value of the inventory, plus 90% of eligible credit card receivables, net of certain reserves. The borrowing base provides for borrowing of up to 92.5% of the appraisal value during the period between July 15 and October 15 of each year. Letters of credit reduce the amount available to borrow under the Revolver by an amount equal to the face value of the letters of credit. The Company's ability to pay cash dividends, redeem options and repurchase shares is generally permitted, except under certain circumstances, including if either (1) excess availability under the Revolver is less than 20%, or is projected to be within six months after such payment or (2) excess availability under the Revolver is less than 15%, or is projected to be within six months after such payment, and the fixed charge coverage ratio, as calculated on a pro-forma basis for the prior 12 months, is 1.0:1.0 or less. In the event that excess availability under the Revolver is at any time less than the greater of (1) $30 million orMicromania SAS's request.
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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(2)    10%Current period include the French term loans due July 2021 and October 2021. Prior periods include advances under the revolving credit facility due November 2022, the French term loans due July 2021 and October 2021 and the 2021 Senior Notes, net of the lesserassociated unamortized debt financing costs.
2021 Debt Payments
On March 15, 2021, we repaid at maturity $73.2 million outstanding principal amount of our 2021 Senior Notes.
On April 30, 2021, we completed the voluntary early redemption of $216.4 million outstanding principal amount of our 2023 Senior Notes. This voluntary early redemption covered the entire amount of then outstanding 2023 Senior Notes, which represented all of our long-term debt. In connection with the voluntary early redemption of our 2023 Senior Notes, we paid approximately $219.1 million in aggregate consideration, including accrued and unpaid interest. In connection with the voluntary early redemption of the total commitment or the borrowing base, the Company will be subject to2023 Senior Notes, we paid a fixed charge coverage ratio covenant$17.8 million make-whole premium which is included in interest expense in our consolidated statements of 1.0:1.0 (the "Availability Reduction").
The Revolver places certain restrictions on the Company and its subsidiaries, including limitations on asset sales, additional liens, investments, loans, guarantees, acquisitions and the incurrenceoperations. Additionally, we accelerated amortization of additional indebtedness. Absent consent from the Company's lenders, it may not incur more than $1 billion of senior secured debt and $750$0.4 million of additional unsecured indebtedness to be limited to $250 million in general unsecured obligations and $500 million in unsecured obligations to finance acquisitions valued at $500 million or more.
The per annum interest rate under the Revolver is variable and is calculated by applying a margin (1) for prime rate loans of 0.25% to 0.50% above the highest of (a) the prime rate of the administrative agent, (b) the federal funds effective rate plus 0.50% and (c) the LIBO rate for a one month interest period as determined on such day plus 1.00%, and (2) for LIBO rate loans of 1.25% to 1.50% above the LIBO rate. The applicable margin is determined quarterly as a function of the Company's average daily excess availability under the facility. In addition, the Company is required to pay a commitment fee of 0.25% for any unused portion of the total commitment under the Revolver. As of August 1, 2020, the applicable margin was 0.25% for prime rate loans and 1.25% for LIBO rate loans.
The Revolver provides for customary events of default with corresponding grace periods, including failure to pay any principal or interest when due, failure to comply with covenants, any material representation or warranty made by the Company or the borrowers proving to be false in any material respect, certain bankruptcy, insolvency or receivership events affecting the Company or its subsidiaries, defaults relating to certain other indebtedness, imposition of certain judgments and mergers or the liquidation of the Company or certain of its subsidiaries. During the 26 weeks ended August 1, 2020, the Company borrowed $150.0 million and repaid $115.0 million under its revolving credit facility. As of August 1, 2020, total availability under the Revolver after giving effect to the Availability Reduction was $28.4 million, with outstanding borrowings of $35.0 million and outstanding standby letters of credit of $27.3 million. The Company is currently in compliance with the financial requirements of the Revolver.
The Revolver terms stated above were in effect as of August 1, 2020. On August 28, 2020 the Company entered into an agreement that amended certain terms of the Revolver and a new letter of credit facility with Bank of America, N.A. See Note 11, "Subsequent Events" for further details.
Luxembourg Line of Credit
In September 2007, the Company's Luxembourg subsidiary entered into a $20.0 million Uncommitted Line of Credit (the “Line of Credit”) with Bank of America. There is no termdeferred financing costs 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 the Company's 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 August 1, 2020, there were 0 cash overdrafts outstanding under the Line of Credit and bank guarantees outstanding totaled $1.0 million.our 2023 Senior Notes.
French Term Loans and Credit Facility
During the second quarter of fiscal 2020, the Company'sour French subsidiary, Micromania SAS, entered into 36 separate unsecured term loans for a total of €20.0 million.€40.0 million ($48.1 million as of May 1, 2021). The term loans all bear interest at 0% and. NaN of the term loans totaling €20.0 million mature in JuneJuly 2021 butand the other 3 term loans totaling €20.0 million mature in October 2021, and all of them may be extended, subject to specified conditions, for up to five additional years at Micromania SAS's request. In connection with any such extension, the interest rate would increase atto a rate to be determined at the time of the extension. The French government has guaranteed 90% of the term loans pursuant to a state guaranteed loan program instituted in connection with the COVID-19 pandemic.
In addition,Each of Micromania SAS obtained a credit facility of €20.0 million that allows it to obtain shortSAS's term loans, of 10 to 93 days in duration to support its working capital needs. €10.0 million of the commitments expire in March 2021 and the remaining €10.0 million expire in June 2021. Loans made under the credit facility accrue interest at a variable rate tied to the Euro Interbank Offered Rate plus an applicable margin of 1.5% and are secured by a pledge of the bank account from which repayments of the loans are or will be made. As of August 1, 2020, the credit facility was undrawn and there were 0 outstanding borrowings under the facility.
Each of the term loans and the credit facilityas described above, restrict the ability of Micromania SAS to make distributions and loans to its affiliates, and include various events that would result in the automatic acceleration of the loans thereunder, including failure to pay any principal or interest when due, acceleration of other indebtedness, a change of control and certain bankruptcy, insolvency or receivership events.
Revolving Credit Facility
We maintain an asset-based revolving credit facility (the “Revolver”) with a borrowing base capacity up to $420 million and a maturity date of November 2022. The Revolver also includes a $200 million expansion feature and $100 million letter of credit sublimit, and allows for an incremental $50 million first-in, last-out facility. The applicable margins for prime rate loans range from 0.25% to 0.50% and, for the London Interbank Offered ("LIBO") rate loans, range from 1.25% to 1.50%. The Revolver is secured by substantially all of our assets and the assets of our domestic subsidiaries. As of May 1, 2021, the applicable margin was 0.25% for prime rate loans and 1.19% for LIBO rate loans.
The agreement governing our Revolver places certain restrictions on us and our subsidiaries, including, among others, limitations on asset sales, additional liens, investments, incurrence of additional debt and share repurchases. Additionally, the agreement contains customary events of default, including, among others, payment defaults, breaches of covenants and certain events of bankruptcy, insolvency and reorganization. The Revolver is also subject to a fixed charge coverage ratio covenant if excess availability is below certain thresholds (the "Availability Reduction").
As of May 1, 2021, we had 0 borrowings outstanding under the Revolver. During the first fiscal quarter of 2021, we repaid $25.0 million in borrowings under the Revolver. As of May 1, 2021, total availability under the Revolver after giving effect to the Availability Reduction was $99.9 million, with 0 outstanding borrowings and outstanding standby letters of credit of $44.0 million. We are currently in compliance with all covenants in the Revolver.
Letter of Credit Facilities
Separately from the Revolver, we maintain uncommitted letter of credit facilities with certain lenders that provide for the issuance of letters of credit and bank guarantees, at times supported by cash collateral. As of May 1, 2021, we had $38.2 million of outstanding letters of credit and bank guarantees under facilities outside of the Revolver.
7.    Commitments and Contingencies
Commitments
During the 13 weeks ended May 1, 2021, there were no material changes to our commitments as disclosed in our 2020 Annual Report on Form 10-K except as discussed in Note 6, "Debt."
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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
7. Commitments and Contingencies
Commitments
During the 26 weeks ended August 1, 2020, there were no material changes to the Company's commitments as disclosed in its 2019 Annual Report on Form 10-K.
Contingencies
Legal Proceedings
In the ordinary course of business, the Company is,we are, from time to time, subject to various legal proceedings, including matters involving wage and hour employee class actions, stockholder actions and consumer class actions. The CompanyWe may enter into discussions regarding settlement of these and other types of lawsuits, and may enter into settlement agreements, if it believeswe believe settlement is in the best interest of itsour stockholders. The Company doesWe do not believe that any such existing legal proceedings or settlements, individually or in the aggregate, will have a material effect on itsour financial condition, results of operations or liquidity.
8.    Earnings Per Share
Basic net income (loss) per common share is computed by dividing the net income (loss) available to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per common share is computed by dividing the net income (loss) available to common stockholders by the weighted-average number of common shares outstanding and potentially dilutive securities outstanding during the period. Potentially dilutive securities include stock options and unvested restricted stock outstanding during the period, using the treasury stock method. Potentially dilutive securities are excluded from the computations of diluted earnings per share if their effect would be antidilutive. A net loss from continuing operations causes all potentially dilutive securities to be antidilutive. The Company hasWe have certain undistributed stock awards that participate in dividends on a nonforfeitablenon-forfeitable basis, however, their impact on earnings per share under the two-class method is negligible.
A reconciliation of shares used in calculating basic and diluted net income (loss)loss per common share is as follows (in millions):
13 Weeks Ended26 Weeks Ended 13 Weeks Ended
August 1,
2020		August 3,
2019		August 1,
2020		August 3,
2019		 May 1,
2021		May 2,
2020
Weighted-average common shares outstandingWeighted-average common shares outstanding65.0 100.0 64.7 101.2 Weighted-average common shares outstanding66.0 64.5 
Dilutive effect of stock options and restricted stock awardsDilutive effect of stock options and restricted stock awards0 0 0 0 Dilutive effect of stock options and restricted stock awards0 0 
Weighted-average diluted common shares outstandingWeighted-average diluted common shares outstanding65.0 100.0 64.7 101.2 Weighted-average diluted common shares outstanding66.0 64.5 
Anti-dilutive stock options and restricted stock awardsAnti-dilutive stock options and restricted stock awards3.7 2.5 3.7 2.5 Anti-dilutive stock options and restricted stock awards2.6 2.8 
Shares of restricted stock granted by us are considered to be legally issued and outstanding as of the date of grant, notwithstanding that the shares remain subject to risk of forfeiture if the vesting conditions for such shares are not met, and are included in the number of shares of Class A common stock outstanding disclosed on the cover page of this Quarterly Report on Form 10-Q as of June 1, 2021. Weighted average common shares outstanding excludes time-based and performance-based unvested shares of restricted Class A common stock, as restricted shares are treated as issued and outstanding for financial statement presentation purposes only after such shares have vested and, therefore, have ceased to be subject to a risk of forfeiture. As of May 1, 2021, May 2, 2020 and January 30, 2021 there were 2.6 million, 2.8 million and 4.6 million, respectively, of unvested shares of restricted stock. Accordingly, as of May 1, 2021, May 2, 2020 and January 30, 2021 there were 71.9 million, 67.4 million and 69.9 million, respectively, of shares of Class A common stock, including unvested restricted shares, legally issued and outstanding.


9.    Segment Information
The Company operates itsWe operate our business in 4 geographic segments: United States, Canada, Australia and Europe.
The Company identifiesWe identified segments based on a combination of geographic areas and management responsibility. Segment results for the United States include retail operations in 50 states and Guam; itsour e-commerce website www.gamestop.com;operations; and Game Informer® magazine; and Simply Mac, which was sold in September 2019.magazine. The United States segment also includes general and administrative expenses related to the Company'sour corporate headquarters in Grapevine, Texas. 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 Zealand. Segment results for Europe include retail and e-commerce operations in 6 European countries for the 13 weeks ended May 1, 2021 and 10 European countries. As a result ofcountries for the rationalization of our global store base and the wind-down of certain European operations that began in fiscal 2019, as of August 1, 2020 the Company has ongoing operations in 6 European countries. The Company measures13 weeks ended May 2, 2020. We measure segment profit using operating earnings, which is defined as income from continuing operations before intercompany royalty fees, net interest expense and income taxes. Transactions between reportable segments consist primarily of royalties, management fees, intersegment loans and related interest. There were 0no material intersegment sales during the 13 and 26 weeks ended AugustMay 1, 20202021 and August 3, 2019.

May 2, 2020.
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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Segment information for the 13 and 26 weeks ended AugustMay 1, 20202021 and August 3, 2019May 2, 2020 is as follows (in millions):
United
States		CanadaAustraliaEuropeConsolidated
13 weeks ended August 1, 2020
Net sales$584.2 $41.9 $149.1 $166.8 $942.0 
Operating (loss) earnings(71.7)(0.7)11.6 (24.8)(85.6)
13 weeks ended August 3, 2019
Net sales$880.0 $63.0 $121.2 $221.5 $1,285.7 
Operating loss(414.1)(7.1)(2.2)(23.3)(446.7)
United
States		CanadaAustraliaEuropeConsolidated
13 weeks ended May 1, 2021
Net sales$966.3 $61.9 $114.8 $133.8 $1,276.8 
Operating loss(3.6)(2.9)(0.4)(33.9)(40.8)
13 weeks ended May 2, 2020
Net sales$760.6 $39.7 $113.7 $107.0 $1,021.0 
Operating loss(51.1)(9.4)(0.5)(47.0)(108.0)

United
States		CanadaAustraliaEuropeConsolidated
26 weeks ended August 1, 2020
Net sales$1,344.8 $81.6 $262.8 $273.8 $1,963.0 
Operating (loss) earnings(122.8)(10.1)11.1 (71.8)(193.6)
26 weeks ended August 3, 2019
Net sales$2,023.2 $135.6 $222.8 $451.8 $2,833.4 
Operating loss(361.9)(12.4)(10.4)(44.5)(429.2)

10.    Income Taxes
In response to the COVID-19 pandemic, many governments have enacted or are contemplating measures to provide aid and economic stimulus. These measures include deferring the due dates of tax payments and other changes to their income and non-income-based tax laws as well as providing direct government assistance through grants and forgivable loans. The Coronavirus Aid, Relief, and Economic Securities Act (the "CARES Act"), which was enacted on March 27, 2020 in the United States, includesincluded measures to assist companies, including temporary changes to income and non-income-based tax laws. With respect to the CARES Act, the Company currently expects to benefitwe have benefited from the deferral of certain payroll taxes, through the end of calendar year 2020, the carryback of a fiscal 2020 net operating loss, for fiscal 2020, the modification of limitation on business interest and the technical correction with respect to qualified improvement property. As a result of the carryback of NOLs allowed by the CARES Act, U.S. federal income tax receivable increased to $157.8 million as of May 1, 2021 compared to $22.9 million as of May 2, 2020. U.S. federal income tax receivable is included in prepaid expenses and other current assets in our consolidated balance sheet.
The Company
Our interim tax provision is determined using an estimated annual effective tax rate and adjusted for discrete taxable events and/or adjustments that may occur during the quarter.We recognized an income tax expense of $17.9$1.3 million, or (2.0%), for the 13 weeks ended AugustMay 1, 20202021 compared to an income tax benefitexpense of $40.1$50.4 million, or (43.9%), for the 13 weeks ended August 3, 2019. The Company'sMay 2, 2020. For the 13 weeks ended May 1, 2021, our effective income tax rate decreasedof (2.0%) is primarily due to (19.2)%not providing tax benefits on current period losses because of valuation allowances recorded in prior periods, as well as forecasted income taxes due in certain limited foreign jurisdictions within which we operate. Our effective tax rate of (43.9%) for the 13 weeks ended August 1,May 2, 2020 compared to 8.8% for the 13 weeks ended August 3, 2019. The decrease in the effective income tax rate and the corresponding change from tax benefit to tax expense compared to the prior year quarter was primarily drivendue to having recorded significant valuation allowance increases, partially offset by the significant decrease in the pre-tax book loss, impacts ofcertain tax benefits related to the CARES Act, the relative mix of earnings across the jurisdictions within which the Company operates, the impact of significant valuation allowances established in the U.S. in the current year, and the discrete tax effect of the sale and leaseback transactions during the second quarter.
The Company recognized income tax expense of $68.3 million for the 26 weeks ended August 1, 2020 compared to an income tax benefit of $37.8 million for the 26 weeks ended August 3, 2019. The Company's effective income tax rate decreased to (32.9)% for the 26 weeks ended August 1, 2020 compared to 8.5% for the 26 weeks ended August 3, 2019. The decrease in the effective income tax rate and the corresponding change from tax benefit to tax expense compared to the prior year quarter was primarily driven by the significant decrease in the pre-tax book loss, impacts of the CARES Act, the relative mix of earnings across the jurisdictions within which the Company operates, the impact of significant valuation allowances established in the U.S. in the current year, and the discrete tax effect of the sale and leaseback transactions during the second quarter.
The Company assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit the use of existing deferred tax assets. The Company has established valuation allowances in certain foreign jurisdictions where it has determined existing deferred tax assets are not more likely than not to be realized. During the first quarter of fiscal 2020, a full valuation allowance was established on all the U.S. and state deferred tax assets in the amount of $53.0 million. The Company continues to evaluate the realizability of all deferred tax assets on a jurisdictional basis as it relates to expected future earnings. Should the Company fail to achieve its expected earnings in the coming periods, it may be necessary to establish a valuation allowance against some or all of its deferred tax assets in those jurisdictions not currently subject to a valuation allowance.that period.
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GAMESTOP CORP.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
11. Subsequent Events
Sale-Leaseback Transactions
On August 12, 2020, the Company sold its Australian headquarters in Eagle Farm, Queensland to an unrelated party for approximately $27.0 million, net of costs to sell, and immediately leased back the facility for a term of ten years on market rate terms at an initial annual base rent of approximately $1.7 million, plus taxes, utilities, management fees and other operating and maintenance expenses which will increase 3.0% annually. The Company intends to use the net proceeds from the sale for general corporate purposes.
On September 1, 2020, the Company sold its Canadian headquarters in Brampton, Ontario for approximately $16.7 million, net of costs to sell, and leaseback the facility for a term of five years on market rate terms at an annual base rent of approximately $0.9 million (subject to customary annual rent escalations) plus taxes, utilities, management fees and other operating and maintenance expenses. The Company intends to use the net proceeds from the sale of its Canadian headquarters for general corporatepurposes.
Amendment to Revolving Credit Facility
On August 28, 2020, the Company entered into the fourth amendment (the “Fourth Amendment”) to the credit agreement governing its Revolver ("Credit Agreement") giving effect to certain amendments, including, but not limited to the following:
•Reduced the amount of the excess availability trigger that determines whether the Company is subject to a fixed charge coverage ratio covenant of 1.0:1.0 from the greater of $30 million and 10% of the borrowing base to the greater of $12.5 million and 10% of the borrowing base;
•Increased the sublimit for the issuances of letters of credit under the Credit Agreement from $50 million to $100 million; and
•Increased the amount of letters of credit debt permitted to be issued separately from, and not pursuant to, the Credit Agreement from $25 million to (i) up to $150 million for letters of credit issued by borrowers/guarantors under the Credit Agreement and (ii) up to $75 million for letters of credit issued for the benefit of foreign subsidiaries, subject to the understanding that the outstanding amount of letters of credit issued under the Credit Agreement, combined with the outstanding amount of letters of credit otherwise permitted by the Credit Agreement cannot exceed $275 million in the aggregate.
Letter of Credit Facility
Also on August 28, 2020, the Company entered into a new letter of credit facility (the “LC Facility”) with Bank of America, N.A. (the “Lender”). The LC Facility provides for the issuance, at the Lender’s option and discretion, of letters of credit cash collateralized at 103% of the face amount thereof, in an amount not to exceed (i) $150 million through February 14 2021 and (ii) $75 million from February 15, 2021 through August 31, 2021. The Lender may terminate the LC Facility at any time. The Company is obligated to pay a fee of 250 basis points per year on the daily undrawn face amount of each letter of credit and such additional fees as may be agreed by the Company and the Lender at the time each letter of credit is issued.
Details on the Fourth Amendment and the LC Facility are included in the Form 8-K the Company filed with the Securities and Exchange Commission on September 2, 2020.
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ITEM 2.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
ThePlease read the following discussion should be read in conjunctionand analysis of our financial condition and results of operations together with the information contained in our unaudited condensed consolidated financial statements including theand related notes thereto.included under Part I, Item 1 of this Quarterly Report on Form 10-Q.

The following discussion contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). In some cases, forward-looking statements can be identified by the use of terms such as “anticipates,” “believes,” “continues,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,” “pro forma,” “seeks,” “should,” “will” or similar expressions. Forward-looking statements include our current assumptions, expectations or forecasts of future events.

TheseForward-looking statements are only predictions based on current expectations and assumptions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. You should not place undue reliance on these forward-looking statements. The forward-looking statements involve a number of risks and uncertainties. Although we believe that the expectations reflected in our forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. A number of factors could cause our actual results, performance, achievements or industry results to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Factors that might cause such differences include, but are not limited to, those described under the heading “Risk Factors” in this quarterly report on Form 10-Q and Exhibit 99.4 to the Form 8-K filed with the SEC on June 5, 2020, and include risks related to:
•macroeconomic pressures, including the effects of COVID-19 on consumer spending;
•the impact of COVID-19, including government restrictions, on our business and financial results;
•the impact of COVID-19 on costs and availability of capital;
•the economic, social and political conditions in the U.S. and certain international markets;
•the cyclicality of the video game industry;
•our dependence on the timely delivery of new and innovative products from our vendors;
•the impact of technological advances in the video game industry and related changes in consumer behavior on our sales;
•our ability to keep pace with changing industry technology and consumer preferences;
•the impact of international crises and trade restrictions and tariffs on the delivery of our products;
•our ability to obtain favorable terms from our suppliers;
•the international nature of our business;
•our dependence on sales during the holiday selling season;
•fluctuations in our results of operations from quarter to quarter;
•our ability to de-densify our global store base;
•our ability to renew or enter into new leases on favorable terms;
•the competitive nature of our industry;
•our ability to attract and retain executive officers and key personnel;
•the adequacy of our management information systems;
•our reliance on centralized facilities for refurbishment of our pre-owned products;
•our ability to react to trends in pop culture with regard to our sales of collectibles and our dependence on licensed products for a substantial portion of such sales;
•our ability to maintain security of our customer, employee or company information;
•potential harm to our reputation;
•our ability to maintain effective control over financial reporting;
•our vendors’ ability to provide marketing and merchandise support at historical levels;
•restrictions on our ability to purchase and sell pre-owned video games;
•potential decrease in popularity of certain types of video games;
•changes in our tariff, import/export regulations and global tax rate;
•potential future litigation and other legal proceedings;
•potential future actions by activist stockholders;
•changes in accounting rules and regulations; and
•our ability to comply with federal, state, local and international law.

All forward-looking statements included or incorporated by reference in this Quarterly Report on Form 10-Q are based upon information available to us as of the date of this Quarterly Report on Form 10-Q, and we undertake no obligation to update or revise any of these forward-looking statements for any reason, whether as a result of new information, future events or otherwise after the date of this Quarterly Report on Form 10-Q, except as required by law.

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OVERVIEW
GameStop Corp. (“GameStop,” “we,” “us,” “our,” or the “Company”), a Delaware corporation established in 1996, is the world's largest video gamea leading specialty retailer which operates approximately 5,100 stores across 10 countries, and offers the best selection of new and pre-owned video gaming consoles, accessories and video game titles, in both physical and digital formats. GameStop also offers fans a wide variety of POP! vinyl figures, collectibles, boardoffering games and more. Through GameStop's unique buy-sell-trade program, gamers can trade in video game consoles, games,entertainment products through its e-commerce properties and accessories, as well as consumer electronics for cash or in-store credit. Our consumer product network also includes www.gamestop.com and Game Informer® magazine, the world's leading print and digital video game publication.thousands of stores.
We operate our business in four geographic segments: United States, Canada, Australia and Europe. Our fiscal year is composed of the 52 or 53 weeks ending on the Saturday closest to the last day of January. The fiscal yearsyear ending January 29, 2022 ("fiscal 2021") and the fiscal year ended January 30, 2021 ("fiscal 2020") and February 1, 2020 ("fiscal 2019") each consist of 52 weeks. The discussion and analysis of our results of operations refers to continuing operations unless otherwise noted. Our business, like that of many retailers, is seasonal, with the major portion of the net sales realized during the fourth fiscal quarter, which includes the holiday selling season.
Impact from COVID-19
Due to the COVID-19 pandemic,Throughout fiscal 2020, we temporarily closed stores or limited store operations at various times across our U.S. store locationsfour operating segments. During the first quarter of fiscal 2021, temporary closures were limited to customer access, as well as closed store locationscertain jurisdictions in Canada, Europe and New Zealand. These temporary store closures began in late March 2020 and by the end of fiscal June 2020, 98% of ourCanada. Although certain stores globally were open to the public following the implementation of the highest level of health and safety protocols recommended by the federal and local health and governmental authorities. During the period ofexperienced temporary closures we took several steps to continue to serve our customers via our omnichannel platform by enhancing our online capabilities and curbside pick-up options while also lowering our purchase and expense levels to correspond with the lower demand.
The substantial majority of our stores across the various geographies where we operate have re-opened to the public for the latter portion ofduring the 13 weeks ended AugustMay 1, 2020 following the health and safety protocols recommended by the local health and governmental authorities. In addition, many2021, some of our stores offered and continue to offer curbside pick-up. We remain vigilant in the United States continued offering curbside pick-up, ship from store and e-commerce delivery options while they were open to the public.our compliance with COVID-19 regulations across our operating regions. We continue to prioritize the health and safety of our customers and team members. As a result, during the 26 weeks ended August 1, 2020, we incurred $21.4 million to mitigate the impact of the COVID-19 pandemicmembers, including incremental wage payments to hourly associates to help offset lost wages due to store closures, enhanced cleaning measures and expanded use of personal protective equipment at our stores, shared service centers and distribution centers across all geographies where we operate. We expect that we will continue to incur costs to provide these measures well into fiscal 2021.
The COVID-19 pandemic remains a rapidly evolving situation and thecontinues to impact on our business, operating results, cash flows and financial conditions will also depend onconditions. Factors impacted by the COVID_19 pandemic include, but are not limited to, the following, many factors thatof which are not within our control, including the following:control:
•the geographies impacted by the virus;
•changes in consumer confidence and consumer spending habits, including spending for the merchandise that we sell;
•negative trends in consumer purchasing patterns due to changes in consumers' disposable income, credit availability and debt levels;
•the availability of additional economic stimulus programs introduced by the various governments where we operate;
•disruption to our supply chain including the manufacturing, supply, distribution, transportation and delivery of our products;
•delays in the release of key video game titles; and
•a slowdown in the U.S. and global economies, and the timing of the post-pandemic economic recovery.
We are taking steps to improve cash flows and liquidity, which we believe will help us emerge from the COVID-19 pandemic as a more resilient company. These steps include the following:
•reducing inventory receipts to match demand, focusing our purchasing efforts on key hardware, software and accessories products;
•lowering capital spending to focus on mandatory maintenance or near-term high value strategic projects;
•divesting non-strategic assets to free up cash that will be re-deployedSee Note 2, "COVID-19 Impacts" for certain strategic investments and initiatives, including the recent completion of sale and lease-back transactions; and
•completing the exchange offer for our senior notes due in 2021.

In addition, during the first quarter of fiscal 2020 and the beginning of the second quarter of fiscal 2020, we took the following steps to preserve liquidity while most of our stores were temporarily closed:
•reduced the base salary for our executive leadership team by graduated amounts ranging from 30%-50% for 9 weeks;
•lowered the cash compensation for the members of the Board of Directors by 50% for 9 weeks;
•reduced pay for certain other employees by graduated amounts across most of the worldwide permanent workforce between 10% and 30% for 9 weeks; and
•forewent merit pay increases for the majority of our associates for fiscal 2020.further details.
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See Note 2, "COVID-19 Impacts" for further details.
Industry Overview
Growth in the video gamegaming industry is generally driven by the introduction of new technology. Gaming consoles have historically launched in five to seven-year cycles as technological developments provide significant improvements in the gaming experience and add other entertainment capabilities. Consumer demand for gaming consoles areis typically the highest in the early years of the cycle and the weakest in the latter years. The current generation of consoles includeincludes the Sony PlayStation 45 (launched in 2013)November 2020), Microsoft Xbox OneSeries X (launched in 2013)November 2020) and the Nintendo Switch (launched in March 2017). The Sony PlayStation 4 and Microsoft XBox One are nearing the end of their cycle as Sony and Microsoft have announced their next generation consoles are expected to launch during the holiday period of 2020.
The sale of video games delivered through digital channels and other forms of gaming continue to grow and takerepresent an increasing percentage of physical video game sales. We currently sell various types of products that relate to the digital category, including digitally downloadable content (“DLC”), full game downloads, Xbox LIVE, PlayStation Plus and Nintendo network points cards, as well as prepaid digital and prepaid subscription cards. We have made significant investments in our e-commerce in-store and websitestore functionality to enable our customers to access digital content to facilitate the digital sales and delivery process. We plan to continue to invest in these types of processes and channels to grow our digital sales base and enhance our market leadership position in the video game industry and in the digital aggregation and distribution category.industry.
In our discussion of the results of operations, we refer toWe have historically reported comparable store sales which is a measure commonly used in the retail industry and indicates store performance by measuring the growth or decline in sales for certain stores for a particular period over the corresponding prior year's comparable period.
The methodology of calculating comparable store sales varies across the retail industry and our methodology may not be the same as other retailers' methodology. Our comparable store sales are comprised of sales from our video game stores, including stand-alone collectible stores operating for at least 12 full months as well as sales related to our websites and sales we earn from sales of pre-owned merchandise to wholesalers or dealers. Our comparable store sales methodology excludes from the comparable store base stores that were closed for 14 consecutive days or more and where curbside delivery was not available to customers for such stores. Comparable store sales for our international operating segments exclude the effect of changes in foreign exchange rates.
Historically, stores with an active lease designation were included in our comparable stores sales even if there wereAs a result of the extensive temporary closures because such temporary closures were primarily due to remodeling and relocations and were typically resolved within fewer than 14 days. Beginning in the first quarter of our fiscal year 2020, we refined the definition of comparable store sales to exclude stores that were closed for 14 consecutive days or more and where curbside delivery was not available to customers. Therefore, comparable sales results for the 13 and 26 weeks ended August 1, 2020 exclude stores that were closed for 14 consecutive days or more primarilyclosures due to the COVID-19 pandemic, where curbside delivery waswe believe comparable store sales are not availablea meaningful metric for the 13 weeks ended May 1, 2021 and we have not included comparable store sales in the discussion of our Consolidated Results of Operations below. We have included a discussion of net sales in our Consolidated Results of Operations as we believe net sales is the more appropriate metric to customers. These criteria areevaluate the performance of our business at this time. This metric is consistent with the metric used by management for internal reporting and analysis to measure performance of our stores. Comparable store sales reported in prior periods are not affected by this revision.
The calculationAs we continue to reposition during fiscal 2021, we will continue to evaluate the metrics that we believe will most effectively inform investors of comparable store sales compares the 13our performance, development and 26 weeks ended August 1, 2020 to the most closely comparable weeks for the prior year period. The method of calculating comparable store sales varies across the retail industry. As a result, our method of calculating comparable store sales may not be the same as other retailers’ methods. We believe our calculation of comparable store sales best represents our strategy as an omnichannel retailer that provides its consumers several ways to access its products.outlook.
BUSINESS STRATEGY
In May of 2019, we announced our multi-year transformation initiative, which we refer to as GameStop Reboot to position GameStop on the correct strategic path and fully leverage our unique position and brand in the video game industry. Our strategic plan is anchored on the following four tenets. tenets and designed to first stabilize and optimize our core business while at the same time, pursuing strategic initiatives to transform GameStop for the future by expanding our addressable market and product offerings to drive growth in the gaming and entertainment industries.
Stabilize and Optimize the core business. ImproveWe are improving the efficiency and effectiveness of operations across theour organization, including cost restructuring, inventory management optimization, adding and growing high margin product categories, and rationalizing theour global store base. Prioritizing efforts to optimize our store base and improve the fundamental operations of our business yielded the net closure of 693 stores in fiscal 2020 and an additional 118 stores in first quarter fiscal 2021, and included both the divestiture of the Simply Mac business and wind down of underperforming operations in Denmark, Finland, Norway and Sweden. Improved inventory management drove a significant increase in inventory turns and as a result, in working capital, while an intense focus on organization structure and expense reductions yielded a $16.2 million or 4.2% reduction in reported selling, general and administrative expenses in the first quarter of fiscal 2021 as compared to the first fiscal quarter of 2020. We continue to explore strategic options for our European businesses, which may include further store closings, exiting unprofitable businesses, or investing in e-commerce capabilities.
Transform GameStop into a customer-obsessed technology company to delight gamers. We are taking the following steps in fiscal 2021:
•Investing in technology capabilities, by in-sourcing talent, revamping systems, and evaluating next-generation assets;
Become the social / cultural hub for gaming.•Create the social and cultural hub of gaming across the GameStop platform and offerings.Building a superior customer experience, including beginning to establish a U.S.-based customer care operation;
Build a frictionless digital ecosystem.• DevelopExpanding product catalog and deploy a frictionless consumer facing digital omni-channel environment,addressable market including the recent relaunch of GameStop.com, to reach customers more broadly across all channels and provide them the full spectrum of content and access to products they desire, anytime, anywhere.certain emerging categories that represent natural extensions;
Transform vendor partnerships.• Transform our vendorModernizing U.S. fulfillment operations to improve speed of delivery and partner relationships to unlock additional high-margin revenue streams and optimize the lifetime value of every customer.service;
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our continued business to enable long-term value creation for our stockholders.
Connected to our transformation efforts, we have incurred and expectmay continue to incur future costs including, but not limited to, consulting fees, severance, and store closure costs.costs and expenses for consultants and advisors. See "Consolidated Results from Operations—Selling, General and Administrative Expenses" for further information.
We remain committed to a capital allocation strategy focused on optimizing long-term value creation. With this approach, we will return capital to shareholders when the time is right and balance that opportunity against the need to maintain a strong balance sheet and to invest in responsible growth that will drive innovation for the business.
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CONSOLIDATED RESULTS OF OPERATIONS
The following table sets forth certain statement of operations items (in millions) and as a percentage of net sales, for the periods indicated:
13 Weeks Ended26 Weeks Ended13 Weeks Ended
August 1, 2020August 3, 2019August 1, 2020August 3, 2019May 1, 2021May 2, 2020
AmountPercent of Net SalesAmountPercent of Net SalesAmountPercent of Net SalesAmountPercent of Net SalesAmountPercent of Net SalesAmountPercent of Net Sales
Net salesNet sales$942.0 100.0 %$1,285.7 100.0 %$1,963.0 100.0 %$2,833.4 100.0 %Net sales$1,276.8 100.0 %$1,021.0 100.0 %
Cost of salesCost of sales689.8 73.2 886.6 69.0 1,428.4 72.8 1,963.1 69.3 Cost of sales946.7 74.1 738.6 72.3 
Gross profitGross profit252.2 26.8 399.1 31.0 534.6 27.2 870.3 30.7 Gross profit330.1 25.9 282.4 27.7 
Selling, general and administrative expensesSelling, general and administrative expenses348.2 37.0 481.9 37.4 734.7 37.5 935.6 33.0 Selling, general and administrative expenses370.3 29.1 386.5 37.9 
Goodwill and asset impairments0.9 0.1 363.9 28.3 4.8 0.2 363.9 12.8 
Gain on disposal of assets(11.3)(1.2)— — (11.3)(0.6)— — 
Asset impairmentsAsset impairments0.6 — 3.9 0.4 
Operating lossOperating loss(85.6)(9.1)(446.7)(34.7)(193.6)(9.9)(429.2)(15.1)Operating loss(40.8)(3.2)(108.0)(10.6)
Interest expense, netInterest expense, net7.5 0.8 7.0 0.6 14.2 0.7 14.7 0.6 Interest expense, net24.7 1.9 6.7 0.6 
Loss from continuing operations before income taxesLoss from continuing operations before income taxes(93.1)(9.9)(453.7)(35.3)(207.8)(10.6)(443.9)(15.7)Loss from continuing operations before income taxes(65.5)(5.1)(114.7)(11.2)
Income tax expense (benefit)17.9 1.9 (40.1)(3.1)68.3 3.5 (37.8)(1.4)
Income tax expenseIncome tax expense1.3 0.1 50.4 5.0 
Net loss from continuing operationsNet loss from continuing operations(111.0)(11.8)(413.6)(32.2)(276.1)(14.1)(406.1)(14.3)Net loss from continuing operations(66.8)(5.2)(165.1)(16.2)
Loss from discontinued operations, net of taxLoss from discontinued operations, net of tax(0.3)— (1.7)(0.1)(0.9)— (2.4)(0.1)Loss from discontinued operations, net of tax— — (0.6)— 
Net lossNet loss$(111.3)(11.8)%$(415.3)(32.3)%$(277.0)(14.1)%$(408.5)(14.4)%Net loss$(66.8)(5.2)%$(165.7)(16.2)%
We revisedThe 13 Week Period Ended May 1, 2021 Compared to the categories of our similar products at the end of fiscal 2019. See Note 3, "Revenue," for further details. 13 Week Period Ended May 2, 2020
Net Sales
The following table sets forth net sales by significant product category for the period indicated (dollars in millions):
 13 Weeks Ended
 May 1, 2021May 2, 2020
Net
Sales		Percent of Net SalesNet
Sales		Percent of Net Sales
Hardware and accessories$703.5 55.1 %$513.1 50.3 %
Software397.9 31.2 417.0 40.8 
Collectibles175.4 13.7 90.9 8.9 
Total$1,276.8 100.0 %$1,021.0 100.0 %
 13 Weeks Ended26 Weeks Ended
 August 1, 2020August 3, 2019August 1, 2020August 3, 2019
Net
Sales		Percent of Net SalesNet
Sales		Percent of Net SalesNet
Sales		Percent of Net SalesNet
Sales		Percent of Net Sales
Hardware and accessories$441.6 46.9 %$554.9 43.2 %$954.7 48.6 %$1,211.4 42.7 %
Software386.5 41.0 558.3 43.4 803.5 41.0 1,291.4 45.6 
Collectibles113.9 12.1 172.5 13.4 204.8 10.4 330.6 11.7 
Total$942.0 100.0 %$1,285.7 100.0 %$1,963.0 100.0 %$2,833.4 100.0 %
Net sales by reportable segment in U.S. dollars were as follows (in millions):
13 Weeks Ended
May 1, 2021May 2, 2020
Net
Sales		Percent of Net SalesNet
Sales		Percent of Net Sales
United States$966.3 75.7 %$760.6 74.5 %
Canada61.94.8 39.7 3.9 
Australia114.89.0 113.7 11.1 
Europe133.810.5 107.0 10.5 
Total$1,276.8 100.0 %$1,021.0 100.0 %
13 Weeks Ended
August 1, 2020August 3, 2019
Net
Sales		Percent of Net SalesComparable Store SalesNet
Sales		Percent of Net SalesComparable Store Sales
United States$584.2 62.0 %(20.1)%$880.0 68.4 %(14.0)%
Canada41.94.4 (15.6)63.0 4.9 (13.4)
Australia149.115.8 30.9 121.2 9.5 (4.0)
Europe166.817.8 (11.6)221.5 17.2 (5.4)
Total$942.0 100.0 %(12.7)%$1,285.7 100.0 %(11.6)%

For the first three months of fiscal 2021, net sales increased $255.8 million or 25.1% compared to the same prior year period. Net sales in our United States, Canada, Australia and Europe segments increased by 27.0%, 55.9%, 1.0% and 25.0%, respectively, when compared to the same period last year. The increase in net sales for the quarter was primarily attributable to sales volume from the launch of the new video game consoles from Sony and Microsoft and continued strong sales of the Nintendo gaming product lines coupled with the increase in store traffic compared to the same period last year as a result of the abrupt temporary store closures we experienced beginning in March of 2020 due to the COVID-19 pandemic. The increases in the hardware and accessory category and the collectibles category were partially offset by a decline in the software category as
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26 Weeks Ended
August 1, 2020August 3, 2019
Net
Sales		Percent of Net SalesComparable Store SalesNet
Sales		Percent of Net SalesComparable Store Sales
United States$1,344.8 68.5 %(21.8)%$2,023.2 71.4 %(11.9)%
Canada81.64.2 (11.2)135.6 4.8 (9.8)
Australia262.813.4 32.4 222.8 7.9 (5.9)
Europe273.813.9 (10.3)451.8 15.9 (9.2)
Total$1,963.0 100.0 %(15.1)%$2,833.4 100.0 %(10.9)%
Net Sales
Net sales decreased $343.7 million (26.7%) and $870.4 million (30.7%), duringa result of lower pre-owned inventory supply caused by the 13 and 26 weeks ended August 1, 2020, respectively, compared to their prior year periods. Comparable store sales decreased 12.7% and 15.1% during the current quarter and year-to-date periods, respectively. The decrease in net sales for the quarter and year-to-date periods was primarily attributable to the combined impacts of temporary store closures to customer traffic inthroughout the United States, Canada and Europe due to the COVID-19 pandemic and the cyclicality of new hardware consoles, which are expected to launch in the fourth quarter of 2020. Although the substantial majority of our stores were able to open for the latter portion the second quarter of fiscal 2020, the negative impact related to the on-going COVID-19 pandemic continued to affect our store operations in the United States, Canada, Europe and New Zealand. These declines were partially offset by the performance in our Australia segment which experienced a 23.0% and 18.0% increase in sales during the 13 and 26 weeks ended August 1, 2020, respectively, as stores in Australia remained open during those weeks. These declines were also partially offset by the increase in our e-commerce sales, which increased 800% and 644% in the current quarter and year-to-date periods, respectively, compared to the priorpast year periods. Although our sales have decreased compared to the prior year periods as described above, we believe the COVID-19 pandemic has increased demand for at home entertainment and connectivity products as consumers are spending more time in their homes and seek in-home entertainment options.
Net sales during the 13 weeks ended August 1, 2020 in our United States, Canada and Europe segments declined by 33.6%, 33.5% and 24.7%, respectively, while net sales in our Australia segment increased 23.0%, when compared to the 13 weeks ended August 3, 2019. Comparable store sales in the United States, Canada and Europe decreased by 20.1%, 15.6% and 11.6%, respectively, while comparable store sales increased in the Australia segment by 30.9%, primarily due to the factors described above.
Net sales during the 26 weeks ended August 1, 2020 in our United States, Canada and Europe segments declined by 33.5%, 39.8% and 39.4%, respectively, while net sales in our Australia segment increased 18.0%, when compared to the 26 weeks ended August 3, 2019. Comparable store sales in the United States, Canada and Europe decreased by 21.8%, 11.2% and 10.3%, respectively, while comparable store sales increased in the Australia segment by 32.4%, primarily due to the factors described above.limiting in-store trade opportunities.
Gross Profit
Gross profit decreased 36.8% and 38.6%increased 16.9% for the 13 and 26 weeks ended August 1, 2020, respectively,first fiscal quarter of 2021 when compared to the priorsame period last year periods, primarily due to the decreaseincrease in sales. Gross profit as a percentage of net sales decreased to 26.8% and 27.2%25.9% in the current year fiscal quarter and year-to-date periods compared to 31.0% and 30.7%27.7% in the prior year fiscal quarter, and year-to-date periods, respectively, primarily due to a shift in product mix tointo lower margin products includingcategories such as new console hardware given the launch of the generation 9 consoles and increased freight and credit card fees associated with the shift to new hardware and accessories within our hardware and accessories product category. In addition, the year-to-date change includes a shift in product mix to new software.e-commerce sales.
Selling, General and Administrative Expenses
Selling, general and administrative expenses ("SG&A") decreased $133.7$16.2 million (27.7%) and $200.9 million (21.5%)or 4.2% for the 13 and 26 weeks ended August 1, 2020, respectivelyfirst fiscal quarter of 2021, compared to the same prior year periods.period. We continue to benefit from lower store payroll and occupancy costs driven by our extensive cost reduction initiatives. These net reductions include 630 permanent store closures since May 2, 2020 as we de-densify our store base. The prior year quarter and year-to-date periods included $33.1declines in our store SG&A expense are partially offset by a $13.2 million ofincrease in costs associated with our accelerated transformation, initiativeswhich consist of severance and severance. Excluding these charges,divestiture, consulting fees with third parties supporting the decrease in SG&A for both the quarter and year-to-date periods was primarily due to reductions in payroll and other variable overhead expenses due to temporary store closures as a result of the COVID-19 pandemic and cost savings achieved as a resultexecution of our GameStop Reboot plan. See Note 2, "COVID-19 Impacts" for further details.strategy, and administrative expenses incurred while completing significant debt and equity transactions. We expect to continue to incur these costs as we progress through our accelerated transformation.
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Goodwill and Asset Impairments
During the 13 and 26 weeks ended August 1,first fiscal quarter of 2021, we recognized a $0.6 million asset impairment on a right-of-use lease asset.During the first fiscal quarter of 2020, we recognized asset impairment charges totaling $0.9$3.9 million, consisting of a $2.7 million impairment of our corporate aircraft, which was classified as held for sale as of May 2, 2020, and $4.8$1.2 million respectively. The charges consist of $0.5 million and $3.2 million, for the current quarter and year-to-date periods, respectively, in impairment charges related to our formerly-owned corporate aircraft, which we sold in the second fiscal quarter of 2020store-level property and $0.4 million and $1.6 million, for the current quarter and year-to-date periods, respectively, in impairment charges associated with store-level assets.
During the 13 and 26 weeks ended August 3, 2019, we recognized a goodwill impairment charge totaling $363.9 million. The impairment charge was primarily as a result of a decline in our market capitalization. As a result of the impairment charge, we have no remaining goodwill.
Gain on Sale of Assets
In July of 2020, we sold, in separate unrelated transactions, to unaffiliated third parties i) our corporate headquarters and ancillary office space in Grapevine, Texas for $28.5 million, net of costs to sell and ii) a nearby refurbishment center for $15.2 million, net of costs to sell. The net proceeds from the sale of these assets will be used for general corporate purposes. As a result of these transactions, a gain on sale of assets of $11.3 million was recognized for the 13 weeks and 26 weeks ended August 1, 2020.
In connection with each of these sales, we leased-back from the applicable purchasers our corporate headquarters for an initial term of ten years, and the ancillary office space and refurbishment center for two years. The leaseback agreement for the corporate headquarters contains three renewal periods of five years each; we recognized only the initial term of the lease as part of our right-of-use asset and lease liability for the corporate headquarters. The other facilities do not contain a renewal option. The annual rent for the corporate headquarters will start at $1.7 million, plus taxes, utilities, management fees and other operating and maintenance expenses and will increase by 2.25% per year. The annual rent for the other facilities will be $1.3 million with no rent escalation, plus taxes, utilities, management fees and other operating and maintenance expenses. These leaseback agreements are accounted for as operating leases.
With respect to the leaseback of the corporate headquarters, we agreed to provide a letter of credit to the buyer-lessor within 18 months from the closing date to secure our lease obligation. Upon delivering such letter of credit, we will be entitled to a rent credit of $2.8 million. This variable consideration is included in the total gain on sale of assets recognized during the second quarter of 2020.equipment.
Interest Expense, Net
InterestDuring the first fiscal quarter of 2021, interest expense, net increased by $0.5$18.0 million (7.1%) during the 13 weeks ended August 1, 2020 compared to the 13 weeks ended August 3, 2019, primarily due to a decreasesame fiscal period in interest income, offset by a decrease in interest expense as a result of the premiums paid in the prior year period on the repurchase of $50.5 million aggregate principal amount of our 2021 Senior Notes during the second quarter of fiscal 2019 and the repurchase of $6.8 million aggregate principal amount of our 2021 Senior Notes during the first half of fiscal 2020.
Interest expense, net decreased by $0.5 million (3.4%), during the 26 weeks ended August 1, 2020, compared to the 26 weeks ended August 3, 2019, primarily due to the $17.8 million make-whole premium paid upon the voluntary early redemption of our $350.0 million 2019the outstanding balance of the 2023 Senior Notes on April 4, 2019 and the repurchase of $6.8 million aggregate principal amount of our 2021 Senior Notes during the first half of fiscal 2020, offset by a decrease in interest income.Notes.
Income Tax Expense (Benefit)
We recognized income tax expense of $17.9$1.3 million for the first fiscal quarter compared to an income tax expense of $50.4 million for the same fiscal period in 2020. Our effective income tax rate increased to (2.0%) for the 13 weeks ended AugustMay 1, 20202021 compared to an income tax benefit of $40.1 million(43.9%) for the 13 weeks ended August 3, 2019. Our effective income tax rate decreased to (19.2)% for the 13 weeks ended August 1, 2020 compared to 8.8% for the 13 weeks ended August 3, 2019.May 2, 2020. The decreaseincrease in the effective income tax rate and the corresponding change from tax benefit to tax expense compared to the prior year quarter was primarily driven by the significant decreasefull valuation allowance that we recorded in the pre-tax book loss, impactsfiscal 2020 on our deferred tax assets as a result of the CARES Act, the relative mixour determination that realization of earnings across the jurisdictions within which we operate, the impact of significant valuation allowances established in the U.S. in the current year, and the discreteexisting deferred tax effect of the sale and leaseback transactions during the second quarter.assets is not more likely than not to benefit from our losses. See Note 10, "Income Taxes," for further information.
We recognized income tax expense of $68.3 million for the 26 weeks ended August 1, 2020 compared to an income tax benefit of $37.8 million for the 26 weeks ended August 3, 2019. Our effective income tax rate decreased to (32.9)% for the 26 weeks ended August 1, 2020 compared to 8.5% for the 26 weeks ended August 3, 2019. The decrease in the effective income tax rate and the corresponding change from tax benefit to tax expense compared to the prior year quarter was primarily driven by the significant decrease in the pre-tax book loss, impacts of the CARES Act, the relative mix of earnings across the jurisdictions within which we operate, the impact of significant valuation allowances established in the U.S. in the current year, and the discrete tax effect of the sale and leaseback transactions during the second quarter.
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LIQUIDITY AND CAPITAL RESOURCES
Overview
Our principal sources of liquidity are cash from operations, cash on hand and our revolving credit facility.facilities. As of AugustMay 1, 2020,2021, we had total unrestricted cash on hand of $735.1$694.7 million and an additional $28.4$99.9 million of available borrowing capacity under our $420 million asset-based revolving credit facility (the "Revolver"), which had $35.0 million offacilities. On March 15, 2021, we repaid our outstanding borrowings as of August 1, 2020. Our total cash on hand includes $43.2$25.0 million proceeds, netunder the Revolver.
During the first fiscal quarter of costs to sell and other deductions, from the sales and leasebacks2021, we sold 3,500,000 shares of common stock under our corporate headquarters, ancillary office space and a nearby refurbishment center"at-the-market" equity offering program (the "ATM Offering"). We generated $556.7 million in Grapevine, Texas and $8.6 million netgross proceeds from the saleATM Offering and paid fees to the sales agent of $5.0 million. Additionally, we incurred $0.2 million in other administrative fees in connection with the ATM Offering during the 13 weeks ended May 1, 2021 which is included in selling, general and administration expenses on the consolidated statement of operation. We have used, and intend to continue to use, the $551.7 million in net proceeds generated from the ATM Offering for working capital and general corporate purposes, including repayment of indebtedness, funding our transformation initiatives and product category expansion efforts, capital expenditures and the satisfaction of our corporate aircraft.tax withholding obligations upon the vesting of shares of restricted stock held by our executive officers and other employees.
Additionally, during the first fiscal quarter of 2021, we repaid the remaining $73.2 million aggregate principal amount of our then outstanding 2021 Senior Notes and the remaining $216.4 million aggregate principal amount of our then outstanding 2023 Senior Notes. See Note 1, "General Information," and Note 5, "Leases,6, "Debt," for further information.
Availability under our Revolver, which was increased subsequent to August 1, 2020, as described indetails on the Sources of Liquidity section below, provides us additional liquidity throughout the course of the year to fund our operations. Based on our current operating plans, we believe that available cash balances, cash generated from our operating activities and funds available under the Revolver together will provide sufficient liquidity to fund our operations and transformation initiatives and support corporate capital allocation programs, including any share or debt repurchases that we may undertake, for the next 12 months and the foreseeable future. While factors related to COVID-19 have negatively impacted our results for the first quarter ended May 2, 2020, results for our second quarter ended August 1, 2020, as compared to our first quarter of fiscal 2020, have improved as we continued to achieve the cash flow benefits from cost savings and expense reduction initiatives, as well as disciplined working capital management which supports an improved liquidity position.transactions.
On an ongoing basis, we evaluate and consider certain strategic operating alternatives, including divestitures, restructuring or dissolution of unprofitable business segments, repurchasing shares of our common stock or our outstanding debt obligations, as well as other transactionsequity and debt financing alternatives that we believe may enhance stockholder value. Specific to our 2021 Senior Notes, on July 6, 2020 we issued $216.4 million aggregate principalThe nature, amount of the 2023 Senior Notes in exchange for the same aggregate principal amount of our 2021 Senior Notes. See Note 6, "Debt," for further details on this debt exchange. The amount, nature and timing of any strategic operational changes,change, or purchases of our debt or equity securitiesfinancing transactions that we might pursue will depend on a variety of factors, including, as of the applicable time, our available cash and liquidity operating performance and other circumstances;operating
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performance; our then-current commitments and obligations; the amount, nature and timing of our capital requirements; any limitations imposed byunder our current credit arrangements; and overall market conditions. As part of our previously announced GameStop Reboot profit improvement initiative, we are evaluating future strategic and operating alternatives for certain of our unprofitable operating subsidiaries and business units that operate within our international segments. We currently believe that the aggregate amount of any potential charges associated with the disposition or wind-down of certain operations under consideration, primarily relating to lease and severance obligations and accelerated depreciation and amortization, would not be material to our liquidity, results of operations or financial condition.
As a result of the impact of the COVID-19 pandemic around the world, many of our vendors have been impacted by the volatility in the supply chain financing market. As we seek to optimize our inventories, including for next generation video game consoles and a result, in recent weeks,number of new software releases, and related payment terms, we have elected to use certain supply chain support instruments such as lettersincreased the amount of credit withsupport collateral we provide to select vendors for our inventory purchase obligations. Our continued provision of collateral, and the levels of such collateral, will depend on a select few vendors to ensure we are maximizing opportunities invariety of factors, including our supply chain as the next generationinventory purchase levels, available payment terms for inventories, availability of gaming consoles approaches in the coming few months. We may elect to further use these instruments in the future. Use of these instruments may utilizeborrowing capacity of the borrowing base under our ABL revolving linecredit facilities, favorable credit terms and costs of credit or potentially increase our balance of restricted cash.providing collateral. See Note 1, "General Information — Restricted Cash" for further details.
Cash Flows
During the 2613 weeks ended AugustMay 1, 2020,2021, cash provided by operations was $143.5flows from operating activities were an outflow of $18.8 million, compared to cash used in operationswith an outflow of $646.7$49.3 million during the 26 weeks ended August 3, 2019. The increasesame period last year. Our net loss for the fiscal quarter included charges and credits that did not impact operating cash flow, including depreciation and amortization, loss on extinguishment of debt and stock-based compensation partially offset by cash from operations. Overall, our cash from operations benefited from continued improvements in cash provided by operationsworking capital as a result of $790.2 million was primarily attributable to the optimization ofoptimizing inventory and accounts payable levels as we have focused our operational process to optimizethrough optimizing the cash conversion cycle and carry more efficient carrying levels of inventory.
Cash provided byflows from investing activities increased to $36.0were an outflow of $14.7 million during the 2613 weeks ended AugustMay 1, 20202021 compared to cash used in investingan outflow of $42.2$6.1 million during the 26 weeks ended August 3, 2019.same period last year. The $78.2 million increasedecrease in cash provided by investing activities is primarily attributable to lowerhigher capital expenditures in current year.
Cash flows from financing activities were an inflow of $169.3 million during the current year period and13 weeks ended May 1, 2021 compared to an inflow of $131.9 million during the 13 weeks ended May 2, 2020. During the first quarter of fiscal 2021, we received $551.7 million in aggregate proceeds from the sale and leasebackof shares of common stock in the ATM Offering (net of approximately $5.0 million of commissions). We completed the voluntary early redemption of our corporate headquarters, ancillary office space andthen outstanding 2023 Senior Notes for an aggregate of $234.2 million (inclusive of a nearby refurbishment center in Grapevine, Texas and the sale$17.8 million make-whole premium). We also repaid $73.2 million to retire at maturity our then outstanding 2021 Senior Notes. We repaid $25.0 million of our corporate aircraftoutstanding borrowing under the Revolver. The cash inflow during the current year quarter. See Note 1, "General Information," and Note 5, "Leases" for further information.
During the 2613 weeks ended August 1,May 2, 2020 cash provided by financing activities was $52.0 million, consisting primarily ofdue to a net $35.0$135.0 million draw down on our Revolver and $23.6 million in proceeds from term loans entered into by our French subsidiary, Micromania SAS. During the 26 weeks ended August 3, 2019, cash used in financing activities was $508.7 million, consisting primarilyrevolving line of the redemption of our $350 million in aggregate principal of 5.5% unsecured senior notes, repurchases of our common stock totaling $62.9 million, open market repurchases of our 2021 Senior Notes totaling $53.6 million and dividends paid on our common stock of $40.5 million.credit.
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Sources of LiquidityLiquidity; Uses of Capital
We utilize cash generated from operations and have funds available to us under ourthe Revolver to cover seasonal fluctuations in cash flows and to support our various initiatives. Our cash and cash equivalents are carried at cost and consist primarily of time deposits with commercial banks.
Our asset-basedWe maintain the Revolver haswith a borrowing base capacity of $420 million and a maturity date of November 2022. As of August 1, 2020, ourThe Revolver hadalso includes a $200 million expansion feature and $50$100 million letter of credit sublimit, and allowedallows for an incremental $50 million first-in, last-out facility. The applicable margins for prime rate loans range from 0.25% to 0.50% and, for London Interbank Offered ("LIBO") rate loans, range from 1.25% to 1.50%. The Revolver is secured by substantially allAs of the assetsend of the Company.first quarter of 2021, based on our borrowing base and the assetsamounts reserved for outstanding letters of its domestic subsidiaries. We are required to pay a commitment fee of 0.25% for any unused portion of thecredit, total commitmentavailability under the Revolver. As of August 1, 2020, our applicable margins were 0.25% for prime rate loansRevolver after giving effect to the Availability Reduction was $99.9 million, and 1.25% for LIBO rate loans. Also as of AugustMay 1, 2020 we had $35.02021, no amounts were outstanding under the Revolver and $44.0 million of outstanding borrowings and $27.3 million of outstanding standby letters of credit were outstanding under ourthe Revolver.
The agreement governing ourSeparately from the Revolver, we maintain uncommitted facilities with certain lenders that provide for the issuance of letters of credit and the indentures governing our 2021 Senior Notes and 2023 Senior Notes place certain restrictions on us and our subsidiaries, including, among others, limitations on asset sales, additional liens, investments, incurrence of additional debt and share repurchases. In addition, the agreement governing our Revolver and the indentures governing our 2021 Senior Notes and 2023 Senior Notes contain customary events of default, including, among others, payment defaults, breaches of covenants and certain events of bankruptcy, insolvency and reorganization. The Revolver is also subject to a fixed charge coverage ratio covenant if excess availability is below certain thresholds. We are currently in compliance with all covenants under the indentures governing the 2021 Senior Notes and 2023 Senior Notes and the agreement governing our Revolver.
bank guarantees, at times supported by cash collateral. As of AugustMay 1, 2020, our 2021, Senior Noteswe had $38.2 million of outstanding letters of credit and 2023 Senior Notes had an aggregate principal amount outstandingother bank guarantees under facilities outside of $198.2 million and $216.4 million, respectively. Additionally, as of August 1, 2020, our term loans entered into by our French subsidiary, Micromania SAS, had an aggregate principal balance of €20.0 million.the Revolver.
See Note 6, “Debt,” to our unaudited consolidated financial statements"Debt," for additional information relatedinformation.
We may also fund our operating expenses and growth capital needs, as circumstances warrant, from sales of equity securities. The timing and amount of any sales of equity securities would depend on, among other factors, our capital needs and alternative sources and costs of capital available to us, market perceptions about us, and the then current trading price of our Revolver, French term loans,common equity. As discussed above, during the first quarter of fiscal 2021, Senior Noteswe sold 3,500,000 shares of common stock in the ATM Offering. We have used, and 2023 Senior Notes.
Our French subsidiary, Micromania SAS, also maintains a credit facility of €20.0intend to continue to use, the $551.7 million in net proceeds that allows it to obtain short term loans of 10 to 93 days in duration to support itswe generate from the ATM Offering for working capital needs. €10.0 millionand general corporate purposes, including funding our transformation initiatives and product category expansion efforts, repayment of the commitments expire in March 2021indebtedness, capital expenditures and the remaining €10.0 million expire in June 2021. Loans made undersatisfaction of our tax withholding obligations upon the credit facility accrue interestvesting of shares of restricted stock held by our executive officers and other employees.
Tax withholding obligations arise upon the vesting of shares of restricted stock and these obligations must be satisfied at a variable rate tiedthe time they arise through cash payments to the Euro Interbank offered Rate plus an applicable margin of 1.5% and are secured by a pledge of the bank account from which repayments of the loans are or will be made. As of August 1, 2020, the credit facility was undrawn and there were no outstanding borrowings under the facility.
Our Luxembourg subsidiary maintains a $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.taxing authorities. 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 August 1, 2020, there were no cash overdrafts outstanding under the Line of Credit and bank guarantees outstanding totaled $1.0 million.
On August 28, 2020, we entered into the fourth amendment (“Fourth Amendment”) to the credit agreement governing our Revolver (“Credit Agreement”) giving effect to certain amendments, including, but not limited to the following:
•Reduced the amount of the excess availability trigger that determines whethertax withholding obligations due upon the Companyvesting of shares of restricted stock is subject to a fixed charge coverage ratio covenantdependent on the price of 1.0:1.0 fromour shares of common stock on the greater of $30 million and 10% ofNew York Stock Exchange on the borrowing base to the greater of $12.5 million and 10% of the borrowing base;
•Increased the sublimit for the issuances of letters of credit under the Credit Agreement from $50 million to $100 million; and
•Increased the amount of letters of credit debt permitted to be issued separately from, and not pursuant to, the Credit Agreement from $25 million to (i) up to $150 million for letters of credit issued by borrowers/guarantors under the Credit Agreement and (ii) up to $75 million for letters of credit issued for the benefit of foreign subsidiaries, subject to the understanding that the outstanding amount of letters of credit issued under the Credit Agreement, combined with the outstanding amount of letters of credit otherwise permitted by the Credit Agreement cannot exceed $275 millionapplicable vesting date. As discussed within Part I, Item 1A, "Risk Factors" in the aggregate.
On the same day, we entered into a new letter of credit facility (the “LC Facility”) with Bank of America, N.A. (the “Lender”). The LC Facility provides for the issuance, at the Lender’s option and discretion, of letters of credit cash collateralized at 103% of the face amount thereof, in an amount not to exceed (i) $150 million through February 14, 2021 and (ii) $75 million from February 15, 2021 through August 31, 2021.our Annual Report on Form 10-K,
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we may elect to satisfy these tax withholding obligations by withholding and canceling a portion of the shares subject to vesting (sometimes referred to as "share withholding") and remitting cash to the tax authorities at the applicable statutory rates on behalf of the holder(s) of the applicable award. Depending on the price of our common stock on the vesting date, the amount of these cash payments due for taxes in respect of restricted shares that are scheduled to vest or that may be accelerated in connection with certain events (such as cessation of a grantee's employment) in the second quarter of fiscal 2021 could be substantial and could have a negative impact on our liquidity and ability to use funds for operational purposes. Our common stock price has recently experienced extreme price fluctuations. For illustrative purposes, assuming a stock price of $249.02 per share (the price of our shares of common stock on the New York Stock Exchange on June 1, 2021), we estimate that the aggregate amount of our tax withholding obligations on account of second quarter vesting events will be at least $74.6 million and could be up to $157.2 million depending on whether we arrange for share withholding in respect of vesting events anticipated to occur later in the quarter. The actual amount of the tax obligations and the number of shares to be canceled (or sold in the open market in the event the applicable employee were to arrange for broker-assisted sell-to-cover transactions in lieu of share withholding for shares that vest after June 9, 2021) could be higher or lower, depending on the price of our common stock upon vesting, the applicable tax withholding rates then in effect, the price at which any broker-assisted sell-to-cover transactions (if any) were to occur and the number (if any) of restricted stock awards that are forfeited prior to vesting.
CRITICAL ACCOUNTING POLICIES
Our unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and do not include all disclosures required under GAAP for complete financial statements. Preparation of these statements requires us to make judgments and estimates. Some accounting policies have a significant impact on amounts reported in these financial statements. For a summary of significant accounting policies and the means by which we develop estimates thereon, see “Part II—Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 20192020 Annual Report on Form 10-K. There have been no material changes to our critical accounting policies from those included in our 20192020 Annual Report on Form 10-K.
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
See Note 1 to our unaudited consolidated financial statements included in this Quarterly Report on Form 10-Q for a description of recent accounting pronouncements, including the expected dates of adoption and estimated effects, if any, on our consolidated financial statements.
OFF-BALANCE SHEET ARRANGEMENTS
We had no material off-balance sheet arrangements as of AugustMay 1, 2020.2021 other than those disclosed in Note 6, "Debt" of our unaudited consolidated financial statements.
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ITEM 3.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
There have been no material changes in the Company's quantitative disclosures about marketour risk factors as set forth in its 2019Item 1A. Risk Factors in our 2020 Annual Report on Form 10-K, except as described below.
The impact of the COVID-19 pandemic both in the United States and globally continues to cause uncertainty and volatility in financial markets, including interest rates and foreign currency exchange rates. The outbreak is expected to have a continued adverse impact on market conditions for the foreseeable future and to trigger a period of global economic slowdown with no known duration. See further discussion in Part I, Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Part II, Item 1A “Risk Factors” of this Report on Form 10-Q.10-K.
ITEM 4.    CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
The Company'sOur disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) are designed to provide reasonable assurance that the information required to be disclosed in the reports that it fileswe file or submitssubmit under the Exchange Act has been appropriately recorded, processed, summarized and reported on a timely basis and are effective in ensuring that such information is accumulated and communicated to management, including itsour principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure. The Company'sOur principal executive officer and principal financial officer, with assistance from other members of management, have reviewed the effectiveness of the Company'sour disclosure controls and procedures as of the end of the period covered by this report and, based on that evaluation, determined that itsour disclosure controls and procedures were effective as of AugustMay 1, 20202021 at the reasonable assurance level.
Changes in Internal Control Over Financial Reporting
In response to the COVID-19 pandemic, the CompanyThere has required certain employees, some of whom are involvednot been any change in the operation of the Company's internal controls over financial reporting, to work from home. Despite this change, there have been no changes in the Company’sour internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during theour first fiscal quarter ended August 1, 2020 that havehas materially affected, or areis reasonably likely to materially affect, the Company’sour internal control over financial reporting. The Company is continually monitoring and assessing the impact of COVID-19 on its internal controls to minimize any impact it may have on their design and operating effectiveness.
PART II — OTHER INFORMATION
ITEM 1.    LEGAL PROCEEDINGS
InThe matters under the ordinary coursecaption "Legal Proceedings" in Note 7 of its business, the Company is, from timeNotes to time, subject to various legal proceedings, including matters involving wage and hour employee class actions and consumer class actions. The Company may enter into discussions regarding settlement of these and other types of lawsuits, and may enter into settlement agreements, if it believes settlement isConsolidated Financial Statements included in the best interest of its stockholders. The Company does not believe that any such existing legal proceedings or settlements, individually or in the aggregate, will have a material effect
this Quarterly Report on its financial condition, results of operations or liquidity.Form 10-Q are incorporated by reference.

ITEM 1A.    RISK FACTORS
In light of recent developments relatingOur operations and financial results are subject to the COVID-19 pandemic, the Company amendedvarious risks and restated all risk factors that were includeduncertainties, including those described in item "1A. RiskPart I, Item 1A, "Risk Factors" of its 2019in our Annual Report on Form 10-K filed withfor the Securitiesyear ended January 30, 2021, which could adversely affect our business, financial condition, results of operations, cash flows, and Exchange Commission ("SEC") on March 27, 2020. A copythe trading price of the amendedour common and restatedcapital stock. There have been no material changes to our risk factors was provided in Exhibit 99.4since our 2020 Annual Report on Form 10-K.
ITEM 2.    UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
None.
ITEM 3.    DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4.    MINE SAFETY DISCLOSURES
Not applicable.
ITEM 5.    OTHER INFORMATION
Reference is made to the Current Report on Form 8-K the Companythat we filed with the SEC on the date of this Form 10-Q that disclosed that on June 5, 20209, 2021, we announced the appointment of Matthew Furlong, age 42, as our President and is incorporated herein by reference.

Chief Executive Officer, effective on or about June 21, 2021. Prior to joining us, Mr. Furlong served as Country Leader, Australia for Amazon.com, Inc. (“Amazon”) since September 2019 and in various other roles at Amazon since October 2012, including as Director, Technical Advisor, Amazon North America. Prior to joining Amazon, Mr. Furlong served in various roles at The Procter & Gamble Company focused on brand, marketing and sales strategies. In addition, duethe same Current Report on Form 8-K, we also announced the appointment of Mike Recupero, age 47, as our Chief Financial Officer, effective on or about July 12, 2021. Prior to the issuancejoining us, Mr. Recupero served as Chief Financial Officer of the 2023 Senior NotesNorth American Consumer business of Amazon since January 2021 after serving as Chief Financial Officer of the Prime Video business of Amazon since April 2019 and previously serving as Chief Financial Officer of the European Consumer business of Amazon since October 2016. Prior to these roles, Mr. Recupero served in connectionvarious other roles at Amazon focused on finance since joining Amazon in April 2004.
On May 26, 2021, we received a request from the Staff of the SEC for the voluntary production of documents and information concerning a SEC investigation into the trading activity in our securities and the securities of other companies. We are in the process of reviewing the request and producing the requested documents and intend to cooperate fully with the Exchange Offer settled on July 6, 2020, the CompanySEC Staff regarding this matter. This inquiry is providing the following new risk factors relatednot expected to its indebtedness:
The indenture governing our 2023 Senior Notes and our revolving credit facility restrict our current and future operations, particularly our ability to respond to changes or to take certain actions or take advantage of certain business opportunities.
The indenture governing our 2023 Senior Notes and our revolving credit facility contain a number of restrictive covenants that impose significant operating and financial restrictions on us and our subsidiaries and may limit our ability to engage in acts that may be in our long-term best interest, including restrictions on our ability to:
•incur, assume or permit to exist additional indebtedness or guaranty certain obligations;
•declare dividends, make payments or redeem or repurchase capital stock or make distributions in respect of capital stock;
•prepay, redeem or purchase certain indebtedness;
•issue certain preferred stock or similar equity securities;
•make loans and certain investments;adversely impact us.
3121

•sell assets;
•incur liens;
•engage in transactions with affiliates;
•enter into agreements restricting our subsidiaries’ ability to pay dividends; and
•engage in mergers, acquisitions and other business combinations.
In addition, the restrictive covenants applicable to our revolving credit facility require us to maintain a fixed charge coverage ratio covenant of 1.0:1.0 in the event that excess availability under the revolving credit facility is at any time less than the greater of (1) $30.0 million prior to August 28, 2020 ($12.5 million beginning on August 28, 2020) and (2) 10% of the lesser of the total commitment and the borrowing base. As of August 1, 2020, we would not have been in compliance with the fixed charge coverage ratio covenant if it were in effect and, therefore, our borrowing capacity was effectively reduced by $30.0 million. The impact of the COVID-19 pandemic on our financial performance may impair our ability to comply with the fixed charge coverage ratio covenant in the future, which would also impact our access to the availability under the revolving credit facility.
A breach of the covenants or restrictions under the indenture governing our 2023 Senior Notes or our revolving credit facility could result in an event of default under the applicable indebtedness. Such an event of default may allow the creditors to accelerate the related debt and may result in the acceleration of any other debt to which a cross-acceleration or cross-default provision applies. In addition, an event of default under the revolving credit facility would permit the lenders under our revolving credit facility to terminate all commitments to extend further credit under that facility. Furthermore, if we were unable to repay the amounts due and payable under our revolving credit facility, those lenders could proceed against the collateral granted to them to secure that indebtedness. In the event our lenders or noteholders accelerate the repayment of our borrowings, we and our subsidiaries may not have sufficient assets to repay that indebtedness. As a result of these restrictions, we may be:
•limited in how we conduct our business;
•unable to raise additional debt or equity financing necessary in order to operate during general economic or business downturns; or
•unable to compete effectively or to take advantage of new business opportunities.
These restrictions may affect our ability to grow in accordance with our strategy. In addition, our financial results, our substantial indebtedness and our credit ratings could adversely affect the availability and terms of our financing.
To service our indebtedness, we will require a significant amount of cash. We may not be able to generate sufficient cash flow to meet our debt service obligations or refinance our debt on favorable terms.
Our ability to generate sufficient cash flow from operations to make scheduled payments on our indebtedness, including without limitation any payments required to be made under our revolving credit facility or to holders of our 2021 Senior Notes and our 2023 Senior Notes, and to fund our operations, will depend on our ability to generate cash in the future. This, to a certain extent, is subject to general economic, financial, competitive, legislative, regulatory and other factors that are beyond our control. If we do not generate sufficient cash flow from operations to satisfy our debt obligations, including interest payments and the payment of principal at maturity, we may have to undertake alternative financing plans, such as refinancing or restructuring our debt, including the 2021 Senior Notes and the 2023 Senior Notes, selling assets, reducing or delaying capital investments or seeking to raise additional capital. We cannot provide assurance that any refinancing would be possible, that any assets could be sold, or, if sold, of the timing of the sales and the amount of proceeds realized from those sales, that additional financing could be obtained on acceptable terms, if at all, or if that additional financing would be permitted under the terms of our various debt instruments, then in effect.
Our inability to generate sufficient cash flow to satisfy our debt obligations, including the 2021 Senior Notes and the 2023 Senior Notes, or to refinance our obligations on commercially reasonable terms or on a timely basis, would have an negative impact on our business, results of operations and financial condition.
Despite current indebtedness levels, we and our subsidiaries may still be able to incur additional debt. This could further increase the risks associated with our leverage.
Although the indentures governing our 2021 Senior Notes and 2023 Senior Notes and our revolving credit facility agreement contain restrictions on the incurrence of additional indebtedness, these restrictions are subject to a number of qualifications and exceptions, and the additional indebtedness incurred in compliance with these restrictions could be substantial. Additionally, these restrictions will not prevent us from incurring obligations that do not constitute indebtedness. Such future indebtedness or obligations may have restrictions similar to, or more restrictive than, those included in the indentures for our 2021 Senior Notes and 2023 Senior Notes or our revolving credit facility agreement. The incurrence of additional indebtedness could impact our financial condition and results of operations.
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ITEM 6.    EXHIBITS
Exhibit
Number		DescriptionPreviously Filed as an Exhibit to and Incorporated by Reference FromDate Filed
4.110.1*
Indenture,Transition and Separation Agreement, dated as of July 6, 2020, by and amongMarch 21, 2021, between GameStop Corp. as Issuer, the Subsidiary Guarantors party thereto as Subsidiary.and James A. Bell.
Current Report on Form 8-KJuly 6, 2020February 23, 2021
4.210.2*
Form of 10.00% senior secured notes due 2023 (included in Exhibit 4.1).Transition and Separation Agreement, dated March 21, 2021, between GameStop Corp. and Frank M. Hamlin.
Current Report on Form 8-KJuly 6, 2020March 23.2021
4.310.3*
Fifth Supplemental Indenture dated as of June 17, 2020, to the Indenture dated as of March 9, 2016, byLetter Agreement between Jenna Owens and among GameStop Corp. as Issuer, the guarantors named therein and U.S. Bank National Association.dated March 23, 2021
Current Report on Form 8-KJuly 6, 2020March 23.2021
10.110.4*

Current Report on Form 8-KApril 19, 2021
10.5*Current Report on Form 8-KJune 4, 2020
10.2*
Letter Agreement between dated June 22, 2020, by and between Diana Saadeh-Jajeh and the Company.
Current Report on Form 8-KJuly 2, 2020
10.3
Intercreditor Agreement, dated July 6, 2020, by and among Bank of America, N.A., U.S. Bank National Association, each additional representative from time to time party thereto, and each of the Credit Parties thereto.
Current Report on Form 8-KJuly 6, 2020
10.4
Pledge and Security Agreement, dated as of July 6, 2020 by and among the Company, the subsidiary guarantors party thereto, and U.S. Bank National Association.
Current Report on Form 8-KJuly 6, 2020April 30, 2021
31.1
Certification of Chief Executive 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.
Filed herewith.
31.2
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.
Filed herewith.
32.1
Certification of Chief Executive Officer pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
Furnished herewith.
32.2
Certification of Chief Financial Officer pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
Furnished herewith.
101.INSXBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are imbeddedembedded within the inline XBRL document.Submitted electronically herewith.
101.SCHInline XBRL Taxonomy Extension SchemaSubmitted electronically herewith.
101.CALInline XBRL Taxonomy Extension Calculation LinkbaseSubmitted electronically herewith.
101.DEFInline XBRL Taxonomy Extension Definition LinkbaseSubmitted electronically herewith.
101.LABInline XBRL Taxonomy Extension Label LinkbaseSubmitted electronically herewith.
104Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).Submitted electronically herewith.
*This exhibit is a management or compensatory contract.

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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
GAMESTOP CORP.
By: /s/ JAMES A. BELLDiana Saadeh-Jajeh
 James A. BellName: Diana Saadeh-Jajeh
 ExecutiveTitle: Senior Vice President and Interim Chief Financial Officer
 (Principal Financial Officer)
Date: SeptemberJune 9, 20202021 
GAMESTOP CORP.
By:/s/    DIANA JAJEH
Diana Jajeh
Senior Vice President and Chief Accounting Officer
(Principal Accounting Officer)
Date: September 9, 2020

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