GameStop (GME) 10-K 30 Mar 10 2010 FY Annual report Financial data

Document and Entity Information

Document and Entity Information (USD $)
In Billions, except Share data	12 Months Ended Jan. 30, 2010	Mar. 25, 2010	Jul. 31, 2009
Document and Entity Information [Abstract]
Entity Registrant Name	GameStop Corp.
Entity Central Index Key	0001326380
Document Type	10-K
Document Period End Date	2010-01-30
Amendment Flag	false
Current Fiscal Year End Date	--01-30
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			3.6
Entity Common Stock, Shares Outstanding		152,824,100

Consolidated Balance Sheets

Consolidated Balance Sheets (USD $)
In Thousands	12 Months Ended Jan. 30, 2010	12 Months Ended Jan. 31, 2009
Current assets:
Cash and cash equivalents	$905,418	$578,141
Receivables, net	64,006	65,981
Merchandise inventories, net	1,053,553	1,075,792
Deferred income taxes - current	21,229	23,615
Prepaid expenses	59,434	59,101
Other current assets	23,664	15,411
Total current assets	2,127,304	1,818,041
Property and equipment:
Land	11,569	10,397
Buildings and leasehold improvements	522,965	454,651
Fixtures and equipment	711,477	619,845
Total property and equipment	1,246,011	1,084,893
Less accumulated depreciation and amortization	661,810	535,639
Net property and equipment	584,201	549,254
Goodwill, net	1,946,513	1,833,011
Other intangible assets	259,860	247,790
Other noncurrent assets	37,449	35,398
Total noncurrent assets	2,828,023	2,665,453
Total assets	4,955,327	4,483,494
Current liabilities:
Accounts payable	961,673	1,047,963
Accrued liabilities	632,103	498,253
Taxes payable	61,900	16,495
Total current liabilities	1,655,676	1,562,711
Senior notes payable, long-term portion, net	447,343	545,712
Deferred taxes	25,466	7,523
Other long-term liabilities	103,831	96,963
Total long-term liabilities	576,640	650,198
Total liabilities	2,232,316	2,212,909
Commitments and contingencies (Notes 11 and 12)
Stockholders' equity:
Preferred stock - authorized 5,000 shares; no shares issued or outstanding	0	0
Class A common stock - $.001 par value; authorized 300,000 shares; 158,662 and 163,843 shares outstanding, respectively	159	164
Additional paid-in-capital	1,210,539	1,307,453
Accumulated other comprehensive income (loss)	114,704	(57,522)
Retained earnings	1,397,755	1,020,490
Equity attributable to GameStop Corp. stockholders	2,723,157	2,270,585
Equity attributable to noncontrolling interest	(146)	0
Total equity	2,723,011	2,270,585
Total liabilities and stockholders' equity	$4,955,327	$4,483,494

1_Consolidated Balance Sheets

Consolidated Balance Sheets (Parenthetical)
Share data in Thousands	Jan. 30, 2010	Jan. 31, 2009
Stockholders' equity:
Preferred stock, shares authorized	5,000	5,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	0.001	0.001
Common stock, shares authorized	300,000	300,000
Common stock, shares outstanding	158,662	163,843

Consolidated Statements of Oper

Consolidated Statements of Operations (USD $)
In Thousands, except Per Share data	12 Months Ended Jan. 30, 2010		12 Months Ended Jan. 31, 2009		12 Months Ended Feb. 02, 2008
Consolidated Statements of Operations [Abstract]
Sales	$9,077,997		$8,805,897		$7,093,962
Cost of sales	6,643,345		6,535,762		5,280,255
Gross profit	2,434,652		2,270,135		1,813,707
Selling, general and administrative expenses	1,635,124		1,445,419		1,182,016
Depreciation and amortization	162,495		145,004		130,270
Merger-related expenses			4,593
Operating earnings	637,033		675,119		501,421
Interest income	(2,177)		(11,619)		(13,779)
Interest expense	45,354		50,456		61,553
Debt extinguishment expense	5,323		2,331		12,591
Earnings before income tax expense	588,533		633,951		441,056
Income tax expense	212,804		235,669		152,765
Consolidated net income	375,729		398,282		288,291
Net loss attributable to noncontrolling interests	1,536
Consolidated net income attributable to GameStop	$377,265		$398,282		$288,291
Basic net income per common share	2.29	[1]	2.44	[1]	1.82	[1]
Diluted net income per common share	2.25	[1]	2.38	[1]	1.75	[1]
Weighted average shares of common stock - basic	164,525		163,190		158,226
Weighted average shares of common stock - diluted	167,875		167,671		164,844
[1]Basic net income per share and diluted net income per share are calculated based on consolidated net income attributable to GameStop.

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders Equity (USD $)
In Thousands	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income	Retained Earnings	Noncontrolling Interest	Total
Beginning Balance, Shares at Jan. 28, 2006	152,305
Beginning Balance at Jan. 28, 2006	$152	$1,021,903	$3,227
Cumulative effect of change in accounting principle				(16,679)		(16,679)
Comprehensive income:
Ending Balance at Feb. 03, 2007	152	1,021,903	3,227	333,917		1,359,199
Ending Balance, Shares at Feb. 03, 2007	152,305
Comprehensive income:
Net income (loss) for the 52 weeks ended February 2, 2008, January 31, 2009 and January 30, 2010 respectively				288,291		288,291
Foreign currency translation			28,376			28,376
Total comprehensive income						316,667
Stock-based compensation		26,911				26,911
Exercise of employee stock options and issuance of shares upon vesting of restricted stock grants (including tax benefit/ (expense) of $94,786, $37,562, $(310) for the 52 weeks ended February 2, 2008, January 31, 2009 and January 30, 2010, respectively)	9	159,660				159,669
Exercise of employee stock options and issuance of shares upon vesting of restricted stock grants, shares	8,702
Ending Balance at Feb. 02, 2008	161	1,208,474	31,603	622,208		1,862,446
Ending Balance, Shares at Feb. 02, 2008	161,007
Comprehensive income:
Net income (loss) for the 52 weeks ended February 2, 2008, January 31, 2009 and January 30, 2010 respectively				398,282		398,282
Foreign currency translation			(89,125)			(89,125)
Total comprehensive income						309,157
Stock-based compensation		35,354				35,354
Exercise of employee stock options and issuance of shares upon vesting of restricted stock grants (including tax benefit/ (expense) of $94,786, $37,562, $(310) for the 52 weeks ended February 2, 2008, January 31, 2009 and January 30, 2010, respectively)	3	63,625				63,628
Exercise of employee stock options and issuance of shares upon vesting of restricted stock grants, shares	2,836
Ending Balance at Jan. 31, 2009	164	1,307,453	(57,522)	1,020,490		2,270,585
Ending Balance, Shares at Jan. 31, 2009	163,843
Purchase of subsidiary shares from noncontrolling interest		(5,124)			1,390	(3,734)
Comprehensive income:
Net income (loss) for the 52 weeks ended February 2, 2008, January 31, 2009 and January 30, 2010 respectively				377,265	(1,536)	375,729
Foreign currency translation			172,226			172,226
Total comprehensive income						547,955
Stock-based compensation		37,811				37,811
Purchase of treasury stock	(6)	(122,989)				(122,995)
Purchase of treasury stock, shares	(6,115)
Exercise of employee stock options and issuance of shares upon vesting of restricted stock grants (including tax benefit/ (expense) of $94,786, $37,562, $(310) for the 52 weeks ended February 2, 2008, January 31, 2009 and January 30, 2010, respectively)	1	(6,612)				(6,611)
Exercise of employee stock options and issuance of shares upon vesting of restricted stock grants, shares	934
Ending Balance at Jan. 30, 2010	$159	$1,210,539	$114,704	$1,397,755	($146)	$2,723,011
Ending Balance, Shares at Jan. 30, 2010	158,662

2_Consolidated Statements of Ch

Consolidated Statements of Changes in Stockholders Equity (Parenthetical) (USD $)
In Thousands	12 Months Ended Jan. 30, 2010	12 Months Ended Jan. 31, 2009	12 Months Ended Feb. 02, 2008
Tax benefit (expense) for exercise of employee stock options and issuance of shares upon vesting of restricted stock grants	($310)	$37,562	$94,786
Additional Paid-in Capital
Tax benefit (expense) for exercise of employee stock options and issuance of shares upon vesting of restricted stock grants	($310)	$37,562	$94,786

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (USD $)
In Thousands	12 Months Ended Jan. 30, 2010	12 Months Ended Jan. 31, 2009	12 Months Ended Feb. 02, 2008
Cash flows from operating activities:
Consolidated net income	$375,729	$398,282	$288,291
Adjustments to reconcile net earnings to net cash flows provided by operating activities:
Depreciation and amortization (including amounts in cost of sales)	164,126	146,363	131,277
Provision for inventory reserves	48,890	42,979	51,879
Amortization and retirement of deferred financing fees and issue discounts	5,003	3,735	6,831
Stock-based compensation expense	37,811	35,354	26,911
Deferred income taxes	(1,210)	(24,701)	(13,151)
Excess tax (benefits) expense realized from exercise of stock-based awards	362	(34,174)	(93,322)
Loss on disposal of property and equipment	4,377	5,193	8,205
Changes in other long-term liabilities	7,573	8,337	14,021
Change in the value of foreign exchange contracts	(3,891)	9,992	(8,575)
Changes in operating assets and liabilities, net
Receivables, net	4,217	(2,901)	(19,903)
Merchandise inventories	29,602	(209,442)	(143,525)
Prepaid expenses and other current assets	2,040	(10,111)	(3,590)
Prepaid income taxes and accrued income taxes payable	54,556	43,864	121,014
Accounts payable and accrued liabilities	(85,012)	136,465	127,683
Net cash flows provided by operating activities	644,173	549,235	494,046
Cash flows from investing activities:
Purchase of property and equipment	(163,759)	(183,192)	(175,569)
Acquisitions, net of cash acquired	(8,357)	(630,706)	1,061
Other	(15,130)	(6,974)	(2,116)
Net cash flows used in investing activities	(187,246)	(820,872)	(176,624)
Cash flows from financing activities:
Repurchase of notes payable	(100,000)	(30,000)	(270,000)
Purchase of treasury shares	(58,380)
Borrowings from the revolver	115,000
Repayment of revolver borrowings	(115,000)
Borrowings for acquisition		425,000
Repayments of acquisition borrowings		(425,000)	(12,173)
Issuance of shares relating to stock options	4,459	28,950	64,883
Excess tax benefits (expense) realized from exercise of stock-based awards	(362)	34,174	93,322
Other	(134)	(3,500)	(263)
Net cash flows provided by (used in) financing activities	(154,417)	29,624	(124,231)
Exchange rate effect on cash and cash equivalents	24,767	(37,260)	11,820
Net increase (decrease) in cash and cash equivalents	327,277	(279,273)	205,011
Cash and cash equivalents at beginning of period	578,141	857,414	652,403
Cash and cash equivalents at end of period	$905,418	$578,141	$857,414

Summary of Significant Accounti

Summary of Significant Accounting Policies
	12 Months Ended Jan. 30, 2010
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	1. Summary of Significant Accounting Policies Background GameStop Corp. (together with its predecessor companies, GameStop, we, our, or the Company) is the worlds largest retailer of video game systems and software and PC entertainment software and related accessories primarily through its GameStop and EB Games stores. We also operate electronic commerce Web sites www.gamestop.com, www.ebgames.com.au, www.gamestop.ca, www.gamestop.it, and www.micromania.fr, and publish Game Informer Magazine. The Companys stores, which totaled 6,450 at January30, 2010, are located in major regional shopping malls and strip centers. The Company operates in four business segments, which are the United States, Australia, Canada and Europe. The Company is a Delaware corporation, formerly known as GSC Holdings Corp., and has grown through a business combination (the EB merger) of GameStop Holdings Corp., formerly known as GameStop Corp., and Electronics Boutique Holdings Corp. (EB), which was completed on October8, 2005. The Company also has grown through acquisitions, including the purchase in November 2008 of SFMI Micromania SAS (Micromania), a leading retailer of video and computer games in France. Basis of Presentation and Consolidation Our consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and its majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. All dollar and share amounts in the consolidated financial statements and notes to the consolidated financial statements are stated in thousands unless otherwise indicated. The Companys fiscal year is composed of the 52 or 53weeks ending on the Saturday closest to the last day of January. Fiscal 2009 consisted of the 52weeks ended on January30, 2010. Fiscal 2008 consisted of the 52weeks ended on January31, 2009. Fiscal 2007 consisted of the 52weeks ended on February2, 2008. The Companys operating results for fiscal 2009 include 52weeks of Micromanias results and the operating results for fiscal 2008 include 11weeks of Micromanias results. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management 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, management has made its best estimates and judgments of certain amounts included in the financial statements, giving due consideration to materiality. Changes in the estimates and assumptions used by management could have significant impact on the Companys financial results. Actual results could differ from those estimates. Reclassifications Certain reclassifications have been made to conform the prior period data to the current year presentation. Cash and Cash Equivalents The Company considers all short-term, highly-l

Acquisitions

Acquisitions
	12 Months Ended Jan. 30, 2010
Acquisitions [Abstract]
Acquisitions	2. Acquisitions On November17, 2008, GameStop France SAS, a wholly-owned subsidiary of the Company, completed the acquisition of substantially all of the outstanding capital stock of Micromania for $580,407, net of cash acquired. Micromania is a leading retailer of video and computer games in France with 368 locations, 328 of which were operating upon acquisition. The Company funded the transaction with cash on hand, funds drawn against its existing $400,000 credit agreement (the Revolver) totaling $275,000, and term loans totaling $150,000 under a junior term loan facility (the Term Loans). As of January31, 2009, all of the borrowings against the Revolver and the Term Loans have been repaid. The purpose of the acquisition was to expand the Companys presence in Europe. The impact of the acquisition on the Companys results of operations, as if the acquisition had been completed as of the beginning of the periods presented, is not significant. The consolidated financial statements include the results of Micromania from the date of acquisition and are reported in the European segment. The purchase price has been allocated based on estimated fair values as of the acquisition date. The purchase price was allocated as follows as of November17, 2008: November17, 2008 (In thousands) Current assets $ 187,662 Property, plant equipment 34,164 Goodwill 415,258 Intangible assets: Tradename 131,560 Leasehold rights and interests 103,955 Total intangible assets 235,515 Other long-term assets 7,786 Current liabilities (223,171 ) Long-term liabilities (76,807 ) Total purchase price $ 580,407 In determining the purchase price allocation, management considered, among other factors, the Companys intention to use the acquired assets. The total weighted-average amortization period for the intangible assets, excluding goodwill and the Micromania tradename, is approximately ten years. The intangible assets are being amortized based upon the pattern in which the economic benefits of the intangible assets are being utilized, with no expected residual value. None of the goodwill is deductible for income tax purposes. Note8 provides additional information concerning goodwill and intangible assets. Merger-related expenses totaling $4,593 shown in the fiscal 2008statements of operations include a net loss related to the change in foreign exchange rates related to the funding of the Micromania acquisition and other costs considered to be of a one-time or short-term nature which are included in operating earnings. The acquisition of Micromania is an important part of the Companys European and overall growth strategy and gives the Company an immediate entrance into the second largest video game market in Europe. The amount the Company paid in excess of the fair value of the net assets acquired was primarily for (i)the expected future cash flows derived from the existing business and its infrastruc

Vendor Arrangements

Vendor Arrangements
	12 Months Ended Jan. 30, 2010
Vendor Arrangements [Abstract]
Vendor Arrangements	3. Vendor Arrangements The Company and approximately 50 of its vendors participate in cooperative advertising programs and other vendor marketing programs in which the vendors provide the Company with cash consideration in exchange for marketing and advertising the vendors products. The Companys accounting for cooperative advertising arrangements and other vendor marketing programs results in a portion of the consideration received from the Companys vendors reducing the product costs in inventory rather than as an offset to the Companys marketing and advertising costs. The consideration serving as a reduction in inventory is recognized in cost of sales as inventory is sold. The amount of vendor allowances to be recorded as a reduction of inventory was determined by calculating the ratio of vendor allowances in excess of specific, incremental and identifiable advertising and promotional costs to merchandise purchases. The Company then applied this ratio to the value of inventory in determining the amount of vendor reimbursements to be recorded as a reduction to inventory reflected on the balance sheet. The cooperative advertising programs and other vendor marketing programs generally cover a period from a few days up to a few weeks and include items such as product catalog advertising, in-store display promotions, Internet advertising, co-op print advertising, product training and promotion at the Companys annual store managers conference. The allowance for each event is negotiated with the vendor and requires specific performance by the Company to be earned. Specific, incremental and identifiable advertising and promotional costs were $92,952, $92,083 and $76,074 in the 52week periods ended January30, 2010, January31, 2009 and February2, 2008, respectively. Vendor allowances received in excess of advertising expenses were recorded as a reduction of cost of sales of $116,877, $125,115 and $92,425 for the 52week periods ended January30, 2010, January31, 2009 and February2, 2008, respectively. The amounts deferred as a reduction in inventory were $654 and $3,193 for the 52weeks ended January30, 2010 and January31, 2009, respectively. The amount recognized as income related to the capitalization of excess vendor allowances was $6,113 for the 52weeks ended February2, 2008.

Computation of Net Income per C

Computation of Net Income per Common Share
	12 Months Ended Jan. 30, 2010
Computation of Net Income per Common Share [Abstract]
Computation of Net Income per Common Share	4. Computation of Net Income per Common Share As of February3, 2007, the Company had two classes of common stock. Subsequent to February3, 2007, the Company completed the conversion of ClassB common stock to ClassA common stock and the Stock Split and now has only ClassA common stock outstanding. A reconciliation of shares used in calculating basic and diluted net income per common share is as follows: 52 Weeks 52 Weeks 52 Weeks Ended Ended Ended January30, January31, February2, 2010 2009 2008 (In thousands, except per share data) Net income attributable to GameStop $ 377,265 $ 398,282 $ 288,291 Weighted average common shares outstanding 164,525 163,190 158,226 Dilutive effect of options and warrants on common stock 3,350 4,481 6,618 Common shares and dilutive potential common shares 167,875 167,671 164,844 Net income per common share: Basic $ 2.29 $ 2.44 $ 1.82 Diluted $ 2.25 $ 2.38 $ 1.75 The following table contains information on restricted shares and options to purchase shares of ClassA common stock which were excluded from the computation of diluted earnings per share because they were anti-dilutive: Anti- Range of Dilutive Exercise Expiration Shares Prices Dates (In thousands, except per share data) 52 Weeks Ended January30, 2010 3,218 $ 26.02 - 49.95 2011 - 2019 52 Weeks Ended January31, 2009 2,473 $ 26.68 - 49.95 2010 - 2018 52 Weeks Ended February2, 2008

Fair Value Measurements and Fin

Fair Value Measurements and Financial Instruments
	12 Months Ended Jan. 30, 2010
Fair Value Measurements and Financial Instruments [Abstract]
Fair Value Measurements and Financial Instruments	5. Fair Value Measurements and Financial Instruments The Company defines fair value 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. Fair value accounting guidance applies to our forward exchange contracts, foreign currency options and cross-currency swaps (together, the Foreign Currency Contracts), Company-owned life insurance policies with a cash surrender value and certain nonqualified deferred compensation liabilities that are measured at fair value on a recurring basis in periods subsequent to initial recognition. Fair value accounting guidance requires 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. Level1 inputs are quoted prices in active markets for identical assets or liabilities. Level2 inputs are observable inputs other than quoted prices included within Level1 for the asset or liability, either directly or indirectly through market-corroborated inputs. Level3 inputs are unobservable inputs for the asset or liability reflecting our assumptions about pricing by market participants. We value our Foreign Currency Contracts, Company-owned life insurance policies with cash surrender values and certain nonqualified deferred compensation liabilities based on Level2 inputs using quotations provided by major market news services, such as Bloomberg and The Wall Street Journal, 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. When appropriate, valuations are adjusted to reflect credit considerations, generally based on available market evidence. The following table provides the fair value of our assets and liabilities measured on a recurring basis and recorded on our consolidated balance sheets, in thousands: January30, 2010 January31, 2009 Level 2 Level 2 Assets Foreign Currency Contracts $ 20,062 $ 12,104 Company-owned life insurance 2,584 2,134 Total assets $ 22,646 $ 14,238 Liabilities Foreign Currency Contracts $ 8,991 $ 11,766 Nonqualified deferred compensation 762 905 Total liabilities $ 9,753 $ 12,671 The Company uses Foreign Currency Contracts to manage currency risk primarily related to intercompany loans denominated in non-functional currencies and certain foreign currency assets and liabilities. 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 l

Receivables, Net

Receivables, Net
	12 Months Ended Jan. 30, 2010
Receivables, Net [Abstract]
Receivables, Net	6. Receivables, Net Receivables consist primarily of bankcard receivables and other receivables. Other receivables include receivables from Game Informer Magazine advertising customers, receivables from landlords for tenant allowances and receivables from vendors for merchandise returns, vendor marketing allowances and various other programs. An allowance for doubtful accounts has been recorded to reduce receivables to an amount expected to be collectible. Receivables consisted of the following: January30, January31, 2010 2009 (In thousands) Bankcard receivables $ 51,460 $ 45,650 Other receivables 15,931 24,097 Allowance for doubtful accounts (3,385 ) (3,766 ) Total receivables, net $ 64,006 $ 65,981

Accrued Liabilities

Accrued Liabilities
	12 Months Ended Jan. 30, 2010
Accrued Liabilities [Abstract]
Accrued Liabilities	7. Accrued Liabilities Accrued liabilities consisted of the following: January30, January31, 2010 2009 (In thousands) Customer liabilities $ 199,175 $ 163,904 Deferred revenue 61,203 42,936 Accrued rent 18,690 20,760 Accrued interest 15,862 18,416 Employee compensation and related taxes 89,771 83,475 Other taxes 63,692 61,434 Settlement of treasury share purchases 64,615 Other accrued liabilities 119,095 107,328 Total accrued liabilities $ 632,103 $ 498,253

Goodwill, Intangible Assets and

Goodwill, Intangible Assets and Deferred Financing Fees
	12 Months Ended Jan. 30, 2010
Goodwill, Intangible Assets and Deferred Financing Fees [Abstract]
Goodwill, Intangible Assets and Deferred Financing Fees	8. Goodwill, Intangible Assets and Deferred Financing Fees The changes in the carrying amount of goodwill for the Companys business segments for the 52weeks ended January31, 2009 and the 52weeks ended January30, 2010 were as follows: United States Canada Australia Europe Total (In thousands) Balance at February2, 2008 $ 1,096,622 $ 116,818 $ 147,224 $ 41,776 $ 1,402,440 Goodwill acquired, net 423 459,244 459,667 Foreign currency translation adjustment (4,847 ) (22,084 ) (2,165 ) (29,096 ) Balance at January31, 2009 1,096,622 111,971 125,563 498,855 1,833,011 Goodwill acquired, net 3,763 2,561 6,324 Foreign currency translation adjustment (220 ) 16,589 48,564 42,245 107,178 Balance at January30, 2010 $ 1,100,165 $ 128,560 $ 174,127 $ 543,661 $ 1,946,513 There were no impairments to goodwill during the 52weeks ended January30, 2010 and January31, 2009. Intangible assets consist of point-of-sale software and amounts attributed to favorable leasehold interests acquired in the EB merger and Micromania acquisition and are included in other non-current assets in the consolidated balance sheet. The tradename acquired in the Micromania acquisition in the amount of $133,231 has been determined to be an indefinite lived intangible asset and is therefore not subject to amortization. The total weighted-average amortization period for the remaining intangible assets, excluding goodwill, is approximately ten years. The intangible assets are being amortized based upon the pattern in which the economic benefits of the intangible assets are being utilized, with no expected residual value. The deferred financing fees associated with the Companys revolving credit facility and senior notes issued in connection with the financing of the EB merger are included in other noncurrent assets in the consolidated balance sheet. The deferred financing fees are being amortized over five and seven years to match the terms of the revolving credit facility and the senior notes, respectively. The changes in the carrying amount of deferred financing fees and other intangible assets for the 52weeks ended January31, 2009 and January30, 2010 were as follows: Deferred Other Financing Fees Intangible Assets (In thousands) Balance at February2, 2008 $ 8,963 $ 14,214 Addition for revolving credit facility amendment 1,025 Addition for term loan facility fee 2,525 Write-off of deferred financi

Debt

Debt
	12 Months Ended Jan. 30, 2010
Debt [Abstract]
Debt	9. Debt In October 2005, the Company entered into a five-year, $400,000 Credit Agreement (the Revolver), including a $50,000 letter of credit sub-limit, secured by the assets of the Company and its U.S.subsidiaries. The Revolver places certain restrictions on the Company and its subsidiaries, including limitations on asset sales, additional liens and the incurrence of additional indebtedness. In April 2007, the Company amended the Revolver to extend the maturity date from October11, 2010 to April25, 2012, reduce the LIBO interest rate margin, reduce and fix the rate of the unused commitment fee and modify or delete certain other covenants. The extension of the Revolver to 2012 reduces our exposure to the current tightening in the credit markets. The availability under the Revolver is limited to a borrowing base which allows the Company to borrow up to the lesser of (x)approximately 70% of eligible inventory and (y)90% of the appraisal value of the inventory, in each case plus 85% of eligible credit card receivables, net of certain reserves. Letters of credit reduce the amount available to borrow by their face value. The Companys ability to pay cash dividends, redeem options and repurchase shares is generally prohibited, except that if availability under the Revolver is, or will be after any such payment, equal to or greater than 25% of the borrowing base, the Company may repurchase its capital stock and pay cash dividends. In addition, in the event that credit extensions under the Revolver at any time exceed 80% of the lesser of the total commitment or the borrowing base, the Company will be subject to a fixed charge coverage ratio covenant of 1.5:1.0. The per annum interest rate on the Revolver is variable and, at the Companys option, is calculated by applying a margin of (1)0.0% to 0.25% above the higher of the prime rate of the administrative agent or the federal funds effective rate plus 0.50% or (2)1.00% to 1.50% above the LIBO rate. The applicable margin is determined quarterly as a function of the Companys consolidated leverage ratio. As of January30, 2010, the applicable margin was 0.0% for prime rate loans and 1.00% for LIBO rate loans. 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. During the 2009 fiscal year, the Company borrowed and repaid $115,000 under the Revolver. As of January30, 2010, there were no borrowings outstanding under the Revolver and letters of credit outstanding totaled $8,821. In September 2007, the Companys Luxembourg subsidiary entered into a discretionary $20,000 Uncommitted Line of Credit (the Line of Credit) with Bank of America. There is no term associated with the Line of Credit and Bank of America may withdraw the facility at any time without notice. The Line of Credit will be made available to the Companys 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 January30, 2010, there were no cash overdrafts outstanding under the Line of Credit and

Leases

Leases
	12 Months Ended Jan. 30, 2010
Leases [Abstract]
Leases	10. Leases The Company leases retail stores, warehouse facilities, office space and equipment. These are generally leased under noncancelable agreements that expire at various dates through 2034 with various renewal options for additional periods. The agreements, which have been classified as operating leases, generally provide for minimum and, in some cases, percentage rentals and require the Company to pay all insurance, taxes and other maintenance costs. Leases with step rent provisions, escalation clauses or other lease concessions are accounted for on a straight-line basis over the lease term, which includes renewal option periods when the Company is reasonably assured of exercising the renewal options and includes rent holidays (periods in which the Company is not obligated to pay rent). The Company does not have leases with capital improvement funding. Percentage rentals are based on sales performance in excess of specified minimums at various stores. Approximate rental expenses under operating leases were as follows: 52 Weeks 52 Weeks 52 Weeks Ended Ended Ended January30, January31, February2, 2010 2009 2008 (In thousands) Minimum $ 354,310 $ 303,727 $ 255,259 Percentage rentals 22,580 22,927 19,968 $ 376,890 $ 326,654 $ 275,227 Future minimum annual rentals, excluding percentage rentals, required under leases that had initial, noncancelable lease terms greater than one year, as of January30, 2010 are approximately: Year Ended Amount (In thousands) January 2011 $ 338,745 January 2012 282,537 January 2013 228,683 January 2014 160,224 January 2015 100,420 Thereafter 154,933 $ 1,265,542

Commitments and Contingencies

Commitments and Contingencies
	12 Months Ended Jan. 30, 2010
Commitments and Contingencies [Abstract]
Commitments and Contingencies	11. Commitments and Contingencies Contingencies On February14, 2005, and as amended, Steve Strickland, as personal representative of the Estate of ArnoldStrickland, deceased, Henry Mealer, as personal representative of the Estate of Ace Mealer, deceased, and Willie Crump, as personal representative of the Estate of James Crump, deceased, filed a wrongful death lawsuit against GameStop, Sony, Take-Two Interactive, Rock Star Games and Wal-Mart (collectively, the Defendants) and DevinMoore, alleging that Defendants actions in designing, manufacturing, marketing and supplying Defendant Moore with violent video games were negligent and contributed to Defendant Moore killing Arnold Strickland, AceMealer and James Crump. Moore was found guilty of capital murder in a criminal trial and was sentenced to death in August 2005. Plaintiffs counsel named an expert who plaintiffs indicated would testify that violent video games were a substantial factor in causing the murders. The testimony of plaintiffs psychologist expert was heard by the Court on October30, 2008, and the motion to exclude that testimony was argued on December12, 2008. On July30, 2009, the trial court entered its Order granting summary judgment for all defendants, dismissing the case with prejudice on the grounds that plaintiffs experts testimony did not satisfy the Frye standard for expert admissibility. Subsequent to the entry of the Order, the plaintiffs filed a notice of appeal. The Company does not believe there is sufficient information to estimate the amount of the possible loss, if any, resulting from the lawsuit if the plaintiffs appeal is successful. In the ordinary course of the Companys business, the Company is, from time to time, subject to various other legal proceedings, including matters involving wage and hour employee 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 is in the best interest of the Companys shareholders. Management does not believe that any such other legal proceedings or settlements, individually or in the aggregate, will have a material adverse effect on the Companys financial condition, results of operations or liquidity. In 2003, the Company purchased a 51% controlling interest in GameStop Group Limited, which operates stores in Ireland and the United Kingdom. Under the terms of the purchase agreement, the minority interest owners have the ability to require the Company to purchase their remaining shares in incremental percentages at a price to be determined based partially on the Companys price to earnings ratio and GameStop Group Limiteds earnings. Shares representing approximately 16% were purchased in June 2008 and in July 2009 an additional 16% was purchased, bringing the Companys total interest in GameStop Group Limited to approximately 84%. The Company already consolidates the results of GameStop Group Limited; therefore, any additional amounts acquired will not have a material effect on the Companys financial statements.

Income Taxes

Income Taxes
	12 Months Ended Jan. 30, 2010
Income Taxes [Abstract]
Income Taxes	12. Income Taxes The provision for income tax consisted of the following: 52 Weeks 52 Weeks 52 Weeks Ended Ended Ended January30, January31, February2, 2010 2009 2008 (In thousands) Current tax expense: Federal $ 162,339 $ 201,438 $ 120,606 State 12,119 18,933 13,436 Foreign 39,556 39,999 31,874 214,014 260,370 165,916 Deferred tax expense (benefit): Federal 219 (15,858 ) (2,582 ) State 1,496 (7,468 ) (1,805 ) Foreign (2,925 ) (1,375 ) (8,764 ) (1,210 ) (24,701 ) (13,151 ) Total income tax expense $ 212,804 $ 235,669 $ 152,765 The components of earnings before income tax expense consisted of the following: 52 Weeks 52 Weeks 52 Weeks Ended Ended Ended January30, January31, February2, 2010 2009 2008 (In thousands) United States $ 508,961 $ 532,787 $ 364,929 International 79,572 101,164 76,127 Total $ 588,533 $ 633,951 $ 441,056 The difference in income tax provided and the amounts determined by applying the statutory rate to income before income taxes resulted from the following: 52 Weeks 52 Weeks 52 Weeks Ended Ended Ended January30, January31, February2, 2010 2009 2008 Federal statutory tax rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal effect 1.5 1.1 0.5 Foreign income taxes 1.5 0.5 (0.8 ) Other (including permanent differences) (1.8 ) 0.6 (0.1 ) 36.2 % 37.2 % 34.6 % The Companys effective tax rate decreased from 37.2% in the 52weeks ended January31, 2009 to 36.2% in the 52weeks ended January30, 2010, primarily due to audit settlements and statute expirations. The Companys effective tax rate increased from 34.6% in the 52weeks ended February2, 2008 to 37.2% in the 52weeks ended January31, 2009, primarily due to expenses related to the mergers and acquisitions and associated corporate structuring. Valuation allowances on foreign net operating l

Stock Incentive Plan

Stock Incentive Plan
	12 Months Ended Jan. 30, 2010
Stock Incentive Plan [Abstract]
Stock Incentive Plan	13. Stock Incentive Plan Effective June 2009, the Companys stockholders voted to amend the Third Amended and Restated 2001 Incentive Plan (the Incentive Plan) to provide for issuance under the Incentive Plan of the Companys ClassA common stock. The Incentive Plan provides a maximum aggregate amount of 46,500shares of ClassA common stock with respect to which options may be granted and provides for the granting of incentive stock options, non-qualified stock options, and restricted stock, which may include, without limitation, restrictions on the right to vote such shares and restrictions on the right to receive dividends on such shares. The options to purchase ClassA common shares are issued at fair market value of the underlying shares on the date of grant. In general, the options vest and become exercisable ratably over a three-year period, commencing one year after the grant date, and expire ten years from issuance. Shares issued upon exercise of options are newly issued shares. Stock Options A summary of the status of the Companys stock options is presented below: Weighted- Average Exercise Shares Price (Thousands of shares) Balance, February3, 2007 18,756 $ 8.64 Granted 939 $ 26.68 Exercised (8,480 ) $ 7.65 Forfeited (350 ) $ 20.16 Balance, February2, 2008 10,865 $ 10.60 Granted 1,362 $ 49.95 Exercised (2,279 ) $ 12.70 Forfeited (257 ) $ 36.12 Balance, January31, 2009 9,691 $ 14.96 Granted 1,419 $ 26.02 Exercised (302 ) $ 14.77 Forfeited (226 ) $ 35.61 Balance, January30, 2010 10,582 $ 16.00 The following table summarizes information as of January30, 2010 concerning outstanding and exercisable options: Options Outstanding Options Exercisable Weighted- Weighted- Weighted- Number Average Average Number Average Outstanding Remaining Contractual Exercisable Exercise Range of Exercise Prices (000s) Life (Years) Price (000s) Price $1.76 - $2.25 3,507 1.36 $ 2.25 3,507 $ 2.25 $5.90 - $8.24 235 3.67 $ 6.99 235 $ 6.99 $9.00 - $10.63 2,291 4.24 $ 9.70 2,291 $ 9.70 $17.94 - $20.68 1,477 5.96 $ 20.24 1,477 $ 20.24 $26.02 - $26.68 1,929 8.40 $ 26.22 372 $ 26.68 $49.95 - $49.

Employees Defined Contribution

Employees Defined Contribution Plan
	12 Months Ended Jan. 30, 2010
Employees' Defined Contribution Plan [Abstract]
Employees' Defined Contribution Plan	14. Employees Defined Contribution Plan The Company sponsors a defined contribution plan (the Savings Plan) for the benefit of substantially all of its U.S.employees who meet certain eligibility requirements, primarily age and length of service. The Savings Plan allows employees to invest up to 60%, up to a maximum of $16.5 a year, of their eligible gross cash compensation invested on a pre-tax basis. The Companys optional contributions to the Savings Plan are generally in amounts based upon a certain percentage of the employees contributions. The Companys contributions to the Savings Plan during the 52weeks ended January30, 2010, January31, 2009 and February2, 2008, were $3,323, $2,736 and $2,235, respectively.

Certain Relationships and Relat

Certain Relationships and Related Transactions
	12 Months Ended Jan. 30, 2010
Certain Relationships and Related Transactions [Abstract]
Certain Relationships and Related Transactions	15. Certain Relationships and Related Transactions The Company operates departments within seven bookstores operated by Barnes Noble, a related party through a common stockholder who is the Chairman of the Board of Directors of Barnes Noble and a member of the Companys Board of Directors. The Company pays a license fee to Barnes Noble on the gross sales of such departments. The Company deems the license fee to be reasonable and based upon terms equivalent to those that would prevail in an arms length transaction. During the 52weeks ended January30, 2010, January31, 2009 and February2, 2008, these charges amounted to $1,077, $1,276 and $1,221, respectively. In May 2005, the Company entered into an arrangement with Barnes Noble under which www.gamestop.com became the exclusive specialty video game retailer listed on www.bn.com, Barnes Nobles e-commerce site. Under the terms of this agreement, the Company pays a fee to Barnes Noble for sales of video game or PC entertainment products sold through www.bn.com. For the 52weeks ended January30, 2010, January31, 2009 and February2, 2008, the fee to Barnes Noble totaled $374, $498 and $382, respectively. Until June 2005, GameStop participated in Barnes Nobles workers compensation, property and general liability insurance programs. The costs incurred by Barnes Noble under these programs were allocated to GameStop based upon total payroll expense, property and equipment, and insurance claim history of GameStop. Management deemed the allocation methodology to be reasonable. Although GameStop secured its own insurance coverage, costs will likely continue to be incurred by Barnes Noble on insurance claims which were incurred under its programs prior to June 2005 and any such costs applicable to insurance claims against GameStop will be allocated to the Company. During the 52weeks ended January30, 2010, January31, 2009 and February2, 2008, these allocated charges amounted to $179, $164 and $287, respectively. The Company had a promissory note in favor of Barnes Noble in the principal amount of $74,020 in connection with the repurchase of the Companys common stock held by Barnes Noble in October 2004. The note was unsecured and bore interest at 5.5% per annum, payable with each principal installment. The final scheduled principal payment of $12,173 was made in October 2007 and the note has been satisfied in full. Interest expense on the promissory note for the 52weeks ended February2, 2008 totaled $444.

Significant Products

Significant Products
	12 Months Ended Jan. 30, 2010
Significant Products [Abstract]
Significant Products	16. Significant Products The following table sets forth sales (in millions) by significant product category for the periods indicated: 52 Weeks 52 Weeks 52 Weeks Ended Ended Ended January30, January31, February2, 2010 2009 2008 Percent Percent Percent Sales of Total Sales of Total Sales of Total Sales: New video game hardware $ 1,756.5 19.3 % $ 1,860.2 21.1 % $ 1,668.9 23.5 % New video game software 3,730.9 41.1 % 3,685.0 41.9 % 2,800.7 39.5 % Used video game products 2,394.1 26.4 % 2,026.6 23.0 % 1,586.7 22.4 % Other 1,196.5 13.2 % 1,234.1 14.0 % 1,037.7 14.6 % Total $ 9,078.0 100.0 % $ 8,805.9 100.0 % $ 7,094.0 100.0 % The following table sets forth gross profit (in millions) and gross profit percentages by significant product category for the periods indicated: 52 Weeks 52 Weeks 52 Weeks Ended Ended Ended January30, January31, February2, 2010 2009 2008 Gross Gross Gross Gross Profit Gross Profit Gross Profit Profit Percent Profit Percent Profit Percent Gross Profit: New video game hardware $ 113.5 6.5 % $ 112.6 6.1 % $ 108.2 6.5 % New video game software 795.0 21.3 % 768.4 20.9 % 581.7 20.8 % Used video game products 1,121.2 46.8 % 974.5 48.1 % 772.2 48.7 % Other 405.0 33.8 % 414.6 33.6 % 351.6 33.9 % Total $ 2,434.7 26.8 % $ 2,270.1 25.8 % $ 1,813.7 25.6 %

Segment Information

Segment Information
	12 Months Ended Jan. 30, 2010
Segment Information [Abstract]
Segment Information	17. Segment Information The Company operates its business in the following segments: United States, Canada, Australia and Europe. The Company identifies segments based on a combination of geographic areas and management responsibility. Each of the segments includes significant retail operations with all stores engaged in the sale of new and used video game systems and software and personal computer entertainment software and related accessories. Segment results for the United States include retail operations in 50states, the District of Columbia, Guam and Puerto Rico, the electronic commerce Web site www.gamestop.com and Game Informer Magazine. Segment results for Canada include retail operations in Canada and segment results for Australia include retail operations in Australia and NewZealand. Segment results for Europe include retail operations in 13 European countries. The fiscal 2009 results of the European segment include Micromanias results. The fiscal 2008 results of the European segment include 11weeks of Micromanias results. The Company measures 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. Information on segments and the reconciliation to earnings before income taxes are as follows (in millions): United Fiscal Year Ended January30, 2010 States Canada Australia Europe Other Consolidated Sales $ 6,275.0 $ 491.4 $ 530.2 $ 1,781.4 $ $ 9,078.0 Depreciation and amortization 102.1 7.4 9.4 43.6 162.5 Operating earnings 488.8 35.0 46.0 67.2 637.0 Interest income (51.5 ) (1.7 ) (1.4 ) 52.4 (2.2 ) Interest expense 44.2 0.1 53.5 (52.4 ) 45.4 Earnings before income tax expense 490.8 35.0 47.5 15.2 588.5 Income tax expense 162.5 11.3 14.2 24.8 212.8 Goodwill 1,100.2 128.6 174.1 543.6 1,946.5 Other long-lived assets 384.1 29.4 33.6 434.4 881.5 Total assets 2,864.9 337.8 399.9 1,352.7 4,955.3 United Fiscal Year Ended January31, 2009 States Canada Australia Europe Other Consolidated Sales $ 6,466.7 $ 548.2 $ 520.0 $ 1,271.0 $ $ 8,805.9 Depreciation and amortization 103.6 8.1

Supplemental Cash Flow Informat

Supplemental Cash Flow Information
	12 Months Ended Jan. 30, 2010
Supplemental Cash Flow Information [Abstract]
Supplemental Cash Flow Information	18. Supplemental Cash Flow Information 52 Weeks 52 Weeks 52 Weeks Ended Ended Ended January30, January31, February2, 2010 2009 2008 (In thousands) Cash paid during the period for: Interest $ 44,136 $ 45,252 $ 59,357 Income taxes 153,083 204,776 47,792 Subsidiaries acquired: Goodwill 4,194 459,287 (1,061 ) Cash received in acquisition 51 45,650 Noncontrolling interests 4,667 Net assets acquired (or liabilities assumed) (504 ) 171,419 Cash paid for subsidiaries $ 8,408 $ 676,356 $ (1,061 ) Other non-cash financing activities: Treasury stock repurchases settled in Feb. 2010 $ 64,615 $ $

Shareholders Equity

Shareholders Equity
	12 Months Ended Jan. 30, 2010
Shareholders' Equity [Abstract]
Shareholders' Equity	19. Shareholders Equity On February7, 2007, following approval by a majority of the ClassB common stockholders in a special meeting of the Companys ClassB common stockholders, all outstanding shares of ClassB common stock were converted into shares of ClassA common stock on a one-for-one basis. In addition, on February9, 2007, the Board of Directors of the Company authorized a two-for-one stock split, effected by a one-for-one stock dividend to stockholders of record at the close of business on February20, 2007, paid on March16, 2007. The holders of ClassA common stock are entitled to one vote per share on all matters to be voted on by stockholders. Holders of ClassA common stock will share in any dividend declared by the Board of Directors, subject to any preferential rights of any outstanding preferred stock. In the event of the Companys liquidation, dissolution or winding up, all holders of common stock are entitled to share ratably in any assets available for distribution to holders of shares of common stock after payment in full of any amounts required to be paid to holders of preferred stock. In 2005, the Company adopted a rights agreement under which one right (a Right) is attached to each outstanding share of the Companys common stock. Each Right entitles the holder to purchase from the Company one one-thousandth of a share of a series of preferred stock, designated as SeriesA Junior Participating Preferred Stock (the SeriesA Preferred Stock), at a price of $100.00 per one one-thousandth of a share. The Rights will be exercisable only if a person or group acquires 15% or more of the voting power of the Companys outstanding common stock or announces a tender offer or exchange offer, the consummation of which would result in such person or group owning 15% or more of the voting power of the Companys outstanding common stock. If a person or group acquires 15% or more of the voting power of the Companys outstanding common stock, each Right will entitle a holder (other than such person or any member of such group) to purchase, at the Rights then current exercise price, a number of shares of common stock having a market value of twice the exercise price of the Right. In addition, if the Company is acquired in a merger or other business combination transaction or 50% or more of its consolidated assets or earning power are sold at any time after the Rights have become exercisable, each Right will entitle its holder to purchase, at the Rights then current exercise price, a number of the acquiring companys common shares having a market value at that time of twice the exercise price of the Right. Furthermore, at any time after a person or group acquires 15% or more of the voting power of the outstanding common stock of the Company but prior to the acquisition of 50% of such voting power, the Board of Directors may, at its option, exchange part or all of the Rights (other than Rights held by the acquiring person or group) at an exchange rate of one one-thousandth of a share of SeriesA Preferred Stock or one share of the Companys common stock for each Right. The Company will be entitled to redeem the Rights at

Consolidating Financial Stateme

Consolidating Financial Statements
	12 Months Ended Jan. 30, 2010
Consolidating Financial Statements [Abstract]
Consolidating Financial Statements	20. Consolidating Financial Statements In order to finance the EB merger, as described in Note9, on September28, 2005, the Company, along with GameStop, Inc. as co-issuer, completed the offering of the Notes. The direct and indirect domestic wholly-owned subsidiaries of the Company, excluding GameStop, Inc., as co-issuer, have guaranteed the Senior Notes on a senior unsecured basis with unconditional guarantees. The following consolidating financial statements present the financial position as of January30, 2010 and January31, 2009 and results of operations and cash flows for the fiscal years ended January30, 2010, January31, 2009 and February2, 2008 of the Companys guarantor and non-guarantor subsidiaries. GAMESTOP CORP. CONSOLIDATING BALANCE SHEET Issuers and Guarantor Non-Guarantor Subsidiaries Subsidiaries Consolidated January30, January30, January30, 2010 2010 Eliminations 2010 (Amounts in thousands, except per share amounts) ASSETS: Current assets: Cash and cash equivalents $ 652,965 $ 252,453 $ $ 905,418 Receivables, net 203,122 627,889 (767,005 ) 64,006 Merchandise inventories, net 570,259 483,294 1,053,553 Deferred income taxes current 18,076 3,153 21,229 Prepaid expenses 37,750 21,684 59,434 Other current assets 6,007 17,657 23,664 Total current assets 1,488,179 1,406,130 (767,005 ) 2,127,304 Property and equipment: Land 2,670 8,899 11,569 Buildings and leasehold improvements 296,348 226,617 522,965 Fixtures and equipment 569,924 141,553 711,477 Total property and equipment 868,942 377,069 1,246,011 Less accumulated depreciation and amortization 498,534 163,276 661,810 Net property and equipment 370,408 213,793 584,201 Investment 2,062,677 596,435 (2,659,112 ) Goodwill, net 1,096,622 849,891 1,946,513 Other intangible assets 3,376 256,484 259,860 Other noncurrent assets 9,466 27,983 37,449 Total noncurrent assets 3,542,549 1,944,586 (2,659,112

Unaudited Quarterly Financial I

Unaudited Quarterly Financial Information
	12 Months Ended Jan. 30, 2010
Unaudited Quarterly Financial Information [Abstract]
Unaudited Quarterly Financial Information	21. Unaudited Quarterly Financial Information The following table sets forth certain unaudited quarterly consolidated statement of operations information for the fiscal years ended January30, 2010 and January31, 2009. The unaudited quarterly information includes all normal recurring adjustments that management considers necessary for a fair presentation of the information shown. Fiscal Year Ended January30, 2010 Fiscal Year Ended January31, 2009 1st 2nd 3rd 4th 1st 2nd 3rd 4th Quarter(1) Quarter Quarter(2) Quarter Quarter(3) Quarter Quarter(4) Quarter(5) (Amounts in thousands, except per share amounts) Sales $ 1,980,753 $ 1,738,504 $ 1,834,727 $ 3,524,013 $ 1,813,617 $ 1,804,420 $ 1,695,746 $ 3,492,114 Gross profit 542,113 495,406 523,084 874,049 473,406 484,123 473,429 839,177 Operating earnings 128,454 70,956 90,269 347,354 109,903 100,069 85,335 379,812 Net earnings 70,433 38,685 52,225 215,922 62,125 57,163 46,669 232,325 Net earnings per common share basic 0.43 0.23 0.32 1.31 0.38 0.35 0.29 1.42 Net earnings per common share diluted 0.42 0.23 0.31 1.29 0.37 0.34 0.28 1.39 The following footnotes are discussed as pretax expenses. (1) The results of operations for the first quarter of the fiscal year ended January30, 2010 include debt extinguishment expense of $2,862. (2) The results of operations for the third quarter of the fiscal year ended January30, 2010 include debt extinguishment expense of $2,461. (3) The results of operations for the first quarter of the fiscal year ended January31, 2009 include debt extinguishment expense of $2,331. (4) The results of operations for the third quarter of the fiscal year ended January31, 2009 include merger-related expenses of $16,605 associated with the change in foreign exchange rates related to the funding of the Micromania acquisition. (5) The results of operations for the fourth quarter of the fiscal year ended January31, 2009 include merger-related income of $12,012 associated with the change in foreign exchange rates related to the funding of the Micromania acquisition.

Valuation and Qualifying Accoun

Valuation and Qualifying Accounts
	12 Months Ended Jan. 30, 2010
Valuation and Qualifying Accounts [Abstract]
Valuation and Qualifying Accounts	Schedule Of Valuation and Qualifying Accounts Disclosure ScheduleII Valuation and Qualifying Accounts For the 52weeks ended January31, 2010, January31, 2009 and February2, 2008: Column A Column B Column C(1) Column C(2) Column D Column E Charged to Other Deductions- Balance at Charged to Accounts- Write-Offs Balance at Beginning Costs and Accounts Net of End of of Period Expenses Payable Recoveries Period (In thousands) Inventory Reserve, deducted from asset accounts 52 Weeks Ended January30, 2010 $ 56,567 $ 48,890 $ 34,091 $ 73,049 $ 66,499 52 Weeks Ended January31, 2009 59,698 42,979 34,710 80,820 56,567 52 Weeks Ended February2, 2008 53,816 51,879 28,262 74,259 59,698 Column C(2) consists primarily of amounts received from vendors for defective allowances. The Company does not maintain a reserve for estimated sales returns and allowances as amounts are considered to be immaterial. All other schedules are omitted because they are not applicable.