Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Nov. 02, 2013 | Dec. 04, 2013 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 2-Nov-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'GME | ' |
Entity Registrant Name | 'GameStop Corp. | ' |
Entity Central Index Key | '0001326380 | ' |
Current Fiscal Year End Date | '--02-01 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 115,810,737 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Nov. 02, 2013 | Feb. 02, 2013 | Oct. 27, 2012 |
In Millions, unless otherwise specified | |||
Current assets: | ' | ' | ' |
Cash and cash equivalents | $649.10 | $635.80 | $366.40 |
Receivables, net | 88.6 | 73.6 | 49.6 |
Merchandise inventories, net | 1,717 | 1,171.30 | 1,645.70 |
Deferred income taxes - current | 55 | 61.7 | 44.6 |
Prepaid income taxes | 30.4 | ' | 46.9 |
Prepaid expenses | 92 | 61.2 | 83.8 |
Other current assets | 2.6 | 7.3 | 15.4 |
Total current assets | 2,634.70 | 2,010.90 | 2,252.40 |
Property and equipment: | ' | ' | ' |
Land | 21.3 | 22.5 | 22.2 |
Buildings and leasehold improvements | 604 | 606.4 | 597.4 |
Fixtures and equipment | 952.9 | 926 | 897.9 |
Total property and equipment | 1,578.20 | 1,554.90 | 1,517.50 |
Less accumulated depreciation and amortization | 1,105.30 | 1,030.10 | 997.6 |
Net property and equipment | 472.9 | 524.8 | 519.9 |
Goodwill | 1,371.40 | 1,383.10 | 1,377.90 |
Other intangible assets, net | 142.9 | 153.4 | 149.7 |
Other noncurrent assets | 120.3 | 61.4 | 49.4 |
Total noncurrent assets | 2,107.50 | 2,122.70 | 2,096.90 |
Total assets | 4,742.20 | 4,133.60 | 4,349.30 |
Current liabilities: | ' | ' | ' |
Accounts payable | 1,501.80 | 870.9 | 1,277.60 |
Accrued liabilities | 991 | 741 | 823 |
Income taxes payable | ' | 103.4 | ' |
Total current liabilities | 2,492.80 | 1,715.30 | 2,100.60 |
Deferred income taxes | 26.2 | 31.5 | 55.6 |
Other long-term liabilities | 75.9 | 100.5 | 95.5 |
Total long-term liabilities | 102.1 | 132 | 151.1 |
Total liabilities | 2,594.90 | 1,847.30 | 2,251.70 |
Commitments and contingencies (Note 8) | ' | ' | ' |
Stockholders' equity: | ' | ' | ' |
Preferred stock - authorized 5.0 shares; no shares issued or outstanding | ' | ' | ' |
Class A common stock - $.001 par value; authorized 300.0 shares; 116.2, 130.9 and 128.2 shares issued, 116.2, 120.9 and 118.2 shares outstanding, respectively | 0.1 | 0.1 | 0.1 |
Additional paid-in-capital | 220.8 | 348.3 | 409.8 |
Accumulated other comprehensive income | 118.6 | 164.4 | 144.6 |
Retained earnings | 1,807.80 | 1,773.50 | 1,543.10 |
Total stockholders' equity | 2,147.30 | 2,286.30 | 2,097.60 |
Total liabilities and stockholders' equity | $4,742.20 | $4,133.60 | $4,349.30 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Nov. 02, 2013 | Feb. 02, 2013 | Oct. 27, 2012 |
In Millions, except Per Share data, unless otherwise specified | |||
Preferred stock, authorized | 5 | 5 | 5 |
Preferred stock, shares issued | 0 | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 | 0 |
Class A common stock , par value | $0.00 | $0.00 | $0.00 |
Class A common stock , authorized | 300 | 300 | 300 |
Class A common stock , shares issued | 116.2 | 128.2 | 130.9 |
Class A common stock , shares outstanding | 116.2 | 118.2 | 120.9 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements Of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 |
Net Sales | $2,106.70 | $1,772.80 | $5,355.70 | $5,325.20 |
Cost of sales | 1,508.30 | 1,215.40 | 3,697.60 | 3,648.60 |
Gross profit | 598.4 | 557.4 | 1,658.10 | 1,676.60 |
Selling, general and administrative expenses | 448.5 | 438.2 | 1,319.30 | 1,319.40 |
Depreciation and amortization | 40.8 | 43.9 | 123.7 | 132.3 |
Goodwill impairments | ' | 627 | ' | 627 |
Asset impairments | ' | 51.8 | ' | 51.8 |
Operating earnings (loss) | 109.1 | -603.5 | 215.1 | -453.9 |
Interest income | -0.3 | -0.2 | -0.5 | -0.6 |
Interest expense | 1 | 1.2 | 3.4 | 2.9 |
Earnings (loss) before income tax expense | 108.4 | -604.5 | 212.2 | -456.2 |
Income tax expense | 39.8 | 19.8 | 78.5 | 74.7 |
Consolidated net income (loss) | 68.6 | -624.3 | 133.7 | -530.9 |
Net loss attributable to noncontrolling interests | ' | ' | ' | 0.1 |
Consolidated net income (loss) attributable to GameStop Corp. | $68.60 | ($624.30) | $133.70 | ($530.80) |
Basic net income (loss) per common share attributable to GameStop Corp. | $0.59 | ($5.08) | $1.14 | ($4.13) |
Diluted net income (loss) per common share attributable to GameStop Corp. | $0.58 | ($5.08) | $1.12 | ($4.13) |
Dividends per common share | $0.28 | $0.25 | $0.83 | $0.55 |
Weighted average shares of common stock outstanding - basic | 116.8 | 122.8 | 117.7 | 128.5 |
Weighted average shares of common stock outstanding - diluted | 118.1 | 122.8 | 118.9 | 128.5 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements Of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 |
Consolidated net income (loss) | $68.60 | ($624.30) | $133.70 | ($530.90) |
Other comprehensive income (loss): | ' | ' | ' | ' |
Foreign currency translation adjustment | 20.3 | 33.2 | -45.8 | -25.2 |
Total comprehensive income (loss) | 88.9 | -591.1 | 87.9 | -556.1 |
Comprehensive loss attributable to noncontrolling interests | ' | ' | ' | 0.2 |
Comprehensive income (loss) attributable to GameStop Corp. | $88.90 | ($591.10) | $87.90 | ($555.90) |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements Of Changes In Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Retained Earnings | Noncontrolling Interest | |
In Millions | |||||||
Beginning Balance at Jan. 28, 2012 | $3,040.20 | $0.10 | $726.60 | $169.70 | $2,145.70 | ($1.90) | |
Beginning Balance (in shares) at Jan. 28, 2012 | ' | 136.8 | ' | ' | ' | ' | |
Purchase of subsidiary shares from noncontrolling interest | ' | ' | -2.1 | ' | ' | 2.1 | |
Net income (loss) for the 39 weeks ended November 2, 2013 and October 27, 2012 | -530.9 | ' | ' | ' | -530.8 | -0.1 | |
Foreign currency translation | -25.2 | ' | ' | -25.1 | ' | -0.1 | |
Dividends | [1] | -71.8 | ' | ' | ' | -71.8 | ' |
Stock-based compensation | 15.7 | ' | 15.7 | ' | ' | ' | |
Purchase of treasury stock (in shares) | ' | -16.7 | ' | ' | ' | ' | |
Purchase of treasury stock | -334.7 | ' | -334.7 | ' | ' | ' | |
Exercise of stock options and issuance of shares upon vesting of restricted stock grants (including tax benefit of $9.8 & $0.6 for the 39 weeks ended November 2, 2013 and October 27, 2012 respectively) (in shares) | ' | 0.8 | ' | ' | ' | ' | |
Exercise of stock options and issuance of shares upon vesting of restricted stock grants (including tax benefit of $9.8 & $0.6 for the 39 weeks ended November 2, 2013 and October 27, 2012 respectively) | 4.3 | ' | 4.3 | ' | ' | ' | |
Ending Balance at Oct. 27, 2012 | 2,097.60 | 0.1 | 409.8 | 144.6 | 1,543.10 | ' | |
Ending Balance (in shares) at Oct. 27, 2012 | ' | 120.9 | ' | ' | ' | ' | |
Beginning Balance at Feb. 02, 2013 | 2,286.30 | 0.1 | 348.3 | 164.4 | 1,773.50 | ' | |
Beginning Balance (in shares) at Feb. 02, 2013 | ' | 118.2 | ' | ' | ' | ' | |
Net income (loss) for the 39 weeks ended November 2, 2013 and October 27, 2012 | 133.7 | ' | ' | ' | 133.7 | ' | |
Foreign currency translation | -45.8 | ' | ' | -45.8 | ' | ' | |
Dividends | [2] | -99.4 | ' | ' | ' | -99.4 | ' |
Stock-based compensation | 16.7 | ' | 16.7 | ' | ' | ' | |
Purchase of treasury stock (in shares) | ' | -5.2 | ' | ' | ' | ' | |
Purchase of treasury stock | -208.8 | ' | -208.8 | ' | ' | ' | |
Exercise of stock options and issuance of shares upon vesting of restricted stock grants (including tax benefit of $9.8 & $0.6 for the 39 weeks ended November 2, 2013 and October 27, 2012 respectively) (in shares) | ' | 3.2 | ' | ' | ' | ' | |
Exercise of stock options and issuance of shares upon vesting of restricted stock grants (including tax benefit of $9.8 & $0.6 for the 39 weeks ended November 2, 2013 and October 27, 2012 respectively) | 64.6 | ' | 64.6 | ' | ' | ' | |
Ending Balance at Nov. 02, 2013 | $2,147.30 | $0.10 | $220.80 | $118.60 | $1,807.80 | ' | |
Ending Balance (in shares) at Nov. 02, 2013 | ' | 116.2 | ' | ' | ' | ' | |
[1] | Dividends declared per common share were $0.55 in the 39 weeks ended October 27, 2012. | ||||||
[2] | Dividends declared per common share were $0.825 in the 39 weeks ended November 2, 2013. |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements Of Changes In Stockholders' Equity (Parenthetical) (USD $) | 9 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 |
Tax benefit for exercise of employee stock options and issuance of shares upon vesting of restricted stock grants | $9.80 | $0.60 |
Dividends declared per common share | $0.83 | $0.55 |
Common Stock | ' | ' |
Dividends declared per common share | $0.83 | $0.55 |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statements Of Cash Flows (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 |
Cash flows from operating activities: | ' | ' |
Consolidated net income (loss) | $133.70 | ($530.90) |
Adjustments to reconcile net income (loss) to net cash flows provided by operating activities: | ' | ' |
Depreciation and amortization (including amounts in cost of sales) | 125.7 | 134.2 |
Goodwill impairments and asset impairments | ' | 678.8 |
Amortization of deferred financing fees | 0.9 | 0.9 |
Stock-based compensation expense | 16.7 | 15.7 |
Deferred income taxes | 0.6 | -11 |
Excess tax benefits realized from exercise of stock-based awards | -11.1 | -0.4 |
Loss on disposal of property and equipment | 4.4 | 4.7 |
Changes in other long-term liabilities | -23.7 | -9.5 |
Changes in operating assets and liabilities, net: | ' | ' |
Receivables, net | -15.5 | 14.7 |
Merchandise inventories | -563.8 | -518.6 |
Prepaid expenses and other current assets | -27.2 | -3.8 |
Prepaid income taxes and accrued income taxes payable | -124 | -126 |
Accounts payable and accrued liabilities | 889.3 | 554.9 |
Net cash flows provided by operating activities | 406 | 203.7 |
Cash flows from investing activities: | ' | ' |
Purchase of property and equipment | -76 | -88.9 |
Acquisitions, net of cash acquired | ' | -1.5 |
Investment | -62.6 | ' |
Other | 1.3 | -1.5 |
Net cash flows used in investing activities | -137.3 | -91.9 |
Cash flows from financing activities: | ' | ' |
Purchase of treasury shares | -204.9 | -328.2 |
Dividends paid | -98.7 | -71.4 |
Borrowings from the revolver | 130 | 81 |
Repayments of revolver borrowings | -130 | -81 |
Issuance of shares relating to stock options | 54.8 | 3.8 |
Excess tax benefits realized from exercise of stock-based awards | 11.1 | 0.4 |
Net cash flows used in financing activities | -237.7 | -395.4 |
Exchange rate effect on cash and cash equivalents | -17.7 | -5 |
Net increase (decrease) in cash and cash equivalents | 13.3 | -288.6 |
Cash and cash equivalents at beginning of period | 635.8 | 655 |
Cash and cash equivalents at end of period | $649.10 | $366.40 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended | |
Nov. 02, 2013 | ||
Summary of Significant Accounting Policies | ' | |
1 | Summary of Significant Accounting Policies | |
Basis of Presentation | ||
GameStop Corp. (together with its predecessor companies, “GameStop,” “we,” “us,” “our,” or the “Company”), a Delaware corporation, is the world’s largest multichannel video game retailer. We sell new and pre-owned video game hardware, physical and digital video game software, accessories, as well as PC entertainment software, new and pre-owned mobile and consumer electronics products and other merchandise. The unaudited condensed consolidated financial statements include the accounts of the Company and its 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 our opinion, necessary for a fair presentation of the information 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 condensed consolidated financial statements should be read in conjunction with our annual report on Form 10-K for the 53 weeks ended February 2, 2013 (“fiscal 2012”). The preparation of financial statements in conformity with GAAP requires us 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, we have made our 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 us could have a significant impact on our financial results. Actual results could differ from those estimates. | ||
Due to the seasonal nature of the business, the results of operations for the 39 weeks ended November 2, 2013 are not indicative of the results to be expected for the 52 weeks ending February 1, 2014 (“fiscal 2013”). | ||
Cash and Cash Equivalents | ||
We consider all short-term, highly-liquid instruments purchased with an original maturity of three months or less to be cash equivalents. Our cash and cash equivalents are carried at cost, which approximates market value, and consist primarily of time deposits with commercial banks. From time to time depending upon interest rates, credit worthiness and other factors, we invest in money market investment funds holding direct U.S. Treasury obligations. Accounts payable and accrued liabilities include $240.0 million, $76.8 million and $261.1 million of outstanding checks not yet presented for payment as of the quarters ending November 2, 2013, October 27, 2012 and for the year ending February 2, 2013, respectively. | ||
Restricted Cash | ||
Restricted cash of $10.6 million, $12.8 million and $13.4 million as of November 2, 2013, October 27, 2012 and February 2, 2013, respectively, consists primarily of bank deposits serving as collateral for bank guarantees issued on behalf of our foreign subsidiaries and is included in other noncurrent assets in our condensed consolidated balance sheets. | ||
Revenue Recognition | ||
Revenue from the sales of our products is recognized at the time of sale, net of sales discounts and net of an estimated sales return reserve, based on historical return rates, with a corresponding reduction in cost of sales. Our sales return policy is generally limited to less than 30 days and as such our sales returns are, and have historically been, immaterial. | ||
Recently Issued Accounting Standards | ||
In July 2013, accounting standards update (“ASU”) 2013-11 “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” was issued requiring an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as either a reduction to a deferred tax asset or separately as a liability depending on the existence, availability and/or use of an operating loss carryforward, a similar tax loss, or a tax credit carryforward. This ASU will be effective for us beginning the first quarter of 2014. We do not expect that this ASU will have an impact on our condensed consolidated financial statements as we currently do not have any unrecognized tax benefits in the same jurisdictions in which we have tax loss or credit carryovers. | ||
In March 2013, ASU 2013-05 “Foreign Currency Matters (Topic 830)” was issued providing guidance with respect to the release of cumulative translation adjustments into net income when a parent company sells either a part or all of an investment in a foreign entity. The ASU requires the release of cumulative translation adjustments when a company no longer holds a controlling financial interest in a foreign subsidiary or a group of assets that constitutes a business within a foreign entity. This ASU will be effective for us beginning the first quarter of 2014. We are evaluating the effect of this ASU, but do not expect it to have a significant impact on our condensed consolidated financial statements. | ||
Recently Adopted Accounting Standards | ||
In February 2013, ASU 2013-02 “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income” was issued regarding disclosure of amounts reclassified out of accumulated other comprehensive income by component. An entity is required to present either on the face of the statement of operations or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income, but only if the amount reclassified is required to be reclassified to net income in its entirety in the same reporting period. For amounts not reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures that provide additional detail about those amounts. This ASU was effective for our annual and interim periods beginning in fiscal 2013. The ASU had no effect on our condensed consolidated financial statements. |
Accounting_for_StockBased_Comp
Accounting for Stock-Based Compensation | 9 Months Ended | ||||||||||||||||
Nov. 02, 2013 | |||||||||||||||||
Accounting for Stock-Based Compensation | ' | ||||||||||||||||
2 | Accounting for Stock-Based Compensation | ||||||||||||||||
The following is a summary of the stock-based awards granted during the periods indicated: | |||||||||||||||||
39 Weeks Ended November 2, 2013 | 39 Weeks Ended October 27, 2012 | ||||||||||||||||
Shares | Weighted Average | Shares | Weighted Average | ||||||||||||||
Grant Date Fair | Grant Date Fair | ||||||||||||||||
Value | Value | ||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||
Stock options – time-vested | 457 | $ | 7.1 | — | — | ||||||||||||
Restricted stock awards – time-vested | 916 | $ | 24.82 | 784 | $ | 23.66 | |||||||||||
Restricted stock awards – performance-based | 262 | $ | 24.82 | 626 | $ | 23.66 | |||||||||||
Total stock-based awards | 1,635 | 1,410 | |||||||||||||||
For stock options granted, we record stock-based compensation expense in earnings based on the grant-date fair value. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model. This valuation model requires the use of subjective assumptions, including expected option life, expected volatility, expected dividend yield and expected employee forfeiture rate. We use historical data to estimate the option life, dividend yield and the employee forfeiture rate, and use historical volatility when estimating the stock price volatility. The following assumptions were used with respect to the stock options granted: | |||||||||||||||||
39 Weeks Ended | |||||||||||||||||
November 2, | |||||||||||||||||
2013 | |||||||||||||||||
Volatility | 46.4 | % | |||||||||||||||
Risk-free interest rate | 1 | % | |||||||||||||||
Expected life (years) | 5.6 | ||||||||||||||||
Expected dividend yield | 4.3 | % | |||||||||||||||
Total stock-based compensation recognized in selling, general and administrative expenses was as follows for the periods indicated: | |||||||||||||||||
13 Weeks Ended | 39 Weeks Ended | ||||||||||||||||
November 2, | October 27, | November 2, | October 27, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(In millions) | |||||||||||||||||
Stock-based compensation expense | $ | 5.2 | $ | 5.3 | $ | 16.7 | $ | 15.7 | |||||||||
As of November 2, 2013, the unrecognized compensation expense related to the unvested portion of our stock–based awards was $38.0 million, which is expected to be recognized over a weighted average period of 2.0 years. The total intrinsic value of options exercised during the 13 weeks ended November 2, 2013 and October 27, 2012 was $27.6 million and $1.1 million, respectively. The total intrinsic value of options exercised during the 39 weeks ended November 2, 2013 and October 27, 2012 was $48.7 million and $2.2 million, respectively. |
Computation_of_Net_Income_Loss
Computation of Net Income (Loss) Per Common Share | 9 Months Ended | ||||||||||||||||
Nov. 02, 2013 | |||||||||||||||||
Computation of Net Income (Loss) Per Common Share | ' | ||||||||||||||||
3 | Computation of Net Income (Loss) per Common Share | ||||||||||||||||
A reconciliation of shares used in calculating basic and diluted net income (loss) per common share is as follows: | |||||||||||||||||
13 Weeks Ended | 39 Weeks Ended | ||||||||||||||||
November 2, | October 27, | November 2, | October 27, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(In millions, except per share data) | |||||||||||||||||
Consolidated net income (loss) attributable to GameStop Corp. | $ | 68.6 | $ | (624.3 | ) | $ | 133.7 | $ | (530.8 | ) | |||||||
Weighted average common shares outstanding | 116.8 | 122.8 | 117.7 | 128.5 | |||||||||||||
Dilutive effect of options and restricted shares on common stock(1) | 1.3 | — | 1.2 | — | |||||||||||||
Common shares and dilutive potential common shares | 118.1 | 122.8 | 118.9 | 128.5 | |||||||||||||
Net income (loss) per common share: | |||||||||||||||||
Basic | $ | 0.59 | $ | (5.08 | ) | $ | 1.14 | $ | (4.13 | ) | |||||||
Diluted | $ | 0.58 | $ | (5.08 | ) | $ | 1.12 | $ | (4.13 | ) | |||||||
-1 | Excludes 1.1 million, 4.6 million, 1.6 million and 4.2 million share-based awards for the 13 weeks ended November 2, 2013, the 13 weeks ended October 27, 2012, the 39 weeks ended November 2, 2013 and the 39 weeks ended October 27, 2012, respectively, because their effects were antidilutive. |
Fair_Value_Measurements_and_Fi
Fair Value Measurements and Financial Instruments | 9 Months Ended | ||||||||||||||||
Nov. 02, 2013 | |||||||||||||||||
Fair Value Measurements and Financial Instruments | ' | ||||||||||||||||
4 | Fair Value Measurements and Financial Instruments | ||||||||||||||||
Recurring Fair Value Measurements and Derivative 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. 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. 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 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 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. 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 at fair value on a recurring basis and recorded on our condensed consolidated balance sheets (in millions): | |||||||||||||||||
November 2, | October 27, | February 2, | |||||||||||||||
2013 | 2012 | 2013 | |||||||||||||||
Assets | |||||||||||||||||
Foreign Currency Contracts | |||||||||||||||||
Other current assets | $ | 2.6 | $ | 15.3 | $ | 7.3 | |||||||||||
Other noncurrent assets | — | 1.9 | 0.9 | ||||||||||||||
Company-owned life insurance(1) | 5.5 | 3.3 | 3.5 | ||||||||||||||
Total assets | 8.1 | 20.5 | 11.7 | ||||||||||||||
Liabilities | |||||||||||||||||
Foreign Currency Contracts | |||||||||||||||||
Accrued liabilities | 12.7 | 2.2 | 9.1 | ||||||||||||||
Other long-term liabilities | 3.5 | 0.3 | 4.4 | ||||||||||||||
Nonqualified deferred compensation(2) | 1.1 | 0.9 | 0.9 | ||||||||||||||
Total liabilities | $ | 17.3 | $ | 3.4 | $ | 14.4 | |||||||||||
-1 | Recognized in other non-current assets in our condensed consolidated balance sheets. | ||||||||||||||||
-2 | Recognized in accrued liabilities in our condensed consolidated balance sheets. | ||||||||||||||||
We use 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 loans and foreign currency assets and liabilities. The total gross notional value of derivatives related to our Foreign Currency Contracts was $653.4 million and $574.2 million as of November 2, 2013 and October 27, 2012, respectively. The total net notional value of derivatives related to our Foreign Currency Contracts was $86.7 million and $133.9 million as of November 2, 2013 and October 27, 2012, respectively. | |||||||||||||||||
Activity related to the trading of derivative instruments and the offsetting impact of related intercompany loans and foreign currency assets and liabilities recognized in selling, general and administrative expense is as follows (in millions): | |||||||||||||||||
13 Weeks Ended | 39 Weeks Ended | ||||||||||||||||
November 2, | October 27, | November 2, | October 27, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Gains (losses) on the changes in fair value of derivative instruments | $ | 2.5 | $ | (16.7 | ) | $ | (7.8 | ) | $ | 0.2 | |||||||
Gains (losses) on the re-measurement of related intercompany loans and foreign currency assets and liabilities | (2.6 | ) | 19 | 10.8 | 1 | ||||||||||||
Total | $ | (0.1 | ) | $ | 2.3 | $ | 3 | $ | 1.2 | ||||||||
We do not use derivative financial instruments for trading or speculative purposes. We are exposed to counterparty credit risk on all of our derivative financial instruments and cash equivalent investments. We manage counterparty risk according to the guidelines and controls established under our comprehensive risk management and investment policies. We continuously monitor our counterparty credit risk and utilize a number of different counterparties to minimize our exposure to potential defaults. We do not require collateral under derivative or investment agreements. | |||||||||||||||||
Nonrecurring Fair Value Measurements | |||||||||||||||||
In addition to assets and liabilities that are recorded at fair value on a recurring basis, we record certain assets and liabilities at fair value on a nonrecurring basis as required by GAAP. Assets and liabilities that are measured at fair value on a nonrecurring basis relate primarily to our tangible property and equipment, goodwill and other intangible assets, which are remeasured when the derived fair value is below carrying value on our condensed consolidated balance sheets. For these assets, we do not periodically adjust carrying value to fair value except in the event of impairment. When we determine that impairment has occurred, the carrying value of the asset is reduced to fair value and the difference is recorded within operating earnings in our condensed consolidated statements of operations. We did not record any impairment charges related to assets measured at fair value on a nonrecurring basis during the 39 weeks ended November 2, 2013. During the 13 and 39 weeks ended October 27, 2012, we recorded a $678.8 million impairment charge related to assets measured at fair value on a nonrecurring basis, comprised of $627.0 million of goodwill impairments, $44.9 million of trade name impairment and $6.9 million of property and equipment impairments. | |||||||||||||||||
The fair value remeasurements included in the goodwill, trade name and property and equipment impairments were based on significant unobservable inputs (Level 3). | |||||||||||||||||
Other Fair Value Disclosures | |||||||||||||||||
The carrying values of our cash equivalents, receivables, net and accounts payable approximate the fair value due to their short maturities. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 9 Months Ended | |
Nov. 02, 2013 | ||
Goodwill and Intangible Assets | ' | |
5 | Goodwill and Intangible Assets | |
Goodwill | ||
Goodwill represents the excess purchase price over tangible net assets and identifiable intangible assets acquired. Under the provisions of Financial Accounting Standards Board Accounting Standards Codification Topic 350 (“ASC 350”), we are required to evaluate goodwill and other intangible assets not subject to amortization for impairment at least annually. This annual test is completed at the beginning of the fourth quarter of each fiscal year or when circumstances indicate the carrying value of the goodwill or other intangible assets might be impaired. Goodwill has been assigned to reporting units for the purpose of impairment testing. We have four operating segments, the United States, Australia, Canada and Europe, which also define our reporting units based upon aggregation of components with similar economic characteristics of operations within each segment, including the nature of products, product distribution and the type of customer and separate management within those regions. We estimate fair value of each reporting unit based on the discounted cash flows of each reporting unit. We use a two-step process to test goodwill for potential impairment. If the estimated fair value of the reporting unit is higher than its carrying value, then goodwill is not considered to be impaired. If the carrying value of the reporting unit is higher than its estimated fair value, then the second step of the goodwill impairment test is needed. The second step compares the implied fair value of the reporting unit’s goodwill with its carrying amount. If the carrying amount of the reporting unit’s goodwill exceeds the implied fair value, then an impairment loss is recognized in the amount of the excess. | ||
During the third quarter of fiscal 2012, we determined that sufficient indicators of potential impairment existed to require an interim goodwill impairment test under the provisions of ASC 350. These indicators included the trading prices of our Class A Common Stock and the decrease in our market capitalization below the total amount of stockholders’ equity on our condensed consolidated balance sheet. | ||
Upon completion of step one of the interim goodwill impairment test, we determined that the fair values of our Australia, Canada and Europe reporting units were below their carrying values and, as a result, conducted step two of the interim goodwill impairment test to determine the implied fair value of goodwill for the Australia, Canada and Europe reporting units. The calculated fair value of the United States reporting unit significantly exceeded its carrying value. Therefore, step two of the interim goodwill impairment test was not required for the United States reporting unit. | ||
The implied fair value of goodwill is determined in step two of the goodwill impairment test by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation used in a business combination and the residual fair value after this allocation is the implied fair value of the reporting unit goodwill. In the process of conducting the second step of the goodwill impairment test, we identified intangible assets consisting of trade names in our Australia, Canada and Europe reporting units. Additionally, we identified hypothetical unrecognized fair value changes to merchandise inventories, property and equipment, unfavorable leasehold interests and deferred income taxes. The combination of these hypothetical unrecognized intangible assets and other hypothetical unrecognized fair value changes to the carrying values of other assets and liabilities, together with the lower reporting unit fair values calculated in step one, resulted in an implied fair value of goodwill substantially below the carrying value of goodwill for the Australia, Canada and Europe reporting units. Accordingly, we recorded non-cash, non-tax deductible goodwill impairments for the 13 weeks ended October 27, 2012 of $107.1 million, $100.3 million and $419.6 million in our Australia, Canada and Europe reporting units, respectively, to reduce the carrying value of goodwill. | ||
We are currently in the process of conducting our annual step one impairment testing for fiscal 2013. | ||
Trade Name | ||
As a result of the impairment indicators described above, during the third quarter of fiscal 2012, we also tested our long-lived assets for impairment and concluded that our Micromania trade name was impaired. As a result of the impairment test, we recorded a $44.9 million impairment for the 13 weeks ended October 27, 2012. The fair value of our Micromania trade name was calculated using a relief-from-royalty approach, which assumes the fair value of the trade name is the discounted cash flows of the amount that would be paid by a hypothetical market participant had they not owned the trade name and instead licensed the trade name from another company. | ||
We are currently in the process of conducting our annual impairment testing of our non-amortizing intangible assets. |
Debt
Debt | 9 Months Ended | |
Nov. 02, 2013 | ||
Debt | ' | |
6 | Debt | |
On January 4, 2011, we entered into a $400 million credit agreement (the “Revolver”), which amended and restated our prior credit agreement entered into in October 2005. The Revolver provides for a five-year, $400 million asset-based facility, including a $50 million letter of credit sublimit, secured by substantially all of the Company’s and its domestic subsidiaries’ assets. We have the ability to increase the facility, which matures in January 2016, by $150 million under certain circumstances. The extension of the Revolver to 2016 reduces our exposure to potential tightening or other adverse changes in the credit markets. | ||
The availability under the Revolver is limited to a borrowing base which allows us to borrow up to 90% of the appraisal value of the inventory, in each case plus 90% of eligible credit card receivables, net of certain reserves. Letters of credit reduce the amount available to borrow by their face value. Our ability to pay cash dividends, redeem options and repurchase shares is generally permitted, except under certain circumstances, including if Revolver excess availability is less than 20%, or is projected to be within 12 months after such payment. In addition, if Revolver usage is projected to be equal to or greater than 25% of total commitments during the prospective 12-month period, we are subject to meeting a fixed charge coverage ratio of 1.1:1.0 prior to making such payments. In the event that excess availability under the Revolver is at any time less than the greater of (1) $40.0 million or (2) 12.5% of the lesser of the total commitment or the borrowing base, we will be subject to a fixed charge coverage ratio covenant of 1.1:1.0. | ||
The Revolver places certain restrictions on us and our subsidiaries, including limitations on asset sales, additional liens, investments, loans, guarantees, acquisitions and the incurrence of additional indebtedness. Absent consent from our lenders, we may not incur more than $750 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 1.25% to 1.50% above the highest of (a) the prime rate of the administrative agent, (b) the federal funds effective rate plus 0.50% or (c) the London Interbank Offered (“LIBO”) rate for a 30-day interest period as determined on such day plus 1.00%, and (2) for LIBO rate loans of 2.25% to 2.50% above the LIBO rate. The applicable margin is determined quarterly as a function of our average daily excess availability under the facility. In addition, we are required to pay a commitment fee of 0.375% or 0.50%, depending on facility usage, for any unused portion of the total commitment under the Revolver. As of November 2, 2013, the applicable margin was 1.25% for prime rate loans and 2.25% for LIBO rate loans, while the required commitment fee was 0.50% for the unused portion of the Revolver. | ||
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 us or the borrowers proving to be false in any material respect, certain bankruptcy, insolvency or receivership events affecting us or our 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 39 weeks ended November 2, 2013, we borrowed and repaid $130.0 million under the Revolver. During the 39 weeks ended October 27, 2012, we borrowed and repaid $81.0 million under the Revolver. Average borrowings under the Revolver for the 13 weeks and 39 weeks ended November 2, 2013 were $12.6 million and $18.9 million, respectively. Our average interest rates on those outstanding borrowings for the 13 weeks and 39 weeks ended November 2, 2013 were 2.6% and 2.8%, respectively. As of November 2, 2013, total availability under the Revolver was $391.0 million, there were no borrowings outstanding and standby letters of credit outstanding totaled $9.0 million. We are currently in compliance with the requirements of the Revolver. | ||
In September 2007, our Luxembourg subsidiary entered into a discretionary $20.0 million Uncommitted Line of Credit (the “Line of Credit”) with Bank of America. There is no term associated with the Line of Credit and Bank of America may withdraw the facility at any time without notice. The Line of Credit is available to our foreign subsidiaries for use primarily as 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 November 2, 2013, there were no cash overdrafts outstanding under the Line of Credit and bank guarantees outstanding totaled $4.4 million. |
Income_Taxes
Income Taxes | 9 Months Ended | |
Nov. 02, 2013 | ||
Income Taxes | ' | |
7 | Income Taxes | |
We file income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. The Internal Revenue Service (“IRS”) is currently examining the Company’s U.S. income tax returns for fiscal years ended February 2, 2013, January 28, 2012, January 29, 2011, January 30, 2010 and January 31, 2009. We do not anticipate any adjustments that would result in a material impact on our condensed consolidated financial statements as a result of these audits. | ||
We accrue for the effects of uncertain tax positions and the related potential penalties and interest. Our recorded liability for unrecognized tax benefits increased by $4.9 million during the 13 weeks ended November 2, 2013 and decreased by $13.0 million during the 39 weeks ended November 2, 2013. The decrease in the liability for unrecognized tax benefits during the 39 weeks ended November 2, 2013 was primarily the result of payments made to settle certain U.S. federal income tax items and did not have a material impact on our income tax provision. There were no material adjustments to our recorded liability for unrecognized tax benefits during the 13 and 39 weeks ended October 27, 2012. It is reasonably possible that the amount of the unrecognized tax benefit with respect to certain of our unrecognized tax positions could significantly increase or decrease during the next 12 months. At this time, an estimate of the range of the reasonably possible outcomes cannot be made. | ||
The income tax provisions for the 13 weeks and 39 weeks ended November 2, 2013 and October 27, 2012 are based upon management’s estimate of our annualized effective income tax rate. The effective income tax rates for the 13 weeks and 39 weeks ended October 27, 2012 were impacted by the recognition of the goodwill impairment charge that was not tax deductible and the recording of valuation allowances against certain deferred tax assets. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | |
Nov. 02, 2013 | ||
Commitments and Contingencies | ' | |
8 | Commitments and Contingencies | |
In the ordinary course of business, we are, from time to time, subject to various legal proceedings, including matters involving wage and hour employee class actions and consumer class actions. We may enter into discussions regarding settlement of these and other types of lawsuits, and may enter into settlement agreements, if we believe settlement is in the best interest of our stockholders. We do not believe that any such existing legal proceedings or settlements, individually or in the aggregate, will have a material effect on our financial condition, results of operations or liquidity. |
Significant_Products
Significant Products | 9 Months Ended | ||||||||||||||||||||||||||||||||
Nov. 02, 2013 | |||||||||||||||||||||||||||||||||
Significant Products | ' | ||||||||||||||||||||||||||||||||
9 | Significant Products | ||||||||||||||||||||||||||||||||
The following table sets forth net sales (in millions) and percentage of total net sales by significant product category for the periods indicated: | |||||||||||||||||||||||||||||||||
13 Weeks Ended | 39 Weeks Ended | ||||||||||||||||||||||||||||||||
November 2, | October 27, | November 2, | October 27, | ||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Net | Percent | Net | Percent | Net | Percent | Net | Percent | ||||||||||||||||||||||||||
Sales | of Total | Sales | of Total | Sales | of Total | Sales | of Total | ||||||||||||||||||||||||||
Net Sales: | |||||||||||||||||||||||||||||||||
New video game hardware | $ | 181.8 | 8.6 | % | $ | 184.8 | 10.4 | % | $ | 571.4 | 10.7 | % | $ | 716.6 | 13.4 | % | |||||||||||||||||
New video game software | 1,133.10 | 53.8 | % | 769.8 | 43.4 | % | 2,266.10 | 42.3 | % | 1,974.70 | 37.1 | % | |||||||||||||||||||||
Pre-owned video game products | 486.6 | 23.1 | % | 496.3 | 28 | % | 1,587.90 | 29.6 | % | 1,677.70 | 31.5 | % | |||||||||||||||||||||
Other1 | 305.2 | 14.5 | % | 321.9 | 18.2 | % | 930.3 | 17.4 | % | 956.2 | 18 | % | |||||||||||||||||||||
Total | $ | 2,106.70 | 100 | % | $ | 1,772.80 | 100 | % | $ | 5,355.70 | 100 | % | $ | 5,325.20 | 100 | % | |||||||||||||||||
1 | Primarily includes video game accessories, digital content and currency, new and pre-owned tablets, smartphones and other mobile products and services, PC entertainment software, revenues associated with Game Informer magazine and membership fees related to the PowerUp Rewards loyalty program. | ||||||||||||||||||||||||||||||||
The following table sets forth gross profit (in millions) and gross profit percentages by significant product category for the periods indicated: | |||||||||||||||||||||||||||||||||
13 Weeks Ended | 39 Weeks Ended | ||||||||||||||||||||||||||||||||
November 2, | October 27, | November 2, | October 27, | ||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Gross | Gross | Gross | Gross | Gross | Gross | Gross | Gross | ||||||||||||||||||||||||||
Profit | Profit | Profit | Profit | Profit | Profit | Profit | Profit | ||||||||||||||||||||||||||
Percent | Percent | Percent | Percent | ||||||||||||||||||||||||||||||
Gross Profit: | |||||||||||||||||||||||||||||||||
New video game hardware | $ | 13.7 | 7.5 | % | $ | 18.8 | 10.2 | % | $ | 49.4 | 8.6 | % | $ | 58.1 | 8.1 | % | |||||||||||||||||
New video game software | 249.1 | 22 | % | 174.9 | 22.7 | % | 496.2 | 21.9 | % | 432.6 | 21.9 | % | |||||||||||||||||||||
Pre-owned video game products | 216.6 | 44.5 | % | 239.9 | 48.3 | % | 738 | 46.5 | % | 813.7 | 48.5 | % | |||||||||||||||||||||
Other1 | 119 | 39 | % | 123.8 | 38.5 | % | 374.5 | 40.3 | % | 372.2 | 38.9 | % | |||||||||||||||||||||
Total | $ | 598.4 | 28.4 | % | $ | 557.4 | 31.4 | % | $ | 1,658.10 | 31 | % | $ | 1,676.60 | 31.5 | % | |||||||||||||||||
1 | Primarily includes video game accessories, digital content and currency, new and pre-owned tablets, smartphones and other mobile products and services, PC entertainment software, revenues associated with Game Informer magazine and membership fees related to the PowerUp Rewards loyalty program. |
Segment_Information
Segment Information | 9 Months Ended | ||||||||||||||||
Nov. 02, 2013 | |||||||||||||||||
Segment Information | ' | ||||||||||||||||
10 | Segment Information | ||||||||||||||||
We operate our business in the following segments: United States, Canada, Australia and Europe. Segment results for the United States include retail operations in all 50 states, the District of Columbia, Guam and Puerto Rico, the electronic commerce Web site www.gamestop.com, Game Informer magazine, the online video gaming Web site www.kongregate.com, a digital PC game distribution platform available at www.gamestop.com/pcgames, the streaming technology company Spawn Labs, and an online consumer electronics marketplace available at www.buymytronics.com. 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 store operations in 11 European countries and e-commerce operations in six countries. We measure segment profit using operating earnings, which is defined as income (loss) from continuing operations before intercompany royalty fees, net interest expense and income taxes. There has been no material change in total assets by segment since February 2, 2013. Transactions between reportable segments consist primarily of royalties, management fees, intersegment loans and related interest. Information on segments appears in the following tables: | |||||||||||||||||
Net sales by segment were as follows (in millions): | |||||||||||||||||
13 Weeks Ended | 39 Weeks Ended | ||||||||||||||||
November 2, | October 27, | November 2, | October 27, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
United States | $ | 1,434.80 | $ | 1,204.30 | $ | 3,730.10 | $ | 3,722.10 | |||||||||
Canada | 125.4 | 101.3 | 281.1 | 275.8 | |||||||||||||
Australia | 137.3 | 125.7 | 363.8 | 361.1 | |||||||||||||
Europe | 409.2 | 341.5 | 980.7 | 966.2 | |||||||||||||
Total | $ | 2,106.70 | $ | 1,772.80 | $ | 5,355.70 | $ | 5,325.20 | |||||||||
Operating earnings (loss) by segment were as follows (in millions): | |||||||||||||||||
13 Weeks Ended | 39 Weeks Ended | ||||||||||||||||
November 2, | October 27, | November 2, | October 27, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
United States | $ | 70.3 | $ | 51.1 | $ | 206.5 | $ | 206.8 | |||||||||
Canada | 11.2 | (96.1 | ) | 13 | (93.2 | ) | |||||||||||
Australia | 10.1 | (102.6 | ) | 12.7 | (100.3 | ) | |||||||||||
Europe | 17.5 | (455.9 | ) | (17.1 | ) | (467.2 | ) | ||||||||||
Total operating earnings (loss) | 109.1 | (603.5 | ) | 215.1 | (453.9 | ) | |||||||||||
Interest income | (0.3 | ) | (0.2 | ) | (0.5 | ) | (0.6 | ) | |||||||||
Interest expense | 1 | 1.2 | 3.4 | 2.9 | |||||||||||||
Earnings (loss) before income tax expense | $ | 108.4 | $ | (604.5 | ) | $ | 212.2 | $ | (456.2 | ) | |||||||
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 9 Months Ended | ||||||||
Nov. 02, 2013 | |||||||||
Supplemental Cash Flow Information | ' | ||||||||
11 | Supplemental Cash Flow Information | ||||||||
39 Weeks Ended | |||||||||
November 2, | October 27, | ||||||||
2013 | 2012 | ||||||||
Cash paid (in millions) during the period for: | |||||||||
Interest | $ | 2.1 | $ | 1.9 | |||||
Income taxes | $ | 212.3 | $ | 211.5 | |||||
Subsequent_Events
Subsequent Events | 9 Months Ended | |
Nov. 02, 2013 | ||
Subsequent Events | ' | |
12 | Subsequent Events | |
Dividend | ||
On November 19, 2013, the Board of Directors of the Company approved a quarterly cash dividend to its stockholders of $0.275 per share of Class A Common Stock payable on December 19, 2013 to stockholders of record at the close of business on December 4, 2013. Future dividends will be subject to approval by our Board of Directors. | ||
Share Repurchase | ||
On November 19, 2013, our Board of Directors authorized us to use $500 million to repurchase shares of our Class A Common Stock, replacing the remaining $209.9 million authorization. As of December 4, 2013, we have purchased an additional 0.4 million shares of our Class A Common Stock for an average price per share of $50.75 since November 2, 2013. | ||
Acquisition | ||
On November 3, 2013, we completed the acquisition of Spring Communications, Inc., a wireless solutions retailer, for a purchase price of $62.6 million and the assumption of $34.5 million in term loans and a line of credit, of which $31.9 million was repaid on November 15, 2013. As a matter of convenience, we funded the acquisition on November 1, 2013. The investment is included in our United States reporting segment in other long-term assets and is not expected to have a material impact to our financial position or results of operations in fiscal 2013. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Nov. 02, 2013 | |
Basis of Presentation | ' |
Basis of Presentation | |
GameStop Corp. (together with its predecessor companies, “GameStop,” “we,” “us,” “our,” or the “Company”), a Delaware corporation, is the world’s largest multichannel video game retailer. We sell new and pre-owned video game hardware, physical and digital video game software, accessories, as well as PC entertainment software, new and pre-owned mobile and consumer electronics products and other merchandise. The unaudited condensed consolidated financial statements include the accounts of the Company and its 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 our opinion, necessary for a fair presentation of the information 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 condensed consolidated financial statements should be read in conjunction with our annual report on Form 10-K for the 53 weeks ended February 2, 2013 (“fiscal 2012”). The preparation of financial statements in conformity with GAAP requires us 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, we have made our 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 us could have a significant impact on our financial results. Actual results could differ from those estimates. | |
Due to the seasonal nature of the business, the results of operations for the 39 weeks ended November 2, 2013 are not indicative of the results to be expected for the 52 weeks ending February 1, 2014 (“fiscal 2013”). | |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents | |
We consider all short-term, highly-liquid instruments purchased with an original maturity of three months or less to be cash equivalents. Our cash and cash equivalents are carried at cost, which approximates market value, and consist primarily of time deposits with commercial banks. From time to time depending upon interest rates, credit worthiness and other factors, we invest in money market investment funds holding direct U.S. Treasury obligations. Accounts payable and accrued liabilities include $240.0 million, $76.8 million and $261.1 million of outstanding checks not yet presented for payment as of the quarters ending November 2, 2013, October 27, 2012 and for the year ending February 2, 2013, respectively. | |
Restricted Cash | ' |
Restricted Cash | |
Restricted cash of $10.6 million, $12.8 million and $13.4 million as of November 2, 2013, October 27, 2012 and February 2, 2013, respectively, consists primarily of bank deposits serving as collateral for bank guarantees issued on behalf of our foreign subsidiaries and is included in other noncurrent assets in our condensed consolidated balance sheets. | |
Revenue Recognition | ' |
Revenue Recognition | |
Revenue from the sales of our products is recognized at the time of sale, net of sales discounts and net of an estimated sales return reserve, based on historical return rates, with a corresponding reduction in cost of sales. Our sales return policy is generally limited to less than 30 days and as such our sales returns are, and have historically been, immaterial. | |
Recently Issued Accounting Standards | ' |
Recently Issued Accounting Standards | |
In July 2013, accounting standards update (“ASU”) 2013-11 “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” was issued requiring an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as either a reduction to a deferred tax asset or separately as a liability depending on the existence, availability and/or use of an operating loss carryforward, a similar tax loss, or a tax credit carryforward. This ASU will be effective for us beginning the first quarter of 2014. We do not expect that this ASU will have an impact on our condensed consolidated financial statements as we currently do not have any unrecognized tax benefits in the same jurisdictions in which we have tax loss or credit carryovers. | |
In March 2013, ASU 2013-05 “Foreign Currency Matters (Topic 830)” was issued providing guidance with respect to the release of cumulative translation adjustments into net income when a parent company sells either a part or all of an investment in a foreign entity. The ASU requires the release of cumulative translation adjustments when a company no longer holds a controlling financial interest in a foreign subsidiary or a group of assets that constitutes a business within a foreign entity. This ASU will be effective for us beginning the first quarter of 2014. We are evaluating the effect of this ASU, but do not expect it to have a significant impact on our condensed consolidated financial statements. | |
Recently Adopted Accounting Standards | ' |
Recently Adopted Accounting Standards | |
In February 2013, ASU 2013-02 “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income” was issued regarding disclosure of amounts reclassified out of accumulated other comprehensive income by component. An entity is required to present either on the face of the statement of operations or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income, but only if the amount reclassified is required to be reclassified to net income in its entirety in the same reporting period. For amounts not reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures that provide additional detail about those amounts. This ASU was effective for our annual and interim periods beginning in fiscal 2013. The ASU had no effect on our condensed consolidated financial statements. |
Accounting_for_StockBased_Comp1
Accounting for Stock-Based Compensation (Tables) | 9 Months Ended | ||||||||||||||||
Nov. 02, 2013 | |||||||||||||||||
Summary of Stock-Based Awards Granted | ' | ||||||||||||||||
The following is a summary of the stock-based awards granted during the periods indicated: | |||||||||||||||||
39 Weeks Ended November 2, 2013 | 39 Weeks Ended October 27, 2012 | ||||||||||||||||
Shares | Weighted Average | Shares | Weighted Average | ||||||||||||||
Grant Date Fair | Grant Date Fair | ||||||||||||||||
Value | Value | ||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||
Stock options – time-vested | 457 | $ | 7.1 | — | — | ||||||||||||
Restricted stock awards – time-vested | 916 | $ | 24.82 | 784 | $ | 23.66 | |||||||||||
Restricted stock awards – performance-based | 262 | $ | 24.82 | 626 | $ | 23.66 | |||||||||||
Total stock-based awards | 1,635 | 1,410 | |||||||||||||||
Assumptions used on Stock Options Granted | ' | ||||||||||||||||
The following assumptions were used with respect to the stock options granted: | |||||||||||||||||
39 Weeks Ended | |||||||||||||||||
November 2, | |||||||||||||||||
2013 | |||||||||||||||||
Volatility | 46.4 | % | |||||||||||||||
Risk-free interest rate | 1 | % | |||||||||||||||
Expected life (years) | 5.6 | ||||||||||||||||
Expected dividend yield | 4.3 | % | |||||||||||||||
Stock-Based Compensation Recognized in Selling, General and Administrative Expenses | ' | ||||||||||||||||
Total stock-based compensation recognized in selling, general and administrative expenses was as follows for the periods indicated: | |||||||||||||||||
13 Weeks Ended | 39 Weeks Ended | ||||||||||||||||
November 2, | October 27, | November 2, | October 27, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(In millions) | |||||||||||||||||
Stock-based compensation expense | $ | 5.2 | $ | 5.3 | $ | 16.7 | $ | 15.7 |
Computation_of_Net_Income_Loss1
Computation of Net Income (Loss) Per Common Share (Tables) | 9 Months Ended | ||||||||||||||||
Nov. 02, 2013 | |||||||||||||||||
Reconciliation of Shares Used in Calculating Basic and Diluted Net Income (Loss) Per Common Share | ' | ||||||||||||||||
A reconciliation of shares used in calculating basic and diluted net income (loss) per common share is as follows: | |||||||||||||||||
13 Weeks Ended | 39 Weeks Ended | ||||||||||||||||
November 2, | October 27, | November 2, | October 27, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(In millions, except per share data) | |||||||||||||||||
Consolidated net income (loss) attributable to GameStop Corp. | $ | 68.6 | $ | (624.3 | ) | $ | 133.7 | $ | (530.8 | ) | |||||||
Weighted average common shares outstanding | 116.8 | 122.8 | 117.7 | 128.5 | |||||||||||||
Dilutive effect of options and restricted shares on common stock(1) | 1.3 | — | 1.2 | — | |||||||||||||
Common shares and dilutive potential common shares | 118.1 | 122.8 | 118.9 | 128.5 | |||||||||||||
Net income (loss) per common share: | |||||||||||||||||
Basic | $ | 0.59 | $ | (5.08 | ) | $ | 1.14 | $ | (4.13 | ) | |||||||
Diluted | $ | 0.58 | $ | (5.08 | ) | $ | 1.12 | $ | (4.13 | ) | |||||||
Fair_Value_Measurements_and_Fi1
Fair Value Measurements and Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||
Nov. 02, 2013 | |||||||||||||||||
Fair Value of Assets and Liabilities Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||
The following table provides the fair value of our assets and liabilities measured at fair value on a recurring basis and recorded on our condensed consolidated balance sheets (in millions): | |||||||||||||||||
November 2, | October 27, | February 2, | |||||||||||||||
2013 | 2012 | 2013 | |||||||||||||||
Assets | |||||||||||||||||
Foreign Currency Contracts | |||||||||||||||||
Other current assets | $ | 2.6 | $ | 15.3 | $ | 7.3 | |||||||||||
Other noncurrent assets | — | 1.9 | 0.9 | ||||||||||||||
Company-owned life insurance(1) | 5.5 | 3.3 | 3.5 | ||||||||||||||
Total assets | 8.1 | 20.5 | 11.7 | ||||||||||||||
Liabilities | |||||||||||||||||
Foreign Currency Contracts | |||||||||||||||||
Accrued liabilities | 12.7 | 2.2 | 9.1 | ||||||||||||||
Other long-term liabilities | 3.5 | 0.3 | 4.4 | ||||||||||||||
Nonqualified deferred compensation(2) | 1.1 | 0.9 | 0.9 | ||||||||||||||
Total liabilities | $ | 17.3 | $ | 3.4 | $ | 14.4 | |||||||||||
-1 | Recognized in other non-current assets in our condensed consolidated balance sheets. | ||||||||||||||||
-2 | Recognized in accrued liabilities in our condensed consolidated balance sheets. | ||||||||||||||||
Gains and Losses on Derivative Instruments and Foreign Currency Transaction | ' | ||||||||||||||||
Activity related to the trading of derivative instruments and the offsetting impact of related intercompany loans and foreign currency assets and liabilities recognized in selling, general and administrative expense is as follows (in millions): | |||||||||||||||||
13 Weeks Ended | 39 Weeks Ended | ||||||||||||||||
November 2, | October 27, | November 2, | October 27, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Gains (losses) on the changes in fair value of derivative instruments | $ | 2.5 | $ | (16.7 | ) | $ | (7.8 | ) | $ | 0.2 | |||||||
Gains (losses) on the re-measurement of related intercompany loans and foreign currency assets and liabilities | (2.6 | ) | 19 | 10.8 | 1 | ||||||||||||
Total | $ | (0.1 | ) | $ | 2.3 | $ | 3 | $ | 1.2 | ||||||||
Significant_Products_Tables
Significant Products (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Nov. 02, 2013 | |||||||||||||||||||||||||||||||||
Sales and Percentage of Total Net Sales by Significant Product Category | ' | ||||||||||||||||||||||||||||||||
The following table sets forth net sales (in millions) and percentage of total net sales by significant product category for the periods indicated: | |||||||||||||||||||||||||||||||||
13 Weeks Ended | 39 Weeks Ended | ||||||||||||||||||||||||||||||||
November 2, | October 27, | November 2, | October 27, | ||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Net | Percent | Net | Percent | Net | Percent | Net | Percent | ||||||||||||||||||||||||||
Sales | of Total | Sales | of Total | Sales | of Total | Sales | of Total | ||||||||||||||||||||||||||
Net Sales: | |||||||||||||||||||||||||||||||||
New video game hardware | $ | 181.8 | 8.6 | % | $ | 184.8 | 10.4 | % | $ | 571.4 | 10.7 | % | $ | 716.6 | 13.4 | % | |||||||||||||||||
New video game software | 1,133.10 | 53.8 | % | 769.8 | 43.4 | % | 2,266.10 | 42.3 | % | 1,974.70 | 37.1 | % | |||||||||||||||||||||
Pre-owned video game products | 486.6 | 23.1 | % | 496.3 | 28 | % | 1,587.90 | 29.6 | % | 1,677.70 | 31.5 | % | |||||||||||||||||||||
Other1 | 305.2 | 14.5 | % | 321.9 | 18.2 | % | 930.3 | 17.4 | % | 956.2 | 18 | % | |||||||||||||||||||||
Total | $ | 2,106.70 | 100 | % | $ | 1,772.80 | 100 | % | $ | 5,355.70 | 100 | % | $ | 5,325.20 | 100 | % | |||||||||||||||||
1 | Primarily includes video game accessories, digital content and currency, new and pre-owned tablets, smartphones and other mobile products and services, PC entertainment software, revenues associated with Game Informer magazine and membership fees related to the PowerUp Rewards loyalty program. | ||||||||||||||||||||||||||||||||
Gross Profit and Gross Profit Percentages by Significant Product Category | ' | ||||||||||||||||||||||||||||||||
The following table sets forth gross profit (in millions) and gross profit percentages by significant product category for the periods indicated: | |||||||||||||||||||||||||||||||||
13 Weeks Ended | 39 Weeks Ended | ||||||||||||||||||||||||||||||||
November 2, | October 27, | November 2, | October 27, | ||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Gross | Gross | Gross | Gross | Gross | Gross | Gross | Gross | ||||||||||||||||||||||||||
Profit | Profit | Profit | Profit | Profit | Profit | Profit | Profit | ||||||||||||||||||||||||||
Percent | Percent | Percent | Percent | ||||||||||||||||||||||||||||||
Gross Profit: | |||||||||||||||||||||||||||||||||
New video game hardware | $ | 13.7 | 7.5 | % | $ | 18.8 | 10.2 | % | $ | 49.4 | 8.6 | % | $ | 58.1 | 8.1 | % | |||||||||||||||||
New video game software | 249.1 | 22 | % | 174.9 | 22.7 | % | 496.2 | 21.9 | % | 432.6 | 21.9 | % | |||||||||||||||||||||
Pre-owned video game products | 216.6 | 44.5 | % | 239.9 | 48.3 | % | 738 | 46.5 | % | 813.7 | 48.5 | % | |||||||||||||||||||||
Other1 | 119 | 39 | % | 123.8 | 38.5 | % | 374.5 | 40.3 | % | 372.2 | 38.9 | % | |||||||||||||||||||||
Total | $ | 598.4 | 28.4 | % | $ | 557.4 | 31.4 | % | $ | 1,658.10 | 31 | % | $ | 1,676.60 | 31.5 | % | |||||||||||||||||
1 | Primarily includes video game accessories, digital content and currency, new and pre-owned tablets, smartphones and other mobile products and services, PC entertainment software, revenues associated with Game Informer magazine and membership fees related to the PowerUp Rewards loyalty program. |
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | ||||||||||||||||
Nov. 02, 2013 | |||||||||||||||||
Sales by Segment | ' | ||||||||||||||||
Net sales by segment were as follows (in millions): | |||||||||||||||||
13 Weeks Ended | 39 Weeks Ended | ||||||||||||||||
November 2, | October 27, | November 2, | October 27, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
United States | $ | 1,434.80 | $ | 1,204.30 | $ | 3,730.10 | $ | 3,722.10 | |||||||||
Canada | 125.4 | 101.3 | 281.1 | 275.8 | |||||||||||||
Australia | 137.3 | 125.7 | 363.8 | 361.1 | |||||||||||||
Europe | 409.2 | 341.5 | 980.7 | 966.2 | |||||||||||||
Total | $ | 2,106.70 | $ | 1,772.80 | $ | 5,355.70 | $ | 5,325.20 | |||||||||
Operating earnings (loss) by segment were as follows (in millions): | |||||||||||||||||
13 Weeks Ended | 39 Weeks Ended | ||||||||||||||||
November 2, | October 27, | November 2, | October 27, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
United States | $ | 70.3 | $ | 51.1 | $ | 206.5 | $ | 206.8 | |||||||||
Canada | 11.2 | (96.1 | ) | 13 | (93.2 | ) | |||||||||||
Australia | 10.1 | (102.6 | ) | 12.7 | (100.3 | ) | |||||||||||
Europe | 17.5 | (455.9 | ) | (17.1 | ) | (467.2 | ) | ||||||||||
Total operating earnings (loss) | 109.1 | (603.5 | ) | 215.1 | (453.9 | ) | |||||||||||
Interest income | (0.3 | ) | (0.2 | ) | (0.5 | ) | (0.6 | ) | |||||||||
Interest expense | 1 | 1.2 | 3.4 | 2.9 | |||||||||||||
Earnings (loss) before income tax expense | $ | 108.4 | $ | (604.5 | ) | $ | 212.2 | $ | (456.2 | ) | |||||||
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Tables) | 9 Months Ended | ||||||||
Nov. 02, 2013 | |||||||||
Supplemental Cash Flow Information | ' | ||||||||
39 Weeks Ended | |||||||||
November 2, | October 27, | ||||||||
2013 | 2012 | ||||||||
Cash paid (in millions) during the period for: | |||||||||
Interest | $ | 2.1 | $ | 1.9 | |||||
Income taxes | $ | 212.3 | $ | 211.5 | |||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | Nov. 02, 2013 | Feb. 02, 2013 | Oct. 27, 2012 |
In Millions, unless otherwise specified | |||
Significant Accounting Policies [Line Items] | ' | ' | ' |
Restricted cash | $10.60 | $13.40 | $12.80 |
U.S. Treasury obligations | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Outstanding checks | $240 | $261.10 | $76.80 |
Summary_of_StockBased_Awards_G
Summary of Stock-Based Awards Granted (Detail) (USD $) | 9 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Shares | 1,635 | 1,410 |
Stock options - time-vested | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Shares | 457 | ' |
Weighted-Average Grant Date Fair Value | 7.1 | ' |
Restricted stock awards - time-vested | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Shares | 916 | 784 |
Weighted-Average Grant Date Fair Value | 24.82 | 23.66 |
Restricted stock awards - performance-based | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Shares | 262 | 626 |
Weighted-Average Grant Date Fair Value | 24.82 | 23.66 |
Assumptions_used_on_Stock_Opti
Assumptions used on Stock Options Granted (Detail) | 9 Months Ended |
Nov. 02, 2013 | |
Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items] | ' |
Volatility | 46.40% |
Risk-free interest rate | 1.00% |
Expected life (years) | '5 years 7 months 6 days |
Expected dividend yield | 4.30% |
StockBased_Compensation_Recogn
Stock-Based Compensation Recognized in Selling, General and Administrative Expenses (Detail) (Selling, General and Administrative Expense, USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 |
Selling, General and Administrative Expense | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | $5.20 | $5.30 | $16.70 | $15.70 |
Accounting_for_StockBased_Comp2
Accounting for Stock-Based Compensation - Additional Information (Detail) (Stock options - time-vested, USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 |
Stock options - time-vested | ' | ' | ' | ' |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ' | ' | ' | ' |
Unrecognized compensation expense | $38 | ' | $38 | ' |
Weighted average period related to unrecognized compensation expense | ' | ' | '2 years | ' |
Total intrinsic values of options exercised during the period | $27.60 | $1.10 | $48.70 | $2.20 |
Reconciliation_of_Common_Share
Reconciliation of Common Shares Used in Calculating Basic and Diluted Net Income (Loss) Per Common Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Millions, except Per Share data, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 | ||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ' | ' | ' | ' | ||
Consolidated net income (loss) attributable to GameStop Corp. | $68.60 | ($624.30) | $133.70 | ($530.80) | ||
Weighted average common shares outstanding | 116.8 | 122.8 | 117.7 | 128.5 | ||
Dilutive effect of options and restricted shares on common stock | 1.3 | [1] | ' | 1.2 | [1] | ' |
Common shares and dilutive potential common shares | 118.1 | 122.8 | 118.9 | 128.5 | ||
Net income (loss) per common share: | ' | ' | ' | ' | ||
Basic | $0.59 | ($5.08) | $1.14 | ($4.13) | ||
Diluted | $0.58 | ($5.08) | $1.12 | ($4.13) | ||
[1] | Excludes 1.1 million, 4.6 million, 1.6 million and 4.2 million share-based awards for the 13 weeks ended November 2, 2013, the 13 weeks ended October 27, 2012, the 39 weeks ended November 2, 2013 and the 39 weeks ended October 27, 2012, respectively, because their effects were antidilutive. |
Reconciliation_of_Common_Share1
Reconciliation of Common Shares Used in Calculating Basic and Diluted Net Income (Loss) Per Common Share (Parenthetical) (Detail) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 |
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ' | ' | ' | ' |
Antidilutive restricted shares and options excluded from computation of EPS | 1.1 | 4.6 | 1.6 | 4.2 |
Fair_Value_of_Assets_and_Liabi
Fair Value of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (Fair Value, Measurements, Recurring, USD $) | Nov. 02, 2013 | Feb. 02, 2013 | Oct. 27, 2012 | |||
In Millions, unless otherwise specified | ||||||
Assets | ' | ' | ' | |||
Company-owned life insurance | $5.50 | [1] | $3.50 | [1] | $3.30 | [1] |
Total assets | 8.1 | 11.7 | 20.5 | |||
Liabilities | ' | ' | ' | |||
Nonqualified deferred compensation | 1.1 | [2] | 0.9 | [2] | 0.9 | [2] |
Total liabilities | 17.3 | 14.4 | 3.4 | |||
Other current assets | ' | ' | ' | |||
Assets | ' | ' | ' | |||
Foreign Currency Contracts | 2.6 | 7.3 | 15.3 | |||
Other noncurrent assets | ' | ' | ' | |||
Assets | ' | ' | ' | |||
Foreign Currency Contracts | ' | 0.9 | 1.9 | |||
Accrued liabilities | ' | ' | ' | |||
Liabilities | ' | ' | ' | |||
Foreign Currency Contracts | 12.7 | 9.1 | 2.2 | |||
Other long-term liabilities | ' | ' | ' | |||
Liabilities | ' | ' | ' | |||
Foreign Currency Contracts | $3.50 | $4.40 | $0.30 | |||
[1] | Recognized in other non-current assets in our condensed consolidated balance sheets. | |||||
[2] | Recognized in accrued liabilities in our condensed consolidated balance sheets. |
Fair_Value_Measurements_and_Fi2
Fair Value Measurements and Financial Instruments - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |
In Millions, unless otherwise specified | Oct. 27, 2012 | Oct. 27, 2012 | Nov. 02, 2013 |
Fair Value of Financial Instruments [Line Items] | ' | ' | ' |
Notional value of foreign currency derivatives gross | $574.20 | $574.20 | $653.40 |
Notional value of foreign currency derivatives Net | 133.9 | 133.9 | 86.7 |
Assets impairment charges | ' | 678.8 | ' |
Goodwill impairment | 627 | 627 | ' |
Fair Value, Measurements, Nonrecurring | ' | ' | ' |
Fair Value of Financial Instruments [Line Items] | ' | ' | ' |
Assets impairment charges | 678.8 | 678.8 | ' |
Goodwill impairment | 627 | 627 | ' |
Trade name impairment | 44.9 | 44.9 | ' |
Property and equipment impairments | $6.90 | $6.90 | ' |
Gains_and_Losses_on_Derivative
Gains and Losses on Derivative Instruments and Foreign Currency Transaction (Detail) (Selling, General and Administrative Expense, USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 |
Selling, General and Administrative Expense | ' | ' | ' | ' |
Fair Value Derivative Contract Assets and Liabilities Measured On Recurring Basis Gain Loss Included In Earnings [Line Items] | ' | ' | ' | ' |
Gains (losses) on the changes in fair value of derivative instruments | $2.50 | ($16.70) | ($7.80) | $0.20 |
Gains (losses) on the re-measurement of related intercompany loans and foreign currency assets and liabilities | -2.6 | 19 | 10.8 | 1 |
Total | ($0.10) | $2.30 | $3 | $1.20 |
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |
In Millions, unless otherwise specified | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 |
Segment | |||
Goodwill And Intangible Assets [Line Items] | ' | ' | ' |
Number of operating segments | ' | 4 | ' |
Goodwill impairments | $627 | ' | $627 |
Trade Names | ' | ' | ' |
Goodwill And Intangible Assets [Line Items] | ' | ' | ' |
Impairment of indefinite-lived intangible assets | 44.9 | ' | ' |
Australia | ' | ' | ' |
Goodwill And Intangible Assets [Line Items] | ' | ' | ' |
Goodwill impairments | 107.1 | ' | ' |
Canada | ' | ' | ' |
Goodwill And Intangible Assets [Line Items] | ' | ' | ' |
Goodwill impairments | 100.3 | ' | ' |
Europe | ' | ' | ' |
Goodwill And Intangible Assets [Line Items] | ' | ' | ' |
Goodwill impairments | $419.60 | ' | ' |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 9 Months Ended | |||||||||||||||||
In Millions, unless otherwise specified | Nov. 02, 2013 | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Nov. 02, 2013 | Nov. 02, 2013 | Nov. 02, 2013 | Nov. 02, 2013 | Nov. 02, 2013 | Nov. 02, 2013 | Nov. 02, 2013 | Nov. 02, 2013 | Nov. 02, 2013 | Sep. 30, 2007 | Jan. 04, 2011 | Nov. 02, 2013 | Nov. 02, 2013 | Nov. 02, 2013 | Jan. 04, 2011 | Jan. 04, 2011 | Nov. 02, 2013 | Nov. 02, 2013 |
Minimum | Maximum | Prime Rate | Prime Rate | Prime Rate | London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | Unsecured Debt | LUXEMBOURG | LUXEMBOURG | Five Year Revolving Credit Facility | Five Year Revolving Credit Facility | Five Year Revolving Credit Facility | Five Year Revolving Credit Facility | Five Year Revolving Credit Facility | Five Year Revolving Credit Facility | Federal Funds Rate | London Interbank Offered Rate (LIBOR) | ||||
Minimum | Maximum | Minimum | Maximum | Appraisal value of the inventory | Eligible credit card receivables, net of certain reserves | Asset Based Loan Facility | Letter of Credit, sublimit | Prime Rate | Prime Rate | |||||||||||||
Debt Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit agreement, date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4-Jan-11 | ' | ' | ' | ' | ' | ' |
Line of credit, current borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $20 | $400 | ' | ' | ' | ' | ' | ' | ' |
Line of credit, maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400 | 50 | ' | ' |
Line of credit, term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility additional borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150 | ' | ' | ' | ' | ' | ' |
Line of credit facility maturity date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2016-01 | ' | ' | ' | ' | ' | ' |
Line of credit facility, asset restrictions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'The availability under the Revolver is limited to a borrowing base which allows us to borrow up to 90% of the appraisal value of the inventory, in each case plus 90% of eligible credit card receivables, net of certain reserves. Letters of credit reduce the amount available to borrow by their face value. | ' | ' | ' | ' | ' | ' |
Line of credit facility, dividend restrictions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Our ability to pay cash dividends, redeem options and repurchase shares is generally permitted, except under certain circumstances, including if Revolver excess availability is less than 20%, or is projected to be within 12 months after such payment. | ' | ' | ' | ' | ' | ' |
Line of credit facility, covenant terms | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'In the event that excess availability under the Revolver is at any time less than the greater of (1) $40.0 million or (2) 12.5% of the lesser of the total commitment or the borrowing base, we will be subject to a fixed charge coverage ratio covenant of 1.11.0. | ' | ' | ' | ' | ' | ' |
Line of credit facility, maximum borrowing capacity percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 90.00% | 90.00% | ' | ' | ' | ' |
Threshold for revolver excess availability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% | ' | ' | ' | ' | ' | ' |
Projected revolver usage percentage of the borrowing base during the prospective 12-month period, which is subject to meeting a fixed charge coverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' |
Fixed charge coverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.1 | ' | ' | ' | ' | ' | ' |
Commitment or the borrowing base, amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40 | ' | ' | ' | ' | ' | ' |
Lesser of the total commitment or the borrowing base, percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12.50% | ' | ' | ' | ' | ' | ' |
Line of credit facility, interest rate description | ' | 'The per annum interest rate under the Revolver is variable and is calculated by applying a margin (1) for prime rate loans of 1.25% to 1.50% above the highest of (a) the prime rate of the administrative agent, (b) the federal funds effective rate plus 0.50% or (c) the London Interbank Offered ("LIBO") rate for a 30-day interest period as determined on such day plus 1.00%, and (2) for LIBO rate loans of 2.25% to 2.50% above the LIBO rate. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest Rate Margin | ' | ' | ' | ' | ' | ' | 1.25% | 1.50% | ' | 2.25% | 2.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage in addition to the effective rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | 1.00% |
Line of credit facility unused capacity commitment fee percentage | 0.50% | 0.50% | ' | 0.38% | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Applicable margin rate | ' | ' | ' | ' | ' | 1.25% | ' | ' | 2.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit, maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 750 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line Of Credit facility, for general unsecured obligations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line Of credit facility, available for finance acquisitions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowings from the revolver | ' | 130 | 81 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayments of revolver borrowings | ' | 130 | 81 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding balance under revolving credit Facility | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average borrowings under revolver | 12.6 | 18.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average interest rate under revolver | 2.60% | 2.80% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total availability under the revolver | 391 | 391 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letters of credit outstanding | 9 | 9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit agreement, date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2007-09 | ' | ' | ' | ' | ' | ' | ' | ' |
Cash overdrafts outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Bank guarantees outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4.40 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Nov. 02, 2013 | Nov. 02, 2013 |
Income Taxes [Line Items] | ' | ' |
Increase in unrecognized tax benefits | $4.90 | ' |
Decrease in unrecognized tax benefits | ' | $13 |
Sales_and_Percentage_of_Total_
Sales and Percentage of Total Net Sales by Significant Product Category (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 | ||||
Product Information [Line Items] | ' | ' | ' | ' | ||||
Net Sales | $2,106.70 | $1,772.80 | $5,355.70 | $5,325.20 | ||||
Percent of Total | 100.00% | 100.00% | 100.00% | 100.00% | ||||
New Video Game Hardware | ' | ' | ' | ' | ||||
Product Information [Line Items] | ' | ' | ' | ' | ||||
Net Sales | 181.8 | 184.8 | 571.4 | 716.6 | ||||
Percent of Total | 8.60% | 10.40% | 10.70% | 13.40% | ||||
New Video Game Software | ' | ' | ' | ' | ||||
Product Information [Line Items] | ' | ' | ' | ' | ||||
Net Sales | 1,133.10 | 769.8 | 2,266.10 | 1,974.70 | ||||
Percent of Total | 53.80% | 43.40% | 42.30% | 37.10% | ||||
Pre-Owned Video Game Products | ' | ' | ' | ' | ||||
Product Information [Line Items] | ' | ' | ' | ' | ||||
Net Sales | 486.6 | 496.3 | 1,587.90 | 1,677.70 | ||||
Percent of Total | 23.10% | 28.00% | 29.60% | 31.50% | ||||
Other | ' | ' | ' | ' | ||||
Product Information [Line Items] | ' | ' | ' | ' | ||||
Net Sales | $305.20 | [1] | $321.90 | [1] | $930.30 | [1] | $956.20 | [1] |
Percent of Total | 14.50% | [1] | 18.20% | [1] | 17.40% | [1] | 18.00% | [1] |
[1] | Primarily includes video game accessories, digital content and currency, new and pre-owned tablets, smartphones and other mobile products and services, PC entertainment software, revenues associated with Game Informer magazine and membership fees related to the PowerUp Rewards loyalty program. |
Gross_Profit_and_Gross_Profit_
Gross Profit and Gross Profit Percentages by Significant Product Category (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 | ||||
Product Information [Line Items] | ' | ' | ' | ' | ||||
Gross Profit | $598.40 | $557.40 | $1,658.10 | $1,676.60 | ||||
Gross Profit Percent | 28.40% | 31.40% | 31.00% | 31.50% | ||||
New Video Game Hardware | ' | ' | ' | ' | ||||
Product Information [Line Items] | ' | ' | ' | ' | ||||
Gross Profit | 13.7 | 18.8 | 49.4 | 58.1 | ||||
Gross Profit Percent | 7.50% | 10.20% | 8.60% | 8.10% | ||||
New Video Game Software | ' | ' | ' | ' | ||||
Product Information [Line Items] | ' | ' | ' | ' | ||||
Gross Profit | 249.1 | 174.9 | 496.2 | 432.6 | ||||
Gross Profit Percent | 22.00% | 22.70% | 21.90% | 21.90% | ||||
Pre-Owned Video Game Products | ' | ' | ' | ' | ||||
Product Information [Line Items] | ' | ' | ' | ' | ||||
Gross Profit | 216.6 | 239.9 | 738 | 813.7 | ||||
Gross Profit Percent | 44.50% | 48.30% | 46.50% | 48.50% | ||||
Other | ' | ' | ' | ' | ||||
Product Information [Line Items] | ' | ' | ' | ' | ||||
Gross Profit | $119 | [1] | $123.80 | [1] | $374.50 | [1] | $372.20 | [1] |
Gross Profit Percent | 39.00% | [1] | 38.50% | [1] | 40.30% | [1] | 38.90% | [1] |
[1] | Primarily includes video game accessories, digital content and currency, new and pre-owned tablets, smartphones and other mobile products and services, PC entertainment software, revenues associated with Game Informer magazine and membership fees related to the PowerUp Rewards loyalty program. |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 9 Months Ended |
Nov. 02, 2013 | |
Segment Reporting Disclosure [Line Items] | ' |
Segment Reporting Description Of Segments | 'Segment results for the United States include retail operations in all 50 states, the District of Columbia, Guam and Puerto Rico, the electronic commerce Web site www.gamestop.com, Game Informer magazine, the online video gaming Web site www.kongregate.com, a digital PC game distribution platform available at www.gamestop.com/pcgames, the streaming technology company Spawn Labs, and an online consumer electronics marketplace available at www.buymytronics.com. |
United States | ' |
Segment Reporting Disclosure [Line Items] | ' |
Number of states the entity operates | 50 |
Europe | Retail Site | ' |
Segment Reporting Disclosure [Line Items] | ' |
Number of countries in which the entity operates | 11 |
Europe | E- Commerce | ' |
Segment Reporting Disclosure [Line Items] | ' |
Number of countries in which the entity operates | 6 |
Sales_by_Segment_Detail
Sales by Segment (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net Sales | $2,106.70 | $1,772.80 | $5,355.70 | $5,325.20 |
Operating Earnings | 109.1 | -603.5 | 215.1 | -453.9 |
Interest income | -0.3 | -0.2 | -0.5 | -0.6 |
Interest expense | 1 | 1.2 | 3.4 | 2.9 |
Earnings (loss) before income tax expense | 108.4 | -604.5 | 212.2 | -456.2 |
United States | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net Sales | 1,434.80 | 1,204.30 | 3,730.10 | 3,722.10 |
Operating Earnings | 70.3 | 51.1 | 206.5 | 206.8 |
Canada | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net Sales | 125.4 | 101.3 | 281.1 | 275.8 |
Operating Earnings | 11.2 | -96.1 | 13 | -93.2 |
Australia | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net Sales | 137.3 | 125.7 | 363.8 | 361.1 |
Operating Earnings | 10.1 | -102.6 | 12.7 | -100.3 |
Europe | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net Sales | 409.2 | 341.5 | 980.7 | 966.2 |
Operating Earnings | $17.50 | ($455.90) | ($17.10) | ($467.20) |
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information (Detail) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 |
Cash paid (in millions) during the period for: | ' | ' |
Interest | $2.10 | $1.90 |
Income taxes | $212.30 | $211.50 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | |||||||
In Millions, except Per Share data, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 | Dec. 04, 2013 | Nov. 19, 2013 | Nov. 15, 2013 | Nov. 03, 2013 | Nov. 19, 2013 | Nov. 19, 2013 |
Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | |||||
Spring Communications | Spring Communications | Dividend Declared | Dividend Paid | |||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash dividend, per share | $0.28 | $0.25 | $0.83 | $0.55 | ' | ' | ' | ' | $0.28 | ' |
Cash dividend, payment date | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19-Dec-13 |
Cash dividend, date of record | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4-Dec-13 |
Share repurchase, shares | ' | ' | ' | ' | 0.4 | ' | ' | ' | ' | ' |
Share repurchase, average Price Per Share | ' | ' | ' | ' | $50.75 | ' | ' | ' | ' | ' |
Share repurchase, new authorized amount | ' | ' | ' | ' | ' | $500 | ' | ' | ' | ' |
Share repurchase, remaining authorized amount | ' | ' | ' | ' | ' | 209.9 | ' | ' | ' | ' |
Business acquisition, purchase price | ' | ' | ' | ' | ' | ' | ' | 62.6 | ' | ' |
Business acquisition, loan amount | ' | ' | ' | ' | ' | ' | ' | 34.5 | ' | ' |
Business acquisition, loan repayment | ' | ' | ' | ' | ' | ' | $31.90 | ' | ' | ' |