Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jul. 29, 2017 | Aug. 30, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 29, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | GME | |
Entity Registrant Name | GameStop Corp. | |
Entity Central Index Key | 1,326,380 | |
Current Fiscal Year End Date | --02-03 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 101,307,160 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jul. 29, 2017 | Jan. 28, 2017 | Jul. 30, 2016 |
Current assets: | |||
Cash and cash equivalents | $ 262.1 | $ 669.4 | $ 289.5 |
Receivables, net | 185.4 | 220.9 | 126.6 |
Merchandise inventories, net | 1,140.6 | 1,121.5 | 1,093 |
Prepaid expenses and other current assets | 202.5 | 128.9 | 175.3 |
Total current assets | 1,790.6 | 2,140.7 | 1,684.4 |
Property and equipment: | |||
Land | 19.7 | 18.6 | 18.1 |
Buildings and leasehold improvements | 753.4 | 724.5 | 698.8 |
Fixtures and equipment | 965.7 | 931.4 | 899.9 |
Total property and equipment | 1,738.8 | 1,674.5 | 1,616.8 |
Less accumulated depreciation | 1,281.4 | 1,203.5 | 1,135.9 |
Net property and equipment | 457.4 | 471 | 480.9 |
Deferred Tax Assets, Net, Noncurrent | 73.2 | 59 | 39 |
Goodwill | 1,698 | 1,725.2 | 1,490 |
Other intangible assets, net | 512.1 | 507.2 | 369.7 |
Other noncurrent assets | 78.5 | 72.8 | 69.6 |
Total noncurrent assets | 2,819.2 | 2,835.2 | 2,449.2 |
Total assets | 4,609.8 | 4,975.9 | 4,133.6 |
Current liabilities: | |||
Accounts payable | 469.8 | 616.6 | 370.7 |
Accrued liabilities | 855.8 | 1,090.9 | 682.4 |
Income taxes payable | 12.1 | 54 | 3.4 |
Total current liabilities | 1,337.7 | 1,761.5 | 1,056.5 |
Deferred income taxes | 22.3 | 23 | 30.1 |
Long-term debt | 816.4 | 815 | 813.5 |
Other long-term liabilities | 121.7 | 122.3 | 82.5 |
Total long-term liabilities | 960.4 | 960.3 | 926.1 |
Total liabilities | 2,298.1 | 2,721.8 | 1,982.6 |
Commitments and Contingencies (Note 4) | |||
Stockholders' equity: | |||
Class A common stock — $.001 par value; 300.0 shares authorized; 101.3, 104.0 and 101.0 shares issued and outstanding | 0.1 | 0.1 | 0.1 |
Additional paid-in capital | 7.9 | 0 | 5.2 |
Accumulated other comprehensive loss | (1.1) | (47.3) | (38.8) |
Retained earnings | 2,304.8 | 2,301.3 | 2,184.5 |
Total stockholders’ equity | 2,311.7 | 2,254.1 | 2,151 |
Total liabilities and stockholders’ equity | $ 4,609.8 | $ 4,975.9 | $ 4,133.6 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jul. 29, 2017 | Jan. 28, 2017 | Jul. 30, 2016 |
Statement of Financial Position [Abstract] | |||
Class A common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 |
Class A common stock, shares authorized | 300,000,000 | 300,000,000 | 300,000,000 |
Class A common stock, shares issued | 101,300,000 | 101,000,000 | 104,000,000 |
Class A common stock, shares outstanding | 101,300,000 | 101,000,000 | 104,000,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2017 | Jul. 30, 2016 | Jul. 29, 2017 | Jul. 30, 2016 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,687.6 | $ 1,631.8 | $ 3,733.5 | $ 3,603.3 |
Cost of sales | 1,063.9 | 1,014.1 | 2,407.3 | 2,310.1 |
Gross profit | 623.7 | 617.7 | 1,326.2 | 1,293.2 |
Selling, general and administrative expenses | 542.4 | 518.4 | 1,105.9 | 1,039.2 |
Depreciation and amortization | 37.7 | 41 | 75.6 | 81.7 |
Operating earnings | 43.6 | 58.3 | 144.7 | 172.3 |
Interest income | 0 | (0.3) | (0.2) | (0.5) |
Interest expense | 14.4 | 13.9 | 28.5 | 24.9 |
Earnings before income tax expense | 29.2 | 44.7 | 116.4 | 147.9 |
Income tax expense | 7 | 16.8 | 35.2 | 54.2 |
Net income | $ 22.2 | $ 27.9 | $ 81.2 | $ 93.7 |
Basic | $ 0.22 | $ 0.27 | $ 0.80 | $ 0.90 |
Diluted | 0.22 | 0.27 | 0.80 | 0.90 |
Dividends per common share | $ 0.38 | $ 0.37 | $ 0.76 | $ 0.74 |
Basic | 101.4 | 104 | 101.3 | 103.9 |
Diluted | 101.5 | 104.3 | 101.4 | 104.2 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2017 | Jul. 30, 2016 | Jul. 29, 2017 | Jul. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 22.2 | $ 27.9 | $ 81.2 | $ 93.7 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | 54.4 | 0.8 | 46.2 | 50 |
Total comprehensive income | $ 76.6 | $ 28.7 | $ 127.4 | $ 143.7 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements Of Changes In Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Retained Earnings |
Beginning Balance (in shares) at Jan. 30, 2016 | 103.3 | ||||
Beginning Balance at Jan. 30, 2016 | $ 2,081 | $ 0.1 | $ 0 | $ (88.8) | $ 2,169.7 |
Net income | 93.7 | 93.7 | |||
Foreign currency translation | 50 | 50 | |||
Dividends | (78) | (78) | |||
Stock-based compensation | 12.4 | 12.4 | |||
Exercise of stock options and issuance of shares upon vesting of restricted stock grants (in shares) | 0.7 | ||||
Exercise of stock options and issuance of shares upon vesting of restricted stock grants | (8.1) | (7.2) | (0.9) | ||
Ending Balance (in shares) at Jul. 30, 2016 | 104 | ||||
Ending Balance at Jul. 30, 2016 | 2,151 | $ 0.1 | 5.2 | (38.8) | 2,184.5 |
Beginning Balance (in shares) at Jan. 28, 2017 | 101 | ||||
Beginning Balance at Jan. 28, 2017 | 2,254.1 | $ 0.1 | 0 | (47.3) | 2,301.3 |
Net income | 81.2 | 81.2 | |||
Foreign currency translation | 46.2 | 46.2 | |||
Dividends | (77.7) | (77.7) | |||
Stock-based compensation | 11.2 | 11.2 | |||
Exercise of stock options and issuance of shares upon vesting of restricted stock grants (in shares) | 0.3 | ||||
Exercise of stock options and issuance of shares upon vesting of restricted stock grants | (3.3) | (3.3) | |||
Ending Balance (in shares) at Jul. 29, 2017 | 101.3 | ||||
Ending Balance at Jul. 29, 2017 | $ 2,311.7 | $ 0.1 | $ 7.9 | $ (1.1) | $ 2,304.8 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements Of Changes In Stockholders' Equity (Parenthetical) - USD ($) $ in Millions | 6 Months Ended | |
Jul. 29, 2017 | Jul. 30, 2016 | |
Tax benefit for exercise of employee stock options and issuance of shares upon vesting of restricted stock grants | $ 0 | |
Dividends declared per common share | $ 0.76 | $ 0.74 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jul. 29, 2017 | Jul. 30, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 81.2 | $ 93.7 |
Adjustments to reconcile net income (loss) to net cash flows provided by operating activities: | ||
Depreciation and amortization (including amounts in cost of sales) | 76.2 | 82.4 |
Stock-based compensation expense | 11.2 | 12.4 |
Deferred Income Tax Expense (Benefit) | (14.2) | 0 |
Excess Tax Benefit from Share-based Compensation, Operating Activities | 0 | (0.3) |
Gain (Loss) on Disposition of Property Plant Equipment | 2.8 | 3.9 |
Gain (Loss) on Disposition of Business | (7.3) | 0 |
Other | 21.9 | 4.9 |
Changes in operating assets and liabilities, net: | ||
Receivables, net | 31.2 | 51.4 |
Merchandise inventories | (16.5) | 68.5 |
Prepaid expenses and other current assets | (10.9) | (13.2) |
Prepaid income taxes and income taxes payable | (92.4) | (147.8) |
Accounts payable and accrued liabilities | (400.8) | (591.4) |
Changes in other long-term liabilities | 5.9 | (1.3) |
Net cash flows used in operating activities | (311.7) | (436.2) |
Excess Tax Benefit from Share-based Compensation, Financing Activities | 0 | (0.3) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (47.2) | (66.1) |
Acquisitions, net of cash acquired | (8.5) | (47.8) |
Proceeds from Divestiture of Businesses | 51.2 | 0 |
Other | 0.4 | 4.9 |
Net cash flows used in investing activities | (4.1) | (109) |
Cash flows from financing activities: | ||
Repurchase of common shares | (22) | (10) |
Dividends paid | (78.2) | (79.3) |
Proceeds from Issuance of Long-term Debt | 0 | 475 |
RepaymentofAcquisitionRelatedDebt | 0 | (0.2) |
Borrowings from the revolver | 333 | 100 |
Repayments of revolver borrowings | (333) | (100) |
Payments of financing costs | 0 | (8.1) |
Payments Related to Tax Withholding for Share-based Compensation | (3.3) | (7.8) |
Net cash flows (used in) provided by financing activities | (103.5) | 369.3 |
Exchange rate effect on cash and cash equivalents | 12 | 15 |
(Decrease) increase in cash and cash equivalents | (407.3) | (160.9) |
Cash and cash equivalents at beginning of period | 669.4 | 450.4 |
Cash and cash equivalents at end of period | 262.1 | $ 289.5 |
Kongregate [Member] | ||
Adjustments to reconcile net income (loss) to net cash flows provided by operating activities: | ||
Gain (Loss) on Disposition of Business | $ (7.3) |
Condensed Consolidated Stateme9
Condensed Consolidated Statements Of Cash Flows Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) | 6 Months Ended | |
Jul. 29, 2017 | Jul. 30, 2016 | |
Statement of Cash Flows [Abstract] | ||
Cash Acquired from Acquisition |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jul. 29, 2017 | |
Accounting Policies [Abstract] | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | The Company GameStop Corp. (“GameStop,” “we,” “us,” “our,” or the “Company”) is a global family of specialty retail brands that makes the most popular technologies affordable and simple. Within our family of brands, we are the world’s largest omnichannel video game retailer, the largest AT&T® (“AT&T”) authorized retailer, the largest Apple© certified products reseller, a Cricket Wireless TM reseller (“Cricket,” an AT&T brand) and the owner of www.thinkgeek.com, one of the world’s largest sellers of collectible pop-culture themed products. As of July 29, 2017 , GameStop's retail network and family of brands include 7,480 company-operated stores in the United States, Australia, Canada and Europe. We have five reportable segments, which are comprised of four geographic Video Game Brands segments—United States, Canada, Australia and Europe—and a Technology Brands segment. Our Technology Brands segment includes our Spring Mobile and Simply Mac businesses. Spring Mobile owns and operates our AT&T branded wireless retail stores and Cricket branded pre-paid wireless stores. Basis of Presentation and Consolidation The unaudited condensed consolidated financial statements include our accounts and the accounts of our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The unaudited condensed consolidated financial statements included herein reflect all adjustments (consisting only of normal, recurring adjustments) which are, in our opinion, necessary for a fair presentation of the information as of and for the periods presented. These unaudited condensed consolidated interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the instructions to Quarterly Report on Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all disclosures required under GAAP for complete consolidated financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with our annual report on Form 10-K for the 52 weeks ended January 28, 2017 (the “2016 Annual Report on Form 10-K”). 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 our business, the results of operations for the 26 weeks ended July 29, 2017 are not indicative of the results to be expected for the 53 weeks ending February 3, 2018. Restricted Cash Restricted cash of $14.7 million , $10.3 million and $10.2 million as of July 29, 2017 , July 30, 2016 and January 28, 2017 , 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 unaudited condensed consolidated balance sheets. Dividend On August 21, 2017 , our Board of Directors approved a quarterly cash dividend to our stockholders of $0.38 per share of Class A Common Stock payable on September 21, 2017 to stockholders of record at the close of business on September 8, 2017 . Future dividends will be subject to approval by our Board of Directors. Adoption of New Accounting Pronouncements In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2017-04, Intangibles—Goodwill and Other, Simplifying the Test for Goodwill Impairment, which simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill and the carrying amount. Instead, entities will record an impairment charge based on the excess of a reporting unit's carrying amount over its estimated fair value. We early adopted this updated standard which did not have an impact to our consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory, which eliminates the exception to defer the tax effects of intra-entity asset transfers (intercompany sales). Prior to this update, the tax effects of intra-entity asset transfers were deferred until the transferred asset was sold to a third party or otherwise recovered through use, which was an exception to the general requirement for comprehensive recognition of current and deferred income taxes. We early adopted this updated standard, effective January 29, 2017, and as a result we recognize tax expense or benefit from intercompany sales of assets other than inventory in the period in which the transaction occurs. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of accounting for employee share-based payment transactions. The amendments of the updated standard include, among other things, the requirement to recognize excess tax benefits and deficiencies through earnings and present the related cash flows in operating activities in the statement of cash flows, the election of a policy to either estimate forfeitures when determining periodic expense or recognize actual forfeitures when they occur, and an increase in the allowable income tax withholding from the minimum to maximum statutory rate and its classification in the statement of cash flows. As a result of the adoption of this updated standard, effective January 29, 2017, excess tax benefits and deficiencies are recognized in our results of operations and are presented in cash flows from operating activities in our statement of cash flows on a prospective basis. In addition, we elected to recognize actual forfeitures of stock-based awards as they occur. The adoption of this updated standard did not result in a material impact to our consolidated financial statements. Recently Issued Accounting Pronouncements In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows, Classification of Certain Cash Receipts and Cash Payments, which provides guidance on eight specific cash flow issues in regard to how cash receipts and cash payments are presented and classified in the statement of cash flows. The updated standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those years, with early adoption permitted. The amendments in the ASU should be adopted on a retrospective basis unless it is impracticable to apply, in which case the amendments should be applied prospectively as of the earliest date practicable. We are currently evaluating the impact that this standard will have on our consolidated financial statements and disclosures. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which sets forth a new five-step revenue recognition model that replaces the prior revenue recognition guidance in its entirety. The underlying principle of the new standard is that an entity will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects what it expects in exchange for the goods or services. The updated standard also required additional disclosures on the nature, timing, and uncertainty of revenue and related cash flows. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date, which delays the effective date of ASU 2014-09 by one year to December 15, 2017 (with early adoption permitted). In 2016, the FASB issued several ASUs that further amended the new revenue standard in the areas of principal versus agent evaluation, licenses of intellectual property, identifying performance obligations, and other clarifications and technical corrections. Entities may use either a full retrospective or modified retrospective transition approach in applying these ASUs. We plan to adopt these new standards in the first quarter of fiscal 2018 and intend to utilize the modified retrospective transition approach. We do not expect the adoption of the new revenue standards to have a material impact to our consolidated balance sheets, statements of operations or statements of cash flows. Based on our ongoing evaluation, we expect that the new revenue standards will primarily impact the accounting of our PowerUp Rewards loyalty program and the recognition of breakage associated with our gift cards liability. For our loyalty program, we currently estimate the net cost of the rewards that will be issued and redeemed and record this cost (presented as cost of sales) and the associated balance sheet liability as points are accumulated by our loyalty program members. Under the new standards, the transaction price will be allocated between the product(s) sold and loyalty points earned, where the portion allocated to the loyalty points will be initially recorded as deferred revenue and subsequently recognized as revenue upon redemption or expiration of the loyalty points. Estimated breakage on unused gift cards and merchandise credit liabilities is currently recognized on a quarterly basis (recorded to cost of sales) for balances older than two years to the extent that we believe the likelihood of redemption is remote. Under the new standards, we will recognize breakage in revenue based on and in proportion to historical redemption patterns, regardless of the age of the unused gift cards and merchandise credit liabilities. Significant items yet to be finalized in our implementation efforts include quantification of the cumulative-effect adjustments to be recorded upon adoption, which we do not expect to be material; our ongoing evaluation of changes to business processes and related controls; and the impact of the new revenue-related disclosure requirements to our consolidated financial statements. In March 2016, the FASB issued ASU 2016-04, Recognition of Breakage for Certain Prepaid Stored-Value Products. The standard specifies how prepaid stored-value product liabilities should be derecognized, thereby eliminating the current and potential future diversity in practice. Consistent with ASU 2014-09 related to revenue recognition, the standard requires derecognition in proportion with the rights expected to be exercised by the holder. Entities may adopt this standard using either a modified retrospective transition approach with a cumulative-effect adjustment to retained earnings or a full retrospective transition approach. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, with early adoption permitted. We continue to evaluate the impact that this standard will have on our consolidated financial statements and footnote disclosures. In February 2016, the FASB issued ASU 2016-02, Leases. The standard requires a lessee to recognize a liability related to lease payments and an offsetting right-of-use asset representing a right to use the underlying asset for the lease term on the balance sheet. Entities are required to use a modified retrospective transition approach for leases that exist or are entered into after the beginning of the earliest comparative period presented in the financial statements, with certain reliefs available. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, with early adoption permitted. We are currently evaluating the overall impact to our consolidated financial statements, though we expect the adoption to result in a material increase in the assets and liabilities reflected in our consolidated balance sheets. |
Divestitures (Notes)
Divestitures (Notes) | 6 Months Ended |
Jul. 29, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 2. Divestitures On July 21, 2017, we sold our ownership interest in Kongregate, a web and mobile gaming platform and publisher of mobile games, for proceeds of $54.7 million , net of transaction costs, of which $3.5 million is restricted cash held in escrow primarily for indemnification purposes. We recognized a gain on the sale of $7.3 million , net of tax, which is classified in selling, general and administrative expenses in our consolidated statements of operations for the 13 weeks and 26 weeks ended July 29, 2017. The disposed net assets of Kongregate primarily consisted of goodwill. |
Fair Value Measurements and Fin
Fair Value Measurements and Financial Instruments | 6 Months Ended |
Jul. 29, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Financial Instruments | 3. Fair Value Measurements and Financial Instruments Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Applicable accounting standards require disclosures that categorize assets and liabilities measured at fair value into one of three different levels depending on the observability of the inputs employed in the measurement. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs are observable inputs other than quoted prices included within Level 1 for the asset or liability, either directly or indirectly through market-corroborated inputs. Level 3 inputs are unobservable inputs for the asset or liability reflecting our assumptions about pricing by market participants. Assets and Liabilities that are Measured at Fair Value on a Recurring Basis Assets and liabilities that are measured at fair value on a recurring basis include our foreign currency contracts, life insurance policies we own that have a cash surrender value, contingent consideration payable associated with acquisitions, and certain nonqualified deferred compensation liabilities. We value our foreign currency contracts, our life insurance policies with cash surrender values and certain nonqualified deferred compensation liabilities based on Level 2 inputs using quotations provided by major market news services, such as Bloomberg , and industry-standard models that consider various assumptions, including quoted forward prices, time value, volatility factors, and contractual prices for the underlying instruments, as well as other relevant economic measures, all of which are observable in active markets. When appropriate, valuations are adjusted to reflect credit considerations, generally based on available market evidence. In connection with our acquisition of certain assets from Cellular World and Red Skye Wireless during the fiscal year ended January 28, 2017 ("fiscal 2016"), we recognized an acquisition-date liability of $43.2 million representing the total estimated fair value of the contingent consideration. The fair value was estimated based on Level 3 inputs which include future sales projections derived from our historical experience with comparable acquired stores and a discount rate commensurate with the risks and inherent uncertainty in the business. There was no material change in the fair value of the contingent consideration from the date of acquisition through July 29, 2017 . The following table provides the fair value of our assets and liabilities measured at fair value on a recurring basis and recorded in our unaudited condensed consolidated balance sheets (in millions): July 29, 2017 July 30, 2016 January 28, 2017 Level 2 Level 3 Level 2 Level 3 Level 2 Level 3 Assets Foreign currency contracts Other current assets $ 4.5 $ — $ 15.7 $ — $ 13.3 $ — Other noncurrent assets 0.3 — — — 0.1 — Company-owned life insurance (1) 12.8 — 10.4 — 12.4 — Total assets $ 17.6 $ — $ 26.1 $ — $ 25.8 $ — Liabilities Foreign currency contracts Accrued liabilities $ 6.5 $ — $ 6.1 $ — $ 4.3 $ — Other long-term liabilities 0.4 — — — 0.1 — Nonqualified deferred compensation (2) 1.1 — 1.0 — 1.0 — Contingent consideration (3) — 43.2 — — — 43.2 Total liabilities $ 8.0 $ 43.2 $ 7.1 $ — $ 5.4 $ 43.2 __________________________________________________ (1) Recognized in other non-current assets in our unaudited condensed consolidated balance sheets. (2) Recognized in accrued liabilities in our unaudited condensed consolidated balance sheets. (3) As of July 29, 2017, $43.2 million was included in accrued liabilities in our unaudited condensed consolidated balance sheets. As of January 28, 2017, the current portion of $20.0 million was included in accrued liabilities and the noncurrent portion of $23.2 million was included in other long-term liabilities in our unaudited condensed consolidated balance sheets. We use forward exchange contracts, foreign currency options and cross-currency swaps (together, the “foreign currency contracts”) to manage currency risk primarily related to intercompany loans denominated in non-functional currencies and certain foreign currency assets and liabilities. The 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 $480.2 million , $792.2 million and $586.0 million as of July 29, 2017 , July 30, 2016 and January 28, 2017 , respectively. Activity related to the trading of derivative instruments and the offsetting impact of related intercompany and foreign currency assets and liabilities recognized in selling, general and administrative expense is as follows (in millions): 13 Weeks Ended 26 Weeks Ended July 29, July 30, July 29, July 30, (Losses) gains on the change in fair value of derivative instruments $ (2.1 ) $ 3.5 $ (10.1 ) $ 5.5 Gains (losses) on the re-measurement of related intercompany loans and foreign currency assets and liabilities 4.2 (2.9 ) 12.5 (3.4 ) Total $ 2.1 $ 0.6 $ 2.4 $ 2.1 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. Assets that are Measured at Fair Value on a Nonrecurring Basis Assets that are measured at fair value on a nonrecurring basis relate primarily to property and equipment, goodwill and other intangible assets, which are remeasured when the estimated fair value is below its carrying value. For these assets, we do not periodically adjust carrying value to fair value; rather, when we determine that impairment has occurred, the carrying value of the asset is reduced to its fair value. We did not record any significant impairment charges related to assets measured at fair value on a nonrecurring basis during the 26 weeks ended July 29, 2017 or July 30, 2016 . Other Fair Value Disclosures The carrying values of our cash equivalents, receivables, net, accounts payable and notes payable approximate the fair value due to their short-term maturities. As of July 29, 2017 , our unsecured 5.50% senior notes due in 2019 had a net carrying value of $347.2 million and a fair value of $360.7 million , and our unsecured 6.75% senior notes due in 2021 had a net carrying value of $469.2 million and a fair value of $494.7 million . The fair values of our senior notes were determined based on quoted market prices obtained through an external pricing source which derives its price valuations from daily marketplace transactions, with adjustments to reflect the spreads of benchmark bonds, credit risk and certain other variables. We have determined this to be a Level 2 measurement as all significant inputs into the quote provided by our pricing source are observable in active markets. |
Debt
Debt | 6 Months Ended |
Jul. 29, 2017 | |
Debt Disclosure [Abstract] | |
Debt | 4. Debt Senior Notes The carrying value of our long-term debt is comprised as follows (in millions): July 29, 2017 July 30, 2016 January 28, 2017 2019 Senior Notes principal amount $ 350.0 $ 350.0 $ 350.0 2021 Senior Notes principal amount 475.0 475.0 475.0 Less: Unamortized debt financing costs (8.6 ) (11.5 ) (10.0 ) Long-term debt, net $ 816.4 $ 813.5 $ 815.0 2019 Senior Notes. In September 2014 , we issued $350.0 million aggregate principal amount of unsecured 5.50% senior notes due October 1, 2019 (the "2019 Senior Notes"). The 2019 Senior Notes bear interest at the rate of 5.50% per annum with interest payable semi-annually in arrears on April 1 and October 1 of each year beginning on April 1, 2015. We incurred fees and expenses related to the 2019 Senior Notes offering of $6.3 million , which were capitalized during the third quarter of fiscal 2014 and are being amortized as interest expense over the term of the notes. The 2019 Senior Notes were sold in a private placement and are not registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"). The 2019 Senior Notes were offered in the U.S. to “qualified institutional buyers” pursuant to the exemption from registration under Rule 144A of the Securities Act and in exempted offshore transactions pursuant to Regulation S under the Securities Act. 2021 Senior Notes. In March 2016 , we issued $475.0 million aggregate principal amount of unsecured 6.75% senior notes due March 15, 2021 (the "2021 Senior Notes"). The 2021 Senior Notes bear interest at the rate of 6.75% per annum with interest payable semi-annually in arrears on March 15 and September 15 of each year beginning on September 15, 2016. The net proceeds from the offering were used for general corporate purposes, including acquisitions and dividends. We incurred fees and expenses related to the 2021 Senior Notes offering of $8.1 million , which were capitalized during the first quarter of fiscal 2016 and are being amortized as interest expense over the term of the notes. The 2021 Senior Notes were sold in a private placement and will not be registered under the Securities Act. The 2021 Senior Notes were offered in the U.S. to "qualified institutional buyers" pursuant to the exemption from registration under Rule 144A of the Securities Act and in exempted offshore transactions pursuant to Regulation S under the Securities Act. The indentures governing the 2019 Senior Notes and the 2021 Senior Notes (together, the "Senior Notes") do not contain financial covenants but do contain covenants which place certain restrictions on us and our subsidiaries, including limitations on asset sales, additional liens, investments, stock repurchases, the incurrence of additional debt and the repurchase of debt that is junior to the Senior Notes. In addition, the indentures restrict payments of dividends to stockholders (other than dividends payable in shares of capital stock) if one of the following conditions exist: (i) an event of default has occurred, (ii) we could not incur additional debt under the general debt covenant of the indentures or (iii) the sum of the proposed dividend and all other dividends and other restricted payments made under the indentures from the date of the indentures governing the Senior Notes exceeds the sum of 50% of consolidated net income plus 100% of net proceeds from capital stock sales and other amounts set forth in and determined as provided in the indentures. These restrictions are subject to exceptions and qualifications, including that we can pay up to $175 million in dividends to stockholders in each fiscal year and we can pay dividends and make other restricted payments in an unlimited amount if our leverage ratio on a pro forma basis after giving effect to the dividend payment and other restricted payments would be less than or equal to 1.0 :1.0. The indentures contain customary events of default, including payment defaults, breaches of covenants, failure to pay certain judgments and certain events of bankruptcy, insolvency and reorganization. If an event of default occurs and is continuing, the principal amount of the Senior Notes, plus accrued and unpaid interest, if any, may be declared immediately due and payable. These amounts automatically become due and payable if an event of default relating to certain events of bankruptcy, insolvency or reorganization occurs. Revolving Credit Facility In January 2011, we entered into a $400 million credit agreement, which we amended and restated on March 25, 2014 and further amended on September 15, 2014 (the “Revolver”). The Revolver is a five -year, asset-based facility that is secured by substantially all of our assets and the assets of our domestic subsidiaries. Availability under the Revolver is subject to a monthly borrowing base calculation. The Revolver includes a $50 million letter of credit sublimit. The amendments extended the maturity date to March 25, 2019 ; increased the expansion feature under the Revolver from $150 million to $200 million , subject to certain conditions; and revised certain other terms, including a reduction of the fee we are required to pay on the unused portion of the total commitment amount. Borrowing 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, plus 90% of eligible credit card receivables, net of certain reserves. The borrowing base provides for borrowing of up to 92.5% of the appraisal value during the fiscal months of August through October. Letters of credit reduce the amount available to borrow under the Revolver by an amount equal to the face value of the letters of credit. Our ability to pay cash dividends, redeem options and repurchase shares is generally permitted, except under certain circumstances, including if either (1) excess availability under the Revolver is less than 30% , or is projected to be within 12 months after such payment or (2) excess availability under the Revolver is less than 15% , or is projected to be within 12 months after such payment, and the fixed charge coverage ratio, as calculated on a pro-forma basis for the prior 12 months, is 1.1 :1.0 or less. In the event that excess availability under the Revolver is at any time less than the greater of (1) $30 million or (2) 10% of the lesser of the total commitment or the borrowing base, we will be subject to a fixed charge coverage ratio covenant of 1.0 :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 $1 billion of senior secured debt and $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 0.25% to 0.75% 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 1.25% to 1.75% 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 0.25% for any unused portion of the total commitment under the Revolver. As of July 29, 2017 , the applicable margin was 0.25% for prime rate loans and 1.25% for LIBO rate loans. The Revolver provides for customary events of default with corresponding grace periods, including failure to pay any principal or interest when due, failure to comply with covenants, any material representation or warranty made by 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 26 weeks ended July 29, 2017 , we cumulatively borrowed $333.0 million and repaid $333.0 million under the Revolver. As of July 29, 2017 , total availability under the Revolver was $363.9 million , with no outstanding borrowings and outstanding standby letters of credit of $7.5 million . We are currently in compliance with the financial requirements of the Revolver. Luxembourg Line of Credit 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 July 29, 2017 , there were no cash overdrafts outstanding under the Line of Credit and bank guarantees outstanding totaled $9.9 million . |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 29, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 5. Commitments and Contingencies Commitments During the 26 weeks ended July 29, 2017 , there were no material changes to our commitments as disclosed in our 2016 Annual Report on Form 10-K. Contingencies Acquisitions In connection with our acquisition of certain assets from Cellular World and Red Skye Wireless, we recognized an acquisition-date liability of $43.2 million representing the fair value of future contingent consideration that we estimate will range from $40.0 million to $50.0 million . As of July 29, 2017 , there has not been a material change to the liability since the acquisition date. Legal Proceedings 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, stockholder 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. Certain of our French subsidiaries have been under audit by the French Tax Administration (the "FTA") for fiscal years 2008 through 2015. We received tax reassessment notices on December 23, 2015 and April 4, 2016, pursuant to which the FTA asserted that the French subsidiaries were ineligible to claim certain tax deductions from November 4, 2008, through January 31, 2013, resulting in a potential additional tax charge of approximately €85.5 million . We may receive additional tax reassessments in material amounts for subsequent fiscal years. We filed a response to each reassessment and intend to vigorously contest the reassessments through administrative procedures. If we are unable to resolve this matter through administrative remedies at the FTA, we plan to pursue judicial remedies. We believe our tax positions will be sustained and have not taken a reserve for any potential adjustment based on the reassessment. If we were not to prevail, then the adjustment to our income tax provision could be material. |
Computation of Net Income (Loss
Computation of Net Income (Loss) Per Common Share | 6 Months Ended |
Jul. 29, 2017 | |
Earnings Per Share [Abstract] | |
Computation of Net Income (Loss) Per Common Share | 6. Earnings Per Share Basic net income per common share is computed by dividing the net income available to common stockholders by the weighted- average number of common shares outstanding during the period. Diluted net income per common share is computed by dividing the net income available to common stockholders by the weighted-average number of common shares outstanding and potentially dilutive securities outstanding during the period. Potentially dilutive securities include stock options and unvested restricted stock outstanding during the period, using the treasury stock method. Potentially dilutive securities are excluded from the computations of diluted earnings per share if their effect would be antidilutive. A reconciliation of shares used in calculating basic and diluted net income per common share is as follows (in millions, except per share data): 13 Weeks Ended 26 Weeks Ended July 29, July 30, July 29, July 30, Net income $ 22.2 $ 27.9 $ 81.2 $ 93.7 Basic weighted average common shares outstanding 101.4 104.0 101.3 103.9 Dilutive effect of stock options and restricted stock awards 0.1 0.3 0.1 0.3 Diluted weighted average common shares outstanding 101.5 104.3 101.4 104.2 Basic earnings per share $ 0.22 $ 0.27 $ 0.80 $ 0.90 Diluted earnings per share $ 0.22 $ 0.27 $ 0.80 $ 0.90 Anti-dilutive stock options and restricted stock awards 2.1 1.4 2.1 1.3 |
Significant Products
Significant Products | 6 Months Ended |
Jul. 29, 2017 | |
Text Block [Abstract] | |
Significant Products | 7. Significant Products The tables below set forth net sales, percentages of total net sales, gross profit and gross profit percentages by significant product category for the periods indicated (dollars in millions). 13 Weeks Ended 26 Weeks Ended July 29, 2017 July 30, 2016 July 29, 2017 July 30, 2016 Net Sales Percent of Total Net Sales Percent of Total Net Sales Percent of Total Net Sales Percent of Total New video game hardware (1) $ 248.4 14.7 % $ 216.4 13.3 % $ 638.3 17.1 % $ 529.3 14.7 % New video game software 369.3 21.9 382.2 23.4 889.8 23.8 949.4 26.3 Pre-owned and value video game products 501.8 29.7 542.6 33.3 1,028.0 27.5 1,103.5 30.6 Video game accessories 144.1 8.5 119.5 7.3 320.2 8.6 282.2 7.8 Digital 46.5 2.8 36.3 2.2 90.6 2.4 79.1 2.2 Technology Brands (2) 188.3 11.2 175.9 10.8 389.7 10.4 341.7 9.5 Collectibles 122.5 7.3 90.0 5.5 237.0 6.4 172.3 4.8 Other (3) 66.7 3.9 68.9 4.2 139.9 3.8 145.8 4.1 Total $ 1,687.6 100.0 % $ 1,631.8 100.0 % $ 3,733.5 100.0 % $ 3,603.3 100.0 % 13 Weeks Ended 26 Weeks Ended July 29, 2017 July 30, 2016 July 29, 2017 July 30, 2016 Gross Profit Gross Profit Percent Gross Profit Gross Profit Percent Gross Profit Gross Profit Percent Gross Profit Gross Profit Percent New video game hardware (1) $ 26.7 10.7 % $ 30.0 13.9 % $ 64.8 10.2 % $ 58.3 11.0 % New video game software 81.8 22.2 98.1 25.7 195.5 22.0 226.0 23.8 Pre-owned and value video game products 225.6 45.0 244.0 45.0 479.3 46.6 507.2 46.0 Video game accessories 47.7 33.1 45.7 38.2 103.6 32.4 102.8 36.4 Digital 37.9 81.5 32.7 90.1 74.0 81.7 69.7 88.1 Technology Brands (2) 138.9 73.8 110.7 62.9 283.5 72.7 220.4 64.5 Collectibles 43.2 35.3 34.7 38.6 78.4 33.1 63.3 36.7 Other (3) 21.9 32.8 21.8 31.6 47.1 33.7 45.5 31.2 Total $ 623.7 37.0 % $ 617.7 37.9 % $ 1,326.2 35.5 % $ 1,293.2 35.9 % _____________________________________________ (1) Includes sales of hardware bundles, in which physical hardware and digital or physical software are sold together as a single SKU. (2) Includes mobile and consumer electronics sold through our Technology Brands segment, which includes the operations of our Spring Mobile managed AT&T and Cricket branded stores and our Simply Mac business. (3) Includes sales of PC entertainment software, interactive game figures, strategy guides, mobile and consumer electronics sold through our Video Game Brands segments, and revenues from PowerUp Pro loyalty members receiving Game Informer magazine in print form. |
Segment Information
Segment Information | 6 Months Ended |
Jul. 29, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | 8. Segment Information We report our business in four geographic Video Game Brands segments: United States, Canada, Australia and Europe; and a Technology Brands segment, which includes the operations of our Spring Mobile managed AT&T and Cricket branded stores and our Simply Mac business. We identify segments based on a combination of geographic areas and management responsibility. Each of the segments includes significant retail operations with all Video Game Brands stores engaged in the sale of new and pre-owned video game hardware, software, accessories and collectibles, and Technology Brands stores engaged in the sale of wireless products and services and other consumer electronics. Our Video Game Brands segments also include stand-alone collectibles stores. Segment results for the United States include retail operations in 50 states, the District of Columbia, and Guam; our electronic commerce websites www.gamestop.com and www.thinkgeek.com; Game Informer magazine; and Kongregate, a web and mobile gaming platform which we sold in July 2017 (see Note 2). Segment results for Canada include retail and e-commerce operations in Canada and segment results for Australia include retail and e-commerce operations in Australia and New Zealand. Segment results for Europe include retail and e-commerce operations in 10 European countries. The Technology Brands segment includes retail operations in the United States. We measure segment profit using operating earnings, which is defined as income from continuing operations before intercompany royalty fees, net interest expense and income taxes. Transactions between reportable segments consist primarily of royalties, management fees, intersegment loans and related interest. There were no material intersegment sales during the 13 weeks and 26 weeks ended July 29, 2017 and July 30, 2016 , respectively. The reconciliation of segment operating earnings to earnings (loss) before income taxes for 13 and 26 weeks ended July 29, 2017 and July 30, 2016 is as follows (in millions): 13 weeks ended July 29, 2017 United States Canada Australia Europe Technology Brands Consolidated Net sales $ 1,017.8 $ 69.9 $ 145.3 $ 266.3 $ 188.3 $ 1,687.6 Operating earnings (loss) 37.2 (0.3 ) 3.1 (11.4 ) 15.0 43.6 Interest income — Interest expense (14.4 ) Earnings before income taxes $ 29.2 13 weeks ended July 30, 2016 United States Canada Australia Europe Technology Brands Consolidated Net sales $ 1,022.7 $ 66.6 $ 127.4 $ 239.2 $ 175.9 $ 1,631.8 Operating earnings (loss) 51.2 1.2 3.0 (11.0 ) 13.9 58.3 Interest income 0.3 Interest expense (13.9 ) Earnings before income taxes $ 44.7 26 weeks ended July 29, 2017 United States Canada Australia Europe Technology Brands Consolidated Net sales $ 2,357.3 $ 159.8 $ 282.0 $ 544.7 $ 389.7 $ 3,733.5 Operating earnings (loss) 123.1 1.9 4.9 (11.3 ) 26.1 144.7 Interest income 0.2 Interest expense (28.5 ) Earnings before income taxes $ 116.4 26 weeks ended July 30, 2016 United States Canada Australia Europe Technology Brands Consolidated Net sales $ 2,391.3 $ 144.3 $ 237.3 $ 488.7 $ 341.7 $ 3,603.3 Operating earnings (loss) 145.6 5.0 3.5 (14.5 ) 32.7 172.3 Interest income 0.5 Interest expense (24.9 ) Earnings before income taxes $ 147.9 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jul. 29, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 10. Subsequent Events None |
Summary of Significant Accoun19
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jul. 29, 2017 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | The unaudited condensed consolidated financial statements include our accounts and the accounts of our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The unaudited condensed consolidated financial statements included herein reflect all adjustments (consisting only of normal, recurring adjustments) which are, in our opinion, necessary for a fair presentation of the information as of and for the periods presented. These unaudited condensed consolidated interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the instructions to Quarterly Report on Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all disclosures required under GAAP for complete consolidated financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with our annual report on Form 10-K for the 52 weeks ended January 28, 2017 (the “2016 Annual Report on Form 10-K”). 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 our business, the results of operations for the 26 weeks ended July 29, 2017 are not indicative of the results to be expected for the 53 weeks ending February 3, 2018. |
New Accounting Pronouncements | In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2017-04, Intangibles—Goodwill and Other, Simplifying the Test for Goodwill Impairment, which simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill and the carrying amount. Instead, entities will record an impairment charge based on the excess of a reporting unit's carrying amount over its estimated fair value. We early adopted this updated standard which did not have an impact to our consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory, which eliminates the exception to defer the tax effects of intra-entity asset transfers (intercompany sales). Prior to this update, the tax effects of intra-entity asset transfers were deferred until the transferred asset was sold to a third party or otherwise recovered through use, which was an exception to the general requirement for comprehensive recognition of current and deferred income taxes. We early adopted this updated standard, effective January 29, 2017, and as a result we recognize tax expense or benefit from intercompany sales of assets other than inventory in the period in which the transaction occurs. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of accounting for employee share-based payment transactions. The amendments of the updated standard include, among other things, the requirement to recognize excess tax benefits and deficiencies through earnings and present the related cash flows in operating activities in the statement of cash flows, the election of a policy to either estimate forfeitures when determining periodic expense or recognize actual forfeitures when they occur, and an increase in the allowable income tax withholding from the minimum to maximum statutory rate and its classification in the statement of cash flows. As a result of the adoption of this updated standard, effective January 29, 2017, excess tax benefits and deficiencies are recognized in our results of operations and are presented in cash flows from operating activities in our statement of cash flows on a prospective basis. In addition, we elected to recognize actual forfeitures of stock-based awards as they occur. The adoption of this updated standard did not result in a material impact to our consolidated financial statements. |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | Recently Issued Accounting Pronouncements In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows, Classification of Certain Cash Receipts and Cash Payments, which provides guidance on eight specific cash flow issues in regard to how cash receipts and cash payments are presented and classified in the statement of cash flows. The updated standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those years, with early adoption permitted. The amendments in the ASU should be adopted on a retrospective basis unless it is impracticable to apply, in which case the amendments should be applied prospectively as of the earliest date practicable. We are currently evaluating the impact that this standard will have on our consolidated financial statements and disclosures. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which sets forth a new five-step revenue recognition model that replaces the prior revenue recognition guidance in its entirety. The underlying principle of the new standard is that an entity will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects what it expects in exchange for the goods or services. The updated standard also required additional disclosures on the nature, timing, and uncertainty of revenue and related cash flows. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date, which delays the effective date of ASU 2014-09 by one year to December 15, 2017 (with early adoption permitted). In 2016, the FASB issued several ASUs that further amended the new revenue standard in the areas of principal versus agent evaluation, licenses of intellectual property, identifying performance obligations, and other clarifications and technical corrections. Entities may use either a full retrospective or modified retrospective transition approach in applying these ASUs. We plan to adopt these new standards in the first quarter of fiscal 2018 and intend to utilize the modified retrospective transition approach. We do not expect the adoption of the new revenue standards to have a material impact to our consolidated balance sheets, statements of operations or statements of cash flows. Based on our ongoing evaluation, we expect that the new revenue standards will primarily impact the accounting of our PowerUp Rewards loyalty program and the recognition of breakage associated with our gift cards liability. For our loyalty program, we currently estimate the net cost of the rewards that will be issued and redeemed and record this cost (presented as cost of sales) and the associated balance sheet liability as points are accumulated by our loyalty program members. Under the new standards, the transaction price will be allocated between the product(s) sold and loyalty points earned, where the portion allocated to the loyalty points will be initially recorded as deferred revenue and subsequently recognized as revenue upon redemption or expiration of the loyalty points. Estimated breakage on unused gift cards and merchandise credit liabilities is currently recognized on a quarterly basis (recorded to cost of sales) for balances older than two years to the extent that we believe the likelihood of redemption is remote. Under the new standards, we will recognize breakage in revenue based on and in proportion to historical redemption patterns, regardless of the age of the unused gift cards and merchandise credit liabilities. Significant items yet to be finalized in our implementation efforts include quantification of the cumulative-effect adjustments to be recorded upon adoption, which we do not expect to be material; our ongoing evaluation of changes to business processes and related controls; and the impact of the new revenue-related disclosure requirements to our consolidated financial statements. In March 2016, the FASB issued ASU 2016-04, Recognition of Breakage for Certain Prepaid Stored-Value Products. The standard specifies how prepaid stored-value product liabilities should be derecognized, thereby eliminating the current and potential future diversity in practice. Consistent with ASU 2014-09 related to revenue recognition, the standard requires derecognition in proportion with the rights expected to be exercised by the holder. Entities may adopt this standard using either a modified retrospective transition approach with a cumulative-effect adjustment to retained earnings or a full retrospective transition approach. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, with early adoption permitted. We continue to evaluate the impact that this standard will have on our consolidated financial statements and footnote disclosures. In February 2016, the FASB issued ASU 2016-02, Leases. The standard requires a lessee to recognize a liability related to lease payments and an offsetting right-of-use asset representing a right to use the underlying asset for the lease term on the balance sheet. Entities are required to use a modified retrospective transition approach for leases that exist or are entered into after the beginning of the earliest comparative period presented in the financial statements, with certain reliefs available. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, with early adoption permitted. We are currently evaluating the overall impact to our consolidated financial statements, though we expect the adoption to result in a material increase in the assets and liabilities reflected in our consolidated balance sheets. |
Fair Value Measurements and F20
Fair Value Measurements and Financial Instruments (Tables) | 6 Months Ended |
Jul. 29, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
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 in our unaudited condensed consolidated balance sheets (in millions): July 29, 2017 July 30, 2016 January 28, 2017 Level 2 Level 3 Level 2 Level 3 Level 2 Level 3 Assets Foreign currency contracts Other current assets $ 4.5 $ — $ 15.7 $ — $ 13.3 $ — Other noncurrent assets 0.3 — — — 0.1 — Company-owned life insurance (1) 12.8 — 10.4 — 12.4 — Total assets $ 17.6 $ — $ 26.1 $ — $ 25.8 $ — Liabilities Foreign currency contracts Accrued liabilities $ 6.5 $ — $ 6.1 $ — $ 4.3 $ — Other long-term liabilities 0.4 — — — 0.1 — Nonqualified deferred compensation (2) 1.1 — 1.0 — 1.0 — Contingent consideration (3) — 43.2 — — — 43.2 Total liabilities $ 8.0 $ 43.2 $ 7.1 $ — $ 5.4 $ 43.2 |
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 and foreign currency assets and liabilities recognized in selling, general and administrative expense is as follows (in millions): 13 Weeks Ended 26 Weeks Ended July 29, July 30, July 29, July 30, (Losses) gains on the change in fair value of derivative instruments $ (2.1 ) $ 3.5 $ (10.1 ) $ 5.5 Gains (losses) on the re-measurement of related intercompany loans and foreign currency assets and liabilities 4.2 (2.9 ) 12.5 (3.4 ) Total $ 2.1 $ 0.6 $ 2.4 $ 2.1 |
Debt Long-term Debt, excluding
Debt Long-term Debt, excluding current maturities (Tables) | 6 Months Ended |
Jul. 29, 2017 | |
Debt Instrument [Line Items] | |
Schedule of Long-term Debt Instruments [Table Text Block] | July 29, 2017 July 30, 2016 January 28, 2017 2019 Senior Notes principal amount $ 350.0 $ 350.0 $ 350.0 2021 Senior Notes principal amount 475.0 475.0 475.0 Less: Unamortized debt financing costs (8.6 ) (11.5 ) (10.0 ) Long-term debt, net $ 816.4 $ 813.5 $ 815.0 |
Computation of Net Income (Lo22
Computation of Net Income (Loss) Per Common Share (Tables) | 6 Months Ended |
Jul. 29, 2017 | |
Earnings Per Share [Abstract] | |
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 per common share is as follows (in millions, except per share data): 13 Weeks Ended 26 Weeks Ended July 29, July 30, July 29, July 30, Net income $ 22.2 $ 27.9 $ 81.2 $ 93.7 Basic weighted average common shares outstanding 101.4 104.0 101.3 103.9 Dilutive effect of stock options and restricted stock awards 0.1 0.3 0.1 0.3 Diluted weighted average common shares outstanding 101.5 104.3 101.4 104.2 Basic earnings per share $ 0.22 $ 0.27 $ 0.80 $ 0.90 Diluted earnings per share $ 0.22 $ 0.27 $ 0.80 $ 0.90 Anti-dilutive stock options and restricted stock awards 2.1 1.4 2.1 1.3 |
Significant Products (Tables)
Significant Products (Tables) | 6 Months Ended |
Jul. 29, 2017 | |
Text Block [Abstract] | |
Sales and Percentage of Total Net Sales by Significant Product Category | The tables below set forth net sales, percentages of total net sales, gross profit and gross profit percentages by significant product category for the periods indicated (dollars in millions). 13 Weeks Ended 26 Weeks Ended July 29, 2017 July 30, 2016 July 29, 2017 July 30, 2016 Net Sales Percent of Total Net Sales Percent of Total Net Sales Percent of Total Net Sales Percent of Total New video game hardware (1) $ 248.4 14.7 % $ 216.4 13.3 % $ 638.3 17.1 % $ 529.3 14.7 % New video game software 369.3 21.9 382.2 23.4 889.8 23.8 949.4 26.3 Pre-owned and value video game products 501.8 29.7 542.6 33.3 1,028.0 27.5 1,103.5 30.6 Video game accessories 144.1 8.5 119.5 7.3 320.2 8.6 282.2 7.8 Digital 46.5 2.8 36.3 2.2 90.6 2.4 79.1 2.2 Technology Brands (2) 188.3 11.2 175.9 10.8 389.7 10.4 341.7 9.5 Collectibles 122.5 7.3 90.0 5.5 237.0 6.4 172.3 4.8 Other (3) 66.7 3.9 68.9 4.2 139.9 3.8 145.8 4.1 Total $ 1,687.6 100.0 % $ 1,631.8 100.0 % $ 3,733.5 100.0 % $ 3,603.3 100.0 % 13 Weeks Ended 26 Weeks Ended July 29, 2017 July 30, 2016 July 29, 2017 July 30, 2016 Gross Profit Gross Profit Percent Gross Profit Gross Profit Percent Gross Profit Gross Profit Percent Gross Profit Gross Profit Percent New video game hardware (1) $ 26.7 10.7 % $ 30.0 13.9 % $ 64.8 10.2 % $ 58.3 11.0 % New video game software 81.8 22.2 98.1 25.7 195.5 22.0 226.0 23.8 Pre-owned and value video game products 225.6 45.0 244.0 45.0 479.3 46.6 507.2 46.0 Video game accessories 47.7 33.1 45.7 38.2 103.6 32.4 102.8 36.4 Digital 37.9 81.5 32.7 90.1 74.0 81.7 69.7 88.1 Technology Brands (2) 138.9 73.8 110.7 62.9 283.5 72.7 220.4 64.5 Collectibles 43.2 35.3 34.7 38.6 78.4 33.1 63.3 36.7 Other (3) 21.9 32.8 21.8 31.6 47.1 33.7 45.5 31.2 Total $ 623.7 37.0 % $ 617.7 37.9 % $ 1,326.2 35.5 % $ 1,293.2 35.9 % |
Gross Profit and Gross Profit Percentages by Significant Product Category | 13 Weeks Ended 26 Weeks Ended July 29, 2017 July 30, 2016 July 29, 2017 July 30, 2016 Gross Profit Gross Profit Percent Gross Profit Gross Profit Percent Gross Profit Gross Profit Percent Gross Profit Gross Profit Percent New video game hardware (1) $ 26.7 10.7 % $ 30.0 13.9 % $ 64.8 10.2 % $ 58.3 11.0 % New video game software 81.8 22.2 98.1 25.7 195.5 22.0 226.0 23.8 Pre-owned and value video game products 225.6 45.0 244.0 45.0 479.3 46.6 507.2 46.0 Video game accessories 47.7 33.1 45.7 38.2 103.6 32.4 102.8 36.4 Digital 37.9 81.5 32.7 90.1 74.0 81.7 69.7 88.1 Technology Brands (2) 138.9 73.8 110.7 62.9 283.5 72.7 220.4 64.5 Collectibles 43.2 35.3 34.7 38.6 78.4 33.1 63.3 36.7 Other (3) 21.9 32.8 21.8 31.6 47.1 33.7 45.5 31.2 Total $ 623.7 37.0 % $ 617.7 37.9 % $ 1,326.2 35.5 % $ 1,293.2 35.9 % |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jul. 29, 2017 | |
Segment Reporting [Abstract] | |
Sales by Segment | The reconciliation of segment operating earnings to earnings (loss) before income taxes for 13 and 26 weeks ended July 29, 2017 and July 30, 2016 is as follows (in millions): 13 weeks ended July 29, 2017 United States Canada Australia Europe Technology Brands Consolidated Net sales $ 1,017.8 $ 69.9 $ 145.3 $ 266.3 $ 188.3 $ 1,687.6 Operating earnings (loss) 37.2 (0.3 ) 3.1 (11.4 ) 15.0 43.6 Interest income — Interest expense (14.4 ) Earnings before income taxes $ 29.2 13 weeks ended July 30, 2016 United States Canada Australia Europe Technology Brands Consolidated Net sales $ 1,022.7 $ 66.6 $ 127.4 $ 239.2 $ 175.9 $ 1,631.8 Operating earnings (loss) 51.2 1.2 3.0 (11.0 ) 13.9 58.3 Interest income 0.3 Interest expense (13.9 ) Earnings before income taxes $ 44.7 26 weeks ended July 29, 2017 United States Canada Australia Europe Technology Brands Consolidated Net sales $ 2,357.3 $ 159.8 $ 282.0 $ 544.7 $ 389.7 $ 3,733.5 Operating earnings (loss) 123.1 1.9 4.9 (11.3 ) 26.1 144.7 Interest income 0.2 Interest expense (28.5 ) Earnings before income taxes $ 116.4 26 weeks ended July 30, 2016 United States Canada Australia Europe Technology Brands Consolidated Net sales $ 2,391.3 $ 144.3 $ 237.3 $ 488.7 $ 341.7 $ 3,603.3 Operating earnings (loss) 145.6 5.0 3.5 (14.5 ) 32.7 172.3 Interest income 0.5 Interest expense (24.9 ) Earnings before income taxes $ 147.9 |
Summary of Significant Accoun25
Summary of Significant Accounting Policies - Narrative (Detail) $ / shares in Units, $ in Millions | Aug. 21, 2017$ / shares | Jul. 29, 2017USD ($)$ / shares | Jul. 30, 2016USD ($)$ / shares | Jul. 29, 2017USD ($)$ / shares | Jul. 30, 2016USD ($)$ / shares | Jan. 28, 2017USD ($) |
Significant Accounting Policies [Line Items] | ||||||
Number of Stores | 7,480 | 7,480 | ||||
Number of Reportable Segments | 5 | |||||
Restricted cash | $ | $ 14.7 | $ 10.3 | $ 14.7 | $ 10.3 | $ 10.2 | |
Common Stock, Dividends, Per Share, Declared | $ 0.38 | $ 0.37 | $ 0.76 | $ 0.74 | ||
Video Game Brands | ||||||
Significant Accounting Policies [Line Items] | ||||||
Number of Reportable Segments | 4 | |||||
Subsequent Event [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Dividends Payable, Date Declared | Aug. 21, 2017 | |||||
Common Stock, Dividends, Per Share, Declared | $ 0.38 | |||||
Dividends Payable, Date to be Paid | Sep. 21, 2017 | |||||
Dividends Payable, Date of Record | Sep. 8, 2017 |
Divestitures (Details)
Divestitures (Details) - USD ($) $ in Millions | Jul. 21, 2017 | Jul. 29, 2017 | Jul. 30, 2016 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from Divestiture of Businesses | $ 51.2 | $ 0 | |
Gain (Loss) on Disposition of Business | 7.3 | $ 0 | |
Kongregate [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gain (Loss) on Disposition of Business | $ 7.3 | ||
UnrestrictedAndRestricted [Member] | Kongregate [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from Divestiture of Businesses | $ 54.7 | ||
Restricted Cash [Member] | Kongregate [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from Divestiture of Businesses | $ 3.5 |
Fair Value Measurements and F27
Fair Value Measurements and Financial Instruments - Fair Value of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Jul. 29, 2017 | Jan. 28, 2017 | Aug. 02, 2016 | Jul. 30, 2016 | |
Liabilities | |||||
Business Combination, Contingent Consideration, Liability | $ 43.2 | ||||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring | |||||
Assets | |||||
Company-owned life insurance | [1] | $ 12.8 | $ 12.4 | $ 10.4 | |
Total assets | 17.6 | 25.8 | 26.1 | ||
Liabilities | |||||
Nonqualified deferred compensation | [2] | 1.1 | 1 | 1 | |
Total liabilities | 8 | 5.4 | 7.1 | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring | Other current assets | |||||
Assets | |||||
Foreign Currency Contracts | 4.5 | 13.3 | 15.7 | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring | Other noncurrent assets | |||||
Assets | |||||
Foreign Currency Contracts | 0.3 | 0.1 | |||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring | Accrued liabilities | |||||
Liabilities | |||||
Foreign Currency Contracts | 6.5 | 4.3 | $ 6.1 | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring | Other long-term liabilities | |||||
Liabilities | |||||
Foreign Currency Contracts | 0.4 | 0.1 | |||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring | |||||
Liabilities | |||||
Business Combination, Contingent Consideration, Liability | 43.2 | 43.2 | $ 43.2 | ||
Total liabilities | 43.2 | 43.2 | |||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring | Accrued liabilities | |||||
Liabilities | |||||
Business Combination, Contingent Consideration, Liability | $ 43.2 | 20 | |||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring | Other long-term liabilities | |||||
Liabilities | |||||
Business Combination, Contingent Consideration, Liability | $ 23.2 | ||||
[1] | (1) Recognized in other non-current assets in our unaudited condensed consolidated balance sheets. | ||||
[2] | (2)Recognized in accrued liabilities in our unaudited condensed consolidated balance sheets.(3)As of July 29, 2017, $43.2 million was included in accrued liabilities in our unaudited condensed consolidated balance sheets. As of January 28, 2017, the current portion of $20.0 million was included in accrued liabilities and the noncurrent portion of $23.2 million was included in other long-term liabilities in our unaudited condensed consolidated balance sheets. |
Fair Value Measurements and F28
Fair Value Measurements and Financial Instruments - Gains and Losses on Derivative Instruments and Foreign Currency Transaction (Detail) - Selling, General and Administrative Expense - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2017 | Jul. 30, 2016 | Jul. 29, 2017 | Jul. 30, 2016 | |
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 | $ (2.1) | $ 3.5 | $ (10.1) | $ 5.5 |
Gains (losses) on the re-measurement of related intercompany loans and foreign currency assets and liabilities | 4.2 | (2.9) | 12.5 | (3.4) |
Total | $ 2.1 | $ 0.6 | $ 2.4 | $ 2.1 |
Fair Value Measurements and F29
Fair Value Measurements and Financial Instruments - Narrative (Detail) - USD ($) $ in Millions | Jul. 29, 2017 | Jan. 28, 2017 | Aug. 02, 2016 | Jul. 30, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Business Combination, Contingent Consideration, Liability | $ 43.2 | |||
Notional value of foreign currency derivatives gross | $ 480.2 | $ 586 | $ 792.2 | |
Unsecured Debt [Member] | Senior Notes 5.5% due 2019 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term Debt | 347.2 | |||
Long-term Debt, Fair Value | 360.7 | |||
Unsecured Debt [Member] | Senior Notes 6.75% due 2021 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term Debt | 469.2 | |||
Long-term Debt, Fair Value | 494.7 | |||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Business Combination, Contingent Consideration, Liability | 43.2 | 43.2 | $ 43.2 | |
Accrued Liabilities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Business Combination, Contingent Consideration, Liability | $ 43.2 | 20 | ||
Other Noncurrent Liabilities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Business Combination, Contingent Consideration, Liability | $ 23.2 |
Fair Value Measurements and F30
Fair Value Measurements and Financial Instruments Other Fair Value Disclosures (Details) - Unsecured Debt [Member] $ in Millions | Jul. 29, 2017USD ($) |
Senior Notes 5.5% due 2019 [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Long-term Debt, Fair Value | $ 360.7 |
Senior Notes 6.75% due 2021 [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Long-term Debt, Fair Value | $ 494.7 |
Debt - Narrative (Detail)
Debt - Narrative (Detail) | Sep. 25, 2014USD ($) | Mar. 25, 2014USD ($) | Sep. 30, 2007USD ($) | Jul. 29, 2017USD ($) | Jul. 30, 2016USD ($) | Jan. 28, 2017USD ($) | Mar. 09, 2016USD ($) | Sep. 24, 2014USD ($) | Jan. 04, 2011USD ($) |
Debt Disclosure [Line Items] | |||||||||
Long-term debt | $ 816,400,000 | $ 813,500,000 | $ 815,000,000 | ||||||
Line of Credit Facility, Expiration Date | Mar. 25, 2019 | ||||||||
Borrowings from the revolver | $ 333,000,000 | 100,000,000 | |||||||
Repayments of revolver borrowings | 333,000,000 | 100,000,000 | |||||||
Outstanding balance under revolving credit Facility | 0 | ||||||||
Total availability under the revolver | 363,900,000 | ||||||||
Letters of credit outstanding | 7,500,000 | ||||||||
Line of Credit Facility, Average Outstanding Amount | $ 56,500,000 | ||||||||
Line of Credit Facility, Interest Rate During Period | 2.40% | ||||||||
Unsecured Debt [Member] | |||||||||
Debt Disclosure [Line Items] | |||||||||
Debt Instrument, Cash Dividend Restriction, Maximum Ratio of Indenture Life-to-date Dividend Paid to Net Income | 50.00% | ||||||||
Debt Instrument, Cash Dividend Restriction, Maximum Ratio of Indenture Life-to-date Dividend Paid to Stock Sale Proceeds | 100.00% | ||||||||
Debt Instrument, Cash Dividend Restriction, Fiscal Year Maximum | $ 175,000,000 | ||||||||
Pro Forma, Fixed Charge Coverage Ratio | 1 | ||||||||
LUXEMBOURG | |||||||||
Debt Disclosure [Line Items] | |||||||||
Line of credit, current borrowing capacity | $ 20,000,000 | ||||||||
Credit agreement, date | 2007-09 | ||||||||
Cash overdrafts outstanding | $ 0 | ||||||||
Bank guarantees outstanding | $ 9,900,000 | ||||||||
Five Year Revolving Credit Facility | |||||||||
Debt Disclosure [Line Items] | |||||||||
Line of credit, current borrowing capacity | $ 400,000,000 | ||||||||
Line of credit facility additional borrowing capacity | $ 150,000,000 | ||||||||
Line of credit facility maturity date | 2019-03 | ||||||||
Line of credit facility, asset restrictions | Availability to borrow 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 under the Revolver by an amount equal to the face value of the letters of credit. | ||||||||
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 either 1) excess availability under the Revolver is less than 30%, or is projected to be within 12 months after such payment or 2) if excess availability under the Revolver is less than 15%, or is projected to be within 12 months after such payment, and the fixed charge coverage ratio, as calculated on a pro-forma basis for the prior 12 months is 1.1:1.0 or less. | ||||||||
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) $30 million or (2) 10% of the lesser of the total commitment or the borrowing base, we will be subject to a fixed charge coverage ratio covenant of 1.0:1.0. | ||||||||
Amended Five Year Revolving Credit Facility | |||||||||
Debt Disclosure [Line Items] | |||||||||
Line of credit, term | 5 years | ||||||||
Line of credit facility additional borrowing capacity | $ 200,000,000 | ||||||||
Line of credit facility, maximum borrowing capacity percentage | 90.00% | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity, Credit Card Receivables, Percentage | 90.00% | ||||||||
Line of Credit Facility, Remaining Borrowing Capacity, Expected Percentage | 92.50% | ||||||||
Threshold for revolver excess availability | 30.00% | ||||||||
Projected revolver usage percentage of the borrowing base during the prospective 12-month period, which is subject to meeting a fixed charge coverage ratio | 15.00% | ||||||||
Pro Forma, Fixed Charge Coverage Ratio | 1.1 | ||||||||
Fixed charge coverage ratio | 1 | ||||||||
Commitment or the borrowing base, amount | $ 30,000,000 | ||||||||
Lesser of the total commitment or the borrowing base, percentage | 10.00% | ||||||||
Amended Five Year Revolving Credit Facility | Minimum | |||||||||
Debt Disclosure [Line Items] | |||||||||
Line of credit facility unused capacity commitment fee percentage | 0.25% | ||||||||
Amended Five Year Revolving Credit Facility | Secured Debt | |||||||||
Debt Disclosure [Line Items] | |||||||||
Line of credit, maximum borrowing capacity | $ 1,000,000,000 | ||||||||
Amended Five Year Revolving Credit Facility | Unsecured Debt [Member] | |||||||||
Debt Disclosure [Line Items] | |||||||||
Line of credit, maximum borrowing capacity | 750,000,000 | ||||||||
Line Of Credit facility, for general unsecured obligations | 250,000,000 | ||||||||
Line Of credit facility, available for finance acquisitions | 500,000,000 | ||||||||
Amended Five Year Revolving Credit Facility | Letter of Credit, sublimit | |||||||||
Debt Disclosure [Line Items] | |||||||||
Line of credit, maximum borrowing capacity | $ 50,000,000 | ||||||||
London Interbank Offered Rate (LIBOR) | Five Year Revolving Credit Facility | |||||||||
Debt Disclosure [Line Items] | |||||||||
Applicable margin rate | 1.25% | ||||||||
London Interbank Offered Rate (LIBOR) | Amended Five Year Revolving Credit Facility | |||||||||
Debt Disclosure [Line Items] | |||||||||
Percentage in addition to the effective rate | 1.00% | ||||||||
London Interbank Offered Rate (LIBOR) | Amended Five Year Revolving Credit Facility | Minimum | |||||||||
Debt Disclosure [Line Items] | |||||||||
Interest Rate Margin | 1.25% | ||||||||
London Interbank Offered Rate (LIBOR) | Amended Five Year Revolving Credit Facility | Maximum | |||||||||
Debt Disclosure [Line Items] | |||||||||
Interest Rate Margin | 1.75% | ||||||||
Prime Rate | Five Year Revolving Credit Facility | |||||||||
Debt Disclosure [Line Items] | |||||||||
Applicable margin rate | 0.25% | ||||||||
Prime Rate | Amended Five Year Revolving Credit Facility | Minimum | |||||||||
Debt Disclosure [Line Items] | |||||||||
Interest Rate Margin | 0.25% | ||||||||
Prime Rate | Amended Five Year Revolving Credit Facility | Maximum | |||||||||
Debt Disclosure [Line Items] | |||||||||
Interest Rate Margin | 0.75% | ||||||||
Federal Funds Rate | Amended Five Year Revolving Credit Facility | |||||||||
Debt Disclosure [Line Items] | |||||||||
Percentage in addition to the effective rate | 0.50% | ||||||||
Senior Notes 5.5% due 2019 [Member] | |||||||||
Debt Disclosure [Line Items] | |||||||||
Debt Issuance Costs, Gross | $ 6,300,000 | ||||||||
Senior Notes 5.5% due 2019 [Member] | Unsecured Debt [Member] | |||||||||
Debt Disclosure [Line Items] | |||||||||
Long-term Debt | $ 347,200,000 | ||||||||
Debt Instrument, Face Amount | $ 350,000,000 | ||||||||
Debt Instrument, Covenant Description | The indenture governing the Senior Notes does not contain financial covenants but does contain covenants which place certain restrictions on us and our subsidiaries, including limitations on asset sales, additional liens, investments, stock repurchases, the incurrence of additional debt and the repurchase of debt that is junior to the Senior Notes. | ||||||||
Debt Instrument, Dividend Restrictions | In addition, the indenture restricts payments of dividends to stockholders (other than dividends payable in shares of capital stock) if one of the following conditions exist: (i) an event of default has occurred, (ii) we could not incur additional debt under the general debt covenant of the indenture or (iii) the sum of the proposed dividend and all other dividends and other restricted payments made under the indenture from the date of the indenture exceeds the sum of 50% of consolidated net income plus 100% of net proceeds from capital stock sales and other amounts set forth in and determined as provided in the indenture. These restrictions are subject to exceptions and qualifications, including that we can pay up to $175 million in dividends to stockholders in each fiscal year and we can pay dividends and make other restricted payments in an unlimited amount if our leverage ratio on a pro forma basis after giving effect to the dividend payment and other restricted payments would be less than or equal to 1.0:1.0. | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | ||||||||
Long-term Debt, Gross | $ 350,000,000 | 350,000,000 | 350,000,000 | ||||||
Senior Notes 6.75% due 2021 [Member] | Unsecured Debt [Member] | |||||||||
Debt Disclosure [Line Items] | |||||||||
Long-term Debt | 469,200,000 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.75% | ||||||||
Debt Issuance Costs, Gross | $ 8,100,000 | ||||||||
Long-term Debt, Gross | $ 475,000,000 | $ 475,000,000 | $ 475,000,000 |
Debt Schedule of Long-Term Debt
Debt Schedule of Long-Term Debt (Details) - USD ($) $ in Millions | Jul. 29, 2017 | Jan. 28, 2017 | Jul. 30, 2016 |
Debt Instrument [Line Items] | |||
Debt Issuance Costs, Noncurrent, Net | $ (8.6) | $ (10) | $ (11.5) |
Long-term debt | 816.4 | 815 | 813.5 |
Unsecured Debt [Member] | Senior Notes 5.5% due 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | 350 | 350 | 350 |
Unsecured Debt [Member] | Senior Notes 6.75% due 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 475 | $ 475 | $ 475 |
Commitments and Contingencies I
Commitments and Contingencies Income Taxes (Details) $ in Millions | Dec. 24, 2015USD ($) |
Income Tax Contingency [Line Items] | |
Income Tax Examination, Estimate of Possible Loss | $ 85.5 |
Commitments and Contingencies E
Commitments and Contingencies Earn-out Contingencies (Details) - USD ($) $ in Millions | Jul. 29, 2017 | Aug. 02, 2016 |
Commitments and Contingencies Disclosure [Abstract] | ||
Business Combination, Contingent Consideration, Liability | $ 43.2 | |
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, Low | $ 40 | |
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 50 |
Computation of Net Income (Lo35
Computation of Net Income (Loss) Per Common Share - Reconciliation of Common Shares Used in Calculating Basic and Diluted Net Income (Loss) Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2017 | Jul. 30, 2016 | Jul. 29, 2017 | Jul. 30, 2016 | |
Equity [Abstract] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2.1 | 1.4 | 2.1 | 1.3 |
Net income | $ 22.2 | $ 27.9 | $ 81.2 | $ 93.7 |
Basic weighted average common shares outstanding | 101.4 | 104 | 101.3 | 103.9 |
Dilutive effect of stock options and restricted stock awards | 0.1 | 0.3 | 0.1 | 0.3 |
Diluted weighted average common shares outstanding | 101.5 | 104.3 | 101.4 | 104.2 |
Net income (loss) per common share: | ||||
Earnings Per Share, Basic | $ 0.22 | $ 0.27 | $ 0.80 | $ 0.90 |
Earnings Per Share, Diluted | $ 0.22 | $ 0.27 | $ 0.80 | $ 0.90 |
Computation of Net Income (Lo36
Computation of Net Income (Loss) Per Common Share - Reconciliation of Common Shares Used in Calculating Basic and Diluted Net Income (Loss) Per Common Share (Detail)(1) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2017 | Jul. 30, 2016 | Jul. 29, 2017 | Jul. 30, 2016 | |
Equity [Abstract] | ||||
Net income | $ 22.2 | $ 27.9 | $ 81.2 | $ 93.7 |
Antidilutive restricted shares and options excluded from computation of EPS | 2.1 | 1.4 | 2.1 | 1.3 |
Basic weighted average common shares outstanding | 101.4 | 104 | 101.3 | 103.9 |
Dilutive effect of stock options and restricted stock awards | 0.1 | 0.3 | 0.1 | 0.3 |
Diluted | 101.5 | 104.3 | 101.4 | 104.2 |
Earnings Per Share, Basic | $ 0.22 | $ 0.27 | $ 0.80 | $ 0.90 |
Earnings Per Share, Diluted | $ 0.22 | $ 0.27 | $ 0.80 | $ 0.90 |
Significant Products - Sales an
Significant Products - Sales and Percentage of Total Net Sales by Significant Product Category (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2017 | Jul. 30, 2016 | Jul. 29, 2017 | Jul. 30, 2016 | |
Product Information [Line Items] | ||||
Net sales | $ 1,687.6 | $ 1,631.8 | $ 3,733.5 | $ 3,603.3 |
Percent of Total | 100.00% | 100.00% | 100.00% | 100.00% |
New Video Game Hardware | ||||
Product Information [Line Items] | ||||
Net sales | $ 248.4 | $ 216.4 | $ 638.3 | $ 529.3 |
Percent of Total | 14.70% | 13.30% | 17.10% | 14.70% |
New Video Game Software | ||||
Product Information [Line Items] | ||||
Net sales | $ 369.3 | $ 382.2 | $ 889.8 | $ 949.4 |
Percent of Total | 21.90% | 23.40% | 23.80% | 26.30% |
Pre-Owned Video Game Products | ||||
Product Information [Line Items] | ||||
Net sales | $ 501.8 | $ 542.6 | $ 1,028 | $ 1,103.5 |
Percent of Total | 29.70% | 33.30% | 27.50% | 30.60% |
Video Game Accessories | ||||
Product Information [Line Items] | ||||
Net sales | $ 144.1 | $ 119.5 | $ 320.2 | $ 282.2 |
Percent of Total | 8.50% | 7.30% | 8.60% | 7.80% |
Digital | ||||
Product Information [Line Items] | ||||
Net sales | $ 46.5 | $ 36.3 | $ 90.6 | $ 79.1 |
Percent of Total | 2.80% | 2.20% | 2.40% | 2.20% |
Technology Brands [Member] | ||||
Product Information [Line Items] | ||||
Net sales | $ 188.3 | $ 175.9 | $ 389.7 | $ 341.7 |
Percent of Total | 11.20% | 10.80% | 10.40% | 9.50% |
Collectibles [Member] | ||||
Product Information [Line Items] | ||||
Net sales | $ 122.5 | $ 90 | $ 237 | $ 172.3 |
Percent of Total | 7.30% | 5.50% | 6.40% | 4.80% |
Other | ||||
Product Information [Line Items] | ||||
Net sales | $ 66.7 | $ 68.9 | $ 139.9 | $ 145.8 |
Percent of Total | 3.90% | 4.20% | 3.80% | 4.10% |
Significant Products - Gross Pr
Significant Products - Gross Profit and Gross Profit Percentages by Significant Product Category (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2017 | Jul. 30, 2016 | Jul. 29, 2017 | Jul. 30, 2016 | |
Product Information [Line Items] | ||||
Gross Profit | $ 623.7 | $ 617.7 | $ 1,326.2 | $ 1,293.2 |
Gross Profit Percent | 37.00% | 37.90% | 35.50% | 35.90% |
New Video Game Hardware | ||||
Product Information [Line Items] | ||||
Gross Profit | $ 26.7 | $ 30 | $ 64.8 | $ 58.3 |
Gross Profit Percent | 10.70% | 13.90% | 10.20% | 11.00% |
New Video Game Software | ||||
Product Information [Line Items] | ||||
Gross Profit | $ 81.8 | $ 98.1 | $ 195.5 | $ 226 |
Gross Profit Percent | 22.20% | 25.70% | 22.00% | 23.80% |
Pre-Owned Video Game Products | ||||
Product Information [Line Items] | ||||
Gross Profit | $ 225.6 | $ 244 | $ 479.3 | $ 507.2 |
Gross Profit Percent | 45.00% | 45.00% | 46.60% | 46.00% |
Video Game Accessories | ||||
Product Information [Line Items] | ||||
Gross Profit | $ 47.7 | $ 45.7 | $ 103.6 | $ 102.8 |
Gross Profit Percent | 33.10% | 38.20% | 32.40% | 36.40% |
Digital | ||||
Product Information [Line Items] | ||||
Gross Profit | $ 37.9 | $ 32.7 | $ 74 | $ 69.7 |
Gross Profit Percent | 81.50% | 90.10% | 81.70% | 88.10% |
Technology Brands [Member] | ||||
Product Information [Line Items] | ||||
Gross Profit | $ 138.9 | $ 110.7 | $ 283.5 | $ 220.4 |
Gross Profit Percent | 73.80% | 62.90% | 72.70% | 64.50% |
Collectibles [Member] | ||||
Product Information [Line Items] | ||||
Gross Profit | $ 43.2 | $ 34.7 | $ 78.4 | $ 63.3 |
Gross Profit Percent | 35.30% | 38.60% | 33.10% | 36.70% |
Other | ||||
Product Information [Line Items] | ||||
Gross Profit | $ 21.9 | $ 21.8 | $ 47.1 | $ 45.5 |
Gross Profit Percent | 32.80% | 31.60% | 33.70% | 31.20% |
Segment Information - Sales by
Segment Information - Sales by Segment (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2017 | Jul. 30, 2016 | Jul. 29, 2017 | Jul. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 1,687,600,000 | $ 1,631,800,000 | $ 3,733,500,000 | $ 3,603,300,000 |
Segment operating earnings (loss) | 43,600,000 | 58,300,000 | 144,700,000 | 172,300,000 |
Interest income | 0 | 300,000 | 200,000 | 500,000 |
Interest expense | (14,400,000) | (13,900,000) | (28,500,000) | (24,900,000) |
Earnings before income taxes | 29,200,000 | 44,700,000 | 116,400,000 | 147,900,000 |
Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 0 | |||
Technology Brands [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 188,300,000 | 175,900,000 | 389,700,000 | 341,700,000 |
Segment operating earnings (loss) | 15,000,000 | 13,900,000 | 26,100,000 | 32,700,000 |
CANADA | Video Game Brands - Canada [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 69,900,000 | 66,600,000 | 159,800,000 | 144,300,000 |
Segment operating earnings (loss) | (300,000) | 1,200,000 | 1,900,000 | 5,000,000 |
Australia And New Zealand [Member] | Video Game Brands - Australia [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 145,300,000 | 127,400,000 | 282,000,000 | 237,300,000 |
Segment operating earnings (loss) | 3,100,000 | 3,000,000 | 4,900,000 | 3,500,000 |
Europe | Video Game Brands - Europe [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 266,300,000 | 239,200,000 | 544,700,000 | 488,700,000 |
Segment operating earnings (loss) | (11,400,000) | (11,000,000) | (11,300,000) | (14,500,000) |
United States | Video Game Brands - United States [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,017,800,000 | 1,022,700,000 | 2,357,300,000 | 2,391,300,000 |
Segment operating earnings (loss) | $ 37,200,000 | $ 51,200,000 | $ 123,100,000 | $ 145,600,000 |
Segment Information - Narrative
Segment Information - Narrative (Detail) | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2017USD ($)Location | Jul. 30, 2016USD ($) | Jul. 29, 2017USD ($)Location | Jul. 30, 2016USD ($) | |
Segment Reporting Disclosure [Line Items] | ||||
Number of Reportable Segments | 5 | |||
Net sales | $ 1,687,600,000 | $ 1,631,800,000 | $ 3,733,500,000 | $ 3,603,300,000 |
Segment Reporting Description Of Segments | Segment results for the United States include retail operations in 50 states, the District of Columbia, Guam and Puerto Rico; our electronic commerce websites www.gamestop.com and www.thinkgeek.com; Game Informer magazine; and Kongregate, our leading web and mobile gaming platform. | |||
Segment operating earnings (loss) | 43,600,000 | 58,300,000 | $ 144,700,000 | 172,300,000 |
Interest income | 0 | 300,000 | 200,000 | 500,000 |
Interest expense | (14,400,000) | (13,900,000) | (28,500,000) | (24,900,000) |
Earnings before income taxes | 29,200,000 | 44,700,000 | $ 116,400,000 | 147,900,000 |
Video Game Brands - United States [Member] | ||||
Segment Reporting Disclosure [Line Items] | ||||
Number of Reportable Segments | 4 | |||
Technology Brands [Member] | ||||
Segment Reporting Disclosure [Line Items] | ||||
Net sales | 188,300,000 | 175,900,000 | $ 389,700,000 | 341,700,000 |
Segment operating earnings (loss) | $ 15,000,000 | 13,900,000 | 26,100,000 | 32,700,000 |
Intersegment Eliminations [Member] | ||||
Segment Reporting Disclosure [Line Items] | ||||
Net sales | $ 0 | |||
United States | ||||
Segment Reporting Disclosure [Line Items] | ||||
Number of states the entity operates | Location | 50 | 50 | ||
United States | Video Game Brands - United States [Member] | ||||
Segment Reporting Disclosure [Line Items] | ||||
Net sales | $ 1,017,800,000 | 1,022,700,000 | $ 2,357,300,000 | 2,391,300,000 |
Segment operating earnings (loss) | 37,200,000 | 51,200,000 | 123,100,000 | 145,600,000 |
Europe | Video Game Brands - Europe [Member] | ||||
Segment Reporting Disclosure [Line Items] | ||||
Net sales | 266,300,000 | 239,200,000 | 544,700,000 | 488,700,000 |
Segment operating earnings (loss) | $ (11,400,000) | (11,000,000) | $ (11,300,000) | (14,500,000) |
Europe | Retail Site | ||||
Segment Reporting Disclosure [Line Items] | ||||
Number of countries in which the entity operates | Location | 10 | 10 | ||
CANADA | Video Game Brands - Canada [Member] | ||||
Segment Reporting Disclosure [Line Items] | ||||
Net sales | $ 69,900,000 | 66,600,000 | $ 159,800,000 | 144,300,000 |
Segment operating earnings (loss) | (300,000) | 1,200,000 | 1,900,000 | 5,000,000 |
Australia And New Zealand [Member] | Video Game Brands - Australia [Member] | ||||
Segment Reporting Disclosure [Line Items] | ||||
Net sales | 145,300,000 | 127,400,000 | 282,000,000 | 237,300,000 |
Segment operating earnings (loss) | $ 3,100,000 | $ 3,000,000 | $ 4,900,000 | $ 3,500,000 |