Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

GameStop Corp., balance sheet: goodwill and intangible assets

US$ in thousands

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Goodwill	—)	—)	—)	363,900)	1,667,300)	1,725,200)
Trade names	5,300)	5,700)	6,300)	8,800)	49,300)	43,700)
Dealer agreements	—)	—)	—)	—)	77,000)	409,300)
Intangible assets with indefinite lives	5,300)	5,700)	6,300)	8,800)	126,300)	453,000)
Leasehold rights	74,700)	93,300)	88,400)	91,800)	100,400)	86,400)
Customer relationships	—)	—)	—)	—)	14,500)	14,500)
Other	31,700)	32,700)	32,100)	32,500)	33,500)	39,500)
Intangible assets with finite lives, gross carrying amount	106,400)	126,000)	120,500)	124,300)	148,400)	140,400)
Accumulated amortization	(99,600)	(113,200)	(104,000)	(99,600)	(105,200)	(86,200)
Intangible assets with finite lives, net carrying amount	6,800)	12,800)	16,500)	24,700)	43,200)	54,200)
Intangible assets	12,100)	18,500)	22,800)	33,500)	169,500)	507,200)
Goodwill and intangible assets	12,100)	18,500)	22,800)	397,400)	1,836,800)	2,232,400)

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).

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Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.
Intangible assets	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	GameStop Corp. intangible assets decreased from 2020 to 2021 and from 2021 to 2022.
Goodwill and intangible assets	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	GameStop Corp. goodwill and intangible assets decreased from 2020 to 2021 and from 2021 to 2022.

GameStop Corp., adjustments to financial statements

US$ in thousands

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Adjustment to Total Assets
Total assets (as reported)	3,499,300)	2,472,600)	2,819,700)	4,044,300)	5,041,600)	4,975,900)
Less: Goodwill	—)	—)	—)	363,900)	1,667,300)	1,725,200)
Total assets (adjusted)	3,499,300)	2,472,600)	2,819,700)	3,680,400)	3,374,300)	3,250,700)
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported)	1,602,500)	436,700)	611,500)	1,336,200)	2,214,500)	2,254,100)
Less: Goodwill	—)	—)	—)	363,900)	1,667,300)	1,725,200)
Stockholders’ equity (adjusted)	1,602,500)	436,700)	611,500)	972,300)	547,200)	528,900)
Adjustment to Net Income (loss)
Net income (loss) (as reported)	(381,300)	(215,300)	(470,900)	(673,000)	34,700)	353,200)
Add: Goodwill impairment charges	—)	—)	363,900)	970,700)	32,800)	—)
Net income (loss) (adjusted)	(381,300)	(215,300)	(107,000)	297,700)	67,500)	353,200)

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).

GameStop Corp., Financial Data: Reported vs. Adjusted

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GameStop Corp., adjusted financial ratios

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Net Profit Margin
Reported net profit margin	-6.34%	-4.23%	-7.28%	-8.12%	0.38%	4.10%
Adjusted net profit margin	-6.34%	-4.23%	-1.65%	3.59%	0.73%	4.10%
Total Asset Turnover
Reported total asset turnover	1.72	2.06	2.29	2.05	1.83	1.73
Adjusted total asset turnover	1.72	2.06	2.29	2.25	2.73	2.65
Financial Leverage
Reported financial leverage	2.18	5.66	4.61	3.03	2.28	2.21
Adjusted financial leverage	2.18	5.66	4.61	3.79	6.17	6.15
Return on Equity (ROE)
Reported ROE	-23.79%	-49.30%	-77.01%	-50.37%	1.57%	15.67%
Adjusted ROE	-23.79%	-49.30%	-17.50%	30.62%	12.34%	66.78%
Return on Assets (ROA)
Reported ROA	-10.90%	-8.71%	-16.70%	-16.64%	0.69%	7.10%
Adjusted ROA	-10.90%	-8.71%	-3.79%	8.09%	2.00%	10.87%

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	GameStop Corp. adjusted net profit margin ratio deteriorated from 2020 to 2021 and from 2021 to 2022.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	GameStop Corp. adjusted total asset turnover ratio deteriorated from 2020 to 2021 and from 2021 to 2022.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	GameStop Corp. adjusted financial leverage ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	GameStop Corp. adjusted ROE deteriorated from 2020 to 2021 but then improved from 2021 to 2022 not reaching 2020 level.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	GameStop Corp. adjusted ROA deteriorated from 2020 to 2021 and from 2021 to 2022.

GameStop Corp., Financial Ratios: Reported vs. Adjusted

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	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss)	(381,300)	(215,300)	(470,900)	(673,000)	34,700)	353,200)
Net sales	6,010,700)	5,089,800)	6,466,000)	8,285,300)	9,224,600)	8,607,900)
Profitability Ratio
Net profit margin¹	-6.34%	-4.23%	-7.28%	-8.12%	0.38%	4.10%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted net income (loss)	(381,300)	(215,300)	(107,000)	297,700)	67,500)	353,200)
Net sales	6,010,700)	5,089,800)	6,466,000)	8,285,300)	9,224,600)	8,607,900)
Profitability Ratio
Adjusted net profit margin²	-6.34%	-4.23%	-1.65%	3.59%	0.73%	4.10%

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).

2022 Calculations

¹ Net profit margin = 100 × Net income (loss) ÷ Net sales
= 100 × -381,300 ÷ 6,010,700 = -6.34%

² Adjusted net profit margin = 100 × Adjusted net income (loss) ÷ Net sales
= 100 × -381,300 ÷ 6,010,700 = -6.34%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	GameStop Corp. adjusted net profit margin ratio deteriorated from 2020 to 2021 and from 2021 to 2022.

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net sales	6,010,700)	5,089,800)	6,466,000)	8,285,300)	9,224,600)	8,607,900)
Total assets	3,499,300)	2,472,600)	2,819,700)	4,044,300)	5,041,600)	4,975,900)
Activity Ratio
Total asset turnover¹	1.72	2.06	2.29	2.05	1.83	1.73
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net sales	6,010,700)	5,089,800)	6,466,000)	8,285,300)	9,224,600)	8,607,900)
Adjusted total assets	3,499,300)	2,472,600)	2,819,700)	3,680,400)	3,374,300)	3,250,700)
Activity Ratio
Adjusted total asset turnover²	1.72	2.06	2.29	2.25	2.73	2.65

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).

2022 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 6,010,700 ÷ 3,499,300 = 1.72

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 6,010,700 ÷ 3,499,300 = 1.72

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	GameStop Corp. adjusted total asset turnover ratio deteriorated from 2020 to 2021 and from 2021 to 2022.

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
As Reported
Selected Financial Data (US$ in thousands)
Total assets	3,499,300)	2,472,600)	2,819,700)	4,044,300)	5,041,600)	4,975,900)
Stockholders’ equity	1,602,500)	436,700)	611,500)	1,336,200)	2,214,500)	2,254,100)
Solvency Ratio
Financial leverage¹	2.18	5.66	4.61	3.03	2.28	2.21
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted total assets	3,499,300)	2,472,600)	2,819,700)	3,680,400)	3,374,300)	3,250,700)
Adjusted stockholders’ equity	1,602,500)	436,700)	611,500)	972,300)	547,200)	528,900)
Solvency Ratio
Adjusted financial leverage²	2.18	5.66	4.61	3.79	6.17	6.15

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).

2022 Calculations

¹ Financial leverage = Total assets ÷ Stockholders’ equity
= 3,499,300 ÷ 1,602,500 = 2.18

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 3,499,300 ÷ 1,602,500 = 2.18

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	GameStop Corp. adjusted financial leverage ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss)	(381,300)	(215,300)	(470,900)	(673,000)	34,700)	353,200)
Stockholders’ equity	1,602,500)	436,700)	611,500)	1,336,200)	2,214,500)	2,254,100)
Profitability Ratio
ROE¹	-23.79%	-49.30%	-77.01%	-50.37%	1.57%	15.67%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted net income (loss)	(381,300)	(215,300)	(107,000)	297,700)	67,500)	353,200)
Adjusted stockholders’ equity	1,602,500)	436,700)	611,500)	972,300)	547,200)	528,900)
Profitability Ratio
Adjusted ROE²	-23.79%	-49.30%	-17.50%	30.62%	12.34%	66.78%

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).

2022 Calculations

¹ ROE = 100 × Net income (loss) ÷ Stockholders’ equity
= 100 × -381,300 ÷ 1,602,500 = -23.79%

² Adjusted ROE = 100 × Adjusted net income (loss) ÷ Adjusted stockholders’ equity
= 100 × -381,300 ÷ 1,602,500 = -23.79%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	GameStop Corp. adjusted ROE deteriorated from 2020 to 2021 but then improved from 2021 to 2022 not reaching 2020 level.

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss)	(381,300)	(215,300)	(470,900)	(673,000)	34,700)	353,200)
Total assets	3,499,300)	2,472,600)	2,819,700)	4,044,300)	5,041,600)	4,975,900)
Profitability Ratio
ROA¹	-10.90%	-8.71%	-16.70%	-16.64%	0.69%	7.10%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted net income (loss)	(381,300)	(215,300)	(107,000)	297,700)	67,500)	353,200)
Adjusted total assets	3,499,300)	2,472,600)	2,819,700)	3,680,400)	3,374,300)	3,250,700)
Profitability Ratio
Adjusted ROA²	-10.90%	-8.71%	-3.79%	8.09%	2.00%	10.87%

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).

2022 Calculations

¹ ROA = 100 × Net income (loss) ÷ Total assets
= 100 × -381,300 ÷ 3,499,300 = -10.90%

² Adjusted ROA = 100 × Adjusted net income (loss) ÷ Adjusted total assets
= 100 × -381,300 ÷ 3,499,300 = -10.90%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	GameStop Corp. adjusted ROA deteriorated from 2020 to 2021 and from 2021 to 2022.

GameStop Corp. (NYSE:GME)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

GameStop Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

GameStop Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)