An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.

Present Value of Future Operating Lease Payments (before Adoption of FASB Topic 842)
Adjustments to Financial Statements for Operating Leases
Adjusted Financial Ratios for Operating Leases (Summary)
Adjusted Total Asset Turnover
Adjusted Debt to Equity
Adjusted Return on Assets (ROA)

GameStop Corp., future operating lease payments (before adoption of FASB Topic 842)

US$ in thousands

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Total undiscounted future operating lease payments	—	—	—	947,000)	929,800)	1,194,600)
Discount rate¹	—	—	—	6.22%	6.22%	6.22%

Total present value of future operating lease payments	—	—	—	802,918)	816,641)	1,023,030)

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).

¹ Weighted-average interest rate for GameStop Corp. debt

2019 Calculations

Year	Future operating lease payments (as reported)	Year	Future operating lease payments (estimated)	Present value at 6.22%
2020	296,200)	2020	296,200)	278,855)
2021	208,700)	2021	208,700)	184,974)
2022	149,100)	2022	149,100)	124,411)
2023	105,400)	2023	105,400)	82,797)
2024	71,400)	2024	71,400)	52,804)
2025 and thereafter	116,200)	2025	71,400)	49,712)
		2026	44,800)	29,365)
Total:	947,000)		947,000)	802,918)

Based on: 10-K (reporting date: 2019-02-02).

2018 Calculations

Year	Future operating lease payments (as reported)	Year	Future operating lease payments (estimated)	Present value at 6.22%
2019	377,200)	2019	377,200)	355,112)
2020	253,700)	2020	253,700)	224,858)
2021	145,800)	2021	145,800)	121,657)
2022	75,400)	2022	75,400)	59,231)
2023	38,900)	2023	38,900)	28,769)
2024	38,800)	2024	38,800)	27,014)
Total:	929,800)		929,800)	816,641)

Based on: 10-K (reporting date: 2018-02-03).

2017 Calculations

Year	Future operating lease payments (as reported)	Year	Future operating lease payments (estimated)	Present value at 6.22%
2018	388,600)	2018	388,600)	365,844)
2019	295,900)	2019	295,900)	262,260)
2020	202,300)	2020	202,300)	168,802)
2021	121,500)	2021	121,500)	95,445)
2022	68,600)	2022	68,600)	50,733)
2023 and thereafter	117,700)	2023	68,600)	47,762)
		2024	49,100)	32,184)
Total:	1,194,600)		1,194,600)	1,023,030)

Based on: 10-K (reporting date: 2017-01-28).

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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)
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)¹	—)	—)	—)	802,918)	816,641)	1,023,030)
Total assets (adjusted)	3,499,300)	2,472,600)	2,819,700)	4,847,218)	5,858,241)	5,998,930)
Adjustment to Total Debt
Total debt (as reported)	44,600)	362,700)	419,800)	820,800)	817,900)	815,000)
Add: Operating lease liability (before adoption of FASB Topic 842)²	—)	—)	—)	802,918)	816,641)	1,023,030)
Add: Current portion of operating lease liabilities	210,700)	227,400)	239,400)	—)	—)	—)
Add: Operating lease liabilities, excluding current portion	393,700)	456,700)	529,300)	—)	—)	—)
Total debt (adjusted)	649,000)	1,046,800)	1,188,500)	1,623,718)	1,634,541)	1,838,030)

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).

^{1, 2} Equal to total present value of future operating lease payments.

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
Total Asset Turnover¹
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	1.71	1.57	1.43
Debt to Equity²
Reported debt to equity	0.03	0.83	0.69	0.61	0.37	0.36
Adjusted debt to equity	0.40	2.40	1.94	1.22	0.74	0.82
Return on Assets³ (ROA)
Reported ROA	-10.90%	-8.71%	-16.70%	-16.64%	0.69%	7.10%
Adjusted ROA	-10.90%	-8.71%	-16.70%	-13.88%	0.59%	5.89%

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).

¹ See details »

² See details »

³ See details »

Financial 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.
Adjusted debt to equity	A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity.	GameStop Corp. adjusted debt to equity ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	GameStop Corp. adjusted ROA improved from 2020 to 2021 but then slightly deteriorated 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 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 Operating Leases
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)	4,847,218)	5,858,241)	5,998,930)
Activity Ratio
Adjusted total asset turnover²	1.72	2.06	2.29	1.71	1.57	1.43

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 debt	44,600)	362,700)	419,800)	820,800)	817,900)	815,000)
Stockholders’ equity	1,602,500)	436,700)	611,500)	1,336,200)	2,214,500)	2,254,100)
Solvency Ratio
Debt to equity¹	0.03	0.83	0.69	0.61	0.37	0.36
Adjusted for Operating Leases
Selected Financial Data (US$ in thousands)
Adjusted total debt	649,000)	1,046,800)	1,188,500)	1,623,718)	1,634,541)	1,838,030)
Stockholders’ equity	1,602,500)	436,700)	611,500)	1,336,200)	2,214,500)	2,254,100)
Solvency Ratio
Adjusted debt to equity²	0.40	2.40	1.94	1.22	0.74	0.82

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 Debt to equity = Total debt ÷ Stockholders’ equity
= 44,600 ÷ 1,602,500 = 0.03

² Adjusted debt to equity = Adjusted total debt ÷ Stockholders’ equity
= 649,000 ÷ 1,602,500 = 0.40

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Solvency ratio	Description	The company
Adjusted debt-to-equity	A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity.	GameStop Corp. adjusted debt-to-equity ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 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 Operating Leases
Selected Financial Data (US$ in thousands)
Net income (loss)	(381,300)	(215,300)	(470,900)	(673,000)	34,700)	353,200)
Adjusted total assets	3,499,300)	2,472,600)	2,819,700)	4,847,218)	5,858,241)	5,998,930)
Profitability Ratio
Adjusted ROA²	-10.90%	-8.71%	-16.70%	-13.88%	0.59%	5.89%

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 × 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 net income divided by adjusted total assets.	GameStop Corp. adjusted ROA improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.

GameStop Corp. (NYSE:GME)

Analysis of Operating Leases

Present Value of Future Operating Lease Payments (before Adoption of FASB Topic 842)

Adjustments to Financial Statements for Operating Leases

GameStop Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios for Operating Leases (Summary)

GameStop Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Debt to Equity

Adjusted Return on Assets (ROA)