gme-20231028

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q


			☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED OCTOBER 28, 2023


			☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

COMMISSION FILE NO. 1-32637

GameStop Corp.

(Exact name of registrant as specified in its charter)


Delaware		20-2733559
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

625 Westport Parkway		76051
Grapevine,	Texas
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code:

(817) 424-2000

Securities Registered Pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol

Name of each exchange on which registered

Class A Common Stock

GME

NYSE

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act:

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Number of shares of $.001 par value Class A Common Stock outstanding as of November 30, 2023: 305,514,315

TABLE OF CONTENTS



Part I — FINANCIAL INFORMATION
		Page No.
Item 1.	Financial Statements (unaudited)	1

	Condensed Consolidated Balance Sheets — As of October 28, 2023, October 29, 2022 and January 28, 2023	1

	Condensed Consolidated Statements of Operations — For the three and nine months ended October 28 , 2023 and October 29 , 2022	2

	Condensed Consolidated Statements of Comprehensive Loss — For the three and nine months ended October 2 8 , 2023 and October 29 , 2022	3

	Condensed Consolidated Statements of Cash Flows — For the nine months ended October 28 , 2023 and October 29 , 2022	4

	Condensed Consolidated Statements of Stockholders’ Equity — For the three and nine months ended October 28 , 2023 and October 29 , 2022	5

	Notes to Condensed Consolidated Financial Statements	7

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	15

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	21

Item 4.	Controls and Procedures	21

PART II — OTHER INFORMATION

Item 1.	Legal Proceedings	22

Item 1A.	Risk Factors	22

Item 2.	Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	22

Item 3.	Defaults Upon Senior Securities	23

Item 4.	Mine Safety Disclosures	23

Item 5.	Other Information	23

Item 6.	Exhibits	24

SIGNATURES		25

Table of Contents

PART I — FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

GAMESTOP CORP.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, except par value per share)

(unaudited)


	October 28, 2023		October 29, 2022		January 28, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	909.0	$	803.8	$	1,139.0
Marketable securities	300.5		238.3		251.6
Receivables, net of allowance of $2.1, $2.0 and $2.2, respectively	88.3		125.3		153.9
Merchandise inventories, net	1,021.3		1,131.3		682.9
Prepaid expenses and other current assets	57.7		283.1		96.3
Total current assets	2,376.8		2,581.8		2,323.7
Property and equipment, net of accumulated depreciation of $973.0, $981.4 and $1,006.8, respectively	114.5		138.5		136.5
Operating lease right-of-use assets	570.4		523.2		560.8
Deferred income taxes	16.6		14.3		18.3
Other noncurrent assets	68.6		64.7		74.1
Total assets	$	3,146.9	$	3,322.5	$	3,113.4

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	812.7	$	888.4	$	531.3
Accrued liabilities and other current liabilities	425.7		504.2		602.3
Current portion of operating lease liabilities	188.9		186.2		194.7
Current portion of long-term debt	10.5		9.9		10.8
Total current liabilities	1,437.8		1,588.7		1,339.1
Long-term debt	20.0		28.8		28.7
Operating lease liabilities	394.8		349.6		382.4
Other long-term liabilities	31.5		110.4		40.9
Total liabilities	1,884.1		2,077.5		1,791.1
Stockholders’ equity:
Class A common stock — $.001 par value; 1,000 shares authorized; 305.5, 304.3 and 304.6 shares issued and outstanding, respectively	0.1		0.1		0.1
Additional paid-in capital	1,627.5		1,606.4		1,613.6
Accumulated other comprehensive loss	(88.9)		(93.8)		(71.9)
Retained loss	(275.9)		(267.7)		(219.5)
Total stockholders’ equity	1,262.8		1,245.0		1,322.3
Total liabilities and stockholders’ equity	$	3,146.9	$	3,322.5	$	3,113.4

See accompanying notes to condensed consolidated financial statements.

Table of Contents

GAMESTOP CORP.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except per share data)

(unaudited)


	Three Months Ended				Nine Months Ended
	October 28, 2023		October 29, 2022		October 28, 2023		October 29, 2022
Net sales	$	1,078.3	$	1,186.4	$	3,479.2	$	3,700.8
Cost of sales	796.5		894.8		2,604.2		2,828.5
Gross profit	281.8		291.6		875.0		872.3
Selling, general and administrative expenses	296.5		387.9		964.7		1,227.6
Asset impairments	—		—		—		2.5

Operating loss	(14.7)		(96.3)		(89.7)		(357.8)
Interest income, net	(12.9)		(3.7)		(34.2)		(3.3)
Other loss, net	2.5		—		2.4		—
Loss before income taxes	(4.3)		(92.6)		(57.9)		(354.5)
Income tax (benefit) expense	(1.2)		2.1		(1.5)		6.8
Net loss	$	(3.1)	$	(94.7)	$	(56.4)	$	(361.3)

Net loss per share:
Basic	$	(0.01)	$	(0.31)	$	(0.18)	$	(1.19)
Diluted	(0.01)		(0.31)		(0.18)		(1.19)

Weighted-average shares outstanding:
Basic	305.3		304.2		304.9		304.1
Diluted	305.3		304.2		304.9		304.1

See accompanying notes to condensed consolidated financial statements.

Table of Contents

GAMESTOP CORP.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(in millions)

(unaudited)


	Three Months Ended				Nine Months Ended
	October 28, 2023		October 29, 2022		October 28, 2023		October 29, 2022
Net loss	$	(3.1)	$	(94.7)	$	(56.4)	$	(361.3)
Other comprehensive loss:
Foreign currency translation adjustment	(10.3)		(16.6)		(17.0)		(24.9)
Reclassification of foreign currency loss (gain) included in net loss	2.5		—		(0.6)		—
Net change in unrealized gain (loss) on available-for-sale securities	0.1		(0.2)		(0.4)		(0.2)
Reclassification of realized loss on available-for-sale securities included in net loss	—		—		1.0		—
Total comprehensive loss	$	(10.8)	$	(111.5)	$	(73.4)	$	(386.4)

See accompanying notes to condensed consolidated financial statements.

Table of Contents

GAMESTOP CORP.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)

(unaudited)


	Nine Months Ended
	October 28, 2023		October 29, 2022
Cash flows from operating activities:
Net loss	$	(56.4)	$	(361.3)
Adjustments to reconcile net loss to net cash flows used in operating activities:
Depreciation and amortization	37.6		47.5
Stock-based compensation expense, net	14.0		32.2
Gain on sale of digital assets	—		(7.1)
Digital asset impairments	—		33.9
Asset impairments	—		2.5
(Gain) loss on disposal of property and equipment, net	(5.0)		5.1
Other, net	2.9		6.9
Changes in operating assets and liabilities:
Receivables, net	65.7		13.3
Merchandise inventories, net	(357.1)		(245.0)
Prepaid expenses and other assets	5.7		(38.7)
Prepaid income taxes and income taxes payable	(5.1)		0.9
Accounts payable and accrued liabilities	114.5		288.7
Operating lease right-of-use assets and lease liabilities	(7.1)		(7.7)
Changes in other long-term liabilities	(2.4)		(1.2)
Net cash flows used in operating activities	(192.7)		(230.0)
Cash flows from investing activities:
Proceeds from sale of digital assets	2.8		77.4
Purchases of marketable securities	(313.0)		(237.0)
Proceeds from maturities and sales of marketable securities	270.5		—
Capital expenditures	(27.2)		(44.3)
Proceeds from sale of property and equipment	13.1		—
Other	—		0.3
Net cash flows used in investing activities	(53.8)		(203.6)
Cash flows from financing activities:
Settlement of stock-based awards	(0.1)		(3.3)
Repayments of debt	(8.0)		—
Net cash flows used in financing activities	(8.1)		(3.3)
Exchange rate effect on cash, cash equivalents and restricted cash	(12.2)		(23.5)
Decrease in cash, cash equivalents and restricted cash	(266.8)		(460.4)
Cash, cash equivalents and restricted cash at beginning of period	1,196.0		1,319.9
Cash, cash equivalents and restricted cash at end of period	$	929.2	$	859.5

See accompanying notes to condensed consolidated financial statements.

Table of Contents

GAMESTOP CORP.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(in millions, except for per share data)

(unaudited)


	Class A Common Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Loss		Retained Loss		Total Stockholders' Equity
	Shares	Amount
Balance at January 28, 2023	304.6	$	0.1	$	1,613.6	$	(71.9)	$	(219.5)	$	1,322.3
Net loss	—	—		—		—		(50.5)		(50.5)
Foreign currency translation	—	—		—		(8.1)		—		(8.1)
Reclassification of foreign currency gain included in net loss	—	—		—		(1.2)		—		(1.2)
Stock-based compensation expense, net	—	—		7.9		—		—		7.9
Settlement of stock-based awards	0.1	—		(0.1)		—		—		(0.1)
Net change in unrealized gain on available-for-sale securities	—	—		—		0.4		—		0.4
Reclassification of realized loss on available-for-sale securities included in net loss	—	—		—		0.9		—		0.9
Balance at April 29, 2023	304.7	0.1		1,621.4		(79.9)		(270.0)		1,271.6
Net loss	—	—		—		—		(2.8)		(2.8)
Foreign currency translation	—	—		—		1.4		—		1.4
Reclassification of foreign currency gain included in net loss	—	—		—		(1.9)		—		(1.9)
Stock-based compensation expense, net	—	—		(0.3)		—		—		(0.3)
Settlement of stock-based awards	0.5	—		—		—		—		—
Net change in unrealized loss on available-for-sale securities	—	—		—		(0.9)		—		(0.9)
Reclassification of realized loss on available-for-sale securities included in net loss	—	—		—		0.1		—		0.1
Balance at July 29, 2023	305.2	0.1		1,621.1		(81.2)		(272.8)		1,267.2
Net loss	—	—		—		—		(3.1)		(3.1)
Foreign currency translation	—	—		—		(10.3)		—		(10.3)
Reclassification of foreign currency loss included in net loss	—	—		—		2.5		—		2.5
Stock-based compensation expense, net	—	—		6.4		—		—		6.4
Settlement of stock-based awards	0.3	—		—		—		—		—
Net change in unrealized gain on available-for-sale securities	—	—		—		0.1		—		0.1
Balance at October 28, 2023	305.5	$	0.1	$	1,627.5	$	(88.9)	$	(275.9)	$	1,262.8

Table of Contents

GAMESTOP CORP.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(in millions, except for per share data)

(unaudited)


	Class A Common Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Loss		Retained Loss		Total Stockholders' Equity
	Shares	Amount
Balance at January 29, 2022	303.6	$	0.1	$	1,577.5	$	(68.7)	$	93.6	$	1,602.5
Net loss	—	—		—		—		(157.9)		(157.9)
Foreign currency translation	—	—		—		(3.9)		—		(3.9)
Stock-based compensation expense, net	—	—		11.1		—		—		11.1
Settlement of stock-based awards	—	—		(1.1)		—		—		(1.1)
Balance at April 30, 2022	303.6	0.1		1,587.5		(72.6)		(64.3)		1,450.7
Net loss	—	—		—		—		(108.7)		(108.7)
Foreign currency translation	—	—		—		(4.4)		—		(4.4)
Stock-based compensation expense, net	—	—		7.8		—		—		7.8
Settlement of stock-based awards	0.4	—		(1.9)		—		—		(1.9)
Balance at July 30, 2022	304.0	0.1		1,593.4		(77.0)		(173.0)		1,343.5
Net loss	—	—		—		—		(94.7)		(94.7)
Foreign currency translation	—	—		—		(16.6)		—		(16.6)
Stock-based compensation expense, net	—	—		13.3		—		—		13.3
Settlement of stock-based awards	0.1	—		(0.3)		—		—		(0.3)
Net change in unrealized loss on available-for-sale securities	—	—		—		(0.2)		—		(0.2)
Balance at October 29, 2022	304.1	$	0.1	$	1,606.4	$	(93.8)	$	(267.7)	$	1,245.0

See accompanying notes to condensed consolidated financial statements.

Table of Contents

GAMESTOP CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, except per share amounts)

(unaudited)

1. General Information

The Company

GameStop Corp. ("GameStop," "we," "us," "our," or the "Company"), a Delaware corporation established in 1996, is a leading specialty retailer offering games and entertainment products through its thousands of stores and ecommerce platforms.

We operate our business in four geographic segments: United States, Canada, Australia and Europe. The information contained in these condensed consolidated financial statements refers to continuing operations unless otherwise noted.

Basis of Presentation and Consolidation

The 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 condensed consolidated financial statements included herein reflect all adjustments (consisting only of normal, recurring adjustments) which are, in our opinion, necessary for a fair presentation of the information for the periods presented. These condensed consolidated 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 exclude certain disclosures required under GAAP for complete consolidated financial statements.

The accompanying condensed consolidated financial statements and notes are unaudited. The condensed consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the 52 weeks ended January 28, 2023 ("fiscal 2022"), as filed with the Securities and Exchange Commission ("SEC") on March 28, 2023 (the “2022 Annual Report on Form 10-K”). Due to the seasonal nature of our business, our results of operations for the nine months ended October 28, 2023 are not indicative of our future results for the 53 weeks ending February 3, 2024 ("fiscal 2023"). Our fiscal year is composed of the 52 or 53 weeks ending on the Saturday closest to the last day of January. Fiscal 2023 consists of 53 weeks ending on February 3, 2024. Fiscal 2022 consisted of 52 weeks ended on January 28, 2023. All three and nine month periods presented herein contain 13 weeks and 39 weeks, respectively. All references to years, quarters and months relate to fiscal periods rather than calendar periods. Our business, like that of many retailers, is seasonal, with the major portion of the net sales realized during the fourth quarter, which includes the holiday selling season.

Use of Estimates

The preparation of the condensed consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported and disclosed in the condensed consolidated financial statements and accompanying footnotes. We regularly evaluate the estimates related to our assets and liabilities, contingent assets and liabilities, and the reported amounts of revenues and expenses. In preparing these condensed consolidated financial statements, we have made our best estimates and judgments of certain amounts recognized in the condensed consolidated financial statements, giving due consideration to materiality. Changes in the estimates and assumptions that we have used could have a significant impact on our financial results. Actual results could differ from those estimates.

Table of Contents

GAMESTOP CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, except per share amounts)

(unaudited)

2. Summary of Significant Accounting Policies

Included below are certain updates related to policies included in Part II, Item 8 "Notes to Consolidated Financial Statements", Note 2, Summary of Significant Accounting Policies," in the 2022 Annual Report on Form 10-K.

Cash and Cash Equivalents and Restricted Cash

Our cash and cash equivalents on our Condensed Consolidated Balance Sheets are carried at fair value and consist primarily of cash, money market funds, cash deposits with commercial banks, and highly rated direct short-term instruments with an original maturity of 90 days or less. Restricted cash consists primarily of bank deposits that collateralize our obligations to vendors and landlords.

The following table presents a reconciliation of cash, cash equivalents and restricted cash in our Condensed Consolidated Balance Sheets to total cash, cash equivalents and restricted cash in our Condensed Consolidated Statements of Cash Flows:


	October 28, 2023		October 29, 2022		January 28, 2023
Cash and cash equivalents	$	909.0	$	803.8	$	1,139.0
Restricted cash(1)	5.1		40.9		41.3
Long-term restricted cash(2)	15.1		14.8		15.7
Total cash, cash equivalents and restricted cash	$	929.2	$	859.5	$	1,196.0

_________________________________________________

(1) Recognized in prepaid expenses and other current assets on our Condensed Consolidated Balance Sheets.

(2) Recognized in other noncurrent assets on our Condensed Consolidated Balance Sheets.

Investments

We have traditionally invested our excess cash in investment grade short-term fixed income securities, which consist of U.S. government and agency securities and time deposits. Such investments with an original maturity in excess of 90 days and less than one year are classified as marketable securities on our Condensed Consolidated Balance Sheets.

Such investments are classified as available-for-sale debt securities and reported at fair value. Unrealized holding gains and losses are recognized in accumulated other comprehensive loss on our Condensed Consolidated Balance Sheets. Realized gains and losses upon sale or extinguishment are reported in other loss, net in our Condensed Consolidated Statements of Operations. Each reporting period, we evaluate whether declines in fair value below carrying value are due to expected credit losses, as well as our ability and intent to hold the investment until a forecasted recovery occurs.

On December 5, 2023, the Board of Directors approved a new investment policy (the “Investment Policy”) that permits the Company to invest in equity securities, among other investments.

Digital Assets

We account for digital assets in accordance with ASC 350, Intangibles-Goodwill and Other (Topic 350). Our digital assets are indefinite-lived intangible assets which are initially recorded at cost. Accordingly, if the fair market value at any point during the reporting period is lower than the carrying value, an impairment loss equal to the difference will be recognized in SG&A expenses in our Condensed Consolidated Statement of Operations. Impairment losses cannot be recovered for any subsequent increase in fair value until the sale or disposal of the asset. Gains on the sale of digital assets, if any, will be recognized based on the fair value upon sale or disposal of the assets in SG&A expenses in our Condensed Consolidated Statement of Operations.

In January 2022, we entered into contractual agreements with Immutable X Pty Limited (“IMX”) and Digital Worlds NFTs Ltd. pursuant to which the Company was entitled to receive up to $150 million in digital assets in the form of IMX tokens once certain contractual milestones had been achieved. Upon announcement, we achieved our first milestone under the agreement with IMX and recognized a $79.0 million noncurrent receivable and corresponding deferred income liability related to our entitlement to IMX tokens as of January 29, 2022. During fiscal 2022, we achieved our second and third milestones under our agreement with IMX, and recognized an additional $33.8 million of deferred income liability on our Condensed Consolidated Balance Sheets. The deferred income is recognized over the term of the contractual agreement. We liquidated all tokens received under our agreements with IMX in fiscal 2022 and have no IMX token assets recorded on the Condensed Consolidated Balance Sheets as of October 28, 2023. During the three months ended October 29, 2022, we recognized $13.9 million of income in SG&A expenses in our Condensed Consolidated Statements of Operations. During the nine months ended October 29, 2022, we recognized a loss of $7.2 million on the noncurrent receivable, an impairment of $33.9 million on the digital assets, a gain of $6.9 million on the sale of digital assets, and deferred income of $41.7 million in SG&A expenses in our Condensed Consolidated Statements of Operations. During the three and nine months ended October 28, 2023, we recognized deferred income of

Table of Contents

GAMESTOP CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, except per share amounts)

(unaudited)

$14.3 million and $42.9 million, respectively, in SG&A expenses in our Condensed Consolidated Statements of Operations. As of October 28, 2023, the remaining deferred income liability related to our agreements with IMX was $14.3 million in accrued liabilities and other current liabilities on our Condensed Consolidated Balance Sheets.

During 2022, we also launched beta versions of a non-custodial digital asset wallet and a peer-to-peer non-fungible token ("NFT") marketplace that enables the purchases, sales, and trades of NFTs. Revenues earned related to our NFT digital asset wallet and marketplace are recognized in net sales in our Condensed Consolidated Statement of Operations. Revenues earned from our digital asset wallet and NFT marketplace were not material to the condensed consolidated financial statements for the three and nine months ended October 28, 2023.

Assets Held-for-Sale

During the fourth quarter of fiscal 2022, we committed to a plan to sell property in our Europe segment consisting of a building, land and other property and equipment with a total net carrying value of $7.1 million. In April 2023, the Company entered into an agreement to sell the building and land for approximately $13.1 million. The transaction closed in August 2023 and the related gain was recognized in SG&A expenses in our Condensed Consolidated Statements of Operations.

During the first half of fiscal 2023, we committed to a plan to sell additional properties in our Europe segment consisting of buildings and land with a total net carrying value of $9.2 million. There were no impairment charges recognized on these asset groups as the estimated fair value exceeded their respective carrying values.

The building, land and other property and equipment are classified as assets held for sale in other noncurrent assets on our Condensed Consolidated Balance Sheets as of October 28, 2023.

3. Revenue

The following table presents net sales by significant product category:


	Three Months Ended				Nine Months Ended
	October 28, 2023		October 29, 2022		October 28, 2023		October 29, 2022
Hardware and accessories (1)	$	579.4	$	627.0	$	1,902.2	$	1,897.2
Software (2)	321.3		352.1		1,056.7		1,152.2
Collectibles	177.6		207.3		520.3		651.4
Total net sales	$	1,078.3	$	1,186.4	$	3,479.2	$	3,700.8

__________________________________________________

(1) Includes sales of new and pre-owned hardware, accessories, hardware bundles in which hardware and digital or physical software are sold together in a single SKU, interactive game figures, strategy guides, mobile and consumer electronics.

(2) Includes sales of new and pre-owned gaming software, digital software, and PC entertainment software.

See Note 8, "Segment Information," for net sales by geographic location.

Performance Obligations

We have arrangements with customers where our performance obligations are satisfied over time, which primarily relate to extended warranties and our GameStop ProTM rewards program, formerly known as PowerUp Rewards®. Our GameStop ProTM rewards program includes a subscription to Game Informer® magazine.

We expect to recognize revenue in future periods for remaining performance obligations we have associated with unredeemed gift cards, trade-in credits, reservation deposits and loyalty points earned as part of our GameStop ProTM rewards program (collectively, "unredeemed customer liabilities"), extended warranties, and subscriptions to our GameStop ProTM rewards program.

Performance obligations associated with unredeemed customer liabilities are primarily satisfied at the time customers redeem gift cards, trade-in credits, customer deposits or loyalty program points for products that we offer. Unredeemed customer liabilities are generally redeemed within one year of issuance.

We offer extended warranties on certain new and pre-owned products with terms generally ranging from 12 to

SEC Form 10-Q filed by GameStop Corporation