2K Sports 2003 Annual Report Download - page 12

Our consolidated financial information should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and
Results of Operations and Consolidated Financial Statements (including the notes thereto) contained elsewhere in this report.
We restated our previously issued financial statements for the fiscal years ended October 31, 1999, 2000, 2001 and 2002, the interim quarters
of 2002 and the first three quarters of 2003 to reflect our revised revenue recognition policy. Under this policy, we recognize as a reduction of net
sales a reserve for estimated future price concessions in the period in which the sale is recorded. Measurement of the reserve is based on,
among other factors, an historical analysis of price concessions, an assessment of field inventory levels and sell-through for each product, current
industry conditions and other factors affecting the estimated timing and amount of concessions management believes will be granted. We previ-
ously recognized price concession reserves in the period in which we communicated the price concessions to our customers. We also restated
our financial statements for the fiscal years ended October 31, 2000 and 2001 to increase our provision for returns at October 31, 2000 by
approximately $4.9 million for certain sales transactions primarily to retail customers in fiscal 2000, and to reflect the fiscal 2001 returns as a
reduction of the revised October 31, 2000 reserve for returns rather than the previously reported reduction of sales in fiscal 2001. Additionally,
fiscal 2000 and 2001 revenues were restated for approximately $0.2 million to adjust for sales cut-off transactions at the end of fiscal 2000. See
Notes 2 and 19 to Consolidated Financial Statements for details relating to the restatement.
(In thousands, except per share data) Years Ended October 31
Statement of Operations Data: 2003 2002 2001(1) 2000 1999
(Restated) (Restated) (Restated) (Restated)
Net sales $1,033,693 $794,676 $451,396 $358,918 $303,715
Income from operations 163,011 122,705 28,377 30,250 26,627
Income (loss) before cumulative effect of
change in accounting principle 98,118 71,563 (1,674) 4,555 15,871
Net income (loss) 98,118 71,563 (6,918) 4,555 15,871
Net income (loss) per share
Basic $ 2.34 $ 1.88 $ (0.20) $ 0.17 $ 0.77
Diluted 2.27 1.81 (0.20) 0.16 0.74
As of October 31
Balance Sheet Data: 2003 2002 2001 2000 1999
(Restated) (Restated) (Restated) (Restated)
Cash and cash equivalents $ 183,477 $108,369 $ 6,056 $ 5,245 $ 10,374
Working capital 348,155 196,555 91,794 65,663 40,743
Total assets 707,298 491,440 354,305 326,173 231,016
Total debt —— 54,073 96,873 56,137
Total liabilities 173,806 135,896 135,140 158,538 146,609
Stockholders’ equity 533,492 355,544 219,165 167,634 84,407
(1) Includes approximately $23.8 million of net sales, $8.7 million of income from operations and $5.2 million of income included in loss before cumulative effect of
change in accounting principle, representing the effect of the adoption of Staff Accounting Bulletin 101, “Revenue Recognition” (SAB 101) in the first quarter of
fiscal 2001. There was no impact on net loss.
As required by Statement of Financial Accounting Standards No. 145, “Rescission of FASB Statements No. 4, 44 and 64, Amendment to FASB Statement No. 13,
and Technical Corrections,” the $1,948 net loss on extinguishment of debt for the year ended October 31, 2001, previously classified as an extraordinary item, has
been reclassified as follows: $3,165 of loss on extinguishment to non-operating expenses (included within loss before cumulative effect of change in accounting
principle) and $1,217 of tax benefit to benefit for income taxes in the above table.
TAKE-TWO INTERACTIVE SOFTWARE, INC. AND SUBSIDIARIES
Selected Financial Data
10