2K Sports 2003 Annual Report Download - page 49

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47
As As
Reported Restatement Reclassifications(1) Restated
Quarter ended January 31, 2002:
Net sales $282,926 $ 3,425 $ 594 $286,945
Gross profit 103,103 3,139 — 106,242
Net income $ 34,829 $ 1,923 — $ 36,752
Per share data:
Basic—EPS $ 0.95 $ 0.05 — $ 1.00
Diluted—EPS $ 0.92 $ 0.05 — $ 0.97
Quarter ended April 30, 2002:
Net sales $170,330 $(3,218) $ 174 $167,286
Gross profit 63,297 (2,655) — 60,642
Net income $ 9,637 $(1,627) — $ 8,010
Per share data:
Basic—EPS $ 0.26 $ (0.04) — $ 0.22
Diluted—EPS $ 0.25 $ (0.04) — $ 0.21
Quarter ended July 31, 2002:
Net sales $122,461 $ 537 $ 119 $123,117
Gross profit 45,524 473 — 45,997
Net income $ 4,766 $ 283 — $ 5,049
Per share data:
Basic—EPS $ 0.12 $ 0.01 — $ 0.13
Diluted—EPS $ 0.12 $ 0.01 — $ 0.13
Quarter ended October 31, 2002:
Net sales $218,259 $(1,086) $ 155 $217,328
Gross profit 83,036 (967) (358) 81,711
Net income $ 22,333 $ (581) — $ 21,752
Per share data:
Basic—EPS $ 0.56 $ (0.01) — $ 0.55
Diluted—EPS $ 0.54 $ (0.01) — $ 0.53
(1) The net sales reclassification represents freight income previously recorded as a reduction to product costs.
The quarter ended October 31, 2002 also reflects a reclassification of $358 from depreciation and amortization to product costs.
20. CONSOLIDATION OF DISTRIBUTION FACILITIES
In January 2003, based on management’s strategy to consolidate the Company’s distribution business, and after taking into account the
relative cost savings involved, the Company closed its warehouse operations in Ottawa, Illinois and College Point, New York. Operations at these
warehouses ceased by January 31 and the business conducted there was consolidated with the operations of the Company’s Jack of All Games
distribution facility in Ohio.
As a result of the closures, the Company recorded a charge of $7,028. The charge consisted of: (1) lease termination costs, representing
the fair value of remaining lease payments, net of estimated sublease rent; (2) disposition of fixed assets, representing the net book value of
fixed assets and leasehold improvements; (3) other exit costs; and (4) an impairment charge with respect to an intangible asset, representing a
customer list relating to the business conducted at the Illinois facility.
These costs are included in general and administrative expense for the year ended October 31, 2003, except for the intangibles impairment
which is included in depreciation and amortization expense, and are summarized in the table below:
Lease Fixed
Termination Asset Intangibles Other Exit
Costs Dispositions Impairment Costs Total
Provisions during the year
ended October 31, 2003 $ 1,607 $ 999 $ 4,407 $ 15 $ 7,028
Asset write-offs (65) (999) (4,407) (3) (5,474)
Cash payments (1,542) — — (12) (1,554)
Remaining obligations
at October 31, 2003 $ — $— $ — $ — $ —