2K Sports 2004 Annual Report Download - page 63

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Accordingly, no provision has been made for foreign withholding taxes or United States income taxes which
may become payable if undistributed earnings of foreign subsidiaries are paid as dividends to the Company.
14. STOCKHOLDERS’ EQUITY
In November 2003, at a special meeting, the Company’s stockholders voted to amend the certificate
of incorporation to increase the Company’s authorized shares of common stock from 50,000,000 to
100,000,000 shares.
In January 2003, the Board of Directors authorized a stock repurchase program under which the Company
may repurchase up to $25,000 of its common stock from time to time in the open market or in privately
negotiated transactions. The Company has not repurchased any shares under this program.
In February 2002, the Company issued 20,000 shares of restricted common stock to a former employee in
connection with a separation agreement.
15. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
The components of and changes in accumulated other comprehensive income (loss) are:
Foreign
Currency
Translation
Adjustments
Net Unrealized
Gain (Loss)
on Investments
Accumulated
Other
Comprehensive
Income (Loss)
Balance at November 1, 2001 ....................... $(10,608) $ 156 $(10,452)
Comprehensive income (loss) changes during the
year, net of taxes of $ 87 ...................... 5,553 (142) 5,411
Balance at October 31, 2002 ........................ (5,055) 14 (5,041)
Comprehensive income (loss) changes during the
year, net of taxes of $9 ........................ 4,119 (14) 4,105
Balance at October 31, 2003 ........................ (936) — (936)
Comprehensive income changes during the year . . 7,290 — 7,290
Balance at October 31, 2004 ........................ $ 6,354 $ — $ 6,354
The taxes in the above table relate to the changes in the net unrealized gain (loss) on investments. The
foreign currency adjustments are not adjusted for income taxes as they relate to indefinite investments in
non-U.S. subsidiaries.
16. STOCK-BASED PLANS
Incentive Stock Plan
The Incentive Stock Plan (“Incentive Plan”) was adopted by the Board of Directors on June 12, 2003 and
approved by stockholders in June 2004. The Incentive Plan provides for the grant of restricted stock,
deferred stock and other stock-based awards of the Company’s common stock to directors, officers and other
employees of the Company. A maximum of 1,000,000 shares are authorized for grant under the Incentive
Plan. The cost of restricted shares granted is expensed on a straight-line basis over the vesting period, which
ranges from 1 to 4 years. The Incentive Plan is administered by the Compensation Committee of the Board
of Directors.
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
(Dollars in thousands, except per share amounts)
13. INCOME TAXES (Continued)
55