2K Sports 2009 Annual Report Download - page 103

In April 2009, our shareholders approved our 2009 Stock Incentive Plan (the ‘‘2009 Plan’’). The aggregate
number of shares issuable under this plan is 6,409,000 shares, representing 4,900,000 new shares available
for grant approved by our shareholders and approximately 1,509,000 shares allocated from the Incentive
Stock Plan and 2002 Stock Option Plan. The 2009 Stock Incentive Plan is administered by the
Compensation Committee of the Board of Directors and allows for awards of restricted stock, deferred
stock and other stock-based awards of our common stock to employees and non-employees. As of
October 31, 2009 there were approximately 3,340,000 shares available for issuance under the 2009 Plan.
In April 2008, our stockholders approved an increase to the number of shares available for grant under the
Incentive Stock Plan from 4,500,000 to 6,500,000. The Incentive Stock Plan is administered by the
Compensation Committee of the Board of Directors and allows for awards of restricted stock, deferred
stock and other stock-based awards of our common stock to employees and non-employees. As of
October 31, 2009, there were no shares available for issuance under the Incentive Stock Plan.
In June 2002, our stockholders approved our 2002 Stock Option Plan, as previously adopted by our Board
of Directors (the ‘‘2002 Plan’’), pursuant to which officers, directors, employees and consultants may
receive stock options to purchase shares of our common stock. The aggregate amount of shares issuable
under the 2002 Plan is 11,000,000 shares. As of October 31, 2009, there were no shares available for
issuance under the 2002 Plan.
In January 1997, our stockholders approved our 1997 Stock Option Plan, as amended, as previously
adopted by our Board of Directors (the ‘‘1997 Plan’’), pursuant to which officers, directors, employees and
consultants may receive options to purchase up to an aggregate of 9,750,000 shares of our common stock.
As of October 31, 2009, there were no shares of common stock available for issuance under the 1997 Plan.
Subject to the provisions of the plans, the Board of Directors or any Committee appointed by the Board of
Directors, has the authority to determine the individuals to whom the stock options or other awards are to
be granted, the number of shares to be covered by each option or other award, the option price, the type of
option, the option period, restrictions, if any, on the exercise of the option or other award, the terms for
the payment of the option price and other terms and conditions of the option or other award.
The following table summarizes stock-based compensation expense resulting from stock options and
restricted stock included in our Consolidated Statements of Operations:
Years Ended October 31,
2009 2008 2007
Cost of goods sold $ 6,094 $13,461 $ 3,216
Selling and marketing 2,551 2,370 1,232
General and administrative 14,119 19,678 7,080
Research and development 3,169 4,878 3,735
Business reorganization and related —— 2,066
Stock-based compensation expense 25,933 40,387 17,329
Capitalized stock-based compensation expense 11,413 8,215 9,983
Total stock-based compensation expense $37,346 $48,602 $27,312
During the years ended October 31, 2009, 2008 and 2007, we recorded $6,502, $13,481 and $1,283 of stock-
based compensation expense for non-employee awards, respectively, which was included in general and
administrative expense.
We capitalize and amortize stock-based compensation awards in accordance with our software
development cost accounting policy.
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