GameStop 2003 Annual Report Download - page 55

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Table of Contents
GAMESTOP CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
3. Acquisitions
On June 23, 2003, the Company acquired a controlling interest in Gamesworld Group Limited (“Gamesworld”), an Ireland-based electronic games retailer, for
approximately $3,279. The acquisition was accounted for using the purchase method of accounting and, accordingly, the results of operations for the period subsequent
to the acquisition are included in the consolidated financial statements. The excess of purchase price over the net assets acquired, in the amount of approximately
$2,869, has been recorded as goodwill. The pro forma effect assuming the acquisition of Gamesworld at the beginning of fiscal 2001, fiscal 2002 and fiscal 2003 is not
material.
4. Computation of Net Earnings per Common Share
A reconciliation of shares used in calculating basic and diluted net earnings per common share follows:
52 Weeks 52 Weeks 52 Weeks
Ended Ended Ended
January 31, February 1, February 2,
2004 2003 2002
(In thousands, except per share data)
Net earnings $63,467 $52,404 $6,960
Weighted Common Shares Outstanding 56,330 56,289 36,009
Common Share Equivalents Related to Options and Warrants 3,434 4,130 3,388
Common Shares and Common Share Equivalents 59,764 60,419 39,397
Net Earnings per Common Share:
Basic $ 1.13 $ 0.93 $ 0.19
Diluted $1.06 $0.87 $0.18
Options to purchase approximately 3,831 shares of common stock at exercise prices ranging from $18.00 to $21.25 per share were outstanding during a portion of
fiscal 2003, but were not included in the computation of diluted earnings per share because they were anti-dilutive. These options expire through 2013.
5. Receivables, Net
Receivables represent primarily bankcard and other receivables as follows:
January 31, February 1,
2004 2003
(In thousands)
Bankcard receivables $5,147 $ 4,461
Other receivables 4,787 2,673
Allowance for doubtful accounts (389) (241)
Total receivables, net $ 9,545 $ 6,893
F-13