GameStop 2003 Annual Report Download - page 60

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Table of Contents
GAMESTOP CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
differences, to the extent they are temporary, are recorded as deferred tax assets and liabilities under SFAS 109 and consisted of the following components:
January 31, February 1,
2004 2003
(In thousands)
Deferred tax asset:
Allowance for doubtful accounts $ 62 $ 102
Inventory capitalization costs 1,694 1,064
Inventory obsolescence reserve 4,200 3,251
Accrued liabilities 273 878
Gift certificate liability 1,912 536
Deferred rents 1,353 1,209
Accrued state taxes (480) 404
Total deferred tax benefits 9,014 7,444
Deferred tax liabilities:
Goodwill (15,814) (10,521)
Translation adjustment (200)
—
Fixed assets (4,170) (1,614)
Accrued state taxes 1,100 334
Total deferred tax liabilities (19,084) (11,801)
Net $ (10,070) $ (4,357)
Financial statements:
Current deferred tax assets $ 7,661 $ 6,034
Non-current deferred tax liabilities $(17,731) $(10,391)
13. Stock Option Plan
Effective August 2001, Barnes & Noble approved the 2001 Incentive Plan of GameStop Corp. The 2001 Incentive Plan assumed (by the issuance of replacement
options) all stock options outstanding as of the effective date under the 2000 Incentive Plan of GameStop, Inc. under the same terms.
Effective September 13, 2000, Barnes & Noble approved the 2000 Incentive Plan of GameStop, Inc. (together with the 2001 Incentive Plan of Gamestop Corp, the
“Option Plans”). The Option Plans, as amended, provide a maximum aggregate amount of 20,000 shares of common stock with respect to which options may be
granted and provide for the granting of incentive stock options, non-qualified stock options, and restricted stock, which may include, without limitation, restrictions on
the right to vote such shares and restrictions on the right to receive dividends on such shares. The options to purchase common shares generally are issued at fair market
value on the date of grant. Generally, the options vest and become exercisable ratably over a three-year period, commencing one year after the grant date, and expire ten
years from issuance.
Option Plan Grants
On December 5, 2000, the Company granted 4,488 options to its employees based upon the fair value of the shares at the date of grant ($3.53 per share) as
determined by an independent appraisal. On June 13, 2001, options to acquire 4,500 shares were granted with immediate vesting at an exercise price of $4.51 per share
to Leonard Riggio based on the fair value at the date of grant as determined by an independent appraisal. On
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