GameStop 2005 Annual Report Download - page 100

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January 28,
2006
January 29,
2005
(In thousands)
Deferred tax liabilities:
Goodwill ............................................... (25,202) (20,131)
Prepaid expenses .......................................... (3,154) (2,626)
Translation adjustment...................................... — (368)
Fixed assets ............................................. (2,680) (5,119)
Foreign dividend .......................................... (295) —
Accrued state taxes ........................................ 1,620 923
Total deferred tax liabilities . . .............................. (29,711) (27,321)
Net.................................................. $29,344 $(15,472)
Financial statements:
Current deferred tax assets .................................. $42,282 $ 5,785
Non-current deferred tax liabilities ............................. $(12,938) $(21,257)
13. Stock Option Plan
Effective October 2005, the Company’s stockholders voted to amend the Amended and Restated 2001
Incentive Plan of Historical GameStop (the “Option Plan”) to provide for issuance under the Option Plan of the
Company’s Class A common stock.
The Option Plan provides a maximum aggregate amount of 20,000 shares of Class A common stock with
respect to which options may be granted and provides 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 Class A 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.
A summary of the status of the Company’s stock options is presented below:
Shares
Weighted-Average
Exercise Price
(Thousands of shares)
Balance, February 1, 2003 ................................... 12,760 $ 8.83
Granted ................................................. 1,119 $12.19
Exercised ............................................... (1,943) $ 3.55
Forfeited ................................................ (629) $16.55
Balance, January 31, 2004 ................................... 11,307 $ 9.63
Granted ................................................. 1,676 $18.40
Exercised ............................................... (1,196) $ 7.93
Forfeited ................................................ (381) $16.81
91
GAMESTOP CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)