GameStop 2005 Annual Report Download - page 101

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Shares
Weighted-Average
Exercise Price
(Thousands of shares)
Balance, January 29, 2005 ................................... 11,406 $10.86
Granted ................................................. 2,222 $20.63
Exercised ............................................... (1,740) $11.95
Forfeited ................................................ (432) $19.45
Balance, January 28, 2006 ................................... 11,456 $12.31
The following table summarizes information as of January 28, 2006 concerning outstanding and exercisable
options:
Range of Exercise Prices
Number
Outstanding
(000s)
Weighted-
Average
Remaining
Life
Weighted-
Average
Contractual
Price
Number
Exercisable
(000s)
Weighted-
Average
Exercise
Price
Options Outstanding Options Exercisable
$3.53 — $4.51 ................ 4,987 5.32 $ 4.41 4,987 $ 4.41
$11.80 — $12.71............... 542 7.18 $11.88 284 $11.85
$15.10 — $16.48............... 166 8.01 $15.62 77 $15.79
$18.00 — $21.25............... 5,641 7.45 $18.85 2,961 $18.09
$35.88 ...................... 120 9.62 $35.88 — $ —
$3.53 — $35.88 ............... 11,456 6.55 $12.31 8,309 $ 9.64
In September 2005, the Company granted 50 shares of restricted stock to non-employee members of its Board
of Directors. The shares had a fair market value of $35.88 on the grant date and vest in equal installments over two
years. During the 52 weeks ended January 28, 2006, the Company included compensation expense relating to the
grant of these restricted shares in the amount of $347 in selling, general and administrative expenses in the
accompanying consolidated statements of operations.
14. Employees’ Defined Contribution Plan
The Company sponsors a defined contribution plan (the “Savings Plan”) for the benefit of substantially all of
its employees who meet certain eligibility requirements, primarily age and length of service. The Savings Plan
allows employees to invest up to 15% of their current gross cash compensation invested on a pre-tax basis, at their
option. The Company’s optional contributions to the Savings Plan are generally in amounts based upon a certain
percentage of the employees’ contributions. The Company’s contributions to the Savings Plan during the 52 weeks
ended January 28, 2006, January 29, 2005 and January 31, 2004, were $1,196, $992 and $849, respectively. EB also
sponsors a defined contribution plan for the benefit of substantially all of its employees who meet certain eligibility
requirements, primarily age and length of service. The Company’s contributions to the EB savings plan during the
16 weeks from October 9, 2005 to January 28, 2006 were $137.
15. Certain Relationships and Related Transactions
The Company operates departments within ten bookstores operated by Barnes & Noble. The Company pays a
license fee to Barnes & Noble in amounts equal to 7.0% of the gross sales of such departments. Management deems
the license fee to be reasonable and based upon terms equivalent to those that would prevail in an arm’s length
transaction. During the 52 weeks ended January 28, 2006, January 29, 2005 and January 31, 2004, these charges
amounted to $857, $859 and $974, respectively.
92
GAMESTOP CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)