GameStop 2005 Annual Report Download - page 91

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4. Computation of Net Earnings per Common Share
The Company has two classes of common stock and computes earnings per share using the two-class method
in accordance with Statement of Financial Accounting Standards No. 128, Earnings per Share. As discussed in
Note 20, the holders of the Company’s Class A and Class B common stock have identical rights to dividends or to
distributions in the event of a liquidation, dissolution or winding up of the Company. Accordingly, the earnings per
common share for the two classes of common stock are the same. A reconciliation of shares used in calculating
basic and diluted net earnings per common share follows: 52 Weeks
Ended
January 28,
2006
52 Weeks
Ended
January 29,
2005
52 Weeks
Ended
January 31,
2004
(In thousands, except per share data)
Net earnings ..................................... $100,784 $60,926 $63,467
Weighted average common shares outstanding
Class A ...................................... 28,018 20,683 20,321
Class B ...................................... 29,902 33,979 36,009
Weighted average common shares outstanding .......... 57,920 54,662 56,330
Dilutive effect of options and warrants on Class A common
stock ........................................ 4,566 3,134 3,434
Common shares and dilutive potential common shares ...... 62,486 57,796 59,764
Net earnings per Class A and Class B common share:
Basic .......................................... $ 1.74 $ 1.11 $ 1.13
Diluted......................................... $ 1.61 $ 1.05 $ 1.06
The following table contains information on options to purchase shares of Class A common stock which were
excluded from the computation of diluted earnings per share because they were anti-dilutive:
Anti-
Dilutive
Shares
Range of
Exercise
Prices
Expiration
Dates
(In thousands, except per share data)
52 Weeks Ended January 28, 2006 ................ 120 $ 35.88 2015
52 Weeks Ended January 29, 2005 ................ 30 $ 21.25 2012
52 Weeks Ended January 31, 2004 ................ 3,831 $18.00-$21.25 Through 2013
5. Receivables, Net
Receivables consist primarily of bankcard receivables and other receivables. Other receivables include
receivables from Game Informer magazine advertising customers, receivables from landlords for tenant allowances
and receivables from vendors for merchandise returns, vendor marketing allowances and various other programs.
An allowance for doubtful accounts has been recorded to reduce receivables to an amount expected to be collectible.
Receivables consisted of the following:
January 28,
2006
January 29,
2005
(In thousands)
Bankcard receivables ........................................ $19,017 $5,946
Other receivables ........................................... 21,210 4,259
Allowance for doubtful accounts . . .............................. (1,489) (393)
Total receivables, net ........................................ $38,738 $9,812
82
GAMESTOP CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)