GameStop 2005 Annual Report Download - page 98

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intend to vigorously defend this action. The Defendants filed a motion to dismiss the case on various grounds, which
was heard in November 2005 and was denied. The Defendants appealed the denial of the motion to dismiss and on
March 24, 2006, the Alabama Supreme Court denied the Defendants’ application. Discovery is proceeding.
Mr. Moore was found guilty of capital murder in a criminal trial in Alabama and was sentenced to death in August
2005. We do not believe there is sufficient information to estimate the amount of the possible loss, if any, resulting
from the lawsuit.
In the ordinary course of our business, we are from time to time subject to various other legal proceedings. We
do not believe that any such other legal proceedings, individually or in the aggregate, will have a material adverse
effect on our operations or financial condition.
12. Income Taxes
The provision for income tax consisted of the following:
52 Weeks
Ended
January 28,
2006
52 Weeks
Ended
January 29,
2005
52 Weeks
Ended
January 31,
2004
(In thousands)
Current tax expense (benefit):
Federal ....................................... $43,142 $23,780 $21,671
State......................................... 3,950 4,355 4,733
Foreign....................................... 7,954 (634) (98)
55,046 27,501 26,306
Deferred tax expense (benefit):
Federal ....................................... (7,016) 5,228 4,690
State......................................... (1,512) 6 1,023
Foreign....................................... 312 168 —
(8,216) 5,402 5,713
Charge in lieu of income taxes, relating to the tax effect of
stock option tax deduction......................... 12,308 5,082 9,702
Total income tax expense ........................... $59,138 $37,985 $41,721
The components of earnings before income tax expense consisted of the following:
52 Weeks
Ended
January 28,
2006
52 Weeks
Ended
January 29,
2005
52 Weeks
Ended
January 31,
2004
(In thousands)
United States .................................... $142,362 $101,961 $105,606
International ..................................... 17,560 (3,050) (418)
Total .......................................... $159,922 $ 98,911 $105,188
89
GAMESTOP CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)