(1) The net sales reclassification represents freight income previously recorded as a reduction to product costs.  The quarter ended October 31, 2002 also reflects a reclassification of $358 from depreciation and amortization to product costs. In January 2003, based on management’s strategy to consolidate the Company’s distribution business, and after taking into account the  relative cost savings involved, the Company closed its warehouse operations in Ottawa, Illinois and College Point, New York. Operations at these warehouses ceased by January 31 and the business conducted there was consolidated with the operations of the Company’s Jack of All Games distribution facility in Ohio. As a result of the closures, the Company recorded a charge of $7,028. The charge consisted of: (1) lease termination costs, representing  the fair value of remaining lease payments, net of estimated sublease rent; (2) disposition of fixed assets, representing the net book value of fixed assets and leasehold improvements; (3) other exit costs; and (4) an impairment charge with respect to an intangible asset, representing a customer list relating to the business conducted at the Illinois facility. These costs are included in general and administrative expense for the year ended October 31, 2003, except for the intangibles impairment which is included in depreciation and amortization expense, and are summarized in the table below: 20. CONSOLIDATION OF DISTRIBUTION FACILITIES As As Reported Restatement Reclassifications (1) Restated Quarter ended January 31, 2002: Net sales $282,926 $ 3,425 $ 594 $286,945 Gross profit 103,103 3,139 — 106,242 Net income $ 34,829 $ 1,923 — $ 36,752 Per share data: Basic—EPS $ 0.95 $ 0.05 — $ 1.00 Diluted—EPS $ 0.92 $ 0.05 — $ 0.97 Quarter ended April 30, 2002: Net sales $170,330 $(3,218) $ 174 $167,286 Gross profit 63,297 (2,655) — 60,642 Net income $ 9,637 $(1,627) — $ 8,010 Per share data: Basic—EPS $ 0.26 $ (0.04) — $ 0.22 Diluted—EPS $ 0.25 $ (0.04) — $ 0.21 Quarter ended July 31, 2002: Net sales $122,461 $ 537 $ 119 $123,117 Gross profit 45,524 473 — 45,997 Net income $ 4,766 $ 283 — $ 5,049 Per share data: Basic—EPS $ 0.12 $ 0.01 — $ 0.13 Diluted—EPS $ 0.12 $ 0.01 — $ 0.13 Quarter ended October 31, 2002: Net sales $218,259 $(1,086) $ 155 $217,328 Gross profit 83,036 (967) (358) 81,711 Net income $ 22,333 $ (581) — $ 21,752 Per share data: Basic—EPS $ 0.56 $ (0.01) — $ 0.55 Diluted—EPS $ 0.54 $ (0.01) — $ 0.53 Lease Fixed Termination Asset Intangibles Other Exit Costs Dispositions Impairment Costs Total Provisions during the year  ended October 31, 2003 $ 1,607 $ 999 $ 4,407 $ 15 $ 7,028 Asset write-offs (65) (999) (4,407) (3) (5,474) Cash payments (1,542) — — (12) (1,554) Remaining obligations at October 31, 2003 $ — $— $ — $ — $ — 47