content_image/96283.jpg content_image/96285.jpg
## 7. STOCKHOLDERS’ EQUITY 

The Company’s stockholders’ equity is comprised of the following: 

## THE CHILDREN’S PLACE RETAIL STORES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 

<img src='content_image/96283.jpg'>

## 8. STOCK OPTION AND PURCHASE PLANS 

## Stock Option Plans 

The Company accounts for its stock option plans in accordance with the provisions of SFAS 123. Accordingly, no compensation expense has been recognized for stock- based compensation, since the options granted were at prices that equaled or exceeded their estimated fair market value at the date of grant. If compensation expense for the Company’ stock options issued in fiscal 2001, fiscal 2000 and fiscal 1999 had been determined based on the fair value method of accounting, the Company’ net income would have been reduced to the pro forma amounts indicated below for the three fiscal years in the period ended February 2, 2002: 

<img src='content_image/96285.jpg'>

