2K Sports 2003 Annual Report Download - page 50

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21. SEGMENT INFORMATION
The Company has adopted Statement of Financial Accounting
Standards No. 131, “Disclosures about Segments of an Enterprise
and Related Information” (“SFAS 131”), which established standards
for reporting by public business enterprises of information about
product lines, geographical areas and major customers. The method
for determining what information to report is based on the way man-
agement organizes the Company for making operational decisions
and assessment of financial performance. The Company’s chief oper-
ating decision maker is considered to be the Company’s Chief Execu-
tive Officer (“CEO”). The CEO reviews financial information presented
on a consolidated basis accompanied by disaggregated information
about sales by geographic region and by product platforms. The
Company’s Board of Directors reviews consolidated financial informa-
tion. The Company’s operations employ the same products and types
of customers worldwide. The Company’s product development, pub-
lishing and marketing activities are centralized in the United States
under one management team, with distribution activities managed
geographically. Accordingly, the Company’s operations fall within
one reportable segment as defined in SFAS 131.
For the years ended October 31, 2003, 2002, and 2001, the Com-
pany’s net sales in domestic markets accounted for approximately
72.1%, 80.0% and 76.4%, respectively, and net sales in international
markets accounted for 27.9%, 20.0% and 23.6%, respectively.
As of October 31, 2003 and 2002, the Company’s net property,
plant and equipment in domestic markets accounted for approxi-
mately $13,789 and $11,222, respectively, and net property, plant and
equipment in international markets accounted for $8,471 and $4,097,
respectively.
Information about the Company’s total non-current assets in the
United States and international areas as of October 31, 2003 and
2002 is presented below:
2003 2002
Total non-current assets:
United States $118,523 $ 98,849
International
United Kingdom 25,739 20,505
All other Europe 19,275 17,685
Other 30,359 26,036
$193,896 $163,075
Information about the Company’s net sales in the United States
and international areas for the years ended October 31, 2003, 2002
and 2001 is presented below (net sales are attributed to geographic
areas based on product destination):
2003 2002 2001
(Restated) (Restated)
Net sales:
United States $ 667,580 $606,467 $324,750
Canada 77,360 28,965 20,080
International
United Kingdom 88,381 47,021 32,227
All other Europe 175,717 98,490 61,187
Asia Pacific 22,885 12,593 12,478
Other 1,770 1,140 674
$1,033,693 $794,676 $451,396
Information about the Company’s net sales by product platforms
for the years ended October 31, 2003, 2002 and 2001 is presented
below:
2003 2002 2001
(Restated) (Restated)
Platforms:
Sony PlayStation 2 $ 591,205 $473,214 $130,691
Sony PlayStation 58,334 58,718 75,084
Microsoft Xbox 84,112 54,144 2,428
PC 147,275 102,734 103,849
Nintendo Game Boy Color,
Game Boy Advance and 64 48,547 20,348 37,595
Nintendo GameCube 29,085 17,761 —
Sega Dreamcast 109 1,602 11,347
Accessories 20,165 31,734 31,536
Hardware 54,861 34,421 58,866
$ 1,033,693 $794,676 $451,396
TAKE-TWO INTERACTIVE SOFTWARE, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (continued)
(Dollars in thousands, except per share amounts)