2K Sports 2004 Annual Report Download - page 57

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6. FIXED ASSETS, NET
As of October 31, 2004 and 2003, fixed assets consist of:
2004 2003
Computer equipment .............................................. $16,973 $12,963
Office equipment ................................................. 6,405 5,096
Computer software ................................................ 15,480 11,529
Furniture and fixtures ............................................. 4,413 3,157
Leasehold improvements .......................................... 10,906 6,047
Capital leases ..................................................... 398 398
Construction in progress .......................................... 3,922 —
58,497 39,190
Less: accumulated depreciation and amortization ................. 24,206 16,930
Total .............................................................. $34,291 $22,260
Depreciation expense for the years ended October 31, 2004, 2003, and 2002, amounted to $12,443, $9,510
and $6,457, respectively.
7. CAPITALIZED SOFTWARE DEVELOPMENT COSTS
The following table provides the details of capitalized software development costs:
Years Ended October 31,
2004 2003 2002
Balance, November 1 ................................................. $ 16,336 $ 10,385 $ 9,739
Additions ............................................................. 25,960 15,923 9,645
Amortization .......................................................... (12,902) (10,940) (7,633)
Reclassification ....................................................... — — (1,419)
Write down ........................................................... (3,020) (63) (490)
Foreign exchange ..................................................... 1,411 1,031 543
Balance, October 31 .................................................. $ 27,785 $ 16,336 $10,385
8. GOODWILL AND INTANGIBLE ASSETS, NET
The following table sets forth the components of the intangible assets subject to amortization:
As of October 31, 2004 As of October 31, 2003
Range of
Useful Life
(years)
Gross
Carrying
Amount
Accumulated
Amortization Net
Gross
Carrying
Amount
Accumulated
Amortization Net
Trademarks ................... 7 – 10 $26,825 $(10,438) $16,387 $23,342 $ (7,391) $15,951
Customer lists and
Relationships ............... 5 – 10 4,673 (3,007) 1,666 4,673 (2,733) 1,940
Intellectual property ........... 2 – 6 39,783 (27,151) 12,632 31,823 (8,737) 23,086
Non-competition
Agreements ................ 3 – 6 7,888 (3,002) 4,886 4,790 (2,311) 2,479
Technology ................... 3 4,192 (3,659) 533 4,192 (2,812) 1,380
Total ......................... $83,361 $(47,257) $36,104 $68,820 $(23,984) $44,836
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
(Dollars in thousands, except per share amounts)
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