2K Sports 2008 Annual Report Download - page 104

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of $3,080. The disposition of Joytech did not involve a significant amount of assets or materially impact our
operating results.
Also, in 2007, we recognized a loss of $1,389 when we deconsolidated the net assets of Blue Castle
Games, Inc. (‘‘Blue Castle’’), which was previously accounted for, in accordance with FIN 46(R), as a
wholly-owned subsidiary and considered to be a variable interest entity. Blue Castle continues to develop
certain of our sports titles; however, we are no longer considered to be the primary beneficiary of Blue
Castle’s future profits or losses.
18. SUPPLEMENTARY FINANCIAL INFORMATION
The following table provides details of our valuation and qualifying accounts:
Additions
Charged to
Beginning Revenue Costs and Ending
Balance Reduction(1) Expenses Deductions Other Balance
Year ended October 31, 2008
Valuation allowance for deferred
income taxes $123,616 — — (19,311) — $104,305
Sales returns, price protection
and other allowances $ 59,799 $ 99,801 $ 416 $ (91,579) $(4,372) $ 64,065
Allowance for doubtful accounts 3,525 — 3,720 (2,803) (59) 4,383
Total accounts receivable
allowances $ 63,324 $ 99,801 $ 4,136 $ (94,382) $(4,431) $ 68,448
Year ended October 31, 2007
Valuation allowance for deferred
income taxes $ 82,994 — 44,262 (3,640) — $123,616
Sales returns, price protection and
other allowances $ 87,178 $111,562 $ 2,500 $(144,067) $ 2,626 $ 59,799
Allowance for doubtful accounts 4,331 — (683) (148) 25 3,525
Total accounts receivable
allowances $ 91,509 $111,562 $ 1,817 $(144,215) $ 2,651 $ 63,324
Year ended October 31, 2006
Valuation allowance for deferred
income taxes $ 19,759 — 66,647 (3,412) — $ 82,994
Sales returns, price protection and
other allowances $ 65,785 $168,875 $ 3,042 $(153,411) $ 2,887 $ 87,178
Allowance for doubtful accounts 4,119 — 926 (647) (67) 4,331
Total accounts receivable
allowances $ 69,904 $168,875 $ 3,968 $(154,058) $ 2,820 $ 91,509
(1) Includes price concessions of $52,269, $68,067 and $73,861; returns of $31,480, $37,616 and $54,004; other sales allowances
including rebates, discounts and cooperative advertising of $16,052, $5,879 and $41,010 for the years ended October 31, 2008,
2007 and 2006, respectively.
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