2K Sports 2008 Annual Report Download - page 88

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Amortization and impairment of software development costs and licenses for the years ended October 31,
2008, 2007 and 2006 were as follows:
Years Ended October 31,
2008 2007 2006
Amortization and impairment of software development costs $159,563 $109,891 $147,832
Less: Portion representing stock-based compensation (13,461) (3,216) (1,263)
Amortization and impairment, net of stock-based compensation $146,102 $106,675 $146,569
8. FIXED ASSETS, NET
As of October 31, 2008 and 2007, fixed assets consisted of:
October 31,
2008 2007
Computer equipment $31,002 $30,628
Office equipment 4,517 11,315
Computer software 23,345 23,832
Furniture and fixtures 4,989 5,535
Leasehold improvements 22,378 25,521
86,231 96,831
Less: accumulated depreciation 53,870 51,845
Fixed assets, net $32,361 $44,986
Depreciation expense for the years ended October 31, 2008, 2007, and 2006, was $21,526, $24,115 and
$21,771, respectively.
9. GOODWILL AND INTANGIBLE ASSETS, NET
We assess goodwill for impairment in the fourth quarter of each fiscal year, or more frequently if
circumstances indicate impairment may have occurred. For the fiscal years 2008 and 2007 we did not
recognize an impairment loss on goodwill. In fiscal 2006, we recorded a goodwill impairment charge of
$6,341 related to our former Joytech subsidiary, a manufacturer and distributor of video game accessories
and peripherals, which operated within our publishing segment. The impairment charge was recorded as a
component of operating expenses.
The change in our goodwill balance by operating segment was as follows:
Publishing Distribution Total
Balance at November 1, 2006 $163,957 $23,724 $187,681
Additions and adjustments 4,314 — 4,314
Currency translation adjustment 11,876 974 12,850
Balance at October 31, 2007 180,147 24,698 204,845
Additions and Adjustments 33,021 — 33,021
Currency translation adjustment (6,489) (568) (7,057)
Balance at October 31, 2008 $206,679 $24,130 $230,809
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