THQ 2005 Annual Report Download - page 79

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See notes to consolidated financial statements.
56
THQ INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Year Ended March 31, Transition
Year Ended
December 31,
2005 2004 2003 2002
OPERATING ACTIVITIES:
Net income(loss) ..................................... $62,790 $ 35,839 $ (7,686 ) $ 12,994
Adjustments to reconcile net income (loss) to net cash
provided by operating activities:
Minority interest. ................................... 261 —— —
Depreciation and amortization........................ 10,485 7,227 1,956 6,385
Amortization of licenses and software development ...... 121,801 126,686 13,323 91,677
Loss on disposal of property and equipment ............. 48 258 —137
Stock compensation................................. —84530 436
Tax benefit related to the exercise of employee stock
options.......................................... 6,640 2,367 181 5,124
Deferred income taxes ............................... 7,442 2,464(1,180 ) (730)
Other than temporary impairment on investments. ....... ——2,403 —
Write-off of Network Interactive Sports Ltd. ............ —— —3,006
Changes in operating assets and liabilities:
Accounts receivable, net ............................. (8,507) (21,766) 111,022 (15,371)
Inventory.......................................... (1,015) 3,427 233 (12,112)
Licenses ........................................... (107,679) (24,072) (4,027 ) (33,918)
Software development ............................... (92,863) (80,803) (19,305 ) (75,049)
Prepaid expenses and other current assets.............. (4,362) 2,318 771 (2,101)
Accounts payable ................................... 11,205 (343) (20,374 ) 11,067
Accrued liabilities................................... 12,744 970 (12,543 ) 14,203
Accrued payment to venture partner ................... (129) 70 (5,169 ) (626)
Accrued royalties ................................... 60,694 15,012 (18,181 ) 8,834
Income taxes ....................................... (19,100) 1,416 (3,479 ) 2,374
Net cash provided by operating activities.................. 60,455 71,154 38,475 16,330
INVESTING ACTIVITIES:
Proceeds from sales and maturities of investments. ....... 243,607 42,500 65,019 90,732
Purchase of short-term investments.................... (280,488) (61,325) (99,104 ) (106,227)
Purchases of long-term marketable securities ............ —(24,320)— —
(Increase) decrease in other long-term assets............ (5,125) (70)1,510 (1,422)
Acquisitions,net of cash acquired ..................... (19,234) (2,300) — (9,373)
Acquisition of property and equipment ................. (16,651) (7,638) (2,099 ) (7,794)
Investmentin Network Interactive Sports Ltd............ —— —(221)
Net cash used in investing activities ...................... (77,891) (53,153) (34,674 ) (34,305)
FINANCING ACTIVITIES:
Stock repurchase. ................................... (9,080) (10,994) (7,758 ) (25,005)
Proceeds from issuance of common stock ............... —— —52
Proceeds from exercise ofwarrants and stock options ..... 42,844 7,121 1,408 7,750
Net cash provided by (used in)financing activities .......... 33,764 (3,873) (6,350 ) (17,203)
Effect of exchange rate changes on cash.................. 605 4,079 (784 ) 862
Net increase(decrease) in cash and cash equivalents. ....... 16,933 18,207 (3,333 ) (34,316)
Cash and cashequivalents—beginning of period ........... 81,242 63,035 66,368 100,684
Cash and cashequivalents—end of period................ $98,175 $ 81,242 $ 63,035 $ 66,368
Cash paid during the period for:
Income taxes .......................................... $21,825 $ 15,625 $ 2,616 $ 3,257
Interest............................................... $ 199 $ 144 $ 11 $ 76