THQ 2007 Annual Report Download - page 63

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See notes to consolidated financial statements.
55
THQ INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Inthousands)
Fiscal Year Ended March 31,
2007 20062005
OPERATINGACTIVITIES:
Netincome. ..................................................$68,038 $ 32,106 $ 61,397
Adjustments to reconcile net incometo net cashprovided by
operating activities:
Minority interest and other...................................5463261
Depreciation andamortization................................15,651 14,162 10,485
Amortizationof licenses and software development. .............179,684 112,916 121,801
Gain on sale of discontinued operations........................(3,080) ——
Loss on disposal of property andequipment ....................1,395 53848
Stock-based compensation...................................16,2533,422 806
Taxbenefitrelated to stock-basedawards ......................8,866 9,1626,940
Excesstax benefitrelated to stock-basedawards.................(3,963) ——
Deferred income taxes. ......................................(948) 2,0827,569
Changes in operating assetsand liabilities:
Accounts receivable, net of allowances .........................7,053 (5,902) (8,507)
Inventory..................................................2,277(5,501) (1,015)
Licenses ...................................................(37,809) (13,392) (107,679)
Software development.......................................(203,089) (134,943) (92,863)
Prepaidexpenses and other currentassets......................(3,275) 1,970(4,362)
Accounts payable...........................................(5,584) (397) 11,205
Accrued and other liabilities..................................28,380 22,925 73,741
Income taxes...............................................(5,906) 3,578(19,372)
Netcashprovidedbyoperating activities .........................63,997 42,789 60,455
INVESTING ACTIVITIES:
Proceedsfromsales and maturities of short-term investments.....672,645 510,555 394,965
Purchase of short-terminvestments............................(675,735) (557,677) (431,846)
Other long-termassets.......................................(2,933) (3,366) (5,125)
Acquisitions, net of cash acquired .............................(7,797) (12,282) (19,234)
Net proceeds from sale of discontinuedoperations..............7,181 ——
Purchases of property andequipment..........................(21,496) (23,112) (16,651)
Netcash used in investingactivities..............................(28,135) (85,882) (77,891)
FINANCING ACTIVITIES:
Stock repurchase............................................(13,587) —(9,080)
Proceedsfromexercise of stockoptions........................50,56337,78742,844
Excesstax benefitrelated to stock-basedawards.................3,963 ——
Netcash provided by financing activities..........................40,93937,78733,764
Effect of exchangerate changes on cash ..........................6,430 (1,352) 605
Netincrease(decrease)in cashand cashequivalents...............83,231(6,658) 16,933
Cash andcash equivalents—beginning of period...................91,51798,17581,242
Cash and cash equivalents—endof period ........................$174,748 $91,517 $98,175
Supplemental cash flow information:
Cash paid during theperiod forincome taxes...................$28,476 $6,037 $21,825
Cash paid during theperiod forinterest ........................$ 79 $155 $199