THQ 2010 Annual Report Download - page 54

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See notes to consolidated financial statements.
TH Q INC. AND SU B S IDI A RI E S
CONS OLI DATE D STATE ME NT S O F CA S H FLOWS
(In thousands)
Fiscal Year Ended March 31,
2010
2009
2008
OPERAT IN G ACT IVIT I ES:
Net loss prior to allocation of noncontrolling interest ........................................................................................ $(11,952) $(431,414) $(35,337)
Adjustments to reconcile net loss prior to allocation of noncontrolling interest to net cash provided by
operating activities:
Depreciation and amortization .................................................................................................................... 13,592 19,327 18,722
Amortization of licenses and software development(1)................................................................................. 241,240 327,885 257,051
Goodwill impairment charges..................................................................................................................... — 118,799 —
Gain on sale of discontinued operations ...................................................................................................... — (2,042) (1,513)
Loss on disposal of property and equipment ................................................................................................ 780 2,835 270
Restructuring charges ................................................................................................................................ 5,671 12,266 —
Amortization of debt issuance costs ............................................................................................................ 529 — —
Amortization of interest............................................................................................................................... 818 846 825
(Gain) loss on investments......................................................................................................................... (797) 6,779 (13)
Stock-based compensation(2)...................................................................................................................... 11,883 18,665 22,860
Tax benefit related to stock-based awards .................................................................................................. — — 3,921
Excess tax benefit related to stock-based awards ....................................................................................... — — (2,157)
Deferred income taxes ............................................................................................................................... 2,532 33,388 (42,537)
Changes in operating assets and liabilities:
Accounts receivable, net of allowances....................................................................................................... 23,460 38,529 (38,232)
Inventory..................................................................................................................................................... 12,245 10,577 (9,622)
Licenses ..................................................................................................................................................... (41,809) (59,979) (38,423)
Software development ................................................................................................................................ (180,838) (254,220) (225,433)
Prepaid expenses and other current assets................................................................................................. 14,699 (5,218) (7,031)
Accounts payable........................................................................................................................................ (789) (16,266) 30,635
Accrued and other liabilities ........................................................................................................................ (52,379) (14,793) 40,826
Income taxes .............................................................................................................................................. (5,500) (138) 15,474
Net cash provided by (used in) operating activities .......................................................................................... 33,385 (194,174) (9,714)
INVESTING ACTIV I T IES :
Proceeds from sales and maturities of available-for-sale investments........................................................ 25,776 118,295 617,754
Proceeds from sales and maturities of trading investments ........................................................................ 8,000 — —
Purchase of available-for-sale investments ................................................................................................ (96,559) (47,365) (458,561)
Other long-term assets............................................................................................................................... 147 66 (986)
Acquisitions, net of cash acquired ............................................................................................................... (840) (4,847) (32,636)
Net proceeds from sale of discontinued operations ..................................................................................... — 2,042 1,513
Purchases of property and equipment ......................................................................................................... (6,308) (8,658) (21,264)
Net cash provided by (used in) investing activities .......................................................................................... (69,784) 59,533 105,820
FINANCING ACTIV I T IES :
Stock repurchase........................................................................................................................................ — — (54,910)
Proceeds from issuance of common stock to employees............................................................................ 1,174 9,594 26,240
Payment of debt issuance costs .................................................................................................................. (3,646) — —
Proceeds from issuance of convertible senior notes ................................................................................... 100,000 — —
Borrowings on secured credit lines............................................................................................................. 2,500 29,300 —
Payment of secured credit lines.................................................................................................................. (13,610) (4,940) —
Excess tax benefit related to stock-based awards ....................................................................................... — — 2,157
Net cash provided by (used in) financing activities .......................................................................................... 86,418 33,954 (26,513)
Effect of exchange rate changes on cash.......................................................................................................... 6,501 (15,275) 3,479
Net increase (decrease) in cash and cash equivalents .................................................................................... 56,520 (115,962) 73,072
Cash and cash equivalents—beginning of period ............................................................................................. 131,858 247,820 174,748
Cash and cash equivalents—end of period....................................................................................................... $188,378 $131,858 $247,820
Supplemental cash flow information:
Cash paid during the period for income taxes.............................................................................................. $12,580 $16,184 $14,076
Cash paid during the period for interest....................................................................................................... $2,876 $348 $190
(1) Excludes amortization of capitalized stock-based compensation expense.
(2) Includes the net effects of capitalization and amortization of stock- based compensation expense.