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79
Twelve Months Ended March 31, 2009
Quarter Ended
(In thousand s, e x cept per share data)
June 30,
2008
Sept. 30,
2008
Dec. 31,
2008
March 31,
2009
Fiscal
2009
Net sales .................................................................. $137,578 $164,816(f $357,310 $170,259)(g) $829,963
Gross profit .............................................................. 36,191 28,360(f 42,722 (15,653)(g) 91,620
Goodwill impairment(d)............................................. — —(m- 118,131 668)(g) 118,799
Restructuring ........................................................... — —(m- 4,752 7,514)(g) 12,266
Operating income (loss)......................................... (46,012) (54,966),- (199,586) (87,149)(g) (387,713)
Income (loss) from continuing operations ........... (29,266) (115,296)(f (191,860) (97,034)(g) (433,456)
Gain on sale of discontinued operations, net
of tax .................................................................... 2,042 —(m- — —)(g) 2,042
Net income (loss) attributable to THQ Inc.(a) ....... (27,224) (115,260)(f) (191,754) (96,874)(g) (431,112)
Earnings (loss) per share—basic:
Continuing operations(e) ..................................... $(0.44) $(1.73) (f $(2.86) $(1.44)(g) $(6.48)
Discontinued operations.................................... 0.03 —(m- — —)(g) 0.03
Earnings (loss) per share—basic...................... $(0.41) $(1.73) (f $(2.86) $(1.44)(g) $(6.45)
Earnings (loss) per share—diluted:
Continuing operations(e) ..................................... $(0.44) $(1.73) (f $(2.86) $(1.44)(g) $(6.48)
Discontinued operations.................................... 0.03 —(m- — —)(g) 0.03
Earnings (loss) per share—diluted ................... $(0.41) $(1.73) (f $(2.86) $(1.44)(g) $(6.45)
(a) Includes business realignment charges and adjustments related to severance and cancellation of
games which are not classified as restructuring, as follows (income/(expense)):
Quarter Ended
Full Fiscal
(In thousand s)
June 30
Sept. 30
Dec. 31
March 31
Year
Fiscal 2010..................................................... $(824) $518 $67 $(7,852) $(8,091)
Fiscal 2009..................................................... (3,527) (669) (35,623) (37,223) (77,042)
(b) Includes one-time reduction of $24.2 million, classified as venture partner expense, related to a
reduction in accrued venture partner expense (for additional information, see “Note 6—Balance
Sheet Details”).
(c) Includes $29.5 million in settlement charges, classified as venture partner expense, related to the
Agreements described in “Note 17—Settlement Agreements.” Also includes a benefit to income tax
expense of $3.6 million related to the recognition of a net operating loss benefit claimed pursuant to
a change in tax law.
(d) See “Note 1—Description of the Business and Significant Accounting Policies” for discussion of the
fiscal 2009 goodwill impairment charges.
(e) Based on amounts attributable to THQ Inc. (i.e., subsequent to the allocation of noncontrolling
interest).
(f) Includes other-than-temporary impairment on investment securities of $4.6 million and additional
income tax expense related to the recognition of a $71.6 million valuation allowance on our
September 30, 2009 closing deferred tax assets (see “Note 19—Income Taxes”).
(g) Includes other-than-temporary impairment on investment securities of $1.7 million.
24. Dis continued Operations
In December 2006, we sold our 50% interest in Minick Holding AG (“Minick”). As of June 30, 2008 we
received $20.6 million in cash from the sale of Minick, and we recognized a gain of $2.1 million in the three
months ended June 30, 2008. The gain is presented as “Gain on sale of discontinued operations, net of tax”
in our consolidated statement of operations for fiscal 2009. Pursuant to the Minick sale agreement, no
additional consideration was outstanding as of June 30, 2008.