THQ 2004 Annual Report Download - page 61

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Year Ended March 31, Transition Years Ended December 31,
2004 2003 2002 2001
Cash paid during the period for:
Income taxes $ 15,625 $ 2,616 $ 3,257 $ 8,204
Interest $ 144 $ 11 $ 76 $ 74
On March 31, 2004, an adjustment to Goodwill of $1.5 million was recorded. This was based on the determination for future realization of previously
acquired Net Operating Losses related to the acquisition of our German subsidiary.
On July 1, 2002, we paid $9.6 million in cash and issued approximately 167,000 shares of common stock as part of the purchase price of the assets of
ValuSoft, Inc. (now referred to as “ValuSoft”), a publisher and developer of value-priced interactive entertainment and productivity software. The issuance
increased common stock and additional paid-in-capital by $2,000 and $4.6 million respectively, and was allocated among the assets acquired. In addition,
the former shareholders of ValuSoft, Inc. are entitled to additional consideration of up to $11.0 million if ValuSoft reaches certain pre-tax income targets
in the five years following July 1, 2002. The annual payments of the additional consideration, if any, range from $1.0 million to $2.8 million per year and
may be paid, at our discretion, in cash or shares of our common stock and will be added to goodwill. For the twelve months ended June 30, 2003,ValuSoft
reached its pretax target and we have paid $2.3 million in cash and adjusted goodwill accordingly. (See Note 3)
Estimated Fair Value (in thousands):
Tangible assets acquired $ 2,837
Software development acquired 1,491
Licenses acquired 1,109
Liabilities assumed (2,940)
Goodwill 14,342
Purchase price $ 16,839
On December 21, 2001, we issued approximately 1,287,000 shares of common stock and assumed approximately 159,000 stock options as part of the pur-
chase price of Rainbow Multimedia Group, Inc. The issuance increased common stock and additional paid-in-capital by $13,000 and $48.6 million respec-
tively, and was allocated among the assets acquired.
Estimated Fair Value (in thousands):
Tangible assets acquired $ 5,838
Intangible assets acquired 3,531
Liabilities assumed (5,411)
Goodwill 44,972
Purchase price $ 48,930
On June 8, 2001,World Wrestling Federation Entertainment exchanged all of its warrants for 302,490 shares of common stock in a non-cash transaction.
On July 23, 2001, Stanley Shenker Associates, Inc. (a related party to the World Wrestling Federation Entertainment) exchanged all of its warrants for 37,923
shares of common stock in a non-cash transaction.
58:59
THQ : 2004 : ANNUAL REPORT
See notes to consolidated financial statements.