THQ 2004 Annual Report Download - page 71

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5. ALLOWANCE FOR PRICE PROTECTION, RETURNS AND DOUBTFUL ACCOUNTS
The allowance for price protection, returns and doubtful accounts at March 31, 2004, and 2003 and December 31, 2002 consists of the following:
Year Ended Year Ended
March 31, Transition December 31,
(In thousands) 2004 2003 2002
Beginning balance $ (43,406) $ (59,919) $ (40,616)
Provision for price protection, returns and doubtful accounts (120,982) (10,046) (69,641)
Actual deductions for price protection, returns and doubtful accounts 111,962 26,559 50,338
Ending balance $ (52,426) $ (43,406 ) $ (59,919)
6. GOODWILL
The changes in the carrying amount of goodwill for the fiscal year ended March 31, 2004 and Transition 2003 and the year ended December 31, 2002 are
as follows:
Year Ended Year Ended
March 31, Transition December 31,
(In thousands) 2004 2003 2002
Balance at beginning of period $ 58,609 $ 58,609 $ 48,202
Goodwill acquired during the period —— 12,042
Adjustments to goodwill during the period (1,510)* — (1,716)
Additional consideration paid for ValuSoft 2,300 ——
Effect of foreign currency exchange rates ——81
Balance at end of period $ 59,399 $ 58,609 $ 58,609
* We recorded an adjustment to Goodwill related to acquired net operating losses in Germany that were not recorded at the time of acquisition due to
uncertainties about the realization of the net operating losses. Due to recent clarification in the tax law, we now expect to realize the net operating losses.
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THQ : 2004 : ANNUAL REPORT