THQ 2004 Annual Report Download - page 75

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Deferred income taxes were:
March 31, 2004
(In thousands) Federal State Foreign
CURRENT
Deferred income tax assets:
Allowance for price protection, returns and doubtful accounts $ 8,697 $ 1,242 $ 821
Accrued expenses 1,653 237 —
State income taxes 687 — —
Other — net 703 109 (551)
Total deferred income tax assets 11,740 1,588 270
Deferred income tax liabilities:
Software development costs (12,291) (1,756 ) —
Other — net (169) (24 ) —
Deferred income taxes $ (720) $ (192) $ 270
NON-CURRENT
Deferred income tax assets:
Net operating loss $ — $ 124 $ 1,951
Other — net 2,163 322 —
Valuation reserve (854) (79 ) —
Net deferred tax assets 1,309 367 1,951
Deferred income tax liabilities
Software development costs (768) (110) —
Depreciation and amortization (397) ——
Identifiable intangible assets (825) (118 ) —
Other — net (743) (106 ) —
Deferred income taxes $ (1,424) $ 33 $ 1,951
The valuation reserve decreased by $83,000 during the fiscal year ended March 31, 2004.
As of March 31, 2004 we had no federal, $2.5 million state and $4.8 million foreign net operating loss carryforwards. The state net operating loss carry-
forward expires in 2013, and the foreign net operating loss carryforward is indefinite.
Total deferred tax assets and total deferred tax liabilities at March 31, 2004 were $17.2 million and $17.3 million, respectively.
At March 31, 2004 we had accumulated foreign earnings of $10.9 million. We do not plan to repatriate these earnings, therefore, no United States income
tax has been provided on the foreign earnings. Additionally, we have not tax effected the cumulative translation adjustment as we have no intention of
repatriating foreign earnings.
72:73
THQ : 2004 : ANNUAL REPORT