THQ 2005 Annual Report Download - page 47

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24
Selected Consolidated Statements of Operations Data
The followingtable sets forth certain consolidated statements of operations data for the periods indicated
as a percentage of total net sales (in thousands):
Fiscal Year Ended March 31, Year Ended December 31,
2005 (a) 2004 (b) 2003 (c) (d) 2002 (d)
(Unaudited)
Net sales ............... $ 756,731 100.0% $ 640,846 100.0% $ 467,647 100.0% $ 4 80,529 100.0%
Costs and expenses:
Cost of sales .......... 250,055 33.0 229,218 35.8 178,291 38.1 185,593 38.6
License amortization
and royalties........ 85,926 11.4 71,132 11.1 38,988 8.3 40,476 8.4
Software development
amortization........ 93,622 12.4 105,632 16.5 84,916 18.2 83,698 17.4
Product development .. 72,959 9.6 36,850 5.8 36,531 7.8 34,696 7.2
Selling and marketing.. 115,646 15.3 92,475 14.4 70,978 15.2 66,443 13.8
Payment to venture
partner............ 9,774 1.3 9,675 1.5 9,218 2.0 10,146 2.1
General and
administrative ...... 54,831 7.2 47,006 7.3 36,794 7.9 34,993 7.4
Total costs and expenses .682,813 90.2 591,988 92.4 455,716 97.5 456,045 94.9
Income from
operations.......... 73,918 9.8 48,858 7.6 11,931 2.6 24,484 5.1
Interest income ......... 4,337 0.5 2,378 0.4 4,833 1.0 5,277 1.1
Other income (expense).. — 0.0 4,000 0.6 (12,409)(2.6) (10,006 ) (2.1)
Income before income
taxes and minority
interest............ 78,255 10.3 55,236 8.6 4,355 0.9 19,755 4.1
Income taxes ........... 15,204 2.0 19,397 3.0 1,812 0.4 6,761 1.4
Income beforeminority
interest.............. 63,051 8.3 35,839 5.6 2,543 0.5 12,994 2.7
Minority interest........ (261 ) 0.0 — 0.0 — 0.0 — 0.0
Net income ............. $62,790 8.3% $35,839 5.6%$ 2,543 0.5% 12,994 2.7%
(a) Net income includes a $7.8million benefit for research and development income tax credits claimed
for prior years.
(b) Net income includes a $4.0million benefit for a settlement of a dispute with directors’ and officers’
insurance carrier, net of tax.
(c) Net income includes a charge of $1.8 million due to the other than temporary impairment of our
investment in Yuke’s Co., Ltd. See “Note 8—Other Long-Term Assets”. We also changed our fiscal
year end from December 31 to March 31, effective January 1, 2003.
(d)Net income includes a charge of $7.9 million, net of tax for the cancellation of 20 SKUs as well as a
charge of $4.6 million, net of tax related to the settlement of a class action lawsuit and a charge of
$1.1 million, net of tax related to the write-off of inventory and software development for “WWF”-
branded games that we had been prevented from shipping pursuant to an action by the World Wide
Fund for Nature against World Wrestling Entertainment, and a charge of $2.8 million, net of tax
related to the discontinuation of our online joint venture in the United Kingdom (Network Interactive
Sports, Ltd.).