THQ 2005 Annual Report Download - page 92

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69
7. Intangible Assets
Intangible assets include licenses, software development and other intangible assets. Intangible assets are
included in other long-term assets, net, except licenses and software development, which are reported
separately in the consolidated balance sheets. Intangible assets are as follows:
March 31, 2005March 31, 2004
Intangible Assets
Useful
Lives
Gross
Carrying
Amount
Accumulated
Amortization
Net
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net
Amount
(In thousands)
Amortizable intangible
assets:
Licenses............... Varies$220,982$ (132,995)$ 87,987 $113,118 $ (90,878 ) $ 22,240
Software development..Varies 226,083 (160,832)65,251 198,659 (148,864 ) 49,795
Acquired intellectual
property............ Varies4,368 — 4,368 — — —
Software technology .... 2-3 years 2,123(614) 1,509 — — —
Software games ........ 2 years 865(280) 585 — — —
Trade secrets .......... 5 years 1,800(1,170) 630 1,800 (810 ) 990
Customer list.......... 4-5 years 1,523(254) 1,269 — — —
Trade names........... 3-10 years 3,055(298) 2,757 1,025 — 1,025
Non-compete/
Employment
contracts............ 3-6.5 years 967 (435) 532 706 (244 ) 462
Total................. $461,766 $ (296,878)$ 164,888 $ 315,308 $ (240,796) $ 74,512
The useful lives of licenses, software development and acquired intellectual property are based on net
product sales and therefore not disclosed in years. The estimated amortization expense for licenses,
software development and acquired intellectual property is based on anticipated release dates and total
projected revenue. Amortization expense related to licenses and software development for the fiscal years
ended March 31, 2005 and 2004, Transition 2003 and the year ended December 31, 2002 was $121.8
million, $126.7 million, $13.3 million and $91.7 million, respectively. Amortization expense related to other
intangible assets for the fiscal years ended March 31, 2005 and 2004, Transition 2003 and the year ended
December 31, 2002 was $2.0 million, $1.2 million, $280,000 and $1.0 million, respectively.
Estimated AmortizationExpense
(In thousands):
Fiscal Years Ending March 31,
2006.............................................................. $ 73,657
2007.............................................................. 26,889
2008.............................................................. 18,481
2009.............................................................. 16,453
2010.............................................................. 17,044
Thereafter ........................................................ 12,364
$164,888