THQ 2006 Annual Report Download - page 70

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62
Property and Equipment. Property and equipment at March 31, 2006 and 2005 consists of the following (in
thousands):
Useful
Lives
March 31,
2006
March 31,
2005
Building ...................................... 30 yrs $719 $ 719
Land ......................................... — 401 401
Computer equipment and software. .............. 3-10 yrs 44,776 45,254
Furniture, fixtures and equipment................ 5 yrs7,324 5,842
Leasehold improvements ....................... 3-6 yrs7,847 4,221
Automobiles .................................. 2-5yrs 128 162
61,195 56,599
Less: accumulated depreciation.................. (23,710) (29,777)
$ 37,485 $ 26,822
Depreciation expense associated with property and equipment amounted to $11.7 million, $8.6 million and
$6.7 million for the fiscal years ended March 31, 2006, 2005 and 2004, respectively.
Accrued and Other Current Liabilities. Accrued and other current liabilities at March 31, 2006 and 2005
consist of the following (in thousands):
March 31,
2006
March 31,
2005
Accruedliabilities....................................... $34,194 $27,173
Accruedcompensation.................................. 21,864 16,572
Accrued payment to venture partner ...................... 1,419 639
Accruedroyalties ....................................... 51,944 33,148
Accrued andother current liabilities .................... $109,421 $77,532
Other Long-Term Liabilities. Other long-term liabilities at March 31, 2006 and 2005 consist of the
following (in thousands):
March 31,
2006
March 31,
2005
Accrued royalties ....................................... $58,025 $ 70,000
Accrued liabilities. ...................................... 2,2982,059
Other long-term liabilities. ............................. $60,323 $ 72,059
5. Business Combinations
In fiscal 2006, we acquired all of the voting and non-voting equity interests in the following two entities for
a total cost of $7.5 million, which was paid in cash:
•Juice Games Ltd., located in Centre Park, Warrington, United Kingdom, a developer of interactive
entertainment software for video game hardware devices and personal computers;
•Vigil Games, LLC, located in Austin, Texas, a developer of interactive entertainment software for
video game hardware devices.
Goodwill recognized in the above transactions amounted to $4.8 million, none of which is expected to be
deductible for income tax purposes. The preliminary purchase price allocation, including the allocation of
goodwill, will be updated as additional information becomes available. We did not present pro forma
information as these acquisitions were immaterial to our financial position and results of operations.