THQ 2006 Annual Report Download - page 72

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The following table summarizes the estimated amortization expense for each of the next five fiscal years
and thereafter (in thousands):
Fiscal Years Ending March 31,
2007............................................................... $2,080
2008............................................................... 980
2009............................................................... 592
2010............................................................... 237
2011............................................................... 237
Thereafter ......................................................... 834
$4,960
8. Other Long-Term Assets
In addition to other intangible assets See “Note 7—Other Intangible Assets,” other long-term assets
include our investment in Yuke’s. We own less than a 20% interest in a Japanese developer, Yuke’s, which
is publicly traded on the Nippon New Market in Japan. Accordingly, we account for this investment under
SFASNo. 115 “Accountingfor Certain Investments in Debt and Equity Securities” as available-for-sale.
Unrealized holding gains and losses are excluded from earnings andare included as a component of other
comprehensive income until realized. In fiscal 2006 and 2005, the unrealized holding gains were
approximately $1.0 million and $3.6 million, respectively. Due to the long-term nature of this relationship,
this investment is included in other long-term assets in the consolidated balance sheet. Under separate
development agreements, Yuke’s creates certain World Wrestling Entertainment wrestling games for us.
Other long-term assets as of March 31, 2006 and 2005 are as follows (in thousands):
March 31,
2006
March 31,
2005
Investment inYuke’s.................................... $9,217 $8,244
Other intangible assets (see Note 7) ....................... 4,9607,282
Other................................................. 8,871 5,866
Total other long-term assets............................ $23,048 $21,392
9. Capital Stock Transactions
On August 9, 2005, we announced that our Board of Directors (“Board”) declared a three-for-two stock
split of our shares of common stock to be effected in the form of a 50% stock dividend (the “Dividend”).
The Dividend was distributed on September 1, 2005 to stockholders of record as of the close of business on
August 19, 2005. Cash was paid in lieu of issuance of fractional shares. The par value of our common stock
was maintained at the pre-split amount of $0.01. All references in the accompanying consolidated financial
statements and in this annual report on Form 10-K to number of shares, sales price and per share amounts
of our common stock have been retroactively restated to reflect the increased number of shares of
common stock outstanding as of the earliest period presented. In addition, stockholders’ equity has been
restated to give retroactive recognition to the Dividend by reclassifying from paid-in capital to common
stock the par value of the additional shares of common stock issued pursuant to the Dividend. The
Dividend did not dilute rights to stockholders under the Amended and Restated Rights Agreement
between THQ and Computershare Investor Services, LLC, as Rights Agent, dated as of August 22, 2001,
as amended by the First Amendment to the Amended and Restated Rights Agreement, dated as of
April 9, 2002.
On September 10, 2002, November 21, 2002, and February 5, 2004, we announced that our Board
authorized the repurchase of up to $25.0 million of our common stock from time to time on the open