THQ 2007 Annual Report Download - page 73

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65
Property and Equipment. Property and equipment at March 31, 2007 and 2006 consists of the following(in
thousands):
Useful
Lives
March 31,
2007
March 31,
2006
Building....................................... 30 yrs$719 $719
Land.......................................... —401 401
Computer equipmentand software ............... 3-10 yrs50,777 44,776
Furniture, fixtures andequipment ................ 5yrs 8,2627,324
Leaseholdimprovements........................ 3-6 yrs12,694 7,847
Automobiles................................... 2-5 yrs92128
72,945 61,195
Less:accumulated depreciation.................. (27,850) (23,710
)
$45,095 $37,485
Depreciation expense associated with property and equipment amounted to $13.7 million, $11.7 million
and $8.6 million forthe fiscal yearsended March 31, 2007, 2006 and 2005, respectively.
Accrued and Other Current Liabilities. Accrued and other current liabilities at March 31, 2007 and2006
consist of thefollowing (in thousands):
March 31,
2007
March 31,
2006
Accruedliabilities .......................................$40,512 $34,194
Accruedcompensation...................................36,591 23,367
Accruedpaymenttoventurepartner.......................15,2731,419
Accruedroyalties........................................51,042 51,944
Accrued and other current liabilities .....................$143,418 $110,924
Other Long-Term Liabilities. Other long-termliabilities at March31, 2007 and2006 consist of the
following (in thousands):
March 31,
2007
March 31,
2006
Accruedroyalties....................................... $43,966$58,025
Accruedliabilities...................................... 3,3282,298
Otherlong-termliabilities ............................. $47,294$60,323
5. Business Combinations
In fiscal 2007, we acquiredall of the assets and/or outstanding equity interests in the following two entities
for atotal cost of $5.2 million, of which $4.9 million was paid in cash andtheremaining$0.3million is to be
paid in fiscal 2009:
•Paradigm Entertainment, Inc., located outside of Dallas, Texas, adeveloper of interactive
entertainment software forvideo game hardwaredevices;
•Mass Media, Inc., locatedinMoorpark, California, adeveloper of interactive entertainment
software for videogame hardwaredevices.
Goodwill recognized in theabove transactions amountedto $3.8 million, none of which is expected to be
deductible for income taxpurposes. The preliminarypurchase price allocation, including the allocation of