THQ 2007 Annual Report Download - page 76

Download and view the complete annual report

Please find page 76 of the 2007 THQ annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 108

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108

68
10.Accumulated Other Comprehensive Income
Thecomponents of accumulatedother comprehensive incomewere as follows (in thousands):
Foreign
Currency
Translation
Gains (Losses)
Net Unrealized
Gains(Losses)
on Securities
Net Accumulated
Other Comprehensive
Income (Loss)
Balance at March 31, 2004........................ $6,927 $1,375 $8,302
Other comprehensive income ..................... 2,8021,747 4,549
Balanceat March31, 2005........................ 9,7293,122 12,851
Other comprehensive income (loss) ................ (3,085) 601 (2,484)
Balanceat March31, 2006........................ 6,6443,723 10,367
Other comprehensive income (loss) ................ 9,463 (2,227) 7,236
Balanceat March31, 2007........................ $16,107$1,496 $17,603
11.EarningsPerShare
Basic earnings per share is computed as net income divided by the weighted average number of shares
outstandingfor the period. Diluted earnings per share reflects the potential dilution that could occur from
common shares issuable through stock-based compensation plans including stockoptions, stock-based
awards andpurchase opportunities under our ESPP. Effective April 1, 2006,we adopted FAS 123R using
the modified prospective transition method (see “Note 14—Stock-basedCompensation” for further
disclosure of our stock-based compensation plans and our adoption of FAS 123R).In applying the treasury
stock method in determining ourdilutive potential common shares, assumed proceeds from dilutive
weighted average outstandingoptions as of March31,2007 include thewindfall tax benefits, net of
shortfalls, calculated under the“as-if” method as prescribed by FAS 123R. The following table is a
reconciliationof theweighted-average sharesused in the computationof basic anddiluted earningsper
sharefor the periods presented (in thousands):
Fiscal Year Ended March 31,
20072006 2005
Netincome used to compute basic and diluted earnings per share. ...... $68,038$32,106 $61,397
Weighted average number of shares outstanding—basic ............... 65,039 62,615 58,545
Dilutive potential common shares................................... 2,554 2,905 1,822
Number of shares used to computeearnings pershare—diluted ........ 67,593 65,520 60,367
The following amounts of potential common shareswere excluded from the computationof diluted
earnings pershare abovebecause includingthem would be antidilutive for the periods presented (in
thousands):
FiscalYear Ended March 31,
20072006 2005
Potential common shares .............................. 2,086738 3,123