THQ 2008 Annual Report Download - page 100

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Terminated Proccedings
SEC Informal Inquiry. On August 4, 2006, we received an informal inquiry from the Securities and
Exchange Commission (‘‘SEC’’) requesting certain documents and information relating to our stock option
grant practices from January 1, 1996 to the present. We fully cooperated with the SEC’s inquiry and on
February 27, 2008 received a notice from the SEC that its investigation of our stock option grant practices
has been completed and that the SEC does not intend to recommend any action against THQ.
Hawaii Laborers Pension Fund v. THQ, et. Al. In October 2006, a purported shareholder derivative action
captioned Hawaii Laborers Pension Fund v. THQ, et. Al., was filed against certain of our current and former
officers and directors in federal district court, alleging claims under Section 14(a) of the Securities
Exchange Act of 1934 as well as various state law claims arising out of alleged breaches of fiduciary duty
related to stock option practices. On or about April 20, 2007, the plaintiff filed an Amended and Verified
Shareholder Derivative Complaint (the ‘‘Amended Complaint’’) alleging that certain current and former
officers and directors engaged in a conspiracy to manipulate grants dates associated with stock options and
then concealed the alleged backdating option scheme and filed false and misleading statements with the
SEC. We were also named as a nominal defendant. On August 20, 2007, following oral argument, the
district court granted the defendants’ motion to dismiss this action, with leave to amend. The judge
subsequently issued an order on August 23, 2007. The plaintiffs filed an amended complaint on
October 12, 2007. On November 28, 2007, the parties filed a stipulation by which the plaintiffs dismissed
the action without prejudice. The Court entered the stipulation on December 13, 2007, and the action was
dismissed without prejudice.
18. Segment and Geographic Information
We operate in one reportable segment in which we are a developer, publisher and distributor of interactive
entertainment software for home video game consoles, handheld platforms and personal computers. The
following information sets forth geographic information on our net sales and total assets for the fiscal years
ended March 31, 2008, 2007 and 2006 (in thousands):
North Asia
America Europe Pacific Consolidated
Year ended March 31, 2008
Net sales to unaffiliated customers ................. $503,134 $454,880 $72,453 $1,030,467
Total assets .................................. 895,145 156,351 32,824 1,084,320
Year ended March 31, 2007
Net sales to unaffiliated customers ................. $600,159 $365,406 $61,291 $1,026,856
Total assets .................................. 900,579 89,950 23,012 1,013,541
Year ended March 31, 2006
Net sales to unaffiliated customers ................. $489,945 $269,928 $46,687 $ 806,560
Total assets .................................. 774,126 62,664 11,678 848,468
Our largest single customer accounted for 14% of our gross sales in fiscal 2008, 18% of our gross sales in
fiscal 2007 and 19% of our gross sales in fiscal 2006. Our second largest customer accounted for 12% of
our gross sales in fiscal 2008, 11% of our gross sales in fiscal 2007 and 10% of our gross sales in fiscal 2006.
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