THQ 2008 Annual Report Download - page 67

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THQ INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Fiscal Year Ended March 31,
2008 2007 2006
OPERATING ACTIVITIES:
Net income (loss) ......................................... $ (35,337) $ 68,038 $ 32,106
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
Minority interest and other ................................. — 54 63
Depreciation and amortization ............................... 18,722 15,651 14,162
Amortization of licenses and software development ................. 257,051 179,684 112,916
Gain on sale of discontinued operations ......................... (1,513) (3,080) —
Loss on disposal of property and equipment ...................... 270 1,395 538
Amortization of interest and gain/(loss) on investments .............. 812 — —
Stock-based compensation .................................. 22,860 16,253 3,422
Tax benefit related to stock-based awards ........................ 3,921 8,866 9,162
Excess tax benefit related to stock-based awards ................... (2,157) (3,963) —
Deferred income taxes .................................... (42,537) (948) 2,082
Changes in operating assets and liabilities:
Accounts receivable, net of allowances .......................... (38,232) 7,053 (5,902)
Inventory ............................................. (9,622) 2,277 (5,501)
Licenses .............................................. (38,423) (37,809) (13,392)
Software development ..................................... (225,433) (203,089) (134,943)
Prepaid expenses and other current assets ....................... (7,031) (3,275) 1,970
Accounts payable ........................................ 30,635 (5,584) (397)
Accrued and other liabilities ................................ 40,826 28,380 22,925
Income taxes ........................................... 15,474 (5,906) 3,578
Net cash (used in) provided by operating activities ................... (9,714) 63,997 42,789
INVESTING ACTIVITIES:
Proceeds from sales and maturities of available-for-sale investments ...... 617,754 672,645 510,555
Purchase of available-for-sale investments ....................... (458,561) (675,735) (557,677)
Other long-term assets .................................... (986) (2,933) (3,366)
Acquisitions, net of cash acquired ............................. (32,636) (7,797) (12,282)
Net proceeds from sale of discontinued operations ................. 1,513 7,181 —
Purchases of property and equipment .......................... (21,264) (21,496) (23,112)
Net cash provided by (used in) investing activities ................... 105,820 (28,135) (85,882)
FINANCING ACTIVITIES:
Stock repurchase ........................................ (54,910) (13,587) —
Proceeds from issuance of common stock to employees .............. 26,240 50,563 37,787
Excess tax benefit related to stock-based awards ................... 2,157 3,963 —
Net cash (used in) provided by financing activities ................... (26,513) 40,939 37,787
Effect of exchange rate changes on cash .......................... 3,479 6,430 (1,352)
Net increase (decrease) in cash and cash equivalents ................. 73,072 83,231 (6,658)
Cash and cash equivalents—beginning of period ..................... 174,748 91,517 98,175
Cash and cash equivalents—end of period ......................... $247,820 $ 174,748 $ 91,517
Supplemental cash flow information:
Cash paid during the period for income taxes ..................... $ 14,076 $ 28,476 $ 6,037
Cash paid during the period for interest ........................ $ 190 $ 79 $ 155
See notes to consolidated financial statements.
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