THQ 2008 Annual Report Download - page 80

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Property and Equipment, net. Property and equipment, net at March 31, 2008 and 2007 consists of the
following (in thousands):
Useful March 31, March 31,
Lives 2008 2007
Building ................................. 30 yrs $ 730 $ 719
Land................................... — 401 401
Computer equipment and software ............. 3-10 yrs 63,646 50,777
Furniture, fixtures and equipment .............. 5 yrs 9,476 8,262
Leasehold improvements ..................... 3-6 yrs 15,715 12,694
Automobiles .............................. 2-5 yrs 105 92
90,073 72,945
Less: accumulated depreciation ................ (39,608) (27,850)
Property and equipment, net ................ $50,465 $ 45,095
Depreciation expense associated with property and equipment amounted to $17.4 million, $13.7 million
and $11.7 million for the fiscal years ended March 31, 2008, 2007 and 2006, respectively.
Accrued and Other Current Liabilities. Accrued and other current liabilities at March 31, 2008 and 2007
consist of the following (in thousands):
March 31, March 31,
2008 2007
Accrued liabilities ................................. $ 39,876 $ 31,125
Accrued compensation ............................. 39,939 36,591
Accrued venture partner expense ...................... 37,809 15,273
Deferred revenue, net—packaged software product ......... 30,864 —
Accrued third-party software developer milestones ......... 10,594 9,387
Accrued royalties ................................. 43,020 51,042
Accrued and other current liabilities .................. $202,102 $143,418
Deferred revenues, net—packaged software product, consists of net sales from packaged software products
bundled with online services considered to be more-than-inconsequential to the software product. Such
amounts are recognized ratably over the estimated service period of six months beginning the month after
initial sale. At March 31, 2008 the deferred costs related to this deferred revenue were $20.7 million and
are included within software development and prepaid expenses and other current assets in our
consolidated balance sheet. See ‘‘Note 1—Description of Business and Summary of Significant Accounting
Policies’’ for further information regarding our revenue recognition policies.
Other Long-Term Liabilities. Other long-term liabilities at March 31, 2008 and 2007 consist of the
following (in thousands):
March 31, March 31,
2008 2007
Accrued royalties .................................. $35,004 $43,966
Unrecognized tax benefits and related interest ............. 5,461 —
Accrued liabilities ................................. 3,714 3,328
Other long-term liabilities .......................... $44,179 $47,294
5. Business Combinations
In fiscal 2008, we acquired certain of the assets and/or all of the outstanding equity interests in the
following three entities for a total cost of $35.3 million, of which $31.1 million was paid in cash, $0.3 million
72