THQ 2008 Annual Report Download - page 82

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7. Other Intangible Assets
Intangible assets include licenses, software development and other intangible assets. Intangible assets are
included in other long-term assets, net, except licenses and software development, which are reported
separately in the consolidated balance sheets. Other intangible assets are as follows (in thousands):
March 31, 2008 March 31, 2007
Gross Gross
Useful Carrying Accumulated Net Carrying Accumulated Net
Lives Amount Amortization Amount Amount Amortization Amount
Software technology .... 2-4 years $3,504 $ (562) $2,942 $ 953 $ (715) $ 238
Trade secrets ......... 5 years — — — 1,800 (1,800) —
Trade names ......... 3-10 years 2,844 (673) 2,171 2,100 (922) 1,178
Non-compete /
Employment contracts . 1.5-6.5 years 2,383 (1,127) 1,256 1,048 (828) 220
Total ............... $8,731 $(2,362) $6,369 $5,901 $(4,265) $1,636
Amortization of other intangible assets for the fiscal years ended March 31, 2008, 2007 and 2006 was
$1.3 million, $1.9 million and $2.6 million, respectively. Finite-lived other intangible assets are amortized
using the straight-line method over the lesser of their estimated useful lives or the agreement terms,
typically from one and one-half to ten years and are assessed for impairment under SFAS No. 144,
‘‘Accounting for the Impairment or Disposal of Long-Lived Assets.’’
The following table summarizes the estimated amortization expense for each of the next five fiscal years
and thereafter (in thousands):
Fiscal Years Ending March 31,
2009 ..................................................... $1,493
2010 ..................................................... 1,524
2011 ..................................................... 1,274
2012 ..................................................... 921
2013 ..................................................... 430
Thereafter ................................................ 727
$6,369
8. Other Long-Term Assets
In addition to other intangible assets, other long-term assets include our investment in Yuke’s, a Japanese
video game developer. We own less than a 20% interest in Yuke’s, which is publicly traded on the Nippon
New Market in Japan. Accordingly, we account for this investment under SFAS No. 115 ‘‘Accounting for
Certain Investments in Debt and Equity Securities’’ as available-for-sale. Unrealized holding gains and
losses are excluded from earnings and are included as a component of other comprehensive income until
realized. In fiscal 2008 the pre-tax unrealized holding gain related to our investment in Yuke’s was
approximately $1.4 million, and in fiscal 2007 the pre-tax unrealized holding loss was approximately
$3.5 million. Due to the long-term nature of this relationship, this investment is included in other
long-term assets in the consolidated balance sheets.
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