THQ 2009 Annual Report Download - page 64

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THQ INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Fiscal Year Ended March 31,
2009 2008 2007
OPERATING ACTIVITIES:
Net income (loss) .............................................. $(431,112) $ (35,337) $ 68,038
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Minority interest ............................................. (302) — 54
Depreciation and amortization .................................... 19,327 18,722 15,651
Amortization of licenses and software development(1) ..................... 327,885 257,051 179,684
Goodwill impairment charges ..................................... 118,799 — —
Gain on sale of discontinued operations .............................. (2,042) (1,513) (3,080)
Loss on disposal of property and equipment ........................... 2,835 270 1,395
Restructuring charges .......................................... 12,266 — —
Amortization of interest ........................................ 846 825 —
Other-than-temporary impairment on investments ........................ 6,279 (13) —
Loss on investments ........................................... 500 — —
Stock-based compensation(2) ..................................... 18,665 22,860 16,253
Tax benefit related to stock-based awards ............................. — 3,921 8,866
Excess tax benefit related to stock-based awards ......................... — (2,157) (3,963)
Deferred income taxes ......................................... 33,388 (42,537) (948)
Changes in operating assets and liabilities:
Accounts receivable, net of allowances ............................... 38,529 (38,232) 7,053
Inventory .................................................. 10,577 (9,622) 2,277
Licenses .................................................. (59,979) (38,423) (37,809)
Software development ......................................... (254,220) (225,433) (203,089)
Prepaid expenses and other current assets ............................. (5,218) (7,031) (3,275)
Accounts payable ............................................ (16,266) 30,635 (5,584)
Accrued and other liabilities ..................................... (14,793) 40,826 28,380
Income taxes ............................................... (138) 15,474 (5,906)
Net cash (used in) provided by operating activities ......................... (194,174) (9,714) 63,997
INVESTING ACTIVITIES:
Proceeds from sales and maturities of available-for-sale investments ............ 118,295 617,754 672,645
Purchase of available-for-sale investments ............................. (47,365) (458,561) (675,735)
Other long-term assets ......................................... 66 (986) (2,933)
Acquisitions, net of cash acquired .................................. (4,847) (32,636) (7,797)
Net proceeds from sale of discontinued operations ....................... 2,042 1,513 7,181
Purchases of property and equipment ............................... (8,658) (21,264) (21,496)
Net cash provided by (used in) investing activities ......................... 59,533 105,820 (28,135)
FINANCING ACTIVITIES:
Stock repurchase ............................................. — (54,910) (13,587)
Proceeds from issuance of common stock to employees .................... 9,594 26,240 50,563
Proceeds from secured line of credit borrowings ......................... 29,300 — —
Repayment of secured line of credit ................................ (4,940) — —
Excess tax benefit related to stock-based awards ......................... — 2,157 3,963
Net cash (used in) provided by financing activities ......................... 33,954 (26,513) 40,939
Effect of exchange rate changes on cash ............................... (15,275) 3,479 6,430
Net increase (decrease) in cash and cash equivalents ....................... (115,962) 73,072 83,231
Cash and cash equivalents—beginning of period .......................... 247,820 174,748 91,517
Cash and cash equivalents—end of period .............................. $131,858 $ 247,820 $ 174,748
Supplemental cash flow information:
Cash paid during the period for income taxes .......................... $ 16,184 $ 14,076 $ 28,476
Cash paid during the period for interest .............................. $ 348 $ 190 $ 79
(1) Excludes amortization of capitalized stock-based compensation expense.
(2) Includes the net effects of capitalization and amortization of stock-based compensation expense.
See notes to consolidated financial statements.
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