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THQ INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Description of Business and Summary of Significant Accounting Policies
We are a leading worldwide developer and publisher of interactive entertainment software for all popular
game systems, including:
• Home video game consoles such as Microsoft Xbox 360, Nintendo Wii, Sony PlayStation 3 and Sony
PlayStation 2;
• Handheld platforms such as Nintendo DS, Sony PSP and wireless devices; and
• Personal computers (including games played online).
Our titles span a wide range of categories, including action, adventure, fighting, racing, role-playing,
simulation, sports and strategy. We have created, licensed and acquired a group of highly recognizable
brands, which we market to a variety of consumer demographics ranging from products targeted at
children and the mass market to products targeted at core gamers. Our portfolio of licensed properties
includes games based on popular fighting brands such as World Wrestling Entertainment and the Ultimate
Fighting Championship; kids and family brands such as DreamWorks Animation, Disney•Pixar, Marvel
Entertainment and Nickelodeon; core gamer brand Warhammer 40,000; as well as others. In addition to
licensed properties, we also develop games based upon our own intellectual properties, including Company
of Heroes, DeBlob, Frontlines, MX vs. ATV, Red Faction and Saints Row.
Principles of Consolidation. The consolidated financial statements include the accounts of THQ Inc. and
our wholly owned and majority owned subsidiaries as well as the venture we have with JAKKS Pacific, Inc.
See ‘‘Note 18—Agreement with JAKKS Pacific, Inc.’’ The results of operations for acquisitions of
companies have been included in the consolidated statements of operations beginning on the closing date
of acquisition. See ‘‘Note 5—Business Combinations.’’ All material intercompany balances and
transactions have been eliminated in consolidation.
In August 2008, we formed a joint venture, THQ*ICE LLC (‘‘THQ*ICE’’), with ICE Entertainment, Inc. a
Delaware corporation (‘‘ICE’’), for the initial purpose of launching online games in North America.
THQ*ICE plans to launch Dragonica, a free-to-play, micro-transaction-based massively multiplayer online
casual game in North America in calendar 2009. THQ and ICE own equal interests in THQ*ICE. In
accordance with Financial Accounting Standards Boards Interpretation (‘‘FIN’’) No. 46R, ‘‘Consolidation
of Variable Interest Entities—an interpretation of ARB No. 51’’, we have determined that we are the
primary beneficiary of THQ*ICE, as we believe we would receive the majority of expected returns or
absorb the majority of expected losses. Accordingly, we have consolidated the results of THQ*ICE in the
accompanying consolidated financial statements.
Fiscal Year. Effective April 1, 2006, we began reporting our fiscal year on a 52/53-week period. Beginning
with the fiscal year ending March 31, 2007, our fiscal year ended on the Saturday nearest March 31. The
results of operations for the fiscal years ended March 31, 2009, 2008 and 2007 contain the following
number of weeks:
Fiscal Period Number of Weeks Fiscal Period End Date
Year ended March 31, 2009 .............. 52 weeks March 28, 2009
Year ended March 31, 2008 .............. 52 weeks March 29, 2008
Year ended March 31, 2007 .............. 52 weeks March 31, 2007
For simplicity, all fiscal periods in our consolidated financial statements and accompanying notes are
presented as ending on a calendar month end.
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