THQ 2009 Annual Report Download - page 82

Depreciation expense associated with property and equipment amounted to $17.5 million, $17.4 million
and $13.7 million for the fiscal years ended March 31, 2009, 2008 and 2007, respectively.
Accrued and Other Current Liabilities. Accrued and other current liabilities at March 31, 2009 and 2008
consist of the following (in thousands):
March 31, March 31,
2009 2008
Accrued liabilities ................................. $ 31,108 $ 39,876
Accrued compensation ............................. 27,058 39,939
Accrued venture partner expense ...................... 56,692 37,809
Deferred revenue, net—packaged software product ......... 11,606 30,864
Accrued third-party software developer milestones ......... 21,526 10,594
Accrued royalties ................................. 42,150 43,020
Accrued and other current liabilities .................. $190,140 $202,102
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, 2009 and 2008 the deferred costs related to this deferred revenue were
$6.3 million and $20.7 million, respectively, 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, 2009 and 2008 consist of the
following (in thousands):
March 31, March 31,
2009 2008
Accrued royalties .................................. $19,986 $35,004
Unrecognized tax benefits and related interest ............. 5,158 5,461
Accrued liabilities ................................. 8,359 3,714
Other long-term liabilities .......................... $33,503 $44,179
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 at the time
of acquisition, $0.3 million in shares issued, with the remaining balance of $3.9 million (which was included
in accrued and other current liabilities at March 31, 2008) paid during fiscal 2009:
• Big Huge Games, Inc., located in Timonium, Maryland, a development studio focused on the
Role-Playing-Game genre;
• Universomo Ltd., located in Tampere, Finland, a developer of interactive entertainment software
for all major mobile platforms;
• Elephant Entertainment, LLC, located in Minneapolis, Minnesota, a publisher and distributor of
casual PC games.
During fiscal 2009, the former shareholders of Universomo reached their additional post-acquisition
performance targets and earned additional consideration of $1.7 million (denominated as 1.2 million
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