THQ 2010 Annual Report Download - page 100

92
(h) On April 1, 2009, the Company adopted a fixed, long-term projected tax rate of 15% for the purposes of evaluating its operating performance, and to
forecast, plan and analyze future periods.
(i) Non-GAAP earnings (loss) per share – diluted has not been calculated using the “if-converted” method relative to the Convertible Senior Notes (Notes)
issued in August 2009 as their inclusion would have been anti-dilutive or because the Notes were not outstanding.
The following table provides further detail on the income statement classification of certain non-GAAP adjustments that impact cost and expenses:
Three Months Ended
March 31,
Twelve Months Ended
March 31,
2010 2009 2010 2009
Cha nge in d efe rre d cost of sales:
Change in deferred product costs $ 183 $ 5,514 $ 2,690 $ 3,477
Change in deferred software amortization and royalties 120 5,266 2,772 10,272
Total change in deferred cost of sales $ 303 $ 10,780 $ 5,462 $ 13,749
Busin ess re alig n ment expenses:
Cost of sales – software amortization and royalties $ 7,853 $ 33,554 $ 7,853 $ 63,314
Cost of sales – license amortization and royalties —
980 — 980
Product development 1,049 1,521 727 9,368
Selling and marketing —
394 497 2,014
General and administrative —
774 64 1,366
Restructuring 2,813 7,514 5,671 12,266
Total business realignment expenses $ 11,715 $ 44,737 $ 14,812 $ 89,308
Stock-b ase d compe nsatio n a nd r e late d costs:
Cost of sales – software amortization and royalties $ 682 $ 1,440 $ 3,408 $ 5,797
Product development (a) 586 1,551 1,763 3,242
Selling and marketing (a) 332 406 843 2,432
General and administrative (a) 935 1,672 4,182 7,128
Total stock-based compensation and related costs $ 2,535 $ 5,069 $ 10,196 $ 18,599
Notes:
(a) Stock-based compensation and related costs in the twelve months ended March 31, 2010 is net of the impact of the reversal of a portion of payroll tax
accruals established in fiscal 2007 during our historical stock option grant practices inquiry.