THQ 2010 Annual Report Download - page 55

Download and view the complete annual report

Please find page 55 of the 2010 THQ annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 102

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102

47
See notes to consolidated financial statements.
TH Q INC. AND SU B S IDI A RI E S
NOTE S TO C ON S OLIDA TED FI N ANC I AL STAT EM E NTS
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 the Microsoft Xbox 360 (“Xbox 360”), Nintendo Wii (“Wii”),
Sony PlayStation 3 (“PS3”) and Sony PlayStation 2 (“PS2”);
• handheld platforms such as the Nintendo DS and DSi (collectively referred to as “DS”), and Sony
PlayStation Portable (“PSP”);
• wireless devices, including the iPhone, iTouch and iPad; and
• personal computers (“PCs”), including games played online.
We also develop and publish titles for digital distribution via Sony’s PlayStation Network (“PSN”) and
Microsoft’s Xbox LIVE Marketplace (“Xbox LIVE”) and Xbox LIVE Arcade (“XBLA”), as well as digitally offer
our PC titles through online download stores and services such as Steam. We believe that digital delivery of
games and game content is becoming an increasingly important part of our business.
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 core
gamers to products targeted to children and the mass market. Our portfolio of Core Games includes games
based on popular fighting brands such as the Ultimate Fighting Championship (“UFC”) and World Wrestling
Entertainment (“WWE”); racing games based on our MX vs. ATV brand; and action, shooter and strategy
games based on our owned intellectual properties such as Company of Heroes, Darksiders, Red Faction,
and Saints Row, as well as games based on Games Workshop’s Warhammer 40,000 universe. Our Kids,
Family and Casual portfolio includes games based on popular brands such as DreamWorks Animation,
Disney•Pixar, Marvel Entertainment, NBC’s
The Biggest Loser
, Nickelodeon, and Sony Picture Consumer
Product’s
JEOPARDY!
and
Wheel of Fortune
, as well as games based on our owned intellectual properties,
including de Blob and Drawn to Life.
Principles of Consolidation.
The consolidated financial statements include the accounts of THQ Inc. and our
wholly-owned and majority owned subsidiaries. The consolidated financial statements also include the THQ /
JAKKS Pacific LLC (“LLC”) joint venture, which was comprised of THQ and JAKKS Pacific, Inc. (“Jakks”),
through December 31, 2009, the date the LLC was dissolved (see “Note 17—Settlement Agreements”). The
results of operations for acquired companies have been included in the consolidated statements of
operations beginning on the closing date of acquisition. All material intercompany balances and transactions
have been eliminated in consolidation.
We have consolidated the results of THQ*ICE LLC (a joint venture with ICE Entertainment, Inc., a Delaware
Corporation) in the consolidated financial statements as we believe we are the primary beneficiary and would
receive the majority of expected returns or absorb the majority of expected losses of the entity. We sold our
interest in THQ*ICE LLC on April 30, 2010 and thus after this date, we will not have income or loss
attributable to noncontrolling interest.