THQ 2010 Annual Report Download - page 99

Download and view the complete annual report

Please find page 99 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

91
THQ Inc . and Subsidiaries
Recon ciliation of GAAP net los s to non-GAAP net income (lo s s) (a)
(In thousands, except per share data)
Three Months Ended
March 31,
Twelve Months Ended
March 31,
2010 2009
2010 2009
Net sales $ 197,668 $ 170,259
$ 899,137 $ 829,963
Changes in deferred net revenue (253 ) (15,939 ) ( 10,485 ) (17,348 )
Non-GAAP net sales
$ 197,415
$ 154,320
$ 888,652
$ 812,615
Three Months Ended
March 31,
Twelve Months Ended
March 31,
2010 2009
2010 2009
Operating loss $ (9,380 ) $ (87,149 ) $ (9,649 ) $ (387,713 )
Non-GAAP adjustments affecting operating los s:
JAKKS preferred return rate reduction (b) — — (24,221 ) —
JAKKS and WWE s ettle ment (c ) — — 29,488 —
Changes in deferred net revenue (253 ) (15,939 ) (10,485 ) (17,348 )
Change in deferred cost of sales (d) 303 10,780 5,462 13,749
Goodwi ll i mpai r ment — 668 — 118,799
Bus ines s realignment expenses (d ) 11,715 44,737 14,812 89,308
Stoc k-based compensation and related costs (d) 2,535 5,069 10,196 18,599
Total non-GAAP adjustments affecting operating loss 14,300 45,315 25,252 223,107
Non-GAAP operating income (los s)
$ 4,920
$ (41,834
)
$ 15,603
$ (164,606
)
Three Months Ended
March 31,
Twelve Months Ended
March 31,
2010 2009 2010 2009
Net loss attributable to THQ Inc. $ (10,398 ) $ (96,874 ) $ (9,017 ) $ (431,112 )
Non-GAAP adjustments:
Non-GAAP adjustments affecting operating loss 14,300 45,315 25,252 223,107
Realignment attr ibutable to noncontroll ing inte res t (e ) (1,050 ) — ( 1,050 ) —
Gain on sale of investments (f) — — (640 ) —
Other-than-temporary impairment on investments —
1,718 —
6,279
Mark-to-market on trading Auction Rate Securities (g) (2 ) (119 ) (157 ) 157
Interest and other income (expense) , net — — (63 ) —
Deferred tax asset valuation allowance and related tax — 29,054 — 146,075
Income tax adjus tments (h) 1,566 ( 15,452 ) ( 1,657 ) (46,293 )
Non-GAAP net income (los s)
$ 4,416
$ (36,358
)
$ 12,668
$ (101,787
)
Non-GAAP earnings (los s) per share – diluted (i)
$ 0.06
$ (0.54
)
$ 0.19
$ (1.52
)
Notes:
(a) See explanation above regarding the Company’s practice on reporting non-GAAP financial measures.
(b) Represents the one-time reduction in accrued joint venture partner expense resulting from the settlement of the preferred return rate with JAKKS Pacific.
(c) Represents the expense related to the settlement of litigation with WWE and JAKKS Pacific in December 2009.
(d) See table below for further detail related to income statement classification of these adjustments.
(e) Represents realignment attributable to noncontrolling interest.
(f) Realized gains on sales of investments to the extent we had previously excluded a related other-than-temporary impairment from non-GAAP amounts.
(g) Mark-to-market adjustment related to unrealized gains on trading Auction Rate Securities (ARS), partially offset by related unrealized losses on a put option
received in connection with the ARS. This amount is recorded in “Interest and other income (expense), net.”