THQ 2011 Annual Report Download - page 36

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Net Sales by New Releases and Catalog Titles
The following table details our net sales by new releases and catalog titles for fiscal 2010 and fiscal 2009 (amounts in thousands):
New releases
Catalog
Consolidated net sales
)LVFDO<HDU(QGHG0DUFK

$ 670,306
228,831
$ 899,137
74.5%
25.5
100.0%

$ 556,384
273,579
$ 829,963
67.0%
33.0
100.0%
,QFUHDVH
'HFUHDVH
$ 113,922
(44,748)
$ 69,174
&KDQJH
20.5%
(16.4)
8.3%
Net sales of our new releases (including changes in deferred net revenue) increased $113.9 million in fiscal 2010 compared to
fiscal 2009 primarily due to sales of UFC 2009 Undisputed, which was initially released in the three months ended June 30, 2009
on Xbox 360 and PS3, at a premium price (e.g. MSRP of $59.99 in the United States). This title was the primary driver of our net
sales in fiscal 2010 and had a higher average selling price compared to sales of our titles released in fiscal 2009. The increase in
net sales of new releases due to sales of UFC 2009 Undisputed was partially offset by i) a decrease in net sales of games based
on the WWE brand, which was primarily due to the release of WWE Legends of Wrestlemania in fiscal 2009 with no comparable
title in fiscal 2010 and ii) fewer units shipped of games based on our license with Nickelodeon.
Net sales of our catalog titles (including changes in deferred net revenue) decreased $44.7 million in fiscal 2010 due to fewer units
sold compared to fiscal 2009. Additionally, with respect to sales of our catalog, we had a decrease in the recognition of deferred
revenue in fiscal 2010 compared to fiscal 2009.
Net Sales by Territory
The following table details our net sales by territory for fiscal 2010 and fiscal 2009 (amounts in thousands):
North America
Europe
Asia Pacific
International
Consolidated net sales
)LVFDO<HDU(QGHG0DUFK

$ 558,673
277,647
62,817
340,464
$ 899,137
62.1%
30.9
7.0
37.9
100.0%

$ 457,819
314,063
58,081
372,144
$ 829,963
55.2%
37.8
7.0
44.8
100.0%
,QFUHDVH
'HFUHDVH
$ 100,854
(36,416)
4,736
(31,680)
$ 69,174
&KDQJH
22.0%
(11.6)
8.2
(8.5)
8.3%
Net sales in North America (including changes in deferred net revenue) increased $100.9 million in fiscal 2010 compared to fiscal
2009. The increase was due to an increase in units shipped of our new releases with higher average selling prices, which was
primarily due to sales of UFC 2009 Undisputed.
Net sales in Europe (including changes in deferred net revenue) decreased $36.4 million in fiscal 2010 compared to fiscal 2009.
The decrease was primarily due to a decrease in units shipped. We shipped fewer games from our kids business due primarily to
fewer units sold of Up in fiscal 2010 compared to Wall-E in fiscal 2009 and we shipped fewer games based on our WWE license,
which was primarily due to the release of WWE Legends of Wrestlemania in fiscal 2009 with no comparable title in fiscal 2010.
The decrease in units shipped was partially offset by an increase in average selling prices in fiscal 2010 compared to fiscal 2009,
driven by sales of UFC 2009 Undisputed. We estimate that changes in foreign currency translation rates during fiscal 2010 decreased
reported net sales in Europe by $3.9 million.
Net sales in Asia Pacific (including changes in deferred net revenue) increased $4.7 million in fiscal 2010 compared to fiscal 2009.
We estimate that changes in foreign currency translation rates during fiscal 2010 increased reported net sales in this territory by
$6.1 million. Excluding the increase due to changes in foreign currency translation rates, net sales in Asia Pacific decreased slightly
in fiscal 2010 compared to fiscal 2009.
&RVWRI6DOHV
Cost of sales decreased $112.3 million, or 15%, in fiscal 2010 compared to fiscal 2009. As a result, our gross profit increased 19.4
27