THQ 2011 Annual Report Download - page 74

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We measure the fair value of our warrants granted on the measurement date. The fair value of each stock warrant issued to licensors
is capitalized as a component of licenses and amortized to "Cost of sales — License amortization and royalties" expense in our
consolidated statements of operations when the related product is released and the related net sales are recognized. As of March
31, 2010 these warrants were fully amortized. In fiscal 2010 and 2009 amortization expense related to these warrants was $0.1
million and $0.4 million, respectively, and was included in "Cost of sales — License amortization and royalties" expense in our
consolidated statements of operations.
 ,QFRPH7D[HV
United States and foreign income (loss) before taxes and details of the provision for income tax were as follows (amounts in
thousands):
Income (loss) from continuing operations
before income taxes:
United States
Foreign
Provision for income tax expense (benefit):
Current
Federal
State
Foreign
Total current
Deferred
Federal
State
Foreign
Total deferred
Provision for income tax expense
)LVFDO<HDU(QGHG0DUFK

$ (160,709)
25,539
$ (135,170)
$ (4)
44
2,360
2,400
309
36
(1,817)
(1,472)
$ 928

$ (26,470)
14,765
$ (11,705)
$ (4,302)
316
3,487
(499)
1,337
—
(591)
746
$ 247

$ (384,363)
(2,867)
$ (387,230)
$ 1,734
90
10,461
12,285
24,478
11,294
(1,831)
33,941
$ 46,226
The differences between the U.S. federal statutory tax rate and our effective tax rate, expressed as a percentage of loss from
continuing operations before income taxes were as follows:
U.S. federal statutory tax rate
Impact of changes in unrecognized tax benefits
State taxes, net of federal impact
Tax exempt interest income
Research and development credits
Non-deductible stock-based compensation
Valuation allowance
Capital losses
Section 956 income
Foreign earnings
Rate differences in foreign taxes and other
Effective tax rate
)LVFDO<HDU(QGHG0DUFK

(35.0)%
(1.0)
0.1
—
(1.0)
—
17.5
—
6.1
13.9
0.1
0.7 %

(35.0)%
(2.7)
1.8
(0.7)
(14.6)
(0.2)
46.0
(30.1)
—
—
37.6
2.1 %

(35.0)%
(0.3)
1.9
(0.3)
(0.6)
0.2
36.5
—
—
—
9.6
12.0 %
65