THQ 2011 Annual Report Download - page 96

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(e) The company reevaluated the sales potential of games based on its kids movie-based licenses. Based on recent industry trends, the
company lowered expectations for this category, which resulted in a $30.3 million impairment of kids movie-based licenses for games
that have not yet been released; this charge is included in "Cost of sales - License amortization and royalties" in our GAAP statement of
operations for the twelve months ended March 31, 2011.
(f) Represents interest expense capitalized to software development and subsequent amortization.
(g) Represents realignment attributable to noncontrolling interest.
(h) Realized gains on sales of investments to the extent we had previously excluded a related other-than-temporary impairment from non-
GAAP amounts.
(i) Mark-to-market adjustments, including the impact of changes in foreign currency rates, related to certain of our available-for-sale
investment securities; these amounts are recorded in “Accumulated other comprehensive income,” a component of stockholders' equity,
on our balance sheet until realized. Adjustment also may include 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.”
(j) For non-GAAP purposes, the company uses a fixed, long-term projected tax rate of 15% to evaluate its operating performance, as well
as to forecast, plan and analyze future periods.
(k) Non-GAAP earnings (loss) per share has been calculated using diluted shares before applying the “if-converted” method relative to the
Notes issued in August 2009.