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Technology Stocks : THQ,Inc. (THQI)
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To: Sigmund who wrote (6254)6/22/1998 2:40:00 AM
From: Todd D. Wiener  Read Replies (1) of 14266
 
THQ expenses product development costs, but it classifies these costs as salaries and pay for internal development staff, now at ~55 people, I believe.

The balance sheet data, such as software development costs, are reflected largely in the royalties line in the income statement. This is obviously different that product development. But if you were referring to whether THQ expenses the royalties (upfront payment to WCW, for example, months before the title was launched), the answer is not. These expenses are capitalized. Refer to the 10-K for more details.

Todd
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