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This excerpt taken from the THQI DEF 14A filed Jul 2, 2007. Accounting for Stock-Based Compensation. Beginning
on April 1, 2006, THQ began accounting for stock-based compensation in
accordance with the requirements of Financial Accounting Standards Board
Statement of Financial Accounting Standard No. 123 (revised 2004),
Share-Based Payment (“FAS 123R”). Under the fair value provisions of this
statement, stock-based compensation expense is measured at the grant date based
on the fair value of the award and is recognized as expense over the requisite
service period, which is the vesting period.
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