Activision, Inc. — 2004 Annual Report Acquisition of Treyarch Effective October 1, 2001, we acquired all of the outstanding ownership interests of Treyarch Invention, LLC (“Treyarch”), a privately held interactive software development company, in exchange for 1,842,663 shares of our common stock. Treyarch is an experienced, multi-platform console software developer with a focus on action and action sports video games. As part of the original acquisition agreement, approximately 540,000 additional shares of our common stock could also be issued to Treyarch’s equity holders and employees over the course of several years, depending on the satisfaction of certain product performance requirements and other criteria. This contingent consideration would be recorded as an additional element of the purchase price for Treyarch when those contingencies were resolved. In July 2002, in connection with the satisfaction of certain of those product performance requirements,  we issued to Treyarch equity holders and employees 228,680 of our common shares with an assigned value of $2.7 million. The purchase price of the transaction, including the contingent consideration issued in July 2002, forgiveness of a note receivable and acquisition costs, was valued at approximately $18.2 million with approximately $17.2 million of the purchase price being assigned to goodwill. This goodwill has been included in the publishing segment of our  business and is non-deductible for tax purposes. The results of operations of Treyarch are included in our consolidated statement of operations beginning October 1, 2001. As of March 31, 2004, all contingencies relating to the issuance of additional shares as consideration have been resolved. The following table summarizes our cash, cash equivalents and short-term investments as of March 31, 2004 (amounts in thousands): 4. Cash, Cash Equivalents, and Short-Term Investments page 57 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Cash and cash equivalents: Cash and time deposits $101,414 $ — $ — $101,414 Money market funds 60,006 — — 60,006 Commercial paper 3,700 — — 3,700 Auction rate notes 301,432 — — 301,432 Cash and cash equivalents 466,552 — — 466,552 Short-term investments: Corporate bonds 21,047 13 (24) 21,036 U.S. agency issues 71,817 76 (4) 71,889 Asset-backed bonds 23,113 74 (38) 23,149 Municipal bonds 5,023 — — 5,023 Short-term investments 121,000 163 (66) 121,097 Cash, cash equivalents and short-term investments $587,552 $163 $(66) $587,649