Activision, Inc. — 2004 Annual Report Notes to Consolidated Financial Statements advances and are recoupable against future royalties earned by the developer or intellectual property holder based on the sale of the related game. Assuming all contractual provisions are met, the total future minimum contract commitment for contracts in place as of March 31, 2004 is approximately $89.3 million, which is scheduled to be paid as follows (amounts in thousands): Year ended March 31, 2005 $62,529 2006 17,328 2007 4,545 2008 1,895 2009 3,020 To ta l $89,317 The commitment schedule above excludes approximately $9.3 million of commitments originally scheduled to be paid between fiscal 2004 through fiscal 2007 relating to an intellectual property rights agreement with a third party. Effective June 30, 2003, we terminated the agreement and filed a breach of contract suit against the third party. Marketing Commitments In connection with certain intellectual property right acquisitions and development agreements, we will commit to spend specified amounts for marketing support for the related game(s) which is to be developed or in which the intellectual property will be utilized. Assuming all contractual provisions are met, the total future minimum marketing commitment for contracts in place as of March 31, 2004 is approximately $66.4 million, which is scheduled to be paid as follows (amounts in thousands): Year ended March 31, 2005 $39,919 2006 11,500 2007 15,000 To ta l $66,419 Lease Obligations We lease certain of our facilities under non-cancelable operating lease agreements. Total future minimum lease commit- ments as of March 31, 2004 are as follows (amounts in thousands): Year ended March 31, 2005 $ 8,936 2006 7,520 2007 6,870 2008 4,033 2009 2,993 Thereafter 16,222 To ta l $46,574 Facilities rent expense for the years ended March 31, 2004, 2003 and 2002 was approximately $8.7 million, $7.6 million and $5.3 million, respectively. page 66