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## Notes to Consolidated Financial Statements 

8. Goodwill 

The changes in the carrying amount of goodwill were as follows (amounts in thousands): 

<img src='content_image/120834.jpg'>

9. Accrued Expenses 

Accrued expenses were comprised of the following (amounts in thousands): 

<img src='content_image/120835.jpg'>

10. Operations by Reportable Segments and Geographic Area 

Based upon our organizational structure, we operate two business segments: (i) publishing of interactive entertainment software and (ii) distribution of interactive entertainment software and hardware products. 

Publishing refers to the development, marketing and sale of products directly, by license or through our affiliate label program with certain third-party publishers. In the United States, we primarily sell our products on a direct basis to mass-market retailers, consumer electronics stores, discount warehouses and game specialty stores. We conduct our international publishing activities through offices in the UK, Germany, France, Italy, Australia, Sweden, Canada and Japan. Our products are sold internationally on a direct-to-retail basis and through third-party distribution and licensing arrangements and through our wholly-owned distribution subsidiaries located in the UK, the Netherlands and Germany. 

Distribution refers to our operations in the UK, the Netherlands and Germany that provide logistical and sales services to third-party publishers of interactive entertainment software, our own publishing operations and manufacturers of inter- active entertainment hardware. 

