TiVo 2004 Annual Report Download - page 68

Table of Contents
Index to Financial Statements
Statement 123(R) permits public companies to adopt its requirements using one of two methods:
1. A "modified prospective" method in which compensation cost is recognized beginning with the effective date (a) based on the requirements of
Statement 123(R) for all share-based payments granted after the effective date; and (b) based on the requirements of Statement 123 for all awards
granted to employees prior to the effective date of Statement 123(R) that remain unvested on the effective date.
2. A "modified retrospective" method which includes the requirements of the modified prospective method previously described above, but also
permits entities to restate based on the amounts previously recognized under Statement 123 for purposes of pro forma disclosures either (a) all
prior periods presented; or (b) prior interim periods of the year of adoption.
TiVo Inc. is currently evaluating which of the two methods it will adopt.
As permitted by Statement 123, the Company currently accounts for share-based payments to employees using the intrinsic value method and, as such,
generally recognize no compensation cost for employee stock options. Accordingly, the adoption of Statement 123(R)'s fair value method will have a
significant impact on its results of operations, although it will have no impact on its overall financial position based on our current share based awards to
employees. The impact of adoption of Statement 123(R) cannot be predicted at this time because it will depend on levels of share-based payments granted in
the future, the valuation model used to value the options and other variables. However, had the Company adopted Statement 123(R) in prior periods, the
impact of that standard would have approximated the impact of Statement 123 as described in this Note 2.
3. CASH AND CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS
The following table summarizes the amortized value of the Company's cash and cash equivalents and short-term investments that approximates their
fair value as of January 31, 2005 and 2004 (in thousands):
January 31, 2005 January 31, 2004
Cash $ 10,791 $ 80,012
Money market funds 69,519 57,199
U.S. corporate debt securities 6,935 999
Total cash equivalents 87,245 138,210
U.S. Treasury and Agency securities 19,100 5,025
Total short-term investments 19,100 5,025
Total cash and cash equivalents, and short-term investments $ 106,345 $ 143,235
The Company's short-term investment portfolio consists of investments in U.S. Treasury and Agency securities which are auction rate securities and
considered available-for-sale. Realized and unrealized gains and losses on available-for-sale securities were immaterial for all periods presented. As of
January 31, 2005 and 2004 all of the Company's short-term investments had underlying maturities over 10 years. During the years ended January 31, 2005
and 2004 the Company sold securities generating gross proceeds of $9.0 million and $3.7 million, respectively.
4. PROPERTY AND EQUIPMENT, NET
Property and equipment, net consists of the following:
Fiscal Year Ended January 31,
2005
2004
(In thousands)
Furniture and fixtures $ 3,149 $ 3,456
Computer and office equipment 17,360 14,708
Lab equipment 1,930 1,296
Leasehold improvements 4,852 4,852
Capitalized software 8,551 7,985
Total property and equipment 35,842 32,297
Less: accumulated depreciation (28,062) (23,602)
Property and equipment, net $ 7,780 $ 8,695
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