TiVo 2004 Annual Report Download - page 69

Table of Contents
Index to Financial Statements
5. CAPITALIZED SOFTWARE AND INTANGIBLE ASSETS, NET
Capitalized software and intangible assets, net consists of the following:
Fiscal Year Ended January 31,
2005 2004
(In thousands)
Capitalized software $ 1,951 $ 1,851
Patent rights 350 350
Intangible assets, gross 2,301 2,201
Less: accumulated amortization (70) —
Intangible assets, net $ 2,231 $ 2,201
The total expected future annual amortization expense on a straight-line basis related to capitalized software and intangible assets is set forth in the table
below:
Estimated Amortization Expense
Annual Amortization
(In thousands)
For the fiscal year ended January 31, 2006 $ 474
For the fiscal year ended January 31, 2007 474
For the fiscal year ended January 31, 2008 473
For the fiscal year ended January 31, 2009 440
For the fiscal year ended January 31, 2010 370
$ 2,231
6. ACCRUED LIABILITIES
Accrued liabilities consist of the following:
Fiscal Year Ended January 31,
2005 2004
(In thousands)
Compensation and vacation $ 3,787 $ 4,137
Consumer rebates 16,429 2,263
Marketing and promotions 2,536 997
Redeemable gift certificates for subscriptions 2,432 607
Other 7,989 8,121
Total accrued liabilities $ 33,173 $ 16,125
7. INDEMNIFICATION ARRANGEMENTS AND GUARANTEES
Product Warranties
The Company's minimum warranty period to consumers for TiVo-enabled DVRs is 90 days from the date of consumer purchase. Within the minimum
warranty period, consumers are offered a no-charge exchange for TiVo-enabled DVRs returned due to product defect. After the minimum warranty period,
consumers may exchange a TiVo-enabled DVR with a product defect for a charge. At January 31, 2005 and 2004 the accrued warranty reserve was $675,000
and $616,000, respectively. The Company's accrued warranty reserve is included in accrued liabilities in the accompanying condensed consolidated balance
sheets.
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