TiVo 2005 Annual Report Download - page 74

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Table of Contents
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 the Company's results of operations, although it will have no impact on its overall financial position based on its 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, 2006 and 2005 (in thousands):
As of January 31,
2006 2005
Cash $ 7,711 $ 10,791
Money market funds 72,504 69,519
U.S. corporate debt securities 5,083 6,935
Total cash and cash equivalents 85,298 87,245
U.S. Treasury and Agency securities 16,350 19,100
U.S. corporate debt securities 2,565
Total short-term investments 18,915 19,100
Total cash and cash equivalents, and short-term investments $ 104,213 $ 106,345
The Company's short-term investment portfolio consists of investments in U.S. corporate debt securities and 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, 2006 and 2005, all of the Company's U.S. Treasury and Agency securities had underlying maturities over 10 years.
During the years ended January 31, 2006 and 2005, the Company sold securities generating gross proceeds of $15.7 million and $9.1 million, respectively.
4. PROPERTY AND EQUIPMENT, NET
Property and equipment, net consists of the following:
As of January 31,
2006 2005
(In thousands)
Furniture and fixtures $ 3,285 $ 3,149
Computer and office equipment 20,946 17,360
Lab equipment 2,392 1,930
Leasehold improvements 6,319 4,852
Capitalized software 9,926 8,551
Total property and equipment 42,868 35,842
Less: accumulated depreciation and amortization (33,420) (28,062)
Property and equipment, net $ 9,448 $ 7,780
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