TiVo 2006 Annual Report Download - page 63

Table of Contents
Contractual Obligations
As of January 31, 2007, we had contractual obligations to make the following cash payments:
Payments due by Period
Contractual Obligations Total
Less
than 1
year 1-3 years 3-5 years
Over 5
years
(In thousands)
Operating leases $ 7,148 $ 2,331 $ 4,817
Purchase obligations 15,768 15,768 — —
Total contractual cash obligations $ 22,916 $ 18,099 $ 4,817 $ — $ —
Purchase Commitments with Contract Manufacturers and Suppliers. We purchase components from a variety of suppliers and use several contract
manufacturers to provide manufacturing services for our products. During the normal course of business, in order to manage manufacturing lead times and
help assure adequate component supply, we enter into agreements with contract manufacturers and suppliers that either allow them to procure inventory based
upon criteria as defined by us or that establish the parameters defining our requirements. In certain instances, these agreements allow us the option to cancel,
reschedule, and adjust our requirements based on our business needs prior to firm orders being placed. The table above displays that portion of our purchase
commitments arising from these agreements that is firm, non-cancelable, and unconditional.
Other commercial commitments as of January 31, 2007, were as follows:
Total
Less
than 1
year 1-3 years 3-5 years
Over 5
years
(In thousands)
Standby letter of credit $ 477 $ — $ — $ 477 $ —
Total contractual obligations $ 477 $ — $ — $ 477 $ —
Off-Balance Sheet Arrangements
As part of our ongoing business, we generally do not engage in transactions that generate relationships with unconsolidated entities or financial
partnerships, such as entities often referred to as structured finance or special purpose entities. Accordingly, our operating results, financial condition, and
cash flows are not generally subject to off-balance sheet risks associated with these types of arrangements. We did not have any material off-balance sheet
arrangements at January 31, 2007.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This annual report on Form 10-K contains certain forward-looking statements within the meaning of section 27A of the Securities Act of 1933, as
amended, and section 21E of the Securities Exchange Act of 1934, as amended. These statements relate to, among other things:
• our future investments in subscription acquisition activities, including rebate offers to consumers, offers of bundled hardware and service
subscriptions, advertising expenditures, and other marketing activities;
• our future earnings including expected future service and technology revenues and future TiVo-Owned and DIRECTV ARPU;
• expectations of the growth in the future DVR market generally;
• possible future impact of our change in accounting policy regarding our bundled sales program;
• our financial results, and expectations for profitability in the future;
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