TiVo 2006 Annual Report Download - page 84

Table of Contents
than 50% likely of being realized upon ultimate settlement. FIN 48 is effective for fiscal years beginning after December 15, 2006, which will be the
Company's fiscal year 2008, and is required to be recognized as a change in accounting principle through a cumulative-effect adjustment to retained earnings
as of the beginning of the year of adoption. The Company expects that the adoption of FIN 48 will not have a significant impact on the Company's financial
position and results of operations.
In June 2006, the FASB ratified the provisions of Emerging Issues Task Force ("EITF") Issue No. 06-3, "How Taxes Collected from Customers and
Remitted to Governmental Authorities Should Be Presented in the Income Statement (That Is, Gross versus Net Presentation)." EITF Issue No. 06-3 requires
that companies adopt a policy to present taxes within revenue-producing transactions between a seller and a customer, including but not limited to sales, use,
value added, and some excise taxes, on either a gross (included in revenue and cost) or a net (excluded from revenue) basis. In addition, for any such taxes
that are reported on a gross basis, a company should disclose the amounts of those taxes in interim and annual financial statements for each period for which
an income statement is presented if those amounts are significant. The disclosure of those taxes can be done on an aggregate basis. EITF Issue No. 06-3 is
effective for fiscal years beginning after December 15, 2006, which will be the Company's fiscal year 2008. EITF 06-3 will not impact the method for
recording these sales taxes in the Company's consolidated financial statements as the Company has historically presented sales excluding all taxes and the
Company currently has no plan to change its method of revenue reporting.
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, 2007 and 2006 (in thousands):
As of January 31,
2007 2006
Cash $ 7,527 $ 7,711
Money market funds 63,614 72,504
U.S. corporate debt securities 17,938 5,083
Total cash and cash equivalents 89,079 85,298
Auction rate securities 33,810 16,350
Commercial paper 5,876 2,565
Total short-term investments 39,686 18,915
Total cash and cash equivalents, and short-term investments $ 128,765 $ 104,213
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, 2007 and 2006, all of the Company's U.S. Treasury and Agency securities had underlying maturities over 10 years.
During the years ended January 31, 2007 and 2006, the Company sold securities generating gross proceeds of $7.9 million and $15.7 million, respectively.
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