TiVo 2008 Annual Report Download - page 57

Table of Contents
Revolving Line of Credit Facility with Citigroup. On January 25, 2007, we entered into a credit agreement, together with a post-closing agreement and
related security and other ancillary agreements, with Citigroup Global Markets Realty Corp., as lender and agent. Under the terms of the credit agreement
Citigroup extended a revolving line of credit equal to the lesser of $50 million or amounts available pursuant to a borrowing base calculation. Effective
November 28, 2008, due to our increased cash and short-term investments balance, we chose to voluntarily terminate our revolving line of credit with
Citigroup Global Markets Realty Corp. prior to its expiration on January 25, 2010.
Contractual Obligations
As of January 31, 2009, 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 $ 2,454 $ 2,454 $ — $ — $ —
Purchase obligations 1,523 1,523 — — —
Total contractual cash obligations $ 3,977 $ 3,977 $ — $ — $ —
Purchase Obligations with Contract Manufacturers and Suppliers. We purchase components from a variety of suppliers and use 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. If there are unexpected changes to anticipated demand for our
products or in the sales mix of our products, some of the firm, non-cancelable, and unconditional purchase commitments may result into TiVo being
committed to purchase excess inventory. The above table does not include a reserve of $68,000 for excess non-cancelable purchase commitments which is
included in accrued liabilities on our consolidated balance sheet dated January 31, 2009.
As of January 31, 2009, the Company recorded gross unrecognized tax benefits of approximately $126,000, which are classified as long-term liabilities
in the Consolidated Balance Sheet. At this time, the Company is unable to make a reasonably reliable estimate of the timing of payments in individual years
due to uncertainties in the timing of tax audit outcomes; therefore, such amounts are not included in the above contractual obligation table.
Operating Lease Obligations The Company's corporate headquarters consists of two buildings located in Alviso, California, which are used for
administrative, sales and marketing, customer service, and product research and development activities. Additionally, we have sales offices in New York City,
New York and Chicago, Illinois.
Our other commercial commitment as of January 31, 2009, was our standby letter of credit issued to the landlord of our Alviso, California offices in the
amount shown below:
Total
Less
than 1
year 1-3 years 3-5 years
Over 5
years
(In thousands)
Standby letter of credit $ 327 $ 75 $ 252 $ — $ —
Total contractual obligations $ 327 $ 75 $ 252 $ — $ —
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, 2009.
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