TiVo 2008 Annual Report Download - page 58

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Table of Contents
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Our exposure to market risk for changes in interest rates relates primarily to our investment portfolio. We do not use derivative financial instruments in
our investment portfolio and we conduct transactions in U.S. dollars. We currently invest the majority of our cash in money market funds and maintain them
with two financial institutions with a high credit rating. We also hold investments in auction rate securities. We do not invest in mortgage backed securities.
As part of our cash management process, we perform periodic evaluations of the relative credit ratings of issuers of these securities. We have not experienced
any credit losses on our cash, cash equivalents, or short-term investments. Our investment portfolio only includes instruments with original maturities of less
than one year (with the exception of auction rate securities as discussed below) held for investment purposes, not trading purposes. Due to the short-term
nature of our cash equivalents and short-term investments, we do not anticipate any material effect on our portfolio due to fluctuations in interest rates.
As of January 31, 2009, we held approximately $5.0 million of investments with an auction reset feature (auction rate securities), with a fair value of
$3.9 million that are classified as long term assets. We have recorded an unrealized loss on these auction rate securities of $1.1 million. The Company has the
ability and intent to hold these securities until anticipated recovery. . Based on our expected operating cash flows, and our other sources or cash, we do not
anticipate the potential lack of liquidity on these investments will affect our current business plan.
The table below presents principal amounts and related weighted average interest rates for our cash and cash equivalents and short-term investments as
of January 31, 2009 and 2008, respectively.
Twelve Months Ended January 31,
2009 2008
Cash and cash equivalents and short-term investments (in thousands) $ 207,328 $ 99,106
Average interest rate 1.66% 5.26%
Although payments under the operating lease for our facility are tied to market indices, we are not exposed to material interest rate risk associated with
the operating lease.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The Company's consolidated financial statements and notes thereto appear on pages 58-87 of this annual report on Form 10-K. The unaudited quarterly
results of our consolidated operations for our two most recent fiscal years are incorporated herein by reference under Item 6. "Selected Financial Data."
Index to Consolidated Financial Statements
Reports of Independent Registered Public Accounting Firm 56
Consolidated Balance Sheets 58
Consolidated Statements of Operations 59
Consolidated Statements of Stockholders' Equity 60
Consolidated Statements of Cash Flows 61
Notes to Consolidated Financial Statements 62
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