TiVo 2008 Annual Report Download - page 85

Download and view the complete annual report

Please find page 85 of the 2008 TiVo annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 110

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110

Table of Contents
defined by Staff Accounting Bulletin (SAB) 107, "Share Based Payments". The expected life of stock options granted after January 1, 2008 is based on
historical employee exercise patterns associated with prior similar option grants. The interest rate is based on the average of the U.S. Treasury yield curve on
investments with terms approximating the expected life during the fiscal quarter an option is granted.
The assumptions used for the twelve months ended January 31, 2009, 2008, and 2007, respectively, and the resulting estimates of weighted-average fair
value per share of options and ESPP shares granted during those periods are as follows:
ESPP Stock Options
Fiscal Year Ended January 31,
2009 2008 2007 2009 2008 2007
Expected life (in years) 0.57 0.43 0.57 5.37 6.26 6.25
Volatility 77% 56% 55% 74% 68% 81%
Average risk free interest rate 2.02% 4.23% 4.96% 3.30% 4.60% 4.81%
Dividend Yield 0% 0% 0% 0% 0% 0%
Weighted-average fair value during the period $ 2.80 $ 2.66 $ 1.95 $ 5.58 $ 4.08 $ 4.96
17. INCOME TAXES
Income tax provision was $1,328,000, $30,000, and $52,000, in fiscal years 2009, 2008, and 2007, respectively, due to Alternative Minimum Tax
("AMT"), state income taxes, and foreign withholding taxes.
Fiscal Year Ended
January 31,
Current Expense 2009 2008 2007
(in thousands)
Federal $ 595 $ — $ —
State 714 29 41
Foreign 19 1 11
Total $ 1,328 $ 30 $ 52
The income tax expense differed from the amounts computed by applying the U.S. federal income tax rate of 35% to pretax loss as a result of the
following:
Fiscal Year Ended January 31,
2009 2008 2007
(in thousands)
Federal tax at statutory rate $ 36,722 $ (11,010) $ (16,696)
State taxes 219 29 41
Foreign withholding tax 19 1 11
Utilization of net operating losses (21,507) — —
Net operating loss and temporary differences for which no tax benefit was realized (18,082) 6,570 13,540
Stock based compensation 2,367 4,260 3,074
Refundable research tax credits (229) — —
Federal and state alternative minimum taxes 1,193 — —
Non-deductible expenses and other 626 180 82
Total tax expense $ 1,328 $ 30 $ 52
82