TiVo 2013 Annual Report Download - page 36

Table of Contents
options and shares of common stock reserved for issuance under our option and equity incentive plans, also may adversely affect the terms
upon which we are able to obtain additional capital through the sale of equity securities.
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Our corporate headquarters is located in San Jose, California which is where the overwhelming majority of our employees work. Our
primary servers are located nearby in San Jose, California. San Jose lies near the San Andreas Fault, among other known and unknown
faults, a major source of earthquake activity in California. In the event of an earthquake or similar natural disaster, our ability to continue
operations could be adversely affected in which case our business would be harmed.
 
None
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Our corporate headquarters, which houses our administrative, sales and marketing, customer service and product development
activities, is located in San Jose, California, under a lease that expires on January 31, 2017. Our corporate headquarters includes two
buildings totaling 127,124 square feet of office space and an additional 37,145 square feet of office space as part of another building under a
lease that expires on January 31, 2017. We have a total of 164,269 square feet of office space in San Jose. We believe that our corporate
facilities will be adequate to meet our office space needs for the next year as we currently utilize approximately 93% of our total office space.
Our current facilities lease obligations are subject to periodic increases and we believe that our existing facilities are well maintained and in
good operating condition. We also have operating leases for engineering, sales and administrative office space in New York City, New York,
Chicago, Illinois, Denver, Colorado, Maynard, Massachusetts, and Durham, North Carolina.
 
From time to time, the Company is involved in numerous lawsuits as well as subject to various legal proceedings, claims, threats of
litigation, and investigations in the ordinary course of business, including claims of alleged infringement of third-party patents and other
intellectual property rights, commercial, employment, and other matters. The Company assesses potential liabilities in connection with each
lawsuit and threatened lawsuits and accrues an estimated loss for these loss contingencies if both of the following conditions are met:
information available prior to issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of
the financial statements and the amount of loss can be reasonably estimated. While certain matters to which the Company is a party specify
the damages claimed, such claims may not represent reasonably possible losses. Given the inherent uncertainties of the litigation, the
ultimate outcome of these matters cannot be predicted at this time, nor can the amount of possible loss or range of loss, if any, be reasonably
estimated. As of January 31, 2014, the Company has not accrued any pre-judgment liability for any lawsuits filed against the Company, as
the Company has neither determined that it is probable that a liability has been incurred at the date of the financial statements nor that the
amount of any loss can be reasonably estimated. The Company has accrued $4.7 million, including accrued interest, for arbitration
proceedings related to a contractual dispute. The Company is currently appealing an unfavorable decision in the initial arbitration proceeding.
The Company expenses legal costs as they are incurred.
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None
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 
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