TiVo 2013 Annual Report Download - page 96

Table of Contents
carryforwards. The Company had an acquisition during the fiscal year ended January 31, 2013 for which Section 382 will apply. The
additional net operating loss from this acquisition after the Section 382 limitation is approximately $12.9 million.
The federal net operating loss carryforwards expire beginning in fiscal year ending 2022 through 2031. The state net operating loss
carryforwards expire beginning in fiscal year ending 2016 through 2031. As of January 31, 2014, unused research and development tax
credits of approximately $24.7 million and $32.1 million, respectively, are available to reduce future federal and California income taxes. The
federal research credit carryforwards will begin to expire, if not utilized, by fiscal year 2020. California research and experimental tax credits
carry forward indefinitely until utilized.
On January 2, 2013, President Obama signed into legislation, The American Taxpayer Relief Act of 2012 which retroactively reinstated
the research credit for amounts paid or incurred from January 1, 2013 through December 31, 2013. The expiration of the federal research
credit as of December 31, 2013 does not have material impact on financial results of the Company in the twelve months ended January 31,
2014.
The aggregate changes in the balance of gross unrecognized tax benefits were as follows:

  

Beginning Balance $ 14,812 $ 12,075 8,745
Additions based on tax positions related to current year 1,583 2,579 3,253
Additions for tax positions in prior years 23 158 77
Lapse of statute of limitations (154)— —
Reduction for tax positions of prior years $(1,101)$— —
Ending Balance $15,163 $ 14,812 $ 12,075
The total amount of unrecognized tax benefit, if recognized, that would affect the effective tax rate would be approximately $6.2 million at
January 31, 2014. The remaining unrecognized tax benefits at January 31, 2014 would not affect the Company’s effective tax rate if
recognized due to the Company’s California deferred tax assets being fully offset by a valuation allowance. Since the timing of resolution
and/or closure of the Company's open tax years is highly uncertain, the Company does not believe that the unrecognized tax benefits would
materially change in the next twelve months.
The Company classifies interest and penalties related to uncertain tax positions in income tax expense, if applicable.
The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various state and foreign
jurisdictions. The open tax years for the major jurisdictions are as follows:
Federal 2010 – 2014
California 2009 – 2014
However, due to the fact the Company has net operating losses and credits carried forward in most jurisdictions, certain items
attributable to technically closed years are still subject to adjustment by the relevant taxing authority through an adjustment to tax attributes
carried forward to open years. Since the timing of resolution and closure of the Company's open tax years is highly uncertain, the Company
does not believe that the unrecognized tax benefits would materially change in the next twelve months.

Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common
shares outstanding, excluding unvested restricted stock.
Diluted earnings per share is computed based on the weighted average number of shares of common stock plus the effect of dilutive
potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include
outstanding stock options, stock awards, and performance stock awards
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