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Table of Contents
4. INTANGIBLE ASSETS, NET
Intangible assets, net consists of the following:
Fiscal Year Ended January 31,
2004
2003
(In thousands)
Capitalized software $ 1,851 $ —
Patent rights 350 —
Intangible assets, gross 2,201 —
Less: accumulated amortization — —
Intangible assets, net $ 2,201 $ —
The increase in intangible assets is the fiscal year ended January 31, 2004 relates to the acquisition of Strangeberry Inc. (Note 14. Acquisition of
Strangeberry Inc.) and patent rights.
The total amortization related to intangibles was zero for the fiscal year ended January 31, 2004 due to timing of the acquisitions. The total expected
future annual amortization related to intangible assets is set forth in the table below:
Estimated Amortization Expense
Annual Amortization
(In thousands)
For the fiscal year ended January 31, 2005 $ 440
For the fiscal year ended January 31, 2006 440
For the fiscal year ended January 31, 2007 440
For the fiscal year ended January 31, 2008 440
For the fiscal year ended January 31, 2009 and thereafter 441
$ 2,201
5. ACCRUED LIABILITIES
Accrued liabilities consist of the following:
Fiscal Year Ended January 31,
2004
2003
(In thousands)
Compensation and vacation $ 4,138 $ 2,285
Consumer rebates 2,263 4,376
Marketing and promotions 997 3,550
Other 7,847 3,769
Total accrued liabilities $ 15,245 $ 13,980
6. INDEMNIFICATION ARRANGEMENTS AND GUARANTEES
Product Warranties
The Company accrues for warranty costs for the expected material and labor costs to provide warranty services. The methodology used in determining
the liability for product warranty services is based upon historical information and experience. The Company's warranty accrual is calculated as the total
volume of unit sales multiplied by the expected volume of the warranty return rate multiplied by the estimated cost to replace or repair the customers'
warranty returns. The Company offers standard warranties for its TiVo-enabled DVRs consisting of 90 days free labor and one year parts exchange. During
the fiscal year ended January 31, 2004 and 2003 the warranty accrual was not material. The Company's warranty accrual is included in accrued liabilities in
the accompanying consolidated balance sheets.
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