TiVo 2003 Annual Report Download - page 84

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Table of Contents
Facilities Leases
In October 1999, the Company entered into an office lease with WIX/NSJ Real Estate Limited Partnership for its headquarters. The lease began on
March 10, 2000 and has a seven-year term. Monthly rent is approximately $250,000 with built-in base rent escalations periodically throughout the lease term.
The lease is classified as an operating lease. Rent expense is recognized using the straight-line method over the lease term. Additionally, the Company
delivered a letter of credit totaling $476,683, to WIX/NSJ Real Estate Limited Partnership as collateral for performance by the Company of all of its
obligations under the lease. The letter of credit is to remain in effect the entire term of the lease.
The Company's corporate headquarters consists of two buildings, which are used for administrative, sales and marketing, customer service and product
development activities, and are located in Alviso, California. In January 2002, the Company recorded an accrual of $5.1 million for the abandonment of one
of the two-story Alviso buildings as the Company planned for it to be vacant during the fiscal year ended January 31, 2003. In January 2003, the Company
made an adjustment to reduce the accrual by $449,000 as the Company planned to reoccupy one floor of the vacant building. In January 2004, the Company
reversed the balance of the restructuring accrual of $2.7 million, when the Company made the decision to reoccupy the second floor during the fiscal year
ended January 31, 2005. Operating lease cash payments for the fiscal years ended January 31, 2004, 2003, and 2002 were $3.0 million, $2.9 million, and $2.8
million, respectively.
Additionally, the Company leases office space in Berkshire, United Kingdom under an operating lease that expires in March 2006. The Company
abandoned this facility in May 2002 and recorded a restructuring accrual of $367,000.
The following table summarizes the accrued facilities expenses recorded as a result of the Company's partially unoccupied facilities as of January 31,
2004:
Accrual
balance at
January 31, 2002
Total cash
payments,
charges and
credits for the
year ended
January 31, 2003
Accrual
balance at
January 31, 2003
Total cash
payments,
charges and
credits for the
year ended
January 31, 2004
Accrual
balance at
January 31, 2004
(In thousands)
TiVo, Alviso, CA facility lease expenses $ 5,081 $ (1,441) $ 3,640 $ (3,640) $ —
TiVo, Berkshire, United Kingdom facility lease expenses — 367 367 (113) 254
Total $ 5,081 $ (1,074) $ 4,007 $ (3,753) $ 254
Of the total accrued facilities expenses recorded as a result of the Company's unoccupied facilities, $141,000 is included in deferred rent and other long-
term liabilities and $113,000 is included in accrued liabilities in the accompanying consolidated balance sheet at January 31, 2004.
Future minimum operating lease payments as of January 31, 2004, were as follows:
Fiscal Year Ending
Lease Payments
(In thousands)
January 31, 2005 3,233
January 31, 2006 3,278
January 31, 2007 3,285
January 31, 2008 273
Total $ 10,069
82