TiVo 2005 Annual Report Download - page 86

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Table of Contents
Facilities Leases
The Company's corporate headquarters consists of two buildings located in Alviso, California. 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 $265,000 with built-in base rent escalations periodically throughout the lease term. The lease is classified as an operating lease. Rent expense
(recovery) is recognized using the straight-line method over the lease term and for the fiscal year ended January 31, 2006, 2005 and 2004 was $3.0 million,
$3.0 million, and $(624,000), respectively. 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 also has operating leases for sales and administrative office space in San Francisco and in New York.
The Company's corporate headquarters consists of two buildings located in Alviso, California, which are used for administrative, sales and marketing,
customer service, and product research and development activities. Operating lease cash payments for fiscal years ended January 31, 2006, 2005 and 2004
were $3.3 million $3.1 million and $3.0 million, respectively.
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, which resulted in a negative expense for the fiscal year ended
January 31, 2004.
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, of which $28,000 remains and is included in accrued liabilities in the
accompanying consolidated balance sheet at January 31, 2006.
Future minimum operating lease payments as of January 31, 2006, were as follows:
Fiscal Year Ending Lease Payments
(In thousands)
January 31, 2007 3,395
January 31, 2008 273
Total $ 3,668
82