TiVo 2006 Annual Report Download - page 97

Table of Contents
14. STOCK-BASED COMPENSATION
Total stock-based compensation recognized on the consolidated statements of operations for the twelve months ended January 31, 2007, 2006,
and 2005, respectively is as follows:
SARs/Option Grants and Employee Stock Purchase Rights
Fiscal Year Ended January 31,
2007 2006 2005
(In thousands, except per share amount)
Cost of revenues $ 1,490 $ — $ —
Research and development 5,169 — —
Sales and marketing 1,340 — —
General and administrative 5,020 — —
Stock-based compensation effect before income taxes $ 13,019 $ — $ —
Income tax benefit — — —
Total stock-based compensation effects in net income $ 13,019 $ — $ —
Stock-based compensation effect on basic and diluted earnings per common share $ 0.14 $ — $ —
Restricted Stock Grants
Fiscal Year Ended January 31,
2007 2006 2005
(In thousands, except per share amount)
Cost of revenues $ — $ — $ —
Research and development $ 427 (85) 754
Sales and marketing 309 55 302
General and administrative 957 415 —
Stock-based compensation effect before income taxes $ 1,693 $ 385 $ 1,056
Income tax benefit — — —
Total stock-based compensation effects in net income $ 1,693 $ 385 $ 1,056
No income tax benefit was realized from stock option exercises during the twelve months ended January 31, 2007, 2006, and 2005, respectively.
In accordance with SFAS 123R, the Company presents excess tax benefits from the exercise of stock options, if any, as financing cash flows rather than
operating cash flows.
As of January 31, 2007, $28.8 million of total unrecognized compensation cost related to stock options is expected to be recognized over a
weighted-average period of 2.8 years. As of January 31, 2007, $1.8 million of total unrecognized compensation costs related to unvested restricted stock is
expected to be recognized over a weighted-average period of 1.86 years.
On November 10, 2005, the FASB issued FASB Staff Position No. FAS 123(R)-3, Transition Election Related to Accounting for Tax Effects of
Share-Based Payment Awards. The Company has elected to adopt the alternative transition method provided in the FASB Staff Position for calculating the
effects of share-based compensation pursuant to FAS 123(R). The alternative transition method includes a simplified method to establish the beginning
balance of the additional paid in capital pool (APIC pool) related to the tax effects of employee share-based compensation, which is available to absorb tax
deficiencies recognized subsequent to the adoption of FAS 123(R).
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