TiVo 2007 Annual Report Download - page 72

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Table of Contents
3. CASH AND CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS
The following table summarizes the amortized value of the Company's cash and cash equivalents and short-term investments that approximates their
fair value as of January 31, 2008 and 2007 (in thousands):
As of January 31,
2008 2007
Cash $ 6,454 $ 7,527
Money market funds 69,363 63,614
U.S. corporate debt securities 2,995 17,938
Total cash and cash equivalents 78,812 89,079
Auction rate securities 16,600 33,810
Commercial paper 3,694 5,876
Total short-term investments 20,294 39,686
Total cash and cash equivalents, and short-term investments $ 99,106 $ 128,765
The Company currently invests the majority of its cash in money market funds and maintains them with one financial institution with a high credit
rating. TiVo also invests in commercial paper and auction rate securities. The Company does not invest directly in mortgage backed securities. As part of the
Company's cash management process, we perform periodic evaluations of the relative credit ratings of the securities' issuers. TiVo has not experienced any
credit losses on its cash, cash equivalents, or short-term investments through January 31, 2008. TiVo's investment portfolio only includes instruments held for
investment purposes, not trading purposes. As of January 31, 2008 and 2007, all of the Company's auction rate securities had underlying maturities over 10
years and all other short-term investments had underlying maturities of less than one year.
4. BARTER TRANSACTION
During the second quarter of fiscal year 2008, the Company entered into a barter transaction, exchanging TiVo Series2 standard definition DVR
inventory with a net book value of $2,774,000 for barter credits that are redeemable for a percentage of future purchases of advertising media and other
services from certain vendors. The barter credits were valued at the fair value of the inventory exchanged, which was determined to be $1,785,000. The
resultant pre-tax loss on this exchange of $989,000 was included in the gross margin in the Company's consolidated statement of operations for the fiscal year
ended January 31, 2008.
In the fiscal year ended January 31, 2008, the Company utilized trade credits in the amount of $342,000. The credits expected to be utilized in the next
twelve months in the amount of $800,000 are included in prepaid expenses and other current assets and the remaining $643,000 is included in other assets in
the Company's consolidated balance sheet at January 31, 2008. The Company evaluates the recoverability of the credits on a quarterly basis and expects to
utilize all credits recorded prior to their expiration in July 2010.
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