TiVo 2008 Annual Report Download - page 87

Table of Contents
The Company adopted the provisions of FASB Interpretation No. 48, "Accounting for Uncertainty in Income Taxes" (FIN 48), as of February 1, 2007.
At implementation, the Company had approximately $7.5 million of unrecognized tax benefits, none of which would currently affect the Company's effective
tax rate if recognized due to the Company's deferred tax assets being fully offset by a valuation allowance. A reconciliation of the beginning and ending
amount of unrecognized tax benefits is as follows:
Fiscal Year Ended January 31,
2009 2008
(in thousands)
Beginning Balance $ 7,960 $ 7,515
Additions based on tax positions related to current year 1,212 445
Additions for tax positions in prior years 400 —
Reduction for tax positions of prior years — —
Settlements — —
Ending Balance $ 9,572 $ 7,960
The total amount of unrecognized tax benefit, if recognized, that would effect the effective tax rate would be $ 0.1 million at January 31, 2009. The
remaining unrecognized tax benefits at January 31, 2009 would not affect the Company's effective tax rate if recognized due to the Company's deferred tax
assets being fully offset by a valuation allowance. The Company does not expect that there will be a significant increase or decrease of the total amount
unrecognized tax benefits within the next 12 month.
The Company would classify interest and penalties related to uncertain tax positions in income tax expense, if applicable. There was no interest expense
or penalties related to unrecognized tax benefits recorded through January 31, 2009.
The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. The open tax
years for the major jurisdictions are as follows:
• Federal 2005 – 2009
• California 2004 – 2009
However, due to the fact the Company has net operating losses and credits carried forward in most jurisdictions, certain items attributable to technically
closed years are still subject to adjustment by the relevant taxing authority through an adjustment to tax attributes carried forward to open years.
18. NET INCOME (LOSS) PER COMMON SHARE
Basic and diluted net income (loss) per common share is calculated in accordance with SFAS No. 128, "Earnings Per Share." Basic net income (loss)
per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding, excluding unvested restricted
stock.
The following table sets forth the computation of basic and diluted earnings per common share:
2009
Twelve Months Ended January 31,
2008 2007
(In thousands, except per share amounts)
Numerator:
Net income (loss) $ 103,592 $ (31,591) $ (49,058)
Denominator:
Weighted average shares outstanding, excluding unvested restricted stock 100,390 97,511 89,864
Weighted average effect of dilutive securities:
Stock options and restricted stock 2,206 — —
Denominator for diluted net income per common share 102,596 97,511 89,864
Basic net income (loss) per common share $ 1.03 $ (0.32) $ (0.55)
Diluted net income (loss) per common share $ 1.01 $ (0.32) $ (0.55)
The weighted average number of shares outstanding used in the computation of basic and diluted net loss in fiscal 2008 and fiscal 2007 per share does
not include the effect of the following potentially outstanding common stock.
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