TiVo 2009 Annual Report Download - page 100

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Table of Contents
No income tax benefit was realized from stock option exercises during the twelve months ended January 31, 2010, 2009, and 2008, respectively. 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, 2010, $12.0 million of total unrecognized compensation cost related to stock options is expected to be recognized over a weighted-
average period of 1.53 years. As of January 31, 2010, $22.5 million of total unrecognized compensation costs related to unvested restricted stock is expected
to be recognized over a weighted-average period of 2.93 years.
The Company used the alternative transition method which included a simplified method to establish the beginning balance of the additional paid in
capital pool ("the APIC pool") related to the tax effects of employee share-based compensation, which is available to absorb tax deficiencies recognized
subsequent to stock option expensing.
The Company is required to use a valuation model to calculate the fair value of stock-based awards and has elected to use the Black-Scholes option-
pricing model, which incorporates various assumptions including volatility, expected life, and interest rate. The expected volatility is based on a combination
of historical volatility of the Company's common stock and implied volatility of market traded options on the Company's common stock. The expected life of
stock options granted prior to December 31, 2007 was based on the simplified calculation of expected life. The expected life of stock options granted after
January 1, 2008 is based on historical employee exercise patterns associated with prior similar option grants. The interest rate is based on the average of the
U.S. Treasury yield curve on investments with terms approximating the expected life during the fiscal quarter an option is granted. The Company has not and
has no current plan to declare a dividend.
The assumptions used for the twelve months ended January 31, 2010, 2009, and 2008, respectively, and the resulting estimates of weighted-average fair
value per share of options and ESPP shares granted during those periods are as follows:
ESPP Stock Options
Fiscal Year Ended January 31,
2010 2009 2008 2010 2009 2008
Expected life (in years) 0.70 0.57 0.43 4.42 5.37 6.26
Volatility 93% 77% 56% 69% 74% 68%
Average risk free interest rate 1.52% 2.02% 4.23% 2.02% 3.30% 4.60%
Dividend Yield 0% 0% 0% 0% 0% 0%
Weighted-average fair value during the period $ 3.25 $ 2.80 $ 2.66 $ 5.30 $ 5.58 $ 4.08
17. COMPREHENSIVE INCOME/LOSS
The components of comprehensive income (loss) are as follows:
Twelve Months Ended January,
2010 2009 2008
(In thousands)
Net income (loss) $ (23,916) $ 103,592 $ (31,591)
Other comprehensive income (loss):
Unrealized gain (loss) on marketable securities 409 (1,035) —
Comprehensive income (loss) $ (23,507) $ 102,557 $ (31,591)
18. INCOME TAXES
Income tax (benefit) provision was $(1.0) million, $1.3 million, and $30,000 in fiscal years 2010, 2009, and 2008, respectively. The income tax benefit
in fiscal year 2010 is due to a refund of previously paid Alternative Minimum Tax ("AMT") and refundable research credits. The income tax expense in fiscal
years 2009 and 2008 relates to federal AMT, state income taxes, and foreign withholding taxes.
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