TiVo 2009 Annual Report Download - page 67

Download and view the complete annual report

Please find page 67 of the 2009 TiVo annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 159

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159

Table of Contents
Our other commercial commitment as of January 31, 2010, was our standby letter of credit issued to the landlord of our Alviso, California offices in the
amount shown below:
Total
Less
than 1
year 1-3 years 3-5 years
Over 5
years
(In thousands)
Standby letter of credit $ 252 $ 75 $ 177 $ — $ —
Total contractual obligations $ 252 $ 75 $ 177 $ — $ —
Off-Balance Sheet Arrangements
As part of our ongoing business, we generally do not engage in transactions that generate relationships with unconsolidated entities or financial
partnerships, such as entities often referred to as structured finance or special purpose entities. Accordingly, our operating results, financial condition, and
cash flows are not generally subject to off-balance sheet risks associated with these types of arrangements. We did not have any material off-balance sheet
arrangements as of January 31, 2010.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Our exposure to market risk for changes in interest rates relates primarily to our investment portfolio. We do not use derivative financial instruments in
our investment portfolio and we conduct transactions in U.S. dollars. We currently invest the majority of our cash in money market funds, high-grade
government and corporate debt, and high-grade foreign corporate and government securities. We maintain our investments with three financial institutions
with high credit ratings. We also hold investments in auction rate securities. As part of our cash management process, we perform periodic evaluations of the
relative credit ratings of issuers of these securities. We have not experienced any credit losses on our cash, cash equivalents, or short and long-term
investments. Our investment portfolio only includes instruments with original maturities of less than two years (with the exception of auction rate securities as
discussed below) held for investment purposes, not trading purposes. Due to the short-term nature of our cash equivalents and short-term investments we do
not anticipate any material effect on our portfolio due to fluctuations in interest rates.
As of January 31, 2010, we held approximately $5.0 million principal amount of investments with an auction reset feature (auction-rate securities), with
a fair value of $4.1 million that are classified as a long-term assets. We have recorded an unrealized loss on these auction rate securities of $888,000. We have
no intent to sell these securities and it is more-likely-than not that we will not be required to sell these ARS prior to recovery. Based on our expected operating
cash flows, and our other sources of cash, we do not anticipate the potential lack of liquidity on these investments will materially affect our ability to execute
our current business plan.
The table below presents principal amounts and related weighted average interest rates for our cash and cash equivalents and short-term investments as
of January 31, 2010 and 2009, respectively.
Twelve Months Ended January 31,
2010 2009
Cash and cash equivalents and short-term investments (in thousands) $ 244,582 $ 207,328
Average interest rate 0.43% 1.66%
Although payments under the operating lease for our facility are tied to market indices, we are not exposed to material interest rate risk associated with
the operating lease.
63