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Table of Contents
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Total
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
(in thousands)
Assets:
Cash equivalents:
Commercial paper $ 14,995 $ — $ 14,995 $ —
Money market funds 51,786 51,786 — —
Short-term investments:
Certificate of deposit 16,401 16,401 — —
Commercial paper 39,559 — 39,559 —
Corporate debt securities 49,833 — 49,833 —
US agency securities 26,998 — 26,998 —
US Treasury securities 15,113 15,113 — —
Foreign government securities 25,787 — 25,787 —
Long-term investments:
Auction rate securities 4,112 — — 4,112
$ 244,584 $ 83,300 $ 157,172 $ 4,112
(a) The total fair value amounts for assets also represent the related carrying amounts.
The following table is a reconciliation of financial assets measured at fair value using significant unobservable inputs (Level 3) during the twelve
months ended January 31, 2010 (in thousands):
Auction Rate Securities
(Twelve Months January 31, 2010)
Balance, January 31, 2009 $
Transfer into Level 3
Total unrealized gains included in accumulated other comprehensive loss
Balance, January 31, 2010 $
Marketable securities measured at fair value using Level 3 inputs are comprised of auction rate securities. Although auction rate securities would
typically be measured using Level 2 inputs, the failure of auctions and the lack of market activity and liquidity required that these securities be measured
using Level 3 inputs. The underlying assets of the Company's auction rate securities are collateralized primarily by student loans guaranteed by the U.S.
government. The fair value of its auction rate securities was determined using a pricing model that market participants would use that considered projected
cash flows for the issuing trusts, underlying collateral and expected yields. Projected cash flows were estimated based on the underlying loan principal, bonds
outstanding, and payout formulas. The weighted-average life over which cash flows were projected considered the collateral composition of the securities and
related historical and projected prepayments. The discount rates that were applied to the pricing model were based on market conditions and rates for
comparable or similar term asset-backed securities as well as other fixed income securities.
TiVo also has a direct investment in a privately-held company accounted for under the cost method, which is periodically assessed for other-than-
temporary impairment. If the Company determines that an other-than-temporary impairment has occurred, TiVo will write-down the investment to its fair
value. The fair value of a cost method investment is not estimated if there are no identified events or changes in circumstances that may have a significant
adverse effect on the fair value of the investment. However, if such significant adverse events were identified, the Company would estimate the fair value of
its cost method investment considering available information at the time of the event, such as pricing in recent rounds of financing, current cash position,
earnings and cash flow forecasts, recent operational performance and any other readily available data. The carrying amount of the Company's cost method
investments was $3.4 million as of January 31, 2010. The Company had no cost method investments as of January 31, 2009.
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