TiVo 2009 Annual Report Download - page 86

Download and view the complete annual report

Please find page 86 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
Cash equivalents and available-for-sale marketable securities (including auction rate securities) are reported at their fair value. Additionally, carrying
amounts of certain of the Company's financial instruments including accounts receivable, accounts payable, and accrued expenses approximate their fair value
because of their short maturities.
5. 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.
In the fiscal year ended January 31, 2009, the Company utilized $116,000 in trade credits. Additionally, the Company wrote off another $522,000 in
trade credits based on lower expected purchases of advertising media and other services that can be applied against the credits prior to their expiration.
In the fiscal year ended January 31, 2010, the Company utilized $90,000 in trade credits. As of January 31, 2010, the Company had $715,000 in trade
credits, recorded on the consolidated balance sheet. The credits expected to be utilized in the next twelve months in the amount of $100,000 are included in
prepaid expenses and other current assets and the remaining $615,000 is included in other long-term assets in the Company's consolidated balance sheet at
January 31, 2010. 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 2015.
6. PROPERTY AND EQUIPMENT, NET
Property and equipment, net consists of the following:
January 31, 2010 January 31, 2009
(In thousands)
Furniture and fixtures $ 3,602 $ 3,599
Computer and office equipment 17,712 16,559
Lab equipment 3,392 2,906
Leasehold improvements 8,443 8,482
Capitalized internal use software 17,883 14,624
Total property and equipment 51,032 46,170
Less: accumulated depreciation and amortization (40,934) (35,885)
Property and equipment, net $ 10,098 $ 10,285
Depreciation and amortization expense for property and equipment for the fiscal years ended January 31, 2010, 2009, and 2008 was $6.1 million, $6.5
million, and $7.1 million, respectively.
82