TiVo 2009 Annual Report Download - page 87

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Table of Contents
7. PURCHASED TECHNOLOGY, CAPITALIZED SOFTWARE, AND INTANGIBLE ASSETS, NET
Purchased technology, capitalized software, and intangible assets, net consists of the following:
January 31, 2010 January 31, 2009
Gross
Accumulated
Amortization Net Gross
Accumulated
Amortization Net
(In thousands)
Purchased technology $ 1,500 $ (1,500) $ — $ 1,500 $ (1,333) $ 167
Capitalized software 1,951 (1,951) — 1,951 (1,581) 370
Intellectual property rights 18,615 (9,050) 9,565 16,584 (6,524) 10,060
Purchased technology, capitalized software, and intangible assets $ 22,066 $ (12,501) $ 9,565 $ 20,035 $ (9,438) $ 10,597
During the fiscal year ended January 31, 2010 and 2009 we acquired purchased technology, capitalized software, and intangible asset of $2.0 million
and $318,000, respectively with a weighted average life of 7 years.
The total expected future annual amortization expense related to purchased technology, capitalized software, and intangible assets is calculated on a
straight-line basis, using the useful lives of the assets, which range from three to five years for purchased technology and capitalized software and five to
seven years for intellectual property rights. Amortization expense for the fiscal years ended January 31, 2010, 2009, and 2008, was $3.1 million, $ 3.2 million,
and $3.2 million, respectively. Estimated future annual amortization expense is set forth in the table below:
Fiscal Year Ending January 31,
Estimated Annual
Amortization
Expense
(In thousands)
2011 $ 2,609
2012 2,609
2013 2,143
2014 1,479
2015 336
Thereafter 389
Total $ 9,565
8. ACCRUED LIABILITIES
Accrued liabilities consist of the following:
As of January 31,
2010 2009
(In thousands)
Compensation and vacation $ 12,084 $ 10,229
Consumer rebates — 23
Marketing and promotions 2,481 2,740
Redeemable gift certificates for subscriptions 2,814 3,120
Other 7,407 8,942
Total accrued liabilities $ 24,786 $ 25,054
9. RESTRUCTURING CHARGES
During the fourth quarter of fiscal year 2009, the Company's management initiated a restructuring plan to reduce operational expenses through a
reduction of 37 employees, as the Company managed through the challenges presented by a difficult economic climate and a rapidly evolving retail consumer
market.
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