TiVo 2010 Annual Report Download - page 18

As of January 31,
2011 2010 2009
DIRECTV 15% 12% 18%
Best Buy —% 17% 19%
Seven/Hybrid TV —% 22% 7%
Comcast 17% 27% 25%
RCN 10% —% —%
Other customers 58% 22% 31%
Total accounts receivable 100% 100% 100%
The Company does not have a long-term written supply agreement with Broadcom, the sole supplier of the system controller for its DVR. In instances
where a supply agreement does not exist and suppliers fail to perform their obligations, the Company may be unable to find alternative suppliers or deliver its
products and services to its customers on time if at all.
The TiVo service is enabled through the use of a DVR manufactured for TiVo by a third-party contract manufacturer. The Company also relies on third
parties with whom it outsources supply-chain activities related to inventory warehousing, order fulfillment, distribution, and other direct sales logistics. The
Company cannot be sure that these parties will perform their obligations as expected or that any revenue, cost savings, or other benefits will be derived from
the efforts of these parties. If any of these parties breaches or terminates their agreement with TiVo or otherwise fails to perform their obligations in a timely
manner, the Company may be delayed or prevented from commercializing its products and services.
Recent Accounting Pronouncements
In January 2010, the FASB issued guidance that requires new disclosures for fair value measurements and provides clarification for existing
disclosure requirements. The guidance is effective for interim and annual periods beginning after December 15, 2009, except for gross presentation of activity
in Level 3 which is effective for annual periods beginning after December 15, 2010, and for interim periods in those years. The Company adopted the
guidance for new disclosures for fair value measurements and clarification for existing disclosure requirements as of February 1, 2010 and there was no
material impact on its consolidated financial statements. TiVo does not expect a material impact on its consolidated financial statements when it adopts the
guidance for Level 3 activity. See Note 4, "Fair Value" for additional information on the fair value of financial instruments.
In October 2009, the FASB issued a new accounting standards update which provides guidance for arrangements with multiple deliverables.
Specifically, the new accounting standards update requires an entity to allocate arrangement consideration at the inception of an arrangement to all of its
deliverables based on their relative selling prices. In addition, the new accounting standards update eliminates the use of the residual method of allocation and
requires the relative-selling-price method in all circumstances in which an entity recognizes revenue for an arrangement with multiple deliverables. In October
2009, the FASB also issued a new accounting standards update which changes revenue recognition for tangible products containing software and hardware
elements. Specifically, if certain requirements are met, revenue arrangements that contain tangible products with software elements that are essential to the
functionality of the products are scoped out of the existing software revenue recognition accounting guidance and will be accounted for under the multiple-
element arrangements revenue recognition guidance discussed above. Both standards will be effective for TiVo in the first quarter of fiscal year 2012. The
Company does not expect a significant impact from the adoption of this new accounting standards.
3. CASH AND INVESTMENTS
Cash, cash equivalents, short-term investments, and long-term investments consisted of the following:
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