TiVo 2010 Annual Report Download - page 25

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events or circumstances indicating a potential impairment were identified as of January 31, 2011, or January 31, 2010.
Cash equivalents and available-for-sale marketable securities (including auction rate securities and asset-backed 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 years ended January 31, 2011, 2010, and 2009, the Company utilized trade credits in the amount of $96,000, $90,000, and $116,000,
respectively. Additionally, in the fiscal year ended January 31, 2009, 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.
As of January 31, 2011, the Company had $619,000 in trade credits, recorded on the consolidated balance sheet. The credits expected to be utilized in
the next twelve months in the amount of $50,000 are included in prepaid expenses and other current assets and the remaining $569,000 is included in other
long-term assets in the Company’s consolidated balance sheet at January 31, 2011. 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,
2011 2010
(In thousands)
Furniture and fixtures $ 3,788 $ 3,602
Computer and office equipment 18,720 17,712
Lab equipment 3,713 3,392
Leasehold improvements 8,550 8,443
Capitalized internal use software 20,140 17,883
Total property and equipment 54,911 51,032
Less: accumulated depreciation and amortization (44,682) (40,934)
Property and equipment, net $ 10,229 $ 10,098
Depreciation and amortization expense for property and equipment for the fiscal years ended January 31, 2011, 2010, and 2009 was $6.4 million, $6.1
million, and $6.5 million, respectively.
7. PURCHASED TECHNOLOGY, CAPITALIZED SOFTWARE, AND INTANGIBLE ASSETS, NET
Purchased technology, capitalized software, and intangible assets, net consists of the following:
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