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Table of Contents
fiscal year ended January 31, 2012 as compared to the same prior year periods was due to interest associated with the convertible senior notes that were issued
during the quarter ended April 30, 2011. We had no long-term debt in the fiscal years ended January 31, 2011 and 2010. Additionally, during the fiscal year
ended January 31, 2012, we determined the fair value of our long term cost method investment was below its carrying value and we recorded a $3.4 million
other-than-temporary impairment.
Benefit (provision) for income taxes. Income tax benefit (provision) was $(807,000), $(164,000) and $1.0 million, in fiscal years 2012, 2011, and 2010,
respectively. The income tax expense in fiscal years 2012 and 2011 relates primarily to state income taxes, and foreign withholding taxes. The income tax
benefit in fiscal year 2010 is due to a refund of previously paid AMT as a result of changes in the tax code passed in November 2009 and refundable research
credits.
Liquidity and Capital Resources
We have financed our operations and met our capital expenditure requirements primarily from the proceeds from the sale of equity securities, issuance of
convertible senior notes, litigation proceeds, and cash flows from operations. Our cash resources are subject, in part, to the amount and timing of cash
received from our license agreements, subscriptions, deployment agreements, and hardware customers. As of January 31, 2012, we had $618.8 million of
cash, cash equivalents, and short-term investments. We believe our cash, cash equivalents and short-term investments, provide sufficient resources to fund
operations, capital expenditures, future repurchases of TiVo shares in connection with our previously announced share repurchase program, and working
capital needs through the next twelve months.
On March 10, 2011, TiVo issued convertible notes with the aggregate principal amount of $150 million and received approximately $144.5 million in
net proceeds. On March 30, 2011, TiVo issued an additional $22.5 million aggregate principal notes and received approximately $21.8 million in proceeds
pursuant to the exercise of the initial purchaser's overallotment option. The notes pay interest semi-annually at a rate of 4.00% per year and mature on March
15, 2016.
On May 2, 2011, we received an initial payment of $300 million in cash (with the remaining $200 million to be paid in six equal annual installments of
$33.3 million) from DISH Network in connection with the settlement and patent license we entered into with EchoStar and DISH on April 29, 2011 to settle
and dismiss all litigation and claims between the companies. For additional information about our settlement and license with EchoStar and DISH, please
refer to Note 18. "DISH Network Corporation" of Notes to Consolidated Financial Statements included in Part II, Item 8 of this report.
Additionally, on January 4, 2012, we received $51.0 million in cash (with the remaining $164.0 million to be paid in installments after the end of each
calendar quarter in the amount of $5.0 million for the first four calendar quarters and approximately $6.5 million in subsequent calendar quarters through the
calendar quarter ending June 30, 2018) in connection with the settlement and patent license we entered into with AT&T on January 3, 2012 to settle and
dismiss all litigation and claims between the companies. For additional information about our settlement and license with AT&T Inc. please refer to Note 19.
"AT&T Inc."
Statement of Cash Flows Discussion
The following table summarizes our cash flow activities:
Fiscal Year Ended January 31,
2012 2011 2010
(in thousands)
Net cash provided by (used in) operating activities $ 239,201 $ (58,727) $ 9,580
Net cash provided by (used in) investing activities $ (318,757) $ 28,862 $ (140,386)
Net cash provided by financing activities $ 177,890 $ 30,195 $ 39,360
Net Cash Used in Operating Activities
During the fiscal year ended January 31, 2012 our net cash provided by operating activities was $239.2 million as compared to net cash used by
operating activities of $58.7 million during the same prior year period. This change in operating cash flow was largely attributed to our net income of $102.2
million combined with increased
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