TiVo 2011 Annual Report Download - page 81

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Table of Contents
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, 2012, 2011 and 2010, the Company utilized trade credits in the amount of $0, $96,000, and $90,000, 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. During the year ended January 31, 2012, the Company
wrote-off the remaining credits of $619,000 based on lower expected purchases of advertising, media, and other services.
6. PROPERTY AND EQUIPMENT, NET
Property and equipment, net consists of the following:
As of January 31,
2012 2011
(In thousands)
Furniture and fixtures $ 4,213 $ 3,788
Computer and office equipment 18,039 18,720
Lab equipment 4,387 3,713
Leasehold improvements 8,846 8,550
Capitalized internal use software 20,876 20,140
Total property and equipment 56,361 54,911
Less: accumulated depreciation and amortization (47,170) (44,682)
Property and equipment, net $ 9,191 $ 10,229
Depreciation and amortization expense for property and equipment for the fiscal years ended January 31, 2012, 2011, and 2010 was $6.1 million , $6.4
million , and $6.1 million , respectively.
7. PURCHASED TECHNOLOGY, CAPITALIZED SOFTWARE, AND INTANGIBLE ASSETS, NET
Purchased technology, capitalized software, and intangible assets, net consists of the following:
As of January 31,
2012 2011
Gross Accumulated
Amortization Net Gross Accumulated
Amortization Net
(In thousands)
Purchased technology $ 1,500 $ (1,500) $ — $ 1,500$ (1,500) $ —
Capitalized software 1,951 (1,951) — 1,951 (1,951) —
Intellectual property rights 19,023 (14,346) 4,677 18,615 (11,659) 6,956
Purchased technology, capitalized software, and intangible assets $ 22,474 $ (17,797) $ 4,677 $ 22,066 $ (15,110) $ 6,956
During the fiscal year ended January 31, 2012 the Company acquired purchased technology, capitalized software, and intangible assets of $408,000 with
a weighted average life of 44 months.
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 two to
seven years for intellectual property rights. Amortization expense for the fiscal years ended January 31, 2012, 2011, and 2010, was $2.7 million, $2.6 million,
and $3.1 million, respectively. Estimated future annual amortization expense is set forth in the
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