TiVo 2015 Annual Report Download - page 45

Table of Contents
Interest income and other, net
For the year ended
December 31, 2014 , Interest income and other, net increased compared to the prior year primarily due to the release of a $1.2
million contingent liability which was assumed in a prior acquisition.
(Loss) income on interest rate swaps
We have not designated any of our interest rate swaps as hedges for accounting purposes and therefore changes in the fair value of our interest
rate swaps are not offset by changes in the fair value of the related hedged item in our Consolidated Statements of Operations (see Note 9 to the
Consolidated Financial Statements included in Part IV of this Annual Report on Form 10 - K , which is incorporated herein by reference). We generally utilize
interest rate swaps to convert the interest rate on a portion of our floating interest rate loans to a fixed interest rate. Under the terms of our interest rate
swaps, we generally receive a floating rate of interest and pay a fixed rate of interest. When there is an increase in expected future London Interbank
Offering Rate ("LIBOR"), we generally will have a gain when adjusting our interest rate swaps to fair value. When there is a decrease in expected future
LIBOR, we generally will have a loss when adjusting our interest rate swaps to fair value.
Loss on debt extinguishment and Loss on debt modification
The July 2014 issuance of the Senior Secured Credit Facility and the subsequent repayment of a previous credit facility were accounted for
partially as a debt extinguishment and partially as a debt modification. Creditors in the previous credit facility that elected not to participate in the Senior
Secured Credit Facility were extinguished. The Consolidated Statements of Operations for the year ended December 31, 2014 includes a $5.2 million Loss on
debt extinguishment related to unamortized debt issuance costs and unamortized debt discount for those creditors. Additionally, debt issuance costs of
$3.8 million related to the issuance of the Senior Secured Credit Facility to creditors from the previous credit facility were recognized as a Loss on debt
modification in the Consolidated Statements of Operations for the year ended December 31, 2014 .
The April 2013 issuance of a previous Term Loan B
- 3 and the subsequent repayment of a previous Term Loan B - 2 were accounted for partially as a
debt extinguishment and partially as a debt modification. Creditors in Term Loan B - 2 that elected not to participate in Term Loan B - 3 were extinguished. The
Consolidated Statements of Operations for the year ended December 31, 2013 includes a $2.8 million Loss on debt extinguishment related to unamortized
debt issuance costs and unamortized debt discount for those creditors. Additionally, debt issuance costs of $1.0 million related to the issuance of Term
Loan B
- 3 were recognized as a Loss on debt modification in the Consolidated Statements of Operations for the year ended December 31, 2013 .
Income tax expense
We recorded Income tax expense for the year ended December 31, 2014 of $19.7 million , which primarily consists of $17.2 million of foreign
withholding taxes, $3.7 million related to previously unrecognized tax benefits, $1.1 million of state income taxes and $0.9 million of foreign income taxes,
partially offset by $2.0 million from the change in deferred tax liabilities and $1.2 million of foreign deferred tax asset adjustments.
We recorded Income tax expense for the year ended
December 31, 2013 of $1.5 million , which primarily consists of $15.0 million of foreign
withholding taxes, $0.3 million of state income taxes and $0.2 million of foreign income taxes, reduced by $13.0 million from the release of unrecognized tax
benefits and $1.0 million from the change in our deferred tax liabilities.
Loss from discontinued operations, net of tax
Discontinued operations for the year ended
December 31, 2014 includes the DivX and MainConcept businesses and the Nowtilus business. The
loss from discontinued operations for the year ended December 31, 2014 is primarily due to the loss on the sale of the DivX, MainConcept and Nowtilus
businesses.
Discontinued operations for the year ended December 31, 2013 , includes the DivX and MainConcept businesses, the Rovi Entertainment Store
business, the Consumer Web business, the Nowtilus business, expenses related to settling a patent claim against the Roxio Consumer Software business
for the period prior to the business being sold and expenses we recorded for indemnification claims related to another former software business which was
disposed of in 2008. The loss from discontinued operations for the year ended
December 31, 2013 , is primarily due to recording a $64.9 million impairment
charge to the goodwill and intangible assets of the DivX and MainConcept businesses, a $73.1 million impairment charge to the assets
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