TiVo 2015 Annual Report Download - page 76

Table of Contents
Marketable securities are considered available
- for - sale and are reported at fair value in the Consolidated Balance Sheets. Realized gains and losses
on marketable securities are calculated based on the specific identification method and are included in Interest income and other, net in the Consolidated
Statements of Operations. Interest income from marketable securities are included in Interest income and other, net in the Consolidated Statements of
Operations
.
Unrealized gains and losses, net of applicable taxes, are reported in Accumulated other comprehensive loss in the Consolidated Balance Sheets
.
The Company monitors its investment portfolio for potential impairment. When the carrying amount of an investment in debt securities exceeds its fair
value and the decline in fair value is determined to be other - than - temporary (i.e., when the Company does not intend to sell the security and it is not more -
likely - than - not that the Company will be required to sell the security prior to the anticipated recovery of its amortized cost basis), an impairment associated
with the credit loss is recorded in Interest income and other, net in the Consolidated Statements of Operations and the remainder, if any, is recorded in Other
comprehensive loss in the Consolidated Statements of Comprehensive Loss.
Allowance for Doubtful Accounts
The Company performs ongoing credit evaluations of its customers. The Company reviews its accounts receivable by aging category to identify
significant customers for potential collection issues and a specific allowance for doubtful accounts is recorded when warranted by specific customer
circumstances, such as in the case of a bankruptcy filing or deterioration in the customer's operating results or financial position. If there are subsequent
changes in circumstances related to the specific customer, adjustments to recoverability estimates are recorded. For accounts receivable not specifically
reserved, an allowance for doubtful accounts is recorded based on historical loss experience. The past due status of a receivable is based on the
contractual payment terms.
Joint Ventures and Equity
- Method Investments
Investments in entities over which the Company has the ability to exercise significant influence, but does not hold a controlling interest, are
accounted for using the equity method. The Company records its proportionate share of income or loss in Interest income and other, net in the
Consolidated Statements of Operations
.
Long
- Lived Assets, including Property and Equipment and Finite - Lived Intangible Assets
Property and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation and amortization is recognized on a
straight - line basis over the estimated useful lives of the respective assets. Computer equipment and software are depreciated over three years. Furniture
and fixtures are depreciated over five years. Leasehold improvements are amortized on a straight - line basis over the shorter of the asset's useful life or the
remaining lease term.
Intangible assets with finite lives are amortized on a straight
- line basis over the estimated economic life of the asset, which generally range from
two to 18 years at the date of acquisition.
Long
- lived assets, including intangible assets with finite lives, are assessed for potential impairment whenever events or changes in circumstances
indicate the carrying amount of an asset group may not be recoverable. The recoverability of an asset group to be held and used is assessed based on the
estimated undiscounted future cash flows expected to result from the use and eventual disposition of the asset group. If the undiscounted future cash
flows are less than the carrying amount of an asset group, the asset group is impaired. The amount of impairment, if any, is measured as the difference
between the carrying amount of the asset group and its fair value, which is generally estimated using an income approach.
Software Development Costs
Costs are capitalized to acquire or develop software subsequent to establishing technological feasibility for the software, which is generally on
completion of a working prototype that has been certified as having no critical bugs and is a release candidate or when an alternative future use exists.
Capitalized software development costs are amortized using the greater of the amortization on a straight
- line basis or the ratio that current gross revenues
for a product bear to the total current and anticipated future gross revenues for that product. The estimated useful life for capitalized software development
costs is generally five years or less. To date, software development costs incurred between completion of a working prototype and general availability of
the related product have not been material.
F - 10