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Basis of Presentation and Significant Accounting Policies
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3 Months Ended |
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Mar. 31, 2015
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| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
| Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Description of Business Rovi Corporation (the “Company”) is focused on powering the discovery and personalization of digital entertainment. The Company provides a broad set of integrated solutions that are embedded in its customers' products and services, connecting consumers with entertainment. Content discovery solutions include interactive program guides (“IPGs”), search and recommendation services, cloud data services and the Company's extensive database of "Metadata" (i.e., descriptive information, promotional images or other content that describes or relates to television shows, videos, movies, music, books, games or other entertainment content). In addition to offering Company developed IPGs, customers may also license the Company's patents and deploy their own IPG or a third party IPG. The Company also offers advertising and analytics services. The Company's solutions are deployed globally in the cable, satellite, consumer electronics, entertainment, media and online distribution markets. Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared by the Company in accordance with the rules and regulations of the Securities and Exchange Commission. Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") have been condensed or omitted in accordance with such rules and regulations. However, the Company believes the disclosures made are adequate to make the information not misleading. In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements reflect all adjustments, consisting only of normal recurring adjustments, which in the opinion of management, are considered necessary to present fairly the results for the periods presented. The information contained in this Quarterly Report on Form 10-Q should be read in conjunction with the audited financial statements and notes thereto and other disclosures contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The Condensed Consolidated Statements of Operations and the Condensed Consolidated Statements of Cash Flows for the interim periods presented are not necessarily indicative of the results to be expected for the year ending December 31, 2015, for any future year, or for any other future interim period. The accompanying Condensed Consolidated Financial Statements include the accounts of Rovi Corporation and its consolidated subsidiaries after the elimination of intercompany accounts and transactions. Use of Estimates The preparation of Condensed Consolidated Financial Statements in conformity with US GAAP requires management to make estimates, assumptions and judgments that affect the reported amounts of assets and liabilities and related disclosures at the date of the financial statements and reported results of operations during the reporting period. On an ongoing basis, the Company evaluates its estimates, including those related to revenue recognition, equity-based compensation, goodwill and intangible asset impairment, long-lived asset impairment and income taxes. Actual results may differ from those estimates. Concentration of Risk For the three months ended March 31, 2015 and 2014, 12% and 11%, respectively, of the Company's revenue was related to its contract with DIRECTV. Substantially all of the Company's revenue from DIRECTV is reported in the Intellectual Property Licensing segment. For the three months ended March 31, 2015 and 2014, 23% and 21%, respectively, of the Company's revenue was related to its contracts with Comcast, DIRECTV and Time Warner Cable. The contracts with DIRECTV and Time Warner Cable expire in the second half of 2015 and the contract with Comcast expires in the first half of 2016. Recent Accounting Pronouncements In April 2015, the Financial Accounting Standards Board (the "FASB") amended its existing accounting standards for the classification of debt issuance costs in the statement of financial position. The amendments require that debt issuance costs related to a recognized debt liability be presented as a deduction from the carrying amount of the debt obligation. The Company expects to retrospectively apply the amendments in the first quarter of 2016. As of March 31, 2015 and December 31, 2014, the Company presented $14.6 million and $7.6 million, respectively, of note issuance costs in Other long-term assets in the Condensed Consolidated Balance Sheets. In May 2014, the FASB amended its existing accounting standards for revenue recognition. The amendments provide enhancements to the quality and consistency of how revenue is recognized while also improving comparability between the financial statements of companies applying US GAAP and International Financial Reporting Standards. The core principle of the amended standard is for an entity to recognize revenue to depict the transfer of promised goods or services to customers in amounts that reflect the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments will be effective for the Company in the first quarter of 2017 and may be applied on a full retrospective or modified retrospective approach. Early adoption is not permitted. The Company is currently evaluating the impact these transition alternatives and amendments will have on its Condensed Consolidated Financial Statements. In April 2014, the FASB issued guidance which modified the criteria for identifying a discontinued operation. The guidance limits the definition of a discontinued operation to the disposal of a component or group of components that is disposed of or is classified as held for sale and represents a strategic shift that has, or will have, a major effect on an entity's operations and financial results. Application of the modified criteria beginning on January 1, 2015 did not have a material impact on the Condensed Consolidated Financial Statements. |