iRobot 2005 Annual Report Download - page 78

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iROBOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
Activity related to the warranty accrual was as follows:
Fiscal Year Ended December 31,
2005 2004 2003
(In thousands)
Balance at beginning of period ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $1,398 $1,522 $ 8
Provision ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 4,133 1,278 1,514
Warranty usage(*) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (3,500) (1,402) Ì
Balance at end of period ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $2,031 $1,398 $1,522
(*) Warranty usage includes the pro rata expiration of product warranties unutilized.
Restricted Cash
At December 31, 2004, cash totaling $0.1 million was pledged as security for outstanding letters of credit
or certain operating leases and was included as a component of other assets in the accompanying balance
sheets. There was no restricted cash at December 31, 2005.
14. Employee Benefits
The Company sponsors a retirement plan under Section 401(k) of the Internal Revenue Code (the
""Retirement Plan''). All Company employees, with the exception of temporary and contract employees are
eligible to participate in the Retirement Plan after satisfying age and length of service requirements prescribed
by the plan. Under the Retirement Plan, employees may make tax-deferred contributions, and the Company,
at its sole discretion, and subject to the limits prescribed by the IRS, may make either a nonelective
contribution on behalf of all eligible employees or a matching contribution on behalf of all plan participants.
The Company elected to make a matching contribution of approximately $0.5 million, $0.3 million and
$0.2 million for the plan years ended December 31, 2005, 2004 and 2003 (""Plan-Year 2005,'' ""Plan-Year
2004'' and ""Plan-Year 2003''), respectively. The employer contribution represents a matching contribution at
a rate of 50% of each employee's first six percent contribution. Accordingly, each employee participating
during Plan-Year 2005, Plan-Year 2004 and Plan-Year 2003 is entitled up to a maximum of three percent of
his or her eligible annual payroll. The employer matching contribution for Plan-Year 2005 is included in
accrued compensation.
15. Industry Segment, Geographic Information and Significant Customers
The Company operates in two reportable segments, the consumer business and government and industrial
business. The nature of products and types of customers for the two segments vary significantly. As such, the
segments are managed separately.
Consumer
The Company's consumer business offers products through a network of retail businesses throughout the
U.S. and to certain countries through international distributors. The Company's consumer segment includes
mobile robots used in the maintenance of domestic households sold primarily to retail outlets.
Government and Industrial
The Company's government and industrial division offers products through a small U.S. government-
focused sales force, while products are sold to a limited number of countries other than the United States
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