iRobot 2010 Annual Report Download - page 100

Download and view the complete annual report

Please find page 100 of the 2010 iRobot annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 132

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132

performed based on the percentage that incurred costs compare to estimated total costs utilizing the most recent
estimates of costs and funding. Changes in job performance, job conditions, and estimated profitability, including
those arising from final contract settlements and government audit, may result in revisions to costs and income and
are recognized in the period in which the revisions are determined. Since many contracts extend over a long period
of time, revisions in cost and funding estimates during the progress of work have the effect of adjusting earnings
applicable to past performance in the current period. When the current contract estimate indicates a loss, a provision
is made for the total anticipated loss in the current period. Revenue earned in excess of billings, if any, is recorded as
unbilled revenue. Billings in excess of revenue earned, if any, are recorded as deferred revenue.
Allowance for Doubtful Accounts
The Company maintains an allowance for doubtful accounts to provide for the estimated amount of accounts
receivable that may not be collected. The allowance is based upon an assessment of customer creditworthiness,
historical payment experience and the age of outstanding receivables.
Activity related to the allowance for doubtful accounts was as follows:
January 1,
2011
January 2,
2010
December 27,
2008
Fiscal Year Ended
(In thousands)
Balance at beginning of period ....................... $90 $65 $ 65
Provision ....................................... — 32 1,005
Deduction(*)..................................... (2) (7) (1,005)
Balance at end of period ............................ $88 $90 $ 65
(*) Deductions related to allowance for doubtful accounts represent amounts written off against the allowance, less
recoveries.
Inventory
Inventory is stated at the lower of cost or net realizable value with cost being determined using the first-in, first-
out (FIFO) method. The Company maintains a reserve for inventory items to provide for an estimated amount of
excess or obsolete inventory.
Activity related to the inventory reserve was as follows:
January 1,
2011
January 2,
2010
December 27,
2008
Fiscal Year Ended
(In thousands)
Balance at beginning of period ....................... $3,713 $ 2,770 $ 441
Provision ....................................... 677 2,117 2,622
Deduction(*)..................................... (1,554) (1,174) (293)
Balance at end of period ............................ $2,836 $ 3,713 $2,770
(*) Deductions related to inventory reserve accounts represent amounts written off against the reserve.
54
iROBOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)