iRobot 2010 Annual Report Download - page 113

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share closing price of the Company’s common stock on NASDAQ on July 2, 2010. These stock options will vest
100% on the first anniversary of the grant date.
On April 2, 2010, in connection with the appointment of a new member to its board of directors, the Company
granted a stock option exercisable for 40,000 shares of the Company’s common stock. On April 2, 2010, in
connection with his employment, the Company granted a senior vice president of product development a stock
option exercisable for 80,000 shares of the Company’s common stock and 20,000 restricted stock units. Addi-
tionally, on April 2, 2010, the Company granted to certain employees, including executive officers, an annual merit
grant of stock options totaling 520,750 shares of the Company’s common stock and 185,650 restricted stock units.
Each of the above stock options have a per share exercise price of $14.52, the closing price of the Company’s
common stock on NASDAQ on April 2, 2010. The stock options will vest 25% on the first anniversary of the grant
date and quarterly over the following three years, and the restricted stock units will vest 25% on each anniversary of
the grant date.
10. Income Taxes
The components of income tax expense were as follows:
2010 2009 2008
(In thousands)
Current
Federal .......................................... $14,353 $ 5,019 $ 2,137
State ............................................ 1,685 369 231
Foreign .......................................... 112 42 10
Total current tax provision .......................... 16,150 5,430 2,378
Deferred
Federal ............................................ (4,196) (3,404) (2,009)
State .............................................. (3,494) — —
Total deferred tax provision ......................... (7,690) (3,404) (2,009)
Total income tax provision .......................... $ 8,460 $ 2,026 $ 369
No provision has been made for deferred taxes on undistributed earnings of non-U.S. subsidiaries as these
earnings have been indefinitely reinvested. Determination of the amount of unrecognized deferred tax liability on
these undistributed earnings is not practicable. As of January 1, 2011, a deferred tax liability has not been
established for approximately $1.0 million of cumulative undistributed earnings of non-U.S. subsidiaries, as the
Company plans to keep these amount permanently reinvested overseas.
During the quarter ending January 2, 2010, the Company recorded an out-of-period adjustment in the income
tax provision of $0.2 million to correct an error with respect to the earnings of the Company’s India subsidiary. The
Company believes that this adjustment did not have a material impact to its full year 2009 results. In addition,
management does not believe the adjustment is material to the amounts reported by the Company in previous
periods.
67
iROBOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Form 10-K