iRobot 2010 Annual Report Download - page 88

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• A decrease in cash of $2.0 million resulting from an increase in accounts receivable (including unbilled
revenue) of $1.1 million in 2010 versus an decrease of $0.9 million in 2009, primarily due to growth in
revenue partially offset by the impact of aggressive collections and a reduction in days sales outstanding;
• An increase in cash of $3.1 million resulting from a decrease in inventory of $5.2 million in 2010 versus a
decrease of $2.1 million in 2009, primarily due to increased demand for our home robot products;
• A decrease in cash of $1.3 million resulting from an increase current assets primarily due to an increase in
prepaid income taxes;
• A decrease in cash of $4.8 million resulting from an increase in accounts payable and accrued expenses of
$9.6 million in 2010 versus an increase of $14.4 million in 2009, primarily due to a general increase in
business activity and timing of payments to suppliers. In fiscal 2010 accounts payable was a source of cash,
but cash provided was $4.8 million less than in fiscal 2009;
• A decrease in cash of $2.8 million resulting from an increase in accrued compensation of $4.3 million in
2010 versus an increase of $7.1 million in 2009, primarily due to the impact of improving profitability on the
incentive compensation expense in 2009; and
• A decrease in cash of $1.7 million resulting from a decrease in deferred revenue and customers advances of
$0.4 million in 2010 compared to an increase of $1.3 million in 2009, primarily due to a contract
modification in 2010.
Net cash used in investing activities for the fiscal year ended January 1, 2011 was $21.6 million, representing
an increase of $9.1 million compared to the $12.5 million of net cash used in investing activities for the fiscal year
ended January 2, 2010. This increase in net cash used in investing activities was primarily driven by the following:
• Purchase of investments, net of the proceeds from the sale of investments, of $9.0 million in 2010 compared
to the purchase of investments of $5.0 million in 2009;
• The purchase of property and equipment of $12.6 million in 2010, compared to $5.0 million in 2009,
primarily due to an increase in self-constructed and demonstration assets, and tooling related to new
products in our government and industrial division and a new contract manufacturer in our home robots
division; and
• A reduction in net cash used in investing activities in 2010 associated with cash disbursed in 2009 to
complete the purchase of Nekton Research LLC of $2.5 million.
Net cash provided from financing activities for the fiscal year ended January 1, 2011 was $8.9 million, an
increase of $6.0 million compared to the $2.9 million of net cash provided by financing activities for the fiscal year
ended January 2, 2010. The increase is due primarily to an increase in proceeds from stock option exercises.
Working Capital Facility
We have an unsecured revolving credit facility with Bank of America, N.A., which is available to fund working
capital and other corporate purposes. The total amount available for borrowing under our credit facility is
$40.0 million. As of January 1, 2011, $38.1 million was available for borrowing. The interest on loans under
our credit facility will accrue, at our election, at either (i) the greater of the BBA LIBOR Daily Floating Rate or the
Prime Rate of Lender plus fifty (50) basis points, or (ii) the LIBOR rate plus 2.00%. The credit facility will
terminate and all amounts outstanding thereunder will be due and payable in full on June 5, 2012.
As of January 1, 2011, we had letters of credit outstanding of $1.9 million under our working capital line of
credit. This credit facility contains customary terms and conditions for credit facilities of this type, including
restrictions on our ability to incur or guaranty additional indebtedness, create liens, enter into transactions with
affiliates, make loans or investments, sell assets, pay dividends or make distributions on, or repurchase, our stock,
and consolidate or merge with other entities.
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