iRobot 2011 Annual Report Download - page 107

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iROBOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
period. The fair value of the Company’s bond investment is included in short term investments in its consolidated
balance sheet.
Recent Accounting Pronouncements
In May 2011, the FASB issued amended guidance on fair value measurement and related disclosures. The
new guidance clarifies the concepts applicable for fair value measurement of non-financial assets and requires
the disclosure of quantitative information about the unobservable inputs used in a fair value measurement. This
guidance will be effective for reporting periods beginning after December 15, 2011, and will be applied
prospectively. The Company does not anticipate a material impact on its consolidated financial statements as a
result of the adoption of this amended guidance.
In June 2011, the FASB amended its accounting guidance on the presentation of other comprehensive
income (OCI) in an entity’s financial statements. The amended guidance eliminates the option to present the
components of OCI as part of the statement of changes in shareholders equity and provides two options for
presenting OCI: in a statement included in the income statement or in a separate statement immediately following
the income statement. The amendments do not change the guidance for the items that have to be reported in OCI
or when an item of OCI has to be moved into net income. For public entities, the amendments are effective for
fiscal years, and interim periods within those years, beginning after December 15, 2011. The Company does not
anticipate that its adoption of this guidance will have a material impact on its consolidated results.
In September 2011, the FASB issued updated guidance on the periodic testing of goodwill for impairment.
The updated guidance gives companies the option to perform a qualitative assessment to determine whether it is
more likely than not that the fair value of a reporting unit is less than its carrying amount. The amendment is
intended to reduce the cost and complexity of the annual goodwill impairment test by providing entities an option
to perform a qualitative assessment to determine whether further impairment testing is necessary. The updated
accounting guidance is effective for fiscal years beginning after December 15, 2011, with early adoption
permitted. The Company elected to adopt the updated guidance in 2011. The adoption of this guidance did not
impact its consolidated financial statements.
From time to time, new accounting pronouncements are issued by FASB that are adopted by the Company
as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently
issued standards, which are not yet effective, will not have a material impact on the Company’s consolidated
financial statements upon adoption.
3. Inventory
Inventory consists of the following at:
December 31,
2011
January 1,
2011
(In thousands)
Raw materials ................................................. $ 7,769 $ 6,723
Work in process ............................................... — 27
Finished goods ................................................ 23,320 20,410
$31,089 $27,160
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