iRobot 2011 Annual Report Download - page 109

iROBOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
6. Accrued Expenses
Accrued expenses consist of the following at:
December 31,
2011
January 1,
2011
(In thousands)
Accrued warranty .............................................. $10,306 $ 9,284
Accrued direct fulfillment costs ................................... 1,907 2,405
Accrued rent .................................................. 726 592
Accrued sales commissions ...................................... 411 432
Accrued accounting fees ........................................ 354 439
Accrued other ................................................. 3,484 2,638
$17,188 $15,790
7. Revolving Line of Credit
The Company has an unsecured revolving credit facility with Bank of America, N.A., which is available to
fund working capital and other corporate purposes. As of December 31, 2011, the total amount available for
borrowing under its credit facility was $75.0 million and the full amount was available for borrowing. The
interest on loans under the credit facility will accrue, at a rate between LIBOR plus 1% and LIBOR plus 1.5%
based on the Company’s ratio of indebtedness to Adjusted EBITDA. The credit facility will terminate and all
amounts outstanding thereunder will be due and payable in full on June 14, 2014.
As of December 31, 2011, the Company had no borrowings under its working capital line of credit. This
credit facility contains customary terms and conditions for credit facilities of this type, including restrictions on
the Company’s 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, the
Company’s stock, and consolidate or merge with other entities.
In addition, the Company is required to meet certain financial covenants customary with this type of
agreement, including maintaining a minimum specified consolidated net worth, a minimum ratio of indebtedness
to Adjusted EBITDA, and a minimum specified interest coverage ratio.
This credit facility contains customary events of default, including for payment defaults, breaches of
representations, breaches of affirmative or negative covenants, cross defaults to other material indebtedness,
bankruptcy and failure to discharge certain judgments. If a default occurs and is not cured within any applicable
cure period or is not waived, the Company’s obligations under the credit facility may be accelerated.
As of December 31, 2011, the Company was in compliance with all covenants under its credit facility.
8. Common Stock
Common stockholders are entitled to one vote for each share held and to receive dividends if and when
declared by the Board of Directors and subject to and qualified by the rights of holders of the preferred stock.
Upon dissolution or liquidation of the Company, holders of common stock will be entitled to receive all available
assets subject to any preferential rights of any then outstanding preferred stock.
9. Stock Option Plans and Stock-Based Compensation
The Company has options outstanding under three stock incentive plans: the 1994 Stock Option Plan (the
“1994 Plan”), the 2004 Stock Option and Incentive Plan (the “2004 Plan”) and the 2005 Stock Option and
Incentive Plan (the “2005 Plan” and together with the 1994 Plan and the 2004 Plan, the “Plans”). The 2005 Plan
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