iRobot 2011 Annual Report Download - page 115

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iROBOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
On April 1, 2011, in connection with the commencement of their employment, the Company granted five
employees stock options exercisable for an aggregate of 40,000 shares of the Company’s common stock and
19,000 restricted stock units. Additionally, on April 1, 2011, the Company granted to certain employees,
including executive officers, an annual merit grant of stock options totaling 281,150 shares of the Company’s
common stock and 141,575 restricted stock units. Each of the above stock options have a per share exercise price
of $33.48, the closing price of the Company’s common stock on NASDAQ on April 1, 2011. The stock options
will vest 25% on the first anniversary of the grant date and quarterly thereafter over the following three years.
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:
Fiscal Year Ended
December 31,
2011
January 1,
2011
January 2,
2010
(In thousands)
Current
Federal ........................................ $10,088 $14,353 $ 5,019
State .......................................... 1,600 1,685 369
Foreign ........................................ 196 112 42
Total current tax provision ...................... 11,884 16,150 5,430
Deferred
Federal .......................................... 2,166 (4,196) (3,404)
State ............................................ (700) (3,494) —
Total deferred tax provision ..................... 1,466 (7,690) (3,404)
Total income tax provision ...................... $13,350 $ 8,460 $ 2,026
An immaterial provision has been made for deferred taxes on undistributed earnings of non-U.S.
subsidiaries that the Company expects to distribute in 2012. For the remaining undistributed earnings of non-U.S.
subsidiaries, no provision has been made for deferred taxes 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 December 31, 2011, a deferred tax liability has not been established for approximately $0.1
million of cumulative undistributed earnings of non-U.S. subsidiaries, as the Company plans to keep these
amounts 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.
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