iRobot 2011 Annual Report Download - page 90

Form 10-K
Net cash used in investing activities for the fiscal year ended December 31, 2011 was $17.2 million,
representing a decrease of $4.4 million compared to the $21.6 million of net cash used in investing activities for
the fiscal year ended January 1, 2011. This decrease 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 $4.2 million in 2011,
compared to the purchase of investments, net of the proceeds from the sale of investments, of $9.0 million
in 2010; and
• The purchase of property and equipment of $13.0 million in 2011, compared to $12.6 million in 2010,
primarily due to an increase in self-constructed and demonstration assets, an increase in leasehold
improvements associated with expansion of the office space at our headquarters facility, and the upgrade
of our ERP system in 2011.
Net cash provided by financing activities for the fiscal year ended December 31, 2011 was $19.4 million, an
increase of $10.5 million compared to the $8.9 million of net cash provided by financing activities for the fiscal
year ended January 1, 2011. The increase is due primarily to an increase in proceeds from stock option exercises
of $6.8 million and an increase in the tax benefit associated with excess stock-based compensation deductions of
$4.3 million.
Working Capital Facilities
Credit 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. As of December 31, 2011, the total amount available for
borrowing under our credit facility was $75.0 million and the full amount was available for borrowing. The
interest on loans under our credit facility accrues at a rate between LIBOR plus 1% and LIBOR plus 1.5%, based
on our ratio of indebtedness to Adjusted EBITDA, and the credit facility termination date is June 30, 2014.
As of December 31, 2011, we had no outstanding borrowings 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.
In addition, we are 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, our obligations under the credit facility may be accelerated.
As of December 31, 2011, we were in compliance with all covenants under the revolving credit facility.
Letter of Credit Facility
On January 4, 2011, we entered into a revolving letter of credit facility with Bank of America, N.A. The
credit facility is available to fund letters of credit on our behalf up to an aggregate outstanding amount of
$5 million. We may terminate at any time, subject to proper notice, or from time to time permanently reduce the
amount of the credit facility.
We pay a fee on outstanding letters of credit issued under the credit facility at a rate between LIBOR plus
1% and LIBOR plus 1.5% per annum, based on our ratio of indebtedness to Adjusted EBITDA. In addition, we
pay a fee equal to 0.25% per annum of the actual daily amount by which the credit facility exceeds the aggregate
undrawn amount of all outstanding letters of credit under the credit facility plus the aggregate of all
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