iRobot 2012 Annual Report Download - page 104

iROBOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
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to determine if facts and circumstances have changed in a manner that would require a change in accounting methodology.
Additionally, the Company regularly evaluates whether or not these investments have been impaired by considering such
factors as economic environment, market conditions, operational performance and other specific factors relating to the
businesses underlying the investments. If any such impairment is identified, a reduction in the carrying value of the investments
would be recorded at that time. Since the Company believes the fair value of its investments is greater than the carrying value
of its investments, it has not impaired these investments.
6. Accrued Expenses
Accrued expenses consist of the following at:
December 29,
2012 December 31,
2011
(In thousands)
Accrued warranty $ 6,057 $ 10,306
Accrued direct fulfillment costs 999 1,907
Accrued rent 696 726
Accrued sales commissions 475 411
Accrued accounting fees 155 354
Uncertain tax positions - short-term 2,884 957
Accrued other 5,261 2,527
$ 16,527 $ 17,188
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 29, 2012, 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 29, 2012, the Company had no borrowings under its revolving credit facility. 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 29, 2012, 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 four stock incentive plans: the 1994 Stock Option Plan (the “1994 Plan”),
the 2004 Stock Option and Incentive Plan (the “2004 Plan”), the 2005 Stock Option and Incentive Plan (the "2005 Plan") and
the Evolution Robotics, Inc. 2007 Stock Plan (the "2007 Plan" and together with the 1994 Plan, the 2004 Plan and the 2005
Plan, the “Plans”). The 2005 Plan is the only one of the four plans under which new awards may currently be granted. Under