iRobot 2012 Annual Report Download - page 110

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iROBOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
60
The components of net deferred tax assets were as follows:
December 29,
2012
December 31,
2011
(In thousands)
Net deferred tax assets
Current deferred tax assets
Reserves and accruals $ 17,273 $ 15,697
Stock based compensation 1,784 —
Net operating loss carryforwards 2,470 —
Foreign tax credits 133 133
Valuation allowance (1,390) —
Total current deferred tax assets 20,270 15,830
Non-current deferred tax assets
Tax credits 4,780 3,027
Fixed assets 280 —
Stock based compensation 4,851 5,213
Net operating loss carryforwards 9,664 —
Valuation allowance (1,301) —
Total non-current deferred tax assets 18,274 8,240
Current deferred tax liabilities
Prepaids 649 486
Total current deferred tax liabilities 649 486
Non-current deferred tax liabilities
Intangible assets 10,019 127
Fixed assets — 1,986
Total non-current deferred tax liabilities 10,019 2,113
Total net deferred tax assets $ 27,876 $ 21,471
In fiscal 2012, as part of the Company's acquisition accounting for the acquisition of Evolution Robotics, Inc., the
Company recorded a valuation allowance of $2.7 million related to certain state tax attributes of Evolution Robotics, Inc.
The table below summarizes activity relating to the valuation allowance:
Fiscal Year Ended
Balance at
beginning of
period
Additions
Charged to
Costs and
Expenses
Additions
Charged to
Goodwill Deductions
Balance
at End
of Period
(In thousands)
January 1, 2011 $ 3,868
—
—
3,868
$ —
December 31, 2011 $ —
—
—
—
$ —
December 29, 2012 $ —
—
2,691 —
$ 2,691
The net deferred tax assets as of December 29, 2012 and December 31, 2011 were $27.9 million and $21.5 million,
respectively.
As of December 29, 2012, the Company has net operating loss carryforwards available to offset future federal and state
taxes of $62.9 million, research and development credits carryforwards available to offset future federal and state taxes of $7.4
million and investment tax credit carryforwards to offset future state taxes of $0.6 million, which expire at various dates from
2013 to 2032. As of December 31, 2011, the Company had research and development credits carryforwards available to offset
future state taxes of $4.4 million and investment tax credit carryforwards to offset future state taxes of $0.7 million, which
expire at various dates from 2013 to 2026. Under the Internal Revenue Code, certain substantial changes in the Company’s
ownership could result in an annual limitation on the amount of these tax carryforwards which can be utilized in future years.
As of December 29, 2012, the Company has $62.9 million of net operating loss carryforwards and $1.8 million of federal and