iRobot 2014 Annual Report Download - page 110

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December 29, 2012. This decrease in net cash used in investing activities was primarily due to a decrease in cash paid for
acquisitions and strategic investments of $78.5 million, with a strategic investment of $2.0 million in the preferred shares of
InTouch Technologies, Inc. in 2013 compared to $74.5 million paid for the acquisition of Evolution Robotics and $6.0 million
paid for the purchase of the preferred shares of InTouch Technologies, Inc. in 2012. This decrease was partially offset by cash
used in the net purchase of marketable securities of $9.9 million in 2013 compared to the net sale of marketable securities of
$4.9 million in 2012.
Net cash provided by financing activities for the fiscal year ended December 28, 2013 was $14.8 million, an increase of
$9.8 million compared to the $5.0 million of net cash provided by financing activities for the fiscal year ended December 29,
2012. The increase is due primarily to an increase in the proceeds from stock option exercises of $9.3 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 27, 2014, 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 our
election, at either (1) LIBOR plus a margin, currently equal to 1.0%, based on our ratio of indebtedness to Adjusted EBITDA
(the Eurodollar Rate), or (2) the lender’s base rate. The lender’s base rate is equal to the highest of (1) the federal funds rate
plus 0.5%, (2) the lender’s prime rate and (3) the Eurodollar Rate plus 1.0%. The credit facility termination date is December
20, 2018.
As of December 27, 2014, 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 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 27, 2014, we were in compliance with all covenants under the revolving credit facility.
Letter of Credit Facility
We have an unsecured 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 of up to 1.5% per annum of the outstanding
letters of credit. The maturity date for letters of credit issued under the credit facility must be no later than 365 days following
the maturity date of the credit facility.
As of December 27, 2014, we had letters of credit outstanding of $3.2 million under our revolving letter of credit facility.
The 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 ratio of indebtedness to Adjusted EBITDA and a minimum specified ratio of EBIT to interest expense.
The credit facility also 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 lender
may accelerate the obligations under the credit facility.
As of December 27, 2014, we were in compliance with all covenants under the revolving letter of credit facility.
Working Capital and Capital Expenditure Needs
We currently have no material cash commitments, except for normal recurring trade payables, expense accruals and
operating leases, all of which we anticipate funding through working capital, funds provided by operating activities and our