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iROBOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
53
reporting entity to treat a performance target that affects vesting and that could be achieved after the requisite service period as
a performance condition. It is effective for annual periods, and interim periods within those annual periods, beginning after
December 15, 2015. Early adoption is permitted. The Company is currently assessing the potential impact of ASU No. 2014-12
on its consolidated financial statements.
In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers,” which provides guidance
for revenue recognition. The standard’s core principle is that a company will recognize revenue when it transfers promised
goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in
exchange for those goods or services. The new guidance is effective for annual reporting periods beginning after December 15,
2016, including interim periods within that reporting period. Early application is not permitted. The Company is currently
assessing the potential impact of ASU No. 2014-09 on its consolidated financial statements.
On April 10, 2014, the FASB issued ASU No. 2014-08 “Reporting Discontinued Operations and Disclosures of Disposals
of Components of an Entity.” ASU No. 2014-08 changes the criteria for reporting discontinued operations and modifies related
disclosure requirements. The new guidance is effective on a prospective basis for fiscal years beginning after December 15,
2014, and interim periods within annual periods beginning on or after December 15, 2015. Early adoption is permitted for new
disposals (or new classifications as held for sale) that have not been reported in financial statements previously issued or
available for issuance. The Company is currently assessing the future impact of ASU No. 2014-08 on its consolidated financial
statements.
In July 2013, the FASB issued ASU 2013-11 “Presentation of an Unrecognized Tax Benefit when a Net Operating Loss
Carryforward, a Similar Tax Loss, or a Tax Credit Exists”, related to the presentation of an unrecognized tax benefit when a net
operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This guidance clarifies prior guidance and
eliminates diversity in practice on the presentation of unrecognized tax benefits when certain situations exist at the reporting
date. This guidance is effective for annual reporting periods beginning on or after December 15, 2013 and subsequent interim
periods. The impact of this amendment on the Company's consolidated financial statements was not material.
From time to time, new accounting pronouncements are issued by FASB that are adopted by the Company as of the
specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards, which
are not yet effective, will not have a material impact on its consolidated financial statements upon adoption.
3. Inventory
Inventory consists of the following at:
December 27,
2014 December 28,
2013
(In thousands)
Raw materials $ 9,455 $ 8,520
Work in process — —
Finished goods 38,402 37,587
$ 47,857 $ 46,107
4. Property and Equipment
Property and equipment consists of the following at: