iRobot 2014 Annual Report Download - page 128

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iROBOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
55
Accrued compensation consists of the following at:
December 27,
2014 December 28,
2013
(In thousands)
Accrued bonus $ 8,455 $ 13,002
Accrued other compensation 7,780 6,604
$ 16,235 $ 19,606
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 27, 2014, 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 the Company's election, at either (1) LIBOR plus a margin, currently equal to 1.0%, based on the Company's 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 will terminate and all amounts outstanding thereunder will be due and payable in full on December 20, 2018.
As of December 27, 2014, 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 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 27, 2014, 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.
On April 2, 2014, the Company announced a stock repurchase program. Under the program, the Company may purchase
up to $50 million of its common stock from May 1, 2014 to April 30, 2015. Through December 27, 2014, the Company has
repurchased 55,973 shares totaling $1.7 million in the open market under this stock repurchase plan.
9. Stock Option Plans and Stock-Based Compensation
The Company has options outstanding under three stock incentive plans: 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 2004 Plan and the 2005 Plan, the “Plans”). All options that remained outstanding under
the 1994 Stock Option Plan as of December 28, 2013 were exercised during fiscal 2014. The 2005 Plan is the only one of the
four plans under which new awards may currently be granted. Under the 2005 Plan, which became effective October 10, 2005,
1,583,682 shares were initially reserved for issuance in the form of incentive stock options, non-qualified stock options, stock
appreciation rights, deferred stock awards and restricted stock awards. Additionally, the 2005 Plan provides that the number of
shares reserved and available for issuance under the plan will automatically increase each January 1, beginning in 2007, by
4.5% of the outstanding number of shares of common stock on the immediately preceding December 31. Stock options returned
to the Plans, with the exception of the 2007 Plan, as a result of their expiration, cancellation or termination are automatically
made available for issuance under the 2005 Plan. Eligibility for incentive stock options is limited to those individuals whose