iRobot 2014 Annual Report Download - page 137

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iROBOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
64
Amortization expense related to acquired intangible assets was $3.5 million, $3.8 million, and $1.2 million for the fiscal
years ended December 27, 2014, December 28, 2013 and December 29, 2012, respectively. The estimated future amortization
expense related to current intangible assets in each of the five succeeding fiscal years is expected to be as follows:
(In thousands)
2015 $ 3,482
2016 3,457
2017 3,457
2018 3,457
2019 2,818
Total $ 16,671
15. Restructuring charges
In 2013 and 2012, the Company incurred restructuring charges of $3.3 million, and $3.7 million, respectively. The
restructuring charges incurred in 2013 primarily related to a $1.8 million write-down of an intangible asset, costs associated
with the closing of its San Luis Obispo, California office and severance-related costs. The restructuring charges incurred in
2012 primarily consisted of cost reductions in its defense and security business unit, which resulted in workforce reductions
and the write-off of certain inventory and fixed assets.
The activity for the restructuring programs is presented below:
Fiscal Year Ended
December 27, 2014 December 28, 2013 December 29, 2012
(In thousands)
Balance at beginning of period $ 675 $ 197 $ —
Charges — 3,296 3,679
Utilization (675)(2,818)(3,482)
Balance at end of period $ — $ 675 $ 197
16. Industry Segment, Geographic Information and Significant Customers
The Company operates in two reportable segments, the home robots business unit and the defense and security robots
business unit. The nature of products and types of customers for the two segments vary significantly. As such, the segments are
managed separately.
Home Robots
The Company’s home robots business unit offers products to consumers through a network of retail businesses
throughout the United States, to various countries through international distributors and retailers, and through the Company’s
on-line store. The Company’s home robots business unit includes mobile robots used in the maintenance of households.
Defense and Security Robots
The Company’s defense and security robots business unit offers products to the U.S. Department of Defense through a
small U.S. government-focused sales force, and to other North American and international entities through small domestic and
international sales teams, as well as through North American and international distributors. The Company’s defense and
security robots are used to increase warfighters', law enforcement, security forces and first responders' safety and productivity.
Form 10-K