iRobot 2014 Annual Report Download - page 138

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iROBOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
65
Other
The Company’s other revenue and cost of revenue result from other smaller business units that do not meet the criteria of
a reportable segment, as well as certain operational costs included in cost of revenue.
The table below presents segment information about revenue, cost of revenue, gross margin and income before income
taxes:
Fiscal Year Ended
December 27,
2014 December 28,
2013 December 29,
2012
(In thousands)
Revenue:
Home Robots $ 507,414 $ 427,853 $ 356,805
Defense & Security Robots 45,502 50,003 70,948
Other 3,930 9,545 8,491
Total revenue 556,846 487,401 436,244
Cost of revenue:
Home Robots 251,095 217,011 174,756
Defense & Security Robots 24,409 24,975 40,468
Other 23,287 24,261 26,672
Total cost of revenue 298,791 266,247 241,896
Gross margin:
Home Robots 256,319 210,842 182,049
Defense & Security Robots 21,093 25,028 30,480
Other (19,357)(14,716)(18,181)
Total gross margin 258,055 221,154 194,348
Research and development 69,408 63,649 57,066
Selling and marketing 86,091 71,529 66,412
General and administrative 49,439 53,358 45,698
Other income (expense), net (708)(203) 435
Income before income taxes $ 52,409 $ 32,415 $ 25,607
As of December 27, 2014, goodwill of $41.0 million and purchased intangible assets, net of $19.1 million recorded in
conjunction with the acquisition of Evolution Robotics, Inc. in October 2012 are directly associated with the home robots
business unit. Goodwill of $7.7 million recorded in conjunction with the acquisition of Nekton in September 2008 is directly
associated with the defense and security business unit. Other long lived assets are not directly attributable to individual business
segments.
Geographic Information
For the fiscal years ended December 27, 2014, December 28, 2013 and December 29, 2012, sales to non-U.S. customers
accounted for 60.9%, 59.5% and 57.3% of total revenue, respectively.
Significant Customers
For the fiscal years ended December 27, 2014, December 28, 2013 and December 29, 2012, U.S. federal government
orders, contracts and subcontracts accounted for 4.3%, 6.2% and 15.1% of total revenue, respectively. For the fiscal years
ended December 27, 2014, December 28, 2013 and December 29, 2012 approximately 75.7%, 75.3% and 75.4%, respectively,
of our home robot product revenue resulted from sales to 15 customers. For the fiscal years ended December 27, 2014 and
December 28, 2013, the Company generated an aggregate of 29.8% and 33.2%, respectively, of its total revenue from its home
robots distributor in Japan (Sales on Demand Corporation) and a network of affiliated European distributors of the Company's
home robots.