iRobot 2007 Annual Report Download - page 91

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Contractual Obligations
We generally do not enter into binding purchase commitments. Our principal commitments consist of
obligations under our working capital line of credit, leases for office space and minimum contractual obligations
for services. The following table describes our commitments to settle contractual obligations in cash as of
December 29, 2007:
Less Than
1 Year
1to3
Years
3to5
Years
More Than
5 Years Total
Payments Due by Period
(In thousands)
Operating leases ................... $3,295 $ 4,563 $ 4,372 $15,333 $27,563
Minimum contractual payments ........ 125 8,500 10,500 1,500 20,625
Total ............................ $3,420 $13,063 $14,872 $16,833 $48,188
On February 22, 2007, we entered into a lease agreement for our new corporate headquarters in Bedford,
Massachusetts to which we expect to relocate on or about May 1, 2008.
Off-Balance Sheet Arrangements
As of December 29, 2007, we had no off-balance sheet arrangements as defined in Item 303(a)(4) of
Regulation S-K.
Recently Issued Accounting Pronouncements
In September 2006, the Financial Accounting Standards Board, or FASB issued SFAS No. 157, Fair Value
Measurements which defines fair value, establishes guidelines for measuring fair value and expands disclosures
regarding fair value measurements. SFAS 157 does not require any new fair value measurements but rather
eliminates inconsistencies in guidance found in various prior accounting pronouncements. SFAS 157 is effective for
fiscal years beginning after November 15, 2007. However, on February 12, 2008, the FASB issued FSP FAS 157-2
which delays the effective date of SFAS 157 for all nonfinancial assets and nonfinancial liabilities, except those that
are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). This FSP
partially defers the effective date of Statement 157 to fiscal years beginning after November 15, 2008, and interim
periods within those fiscal years for items within the scope of this FSP. Effective for fiscal 2008, we will adopt
SFAS 157 except as it applies to those nonfinancial assets and nonfinancial liabilities as noted in FSP FAS 157-2.
The partial adoption of SFAS 157 is not expected to have a material impact on our results of operations or financial
condition.
In February 2007, the FASB issued SFAS No. 159, The Fair Value Option for Financial Assets and Financial
Liabilities — Including an Amendment of FASB Statement No. 115, or SFAS 159. SFAS 159 permits entities to
choose fair value measurement for many financial instruments and certain other items as of specified election dates.
Business entities will thereafter report in earnings the unrealized gains and losses on items for which the fair value
option has been chosen. The fair value option may be applied instrument by instrument, may not be applied to
portions of instruments and is irrevocable unless a new election date occurs. SFAS 159 is effective for an entity’s
first fiscal year beginning after November 15, 2007. We are currently evaluating the potential impact of adoption of
SFAS 159 and have not yet determined the impact, if any, that its adoption will have on our results of operations or
financial condition.
In December 2007, the FASB issued SFAS No. 141 (revised 2007), or SFAS 141R, Business Combinations and
SFAS No. 160 or SFAS 160, Noncontrolling Interests in Consolidated Financial Statements, an amendment of
Accounting Research Bulletin No. 51. SFAS 141R will change how business acquisitions are accounted for and will
impact financial statements both on the acquisition date and in subsequent periods. SFAS 160 will change the
accounting and reporting for minority interests, which will be recharacterized as noncontrolling interests and
classified as a component of equity. The provisions of SFAS 141R and SFAS 160 are effective for fiscal years
beginning on or after December 15, 2008. We are currently evaluating the impact that SFAS 141R and SFAS 160
will have on our results of operations or financial condition.
57
Form 10-K