iRobot 2008 Annual Report Download - page 102

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 27, 2008:
Less Than
1 Year 1to3 Years 3to5 Years More Than 5 Years Total
Payments Due by Period
(In thousands)
Operating leases .................... $2,625 $ 4,720 $4,341 $12,698 $24,384
Minimum contractual payments ......... 4,500 10,500 1,500 — 16,500
Total............................. $7,125 $15,220 $5,841 $12,698 $40,884
Our minimum contractual payments consist entirely of payments to our provider of direct fulfillment services
for direct to consumer sales of our home robots, which payments are incurred in the ordinary course of business.
Based on historical and current operations, we believe that we will exceed these minimum contractual obligations in
our ordinary course of business.
Off-Balance Sheet Arrangements
As of December 27, 2008, we had no off-balance sheet arrangements as defined in Item 303(a)(4) of
Regulation S-K.
Recently Issued Accounting Pronouncements
In February 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 deferred the effective date of
SFAS 157 to fiscal years beginning after November 15, 2008, and interim periods within those fiscal years for items
within the scope of this FSP. This FSP will be adopted by us in the first quarter of fiscal year 2009, and is not
expected to have a material impact on our consolidated financial statements.
In December 2007, FASB issued SFAS No. 141 (revised 2007), Business Combinations, or SFAS 141R and
SFAS No. 160, Noncontrolling Interests in Consolidated Financial Statements, an amendment of Accounting
Research Bulletin No. 51, or SFAS 160. 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. SFAS No. 141(R) did not have an impact on our historical financial
statements and will be applied to business combinations completed, if any, on or after December 27, 2008.
In March 2008, FASB issued SFAS No. 161, Disclosures about Derivative Instruments and Hedging Activities
or, SFAS 161. The new standard is intended to improve financial reporting about derivative instruments and hedging
activities by requiring enhanced disclosures to enable investors to better understand their effects on an entity’s
financial position, financial performance and cash flows. SFAS 161 is effective for financial statements issued for
fiscal years and interim periods beginning after November 15, 2008, with early application encouraged. We are
currently evaluating the potential impact of adoption of SFAS 161 and have not yet determined the impact, if any,
that its adoption will have on our results of operations or financial condition.
From time to time, new accounting pronouncements are issued by FASB that we adopt as of the specified
effective date. Unless otherwise discussed, we believe that the impact of recently issued standards, which are not yet
effective, will not have a material impact on our consolidated financial statements upon adoption.
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