iRobot 2008 Annual Report Download - page 119

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The table below summarizes activity relating to restricted stock units:
Number of
Shares Underlying
Restricted Stock
Weighted Average
Grant Date Fair
Value
Outstanding at December 30, 2006 ...................... — $ —
Granted .......................................... 24,780 19.05
Vested ........................................... — —
Forfeited ......................................... (333) 18.74
Outstanding at December 29, 2007 ...................... 24,447 $19.05
Granted .......................................... 168,547 15.40
Vested ........................................... (22,929) 17.64
Forfeited ......................................... (1,349) 18.02
Outstanding at December 27, 2008 ...................... 168,716 $15.60
As of December 27, 2008, the unamortized fair value of all restricted stock units was $2.4 million. The
Company expects to recognize associated stock-based compensation expense of $0.8 million, $0.7 million,
$0.6 million and $0.3 million in 2009, 2010, 2011 and 2012, respectively.
Advertising Expense
The Company expenses advertising costs as they are incurred. During the years ended December 27, 2008,
December 29, 2007 and December 30, 2006 advertising expense totaled $11.6 million, $15.9 million and
$14.3 million, respectively.
Net Income Per Share
The following table presents the calculation of both basic and diluted net income per share:
December 27,
2008 December 29,
2007 December 30,
2006
Fiscal Year Ended
Net income .................................. $ 756 $ 9,060 $ 3,565
Weighted average shares outstanding ............... 24,654 24,229 23,516
Dilutive effect of employee stock options and restricted
shares .................................... 879 1,272 2,085
Diluted weighted average shares outstanding ......... 25,533 25,501 25,601
Basic income per share ......................... $ 0.03 $ 0.37 $ 0.15
Diluted income per share ........................ $ 0.03 $ 0.36 $ 0.14
There were no potentially dilutive securities excluded from the computation of diluted earnings per share for
these periods because their effect would have been antidilutive.
Income Taxes
In June 2006, the FASB issued FASB Interpretation No. (“FIN”) 48, Accounting for Uncertainty in Income
Taxes — An Interpretation of FASB Statement No. 109, which prescribes a recognition threshold and measurement
attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a
tax return. FIN 48 is effective for fiscal years beginning after December 15, 2006. Accordingly, the Company
adopted FIN 48 beginning December 31, 2006 and the impact of adoption on its opening balance of retained
71
iROBOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Form 10-K