iRobot 2008 Annual Report Download - page 121

The Company’s assets measured at fair value on a recurring basis subject to the disclosure requirements of
SFAS 157 at December 27, 2008, were as follows:
Description Level 1 Level 2 Level 3
Fair Value Measurements as of
December 27, 2008
(In thousands)
Assets:
Money Market Accounts ................................. $39,512 $ — $—
Foreign Currency forward contracts ......................... — (55) —
Total assets measured at fair value .......................... $39,512 (55) $—
Foreign currency forward contracts are valued based on observable market spot and forward rates as of our
reporting date and are included in level 2 inputs. We use these derivative instruments to mitigate foreign currency
receivable transactions exposure. All contracts are recorded at fair value and marked to market at the end of each
reporting period and realized and unrealized gains and losses are included in net income for that period. The fair
value of our foreign currency forward contracts was included in receivables in our consolidated balance sheet.
Recent 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 the Company in the first quarter of fiscal year 2009, and is
not expected to have a material impact on its 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 the Company’s 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. The
Company is currently evaluating the potential impact of adoption of SFAS 161 and has not yet determined the
impact, if any, that its adoption will have on its results of operations or financial condition.
From time to time, newaccounting pronouncements are issued by FASB that are adopted by the Companyas of
the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued
standards, which are not yet effective, will not have a material impact on the Company’s consolidated financial
statements upon adoption.
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iROBOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Form 10-K