iRobot 2008 Annual Report Download - page 123

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regularly evaluate whether or not this investment has been impaired by considering such factors as economic
environment, market conditions, operational performance and other specific factors relating to the business
underlying the investment. If any such impairment is identified, a reduction in the carrying value of the investment
would be recorded at that time.
6. Accrued Expenses
Accrued expenses consist of the following at:
December 27,
2008 December 29,
2007
(In thousands)
Accrued warranty......................................... $ 5,380 $2,491
Accrued direct fulfillment costs .............................. 1,236 1,953
Accrued rent ............................................ 470 197
Accrued sales commissions ................................. 801 1,074
Accrued accounting fees.................................... 376 361
Accrued income taxes ..................................... 248 32
Accrued other ........................................... 2,478 1,879
$10,989 $7,987
7. Revolving Line of Credit
The Company has an unsecured revolving credit facility with Bank of America, N.A., which is available to
fund working capital and other corporate purposes. The amount available for borrowing under the credit facility to
the lesser of: (a) $45.0 million or (b) amounts available pursuant to a borrowing base calculation determined
pursuant to the terms and conditions of the credit facility. The interest on loans under the credit facility will accrue,
at the Company’s election, at either (i) Bank of America’s prime rate minus 1% or (ii) the Eurodollar rate plus
1.25%. The credit facility will terminate and all amounts outstanding thereunder will be due and payable in full on
June 5, 2010.
As of December 27, 2008, the Company had letters of credit outstanding of $2.1 million, and $42.9 million
available under the working capital line of credit. This credit facility contains customary terms and conditions for
credit facilities of this type, including restrictions on the Company’s ability to incur or guaranty additional
indebtedness, create liens, enter into transactions with affiliates, make loans or investments, sell assets, pay
dividends or make distributions on, or repurchase, our stock, and consolidate or merge with other entities.
In addition, the Company is required to meet certain financial covenants customary with this type of
agreement, including maintaining a minimum specified tangible net worth and a minimum specified annual
net income.
This credit facility contains customary events of default, including for payment defaults, breaches of
representations, breaches of affirmative or negative covenants, cross defaults to other material indebtedness,
bankruptcy and failure to discharge certain judgments. If a default occurs and is not cured within any applicable
cure period or is not waived, the Company’s obligations under the credit facility may be accelerated.
As of December 27, 2008, we were in compliance with all covenants under the credit facility.
75
iROBOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Form 10-K