iRobot 2008 Annual Report Download - page 129

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Other intangible assets include the value assigned to completed technology, research contracts, and a trade
name. The estimated useful lives for all of these intangible assets are two to ten years. The intangible assets are
being amortized on a straight-line basis, which is consistent with the pattern that the economic benefits of the
intangible assets are expected to be utilized based upon estimated cash flows generated from such assets.
Intangible assets at December 27, 2008 and December 29, 2007 consisted of the following:
Cost Accumulated
Amortization Net
December 27, 2008
(In thousands)
Completed technology................................. $3,700 $124 $3,576
Research contracts ................................... 100 16 84
Tradename ......................................... 700 24 676
Total............................................ $4,500 $164 $4,336
There were no goodwill or intangible assets at December 29, 2007.
Amortization expense related to acquired intangible assets was $164,000 for the twelve months ended
December 27, 2008. The estimated future amortization expense related to current intangible assets in each of the
five succeeding fiscal years is expected to be as follows:
(In thousands)
2009 ............................................................. 492
2010 ............................................................. 473
2011 ............................................................. 440
2012 ............................................................. 440
2013 ............................................................. 440
Total ........................................................... $2,285
15. Industry Segment, Geographic Information and Significant Customers
The Company operates in two reportable segments, the home robots division and the government and
industrial division. The nature of products and types of customers for the two segments vary significantly. As such,
the segments are managed separately.
Home Robots
The Company’s home robots division offers products to consumers through a network of retail businesses
throughout the U.S. and to certain countries through international distributors and through the Company’s on-line
store. The Company’s home robots division includes mobile robots used in the maintenance of domestic households
sold primarily to retail outlets.
Government and Industrial
The Company’s government and industrial division offers products through a small U.S. government-focused
sales force, while products are sold to a limited number of countries other than the United States through
international distribution. The Company’s government and industrial products are robots used by various U.S. and
foreign governments, primarily for reconnaissance and bomb disposal missions.
81
iROBOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Form 10-K