iRobot 2008 Annual Report Download - page 95

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associated with collectability concerns of receivables due from three of our retail customers given their financial
condition and bankruptcy filings, $0.8 million in occupancy and depreciation expenses relating to the move to our
new corporate headquarters, $0.5 million in executive severance and $0.2 million of goodwill amortization relating
to our acquisition of Nekton.
Overall general and administrative headcount increased to 101 at December 27, 2008 compared to 88 as of
December 29, 2007, an increase of 13 employees or 15%.
Litigation and Related Expenses
December 27,
2008 December 29,
2007 Dollar Change Percent Change
Fiscal Year Ended
(In thousands)
Litigation and related expenses ...... — $2,341 $(2,341) N/A
As a percentage of total revenue ..... — 1.0%
Litigation and related expenses in fiscal 2007 consisted of costs for trade secret misappropriation, breach of
contract and patent infringement litigation relating to lawsuits filed against Robotic FX, Inc. and Jameel Ahed as
well as settlement costs related to ending the litigation.
Other Income, Net
December 27,
2008 December 29,
2007 Dollar Change Percent Change
Fiscal Year Ended
(In thousands)
Other Income, net ................ $926 $3,151 $(2,225) (70.6)%
As a percentage of total revenue ..... 0.3% 1.3%
For fiscal 2008, other income, net amounted to $0.9 million compared to $3.2 million in fiscal 2007. The
decrease in other income, net in fiscal 2008 was primarily related to a $2.1 million decrease in interest income as a
result of lower investment account balances and reduced interest rates earned on the portfolio, and a $0.1 million
increase in other expense, relating to foreign currency losses, as compared to fiscal 2007. Other income, net for
fiscal 2008 consisted of $1.1 million in interest income resulting from our cash and investments, offset by
$0.1 million in interest expense and $0.1 million in foreign currency losses.
Income Tax Provision
December 27,
2008 December 29,
2007 Dollar Change Percent Change
Fiscal Year Ended
(In thousands)
Income tax provision (benefit)....... $369 $(8,558) $8,927 N/A
As a percentage of total revenue ..... 0.1% (3.4)%
In fiscal 2008 we recorded a $0.4 million tax provision based on an effective income tax rate of 32.8%. The
provision for income taxes for fiscal 2008 consists of $0.1 million of federal alternative minimum taxes and
$0.3 million of state taxes.
In fiscal 2007, we recorded an $8.6 million tax benefit, which was primarily attributable to the full release of
the valuation allowance relating to federal deferred tax assets.
47
Form 10-K