iRobot 2009 Annual Report Download - page 114

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The components of net deferred tax assets are as follows at January 2, 2010 and December 27, 2008:
2009 2008
(In thousands)
Net deferred tax assets
Current net deferred tax assets
Reserves and accruals ......................................... $ 9,922 $ 8,372
Valuation allowance .......................................... (1,253) (1,073)
Total current net deferred tax assets ............................. 8,669 7,299
Non-current net deferred tax assets
Capital loss carryforwards . . . ................................... 99 99
Tax credits ................................................. 1,450 2,119
Fixed assets ................................................ 1,398 1,256
Stock based compensation . . . ................................... 5,757 3,413
Valuation allowance .......................................... (2,615) (2,379)
Total non-current net deferred tax assets .......................... 6,089 4,508
Total net deferred tax assets ................................... $14,758 $11,807
The gross deferred tax assets as of January 2, 2010 and December 27, 2008 were $18.6 million and
$15.3 million, respectively.
In 2007, the Company made the determination that the realization of certain deferred tax assets was more likely
than not based on future projections of taxable income. The Company released the valuation allowance associated
with these assets and recorded a income statement benefit of $10.2 million in fiscal 2007. The valuation allowance as
of January 2, 2010 relates to all state deferred tax assets, including state credits, and state net operating losses.
As of December 27, 2008, the Company has utilized all of its available net operating loss carryforwards for
federal and state purposes. As of January 2, 2010, the Company does possess research and development credits
carryforwards to offset future federal and state taxes of $0.7 million and $2.2 million respectively, and investment
tax credit carryforwards to offset future state taxes of $0.6 million, which expire at various dates from 2012 to 2024.
As of December 27, 2008, the Company possessed research and development credits carryforwards to offset future
federal and state taxes of $2.9 million and $2.2 million, respectively, and investment tax credit carryforwards to
offset future state taxes of $0.7 million. Under the Internal Revenue Service Code, certain substantial changes in the
Company’s ownership could result in an annual limitation on the amount of these tax carryforwards which can be
utilized in future years.
80
iROBOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)