iRobot 2010 Annual Report Download - page 114

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The components of net deferred tax assets are as follows at January 1, 2011 and January 2, 2010:
2010 2009
(In thousands)
Net deferred tax assets
Current net deferred tax assets
Reserves and accruals ......................................... $12,917 $ 9,922
Valuation allowance .......................................... — (1,253)
Total current net deferred tax assets ............................. 12,917 8,669
Non-current net deferred tax assets
Capital loss carryforwards . . . ................................... — 99
Tax credits ................................................. 1,698 1,450
Fixed assets ................................................ 725 1,398
Stock based compensation . . . ................................... 5,915 5,757
Valuation allowance .......................................... — (2,615)
Total non-current net deferred tax assets .......................... 8,338 6,089
Total net deferred tax assets ................................... $21,255 $14,758
In fiscal 2010, based on recent and expected increased future profitability, the Company released its valuation
allowance relating to state deferred tax assets.
The table below summarizes activity relating to the valuation allowance:
Fiscal Year Ended
Balance at
beginning of
period
Additions
Charged to
Costs and
Expenses Deductions
Balance
at End
of Period
(In thousands)
December 27, 2008 ..................... $2,680 $772 $3,452
January 2, 2010 ........................ 3,452 416 3,868
January 1, 2011 ........................ $3,868 — $3,868 —
The net deferred tax assets as of January 1, 2011 and January 2, 2010 were $21.3 million and $14.8 million,
respectively.
As of January 1, 2011, the Company has research and development credits carryforwards available to offset
future state taxes of $2.7 million and investment tax credit carryforwards to offset future state taxes of $0.4 million,
which expire at various dates from 2016 to 2025. As of January 2, 2010, the Company had 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. Under the Internal Revenue 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.
68
iROBOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)