iRobot 2011 Annual Report Download - page 116

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Form 10-K
iROBOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The components of net deferred tax assets were as follows:
December 31,
2011
January 1,
2011
(In thousands)
Net deferred tax assets
Current deferred tax assets
Reserves and accruals ........................................ $15,697 $13,253
Tax credits ................................................. 133 —
Total current deferred tax assets .............................. 15,830 13,253
Non-current deferred tax assets
Tax credits ................................................. 3,027 1,698
Fixed assets ................................................ — 754
Stock based compensation ..................................... 5,213 5,915
Total non-current deferred tax assets ........................... 8,240 8,367
Current deferred tax liabilities
Prepaids ................................................. 486 336
Total current deferred tax liabilities ............................ 486 336
Non-current deferred tax liabilities
Intangible assets ........................................... 127 29
Fixed assets .............................................. 1,986 —
Total non-current deferred tax liabilities ........................ 2,113 29
Total net deferred tax assets .................................. $21,471 $21,255
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)
January 2, 2010 ............................ $3,452 $416 — $3,868
January 1, 2011 ............................ 3,868 — 3,868 —
December 31, 2011 ......................... — — — —
The net deferred tax assets as of December 31, 2011 and January 1, 2011 were $21.5 million and
$21.3 million, respectively.
As of December 31, 2011, the Company has research and development credits carryforwards available to
offset future state taxes of $4.4 million and investment tax credit carryforwards to offset future state taxes of
$0.7 million, which expire at various dates from 2012 to 2026. As of January 1, 2011, the Company had 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.
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.
69