iRobot 2012 Annual Report Download - page 102

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iROBOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
52
The Company’s assets measured at fair value on a recurring basis at December 29, 2012, were as follows:
Fair Value Measurements as of
December 29, 2012
Description Level 1 Level 2 Level 3
(In thousands)
Assets:
Money Market Funds $ 88,144 $ — $ —
Corporate bonds — 12,430 —
Total assets measured at fair value $ 88,144 $ 12,430 $ —
The bond investments are valued based on observable market values as of the Company’s reporting date and are included
in Level 2. The bond investments are recorded at fair value and marked-to-market at the end of each reporting period and
realized and unrealized gains and losses are included in comprehensive income for that period. The fair value of the Company’s
bond investments are included in short term investments in its consolidated balance sheet.
The Company’s assets measured at fair value on a recurring basis at December 31, 2011, were as follows:
Fair Value Measurements as of
December 31, 2011
Description Level 1 Level 2 Level 3
(In thousands)
Assets:
Money Market Funds $ 117,196 $
—
$
—
U.S. Government bonds
—
2,502
—
Corporate bonds
—
15,309
—
Total assets measured at fair value $ 117,196 $ 17,811 $
—
The bond investments are valued based on observable market values as of the Company’s reporting date and is included
in Level 2. The bond investment is recorded at fair value and marked-to-market at the end of each reporting period and realized
and unrealized gains and losses are included in comprehensive income for that period. The fair value of the Company’s bond
investment is included in short term investments in its consolidated balance sheet.
Recent Accounting Pronouncements
In May 2011, the Financial Accounting Standards Board (“FASB”) issued amended guidance on fair value measurement
and related disclosures. The new guidance clarifies the concepts applicable for fair value measurement of non-financial assets
and requires the disclosure of quantitative information about the unobservable inputs used in a fair value measurement. This
guidance will be effective for reporting periods beginning after December 15, 2011, and will be applied prospectively. This
updated guidance did not have a material impact on the Company's consolidated financial statements.
In June 2011, the FASB amended its accounting guidance on the presentation of other comprehensive income (OCI) in an
entity’s financial statements. The amended guidance eliminates the option to present the components of OCI as part of the
statement of changes in shareholders’ equity and provides two options for presenting OCI: in a statement included in the
income statement or in a separate statement immediately following the income statement. The amendments do not change the
guidance for the items that have to be reported in OCI or when an item of OCI has to be moved into net income. For public
entities, the amendments are effective for fiscal years, and interim periods within those years, beginning after December 15,
2011. This updated guidance did not have a material impact on the Company's consolidated financial statements.
In September 2011, the FASB issued updated guidance on the periodic testing of goodwill for impairment. The updated
guidance gives companies the option to perform a qualitative assessment to determine whether it is more likely than not that the
fair value of a reporting unit is less than its carrying amount. The amendment is intended to reduce the cost and complexity of
the annual goodwill impairment test by providing entities an option to perform a qualitative assessment to determine whether
further impairment testing is necessary. The updated accounting guidance is effective for fiscal years beginning after
December 15, 2011, with early adoption permitted. The Company elected to adopt the updated guidance in 2011. The adoption
of this guidance did not impact its consolidated financial statements.
In February 2013, the FASB issued guidance requiring disclosure of amounts reclassified out of accumulated other
comprehensive income by component. In addition, an entity is required to present either on the face of the statement of