iRobot 2012 Annual Report Download - page 83

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Other Income (Expense), Net
Fiscal Year Ended
December 29,
2012
December 31,
2011 Dollar Change Percent Change
(In thousands)
Other Income (expense), net $ 435
$ 218 $ 217 99.5 %
As a percentage of total revenue 0.1 % 0.0 %
Other income (expense), net, amounted to $0.4 million and $0.2 million for fiscal 2012 and fiscal 2011, respectively, and
consisted primarily of interest income partially offset by foreign currency exchange losses resulting from foreign currency
exchange rate fluctuations.
Income Tax Provision
Fiscal Year Ended
December 29,
2012
December 31,
2011 Dollar Change Percent Change
(In thousands)
Income tax provision $ 8,310
$ 13,350 $ (5,040) (37.8 )%
As a percentage of pre-tax income 32.5 % 24.9 %
We recorded a tax provision of $8.3 million and $13.4 million for fiscal 2012 and fiscal 2011, respectively. The $8.3
million provision for fiscal 2012 was based upon a 2012 effective income tax rate of 30.3% plus a net tax expense of $0.6
million primarily resulting from the true-up of prior year permanent items. The $13.4 million provision for fiscal 2011 was
based upon a 2011 effective income tax rate of 29.7% offset primarily by a net tax benefit of $3.5 million resulting from the
completion in the period of a comprehensive evaluation of our research and development credit and domestic manufacturing
deductions.
In January 2013, legislation was enacted that included the extension of the research and development tax credit. The
legislation retroactively reinstated the research and development tax credit for 2012 and extended it through December 31,
2013. As a result, we expect to record a discrete benefit of approximately $1.8 million related to 2012 in 2013 and an annual
benefit of $2.8 million related to 2013.
The increase in the effective tax rate from 29.7% in 2011 to 30.3% in 2012 was primarily due to the expiration of the
federal research and development credit, offset by a decrease in state taxes and a higher domestic manufacturing deduction as a
percentage of income before taxes in 2012 as compared with 2011.
Comparison of Years Ended December 31, 2011 and January 1, 2011
Revenue
Fiscal Year Ended
December 31,
2011
January 1,
2011 Dollar Change Percent Change
(In thousands)
Total Revenue $ 465,500 $ 400,952 $ 64,548 16.1 %
Our revenue increased 16.1% to $465.5 million in fiscal 2011 from $401.0 million in fiscal 2010. Revenue increased
approximately $49.2 million, or 21.5%, in our home robots business unit and $15.3 million, or 8.9%, in our defense and
security business unit.
The $49.2 million increase in revenue from our home robots business unit was driven by an 8.0% increase in units
shipped and a 13.2% increase in net average selling price. In fiscal 2011, international home robots revenue increased
$44.3 million and domestic home robots revenue increased $4.9 million. Total home robots shipped in fiscal 2011 were
1,371,000 units compared to 1,269,000 units in fiscal 2010. The increase in home robots business unit revenue and units
shipped was primarily attributable to international sales increasing 29.3% due to increased demand in our European and Asian
markets. The increase in demand was driven by demand for our new Roomba 700 series robot, an increase in marketing
programs by us and our international distributors and continued efforts to increase international retail outlets for our home
robots products across various countries. Domestic retail sales of our home robot products increased 7.9% and domestic direct
sales through our website increased 2.3% in fiscal 2011 as compared to fiscal 2010. The increase in domestic retail demand is
due in part to our increased and sustained domestic marketing activities which began in the fourth quarter of 2010. The increase
in our direct to consumer sales through our website was driven by the introduction of our Roomba 700 series and Scooba 230
robots. Home robots business unit revenue from international sales was 70.3% of total home robots business unit revenue in
Form 10-K