iRobot 2012 Annual Report Download - page 87

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Robotics, Inc. in 2012 for net cash of $74.5 million and an investment of $6.0 million in preferred shares of InTouch
Technologies, Inc. in 2012. These increases were partially offset by proceeds from the net sale of investments of $4.9 million
in 2012 compared to the net purchase of investments of $4.2 million in 2011, as well as a decrease in purchases of property and
equipment of $6.2 million from fiscal 2011 to fiscal 2012 primarily due to a decrease in spending on self-constructed and
demonstration assets, leasehold improvements and internal use software.
Net cash provided by financing activities for the fiscal year ended December 29, 2012 was $5.0 million, a decrease of
$14.4 million compared to the $19.4 million of net cash provided by financing activities for the fiscal year ended December 31,
2011. The decrease is due primarily to a decrease in proceeds from stock option exercises of $9.1 million and a decrease in the
tax benefit associated with excess stock-based compensation deductions of $5.5 million.
Working Capital Facilities
Credit Facility
We have an unsecured revolving credit facility with Bank of America, N.A., which is available to fund working capital
and other corporate purposes. As of December 29, 2012, the total amount available for borrowing under our credit facility was
$75.0 million and the full amount was available for borrowing. The interest on loans under our credit facility accrues at a rate
between LIBOR plus 1% and LIBOR plus 1.5%, based on our ratio of indebtedness to Adjusted EBITDA, and the credit
facility termination date is June 30, 2014.
As of December 29, 2012, we had no outstanding borrowings under our working capital line of credit. This credit facility
contains customary terms and conditions for credit facilities of this type, including restrictions on our ability to incur or
guaranty additional indebtedness, create liens, enter into transactions with affiliates, make loans or investments, sell assets, pay
dividends or make distributions on, or repurchase, our stock, and consolidate or merge with other entities.
In addition, we are required to meet certain financial covenants customary with this type of agreement, including
maintaining a minimum specified consolidated net worth, a minimum ratio of indebtedness to Adjusted EBITDA, and a
minimum specified interest coverage ratio.
This credit facility contains customary events of default, including for payment defaults, breaches of representations,
breaches of affirmative or negative covenants, cross defaults to other material indebtedness, bankruptcy and failure to discharge
certain judgments. If a default occurs and is not cured within any applicable cure period or is not waived, our obligations under
the credit facility may be accelerated.
As of December 29, 2012, we were in compliance with all covenants under the revolving credit facility.
Letter of Credit Facility
On January 4, 2011, we entered into a revolving letter of credit facility with Bank of America, N.A. The credit facility is
available to fund letters of credit on our behalf up to an aggregate outstanding amount of $5 million. We may terminate at any
time, subject to proper notice, or from time to time permanently reduce the amount of the credit facility.
We pay a fee on outstanding letters of credit issued under the credit facility at a rate between LIBOR plus 1% and LIBOR
plus 1.5% per annum, based on our ratio of indebtedness to Adjusted EBITDA. In addition, we pay a fee equal to 0.25% per
annum of the actual daily amount by which the credit facility exceeds the aggregate undrawn amount of all outstanding letters
of credit under the credit facility plus the aggregate of all unreimbursed drawings under all letters of credit under the credit
facility. The maturity date for letters of credit issued under the credit facility must be no later than seven days prior to June 30,
2014.
As of December 29, 2012, we had letters of credit outstanding of $1.5 million under our revolving letter of credit facility.
The credit facility contains customary terms and conditions for credit facilities of this type, including restrictions on our ability
to incur or guaranty additional indebtedness, create liens, enter into transactions with affiliates, make loans or investments, sell
assets, pay dividends or make distributions on, or repurchase, its stock, and consolidate or merge with other entities. In
addition, we are required to meet certain financial covenants customary with this type of agreement, including maintaining a
minimum specified consolidated net worth, a minimum ratio of indebtedness to Adjusted EBITDA and a minimum specified
ratio of EBIT to interest expense.
The credit facility also contains customary events of default, including for payment defaults, breaches of representations,
breaches of affirmative or negative covenants, cross defaults to other material indebtedness, bankruptcy, and failure to
discharge certain judgments. If a default occurs and is not cured within any applicable cure period or is not waived, the lender
may accelerate the obligations under the credit facility.
As of December 29, 2012, we were in compliance with all covenants under the revolving letter of credit facility.
Working Capital and Capital Expenditure Needs
We currently have no material cash commitments, except for normal recurring trade payables, expense accruals and
operating leases, all of which we anticipate funding through working capital, funds provided by operating activities and our
existing working capital line of credit. We do not currently anticipate significant investment in property, plant and equipment,
Form 10-K