iRobot 2013 Annual Report Download - page 97
Download and view the complete annual report
Please find page 97 of the 2013 iRobot annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.L52%27&25325$7,21
127(672&2162/,'$7('),1$1&,$/67$7(0(176²&RQWLQXHG
49
)LVFDO<HDU-(QG
7KH&RPSDQ\RSHUDWHVDQGUHSRUWVXVLQJD- ZHHNILVFDO\HDUHQGLQJRQWKH6DWXUGD\FORVHVWWR'HFHPEHU
$FFRUGLQJO\WKH&RPSDQ\¶VILVFDOTXDUWHUVZLOOHQGRQWKH6DWXUGD\WKDWIDOOVFORVHVWWRWKHODVWGD\RIWKHWKLUGPRQWKRIHDFK
TXDUWHU
&DVKDQG&DVK(TXLYDOHQWV
7KH&RPSDQ\FRQVLGHUVDOOKLJKO\OLTXLGLQYHVWPHQWVZLWKDQRULJLQDORUUHPDLQLQJPDWXULW\RIWKUHHPRQWKVRUOHVVDWWKH
WLPHRISXUFKDVHWREHFDVKHTXLYDOHQWV7KH&RPSDQ\LQYHVWVLWVH[FHVVFDVKSULPDULO\LQPRQH\PDUNHWIXQGVRUVDYLQJV
DFFRXQWVRIPDMRUILQDQFLDOLQVWLWXWLRQV$FFRUGLQJO\LWVFDVKHTXLYDOHQWVDUHVXEMHFWWRPLQLPDOFUHGLWDQGPDUNHWULVN$W
'HFHPEHU DQG'HFHPEHU FDVKHTXLYDOHQWVZHUHFRPSULVHGRIPRQH\PDUNHWIXQGVWRWDOLQJPLOOLRQ
DQGPLOOLRQUHVSHFWLYHO\7KHVHFDVKHTXLYDOHQWVDUHFDUULHGDWFRVWZKLFKDSSUR[LPDWHVIDLUYDOXH
6KRUW7HUP,QYHVWPHQWV
7KH&RPSDQ\¶VLQYHVWPHQWVDUHFODVVLILHGDVDYDLODEOH-IRU-VDOHDQGDUHUHFRUGHGDWIDLUYDOXHZLWKDQ\XQUHDOL]HGJDLQRU
ORVVUHFRUGHGDVDQHOHPHQWRIVWRFNKROGHUV¶HTXLW\7KHIDLUYDOXHRILQYHVWPHQWVLVGHWHUPLQHGEDVHGRQTXRWHGPDUNHWSULFHV
DWWKHUHSRUWLQJGDWHIRUWKRVHLQVWUXPHQWV$VRI'HFHPEHU DQG'HFHPEHU LQYHVWPHQWVFRQVLVWHGRI
'HFHPEHU
'HFHPEHU
&RVW )DLU
0DUNHW 9DOX H &RVW )DLU
0DUNHW 9DOX H
,QWKRXVDQGV
&RUSRUDWHDQGJRYHUQPHQWERQGV
7RWDOVKRUWWHUPLQYHVWPHQWV
$VRI'HFHPEHU WKH&RPSDQ\¶VLQYHVWPHQWVKDGPDWXULW\GDWHVUDQJLQJIURP1RYHPEHUWR0DUFK
7KH&RPSDQ\LQYHVWVSULPDULO\LQLQYHVWPHQWJUDGHVHFXULWLHVDQGOLPLWVWKHDPRXQWRILQYHVWPHQWLQDQ\VLQJOHLVVXHU
5HYHQXH5HFRJQLWLRQ
7KH&RPSDQ\GHULYHVLWVUHYHQXHIURPSURGXFWVDOHVDQGWRDOHVVHUH[WHQWJRYHUQPHQWDQGFRPPHUFLDOUHVHDUFKDQG
GHYHORSPHQWFRQWUDFWV7KH&RPSDQ\VHOOVSURGXFWVGLUHFWO\WRFXVWRPHUVDQGLQGLUHFWO\WKURXJKUHVHOOHUVDQGGLVWULEXWRUV7KH
&RPSDQ\UHFRJQL]HVUHYHQXHIURPVDOHVRIURERWVXQGHUWKHWHUPVRIWKHFXVWRPHUDJUHHPHQWXSRQWUDQVIHURIWLWOHDQGULVNRI
ORVVWRWKHFXVWRPHUQHWRIHVWLPDWHGUHWXUQVSURYLGHGWKDWFROOHFWLRQLVGHWHUPLQHGWREHUHDVRQDEO\DVVXUHGDQGQRVLJQLILFDQW
REOLJDWLRQVUHPDLQ6DOHVWRGRPHVWLFUHVHOOHUVRIKRPHURERWVDUHW\SLFDOO\VXEMHFWWRDJUHHPHQWVDOORZLQJIRUOLPLWHGULJKWVRI
UHWXUQUHEDWHVDQGSULFHSURWHFWLRQ$FFRUGLQJO\WKH&RPSDQ\UHGXFHVUHYHQXHIRULWVHVWLPDWHVRIOLDELOLWLHVIRUWKHVHULJKWVRI
UHWXUQDWWKHWLPHWKHUHODWHGVDOHLVUHFRUGHG7KH&RPSDQ\PDNHVDQHVWLPDWHRIVDOHVUHWXUQVIRUSURGXFWVVROGE\GRPHVWLF
UHVHOOHUVGLUHFWO\EDVHGRQKLVWRULFDOUHWXUQVH[SHULHQFHDQGRWKHUUHOHYDQWGDWD7KH&RPSDQ\¶VLQWHUQDWLRQDOGLVWULEXWRU
DJUHHPHQWVGRQRWFXUUHQWO\DOORZIRUSURGXFWUHWXUQVDQGDVDUHVXOWQRUHVHUYHIRUUHWXUQVLVHVWDEOLVKHGIRUWKLVJURXSRI
FXVWRPHUV7KH&RPSDQ\KDVDJJUHJDWHGDQGDQDO\]HGKLVWRULFDOUHWXUQVIURPGRPHVWLFUHVHOOHUVDQGHQGXVHUVZKLFKIRUPWKH
EDVLVRILWVHVWLPDWHRIIXWXUHVDOHVUHWXUQVE\UHVHOOHUVRUHQGXVHUV:KHQDULJKWRIUHWXUQH[LVWVWKHSURYLVLRQIRUWKHVH
HVWLPDWHGUHWXUQVLVUHFRUGHGDVDUHGXFWLRQRIUHYHQXHDWWKHWLPHWKDWWKHUHODWHGUHYHQXHLVUHFRUGHG,IDFWXDOUHWXUQVGLIIHU
VLJQLILFDQWO\IURPLWVHVWLPDWHVVXFKGLIIHUHQFHVFRXOGKDYHDPDWHULDOLPSDFWRQWKH&RPSDQ\¶VUHVXOWVRIRSHUDWLRQVIRUWKH
SHULRGLQZKLFKWKHUHWXUQVEHFRPHNQRZQ7KHHVWLPDWHVIRUUHWXUQVDUHDGMXVWHGSHULRGLFDOO\EDVHGXSRQKLVWRULFDOUDWHVRI
UHWXUQV7KHHVWLPDWHVDQGUHVHUYHIRUUHEDWHVDQGSULFHSURWHFWLRQDUHEDVHGRQVSHFLILFSURJUDPVH[SHFWHGXVDJHDQG
KLVWRULFDOH[SHULHQFH$FWXDOUHVXOWVFRXOGGLIIHUIURPWKHVHHVWLPDWHV
8QGHUFRVW-SOXV-IL[HG-IHH³&3))´W\SHFRQWUDFWVWKH&RPSDQ\UHFRJQL]HVUHYHQXHEDVHGRQFRVWVLQFXUUHGSOXVDSUR
UDWDSRUWLRQRIWKHWRWDOIL[HGIHH&RVWVLQFXUUHGLQFOXGHODERUDQGPDWHULDOWKDWDUHGLUHFWO\DVVRFLDWHGZLWKLQGLYLGXDO&3))
FRQWUDFWVSOXVLQGLUHFWRYHUKHDGDQGJHQHUDODQGDGPLQLVWUDWLYHW\SHFRVWVEDVHGXSRQELOOLQJUDWHVVXEPLWWHGE\WKH&RPSDQ\
WRWKH'HIHQVH&RQWUDFW0DQDJHPHQW$JHQF\³'&0$´$QQXDOO\WKH&RPSDQ\VXEPLWVILQDOLQGLUHFWELOOLQJUDWHVWR'&0$
EDVHGXSRQDFWXDOFRVWVLQFXUUHGWKURXJKRXWWKH\HDU,QWKHVLWXDWLRQZKHUHWKH&RPSDQ\¶VILQDODFWXDOELOOLQJUDWHVDUHJUHDWHU
WKDQWKHSURYLVLRQDOUDWHVFXUUHQWO\LQHIIHFWWKH&RPSDQ\UHFRUGVDFXPXODWLYHUHYHQXHDGMXVWPHQWLQWKHSHULRGLQZKLFKWKH
UDWHGLIIHUHQWLDOLVFROOHFWHGIURPWKHFXVWRPHU7KHVHILQDOELOOLQJUDWHVDUHVXEMHFWWRDXGLWE\WKH'HIHQVH&RQWUDFW$XGLW
$JHQF\³'&$$´ZKLFKFDQRFFXUVHYHUDO\HDUVDIWHUWKHILQDOELOOLQJUDWHVDUHVXEPLWWHGDQGPD\UHVXOWLQPDWHULDO
DGMXVWPHQWVWRUHYHQXHUHFRJQL]HGEDVHGRQHVWLPDWHGILQDOELOOLQJUDWHV$VRI'HFHPEHU ILVFDO\HDULVXQGHU
DXGLWE\'&$$DQGILVFDO\HDUVWKURXJKDUHRSHQIRUDXGLWE\'&$$,QWKHVLWXDWLRQZKHUHWKH&RPSDQ\¶V
DQWLFLSDWHGDFWXDOELOOLQJUDWHVZLOOEHORZHUWKDQWKHSURYLVLRQDOUDWHVFXUUHQWO\LQHIIHFWWKH&RPSDQ\UHFRUGVDFXPXODWLYH
Form 10-K