iRobot 2015 Annual Report Download - page 125

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$44.1 million and non-cash charges of $23.9 million, partially offset by a net increase in operating assets and liabilities of
$41.3 million. The increase in net operating assets and liabilities includes an increase in accounts receivable (including unbilled
revenue) of $31.5 million primarily due to an increase in revenue and timing of billing in respective periods and a $14.0 million
increase in inventory primarily to support increased domestic sales and the roll-out of Roomba 980. As of January 2, 2016, we
did not have any borrowings outstanding under our working capital line of credit and had $1.5 million in letters of credit
outstanding under our revolving letter of credit facility.
We invested $9.4 million in the purchase of property and equipment in 2015, including tooling for new products. We
purchased $17.8 million of marketable securities in 2015, while sales and maturities of marketable securities amounted to $20.5
million. We received $5.6 million from sales of other assets. We made strategic investments of $1.0 million in the form of
preferred shares and notes receivable.
During 2015, we received $6.5 million from the exercise of stock options and $1.5 million from the excess tax benefit
related to our stock-based compensation plans. In addition, we repurchased 1,260,276 shares of our common stock for an
aggregate purchase price of $37.4 million. Shares issued upon vesting of restricted stock were net of 37,969 shares retained by
us to cover employee tax withholdings of $1.3 million.
Net cash provided by our operations for the fiscal year ended December 27, 2014 was $40.6 million, of which the
principal components were our net income of $37.8 million and non-cash charges of $27.2 million, partially offset by a net
increase in operating assets and liabilities of $24.4 million. The increase in net operating assets and liabilities includes an
increase in accounts receivable (including unbilled revenue) of $33.5 million primarily due to an increase in revenue, normal
billing and collection activities and timing of the billing in respective periods, a $3.4 million decrease in accrued compensation
reflecting higher accrual for incentive compensation in 2013 compared to 2014, a $2.9 million increase on other assets relating
to an increase in prepaid income tax expenses, a $2.4 million increase in inventory, partially offset by a $19.9 million increase
in accounts payable and accrued expenses as a result of normal purchasing and vendor payment activities.
We invested $13.8 million in the purchase of property and equipment in 2014, including $3.5 million for leasehold
improvements in our Bedford, Massachusetts office. We purchased $31.2 million of marketable securities in 2014, while
maturities of marketable securities amounted to $16.5 million. We also made a strategic investment of $250 thousand in a cost-
method investment.
During 2014, we received $8.9 million from the exercise of stock options and $3.1 million from the excess tax benefit
related to our stock-based compensation plans. In addition, we repurchased 55,973 shares of our common stock for an
aggregate purchase price of $1.7 million. Shares issued upon vesting of restricted stock were net of 39,297 shares retained by
us to cover employee tax withholdings of $1.6 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 January 2, 2016, the total amount of 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 our election, at either (1) LIBOR
plus a margin, currently equal to 1.0%, based on our ratio of indebtedness to Adjusted EBITDA (the "Eurodollar Rate"), or (2)
the lender’s base rate. The lender’s base rate is equal to the highest of (1) the federal funds rate plus 0.5%, (2) the lender’s
prime rate and (3) the Eurodollar Rate plus 1.0%. The credit facility will terminate and all amounts outstanding thereunder will
be due and payable in full on December 20, 2018.
As of January 2, 2016, we had no outstanding borrowings under our revolving credit facility. 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 maximum 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
Form 10-K