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Industry Segment, Geographic Information and Significant Customers
 12 Months Ended
Jan. 02, 2016
Segment Reporting [Abstract]  
Industry Segment, Geographic Information and Significant Customers
16.
Industry Segment, Geographic Information and Significant Customers
The Company operates in two reportable segments, the home robots business unit and the defense and security business unit. The nature of products and types of customers for the two segments vary significantly. As such, the segments are managed separately.
 
Home Robots
The Company’s home robots business unit offers products to consumers through a network of retail businesses throughout the United States, to various countries through international distributors and retailers, and through the Company’s on-line store. The Company’s home robots business unit includes mobile robots used in the maintenance of households.
Defense and Security Robots
The Company’s defense and security business unit offers products to the U.S. Department of Defense through a small U.S. government-focused sales force, and to other North American and international entities through small domestic and international sales teams, as well as through North American and international distributors. The Company’s defense and security robots are used to increase warfighters', law enforcement, security forces and first responders' safety and productivity.
Other
The Company’s other revenue and cost of revenue result from other smaller business units that do not meet the criteria of a reportable segment, as well as certain operational costs included in cost of revenue.
The table below presents segment information about revenue, cost of revenue, gross margin and income before income taxes:
 
Fiscal Year Ended
 
January 2,
2016
 
December 27,
2014
 
December 28,
2013
 
(In thousands)
Revenue:
 
 
 
 
 
Home Robots
$
559,619

 
$
507,414

 
$
427,853

Defense & Security Robots
55,004

 
45,502

 
50,003

Other
2,155

 
3,930

 
9,545

Total revenue
616,778

 
556,846

 
487,401

Cost of revenue:
 
 
 
 
 
Home Robots
274,613

 
251,095

 
217,011

Defense & Security Robots
29,737

 
24,409

 
24,975

Other
23,502

 
23,287

 
24,261

Total cost of revenue
327,852

 
298,791

 
266,247

Gross margin:
 
 
 
 
 
Home Robots
285,006

 
256,319

 
210,842

Defense & Security Robots
25,267

 
21,093

 
25,028

Other
(21,347
)
 
(19,357
)
 
(14,716
)
Total gross margin
288,926

 
258,055

 
221,154

Research and development
76,071

 
69,408

 
63,649

Selling and marketing
97,772

 
86,091

 
71,529

General and administrative
54,465

 
49,439

 
53,358

Other expense, net
2,353

 
(708
)
 
(203
)
Income before income taxes
$
62,971

 
$
52,409

 
$
32,415


As of January 2, 2016, goodwill of $41.0 million and purchased intangible assets, net of $15.7 million recorded in conjunction with the acquisition of Evolution Robotics, Inc. in October 2012 are directly associated with the home robots business unit. Goodwill of $7.7 million recorded in conjunction with the acquisition of Nekton in September 2008 is directly associated with the defense and security business unit. Other long lived assets are not directly attributable to individual business segments.
 
Geographic Information
For the fiscal years ended January 2, 2016, December 27, 2014 and December 28, 2013, sales to non-U.S. customers accounted for 56.0%, 60.9% and 59.5% of total revenue, respectively. For the fiscal years ended January 2, 2016, December 27, 2014 and December 28, 2013, sales to our home robots distributor in Japan accounted for 13.3%, 17.0%, and 19.8% of total revenue, respectively.
Significant Customers
For the fiscal years ended January 2, 2016, December 27, 2014 and December 28, 2013, U.S. federal government orders, contracts and subcontracts accounted for 5.1%, 4.3% and 6.2% of total revenue, respectively. For the fiscal years ended January 2, 2016, December 27, 2014 and December 28, 2013 approximately 76.6%, 75.7% and 75.3%, respectively, of our home robot product revenue resulted from sales to 15 customers. For the fiscal years ended January 2, 2016, December 27, 2014 and December 28, 2013, the Company generated an aggregate of 26.0%, 29.8% and 33.2%, respectively, of its total revenue from its home robots distributor in Japan (Sales on Demand Corporation) and a network of affiliated European distributors of the Company's home robots (Robopolis SAS).