LeapFrog 2002 Annual Report Download - page 82

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LEAPFROG ENTERPRISES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except share, per share and percent data)
5. Property and Equipment
Property and equipment consisted of the following:
December 31,
2002 2001
Tooling, cards, dies, and plates ................................ $11,372 $ 5,875
Computers and software ..................................... 8,210 4,340
Equipment, furniture and fixtures .............................. 2,795 1,748
Leasehold improvements ..................................... 1,604 1,333
Capitalized content development ............................... 8,636 5,020
Capitalized website costs ..................................... 6,267 5,954
Displays .................................................. 602 520
39,486 24,790
Less: accumulated depreciation ................................ (19,247) (7,933)
Property and equipment, net .............................. $20,239 $16,857
6. Intangible Assets
December 31,
2002 2001
Goodwill .................................................. $24,026 $24,026
Otherintangibles ............................................ 5,058 4,558
29,084 28,584
Less accumulated amortization: ................................
Goodwill .................................................. (4,477) (4,477)
Otherintangibles ............................................ (1,415) (785)
Intangible assets, net ..................................... $23,192 $23,322
The Company adopted SFAS 142 on January 1, 2002. The Company ceased amortizing goodwill and other
indefinite-lived intangible assets on January 1, 2002. The amortization expense and adjusted net income for the
three years ended December 31, 2002 is as follows:
Year Ended December 31,
2002 2001 2000
Net income (loss) as reported .......................... $43,444 $ 9,669 $(2,259)
Add back amortization, net of tax ....................... — 502 869
Adjusted net income (loss) ............................ $43,444 $10,171 $(1,390)
Adjusted net income (loss) per common share—basic ....... $ 1.09 $ 0.30 $ (0.04)
Adjusted net income (loss) per common share—diluted ..... $ 0.86 $ 0.26 $ (0.04)
Other intangible assets are displayed in the consolidated balance sheets net of accumulated amortization of
$1,415 and $785 December 31, 2002 and 2001, respectively. Amortization expense related to these intangible
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