LeapFrog 2004 Annual Report Download - page 108

Download and view the complete annual report

Please find page 108 of the 2004 LeapFrog 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.

Page out of 160

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160

LEAPFROG ENTERPRISES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except per share and percent data)
Total expense to the Company related to this plan was $307, $238 and $169 in 2004, 2003 and 2002,
respectively.
23. Segment Reporting
The Company’s reportable segments include U.S. Consumer, International and Education and Training.
The U.S. Consumer segment includes the design, production and marketing of electronic educational toys
and books, sold primarily through the retail channels. For the International segment, the Company designs,
markets and sells products primarily in the non-U.S. consumer product market. The Education and Training
segment includes the design, production and marketing of educational books and toys sold primarily to school
systems.
The accounting policies of the segments are the same as those described in Note 2 of these notes to
consolidated financial statements.
Net Sales
Income
(Loss) from
Operations
Total
Assets
2004
U.S. Consumer ...................................... $431,861 $ (49,886) $435,255
Education and Training ................................ 55,235 10,947 17,167
International ......................................... 153,193 24,956 107,372
Total ............................................... $640,289 $ (13,983) $559,794
2003
U.S. Consumer ...................................... $545,976 $ 83,209 $472,928
Education and Training ................................ 37,469 (194) 20,100
International ......................................... 96,567 26,443 59,631
Total ............................................... $680,012 $109,458 $552,659
2002
U.S. Consumer ...................................... $458,048 $ 72,692 $354,874
Education and Training ................................ 20,138 (9,042) 6,602
International ......................................... 53,586 7,701 36,206
Total ............................................... $531,772 $ 71,351 $397,682
In 2004, the Company had net sales in the United Kingdom of $67.8 million, which was 10.6% of the
Company’s total consolidated net sales for 2004. In 2003 and 2002, the Company had net sales in the United
Kingdom of $39.0 million and $20.2 million, respectively. No other country accounted for more than 10% of the
Company’s net sales for 2002 through 2004. The Company attributes sales to non-United States countries on the
basis of sales billed by each of its foreign subsidiaries to its customers. For example, the Company attributes
sales to the United Kingdom based on the sales billed by the Company’s United Kingdom-based foreign
subsidiary, Leap Frog Toys (UK) Limited, to its customers. Additionally, the Company attributes sales to non-
United States countries if product is shipped from Macau or one of the Company’s leased warehouses in the
United States to a distributor in a foreign country.
As of December 31, 2004, 2003 and 2002, long-lived assets located in foreign countries were $10,973,
$1,842 and $418, respectively.
F-29