LeapFrog 2005 Annual Report Download - page 49

Selling, General and Administrative Expenses
The selling, general and administrative expenses in dollars for each segment and the related percentage of
our total net sales were as follows:
Year Ended December 31,
2004 2003 Change
Segment $(1)
%of
Segment’s
Net Sales $(1)
%of
Segment’s
Net Sales $(1) %
U.S. Consumer ...................... $ 82.9 19.2% $64.4 11.8% $18.6 29%
International ........................ 17.1 11.2% 10.9 11.3% 6.2 57%
Education and Training ............... 20.8 37.6% 16.3 43.6% 4.4 27%
Total Company ..................... $120.8 18.9% $91.6 13.5% $29.2 32%
(1) In millions.
U.S. Consumer. The dollar increase in selling, general and administrative expenses for our U.S. Consumer
segment was primarily due to:
• Higher employee and employee-related expenses of $3.3 million due to increased headcount.
• Expense of approximately $3.1 million related to the startup of our new distribution center.
• Higher legal expenses of $6.4 million primarily related to pending litigation.
• Higher outside professional expenses of approximately $1.7 million related to the implementation of the
internal control requirements of the Sarbanes-Oxley Act.
International. The dollar increase in selling, general and administrative expenses for our International
segment was primarily due to:
• Higher compensation and related employee expenses, including sales commissions, in Europe of $2.3
million resulting primarily from increased headcount.
• Increased marketing related expenses of $1.5 million.
Education and Training. The dollar increase in selling, general and administrative expenses for our
Education and Training segment was primarily due to:
• Higher compensation and related employee expenses of $3.0 million resulting from expansion of the
sales force.
• Increased marketing related expenses of $ 1.4 million to support the segment’s expansion.
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