LeapFrog 2007 Annual Report Download - page 107

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LEAPFROG ENTERPRISES, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except per share and percent data)
Within each segment, sales of products which comprised 10% or more of the segment’s total net sales in
2007 or 2006 were as follows:
Net Sales % of Total
Year Ended
December 31, Change
Year Ended
December 31,
2007(1) 2006(1) $(1) % 2007 2006
U.S. Consumer segment:
Leapster (2) ....................................... $133.2 $148.8 $(15.6) (10)% 43% 42%
All other products .................................. 179.7 201.9 (22.2) (11) 57 58
Total U.S. Consumer segment .................... $312.9 $350.7 $(37.8) (11)%100% 100%
International segment:
LeapPad (3) ....................................... $ 9.7 $ 21.0 $(11.3) (54)% 9% 18%
Leapster (2) ....................................... 26.4 28.6 (2.2) (8) 26 25
All other products .................................. 67.3 65.0 2.3 4 65 57
Total International segment ...................... $103.4 $114.6 $(11.2) (10)%100% 100%
School segment:
LeapPad (3) ....................................... $ 3.5 $ 3.1 $ 0.4 13% 13% 8%
LeapTrack ........................................ 4.6 7.7 (3.1) (40) 18 21
Literacy Center .................................... 2.2 5.5 (3.3) (60) 8 15
Interactive Library ................................. 3.8 7.7 (3.9) (51) 15 21
All other products .................................. 11.9 12.9 (1.0) (8) 46 35
Total School segment ........................... $ 26.0 $ 36.9 $(10.9) (30)%100% 100%
Consolidated
Leapster (2) ........................................... $161.0 $177.9 $(16.9) (9)% 36% 35%
All other products .................................. 281.3 324.4 (43.1) (13) 64 65
Total Net Sales ................................ $442.3 $502.3 $(60.0) (12)%100% 100%
(1) In millions
(2) Includes sales of platform hardware, software, and accessories for the Leapster, Leapster TV, and Leapster
L-MAX product lines
(3) Includes sales of classic LeapPad hardware and software
Within each segment, LeapFrog has three classes of customers: (1) direct customers who pay cash in
advance through check or credit card, (2) distributors, and (3) retailers. Distributors and retailers in all countries
can purchase goods either: (1) FOB (freight on board), picked up in Shenzhen China, in which case they pay by
pre-established lines of credit, or (2) shipped by LeapFrog to the distributor, in which case they have payment
terms based on the shipment date.
LeapFrog’s long-lived assets are primarily composed of net fixed assets and net intangible assets. As of
December 31, 2007 and 2006, long-lived assets located in foreign countries were $1,859 and $6,579,
respectively. The majority of long-lived assets outside of the United States relate to manufacturing tooling
located at the company’s contract manufacturers in Asia. Long-lived assets located in the U.S. at December 31,
2007 and 2006 were $32,158 and $21,215, respectively.
F-35