LeapFrog 2007 Annual Report Download - page 17

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Within each segment, sales of products that 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
LeapFrog has four classes of customers: (1) retailers, which resell our products to consumers in the United
States and some international regions; (2) distributors, which purchase our products for resale to retailers,
generally internationally; (3) U.S. schools and school districts, which purchase our products for use in their
classrooms; and (4) direct consumer customers who purchase our products via our website. Retailers and
distributors purchase our products either via FOB (freight on board) terms, in which case goods are picked up in
China and the customer pays through pre-established letters of credit or upon payment terms, or via “domestic”
terms, in which case we ship the goods from our regional warehouses to the distributor or retailer, and the
customer has payment terms based on the date of shipment. Our School customers purchase our products on
domestic terms, and our direct consumer customers pay in advance via credit card.
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 $2.1 million and $6.6 million,
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. For more information regarding our business segments,
see Note 20 to the Consolidated Financial Statements–Segment Reporting in this report.
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