LeapFrog 2007 Annual Report Download - page 79

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LEAPFROG ENTERPRISES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, except per share data)
Year Ended December 31,
2007 2006 2005
Net loss $(101,315) $(145,092) $ 17,500
Adjustments to reconcile net loss (income) to net cash provided (used in) by operating
activities:
Depreciation ....................................................... 18,189 16,285 17,579
Amortization ....................................................... 1,421 1,641 1,923
Unrealized foreign exchange (gain) loss .................................. 2,448 427 (3,733)
Deferred income taxes ................................................ (2,314) 25,999 4,339
Stock-based compensation ............................................ 9,511 7,303 2,642
Tax benefit from stock-based compensation ............................... — 109 2,662
Investment accretion on commercial paper ................................ (836) (512) (16)
Impairment of investment in auction rate securities ......................... 3,074 — —
Impairment of property and equipment ................................... 2,014 — —
Impairment of advanced royalty ........................................ 5,164 — —
Other ............................................................. (881) (335) 154
Other changes in operating assets and liabilities:
Accounts receivable ................................................. 5,190 115,931 (29,560)
Inventories ......................................................... 20,605 96,052 (37,883)
Prepaid expenses and other current assets ................................. (2,252) (2,578) (7,998)
Other assets ........................................................ 4,985 (2,361) (6,526)
Accounts payable ................................................... 148 (27,609) 11,518
Accrued liabilities and deferred revenue .................................. 17,280 5,776 (10,007)
Long-term liabilities ................................................. 2,768 (136) 12,138
Income taxes payable ................................................ (631) (499) 563
Net cash provided by (used in) operating activities ....................... (15,432) 90,401 (24,705)
Investing activities:
Purchases of property and equipment .................................... (26,625) (20,318) (16,668)
Purchases of investments ............................................. (460,329) (509,395) (300,790)
Sale of investments .................................................. 527,949 452,261 317,467
Net cash provided by investing activities ............................... 40,995 (77,452) 9
Financing activities:
Cash used to collateralize letter of credit ................................. — — (150)
Proceeds from release of restricted cash .................................. — 150 —
Purchases of treasury stock ............................................ — (37) (148)
Proceeds from the exercise of stock options and employee stock purchase plan . . . 1,915 4,059 10,597
Net cash provided by financing activities ............................... 1,915 4,172 10,299
Effect of exchange rate changes on cash .................................. (1,332) 1,771 2,260
Increase (decrease) in cash and cash equivalents ........................... 26,146 18,892 (12,137)
Cash and cash equivalents at beginning of period .............................. 67,314 48,422 60,559
Cash and cash equivalents at end of period .................................... $ 93,460 $ 67,314 $ 48,422
Supplemental Disclosure of Cash Flow Information
Cash paid during year for:
Income taxes, net of refunds ........................................... $ 3,727 $ 4,321 $ 1,433
Noncash investing and financing activities:
Impairment on investment in auction rate securities ......................... $ 3,074 — —
Asset retirements with zero book value .................................. $ 13,310 — —
Assets acquired under capital lease ...................................... $ 58 — $ 1,192
See accompanying notes
F-7