LeapFrog 2007 Annual Report Download - page 90

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LEAPFROG ENTERPRISES, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except per share and percent data)
6. Property and Equipment
Property and equipment consisted of the following:
December 31,
In thousands 2007 2006
Tooling, cards, dies, and plates ............................. $ 18,883 $ 29,425
Computers and software .................................. 39,115 31,214
Capitalized content development ........................... 30,559 23,358
Capitalized website costs ................................. 11,157 9,115
Equipment, furniture and fixtures ........................... 9,449 7,080
Leasehold improvements .................................. 5,335 5,562
Capitalized video costs ................................... 2,213 2,213
116,711 107,967
Less: accumulated depreciation ............................ (82,694) (80,173)
Property and equipment, net ........................... $ 34,017 $ 27,794
Capital leases of $641 and $583 at December 31, 2007 and 2006, respectively, are included in equipment,
furniture, and fixtures. The accumulated amortization on capital leases was $411 and $397 at December 31, 2007
and 2006, respectively. The related capital lease obligation is reflected on the balance sheet in accrued liabilities
and deferred revenue. During the year ended December 31, 2007, the Company retired fully depreciated tooling
cards, dies and plates with a cost of $13,310.
7. Intangible Assets
December 31,
In thousands 2007 2006
Trademarks, patents and other intangibles ...................... $14,378 $14,378
Less accumulated amortization ............................... (9,415) (7,994)
4,963 6,384
Goodwill ................................................ 19,549 19,549
Intangible assets, net ................................... $24,512 $25,933
In 2005, the Company entered into a ten-year technology license agreement with a third party to jointly
develop and customize their respective technologies to be combined in a platform and related licensed products.
The $6,000 license fee is included in intangible assets on the balance sheet and is being amortized on a straight-
line basis over the life of the contract.
F-18