LeapFrog 2008 Annual Report Download - page 65

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LEAPFROG ENTERPRISES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Years Ending December 31,
2008 2007 2006
Net loss $(68,256) $(101,315) $(145,092)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization .......................................... 22,954 19,610 17,926
Unrealized foreign exchange loss ........................................ 3,146 2,448 427
Deferred income taxes ................................................. (68) (2,314) 25,999
Stock-based compensation expense, net of tax benefit ........................ 11,011 9,511 7,303
Impairment of investment in auction rate securities .......................... 6,561 2,477 —
Accretion on investments .............................................. — (836) (512)
Provision for (recovery on) doubtful accounts .............................. 5,045 (286) (544)
Impairment of property and equipment .................................... 434 2,014 —
Increase (decrease) in other accounts receivable-related allowances ............. 10,289 (11,354) (24,035)
Other changes in operating assets and liabilities:
Accounts receivable .................................................. 17,461 15,678 141,182
Inventories .......................................................... (8,294) 20,605 96,052
Prepaid expenses and other current assets .................................. 8,950 (2,252) (2,578)
Other assets ......................................................... 1,860 4,985 (2,361)
Accounts payable .................................................... 11,463 148 (27,609)
Accrued liabilities and deferred revenue ................................... (11,398) 18,834 5,104
Long-term liabilities .................................................. 3,785 2,768 (136)
Income taxes payable ................................................. 155 (631) (499)
Other .............................................................. (3,140) 4,478 (226)
Net cash provided by (used in) operating activities ........................ 11,958 (15,432) 90,401
Investing activities:
Purchases of property and equipment ..................................... (11,434) (17,382) (11,351)
Capitalization of product costs .......................................... (11,863) (9,243) (8,967)
Purchases of investments .............................................. — (460,329) (509,395)
Sales of investments .................................................. — 527,949 452,261
Net cash (used in) provided by investing activities ......................... (23,297) 40,995 (77,452)
Financing activities:
Proceeds from stock option exercises and employee stock purchase plans ........ 624 2,836 4,059
Net cash paid for payroll taxes on restricted stock unit releases ................. (840) (921) —
Proceeds from release of restricted cash ................................... — — 150
Purchases of treasury stock ............................................. — — (37)
Borrowings on asset-backed line of credit ................................. 30,000 — —
Repayment of asset-backed line of credit .................................. (30,000) — —
Net cash (used in) provided by financing activities ........................ (216) 1,915 4,172
Effect of exchange rate changes on cash ................................... (2,804) (1,332) 1,771
Net change in cash and cash equivalents for the period ........................ (14,359) 26,146 18,892
Cash and cash equivalents at beginning of period ............................... 93,460 67,314 48,422
Cash and cash equivalents at end of period .................................. $79,101 $ 93,460 $ 67,314
Supplemental Disclosures of Cash Flow Information
Cash paid during year for:
Interest expense ...................................................... $ 247 $ — $ —
Income taxes, net of refunds ............................................ (5,654) 3,727 4,321
Non-cash investing and financing activities:
Temporary impairment loss / (reclass to other-than-temporary) on auction rate
securities ......................................................... $ (598) $ 598 $ —
Assets acquired under capital lease ....................................... — 58 —
See accompanying notes
F-7