LeapFrog 2009 Annual Report Download - page 58

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LEAPFROG ENTERPRISES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Years Ended December 31,
2009 2008 (1) 2007 (1)
Operating Activities:
Net loss ............................................................. $ (2,688) $(68,354) $(102,476)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization ........................................... 20,495 22,954 19,610
Unrealized foreign exchange (gain) loss .................................... (1,940) 3,146 2,448
Deferred income taxes .................................................. (7,351) (68) (2,314)
Stock-based compensation expense ....................................... 10,696 11,109 10,672
Impairment of investment in auction rate securities ........................... 431 6,561 2,477
Loss on disposal of long-term assets ....................................... 1,100 434 2,014
Allowance for doubtful accounts ......................................... (1,194) 5,045 (286)
Other changes in operating assets and liabilities:
Accounts receivable, net ................................................ (54,746) 27,750 4,324
Inventories ........................................................... 29,328 (7,919) 20,784
Prepaid expenses and other current assets ................................... 3,605 8,950 (2,252)
Other assets .......................................................... (824) 1,860 4,985
Accounts payable ..................................................... 2,496 11,463 148
Accrued liabilities ..................................................... (5,368) (11,773) 18,655
Long-term liabilities ................................................... (988) 3,785 2,768
Income taxes payable .................................................. 13 155 (631)
Other ............................................................... 1,941 (3,140) 3,642
Net cash provided by (used in) operating activities ......................... (4,994) 11,958 (15,432)
Investing activities:
Purchases of property and equipment ...................................... (6,345) (11,434) (17,382)
Capitalization of product costs ........................................... (7,977) (11,863) (9,243)
Purchases of other long-term intangible assets ............................... (235) — —
Purchases of investments ............................................... — — (460,329)
Sales of investments ................................................... 1,282 — 527,949
Net cash provided by (used in) investing activities .......................... (13,275) (23,297) 40,995
Financing activities:
Proceeds from stock option exercises and employee stock purchase plans ......... 77 624 2,836
Net cash paid for payroll taxes on restricted stock unit releases .................. (275) (840) (921)
Borrowing on line of credit .............................................. — 30,000 —
Paydowns on line of credit .............................................. — (30,000) —
Net cash provided by (used in) financing activities ......................... (198) (216) 1,915
Effect of exchange rate changes on cash .................................... 978 (2,804) (1,332)
Net change in cash and cash equivalents for the period ......................... (17,489) (14,359) 26,146
Cash and cash equivalents at beginning of period ................................ 79,101 93,460 67,314
Cash and cash equivalents at end of period ................................... $61,612 $ 79,101 $ 93,460
Supplemental Disclosures of Cash Flow Information
Cash paid during year for:
Interest expense ....................................................... $ 117 $ 247 $ —
Income taxes, net of refunds ............................................. (164) (5,654) 3,727
Non-cash investing and financing activities:
Temporary gains (losses) on auction rate securities, net ........................ $ 435 $ 598 $ (598)
Assets acquired under capital lease ........................................ — — 58
(1) Certain amounts have been revised for insignificant errors. Refer to Note 1, “Summary of Significant
Accounting Policies” for additional information.
See accompanying notes
48