LeapFrog 2010 Annual Report Download - page 57

LEAPFROG ENTERPRISES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Years Ended December 31,
2010 2009 2008
Operating activities:
Net income (loss) ............................................. $ 4,945 $ (2,688) $(68,354)
Adjustments to reconcile net income (loss) to net cash provided by (used in)
operating activities:
Depreciation and amortization ................................... 20,337 20,495 22,954
Deferred income taxes ......................................... 662 (7,351) (68)
Stock-based compensation expense ............................... 6,172 10,696 11,109
Impairment of investment in auction rate securities .................. — 431 6,561
Gain on sale of long-term investments ............................. (454) — —
Loss on disposal of long-term assets .............................. 117 1,100 434
Allowance for doubtful accounts ................................. 355 (1,194) 5,045
Other changes in operating assets and liabilities:
Accounts receivable, net ....................................... (10,334) (54,745) 27,750
Inventories .................................................. (19,178) 29,328 (7,919)
Prepaid expenses and other current assets .......................... (924) 3,605 8,950
Other assets ................................................. 1,248 (824) 1,866
Accounts payable ............................................. (26,980) 2,496 11,463
Accrued liabilities ............................................ 1,512 (5,368) (11,773)
Long-term liabilities ........................................... (38) (988) 3,785
Income taxes payable .......................................... (75) 13 155
Net cash provided by (used in) operating activities ............ (22,635) (4,994) 11,958
Investing activities:
Purchases of property and equipment ............................. (9,547) (6,345) (11,434)
Capitalization of product costs ................................... (7,617) (7,977) (11,863)
Purchases of intangible assets ................................... (5,335) (235) —
Sales of investments ........................................... 1,263 1,282 —
Net cash used in investing activities ......................... (21,236) (13,275) (23,297)
Financing activities:
Proceeds from stock option exercises and employee stock purchase
plans ..................................................... 1,883 77 624
Net cash paid for payroll taxes on restricted stock unit releases ......... (262) (275) (840)
Borrowing on line of credit ..................................... 42,000 — 30,000
Paydown on line of credit ....................................... (42,000) — (30,000)
Net cash provided by (used in) financing activities ............. 1,621 (198) (216)
Effect of exchange rate changes on cash ............................... 117 978 (2,804)
Net change in cash and cash equivalents ............................. (42,133) (17,489) (14,359)
Cash and cash equivalents, beginning of period ......................... 61,612 79,101 93,460
Cash and cash equivalents, end of period ............................ $19,479 $ 61,612 $ 79,101
Supplemental disclosures of cash flow information:
Cash paid for interest expense ....................................... $ (222) $ (117) $ (247)
Cash (paid) refunded for income taxes, net ............................. $ 281 $ (164) $ (5,654)
Non-cash investing and financing activities:
Temporary gains on auction rate securities, net .......................... $ 194 $ 435 $ 598
See accompanying notes
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