LeapFrog 2011 Annual Report Download - page 57

Download and view the complete annual report

Please find page 57 of the 2011 LeapFrog annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 196

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196

LEAPFROG ENTERPRISES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Years Ended December 31,
2011 2010 2009
Operating activities:
Net income (loss) .................................. $19,902 $ 4,945 $ (2,688)
Adjustments to reconcile net income (loss) to net cash provided
by (used in) operating activities:
Depreciation and amortization .......................... 19,995 20,337 20,495
Deferred income taxes ............................... 373 662 (7,351)
Stock-based compensation expense....................... 5,562 6,172 10,696
Impairment of investment in auction rate securities............ — — 431
Gain on sale of long-term investments .................... — (454) —
Loss on disposal of long-term assets...................... 14 117 1,100
Allowance for doubtful accounts ........................ 417 355 (1,194)
Other changes in operating assets and liabilities:
Accounts receivable, net .............................. (481) (10,334) (54,745)
Inventories ....................................... 13,006 (19,178) 29,328
Prepaid expenses and other current assets .................. 214 (924) 3,605
Other assets ...................................... 667 1,248 (824)
Accounts payable .................................. 3,293 (26,980) 2,496
Accrued liabilities .................................. 9,043 1,512 (5,368)
Long-term liabilities................................. (2,053) (38) (988)
Income taxes payable ................................ 210 (75) 13
Net cash provided by (used in) operating activities ........ 70,162 (22,635) (4,994)
Investing activities:
Purchases of property and equipment ..................... (11,732) (9,547) (6,345)
Capitalization of product costs.......................... (8,122) (7,617) (7,977)
Purchases of intangible assets .......................... — (5,335) (235)
Disposal of property and equipment ...................... 67 — —
Sales of investments ................................ — 1,263 1,282
Other........................................... (65) — —
Net cash used in investing activities ................... (19,852) (21,236) (13,275)
Financing activities:
Proceeds from stock option exercises and employee stock
purchase plans ................................... 3,029 1,883 77
Net cash paid for payroll taxes on restricted stock unit releases . . . (797) (262) (275)
Borrowing on line of credit............................ 35,000 42,000 —
Paydown on line of credit............................. (35,000) (42,000) —
Net cash provided by (used in) financing activities ........ 2,232 1,621 (198)
Effect of exchange rate changes on cash..................... (158) 117 978
Net change in cash and cash equivalents ................... 52,384 (42,133) (17,489)
Cash and cash equivalents, beginning of period ................ 19,479 61,612 79,101
Cash and cash equivalents, end of period .................. $71,863 $ 19,479 $ 61,612
Supplemental disclosures of cash flow information:
Cash paid for interest expense ........................... $ (258) $ (222) $ (117)
Cash (paid) refunded for income taxes, net ................... $ (412) $ 281 $ (164)
Non-cash investing and financing activities:
Temporary gains on auction rate securities, net ................ $ — $ 194 $ 435
See accompanying notes
47