LeapFrog 2011 Annual Report Download - page 67
Download and view the complete annual report
Please find page 67 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.-
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.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except per share data)
4. Inventories
The Company’s inventories, stated on a first-in, first-out basis at the lower of cost or market as of
December 31, 2011 and 2010, were as follows:
December 31,
2011 2010
Raw materials ............................................. $ 3,444 $ 3,277
Finished goods ............................................. 30,844 44,178
Total .................................................. $34,288 $47,455
During 2011, 2010 and 2009, the Company recorded net sales of inventory written down in the previous year
resulting in a benefit to gross margin of $547, $1,997 and $2,899, respectively.
At December 31, 2011 and 2010, there were no accrued liabilities for cancelled purchase orders.
5. Property and Equipment
As of December 31, 2011 and 2010, property and equipment consisted of the following:
December 31,
2011 2010
Tooling, cards, dies and plates .................................. $18,769 $ 16,250
Computers and software....................................... 45,280 36,729
Equipment, furniture and fixtures ................................ 3,663 3,650
Leasehold improvements ...................................... 4,296 4,347
72,008 60,976
Less: accumulated depreciation .................................. (54,127) (45,917)
Total .................................................. $17,881 $ 15,059
Depreciation expense for tooling cards, dies and plates is charged to cost of sales in the statement of
operations as the expense relates directly to the product manufacturing process. The expense charged to
cost of sales was $2,277, $2,238 and $3,193 for the three years ended December 31, 2011, 2010 and
2009, respectively.
Depreciation expense related to the remainder of property and equipment included in depreciation and
amortization expense in the statements of operations was $6,555, $6,401 and $7,395 for the three years ended
December 31, 2011, 2010 and 2009, respectively.
6. Capitalized Product Costs
The Company’s capitalized product costs include external costs related to the development of content for its
learning products and external website development costs for its website. The Company’s capitalized product
costs as of December 31, 2011 and 2010 were as follows:
December 31,
2011 2010
Content costs .............................................. $36,759 $ 31,603
Website development costs ..................................... 9,835 8,613
Less: accumulated amortization.................................. (34,083) (27,032)
Total .................................................. $12,511 $ 13,184
57