LeapFrog 2011 Annual Report Download - page 69
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LEAPFROG ENTERPRISES, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except per share data)
9. Accrued Liabilities
The Company’s accrued liabilities as of December 31, 2011 and 2010 were as follows:
December 31,
2011 2010
Employee-related expenses..................................... $14,380 $ 8,627
Advertising and promotion ..................................... 10,993 9,995
Royalties payable ........................................... 7,894 9,145
Deferred revenue ........................................... 7,836 2,788
Manufacturing and warehousing ................................. 2,385 2,457
Marketing, consulting and web-related ............................. 2,346 2,243
Other ................................................... 4,546 6,170
Total .................................................. $50,380 $41,425
Employee-related expense accruals increased primarily due to greater achievement against Company
performance targets set as a part of the Company’s employee bonus programs for 2011 as compared to 2010.
Deferred revenue increased due to the launch of the LeapFrog App Center in August of 2011 and sales of
associated stored value cards to retailers. Based on the Company’s accounting policy for revenue recognition
for online purchases of digital content, revenue resulting from the sale of App Center stored value cards is
deferred until a customer is provided with a code that allows immediate access to download purchased
content.
10. Income Taxes
The Company’s income (loss) before taxes included the following components:
Years Ended December 31,
2011 2010 2009
United States .................................... $15,430 $3,367 $(10,399)
Foreign ........................................ 3,335 2,608 523
Total ........................................ $18,765 $5,975 $ (9,876)
The components of the provision for (benefit from) income taxes were as follows:
Years Ended December 31,
2011 2010 2009
Current:
Federal ...................................... $ 4 $ (79) $(7,969)
State ........................................ 40 (88) (219)
Foreign ...................................... (1,734) 404 461
Total current ................................ (1,690) 237 (7,727)
Deferred:
Federal ...................................... 314 314 85
State ........................................ 6 29 43
Foreign ...................................... 233 450 411
Total deferred ............................... 553 793 539
Grand total................................ $(1,137) $1,030 $(7,188)
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