LeapFrog 2012 Annual Report Download - page 49

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LEAPFROG ENTERPRISES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Years Ended December 31,
2012 2011 2010
Operating activities:
Net income ....................................... $ 86,452 $ 19,902 $ 4,945
Adjustments to reconcile net income to net cash provided by (used in)
operating activities:
Depreciation and amortization ........................... 22,082 19,995 20,337
Deferred income taxes ................................ (20,047) 716 924
Stock-based compensation expense ....................... 6,991 5,562 6,172
Loss (gain) on sale of long-term investments, net of tax ......... 91 — (454)
Loss on disposal of long-term assets ...................... 2 14 117
Allowance for doubtful accounts ......................... 3,040 417 355
Other changes in operating assets and liabilities:
Accounts receivable, net ............................... (24,839) (481) (10,334)
Inventories ........................................ (5,727) 13,006 (19,178)
Prepaid expenses and other current assets ................... (197) 214 (924)
Other assets ....................................... (165) 667 1,248
Accounts payable ................................... (3,119) 3,293 (26,980)
Accrued liabilities and deferred revenue .................... 9,311 9,043 1,512
Other long-term liabilities .............................. (6,135) (2,396) (300)
Income taxes payable ................................. 116 210 (75)
Net cash provided by (used in) operating activities ......... 67,856 70,162 (22,635)
Investing activities:
Purchases of property and equipment ...................... (16,321) (11,732) (9,547)
Capitalization of product costs ........................... (8,793) (8,122) (7,617)
Purchases of intangible assets ........................... — — (5,335)
Disposal of property and equipment ....................... — 67 —
Sales of investments ................................. 2,500 — 1,263
Other ............................................ — (65) —
Net cash used in investing activities .................... (22,614) (19,852) (21,236)
Financing activities:
Proceeds from stock option exercises and employee stock
purchase plan .................................... 4,222 3,029 1,883
Net cash paid for payroll taxes on restricted stock unit releases .... (1,762) (797) (262)
Borrowing on line of credit ............................. — 35,000 42,000
Payment on line of credit .............................. — (35,000) (42,000)
Net cash provided by financing activities ................ 2,460 2,232 1,621
Effect of exchange rate changes on cash ...................... 435 (158) 117
Net change in cash and cash equivalents .................... 48,137 52,384 (42,133)
Cash and cash equivalents, beginning of period ................. 71,863 19,479 61,612
Cash and cash equivalents, end of period ................... $120,000 $ 71,863 $ 19,479
Supplemental disclosures of cash flow information:
Cash paid for interest expense ............................ $ (1) $ (258) $ (222)
Cash (paid) refunded for income taxes, net .................... $ (1,221) $ (412) $ 281
Non-cash investing and financing activities:
Transfer of temporary gain on long-term investments ............. $ 241 $ — $ 194
See accompanying notes
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