LeapFrog 2013 Annual Report Download - page 32
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Please find page 32 of the 2013 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.Fiscal Year 2012 Compared to Fiscal Year 2011
Advertising expense for 2012 increased 9% as compared to 2011, but declined as a percentage of net sales
by two percentage points. The increase was in line with our strategy to drive continued demand for our
multimedia learning family of products including content, accessories, and hardware, including the launch of
LeapPad2.
Depreciation and Amortization Expenses
2013 2012 2011
% Change
2013 vs. 2012
% Change
2012 vs. 2011
(Dollars in millions)
Depreciation and amortization .... $10.7 $11.6 $11.2 (8)% 4%
As a percent of net sales ........ 2% 2% 2% —* —*
* Percentage point change
Fiscal Year 2013 Compared to Fiscal Year 2012
Depreciation and amortization expenses for 2013 decreased 8% as compared to 2012 and remained flat as a
percentage of net sales, primarily due to a reduction in amortization of other intangible assets as a result of
certain assets reaching their full amortization during the first quarter of 2012, partially offset by an increase in
depreciation of property and equipment as a result of an increase in capital expenditures in the current year
period.
Fiscal Year 2012 Compared to Fiscal Year 2011
Depreciation and amortization expenses for 2012 increased 4% as compared to 2011 and remained flat as a
percentage of net sales, primarily due to an increase in the depreciation of property and equipment as a result
of an increase in capital expenditures in 2012, partially offset by a reduction in amortization of other
intangible assets as a result of certain assets reaching their full amortization during the first quarter of 2012.
OTHER INCOME (EXPENSE)
The components of other income (expense) were as follows:
2013 2012 2011
% Change
2013 vs. 2012
% Change
2012 vs. 2011
(Dollars in millions)
Other income (expense):
Interest income ............ $0.1 $0.2 $0.1 (72)% 77%
Interest expense ............ — (0.1) (0.3) 100% 81%
Other, net ................ (1.1) (2.3) (4.8) 50% 52%
Total .................. $(1.1) $(2.1) $(4.9) 49% 57%
Fiscal Year 2013 Compared to Fiscal Year 2012
Other expense decreased for 2013 as compared to 2012, resulting primarily from the impact of foreign
currency changes on transactions denominated in foreign currencies as well as translation of foreign currency
denominated assets and liabilities, reduced to a certain extent by our short-term foreign exchange forward
contracts. During 2013, the U.S. dollar (‘‘USD’’) strengthened against certain of our major foreign currencies
and weakened against several other major foreign currencies, which resulted in offsetting impacts in foreign
currency transactional gains (losses). However, in 2012, the USD generally weakened against a majority of
our major foreign currencies.
Fiscal Year 2012 Compared to Fiscal Year 2011
Other expense decreased significantly for 2012 as compared to 2011, resulting primarily from our foreign
currency activity. The USD weakened against a majority of our foreign currencies during 2012, while it
strengthened in 2011, resulting in a $1.6 million unrealized foreign currency translation loss for the
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