LeapFrog 2015 Annual Report Download - page 82

LEAPFROG ENTERPRISES, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except per share data)
14. Stock-based Compensation − (continued)
The total fair value of shares vested in the year ended March 31, 2015, the three months ended March 31,
2014 and the years ended December 31, 2013 and 2012 was $3,628, $1,257, $2,720 and $3,854, respectively.
As of March 31, 2015, unrecognized compensation cost related to RSUs granted under the plans totaled
$9,106. The unrecognized compensation cost is expected to be recognized over a weighted-average period of
2.41 years.
15. Derivative Financial Instruments
At March 31, 2015, the Company had one outstanding foreign exchange forward contract with notional value
of $4,760. As of March 31, 2014, the Company did not have foreign exchange forward contracts outstanding
as the related foreign exchange exposures were not significant. The gains and losses on such instruments are
recorded in other income (expense) in the consolidated statements of operations. Gains and losses from
foreign exchange forward contracts, net of gains and losses on the underlying transactions denominated in
foreign currency, for the years ended March 31, 2015, the three months ended March 31, 2014, and the years
ended December 31, 2013 and 2012 were as follows:
Year Ended
March 31,
2015
Three Months
Ended March 31, Years Ended December 31,
2014 2013 2012
(Dollars In thousands)
Gain (loss) on foreign exchange forward
contracts ........................ $4,850 $ 454 $(282) $(2,232)
Gain (loss) on underlying transactions
denominated in foreign currency ....... (5,169) (521) (614) 666
Net losses ...................... $ (319) $ (67) $(896) $(1,566)
16. Stockholders’ Equity
The Company is authorized to issue 180,000 shares of common stock at a par value of $0.0001 per share, of
which 139,500 shares are designated as Class A and 40,500 shares are designated as Class B. Class A shares
outstanding at March 31, 2015 and 2014 were 66,084 and 65,229, respectively. Class B shares outstanding at
March 31, 2015 and 2014 were 4,394 and 4,396 respectively.
Class A stockholders are entitled to one vote per share and Class B stockholders are entitled to ten votes per
share. The Class B stockholders have the right to convert their Class B shares into an equal number of
Class A shares. During the year ended March 31, 2015 and the years ended December 31, 2013 and 2012,
certain Class B stockholders elected to convert 2, 1,319 and 5,398 shares, respectively, of their Class B
common stock into the same number of shares of Class A common stock at par value. These transactions had
no material impact on the Company’s financial statements.
Class A and B stockholders are entitled to dividends paid in equal amounts per share on all shares of Class A
and Class B common stock.
From the inception of the Company through the date of this report, no dividends have been declared or paid
and management has no plans at this time to pay dividends in the foreseeable future.
In the event of liquidation, Class A and B common stockholders are equally entitled to all assets of the
Company available for distribution.
On February 10, 2014, the Company’s board of directors approved a stock repurchase program authorizing the
Company to repurchase up to an aggregate of $30,000 of its Class A common stock through December 31,
2014. During the three months ended June 30, 2014, the Company repurchased approximately 6 shares of its
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