LeapFrog 2015 Annual Report Download - page 83

LEAPFROG ENTERPRISES, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except per share data)
16. Stockholders’ Equity − (continued)
common stock at an average price of $6.50, which were retired upon repurchase. This stock repurchase
program expired on December 31, 2014.
17. Net Income (Loss) per Share
The following table sets forth the computation of basic and diluted net income per share for the periods
presented:
Year Ended
March 31,
2015
Three Months
Ended
March 31, Years Ended December 31,
2014 2013 2012
(Numerator)
Net income (loss) ................... $(218,772) $(11,783) $84,009 $86,452
(Denominator)
Weighted average shares outstanding
during period:
Class A and B − basic ............... 70,071 69,408 68,411 67,100
Common stock equivalents ........... — — 1,991 2,620
Class A and B − diluted ............. 70,071 69,408 70,402 69,720
Net income (loss) per share:
Class A and B − basic ............... $ (3.12) $ (0.17) $ 1.23 $ 1.29
Class A and B − diluted ............. $ (3.12) $ (0.17) $ 1.19 $ 1.24
Options to purchase shares of common stock and RSUs totaling 6,306, 8,422, 3,098 and 1,472 were excluded
from the calculation of diluted net income per share for the year ended March 31, 2015, the three months
ended March 31, 2014, and the years ended December 31, 2013 and 2012, respectively, as the effect would
have been antidilutive.
18. Related Party Transactions
Our Chief Executive Officer, John Barbour, has served on the board of directors of the Toy Industry
Association, Inc. (‘‘TIA’’) a not-for-profit trade association that represents toy and youth entertainment
companies, since 2013. For the year ended March 31, 2015, the three months ended March 31, 2014, and the
year ended December 31, 2013, the Company made payments to TIA of $133, $120 and $128 respectively.
These payments were for TIA membership and sponsorship, and were made on terms the Company believes
are comparable to those it would obtain in an arm’s-length relationship with the TIA.
During the quarter ended March 31, 2013 and during the year ended December 31, 2012, Mollusk Holdings,
LLC, an entity controlled by Lawrence J. Ellison, CEO of Oracle Corporation, was a stockholder of the
Company and Mr. Ellison may have been considered a related party to the Company under applicable SEC
rules. On January 1, 2013, Mr. Ellison may be deemed to have had or shared the power to direct the voting
and disposition, and therefore to have beneficial ownership of, approximately 12.46% of the combined voting
power of the Company’s Class A common stock and Class B common stock as of that date. During the
quarter ended March 31, 2013, Mollusk Holdings sold 30,000 shares of the Company’s Class A common stock
per trading day under a stock trading plan and on March 15, 2013, Mollusk Holdings converted its remaining
Class B common stock into Class A common stock. Accordingly, at that point, Mr. Ellison was no longer
considered a related party to the Company under applicable SEC rules since Mollusk Holdings owned less
than 5% of the combined voting power of the Company’s Class A common stock and Class B common stock
as of that date.
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