Leapfrog Enterprises (LF) 10-Q 6 Nov 13 2013 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2013	Oct. 31, 2013	Oct. 31, 2013
		Class A Common Stock [Member]	Class B Common Stock [Member]
Document Information [Line Items]	'	'	'
Document Type	'10-Q	'	'
Amendment Flag	'false	'	'
Document Period End Date	30-Sep-13	'	'
Document Fiscal Year Focus	'2013	'	'
Document Fiscal Period Focus	'Q3	'	'
Current Fiscal Year End Date	'--12-31	'	'
Trading Symbol	'LF	'	'
Entity Registrant Name	'LEAPFROG ENTERPRISES INC	'	'
Entity Central Index Key	'0001138951	'	'
Entity Filer Category	'Accelerated Filer	'	'
Entity Common Stock, Shares Outstanding	'	64,527,938	4,395,461

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2012
In Thousands, unless otherwise specified
Current assets:	'	'	'
Cash and cash equivalents	$78,373	$120,000	$49,427
Accounts receivable, net of allowances for doubtful accounts	184,798	180,043	170,106
Inventories	121,738	40,311	115,083
Prepaid expenses and other current assets	8,727	8,353	9,522
Deferred income taxes	4,248	9,315	1,035
Total current assets	397,884	358,022	345,173
Deferred income taxes	6,181	13,269	1,309
Property and equipment, net	32,233	23,723	20,411
Capitalized product costs, net	15,825	12,109	10,935
Goodwill	19,549	19,549	19,549
Other intangible assets, net	200	950	1,550
Other assets	1,161	1,283	1,534
Total assets	473,033	428,905	400,461
Current liabilities:	'	'	'
Accounts payable	59,086	31,617	82,128
Accrued liabilities	35,348	51,353	37,546
Deferred revenue	12,696	8,516	8,176
Income taxes payable	712	493	414
Total current liabilities	107,842	91,979	128,264
Long-term deferred income taxes	3,759	3,759	3,798
Other long-term liabilities	1,824	3,224	2,723
Total liabilities	113,425	98,962	134,785
Commitments and contingencies (Note 11)	'	'	'
Stockholders' equity:	'	'	'
Common Stock	7	7	7
Treasury stock	-185	-185	-185
Additional paid-in capital	415,618	405,078	403,187
Accumulated other comprehensive income	124	1,071	976
Accumulated deficit	-55,956	-76,028	-138,309
Total stockholders' equity	359,608	329,943	265,676
Total liabilities and stockholders' equity	473,033	428,905	400,461
Class A Common Stock [Member]	'	'	'
Stockholders' equity:	'	'	'
Common Stock	6	6	6
Class B Common Stock [Member]	'	'	'
Stockholders' equity:	'	'	'
Common Stock	$1	$1	$1

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2012
In Thousands, except Per Share data, unless otherwise specified
Accounts receivable, allowances for doubtful accounts	$106	$292	$3,893
Class A Common Stock [Member]	'	'	'
Common Stock, par value per share	$0.00	$0.00	$0.00
Common Stock, shares authorized	139,500	139,500	139,500
Common Stock, shares outstanding	64,524	61,970	61,905
Class B Common Stock [Member]	'	'	'
Common Stock, par value per share	$0.00	$0.00	$0.00
Common Stock, shares authorized	40,500	40,500	40,500
Common Stock, shares outstanding	4,395	5,715	5,715

CONSOLIDATED_STATEMENTS_OF_OPE

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract]	'	'	'	'
Net sales	$200,985	$193,072	$366,908	$336,562
Cost of sales	121,607	115,771	223,316	200,974
Gross profit	79,378	77,301	143,592	135,588
Operating expenses:	'	'	'	'
Selling, general and administrative	18,893	21,257	62,612	65,158
Research and development	7,543	9,164	25,250	26,902
Advertising	7,411	7,179	14,253	13,932
Depreciation and amortization	2,631	2,838	8,041	8,751
Total operating expenses	36,478	40,438	110,156	114,743
Income from operations	42,900	36,863	33,436	20,845
Other income (expense):	'	'	'	'
Interest income	12	37	54	226
Interest expense	-9	-49	-9	-49
Other, net	37	-898	12	-2,014
Total other income (expense), net	40	-910	57	-1,837
Income before income taxes	42,940	35,953	33,493	19,008
Provision for (benefit from) income taxes	16,567	-5,785	13,421	-5,163
Net income	$26,373	$41,738	$20,072	$24,171
Net income per share:	'	'	'	'
Class A and B - basic	$0.38	$0.62	$0.29	$0.36
Class A and B - diluted	$0.37	$0.60	$0.28	$0.35
Weighted-average shares used to calculate net income per share:	'	'	'	'
Class A and B - basic	68,552	67,400	68,200	66,912
Class A and B - diluted	71,051	69,512	70,744	69,071

CONSOLIDATED_STATEMENTS_OF_COM

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract]	'	'	'	'
Net income	$26,373	$41,738	$20,072	$24,171
Other comprehensive income, before tax:	'	'	'	'
Currency translation adjustments	558	1,134	-947	1,291
Transfer of temporary gain on long-term investments	'	'	'	-241
Total other comprehensive income, before tax	558	1,134	-947	1,050
Transfer of tax expense allocated to temporary gain on long-term investments	'	'	'	151
Other comprehensive income, net of tax	558	1,134	-947	1,201
Comprehensive income	$26,931	$42,872	$19,125	$25,372

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Operating activities:	'	'
Net income	$20,072	$24,171
Adjustments to reconcile net loss to net cash provided by operating activities:	'	'
Depreciation and amortization	15,241	16,871
Deferred income taxes	12,140	238
Stock-based compensation expense	7,166	5,066
Loss on sale of long-term investments, net of tax	'	91
Loss on disposal of long-term assets	'	2
Allowance for doubtful accounts	-101	3,371
Other changes in operating assets and liabilities:	'	'
Accounts receivable, net	-5,117	-15,493
Inventories	-81,848	-80,149
Prepaid expenses and other current assets	-424	-1,367
Other assets	122	-414
Accounts payable	27,509	47,454
Accrued liabilities and deferred revenue	-11,712	-4,805
Other long-term liabilities	-1,400	-6,638
Income taxes payable	224	37
Net cash used in operating activities	-18,128	-11,565
Investing activities:	'	'
Purchases of property and equipment	-17,127	-10,396
Capitalization of product costs	-9,605	-5,623
Sales of investments	'	2,500
Net cash used in investing activities	-26,732	-13,519
Financing activities:	'	'
Proceeds from stock option exercises and employee stock purchase plan	4,499	4,007
Net cash paid for payroll taxes on restricted stock unit releases	-1,126	-1,513
Net cash provided by financing activities	3,373	2,494
Effect of exchange rate changes on cash	-140	154
Net change in cash and cash equivalents	-41,627	-22,436
Cash and cash equivalents, beginning of period	120,000	71,863
Cash and cash equivalents, end of period	$78,373	$49,427

Basis_of_Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2013
Basis of Presentation [Abstract]	'
Basis of Presentation	'
		1	Basis of Presentation
	In the opinion of management, all normal, recurring adjustments considered necessary for a fair statement of the financial position and interim results of LeapFrog Enterprises, Inc. and its consolidated subsidiaries (collectively, the "Company" or "LeapFrog" unless the context indicates otherwise) as of and for the periods presented have been included. The accompanying unaudited consolidated financial statements and related disclosures have been prepared in accordance with United States generally accepted accounting principles ("U.S. GAAP") applicable to interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The consolidated financial statements include the accounts of LeapFrog and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.
	The consolidated balance sheet at December 31, 2012 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The financial information included herein should be read in conjunction with the consolidated financial statements and related notes in the Company's 2012 Annual Report on Form 10-K filed with the United States ("U.S.") Securities and Exchange Commission (the "SEC") on March 11, 2013 (the "2012 Form 10-K").
	The accounting policies used by the Company in its presentation of interim financial results are consistent with those presented in Note 2 to the consolidated financial statements included in the Company's 2012 Form 10-K.
	Due to the seasonality of the Company's business, the results of operations for interim periods are not necessarily indicative of the operating results for a full year.
	Certain amounts in the financial statements for prior periods have been reclassified to conform to the current year presentation.
	Accumulated other comprehensive income consists solely of currency translation adjustments.

Fair_Value_of_Financial_Instru

Fair Value of Financial Instruments and Investments	9 Months Ended
	Sep. 30, 2013
Fair Value of Financial Instruments and Investments [Abstract]	'
Fair Value of Financial Instruments and Investments	'
		2	Fair Values of Financial Instruments and Investments
	Fair value is defined by authoritative guidance as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's assumptions about the factors market participants would use in valuing the asset or liability. The guidance establishes three levels of inputs that may be used to measure fair value:
		·	Level 1 includes financial instruments for which quoted market prices for identical instruments are available in active markets. As of September 30, 2013, the Company's Level 1 assets consist of money market funds with original maturities of three months or less and recorded in cash and cash equivalents. These assets are considered highly liquid and are stated at cost, which approximates market value.
		·	Level 2 includes financial instruments for which there are inputs other than quoted prices included within Level 1 that are observable for the instrument. Such inputs could be quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets with insufficient volume or infrequent transactions (less-active markets), or model-driven valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data, including market interest rate curves, referenced credit spreads and prepayment rates.
	The Company's Level 2 assets and liabilities consist of outstanding foreign exchange forward contracts used to hedge its exposure to certain foreign currencies, including the British Pound, Canadian Dollar and Euro. The Company's outstanding foreign exchange forward contracts, all with maturities of approximately one month, had notional values of $70,665, $53,577 and $72,632 at September 30, 2013, December 31, 2012 and September 30, 2012, respectively. The fair market values of these instruments were $(195), $(255) and $(87) and recorded in accrued liabilities as of September 30, 2013, December 31, 2012 and September 30, 2012, respectively.
		·	Level 3 includes financial instruments for which fair value is derived from valuation techniques, including pricing models and discounted cash flow models, in which one or more significant inputs, including the Company's own assumptions, are unobservable. The Company did not hold any Level 3 assets as of September 30, 2013, December 31, 2012 and September 30, 2012.
	The following table presents the Company's fair value hierarchy for assets and liabilities measured at fair value on a recurring basis as of September 30, 2013, December 31, 2012 and September 30, 2012:
			Estimated Fair Value Measurements
						Quoted Prices in Active Markets		Significant			Significant Unobservable
								Other			Inputs
								Observable
								Inputs
			Carrying Value			(Level 1)		(Level 2)			(Level 3)
	September 30, 2013:
	Financial Assets:
	Money market funds		$	58,761		$	58,761	$	-		$	-
	Financial Liabilities:
	Forward currency contracts		$	(195	)	$	-	$	(195	)	$	-
	December 31, 2012:
	Financial Assets:
	Money market funds		$	85,003		$	85,003	$	-		$	-
	Financial Liabilities:
	Forward currency contracts		$	(255	)	$	-	$	(255	)	$	-
	30-Sep-12
	Financial Assets:
	Money market funds		$	30,000		$	30,000	$	-		$	-
	Financial Liabilities:
	Forward currency contracts		$	(87	)	$	-	$	(87	)	$	-
	During the three months ended March 31, 2012, the Company divested its remaining auction rate security ("ARS") investments for $2,500, resulting in a loss of $181 recorded in other income (expense) in the consolidated statement of operations during the period then ended. The Company also transferred the temporary gain related to ARS valuation of $241, previously recorded as other comprehensive income in stockholders' equity, to other income (expense) in the consolidated statement of operations during the three months ended March 31, 2012. In addition, the Company transferred the associated income tax of $151, previously recorded as other comprehensive loss in stockholders' equity, to the provision for income taxes in the consolidated statement of operations during the same quarter. The proceeds of $2,500 were received by the Company during the second quarter of 2012.

Inventories

Inventories	9 Months Ended
	Sep. 30, 2013
Inventories [Abstract]	'
Inventories	'
		3	Inventories
	Inventories consisted of the following as of September 30, 2013 and 2012, and December 31, 2012:
			September 30,				December 31,
			2013		2012		2012
	Raw materials		$	5,364	$	6,385	$	1,243
	Finished goods			116,374		108,698		39,068
	Total		$	121,738	$	115,083	$	40,311

Other_Intangible_Assets

Other Intangible Assets	9 Months Ended
	Sep. 30, 2013
Other Intangible Assets [Abstract]	'
Other Intangible Assets	'
		4	Other Intangible Assets
	The Company's other intangible assets were as follows as of September 30, 2013 and 2012, and December 31, 2012:
			September 30,						December 31,
			2013			2012			2012
	Intellectual property, license agreements and other intangibles		$	16,755		$	16,755		$	16,755
	Less: accumulated amortization			(16,555	)		(15,205	)		(15,805	)
	Total		$	200		$	1,550		$	950

Income_Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2013
Income Taxes [Abstract]	'
Income Taxes	'
		5	Income Taxes
	The Company's provision for (benefit from) income taxes and effective tax rates were as follows:
			Three Months Ended September 30,						Nine Months Ended September 30,
			2013			2012			2013			2012
	Provision for (benefit from) provision for income taxes		$	16,567		$	(5,785	)	$	13,421		$	(5,163	)
	Income before income taxes			42,940			35,953			33,493			19,008
	Effective tax rate			38.6	%		(16.1	%)		40.1	%		(27.2	%)
	The Company excludes jurisdictions with tax assets for which no benefit can be recognized from the computation of effective tax rate and tax provision. Accordingly, due to the full valuation allowance recorded against the Company's domestic deferred tax as of September 30, 2012, the Company's domestic operations were excluded from the computation of tax benefits for the three and nine months ended September 30, 2012. The tax benefits for the 2012 periods were primarily attributable to the recognition of previously unrecognized tax benefits due to the expiration of statutes of limitations in the Company's foreign jurisdictions, offset by foreign tax expense and certain discrete tax items including amortization of goodwill for tax purposes.
	During the fourth quarter of 2012, after considering the relative impact of all evidence, positive and negative, the Company determined, at the required more likely-than-not level of certainty, that a portion of its domestic deferred tax assets will be realized. Accordingly, for the three and nine months ended September 30, 2013, in addition to tax provisions attributable to its foreign operations, the Company's effective tax rate and income tax provision included tax expense attributable to its domestic operating income for the respective periods.
	Current and non-current deferred tax assets were $4,248 and $6,181 at September 30, 2013, respectively, as compared to $1,035 and $1,309 at September 30, 2012, respectively. The increase is due to the release of a portion of the deferred tax valuation allowance that occurred in the fourth quarter of 2012, partially offset by the realization of tax benefits in the current year.
	During the three months ended September 30, 2013, the Company did not recognize any previously unrecognized tax benefits. During the nine months ended September 30, 2013, the Company recognized $207 of previously unrecognized tax benefits due to the expiration of the statutes of limitations in one of its foreign jurisdictions, and reduced the balance of gross unrecognized tax benefits accordingly. The tax provision for the three months ended September 30, 2013 did not include any release of interest and penalties related to uncertain tax positions. The tax provision for the nine months ended September 30, 2013 included a release of interest and penalties of $57. The recognition of previously unrecognized tax benefits and the release of associated accrued interest and penalties reduced other long-term tax liabilities. As of September 30, 2013 and 2012, and December 31, 2012, the Company had approximately $647, $2,645 and $625, respectively, of accrued interest and penalties related to uncertain tax positions.
	The Company believes it is reasonably possible that the total amount of unrecognized income tax benefit in the future could decrease by up to $495, excluding potential interest and penalties, related to its foreign operations over the course of the next twelve months ending September 30, 2014 due to expiring statutes of limitations that, if recognized, would affect its effective tax rate.
	As of September 30, 2013, the Company had long-term deferred tax liabilities of $3,759 and other long-term tax liabilities of $1,003. Both are reported as long-term liabilities on the consolidated balance sheet.

Defined_Contribution_Plan

Defined Contribution Plan	9 Months Ended
	Sep. 30, 2013
Defined Contribution Plan [Abstract]	'
Defined Contribution Plan	'
		6	Defined Contribution Plan
	LeapFrog sponsors a defined contribution plan under Section 401(k) of the Internal Revenue Code. The 401(k) plan allows employees to defer up to 100% of their eligible compensation, not to exceed the Internal Revenue Service (the "IRS") maximum contribution limit. The Company provides a matching opportunity of 100% of eligible contributions up to a maximum of $3.5 per year per employee, which vests over three years. The Company recorded total compensation expense of $147 and $1,294, related to the defined contribution plan, for the three and nine months ended September 30, 2013, respectively, and $164 and $1,087 for the three and nine months ended September 30, 2012, respectively.

StockBased_Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2013
Stock-Based Compensation [Abstract]	'
Stock-based Compensation	'
		7	Stock-Based Compensation
	The Company currently has outstanding two types of stock-based compensation awards to its employees and directors: stock options and restricted stock units ("RSUs"). Both stock options and RSUs can be used to acquire shares of the Company's Class A common stock, are exercisable or convertible, as applicable, over a period not to exceed ten years, and are most commonly assigned four-year vesting periods. The Company also has an employee stock purchase plan ("ESPP").
	Stock plan activity
	The table below summarizes award activity for the nine months ended September 30, 2013:
			Stock						Total
			Options			RSUs			Awards
	Outstanding at December 31, 2012			6,148			1,251			7,399
	Grants			2,064			821			2,885
	Stock option exercises/vesting RSUs			(827	)		(346	)		(1,173	)
	Retired or forfeited			(93	)		(39	)		(132	)
	Outstanding at September 30, 2013			7,292			1,687			8,979
	Total shares available for future grant at September 30, 2013									6,717
	As of September 30, 2013, the total shares available for future grant under the ESPP were 964.
	Impact of stock-based compensation
	The table below summarizes stock-based compensation expense for the three and nine months ended September 30, 2013 and 2012:
			Three Months Ended September 30,						Nine Months Ended September 30,
			2013			2012			2013			2012
	SG&A:
	Stock options		$	1,347		$	968		$	3,723		$	2,096
	RSUs			849			746			2,269			2,098
	ESPP			97			80			342			244
	Total SG&A			2,293			1,794			6,334			4,438
	R&D:
	Stock options			215			150			537			388
	RSUs			115			83			295			240
	Total R&D			330			233			832			628
	Total expense		$	2,623		$	2,027		$	7,166		$	5,066
	Valuation of stock-based compensation
	Stock-based compensation expense related to stock options is calculated based on the fair value of each award on the grant date. In general, the fair value for stock option grants is estimated using the Black-Scholes option pricing model with the following weighted-average assumptions for the three and nine months ended September 30, 2013 and 2012:
			Three Months Ended September 30,						Nine Months Ended September 30,
			2013			2012			2013			2012
	Expected term (years)			5.18			4.49			4.6			4.49
	Volatility			69.9	%		74.3	%		72.5	%		74.3	%
	Risk-free interest rate			1.51	%		0.55	%		0.8	%		0.72	%
	Expected dividend yield			-	%		-	%		-	%		-	%
	RSUs are payable in shares of the Company's Class A common stock. The fair value of these stock-based awards is equal to the closing market price of the Company's common stock on the date of grant. The grant-date fair value is recognized on a straight-line basis in compensation expense over the vesting period of these stock-based awards, which is generally four years.
	Stock-based compensation expense related to the ESPP is estimated using the Black-Scholes option pricing model with the following assumptions for the three and nine months ended September 30, 2013 and 2012:
			Three Months Ended September 30,						Nine Months Ended September 30,
			2013			2012			2013			2012
	Expected term (years)			0.49 - 0.5			0.5			0.48 - 0.5			0.5
	Volatility			36.0% - 57.5%			49.9% - 59.8%			36.0% - 57.5%			44.1% - 59.8%
	Risk-free interest rate			0.05% - 0.12%			0.13% - 0.14%			0.05%-0.14%			0.05% - 0.14%
	Expected dividend yield			- %			- %			- %			- %

Derivative_Financial_Instrumen

Derivative Financial Instruments	9 Months Ended
	Sep. 30, 2013
Derivative Financial Instruments [Abstract]	'
Derivative Financial Instruments	'
		8	Derivative Financial Instruments
	At September 30, 2013, December 31, 2012 and September 30, 2012, the Company had outstanding foreign exchange forward contracts with notional values of $70,665, $53,577 and $72,632, respectively. The gains and losses on these 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 three and nine months ended September 30, 2013 and 2012 are shown in the table below:
			Three Months Ended September 30,						Nine Months Ended September 30,
			2013			2012			2013			2012
	Gains (losses) on foreign exchange forward contracts		$	(1,307	)	$	(1,326	)	$	203		$	(1,921	)
	Gains (losses) on underlying transactions denominated
	in foreign currency			1,291			587			(786	)		495
	Net losses		$	(16	)	$	(739	)	$	(583	)	$	(1,426	)

Net_Income_per_Share

Net Income per Share	9 Months Ended
	Sep. 30, 2013
Net Income per Share [Abstract]	'
Net Income per Share	'
		9	Net Income per Share
	The following table sets forth the computation of basic and diluted net income per share for three and nine months ended September 30, 2013 and 2012:
			Three Months Ended September 30,				Nine Months Ended September 30,
			2013		2012		2013		2012
	(Numerator)
	Net income		$	26,373	$	41,738	$	20,072	$	24,171
	(Denominator)
	Weighted average shares outstanding during period:
	Class A and B - basic			68,552		67,400		68,200		66,912
	Common stock equivalents			2,499		2,112		2,544		2,159
	Class A and B - diluted			71,051		69,512		70,744		69,071
	Net income per share:
	Class A and B - basic		$	0.38	$	0.62	$	0.29	$	0.36
	Class A and B - diluted		$	0.37	$	0.6	$	0.28	$	0.35
	Options to purchase shares of our common stock and RSUs, totaling 3,470 and 2,871 were excluded from the calculation of diluted net income per share for the three and nine months ended September 30, 2013, respectively, as the effect would have been antidilutive. Options to purchase shares of our common stock and RSUs, totaling 2,002 and 1,207 were excluded from the calculation of diluted net income per share for the three and nine months ended September 30, 2012, respectively, as the effect would have been antidilutive.

Segment_Reporting

Segment Reporting	9 Months Ended
	Sep. 30, 2013
Segment Reporting [Abstract]	'
Segment Reporting	'
		10	Segment Reporting
	The Company's business is organized, operated and assessed in two geographic segments: U.S. and International.
	The Company attributes sales to non-U.S. countries on the basis of sales billed by each of its foreign subsidiaries to its customers. Additionally, the Company attributes sales to non-U.S. countries if the product is shipped from Asia or one of its leased warehouses in the U.S. to a distributor in a foreign country. Certain corporate-level operating expenses associated with sales and marketing, product support, human resources, legal, finance, information technology, corporate development, procurement activities, research and development expenses, legal settlements and other corporate costs are charged entirely to the Company's U.S. segment and are not allocated to its International segment.
	The primary business of the two operating segments is as follows:
		·	The U.S. segment is responsible for the development, design, sales and marketing of the Company's multimedia learning platforms, related content and learning toys, which are sold primarily through retailers, distributors, and directly to consumers via the leapfrog.com online store and the LeapFrog App Center ("App Center") in the U.S.
		·	The International segment is responsible for the localization, sales and marketing of multimedia learning platforms, related content and learning toys, originally developed for the U.S., sold primarily through retailers, distributors outside of the U.S., and directly to consumers via online stores and App Centers directed to certain international jurisdictions.
	The table below shows certain information by segment for the three and nine months ended September 30, 2013 and 2012:
			Three Months Ended September 30,				Nine Months Ended September 30,
			2013		2012		2013		2012
	Net sales:
	United States		$	146,831	$	145,691	$	263,285	$	247,050
	International			54,154		47,381		103,623		89,512
	Totals		$	200,985	$	193,072	$	366,908	$	336,562
	Income from operations:
	United States		$	29,652	$	24,781	$	10,186	$	2,059
	International			13,248		12,082		23,250		18,786
	Totals		$	42,900	$	36,863	$	33,436	$	20,845
	For all periods presented, no countries other than the U.S. accounted for more than 10% of the Company's consolidated net sales, respectively.

Commitments_and_Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2013
Commitments and Contingencies [Abstract]	'
Commitments and Contingencies	'
	11	Commitments and Contingencies
	From time to time, the Company is subject to legal proceedings and claims in the ordinary course of business, including claims of alleged infringement of patents and other intellectual property rights, claims related to breach of contract, employment matters and a variety of other claims. Unsettled matters are in various stages of litigation and their outcome is currently not determinable. However, in the opinion of management, based on current knowledge, none of the pending legal proceedings or claims is likely to have a material adverse effect on the Company's financial position, results of operations or cash flows. Regardless of the outcome, litigation can have an adverse impact on the Company because of defense costs, diversion of management resources and other factors. In addition, although management considers the likelihood of such an outcome to be remote, if one or more of these legal matters were resolved against the Company in a particular reporting period for amounts in excess of management's expectations, the Company's consolidated financial statements of the same reporting period could be materially adversely affected.
	In addition, as of September 30, 2013, the Company had outstanding off-balance sheet commitments for outsourced manufacturing and component purchases of $791.

Fair_Value_of_Financial_Instru1

Fair Value of Financial Instruments and Investments (Tables)	9 Months Ended
	Sep. 30, 2013
Fair Value of Financial Instruments and Investments [Abstract]	'
Fair Value Hierarchy for Assets and Liabilities Measured at Fair Value on Recurring Basis	'
		Estimated Fair Value Measurements
					Quoted Prices in Active Markets		Significant			Significant Unobservable
							Other			Inputs
							Observable
							Inputs
		Carrying Value			(Level 1)		(Level 2)			(Level 3)
	September 30, 2013:
	Financial Assets:
	Money market funds	$	58,761		$	58,761	$	-		$	-
	Financial Liabilities:
	Forward currency contracts	$	(195	)	$	-	$	(195	)	$	-
	December 31, 2012:
	Financial Assets:
	Money market funds	$	85,003		$	85,003	$	-		$	-
	Financial Liabilities:
	Forward currency contracts	$	(255	)	$	-	$	(255	)	$	-
	30-Sep-12
	Financial Assets:
	Money market funds	$	30,000		$	30,000	$	-		$	-
	Financial Liabilities:
	Forward currency contracts	$	(87	)	$	-	$	(87	)	$	-

Inventories_Tables

Inventories (Tables)	9 Months Ended
	Sep. 30, 2013
Inventories [Abstract]	'
Summary of Inventories	'
		September 30,				December 31,
		2013		2012		2012
	Raw materials	$	5,364	$	6,385	$	1,243
	Finished goods		116,374		108,698		39,068
	Total	$	121,738	$	115,083	$	40,311

Other_Intangible_Assets_Tables

Other Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2013
Other Intangible Assets [Abstract]	'
Schedule of Other Intangible Assets, Net	'
		September 30,						December 31,
		2013			2012			2012
	Intellectual property, license agreements and other intangibles	$	16,755		$	16,755		$	16,755
	Less: accumulated amortization		(16,555	)		(15,205	)		(15,805	)
	Total	$	200		$	1,550		$	950

Income_Taxes_Tables

Income Taxes (Tables)	9 Months Ended
	Sep. 30, 2013
Income Taxes [Abstract]	'
Schedule of Income Tax (Benefit) Provision	'
	Three Months Ended September 30,						Nine Months Ended September 30,
		2013			2012			2013			2012
	Provision for (benefit from) provision for income taxes	$	16,567		$	(5,785	)	$	13,421		$	(5,163	)
	Income before income taxes		42,940			35,953			33,493			19,008
	Effective tax rate		38.6	%		(16.1	%)		40.1	%		(27.2	%)

StockBased_Compensation_Tables

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2013
Stock-Based Compensation [Abstract]	'
Summary of Award Activity	'
		Stock						Total
		Options			RSUs			Awards
	Outstanding at December 31, 2012		6,148			1,251			7,399
	Grants		2,064			821			2,885
	Stock option exercises/vesting RSUs		(827	)		(346	)		(1,173	)
	Retired or forfeited		(93	)		(39	)		(132	)
	Outstanding at September 30, 2013		7,292			1,687			8,979
	Total shares available for future grant at September 30, 2013								6,717
Schedule of Stock-Based Compensation Expense	'
		Three Months Ended September 30,						Nine Months Ended September 30,
		2013			2012			2013			2012
	SG&A:
	Stock options	$	1,347		$	968		$	3,723		$	2,096
	RSUs		849			746			2,269			2,098
	ESPP		97			80			342			244
	Total SG&A		2,293			1,794			6,334			4,438
	R&D:
	Stock options		215			150			537			388
	RSUs		115			83			295			240
	Total R&D		330			233			832			628
	Total expense	$	2,623		$	2,027		$	7,166		$	5,066
Weighted Average Assumptions Used to Determine Fair Value of Options Granted	'
		Three Months Ended September 30,						Nine Months Ended September 30,
		2013			2012			2013			2012
	Expected term (years)		5.18			4.49			4.6			4.49
	Volatility		69.9	%		74.3	%		72.5	%		74.3	%
	Risk-free interest rate		1.51	%		0.55	%		0.8	%		0.72	%
	Expected dividend yield		-	%		-	%		-	%		-	%
Weighted Average Assumptions Used to Determine Fair Value of Options Granted Related to ESPP	'
		Three Months Ended September 30,						Nine Months Ended September 30,
		2013			2012			2013			2012
	Expected term (years)		0.49 - 0.5			0.5			0.48 - 0.5			0.5
	Volatility		36.0% - 57.5%			49.9% - 59.8%			36.0% - 57.5%			44.1% - 59.8%
	Risk-free interest rate		0.05% - 0.12%			0.13% - 0.14%			0.05%-0.14%			0.05% - 0.14%
	Expected dividend yield		- %			- %			- %			- %

Derivative_Financial_Instrumen1

Derivative Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2013
Derivative Financial Instruments [Abstract]	'
Gains and Losses from Foreign Exchange Forward Contracts, Net of Gains and Losses on Underlying Transactions Denominated in Foreign Currency	'
		Three Months Ended September 30,						Nine Months Ended September 30,
		2013			2012			2013			2012
	Gains (losses) on foreign exchange forward contracts	$	(1,307	)	$	(1,326	)	$	203		$	(1,921	)
	Gains (losses) on underlying transactions denominated
	in foreign currency		1,291			587			(786	)		495
	Net losses	$	(16	)	$	(739	)	$	(583	)	$	(1,426	)

Net_Income_per_Share_Tables

Net Income per Share (Tables)	9 Months Ended
	Sep. 30, 2013
Net Income per Share [Abstract]	'
Schedule of Net Income Per Share	'
		Three Months Ended September 30,					Nine Months Ended September 30,
			2013		2012			2013		2012
	(Numerator)
	Net income		$	26,373	$	41,738		$	20,072	$	24,171
	(Denominator)
	Weighted average shares outstanding during period:
	Class A and B - basic			68,552		67,400			68,200		66,912
	Common stock equivalents			2,499		2,112			2,544		2,159
	Class A and B - diluted			71,051		69,512			70,744		69,071
	Net income per share:
	Class A and B - basic		$	0.38	$	0.62		$	0.29	$	0.36
	Class A and B - diluted		$	0.37	$	0.6		$	0.28	$	0.35

Segment_Reporting_Tables

Segment Reporting (Tables)	9 Months Ended
	Sep. 30, 2013
Segment Reporting [Abstract]	'
Summary of Segment Information	'
	Three Months Ended September 30,					Nine Months Ended September 30,
		2013		2012			2013		2012
	Net sales:
	United States	$	146,831	$	145,691		$	263,285	$	247,050
	International		54,154		47,381			103,623		89,512
	Totals	$	200,985	$	193,072		$	366,908	$	336,562
	Income from operations:
	United States	$	29,652	$	24,781		$	10,186	$	2,059
	International		13,248		12,082			23,250		18,786
	Totals	$	42,900	$	36,863		$	33,436	$	20,845

Fair_Value_of_Financial_Instru2

Fair Value of Financial Instruments and Investments (Details) (USD $)

3 Months Ended

9 Months Ended

3 Months Ended

In Thousands, unless otherwise specified

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2012

Mar. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2012

Foreign Exchange Forward Contracts [Member]

Foreign Exchange Forward Contracts [Member]

Foreign Exchange Forward Contracts [Member]

Auction Rate Securities [Member]

Fair Value, Measurements, Recurring [Member]

Fair Value, Measurements, Recurring [Member]

Fair Value, Measurements, Recurring [Member]

Fair Value, Measurements, Recurring [Member]

Fair Value, Measurements, Recurring [Member]

Fair Value, Measurements, Recurring [Member]

Fair Value, Measurements, Recurring [Member]

Fair Value, Measurements, Recurring [Member]

Fair Value, Measurements, Recurring [Member]

Fair Value, Measurements, Recurring [Member]

Fair Value, Measurements, Recurring [Member]

Fair Value, Measurements, Recurring [Member]

Quoted Prices in Active Markets (Level 1) [Member]

Quoted Prices in Active Markets (Level 1) [Member]

Quoted Prices in Active Markets (Level 1) [Member]

Significant Other Observable Inputs (Level 2) [Member]

Significant Other Observable Inputs (Level 2) [Member]

Significant Other Observable Inputs (Level 2) [Member]

Significant Unobservable Inputs (Level 3) [Member]

Significant Unobservable Inputs (Level 3) [Member]

Significant Unobservable Inputs (Level 3) [Member]

Financial Assets:

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Money market funds

'

'

'

'

'

'

'

'

$58,761

$85,003

$30,000

$58,761

$85,003

$30,000

'

'

'

'

'

'

Financial Liabilities:

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Forward currency contracts

'

'

'

'

'

'

'

'

-195

-255

-87

'

'

'

-195

-255

-87

'

'

'

Other disclosures:

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Notional value

'

'

'

'

70,665

53,577

72,632

'

'

'

'

'

'

'

'

'

'

'

'

'

Proceeds from divested investments

'

'

'

'

'

'

'

2,500

'

'

'

'

'

'

'

'

'

'

'

'

Loss on sales of ARS investments

'

'

'

-91

'

'

'

-181

'

'

'

'

'

'

'

'

'

'

'

'

Transfer of temporary gain on long-term investments

'

'

'

-241

'

'

'

-241

'

'

'

'

'

'

'

'

'

'

'

'

Transfer of tax expense allocated to temporary gain on long term investments

'

'

'

($151)

'

'

'

($151)

'

'

'

'

'

'

'

'

'

'

'

'

Inventories_Details

Inventories (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2012
In Thousands, unless otherwise specified
Inventories [Abstract]	'	'	'
Raw materials	$5,364	$1,243	$6,385
Finished goods	116,374	39,068	108,698
Total	$121,738	$40,311	$115,083

Other_Intangible_Assets_Detail

Other Intangible Assets (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2012
In Thousands, unless otherwise specified
Other Intangible Assets [Abstract]	'	'	'
Intellectual property, license agreements and other intangibles	$16,755	$16,755	$16,755
Less: accumulated amortization	-16,555	-15,805	-15,205
Total	$200	$950	$1,550

Income_Taxes_Details

Income Taxes (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Income Taxes [Abstract]	'	'	'	'	'
(Benefit from) provision for income taxes	$16,567	($5,785)	$13,421	($5,163)	'
Loss before income taxes	42,940	35,953	33,493	19,008	'
Effective tax rate	38.60%	-16.10%	40.10%	-27.20%	'
Current deferred tax asset	4,248	1,035	4,248	1,035	'
Non-current deferred tax assets	6,181	1,309	6,181	1,309	'
Unrecognized tax benefits reduced as result of lapse in statutes of limitations	'	'	207	'	'
Adjustment to (benefit from) provision for income taxes from the release of interest and penalties	'	'	57	'	'
Accrued interest and penalties related to uncertain tax positions	647	2,645	647	2,645	625
Unrecognized tax benefits would affect the Company's effective tax rate if recognized	495	'	495	'	'
Long-term deferred tax liabilities	3,759	3,798	3,759	3,798	3,759
Other long-term tax liabilities	$1,003	'	$1,003	'	'

Defined_Contribution_Plan_Deta

Defined Contribution Plan (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Defined Contribution Plan [Abstract]	'	'	'	'
Eligible compensation that may be deferred	'	'	100.00%	'
Matching opportunity of eligible contribution provided by company	'	'	100.00%	'
Maximum contribution under employee compensation	'	'	$3,500	'
Vesting period	'	'	'3 years	'
Defined contribution plan expense	$147,000	$164,000	$1,294,000	$1,087,000

StockBased_Compensation_Summar

Stock-Based Compensation (Summary of Award Activity) (Details)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Outstanding	'	'	7,399	'
Grants	'	'	2,885	'
Stock option exercises/vesting RSUs	'	'	-1,173	'
Retired or forfeited	'	'	-132	'
Outstanding	8,979	'	8,979	'
Stock Options [Member]	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Outstanding	'	'	6,148	'
Grants	'	'	2,064	'
Stock option exercises/vesting RSUs	'	'	-827	'
Retired or forfeited	'	'	-93	'
Outstanding	7,292	'	7,292	'
Maximum period for exercise	'	'	'10 years	'
Vesting period	'4 years	'4 years	'4 years	'4 years
RSUs [Member]	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Outstanding	'	'	1,251	'
Grants	'	'	821	'
Stock option exercises/vesting RSUs	'	'	-346	'
Retired or forfeited	'	'	-39	'
Outstanding	1,687	'	1,687	'
Maximum period for exercise	'	'	'10 years	'
Vesting period	'	'	'4 years	'
Stock Options and RSUs [Member]	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Total shares available for future grant	6,717	'	6,717	'
ESPP [Member]	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Total shares available for future grant	964	'	964	'

StockBased_Compensation_Summar1

Stock-Based Compensation (Summary of Stock-Based Compensation Expense) (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Stock-based compensation expense	$2,623	$2,027	$7,166	$5,066
SG&A	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Stock-based compensation expense	2,293	1,794	6,334	4,438
SG&A | Stock Options [Member]	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Stock-based compensation expense	1,347	968	3,723	2,096
SG&A | RSUs [Member]	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Stock-based compensation expense	849	746	2,269	2,098
SG&A | ESPP [Member]	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Stock-based compensation expense	97	80	342	244
R&D	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Stock-based compensation expense	330	233	832	628
R&D | Stock Options [Member]	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Stock-based compensation expense	215	150	537	388
R&D | RSUs [Member]	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Stock-based compensation expense	$115	$83	$295	$240

StockBased_Compensation_Schedu

Stock-Based Compensation (Schedule of Fair Value Assumptions) (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Stock Options [Member]	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Expected term	'5 years 2 months 5 days	'4 years 5 months 27 days	'4 years 7 months 6 days	'4 years 5 months 27 days
Volatility	69.90%	74.30%	72.50%	74.30%
Risk-free interest rate	1.51%	0.55%	0.80%	0.72%
Expected dividend yield	'	'	'	'
Vesting period	'4 years	'4 years	'4 years	'4 years
ESPP [Member]	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Expected term	'	'6 months	'	'6 months
ESPP [Member] | Minimum [Member]	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Expected term	'5 months 27 days	'	'5 months 23 days	'
Volatility	36.00%	49.90%	36.00%	44.10%
Risk-free interest rate	0.05%	0.13%	0.05%	0.05%
ESPP [Member] | Maximum [Member]	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Expected term	'6 years	'	'6 years	'
Volatility	57.50%	59.80%	57.50%	59.80%
Risk-free interest rate	0.12%	0.14%	0.14%	0.14%

Derivative_Financial_Instrumen2

Derivative Financial Instruments (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Derivative [Line Items]	'	'	'	'	'
Net losses	($16)	($739)	($583)	($1,426)	'
Foreign Exchange Forward Contracts [Member]	'	'	'	'	'
Derivative [Line Items]	'	'	'	'	'
Notional value	70,665	72,632	70,665	72,632	53,577
Net losses	-1,307	-1,326	203	-1,921	'
Underlying Transactions Denominated in Foreign Currency [Member]	'	'	'	'	'
Derivative [Line Items]	'	'	'	'	'
Net losses	$1,291	$587	($786)	$495	'

Net_Income_per_Share_Details

Net Income per Share (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Net Income per Share [Abstract]	'	'	'	'
Net income	$26,373	$41,738	$20,072	$24,171
Weighted average shares outstanding during period:	'	'	'	'
Class A and B - basic	68,552	67,400	68,200	66,912
Common stock equivalents	2,499	2,112	2,544	2,159
Class A and B - diluted	71,051	69,512	70,744	69,071
Net income per share:	'	'	'	'
Class A and B - basic	$0.38	$0.62	$0.29	$0.36
Class A and B - diluted	$0.37	$0.60	$0.28	$0.35
Options to purchase shares of common stock and RSUs excluded from the calculation of diluted net income per share as the effect would have been antidilutive	3,470	2,002	2,871	1,207

Segment_Reporting_Details

Segment Reporting( Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]	'	'	'	'
Net sales	$200,985	$193,072	$366,908	$336,562
Income (loss) from operations	42,900	36,863	33,436	20,845
United States [Member]	'	'	'	'
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]	'	'	'	'
Net sales	146,831	145,691	263,285	247,050
Income (loss) from operations	29,652	24,781	10,186	2,059
International [Member]	'	'	'	'
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]	'	'	'	'
Net sales	54,154	47,381	103,623	89,512
Income (loss) from operations	$13,248	$12,082	$23,250	$18,786

Commitments_and_Contingencies_

Commitments and Contingencies (Details) (USD $)	Sep. 30, 2013
In Thousands, unless otherwise specified
Commitments and Contingencies [Abstract]	'
Outstanding off-balance sheet commitments for outsourced manufacturing and component purchases	$791