Accrued Liabilities

12 Months Ended

Dec. 31, 2011

Accrued Liabilities

9. Accrued Liabilities

The Company’s accrued liabilities as of December 31, 2011 and 2010 were as follows:

	December 31,
	2011		2010
Employee-related expenses	$	14,380	$	8,627
Advertising and promotion		10,993		9,995
Royalties payable		7,894		9,145
Deferred revenue		7,836		2,788
Manufacturing and warehousing		2,385		2,457
Marketing, consulting and web-related		2,346		2,243
Other		4,546		6,170
Total	$	50,380	$	41,425

Employee-related expense accruals increased primarily due to greater achievement against Company performance targets set as a part of the Company’s employee bonus programs for 2011 as compared to 2010.

Deferred revenue increased due to the launch of the LeapFrog App Center in August of 2011 and sales of associated stored value cards to retailers. Based on the Company’s accounting policy for revenue recognition for online purchases of digital content, revenue resulting from the sale of App Center stored value cards is deferred until a customer is provided with a code that allows immediate access to download purchased content.