Segment Reporting

12 Months Ended

Dec. 31, 2011

Segment Reporting

20. 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. The Company charges all of its indirect operating expenses and general corporate overhead to the U.S. segment and does not allocate any of these expenses to the International segment.

The accounting policies of the segments are the same as those described in Note 2 of these Notes to the Consolidated Financial Statements.

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 multimedia learning platform products and related content, and learning toys, sold primarily through retail and distributor channels and through the Company’s website in the U.S. In addition, beginning in late 2011, this segment began distributing third party content through our App Center.

· The International segment is responsible for the localization, sales and marketing of multimedia learning platform products and related content, and learning toys, originally developed for the U.S., sold primarily in retail and distributor channels outside of the U.S. In addition, beginning in late 2011, this segment began distributing to certain territories, third party content through our App Center.

The table below shows certain information by segment for the years ended December 31, 2011, 2010 and 2009.

	Years Ended December 31,
	2011		2010			2009
Net sales:
United States	$	342,050	$	344,296		$	306,472
International		113,090		88,268			73,362
Totals	$	455,140	$	432,564		$	379,834
Income (loss) from operations:
United States	$	5,553	$	(3,022	)	$	(18,506	)
International		18,144		10,827			10,093
Totals	$	23,697	$	7,805		$	(8,413	)
Total assets:
United States	$	262,180	$	231,593		$	251,221
International		68,852		61,887			54,774
Totals	$	331,032	$	293,480		$	305,995

In 2011, 2010 and 2009, no countries other than the U.S. accounted for 10% or more of LeapFrog’s consolidated net sales.

The table below shows the net sales of the Company’s product portfolio by segment for the years ended December 31, 2011, 2010 and 2009:

	Years Ended December 31,
	2011		%			2010		%			2009		%
SEGMENTS	(Dollars in millions)
United States:
Multimedia learning platforms	$	250.0		73	%	$	251.0		73	%	$	202.8		66	%
Learning toys		85.0		25	%		88.9		26	%		96.2		31	%
All other		7.0		2	%		4.4		1	%		7.5		3	%
Total	$	342.0		100	%	$	344.3		100	%	$	306.5		100	%
International:
Multimedia learning platforms	$	65.3		58	%	$	45.7		52	%	$	41.1		56	%
Learning toys		47.0		41	%		41.6		47	%		32.2		44	%
All other		0.8		1	%		1.0		1	%		-		-	%
Total	$	113.1		100	%	$	88.3		100	%	$	73.3		100	%
CONSOLIDATED LEAPFROG
Multimedia learning platforms	$	315.3		69	%	$	296.7		69	%	$	243.9		64	%
Learning toys		132.0		29	%		130.5		30	%		128.4		34	%
All other		7.8		2	%		5.4		1	%		7.5		2	%
Total net sales	$	455.1		100	%	$	432.6		100	%	$	379.8		100	%