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.

On May 13, 2014, the Company's board of directors approved a change in the Company's fiscal year-end from December 31 to March 31 in order to better align the Company's business planning and financial reporting functions with the seasonality of its business.

The financial information included herein should be read in conjunction with the consolidated financial statements and related notes in the Company's 2013 Annual Report on Form 10-K filed with the United States ("U.S.") Securities and Exchange Commission (the "SEC") on March 14, 2014 for the fiscal year ended December 31, 2013 (the "2013 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 2013 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. In addition, management has revised the prior year financial statements to correct errors that were identified. Specifically, the Company has revised its consolidated statement of cash flows for the three months ended June 30, 2013, to exclude the impact of non-cash investing activities associated with certain accounts payable and accrued liabilities related to capital expenditures. As compared to previously reported amounts, net cash provided by operating activities has been increased and net cash used in investing activities has been increased by $223 for the three months ended June 30, 2013. This revision represents errors that were not deemed material, individually or in aggregate, to the consolidated financial statements for the corresponding prior period. This revision does not impact the Company's previously reported consolidated results of operations or financial position.

Accumulated other comprehensive income (loss) consists solely of currency translation adjustments.