UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
x |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended December
31, 2015
OR
¨ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission File Number: 001-31396
|
|
LeapFrog Enterprises, Inc.
(Exact name of registrant as specified
in its charter) |
|
|
|
|
|
|
|
DELAWARE |
95-4652013 |
(State or other jurisdiction of
incorporation or organization) |
(I.R.S. Employer
Identification No.) |
6401 Hollis Street, Suite 100, Emeryville, California |
94608-1463 |
(Address of principal executive offices) |
(Zip Code) |
510-420-5000
(Registrant’s telephone number,
including area code)
Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes x No
¨
Indicate by check mark whether the registrant has submitted
electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant
to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the
registrant was required to submit and post such files). Yes
x No ¨
Indicate by check mark whether the registrant is a large accelerated
filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated
filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer |
¨ |
|
Accelerated filer |
x |
Non-accelerated filer |
¨ (Do not check if a smaller reporting company) |
|
Smaller reporting company |
¨ |
Indicate by check mark whether the registrant is a shell company
(as defined in Rule 12b-2 of the Exchange Act).
Yes ¨
No x
As of February 5, 2016, 66,589,763 shares of Class A
common stock, par value $0.0001 per share, and 4,394,354 shares of Class B common stock, par value $0.0001 per share, of
the registrant were outstanding.
LEAPFROG ENTERPRISES, INC.
TABLE OF CONTENTS
PART I.
FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
LEAPFROG ENTERPRISES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
(Unaudited)
| |
December 31, | | |
March 31, | |
| |
2015 | | |
2014 | | |
2015 | |
ASSETS | |
| | | |
| | | |
| | |
Current assets: | |
| | | |
| | | |
| | |
Cash and cash equivalents | |
$ | 52,846 | | |
$ | 94,020 | | |
$ | 127,176 | |
Accounts receivable, net of allowances for doubtful accounts of $1,492, $818 and $854, respectively | |
| 63,200 | | |
| 100,810 | | |
| 19,618 | |
Inventories | |
| 38,526 | | |
| 77,796 | | |
| 71,927 | |
Prepaid expenses and other current assets | |
| 8,837 | | |
| 10,449 | | |
| 10,012 | |
Deferred income taxes | |
| 450 | | |
| 661 | | |
| 553 | |
Total current assets | |
| 163,859 | | |
| 283,736 | | |
| 229,286 | |
Deferred income taxes | |
| 683 | | |
| 1,498 | | |
| 1,792 | |
Property and equipment, net | |
| 429 | | |
| 38,191 | | |
| 1,676 | |
Capitalized content costs, net | |
| 17,470 | | |
| 23,191 | | |
| 22,510 | |
Other intangible assets, net | |
| 2,326 | | |
| 3,836 | | |
| 3,453 | |
Other assets | |
| 700 | | |
| 1,337 | | |
| 1,475 | |
Total assets | |
$ | 185,467 | | |
$ | 351,789 | | |
$ | 260,192 | |
| |
| | | |
| | | |
| | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |
| | | |
| | | |
| | |
Current liabilities: | |
| | | |
| | | |
| | |
Accounts payable | |
$ | 16,412 | | |
$ | 23,440 | | |
$ | 16,578 | |
Accrued liabilities | |
| 28,897 | | |
| 32,137 | | |
| 21,582 | |
Deferred revenue | |
| 11,631 | | |
| 12,526 | | |
| 11,921 | |
Short-term borrowings | |
| 20,000 | | |
| - | | |
| - | |
Deferred income taxes | |
| 530 | | |
| 1,290 | | |
| 1,630 | |
Income taxes payable | |
| 269 | | |
| 431 | | |
| 267 | |
Total current liabilities | |
| 77,739 | | |
| 69,824 | | |
| 51,978 | |
Long-term deferred income taxes | |
| 452 | | |
| - | | |
| 323 | |
Other long-term liabilities | |
| 823 | | |
| 198 | | |
| 1,365 | |
Total liabilities | |
| 79,014 | | |
| 70,022 | | |
| 53,666 | |
Commitments and contingencies | |
| | | |
| | | |
| | |
Stockholders' equity: | |
| | | |
| | | |
| | |
Class A Common Stock, par value $0.0001;
Authorized - 139,500 shares; Outstanding: 66,590 65,803 and 66,084, respectively | |
| 7 | | |
| 7 | | |
| 7 | |
Class B Common Stock, par value $0.0001;
Authorized - 40,500 shares; Outstanding: 4,394 4,394 and 4,394, respectively | |
| - | | |
| - | | |
| - | |
Treasury stock | |
| (185 | ) | |
| (185 | ) | |
| (185 | ) |
Additional paid-in capital | |
| 441,860 | | |
| 431,806 | | |
| 434,728 | |
Accumulated other comprehensive loss | |
| (7,039 | ) | |
| (3,453 | ) | |
| (5,450 | ) |
Accumulated deficit | |
| (328,190 | ) | |
| (146,408 | ) | |
| (222,574 | ) |
Total stockholders’ equity | |
| 106,453 | | |
| 281,767 | | |
| 206,526 | |
Total liabilities and stockholders’ equity | |
$ | 185,467 | | |
$ | 351,789 | | |
$ | 260,192 | |
See accompanying notes to consolidated financial
statements
LEAPFROG ENTERPRISES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
| |
Three Months Ended December 31, | | |
Nine Months Ended December 31, | |
| |
2015 | | |
2014 | | |
2015 | | |
2014 | |
| |
| | |
| | |
| | |
| |
Net sales | |
$ | 83,093 | | |
$ | 144,598 | | |
$ | 189,013 | | |
$ | 305,220 | |
Cost of sales | |
| 75,685 | | |
| 99,464 | | |
| 168,115 | | |
| 214,243 | |
Gross profit | |
| 7,408 | | |
| 45,134 | | |
| 20,898 | | |
| 90,977 | |
| |
| | | |
| | | |
| | | |
| | |
Operating expenses: | |
| | | |
| | | |
| | | |
| | |
Selling, general and administrative | |
| 21,878 | | |
| 23,338 | | |
| 66,831 | | |
| 64,703 | |
Research and development | |
| 9,912 | | |
| 8,993 | | |
| 26,450 | | |
| 23,967 | |
Advertising | |
| 17,298 | | |
| 26,773 | | |
| 25,409 | | |
| 39,531 | |
Goodwill impairment | |
| - | | |
| 19,549 | | |
| - | | |
| 19,549 | |
Impairment of long-lived assets | |
| 1,086 | | |
| - | | |
| 4,970 | | |
| - | |
Depreciation and amortization | |
| 318 | | |
| 2,971 | | |
| 1,404 | | |
| 8,571 | |
Total operating expenses | |
| 50,492 | | |
| 81,624 | | |
| 125,064 | | |
| 156,321 | |
Loss from operations | |
| (43,084 | ) | |
| (36,490 | ) | |
| (104,166 | ) | |
| (65,344 | ) |
| |
| | | |
| | | |
| | | |
| | |
Other income (expense): | |
| | | |
| | | |
| | | |
| | |
Interest income | |
| 11 | | |
| 10 | | |
| 74 | | |
| 71 | |
Interest expense | |
| (67 | ) | |
| (16 | ) | |
| (69 | ) | |
| (16 | ) |
Other, net | |
| (237 | ) | |
| (516 | ) | |
| (654 | ) | |
| (746 | ) |
Total other income (expense), net | |
| (293 | ) | |
| (522 | ) | |
| (649 | ) | |
| (691 | ) |
Loss before income taxes | |
| (43,377 | ) | |
| (37,012 | ) | |
| (104,815 | ) | |
| (66,035 | ) |
Provision for income taxes | |
| 848 | | |
| 87,200 | | |
| 801 | | |
| 76,571 | |
Net loss | |
$ | (44,225 | ) | |
$ | (124,212 | ) | |
$ | (105,616 | ) | |
$ | (142,606 | ) |
| |
| | | |
| | | |
| | | |
| | |
Net loss per share: | |
| | | |
| | | |
| | | |
| | |
Class A and B - basic and diluted | |
$ | (0.62 | ) | |
$ | (1.77 | ) | |
$ | (1.49 | ) | |
$ | (2.04 | ) |
| |
| | | |
| | | |
| | | |
| | |
Weighted-average
shares used to calculate net loss per share: | |
| | | |
| | | |
| | | |
| | |
| |
| | | |
| | | |
| | | |
| | |
Class A and B - basic and diluted | |
| 70,967 | | |
| 70,169 | | |
| 70,810 | | |
| 69,997 | |
See accompanying notes to consolidated financial statements
LEAPFROG ENTERPRISES, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(In thousands)
(Unaudited)
| |
Three Months Ended December 31, | | |
Nine Months Ended December 31, | |
| |
2015 | | |
2014 | | |
2015 | | |
2014 | |
Net loss | |
$ | (44,225 | ) | |
$ | (124,212 | ) | |
$ | (105,616 | ) | |
$ | (142,606 | ) |
Other comprehensive loss | |
| | | |
| | | |
| | | |
| | |
Currency translation adjustments | |
| (1,095 | ) | |
| (2,202 | ) | |
| (1,589 | ) | |
| (2,875 | ) |
Comprehensive loss | |
$ | (45,320 | ) | |
$ | (126,414 | ) | |
$ | (107,205 | ) | |
$ | (145,481 | ) |
See accompanying notes
to consolidated financial statements
LEAPFROG ENTERPRISES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
| |
Nine Months Ended December 31, | |
| |
2015 | | |
2014 | |
Operating activities: | |
| | | |
| | |
Net loss | |
$ | (105,616 | ) | |
$ | (142,606 | ) |
Adjustments to reconcile net loss to net cash used in operating activities: | |
| | | |
| | |
Depreciation and amortization | |
| 13,133 | | |
| 19,869 | |
Goodwill impairment | |
| - | | |
| 19,549 | |
Impairment of long-lived assets | |
| 4,970 | | |
| - | |
Deferred income taxes | |
| 198 | | |
| 75,531 | |
Stock-based compensation expense | |
| 7,325 | | |
| 8,676 | |
Allowance for doubtful accounts | |
| 659 | | |
| 954 | |
Other changes in operating assets and liabilities: | |
| | | |
| | |
Accounts receivable, net | |
| (44,860 | ) | |
| (73,546 | ) |
Inventories | |
| 33,331 | | |
| (27,804 | ) |
Prepaid expenses and other current assets | |
| 1,146 | | |
| (520 | ) |
Other assets | |
| 770 | | |
| 129 | |
Accounts payable | |
| 725 | | |
| 6,942 | |
Accrued liabilities | |
| 8,302 | | |
| 9,182 | |
Deferred revenue | |
| (225 | ) | |
| (134 | ) |
Other long-term liabilities | |
| 742 | | |
| (910 | ) |
Income taxes payable | |
| - | | |
| (220 | ) |
Net cash used in operating activities | |
| (79,400 | ) | |
| (104,908 | ) |
Investing activities: | |
| | | |
| | |
Purchases of property and equipment and other intangible assets | |
| (6,158 | ) | |
| (21,085 | ) |
Capitalization of content and website development costs | |
| (7,398 | ) | |
| (13,069 | ) |
Net cash used in investing activities | |
| (13,556 | ) | |
| (34,154 | ) |
Financing activities: | |
| | | |
| | |
Proceeds from stock option exercises and employee stock purchase plan | |
| 146 | | |
| 1,512 | |
Cash paid for payroll taxes on restricted stock unit releases | |
| (325 | ) | |
| (940 | ) |
Repurchase of common shares | |
| - | | |
| (38 | ) |
Excess tax benefits from stock-based compensation | |
| - | | |
| 11 | |
Borrowing on line of credit | |
| 20,000 | | |
| - | |
Net cash provided by financing activities | |
| 19,821 | | |
| 545 | |
Effect of exchange rate changes on cash | |
| (1,195 | ) | |
| 549 | |
Net change in cash and cash equivalents | |
| (74,330 | ) | |
| (137,968 | ) |
Cash and cash equivalents, beginning of period | |
| 127,176 | | |
| 231,988 | |
Cash and cash equivalents, end of period | |
$ | 52,846 | | |
$ | 94,020 | |
| |
| | | |
| | |
Non-cash investing and financing activities: | |
| | | |
| | |
Net change in accounts payable and accrued liabilities related to capital expenditures | |
$ | (2,863 | ) | |
$ | (2,676 | ) |
See accompanying notes to consolidated financial statements
LEAPFROG ENTERPRISES, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except per share data)
(Unaudited)
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 financial information included herein should be read in conjunction with the consolidated financial statements and related
notes in the Company’s 2015 Annual Report on Form 10-K filed with the United States (“U.S.”) Securities and
Exchange Commission (the “SEC”) on June 15, 2015 for the fiscal year ended March 31, 2015 (the “2015 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 2015 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. During the third fiscal quarter, the Company continued to face an uncertain business environment and
a number of fundamental challenges in its business, including a continued decline in overall tablet sales and related content, aggressive
price competition and loss of shelf space at retail. Sales of the Company’s LeapTV products and associated content
did not improve in the third quarter to the extent the Company hoped, despite promotional efforts, including price reductions,
intended to stimulate consumer demand. In addition, declines in the overall tablet market overshadowed improvements in certain
product lines such as the Company’s new Epic tablet. The Company does not believe that these challenging conditions
will improve materially in the next two quarters. The Company continued to take steps to reduce costs through such measures
as reducing the size of its workforce and deferring the development of certain new products. However, the Company believes
that available approaches to improving its liquidity, such as making changes to vendor terms and accelerating the collection of
receivables, may be unlikely to compensate for the liquidity impact of its worse than anticipated performance during the third
quarter. The Company currently believes that liquidity available to fund its operations during the first two quarters of
fiscal 2017, when its use of cash increases as it builds inventories and experiences seasonal declines in revenue, may be insufficient
to permit it to continue normal operations, and there is substantial doubt about the Company’s ability to continue as a
going concern.
In addition
to steps taken to change its business structure and operations, the Company has been working with a financial advisor to
assist it in exploring strategic alternatives, including a potential sale or raising additional capital. On February 5,
2016, the Company entered into an Agreement and Plan of Merger with VTech Holdings, Ltd. and Bonita Merger
Sub., L.L.C. (the “Merger”). For further information concerning the Agreement and Plan of Merger, see note
11 and information contained in our Form 8-K filed with the SEC on February 5, 2016, including exhibits thereto. If the
transaction described in the Agreement and Plan of Merger or another transaction providing the Company with substantial
liquidity is not completed, the Company will likely face significant difficulties in generating sufficient liquidity to
continue normal operations over the first two quarters of Fiscal 2017.
The adequacy of our liquidity to fund our working capital needs
and capital expenditures over the long term should the Merger (or another transaction) fail to close will depend upon the magnitude
of operating expense reductions we are able to achieve, the effectiveness of measures we adopt to manage our cash flows, our ability
to access credit to assist us in addressing the seasonality of our business and our ability to improve our operating performance.
Accumulated other comprehensive loss consists solely of currency translation adjustments.
| 2. | Fair Value 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 December 31, 2015 and 2014, and March 31, 2015, the Company’s Level 1 assets consisted of money market funds and certificates of deposit with original maturities of three months or less. These assets were 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. |
As of December 31, 2015 and 2014, and March 31, 2015, the Company’s Level 2 assets and liabilities consisted of outstanding
foreign exchange forward contracts used to hedge its exposure to certain of its major 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 $2,507, $37,927 and $4,760 at December 31, 2015 and 2014, and March 31, 2015, respectively. The
fair market values of these instruments, based on quoted prices, were $10, $69 and $22 on a net basis at December 31, 2015 and
2014, and March 31, 2015, respectively, and recorded in prepaid expenses and other current assets.
|
· |
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 for any period presented. |
The following table presents the Company’s fair value
hierarchy for assets and liabilities measured at fair value on a recurring basis as of December 31, 2015 and 2014, and March 31,
2015:
| |
Estimated Fair Value Measurements | |
| |
Carrying Value | | |
Quoted Prices in Active Markets (Level 1) | | |
Significant Other Observable Inputs (Level 2) | | |
Significant Unobservable Inputs (Level 3) | |
December 31, 2015: | |
| | | |
| | | |
| | | |
| | |
Financial Assets: | |
| | | |
| | | |
| | | |
| | |
Money market funds and certificate of deposit | |
$ | 19,484 | | |
$ | 19,484 | | |
$ | - | | |
$ | - | |
Collateral certificates of deposit * | |
| 10,000 | | |
| 10,000 | | |
| - | | |
| - | |
Forward currency contracts | |
| 10 | | |
| - | | |
| 10 | | |
| - | |
Total financial assets | |
$ | 29,494 | | |
$ | 29,484 | | |
$ | 10 | | |
$ | - | |
December 31, 2014: | |
| | | |
| | | |
| | | |
| | |
Financial Assets: | |
| | | |
| | | |
| | | |
| | |
Money market funds and certificate of deposit | |
$ | 48 | | |
$ | 48 | | |
$ | - | | |
$ | - | |
Forward currency contracts | |
| 69 | | |
| - | | |
| 69 | | |
| - | |
Total financial assets | |
$ | 117 | | |
$ | 48 | | |
$ | 69 | | |
$ | - | |
March 31, 2015: | |
| | | |
| | | |
| | | |
| | |
Financial Assets: | |
| | | |
| | | |
| | | |
| | |
Money market funds and certificate of deposit | |
$ | 62,810 | | |
$ | 62,810 | | |
$ | - | | |
$ | - | |
Collateral certificates of deposit * | |
| 20,000 | | |
| 20,000 | | |
| - | | |
| - | |
Forward currency contracts | |
| 22 | | |
| - | | |
| 22 | | |
| - | |
Total financial assets | |
$ | 82,832 | | |
$ | 82,810 | | |
$ | 22 | | |
$ | - | |
|
* |
These certificates of deposit were collateral under the Company's asset-based revolving credit facility arrangement. |
The Company’s inventories, stated on a first-in, first-out
basis at the lower of cost or market, were as follows as of December 31, 2015 and 2014, and March 31, 2015:
| |
December 31, | | |
March 31, | |
| |
2015 | | |
2014 | | |
2015 | |
Raw materials | |
$ | 2,149 | | |
$ | 3,782 | | |
$ | 3,120 | |
Finished goods | |
| 36,377 | | |
| 74,014 | | |
| 68,807 | |
Total | |
$ | 38,526 | | |
$ | 77,796 | | |
$ | 71,927 | |
Inventories are stated at the lower of cost or net realizable
value (“NRV”). Inventories are initially recorded at cost. On a quarterly basis, the Company reviews its inventories
that may be stated above NRV and reviews its estimate of the allowance for slow-moving, excess and obsolete inventories (“E&O
reserves”). The Company’s E&O reserve estimate is based on management’s review of on-hand inventories compared
to their estimated future usage, product demand forecast (including consideration of retail inventory levels, sales and promotions,
among other factors), anticipated product selling prices, the expected product lifecycle, and products planned for discontinuation.
When considered necessary, the Company makes adjustments to reduce inventory to its NRV with corresponding increases to cost of
sales in its consolidated statement of operations. As of December 31, 2015 and 2014, and March 31, 2015, the Company had E&O
reserves of $18,266, $6,751 and $4,157, respectively. The E&O reserves’ impact to the Company’s cost of sales was
$11,590 and $15,303 for the three and nine months ended December 31, 2015, respectively, and were $3,313 and $5,572 for the three
and nine months ended December 31, 2014, respectively. The increases in E&O reserves as of December 31, 2015 and for the three
and nine months ended December 31, 2015 were primarily associated with the Company’s recent price reduction of its LeapTV
educational video game system and associated content, and the corresponding adjustment to the NRV of its inventory of this product.
| 4. | Property and Equipment, Net |
As of December 31, 2015 and 2014, and March 31, 2015, property
and equipment consisted of the following:
| |
December 31, | | |
March 31, | |
| |
2015 | | |
2014 | | |
2015 | |
Tooling, cards, dies and plates | |
$ | 19,092 | | |
$ | 23,957 | | |
$ | 23,976 | |
Computers and software | |
| 45,438 | | |
| 76,769 | | |
| 45,782 | |
Equipment, furniture and fixtures | |
| 6,180 | | |
| 6,311 | | |
| 3,769 | |
Leasehold improvements | |
| 4,086 | | |
| 4,441 | | |
| 4,002 | |
| |
| 74,796 | | |
| 111,478 | | |
| 77,529 | |
Less: accumulated depreciation | |
| (74,367 | ) | |
| (73,287 | ) | |
| (75,853 | ) |
Total | |
$ | 429 | | |
$ | 38,191 | | |
$ | 1,676 | |
During the quarters ended December 31, 2015, September 30, 2015,
June 30, 2015 and March 31, 2015, the Company performed an impairment review of its long-lived assets. As a result, the Company
recorded a permanent non-cash impairment charge of $1,086 and $4,970 for the three and nine months ended December 31, 2015, respectively,
and $36,461 for the quarter ended March 31, 2015, against its property and equipment, including primarily the Company’s recent
investments in its internal business systems and the non-content related website systems costs under its computer and software
category. Refer to Note 6 - “Impairment of Long-lived Assets” below for detailed information on the Company’s
impairment testing for its long-lived assets.
The Company’s goodwill was related to its 1997 acquisition
of substantially all the assets and business of its predecessor, LeapFrog RBT, and its 1998 acquisition of substantially all the
assets of Explore Technologies.
During the quarter ended December 31, 2014, based on various
qualitative factors, the Company determined that sufficient indicators existed warranting a review to determine if the fair value
of its U.S. reporting unit had been reduced to below its carrying value. These qualitative factors included, among others, the
Company’s performance during the 2014 holiday season being significantly lower than anticipated, which included the underperformance
of products and product lines newly introduced to the market, and the continuing decrease in trading value of the Company’s
Class A common stock and the corresponding decline in the Company’s market capitalization. As a result, the Company performed
goodwill impairment test using the required two-step process as of December 31, 2014.
The result of the Company’s step one test indicated that
the carrying value of the Company’s U.S. reporting unit exceeded its estimated fair value. Accordingly, the Company performed
the step two test and concluded that its goodwill was fully impaired and thus recorded a permanent impairment charge of $19,549
during the quarter ended December 31, 2014 in its U.S. segment.
| 6. | Impairment of Long-lived Assets |
The Company’s long-lived assets include property and equipment,
capitalized content costs and other intangible assets. The Company evaluates its long-lived assets for impairment whenever events
or changes in circumstances indicate that the carrying value of an asset group may not be recoverable.
March 31, 2015 Impairment Testing
During the quarter ended March 31, 2015, the Company determined
that testing for recoverability of its long-lived assets was required based on continued financial underperformance, and the continued
decline of the trading value of its Class A common stock and the corresponding decline in its market capitalization. As a result,
the Company performed step one of the impairment test and concluded that its long-lived assets in its U.S. reporting unit were
impaired as of March 31, 2015 as their carrying value exceeded the cumulative undiscounted future cash flows that included an estimated
residual market valuation. This result was primarily due to the significant decline of the trading value of the Company’s
Class A common stock and the corresponding decline in its market capitalization during the fourth quarter of its fiscal year ended
March 31, 2015 (“Fiscal 2015”). The Company’s long-lived assets were not considered impaired in its International
reporting unit as of March 31, 2015 as their carrying value did not exceed the cumulative undiscounted future cash flows.
Accordingly, the Company performed step two of the impairment
test and determined the fair value of its U.S. reporting unit using a combination of an income approach and a market approach.
Under the income approach, the Company used a discounted cash flow methodology which recognizes that current value is premised
on the expected receipt of future economic benefits. Indications of value are developed by discounting projected future net cash
flows to their present value at a rate that reflects both the current return requirements of the market and the risks inherent
in the specific investment. Under the market based approach, the Company utilized its own information to determine earnings multiples
and sales multiples that are used to value its U.S. reporting unit. This analysis yielded a fair value below the carry value of
the reporting unit.
In general, the difference between the carrying value and the
fair value would be allocated on a pro-rata basis to the assets using the relative carrying amounts of those assets. However, the
individual assets should not be written down below their respective fair values. As such, the Company determined the fair values
of the individual long-lived assets within the asset group and compared those values with the carrying values of those assets to
measure the overall impairment amount.
The Company determined the value of the capitalized content
costs and the other intangible assets using a cost approach analysis, which factors in technological and functional deterioration
with a depreciated cost study used as a proxy for the fair value. Based on the result of these analyses, the Company concluded
that the estimated fair values of its capitalized content costs and other intangible assets were greater than their carrying value.
Therefore, no impairment was recorded against these assets.
The Company determined the value of the property and equipment
assets using a depreciated replacement cost study which incorporated historical costs, published trends, market supported depreciation
curves, and certain adjustments such as indirect costs, level of asset customization and general marketability. Based on significant
economic obsolescence associated with these assets, the Company incorporated the valuation premise established at a “highest
and best use” assessment, using a value-in-exchange concept. Fair value-in-exchange is defined as the estimated value that
may reasonably be expected in an exchange for an asset between a willing buyer and seller in an orderly transaction between market
participants as of the valuation date. Based on the results of this study, the Company concluded that the carrying value of its
property and equipment assets, including primarily the Company’s recent investments in its internal business systems and
the non-content related website systems costs, exceeded their fair value by $36,461, and recorded a permanent impairment charge
to these assets.
The above mentioned valuation methodologies require significant
judgment by management in grouping of assets, selecting an appropriate discount rate, terminal growth rate, weighted average cost
of capital, projection of future net cash flows, market exit multiple, and determining fair value of individual assets, which are
inherently uncertain. The inputs and assumptions used in this test are classified as Level 3 inputs within the fair value hierarchy.
Due to these significant judgments, the fair value of the U.S. reporting unit and its individual assets determined in connection
with the long-lived assets impairment test may not necessarily be indicative of the actual value that would be recognized in a
future transaction.
June 30, 2015 Impairment Testing
During the quarter ended June 30, 2015, the Company determined
that testing for recoverability of its long-lived assets was again required based on continued financial underperformance, and
the continued decline of the trading value of its Class A common stock and the corresponding market capitalization. As a result,
the Company performed step one of the impairment test and concluded that its long-lived assets in its U.S. reporting unit were
impaired as of June 30, 2015 as their carrying value exceeded the cumulative undiscounted future cash flows that included an estimated
residual market valuation.
Accordingly, following the same valuation methodologies as applied
in the prior quarter, the Company performed step two of the impairment test and determined the fair value of its U.S. reporting
unit, then determined the fair values of individual long-lived assets within the asset group, and compared those values with the
carrying values of those assets to measure the overall impairment amount.
The Company concluded that the estimated fair values of its
capitalized content costs and other intangible assets were greater than their carrying value as of June 30, 2015. Therefore, no
impairment was recorded against these assets. As a result of the step two impairment test, the Company concluded that the carrying
value of its property and equipment assets exceeded their fair value by $2,770 and recorded a permanent impairment charge to these
assets.
September 30, 2015 Impairment Testing
During the quarter ended September 30, 2015, the Company determined
that testing for recoverability of its long-lived assets was again required based on continued financial underperformance, and
the continued decline of the trading value of its Class A common stock and the corresponding market capitalization. As a result,
the Company performed step one of the impairment test and concluded that its long-lived assets in its U.S. reporting unit were
impaired as of September 30, 2015 as their carrying value exceeded the cumulative undiscounted future cash flows that included
an estimated residual market valuation.
Accordingly, the Company performed step two of the impairment
test and determined the fair value of its U.S. reporting unit. The Company then determined the fair values of individual long-lived
assets within the asset group, and compared those values with the carrying values of those assets to measure the overall impairment
amount.
The Company concluded that the estimated fair values of its
capitalized content costs and other intangible assets were greater than their carrying value as of September 30, 2015. Therefore,
no impairment was recorded against these assets. As a result of the step two impairment tests, the Company concluded that the carrying
value of its property and equipment assets exceeded their fair value by $1,114 and recorded a permanent impairment charge to these
assets.
December 31, 2015 Impairment Testing
During the quarter ended December 31, 2015, the Company determined
that testing for recoverability of its long-lived assets was again required based on continued financial underperformance, and
the continued decline of the trading value of its Class A common stock and the corresponding market capitalization. As a result,
the Company performed step one of the impairment test and concluded that its long-lived assets in its U.S. reporting unit were
impaired as of December 31, 2015 as their carrying value exceeded the cumulative undiscounted future cash flows that included an
estimated residual market valuation.
Accordingly, the Company performed step two of the impairment
test and determined the fair value of its U.S. reporting unit. The Company then determined the fair values of individual long-lived
assets within the asset group, and compared those values with the carrying values of those assets to measure the overall impairment
amount.
As a result of the step two impairment tests, the Company concluded
that the carrying value of its property and equipment assets exceeded their fair value by $1,086 and recorded a permanent impairment
charge to these assets.
The Company performs a quarterly evaluation of capitalized content
development costs. For the quarter ended December 31, 2015, the Company’s
assessed the recoverability of certain capitalized content by comparing the net carrying value of capitalized content
costs to the net realizable value as of December 31, 2015. As a result of this assessment, the Company concluded that the carrying
value of certain capitalized content costs exceeded their net realizable value as of December 31, 2015, and as a result, wrote
off capitalized content costs of $1,384, primarily related to content associated with LeapTV.
Impact on Financial Statements
The write off of capitalized content costs of $1,384 for the
three and nine months ended December 31, 2015 were recorded and included in the cost of sales. For the three and nine months ended
December 31, 2015, the impairment charges of $1,086 and $4,970, respectively, were reported as a separate line item in the consolidated
statement of operations. The full impairment charges were recorded against the Company’s long-lived assets under its U.S.
reporting unit, and were non-cash in nature and do not directly affect the Company’s current or future liquidity. These
permanent impairment charges significantly reduced the carrying value of the Company’s property and equipment, which has
resulted and will continue to result in decreases in associated depreciation expenses in future periods. The Company will continue
to review the recoverability of its remaining long-lived assets on a quarterly basis, which may result in additional impairment
charges if future impairment testing shows that the carrying value of its long-lived assets exceeds their estimated fair values.
The Company will continue to review the value of the capitalized content costs and the other intangible assets using a cost approach
analysis, which may result in additional write off of capitalized content.
The Company’s provision for income taxes and effective
tax rates were as follows:
| |
Three Months Ended December 31, | | |
Nine Months Ended December 31, | |
| |
2015 | | |
2014 | | |
2015 | | |
2014 | |
Provision for income taxes | |
$ | 848 | | |
$ | 87,200 | | |
$ | 801 | | |
$ | 76,571 | |
Loss before income taxes | |
| (43,377 | ) | |
| (37,012 | ) | |
| (104,815 | ) | |
| (66,035 | ) |
Effective tax rate | |
| (2.0 | )% | |
| (235.6 | )% | |
| (0.8 | )% | |
| (116.0 | )% |
The Company’s effective tax rate is affected by recurring
items, such as tax benefit or expense relative to the amount of loss incurred or income earned in its domestic and foreign jurisdictions.
The Company’s effective tax rate is also affected by discrete items, such as tax benefits attributable to the recognition
of previously unrecognized tax benefits, and tax benefit or expense due to changes in valuation allowance, which may occur in any
given year but are not consistent from year to year.
The Company excludes jurisdictions with tax assets for which
no benefit can be recognized from the computation of its effective tax rate. Accordingly, the Company’s domestic loss was
excluded from the computation of its effective tax rates for the three and nine months ended December 31, 2015 and 2014. The Company
excluded its subsidiary in France from the computation of its effective tax rates for the three and nine month periods ending December
31, 2015, and excluded its subsidiary in Mexico from the computation of its effective tax rates for the three and nine months ended
December 31, 2015 and 2014. See “Valuation Allowance” below for detailed information of the changes in valuation
allowance for all periods.
The Company’s effective tax rate and income tax provision
for the three and nine months ended December 31, 2015 were primarily attributable to recording a full non-cash valuation allowance
against the deferred tax assets of its subsidiary in France, and tax provisions related to its foreign operations. The Company’s
effective tax rates and income tax provisions for the three and nine months ended December 31, 2014 were primarily attributable
to recording a full non-cash valuation allowance against its domestic deferred tax assets during those periods.
During the three and nine months ended December 31, 2015, the
Company recognized $275 and $7,033, respectively, of certain previously unrecognized domestic income tax benefits due to expiration
of statutes of limitations, which was neither recognized as a tax benefit nor affected the effective tax rate due to the full valuation
allowance recorded against the Company's domestic deferred tax assets. During the three months ended December 31, 2015, the Company
did not recognize any previously unrecognized tax benefits related to its foreign operations. During the nine months ended December
31, 2015, the Company recognized $162 of certain previously unrecognized tax benefits due to the settlement of an income tax audit
in one of its foreign jurisdictions, which was recognized as a tax benefit and affected the effective tax rate. During the three
and nine months ended December 31, 2014, the Company recognized $154 and $604, respectively, of certain previously unrecognized
tax benefits, including a release of $37 and $195 of accrued interest and penalties, respectively, due to the expiration of statutes
of limitations in some of its foreign jurisdictions, which was recognized as a tax benefit and affected the effective tax rate.
The recognition of previously unrecognized tax benefits reduced other long-term tax liabilities.
As of December 31, 2015 and 2014, and March 31, 2015, the
Company had $9,839, $15,880 and $16,677, respectively, of unrecognized domestic income tax benefits. The Company believes the total
amount of unrecognized income tax benefits will not be reduced over the course of the next twelve months. Changes to the total
amount of domestic unrecognized tax benefits would not impact the tax provision nor affect the effective tax rate due to the full
valuation allowance recorded against the Company’s domestic deferred tax assets.
The Company recognizes interest and penalties related to uncertain
tax positions in income tax expense. The tax provision for the three and nine months ended December 31, 2015 did not include any
release of accrued interest and penalties related to uncertain tax positions. The tax provision for the three and nine months ended
December 31, 2014 included a release of $37 and $195 of accrued interest and penalties, respectively, related to uncertain tax
positions. As of December 31, 2015 and 2014, and March 31, 2015, the Company had no accrued interest and penalties attributable
to uncertain tax positions related to its foreign operations.
As of December 31, 2015 and 2014, and March 31, 2015, the consolidated
current deferred tax assets were $450, $661 and $553, respectively, and the consolidated non-current deferred tax assets were $683,
$1,498 and $1,792, respectively. The decreases were primarily due to the full valuation allowances provided against the Company’s
deferred tax assets of its French subsidiary during the three months ended December 31, 2015.
As of December 31, 2015 and March 31, 2015, the Company had
current deferred tax liabilities of $530 and $1,630, respectively, reported as current liabilities, and had non-current deferred
tax liabilities of $452 and $323, respectively, reported as long-term liabilities on the consolidated balance sheet. As of December
31, 2014 and 2014, the Company had current deferred tax liabilities of $1,290 and no non-current deferred tax liabilities on the
consolidated balance sheet. As of December 31, 2015, the Company had no other non-current tax liabilities. As of March 31,
2015 the Company had other non-current tax liabilities of $162 reported as long-term liabilities on the consolidated balance sheet.
Valuation Allowance
During the quarter ended December 31, 2015, the Company changed
its business strategy for distributing product into its French territories. After weighing all available positive and negative
evidence both objective and subjective in nature, the Company determined, at the required more-likely-than-not level of certainty,
that its subsidiary in France will not generate future taxable income to realize the benefits of its deferred tax assets. Accordingly,
the Company recorded a full non-cash valuation allowance of $575 against the deferred tax assets of its French subsidiary which
was recorded as a foreign income tax provision and impacted the Company’s effective tax rate for the three and nine months
ended December 31, 2015.
During the quarter ended December 31, 2014, the Company evaluated
its ability to realize the benefit of its domestic deferred tax assets. The Company’s performance during the 2014 holiday
season, being significantly lower than anticipated which included the underperformance of products and product lines newly introduced
to the market, resulted in a significant three year cumulative domestic loss position as of December 31, 2014. The Company also
considered historic profitability, expected future earnings, carryback and carryforward periods, and tax strategies that could
potentially impact the likelihood of realization of deferred tax assets. However, the Company believed there was not sufficient
positive evidence to overcome the significant negative evidence. Accordingly, the Company determined, at the required more-likely-than-not
level of certainty, that it would not be able to realize the full benefit of its domestic deferred tax assets before they are due
to expire and therefore a full valuation allowance was warranted as of December 31, 2014. Accordingly, the Company recorded a full
non-cash valuation allowance against its domestic deferred tax assets, of which $90,769 was recorded as income tax provision and
impacted the Company’s effective tax rate for the three and nine months ending December 31, 2014.
The Company maintained a full valuation allowance against its
domestic deferred tax assets as of December 31, 2015 and 2014, and March 31, 2015, respectively. The Company also maintained
a full valuation allowance against the deferred tax assets of its subsidiary in Mexico as of December 31, 2015 and 2014, and March 31,
2015, respectively. The Company maintained a full valuation allowance against the deferred tax assets of its subsidiary in France
as of December 31, 2015. As of December 31, 2015, the Company also evaluated the need for a valuation allowance against the deferred
tax assets of its other foreign jurisdictions, and believes that the benefit of these deferred tax assets will be realized at the
required more-likely-than-not level of certainty. Therefore, no valuation allowance has been established against such deferred
tax assets as of December 31, 2015. The Company will continue to evaluate all evidence in all jurisdictions in future periods to
determine if a change in valuation allowance against its deferred tax assets is warranted. Any changes to the Company’s valuation
allowance will affect its effective tax rate, but will not affect the amount of cash paid for income taxes in the foreseeable future.
| 8. | Stock-Based Compensation |
The Company currently has outstanding two types of stock-based
compensation awards to its employees, directors and certain consultants: stock options and restricted stock units (“RSUs”),
which are more fully described in Note 14 to the Consolidated Financial Statements: Share-Based Compensation in its 2015
Form 10-K. 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 December 31, 2015:
| |
Stock | | |
| | |
Total | |
| |
Options | | |
RSUs | | |
Awards | |
Outstanding at March 31, 2015 | |
| 6,838 | | |
| 1,757 | | |
| 8,595 | |
Grants | |
| 1,561 | | |
| 1,442 | | |
| 3,003 | |
Exercises | |
| - | | |
| (500 | ) | |
| (500 | ) |
Retired or forfeited | |
| (753 | ) | |
| (333 | ) | |
| (1,086 | ) |
Outstanding at December 31, 2015 | |
| 7,646 | | |
| 2,366 | | |
| 10,012 | |
| |
| | | |
| | | |
| | |
Total shares available for future grant at December 31, 2015 | |
| | | |
| | | |
| 7,838 | |
As of December 31, 2015, the total shares available for future
grant under the ESPP were 388.
Impact of stock-based compensation
The following table summarizes stock-based compensation expense
charged to selling, general and administrative (“SG&A”) and research and development (“R&D”) expenses
for the three and nine months ended December 31, 2015 and 2014:
| |
Three Months Ended December 31, | | |
Nine Months Ended December 31, | |
| |
2015 | | |
2014 | | |
2015 | | |
2014 | |
SG&A: | |
| | | |
| | | |
| | | |
| | |
Stock options | |
$ | 1,058 | | |
$ | 1,390 | | |
$ | 3,352 | | |
$ | 4,177 | |
RSUs | |
| 941 | | |
| 1,130 | | |
| 3,046 | | |
| 3,108 | |
ESPP | |
| 30 | | |
| 99 | | |
| 74 | | |
| 262 | |
Total SG&A | |
| 2,029 | | |
| 2,619 | | |
| 6,472 | | |
| 7,547 | |
R&D: | |
| | | |
| | | |
| | | |
| | |
Stock options | |
| 142 | | |
| 206 | | |
| 513 | | |
| 634 | |
RSUs | |
| 38 | | |
| 171 | | |
| 340 | | |
| 495 | |
Total R&D | |
| 180 | | |
| 377 | | |
| 853 | | |
| 1,129 | |
Total expense | |
$ | 2,209 | | |
$ | 2,996 | | |
$ | 7,325 | | |
$ | 8,676 | |
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 with only
a service condition is estimated using the Black-Scholes option pricing model with the following weighted-average assumptions for
the three and nine months ended December 31, 2015 and 2014:
| |
Three Months Ended December 31, | | |
Nine Months Ended December 31, | |
| |
2015 | | |
2014 | | |
2015 | | |
2014 | |
Expected term (years) | |
| 4.75 | | |
| 4.60 | | |
| 4.82 | | |
| 4.70 | |
Volatility | |
| 52.9 | % | |
| 59.7 | % | |
| 53.2 | % | |
| 59.9 | % |
Risk-free interest rate | |
| 1.62 | % | |
| 1.41 | % | |
| 1.32 | % | |
| 1.56 | % |
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 December 31, 2015
and 2014:
| |
Three Months Ended December 31, | | |
Nine Months Ended December 31, | |
| |
2015 | | |
2014 | | |
2015 | | |
2014 | |
Expected term (years) | |
| 0.49 | | |
| 0.49 | | |
| 0.49 | | |
| 0.49 | |
Volatility | |
| 67.2 | % | |
| 42.0 | % | |
| 67.2% - 71.2 | % | |
| 34.8%-42.0 | % |
Risk-free interest rate | |
| 0.26 | % | |
| 0.05 | % | |
| 0.08% - 0.26 | % | |
| 0.05% - 0.08 | % |
Expected dividend yield | |
| - | % | |
| - | % | |
| - | % | |
| - | % |
Options to purchase shares of the Company’s common stock
and RSUs, totaling 11,229 and 23,443 were excluded from the calculation of diluted net income per share for the three and nine
months ended December 31, 2015 and 8,980 and 9,070 for the three and nine months ended December 31 2014, respectively, as the effect
would have been antidilutive.
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 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 platforms, related content and learning toys, which are sold primarily through
retailers, distributors, and directly to consumers via the LeapFrog App Center (“App Center”) in the U.S. The App
Center includes both content developed by the Company and content from third parties that the Company curates and distributes. |
| · | 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. This
segment markets and sells the Company’s products to national and regional mass-market and specialty retailers and other
outlets through the Company’s offices outside of the U.S., through distributors in various international markets, and directly
to consumers via the App Center. |
The table below shows certain information by segment for the
three and nine months ended December 31, 2015 and 2014:
| |
Three Months Ended December 31, | | |
Nine Months Ended December 31, | |
| |
2015 | | |
2014 | | |
2015 | | |
2014 | |
Net sales: | |
| | | |
| | | |
| | | |
| | |
United States | |
$ | 58,560 | | |
$ | 99,183 | | |
$ | 132,018 | | |
$ | 207,449 | |
International | |
| 24,533 | | |
| 45,415 | | |
| 56,995 | | |
| 97,771 | |
Totals | |
$ | 83,093 | | |
$ | 144,598 | | |
$ | 189,013 | | |
$ | 305,220 | |
Income (loss) from operations: | |
| | | |
| | | |
| | | |
| | |
United States | |
$ | (38,650 | ) | |
$ | (39,822 | ) | |
$ | (101,751 | ) | |
$ | (73,977 | ) |
International | |
| (4,434 | ) | |
| 3,332 | | |
| (2,415 | ) | |
| 8,633 | |
Totals | |
$ | (43,084 | ) | |
$ | (36,490 | ) | |
$ | (104,166 | ) | |
$ | (65,344 | ) |
For the three and nine months ended December 31, 2015 and 2014,
the U.S. and the United Kingdom individually accounted for more than 10% of the Company’s consolidated net sales, respectively.
| 10. | Commitments and Contingencies |
Legal Proceedings
Federal Securities Class Action
A consolidated securities class action captioned In re
LeapFrog Enterprises, Inc. Securities Litigation, Case No. 3:15-CV-00347-EMC, is pending in the United States District
Court for the Northern District of California against LeapFrog and two of its officers, John Barbour and Raymond L. Arthur
(the “Class Action”). The consolidated complaint, filed on June 24, 2015, alleges that defendants violated
Section 10(b) the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and SEC Rule 10b-5, by making
materially false or misleading statements regarding the Company’s financial projections, financial results, and
development of new products between May 5, 2014 and June 11, 2015. The complaint also alleges that defendants are liable as
control-person under Section 20(a) of the Exchange Act. The complaint seeks class certification, an award of unspecified
compensatory damages, an award of reasonable costs and expenses, including attorneys’ fees, and other further relief as
the Court may deem just and proper. The foregoing is a summary of the allegations in the complaint and is subject to the text
of the complaint, which is on file with the Court. Based on a review of the allegations, the Company and the individual
defendants believe that the plaintiffs’ allegations are without merit, and intend to vigorously defend against the
claims. A hearing on the Company’s motion to dismiss was held on October 8, 2015. At the hearing on the
defendants’ motions to dismiss, the Court stated that it perceived significant problems with the
plaintiff’s allegations and directed the plaintiff to file a further amended complaint that pleads more particularized
facts. The amended complaint was filed on December 4, 2015. The Company filed a motion to dismiss the amended complaint on
January 15, 2016. The Court is scheduled to hear our motion to dismiss on March 24, 2016.
Shareholder Derivative Action
A consolidated shareholder derivative action captioned In
re LeapFrog Enterprises, Inc. Derivative Litigation, Lead Case No. RG15757609 (the “Derivative Action”) is pending
in the Superior Court of California, County of Alameda, purportedly on behalf of LeapFrog against current and former members of
our board of directors and certain of our officers. The various plaintiffs in the Derivative Action, who filed their complaints
between February 5 and July 13, 2015, allege that the defendants breached their fiduciary duties, committed waste, were unjustly
enriched, and aided and abetted fiduciary violations by causing LeapFrog to issue materially inaccurate financial guidance and
making false and misleading statements about the Company’s business between May 5, 2014 and June 11, 2015. The statements
at issue in the Derivative Action are substantially similar to those at issue in the Class Action described above. The plaintiffs
in the Derivative Action seek, purportedly on behalf of LeapFrog, an unspecified award of damages including, but not limited to,
fees and costs associated with the pending Class Action, various corporate governance reforms, an award of restitution, an award
of reasonable costs and expenses, including attorneys’ fees, and other further relief as the Court may deem just and proper.
The foregoing is a summary of the allegations in the complaints filed in the Derivative Action, and is subject to the text of the
plaintiffs’ complaints, which are on file with the Court. Based on a review of the plaintiffs’ allegations, the Company
believes that the plaintiffs have not demonstrated standing to sue on its behalf. The Court has granted the parties’ stipulation
to defer litigation activity, subject to certain conditions and pending certain developments in the Class Action.
Patent Litigation
On February 26, 2014, a patent holding company named Celebrate
International, LLC (“Celebrate”) sued LeapFrog, Target, Wal-Mart, Amazon and Toys R Us in the United States District
Court for the District of Delaware alleging that the Company’s Tag and LeapReader product lines and related content infringe
U.S. Patent Nos. 6,256,398 and 6,819,776. Celebrate is seeking unspecified monetary damages and attorney’s fees. The
Company and the accused retailers filed answers to the suit denying infringement and alleging that the asserted patent claims are
invalid. The Markman hearing was held on January 22, 2015 and on August 28, 2015 the Court issued a claim construction order. The
trial date has been indefinitely postponed pending resolution of plaintiff’s attempt to obtain fact discovery in Sweden from
Anoto AB, the licensor of optical scanning technology used in the Tag and LeapReader products. The Company believes that the claims
are without merit and intends to contest the case vigorously. Given the status of the case and the uncertainties inherent in patent
litigation, possible losses, if any, associated with the case are not reasonably estimable at this time.
Other Matters
In addition, from time to time, the Company is subject to other
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 disputes and a variety of other matters. The Company
records a liability when the Company believes that it is both probable that a loss will be incurred, and the amount can be reasonably
estimated. In the opinion of management, based on current knowledge, it is not reasonably possible that any of the pending legal
proceedings or claims will have a material adverse impact 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.
Commitments
As of December 31, 2015, the Company had commitments to
purchase inventory under normal supply arrangements totaling approximately $5,750. In addition, as of December 31, 2015, the
Company had two stand-by-letters of credit totaling $236 issued under its revolving credit facility as credit support for
potential future payment obligations, which were off-balance sheet arrangements. At December 31, 2015, the Company had $20
million outstanding under the revolving credit facility.
On February 5, 2016, the Company entered into an Agreement
and Plan of Merger with VTech Holdings Limited (“VTech”) and Bonita Merger Sub, L.L.C. a wholly owned subsidiary
of VTech Holdings (“Acquisition Sub”). Pursuant to the Merger Agreement, and upon the terms and subject to the
conditions described therein, Acquisition Sub has agreed to commence a tender offer (the “Offer”), as promptly as
practicable but in any event no later than March 3, 2016, to purchase the outstanding shares of Class A common stock of the
Company and the outstanding shares of Class B common stock of the Company at a purchase price per Share of US $1.00 (the
“Offer Price”), net to the seller thereof in cash, without interest. More details concerning the terms and
conditions of the Merger and the Merger Agreement may be found in the Company’s Form 8-K and exhibits thereto filed
with the SEC on February 5, 2016, which is incorporated by reference herein.
Commitments
During January 2016, the Company paid down $20 million on its
$75 million asset-based revolving credit facility that was outstanding as of December 31, 2015.
On September 4, 2015, the Company was notified by the New York
Stock Exchange (“NYSE”) that the average closing price of the Company’s common stock had fallen below $1.00 per
share over a consecutive 30 trading-day period, which is the minimum average share price for continued listing on NYSE under Rule
802.01C of the NYSE Listed Company Manual.
Under NYSE rules, the Company has six months following receipt
of the notification to regain compliance with the minimum share price requirement. On September 10, 2015, the Company notified
the NYSE of its intent to cure the deficiency and restore its compliance with the listing standards of Section 802.01C. The NYSE
notice has no immediate impact on the listing of the Company’s common stock, which will continue to be listed and traded
on the NYSE during this period, subject to the Company’s compliance with other listing standards.
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Forward-looking Statements
This Quarterly Report on Form 10-Q contains
forward-looking statements about management’s expectations, including, without limitation, our beliefs regarding the
impact on our business of a continued uncertain business environment and fundamental challenges to our business, including
decline in overall tablet sales and related content, aggressive price competition and loss of shelf space and our ability to
continue as a going concern, our expectations regarding the liquidations of our subsidiaries in Mexico and France, including
treatment of the undistributed earnings of our foreign subsidiaries, our intention to repatriate any remaining residual cash
from our foreign subsidiaries to the U.S. and the associated tax treatment of such repatriation, the funding, nature and
amount of future capital expenditures, the future funding of our working capital needs and planned capital expenditures, our
intent to cure the deficiency with the NYSE’s minimum share price requirement and restore our compliance with the
listing standards of the NYSE, statements related to ongoing legal proceedings and statements regarding our pending
acquisition by VTech Holdings,, Ltd.. December 15, 2016. Forward-looking statements provide current expectations of future
events based on certain assumptions and include any statement that does not directly relate to any historical or current
fact. Forward-looking statements can also be identified by words such as “anticipates,” “believes,”
“estimates,” “expects,” “intends,” “plans,” “predicts,” and
similar terms. Forward-looking statements are not guarantees of future performance and actual results may differ
significantly from the results discussed in the forward-looking statements. Factors that might cause such differences
include, but are not limited to, those discussed in the subsection entitled “Risk Factors” under Part II,
Item 1A of this Quarterly Report on Form 10-Q. Although we believe that the expectations reflected in the forward-looking
statements are reasonable, we cannot guarantee future results, levels of activity, performance, achievements or the timing of
any events. We make these statements as of the date of this Quarterly Report on Form 10-Q and undertake no obligation to
update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise
after the date of this report, except as required by law.
The following management’s discussion and analysis of
financial condition and results of operations (“MD&A”) is intended to help the reader understand the results of
operations and financial condition of LeapFrog Enterprises, Inc. and its consolidated subsidiaries (collectively, “LeapFrog,”
“we,” “us” or “our”). This MD&A is provided as a supplement to, and should be read in conjunction
with, our Consolidated Financial Statements and the accompanying Notes in Part I, Item 1 of this Quarterly Report on Form
10-Q.
Our Business
LeapFrog is a leading developer of educational entertainment
for children. Our product portfolio consists of multimedia learning and reading, platforms and related content and learning toys.
We have developed a number of learning platforms, including the LeapPad family of learning tablets, the LeapTV educational video
game system, the Leapster family of handheld learning game systems, and the LeapReader reading and writing systems, which facilitate
a wide variety of learning experiences provided by our rich content libraries. We have created hundreds of interactive content
titles for our platforms, covering subjects such as phonics, reading, writing, mathematics, science, social studies, creativity
and life skills. In addition, we have a broad line of stand-alone interactive learning toys, including the popular My Pal Scout
line. Many of our products connect to our proprietary online LeapFrog Learning Path, which provides personalized feedback on a
child’s learning progress and offers product recommendations to enhance each child’s learning experience. Our products
are localized in four languages (English, Queen’s English, French and Spanish) and are sold globally through retailers, distributors
and directly to consumers via LeapFrog App Center (“App Center”).
Due to the seasonality of our business, our results of operations
for interim periods are not necessarily indicative of the operating results for a full year.
Consolidated Results of Operations
| |
Three Months Ended December 31, | | |
% Change 2015 vs. | | |
Nine Months Ended December 31, | | |
% Change 2015 vs. | |
| |
2015 | | |
2014 | | |
2014 | | |
2015 | | |
2014 | | |
2014 | |
| |
(Dollars in millions, except per share data) | |
Net sales | |
$ | 83.1 | | |
$ | 144.6 | | |
| (43 | )% | |
$ | 189.0 | | |
$ | 305.2 | | |
| (38 | )% |
Cost of sales | |
| 75.7 | | |
| 99.5 | | |
| (24 | )% | |
| 168.1 | | |
| 214.2 | | |
| (22 | )% |
Gross margin * | |
| 8.9 | % | |
| 31.2 | % | |
| (22.3 | )** | |
| 11.1 | % | |
| 29.8 | % | |
| (18.7 | )** |
Operating expenses | |
| 50.5 | | |
| 81.6 | | |
| (38 | )% | |
| 125.1 | | |
| 156.3 | | |
| (20 | )% |
Operating expenses as a percent of net sales | |
| 60.8 | % | |
| 56.4 | % | |
| 4.4 | ** | |
| 66.2 | % | |
| 51.2 | % | |
| 15.0 | ** |
Loss from operations | |
| (43.1 | ) | |
| (36.5 | ) | |
| 18 | % | |
| (104.2 | ) | |
| (65.3 | ) | |
| 60 | % |
Net loss per share - basic and diluted | |
$ | (0.62 | ) | |
$ | (1.77 | ) | |
$ | 1.15 | *** | |
$ | (1.49 | ) | |
$ | (2.04 | ) | |
$ | 0.55 | *** |
* Gross profit as a percentage of net sales
** Percentage point change
*** Dollar change
Net sales for the three months ended December 31, 2015 decreased
$61.5 million, or 43%, as compared to the same period in Fiscal 2015, included a decrease of $55.2 million in net sales of multimedia
learning platforms, content and accessories, and a decrease of $6.9 million in net sales of learning toys. Net sales for the nine
months ended December 31, 2015 decreased $116.2 million, or 38%, as compared to the same period in Fiscal 2015, which included
a decrease of $96.3 million in net sales of multimedia learning platforms and a decrease of $19.9 million in net sales of learning
toys. Our LeapPad line of tablets, content and accessories experienced decreased consumer demand as the overall market for children’s
tablets continued to decline. In addition, net sales of our LeapReader learn-to-read system and toys decreased as sales fell in
key markets and retailers ran tighter inventories. During the second quarter of Fiscal 2016 we launched our first android based
tablet, Epic which became the #1 selling Kid’s tablet in the market during the Holiday Quarter, representing 14% and 10%
of sales during the three and nine months ended December 31, 2015. During the three and nine months ended December 31, 2015, we
recorded a $0.0 million and $7.0 million allowance, respectively, as part of increased trade discounts against net sales, associated
with the LeapTV price reductions implemented in the second quarter, to stimulate consumer demand. Net sales for the three and nine
months ended December 31, 2015 included a negative $2.7 million, or 2%, and a negative $18.3 million, or 6%, impact from changes
in currency exchange rates, respectively.
Cost of sales for the three months ended December 31, 2015 decreased
$23.8 million, or 24%, as compared to the same period in Fiscal 2015 driven primarily by lower net sales resulting in a decrease
of $27.1 million in product costs, a decrease of $3.3 million in freight and warehouse costs, a decrease of $3.0 million in royalty
costs, and a decrease of $0.7 million in depreciation costs resulting from the permanent impairment of our long-lived assets, which
significantly reduced the carrying value of our property and equipment. The decreases were offset by an increase of $8.6 million
in inventory allowances and higher content amortization of $1.9 million. Cost of sales for the nine months ended December 31, 2015
decreased $46.1 million, or 22%, as compared to the same period in Fiscal 2015 driven primarily by lower net sales resulting in
a decrease of $46.8 million in product costs, a decrease of $5.1 million in freight costs and warehouse costs, a decrease of $4.4
million in royalty costs, and a decrease of $2.0 million in depreciation expenses. The decreases were offset by an increase of
$10.0 million in inventory allowances and higher content amortization of $2.5 million.
Gross margin for the three months ended December 31, 2015 was 8.9%, a decrease of 22.3 percentage points
as compared to the same period in Fiscal 2015. Of this difference, 12.0 percentage points was primarily due to lower of cost or
market charges and excess and obsolete inventory charges associated with LeapTV, 6.8 percentage points due to changes in sales
mix with proportionally higher sales of lower-margin toys, and lower sales of higher margin products, and 3.7 percentage points
due to additional content write-off related to platforms that were in the process of being discontinued or non-performing titles.
Gross margin for the nine months ended December 31, 2015 was 11.1%, a decrease of 18.7 percentage points as compared to the same
period in Fiscal 2015. Of this difference, 6.5 percentage points was primarily due to lower of cost or market charges and excess
and obsolete inventory charges associated with LeapTV, 8.1 percentage points due to changes in sales mix with proportionally higher
sales of lower-margin toys, and lower sales of higher-margin products, and 3.1 percentage points due to additional amortization
related to platforms that were in the process of being discontinued or non-performing titles and 2.0 percentage points was due
to lower sales volume which increased the impact of fixed logistics costs. These negative impacts were offset by increases of 0.6
percentage points due to lower depreciation costs and 0.6 percentage points due to proportionally lower freight costs.
Operating expenses for the three months ended December
31, 2015 decreased $31.1 million, or 38% as compared to the same period in Fiscal 2015, due to a decrease in advertising of
$9.5 million, a decrease in payroll and related expense of $5.2 million associated with lower headcount, a decrease of
$2.7 million in depreciation expenses resulting from the impairment of our property and equipment in the fourth quarter of
prior year and the write off of goodwill in the amount of $19.5 million in the third quarter of prior year. These decreases
were offset by $4.1 million in severance costs associated with work force headcount reductions, and $1.7 million in lower
R&D capitalization and other overhead cost. Operating expenses for the nine months ended December 31, 2015 decreased
$31.2 million, or 20% as compared to the same period in Fiscal 2015, due to the a decrease in advertising of $14.1 million,
a decrease in payroll and related expense of $10.5 million associated with lower headcount, a decrease of $7.2 million
in depreciation expenses resulting from the impairment of our property and equipment in the fourth quarter of prior year and
the write off of goodwill in the amount of $19.5 million in the third quarter of prior year. These decreases were offset by
$4.0 million in severance cost associated with the reduction in headcount, $5.0 million due to employee retention bonus
expense, an increase of $3.4 million for legal and professional services, $5.0 million impairment of our property and
equipment and $2.9 million in lower R&D capitalization and other overhead cost.
Loss from operations for the three and nine months ended December
31, 2015 worsened by $6.6 million and $38.9 million, respectively, as compared to the same periods in Fiscal 2015 driven by a decrease
in gross profit of $37.7 million and $70.1 million, respectively.
Basic and diluted net loss per share for the three and nine
months ended December 31, 2015 improved by $1.15 and $0.55, as compared to the same periods in Fiscal 2015.
Operating Expenses
Selling, General and Administrative Expenses
SG&A expenses consist primarily of salaries and related
employee benefits, including stock-based compensation expense and other headcount-related expenses associated with executive
management, finance, information technology, supply chain, facilities, human resources, other administrative headcount, legal and
other professional fees, indirect selling expenses, systems costs, rent, office equipment and supplies.
| |
Three Months Ended
December 31, | | |
% Change 2015 vs. | | |
Nine Months Ended December 31, | | |
% Change 2015 vs. | |
| |
2015 | | |
2014 | | |
2014 | | |
2015 | | |
2014 | | |
2014 | |
| |
(Dollars in millions) | |
SG&A expenses | |
$ | 21.9 | | |
$ | 23.3 | | |
| (6 | )% | |
$ | 66.8 | | |
$ | 64.7 | | |
| 3 | % |
As a percent of net sales | |
| 26 | % | |
| 16 | % | |
| 10.0 | * | |
| 35 | % | |
| 21 | % | |
| 14.0 | * |
* Percentage point change
SG&A expenses for the three months ended December 31,
2015 decreased $1.4 million, or 6%, as compared to the same period in Fiscal 2015, and included an increase of $1.9 million
in severance payments offset by a reduction of $3.0 million in expenses due to lower headcount. SG&A expenses for the
nine months ended. December 31, 2015 increased $2.1 million, or 3%, as compared to the same period in Fiscal 2015 and
included an accrual of $3.7 million for employee retention bonus expenses and an increase of $1.9 million due to severance
expenses, an increase of $3.4 million related to legal and outside professional service fees, an increase of $0.5 in
marketing and advertising expense and the reversal of an accrual for performance-based incentive compensation of $1.7 million
from the prior year. These increases were offset by a decrease of $6.0 million in expenses due to lower headcount.
Research and Development Expenses
R&D expenses consist primarily of salaries and employee
benefits, including stock-based compensation expense and other headcount-related expenses, associated with content development,
product development, product engineering, third-party development and programming, and localization costs to translate and adapt
content for international markets. We capitalize external third-party costs and certain internal costs related to content development,
which are subsequently amortized into cost of sales in the statements of operations.
| |
Three Months Ended December 31, | | |
% Change 2015 vs. | | |
Nine Months Ended December 31, | | |
% Change 2015 vs. | |
| |
2015 | | |
2014 | | |
2014 | | |
2015 | | |
2014 | | |
2014 | |
| |
(Dollars in millions) | |
R&D expenses | |
$ | 9.9 | | |
$ | 9.0 | | |
| 10 | % | |
$ | 26.5 | | |
$ | 24.0 | | |
| 10 | % |
As a percent of net sales | |
| 12 | % | |
| 6 | % | |
| 6.0 | * | |
| 14 | % | |
| 8 | % | |
| 6.0 | * |
* Percentage point change
R&D expenses for the three months ended December
31, 2015 increased $0.9 million, or 10%, as compared to the same period in Fiscal 2015 primarily due to an increase of
$2.2 million of severance expense and $0.9 million of lower R&D capitalization and other overhead cost offset by a
reduction in salaries of $2.2 million from lower headcount R&D expenses for the nine months ended December 31, 2015
increased $2.5 million, or 10%, as compared to the same period in Fiscal 2015 primarily due to an increase of $2.1 million of
severance expense, an increase of $1.3 million of employee retention bonus expense and $3.7 million in lower R&D
capitalization and other overhead cost offset by a reduction in salaries of $4.6 million from lower headcount.
Advertising Expense
Advertising expense consists of costs associated with marketing,
advertising and promoting our products, including customer-related discounts and promotional allowances.
| |
Three Months Ended
December 31, | | |
% Change 2015 vs. | | |
Nine Months Ended December 31, | | |
% Change 2015 vs. | |
| |
2015 | | |
2014 | | |
2014 | | |
2015 | | |
2014 | | |
2014 | |
| |
(Dollars in millions) | |
Advertising expenses | |
$ | 17.3 | | |
$ | 26.8 | | |
| (35 | )% | |
$ | 25.4 | | |
$ | 39.5 | | |
| (36 | )% |
As a percent of net sales | |
| 21 | % | |
| 19 | % | |
| 2.0 | * | |
| 13 | % | |
| 13 | % | |
| 0.0 | * |
* Percentage point change
Advertising expenses for the three months ended December 31,
2015 decreased $9.5 million, or 35%, as compared to the same period in Fiscal 2015, which included a decrease of $5.0 million in
television advertising, $1.6 million in spending on cooperative advertising, $0.8 million in spending on in-store merchandising
and $2.2 million in other advertising media and promotions. Advertising expenses for the nine months ended December 31, 2015 decreased
$14.1 million, or 36%, as compared to the same period in Fiscal 2015, which included a decrease of $4.6 million in television advertising,
$4.6 million in spending on cooperative advertising, $2.6 million in spending on in-store merchandising and $2.2 million in other
advertising media and promotions.
Impairment of Long-lived Assets
As of December 31, 2015, based on various qualitative factors,
we determined that testing for recoverability of our long-lived assets was required. These factors included, among others, the
continued underperformance of products and product lines newly introduced to the market, and the continued significant decline
in trading value of our Class A common stock and the corresponding decline in our market capitalization. As a result, we performed
a two-step impairment test for our long-lived assets. Based on the result of the test, we recorded permanent non-cash impairment
charges of $1.1 million and $5.0 million for the three and nine months ended December 31, 2015 in our U.S. segment, primarily for
current period asset additions. These impairment charges, together with the long-lived assets impairment we recorded as of March
31, 2015, significantly reduced the carrying value of our property and equipment to $0.4 million as of December 31, 2015, which
has resulted and will continue to result in decreases in associated depreciation expenses in future periods. We will continue to
review the recoverability of our remaining long-lived assets on a quarterly basis, which may result in additional impairment charges
in future periods. Refer to Note 6 - “ Impairment of Long-lived Assets” in our Consolidated Financial Statements
included in this Quarterly Report on Form 10-Q for additional information on our impairment testing for our long-lived assets.
In addition, the Company concluded that the carrying value of certain capitalized content primarily related to LeapTV exceed the
estimated fair value as of December 31, 2015 by $1,384.
Depreciation and Amortization Expenses
| |
Three Months Ended December 31, | | |
% Change 2015 vs. | | |
Nine Months Ended December 31, | | |
% Change 2015 vs. | |
| |
2015 | | |
2014 | | |
2014 | | |
2015 | | |
2014 | | |
2014 | |
| |
(Dollars in millions) | |
Depreciation and amortization | |
$ | 0.3 | | |
$ | 3.0 | | |
| (89 | )% | |
$ | 1.4 | | |
$ | 8.6 | | |
| (84 | )% |
As a percent of net sales | |
| 0 | % | |
| 2 | % | |
| (2.0 | )* | |
| 1 | % | |
| 3 | % | |
| (2.0 | )* |
* Percentage point change
Depreciation and Amortization expenses for the three and nine
months ended December 31, 2015 decreased $2.7 million and $7.2 million, or 89% and 84%, respectively, as compared to the same period
in Fiscal 2015 driven by the reduced carrying value of our property and equipment from the permanent impairment of long-lived assets
charge we recorded as of March 31, 2015 and during the current year.
Income Taxes
Our provision for (benefit from) income taxes and effective
tax rates were as follows:
| |
Three Months Ended December 31, | | |
Nine Months Ended December 31, | |
| |
2015 | | |
2014 | | |
2015 | | |
2014 | |
| |
(Dollars in millions) | |
Provision for income taxes | |
$ | 0.8 | | |
$ | 87.2 | | |
$ | 0.8 | | |
$ | 76.6 | |
Loss before income taxes | |
| (43.4 | ) | |
| (37.0 | ) | |
| (104.8 | ) | |
| (66.0 | ) |
Effective tax rate | |
| (2.0 | )% | |
| (235.6 | )% | |
| (0.8 | )% | |
| (116.0 | )% |
Our effective tax rate is affected by recurring items, such
as tax benefit or expense relative to the amount of loss incurred or income earned in our domestic and foreign jurisdictions. Our
tax rate is also affected by discrete items, such as tax benefits attributable to the recognition of previously unrecognized tax
benefits, and tax benefit or expense due to changes in valuation allowance, which may occur in any given year but are not consistent
from year to year.
We exclude jurisdictions with tax assets for which no benefit
can be recognized from the computation of our effective tax rate. Accordingly, our domestic loss was excluded from the computation
of our effective tax rates for the three and nine months ended December 31, 2015 and 2014, respectively. We excluded our subsidiary
in France from the computation of our effective tax rates for the three and nine months ended December 31, 2015 and excluded our
subsidiary in Mexico from the computation of our effective tax rates for the three and nine months ended December 31, 2015 and
2014. See “Valuation Allowance” below for detailed information of the change in valuation allowance in the current
period.
Our effective tax rate and income tax provision for the three
and nine months ended December 31, 2015 were primarily attributable to recording a full non-cash valuation allowance against the
deferred tax assets of our subsidiary in France, and tax provisions related to our foreign operations. Our effective tax rate and
income tax provision for the three and nine months ended December 31, 2014 were primarily attributable to recording a full non-cash
valuation allowance against our domestic deferred tax assets.
During the three and nine months ended December 31, 2015, we
recognized $0.3 million and $7.0 million, respectively, of previously unrecognized domestic income tax benefits due to expiration
of statutes of limitations, which was neither recognized as a tax benefit nor affected the effective tax rate due to the full valuation
allowance recorded against our domestic deferred tax assets. During the three months ended December 31, 2015, we did not recognize
any previously unrecognized tax benefits related to its foreign operations. During the nine months ended December 31, 2015, we
recognized $0.2 million of certain previously unrecognized tax benefits due to the settlement of an income tax audit in one of
our foreign jurisdictions, which was recognized as a tax benefit and affected the effective tax rate. During the three and nine
months ended December 31, 2014, we recognized $0.2 million and $0.6 million, respectively, of certain previously unrecognized tax
benefits due to the expiration of the statute of limitations in some of our foreign jurisdictions, which was recognized as a tax
benefit and affected the effective tax rate.
Valuation Allowance
In the quarter ended December 31, 2015, we changed our business
strategy for distributing product into our French territories. We evaluated available positive and negative evidence both objective
and subjective in nature, and determined, at the required more-likely-than-not level of certainty, that our subsidiary in France
will not generate future taxable income to realize the benefits of its deferred tax assets. Accordingly, we recorded a full non-cash
valuation allowance of $0.6 million against the deferred tax assets of our French subsidiary which impacted our foreign income
tax provision and affected our effective tax rate for the three and nine months ended December 31, 2015.
During the quarter ended December 31, 2014, we evaluated our
ability to realize the benefit of our domestic deferred tax assets. We considered existing positive evidence available such as:
historic profitability, lack of expiring net operating loss and tax credit carryforwards, and viable tax strategies that could
potentially impact the likelihood of realizing our deferred tax assets. However, our performance during the 2014 holiday season
was significantly lower than anticipated and the underperformance of products and product lines newly introduced to the market
had a considerable impact on our projections of future taxable income. Consequently, we anticipated a three year cumulative domestic
loss position as of December 31, 2014. In determining if sufficient projected future taxable income exists to realize the benefit
of our deferred tax assets, we consider cumulative losses in recent years as significant negative evidence that is difficult to
overcome. After weighing all evidence available, we believed there was not sufficient positive evidence to overcome the significant
negative evidence and so determined, that sufficient projected future taxable income did not exist to realize the full benefit
of our domestic deferred tax assets before expiration. As a result, we concluded a full valuation allowance against our domestic
deferred tax assets was warranted. Accordingly, we recorded a full non-cash valuation allowance, of which $90.8 million was recorded
as domestic income tax provision and affected our effective tax rate for the three and nine months ended December 31, 2014.
As of December 31, 2015, we maintained a full valuation allowance
against our domestic deferred tax assets and a full valuation allowance against the deferred tax assets of our subsidiaries in
Mexico and France. As of December 31, 2015, we also evaluated the need for a valuation allowance against the deferred tax assets
of our other foreign jurisdictions, and believe that the benefit of these deferred tax assets will be realized at the required
more-likely-than-not level of certainty. Therefore, no valuation allowance has been established against such deferred tax assets
as of December 31, 2015. We will continue to evaluate all evidence in all jurisdictions in future periods to determine if a change
in valuation allowance against our deferred tax assets is warranted. Any changes to our valuation allowance will affect our effective
tax rate, but will not affect the amount of cash paid for income taxes in the foreseeable future.
Results of Operations by Segment
We organize, operate and assess our business in two primary
operating segments: U.S. and International. This presentation is consistent with how our chief operating decision maker reviews
performance, allocates resources and manages the business.
United States Segment
The U.S. segment includes net sales and related expenses directly
associated with selling our products to national and regional mass-market and specialty retailers, other retail stores, distributors,
resellers, and online channels including our App Center. Certain corporate-level operating expenses associated with sales and marketing,
product support, human resources, legal, finance, information technology, corporate development, procurement activities, R&D,
legal settlements and other corporate costs are charged entirely to our U.S. segment.
| |
Three Months Ended
December 31, | | |
% Change 2015 vs. | | |
Nine Months Ended December 31, | | |
% Change 2015 vs. | |
| |
2015 | | |
2014 | | |
2014 | | |
2015 | | |
2014 | | |
2014 | |
| |
(Dollars in millions) | |
Net sales | |
$ | 58.6 | | |
$ | 99.2 | | |
| (41 | )% | |
$ | 132.0 | | |
$ | 207.4 | | |
| (36 | )% |
Cost of sales | |
| 56.0 | | |
| 69.6 | | |
| (20 | )% | |
| 125.7 | | |
| 148.6 | | |
| (15 | )% |
Gross margin * | |
| 4.4 | % | |
| 29.8 | % | |
| (25.4 | )** | |
| 4.8 | % | |
| 28.4 | % | |
| (23.6 | )** |
Operating expenses | |
| 41.2 | | |
| 69.4 | | |
| (41 | )% | |
| 108.1 | | |
| 132.8 | | |
| (19 | )% |
Operating expenses as a percent of net sales | |
| 70.4 | % | |
| 70.0 | % | |
| 0.4 | ** | |
| 81.9 | % | |
| 64.0 | % | |
| 18.0 | ** |
Loss from operations | |
$ | (38.7 | ) | |
$ | (39.8 | ) | |
| (3 | )% | |
$ | (101.8 | ) | |
$ | (74.0 | ) | |
| (38 | )% |
* Gross profit as a percentage of net sales
** Percentage point change
Net sales for the three months ended December 31, 2015 decreased
$40.6 million, or 41%, as compared to the same period in Fiscal 2015, which included a decrease of $36.6 million in net sales of
multimedia learning platforms, related content, and accessories and a decrease of $3.8 million in net sales of learning toys. Net
sales for the nine months ended December 31, 2015 decreased $75.4 million, or 36%, as compared to the same period in Fiscal 2015,
which included a decrease of $64.0 million in net sales of multimedia learning platforms related content and accessories and a
decrease of $10.6 million in net sales of learning toys. Our LeapPad line of tablets experienced decreased consumer demand as the
overall market for children’s tablets has continued to decline. In addition, net sales of our LeapReader learn-to-read system
and toys decreased as retail point-of-sale fell and retailers ran tighter inventories. During the three and nine months ended December
31, 2015, we recorded a $0.0 million and $7.0 million allowance, respectively, as part of increased trade discounts against net
sales, associated with the LeapTV price reductions implemented in the second quarter to stimulate consumer demand. During the second
quarter of Fiscal 2016 we successfully entered the Consumer-electronics aisle launching our first android based tablet, Epic, representing
18% and 12% of sales during the three and nine months ended December 31, 2015.
Cost of sales for the three months ended December 31, 2015 decreased
$13.6 million, or 20%, as compared to the same period in Fiscal 2015 driven by lower net sales resulting in a decrease of $18.5
million in product costs, a decrease of $1.9 million in freight and warehouse costs, a decrease of $0.7 million in depreciation
expenses, a decrease of $2.0 million in royalty costs and a decrease of $0.3 million in web fees. The decreases were offset by
an increase of $8.1 million in inventory allowances and additional amortization of $1.9 million on capitalized content, of which
$1.4 million was due to amounts exceeding the net realizable value. Cost of sales for the nine months ended December 31, 2015 decreased
$22.9 million, or 15%, as compared to the same period in Fiscal 2015 driven by lower net sales resulting in a decrease of $27.0
million in product costs, a decrease of $2.9 million in freight and warehouse costs, a decrease of $2.0 million in depreciation
expenses, a decrease of $2.9 million in royalty costs and a decrease of $0.6 million in web fees. The decreases were offset by
increases of $10.0 million in inventory allowances and additional amortization of $2.6 million on capitalized content, of which
$1.4 million was due to amounts exceeding the net realizable value.
Gross margin for the three months ended December 31, 2015 was
4.4%, a decrease of 25.4 percentage points as compared to the same period in Fiscal 2015. Of this difference, 15.6 percentage points
was primarily due to lower of cost or market charges and excess and obsolete inventory charges associated with LeapTV, 5.4 percentage
points due to changes in sales mix with proportionally higher sales of lower-margin toys, and lower sales of higher-margin product,
1.9 percentage points due to higher warehouse costs, and 5.1 percentage points due to additional amortization of capitalized content.
These negative impacts were offset by increases of 1.2 percentage points due to proportionally lower freight costs, 0.7 percentage
points of depreciation expense due to lower property and equipment and 0.3 percentage points associated with lower royalty rates.
Gross margin for the nine months ended December 31, 2015 was 4.8%, a decrease of 23.6 percentage points as compared to the same
period in Fiscal 2015. Of this difference, 9.0 percentage points was primarily due to lower of cost or market charges and excess
and obsolete inventory charges associated with LeapTV, 9.7 percentage points due to changes in sales mix with proportionally higher
sales of lower-margin toys, and lower sales of higher-margin products, 2.4 percentage points due points was due to lower sales
volume which increased the impact of fixed logistics costs, and 4.3 percentage points due to additional amortization previously
capitalized. These negative impacts were offset by increases of 0.9 percentage points due to proportionally lower freight costs
and 0.9 percentage points in depreciation expense.
Operating expenses for the three months ended December
31, 2015 decreased $28.2 million, or 41%, as compared to the same period in Fiscal 2015, due to the a decrease in advertising
of $6.7 million, a decrease in payroll and related expense of $4.8 million associated with lower headcount, and a decrease
of $2.6 million in depreciation expenses resulting from the impairment of our property and equipment in the fourth quarter
of prior year and a decrease in goodwill expense in the amount of $18.5 million from prior year. These decreases were offset
by $3.3 million in severance cost associated with the reduction in headcount and $1.1 million in lower R&D
capitalization and other overhead cost. Operating expenses for the nine months ended December 31, 2015 decreased $24.7
million, or 19%, as compared to the same period in Fiscal 2015, due to a decrease in advertising of $8.5 million, a decrease
in payroll and related expense of $9.8 million associated with lower headcount, a decrease of $7.1 million in depreciation
expenses resulting from the impairment of our property and equipment in the fourth quarter of prior year and a decrease in
goodwill in the amount of $14.6 million from prior year. These amounts were offset by increases of $3.2 million in severance,
the reversal of prior year bonus of $4.7 million, an increase of $3.4 million for legal and professional services and $4.0
million in lower R&D capitalization and other overhead cost.
Loss from operations for the three and nine months ended December
31, 2015 decreased by $1.1 million and increased $27.8 million, respectively, as compared to the same periods in Fiscal 2015 driven
by a decrease in gross profit of $27.0 million and $52.5 million, respectively, and a decrease in operating expenses of $28.2 million
and $24.7 million, respectively.
International Segment
The International segment includes the net sales and related
expenses directly associated with selling our products to national and regional mass-market and specialty retailers and other outlets
through our offices in the United Kingdom, France and Canada and through distributors in markets such as Australia, Mexico, South
Africa and Spain, as well as through our App Centers directed to certain international jurisdictions. 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, legal settlements and other corporate costs are allocated to our
U.S. segment and not allocated to our International segment.
| |
Three Months Ended
December 31, | | |
% Change 2015 vs. | | |
Nine Months Ended December 31, | | |
% Change 2015 vs. | |
| |
2015 | | |
2014 | | |
2014 | | |
2015 | | |
2014 | | |
2014 | |
| |
(Dollars in millions) | |
Net sales | |
$ | 24.5 | | |
$ | 45.4 | | |
| (46 | )% | |
$ | 57.0 | | |
$ | 97.8 | | |
| (42 | )% |
Cost of sales | |
| 19.6 | | |
| 29.9 | | |
| (34 | )% | |
| 42.4 | | |
| 65.6 | | |
| (35 | )% |
Gross margin * | |
| 20.1 | % | |
| 34.2 | % | |
| (14.1 | )** | |
| 25.6 | % | |
| 32.9 | % | |
| (7.3 | )** |
Operating expenses | |
| 9.4 | | |
| 12.2 | | |
| (23 | )% | |
| 17.0 | | |
| 23.5 | | |
| (28 | )% |
Operating expenses as a percent of net sales | |
| 38.2 | % | |
| 26.8 | % | |
| 11.4 | ** | |
| 29.8 | % | |
| 24 | % | |
| 6.0 | ** |
Income from operations | |
$ | (4.4 | ) | |
$ | 3.3 | | |
| (233 | )% | |
$ | (2.4 | ) | |
$ | 8.6 | | |
| (128 | )% |
* Gross profit as a percentage of net sales
** Percentage point change
Net sales for the three months ended December 31, 2015 decreased
$20.9 million, or 46%, as compared to the same period in Fiscal 2015, which included a decrease of $18.5 million in net sales of
multimedia learning platforms and a decrease of $3.0 million in net sales of learning toys. Net sales for the nine months ended
December 31, 2015 decreased $40.8 million, or 42%, as compared to the same period in Fiscal 2015, which included a decrease of
$32.4 million in net sales of multimedia learning platforms and a decrease of $9.3 million in net sales of learning toys. Our LeapPad
line of tablets experienced decreased consumer demand as the global market for children’s tablets has also declined. In addition,
net sales of our LeapReader learn-to-read system and toys decreased as demand declined in key markets. Sales continued to be impacted
by retail store closures in Canada, Australian distributor, move to distribution model in France and retailers ran tighter inventories.
Net sales for the three and nine months ended December 31, 2015 included a negative $2.7 million, or 6%, and a negative $18.3 million,
or 19%, impact from changes in currency exchange rates, respectively.
Cost of sales for the three months ended December 31, 2015
decreased $10.3 million, or 34%, as compared to the same period in Fiscal 2015 driven by lower net sales resulting in a
decrease of $8.6 million in product costs, a decrease of $1.2 million in freight and warehouse expenses, and a decrease of
$1.1 million in royalty costs. The decreases were offset by an increase of $0.5 million in inventory allowances. Cost of sales for
the nine months ended December 31, 2015 decreased $23.2 million, or 35%, as compared to the same period in Fiscal 2015 driven
by lower net sales resulting in a decrease of $19.8 million in product costs, a decrease of $1.9 million in logistic costs
and a decrease of $1.5 million in royalty costs.
Gross margin for the three months ended December 31, 2015 was
20.1%, a decrease of 14.1 percentage points as compared to the same period in Fiscal 2015. Of this difference, 10.2 percentage
points due to changes in sales mix with proportionally higher sales of lower-margin toys and lower sales of higher-margin products,
3.4 percentage points was primarily due to excess and obsolete inventory written down in the current quarter and 1.1 percentage
points due to higher web fees. These negative impacts were offset by 0.7 percentage points due to lower royalty costs. Gross margin
for the nine months ended December 31, 2015 was 25.6%, a decrease of 7.3 percentage points as compared to the same period in Fiscal
2015. Of this difference, 5.1 percentage points due to changes in sales mix with proportionally higher sales of lower-margin toys
and lower sales of higher-margin products 0.9 percentage points due to excess and obsolete inventory written down in the second
and third quarter, 1.0 percentage points in lower freight and warehouse expenses and 0.5 percentage points due to higher web fees.
Operating expenses for the three months ended December 31, 2015
decreased $2.8 million, or 23%, as compared to the same period in Fiscal 2015, which included a decrease of $2.8 million in advertising,
a decrease of $0.4 million in payroll and related expenses and a $0.3 in provision for doubtful accounts offset by $0.8 million
in severance costs associated with the reduction in headcount. Operating expenses for the nine months ended December 31, 2015 decreased
$6.5 million, or 28%, as compared to the same period in Fiscal 2015, which included a decrease of $5.6 million in advertising and
promotions, lower R&D expenses of $1.1 million, a reduction in payroll and related expenses of $ 0.7 million offset by $0.8
million in severance costs associated with the reduction in headcount.
Income from operations for the three and nine months ended December
31, 2015 worsened by $7.7 million and $11.0 million, respectively, as compared to the same periods in Fiscal 2015 driven by a decrease
in gross profit of $10.6 million and $17.6 million, respectively, offset by a decrease in operating expenses of $2.8 million and
$6.5 million, respectively.
Liquidity and Capital Resources
Financial Condition
Cash and cash equivalents totaled $52.8 million and $94.0 million
at December 31, 2015 and 2014, respectively. The decrease was primarily due to an operating loss as well as capital expenditures
in the year offset by $20 million of borrowing under our ABL in the quarter. In line with our investment policy, as of December
31, 2015, all cash equivalents were invested in high-grade short-term money market funds and certificates of deposits with maturities
of less than three months. Included in the certificates of deposit as of December 31, 2015, was $10.0 million of collateral under
our asset-based revolving credit facility arrangement (the “revolving credit facility”).
Cash and cash equivalents held by our foreign subsidiaries totaled
$19.7 million and $25.5 million as of December 31, 2015 and 2014, respectively. As of December 31, 2015, we do not consider the
undistributed earnings of our foreign subsidiaries as permanently reinvested outside the U.S. Consequently, we maintained a deferred
tax liability of $3.4 million for U.S. income tax, which was offset by our domestic net operating losses and therefore did not
impact our effective tax rate due to the full valuation allowance established against our domestic deferred tax assets. In addition,
we maintained a deferred tax liability of $0.5 million for non-U.S withholding tax associated with the future repatriation of earnings
from our foreign subsidiaries.
A change in business strategy for distributing product into
Mexico and France will ultimately result in the liquidation of our subsidiaries in Mexico and France as we outsource distribution
to a third party. At the end of the liquidation process, we intend to repatriate any remaining residual cash to the U.S. We believe
the cash repatriation from our Mexico subsidiary is considered return of capital and not a repatriation of earnings and therefore
will not result in a U.S. tax liability. Accordingly we have not recorded a tax provision for such return of capital. We believe
the cash repatriation from our France subsidiary may be considered a repatriation of earnings. Any U.S tax liability resulting
from the cash repatriation from our France subsidiary would be fully offset by our domestic operating loss carryforwards and therefore
not impact neither our tax provision nor our effective tax rate due to the full valuation allowance established against our domestic
deferred tax assets. As of December 31, 2015, we do not consider our Mexico or our France subsidiary as substantially liquidated.
Upon its future complete or substantially complete liquidation, we are required to release any cumulative translation adjustment
related to our Mexico and France subsidiaries into our consolidated statement of operations. As of December 31, 2015, the balance
of such cumulative currency translation adjustment for our subsidiary in Mexico and France was a negative $2.6 million and negative
$0.5 million, respectively, in “Accumulated Other Comprehensive Income (Loss)” on the consolidated balance sheet, which
would result in a negative impact to our results of operations if it were to be released.
Our revolving credit facility has two borrowing periods, the
months of September through December and the remaining months in which the Company has a potential borrowing availability of $75.0
million and $50.0 million respectfully. The borrowing availability varies according to the levels of our accounts receivable and
cash and investment securities deposited in secured accounts with the lenders. Borrowing availability under this revolving credit
facility was $21.1 million as of December 31, 2015. As of December 31, 2015, we had two stand-by-letters of credit totaling approximately
$0.2 million issued under our revolving credit facility as credit support for potential future payment obligations. Borrowings
outstanding on our revolving credit facility as of December 31, 2015 were $20.0 million.
Capital expenditures were $13.6 million for the nine months
ended December 31, 2015 and $34.2 million for the same period in Fiscal 2015. Future capital expenditures are primarily planned
for new product development. We expect that capital expenditures for the fiscal year ending March 31, 2016, including those for
capitalized content costs will be funded with working capital on hand and availability under our revolving credit facility. We
expect capital expenditures for the year ending March 31, 2016, including those capitalized content costs, to be in the range of
$15.0 million to $17.0 million.
During the third fiscal quarter, we continued to face
an uncertain business environment and a number of fundamental challenges in our business, including a continued decline
in overall tablet sales and related content, aggressive price competition and loss of shelf space at retail. Sales
of our LeapTV products and associated content did not improve in the third quarter to the extent we hoped, despite
promotional efforts, including price reductions intended to stimulate consumer demand. In addition, declines in the
overall tablet market overshadowed improvements in certain product lines such as our new Epic tablet. We do not believe
that these challenging conditions will improve materially in the next two quarters. We continued to take steps to
reduce costs through such measures as reducing the size of our workforce and deferring the development of certain new
products. However, we believe that available approaches to improving our liquidity, such as making changes to vendor
terms and accelerating the collection of receivables, may not compensate for the liquidity impact of our worse than
anticipated performance during the third quarter. We currently believe that liquidity available to fund our operations
should the deal close or other financing become available during the first two quarters of fiscal 2017, when our use of cash
increases as we build inventories and experience seasonal declines in revenue, may be insufficient to permit us to continue
normal operations, and there is substantial doubt about our ability to continue as a going concern.
In addition to steps taken to change our business
structure and operations, we have been working with a financial advisor to assist us in exploring strategic
alternatives, including a potential sale or raising additional capital. On February 5, 2016, we entered into an
Agreement and Plan of Merger with VTech Holdings, Ltd. and Bonita Merger Sub., L.L.C. For further information
concerning the Agreement and Plan of Merger, see note 11 and information contained in our Form 8-K filed February 5, 2016,
including exhibits thereto. If the transaction described in the Agreement and Plan of Merger or another transaction providing
the Company with substantial liquidity is not completed, the Company will likely face significant difficulties in generating
sufficient liquidity to continue normal operations over the first two quarters of Fiscal 2017.
Cash Sources and Uses
The table below shows our sources and uses of cash for the nine
months ended December 31, 2015 as compared to the same period in Fiscal 2015:
| |
Nine
Months Ended December 31, | | |
% Change 2015 vs. | |
| |
2015 | | |
2014 | | |
2014 | |
| |
(Dollars in millions) | |
Net cash provided by (used in): | |
| | | |
| | | |
| | |
Operating activities | |
$ | (79.4 | ) | |
$ | (104.9 | ) | |
| 24 | % |
Investing activities | |
| (13.6 | ) | |
| (34.2 | ) | |
| 60 | % |
Financing activities | |
| 19.8 | | |
| 0.5 | | |
| (3860 | )% |
Effect of exchange rate changes on cash | |
| (1.2 | ) | |
| 0.5 | | |
| (331 | )% |
Net change in cash and cash equivalents | |
$ | (74.4 | ) | |
$ | (138.1 | ) | |
| 46 | % |
Net cash used in operations for the nine months ended December
31, 2015 increased $25.5 million as compared to the same period in Fiscal 2015 primarily due to reductions in our inventory levels
and lower accounts receivable balances offset by a larger net loss in the prior year.
Net cash used in investing activities for the nine months ended
December 31, 2015 decreased $20.6 million as compared to the same period in Fiscal 2015 primarily due to lower investments to upgrade
our internal business systems.
Net cash provided in financing activities for the nine months
ended December 31, 2015 increased to$19.8 million as compared to $0.5 million the same period in Fiscal 2015 due to borrowings
under our revolving credit facility in the amount of $20.0 million which was subsequently paid off during January 2016.
Seasonal Patterns of Cash Provided By
or Used in Operations
Historically, our cash flow from operations
has been highest in the quarter ending March 31 of each year when we collect a majority of our accounts receivable booked in the
quarter ending December 31 of the year. Cash flow used in operations tends to be highest in the quarter ending December 31, as
collections from prior accounts receivable taper off and we invest heavily in inventory in preparation for the holiday season.
Historically, cash flow generally turns positive again in the quarter ending December 31 as we begin to collect on the accounts
receivable associated with the holiday season.
Contractual Obligations and Commitments
We have had no material changes outside the ordinary course
of our business in our contractual obligations during the nine months ended December 31, 2015. As of December 31, 2015, we had
commitments to purchase inventory under normal supply arrangements totaling approximately $5.7 million. In addition, as of December
31, 2015, we had two stand-by-letters of credit totaling approximately $0.2 million issued under our revolving credit facility
as credit support for potential future payment obligations, which were off-balance sheet arrangements. At December 31, 2015, we
had $20.0 million outstanding under our revolving credit facility, which was subsequently paid during January 2016.
Critical Accounting Policies
In the ordinary course of business, we make a number of estimates
and assumptions relating to the reporting of results of operations and financial position in the preparation of our consolidated
financial statements in conformity with accounting principles generally accepted in the U.S. Actual results could differ significantly
from those estimates under different assumptions and conditions. We included in our 2015 Form 10-K a discussion of our critical
accounting policies that are particularly important to the portrayal of our financial position and results of operations and that
require the use of our management’s most difficult, subjective and complex judgments, often as a result of the need to make
estimates about the effect of matters that are inherently uncertain.
We have made no material changes to any of the critical accounting
policies discussed in our 2015 Form 10-K through December 31, 2015.
Recently Issued Accounting Guidance Not Yet Adopted
In July 2015, the Financial Accounting Standards Board (“FASB”)
issued Accounting Standard Update (“ASU”) 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory,
which requires that inventory be measured at the lower of cost and net realizable value. ASU 2015-11 will be effective for annual
reporting periods beginning after December 15, 2016, including interim periods within that reporting period, i.e. the first quarter
of our fiscal year 2018. The guidance should be applied prospectively with earlier application permitted as of the beginning of
an interim or annual reporting period. We do not expect a material impact on our consolidated financial statement upon the adoption
of this guidance.
In August 2014, the FASB issued ASU 2014-15, Presentation
of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue
as a Going Concern. This guidance requires management to evaluate, at each interim and annual reporting period, whether there
are conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one
year after the date the financial statements are issued, and provide related disclosures. This guidance will be effective for annual
period ending after December 15, 2016, i.e. our fiscal year ending March 31, 2017, and for annual and interim periods thereafter.
Early adoption is permitted. We will modify presentation to meet the new accounting guidance as required in future financial statements
.
In May 2014, the FASB issued ASU 2014-09, Summary and Amendments
That Create Revenue from Contracts with Customers (Topic 606) and Other Assets and Deferred Costs-Contracts with Customers (Subtopic
340-40). This guidance outlines a single comprehensive model for accounting for revenue arising from contracts with customers
and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of this
guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount
that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance
also includes a cohesive set of disclosure requirements intended to provide users of financial statements with comprehensive information
about the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers.
This guidance can be adopted either retrospectively to each prior reporting period presented, or retrospectively with a cumulative-effect
adjustment recognized as of the date of adoption. The original effective date of this guidance for public entities was for annual
reporting periods beginning after December 15, 2016. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with
Customers (Topic 606), to defer the effective date of this guidance by one year, to the annual reporting periods beginning
after December 15, 2017, including interim periods within that reporting period, i.e. the first quarter of our fiscal year 2019.
A reporting entity may choose to early adopt the guidance as of the original effective date.
In November 2015, the FASB issued ASU 2015-17—Income Taxes
(Topic 740): Balance Sheet Classification of Deferred Taxes, to simplify the presentation of deferred income taxes.
The amendments in ASU 2015-17 require that deferred tax liabilities and assets be classified as non-current in a classified statement
of financial position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity
be offset and presented as a single amount is not affected by the amendments in the update. ASU 2015-17 is effective for fiscal
years beginning after December 15, 2016, and interim periods within those years, and may be applied either prospectively to all
deferred tax liabilities and assets or retrospectively to all periods presented. The Company is currently evaluating the impact
this guidance will have on its consolidated financial statements, which will impact the classification of deferred taxes on its
consolidated balance sheets. We do not anticipate an early adoption, and are currently evaluating the impact on our consolidated
financial statements upon the adoption of this guidance.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK
Our market risk disclosures set forth in Item 7A of our 2015
Form 10-K have not changed materially for our quarter ended December 31, 2015.
We develop products in the U.S. and market our products primarily
in North America and, to a lesser extent, in Europe and the rest of the world. We are billed by and pay our third-party manufacturers
in U.S. dollars. Sales to our international customers are transacted primarily in the country’s local currency. As a result,
our financial results could be affected by factors such as changes in foreign currency rates or weak economic conditions in foreign
markets.
We manage our foreign currency transaction exposure by entering
into short-term forward contracts. The purpose of this hedging program is to minimize the foreign currency exchange gain or loss
reported in our financial statements, but the program, when properly executed, may not always eliminate our exposure to movements
of currency exchange rates. The results of our hedging program for the three and nine months ended December 31, 2015 and 2014 are
summarized in the table below:
| |
Three Months Ended December 31, | | |
Nine Months Ended December 31, | |
| |
2015 | | |
2014 | | |
2015 | | |
2014 | |
| |
(Dollars In thousands) | | |
(Dollars In thousands) | |
Gain (loss) on foreign exchange forward contracts | |
$ | (62 | ) | |
$ | 1,209 | | |
$ | 42 | | |
$ | 2,871 | |
Gain (loss) on underlying transactions denominated in foreign currency | |
| 156 | | |
| (1,551 | ) | |
| 228 | | |
| (3,379 | ) |
Net gains (losses) | |
$ | 94 | | |
$ | (342 | ) | |
$ | 270 | | |
$ | (508 | ) |
Our foreign exchange forward contracts generally have original maturities
of one month or less. A summary of all foreign exchange forward contracts outstanding as of December 31, 2015 is as follows:
| |
As of December 31, 2015 | |
| |
Average Forward Exchange Rate | | |
Notional Amount in
Local Currency | | |
Fair Value of Instruments in USD | |
| |
| | |
(1) | | |
(2) | |
Currencies: | |
| | | |
| | | |
| | |
Euro (Euro/USD) | |
| 1.092 | | |
| 2,296 | | |
$ | 10 | |
Total fair value of instruments in USD | |
| | | |
| | | |
$ | 10 | |
(1) |
In thousands of local currency |
(2) |
In thousands of USD |
Cash equivalents are presented at fair value on our consolidated
balance sheet. We invest our excess cash in accordance with our investment policy. As of December 31, 2015 and 2014, and March
31, 2015, our excess cash was invested in money market funds and certificates of deposit.
ITEM 4. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
We have evaluated the effectiveness of our disclosure controls and
procedures as of the end of the period covered by this Quarterly Report on Form 10-Q. This evaluation was performed by management,
with the participation of our Chief Executive Officer (“CEO”) and our Chief Financial Officer (“CFO”).
Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be
disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), such as this Quarterly Report on Form 10-Q, is recorded, processed, summarized and reported, within the time periods
specified in the rules and forms of the U.S. Securities and Exchange Commission (“SEC”) and include, without limitation,
controls and procedures designed to ensure that information required to be disclosed by us in the reports that we file or submit
under the Exchange Act is accumulated and communicated to our management, including our CEO and CFO, as appropriate to allow timely
decisions regarding required disclosure.
Based on this evaluation, our CEO and CFO have concluded that our
disclosure controls and procedures were effective as of December 31, 2015.
Inherent Limitations on Effectiveness of Controls
A control system, no matter how well conceived and operated, can
provide only reasonable, not absolute, assurance that the objectives of the control system are met. Because of inherent limitations,
internal control over financial reporting may not prevent or detect misstatements. Accordingly, our disclosure controls and procedures
are designed to provide reasonable, not absolute, assurance that the objectives of our disclosure system are met. Also, projections
of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes
in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Changes in Internal Control over Financial Reporting
In July 2015, we completed a version upgrade to our enterprise resource
planning (“ERP”) system for both the accounting and financial reporting modules. During the implementation period,
we have reassessed and updated, as necessary, the design and documentation of internal controls processes and procedures relating
to the upgraded system as appropriate and necessary to supplement and complement existing internal controls over financial reporting.
Based on management’s assessment of the upgrade, it appears that the upgrade did not adversely impact our internal controls
over financial reporting. We will continue to enhance our ERP system through the remainder of Fiscal 2016 and beyond, as necessary.
Except for the item discussed above, there were no changes in our
internal control over financial reporting during the three months ended December 31, 2015 that have materially affected, or are
reasonably likely to materially affect, our internal control over financial reporting.
PART II.
OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Refer to information under the heading “Legal Proceedings”
in Note 10 - “Commitments and Contingencies” in our Consolidated Financial Statements included in this Quarterly
Report on Form 10-Q.
ITEM 1A. RISK FACTORS
Our business, financial condition and operating results can be affected
by a number of factors, including those described below, any one of which could cause our actual results to vary materially from
recent results or from our anticipated future results. In addition to other information contained in this Quarterly Report on Form
10-Q and our other filings with the SEC, the following risk factors should be considered carefully before you decide whether to
buy, hold or sell our common stock. Additional risks not presently known to us or that we currently deem immaterial may also impair
our business, financial conditions, results of operations and stock price.
We have experienced reduced demand for our principal
products, have incurred significant operating losses, anticipate continuing to incur losses in Fiscal 2017, and may not be able
to continue as a going concern.
We have experienced losses for the past two years that continued
into the third quarter of fiscal 2016, primarily attributed to a prolonged downturn in the Company’s business. At December
31, 2015 and 2014 and March 31, 2015, we had an accumulated deficit of $328.2 million, $146.4 million and $222.6 million, respectively.
For the nine months ended December 31, 2015 and 2014, we had a net loss of $105.6 million and $142.2 million, respectively.
Our ability to generate cash from operations depends on the
level of demand for our products and the related margins we can obtain. The preferences and interests of children and families
evolve quickly, can change drastically from year to year and are difficult to predict. Even our successful products typically have
a relatively short period of high demand followed by a decrease in demand as the product matures. We depend on our ability to correctly
identify changing consumer sentiments well in advance and supply new products that respond to such changes on a timely basis. We
also rely on our ability to identify third-party entertainment media that is likely to be popular with consumers and license rights
to such media to incorporate into our products. In addition, we need to be able to accurately forecast sales of these products
in order to optimize our production schedules and manage our inventory. Since our products typically have a long development cycle,
in some cases lasting over a year, it can be difficult to correctly predict changing consumer preferences and accurately forecast
optimal production and sales targets for these products.
The overall market for children’s tablets has
increasingly declined in recent years, which has resulted in lower sales of our LeapPad products. Our LeapTV platform and LeapReader
learn-to-read system and toys have also experienced decreased sales, significantly underperforming our expectations. This has resulted
in higher than anticipated inventory levels of the products, significant inventory writedowns and substantial operating losses.
If we are unable to correctly predict consumer preferences, successfully integrate popular third-party media with our own, accurately
forecast sales targets for our products, or develop new products to respond to evolving interests, our current and future operating
results will continue to be materially and negatively impacted.
During the third fiscal quarter, we continued to face an uncertain
business environment and a number of fundamental challenges in our business, including a continued decline in overall tablet sales
and related content, aggressive price competition and loss of shelf space at retail. Sales of our LeapTV products and
associated content did not improve in the third quarter to the extent we hoped, despite promotional efforts, including price reductions
intended to stimulate consumer demand. In addition, declines in the overall tablet market overshadowed improvements in certain
product lines such as our new Epic tablet. We do not believe that these challenging conditions will improve materially in
the next two quarters. We continued to take steps to reduce costs through such measures as reducing the size of our workforce
and deferring the development of certain new products. However, we believe that available approaches to improving our liquidity,
such as making changes to vendor terms and accelerating the collection of receivables, may not compensate for the liquidity
impact of our worse than anticipated performance during the third quarter. We currently believe that liquidity available
to fund our operations during the first two quarters of fiscal 2017, when our use of cash increases as we build inventories and
experience seasonal declines in revenue, may be insufficient to permit us to continue normal operations, and there is substantial
doubt about our ability to continue as a going concern.
In addition to steps taken
to change our business structure and operations, we have been working with a financial advisor to assist us in exploring
strategic alternatives, including a potential sale or raising additional capital. On February 5, 2016, we entered into
an Agreement and Plan of Merger with VTech Holdings, Ltd. and Bonita Merger Sub., L.L.C. For further
information concerning the Agreement and Plan of Merger, see note 11 and information contained in our Form 8-K filed February
5, 2016, including exhibits thereto. If the transaction described in the Agreement and Plan of Merger or another transaction
providing the Company with substantial liquidity is not completed, the Company may likely face significant difficulties in
generating sufficient liquidity to continue normal operations over the first two quarters of Fiscal 2017.
Risks Relating to the Merger Agreement
On February 5, 2016, we entered into an Agreement and
Plan of Merger (the “Merger Agreement”) with VTech Holdings Limited, an exempted company incorporated in Bermuda
with limited liability (“VTech”), and Bonita Merger Sub, L.L.C., a Delaware limited liability company and a
wholly owned subsidiary of VTech (“Acquisition Sub”). Pursuant to the Merger Agreement, and upon the terms
and subject to the conditions described therein, Acquisition Sub has agreed to commence a tender offer to purchase the
outstanding shares of our Class A common stock of the Company and the outstanding shares of our Class B common stock of the
Company, at a purchase price per Share of US $1.00. The completion of the merger is subject to a number of conditions which
make the completion and timing of the completion of the merger uncertain, including, among other things, the tender of the
percentage of shares required under Delaware law to permit an immediate closing under Section 251(h) of the Delaware General
Corporation Law, the completion of the second-step merger, our Net Cash Balance (as defined in the Merger Agreement) being at
least $25 million as of March 31, 2016 or, if earlier, the business day immediately prior to the first time at which the
Acquisition Sub accepts for payment any Shares tendered pursuant to the Offer, receipt of any required governmental
approvals, and other customary conditions. Also, either we or VTech may terminate the merger agreement if the merger has not
been completed by July 5, 2016. If the merger is not completed on a timely basis, or at all, our ongoing businesses may
be adversely affected and, without realizing any of the benefits of having completed the merger, we will be subject to a
number of risks, including the following:
| · | we will be required to pay costs relating to the merger, such
as legal, accounting, financial and advisory fees, whether or not the merger is completed; |
| · | time and resources committed by our management to matters
relating to the merger could otherwise have been devoted to pursuing other beneficial opportunities; |
| · | the market price of the Company’s Class A common stock could
decline to the extent that the current market price reflects a market assumption that the merger will be completed; |
| · | the Company could be subject to litigation related to the merger or
failure to complete the merger; |
| · | we may be unable to continue as a going concern; and |
| · | the
Company may be required, in certain circumstances, to pay a termination fee of $2.9 million to VTech.
|
For additional information concerning the terms of the Merger Agreement,
see note 11 and our Form 8-K filed on February 5, 2016 and the exhibits thereto, which are incorporated herein. The above summary
of certain aspects of the Merger Agreement is incomplete and qualified in its entirety by reference to the Agreement itself.
A few stockholders control
a significant percentage of our voting power. If they fail to support our Merger Agreement with VTech the transaction may not be
completed.
Our Class A common stock entitles its holders to one vote per
share, and our Class B common stock entitles its holders to ten votes per share on all matters submitted to a vote of our stockholders.
As of December 31, 2015, Michael Milken and Lowell Milken together owned, directly and indirectly, approximately 3.6 million shares
of our Class B common stock and Sandra Milken beneficially owned 0.8 million shares of our Class B common stock. Together, these
three stockholders represented approximately 39.8% of the combined voting power of our Class A common stock and Class B common
stock as of December 31, 2015. The Merger Agreement with VTech requires as a condition of closing the tender offer that a sufficient
number of shares of Class A and Class B common stock be tendered to constitute a majority of the voting power of all of the Class
A and Class B common stock together, calculated in the manner specified in the Merger Agreement. Because holders of Class B common
stock are entitled to ten votes per share, decisions by the holders of Class B shares to tender in the offer or not will have a
significant and disproportionate influence over whether the tender offer is completed. In addition, the Class B holders , if voting
together would have significant influence on stockholder vote outcomes, including with respect to:
| · | the composition of our board of directors and, through it, any determination
with respect to our business direction and policies, including the appointment and removal of officers; and |
| · | our financing activities. |
Messrs. Michael and Lowell Milken and Ms. Milken could have
interests that diverge from those of our other stockholders. This significant influence by a few stockholders could deter, delay
or prevent a change in control of LeapFrog; or affect other significant corporate transactions that otherwise might be viewed as
beneficial for other stockholders.
Our business depends on our ability to correctly predict highly
changeable consumer preferences and product trends.
The preferences and interests of children and families evolve quickly,
can change drastically from year to year and are difficult to predict. Even our successful products typically have a relatively
short period of high demand followed by a decrease in demand as the product matures. We depend on our ability to correctly identify
changing consumer sentiments well in advance and supply new products that respond to such changes on a timely basis. We also rely
on our ability to identify third-party entertainment media that is likely to be popular with consumers and license rights to such
media to incorporate into our products. In addition, we need to be able to accurately forecast sales of these products in order
to optimize our production schedules and manage our inventory. Since our products typically have a long development cycle, in some
cases lasting over a year, it can be difficult to correctly predict changing consumer preferences and accurately forecast optimal
production and sales targets for these products. If we are unable to correctly predict consumer preferences, successfully integrate
popular third-party media with our own or accurately forecast sales targets for our products, our current and future operating
results could be materially and negatively impacted. For example, net sales of our both our LeapPad and LeapTV platforms in Fiscal
2015 were below our expectations, resulting in higher than anticipated inventory levels of the products at fiscal year-end and
substantial operating losses, results that significantly underperformed our expectations.
To remain competitive and stimulate consumer demand, we must
continue to develop new products and services and successfully manage frequent product introductions and transitions.
Due to the highly volatile and competitive nature of the industries
in which we compete, we must continually introduce new products and services, enhance existing products and services, and effectively
stimulate customer demand for new and upgraded products. We cannot be sure that any new products or services will be widely accepted
and purchased by consumers or that we will be able to successfully manage product introductions and transitions. Failure by consumers
to accept our new products and services or to pay a higher price for some of our key products, or our failure to manage product
introductions and transitions, could adversely affect our operating results. For example, consumer demand and acceptance of our
LeapTV platform in Fiscal 2015 was below our expectations, resulting in higher than anticipated inventory levels of the product
at year end and contributing to our worse than anticipated financial results.
If inventory levels are too high, or if we do not maintain sufficient
inventory levels to deliver our products to our customers in sufficient quantities, or on a timely basis, or our operating results
will be adversely affected.
The high degree of seasonality of our business places stringent
demands on our product planning, inventory forecasting and production planning processes. This inventory management approach may
be particularly challenging when combined with “just-in-time” inventory management systems commonly used by retailers
to minimize their inventory levels. If we fail to meet tight shipping schedules, we could damage our relationships with retailers,
increase our shipping costs or cause sales opportunities to be delayed or lost. In order to be able to deliver our merchandise
on a timely basis, we need to maintain adequate inventory levels of the desired products. This requires us to begin to place orders
for components up to a year in advance, and we produce a significant amount of product months in advance, of the holiday season.
At the time these orders are being placed and product is being produced, we generally do not have firm orders from retailers or
a complete understanding of what the consumer demand for those products will be in the holiday season. If our product planning,
inventory forecasting and production planning processes result in our manufacturing inventory in excess of the levels demanded
by our customers, we could be required to record inventory write-downs for excess and obsolete inventory, which would adversely
affect our operating results. In addition, if our processes result in our inventory levels being too low to meet customer demand,
or if we fail to meet tight shipping deadlines, we may lose sales or increase our shipping costs, which would adversely affect
our operating results.
We rely on a small group of retailers that together accounted
for the majority of our annual gross sales such that economic or other difficulties that affect these retailers or changes in their
purchasing or related decisions could have a significant impact on our business and operating results.
Our top four retailers, Wal-Mart Stores, Inc. (“Wal-Mart”),
Toys “R” Us, Inc. (“Toys “R” Us”), Target Corporation (“Target”) and Amazon.com
(“Amazon”), in the aggregate, accounted for approximately 60% and 72% of our consolidated gross sales for the nine
months ended December 31, 2015 and 2014, respectively. These top four retailers, in the aggregate, accounted for approximately
63% and 83% of the U.S. segment’s gross sales for the nine months ended December 31, 2015 and 2014, respectively. In addition,
these top four retailers, in the aggregate, accounted for approximately 55% and 49% of the International segment’s gross
sales for the nine months ended December 31, 2015 and 2014, respectively. For the foreseeable future, we expect to continue to
rely on a small number of large retailers for the majority of our sales domestically and abroad.
We do not have long-term agreements with any of our retailers and
retailers make all purchases by delivering one-time purchase orders. As a result, pricing, shelf space, cooperative advertising
or special promotions, among other things, with each retailer are subject to periodic negotiation and alteration. In addition,
Wal-Mart and Target have from time to time reduced the shelf space allocated to the electronic learning aids aisle within the toy
department, which is where our multimedia platforms are merchandized and which may negatively impact our sales at these retailers.
In addition, we rely on our retail customers to successfully sell
our products to consumers. Economic and other factors that adversely affect retailers, such as increased competition from online
retailers, store closures, consolidation in the retail sector, bankruptcies and liquidity problems may adversely affect us. For
example, the bankruptcy of Target Canada in 2014 resulted in bad debt expense of approximately $0.4 million. If any of these retailers
reduce their purchases from us, reduce our shelf space at retail, materially change the terms on which we conduct business with
them or experience a downturn in their business for any reason, our business and operating results could be adversely affected.
If global economic conditions deteriorate, our business and financial
results could be affected.
We develop and distribute educational entertainment for children.
Our performance can be materially impacted by the overall level of discretionary consumer spending. Consumers’ discretionary
purchases of educational entertainment items for children may be impacted by unemployment, foreclosures, bankruptcies, reduced
access to credit, interest rates, stagnant or declining wages, and other macroeconomic factors that affect consumer spending behavior.
The current economic recovery in the U.S. may not be sustainable or may not be sufficiently broad-based to increase the spending
throughout our consumer base. If these or other matters led to a deterioration of global economic conditions, it could potentially
have a material adverse effect on our business and operating results.
If our marketing and advertising efforts fail to resonate with
our customers, our business and operating results could be adversely affected.
Our products are marketed through a diverse spectrum of advertising
and promotional programs. Our ability to sell our products and services is dependent in part upon the success of these programs.
Additionally, given the importance of sales during the year-end holiday season, our marketing efforts tend to be concentrated in
the quarter ending December 31. With this concentration, it can be more difficult to accurately assess the effectiveness of the
advertising and make any necessary adjustments before the end of the December quarter. If the marketing for our products and services
fails to resonate with consumers, particularly during the critical holiday season or during other key selling periods, or if we
are unable to accurately assess the effectiveness of our advertising and make necessary adjustments, our business and operating
results could be materially affected.
If we are unable to compete effectively with existing or new
competitors, our sales and market share could decline.
We currently compete in the learning toy and electronic learning-aids
categories of the U.S. and international toy market, with makers of children’s tablets and, to an increasing extent, with
general purpose tablets, eBook readers, mobile devices and gaming platforms. Each of these markets is very competitive and we expect
competition to increase in the future. The increasing choices for children’s educational entertainment can make it difficult
for us to differentiate our products from our competition, causing consumers to select a competitor’s products.
Our LeapPad products face increasing competition from several tablets
designed for children and from general-purpose tablets made by major electronics manufacturers. This means that we compete, to
an increasing extent, with much larger makers of tablets such as Apple, Samsung and Amazon, as well as more traditional learning
toy companies such as VTech, Mattel and Hasbro. Our digital content faces increasing competition from producers of low cost digital
content for kids made for general purpose tablets and smart phones. This may adversely impact the prices we charge for content
for our proprietary platforms and sales of such content, as well as our ability to charge a premium for any content we offer for
Android and iOS tablets. We focus heavily on the educational aspect of our content, ensuring that each piece of content is based
on age-appropriate educational curricula. In contrast, many of our competitors seek to compete primarily through aggressive pricing.
We also face the challenge of competitors introducing similar products or functionality soon after we introduce our new products
or product lines, and these competitors may be able to offer their products at lower prices using cheaper manufacturing processes
or materials, more limited functionality, or reduced safety features.
Many of our competitors are significantly larger and have substantially
greater financial, technical and marketing resources than we do. If we are is unable to compete effectively or successfully differentiate
our products from the competition, our business and operating results could be adversely affected.
If the merger with VTech is not completed on a timely basis,
or at all, the Company’s ongoing businesses may be adversely affected
On February 5, 2016, the Company entered into an Agreement and Plan
of Merger (the “Merger Agreement”) with VTech Holdings Limited, an exempted company incorporated in Bermuda with limited
liability (“VTech”), and Bonita Merger Sub, L.L.C., a Delaware limited liability company and a wholly owned subsidiary
of VTech (“Acquisition Sub”). Pursuant to the Merger Agreement, and upon the terms and subject to the conditions described
therein, Acquisition Sub has agreed to commence a tender offer to purchase the outstanding shares of Class A common stock of the
Company and the outstanding shares of Class B common stock of the Company, at a purchase price per Share of US $1.00. The completion
of the merger is subject to a number of conditions which make the completion and timing of the completion of the merger uncertain,
including, among other things, the tender of the required percentage of shares under Delaware law, the completion of the second-step
merger, and any necessary governmental approvals, the Net Cash Balance (as defined in the Merger Agreement) of the Company being
at least $25 million as of March 31, 2016 or, if earlier, the business day immediately prior to the first time at which the Acquisition
Sub accepts for payment any Shares tendered pursuant to the Offer, and other customary conditions. Also, either the Company or
VTech may terminate the merger agreement if the merger has not been completed by ____, 2016. If the merger is not completed on
a timely basis, or at all, the Company’s ongoing businesses may be adversely affected and, without realizing any of the benefits
of having completed the merger, the Company will be subject to a number of risks, including the following:
| • | the Company will be required to pay its costs relating to the merger, such as legal, accounting, financial and advisory fees,
whether or not the merger is completed; |
| • | time and resources committed the Company’s management to matters relating to the merger could otherwise have been devoted
to pursuing other beneficial opportunities; |
| • | the market price of the Company’s Class A common stock could decline to the extent that the current market price reflects
a market assumption that the merger will be completed; |
| • | the Company could be subject to litigation related to the
merger or to any failure to complete the merger; and |
| • | the Company may be required, in certain circumstances,
to pay a termination fee of _______ million to VTech. |
Our business is dependent on our ability to attract and retain
highly skilled personnel, including senior management, and a recent reduction in force may impede our ability to do so.
Our business depends on our ability to attract and retain highly
skilled personnel in key functions, including senior management. We compete with many other potential employers in recruiting,
hiring and retaining skilled officers and other key employees. We implemented reductions in our workforce in February, October
and December of 2015 to align our employee base and cost structure with our current and anticipated revenues and we have recently
experienced greater turnover in our employee base. These reductions and turnover will result in reallocations of duties and
may increase uncertainty and discontent among our employees, resulting in unintended attrition or performance issues. In
addition, the Merger Agreement with VTech may also increase uncertainty among our employees, resulting in unintended attrition
or performance issues. High levels of turnover may also impact our ability to execute against our business initiatives and
make it more difficult for us to attract and recruit highly skilled employees. There is no guarantee that we will be able to recruit,
hire or retain the senior management, officers and other employees we need to succeed and the reductions in force could make it
more difficult to do so.
If we are unable to maintain or acquire
licenses to include intellectual property owned by others in our products, our operating results could suffer.
Among our proprietary rights are inbound licenses from third parties
for content such as characters, stories, music, illustrations and trade names, and for technologies we incorporate in our products,
including key technology used in our LeapReader reading systems. In particular, we rely on our ability to acquire rights to popular
entertainment media properties for content on our multimedia learning platforms. Ownership of highly popular children’s properties
has become increasingly consolidated with two large entertainment companies: Disney and Viacom. Our continued use of these rights
is dependent on our ability to continue to obtain these license rights and at reasonable rates. Any failure to do so could significantly
impact our content sales or interrupt our supply chain and require us to modify our products or business plans.
If we were required to record an additional impairment charge
related to the value of our long-lived assets, or an additional valuation allowance against our deferred tax assets, our results
of operations would be adversely affected.
Our long-lived assets are tested for impairment if indicators of
impairment exist. If impairment testing shows that the carrying value of our long-lived assets exceeds their estimated fair values,
we would be required to record a non-cash impairment charge, which would decrease the carrying value of our long-lived assets,
and adversely affect our results of operations. For example, for the fiscal year ended March 31, 2015 and nine months ended December
31, 2015, respectively, we recorded a $36.5 million and $5.0 million long-lived assets impairment charge against our property and
equipment. We will continue to review the recoverability of our remaining long-lived assets on a quarterly basis, which may result
in additional impairment charges in future periods. Our deferred tax assets include net operating loss and tax credit carryforwards
that can be used to offset taxable income and reduce income taxes payable in future periods. Each quarter, we determine the
probability of realizing the benefits of our deferred tax assets. If we determine that there is not sufficient anticipated future
taxable income to realize the benefits of these assets, an additional valuation allowance would be required to reduce the value
of our deferred tax assets. Such a reduction could result in additional non-cash expense in the period in which the valuation allowance
is adjusted and our results of operations would be adversely affected. For example, for the year ended March 31, 2015, we recorded
a $90.8 million income tax provision as a result of establishing an additional valuation allowance against our domestic deferred
tax assets. We will continue to perform these tests and any future adjustments may have a material adverse effect on our financial
condition and results of operations.
Our business is highly seasonal, and our annual operating results
depend, in large part, on sales relating to the brief holiday season.
Sales of consumer electronics and toy products in the
retail channel are highly seasonal, causing a substantial majority of our sales to retailers to occur during the quarters
ending September 30 and December 31. Approximately 76% and 73% of our total net sales occurred during the nine months ended
December 31 of years ended March 31, 2015 and 2014, respectively; and approximately 70% and 75% of our total net sales
occurred during the second half of the years ended December 31, 2013 and 2012, respectively. A decline of net sales, in the
quarter ending September 30 or December 31 in particular, such as the ones we experienced in Fiscal 2016, will have a
disproportionate negative impact on our results for the year and can lead to ongoing weakness in sales to retailers well into
the following year. Therefore, we may be significantly and adversely affected, in a manner disproportionate to the impact on
a company with sales spread more evenly throughout the year, by unforeseen events such as economic crises, strikes,
earthquakes, terrorist attacks or other catastrophic events that harm the retail environment or consumer buying patterns
during our key selling season.
Significant increases in the cost of our components and raw materials
or an inability to obtain these in sufficient quantities from our suppliers or alternative sources could negatively impact our
financial results.
Because some of the components used to make our products currently
come from a single or a limited number of suppliers, we are subject to significant supply and pricing risks. Many components that
are available from multiple sources are at times subject to industry-wide shortages and significant commodity pricing fluctuations.
If our suppliers are unable to meet our demand for components or raw materials and we are unable to obtain an alternative source
or if the price available from our current suppliers or an alternative source is prohibitive, our ability to maintain timely and
cost-effective production of our products would be seriously harmed and our operating results would suffer.
In addition, as we do not have long-term agreements with our major
suppliers and cannot guarantee their stability, they may stop manufacturing our components at any time with little or no notice.
If we are required to use alternative sources, we may be required to redesign some aspects of the affected products, which may
involve delays and additional expense. If there are any significant interruptions in the supply of components or if prices rise
significantly, we may be unable to manufacture sufficient quantities of our finished products or we may be unable to manufacture
them at targeted cost levels, and our business and operating results could be harmed.
Our reliance on a limited number of third-party manufacturers
to produce the majority of our products presents risks to our business.
We outsource substantially all of our manufacturing to a limited
number of Asian manufacturers, most of which manufacture our products at facilities in the Guangdong province in the southeastern
region of China. We depend on these manufacturers to produce sufficient volumes of our finished products in a timely fashion, at
satisfactory cost and quality levels, and in accordance with our and our customers’ terms of engagement. If we determine
that we need to order larger quantities of our products to meet customer demand, we may encounter delays and shortfalls in shipments
based on manufacturer capacity issues. Economic and other factors that adversely affect these manufacturers may also adversely
affect us. For example, labor costs in China continue to increase due to a variety of factors, including tightening Chinese labor
markets, leading to increased prices for us with some of our contract manufacturers. Furthermore, in the past, there have been
product quality and safety issues for other producers of toys and other companies that manufacture goods in China. If our manufacturers
fail or are unable to produce quality finished products on time, at expected cost targets and in sufficient quantities, or if any
of our products are found to be tainted or otherwise raise health or safety concerns, our reputation and operating results would
suffer.
System failures in our digital services could harm our business.
The digital aspects of our business have grown substantially in
strategic importance to our overall business. Any failure to provide a positive user experience in these services could have a
negative impact on our reputation, sales and consumer relationships. In addition, we rely on third parties for certain critical
aspects of the online user experience, such as payment processing and secure handling of credit card and other confidential information.
If consumer demand for accessing our App Center or our website exceeds the capacity we have planned to handle during peak periods
or if other technical issues arise, then we could lose sales and customers could be inconvenienced or become dissatisfied with
our products. Any significant disruption to or cyber-attack on our App Center, website, internal computer systems, or those of
our third-party service providers, or malfunctions related to transaction processing on our content management systems, could result
in a loss of potential or existing customers and sales.
Although our systems have been designed to reduce downtime in the
event of outages or catastrophic occurrences, they remain vulnerable to damage or interruption from earthquakes, floods, fires,
power loss, telecommunication failures, terrorist attacks, computer viruses, computer denial-of-service attacks, and similar events.
Many of our systems are not fully redundant, and our disaster recovery planning is not sufficient for all eventualities. Our systems
are also subject to break-ins, sabotage, and intentional acts of vandalism. The occurrence of an earthquake, or other natural disaster
or unanticipated problem at our hosting facilities, including those located in California, could result in lengthy interruptions
in our services. We do not carry business interruption insurance sufficient to compensate us for losses that may result from interruptions
in our service as a result of system failures. Any unplanned disruption of our systems could result in adverse financial impact
to our operations.
We may not succeed in protecting or enforcing our intellectual
property rights and third parties may claim that we are infringing their intellectual property rights.
We rely on a combination of patents, copyrights, trademarks, service
trademarks, trade secrets, confidentiality provisions and licensing arrangements to establish and protect our intellectual property
and proprietary rights. The steps we have taken may not prevent unauthorized use of our intellectual property, particularly in
foreign countries where we do not hold patents or trademarks or where the laws may not protect our intellectual property as fully
as in the U.S. Some of our products and product features have limited intellectual property protection, and, as a consequence,
we may not have the legal right to prevent others from copying and using these features in competitive products. In addition, monitoring
the unauthorized use of our intellectual property is costly, and any dispute or other litigation, regardless of outcome, may be
costly and time-consuming and may divert our management and key personnel from our business operations. However, if we fail to
protect or to enforce our intellectual property rights successfully, our rights could be diminished and our competitive position
could suffer, which could harm our operating results.
In addition, we periodically receive claims of infringement or otherwise
become aware of potentially relevant patents, copyrights, trademarks or other intellectual property rights held by other parties.
Responding to any infringement claim, regardless of its validity, may be costly and time-consuming and may divert our management
and key personnel from our business operations. If we, our distributors, our licensors or our manufacturers are found to be infringing
on the intellectual property rights of any third party, we or they may be required to obtain a license to use those rights, which
may not be obtainable on reasonable terms, if at all. We also may be subject to significant damages or injunctions against the
development and sale of some of our products or against the use of a trademark or copyright in the sale of some of our products.
Our insurance does not cover all types of intellectual property claims and insurance levels for covered claims may not be adequate
to indemnify us against all liability, which could harm our operating results.
Any defects contained in our products, or our failure to comply
with applicable safety standards, could result in recalls, delayed shipments, rejection of our products, product liability and
damage to our reputation, and could expose us to litigation or regulatory action.
Our products may contain defects, which could lead to product liability,
personal injury or property damage claims, or could result in the rejection of our products by retailers, damage to our reputation,
lost sales, and increased customer service and support costs and warranty claims. There is a risk that these claims or liabilities
may exceed, or fall outside the scope of, our insurance coverage. Moreover, we may be unable to retain adequate liability insurance
in the future. Concerns about potential public harm and liability may involve involuntary recalls or lead us to voluntarily recall
selected products. Recalls or post-manufacture repairs of our products could harm our reputation and our competitive position,
increase our costs or reduce our net sales. In addition, recalls or post-manufacturing repairs by other companies in our industry
could affect consumer behavior and cause reduced purchases of our products. Any such problems, or perceived problems, with our
products could harm our operating results.
We face risks associated with international operations.
We derived approximately 30% and 32% of our net sales from markets
outside the U.S. during the nine months ended December 31, 2015 and 2014, respectively.
Our business is subject to additional risks associated with conducting
business internationally, including:
| · | the appeal of our products in international markets; |
| · | difficulties managing and maintaining relationships with vendors, customers, retailers, distributors and other commercial partners; |
| · | increased investment and operational complexity to make our multimedia platforms and App Center compatible with the systems
in various countries and compliant with local laws; |
| · | greater difficulty in staffing and managing foreign operations; |
| · | transportation delays and interruptions, including cross-border delays due to customs clearance and other point-of-entry restrictions; |
| · | timely localization of products and content; |
| · | currency conversion risks and currency fluctuations; and |
| · | limitations, including taxes, on the repatriation of earnings |
Our efforts to increase sales for our products outside the U.S.
may not be successful and may not achieve higher sales or gross margins or contribute to profitability. Expansion plans will require
significant management attention and resources and may be unsuccessful. We may have to compete with established local or regional
companies which understand the local market better than we do. This expansion increases the complexity of our business and places
strain on our management, personnel, operations, systems, technical performance, financial resources, and internal financial control
and reporting functions. Any difficulties with our international operations could harm our future sales and operating results.
In addition, we may not be able to manage international growth effectively, which could damage our reputation, limit our growth
and negatively affect our operating results.
We are subject to international, federal, state and local laws
and regulations, including those related to privacy, which could impose additional costs or changes on the conduct of our business.
We operate in a highly regulated environment with international,
federal, state and local governmental entities regulating many aspects of our business. Regulations with which we must comply include
accounting standards, taxation requirements (including income tax rates, tariff and import duties, new tax laws and revised tax
law interpretations), regulations regarding financial matters, environmental regulations, privacy regulations, regulations regarding
advertising directed toward children, safety and other administrative and regulatory restrictions. Our international business requires
compliance with the Foreign Corrupt Practices Act, the UK Bribery Act and similar laws. We are also subject to regulation by the
U.S. Consumer Product Safety Commission and other similar federal, state and international regulatory authorities, some of which
have conflicting standards and requirements. In addition, numerous states have enacted, and many others are considering enacting,
laws directed at manufacturers regarding recycling of electronic products and the disclosure of the chemical composition of consumer
products, including toys. Compliance with the various laws and regulations and other requirements of regulatory authorities imposes
significant costs on the conduct of our business.
Changes to privacy regulations in the U.S. or Europe could have
a significant impact on our business, as a growing percentage of our sales come from our digital multimedia learning platforms
and related content. As we focus on digital products and direct marketing to consumers through the Internet, regulatory changes
regarding the collection, use, disclosure, or security of personal information or other privacy-related matters, could negatively
affect our business. Furthermore, consumer concerns regarding such matters, even if unfounded, could damage our reputation and
operating results.
While we take steps that we believe are necessary to comply with
these laws and regulations, there can be no assurance that we have achieved compliance or that we will be in compliance in the
future. Failure to comply with the relevant regulations could result in monetary liabilities and other sanctions, and could lead
to significant negative media attention and consumer dissatisfaction, either of which could have a negative impact on our business,
financial condition and results of operations. In addition, changes in laws or regulations may lead to increased costs, changes
in our effective tax rate, or the interruption of normal business operations that would negatively impact our financial condition
and results of operations.
Political developments, changes in trade relations, the threat
or occurrence of armed hostilities, terrorism, labor strikes, natural disasters or public health issues could have a material adverse
effect on our business.
Our business is international in scope. The deterioration of the
political or socioeconomic situation in a country in which we have significant sales, operations or third-party manufacturers or
suppliers, or the breakdown of trade relations between the U.S. and a foreign country in which we have or utilize significant manufacturing
facilities or have other operations, could adversely affect our business, financial condition, and results of operations. For example,
a change in trade status for China, where the vast majority of our contract manufacturers are located, could result in a substantial
increase in the import duty of toys manufactured in China and imported into the U.S. In addition, armed hostilities, terrorism,
natural disasters, or public health issues, whether in the U.S. or abroad, could cause damage and disruption to our company, our
suppliers, our manufacturers, or our customers or could create political or economic instability, any of which could have a material
adverse impact on our business. For example, our U.S. distribution center and our corporate headquarters are located in California
near major earthquake faults that have experienced earthquakes in the past and that are expected to recur in the future. See also
“System failures in our online services or web store could harm our business” above. Although it is impossible
to predict the consequences of any such events, they could result in a decrease in demand for our product or create delay or inefficiencies
in our supply chain by making it difficult or impossible for us to deliver products to our customers, for our manufacturers to
deliver products to us, or for suppliers to provide component parts.
Failure to successfully implement new strategic
operating initiatives could have a significant adverse effect on our business, financial condition and results of operations.
We continually evaluate the opportunity to improve our business
processes in a variety of ways. For example, in the recent past, we have undertaken initiatives to change our fiscal year, update
our enterprise resource planning system, reduce our costs, increase our efficiency, enhance product safety, and simplify processes. These
initiatives involve investment of capital and complex decision-making as well as extensive and intensive execution, and the success
of these initiatives is not assured. Failure to successfully implement any of these initiatives, or the failure of any of these
initiatives to produce the results anticipated by management, could have a significant adverse effect on our business, financial
condition, and results of operations.
We may engage in acquisitions, mergers, or dispositions, which
may affect our financial results.
We may engage in acquisitions, mergers or dispositions, which may
affect the profit, revenues, profit margins, debt-to-capital ratio, capital expenditures, or other aspects of our business. There
can be no assurance that we will be able to identify suitable acquisition targets or merger partners or that, if identified, we
will be able to acquire these targets on terms acceptable to us and to potential merger partners. There can also be no assurance
that we will be successful in integrating any acquired company into our overall operations, or that any such acquired company will
operate profitably or will not otherwise adversely impact our results of operations. Further, we cannot be certain that key talented
individuals at those acquired companies will continue to work for us after the acquisition or that they will continue to develop
popular and profitable products or services.
Failure to regain compliance with New York Stock Exchange (“NYSE”)
listing requirements could cause the NYSE to delist our stock, which is likely to have an adverse impact on the trading volume,
liquidity and the market price of our stock.
Our Class A common stock is currently listed on the New York Stock
Exchange (“NYSE”). In order to maintain this listing we must comply with the continued listing standards set forth
in Section 802.01 of the NYSE Listed Company Manual, which require that we maintain a certain stock price in addition to certain
other financial and share distribution targets.
On September 4, 2015, we received a written notice from the NYSE
stating that we were not in compliance with one of the continued listing standards based on the average closing price of our Class
A common stock being less than $1.00 per share over a period of 30 consecutive trading days. In accordance with NYSE rules, we
have nine months from the date of receipt of such notice to achieve compliance with this continued listing standard. We can regain
compliance with the minimum per share average closing price standard at any time during the six-month cure period if, on the last
trading day of any calendar month during the cure period, we have (i) a closing ordinary share price of at least $1.00 and (ii)
an average closing ordinary share price of at least $1.00 over the 30 trading-day period ending on the last trading day of that
month. While we cannot give assurances that we will be able to timely regain compliance with this standard, we responded to the
NYSE on September 10, 2015 that we intend to cure this non-compliance. If we determine to remedy the non-compliance by taking action
that will require shareholder approval, such as a reverse share split, we must notify the NYSE no later than expiration of the
six month cure period, or March 4, 2016 that we intend to implement such action.
Our stock price has been subject to volatility.
Our stock has and may continue to experience substantial price volatility.
Our future success depends partly on the continued contribution of our key executives and technical, sales, marketing, manufacturing
and administrative personnel. Part of our compensation package is equity based. To the extent our stock performs poorly, it may
adversely affect our ability to retain or attract key employees, potentially resulting in lost institutional knowledge and key
talent. In addition, a significant drop in the price of our stock could expose us to the risk of securities class action lawsuits,
which could result in substantial costs and divert management’s attention and resources. For example, the Company is currently
defending itself against a securities class action lawsuit and has been named as a nominal defendant in a related stockholder derivative
lawsuit. Continued stock price volatility could harm our ability to attract and retain sufficient qualified personnel by reducing
the value of our equity compensation and could subject us to additional litigation.
ITEM 6. EXHIBITS
|
|
|
|
Incorporated by Reference |
|
|
Exhibit
Number |
|
Exhibit Description |
|
Form |
|
File No. |
|
Original
Exhibit
Number |
|
Filing Date |
|
Filed
Herewith |
3.01 |
|
Amended and Restated Certificate of Incorporation |
|
S-1/A |
|
333-86898 |
|
3.03 |
|
7/22/2002 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.02 |
|
Amended and Restated Bylaws |
|
8-K |
|
001-31396 |
|
3.01 |
|
11/20/2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.01 |
|
Form of Specimen Class A Common Stock Certificate |
|
10-Q |
|
001-31396 |
|
4.01 |
|
11/3/2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.02 |
|
Fourth Amended and Restated Stockholders Agreement, dated as of May 30, 2003, by and among LeapFrog Enterprises, Inc. and the other persons named therein |
|
10-Q |
|
001-31396 |
|
4.02 |
|
8/12/2003 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.01 |
|
Agreement and Plan of Merger, dated as of February 5, 2016, among LeapFrog Enterprises, Inc., VTech Holdings Limited and Bonita Merger Sub, L.L.C. |
|
8-K |
|
001-31396 |
|
10.1 |
|
2/5/2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31.01 |
|
Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|
|
|
|
|
|
|
|
|
X |
|
|
|
|
|
|
|
|
|
|
|
|
|
31.02 |
|
Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|
|
|
|
|
|
|
|
|
X |
|
|
|
|
|
|
|
|
|
|
|
|
|
32.01 |
|
Certification of the Chief Executive Officer and the Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|
|
|
|
|
|
|
|
|
X |
|
|
|
|
|
|
|
|
|
|
|
|
|
101 |
|
The following materials from the registrant’s Quarterly Report on Form 10-Q for the quarter
ended December 31, 2015, formatted in Extensible Business Reporting Language (XBRL), include: (i) the Consolidated Balance
Sheets, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Comprehensive Loss, (iv) the
Consolidated Statements of Cash Flows, and (v) Notes to the Consolidated Financial Statements |
|
|
|
|
|
|
|
|
|
X |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
LeapFrog Enterprises, Inc. |
|
(Registrant) |
|
|
|
/s/ John Barbour |
|
John Barbour |
|
Chief Executive Officer |
|
(Principal Executive Officer) |
|
|
|
Date: February 9, 2016 |
|
|
|
/s/ Raymond L. Arthur |
|
Raymond L. Arthur |
|
Chief Financial Officer |
|
(Principal Financial Officer and Principal Accounting Officer) |
|
|
|
Date: February 9, 2016 |
|
Exhibit 31.01
CERTIFICATION
I, John Barbour, certify that:
1. |
I have reviewed this Quarterly Report on Form 10-Q of LeapFrog Enterprises, Inc.; |
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. |
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
|
a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
|
b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
|
c) |
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
|
d) |
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. |
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
|
a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
|
b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: February 9, 2016 |
/s/ John Barbour |
|
John Barbour |
|
Chief Executive Officer |
Exhibit 31.02
CERTIFICATION
I, Raymond L. Arthur, certify that:
1. |
I have reviewed this Quarterly Report on Form 10-Q of LeapFrog Enterprises, Inc.; |
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. |
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
|
a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
|
b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
|
c) |
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
|
d) |
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. |
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
|
a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
|
b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: February 9, 2016 |
/s/ Raymond L. Arthur |
|
Raymond L. Arthur |
|
Chief Financial Officer |
Exhibit 32.01
Certifications of Chief Executive Officer
and Chief Financial Officer
Pursuant to 18 U.S.C. Section 1350
Pursuant to the requirements set forth in Rule 13a-14(b) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), and 18 U.S.C. Section 1350, as adopted pursuant
to Section 906 of the Sarbanes-Oxley Act of 2002, John Barbour, the Chief Executive Officer of LeapFrog Enterprises, Inc.
(the “Company”), and Raymond L. Arthur, the Chief Financial Officer of the Company, each hereby certifies as of the
date hereof and solely for purposes of Title 18, Chapter 63, Section 1350 of the United States Code that, to the best of his knowledge:
1. |
The Company’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2015, to which this Certification is attached as Exhibit 32.01 (the “Quarterly Report”), fully complies with the requirements of Section 13(a) or Section 15(d) of the Exchange Act, as applicable; and |
2. |
The information contained in the Quarterly Report fairly presents, in all material respects, the financial condition of the Company at the end of the period covered by the Quarterly Report and results of operations of the Company for the periods covered in the financial statements in the Quarterly Report. |
Dated: February 9, 2016
/s/ John Barbour |
|
/s/ Raymond L. Arthur |
John Barbour |
|
Raymond L. Arthur |
Chief Executive Officer |
|
Chief Financial Officer |
Note: |
This certification accompanies the Quarterly Report pursuant to 18 U.S.C. Section 1350 and shall not be deemed “filed” by the Company for purposes of Section 18 of the Exchange Act, or incorporated by reference into any filing of the Company under the Exchange Act or the Securities Act of 1933, as amended, whether made before or after the date hereof and irrespective of any general incorporation language contained in such filing. |
v3.3.1.900
X |
- DefinitionIf the value is true, then the document is an amendment to previously-filed/accepted document.
+ References
+ Details
Name: |
dei_AmendmentFlag |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionEnd date of current fiscal year in the format --MM-DD.
+ References
+ Details
Name: |
dei_CurrentFiscalYearEndDate |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:gMonthDayItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThis is focus fiscal period of the document report. For a first quarter 2006 quarterly report, which may also provide financial information from prior periods, the first fiscal quarter should be given as the fiscal period focus. Values: FY, Q1, Q2, Q3, Q4, H1, H2, M9, T1, T2, T3, M8, CY.
+ References
+ Details
Name: |
dei_DocumentFiscalPeriodFocus |
Namespace Prefix: |
dei_ |
Data Type: |
dei:fiscalPeriodItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThis is focus fiscal year of the document report in CCYY format. For a 2006 annual report, which may also provide financial information from prior periods, fiscal 2006 should be given as the fiscal year focus. Example: 2006.
+ References
+ Details
Name: |
dei_DocumentFiscalYearFocus |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:gYearItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe end date of the period reflected on the cover page if a periodic report. For all other reports and registration statements containing historical data, it is the date up through which that historical data is presented. If there is no historical data in the report, use the filing date. The format of the date is CCYY-MM-DD.
+ References
+ Details
Name: |
dei_DocumentPeriodEndDate |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:dateItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe type of document being provided (such as 10-K, 10-Q, 485BPOS, etc). The document type is limited to the same value as the supporting SEC submission type, or the word "Other".
+ References
+ Details
Name: |
dei_DocumentType |
Namespace Prefix: |
dei_ |
Data Type: |
dei:submissionTypeItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionA unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation 12B -Number 240 -Section 12b -Subsection 1
+ Details
Name: |
dei_EntityCentralIndexKey |
Namespace Prefix: |
dei_ |
Data Type: |
dei:centralIndexKeyItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionIndicate number of shares or other units outstanding of each of registrant's classes of capital or common stock or other ownership interests, if and as stated on cover of related periodic report. Where multiple classes or units exist define each class/interest by adding class of stock items such as Common Class A [Member], Common Class B [Member] or Partnership Interest [Member] onto the Instrument [Domain] of the Entity Listings, Instrument.
+ References
+ Details
Name: |
dei_EntityCommonStockSharesOutstanding |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:sharesItemType |
Balance Type: |
na |
Period Type: |
instant |
|
X |
- DefinitionIndicate whether the registrant is one of the following: (1) Large Accelerated Filer, (2) Accelerated Filer, (3) Non-accelerated Filer, (4) Smaller Reporting Company (Non-accelerated) or (5) Smaller Reporting Accelerated Filer. Definitions of these categories are stated in Rule 12b-2 of the Exchange Act. This information should be based on the registrant's current or most recent filing containing the related disclosure.
+ References
+ Details
Name: |
dei_EntityFilerCategory |
Namespace Prefix: |
dei_ |
Data Type: |
dei:filerCategoryItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation 12B -Number 240 -Section 12b -Subsection 1
+ Details
Name: |
dei_EntityRegistrantName |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionTrading symbol of an instrument as listed on an exchange.
+ References
+ Details
Name: |
dei_TradingSymbol |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- Details
Name: |
us-gaap_StatementClassOfStockAxis=us-gaap_CommonClassAMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
us-gaap_StatementClassOfStockAxis=us-gaap_CommonClassBMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
v3.3.1.900
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands |
Dec. 31, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Current assets: |
|
|
|
Cash and cash equivalents |
$ 52,846
|
$ 127,176
|
$ 94,020
|
Accounts receivable, net of allowances for doubtful accounts of $1,492, $818 and $854, respectively |
63,200
|
19,618
|
100,810
|
Inventories |
38,526
|
71,927
|
77,796
|
Prepaid expenses and other current assets |
8,837
|
10,012
|
10,449
|
Deferred income taxes |
450
|
553
|
661
|
Total current assets |
163,859
|
229,286
|
283,736
|
Deferred income taxes |
683
|
1,792
|
1,498
|
Property and equipment, net |
429
|
1,676
|
38,191
|
Capitalized content costs, net |
17,470
|
22,510
|
23,191
|
Other intangible assets, net |
2,326
|
3,453
|
3,836
|
Other assets |
700
|
1,475
|
1,337
|
Total assets |
185,467
|
260,192
|
351,789
|
Current liabilities: |
|
|
|
Accounts payable |
16,412
|
16,578
|
23,440
|
Accrued liabilities |
28,897
|
21,582
|
32,137
|
Deferred revenue |
11,631
|
11,921
|
12,526
|
Short-term borrowings |
20,000
|
0
|
0
|
Deferred income taxes |
530
|
1,630
|
1,290
|
Income taxes payable |
269
|
267
|
431
|
Total current liabilities |
77,739
|
51,978
|
69,824
|
Long-term deferred income taxes |
452
|
323
|
0
|
Other long-term liabilities |
823
|
1,365
|
198
|
Total liabilities |
$ 79,014
|
$ 53,666
|
$ 70,022
|
Commitments and contingencies |
|
|
|
Stockholders' equity: |
|
|
|
Treasury stock |
$ (185)
|
$ (185)
|
$ (185)
|
Additional paid-in capital |
441,860
|
434,728
|
431,806
|
Accumulated other comprehensive loss |
(7,039)
|
(5,450)
|
(3,453)
|
Accumulated deficit |
(328,190)
|
(222,574)
|
(146,408)
|
Total stockholders’ equity |
106,453
|
206,526
|
281,767
|
Total liabilities and stockholders’ equity |
185,467
|
260,192
|
351,789
|
Common Class A [Member] |
|
|
|
Stockholders' equity: |
|
|
|
Common Stock |
7
|
7
|
7
|
Common Class B [Member] |
|
|
|
Stockholders' equity: |
|
|
|
Common Stock |
$ 0
|
$ 0
|
$ 0
|
X |
- DefinitionThe capitalization of content development costs and website development costs, incurred after a project reaches technological feasibility; net of accumulated amortization.
+ References
+ Details
Name: |
lf_CapitalizedContentCostsNet |
Namespace Prefix: |
lf_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
instant |
|
X |
- DefinitionCarrying value as of the balance sheet date of liabilities incurred (and for which invoices have typically been received) and payable to vendors for goods and services received that are used in an entity's business. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer).
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19(a)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682
+ Details
Name: |
us-gaap_AccountsPayableCurrent |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
instant |
|
X |
- DefinitionAmount due from customers or clients, within one year of the balance sheet date (or the normal operating cycle, whichever is longer), for goods or services (including trade receivables) that have been delivered or sold in the normal course of business, reduced to the estimated net realizable fair value by an allowance established by the entity of the amount it deems uncertain of collection.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.3-4) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 3 -Subparagraph a(1) -Article 5
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 4 -Article 5
+ Details
Name: |
us-gaap_AccountsReceivableNetCurrent |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
instant |
|
X |
- DefinitionCarrying value as of the balance sheet date of obligations incurred and payable, pertaining to costs that are statutory in nature, are incurred on contractual obligations, or accumulate over time and for which invoices have not yet been received or will not be rendered. Examples include taxes, interest, rent and utilities. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer).
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.20) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682
+ Details
Name: |
us-gaap_AccruedLiabilitiesCurrent |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
instant |
|
X |
- DefinitionAccumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at period end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, other than temporary impairment (OTTI) losses related to factors other than credit losses on available-for-sale and held-to-maturity debt securities that an entity does not intend to sell and it is not more likely than not that the entity will be required to sell before recovery of the amortized cost basis, as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 220 -SubTopic 10 -Section 45 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=36458714&loc=d3e637-108580
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 220 -SubTopic 10 -Section 45 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=36458714&loc=d3e681-108580
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 220 -SubTopic 10 -Section 45 -Paragraph 14A -URI http://asc.fasb.org/extlink&oid=36458714&loc=SL7669686-108580
Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 31 -Article 5
Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3
+ Details
Name: |
us-gaap_AccumulatedOtherComprehensiveIncomeLossNetOfTax |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
instant |
|
X |
- DefinitionValue received from shareholders in common stock-related transactions that are in excess of par value or stated value and amounts received from other stock-related transactions. Includes only common stock transactions (excludes preferred stock transactions). May be called contributed capital, capital in excess of par, capital surplus, or paid-in capital.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.30(a)(1)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 31 -Article 5
+ Details
Name: |
us-gaap_AdditionalPaidInCapitalCommonStock |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
instant |
|
X |
- DefinitionSum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.18) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 12 -Article 7
+ Details
Name: |
us-gaap_Assets |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
instant |
|
X |
- DefinitionSum of the carrying amounts as of the balance sheet date of all assets that are expected to be realized in cash, sold, or consumed within one year (or the normal operating cycle, if longer). Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.9) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section 45 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=28358313&loc=d3e6801-107765
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section 45 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=28358313&loc=d3e6676-107765
+ Details
Name: |
us-gaap_AssetsCurrent |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
instant |
|
X |
- References
+ Details
Name: |
us-gaap_AssetsCurrentAbstract |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:stringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionAmount of currency on hand as well as demand deposits with banks or financial institutions. Includes other kinds of accounts that have the general characteristics of demand deposits. Also includes short-term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Excludes cash and cash equivalents within disposal group and discontinued operation.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Cash -URI http://asc.fasb.org/extlink&oid=6506951
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section 45 -Paragraph 1 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=28358313&loc=d3e6676-107765
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=56944662&loc=d3e3044-108585
Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Cash Equivalents -URI http://asc.fasb.org/extlink&oid=6507016
Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.1) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682
+ Details
Name: |
us-gaap_CashAndCashEquivalentsAtCarryingValue |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
instant |
|
X |
- DefinitionRepresents the caption on the face of the balance sheet to indicate that the entity has entered into (1) purchase or supply arrangements that will require expending a portion of its resources to meet the terms thereof, and (2) is exposed to potential losses or, less frequently, gains, arising from (a) possible claims against a company's resources due to future performance under contract terms, and (b) possible losses or likely gains from uncertainties that will ultimately be resolved when one or more future events that are deemed likely to occur do occur or fail to occur.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.7-03.(a),19) -URI http://asc.fasb.org/extlink&oid=6879938&loc=d3e572229-122910
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 450 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=25496072&loc=d3e14326-108349
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.9-03.17) -URI http://asc.fasb.org/extlink&oid=6876686&loc=d3e534808-122878
Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.25) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682
+ Details
Name: |
us-gaap_CommitmentsAndContingencies |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
instant |
|
X |
- DefinitionAggregate par or stated value of issued nonredeemable common stock (or common stock redeemable solely at the option of the issuer). This item includes treasury stock repurchased by the entity. Note: elements for number of nonredeemable common shares, par value and other disclosure concepts are in another section within stockholders' equity.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.29) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 30 -Article 5
+ Details
Name: |
us-gaap_CommonStockValue |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
instant |
|
X |
- DefinitionThe carrying amount of consideration received or receivable as of the balance sheet date on potential earnings that were not recognized as revenue in conformity with GAAP, and which are expected to be recognized as such within one year or the normal operating cycle, if longer, including sales, license fees, and royalties, but excluding interest income.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section 45 -Paragraph 8 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=28358313&loc=d3e6935-107765
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 605 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 13.A.4(a).Q1) -URI http://asc.fasb.org/extlink&oid=27012821&loc=d3e214044-122780
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 13 -Section A
+ Details
Name: |
us-gaap_DeferredRevenueCurrent |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
instant |
|
X |
- DefinitionAmount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards expected to be realized or consumed within one year or operating cycle, if longer.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 45 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=37586315&loc=d3e31917-109318
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 45 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=37586315&loc=d3e31931-109318
Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 45 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=37586315&loc=d3e31928-109318
Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 45 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=37586315&loc=d3e31958-109318
+ Details
Name: |
us-gaap_DeferredTaxAssetsNetCurrent |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
instant |
|
X |
- DefinitionAmount after allocation of valuation allowances of noncurrent deferred tax asset attributable to deductible temporary differences and carryforwards. Noncurrent assets are expected to be realized or consumed after one year (or the normal operating cycle, if longer).
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 45 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=37586315&loc=d3e31931-109318
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 45 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=37586315&loc=d3e31928-109318
Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 45 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=37586315&loc=d3e31958-109318
Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 45 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=37586315&loc=d3e31917-109318
+ Details
Name: |
us-gaap_DeferredTaxAssetsNetNoncurrent |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
instant |
|
X |
- DefinitionAmount, after deferred tax asset, of deferred tax liability attributable to taxable differences, netted by jurisdiction and classified as current.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32621-109319
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 45 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=37586315&loc=d3e31958-109318
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 45 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=37586315&loc=d3e31917-109318
Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 45 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=37586315&loc=d3e31931-109318
Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32632-109319
+ Details
Name: |
us-gaap_DeferredTaxLiabilitiesCurrent |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
instant |
|
X |
- DefinitionAmount, after deferred tax asset, of deferred tax liability attributable to taxable differences, netted by jurisdiction and classified as noncurrent.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 45 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=37586315&loc=d3e31931-109318
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 45 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=37586315&loc=d3e31958-109318
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 45 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=37586315&loc=d3e31917-109318
+ Details
Name: |
us-gaap_DeferredTaxLiabilitiesNoncurrent |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
instant |
|
X |
- DefinitionSum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 45 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6388964&loc=d3e16212-109274
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph ((a)(1),(b)) -URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16323-109275
+ Details
Name: |
us-gaap_IntangibleAssetsNetExcludingGoodwill |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
instant |
|
X |
- DefinitionAmount after valuation and LIFO reserves of inventory expected to be sold, or consumed within one year or operating cycle, if longer.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.6(a)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 330 -SubTopic 10 -Section 35 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=51655945&loc=d3e3927-108312
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section 45 -Paragraph 1 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=28358313&loc=d3e6676-107765
+ Details
Name: |
us-gaap_InventoryNet |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
instant |
|
X |
- DefinitionSum of the carrying amounts as of the balance sheet date of all liabilities that are recognized. Liabilities are probable future sacrifices of economic benefits arising from present obligations of an entity to transfer assets or provide services to other entities in the future.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19-26) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682
+ Details
Name: |
us-gaap_Liabilities |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
instant |
|
X |
- DefinitionAmount of liabilities and equity items, including the portion of equity attributable to noncontrolling interests, if any.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.32) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 25 -Article 7
+ Details
Name: |
us-gaap_LiabilitiesAndStockholdersEquity |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
instant |
|
X |
- DefinitionTotal obligations incurred as part of normal operations that are expected to be paid during the following twelve months or within one business cycle, if longer.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.21) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682
+ Details
Name: |
us-gaap_LiabilitiesCurrent |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
instant |
|
X |
- References
+ Details
Name: |
us-gaap_LiabilitiesCurrentAbstract |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:stringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionAggregate carrying amount, as of the balance sheet date, of noncurrent assets not separately disclosed in the balance sheet. Noncurrent assets are expected to be realized or consumed after one year (or the normal operating cycle, if longer).
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.17) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682
+ Details
Name: |
us-gaap_OtherAssetsNoncurrent |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
instant |
|
X |
- DefinitionAggregate carrying amount, as of the balance sheet date, of noncurrent obligations not separately disclosed in the balance sheet. Noncurrent liabilities are expected to be paid after one year (or the normal operating cycle, if longer).
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.24) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682
+ Details
Name: |
us-gaap_OtherLiabilitiesNoncurrent |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
instant |
|
X |
- DefinitionAmount of asset related to consideration paid in advance for costs that provide economic benefits in future periods, and amount of other assets that are expected to be realized or consumed within one year or the normal operating cycle, if longer.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section 45 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=28358313&loc=d3e6676-107765
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 8 -Article 5
+ Details
Name: |
us-gaap_PrepaidExpenseAndOtherAssetsCurrent |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
instant |
|
X |
- DefinitionAmount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.13) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6391035&loc=d3e2868-110229
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 13 -Subparagraph a -Article 5
Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 8 -Article 7
+ Details
Name: |
us-gaap_PropertyPlantAndEquipmentNet |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
instant |
|
X |
- DefinitionThe cumulative amount of the reporting entity's undistributed earnings or deficit.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.31(a)(3)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3
+ Details
Name: |
us-gaap_RetainedEarningsAccumulatedDeficit |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
instant |
|
X |
- DefinitionReflects the total carrying amount as of the balance sheet date of debt having initial terms less than one year or the normal operating cycle, if longer.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.9-03.13) -URI http://asc.fasb.org/extlink&oid=6876686&loc=d3e534808-122878
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19(a)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.7-03.(a),16(a)(1)) -URI http://asc.fasb.org/extlink&oid=6879938&loc=d3e572229-122910
Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 13 -Subparagraph 2, 3 -Article 9
+ Details
Name: |
us-gaap_ShortTermBorrowings |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
instant |
|
X |
- DefinitionTotal of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 4.E) -URI http://asc.fasb.org/extlink&oid=27010918&loc=d3e74512-122707
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.29-31) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 4 -Section E
+ Details
Name: |
us-gaap_StockholdersEquity |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
instant |
|
X |
- References
+ Details
Name: |
us-gaap_StockholdersEquityAbstract |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:stringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe amount allocated to treasury stock. Treasury stock is common and preferred shares of an entity that were issued, repurchased by the entity, and are held in its treasury.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 30 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23315-112656
+ Details
Name: |
us-gaap_TreasuryStockValue |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
instant |
|
X |
- Details
Name: |
us-gaap_StatementClassOfStockAxis=us-gaap_CommonClassAMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
us-gaap_StatementClassOfStockAxis=us-gaap_CommonClassBMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
v3.3.1.900
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Allowance for Doubtful Accounts Receivable, Current |
$ 1,492
|
$ 854
|
$ 818
|
Common Class A [Member] |
|
|
|
Common Stock, Par or Stated Value Per Share (in dollars per share) |
$ 0.0001
|
$ 0.0001
|
$ 0.0001
|
Common Stock, Shares Authorized (in shares) |
139,500
|
139,500
|
139,500
|
Common Stock, Shares, Outstanding (in shares) |
66,590
|
66,084
|
65,803
|
Common Class B [Member] |
|
|
|
Common Stock, Par or Stated Value Per Share (in dollars per share) |
$ 0.0001
|
$ 0.0001
|
$ 0.0001
|
Common Stock, Shares Authorized (in shares) |
40,500
|
40,500
|
40,500
|
Common Stock, Shares, Outstanding (in shares) |
4,394
|
4,394
|
4,394
|
X |
- DefinitionA valuation allowance for trade and other receivables due to an Entity within one year (or the normal operating cycle, whichever is longer) that are expected to be uncollectible.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.4) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=49124121&loc=d3e5074-111524
+ Details
Name: |
us-gaap_AllowanceForDoubtfulAccountsReceivableCurrent |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
instant |
|
X |
- DefinitionFace amount or stated value per share of common stock.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.29) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 30 -Article 5
+ Details
Name: |
us-gaap_CommonStockParOrStatedValuePerShare |
Namespace Prefix: |
us-gaap_ |
Data Type: |
num:perShareItemType |
Balance Type: |
na |
Period Type: |
instant |
|
X |
- DefinitionThe maximum number of common shares permitted to be issued by an entity's charter and bylaws.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.29) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 30 -Article 5
+ Details
Name: |
us-gaap_CommonStockSharesAuthorized |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:sharesItemType |
Balance Type: |
na |
Period Type: |
instant |
|
X |
- DefinitionNumber of shares of common stock outstanding. Common stock represent the ownership interest in a corporation.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.29) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.3-04) -URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770
Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 30 -Article 5
+ Details
Name: |
us-gaap_CommonStockSharesOutstanding |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:sharesItemType |
Balance Type: |
na |
Period Type: |
instant |
|
X |
- Details
Name: |
us-gaap_StatementClassOfStockAxis=us-gaap_CommonClassAMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
us-gaap_StatementClassOfStockAxis=us-gaap_CommonClassBMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
v3.3.1.900
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended |
9 Months Ended |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Net sales |
$ 83,093
|
$ 144,598
|
$ 189,013
|
$ 305,220
|
Cost of sales |
75,685
|
99,464
|
168,115
|
214,243
|
Gross profit |
7,408
|
45,134
|
20,898
|
90,977
|
Operating expenses: |
|
|
|
|
Selling, general and administrative |
21,878
|
23,338
|
66,831
|
64,703
|
Research and development |
9,912
|
8,993
|
26,450
|
23,967
|
Advertising |
17,298
|
26,773
|
25,409
|
39,531
|
Goodwill impairment |
0
|
19,549
|
0
|
19,549
|
Impairment of long-lived assets |
1,086
|
0
|
4,970
|
0
|
Depreciation and amortization |
318
|
2,971
|
1,404
|
8,571
|
Total operating expenses |
50,492
|
81,624
|
125,064
|
156,321
|
Loss from operations |
(43,084)
|
(36,490)
|
(104,166)
|
(65,344)
|
Other income (expense): |
|
|
|
|
Interest income |
11
|
10
|
74
|
71
|
Interest expense |
(67)
|
(16)
|
(69)
|
(16)
|
Other, net |
(237)
|
(516)
|
(654)
|
(746)
|
Total other income (expense), net |
(293)
|
(522)
|
(649)
|
(691)
|
Loss before income taxes |
(43,377)
|
(37,012)
|
(104,815)
|
(66,035)
|
Provision for income taxes |
848
|
87,200
|
801
|
76,571
|
Net loss |
$ (44,225)
|
$ (124,212)
|
$ (105,616)
|
$ (142,606)
|
Net loss per share: |
|
|
|
|
Class A and B - basic and diluted (in dollars per share) |
$ (0.62)
|
$ (1.77)
|
$ (1.49)
|
$ (2.04)
|
Weighted-average shares used to calculate net loss per share: |
|
|
|
|
Class A and B - basic and diluted (in shares) |
70,967
|
70,169
|
70,810
|
69,997
|
X |
- DefinitionAmount charged to advertising expense for the period, which are expenses incurred with the objective of increasing revenue for a specified brand, product or product line.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 720 -SubTopic 35 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6420018&loc=d3e36677-107848
+ Details
Name: |
us-gaap_AdvertisingExpense |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
duration |
|
X |
- DefinitionThe aggregate costs related to goods produced and sold and services rendered by an entity during the reporting period. This excludes costs incurred during the reporting period related to financial services rendered and other revenue generating activities.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 225 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SX 210.5-03.2(a),(d)) -URI http://asc.fasb.org/extlink&oid=26872669&loc=d3e20235-122688
+ Details
Name: |
us-gaap_CostOfGoodsAndServicesSold |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
duration |
|
X |
- DefinitionThe current period expense charged against earnings on long-lived, physical assets not used in production, and which are not intended for resale, to allocate or recognize the cost of such assets over their useful lives; or to record the reduction in book value of an intangible asset over the benefit period of such asset; or to reflect consumption during the period of an asset that is not used in production.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6391035&loc=d3e2868-110229
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 28 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=56944662&loc=d3e3602-108585
+ Details
Name: |
us-gaap_DepreciationAndAmortization |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
duration |
|
X |
- DefinitionThe amount of net income or loss for the period per each share in instances when basic and diluted earnings per share are the same amount and reported as a single line item on the face of the financial statements. Basic earnings per share is the amount of net income or loss for the period per each share of common stock or unit outstanding during the reporting period. Diluted earnings per share includes the amount of net income or loss for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.
+ References
+ Details
Name: |
us-gaap_EarningsPerShareBasicAndDiluted |
Namespace Prefix: |
us-gaap_ |
Data Type: |
num:perShareItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- References
+ Details
Name: |
us-gaap_EarningsPerShareBasicAndDilutedAbstract |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:stringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- References
+ Details
Name: |
us-gaap_EarningsPerShareBasicAndDilutedOtherDisclosuresAbstract |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:stringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionAmount of loss from the write-down of an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13854-109267
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 45 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6388280&loc=d3e13777-109266
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 28 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=56944662&loc=d3e3602-108585
Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13816-109267
+ Details
Name: |
us-gaap_GoodwillImpairmentLoss |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
duration |
|
X |
- DefinitionAggregate revenue less cost of goods and services sold or operating expenses directly attributable to the revenue generation activity.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 225 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SX 210.5-03.1,2) -URI http://asc.fasb.org/extlink&oid=26872669&loc=d3e20235-122688
+ Details
Name: |
us-gaap_GrossProfit |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
duration |
|
X |
- DefinitionThe aggregate amount of write-downs for impairments recognized during the period for long lived assets held for use (including those held for disposal by means other than sale).
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 958 -SubTopic 225 -Section 45 -Paragraph 11 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=51659069&loc=d3e92212-112881
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Impairment -URI http://asc.fasb.org/extlink&oid=6515133
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 28 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=56944662&loc=d3e3602-108585
Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=51719941&loc=d3e2921-110230
Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 45 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=51824106&loc=d3e2420-110228
+ Details
Name: |
us-gaap_ImpairmentOfLongLivedAssetsHeldForUse |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
duration |
|
X |
- DefinitionAmount of the cost of borrowed funds accounted for as interest expense.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 835 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6450988&loc=d3e26243-108391
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 225 -Section S99 -Paragraph 1 -Subparagraph (SX 210.9-04.9) -URI http://asc.fasb.org/extlink&oid=6879574&loc=d3e536633-122882
+ Details
Name: |
us-gaap_InterestExpense |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
duration |
|
X |
- DefinitionAmount before accretion (amortization) of purchase discount (premium) of interest income on nonoperating securities.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 225 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SX 210.5-03.7(b)) -URI http://asc.fasb.org/extlink&oid=26872669&loc=d3e20235-122688
+ Details
Name: |
us-gaap_InvestmentIncomeInterest |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
duration |
|
X |
- DefinitionThe portion of profit or loss for the period, net of income taxes, which is attributable to the parent.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Net Income -URI http://asc.fasb.org/extlink&oid=51831255
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 28 -URI http://asc.fasb.org/extlink&oid=56944662&loc=d3e3602-108585
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 225 -Section S99 -Paragraph 1 -Subparagraph (SX 210.7-04.19) -URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913
Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 260 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257
Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 225 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SX 210.5-03.18) -URI http://asc.fasb.org/extlink&oid=26872669&loc=d3e20235-122688
Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 225 -Section S99 -Paragraph 1 -Subparagraph (SX 210.7-04.22) -URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913
Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Other Comprehensive Income -URI http://asc.fasb.org/extlink&oid=51831270
Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 19 -Article 5
Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 20 -Article 9
+ Details
Name: |
us-gaap_NetIncomeLoss |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
duration |
|
X |
- DefinitionThe aggregate amount of income or expense from ancillary business-related activities (that is to say, excluding major activities considered part of the normal operations of the business).
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 225 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SX 210.5-03.7) -URI http://asc.fasb.org/extlink&oid=26872669&loc=d3e20235-122688
+ Details
Name: |
us-gaap_NonoperatingIncomeExpense |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
duration |
|
X |
- References
+ Details
Name: |
us-gaap_NonoperatingIncomeExpenseAbstract |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:stringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionGenerally recurring costs associated with normal operations except for the portion of these expenses which can be clearly related to production and included in cost of sales or services. Includes selling, general and administrative expense.
+ References
+ Details
Name: |
us-gaap_OperatingExpenses |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
duration |
|
X |
- References
+ Details
Name: |
us-gaap_OperatingExpensesAbstract |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:stringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe net result for the period of deducting operating expenses from operating revenues.
+ References
+ Details
Name: |
us-gaap_OperatingIncomeLoss |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
duration |
|
X |
- DefinitionThe net amount of other income and expense amounts, the components of which are not separately disclosed on the income statement, resulting from ancillary business-related activities (that is, excluding major activities considered part of the normal operations of the business) also known as other nonoperating income (expense) recognized for the period. Such amounts may include: (a) dividends, (b) interest on securities, (c) net gains or losses on securities, (d) unusual costs, (e) gains or losses on foreign exchange transactions, and (f) miscellaneous other income and expense items.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 225 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SX 210.5-03.9) -URI http://asc.fasb.org/extlink&oid=26872669&loc=d3e20235-122688
+ Details
Name: |
us-gaap_OtherNonoperatingIncomeExpense |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
duration |
|
X |
- DefinitionThe aggregate costs incurred (1) in a planned search or critical investigation aimed at discovery of new knowledge with the hope that such knowledge will be useful in developing a new product or service, a new process or technique, or in bringing about a significant improvement to an existing product or process; or (2) to translate research findings or other knowledge into a plan or design for a new product or process or for a significant improvement to an existing product or process whether intended for sale or the entity's use, during the reporting period charged to research and development projects, including the costs of developing computer software up to the point in time of achieving technological feasibility, and costs allocated in accounting for a business combination to in-process projects deemed to have no alternative future use.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 730 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6420194&loc=d3e21568-108373
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 985 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6501960&loc=d3e128462-111756
+ Details
Name: |
us-gaap_ResearchAndDevelopmentExpense |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
duration |
|
X |
- DefinitionTotal revenue from sale of goods and services rendered during the reporting period, in the normal course of business, reduced by sales returns and allowances, and sales discounts.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 225 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SX 210.5-03.1) -URI http://asc.fasb.org/extlink&oid=26872669&loc=d3e20235-122688
+ Details
Name: |
us-gaap_SalesRevenueNet |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
duration |
|
X |
- DefinitionThe aggregate total costs related to selling a firm's product and services, as well as all other general and administrative expenses. Direct selling expenses (for example, credit, warranty, and advertising) are expenses that can be directly linked to the sale of specific products. Indirect selling expenses are expenses that cannot be directly linked to the sale of specific products, for example telephone expenses, Internet, and postal charges. General and administrative expenses include salaries of non-sales personnel, rent, utilities, communication, etc.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 225 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SX 210.5-03.4) -URI http://asc.fasb.org/extlink&oid=26872669&loc=d3e20235-122688
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 330 -SubTopic 10 -Section 30 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=51677171&loc=d3e3636-108311
+ Details
Name: |
us-gaap_SellingGeneralAndAdministrativeExpense |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
duration |
|
X |
- DefinitionAverage number of shares or units issued and outstanding that are used in calculating basic and diluted earnings per share (EPS).
+ References
+ Details
Name: |
us-gaap_WeightedAverageNumberOfShareOutstandingBasicAndDiluted |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:sharesItemType |
Balance Type: |
na |
Period Type: |
duration |
|
v3.3.1.900
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands |
3 Months Ended |
9 Months Ended |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Net loss |
$ (44,225)
|
$ (124,212)
|
$ (105,616)
|
$ (142,606)
|
Other comprehensive loss |
|
|
|
|
Currency translation adjustments |
(1,095)
|
(2,202)
|
(1,589)
|
(2,875)
|
Comprehensive loss |
$ (45,320)
|
$ (126,414)
|
$ (107,205)
|
$ (145,481)
|
X |
- DefinitionAmount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income and other comprehensive income, attributable to parent entity. Excludes changes in equity resulting from investments by owners and distributions to owners.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Other Comprehensive Income -URI http://asc.fasb.org/extlink&oid=51831270
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Comprehensive Income -URI http://asc.fasb.org/extlink&oid=51831223
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 220 -SubTopic 10 -Section 45 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=36458714&loc=d3e557-108580
Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Net Income -URI http://asc.fasb.org/extlink&oid=51831255
+ Details
Name: |
us-gaap_ComprehensiveIncomeNetOfTax |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
duration |
|
X |
- DefinitionThe portion of profit or loss for the period, net of income taxes, which is attributable to the parent.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Net Income -URI http://asc.fasb.org/extlink&oid=51831255
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 28 -URI http://asc.fasb.org/extlink&oid=56944662&loc=d3e3602-108585
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 225 -Section S99 -Paragraph 1 -Subparagraph (SX 210.7-04.19) -URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913
Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 260 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257
Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 225 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SX 210.5-03.18) -URI http://asc.fasb.org/extlink&oid=26872669&loc=d3e20235-122688
Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 225 -Section S99 -Paragraph 1 -Subparagraph (SX 210.7-04.22) -URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913
Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Other Comprehensive Income -URI http://asc.fasb.org/extlink&oid=51831270
Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 19 -Article 5
Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 20 -Article 9
+ Details
Name: |
us-gaap_NetIncomeLoss |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
duration |
|
X |
- DefinitionAmount after tax and reclassification adjustments of gain (loss) on foreign currency translation adjustments, foreign currency transactions designated and effective as economic hedges of a net investment in a foreign entity and intra-entity foreign currency transactions that are of a long-term-investment nature.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 830 -SubTopic 30 -Section 45 -Paragraph 20 -Subparagraph (b,c) -URI http://asc.fasb.org/extlink&oid=6915805&loc=d3e32211-110900
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 220 -SubTopic 10 -Section 45 -Paragraph 10A -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=36458714&loc=SL7669646-108580
+ Details
Name: |
us-gaap_OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
duration |
|
X |
- References
+ Details
Name: |
us-gaap_OtherComprehensiveIncomeLossNetOfTaxPeriodIncreaseDecreaseAbstract |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:stringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
v3.3.1.900
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands |
9 Months Ended |
Dec. 31, 2015 |
Dec. 31, 2014 |
Operating activities: |
|
|
Net loss |
$ (105,616)
|
$ (142,606)
|
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
Depreciation and amortization |
13,133
|
19,869
|
Goodwill impairment |
0
|
19,549
|
Impairment of long-lived assets |
4,970
|
0
|
Deferred income taxes |
198
|
75,531
|
Stock-based compensation expense |
7,325
|
8,676
|
Allowance for doubtful accounts |
659
|
954
|
Other changes in operating assets and liabilities: |
|
|
Accounts receivable, net |
(44,860)
|
(73,546)
|
Inventories |
33,331
|
(27,804)
|
Prepaid expenses and other current assets |
1,146
|
(520)
|
Other assets |
770
|
129
|
Accounts payable |
725
|
6,942
|
Accrued liabilities |
8,302
|
9,182
|
Deferred revenue |
(225)
|
(134)
|
Other long-term liabilities |
742
|
(910)
|
Income taxes payable |
0
|
(220)
|
Net cash used in operating activities |
(79,400)
|
(104,908)
|
Investing activities: |
|
|
Purchases of property and equipment and other intangible assets |
(6,158)
|
(21,085)
|
Capitalization of content and website development costs |
(7,398)
|
(13,069)
|
Net cash used in investing activities |
(13,556)
|
(34,154)
|
Financing activities: |
|
|
Proceeds from stock option exercises and employee stock purchase plan |
146
|
1,512
|
Cash paid for payroll taxes on restricted stock unit releases |
(325)
|
(940)
|
Repurchase of common shares |
0
|
(38)
|
Excess tax benefits from stock-based compensation |
0
|
11
|
Borrowing on line of credit |
20,000
|
0
|
Net cash provided by financing activities |
19,821
|
545
|
Effect of exchange rate changes on cash |
(1,195)
|
549
|
Net change in cash and cash equivalents |
(74,330)
|
(137,968)
|
Cash and cash equivalents, beginning of period |
127,176
|
231,988
|
Cash and cash equivalents, end of period |
52,846
|
94,020
|
Non-cash investing and financing activities: |
|
|
Net change in accounts payable and accrued liabilities related to capital expenditures |
$ (2,863)
|
$ (2,676)
|
X |
- DefinitionThe cash outflow associated with the acquisition of long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale and other intangible assets.
+ References
+ Details
Name: |
lf_PaymentsToAcquirePropertyPlantAndEquipmentAndOtherIntangibleAssets |
Namespace Prefix: |
lf_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
duration |
|
X |
- References
+ Details
Name: |
us-gaap_AdjustmentsToReconcileNetIncomeLossToCashProvidedByUsedInOperatingActivitiesAbstract |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:stringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionFuture cash outflow to pay for purchases of fixed assets that have occurred.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6367179&loc=d3e4332-108586
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6367179&loc=d3e4313-108586
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6367179&loc=d3e4304-108586
+ Details
Name: |
us-gaap_CapitalExpendituresIncurredButNotYetPaid |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
duration |
|
X |
- DefinitionAmount of currency on hand as well as demand deposits with banks or financial institutions. Includes other kinds of accounts that have the general characteristics of demand deposits. Also includes short-term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Excludes cash and cash equivalents within disposal group and discontinued operation.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Cash -URI http://asc.fasb.org/extlink&oid=6506951
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section 45 -Paragraph 1 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=28358313&loc=d3e6676-107765
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=56944662&loc=d3e3044-108585
Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Cash Equivalents -URI http://asc.fasb.org/extlink&oid=6507016
Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.1) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682
+ Details
Name: |
us-gaap_CashAndCashEquivalentsAtCarryingValue |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
instant |
|
X |
- DefinitionAmount of increase (decrease) in cash and cash equivalents. Cash and cash equivalents are the amount of currency on hand as well as demand deposits with banks or financial institutions. Includes other kinds of accounts that have the general characteristics of demand deposits. Also includes short-term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Includes effect from exchange rate changes.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 24 -URI http://asc.fasb.org/extlink&oid=56944662&loc=d3e3521-108585
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 830 -SubTopic 230 -Section 45 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=49171198&loc=d3e33268-110906
+ Details
Name: |
us-gaap_CashAndCashEquivalentsPeriodIncreaseDecrease |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
duration |
|
X |
- References
+ Details
Name: |
us-gaap_CashFlowNoncashInvestingAndFinancingActivitiesDisclosureAbstract |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:stringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe aggregate expense recognized in the current period that allocates the cost of tangible assets, intangible assets, or depleting assets to periods that benefit from use of the assets.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 28 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=56944662&loc=d3e3602-108585
+ Details
Name: |
us-gaap_DepreciationDepletionAndAmortization |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
duration |
|
X |
- DefinitionAmount of increase (decrease) from the effect of exchange rate changes on cash and cash equivalent balances held in foreign currencies.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 830 -SubTopic 230 -Section 45 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=49171198&loc=d3e33268-110906
+ Details
Name: |
us-gaap_EffectOfExchangeRateOnCashAndCashEquivalents |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
duration |
|
X |
- DefinitionAmount of cash inflow from realized tax benefit related to deductible compensation cost reported on the entity's tax return for equity instruments in excess of the compensation cost for those instruments recognized for financial reporting purposes.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 20 -Section 55 -Paragraph 24 -URI http://asc.fasb.org/extlink&oid=32706628&loc=d3e11374-113907
+ Details
Name: |
us-gaap_ExcessTaxBenefitFromShareBasedCompensationFinancingActivities |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
duration |
|
X |
- DefinitionAmount of loss from the write-down of an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13854-109267
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 45 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6388280&loc=d3e13777-109266
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 28 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=56944662&loc=d3e3602-108585
Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13816-109267
+ Details
Name: |
us-gaap_GoodwillImpairmentLoss |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
duration |
|
X |
- DefinitionThe aggregate amount of write-downs for impairments recognized during the period for long lived assets held for use (including those held for disposal by means other than sale).
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 958 -SubTopic 225 -Section 45 -Paragraph 11 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=51659069&loc=d3e92212-112881
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Impairment -URI http://asc.fasb.org/extlink&oid=6515133
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 28 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=56944662&loc=d3e3602-108585
Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=51719941&loc=d3e2921-110230
Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 45 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=51824106&loc=d3e2420-110228
+ Details
Name: |
us-gaap_ImpairmentOfLongLivedAssetsHeldForUse |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
duration |
|
X |
- DefinitionThe increase (decrease) during the reporting period in the aggregate amount of liabilities incurred (and for which invoices have typically been received) and payable to vendors for goods and services received that are used in an entity's business.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 28 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=56944662&loc=d3e3602-108585
+ Details
Name: |
us-gaap_IncreaseDecreaseInAccountsPayable |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
duration |
|
X |
- DefinitionThe increase (decrease) during the reporting period in amount due within one year (or one business cycle) from customers for the credit sale of goods and services.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 28 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=56944662&loc=d3e3602-108585
+ Details
Name: |
us-gaap_IncreaseDecreaseInAccountsReceivable |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
duration |
|
X |
- DefinitionThe increase (decrease) during the reporting period in the aggregate amount of expenses incurred but not yet paid.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 28 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=56944662&loc=d3e3602-108585
+ Details
Name: |
us-gaap_IncreaseDecreaseInAccruedLiabilities |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
duration |
|
X |
- DefinitionThe increase (decrease) during the reporting period, excluding the portion taken into income, in the liability reflecting revenue yet to be earned for which cash or other forms of consideration was received or recorded as a receivable.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 28 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=56944662&loc=d3e3602-108585
+ Details
Name: |
us-gaap_IncreaseDecreaseInDeferredRevenue |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
duration |
|
X |
- DefinitionThe increase (decrease) during the reporting period in the aggregate value of all inventory held by the reporting entity, associated with underlying transactions that are classified as operating activities.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 28 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=56944662&loc=d3e3602-108585
+ Details
Name: |
us-gaap_IncreaseDecreaseInInventories |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
duration |
|
X |
- References
+ Details
Name: |
us-gaap_IncreaseDecreaseInOperatingCapitalAbstract |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:stringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe increase (decrease) during the reporting period in other noncurrent operating liabilities not separately disclosed in the statement of cash flows.
+ References
+ Details
Name: |
us-gaap_IncreaseDecreaseInOtherNoncurrentLiabilities |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
duration |
|
X |
- DefinitionThe increase (decrease) during the reporting period in other assets used in operating activities not separately disclosed in the statement of cash flows. May include changes in other current assets, other noncurrent assets, or a combination of other current and noncurrent assets.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 28 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=56944662&loc=d3e3602-108585
+ Details
Name: |
us-gaap_IncreaseDecreaseInOtherOperatingAssets |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
duration |
|
X |
- DefinitionThe increase (decrease) during the reporting period in the value of prepaid expenses and other assets not separately disclosed in the statement of cash flows, for example, deferred expenses, intangible assets, or income taxes.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 28 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=56944662&loc=d3e3602-108585
+ Details
Name: |
us-gaap_IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
duration |
|
X |
- References
+ Details
Name: |
us-gaap_NetCashProvidedByUsedInFinancingActivitiesAbstract |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:stringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionAmount of cash inflow (outflow) of financing activities, excluding discontinued operations. Financing activity cash flows include obtaining resources from owners and providing them with a return on, and a return of, their investment; borrowing money and repaying amounts borrowed, or settling the obligation; and obtaining and paying for other resources obtained from creditors on long-term credit.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=56944662&loc=d3e3574-108585
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 24 -URI http://asc.fasb.org/extlink&oid=56944662&loc=d3e3521-108585
+ Details
Name: |
us-gaap_NetCashProvidedByUsedInFinancingActivitiesContinuingOperations |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
duration |
|
X |
- References
+ Details
Name: |
us-gaap_NetCashProvidedByUsedInInvestingActivitiesAbstract |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:stringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionAmount of cash inflow (outflow) of investing activities, excluding discontinued operations. Investing activity cash flows include making and collecting loans and acquiring and disposing of debt or equity instruments and property, plant, and equipment and other productive assets.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=56944662&loc=d3e3574-108585
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 24 -URI http://asc.fasb.org/extlink&oid=56944662&loc=d3e3521-108585
+ Details
Name: |
us-gaap_NetCashProvidedByUsedInInvestingActivitiesContinuingOperations |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
duration |
|
X |
- References
+ Details
Name: |
us-gaap_NetCashProvidedByUsedInOperatingActivitiesAbstract |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:stringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionAmount of cash inflow (outflow) from operating activities, excluding discontinued operations. Operating activity cash flows include transactions, adjustments, and changes in value not defined as investing or financing activities.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 24 -URI http://asc.fasb.org/extlink&oid=56944662&loc=d3e3521-108585
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 28 -URI http://asc.fasb.org/extlink&oid=56944662&loc=d3e3602-108585
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 25 -URI http://asc.fasb.org/extlink&oid=56944662&loc=d3e3536-108585
+ Details
Name: |
us-gaap_NetCashProvidedByUsedInOperatingActivitiesContinuingOperations |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe portion of profit or loss for the period, net of income taxes, which is attributable to the parent.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Net Income -URI http://asc.fasb.org/extlink&oid=51831255
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 28 -URI http://asc.fasb.org/extlink&oid=56944662&loc=d3e3602-108585
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 225 -Section S99 -Paragraph 1 -Subparagraph (SX 210.7-04.19) -URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913
Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 260 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257
Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 225 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SX 210.5-03.18) -URI http://asc.fasb.org/extlink&oid=26872669&loc=d3e20235-122688
Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 225 -Section S99 -Paragraph 1 -Subparagraph (SX 210.7-04.22) -URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913
Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Other Comprehensive Income -URI http://asc.fasb.org/extlink&oid=51831270
Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 19 -Article 5
Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 20 -Article 9
+ Details
Name: |
us-gaap_NetIncomeLoss |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
duration |
|
X |
- DefinitionThe cash outflow to reacquire common stock during the period.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 15 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=56944662&loc=d3e3291-108585
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Financing Activities -URI http://asc.fasb.org/extlink&oid=6513228
+ Details
Name: |
us-gaap_PaymentsForRepurchaseOfCommonStock |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
duration |
|
X |
- DefinitionThe cash outflow for acquisition of or capital improvements on other tangible or intangible assets not otherwise defined in the taxonomy.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 13 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=56944662&loc=d3e3213-108585
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Investing Activities -URI http://asc.fasb.org/extlink&oid=6516133
+ Details
Name: |
us-gaap_PaymentsToAcquireOtherProductiveAssets |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
duration |
|
X |
- DefinitionThe total cash inflow associated with the amount received from holders to acquire the entity's shares under incentive and share awards, including stock option exercises. This item inherently excludes any excess tax benefit, which the entity may have realized and reported separately.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 14 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=56944662&loc=d3e3255-108585
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Financing Activities -URI http://asc.fasb.org/extlink&oid=6513228
+ Details
Name: |
us-gaap_ProceedsFromIssuanceOfSharesUnderIncentiveAndShareBasedCompensationPlansIncludingStockOptions |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
duration |
|
X |
- DefinitionAmount of cash inflow from contractual arrangement with the lender, including but not limited to, letter of credit, standby letter of credit and revolving credit arrangements.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Financing Activities -URI http://asc.fasb.org/extlink&oid=6513228
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 14 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=56944662&loc=d3e3255-108585
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(f)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690
+ Details
Name: |
us-gaap_ProceedsFromLinesOfCredit |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
duration |
|
X |
- DefinitionAmount of expense related to write-down of receivables to the amount expected to be collected. Includes, but is not limited to, accounts receivable and notes receivable.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 225 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SX 210.5-03.5) -URI http://asc.fasb.org/extlink&oid=26872669&loc=d3e20235-122688
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 28 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=56944662&loc=d3e3602-108585
+ Details
Name: |
us-gaap_ProvisionForDoubtfulAccounts |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
duration |
|
X |
- DefinitionThe aggregate amount of noncash, equity-based employee remuneration. This may include the value of stock or unit options, amortization of restricted stock or units, and adjustment for officers' compensation. As noncash, this element is an add back when calculating net cash generated by operating activities using the indirect method.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 28 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=56944662&loc=d3e3602-108585
+ Details
Name: |
us-gaap_ShareBasedCompensation |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
duration |
|
v3.3.1.900
Basis of Presentation
|
9 Months Ended |
Dec. 31, 2015 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
|
Business Description and Basis of Presentation [Text Block] |
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 financial information included herein should be read in conjunction with the consolidated financial statements and related notes in the Company’s 2015 Annual Report on Form 10-K filed with the United States (“U.S.”) Securities and Exchange Commission (the “SEC”) on June 15, 2015 for the fiscal year ended March 31, 2015 (the “2015 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 2015 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. During the third fiscal quarter, the Company continued to face an uncertain business environment and a number of fundamental challenges in its business, including a continued decline in overall tablet sales and related content, aggressive price competition and loss of shelf space at retail. Sales of the Company’s LeapTV products and associated content did not improve in the third quarter to the extent the Company hoped, despite promotional efforts, including price reductions, intended to stimulate consumer demand. In addition, declines in the overall tablet market overshadowed improvements in certain product lines such as the Company’s new Epic tablet. The Company does not believe that these challenging conditions will improve materially in the next two quarters. The Company continued to take steps to reduce costs through such measures as reducing the size of its workforce and deferring the development of certain new products. However, the Company believes that available approaches to improving its liquidity, such as making changes to vendor terms and accelerating the collection of receivables, may be unlikely to compensate for the liquidity impact of its worse than anticipated performance during the third quarter. The Company currently believes that liquidity available to fund its operations during the first two quarters of fiscal 2017, when its use of cash increases as it builds inventories and experiences seasonal declines in revenue, may be insufficient to permit it to continue normal operations, and there is substantial doubt about the Company’s ability to continue as a going concern. In addition to steps taken to change its business structure and operations, the Company has been working with a financial advisor to assist it in exploring strategic alternatives, including a potential sale or raising additional capital. On February 5, 2016, the Company entered into an Agreement and Plan of Merger with VTech Holdings, Ltd. and Bonita Merger Sub., L.L.C. (the “Merger”). For further information concerning the Agreement and Plan of Merger, see note 11 and information contained in our Form 8-K filed with the SEC on February 5, 2016, including exhibits thereto. If the transaction described in the Agreement and Plan of Merger or another transaction providing the Company with substantial liquidity is not completed, the Company will likely face significant difficulties in generating sufficient liquidity to continue normal operations over the first two quarters of Fiscal 2017. The adequacy of our liquidity to fund our working capital needs and capital expenditures over the long term should the Merger (or another transaction) fail to close will depend upon the magnitude of operating expense reductions we are able to achieve, the effectiveness of measures we adopt to manage our cash flows, our ability to access credit to assist us in addressing the seasonality of our business and our ability to improve our operating performance. Accumulated other comprehensive loss consists solely of currency translation adjustments.
|
X |
- DefinitionThe entire disclosure for the business description and basis of presentation concepts. Business description describes the nature and type of organization including but not limited to organizational structure as may be applicable to holding companies, parent and subsidiary relationships, business divisions, business units, business segments, affiliates and information about significant ownership of the reporting entity. Basis of presentation describes the underlying basis used to prepare the financial statements (for example, US Generally Accepted Accounting Principles, Other Comprehensive Basis of Accounting, IFRS).
+ References
+ Details
Name: |
us-gaap_BusinessDescriptionAndBasisOfPresentationTextBlock |
Namespace Prefix: |
us-gaap_ |
Data Type: |
nonnum:textBlockItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- References
+ Details
Name: |
us-gaap_OrganizationConsolidationAndPresentationOfFinancialStatementsAbstract |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:stringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
v3.3.1.900
Fair Value of Financial Instruments and Investments
|
9 Months Ended |
Dec. 31, 2015 |
Fair Value Disclosures [Abstract] |
|
Fair Value Disclosures [Text Block] |
2. Fair Value 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 December 31, 2015 and 2014, and March 31, 2015, the Company’s Level 1 assets consisted of money market funds and certificates of deposit with original maturities of three months or less. These assets were 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. | As of December 31, 2015 and 2014, and March 31, 2015, the Company’s Level 2 assets and liabilities consisted of outstanding foreign exchange forward contracts used to hedge its exposure to certain of its major 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 $2,507, $37,927 and $4,760 at December 31, 2015 and 2014, and March 31, 2015, respectively. The fair market values of these instruments, based on quoted prices, were $10, $69 and $22 on a net basis at December 31, 2015 and 2014, and March 31, 2015, respectively, and recorded in prepaid expenses and other current assets. | · | 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 for any period presented. | The following table presents the Company’s fair value hierarchy for assets and liabilities measured at fair value on a recurring basis as of December 31, 2015 and 2014, and March 31, 2015: | | Estimated Fair Value Measurements | | | | Carrying Value | | Quoted Prices in Active Markets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | December 31, 2015: | | | | | | | | | | | | | | Financial Assets: | | | | | | | | | | | | | | Money market funds and certificate of deposit | | $ | 19,484 | | $ | 19,484 | | $ | - | | $ | - | | Collateral certificates of deposit * | | | 10,000 | | | 10,000 | | | - | | | - | | Forward currency contracts | | | 10 | | | - | | | 10 | | | - | | Total financial assets | | $ | 29,494 | | $ | 29,484 | | $ | 10 | | $ | - | | December 31, 2014: | | | | | | | | | | | | | | Financial Assets: | | | | | | | | | | | | | | Money market funds and certificate of deposit | | $ | 48 | | $ | 48 | | $ | - | | $ | - | | Forward currency contracts | | | 69 | | | - | | | 69 | | | - | | Total financial assets | | $ | 117 | | $ | 48 | | $ | 69 | | $ | - | | March 31, 2015: | | | | | | | | | | | | | | Financial Assets: | | | | | | | | | | | | | | Money market funds and certificate of deposit | | $ | 62,810 | | $ | 62,810 | | $ | - | | $ | - | | Collateral certificates of deposit * | | | 20,000 | | | 20,000 | | | - | | | - | | Forward currency contracts | | | 22 | | | - | | | 22 | | | - | | Total financial assets | | $ | 82,832 | | $ | 82,810 | | $ | 22 | | $ | - | | | * | These certificates of deposit were collateral under the Company's asset-based revolving credit facility arrangement. |
|
X |
- References
+ Details
Name: |
us-gaap_FairValueDisclosuresAbstract |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:stringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 28 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612
Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=49121117&loc=d3e13537-108611
Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 16 -URI http://asc.fasb.org/extlink&oid=49121117&loc=d3e13504-108611
Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=49121117&loc=d3e13433-108611
+ Details
Name: |
us-gaap_FairValueDisclosuresTextBlock |
Namespace Prefix: |
us-gaap_ |
Data Type: |
nonnum:textBlockItemType |
Balance Type: |
na |
Period Type: |
duration |
|
v3.3.1.900
Inventories
|
9 Months Ended |
Dec. 31, 2015 |
Inventory Disclosure [Abstract] |
|
Inventory Disclosure [Text Block] |
3. Inventories The Company’s inventories, stated on a first-in, first-out basis at the lower of cost or market, were as follows as of December 31, 2015 and 2014, and March 31, 2015: | | December 31, | | March 31, | | | | 2015 | | 2014 | | 2015 | | Raw materials | | $ | 2,149 | | $ | 3,782 | | $ | 3,120 | | Finished goods | | | 36,377 | | | 74,014 | | | 68,807 | | Total | | $ | 38,526 | | $ | 77,796 | | $ | 71,927 | | Inventories are stated at the lower of cost or net realizable value (“NRV”). Inventories are initially recorded at cost. On a quarterly basis, the Company reviews its inventories that may be stated above NRV and reviews its estimate of the allowance for slow-moving, excess and obsolete inventories (“E&O reserves”). The Company’s E&O reserve estimate is based on management’s review of on-hand inventories compared to their estimated future usage, product demand forecast (including consideration of retail inventory levels, sales and promotions, among other factors), anticipated product selling prices, the expected product lifecycle, and products planned for discontinuation. When considered necessary, the Company makes adjustments to reduce inventory to its NRV with corresponding increases to cost of sales in its consolidated statement of operations. As of December 31, 2015 and 2014, and March 31, 2015, the Company had E&O reserves of $18,266, $6,751 and $4,157, respectively. The E&O reserves’ impact to the Company’s cost of sales was $11,590 and $15,303 for the three and nine months ended December 31, 2015, respectively, and were $3,313 and $5,572 for the three and nine months ended December 31, 2014, respectively. The increases in E&O reserves as of December 31, 2015 and for the three and nine months ended December 31, 2015 were primarily associated with the Company’s recent price reduction of its LeapTV educational video game system and associated content, and the corresponding adjustment to the NRV of its inventory of this product.
|
X |
- References
+ Details
Name: |
us-gaap_InventoryDisclosureAbstract |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:stringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe entire disclosure for inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.6) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6361739&loc=d3e7789-107766
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 6 -Subparagraph a, b, c -Article 5
+ Details
Name: |
us-gaap_InventoryDisclosureTextBlock |
Namespace Prefix: |
us-gaap_ |
Data Type: |
nonnum:textBlockItemType |
Balance Type: |
na |
Period Type: |
duration |
|
v3.3.1.900
Property and Equipment, Net
|
9 Months Ended |
Dec. 31, 2015 |
Property, Plant and Equipment [Abstract] |
|
Property, Plant and Equipment Disclosure [Text Block] |
4. Property and Equipment, Net As of December 31, 2015 and 2014, and March 31, 2015, property and equipment consisted of the following: | | December 31, | | March 31, | | | | 2015 | | 2014 | | 2015 | | Tooling, cards, dies and plates | | $ | 19,092 | | $ | 23,957 | | $ | 23,976 | | Computers and software | | | 45,438 | | | 76,769 | | | 45,782 | | Equipment, furniture and fixtures | | | 6,180 | | | 6,311 | | | 3,769 | | Leasehold improvements | | | 4,086 | | | 4,441 | | | 4,002 | | | | | 74,796 | | | 111,478 | | | 77,529 | | Less: accumulated depreciation | | | (74,367) | | | (73,287) | | | (75,853) | | Total | | $ | 429 | | $ | 38,191 | | $ | 1,676 | | During the quarters ended December 31, 2015, September 30, 2015, June 30, 2015 and March 31, 2015, the Company performed an impairment review of its long-lived assets. As a result, the Company recorded a permanent non-cash impairment charge of $1,086 and $4,970 for the three and nine months ended December 31, 2015, respectively, and $36,461 for the quarter ended March 31, 2015, against its property and equipment, including primarily the Company’s recent investments in its internal business systems and the non-content related website systems costs under its computer and software category. Refer to Note 6 - “Impairment of Long-lived Assets” below for detailed information on the Company’s impairment testing for its long-lived assets.
|
X |
- References
+ Details
Name: |
us-gaap_PropertyPlantAndEquipmentAbstract |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:stringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.13-14) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=51717284&loc=d3e1361-107760
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=51719941&loc=d3e2921-110230
Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6391035&loc=d3e2868-110229
+ Details
Name: |
us-gaap_PropertyPlantAndEquipmentDisclosureTextBlock |
Namespace Prefix: |
us-gaap_ |
Data Type: |
nonnum:textBlockItemType |
Balance Type: |
na |
Period Type: |
duration |
|
v3.3.1.900
Goodwill
|
9 Months Ended |
Dec. 31, 2015 |
Goodwill [Abstract] |
|
Goodwill Disclosure [Text Block] |
5. Goodwill The Company’s goodwill was related to its 1997 acquisition of substantially all the assets and business of its predecessor, LeapFrog RBT, and its 1998 acquisition of substantially all the assets of Explore Technologies. During the quarter ended December 31, 2014, based on various qualitative factors, the Company determined that sufficient indicators existed warranting a review to determine if the fair value of its U.S. reporting unit had been reduced to below its carrying value. These qualitative factors included, among others, the Company’s performance during the 2014 holiday season being significantly lower than anticipated, which included the underperformance of products and product lines newly introduced to the market, and the continuing decrease in trading value of the Company’s Class A common stock and the corresponding decline in the Company’s market capitalization. As a result, the Company performed goodwill impairment test using the required two-step process as of December 31, 2014. The result of the Company’s step one test indicated that the carrying value of the Company’s U.S. reporting unit exceeded its estimated fair value. Accordingly, the Company performed the step two test and concluded that its goodwill was fully impaired and thus recorded a permanent impairment charge of $19,549 during the quarter ended December 31, 2014 in its U.S. segment.
|
X |
- References
+ Details
Name: |
lf_GoodwillAbstract |
Namespace Prefix: |
lf_ |
Data Type: |
xbrli:stringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe entire disclosure for goodwill.
+ References
+ Details
Name: |
us-gaap_GoodwillDisclosureTextBlock |
Namespace Prefix: |
us-gaap_ |
Data Type: |
nonnum:textBlockItemType |
Balance Type: |
na |
Period Type: |
duration |
|
v3.3.1.900
Impairment of Long-lived Assets
|
9 Months Ended |
Dec. 31, 2015 |
Impairment of Long-lived Assets Disclosure [Abstract] |
|
Impairment of Long Lived Assets [Text Block] |
6. Impairment of Long-lived Assets The Company’s long-lived assets include property and equipment, capitalized content costs and other intangible assets. The Company evaluates its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset group may not be recoverable. March 31, 2015 Impairment Testing During the quarter ended March 31, 2015, the Company determined that testing for recoverability of its long-lived assets was required based on continued financial underperformance, and the continued decline of the trading value of its Class A common stock and the corresponding decline in its market capitalization. As a result, the Company performed step one of the impairment test and concluded that its long-lived assets in its U.S. reporting unit were impaired as of March 31, 2015 as their carrying value exceeded the cumulative undiscounted future cash flows that included an estimated residual market valuation. This result was primarily due to the significant decline of the trading value of the Company’s Class A common stock and the corresponding decline in its market capitalization during the fourth quarter of its fiscal year ended March 31, 2015 (“Fiscal 2015”). The Company’s long-lived assets were not considered impaired in its International reporting unit as of March 31, 2015 as their carrying value did not exceed the cumulative undiscounted future cash flows. Accordingly, the Company performed step two of the impairment test and determined the fair value of its U.S. reporting unit using a combination of an income approach and a market approach. Under the income approach, the Company used a discounted cash flow methodology which recognizes that current value is premised on the expected receipt of future economic benefits. Indications of value are developed by discounting projected future net cash flows to their present value at a rate that reflects both the current return requirements of the market and the risks inherent in the specific investment. Under the market based approach, the Company utilized its own information to determine earnings multiples and sales multiples that are used to value its U.S. reporting unit. This analysis yielded a fair value below the carry value of the reporting unit. In general, the difference between the carrying value and the fair value would be allocated on a pro-rata basis to the assets using the relative carrying amounts of those assets. However, the individual assets should not be written down below their respective fair values. As such, the Company determined the fair values of the individual long-lived assets within the asset group and compared those values with the carrying values of those assets to measure the overall impairment amount. The Company determined the value of the capitalized content costs and the other intangible assets using a cost approach analysis, which factors in technological and functional deterioration with a depreciated cost study used as a proxy for the fair value. Based on the result of these analyses, the Company concluded that the estimated fair values of its capitalized content costs and other intangible assets were greater than their carrying value. Therefore, no impairment was recorded against these assets. The Company determined the value of the property and equipment assets using a depreciated replacement cost study which incorporated historical costs, published trends, market supported depreciation curves, and certain adjustments such as indirect costs, level of asset customization and general marketability. Based on significant economic obsolescence associated with these assets, the Company incorporated the valuation premise established at a “highest and best use” assessment, using a value-in-exchange concept. Fair value-in-exchange is defined as the estimated value that may reasonably be expected in an exchange for an asset between a willing buyer and seller in an orderly transaction between market participants as of the valuation date. Based on the results of this study, the Company concluded that the carrying value of its property and equipment assets, including primarily the Company’s recent investments in its internal business systems and the non-content related website systems costs, exceeded their fair value by $36,461, and recorded a permanent impairment charge to these assets. The above mentioned valuation methodologies require significant judgment by management in grouping of assets, selecting an appropriate discount rate, terminal growth rate, weighted average cost of capital, projection of future net cash flows, market exit multiple, and determining fair value of individual assets, which are inherently uncertain. The inputs and assumptions used in this test are classified as Level 3 inputs within the fair value hierarchy. Due to these significant judgments, the fair value of the U.S. reporting unit and its individual assets determined in connection with the long-lived assets impairment test may not necessarily be indicative of the actual value that would be recognized in a future transaction. June 30, 2015 Impairment Testing During the quarter ended June 30, 2015, the Company determined that testing for recoverability of its long-lived assets was again required based on continued financial underperformance, and the continued decline of the trading value of its Class A common stock and the corresponding market capitalization. As a result, the Company performed step one of the impairment test and concluded that its long-lived assets in its U.S. reporting unit were impaired as of June 30, 2015 as their carrying value exceeded the cumulative undiscounted future cash flows that included an estimated residual market valuation. Accordingly, following the same valuation methodologies as applied in the prior quarter, the Company performed step two of the impairment test and determined the fair value of its U.S. reporting unit, then determined the fair values of individual long-lived assets within the asset group, and compared those values with the carrying values of those assets to measure the overall impairment amount. The Company concluded that the estimated fair values of its capitalized content costs and other intangible assets were greater than their carrying value as of June 30, 2015. Therefore, no impairment was recorded against these assets. As a result of the step two impairment test, the Company concluded that the carrying value of its property and equipment assets exceeded their fair value by $2,770 and recorded a permanent impairment charge to these assets. September 30, 2015 Impairment Testing During the quarter ended September 30, 2015, the Company determined that testing for recoverability of its long-lived assets was again required based on continued financial underperformance, and the continued decline of the trading value of its Class A common stock and the corresponding market capitalization. As a result, the Company performed step one of the impairment test and concluded that its long-lived assets in its U.S. reporting unit were impaired as of September 30, 2015 as their carrying value exceeded the cumulative undiscounted future cash flows that included an estimated residual market valuation. Accordingly, the Company performed step two of the impairment test and determined the fair value of its U.S. reporting unit. The Company then determined the fair values of individual long-lived assets within the asset group, and compared those values with the carrying values of those assets to measure the overall impairment amount. The Company concluded that the estimated fair values of its capitalized content costs and other intangible assets were greater than their carrying value as of September 30, 2015. Therefore, no impairment was recorded against these assets. As a result of the step two impairment tests, the Company concluded that the carrying value of its property and equipment assets exceeded their fair value by $1,114 and recorded a permanent impairment charge to these assets. December 31, 2015 Impairment Testing During the quarter ended December 31, 2015, the Company determined that testing for recoverability of its long-lived assets was again required based on continued financial underperformance, and the continued decline of the trading value of its Class A common stock and the corresponding market capitalization. As a result, the Company performed step one of the impairment test and concluded that its long-lived assets in its U.S. reporting unit were impaired as of December 31, 2015 as their carrying value exceeded the cumulative undiscounted future cash flows that included an estimated residual market valuation. Accordingly, the Company performed step two of the impairment test and determined the fair value of its U.S. reporting unit. The Company then determined the fair values of individual long-lived assets within the asset group, and compared those values with the carrying values of those assets to measure the overall impairment amount. As a result of the step two impairment tests, the Company concluded that the carrying value of its property and equipment assets exceeded their fair value by $1,086 and recorded a permanent impairment charge to these assets. The Company performs a quarterly evaluation of capitalized content development costs. For the quarter ended December 31, 2015, the Company’s assessed the recoverability of certain capitalized content by comparing the net carrying value of capitalized content costs to the net realizable value as of December 31, 2015. As a result of this assessment, the Company concluded that the carrying value of certain capitalized content costs exceeded their net realizable value as of December 31, 2015, and as a result, wrote off capitalized content costs of $1,384, primarily related to content associated with LeapTV. Impact on Financial Statements The write off of capitalized content costs of $1,384 for the three and nine months ended December 31, 2015 were recorded and included in the cost of sales. For the three and nine months ended December 31, 2015, the impairment charges of $1,086 and $4,970, respectively, were reported as a separate line item in the consolidated statement of operations. The full impairment charges were recorded against the Company’s long-lived assets under its U.S. reporting unit, and were non-cash in nature and do not directly affect the Company’s current or future liquidity. These permanent impairment charges significantly reduced the carrying value of the Company’s property and equipment, which has resulted and will continue to result in decreases in associated depreciation expenses in future periods. The Company will continue to review the recoverability of its remaining long-lived assets on a quarterly basis, which may result in additional impairment charges if future impairment testing shows that the carrying value of its long-lived assets exceeds their estimated fair values. The Company will continue to review the value of the capitalized content costs and the other intangible assets using a cost approach analysis, which may result in additional write off of capitalized content.
|
X |
- DefinitionThe entire disclosure for the Impairment of Long-lived Assets.
+ References
+ Details
Name: |
lf_ImpairmentOfLongLivedAssetsTextBlock |
Namespace Prefix: |
lf_ |
Data Type: |
nonnum:textBlockItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- References
+ Details
Name: |
lf_ImpairmentOfLonglivedAssetsDisclosureAbstract |
Namespace Prefix: |
lf_ |
Data Type: |
xbrli:stringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
v3.3.1.900
Income Taxes
|
9 Months Ended |
Dec. 31, 2015 |
Income Tax Disclosure [Abstract] |
|
Income Tax Disclosure [Text Block] |
7. Income Taxes The Company’s provision for income taxes and effective tax rates were as follows: | | Three Months Ended December 31, | | | Nine Months Ended December 31, | | | | 2015 | | | 2014 | | | 2015 | | | 2014 | | Provision for income taxes | | $ | 848 | | | $ | 87,200 | | | $ | 801 | | | $ | 76,571 | | Loss before income taxes | | | (43,377) | | | | (37,012) | | | | (104,815) | | | | (66,035) | | Effective tax rate | | | (2.0) | % | | | (235.6) | % | | | (0.8) | % | | | (116.0) | % | The Company’s effective tax rate is affected by recurring items, such as tax benefit or expense relative to the amount of loss incurred or income earned in its domestic and foreign jurisdictions. The Company’s effective tax rate is also affected by discrete items, such as tax benefits attributable to the recognition of previously unrecognized tax benefits, and tax benefit or expense due to changes in valuation allowance, which may occur in any given year but are not consistent from year to year. The Company excludes jurisdictions with tax assets for which no benefit can be recognized from the computation of its effective tax rate. Accordingly, the Company’s domestic loss was excluded from the computation of its effective tax rates for the three and nine months ended December 31, 2015 and 2014. The Company excluded its subsidiary in France from the computation of its effective tax rates for the three and nine month periods ending December 31, 2015, and excluded its subsidiary in Mexico from the computation of its effective tax rates for the three and nine months ended December 31, 2015 and 2014. See “Valuation Allowance” below for detailed information of the changes in valuation allowance for all periods. The Company’s effective tax rate and income tax provision for the three and nine months ended December 31, 2015 were primarily attributable to recording a full non-cash valuation allowance against the deferred tax assets of its subsidiary in France, and tax provisions related to its foreign operations. The Company’s effective tax rates and income tax provisions for the three and nine months ended December 31, 2014 were primarily attributable to recording a full non-cash valuation allowance against its domestic deferred tax assets during those periods. During the three and nine months ended December 31, 2015, the Company recognized $275 and $7,033, respectively, of certain previously unrecognized domestic income tax benefits due to expiration of statutes of limitations, which was neither recognized as a tax benefit nor affected the effective tax rate due to the full valuation allowance recorded against the Company's domestic deferred tax assets. During the three months ended December 31, 2015, the Company did not recognize any previously unrecognized tax benefits related to its foreign operations. During the nine months ended December 31, 2015, the Company recognized $162 of certain previously unrecognized tax benefits due to the settlement of an income tax audit in one of its foreign jurisdictions, which was recognized as a tax benefit and affected the effective tax rate. During the three and nine months ended December 31, 2014, the Company recognized $154 and $604, respectively, of certain previously unrecognized tax benefits, including a release of $37 and $195 of accrued interest and penalties, respectively, due to the expiration of statutes of limitations in some of its foreign jurisdictions, which was recognized as a tax benefit and affected the effective tax rate. The recognition of previously unrecognized tax benefits reduced other long-term tax liabilities. As of December 31, 2015 and 2014, and March 31, 2015, the Company had $9,839, $15,880 and $16,677, respectively, of unrecognized domestic income tax benefits. The Company believes the total amount of unrecognized income tax benefits will not be reduced over the course of the next twelve months. Changes to the total amount of domestic unrecognized tax benefits would not impact the tax provision nor affect the effective tax rate due to the full valuation allowance recorded against the Company’s domestic deferred tax assets. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. The tax provision for the three and nine months ended December 31, 2015 did not include any release of accrued interest and penalties related to uncertain tax positions. The tax provision for the three and nine months ended December 31, 2014 included a release of $37 and $195 of accrued interest and penalties, respectively, related to uncertain tax positions. As of December 31, 2015 and 2014, and March 31, 2015, the Company had no accrued interest and penalties attributable to uncertain tax positions related to its foreign operations. As of December 31, 2015 and 2014, and March 31, 2015, the consolidated current deferred tax assets were $450, $661 and $553, respectively, and the consolidated non-current deferred tax assets were $683, $1,498 and $1,792, respectively. The decreases were primarily due to the full valuation allowances provided against the Company’s deferred tax assets of its French subsidiary during the three months ended December 31, 2015. As of December 31, 2015 and March 31, 2015, the Company had current deferred tax liabilities of $530 and $1,630, respectively, reported as current liabilities, and had non-current deferred tax liabilities of $452 and $323, respectively, reported as long-term liabilities on the consolidated balance sheet. As of December 31, 2014 and 2014, the Company had current deferred tax liabilities of $1,290 and no non-current deferred tax liabilities on the consolidated balance sheet. As of December 31, 2015, the Company had no other non-current tax liabilities. As of March 31, 2015 the Company had other non-current tax liabilities of $162 reported as long-term liabilities on the consolidated balance sheet. Valuation Allowance During the quarter ended December 31, 2015, the Company changed its business strategy for distributing product into its French territories. After weighing all available positive and negative evidence both objective and subjective in nature, the Company determined, at the required more-likely-than-not level of certainty, that its subsidiary in France will not generate future taxable income to realize the benefits of its deferred tax assets. Accordingly, the Company recorded a full non-cash valuation allowance of $575 against the deferred tax assets of its French subsidiary which was recorded as a foreign income tax provision and impacted the Company’s effective tax rate for the three and nine months ended December 31, 2015. During the quarter ended December 31, 2014, the Company evaluated its ability to realize the benefit of its domestic deferred tax assets. The Company’s performance during the 2014 holiday season, being significantly lower than anticipated which included the underperformance of products and product lines newly introduced to the market, resulted in a significant three year cumulative domestic loss position as of December 31, 2014. The Company also considered historic profitability, expected future earnings, carryback and carryforward periods, and tax strategies that could potentially impact the likelihood of realization of deferred tax assets. However, the Company believed there was not sufficient positive evidence to overcome the significant negative evidence. Accordingly, the Company determined, at the required more-likely-than-not level of certainty, that it would not be able to realize the full benefit of its domestic deferred tax assets before they are due to expire and therefore a full valuation allowance was warranted as of December 31, 2014. Accordingly, the Company recorded a full non-cash valuation allowance against its domestic deferred tax assets, of which $90,769 was recorded as income tax provision and impacted the Company’s effective tax rate for the three and nine months ending December 31, 2014. The Company maintained a full valuation allowance against its domestic deferred tax assets as of December 31, 2015 and 2014, and March 31, 2015, respectively. The Company also maintained a full valuation allowance against the deferred tax assets of its subsidiary in Mexico as of December 31, 2015 and 2014, and March 31, 2015, respectively. The Company maintained a full valuation allowance against the deferred tax assets of its subsidiary in France as of December 31, 2015. As of December 31, 2015, the Company also evaluated the need for a valuation allowance against the deferred tax assets of its other foreign jurisdictions, and believes that the benefit of these deferred tax assets will be realized at the required more-likely-than-not level of certainty. Therefore, no valuation allowance has been established against such deferred tax assets as of December 31, 2015. The Company will continue to evaluate all evidence in all jurisdictions in future periods to determine if a change in valuation allowance against its deferred tax assets is warranted. Any changes to the Company’s valuation allowance will affect its effective tax rate, but will not affect the amount of cash paid for income taxes in the foreseeable future.
|
X |
- DefinitionThe entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319
Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319
Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319
+ Details
Name: |
us-gaap_IncomeTaxDisclosureTextBlock |
Namespace Prefix: |
us-gaap_ |
Data Type: |
nonnum:textBlockItemType |
Balance Type: |
na |
Period Type: |
duration |
|
v3.3.1.900
Stock-Based Compensation
|
9 Months Ended |
Dec. 31, 2015 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
|
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] |
8. Stock-Based Compensation The Company currently has outstanding two types of stock-based compensation awards to its employees, directors and certain consultants: stock options and restricted stock units (“RSUs”), which are more fully described in Note 14 to the Consolidated Financial Statements: Share-Based Compensation in its 2015 Form 10-K. 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 December 31, 2015: | | Stock | | | | | Total | | | | Options | | RSUs | | Awards | | Outstanding at March 31, 2015 | | | 6,838 | | | 1,757 | | | 8,595 | | Grants | | | 1,561 | | | 1,442 | | | 3,003 | | Exercises | | | - | | | (500) | | | (500) | | Retired or forfeited | | | (753) | | | (333) | | | (1,086) | | Outstanding at December 31, 2015 | | | 7,646 | | | 2,366 | | | 10,012 | | | | | | | | | | | | | Total shares available for future grant at December 31, 2015 | | | | | | | | | 7,838 | | As of December 31, 2015, the total shares available for future grant under the ESPP were 388. Impact of stock-based compensation The following table summarizes stock-based compensation expense charged to selling, general and administrative (“SG&A”) and research and development (“R&D”) expenses for the three and nine months ended December 31, 2015 and 2014: | | Three Months Ended December 31, | | Nine Months Ended December 31, | | | | 2015 | | 2014 | | 2015 | | 2014 | | SG&A: | | | | | | | | | | | | | | Stock options | | $ | 1,058 | | $ | 1,390 | | $ | 3,352 | | $ | 4,177 | | RSUs | | | 941 | | | 1,130 | | | 3,046 | | | 3,108 | | ESPP | | | 30 | | | 99 | | | 74 | | | 262 | | Total SG&A | | | 2,029 | | | 2,619 | | | 6,472 | | | 7,547 | | R&D: | | | | | | | | | | | | | | Stock options | | | 142 | | | 206 | | | 513 | | | 634 | | RSUs | | | 38 | | | 171 | | | 340 | | | 495 | | Total R&D | | | 180 | | | 377 | | | 853 | | | 1,129 | | Total expense | | $ | 2,209 | | $ | 2,996 | | $ | 7,325 | | $ | 8,676 | | 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 with only a service condition is estimated using the Black-Scholes option pricing model with the following weighted-average assumptions for the three and nine months ended December 31, 2015 and 2014: | | Three Months Ended December 31, | | Nine Months Ended December 31, | | | | 2015 | | 2014 | | 2015 | | 2014 | | Expected term (years) | | | 4.75 | | | 4.60 | | | 4.82 | | | 4.70 | | Volatility | | | 52.9 | % | | 59.7 | % | | 53.2 | % | | 59.9 | % | Risk-free interest rate | | | 1.62 | % | | 1.41 | % | | 1.32 | % | | 1.56 | % | 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 December 31, 2015 and 2014: | | Three Months Ended December 31, | | Nine Months Ended December 31, | | | | 2015 | | 2014 | | 2015 | | 2014 | | Expected term (years) | | | 0.49 | | | 0.49 | | | 0.49 | | | 0.49 | | Volatility | | | 67.2 | % | | 42.0 | % | | 67.2% - 71.2 | % | | 34.8%-42.0 | % | Risk-free interest rate | | | 0.26 | % | | 0.05 | % | | 0.08% - 0.26 | % | | 0.05% - 0.08 | % | Expected dividend yield | | | - | % | | - | % | | - | % | | - | % | Options to purchase shares of the Company’s common stock and RSUs, totaling 11,229 and 23,443 were excluded from the calculation of diluted net income per share for the three and nine months ended December 31, 2015 and 8,980 and 9,070 for the three and nine months ended December 31 2014, respectively, as the effect would have been antidilutive.
|
X |
- DefinitionThe entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=51659978&loc=d3e25284-112666
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901
Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901
Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901
Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14
+ Details
Name: |
us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock |
Namespace Prefix: |
us-gaap_ |
Data Type: |
nonnum:textBlockItemType |
Balance Type: |
na |
Period Type: |
duration |
|
v3.3.1.900
Segment Reporting
|
9 Months Ended |
Dec. 31, 2015 |
Segment Reporting [Abstract] |
|
Segment Reporting Disclosure [Text Block] |
9. 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 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 platforms, related content and learning toys, which are sold primarily through retailers, distributors, and directly to consumers via the LeapFrog App Center (“App Center”) in the U.S. The App Center includes both content developed by the Company and content from third parties that the Company curates and distributes. | | ⋅ | 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. This segment markets and sells the Company’s products to national and regional mass-market and specialty retailers and other outlets through the Company’s offices outside of the U.S., through distributors in various international markets, and directly to consumers via the App Center. | The table below shows certain information by segment for the three and nine months ended December 31, 2015 and 2014: | | Three Months Ended December 31, | | Nine Months Ended December 31, | | | | 2015 | | 2014 | | 2015 | | 2014 | | Net sales: | | | | | | | | | | | | | | United States | | $ | 58,560 | | $ | 99,183 | | $ | 132,018 | | $ | 207,449 | | International | | | 24,533 | | | 45,415 | | | 56,995 | | | 97,771 | | Totals | | $ | 83,093 | | $ | 144,598 | | $ | 189,013 | | $ | 305,220 | | Income (loss) from operations: | | | | | | | | | | | | | | United States | | $ | (38,650) | | $ | (39,822) | | $ | (101,751) | | $ | (73,977) | | International | | | (4,434) | | | 3,332 | | | (2,415) | | | 8,633 | | Totals | | $ | (43,084) | | $ | (36,490) | | $ | (104,166) | | $ | (65,344) | | For the three and nine months ended December 31, 2015 and 2014, the U.S. and the United Kingdom individually accounted for more than 10% of the Company’s consolidated net sales, respectively.
|
X |
- References
+ Details
Name: |
us-gaap_SegmentReportingAbstract |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:stringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9038-108599
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8971-108599
Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8595-108599
Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8380-108599
Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8933-108599
Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8844-108599
Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8984-108599
Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9031-108599
Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9054-108599
Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8538-108599
Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8864-108599
Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8924-108599
Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8906-108599
+ Details
Name: |
us-gaap_SegmentReportingDisclosureTextBlock |
Namespace Prefix: |
us-gaap_ |
Data Type: |
nonnum:textBlockItemType |
Balance Type: |
na |
Period Type: |
duration |
|
v3.3.1.900
Commitments and Contingencies
|
9 Months Ended |
Dec. 31, 2015 |
Commitments and Contingencies Disclosure [Abstract] |
|
Commitments and Contingencies Disclosure [Text Block] |
10. Commitments and Contingencies Legal Proceedings Federal Securities Class Action A consolidated securities class action captioned In re LeapFrog Enterprises, Inc. Securities Litigation, Case No. 3:15-CV-00347-EMC, is pending in the United States District Court for the Northern District of California against LeapFrog and two of its officers, John Barbour and Raymond L. Arthur (the “Class Action”). The consolidated complaint, filed on June 24, 2015, alleges that defendants violated Section 10(b) the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and SEC Rule 10b-5, by making materially false or misleading statements regarding the Company’s financial projections, financial results, and development of new products between May 5, 2014 and June 11, 2015. The complaint also alleges that defendants are liable as control-person under Section 20(a) of the Exchange Act. The complaint seeks class certification, an award of unspecified compensatory damages, an award of reasonable costs and expenses, including attorneys’ fees, and other further relief as the Court may deem just and proper. The foregoing is a summary of the allegations in the complaint and is subject to the text of the complaint, which is on file with the Court. Based on a review of the allegations, the Company and the individual defendants believe that the plaintiffs’ allegations are without merit, and intend to vigorously defend against the claims. A hearing on the Company’s motion to dismiss was held on October 8, 2015. At the hearing on the defendants’ motions to dismiss, the Court stated that it perceived significant problems with the plaintiff’s allegations and directed the plaintiff to file a further amended complaint that pleads more particularized facts. The amended complaint was filed on December 4, 2015. The Company filed a motion to dismiss the amended complaint on January 15, 2016. The Court is scheduled to hear our motion to dismiss on March 24, 2016. Shareholder Derivative Action A consolidated shareholder derivative action captioned In re LeapFrog Enterprises, Inc. Derivative Litigation, Lead Case No. RG15757609 (the “Derivative Action”) is pending in the Superior Court of California, County of Alameda, purportedly on behalf of LeapFrog against current and former members of our board of directors and certain of our officers. The various plaintiffs in the Derivative Action, who filed their complaints between February 5 and July 13, 2015, allege that the defendants breached their fiduciary duties, committed waste, were unjustly enriched, and aided and abetted fiduciary violations by causing LeapFrog to issue materially inaccurate financial guidance and making false and misleading statements about the Company’s business between May 5, 2014 and June 11, 2015. The statements at issue in the Derivative Action are substantially similar to those at issue in the Class Action described above. The plaintiffs in the Derivative Action seek, purportedly on behalf of LeapFrog, an unspecified award of damages including, but not limited to, fees and costs associated with the pending Class Action, various corporate governance reforms, an award of restitution, an award of reasonable costs and expenses, including attorneys’ fees, and other further relief as the Court may deem just and proper. The foregoing is a summary of the allegations in the complaints filed in the Derivative Action, and is subject to the text of the plaintiffs’ complaints, which are on file with the Court. Based on a review of the plaintiffs’ allegations, the Company believes that the plaintiffs have not demonstrated standing to sue on its behalf. The Court has granted the parties’ stipulation to defer litigation activity, subject to certain conditions and pending certain developments in the Class Action. Patent Litigation On February 26, 2014, a patent holding company named Celebrate International, LLC (“Celebrate”) sued LeapFrog, Target, Wal-Mart, Amazon and Toys R Us in the United States District Court for the District of Delaware alleging that the Company’s Tag and LeapReader product lines and related content infringe U.S. Patent Nos. 6,256,398 and 6,819,776. Celebrate is seeking unspecified monetary damages and attorney’s fees. The Company and the accused retailers filed answers to the suit denying infringement and alleging that the asserted patent claims are invalid. The Markman hearing was held on January 22, 2015 and on August 28, 2015 the Court issued a claim construction order. The trial date has been indefinitely postponed pending resolution of plaintiff’s attempt to obtain fact discovery in Sweden from Anoto AB, the licensor of optical scanning technology used in the Tag and LeapReader products. The Company believes that the claims are without merit and intends to contest the case vigorously. Given the status of the case and the uncertainties inherent in patent litigation, possible losses, if any, associated with the case are not reasonably estimable at this time. Other Matters In addition, from time to time, the Company is subject to other 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 disputes and a variety of other matters. The Company records a liability when the Company believes that it is both probable that a loss will be incurred, and the amount can be reasonably estimated. In the opinion of management, based on current knowledge, it is not reasonably possible that any of the pending legal proceedings or claims will have a material adverse impact 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. Commitments As of December 31, 2015, the Company had commitments to purchase inventory under normal supply arrangements totaling approximately $5,750. In addition, as of December 31, 2015, the Company had two stand-by-letters of credit totaling $236 issued under its revolving credit facility as credit support for potential future payment obligations, which were off-balance sheet arrangements. At December 31, 2015, the Company had $20 million outstanding under the revolving credit facility.
|
X |
- References
+ Details
Name: |
us-gaap_CommitmentsAndContingenciesDisclosureAbstract |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:stringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe entire disclosure for commitments and contingencies.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 460 -SubTopic 10 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=51674963&loc=d3e12565-110249
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 450 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=25496072&loc=d3e14435-108349
Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.25) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682
Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 440 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6394976&loc=d3e25287-109308
+ Details
Name: |
us-gaap_CommitmentsAndContingenciesDisclosureTextBlock |
Namespace Prefix: |
us-gaap_ |
Data Type: |
nonnum:textBlockItemType |
Balance Type: |
na |
Period Type: |
duration |
|
v3.3.1.900
Subsequent Events
|
9 Months Ended |
Dec. 31, 2015 |
Subsequent Events [Abstract] |
|
Subsequent Events [Text Block] |
11. Subsequent Events On February 5, 2016, the Company entered into an Agreement and Plan of Merger with VTech Holdings Limited (“VTech”) and Bonita Merger Sub, L.L.C. a wholly owned subsidiary of VTech Holdings (“Acquisition Sub”). Pursuant to the Merger Agreement, and upon the terms and subject to the conditions described therein, Acquisition Sub has agreed to commence a tender offer (the “Offer”), as promptly as practicable but in any event no later than March 3, 2016, to purchase the outstanding shares of Class A common stock of the Company and the outstanding shares of Class B common stock of the Company at a purchase price per Share of US $1.00 (the “Offer Price”), net to the seller thereof in cash, without interest. More details concerning the terms and conditions of the Merger and the Merger Agreement may be found in the Company’s Form 8-K and exhibits thereto filed with the SEC on February 5, 2016, which is incorporated by reference herein. Commitments During January 2016, the Company paid down $20 million on its $75 million asset-based revolving credit facility that was outstanding as of December 31, 2015.
|
X |
- References
+ Details
Name: |
us-gaap_SubsequentEventsAbstract |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:stringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.
+ References
+ Details
Name: |
us-gaap_SubsequentEventsTextBlock |
Namespace Prefix: |
us-gaap_ |
Data Type: |
nonnum:textBlockItemType |
Balance Type: |
na |
Period Type: |
duration |
|
v3.3.1.900
Other Items
|
9 Months Ended |
Dec. 31, 2015 |
Other Items [Abstract] |
|
Other Items [Text Block] |
12. Other Items On September 4, 2015, the Company was notified by the New York Stock Exchange (“NYSE”) that the average closing price of the Company’s common stock had fallen below $1.00 per share over a consecutive 30 trading-day period, which is the minimum average share price for continued listing on NYSE under Rule 802.01C of the NYSE Listed Company Manual. Under NYSE rules, the Company has six months following receipt of the notification to regain compliance with the minimum share price requirement. On September 10, 2015, the Company notified the NYSE of its intent to cure the deficiency and restore its compliance with the listing standards of Section 802.01C. The NYSE notice has no immediate impact on the listing of the Company’s common stock, which will continue to be listed and traded on the NYSE during this period, subject to the Company’s compliance with other listing standards.
|
X |
- References
+ Details
Name: |
lf_OtherItemsAbstract |
Namespace Prefix: |
lf_ |
Data Type: |
xbrli:stringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionDisclosure for an other items.
+ References
+ Details
Name: |
lf_OtherItemsTextBlock |
Namespace Prefix: |
lf_ |
Data Type: |
nonnum:textBlockItemType |
Balance Type: |
na |
Period Type: |
duration |
|
v3.3.1.900
Fair Value of Financial Instruments and Investments (Tables)
|
9 Months Ended |
Dec. 31, 2015 |
Fair Value Disclosures [Abstract] |
|
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] |
The following table presents the Company’s fair value hierarchy for assets and liabilities measured at fair value on a recurring basis as of December 31, 2015 and 2014, and March 31, 2015: | | Estimated Fair Value Measurements | | | | Carrying Value | | Quoted Prices in Active Markets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | December 31, 2015: | | | | | | | | | | | | | | Financial Assets: | | | | | | | | | | | | | | Money market funds and certificate of deposit | | $ | 19,484 | | $ | 19,484 | | $ | - | | $ | - | | Collateral certificates of deposit * | | | 10,000 | | | 10,000 | | | - | | | - | | Forward currency contracts | | | 10 | | | - | | | 10 | | | - | | Total financial assets | | $ | 29,494 | | $ | 29,484 | | $ | 10 | | $ | - | | December 31, 2014: | | | | | | | | | | | | | | Financial Assets: | | | | | | | | | | | | | | Money market funds and certificate of deposit | | $ | 48 | | $ | 48 | | $ | - | | $ | - | | Forward currency contracts | | | 69 | | | - | | | 69 | | | - | | Total financial assets | | $ | 117 | | $ | 48 | | $ | 69 | | $ | - | | March 31, 2015: | | | | | | | | | | | | | | Financial Assets: | | | | | | | | | | | | | | Money market funds and certificate of deposit | | $ | 62,810 | | $ | 62,810 | | $ | - | | $ | - | | Collateral certificates of deposit * | | | 20,000 | | | 20,000 | | | - | | | - | | Forward currency contracts | | | 22 | | | - | | | 22 | | | - | | Total financial assets | | $ | 82,832 | | $ | 82,810 | | $ | 22 | | $ | - | | | * | These certificates of deposit were collateral under the Company's asset-based revolving credit facility arrangement. |
|
X |
- References
+ Details
Name: |
us-gaap_FairValueDisclosuresAbstract |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:stringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionTabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19190-110258
+ Details
Name: |
us-gaap_ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock |
Namespace Prefix: |
us-gaap_ |
Data Type: |
nonnum:textBlockItemType |
Balance Type: |
na |
Period Type: |
duration |
|
v3.3.1.900
Inventories (Tables)
|
9 Months Ended |
Dec. 31, 2015 |
Inventory Disclosure [Abstract] |
|
Schedule of Inventory, Current [Table Text Block] |
The Company’s inventories, stated on a first-in, first-out basis at the lower of cost or market, were as follows as of December 31, 2015 and 2014, and March 31, 2015: | | December 31, | | March 31, | | | | 2015 | | 2014 | | 2015 | | Raw materials | | $ | 2,149 | | $ | 3,782 | | $ | 3,120 | | Finished goods | | | 36,377 | | | 74,014 | | | 68,807 | | Total | | $ | 38,526 | | $ | 77,796 | | $ | 71,927 | |
|
X |
- References
+ Details
Name: |
us-gaap_InventoryDisclosureAbstract |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:stringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionTabular disclosure of the carrying amount as of the balance sheet date of merchandise, goods, commodities, or supplies held for future sale or to be used in manufacturing, servicing or production process.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6361739&loc=d3e7789-107766
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 2 -Paragraph 6 -Subparagraph a,b,c -Article 5
+ Details
Name: |
us-gaap_ScheduleOfInventoryCurrentTableTextBlock |
Namespace Prefix: |
us-gaap_ |
Data Type: |
nonnum:textBlockItemType |
Balance Type: |
na |
Period Type: |
duration |
|
v3.3.1.900
Property and Equipment, Net (Tables)
|
9 Months Ended |
Dec. 31, 2015 |
Property, Plant and Equipment [Abstract] |
|
Property, Plant and Equipment [Table Text Block] |
As of December 31, 2015 and 2014, and March 31, 2015, property and equipment consisted of the following: | | December 31, | | March 31, | | | | 2015 | | 2014 | | 2015 | | Tooling, cards, dies and plates | | $ | 19,092 | | $ | 23,957 | | $ | 23,976 | | Computers and software | | | 45,438 | | | 76,769 | | | 45,782 | | Equipment, furniture and fixtures | | | 6,180 | | | 6,311 | | | 3,769 | | Leasehold improvements | | | 4,086 | | | 4,441 | | | 4,002 | | | | | 74,796 | | | 111,478 | | | 77,529 | | Less: accumulated depreciation | | | (74,367) | | | (73,287) | | | (75,853) | | Total | | $ | 429 | | $ | 38,191 | | $ | 1,676 | |
|
X |
- References
+ Details
Name: |
us-gaap_PropertyPlantAndEquipmentAbstract |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:stringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionTabular disclosure of physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, balances by class of assets, depreciation and depletion expense and method used, including composite depreciation, and accumulated deprecation.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.13) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6391035&loc=d3e2868-110229
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 13 -Subparagraph b -Article 5
+ Details
Name: |
us-gaap_PropertyPlantAndEquipmentTextBlock |
Namespace Prefix: |
us-gaap_ |
Data Type: |
nonnum:textBlockItemType |
Balance Type: |
na |
Period Type: |
duration |
|
v3.3.1.900
X |
- DefinitionTabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319
+ Details
Name: |
us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock |
Namespace Prefix: |
us-gaap_ |
Data Type: |
nonnum:textBlockItemType |
Balance Type: |
na |
Period Type: |
duration |
|
v3.3.1.900
Stock-Based Compensation (Tables)
|
9 Months Ended |
Dec. 31, 2015 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
|
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] |
The table below summarizes award activity for the nine months ended December 31, 2015: | | Stock | | | | | Total | | | | Options | | RSUs | | Awards | | Outstanding at March 31, 2015 | | | 6,838 | | | 1,757 | | | 8,595 | | Grants | | | 1,561 | | | 1,442 | | | 3,003 | | Exercises | | | - | | | (500) | | | (500) | | Retired or forfeited | | | (753) | | | (333) | | | (1,086) | | Outstanding at December 31, 2015 | | | 7,646 | | | 2,366 | | | 10,012 | | | | | | | | | | | | | Total shares available for future grant at December 31, 2015 | | | | | | | | | 7,838 | |
|
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block] |
The following table summarizes stock-based compensation expense charged to selling, general and administrative (“SG&A”) and research and development (“R&D”) expenses for the three and nine months ended December 31, 2015 and 2014: | | Three Months Ended December 31, | | Nine Months Ended December 31, | | | | 2015 | | 2014 | | 2015 | | 2014 | | SG&A: | | | | | | | | | | | | | | Stock options | | $ | 1,058 | | $ | 1,390 | | $ | 3,352 | | $ | 4,177 | | RSUs | | | 941 | | | 1,130 | | | 3,046 | | | 3,108 | | ESPP | | | 30 | | | 99 | | | 74 | | | 262 | | Total SG&A | | | 2,029 | | | 2,619 | | | 6,472 | | | 7,547 | | R&D: | | | | | | | | | | | | | | Stock options | | | 142 | | | 206 | | | 513 | | | 634 | | RSUs | | | 38 | | | 171 | | | 340 | | | 495 | | Total R&D | | | 180 | | | 377 | | | 853 | | | 1,129 | | Total expense | | $ | 2,209 | | $ | 2,996 | | $ | 7,325 | | $ | 8,676 | |
|
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] |
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 with only a service condition is estimated using the Black-Scholes option pricing model with the following weighted-average assumptions for the three and nine months ended December 31, 2015 and 2014: | | Three Months Ended December 31, | | Nine Months Ended December 31, | | | | 2015 | | 2014 | | 2015 | | 2014 | | Expected term (years) | | | 4.75 | | | 4.60 | | | 4.82 | | | 4.70 | | Volatility | | | 52.9 | % | | 59.7 | % | | 53.2 | % | | 59.9 | % | Risk-free interest rate | | | 1.62 | % | | 1.41 | % | | 1.32 | % | | 1.56 | % | Expected dividend yield | | | - | % | | - | % | | - | % | | - | % |
|
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions [Table Text Block] |
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 December 31, 2015 and 2014: | | Three Months Ended December 31, | | Nine Months Ended December 31, | | | | 2015 | | 2014 | | 2015 | | 2014 | | Expected term (years) | | | 0.49 | | | 0.49 | | | 0.49 | | | 0.49 | | Volatility | | | 67.2 | % | | 42.0 | % | | 67.2% - 71.2 | % | | 34.8%-42.0 | % | Risk-free interest rate | | | 0.26 | % | | 0.05 | % | | 0.08% - 0.26 | % | | 0.05% - 0.08 | % | Expected dividend yield | | | - | % | | - | % | | - | % | | - | % |
|
X |
- DefinitionTabular disclosure of the amount of total share-based compensation cost, including the amounts attributable to each share-based compensation plan and any related tax benefits.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(1) -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901
+ Details
Name: |
us-gaap_ScheduleOfCompensationCostForShareBasedPaymentArrangementsAllocationOfShareBasedCompensationCostsByPlanTableTextBlock |
Namespace Prefix: |
us-gaap_ |
Data Type: |
nonnum:textBlockItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionTabular disclosure of the number and weighted-average exercise prices (or conversion ratios) for share options (or share units) that were outstanding at the beginning and end of the year, vested and expected to vest, exercisable or convertible at the end of the year, and the number of share options or share units that were granted, exercised or converted, forfeited, and expired during the year.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c)(1) -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901
+ Details
Name: |
us-gaap_ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock |
Namespace Prefix: |
us-gaap_ |
Data Type: |
nonnum:textBlockItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionTabular disclosure of the significant assumptions used during the year to estimate the fair value of employee stock purchase plans, including, but not limited to: (a) expected term, (b) expected volatility of the entity's shares, (c) expected dividends, (d) risk-free rate(s), and (e) discount for post-vesting restrictions.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (f)(2) -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901
+ Details
Name: |
us-gaap_ScheduleOfShareBasedPaymentAwardEmployeeStockPurchasePlanValuationAssumptionsTableTextBlock |
Namespace Prefix: |
us-gaap_ |
Data Type: |
nonnum:textBlockItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionTabular disclosure of the significant assumptions used during the year to estimate the fair value of stock options, including, but not limited to: (a) expected term of share options and similar instruments, (b) expected volatility of the entity's shares, (c) expected dividends, (d) risk-free rate(s), and (e) discount for post-vesting restrictions.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (f)(2) -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901
+ Details
Name: |
us-gaap_ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock |
Namespace Prefix: |
us-gaap_ |
Data Type: |
nonnum:textBlockItemType |
Balance Type: |
na |
Period Type: |
duration |
|
v3.3.1.900
Segment Reporting (Tables)
|
9 Months Ended |
Dec. 31, 2015 |
Segment Reporting [Abstract] |
|
Schedule of Segment Reporting Information, by Segment [Table Text Block] |
The table below shows certain information by segment for the three and nine months ended December 31, 2015 and 2014: | | Three Months Ended December 31, | | Nine Months Ended December 31, | | | | 2015 | | 2014 | | 2015 | | 2014 | | Net sales: | | | | | | | | | | | | | | United States | | $ | 58,560 | | $ | 99,183 | | $ | 132,018 | | $ | 207,449 | | International | | | 24,533 | | | 45,415 | | | 56,995 | | | 97,771 | | Totals | | $ | 83,093 | | $ | 144,598 | | $ | 189,013 | | $ | 305,220 | | Income (loss) from operations: | | | | | | | | | | | | | | United States | | $ | (38,650) | | $ | (39,822) | | $ | (101,751) | | $ | (73,977) | | International | | | (4,434) | | | 3,332 | | | (2,415) | | | 8,633 | | Totals | | $ | (43,084) | | $ | (36,490) | | $ | (104,166) | | $ | (65,344) | |
|
X |
- DefinitionTabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8906-108599
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8813-108599
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8721-108599
Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13816-109267
Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8736-108599
+ Details
Name: |
us-gaap_ScheduleOfSegmentReportingInformationBySegmentTextBlock |
Namespace Prefix: |
us-gaap_ |
Data Type: |
nonnum:textBlockItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- References
+ Details
Name: |
us-gaap_SegmentReportingAbstract |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:stringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
v3.3.1.900
Fair Value of Financial Instruments and Investments (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Financial Assets: |
|
|
|
|
Forward currency contracts |
|
$ 10
|
$ 22
|
$ 69
|
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] |
|
|
|
|
Financial Assets: |
|
|
|
|
Money market funds and certificate of deposit |
|
19,484
|
62,810
|
48
|
Collateral certificates of deposit |
[1] |
10,000
|
20,000
|
|
Forward currency contracts |
|
0
|
0
|
0
|
Total financial assets |
|
29,484
|
82,810
|
48
|
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] |
|
|
|
|
Financial Assets: |
|
|
|
|
Money market funds and certificate of deposit |
|
0
|
0
|
0
|
Collateral certificates of deposit |
[1] |
0
|
0
|
|
Forward currency contracts |
|
10
|
22
|
69
|
Total financial assets |
|
10
|
22
|
69
|
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] |
|
|
|
|
Financial Assets: |
|
|
|
|
Money market funds and certificate of deposit |
|
0
|
0
|
0
|
Collateral certificates of deposit |
[1] |
0
|
0
|
|
Forward currency contracts |
|
0
|
0
|
0
|
Total financial assets |
|
0
|
0
|
0
|
Fair Value, Measurements, Recurring [Member] | Reported Value Measurement [Member] |
|
|
|
|
Financial Assets: |
|
|
|
|
Money market funds and certificate of deposit |
|
19,484
|
62,810
|
48
|
Collateral certificates of deposit |
[1] |
10,000
|
20,000
|
|
Forward currency contracts |
|
10
|
22
|
69
|
Total financial assets |
|
$ 29,494
|
$ 82,832
|
$ 117
|
|
|
X |
- DefinitionFair value portion of collateral certificates of deposit as of balance-sheet date.
+ References
+ Details
Name: |
lf_CollateralCertificatesOfDepositFairValueDisclosure |
Namespace Prefix: |
lf_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
instant |
|
X |
- DefinitionFair value portion of probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258
+ Details
Name: |
us-gaap_AssetsFairValueDisclosure |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
instant |
|
X |
- References
+ Details
Name: |
us-gaap_AssetsFairValueDisclosureAbstract |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:stringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionFair value portion of currency on hand as well as demand deposits with banks or financial institutions. Includes other kinds of accounts that have the general characteristics of demand deposits. Also includes short-term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Cash -URI http://asc.fasb.org/extlink&oid=6506951
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Cash Equivalents -URI http://asc.fasb.org/extlink&oid=6507016
+ Details
Name: |
us-gaap_CashAndCashEquivalentsFairValueDisclosure |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
instant |
|
X |
- DefinitionFair value portion of asset contracts related to the exchange of different currencies, including, but not limited to, foreign currency options, forward contracts, and swaps.
+ References
+ Details
Name: |
us-gaap_ForeignCurrencyContractAssetFairValueDisclosure |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
instant |
|
X |
- Details
Name: |
us-gaap_FairValueByMeasurementFrequencyAxis=us-gaap_FairValueMeasurementsRecurringMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
us-gaap_FairValueByMeasurementBasisAxis=us-gaap_CarryingReportedAmountFairValueDisclosureMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
v3.3.1.900
Fair Value of Financial Instruments and Investments (Details Textual) - USD ($) $ in Thousands |
9 Months Ended |
|
|
Dec. 31, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] |
|
|
|
Foreign Currency Contract, Asset, Fair Value Disclosure |
$ 10
|
$ 22
|
$ 69
|
Foreign Exchange Forward [Member] |
|
|
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] |
|
|
|
Derivative, Term of Contract |
1 month
|
|
|
Derivative, Notional Amount |
$ 2,507
|
$ 4,760
|
$ 37,927
|
X |
- DefinitionAggregate notional amount specified by the derivative(s). Expressed as an absolute value.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Article 12 -Section 13 -Sentence Column B
+ Details
Name: |
invest_DerivativeNotionalAmount |
Namespace Prefix: |
invest_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
na |
Period Type: |
instant |
|
X |
- DefinitionPeriod the derivative contract is outstanding, in 'PnYnMnDTnHnMnS' format, for example, 'P1Y5M13D' represents the reported fact of one year, five months, and thirteen days.
+ References
+ Details
Name: |
us-gaap_DerivativeTermOfContract |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:durationItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionLine items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.
+ References
+ Details
Name: |
us-gaap_FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisLineItems |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:stringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionFair value portion of asset contracts related to the exchange of different currencies, including, but not limited to, foreign currency options, forward contracts, and swaps.
+ References
+ Details
Name: |
us-gaap_ForeignCurrencyContractAssetFairValueDisclosure |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
instant |
|
X |
- Details
Name: |
us-gaap_DerivativeInstrumentRiskAxis=us-gaap_ForeignExchangeForwardMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
v3.3.1.900
Inventories (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Raw materials |
$ 2,149
|
$ 3,120
|
$ 3,782
|
Finished goods |
36,377
|
68,807
|
74,014
|
Total |
$ 38,526
|
$ 71,927
|
$ 77,796
|
X |
- DefinitionCarrying amount, net of valuation reserves and adjustments, as of the balance sheet date of merchandise or goods held by the company that are readily available for sale.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.6(a)(1)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 330 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 5.BB) -URI http://asc.fasb.org/extlink&oid=27011343&loc=d3e100047-122729
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 5 -Section BB
+ Details
Name: |
us-gaap_InventoryFinishedGoodsNetOfReserves |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
instant |
|
X |
- DefinitionAmount after valuation and LIFO reserves of inventory expected to be sold, or consumed within one year or operating cycle, if longer.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.6(a)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 330 -SubTopic 10 -Section 35 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=51655945&loc=d3e3927-108312
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section 45 -Paragraph 1 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=28358313&loc=d3e6676-107765
+ Details
Name: |
us-gaap_InventoryNet |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
instant |
|
X |
- DefinitionCarrying amount, net of valuation reserves and adjustments, as of the balance sheet date of unprocessed items to be consumed in the manufacturing or production process.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 330 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 5.BB) -URI http://asc.fasb.org/extlink&oid=27011343&loc=d3e100047-122729
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.6(a)(4)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 5 -Section BB
+ Details
Name: |
us-gaap_InventoryRawMaterialsNetOfReserves |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
instant |
|
v3.3.1.900
Inventories (Details Textual) - USD ($) $ in Thousands |
3 Months Ended |
9 Months Ended |
|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Mar. 31, 2015 |
Inventory Valuation Reserves |
$ 18,266
|
$ 6,751
|
$ 18,266
|
$ 6,751
|
$ 4,157
|
Inventory Write-down |
$ 11,590
|
$ 3,313
|
$ 15,303
|
$ 5,572
|
|
X |
- DefinitionAmount of valuation reserve for inventory.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 330 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 5.BB) -URI http://asc.fasb.org/extlink&oid=27011343&loc=d3e100047-122729
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.6(a)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 4 -Subparagraph (SX 210.12-09) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e24092-122690
Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 330 -SubTopic 10 -Section 35 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=51655945&loc=d3e3927-108312
+ Details
Name: |
us-gaap_InventoryValuationReserves |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
instant |
|
X |
- DefinitionCharge to cost of goods sold that represents the reduction of the carrying amount of inventory, generally attributable to obsolescence or market conditions.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 330 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=28360613&loc=d3e4542-108314
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 225 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SX 210.5-03.2) -URI http://asc.fasb.org/extlink&oid=26872669&loc=d3e20235-122688
+ Details
Name: |
us-gaap_InventoryWriteDown |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
duration |
|
v3.3.1.900
Property and Equipment, Net (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Property, Plant and Equipment, Gross, Total |
$ 74,796
|
$ 77,529
|
$ 111,478
|
Less: accumulated depreciation |
(74,367)
|
(75,853)
|
(73,287)
|
Total |
429
|
1,676
|
38,191
|
Tooling, cards, dies and plates [Member] |
|
|
|
Property, Plant and Equipment, Gross, Total |
19,092
|
23,976
|
23,957
|
Computers and software [Member] |
|
|
|
Property, Plant and Equipment, Gross, Total |
45,438
|
45,782
|
76,769
|
Equipment, furniture and fixtures [Member] |
|
|
|
Property, Plant and Equipment, Gross, Total |
6,180
|
3,769
|
6,311
|
Leasehold improvements [Member] |
|
|
|
Property, Plant and Equipment, Gross, Total |
$ 4,086
|
$ 4,002
|
$ 4,441
|
X |
- DefinitionAmount of accumulated depreciation, depletion and amortization for physical assets used in the normal conduct of business to produce goods and services.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=6391035&loc=d3e2868-110229
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.14) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682
+ Details
Name: |
us-gaap_AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
instant |
|
X |
- DefinitionAmount before accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=6391035&loc=d3e2868-110229
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.13) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682
+ Details
Name: |
us-gaap_PropertyPlantAndEquipmentGross |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
instant |
|
X |
- DefinitionAmount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.13) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6391035&loc=d3e2868-110229
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 13 -Subparagraph a -Article 5
Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 8 -Article 7
+ Details
Name: |
us-gaap_PropertyPlantAndEquipmentNet |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
instant |
|
X |
- Details
Name: |
us-gaap_PropertyPlantAndEquipmentByTypeAxis=lf_ComputersAndSoftwareMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
us-gaap_PropertyPlantAndEquipmentByTypeAxis=lf_EquipmentFurnitureAndFixturesMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
us-gaap_PropertyPlantAndEquipmentByTypeAxis=us-gaap_LeaseholdImprovementsMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
v3.3.1.900
Property and Equipment, Net (Details Textual) - USD ($) $ in Thousands |
3 Months Ended |
6 Months Ended |
9 Months Ended |
Dec. 31, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2015 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] |
|
|
|
|
|
|
|
Impairment of Long-Lived Assets Held-for-use |
$ 1,086
|
$ 2,770
|
|
$ 0
|
|
$ 4,970
|
$ 0
|
Tangible Asset Impairment Charges, Total |
|
|
$ 36,461
|
|
$ 1,114
|
|
|
X |
- DefinitionThe aggregate amount of write-downs for impairments recognized during the period for long lived assets held for use (including those held for disposal by means other than sale).
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 958 -SubTopic 225 -Section 45 -Paragraph 11 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=51659069&loc=d3e92212-112881
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Impairment -URI http://asc.fasb.org/extlink&oid=6515133
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 28 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=56944662&loc=d3e3602-108585
Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=51719941&loc=d3e2921-110230
Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 45 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=51824106&loc=d3e2420-110228
+ Details
Name: |
us-gaap_ImpairmentOfLongLivedAssetsHeldForUse |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
duration |
|
X |
- DefinitionLine items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.
+ References
+ Details
Name: |
us-gaap_PropertyPlantAndEquipmentLineItems |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:stringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe charge against earnings resulting from the aggregate write down of tangible assets from their carrying value to their fair value.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=51719941&loc=d3e2921-110230
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=51717284&loc=d3e1361-107760
+ Details
Name: |
us-gaap_TangibleAssetImpairmentCharges |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
duration |
|
v3.3.1.900
Goodwill (Details Textual) - USD ($) $ in Thousands |
3 Months Ended |
9 Months Ended |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Goodwill, Impairment Loss |
$ 0
|
$ 19,549
|
$ 0
|
$ 19,549
|
X |
- DefinitionAmount of loss from the write-down of an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13854-109267
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 45 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6388280&loc=d3e13777-109266
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 28 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=56944662&loc=d3e3602-108585
Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13816-109267
+ Details
Name: |
us-gaap_GoodwillImpairmentLoss |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
duration |
|
v3.3.1.900
Impairment of Long-lived Assets (Details Textual) - USD ($) $ in Thousands |
3 Months Ended |
6 Months Ended |
9 Months Ended |
Dec. 31, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2015 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Impairment of Long-Lived Assets Held-for-use |
$ 1,086
|
$ 2,770
|
|
$ 0
|
|
$ 4,970
|
$ 0
|
Asset Impairment Charges, Total |
$ 1,086
|
|
|
|
|
4,970
|
|
Impairment of Long-Lived Assets to be Disposed of |
|
|
|
|
|
$ 1,384
|
|
Tangible Asset Impairment Charges, Total |
|
|
$ 36,461
|
|
$ 1,114
|
|
|
X |
- DefinitionAmount of write-down of assets recognized in the income statement. Includes, but is not limited to, losses from tangible assets, intangible assets and goodwill.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 45 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=51824106&loc=d3e2420-110228
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 28 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=56944662&loc=d3e3602-108585
+ Details
Name: |
us-gaap_AssetImpairmentCharges |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
duration |
|
X |
- DefinitionThe aggregate amount of write-downs for impairments recognized during the period for long lived assets held for use (including those held for disposal by means other than sale).
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 958 -SubTopic 225 -Section 45 -Paragraph 11 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=51659069&loc=d3e92212-112881
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Impairment -URI http://asc.fasb.org/extlink&oid=6515133
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 28 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=56944662&loc=d3e3602-108585
Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=51719941&loc=d3e2921-110230
Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 45 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=51824106&loc=d3e2420-110228
+ Details
Name: |
us-gaap_ImpairmentOfLongLivedAssetsHeldForUse |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
duration |
|
X |
- DefinitionThe aggregate amount of write-downs for impairments recognized during the period for long-lived assets held for abandonment, exchange or sale.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 45 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=51824106&loc=d3e2611-110228
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 28 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=56944662&loc=d3e3602-108585
+ Details
Name: |
us-gaap_ImpairmentOfLongLivedAssetsToBeDisposedOf |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
duration |
|
X |
- DefinitionThe charge against earnings resulting from the aggregate write down of tangible assets from their carrying value to their fair value.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=51719941&loc=d3e2921-110230
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=51717284&loc=d3e1361-107760
+ Details
Name: |
us-gaap_TangibleAssetImpairmentCharges |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
duration |
|
v3.3.1.900
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended |
9 Months Ended |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Income Tax Disclosure [Line Items] |
|
|
|
|
Provision for income taxes |
$ 848
|
$ 87,200
|
$ 801
|
$ 76,571
|
Loss before income taxes |
$ (43,377)
|
$ (37,012)
|
$ (104,815)
|
$ (66,035)
|
Effective tax rate |
(2.00%)
|
(235.60%)
|
(0.80%)
|
(116.00%)
|
v3.3.1.900
Income Taxes (Details Textual) - USD ($) $ in Thousands |
3 Months Ended |
9 Months Ended |
|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Mar. 31, 2015 |
Income Tax Disclosure [Line Items] |
|
|
|
|
|
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations |
$ 275
|
|
$ 7,033
|
|
|
Other Long Term Tax Liabilities |
|
|
|
|
$ 162
|
Income Tax Expense Benefit Release Of Interest And Penalties |
|
$ 37
|
|
$ 195
|
|
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities |
|
154
|
162
|
604
|
|
Unrecognized Tax Benefits, Beginning Balance |
9,839
|
15,880
|
9,839
|
15,880
|
16,677
|
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Total |
195
|
37
|
195
|
37
|
|
Deferred Tax Assets, Net of Valuation Allowance, Current, Total |
450
|
661
|
450
|
661
|
553
|
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent, Total |
683
|
1,498
|
683
|
1,498
|
1,792
|
Deferred Tax Liabilities, Net, Current |
530
|
1,290
|
530
|
1,290
|
1,630
|
Deferred Tax Liabilities, Net, Noncurrent |
$ 452
|
$ 0
|
452
|
0
|
$ 323
|
Increase In Valuation Allowance Due To Reduction In Projected Future Taxable Income From French Subsidiary |
|
|
$ 575
|
|
|
Valuation Allowance Deferred Tax Asset Change In Amount Affecting Tax Rate |
|
|
|
$ 90,769
|
|
X |
- DefinitionIncrease in valuation allowance due to reduction in projected future taxable income from French subsidiary.
+ References
+ Details
Name: |
lf_IncreaseInValuationAllowanceDueToReductionInProjectedFutureTaxableIncomeFromFrenchSubsidiary |
Namespace Prefix: |
lf_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
duration |
|
X |
- DefinitionOther Long Term Tax Liabilities
+ References
+ Details
Name: |
lf_OtherLongTermTaxLiabilities |
Namespace Prefix: |
lf_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
instant |
|
X |
- DefinitionAmount of increase (decrease) in the valuation allowance that would affect the income tax rate.
+ References
+ Details
Name: |
lf_ValuationAllowanceDeferredTaxAssetChangeInAmountAffectingTaxRate |
Namespace Prefix: |
lf_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
duration |
|
X |
- DefinitionAmount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards expected to be realized or consumed within one year or operating cycle, if longer.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 45 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=37586315&loc=d3e31917-109318
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 45 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=37586315&loc=d3e31931-109318
Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 45 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=37586315&loc=d3e31928-109318
Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 45 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=37586315&loc=d3e31958-109318
+ Details
Name: |
us-gaap_DeferredTaxAssetsNetCurrent |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
instant |
|
X |
- DefinitionAmount after allocation of valuation allowances of noncurrent deferred tax asset attributable to deductible temporary differences and carryforwards. Noncurrent assets are expected to be realized or consumed after one year (or the normal operating cycle, if longer).
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 45 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=37586315&loc=d3e31931-109318
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 45 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=37586315&loc=d3e31928-109318
Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 45 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=37586315&loc=d3e31958-109318
Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 45 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=37586315&loc=d3e31917-109318
+ Details
Name: |
us-gaap_DeferredTaxAssetsNetNoncurrent |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
instant |
|
X |
- DefinitionAmount, after deferred tax asset, of deferred tax liability attributable to taxable differences, netted by jurisdiction and classified as current.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32621-109319
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 45 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=37586315&loc=d3e31958-109318
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 45 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=37586315&loc=d3e31917-109318
Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 45 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=37586315&loc=d3e31931-109318
Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32632-109319
+ Details
Name: |
us-gaap_DeferredTaxLiabilitiesCurrent |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
instant |
|
X |
- DefinitionAmount, after deferred tax asset, of deferred tax liability attributable to taxable differences, netted by jurisdiction and classified as noncurrent.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 45 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=37586315&loc=d3e31931-109318
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 45 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=37586315&loc=d3e31958-109318
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 45 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=37586315&loc=d3e31917-109318
+ Details
Name: |
us-gaap_DeferredTaxLiabilitiesNoncurrent |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
instant |
|
X |
- DefinitionAmount of unrecognized tax benefits pertaining to uncertain tax positions taken in tax returns.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6907707&loc=SL6600010-109319
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Unrecognized Tax Benefit -URI http://asc.fasb.org/extlink&oid=6527854
+ Details
Name: |
us-gaap_UnrecognizedTaxBenefits |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
instant |
|
X |
- DefinitionAmount of decrease in unrecognized tax benefits resulting from settlements with taxing authorities.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -Subparagraph (a)(3) -URI http://asc.fasb.org/extlink&oid=6907707&loc=SL6600010-109319
+ Details
Name: |
us-gaap_UnrecognizedTaxBenefitsDecreasesResultingFromSettlementsWithTaxingAuthorities |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
duration |
|
X |
- DefinitionAmount of decrease in unrecognized tax benefits resulting from lapses of applicable statutes of limitations.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -Subparagraph (a)(4) -URI http://asc.fasb.org/extlink&oid=6907707&loc=SL6600010-109319
+ Details
Name: |
us-gaap_UnrecognizedTaxBenefitsReductionsResultingFromLapseOfApplicableStatuteOfLimitations |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
duration |
|
v3.3.1.900
Stock-Based Compensation (Details) shares in Thousands |
9 Months Ended |
Dec. 31, 2015
shares
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] |
|
Outstanding |
8,595
|
Grants |
3,003
|
Exercises |
(500)
|
Retired or forfeited |
(1,086)
|
Outstanding |
10,012
|
Stock Options [Member] |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] |
|
Outstanding |
6,838
|
Grants |
1,561
|
Exercises |
0
|
Retired or forfeited |
(753)
|
Outstanding |
7,646
|
RSUs [Member] |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] |
|
Outstanding |
1,757
|
Grants |
1,442
|
Exercises |
(500)
|
Retired or forfeited |
(333)
|
Outstanding |
2,366
|
Stock Options and RSUs [Member] |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] |
|
Total shares available for future grant |
7,838
|
X |
- DefinitionLine items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.
+ References
+ Details
Name: |
us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardLineItems |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:stringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe difference between the maximum number of shares (or other type of equity) authorized for issuance under the plan (including the effects of amendments and adjustments), and the sum of: 1) the number of shares (or other type of equity) already issued upon exercise of options or other equity-based awards under the plan; and 2) shares (or other type of equity) reserved for issuance on granting of outstanding awards, net of cancellations and forfeitures, if applicable.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901
+ Details
Name: |
us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:sharesItemType |
Balance Type: |
na |
Period Type: |
instant |
|
X |
- DefinitionFor presentations that combine terminations, the number of shares under options that were cancelled during the reporting period as a result of occurrence of a terminating event specified in contractual agreements pertaining to the stock option plan or that expired.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c)(1)(iv)(3)-(4) -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901
+ Details
Name: |
us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriod |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:sharesItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionGross number of share options (or share units) granted during the period.
+ References
+ Details
Name: |
us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:sharesItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionNumber of options outstanding, including both vested and non-vested options.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c)(1)(i)-(ii) -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901
+ Details
Name: |
us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:sharesItemType |
Balance Type: |
na |
Period Type: |
instant |
|
X |
- DefinitionNumber of share options (or share units) exercised during the current period.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.3-04) -URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c)(1)(iv)(2) -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901
Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.28,29) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682
Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29, 30 -Article 5
+ Details
Name: |
us-gaap_StockIssuedDuringPeriodSharesStockOptionsExercised |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:sharesItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- Details
Name: |
us-gaap_AwardTypeAxis=us-gaap_EmployeeStockOptionMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
us-gaap_AwardTypeAxis=us-gaap_RestrictedStockUnitsRSUMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
us-gaap_AwardTypeAxis=lf_StockOptionsAndRestrictedStockUnitsMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
v3.3.1.900
Stock-Based Compensation (Details 1) - USD ($) $ in Thousands |
3 Months Ended |
9 Months Ended |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] |
|
|
|
|
Stock-based compensation expense |
$ 2,209
|
$ 2,996
|
$ 7,325
|
$ 8,676
|
Selling, General and Administrative Expenses [Member] |
|
|
|
|
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] |
|
|
|
|
Stock-based compensation expense |
2,029
|
2,619
|
6,472
|
7,547
|
Research and Development Expense [Member] |
|
|
|
|
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] |
|
|
|
|
Stock-based compensation expense |
180
|
377
|
853
|
1,129
|
Employee Stock Option [Member] | Selling, General and Administrative Expenses [Member] |
|
|
|
|
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] |
|
|
|
|
Stock-based compensation expense |
1,058
|
1,390
|
3,352
|
4,177
|
Employee Stock Option [Member] | Research and Development Expense [Member] |
|
|
|
|
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] |
|
|
|
|
Stock-based compensation expense |
142
|
206
|
513
|
634
|
Restricted Stock Units (RSUs) [Member] | Selling, General and Administrative Expenses [Member] |
|
|
|
|
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] |
|
|
|
|
Stock-based compensation expense |
941
|
1,130
|
3,046
|
3,108
|
Restricted Stock Units (RSUs) [Member] | Research and Development Expense [Member] |
|
|
|
|
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] |
|
|
|
|
Stock-based compensation expense |
38
|
171
|
340
|
495
|
Employee Stock [Member] | Selling, General and Administrative Expenses [Member] |
|
|
|
|
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] |
|
|
|
|
Stock-based compensation expense |
$ 30
|
$ 99
|
$ 74
|
$ 262
|
X |
- DefinitionLine items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.
+ References
+ Details
Name: |
us-gaap_EmployeeServiceShareBasedCompensationAllocationOfRecognizedPeriodCostsLineItems |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:stringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe aggregate amount of noncash, equity-based employee remuneration. This may include the value of stock or unit options, amortization of restricted stock or units, and adjustment for officers' compensation. As noncash, this element is an add back when calculating net cash generated by operating activities using the indirect method.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 28 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=56944662&loc=d3e3602-108585
+ Details
Name: |
us-gaap_ShareBasedCompensation |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
debit |
Period Type: |
duration |
|
X |
- Details
Name: |
us-gaap_IncomeStatementLocationAxis=us-gaap_SellingGeneralAndAdministrativeExpensesMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
us-gaap_IncomeStatementLocationAxis=us-gaap_ResearchAndDevelopmentExpenseMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
us-gaap_AwardTypeAxis=us-gaap_EmployeeStockOptionMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
us-gaap_AwardTypeAxis=us-gaap_RestrictedStockUnitsRSUMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
us-gaap_AwardTypeAxis=us-gaap_EmployeeStockMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
v3.3.1.900
X |
- DefinitionThe estimated dividend rate (a percentage of the share price) to be paid (expected dividends) to holders of the underlying shares over the option's term.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (f)(2)(iii) -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901
+ Details
Name: |
us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate |
Namespace Prefix: |
us-gaap_ |
Data Type: |
num:percentItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe estimated measure of the percentage by which a share price is expected to fluctuate during a period. Volatility also may be defined as a probability-weighted measure of the dispersion of returns about the mean. The volatility of a share price is the standard deviation of the continuously compounded rates of return on the share over a specified period. That is the same as the standard deviation of the differences in the natural logarithms of the stock prices plus dividends, if any, over the period.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (f)(2)(ii) -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901
+ Details
Name: |
us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate |
Namespace Prefix: |
us-gaap_ |
Data Type: |
num:percentItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe estimated measure of the maximum percentage by which a share price is expected to fluctuate during a period. Volatility also may be defined as a probability-weighted measure of the dispersion of returns about the mean. The volatility of a share price is the standard deviation of the continuously compounded rates of return on the share over a specified period. That is the same as the standard deviation of the differences in the natural logarithms of the stock prices plus dividends, if any, over the period.
+ References
+ Details
Name: |
us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMaximum |
Namespace Prefix: |
us-gaap_ |
Data Type: |
num:percentItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe estimated measure of the minimum percentage by which a share price is expected to fluctuate during a period. Volatility also may be defined as a probability-weighted measure of the dispersion of returns about the mean. The volatility of a share price is the standard deviation of the continuously compounded rates of return on the share over a specified period. That is the same as the standard deviation of the differences in the natural logarithms of the stock prices plus dividends, if any, over the period.
+ References
+ Details
Name: |
us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMinimum |
Namespace Prefix: |
us-gaap_ |
Data Type: |
num:percentItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe risk-free interest rate assumption that is used in valuing an option on its own shares.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (f)(2)(iv) -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901
+ Details
Name: |
us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate |
Namespace Prefix: |
us-gaap_ |
Data Type: |
num:percentItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe maximum risk-free interest rate assumption that is used in valuing an option on its own shares.
+ References
+ Details
Name: |
us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMaximum |
Namespace Prefix: |
us-gaap_ |
Data Type: |
num:percentItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe minimum risk-free interest rate assumption that is used in valuing an option on its own shares.
+ References
+ Details
Name: |
us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMinimum |
Namespace Prefix: |
us-gaap_ |
Data Type: |
num:percentItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionLine items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.
+ References
+ Details
Name: |
us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardLineItems |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:stringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionExpected term of share-based compensation awards, in 'PnYnMnDTnHnMnS' format, for example, 'P1Y5M13D' represents the reported fact of one year, five months, and thirteen days.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 14.D.2) -URI http://asc.fasb.org/extlink&oid=27013229&loc=d3e301413-122809
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (f)(2)(i) -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 -Section D -Subsection 2
+ Details
Name: |
us-gaap_SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1 |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:durationItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- Details
Name: |
us-gaap_AwardTypeAxis=us-gaap_EmployeeStockOptionMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
us-gaap_AwardTypeAxis=us-gaap_EmployeeStockMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
v3.3.1.900
Stock-Based Compensation (Details Textual) - shares shares in Thousands |
3 Months Ended |
9 Months Ended |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] |
|
|
|
|
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount |
11,229
|
8,980
|
23,443
|
9,070
|
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period |
|
|
10 years
|
|
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period |
|
|
4 years
|
|
Employee Stock [Member] |
|
|
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] |
|
|
|
|
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant |
388
|
|
388
|
|
X |
- DefinitionSecurities (including those issuable pursuant to contingent stock agreements) that could potentially dilute basic earnings per share (EPS) or earnings per unit (EPU) in the future that were not included in the computation of diluted EPS or EPU because to do so would increase EPS or EPU amounts or decrease loss per share or unit amounts for the period presented.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Antidilution -URI http://asc.fasb.org/extlink&oid=6505113
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Diluted Earnings Per Share -URI http://asc.fasb.org/extlink&oid=6510752
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Contingent Stock Agreement -URI http://asc.fasb.org/extlink&oid=6508534
Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 260 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257
+ Details
Name: |
us-gaap_AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:sharesItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionPeriod which an employee's right to exercise an award is no longer contingent on satisfaction of either a service condition, market condition or a performance condition, in 'PnYnMnDTnHnMnS' format, for example, 'P1Y5M13D' represents the reported fact of one year, five months, and thirteen days.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a)(1) -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901
+ Details
Name: |
us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1 |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:durationItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionLine items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.
+ References
+ Details
Name: |
us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardLineItems |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:stringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe difference between the maximum number of shares (or other type of equity) authorized for issuance under the plan (including the effects of amendments and adjustments), and the sum of: 1) the number of shares (or other type of equity) already issued upon exercise of options or other equity-based awards under the plan; and 2) shares (or other type of equity) reserved for issuance on granting of outstanding awards, net of cancellations and forfeitures, if applicable.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901
+ Details
Name: |
us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:sharesItemType |
Balance Type: |
na |
Period Type: |
instant |
|
X |
- DefinitionPeriod from grant date that an equity-based award expires, in 'PnYnMnDTnHnMnS' format, for example, 'P1Y5M13D' represents the reported fact of one year, five months, and thirteen days.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a)(2) -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901
+ Details
Name: |
us-gaap_SharebasedCompensationArrangementBySharebasedPaymentAwardExpirationPeriod |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:durationItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- Details
Name: |
us-gaap_AwardTypeAxis=us-gaap_EmployeeStockMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
v3.3.1.900
Segment Reporting (Details) - USD ($) $ in Thousands |
3 Months Ended |
9 Months Ended |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] |
|
|
|
|
Net sales |
$ 83,093
|
$ 144,598
|
$ 189,013
|
$ 305,220
|
Income (loss) from operations |
(43,084)
|
(36,490)
|
(104,166)
|
(65,344)
|
United States [Member] |
|
|
|
|
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] |
|
|
|
|
Net sales |
58,560
|
99,183
|
132,018
|
207,449
|
Income (loss) from operations |
(38,650)
|
(39,822)
|
(101,751)
|
(73,977)
|
International [Member] |
|
|
|
|
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] |
|
|
|
|
Net sales |
24,533
|
45,415
|
56,995
|
97,771
|
Income (loss) from operations |
$ (4,434)
|
$ 3,332
|
$ (2,415)
|
$ 8,633
|
X |
- DefinitionThe net result for the period of deducting operating expenses from operating revenues.
+ References
+ Details
Name: |
us-gaap_OperatingIncomeLoss |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
duration |
|
X |
- DefinitionTotal revenue from sale of goods and services rendered during the reporting period, in the normal course of business, reduced by sales returns and allowances, and sales discounts.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 225 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SX 210.5-03.1) -URI http://asc.fasb.org/extlink&oid=26872669&loc=d3e20235-122688
+ Details
Name: |
us-gaap_SalesRevenueNet |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
duration |
|
X |
- DefinitionLine items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.
+ References
+ Details
Name: |
us-gaap_SegmentReportingReconcilingItemForOperatingProfitLossFromSegmentToConsolidatedLineItems |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:stringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- Details
Name: |
us-gaap_StatementGeographicalAxis=country_US |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
us-gaap_StatementGeographicalAxis=us-gaap_ReportableGeographicalComponentsMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
v3.3.1.900
X |
- DefinitionThe total amount of the contingent obligation under letters of credit outstanding as of the reporting date.
+ References
+ Details
Name: |
us-gaap_LettersOfCreditOutstandingAmount |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
instant |
|
X |
- DefinitionAmount of the unrecorded obligation to transfer funds in the future for fixed or minimum amounts or quantities of goods or services at fixed or minimum prices (for example, as in take-or-pay contracts or throughput contracts).
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 440 -SubTopic 10 -Section 50 -Paragraph 4 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=6394976&loc=d3e25336-109308
+ Details
Name: |
us-gaap_UnrecordedUnconditionalPurchaseObligationBalanceSheetAmount |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
instant |
|
X |
- Details
Name: |
us-gaap_CreditFacilityAxis=us-gaap_RevolvingCreditFacilityMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
v3.3.1.900
X |
- DefinitionThe carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.9-03.16) -URI http://asc.fasb.org/extlink&oid=6876686&loc=d3e534808-122878
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.7-03.16) -URI http://asc.fasb.org/extlink&oid=6879938&loc=d3e572229-122910
Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5
+ Details
Name: |
us-gaap_LineOfCredit |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
instant |
|
X |
- DefinitionThe cash outflow for the settlement of obligation drawn from a contractual arrangement with the lender, including letter of credit, standby letter of credit and revolving credit arrangements, under which borrowings can be made up to a specific amount at any point in time with maturities due beyond one year or the operating cycle, if longer.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Financing Activities -URI http://asc.fasb.org/extlink&oid=6513228
Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 15 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=56944662&loc=d3e3291-108585
+ Details
Name: |
us-gaap_RepaymentsOfLongTermLinesOfCredit |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:monetaryItemType |
Balance Type: |
credit |
Period Type: |
duration |
|
X |
- DefinitionPrice of a single share of a number of saleable stocks of a company.
+ References
+ Details
Name: |
us-gaap_SharePrice |
Namespace Prefix: |
us-gaap_ |
Data Type: |
num:perShareItemType |
Balance Type: |
na |
Period Type: |
instant |
|
X |
- DefinitionDetail information of subsequent event by type. User is expected to use existing line items from elsewhere in the taxonomy as the primary line items for this disclosure, which is further associated with dimension and member elements pertaining to a subsequent event.
+ References
+ Details
Name: |
us-gaap_SubsequentEventLineItems |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:stringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- Details
Name: |
us-gaap_CreditFacilityAxis=us-gaap_RevolvingCreditFacilityMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
us-gaap_StatementClassOfStockAxis=us-gaap_CommonClassAMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
v3.3.1.900
Other Item (Details Textual)
|
Sep. 04, 2015 |
Description Of Common Stock |
the Company was notified by the New York Stock Exchange (“NYSE”) that the average closing price of the Company’s common stock had fallen below $1.00 per share over a consecutive 30 trading-day period
|
X |
- DefinitionDescription of common stock.
+ References
+ Details
Name: |
lf_DescriptionOfCommonStock |
Namespace Prefix: |
lf_ |
Data Type: |
xbrli:stringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
Leapfrog (NYSE:LF)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Leapfrog (NYSE:LF)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024