| Schedule II VALUATION AND QUALIFYING ACCOUNTS |
| | | | | | | | | | | | | | | | | | Balance at Beginning of Year | | Additions | | Deductions | | Balance at End of Year | Year ended December 31, 2013 | | | | | | | | Allowance for doubtful accounts(1) | $ | 2,782 |
| | $ | 125 |
| | $ | 868 |
| | $ | 2,039 |
| Allowance for sales discounts(2) | 3,836 |
| | 46,989 |
| | 47,285 |
| | 3,540 |
| Allowance for sales returns(3) | 12,905 |
| | 67,800 |
| | 66,151 |
| | 14,554 |
| Chargeback allowance(4) | 5,563 |
| | 187 |
| | 815 |
| | 4,935 |
| Year ended December 31, 2012 | | | | | | | | Allowance for doubtful accounts(1) | $ | 1,719 |
| | $ | 2,128 |
| | $ | 1,065 |
| | $ | 2,782 |
| Allowance for sales discounts(2) | 4,629 |
| | 35,759 |
| | 36,552 |
| | 3,836 |
| Allowance for sales returns(3) | 11,313 |
| | 53,165 |
| | 51,573 |
| | 12,905 |
| Chargeback allowance(4) | 4,031 |
| | 5,879 |
| | 4,347 |
| | 5,563 |
| Year ended December 31, 2011 | | | | | | | | Allowance for doubtful accounts(1) | $ | 1,379 |
| | $ | 642 |
| | $ | 302 |
| | $ | 1,719 |
| Allowance for sales discounts(2) | 5,819 |
| | 36,254 |
| | 37,444 |
| | 4,629 |
| Allowance for sales returns(3) | 4,039 |
| | 37,355 |
| | 30,081 |
| | 11,313 |
| Chargeback allowance(4) | 2,535 |
| | 1,744 |
| | 248 |
| | 4,031 |
|
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| | (1) | The additions to the allowance for doubtful accounts represent the estimates of our bad debt expense based upon the factors for which we evaluate the collectability of our accounts receivable, with actual recoveries netted into additions. Deductions are the actual write offs of the receivables. |
| | (2) | The additions to the allowance for sales discounts represent estimates of discounts to be taken by our customers based upon the amount of available outstanding terms discounts in the year-end aging. Deductions are the actual discounts taken by our customers. |
| | (3) | The additions to the allowance for returns represent estimates of returns based upon our historical returns experience. Deductions are the actual returns of products. |
| | (4) | The additions to the chargeback allowance represent chargebacks taken in the respective year as well as an estimate of chargebacks related to sales in the respective reporting period that will be taken subsequent to the respective reporting period. Deductions are the actual chargebacks written off against outstanding accounts receivable. The Company has estimated the additions and deductions by netting each quarter's change and summing the four quarters for the respective year. |
See accompanying report of independent registered public accounting firm. |