CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	9 Months Ended
Sep. 30, 2013	Sep. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 8,862	$ 5,528
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,481	2,614
Amortization of intangibles	843	126
Stock-based compensation expense	4,552	6,434
Deferred income taxes	194	0
Reserve for returns	4,712	3,384
Impairment of long-lived assets	0	958
Allowance for doubtful accounts	397	459
Reserve for inventory obsolescence	(7)	(178)
Loss in equity interests	174	29
Other non-cash charges	(61)	(91)
Changes in operating assets and liabilities:
Increase in accounts receivable	(4,213)	(824)
(Increase) decrease in inventories	(562)	1,353
(Increase) decrease in deferred production and marketing costs	(37)	220
Increase in prepaid expenses	(1,627)	(740)
Decrease in other current assets	118	182
(Increase) decrease in other assets	(454)	7
Decrease in accounts payable and accrued expenses	(468)	(3,103)
Increase in deferred revenue	973	1,174
(Decrease) increase in deferred rent	(532)	868
Increase in other liabilities	9	17
Net cash provided by operating activities	15,354	18,417
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment	(4,661)	(2,009)
Maturity of U.S. Treasury Bills	2,598	2,598
Purchases of U.S. Treasury Bills	(2,598)	(2,598)
Investment in equity interests	0	(500)
Purchase of URLs and other intangibles	(3)	(27)
Acquisitions, net of cash acquired	(600)	0
Net cash used in investing activities	(5,264)	(2,536)
CASH FLOWS FROM FINANCING ACTIVITIES
Repurchase of common stock	0	(18,936)
Proceeds from issuance of common stock	276	295
Proceeds from exercise of stock options	197	0
Surrender of restricted common stock for income tax purposes	(1,753)	(1,909)
Net cash used in financing activities	(1,280)	(20,550)
Increase (decrease) in cash and cash equivalents	8,810	(4,669)
Cash and cash equivalents at beginning of period	77,407	77,376
Cash and cash equivalents at end of period	$ 86,217	$ 72,707

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The aggregate expense charged against earnings to allocate the cost of intangible assets (nonphysical assets not used in production) in a systematic and rational manner to the periods expected to benefit from such assets. As a noncash expense, this element is added back to net income when calculating cash provided by or used in operations using the indirect method.