ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2012

ACCOUNTING POLICIES

Schedule of fair value of financial instruments using levels of inputs

The fair value of these financial instruments was determined using the following levels of inputs as of December 31, 2012 (in thousands):

	Fair Value Measurements at December 31, 2012:
	Total		Level 1		Level 2		Level 3
Assets:
Cash equivalents and restricted cash—Money market mutual funds	$	76,248	$	76,248	$	—	$	—
Trading securities held in a "rabbi trust"(1)		264		264
Total assets	$	76,512	$	76,512	$	—	$	—
Liabilities:
Deferred compensation accrual "rabbi trust"(2)	$	266	$	266	$	—	$	—
Restructuring(3)		65		—		—		65
Total liabilties	$	331	$	266	$	—	$	65

        The fair value of these financial instruments was determined using the following levels of inputs as of December 31, 2011 (in thousands):

	Fair Value Measurements at December 31, 2011:
	Total		Level 1		Level 2		Level 3
Assets:
Cash equivalents and restricted cash—Money market mutual funds	$	81,159	$	81,159	$	—	$	—
Trading securities held in a "rabbi trust"(1)		302		302
Total assets	$	81,461	$	81,461	$	—	$	—
Liabilities:
Deferred compensation accrual "rabbi trust"(3)		302		302		—		—
Total liabilities	$	302	$	302	$	—	$	—

(1)

—Trading securities held in a rabbi trust are included in Other current and long-term assets in the consolidated balance sheets (Note 18—Employee Retirement Plan).

(2)

—Non qualified deferred compensation for rabbi trust is included in Accrued liabilities and Other long-term liabilities in the consolidated balance sheets (Note 18—Employee Retirement Plan).

(3)

—The fair value was determined based on the income approach, in which we used internal cash flow projections over the life of the underlying lease agreements discounted based on a credit adjusted risk-free rate of return. See the roll forward related to the restructuring accrual at Note 3—Restructuring Expense.

Schedule of estimated useful lives of the fixed assets

	Life (years)
Computer software		2 - 3
Computer hardware		3
Furniture and equipment		3 - 5

Schedule of depreciation and amortization expense which is classified within the corresponding operating expense categories on the consolidated statements of operations

Depreciation and amortization expense is classified within the corresponding operating expense categories on the consolidated statements of operations as follows (in thousands):

	Year ended December 31,
	2012		2011		2010
Cost of goods sold—direct	$	470	$	714	$	1,179
Technology		14,177		14,433		12,489
General and administrative		1,362		1,203		912
Total depreciation and amortization, including internal-use software and website development	$	16,009	$	16,350	$	14,580

Schedule of gross profit

Cost of goods sold, including product cost and other costs and fulfillment and related costs are as follows (in thousands):

	Year ended December 31,
	2012				2011				2010
Total net revenue	$	1,099,289	100	%	$	1,054,277	100	%	$	1,089,873	100	%
Cost of goods sold
Product costs and other cost of goods sold		848,842	77	%		821,739	78	%		842,064	78	%
Fulfillment and related costs		52,017	5	%		53,450	5	%		58,169	5	%
Total cost of goods sold		900,859	82	%		875,189	83	%		900,233	83	%
Gross profit	$	198,430	18	%	$	179,088	17	%	$	189,640	17	%

Schedule of computation of basic and diluted net income (loss) per common share

  The following table sets forth the computation of basic and diluted net income (loss) per common share for the periods indicated (in thousands, except per share data):

	Year ended December 31
	2012		2011			2010
Net income (loss)	$	14,669	$	(19,438	)	$	13,889
Deemed dividend related to redeemable common stock		—		(12	)		(112	)
Net income (loss) attributable to common shares	$	14,669	$	(19,450	)	$	13,777
Net income (loss) per common share—basic:
Net income (loss) attributable to common shares—basic	$	0.63	$	(0.84	)	$	0.60
Weighted average common shares outstanding—basic		23,387		23,259			23,019
Effect of dilutive securities:
Stock options and restricted stock awards		285		—			347
Convertible senior notes		—		—			—
Weighted average common shares outstanding—diluted		23,672		23,259			23,366
Net income (loss) attributable to common shares—diluted	$	0.62	$	(0.84	)	$	0.59

Schedule of anti-dilutive securities excluded from the calculation of diluted shares outstanding

The following shares were excluded from the calculation of diluted shares outstanding as their effect would have been anti-dilutive (in thousands):

	Year ended December 31
	2012		2011		2010
Stock options and restricted stock units		537		927		551
Convertible senior notes		—		—		454