ACCOUNTING POLICIES (Tables)
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12 Months Ended |
Dec. 31, 2012
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ACCOUNTING POLICIES |
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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):
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Fair Value Measurements at
December 31, 2012: |
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Total |
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Level 1 |
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Level 2 |
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Level 3 |
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Assets: |
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Cash equivalents and restricted cash—Money market mutual funds |
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$ |
76,248 |
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$ |
76,248 |
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$ |
— |
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$ |
— |
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Trading securities held in a "rabbi trust"(1) |
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264 |
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264 |
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Total assets |
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$ |
76,512 |
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$ |
76,512 |
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$ |
— |
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$ |
— |
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Liabilities: |
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Deferred compensation accrual "rabbi trust"(2) |
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$ |
266 |
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$ |
266 |
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$ |
— |
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$ |
— |
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Restructuring(3) |
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65 |
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— |
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— |
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65 |
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Total liabilties |
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$ |
331 |
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$ |
266 |
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$ |
— |
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$ |
65 |
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The fair value of these financial instruments was determined using the following levels of inputs as of December 31, 2011 (in thousands):
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Fair Value Measurements at
December 31, 2011: |
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Total |
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Level 1 |
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Level 2 |
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Level 3 |
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Assets: |
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Cash equivalents and restricted cash—Money market mutual funds |
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$ |
81,159 |
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$ |
81,159 |
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$ |
— |
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$ |
— |
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Trading securities held in a "rabbi trust"(1) |
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302 |
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302 |
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Total assets |
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$ |
81,461 |
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$ |
81,461 |
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$ |
— |
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$ |
— |
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Liabilities: |
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Deferred compensation accrual "rabbi trust"(3) |
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302 |
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302 |
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— |
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— |
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Total liabilities |
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$ |
302 |
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$ |
302 |
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$ |
— |
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$ |
— |
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- (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.
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Schedule of estimated useful lives of the fixed assets |
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Life (years) |
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Computer software |
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2 - 3 |
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Computer hardware |
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3 |
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Furniture and equipment |
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3 - 5 |
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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):
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Year ended December 31, |
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2012 |
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2011 |
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2010 |
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Cost of goods sold—direct |
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$ |
470 |
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$ |
714 |
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$ |
1,179 |
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Technology |
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14,177 |
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14,433 |
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12,489 |
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General and administrative |
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1,362 |
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1,203 |
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912 |
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Total depreciation and amortization, including internal-use software and website development |
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$ |
16,009 |
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$ |
16,350 |
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$ |
14,580 |
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Schedule of gross profit |
Cost of goods sold, including product cost and other costs and fulfillment and related costs are as follows (in thousands):
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Year ended December 31, |
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2012 |
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2011 |
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2010 |
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Total net revenue |
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$ |
1,099,289 |
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100 |
% |
$ |
1,054,277 |
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100 |
% |
$ |
1,089,873 |
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100 |
% |
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Cost of goods sold |
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Product costs and other cost of goods sold |
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848,842 |
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|
77 |
% |
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821,739 |
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78 |
% |
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842,064 |
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78 |
% |
Fulfillment and related costs |
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52,017 |
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5 |
% |
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53,450 |
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5 |
% |
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58,169 |
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5 |
% |
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Total cost of goods sold |
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900,859 |
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82 |
% |
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875,189 |
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83 |
% |
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900,233 |
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83 |
% |
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Gross profit |
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$ |
198,430 |
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18 |
% |
$ |
179,088 |
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17 |
% |
$ |
189,640 |
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17 |
% |
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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):
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Year ended December 31 |
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2012 |
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2011 |
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2010 |
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Net income (loss) |
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$ |
14,669 |
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$ |
(19,438 |
) |
$ |
13,889 |
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Deemed dividend related to redeemable common stock |
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— |
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(12 |
) |
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(112 |
) |
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Net income (loss) attributable to common shares |
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$ |
14,669 |
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$ |
(19,450 |
) |
$ |
13,777 |
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Net income (loss) per common share—basic: |
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Net income (loss) attributable to common shares—basic |
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$ |
0.63 |
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$ |
(0.84 |
) |
$ |
0.60 |
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Weighted average common shares outstanding—basic |
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23,387 |
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23,259 |
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23,019 |
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Effect of dilutive securities: |
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Stock options and restricted stock awards |
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285 |
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— |
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|
347 |
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Convertible senior notes |
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— |
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— |
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— |
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Weighted average common shares outstanding—diluted |
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23,672 |
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23,259 |
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|
23,366 |
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Net income (loss) attributable to common shares—diluted |
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$ |
0.62 |
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$ |
(0.84 |
) |
$ |
0.59 |
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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):
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Year ended December 31 |
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2012 |
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2011 |
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2010 |
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Stock options and restricted stock units |
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537 |
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|
927 |
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|
551 |
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Convertible senior notes |
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— |
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— |
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|
454 |
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