Schedule II VALUATION AND QUALIFYING ACCOUNTS

12 Months Ended

Dec. 31, 2011

Schedule II VALUATION AND QUALIFYING ACCOUNTS

Schedule II VALUATION AND QUALIFYING ACCOUNTS

	Balance at Beginning of Year		Additions			Deductions		Balance at End of Year
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
Year ended December 31, 2010:
Allowance for doubtful accounts(1)	$	2,710	$	(763	)	$	568	$	1,379
Allowance for sales discounts(2)		2,796		26,514			23,491		5,819
Allowance for sales returns(3)		3,235		20,726			19,922		4,039
Chargeback allowance(4)		3,049		(253	)		261		2,535
Year ended December 31, 2009:
Allowance for doubtful accounts(1)	$	2,482	$	399		$	171	$	2,710
Allowance for sales discounts(2)		4,241		22,630			24,075		2,796
Allowance for sales returns(3)		2,335		15,947			15,047		3,235
Chargeback allowance(4)		1,648		1,644			243		3,049

(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. In 2010, the additions were negative due to recoveries of amounts reserved as of December 31, 2009.

(2)

The additions to the reserve 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.