EX-99.6 15 dex996.txt SCHEDULE II EXHIBIT 99.6 CELLSTAR CORPORATION AND SUBSIDIARIES SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS Years ended November 30, 2000, 1999 and 1998 (in thousands)
Balance at Charged to Charged to Deductions, Balance at beginning of costs and activation net of end of period expenses income (a) recoveries period ------------ ---------- ----------- ------------ ---------- Allowance for doubtful accounts: November 30, 2000 $33,152 51,533 103 (8,978) 75,810 November 30, 1999 33,361 10,392 1,251 (11,852) 33,152 November 30, 1998 23,857 13,639 481 (4,616) 33,361 Reserve for inventory obsolescence November 30, 2000 $14,868 32,255 - (27,811) 19,312 November 30, 1999 12,082 23,012 - (20,226) 14,868 November 30, 1998 2,795 12,434 - (3,147) 12,082
(a) The Company, under agent agreements, earns activation commissions from wireless service providers on engaging subscribers for wireless handset services in connection with the Company's retail operations. The agent agreements also provide for the reduction or elimination of activation commissions if the subscribers deactivate service within a stipulated period. The Company reduces activation income for increases in the allowance for estimated deactivations.