Classmates.com 2005 Annual Report Download - page 110

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UNITED ONLINE, INC.
SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS
(in thousands)
(a)
Represents specific amounts written off that were considered to be uncollectible.
(b)
Represents allowance for doubtful accounts acquired in connection with the acquisition of Classmates.
(c)
Represents the increase in valuation allowance primarily due to executive compensation that is limited under Section 162(m) of the Code
and foreign losses, the benefit of which is not currently recognizable.
(d)
Represents the release of valuation allowance primarily to recognize the actual and future tax benefits of deferred tax assets.
(e)
Represents the release of valuation allowance primarily to recognize the future tax benefits for stock option deductions and net operating
losses acquired in the Merger.
(f)
Represents net adjustments to the valuation allowance primarily related to the Merger.
(g)
Represents the increase to the valuation allowance primarily due to stock option deductions and acquired net operating loss carryforwards
in connection with the Merger pursuant to IRS Notice 2003-65.
F- 41
Balance at
Beginning of
Period
Charged/
(Credited) to
Expense
Charged
to Other
Accounts
Charges
Utilized/
Writeoffs
Balance at End
of Period
Allowance for doubtful accounts:
Year ended December 31, 2005
$
647
$
678
$
—
$
—
$
1,325
Year ended December 31, 2004
288
75
284
(b)
—
647
Six months ended December 31, 2003
288
—
—
—
288
Year ended June 30, 2003
333
—
—
45
(a)
288
Valuation allowance for deferred
tax assets:
Year ended December 31, 2005
$
1,938
$
2,732
(c)
$
—
$
—
$
4,670
Year ended December 31, 2004
87,212
(67,478
)(d)
(20,783
)(e)
(2,987
)(f)
1,938
Six months ended December 31, 2003
95,423
(12,292
)(d)
(16,408
)(e)
(20,489
)(g)
87,212
Year ended June 30, 2003
110,360
(12,207
)(d)
(3,720
)(e)
(990
)(f)
95,423