Classmates.com 2006 Annual Report Download - page 105

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UNITED ONLINE, INC.
SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS
(in thousands)
(a)
Represents allowance for doubtful accounts acquired in connection with the acquisition of MyPoints.
(b)
Represents specific amounts written off that were considered to be uncollectible.
(c)
Represents allowance for doubtful accounts acquired in connection with the acquisition of Classmates.
(d)
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.
(e)
Represents the release of valuation allowance for executive compensation subject to Section 162(m) of the Code.
(f)
Represents the release of valuation allowance primarily to recognize the actual and future tax benefits of deferred tax assets.
(g)
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.
(h)
Represents net adjustments to the valuation allowance primarily related to the Merger.
F- 43
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, 2006
$
1,325
$
(298
)
$
300
(a)
$
(3
)(b)
$
1,324
Year ended December 31, 2005
647
678
—
—
1,325
Year ended December 31, 2004
288
75
284
(c)
—
647
Valuation allowance for deferred
tax assets:
Year ended December 31, 2006
$
4,670
$
3,464
(d)
$
—
$
(
1,284
)(e)
$
6,850
Year ended December 31, 2005
1,938
2,732
(d)
—
—
4,670
Year ended December 31, 2004
87,212
(67,478
)(f)
(20,783
)(g)
2,987
(h)
1,938