Rosetta Stone 2009 Annual Report Download - page 110

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Table of Contents
ROSETTA STONE INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
16. SEGMENT INFORMATION (Continued)
of the Company's revenues were generated from sales outside of the United States for the years ended December 31, 2008 and 2007, and approximately 8% of
the Company's revenue was generated from sales outside the United States for the year ended December 31, 2009. As of December 31, 2009 and 2008, the
Company had $1.0 million and $0.4 million, respectively, of long-lived assets held outside of the United States.
No single customer accounted for more than 10% of the Company's revenue for the years ended December 31, 2009, 2008 and 2007, respectively.
17. RELATED PARTIES
As of December 31, 2009 and 2008, the Company had outstanding receivables from stockholders of $74,000 and $0.2 million, respectively, and
outstanding receivables from employees in the amount of $8,000 and zero, respectively.
18. VALUATION AND QUALIFYING ACCOUNTS
The following table includes the Company's valuation and qualifying accounts for the respective periods (in thousands):
Year Ended December 31,
2009 2008 2007
Allowance for doubtful accounts:
Beginning balance $ 1,103 $ 627 $ 267
Charged to costs and expenses 911 1,611 828
Deductions—accounts written off (665) (1,135) (468)
Ending balance 1,349 1,103 627
Sales return reserve:
Beginning balance 3,229 1,688 858
Charged to costs and expenses 18,340 14,337 10,413
Deductions—reserves utilized (16,861) (12,796) (9,583)
Ending balance 4,708 3,229 1,688
Reserve for excess and obsolete inventory:
Beginning balance 470 478 190
Charged to costs and expenses 1,090 2,093 1,677
Deductions—reserves utilized (795) (2,101) (1,389)
Ending balance $ 765 $ 470 $ 478
Deferred income tax asset valuation allowance:
Beginning balance 5,263 2,980 687
Charged to costs and expenses — 2,283 2,293
Deductions (251) — —
Ending balance $ 5,012 $ 5,263 $ 2,980
F-34