Rosetta Stone 2010 Annual Report Download - page 105
Download and view the complete annual report
Please find page 105 of the 2010 Rosetta Stone annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95 -
96 -
97 -
98 -
99 -
100 -
101 -
102 -
103 -
104 -
105 -
106 -
107 -
108 -
109 -
110 -
111 -
112 -
113 -
114 -
115 -
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
 |
 |
Table of Contents
ROSETTA STONE INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
14. COMMITMENTS AND CONTINGENCIES (Continued)
other persons similarly situated who are or were employed as salaried managers by the Company in its retail locations in California are due unpaid wages and
other relief for the Company's violations of state wage and hour laws. Plaintiffs moved to amend their complaint to include a nationwide class on January 21,
2011. We intend to vigorously defend this matter. However, we cannot predict the timing and the ultimate outcome of this matter. Even if the plaintiffs are
unsuccessful in their claims against us, we will incur legal fees and other costs in the defense of these claims.
From time to time, the Company has been subject to various claims and legal actions in the ordinary course of its business. The Company is not currently
involved in any legal proceeding the ultimate outcome of which, in its judgment based on information currently available, would have a material adverse
impact on its business, financial condition or results of operations.
15. INCOME TAXES
The following table summarizes the significant components of the Company's deferred tax assets and liabilities as of December 31, 2010 and 2009 (in
thousands):
As of
December 31,
2010 2009
Deferred tax assets:
Inventory $ 1,015 $ 290
Amortization and depreciation 1,995 3,521
Net operating loss carryforwards 1,105 4,359
Deferred revenue 2,026 663
Accrued liabilities 8,714 6,456
Stock-based compensation 2,926 2,266
Bad debt reserve 698 425
Foreign currency translation 59 —
18,538 17,980
Valuation allowance — (5,012)
18,538 12,968
Deferred tax liabilities:
Prepaid expenses 876 1,328
Foreign currency translation loss — 50
Other 5 5
881 1,383
Net deferred tax assets $ 17,657 $ 11,585
Net deferred tax assets as of December 31 are classified as follows:
Current $ 11,159 $ 6,020
Non-current 6,498 5,565
Total $ 17,657 $ 11,585
F-31