Rosetta Stone 2010 Annual Report Download - page 108
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Table of Contents
16. SEGMENT INFORMATION (Continued)
Products and services are sold primarily in the United States, but are also sold through direct and indirect sales channels in other countries, primarily in
Japan, South Korea and Europe. Less than 8% of the Company's revenues were generated from sales outside of the United States for the years ended
December 31, 2009 and 2008, and approximately 18% of the Company's revenue was generated from sales outside the United States for the year ended
December 31, 2010. As of December 31, 2010 and 2009, the Company had $2.7 million and $1.0 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, 2010, 2009 and 2008, respectively.
17. RELATED PARTIES
As of December 31, 2010 and 2009, the Company had outstanding receivables from stockholders of zero and $74,000, respectively, and outstanding
receivables from employees in the amount of $10,000 and $8,000, 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,
2010 2009 2008
Allowance for doubtful accounts:
Beginning balance $ 1,349 $ 1,103 $ 627
Charged to costs and expenses 1,750 911 1,611
Deductions—accounts written off (1,338) (665) (1,135)
Ending balance 1,761 1,349 1,103
Sales return reserve:
Beginning balance 4,708 3,229 1,688
Charged to costs and expenses 36,348 18,340 14,337
Deductions—reserves utilized (32,665) (16,861) (12,796)
Ending balance 8,391 4,708 3,229
Reserve for excess and obsolete inventory:
Beginning balance 765 470 478
Charged to costs and expenses 2,454 1,090 2,093
Deductions—reserves utilized (831) (795) (2,101)
Ending balance 2,388 765 470
Deferred income tax asset valuation allowance:
Beginning balance 5,012 5,263 2,980
Charged to costs and expenses — — 2,283
Deductions (5,012) (251) —
Ending balance $ — $ 5,012 $ 5,263
F-34