Rosetta Stone 2011 Annual Report Download - page 120

Table of Contents
ROSETTA STONE INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
16. SEGMENT INFORMATION (Continued)
The information below summarizes long-lived assets by geographic area for the years ended December 31, 2011, 2010 and 2009, respectively (in
thousands):
As of December 31,
2011 2010 2009
United States $ 18,417 $ 18,802 $ 17,412
International 2,452 2,271 962
Total $ 20,869 $ 21,073 $ 18,374
17. RELATED PARTIES
As of December 31, 2011 and 2010, the Company had outstanding receivables from stockholders of zero, 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,
2011 2010 2009
Allowance for doubtful accounts:
Beginning balance $ 1,761 $ 1,349 $ 1,103
Charged to costs and expenses 1,228 1,750 911
Deductions—accounts written off (1,038) (1,338) (665)
Ending balance 1,951 1,761 1,349
Sales return reserve:
Beginning balance 8,391 4,708 3,229
Charged to costs and expenses 24,922 36,348 18,340
Deductions—reserves utilized (23,382) (32,665) (16,861)
Ending balance 9,931 8,391 4,708
Reserve for excess and obsolete inventory:
Beginning balance 2,388 765 470
Charged to costs and expenses 1,693 2,454 1,090
Deductions—reserves utilized (2,833) (831) (795)
Ending balance 1,248 2,388 765
Deferred income tax asset valuation allowance:
Beginning balance — 5,012 5,263
Charged to costs and expenses — — —
Deductions — (5,012) (251)
Ending balance $ — $ — $ 5,012
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