ServiceMagic 2012 Annual Report Download - page 122

Table of Contents
Schedule II
IAC/INTERACTIVECORP AND SUBSIDIARIES
VALUATION AND QUALIFYING ACCOUNTS
_________________________________________________________
Description
Balance at
Beginning
of Period
Charges to
Earnings Charges to
Other Accounts Deductions Balance at
End of Period
(In thousands)
2012
Allowance for doubtful accounts and
revenue reserves
$
7,309
$
12,237
(1)
$
654
$
(11,425
)
(5)
$
8,775
Magazine publishing allowance for
newsstand returns —
10,426
(2)
33
(8,146
)
(6)
2,313
Sales returns accrual
1,020
17,728
—
(
17,504
)
1,244
Deferred tax valuation allowance
45,084
9,320
(3)
6,379
(4)
—
60,783
Other reserves
2,119
1,925
2011
Allowance for doubtful accounts and
revenue reserves
$
8,848
$
8,898
(1)
$
(329
)
$
(10,108
)
(5)
$
7,309
Sales returns accrual
913
16,573
—
(
16,466
)
1,020
Deferred tax valuation allowance
40,266
5,732
(7)
(914
)
(8)
—
45,084
Other reserves
1,555
2,119
2010
Allowance for doubtful accounts and
revenue reserves
$
10,515
$
9,013
(1)
$
81
$
(10,761
)
(5)
$
8,848
Sales returns accrual
873
14,026
—
(
13,986
)
913
Deferred tax valuation allowance
35,331
4,511
(9)
424
(4)
—
40,266
Other reserves
2,666
1,555
(1)
Additions to the allowance for doubtful accounts are charged to expense. Additions to the revenue reserves are charged against revenue.
(2) Additions to the magazine publishing allowance for newsstand returns are related to magazine publishing at News_Beast and are charged
against revenue.
(3) Amount is primarily related to an unbenefited other-than-temporary impairment charge related to a long-term marketable equity security,
an increase in deferred tax assets for investments in subsidiaries and an increase in federal net operating losses.
(4) Amount is primary related to unbenefited unrealized losses on available-for-sale securities included in accumulated other comprehensive
income.
(5) Write-
off of fully reserved accounts receivable.
(6)
Amount represents returns of magazines at News_Beast.
(7)
Amount is primarily related to losses from equity method investments.
(8) Amount is primary related to the net release of the valuation allowance on net benefited losses for 2011 unrealized gains on available-for-
sale securities included in accumulated other comprehensive income.
(9) Amount is primarily related to net unbenefited unrealized losses including an impairment charge from equity method investments and an
increase in foreign net operating losses partially offset by a write-off of previously unbenefited deferred tax assets for state capital loss
carryforwards.