Travelzoo 2008 Annual Report Download - page 74

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(4) Other Balance Sheet Items
The details of changes to the allowance for doubtful accounts are as follows (in thousands):
Balance at December 31, 2006............................................... 726
Additions — charged to costs and expenses, net ................................ (48)
Deductions — write-offs.................................................. (388)
Balance at December 31, 2007............................................... 290
Additions — charged to costs and expenses, net ................................ 323
Deductions — write-offs.................................................. (255)
Balance at December 31, 2008............................................... $358
The details of prepaid expenses and other current assets as of December 31, 2008 and 2007 were as follows (in
thousands):
2008 2007
December 31,
Income tax receivable ............................................. $1,709 $ 999
Prepaid expenses ................................................ 715 978
Other current assets .............................................. 302 5
Total prepaid expenses and other current assets .......................... $2,726 $1,982
The details of accrued expenses as of December 31, 2008 and 2007 were as follows (in thousands):
2008 2007
December 31,
Accrued compensation expense ...................................... $2,235 $1,159
Accrued advertising expense ........................................ 1,598 2,011
Accrued professional services expense ................................ 484 541
Accrued payments to third-party partners of the Travelzoo Network ........... 308 109
Other accrued expenses ........................................... 337 788
Total accrued expenses ............................................ $4,962 $4,608
(5) Income Taxes
The components of income (loss) before income tax expense for the years ended December 31, 2008, 2007 and
2006 were as follows (in thousands):
2008 2007 2006
U.S. .............................................. $21,762 $30,891 $33,196
Foreign ............................................ (17,853) (8,780) (2,191)
$ 3,909 $22,111 $31,005
Income tax expense (benefit) for the years ended December 31, 2008, 2007, and 2006 consisted of the
following current and deferred components categorized by federal and state jurisdictions. The current provision is
generally that portion of income tax expense that is currently payable to the taxing authorities. The Company makes
estimated payments of these amounts during the year. The deferred tax provision results from changes in the
Company’s deferred tax assets (future deductible amounts) and tax liabilities (future taxable amounts), which are
presented in the last table of this footnote.
50
TRAVELZOO INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)