Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2012

Financial Assets Measured at Fair Value on Recurring Basis

The following table summarizes the Company’s financial assets measured at fair value on a recurring basis as of December 31 (in thousands):

			Fair Value Measurements
	Carrying Amount as of		As of December 31, 2011
	December 31, 2011		Level 1		Level 2		Level 3
Cash equivalents	$	85,343	$	85,343	$	—	$	—
Marketable securities		214		214		—		—
	$	85,557	$	85,557	$	—	$	—

			Fair Value Measurements
	Carrying Amount as of		As of December 31, 2012
	December 31, 2012		Level 1		Level 2		Level 3
Cash equivalents	$	102,173	$	102,173	$	—	$	—
Marketable securities		218		218		—		—
	$	102,391	$	102,391	$	—	$	—

Net of Inventory Obsolescence Reserve

Inventory, which includes the ex-factory cost of goods, capitalized warehouse costs and in-bound freight and duty, is valued at the lower of cost (first-in, first-out) or market, net of inventory obsolescence reserve, and consists of the following (in thousands):

	December 31,
	2011		2012
Raw materials	$	2,428	$	3,296
Finished goods		44,591		56,394
	$	47,019	$	59,690

Property and Equipment, Estimated Useful Lives

Property and equipment are stated at cost and are being depreciated using the straight-line method over their estimated useful lives as follows:

Office equipment	5 years
Automobiles	5 years
Furniture and fixtures	5 - 7 years
Leasehold improvements	Shorter of length of lease or 10 years

Reconciliation of the Weighted-Average Shares Used in Computation of Basic and Diluted Earnings Per Share

The following table is a reconciliation of the weighted-average shares used in the computation of basic and diluted earnings per share (“EPS”) for the periods presented (in thousands, except per share data):

	2010
			Weighted
			Average
	Income		Shares		Per Share
Basic EPS
Income available to common stockholders	$	47,049		27,491	$	1.71
Effect of dilutive securities:
Assumed conversion of convertible senior notes		5,434		6,785
Options and warrants		―		44
Unvested restricted stock grants		―		193
Diluted EPS
Income available to common stockholders plus assumed exercises and conversion	$	52,483		34,513	$	1.52

	2011
			Weighted
			Average
	Income		Shares		Per Share
Basic EPS
Income available to common stockholders	$	8,472		26,760	$	0.32
Effect of dilutive securities:
Assumed conversion of convertible senior notes		―		―
Options and warrants		―		22
Unvested restricted stock grants		―		111
Diluted EPS
Income available to common stockholders plus assumed exercises and conversion	$	8,472		26,893	$	0.32

	2012
				Weighted
				Average
	Loss			Shares		Per Share
Basic EPS
Loss available to common stockholders	$	(104,800	)		23,963	$	(4.37	)
Effect of dilutive securities:
Options and warrants		―			―
Assumed conversion of convertible senior notes		―			―
Unvested restricted stock grants		―			―
Diluted EPS
Loss available to common stockholders plus assumed exercises and conversion	$	(104,800	)		23,963	$	(4.37	)