ACCOUNTING POLICIES (Tables)

9 Months Ended

Sep. 30, 2012

ACCOUNTING POLICIES

Schedule of fair value of financial instruments using levels of inputs

	Fair Value Measurements at September 30, 2012:
	Total		Level 1		Level 2		Level 3
Assets:
Cash equivalents - Money market mutual funds	$	48,129	$	48,129	$	—	$	—
Trading securities held in a “rabbi trust” (1)	248		248		—		—
Total assets	$	48,377	$	48,377	$	—	$	—
Liabilities:
Restructuring Accrual (2)	$	66	$	—	$	—	$	66
Deferred compensation accrual “rabbi trust” (3)	244		244		—		—
Total liabilities	$	310	$	244	$	—	$	66

	Fair Value Measurements at December 31, 2011:
	Total		Level 1		Level 2		Level 3
Assets:
Cash equivalents - Money market mutual funds	$	81,159	$	81,159	$	—	$	—
Trading securities held in a “rabbi trust” (1)	302		302
Total assets	$	81,461	$	81,461	$	—	$	—
Liabilities:
Deferred compensation accrual “rabbi trust” (3)	302		302		—		—
Total liabilities	$	302	$	302	$	—	$	—

(1)— Trading securities held in a rabbi trust are included in Other current and long-term assets in the consolidated balance sheets.

(2)— The fair value was determined based on the income approach, in which we used internal cash flow projections over the life of the underlying lease agreement discounted based on a credit adjusted risk-free rate of return. See the roll forward related to the restructuring accrual at Note 3—Restructuring Expense.

(3) — Non qualified deferred compensation for rabbi trust is included in Accrued liabilities and Other long-term liabilities in the consolidated balance sheets.

Schedule of estimated useful lives of the fixed assets

	Life  (years)
Computer software	2-3
Computer hardware	3
Furniture and equipment	3-5

Schedule of depreciation and amortization expense which is classified within the corresponding operating expense categories on the consolidated statements of operations

	Three months ended				Nine months ended
	September 30,				September 30,
	2012		2011		2012		2011
Cost of goods sold - direct	$	123	$	137	$	350	$	583
Technology	3,371		3,766		10,570		11,009
General and administrative	345		307		1,015		880
Total depreciation and amortization, including internal-use software and website development	$	3,839	$	4,210	$	11,935	$	12,472

Schedule of gross profit

	Three months ended September 30,								Nine months ended September 30,
	2012				2011				2012				2011
Total revenue, net	$	255,352	100	%	$	239,738	100	%	$	757,255	100	%	$	740,200	100	%
Cost of goods sold
Product costs and other cost of goods sold	196,522		77	%	189,074		79	%	582,436		77	%	573,204		78	%
Fulfillment and related costs	12,288		5	%	12,291		5	%	37,600		5	%	38,769		5	%
Total cost of goods sold	208,810		82	%	201,365		84	%	620,036		82	%	611,973		83	%
Gross profit	$	46,542	18	%	$	38,373	16	%	$	137,219	18	%	$	128,227	17	%

Schedule of computation of basic and diluted net income (loss) per common share

	Three months ended September 30,					Nine months ended September 30,
	2012		2011			2012		2011
Net income (loss)	$	2,693	$	(7,787	)	$	5,882	$	(16,029	)
Deemed dividend related to redeemable common stock	—		—			—		(12		)
Net income (loss) attributable to common shares	$	2,693	$	(7,787	)	$	5,882	$	(16,041	)
Net income (loss) per common share—basic:
Net income (loss) attributable to common shares—basic	$	0.11	$	(0.33	)	$	0.25	$	(0.69	)
Weighted average common shares outstanding—basic	23,447		23,276			23,382		23,253
Effect of dilutive securities:
Stock options and restricted stock awards	307		—			129		—
Weighted average common shares outstanding—diluted	23,754		23,276			23,511		23,253
Net income (loss) attributable to common shares—diluted	$	0.11	$	(0.33	)	$	0.25	$	(0.69	)

Schedule of anti-dilutive securities excluded from the calculation of diluted shares outstanding

	Three months ended September 30,		Nine months ended September 30,
	2012	2011	2012	2011
Stock options and restricted stock awards	541	985	546	985