ACCOUNTING POLICIES (Tables)

9 Months Ended

Sep. 30, 2013

Accounting Policies [Abstract]

Schedule of fair value of financial instruments using levels of inputs

The fair value of these financial instruments was determined using the following levels of inputs as of September 30, 2013 (in thousands): 

	Fair Value Measurements at September 30, 2013:
	Total		Level 1		Level 2		Level 3
Assets:
Cash equivalents - Money market mutual funds	$	58,078	$	58,078	$	—	$	—
Trading securities held in a “rabbi trust” (1)	110		110		—		—
Total assets	$	58,188	$	58,188	$	—	$	—
Liabilities:
Deferred compensation accrual “rabbi trust” (2)	$	240	$	240	$	—	$	—
Total liabilities	$	240	$	240	$	—	$	—

The fair value of these financial instruments was determined using the following levels of inputs as of December 31, 2012 (in thousands): 

	Fair Value Measurements at December 31, 2012:
	Total		Level 1		Level 2		Level 3
Assets:
Cash equivalents - Money market mutual funds	$	76,248	$	76,248	$	—	$	—
Trading securities held in a “rabbi trust” (1)	264		264		—		—
Total assets	$	76,512	$	76,512	$	—	$	—
Liabilities:
Deferred compensation accrual “rabbi trust” (2)	$	266	$	266	$	—	$	—
Restructuring (3)	65		—		—		65
Total liabilities	$	331	$	266	$	—	$	65

 ___________________________________________

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

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

(3) — 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 agreements 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.

Schedule of estimated useful lives of the fixed assets

	Life (years)
Computer software	2-4
Computer hardware	3-4
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 income

Depreciation and amortization expense is classified within the corresponding operating expense categories on the consolidated statements of income as follows (in thousands): 

	Three months ended    September 30,				Nine months ended    September 30,
	2013		2012		2013		2012
Cost of goods sold - direct	$	87	$	123	$	292	$	350
Technology	2,937		3,371		9,595		10,570
General and administrative	283		345		946		1,015
Total depreciation and amortization, including internal-use software and website development	$	3,307	$	3,839	$	10,833	$	11,935

Schedule of costs of goods sold, including product cost and other costs and fulfillment and related costs

Cost of goods sold, including product cost and other costs and fulfillment and related costs are as follows (in thousands):

	Three months ended    September 30,								Nine months ended    September 30,
	2013				2012				2013				2012
Total revenue, net	$	301,426	100	%	$	255,352	100	%	$	906,624	100	%	$	757,255	100	%
Cost of goods sold
Product costs and other cost of goods sold	228,963		76	%	196,522		77	%	690,563		76	%	582,436		77	%
Fulfillment and related costs	13,313		4	%	12,288		5	%	40,136		4	%	37,600		5	%
Total cost of goods sold	242,276		80	%	208,810		82	%	730,699		81	%	620,036		82	%
Gross profit	$	59,150	20	%	$	46,542	18	%	$	175,925	19	%	$	137,219	18	%

Schedule of computation of basic and diluted net income per common share

The following table sets forth the computation of basic and diluted net income per common share for the periods indicated (in thousands, except per share data):

	Three months ended September 30,				Nine months ended September 30,
	2013		2012		2013		2012
Net income attributable to common shares	$	3,533	$	2,693	$	14,928	$	5,882
Net income per common share—basic:
Net income attributable to common shares—basic	0.15		0.11		0.63		0.25
Weighted average common shares outstanding—basic	23,766		23,447		23,692		23,382
Effect of dilutive securities:
Stock options and restricted stock awards	680		307		605		129
Weighted average common shares outstanding—diluted	24,446		23,754		24,297		23,511
Net income attributable to common shares—diluted	$	0.14	$	0.11	$	0.61	$	0.25

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

The following shares were excluded from the calculation of diluted shares outstanding as their effect would have been anti-dilutive (in thousands):

	Three months ended September 30,		Nine months ended September 30,
	2013	2012	2013	2012
Stock options and restricted stock units	6	541	38	546