INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

Components of the provision for income taxes

	Year Ended December 31,
	2012		2011		2010
Current:
Federal	$	177,372	$	146,385	$	111,217
State	30,268		22,526		27,139
Foreign	3,951		2,827		279
	211,591		171,738		138,635

Deferred:
Federal	(743)		634		(3,913)
State	(483)		465		747
Foreign	(7,373)		(3,583)		(1,573)
	(8,599)		(2,484)		(4,739)

Valuation allowance	6,142		1,797		3,377
	$	209,134	$	171,051	$	137,273

Schedule of reconciliation of income taxes computed at statutory federal rate to total income taxes

	Year Ended December 31,
	2012		2011		2010
U.S. Federal tax expense at statutory rates	$	192,204	$	160,045	$	122,256
State income taxes, net of federal tax benefit	20,252		14,917		18,126
Permanent differences	5,968		1,176		1,634
Domestic production deduction	(15,469)		(11,551)		(9,450)
Other	37		4,667		1,330
Valuation allowance	6,142		1,797		3,377
	$	209,134	$	171,051	$	137,273

Components of the Company's deferred tax assets (liabilities)

	2012		2011
Deferred Tax Assets:
Reserve for sales returns	$	145	$	186
Reserve for doubtful accounts	28		42
Reserve for inventory obsolescence	2,753		3,082
Reserve for marketing development fund	4,595		4,485
Capitalization of inventory costs	1,524		972
State franchise tax	5,268		4,817
Accrued compensation	49		256
Accrued other liabilities	1,825		487
Deferred revenue	49,597		51,477
Stock-based compensation	19,965		16,605
Securities impairment	2,104		2,402
Foreign net operating loss carryforward	13,529		7,511
Prepaid supplies	2,008		3,159
Total gross deferred tax assets	$	103,390	$	95,481

Deferred Tax Liabilities:
Amortization of trademarks	$	(9,179)	$	(7,911)
Unrealized gain on available-for-sale investments	(1,006)		-
Amortization of graphic design	(81)		(52)
Depreciation	(5,304)		(7,340)
Total gross deferred tax liabilities	(15,570)		(15,303)

Valuation Allowance	(11,316)		(5,174)

Net deferred tax assets	$	76,504	$	75,004

Schedule of roll-forward of the total gross unrecognized tax benefits, not including interest and penalties

	Gross Unrealized Tax Benefits
Balance at January 1, 2010	$	397
Additions for tax positions related to the current year	-
Additions for tax positions related to the prior year	68
Decreases for tax positions related to prior years	-
Balance at December 31, 2010	$	465
Additions for tax positions related to the current year	-
Additions for tax positions related to the prior year	1,445
Decreases for tax positions related to prior years	-
Balance at December 31, 2011	$	1,910
Additions for tax positions related to the current year	-
Additions for tax positions related to the prior year	520
Decreases for tax positions related to prior years	(1,504)
Balance at December 31, 2012	$	926

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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