SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS

12 Months Ended

Dec. 31, 2012

SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS

SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS

FINANCIAL STATEMENT SCHEDULE

        The financial statement Schedule II—VALUATION AND QUALIFYING ACCOUNTS is filed as part of the Form 10-K.

VIVUS, Inc.
SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS
(in thousands)

        Each of the following valuation and qualifying accounts are reported as assets and liabilities of continuing and discontinued operations in the consolidated balance sheets for all periods presented.

	Balance at Beginning of Period			Charged to Operations			Charges Utilized			Balance at End of Period
Allowance for Doubtful Accounts and Cash Discounts
Fiscal year ended December 31, 2010	$	(114	)	$	(285	)	$	399		$	—
Fiscal year ended December 31, 2011		—			—			—			—
Fiscal year ended December 31, 2012		—			53			4			57
Inventory Reserve
Fiscal year ended December 31, 2010		1,574			(353	)		(1,221)	(1)		—
Fiscal year ended December 31, 2011		—			—			—			—
Fiscal year ended December 31, 2012		—			—			—			—
Accrued Product Returns
Fiscal year ended December 31, 2010		3,026			906			(1,334	)		2,598
Fiscal year ended December 31, 2011		2,598			(317	)		(658	)		1,623
Fiscal year ended December 31, 2012		1,623			(45	)		(880	)		698
Accrued Chargebacks Reserve
Fiscal year ended December 31, 2010		1,617			3,103			(4,248	)		472
Fiscal year ended December 31, 2011		472			(278	)		(194	)		—
Fiscal year ended December 31, 2012	$	—		$	131		$	(131	)	$	—

(1)

The Company used $98,000 of its fully reserved component parts inventory and $367,000 of its fully reserved raw materials inventory in production. The fully reserved inventory is charged to cost of goods sold at a zero basis when used, which has a favorable impact on gross profit.