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&lt;p style="MARGIN: 0in 0in 0pt;"&gt;&lt;b&gt;&lt;font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold;" size="2"&gt;(1)&amp;#160;BASIS OF PRESENTATION&lt;/font&gt;&lt;/b&gt;&lt;/p&gt;
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&lt;p style="MARGIN: 0in 0in 0pt;"&gt;&lt;i&gt;&lt;font style="FONT-STYLE: italic; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt;" size="2"&gt;Principles of Consolidation &amp;#8212;&lt;/font&gt;&lt;/i&gt; &lt;font style="FONT-SIZE: 10pt;" size="2"&gt;The consolidated financial statements include the accounts of Good Sam Enterprises, LLC (&amp;#8220;GSE&amp;#8221;), and its subsidiaries (collectively the &amp;#8220;Company&amp;#8221;), presented in accordance with U.S. generally accepted accounting principles, (&amp;#8220;GAAP&amp;#8221;), and pursuant to the rules&amp;#160;and regulations of the Securities and Exchange Commission.&amp;#160; Affinity Group Holding, LLC (&amp;#8220;AGHI&amp;#8221;), a Delaware limited liability company (&amp;#8220;Parent&amp;#8221;), is the parent of Good Sam Enterprises, LLC.&amp;#160; The ultimate parent company of AGHI is AGI Holding Corp. (&amp;#8220;AGHC&amp;#8221;), a privately-owned corporation.&amp;#160; Certain prior period amounts shown within prior period financial statements have been reclassified to conform to the current period presentation.&lt;/font&gt;&lt;/p&gt;
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&lt;p style="MARGIN: 0in 0in 0pt;"&gt;&lt;font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt;" size="2"&gt;These interim consolidated financial statements should be read in conjunction with the Company&amp;#8217;s consolidated financial statements for the year ended December&amp;#160;31, 2012 and notes thereto included in the Company&amp;#8217;s Form&amp;#160;10-K as filed with the Securities and Exchange Commission.&amp;#160; In the opinion of management of the Company, these consolidated financial statements contain all adjustments of a normal recurring nature necessary to present fairly the financial position, results of operations and cash flows of the Company for the interim periods presented.&lt;/font&gt;&lt;/p&gt;
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