v2.4.0.6
Summary of Significant Accounting Policies (Policies)
9 Months Ended
Sep. 30, 2012
Concentration of Credit Risk
Concentration of Credit Risk
Financial instruments that subject the Company to a significant concentration of credit risk consist primarily of accounts receivable. The majority of the Company’s accounts receivable are due from large sporting goods retailers. Credit is extended based on an evaluation of the customer’s financial condition, and generally collateral is not required. The most significant customers that accounted for a large portion of net revenues and accounts receivable were as follows:
 
 
Customer
A
 
Customer
B
 
Customer
C
Net revenues
 
 
 
 
 
Nine months ended September 30, 2012
17.5
%
 
6.0
%
 
5.9
%
Nine months ended September 30, 2011
19.2
%
 
8.4
%
 
6.4
%
Accounts receivable
 
 
 
 
 
As of September 30, 2012
25.2
%
 
8.3
%
 
6.9
%
As of December 31, 2011
25.4
%
 
8.6
%
 
5.5
%
As of September 30, 2011
27.2
%
 
11.2
%
 
8.8
%
Allowance For Doubtful Accounts
Allowance for Doubtful Accounts
As of September 30, 2012, December 31, 2011 and September 30, 2011, the allowance for doubtful accounts was $3.2 million, $4.1 million and $3.7 million, respectively.
Shipping and Handling Costs
Shipping and Handling Costs
The Company charges certain customers shipping and handling fees. These fees are recorded in net revenues. The Company includes the majority of outbound handling costs as a component of selling, general and administrative expenses. Outbound handling costs include costs associated with preparing goods to ship to customers and certain costs to operate the Company’s distribution facilities. These costs, included within selling, general and administrative expenses, were $9.4 million and $8.0 million for the three months ended September 30, 2012 and 2011, respectively, and $24.0 million and $18.2 million for the nine months ended September 30, 2012 and 2011, respectively. The Company includes outbound freight costs associated with shipping goods to customers as a component of cost of goods sold.
Management Estimates
Management Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates, including estimates relating to assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.