Crown Media Holdings (CRWN)

Allowance for Doubtful Accounts

        The allowance for doubtful accounts is based upon the Company's assessment of probable loss related to uncollectible accounts receivable. The Company uses a number of factors in determining the allowance, including, among other things, collection trends. The Company's bad debt expense was $166,000 and $75,000 for the years ended December 31, 2007 and 2008, respectively. The Company's bad debt provision was a credit of $261,000 for the year ended December 31, 2006.

F-14

Table of Contents

CROWN MEDIA HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

For the Years Ended December 31, 2006, 2007 and 2008

2. Summary of Significant Accounting Policies and Estimates (Continued)

        The activity in the allowance for doubtful accounts for each of the three years ending December 31, 2006, 2007, and 2008, is as follows:

(1)

Represents amounts written off of $432,000 and $626,000 transferred to buyer of film assets.

Allowance for Doubtful Accounts

        The allowance for doubtful accounts is based upon the Company's assessment of probable loss related to uncollectible accounts receivable. The Company uses a number of factors in determining the allowance, including, among other things, collection trends. The Company's bad debt expense was $166,000 and $75,000 for the years ended December 31, 2007 and 2008, respectively. The Company's bad debt provision was a credit of $261,000 for the year ended December 31, 2006.

F-14

Table of Contents

CROWN MEDIA HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

For the Years Ended December 31, 2006, 2007 and 2008

2. Summary of Significant Accounting Policies and Estimates (Continued)

        The activity in the allowance for doubtful accounts for each of the three years ending December 31, 2006, 2007, and 2008, is as follows:

(1)

Represents amounts written off of $432,000 and $626,000 transferred to buyer of film assets.

Allowance for Doubtful Accounts

        The allowance for doubtful accounts is based upon the Company's assessment of probable loss related to uncollectible accounts
receivable. The Company uses a number of factors in determining the allowance, including, among other things, collection trends. The Company's bad debt expense was $166,000 and $75,000 for the years
ended December 31, 2007 and 2008, respectively. The Company's bad debt provision was a credit of $261,000 for the year ended December 31, 2006.

F-14

HREF="#bg75701a_main_toc">Table of Contents

CROWN MEDIA HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

For the Years Ended December 31, 2006, 2007 and 2008

2. Summary of Significant Accounting Policies and Estimates (Continued)

        The
activity in the allowance for doubtful accounts for each of the three years ending December 31, 2006, 2007, and 2008, is as follows:

(1)

Represents
amounts written off of $432,000 and $626,000 transferred to buyer of film assets.

Allowance for Doubtful Accounts

        The allowance for doubtful accounts is based upon the Company's assessment of probable loss related to uncollectible accounts
receivable. The Company uses a number of factors in determining the allowance, including, among other things, collection trends. The Company's bad debt expense was $166,000 and $75,000 for the years
ended December 31, 2007 and 2008, respectively. The Company's bad debt provision was a credit of $261,000 for the year ended December 31, 2006.

F-14

HREF="#bg75701a_main_toc">Table of Contents

CROWN MEDIA HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

For the Years Ended December 31, 2006, 2007 and 2008

2. Summary of Significant Accounting Policies and Estimates (Continued)

        The
activity in the allowance for doubtful accounts for each of the three years ending December 31, 2006, 2007, and 2008, is as follows:

(1)

Represents
amounts written off of $432,000 and $626,000 transferred to buyer of film assets.

Allowance for Doubtful Accounts

        The allowance for doubtful accounts is based upon the Company's assessment of probable loss related to uncollectible accounts receivable. The Company uses a number of factors in determining the allowance, including, among other things, collection trends. The Company's bad debt expense was $9.0 million and $166,000 for the years ended December 31, 2005 and 2007, respectively. The Company's bad debt provision was a credit of $261,000 for the year ended December 31, 2006.

        The activity in the allowance for doubtful accounts for each of the three years ending December 31, 2005, 2006, and 2007, is as follows:

(1)

Represents amounts written off of $9.7 million and $4.4 million transferred to buyer of international business.

(2)

Represents amounts written off of $432,000 and $626,000 transferred to buyer of film assets.

Allowance for Doubtful Accounts

        The allowance for doubtful accounts is based upon the Company's assessment of probable loss related to uncollectible accounts receivable. The Company uses a
number of factors in determining the allowance, including, among other things, collection trends. The Company's bad debt expense was $9.0 million and $166,000 for the years ended
December 31, 2005 and 2007, respectively. The Company's bad debt provision was a credit of $261,000 for the year ended December 31, 2006.

        The
activity in the allowance for doubtful accounts for each of the three years ending December 31, 2005, 2006, and 2007, is as follows:

(1)

Represents
amounts written off of $9.7 million and $4.4 million transferred to buyer of international business.

(2)

Represents
amounts written off of $432,000 and $626,000 transferred to buyer of film assets.

Allowance for Doubtful Accounts

The allowance for doubtful accounts is based upon the Company’s assessment of probable loss related to uncollectible accounts receivable. The Company uses a number of factors in determining the allowance, including, among other things, collection trends. The Company’s bad debt expense was $355,000 for the three months ended June 30, 2006.  The Company’s negative bad debt expense was $344,000 for the three months ended June 30, 2007. The Company’s bad debt expense was $1.3 million for the six months ended June 30, 2006. The Company’s negative bad debt expense was $13,000 for the six months ended June 30, 2007

Allowance for Doubtful Accounts

The allowance for doubtful accounts is based upon the Company’s assessment of probable loss related to uncollectible accounts receivable. The Company uses a number of factors in determining the allowance, including, among other things, collection trends. The Company’s bad debt expense was $916,000 and $330,000 for the three months ended March 31, 2006 and 2007, respectively.

Allowance for Doubtful Accounts

The allowance for doubtful accounts is based upon the Company’s assessment of probable loss related to uncollectible accounts receivable.  The Company’s bad debt recovery was $115,000 for the three months ended September 30, 2005. The Company’s bad debt expense was $1.0 million for the nine months ended September 30, 2005. The Company’s bad debt recovery was $1.0 million for the three months ended September 30, 2006. The Company’s bad debt expense was $254,000 for the nine months ended September 30, 2006.

Allowance for Doubtful Accounts

The allowance for doubtful accounts is based upon the Company’s assessment of probable loss related to uncollectible accounts receivable.  The Company’s bad debt expense was $2.1 million and $1.1 million for the three and six months ended June 30, 2005. The Company’s bad debt expense was $355,000 and $1.3 million for the three and six months ended June 30, 2006.

Allowance for Doubtful Accounts

The allowance for doubtful accounts is based upon the Company’s assessment of probable loss related to uncollectible accounts receivable.  The Company’s bad debt recovery was $946,000 for the three months ended March 31, 2005. The Company’s bad debt expense was $916,000 for the three months ended March 31, 2006.

Allowance for Doubtful Accounts

The allowance for doubtful accounts is based upon the Company’s assessment of probable loss related to uncollectible accounts receivable. The Company uses a number of factors in determining the allowance, including, among other things, collection trends. The Company’s bad debt expense was $1.1 million, $171,000, and $9.0 million for the years ended December 31, 2003, 2004 and 2005, respectively.

Allowance for Doubtful Accounts

The allowance for doubtful accounts is based upon the Company’s assessment of probable loss related to uncollectible accounts receivable.  The Company uses a number of factors in determining the allowance, including, among other things, collection trends.  The Company’s bad debt expense was $183,000 for the three months ended September 30, 2004, and bad debt recovery was $831,000 for the nine months ended September 30, 2004. The Company’s bad debt recovery was $115,000 for the three months ended September 30, 2005, and bad debt expense was $1.0 million for the nine months ended September 30, 2005.

Allowance for Doubtful Accounts

The allowance for doubtful accounts is based upon the Company’s assessment of probable loss related to uncollectible accounts receivable.  The Company uses a number of factors in determining the allowance, including, among other things, collection trends and current anticipated economic conditions in each country in which the Company derives its revenue.  The Company’s bad debt recovery was $2.0 million and $1.0 million for the three and six months ended June 30, 2004, respectively. The Company’s bad debt expense was $2.1 million and $1.1 million for the three and six months ended June 30, 2005.

10

Allowance for Doubtful Accounts

The allowance for doubtful accounts is based upon the Company’s assessment of probable loss related to uncollectible accounts receivable.  The Company uses a number of factors in determining the allowance, including, among other things, collection trends and current anticipated economic conditions in each country in which the Company derives its revenue.  The Company’s bad debt expense was $1.0 million for the three months ended March 31, 2004. The Company’s bad debt recovery was $946,000 for the three months ended March 31, 2005.

Allowance for Doubtful Accounts

The allowance for doubtful accounts is based upon the Company’s assessment of probable loss related to uncollectible accounts receivable. The Company uses a number of factors in determining the allowance, including, among other things, collection trends and current anticipated economic conditions in each country in which the Company derives its revenue. The Company’s bad debt expense was $4.1 million, $499,000, and $1.3 million for the years ended December 31, 2002, 2003 and 2004, respectively.