Overstock.com 2002 Annual Report Download - page 34

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Schedule II Valuation and Qualifying Accounts
Report of Independent Accountants
To the Board of Directors and
Stockholders of Overstock.com, Inc.
In our opinion, the consolidated financial statements listed in the index appearing on page F-1 present fairly, in all material respects, the financial
position of Overstock.com, Inc. and its subsidiary (the "Company") at December 31, 2001 and 2002, and the results of their operations and their cash flows
for each of the three years in the period ended December 31, 2002, in conformity with accounting principles generally accepted in the United States of
America. In addition, in our opinion the financial statement schedule listed in the index appearing on page F-1 presents fairly, in all material respects, the
information set forth therein when read in conjunction with the related consolidated financial statements. These consolidated financial statements and
financial statement schedule are the responsibility of the Company's management; our responsibility is to express an opinion on these consolidated financial
statements and financial statement schedule based on our audits. We conducted our audits of these statements in accordance with auditing standards generally
accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our opinion.
As discussed in Note 2 to the consolidated financial statements, effective January 1, 2002, the Company changed its method of accounting for goodwill
in accordance with Statement of Financial Accounting Standards No. 142, Goodwill and Other Intangible Assets.
/s/ PricewaterhouseCoopers LLP
Salt Lake City, Utah
January 27, 2003 (except
as to Note 23 which
is as of February 18, 2003)
Overstock.com, Inc.
Consolidated Balance Sheets
December 31,
2001 2002
(in thousands)
Assets
Current assets:
Cash and cash equivalents $ 3,729 $ 11,059
Marketable securities — 21,603
Accounts receivable, net 1,565 6,994
Inventories, net 7,586 13,954
Prepaid expenses and other assets 476 2,333
Total current assets 13,356 55,943
Property and equipment, net 5,018 4,945
Goodwill 2,784 2,784
Other long-term assets, net 556 284
Total assets $ 21,714 $ 63,956
Liabilities, Redeemable Securities and Stockholders' Equity
Current liabilities:
Accounts payable $ 3,680 $ 13,731
Accrued liabilities 2,093 6,409
Notes payable, related party 4,258 —
Capital lease obligations, current 254 124
Total current liabilities 10,285 20,264
Capital lease obligations, non-current 165 58