Overstock.com 2002 Annual Report Download - page 42

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5. MARKETABLE SECURITIES
The Company's marketable securities consist of funds deposited into a capital management account managed by a financial institution. The financial
institution has invested these funds in municipal, government, and corporate bonds at December 31, 2002, as follows:
Cost
Basis
Unrealized
Gains
Unrealized
Losses
Estimated
Market Value
U.S. government and government agency securities $18,114 $ 72 $ — $ 18,186
Asset backed and agency securities 386 — (2) 384
Corporate securities 979 — (1) 978
Money market securities 442 2 — 444
Mortgage based securities 1,601 10 — 1,611
$21,522 $ 84 $ (3) $ 21,603
All marketable securities mature between 2003 and 2005.
6. INVENTORIES
Inventories consist of the following:
December 31,
2001 2002
Product inventory $8,529 $14,965
Less: allowance for obsolescence (943) (1,011)
$7,586 $13,954
7. PREPAID EXPENSES AND OTHER ASSETS
Prepaid expenses and other assets consist of the following:
December 31,
2001 2002
Inventory paid for in advance of receipt $263 $1,362
Other prepaid expenses 213 971
$476 $2,333
8. PROPERTY AND EQUIPMENT
Property and equipment consists of the following:
December 31,
2001 2002
Computer hardware and software $ 4,541 $ 5,386
Furniture and equipment 2,984 3,908
Leasehold improvements 12 12
7,537 9,306
Less: accumulated depreciation (2,519) (4,361)
$ 5,018 $ 4,945
Depreciation of property and equipment totaled $684, $1,712, and $1,842 for the years ended December 31, 2000, 2001 and 2002, respectively.
Property and equipment included assets under capital leases of $831 and $856 at December 31, 2001 and 2002, respectively and accumulated
amortization related to assets under capital leases of $359 and $691, respectively.
9. OTHER LONG-TERM ASSETS
Other long-term assets consist of the following:
December 31,