Overstock.com 2004 Annual Report Download - page 81

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7. OTHER LONG-TERM ASSETS
Other long-term assets consist of the following:
December 31,
2003 2004
Domain names $ 323 $ 323
Less: accumulated amortization (116) (177)
207 146
Deferred financing fees, net — 206
Deposits and long-term prepaids 220 1,164
$ 427 $1,516
Amortization of domain names totaled $31, $36 and $61 for the years ended December 31, 2002, 2003 and 2004, respectively.
8. ACCRUED LIABILITIES
Accrued liabilities consist of the following:
December 31,
2003 2004
Inventory received but not invoiced $1,126 $ 6,593
Reserve for returns 1,110 2,835
Accrued payroll and other related costs 850 3,289
Deferred revenue — 1,048
Accrued marketing expenses 2,674 5,236
Merchant processing fee accrual 1,313 643
Accrued freight 661 506
Other accrued expenses 1,582 2,767
$9,316 $22,917
9. BORROWINGS
In May 2004, the Company entered into a senior secured credit facility for a revolving line of credit of up to the lesser of (i) $20,000, (ii) 60% of eligible
inventory, or (iii) 80% times the net liquidation percentage minus the sum of (i) the bank product reserve, and (ii) the aggregate amount of reserves, if any, all
as defined in the agreement. The borrowings were collateralized by the assets of the Company and bore interest at a minimum of 3.5% using the Wells Fargo
base rate as defined in the agreement, or, at the option of the Company, based on the LIBOR rate. The credit facility was terminated by the Company in
December 2004.
In December 2004, the Company replaced the senior secured credit facility described above with an amendment to a credit agreement ("Amended Credit
Agreement") with Wells Fargo Bank, National Association. The existing credit agreement (originally executed in February 2004) provided the Company with
a revolving line of credit for the purpose of issuing up to $10,000 of letters of credit for
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