Overstock.com 2010 Annual Report Download - page 110

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Table of Contents
Overstock.com, Inc.
Notes to Consolidated Financial Statements (Continued)
2. ACCOUNTING POLICIES (Continued)
The following table sets forth the computation of basic and diluted net income (loss) per common share for the periods indicated (in thousands, except
per share data):
Year ended December 31
2010 2009 2008
Net income (loss) $ 13,889 $ 7,747 $ (11,006)
Deemed dividend related to redeemable common stock (112) (48) (77)
Net income (loss) attributable to common shares $ 13,777 $ 7,699 $ (11,083)
Net income (loss) per common share—basic:
Net income (loss) attributable to common shares—basic $ 0.60 $ 0.34 $ (0.48)
Weighted average common shares outstanding—basic 23,019 22,821 22,901
Effect of dilutive securities:
Stock options and restricted stock awards 347 246 —
Convertible senior notes — — —
Weighted average common shares outstanding—diluted 23,366 23,067 22,901
Net income (loss) attributable to common shares—diluted $ 0.59 $ 0.33 $ (0.48)
The following shares were excluded from the calculation of diluted weighted average shares outstanding as their effect would have been anti-dilutive (in
thousands):
Year ended December 31,
2010 2009 2008
Stock options and restricted stock units 551 740 1,423
Convertible senior notes 454 787 885
Accounting pronouncements issued not yet adopted
In January 2010, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2010-06, Improving
Disclosures About Fair Value Measurements, which requires reporting entities to make new disclosures about recurring or nonrecurring fair-value
measurements including significant transfers into and out of Level 1 and Level 2 fair-value measurements and information on purchases, sales, issuances, and
settlements on a gross basis in the reconciliation of Level 3 fair-value measurements. ASU 2010-06 is effective for annual reporting periods beginning after
December 15, 2009, except for Level 3 reconciliation disclosures which are effective for annual periods beginning after December 15, 2010. We do not expect
the remaining adoption of ASU 2010-06 related to the reconciliation of Level 3 fair value measurements to have a material impact on our consolidated
financial statements.
In October 2009, the FASB issued ASU 2009-13, which amends ASC Topic 605, Revenue Recognition, to require companies to allocate revenue in
multiple-element arrangements based on an element's estimated selling price if vendor-specific or other third-party evidence of value is not available. ASU
2009-13 is effective for annual reporting periods beginning after December 15, 2010. We do not expect the adoption of ASU 2009-13 to have a material
impact on our consolidated financial statements.
F-21