Overstock.com 2010 Annual Report Download - page 111

Download and view the complete annual report

Please find page 111 of the 2010 Overstock.com annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 154

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154

Table of Contents
Overstock.com, Inc.
Notes to Consolidated Financial Statements (Continued)
3. RESTRUCTURING EXPENSE
During the fourth quarter of 2006, we began a facilities consolidation and restructuring program designed to reduce the overall expense structure in an
effort to improve future operating performance. The facilities consolidation and restructuring program was substantially completed by the end of the second
quarter of 2007.
Restructuring liabilities along with charges (credits) to expense associated with the facilities consolidation and restructuring program are as follows as of
December 31, 2010 (in thousands):
Balance
12/31/2008 Accretion
Expense Net Cash
Payments Adjustments Balance
12/31/2009 Accretion
Expense Net Cash
Payments Adjustments Balance
12/31/2010
Lease and
contract
termination
costs $ 2,988 $ 285 $ (522) $ (66) $ 2,685 $ 240 $ (559) $ (569) $ 1,797
We reversed $569,000 of lease termination costs liability during the year ended December 31, 2010 due to changes in the estimate of sublease income,
primarily as a result of our entering into agreements with a sublessee to terminate their subleases and re-occupy a portion of the space previously ceased to be
used by us, due to our growth and need for additional space. During the year ended December 31, 2009, we reversed $66,000 of lease termination costs
liability due to changes in our estimate of sublease income, primarily as a result of entering into a sublease agreement for previously vacant space.
4. MARKETABLE SECURITIES
Our marketable securities are reported at fair value with the related unrealized gains and losses included in accumulated other comprehensive income
(loss), a component of stockholders' equity (deficit), net of any tax effect. Realized gains or losses on the sale of marketable securities are determined using
the specific-identification method and recognized in the statement of operations.
We evaluate our investments periodically for possible other-than-temporary impairment by reviewing factors such as the length of time and extent to
which fair value has been below cost basis, the financial condition of the issuer and our ability and intent to hold the investment for a period of time which
may be sufficient for anticipated recovery of market value. We record an impairment charge to the extent that the carrying value of our available-for-sale
securities exceeds the estimated fair market value of the securities and the decline in value is determined to be other-than-temporary. We recorded an "other
than temporary" impairment of marketable securities of $300,000 and realized losses of $34,000 during the year ended December 31, 2008. We had no
marketable securities at December 31, 2010 and 2009.
The components of realized losses on sales and impairment of marketable securities for the years ended December 31, 2010, 2009 and 2008 were (in
thousands):
December 31,
2010 2009 2008
Net loss on sales of marketable securities $ — $ (48) $ (334)
F-22