Overstock.com 2012 Annual Report Download - page 122
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Table of Contents
We are subject to audit by the IRS and various states for periods since inception. We do not believe there will be any material changes in our
unrecognized tax positions over the next 12 months. Our policy is to recognize interest and penalties accrued on any unrecognized tax positions as a
component of income tax expense.
A reconciliation of the beginning and ending tax contingencies, excluding interest and penalties, is as follows (in thousands):
The interest and penalties accrued on tax contingencies as of December 31, 2012 and 2011 were $97,000 and $82,000, respectively. Tax years
beginning in 2010 are subject to examination by taxing authorities, although net operating loss and credit carry forwards from all years are subject to
examinations and adjustments for at least three years following the year in which the attributes are used.
On occasion, Haverford-Valley, L.C. (an entity owned by our Chairman of the Board) and certain affiliated entities make travel arrangements for
our executives and pay the travel related expenses incurred by our executives on company business. During the years ended December 31, 2012, 2011
and 2010 we reimbursed Haverford-Valley L.C. $93,000, $122,000, and $139,000, respectively, for these expenses.
We retired all of the remaining $34.6 million of the Senior Notes during the year ended December 31, 2011, for $34.6 million in cash, resulting in
a loss of $54,000 on early extinguishment of debt, net of $77,000 of associated unamortized discount. Of the $34.6 million in Senior Notes retired
during the year ended December 31, 2011, $10.1 million were held by Chou Associates Management, Inc. or an affiliate of Chou ("Chou") and
$21.7 million were held by Fairfax Financial Holdings Limited or an affiliate of Fairfax ("Fairfax"). Chou and Fairfax are beneficial owners of more
than 5% of our common stock. We retired $25.4 million of the Senior Notes during the year ended December 31, 2010 for $24.9 million in cash,
resulting in a gain of $346,000 on early extinguishment of debt, net of $158,000 of associated unamortized discount.
Segment information has been prepared in accordance with ASC Topic 280 . Segments were determined based on how we
manage the business. There were no inter-segment sales or transfers during the years ended December 31, 2012, 2011 and 2010. We evaluate the
performance of our segments and allocate resources to them based primarily on gross profit. The table below
F-35
Beginning balance $ 231 $ 191 $ 112
Additions for tax positions related to the current year — — —
Additions for tax positions taken in prior years — 40 79
Ending balance $ 231 $ 231 $ 191