Overstock.com 2003 Annual Report Download - page 58

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4. MARKETABLE SECURITIES
The Company's marketable securities consist of funds deposited into capital management accounts managed by two financial institutions. The financial
institutions 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
The financial institutions have invested these funds in municipal, government, and corporate bonds at December 31, 2003, as follows:
Cost
Basis
Unrealized
Gains
Unrealized
Losses
Estimated
Market Value
U.S. government and government agency securities $ 9,299 $ 1 $ (7) $ 9,293
Corporate securities 296 — — 296
Money market securities 748 1 — 749
Mortgage based securities 1,169 — (7) 1,162
$11,512 $ 2 $ (14) $ 11,500
All marketable securities mature between 2004 and 2006.
The components of gains and losses on sales of marketable securities for the years ended December 31, 2001, 2002 and 2003 were:
Year ended December 31,
2001 2002 2003
Gross gains $ — $ — $ 19
Gross losses — — (4)
Net realized gain on sales of marketable securities $ — $ — $ 15
F-14
5. INVENTORIES
Inventories consist of the following:
December 31,
2002 2003
Product inventory $14,965 $31,064
Less: allowance for obsolescence (1,011) (1,138)
$13,954 $29,926
6. PREPAID EXPENSES AND OTHER ASSETS
Prepaid expenses and other assets consist of the following:
December 31,
2002 2003
Inventory paid for in advance of receipt $1,362 $2,946
Other prepaid expenses 971 1,637
$2,333 $4,583
7. PROPERTY AND EQUIPMENT
Property and equipment consists of the following: