Overstock.com 2004 Annual Report Download - page 84

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The Company also leases 354 square feet for its warehouse facility in Salt Lake City, Utah under an operating lease which expires in August 2012.
Minimum future payments under these leases are as follows:
Year Ending
December 31,
2005 $ 4,099
2006 5,264
2007 4,958
2008 4,945
2009 5,078
Thereafter 26,321
$ 50,665
Rental expense for operating leases totaled $1,639, $1,955 and $1,933 for the years ended December 31, 2002, 2003 and 2004, respectively.
The Company is involved in various legal matters arising in the normal course of business. In the opinion of management, the Company's liability, if any,
arising from regulatory matters and legal proceedings related to these matters is not expected to have a material adverse impact on the Company's financial
position, results of operations and cash flows. The outcomes of legal matters in which the Company is presently involved are not probable and reasonably
estimable.
In October 2003, Tiffany (NJ) Inc. and Tiffany and Company filed a complaint against the Company in the United States District Court for the Southern
District of New York alleging that the Company has distributed counterfeit and otherwise unauthorized Tiffany product in violation of federal copyright and
trademark law and related state laws. The complaint seeks statutory and other damages in an unspecified amount and injunctive relief. In January 2005,
Tiffany (NJ) Inc. and Tiffany and Company filed four additional complaints against the Company in the United States District Court for the Southern District
of New York alleging that the Company has distributed counterfeit and otherwise unauthorized Tiffany product in violation of federal copyright and
trademark law and related state laws. These complaints also seek statutory and other damages in an unspecified amount and injunctive relief. Although the
Company has filed answers to these complaints and believes it has defenses to the allegations and intends to pursue them vigorously, the Company does not
have sufficient information to assess the validity of the claims or the amount of potential damages alleged in these suits.
In July 2004, Printmaker International, Ltd. filed a complaint against the Company in the United States District Court for the Southern District of New
York alleging that the Company has distributed counterfeit and otherwise unauthorized product in violation of federal copyright and trademark law and
related state laws. The complaint seeks statutory and other damages in an unspecified amount and injunctive relief. Although the Company has filed an
answer and believes it has defenses to the allegations and intends to pursue them vigorously, the Printmaker lawsuit is in the early stages of discovery, and the
Company does not have sufficient information to assess the validity of the claims or the amount of potential damages. The Company's fulfillment partner
(who is also a defendant in the
F-21