Overstock.com 2005 Annual Report Download - page 103

Download and view the complete annual report

Please find page 103 of the 2005 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 118

  • 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

Overstock.com, Inc.
Notes to Consolidated Financial Statements (Continued)
19. OTHER COMPREHENSIVE LOSS
The Company follows SFAS No. 130, Reporting Comprehensive Income. This Statement establishes requirements for reporting
comprehensive income and its components. The Company's comprehensive loss for the years ended December 31, 2003, 2004 and
2005 is as follows (in thousands):
Year ended December 31,
2003 2004 2005
Net loss $ (11,548 ) $ (4,540 ) $ (24,918 )
Net unrealized (loss) on marketable securities (93 ) (204 ) (54 )
Unrealized gain on foreign bonds — — 1,125
Foreign currency translation adjustment (1 )22 86
Comprehensive loss $ (11,642 )$ (4,722 )$ (23,761 )
20. OTHER INCOME (EXPENSE), NET
Other income (expense), net consisted of the following (in thousands):
Year ended December 31,
2003 2004 2005
Gain from early retirement of convertible senior notes $ — $ — $ 6,158
Loss on disposal of software — — (1,457 )
Other 115 (49 )27
Other income (expense), net $ 115 $ (49 )$ 4,728
21. INCOME TAXES
The components of the Company's deferred tax assets and liabilities as of December 31, 2004 and 2005 are as follows (in
thousands):
December 31,
2004 2005
Deferred tax assets:
Net operating loss carryforwards $ 25,036 $ 28,006
Temporary differences:
Accrued expenses 3,146 6,071
Reserves and other 1,865 4,147
30,047 38,224
Deferred tax liabilities:
Temporary differences:
Depreciation (2,597 ) (1,639 )
Valuation allowance (27,450 )(36,585 )
Net asset $ — $ —
As a result of the Company's history of losses, a valuation allowance has been provided for the full amount of the Company's net
deferred tax assets. In management's opinion, it is unlikely that such benefits will be realized.
F-33