Overstock.com 2006 Annual Report Download - page 66

of Ski West, Inc. for $25.1 million. This was offset by sales of marketable securities of $216.3 million. We plan to reduce capital
expenditures to $10.0 million or less in 2007.
Financing activities resulted in cash outflows of $99.1 million for the year ended December 31, 2005 and cash inflows of $64.0
million for the year ended December 31, 2006. The cash inflows of $64.0 million in 2006 primarily are the result of $64.4 million
received from the sale of our common stock and $2.5 million received from the exercise of employee stock options, offset by
payments on capital lease obligations of $3.0 million. Cash outflows for financing activities in 2005 were primarily from capital lease
payments of $7.1 million, payments of $35.7 million to retire our convertible senior notes, $24.1 million to purchase our common
stock, and $47.5 million to purchase call options to purchase our common stock. These outflows in 2005 were offset by $7.9 million
related to the settlement of call options for cash and $7.3 million from the exercise of stock options and warrants.
Certain prior-year amounts have been reclassified to conform to the current year's financial statement presentation. In addition,
we have revised our consolidated statements of cash flows for the year ended December 31, 2005 to present the operating and
investing portion of the cash flows attributable to discontinued operations on a separately identifiable basis. We had previously
recorded these amounts on a combined basis.
While we believe that the cash and marketable securities currently on hand, amounts available under our credit facility and
expected cash flows from future operations will be sufficient to continue operations for at least the next twelve months, we
may require additional financing. However, there can be no assurance that if additional financing is necessary it will be available, or,
if available, that such financing can be obtained on satisfactory terms. Failure to generate sufficient revenues, generate profitability or
raise additional capital could have a material adverse effect on our ability to continue as a going concern and to achieve our intended
business objectives. Any projections of future cash needs and cash flows are subject to substantial uncertainty.
Contractual Obligations and Commitments. The following table summarizes our contractual obligations as of December 31,
2006 and the effect such obligations and commitments are expected to have on our liquidity and cash flow in future periods:
Payments Due by Period
Contractual Obligations Total
Less than
1 Year 1-3 Years 4-5 Years
After
5 years
(in thousands)
Long-term debt arrangements $ 77,000 $ — $ — $ 77,000 $ —
Interest on convertible senior notes 14,438 2,888 5,775 5,775 —
Capital lease obligations 10,025 5,997 4,028 — —
Operating leases 48,666 8,718 12,841 10,867 16,240
Purchase obligations 14,496 14,496 — — —
Line of credit — — — — —
Total contractual cash obligations $164,625 $ 32,099 $22,644 $93,642 $16,240
Amounts of Commitment Expiration Per Period
Other Commercial Commitments
Total
Amounts
Committed
Less than
Year 1 1-3 Years 4-5 Years
Over
5 years
(in thousands)
Letters of credit $ 7,130 $ 7,130 $ — $ — $ —
Redeemable common stock — — — — —
Total commercial commitments $ 7,130 $ 7,130 $ — $ — $ —
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