Overstock.com 2007 Annual Report Download - page 130

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Overstock.com, Inc.
Notes to Consolidated Financial Statements (Continued)
23. BUSINESS SEGMENTS (Continued)
allocates resources to them based primarily on gross profit. The table below summarizes information about reportable segments (in thousands):
Direct Fulfillment partner Consolidated
2005
Revenue $324,875 $ 474,441 $ 799,316
Cost of goods sold 282,383 400,057 682,440
Gross profit 42,492 74,384 116,876
Operating expenses (138,099)
Other income (expense), net (1,124)
Loss from continuing operations $ (22,347)
2006
Revenue $303,202 $ 484,948 $ 788,150
Cost of goods sold 284,943 408,407 693,350
Gross profit 18,259 76,541 94,800
Operating expenses (188,566)
Other income (expense), net (1,118)
Loss from continuing operations $ (94,884)
2007
Revenue $195,622 $ 564,539 $ 760,161
Cost of goods sold 164,368 468,222 632,590
Gross profit 31,254 96,317 127,571
Operating expenses (169,170)
Other income (expense), net 508
Loss from continuing operations $ (41,091)
The direct segment includes revenues, direct costs, and allocations associated with sales fulfilled from our warehouse. Costs for this segment include
product costs, inbound freight, warehousing, and fulfillment costs, credit card fees and customer service costs.
The fulfillment partner segment includes revenues, direct costs and cost allocations associated with the Company's third party fulfillment partner sales
and are earned from selling the merchandise of third parties over the Company's Website. This segment also includes revenues and costs associated with the
auctions and cars listing businesses. The costs for this segment include product costs, warehousing and fulfillment costs, credit card fees and customer service
costs.
Assets have not been allocated between the segments for management purposes, and as such, they are not presented here.
During the years 2005 through 2007, over 99% of sales were made to customers in the United States of America. At December 31, 2006 and 2007, all of
the Company's fixed assets were located in the United States of America.
F-41