Overstock.com 2007 Annual Report Download - page 47

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As of December 31,
2003 2004 2005 2006 2007
(in thousands)
Balance Sheet Data:
Cash and cash equivalents $28,846 $198,678 $ 55,875 $126,965 $101,394
Marketable securities 11,500 88,802 55,799 — 46,000
Working capital 46,101 267,947 80,162 65,072 71,239
Total assets 98,549 377,543 325,913 256,165 232,529
Total indebtedness 161 117,589 84,676 84,336 82,453
Redeemable common stock 2,978 3,166 3,205 — —
Stockholders' equity 55,731 169,811 89,749 61,964 26,830
Effective January 1, 2006, we adopted SFAS 123(R) and recognized stock-based compensation of $4.1 million and $4.5 million in 2006 and 2007,
respectively.
During the fourth quarter of 2006, we commenced implementation of a facilities consolidation and restructuring program designed to reduce the
overall expense structure in an effort to improve future operating performance (see Item 15 of Part IV, "Financial Statements"—Note 3
—"Restructuring Expense").
As part of the program to reduce our expense structure and sell non-core businesses, we decided during the fourth quarter of 2006 to sell our travel
subsidiary ("OTravel"). As a result, OTravel's operations have been classified as a discontinued operation and therefore are not included in the results
of continuing operations.The loss from discontinued operations for OTravel was $6.9 million for the year ended December 31, 2006 (including a
goodwill impairment charge of $4.5 million) and $3.9 million for the year ended December 31, 2007 (including a goodwill impairment charge of
$3.8 million—see Item 15 of Part IV, "Financial Statements"—Note 4—"Acquisition and Subsequent Discontinued Operations").
Includes the correction of an error requiring a change in revenue recognition from ship date to estimated delivery date. This correction resulted in a
deferral of $13.7 million of revenue (including $3.7 million of direct revenue and $10.0 million of fulfillment partner revenue), and a decrease in cost
of goods sold of $11.6 million ($3.1 million direct and and $8.5 million fulfillment partner), which reduced gross profit and increased net loss by
$2.1 million (see Item 15 of Part IV, "Financial Statements"—Note 2—"Summary of Significant Accounting Policies"—"Revenue Recognition").
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