Overstock.com 2008 Annual Report Download - page 55

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Table of Contents
$3.9 million which was recorded as of December 31, 2008 (see Item 15 of Part IV, "Financial Statements"—Note 4—"Acquisition and
Subsequent Discontinued Operations").
Income taxes
For the year ended December 31, 2007 and 2008, we incurred net operating losses, and consequently paid insignificant amounts
of federal, state and foreign income taxes. As of December 31, 2007 and 2008, we had net operating loss carry-forwards of
approximately $164.2 million and $171.8 million, respectively, which may be used to offset future taxable income. An additional
$21.9 million of net operating losses are limited under Internal Revenue Code Section 382 to $799,000 a year. These net operating
loss carry-forwards will begin to expire in 2018.
Seasonality
Based upon our historical experience, revenue typically increases during the fourth quarter because of the holiday retail season.
The actual quarterly results for each quarter could differ materially depending upon consumer preferences, availability of product and
competition, among other risks and uncertainties. Accordingly, there can be no assurances that seasonal variations will not materially
affect our results of operations in the future. The following table reflects our total revenues for each of the quarters since 2005 (in
thousands):
First Quarter Second Quarter Third Quarter Fourth Quarter
2008 $ 202,814 $ 188,836 $ 186,855 $ 255,862
2007 162,156 149,171 160,059 294,516
2006 179,783 159,717 158,230 282,407
2005 165,028 153,519 166,396 310,033
51