Overstock.com 2008 Annual Report Download - page 99

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Table of Contents
8. INVENTORIES
Inventories consist of the following (in thousands):
December 31,
2007 2008
Product inventory $ 24,293 $ 17,074
Inventory outbound in-transit 3,112 2,787
27,405 19,861
Less: reserve for obsolescence (1,762)(2,138)
$ 25,643 $ 17,723
9. FIXED ASSETS
Fixed assets consist of the following (in thousands):
December 31,
2007 2008
Computer hardware and software, including internal-use
software and website development $ 95,652 $ 109,397
Furniture and equipment 11,351 12,288
Leasehold improvements — 1,665
107,003 123,350
Less: accumulated depreciation and amortization (79,806)(100,206)
$ 27,197 $ 23,144
Depreciation and amortization of property and equipment totaled $32.2 million, $29.5 million, and $22.7 million for the years
ended December 31, 2006, 2007 and 2008, respectively. For the years ended December 31, 2006 and 2007, the Company incurred
additional depreciation and amortization expense related to decreases in useful lives of certain fixed assets and leasehold improvement
in connection with the Company's facilities consolidation. This additional depreciation expense was included in restructuring expense
(see "Note 3—Restructuring Expense").
Fixed assets included assets under capital leases of $19.8 million at December 31, 2007 and 2008, and accumulated amortization
related to assets under capital leases of $15.4 million and $19.3 million at December 31, 2007 and 2008, respectively.
10. OTHER LONG-TERM ASSETS
Other long-term assets consist of the following (in thousands):
December 31,
2007 2008
Domain names $ 490 $ 477
Intangibles 20 20
Less: accumulated amortization (456)(474)
54 23
Deposits and long-term prepaid expenses 32 515
$ 86 $ 538
Amortization of domain names and intangibles totaled $110,000, $21,000 and $18,000 for the years ended December 31, 2006,
2007 and 2008, respectively.
F-20