Overstock.com 2009 Annual Report Download - page 129

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Table of Contents
Overstock.com, Inc.
Notes to Consolidated Financial Statements (Continued)
15. BORROWINGS (Continued)
"Stock and Debt Repurchase Program"). As of December 31, 2009, a face amount of $60.0 million of the Senior Notes remain outstanding with a carrying
amount of $59.5 million and $528,000 of debt discount.
In May 2008, the FASB issued ASC Topic 470-20, Debt with Conversion and Other Options ("ASC 470-20"), which clarifies the accounting for
convertible debt instruments that may be settled in cash upon conversion, including partial cash settlement. ASC 470-20 specifies that an issuer of such
instruments should separately account for the liability and equity components of the instruments in a manner that reflect the issuer's non-convertible debt
borrowing rate when interest costs are recognized in subsequent periods. ASC 470-20 is effective for financial statements issued for fiscal years beginning
after December 15, 2008 and interim periods within those fiscal years. The adoption of ASC 470-20 did not have a material impact on the consolidated
financial statements.
Capital leases
The Company leased certain software and computer equipment during the year ended December 31, 2009, under non-cancelable leases that expire on
various dates through 2012.
Software and equipment acquired under capital leases totaled $19.8 million and $1.7 million, with accumulated amortization of $19.3 million and
$335,000 at December 31, 2008 and 2009. Depreciation expense for assets recorded under capital leases was $3.9 million and $335,000 for the years ended
December 31, 2008 and 2009, respectively.
Future payments of capital lease obligations are as follows (in thousands):
Payments due by period
2010 $ 646
2011 793
2012 116
Total minimum lease payments 1,555
Less: amount representing interest 229
Present value of capital lease obligations 1,326
Less: current portion 520
Capital lease obligations, non-current $ 806
F-34