Overstock.com 2009 Annual Report Download - page 130

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Table of Contents
Overstock.com, Inc.
Notes to Consolidated Financial Statements (Continued)
16. COMMITMENTS AND CONTINGENCIES
Summary of future minimum lease payments for all operating leases
The Company currently leases office and warehouse space and computer equipment. Minimum future payments under all operating leases as of
December 31, 2009, are as follows (in thousands):
Payments due by period
2010 $ 8,534
2011 8,490
2012 7,948
2013 7,305
2014 7,499
Thereafter 7,264
$ 47,040
Rental expense for operating leases totaled $11.6 million, $9.1 million and $7.5 million for the years ended December 31, 2007, 2008 and 2009,
respectively. Estimated sublease income of $4.6 million is expected over the next five years of which $1.3 million is anticipated to be received in the next
twelve months.
The Company incurred $2.7 million of leasehold improvements related to the build out of a call center at one of its leased facilities in 2008. The
Company paid cash of $1.0 million and financed the remaining $1.7 million for leasehold improvements through increased rent payments to the landlord
which it has recorded in other long-term liabilities. Minimum future payments above include amounts required to satisfy this liability.
Legal Proceedings
From time to time, the Company receives claims of and becomes subject to consumer protection, employment, intellectual property and other
commercial litigation related to the conduct and operation of the Company's business and the sale of products on the Company's Website. In connection with
such litigation, the Company may be subject to significant damages or equitable remedies. Such litigation could be costly and time consuming and could
divert its management and key personnel from its business operations. The Company does not currently believe that any of its outstanding litigation will have
a material adverse effect on its financial statements or business. However, due to the uncertainty of litigation and depending on the amount and the timing, an
unfavorable resolution of some or all of these matters could materially affect the Company's business, results of operations, financial position, or cash flows.
On August 11, 2005, along with shareholder plaintiffs, the Company filed a complaint against Gradient Analytics, Inc.; Rocker Partners, LP; Rocker
Management, LLC; Rocker Offshore Management Company, Inc. and their respective principals in the Superior Court of California, County of Marin.
Subsequently, the Company filed amended complaints alleging libel, intentional interference with prospective economic advantage and violations of
California's unfair business practices act and also adding as defendants Cathy Longinotti, Mark Montgomery, Phillip Renna and Terrence Warzecha, all
former or existing general partners of Copper River Partners, L.P. (formerly known as Rocker Partners, LP). Defendants Longinotti, Renna and Warzecha
successfully quashed the summons as to them. On November 9, 2007, Copper River Partners, L.P. filed a cross-complaint against the Company
F-35