Overstock.com 2009 Annual Report Download - page 141

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Table of Contents
Overstock.com, Inc.
Notes to Consolidated Financial Statements (Continued)
20. STOCK BASED AWARDS (Continued)
During the year ended December 31, 2007, the Company reduced the estimated compensation expense under the plan by approximately $550,000, based
on changes in its estimate of growth in economic value over the remaining twelve months of the plan.
During the year ended December 31, 2008, the Company reversed the $1.0 million cumulative total of compensation expense accrued under the Plan as
the Board determined no payments would be made under the Plan. The Plan expired December 31, 2008.
21. EMPLOYEE RETIREMENT PLAN
The Company has a 401(k) defined contribution plan which permits participating employees to defer up to a maximum of 25% of their compensation,
subject to limitations established by the Internal Revenue Code. Employees who have completed a half-year of service and are 21 years of age or older are
qualified to participate in the plan. The Company matches 50% of the first 6% of each participant's contributions to the plan. Beginning in 2006 through
January 2008, the Company's matching contribution was made in common stock issued from treasury. For the remainder of 2008, the Company's matching
contribution was made in cash. The Company's matching contribution for 2009 was made in cash and common stock issued from treasury. Participant
contributions are immediately vested. Company contributions vest based on the participant's years of service at 20% per year over five years. The Company's
matching contribution totaled $494,000, $570,000 and $647,000 during 2007, 2008 and 2009, respectively. In addition, the Company made discretionary
contributions of $408,000 for 2007, $0 for 2008 and $885,000 for 2009 to eligible participants as of the end of each respective calendar year.
In December 2009, the Company implemented a Non Qualified Deferred Compensation plan for senior management. The plan allows eligible members
of senior management to defer their receipt of compensation from the Company, subject to the restrictions contained in the plan. As of December 31, 2009, no
amounts had been deferred into this plan.
22. OTHER INCOME (EXPENSE), NET
Other income (expense), net consisted of the following (in thousands):
Years ended December 31,
2007 2008 2009
(Restated)
Gain from early retirement of 3.75% convertible senior notes $ — $ 2,849 $ 2,810
Loss on settlement of notes receivable — (3,929) —
Other (92) (366) 467
Other income (expense), net $ (92) $ (1,446) $ 3,277
F-46