Overstock.com 2009 Annual Report Download - page 73
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Table of Contents
described in the Performance Share Plan (the "Plan") was not attained as of the end of 2008 and $1.0 million in total compensation expense accrued under the
Plan was reversed. This year over year decrease was offset in part by an increase of approximately $1.5 million related to consulting costs and professional
fees.
We incurred stock-based compensation within general and administrative expenses of approximately $2.6 million and $2.2 million for the years ended
December 31, 2007 and 2008, respectively.
Overall, our total operating expenses decreased 9% during the year ended December 31, 2008 compared to the previous year, while total revenues
increased 8% and gross profit increased 16%.
Restructuring expenses. During the year ended December 31, 2007, we recorded $12.3 million of restructuring charges, of which $9.9 million related
to the termination of a logistics services agreement, termination and settlement of a lease related to vacated warehouse facilities in Indiana, and abandonment
and marketing for sub-lease office and data center space in our current corporate office facilities. We also recorded an additional $2.2 million of restructuring
charges related to accelerated depreciation of leasehold improvements located in the abandoned office and co-location data center space and $200,000 of other
miscellaneous restructuring charges.
During the year ended December 31, 2008, we reduced accrued restructuring liabilities by $299,000, primarily due to a change in the estimate of
sublease income.
Depreciation expense
Depreciation expense is classified within the corresponding operating expense categories in the consolidated statements of operations as follows (in
thousands):
Year Ended December 31,
2007 2008
(Restated)
Cost of goods sold—direct $ 1,882 $ 1,674
Sales and marketing — —
Technology 27,507 21,140
General and administrative 106 154
Total depreciation and amortization, including internal-use software
and website development $ 29,495 $ 22,968
Non-operating income (expense)
Interest income and interest expense. Interest income is primarily derived from the investment of our cash in short-term investments. Comparing 2007
and 2008, the decrease in interest income is due to a decrease in total cash and interest rates in 2008.
Interest expense is largely related to interest incurred on our Senior Notes and our facility fees related to our credit lines. Interest expense for the years
ended December 31, 2007 and 2008 totaled $4.2 million and $3.6 million, respectively.
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