Overstock.com 2011 Annual Report Download - page 79

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Table of Contents
Contractual obligations and commitments
The following table summarizes our contractual obligations as of December 31, 2011 and the effect such obligations and commitments are expected to
have on our liquidity and cash flow in future periods (in thousands):
Payments Due by Period
Contractual Obligations 2012 2013 2014 2015 2016 Thereafter Total
Capital lease obligations 116 3 — — — — 119
Line of credit 17,000 — — — — — 17,000
Interest on line of credit 519 — — — — — 519
Operating leases 8,916 8,206 8,404 6,818 1,381 183 33,908
Naming rights 1,236 1,273 1,311 1,351 1,391 — 6,562
Purchase obligations 14,342 — — — — — 14,342
Total contractual cash
obligations $42,129 $9,482 $9,715 $8,169 $2,772 $ 183 $72,450
Amounts of Commitment Expiration Per Period
Other Commercial Commitments 2012 2013 2014 2015 2016 Thereafter Total
Letters of credit $ 2,028 $ — $ — $ — $ — $ — $ 2,028
Naming rights
During 2011, we entered into a six-year agreement with the Oakland-Alameda County Coliseum Authority ("OACCA") for the right to name Oakland
Alameda County Coliseum. Amounts represent annual payments due OACCA for the naming rights and we may terminate this agreement at our sole option,
subject to its termination fee.
Purchase Obligations
The amount of purchase obligations shown above is based on assumptions regarding the legal enforceability against us of purchase orders we had
outstanding at December 31, 2011. Under different assumptions regarding our rights to cancel our purchase orders or different assumptions regarding the
enforceability of the purchase orders under applicable law, the amount of purchase obligations shown in the table above would be less.
Tax Contingencies
Our contractual obligations presented above exclude unrecognized tax contingencies, including interest and penalties, of $313,000 for which we cannot
make a reasonably reliable estimate of the amount and period of payment. For further information regarding the application of ASC 740-10-5, see the
information set forth under Item 15 of Part IV, "Financial Statements—Note 20—Income Taxes," contained in the "Notes to Consolidated Financial
Statements" of this Annual Report on Form 10-K.
Recommendation Algorithm Development Costs
During 2011, we announced two contests offering cash prizes of up to $1.3 million for each contest period to the researcher or research team who can
design and develop a recommendation algorithm which provides a minimum of 1% increase in sales as compared to our existing algorithm. The contest
periods end March 31, 2012 and September 30, 2012 and the cash prizes, if any, would be awarded at those times.
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