Overstock.com 2011 Annual Report Download - page 83

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Table of Contents
cash provided by (used in) operating activities", is cash flows from operations reduced by "Expenditures for fixed assets, including internal-use software and
website development." We believe that cash flows from operating activities is an important measure, since it includes both the cash impact of the continuing
operations of the business and changes in the balance sheet that impact cash. However, we believe free cash flow is a useful measure to evaluate our business
since purchases of fixed assets are a necessary component of ongoing operations and free cash flow measures the amount of cash we have available for future
investment, debt retirement or other changes to our capital structure after we have paid all of our expenses. Therefore, we believe it is important to view free
cash flow as a complement to our entire consolidated statements of cash flows as calculated below (in thousands):
Year ended December 31,
2011 2010 2009
Net cash provided by operating activities $25,663 $ 16,322 $46,117
Expenditures for fixed assets, including internal-use software and website
development (8,741) (20,511) (7,275)
Free cash flow $16,922 $ (4,189)$38,842
77