Overstock.com 2014 Annual Report Download - page 47
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Table of Contents
The following table reflects our general and administrative expenses ("G&A") for the years ended December 31, 2014 and 2013 (in thousands):
General and administrative expenses
$ 71,777
$ 68,169
$ 3,608
5.3%
General and administrative expenses as a percent of net revenues
4.8%
5.2%
The $3.6 million increase in G&A expenses for the year ended December 31, 2014, as compared to 2013, was primarily due to an increase of $7.2
million in staff and travel-related costs and $2.0 million in professional fees, partially offset by a decrease of $7.1 million in legal costs. The decrease in legal
costs is primarily due to defense costs and civil penalties totaling $13.9 million in 2013 related to the California district attorney case, compared to defense
costs and judgment totaling $6.0 million in 2014 related to a patent infringement case.
G&A expenses include stock-based compensation expense of approximately $2.8 million and $2.6 million for the years ended December 31, 2014
and 2013, respectively.
We reversed approximately $360,000 and $471,000 of lease termination costs during the years ended December 31, 2014 and 2013 as a result of our
reoccupation of formerly restructured facility space. At December 31, 2014 our restructuring liability was zero.
Depreciation expense is classified within the corresponding operating expense categories on the consolidated statements of operations as follows (in
thousands):
Cost of goods sold - direct
$ 282
$ 380
Technology
16,651
12,917
General and administrative
1,131
1,225
Total depreciation and amortization, including internal-use software and website development
$ 18,064
$ 14,522
Interest income is primarily derived from the investment of our cash in cash equivalents and short-term investments. Interest income for the years
ended December 31, 2014 and 2013 totaled $152,000 and $127,000, respectively.
Interest expense is primarily related to interest incurred on line of credit and our capital leases. Interest expense for the years ended December 31,
2014 and 2013 totaled $39,000 and $113,000, respectively. The decreases in interest expense are primarily due to the elimination of the restructuring
accrual.
Other income (expense), net for the year ended December 31, 2014 was $1.2 million as compared to ($235,000) in 2013. The change is primarily due
to increased Club O Rewards breakage of $947,000 due to increased participation in the Club O Rewards program, including our recently introduced Club O
Lite program, an increase of $306,000 in gift card
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