Overstock.com 2014 Annual Report Download - page 59

Table of Contents
Unless it terminates earlier or is extended with the consent of the Administrative Bank and all of the Banks, the Revolving Loan facility will
terminate on October 24, 2017.
As of December 31, 2014 and as of March 2, 2015, we had not borrowed any amounts under either the Real Estate Loan or the Revolving Loan.

As of December 31, 2014 and 2013, letters of credit totaling $580,000 and $1.6 million, respectively, were issued on our behalf collateralized by
compensating cash balances held at U.S. Bank, which are included in restricted cash in the accompanying consolidated balance sheets.

We have a commercial purchasing card (the “Purchasing Card”) agreement with U.S. Bank. We use the Purchasing Card for business purpose
purchasing and must pay it in full each month. At December 31, 2014, $803,000 was outstanding and $4.2 million was available under the Purchasing Card.
At December 31, 2013, $517,000 was outstanding and $4.5 million was available under the Purchasing Card.

We periodically evaluate opportunities to repurchase common stock, obtain credit facilities, or issue additional debt or equity securities. In addition,
we may, from time to time, consider the investment in, or acquisition of, complementary businesses, products, services, or technologies, any of which might
affect our liquidity requirements or cause us to issue additional debt or equity securities. There can be no assurance that financing arrangements will be
available in amounts or on terms acceptable to us, if at all.

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition,
changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that would be material to
investors.

Regulation G,  and other SEC regulations regulate the disclosure of certain non-GAAP
financial information.

Contribution (a non-GAAP financial measure which we reconcile to “Gross profit” in our consolidated statements of income and comprehensive
income) consists of gross profit less sales and marketing expense and reflects an additional way of viewing our results. Contribution Margin is Contribution
as a percentage of revenues. When viewed together with our GAAP results, we believe Contribution and Contribution Margin provide management and users
of the financial statements information about our ability to cover our operating costs, such as technology and general and administrative expenses.
Contribution and Contribution Margin are used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied
upon to the exclusion of GAAP financial measures. You should review our financial statements and publicly-filed reports in their entirety and not rely on any
single financial measure. The material limitation associated with the use of Contribution is that it is an incomplete measure of profitability as it does not
include all operating expenses or non-operating income and expenses. Management compensates for these limitations when using this measure by looking at
other GAAP measures, such as operating income and net income.
59