Overstock.com 2014 Annual Report Download - page 84

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Table of Contents





Assets:
Cash equivalents - Money market mutual funds $ 58,081
$ 58,081
$ —
$ —
Trading securities held in a “rabbi trust” (1) 138
138
—
—
Total assets $ 58,219
$ 58,219
$ —
$ —
Liabilities:
Deferred compensation accrual “rabbi trust” (3) $ 212
$ 212
$ —
$ —
Total liabilities $ 212
$ 212
$ —
$ —
___________________________________________
(1) — Trading securities held in a rabbi trust are included in Other current and Other long-term assets in the consolidated balance sheets.
(2) — Derivative financial instruments are included in Other long-term liabilities in the consolidated balance sheets.
(3) — Non qualified deferred compensation in a rabbi trust is included in Accrued liabilities and Other long-term liabilities in the consolidated
balance sheets.
Our other financial instruments, including cash, restricted cash, accounts receivable, accounts payable and accrued liabilities are carried at cost,
which approximates their fair value because of the short-term maturity of these instruments.

We have a Non-Qualified Deferred Compensation Plan (the “NQDC Plan”) for senior management. Deferred compensation amounts are invested in
mutual funds held in a “rabbi trust” and are restricted for payment to the participants of the NQDC Plan. We account for our investments held in the trust in
accordance with Accounting Standards Codification (“ASC”) No. 320 “. The investments held in the trust are
classified as trading securities. The fair value of the investments held in the trust totaled $90,000 at December 31, 2014 and are included in Other current and
Other long-term assets in the consolidated balance sheets. Our gains and losses on these investments were immaterial for the years ended December 31, 2014
and 2013.

Accounts receivable consist primarily of trade amounts due from customers and from uncleared credit card transactions at period end. Accounts
receivable are recorded at invoiced amounts and do not bear interest.

From time to time, we grant credit to some of our business customers on normal credit terms (typically 30 days). We perform credit evaluations of our
business customers’ financial condition and payment history and maintain an allowance for doubtful accounts receivable based upon our historical
collection experience and expected collectability of accounts receivable. The allowance for doubtful accounts receivable was $511,000 and $152,000 at
December 31, 2014 and 2013, respectively.

Cash equivalents include short-term, highly liquid instruments with maturities at date of purchase of three months or less. At December 31, 2014 and
2013, two banks held the majority of our cash and cash equivalents. We do not believe that, as a result of this concentration, we are subject to any unusual
financial risk beyond the normal risk associated with commercial banking relationships.
Financial instruments that potentially subject us to significant concentrations of credit risk consist primarily of cash equivalents and receivables. We
invest our cash primarily in money market securities which are uninsured.
Our accounts receivable are derived primarily from revenue earned from customers located in the United States. We maintain an allowance for
doubtful accounts based upon the expected collectability of accounts receivable.

83