Overstock.com 2015 Annual Report Download - page 102

The following table sets forth the computation of basic and diluted net income per common share for the periods indicated (in thousands, except per
share data):




Net income attributable to stockholders of Overstock.com, Inc. $ 2,446
$ 8,854
$ 84,378
Net income per common share—basic:
Net income attributable to common shares—basic $ 0.10
$ 0.37
$ 3.56
Weighted average common shares outstanding—basic 24,612
23,999
23,714
Effect of dilutive securities:
Stock options and restricted stock awards 91
318
580
Weighted average common shares outstanding—diluted 24,703
24,317
24,294
Net income attributable to common shares—diluted $ 0.10
$ 0.36
$ 3.47
The following shares were excluded from the calculation of diluted shares outstanding as their effect would have been anti-dilutive (in thousands):




Stock options and restricted stock units 323
291
154

On May 5, 2015, our Board of Directors authorized a stock repurchase program under which we may repurchase shares of our outstanding common
stock for up to $25 million at any time through December 31, 2017. To date, we have not made any repurchases under this program.

In May 2014, the FASB issued ASU No. 2014-09, , which requires an entity to recognize the amount of
revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition
guidance in U.S. GAAP when it becomes effective. In July 2015, the FASB issued ASU No. 2015-14, 
, which deferred the effective date for us to January 1, 2018. Early adoption is permitted, but not before the original effective
date. The standard permits the use of either the retrospective or cumulative effect transition method. There have also been other Proposed Accounting
Standards Updates which may further modify ASU 2014-09. We are evaluating the effect that ASU 2014-09 will have on our consolidated financial
statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial
reporting.
In April 2015, the FASB issued ASU No. 2015-03, ,
which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount
of that debt liability, consistent with debt discounts. The new standard becomes effective for us on January 1, 2016. Early adoption is permitted. The standard
requires entities to apply this change on a retrospective basis for the periods presented. The adoption of this standard will cause us to reclassify certain debt
issuance costs currently classified in other assets to a direct reduction of the related debt liability.
In July 2015, the FASB issued ASU No. 2015-11, , which requires inventory to be
measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably
predictable costs of completion, disposal, and transportation. The new standard becomes effective for us on January 1, 2017. Early adoption is permitted. The
standard requires entities to apply this change prospectively to the measurement of inventory after the date of adoption. We do not intend to adopt the
standard before the effective date. We are evaluating the effect that ASU 2015-11 will have on our consolidated financial statements and related disclosures.
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