Overstock.com 2015 Annual Report Download - page 107
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Table of Contents
Accrued liabilities consist of the following (in thousands):
Accounts payable accruals
$ 22,128
$ 20,682
Allowance for returns
17,896
15,531
Other accrued expenses
13,620
13,497
Accrued marketing expenses
13,373
12,167
Accrued compensation and other related costs
8,295
6,682
Accrued freight
3,868
5,115
Accrued taxes
1,463
2,639
Accrued professional expenses
1,115
954
Inventory received but not invoiced
828
3,048
Credit card processing fee accrual
607
776
Facility lease accruals
194
473
Total accrued liabilities
$ 83,387
$ 81,564
Deferred revenue consists of the following (in thousands):
Payments owed or received prior to product delivery
$ 28,811
$ 30,608
Club O membership fees and reward points
13,094
8,008
In store credits
4,451
5,389
Unredeemed gift cards
3,375
2,872
Other
1,213
1,574
Total deferred revenue
$ 50,944
$ 48,451
In October 2014, we entered into a syndicated senior secured credit facility (the “Facility”) with U.S. Bank National Association ("U.S. Bank" or the
"Administrative Bank") and certain other banks in connection with the construction of our new corporate headquarters (the "Project"). The Facility is
governed by a Loan Agreement dated as of October 24, 2014 which provides for an aggregate credit amount of $55.8 million, consisting of (i) a senior
secured real estate loan of $45.8 million (the “Real Estate Loan”) to be used to finance a portion of the Project and (ii) a three-year $10.0 million senior
secured revolving credit facility (the “Revolving Loan”) for working capital and capital expenditures, but not for the Project. We have satisfied the
conditions necessary to borrow under the Facility, including making the required cash contributions toward the Project. In the future, we may be required to
make additional cash contributions if necessary to maintain a loan to value ratio of 80% or less. The Real Estate Loan and the Revolving Loan are both
secured by the Project, our inventory and accounts receivable, substantially all of our deposit accounts and related assets. We began borrowing under the
facility in October 2015.
On or about January 1, 2017, upon completion of the Project, the Real Estate Loan is designed to convert into an approximately 6.75-year term loan
due October 1, 2023 (the “Term Loan”). The conditions to conversion of the Real Estate Loan to the Term Loan include, among others, requirements that the
Project must have been completed in accordance with the applicable plans, paid for in full, and generally free of liens; completion must have been certified
by the project architect and the inspecting architect; certificates of occupancy must have been issued; we must have paid all amounts then due to the
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