Overstock.com 2015 Annual Report Download - page 51

Download and view the complete annual report

Please find page 51 of the 2015 Overstock.com annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 130

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130

Although we made efforts to reduce expenses in Q4 2015, we continue to seek opportunities for growth by expanding our sales and distribution
footprint, through Medici's crypto-initiatives, and through other means. As a result of these and other initiatives, we may continue to incur additional COGS,
sales and marketing, technology and/or G&A expenses. These expenses may be material, and, coupled with the seasonality of our business, may lead to
reduced income as compared to prior periods or to losses in some periods.
We are continuing the construction of our new corporate headquarters in Salt Lake City, Utah and we expect to complete the project in 2016. We
estimate that the total project will cost approximately $99 million, and as of December 31, 2015 we have incurred approximately $55.7 million in costs. In
connection with this project, we entered into a $46 million term loan agreement and a master lease agreement for up to $20 million. We began borrowing
under these agreements in 2015. The construction project and related financing is discussed in further detail in the Liquidity and Capital Resources,
Borrowings section below.
The balance of our Management’s Discussion and Analysis of Financial Condition and Results of Operations provides further information about the
matters discussed above and other important matters affecting our business.
50