ACCOUNTING POLICIES (Tables)

9 Months Ended

Sep. 30, 2015

Schedule of fair value of financial instruments using levels of inputs

The following tables summarize our assets and liabilities measured at fair value on a recurring basis using the following levels of inputs as of September 30, 2015 and December 31, 2014 as indicated (in thousands):



	Fair Value Measurements at September 30, 2015:
	Total		Level 1		Level 2		Level 3
Assets:
Cash equivalents - Money market mutual funds	$	30,100	$	30,100	$	—	$	—
Trading securities held in a “rabbi trust” (1)	62		62		—		—
Total assets	$	30,162	$	30,162	$	—	$	—
Liabilities:
Derivatives (2)	$	2,815	$	—	$	2,815	$	—
Deferred compensation accrual “rabbi trust” (3)	65		65		—		—
Total liabilities	$	2,880	$	65	$	2,815	$	—



	Fair Value Measurements at December 31, 2014:
	Total		Level 1		Level 2		Level 3
Assets:
Cash equivalents - Money market mutual funds	$	135,092	$	135,092	$	—	$	—
Trading securities held in a “rabbi trust” (1)	90		90		—		—
Total assets	$	135,182	$	135,182	$	—	$	—
Liabilities:
Derivatives (2)	$	1,008	$	—	$	1,008	$	—
Deferred compensation accrual “rabbi trust” (3)	94		94		—		—
Total liabilities	$	1,102	$	94	$	1,008	$	—

___________________________________________


(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 current and 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.

Schedule of estimated useful lives of the fixed assets

Fixed assets, which include assets such as technology infrastructure, internal-use software, website development, furniture and fixtures and leasehold improvements, are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the related assets or the term of the related capital lease, whichever is shorter, as follows:



	Life (years)
Computer software	2-4
Computer hardware	3-4
Furniture and equipment	3-5

Schedule of depreciation and amortization expense which is classified within the corresponding operating expense categories on the consolidated statements of income

Depreciation and amortization expense is classified within the corresponding operating expense categories on the consolidated statements of income as follows (in thousands):



	Three months ended September 30,				Nine months ended September 30,
	2015		2014		2015		2014
Cost of goods sold - direct	$	73	$	61	$	206	$	217
Technology	5,875		4,356		16,331		11,752
General and administrative	665		284		1,290		837
Total depreciation and amortization, including internal-use software and website development	$	6,613	$	4,701	$	17,827	$	12,806

Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block]

The following table shows the effect of derivative financial instruments that were designated as accounting hedges for the period indicated (in thousands):



Cash flow hedges	Amount of gain (loss) recognized in OCI on derivative (effective portion) net of tax			Location of gain (loss) reclassified from Accumulated OCI into income (effective portion)	Amount of gain (loss) reclassified from Accumulated OCI into income (effective portion)		Location of gain (loss) recognized in income on derivative (ineffective portion)	Amount of gain (loss) recognized in income on derivative (ineffective portion)
Three months ended September 30, 2015
Interest rate swap	$	(907	)	Interest expense	$	—	Other income (expense)	$	(124	)
Nine months ended September 30, 2015
Interest rate swap	$	(1,022	)	Interest expense	$	—	Other income (expense)	$	(124	)

Schedule of Interest Rate Derivatives [Table Text Block]

The following table provides the outstanding notional balances and fair values of derivative financial instruments that were designated as accounting hedges outstanding positions for the dates indicated, and recorded gains/(losses) during the periods indicated (in thousands):



Cash flow hedges	Location in balance sheet	Expiration date	Outstanding notional		Fair value			Beginning gains (losses)			Gains (losses) recorded during period (1)			Ending gains (losses)
Three months ended September 30, 2015
Interest rate swap	Current and Other long-term liabilities	2023	$	3,646	$	(2,815	)	$	(1,210	)	$	(1,605	)	$	(2,815	)
Nine months ended September 30, 2015
Interest rate swap	Current and Other long-term liabilities	2023	$	3,646	$	(2,815	)	$	(1,008	)	$	(1,807	)	$	(2,815	)

___________________________________________


(1)	— Gains (losses) recorded during the period are presented gross of the related tax impact.

Schedule of costs of goods sold, including product cost and other costs and fulfillment and related costs

Cost of goods sold, including product cost and other costs and fulfillment and related costs are as follows (in thousands):



	Three months ended September 30,								Nine months ended September 30,
	2015				2014				2015				2014
Total revenue, net	$	391,211	100	%	$	352,991	100	%	$	1,177,568	100	%	$	1,026,743	100	%
Cost of goods sold
Product costs and other cost of goods sold	301,164		77	%	270,219		77	%	903,720		77	%	786,981		77	%
Fulfillment and related costs	17,596		4	%	15,714		4	%	52,303		4	%	46,083		4	%
Total cost of goods sold	318,760		81	%	285,933		81	%	956,023		81	%	833,064		81	%
Gross profit	$	72,451	19	%	$	67,058	19	%	$	221,545	19	%	$	193,679	19	%

Schedule of computation of basic and diluted net income per common share



	Three months ended September 30,					Nine months ended September 30,
	2015			2014		2015		2014
Net income (loss) attributable to stockholders of Overstock.com, Inc.	$	(2,071	)	$	1,617	$	2,336	$	7,496
Net income (loss) per common share—basic:
Net income (loss) attributable to common shares—basic	(0.08		)	0.07		0.10		0.31
Weighted average common shares outstanding—basic	24,681			24,027		24,402		23,988
Effect of dilutive securities:
Stock options and restricted stock awards	—			256		111		302
Weighted average common shares outstanding—diluted	24,681			24,283		24,513		24,290
Net income (loss) attributable to common shares—diluted	$	(0.08	)	$	0.07	$	0.10	$	0.31

Schedule of anti-dilutive securities excluded from the calculation of diluted shares outstanding



	Three months ended September 30,		Nine months ended September 30,
	2015	2014	2015	2014
Stock options and restricted stock units	566	463	262	386