ACCOUNTING POLICIES (Tables)

3 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

Schedule of assets and liabilities measured at fair value on recurring basis

The following tables summarize our assets and liabilities measured at fair value on a recurring basis using the following levels of inputs as of March 31, 2020 and December 31, 2019, as indicated (in thousands):

	Fair Value Measurements at March 31, 2020:
	Total		Level 1		Level 2		Level 3
Assets:
Cash equivalents - Money market mutual funds	$	2,811	$	2,811	$	—	$	—
Equity securities, at fair value	414		414		—		—
Marketable securities, at fair value	3,838		3,838		—		—
Trading securities held in a "rabbi trust" (1)	85		85		—		—
Total assets	$	7,148	$	7,148	$	—	$	—
Liabilities:
Deferred compensation accrual "rabbi trust" (2)	$	84	$	84	$	—	$	—
Total liabilities	$	84	$	84	$	—	$	—

	Fair Value Measurements at December 31, 2019:
	Total		Level 1		Level 2		Level 3
Assets:
Cash equivalents - Money market mutual funds	$	2,799	$	2,799	$	—	$	—
Equity securities, at fair value	823		823		—		—
Marketable securities, at fair value	10,308		10,308		—		—
Trading securities held in a "rabbi trust" (1)	116		116		—		—
Total assets	$	14,046	$	14,046	$	—	$	—
Liabilities:
Deferred compensation accrual "rabbi trust" (2)	$	116	$	116	$	—	$	—
Total liabilities	$	116	$	116	$	—	$	—

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(1) — Trading securities held in a rabbi trust are included in Prepaids and other current assets and Other long-term assets, net in the consolidated balance sheets.

(2) — 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

Property and equipment are depreciated using the straight-line method over the estimated useful lives of the related assets or the term of the related finance lease, whichever is shorter, as follows: 

	Life (years)
Building	40
Land improvements	20
Building machinery and equipment	15-20
Furniture and equipment	5-7
Computer hardware	3-4
Computer software, including internal-use software and website development	2-4

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

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

	Three months ended March 31,
	2020		2019
Cost of goods sold - retail	$	190	$	175
Technology	4,771		5,175
General and administrative	1,685		1,225
Total depreciation	$	6,646	$	6,575

Equity Securities without Readily Determinable Fair Value [Table Text Block]

The impairments and downward adjustments for the period related to equity securities without readily determinable fair values at March 31, 2020 and 2019 is as follows (in thousands):

	Three months ended March 31,
	2020		2019
Impairments and downward adjustments of equity securities without readily determinable fair values	$	—	$	(2,958	)

Schedule of unrealized gains and losses related to equity securities

The portion of unrealized gains and losses for the period related to equity securities with readily determinable fair value still held at March 31, 2020 and 2019 is calculated as follows (in thousands):

	Three months ended March 31,
	2020			2019
Net losses recognized during the period on equity securities	$	(1,619	)	$	(618	)
Less: Net losses recognized during the period on equity securities sold	(90		)	—
Unrealized losses during the reporting period on equity securities still held	$	(1,529	)	$	(618	)

Equity Security Ownership Interest [Table Text Block]

The following table includes our equity method securities and related ownership interest as of March 31, 2020:

	Ownership interest
Bitt Inc.	21%
Boston Security Token Exchange LLC	50%
Chainstone Labs, Inc.	29%
FinClusive Capital, Inc.	10%
GrainChain, Inc.	18%
Medici Land Governance	35%
Minds, Inc.	24%
PeerNova, Inc.	11%
SettleMint NV	29%
Spera, Inc.	19%
VinX Network Ltd.	29%
Voatz, Inc.	20%

Schedule of equity method securities

The following table summarizes the net losses recognized on equity method securities for the three months ended March 31, 2020 and 2019 (in thousands):

	Three months ended March 31,
	2020		2019
Net loss recognized on our proportionate share of the net losses of our equity method securities and amortization of the basis difference	$	2,468	$	1,025
Net loss recognized during the period on equity method securities sold	—		524

Schedule of intangible assets

Intangible assets, net consist of the following (in thousands):

	March 31, 2020			December 31, 2019
Intangible assets subject to amortization, gross (1)	$	30,267		$	30,284
Less: accumulated amortization of intangible assets subject to amortization	(19,430		)	(18,528		)
Total intangible assets, net	$	10,837		$	11,756

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(1) — At March 31, 2020, the weighted average remaining useful life for intangible assets subject to amortization was 5.52 years.

Intangible assets amortization expense

Amortization of intangible assets other than goodwill is classified within the corresponding operating expense categories in our consolidated statements of operations as follows (in thousands):

	Three months ended March 31,
	2020		2019
Technology	$	847	$	853
Sales and marketing	11		16
General and administrative	65		(830		)
Total amortization	$	923	$	39

Schedule of deferred revenues and contracts with customers

The following table provides information about deferred revenue from contracts with customers, including significant changes in deferred revenue balances during the periods presented (in thousands):

	Amount
Deferred revenue at December 31, 2018	$	50,578
Increase due to deferral of revenue at period end	36,622
Decrease due to beginning contract liabilities recognized as revenue	(45,379		)
Deferred revenue at December 31, 2019	41,821
Increase due to deferral of revenue at period end	41,520
Decrease due to beginning contract liabilities recognized as revenue	(29,198		)
Deferred revenue at March 31, 2020	$	54,143

Schedule of sales returns

The following table provides additions to and deductions from the sales returns allowance (in thousands):

	Amount
Allowance for returns at December 31, 2018	$	15,261
Additions to the allowance	117,040
Deductions from the allowance	(121,194		)
Allowance for returns at December 31, 2019	11,107
Additions to the allowance	25,688
Deductions from the allowance	(26,643		)
Allowance for returns at March 31, 2020	$	10,152

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

	Three months ended March 31,
	2020				2019
Total revenue, net	$	351,573	100	%	$	367,729	100	%
Cost of goods sold
Product costs and other cost of goods sold	259,946		74	%	277,218		75	%
Fulfillment and related costs	15,787		4	%	17,387		5	%
Total cost of goods sold	275,733		78	%	294,605		80	%
Gross profit	$	75,840	22	%	$	73,124	20	%

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

The following table sets forth the computation of basic and diluted net loss per common share for the periods indicated (in thousands, except per share data):

	Three months ended March 31,
	2020			2019
Net loss attributable to stockholders of Overstock.com, Inc.	$	(16,333	)	$	(39,244	)
Less: Preferred stock TZROP repurchase gain	—			(425		)
Less: Preferred stock dividends - declared and accumulated	19			19
Undistributed loss	(16,352		)	(38,838		)
Less: Undistributed loss allocated to participating securities	(194		)	(569		)
Net loss attributable to common shares	$	(16,158	)	$	(38,269	)
Net loss per common share—basic:
Net loss attributable to common shares—basic	$	(0.40	)	$	(1.18	)
Weighted average common shares outstanding—basic	40,158			32,370
Effect of dilutive securities:
Stock options and restricted stock awards	—			—
Weighted average common shares outstanding—diluted	40,158			32,370
Net loss attributable to common shares—diluted	$	(0.40	)	$	(1.18	)

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

The following shares were excluded from the calculation of diluted shares outstanding as their effect would have been anti-dilutive (in thousands):

	Three months ended March 31,
	2020	2019
Stock options and restricted stock units	737	1,030