DISCONTINUED OPERATIONS (Tables)

6 Months Ended

Jun. 30, 2021

Discontinued Operations and Disposal Groups [Abstract]

Fair Value Measurement Inputs and Valuation Techniques

The significant unobservable inputs used in the $288.8 million fair value measurement of these Level 3 equity securities at the transaction date are summarized as follows:

Valuation technique	Unobservable inputs	Range (1)	Weighted average (2)
Market approach	Enterprise value to revenue multiple	0.88x	0.88x
Discounted cash flows - exit multiple	Discount rate	9.0% - 35.0%	32.4%
	Enterprise value to revenue multiple	0.75x - 5.00x	4.40x
	Projected terminal year	2023 - 2027	2025
	Annual revenue growth rate	1.3% - 124.0%	109.4%
	Annual EBITDA % of revenues	5.2% - 41.2%	36.3%
Discounted cash flows - perpetual growth	Discount rate	30.0%	30.0%
	Projected terminal year	2028	2028
	Perpetual revenue growth rate	3.0%	3.0%
	Annual revenue growth rate	25.7%	25.7%
	Annual EBITDA % of revenues	14.9%	14.9%

 __________________________________________

(1)     — The range for the Annual revenue growth rate and Annual EBITDA % of revenues are based on the weighted average metrics for the annual periods of the separate cash flow models for the respective component.

(2)     — Unobservable inputs were weighted by the relative fair value based on the fair value of the underlying components subjected to the identified valuation technique. For projected terminal year, the amount represents the median of the inputs and is not a weighted average.

Disposal Groups, Including Discontinued Operations

Results of discontinued operations through the transaction date were as follows (in thousands):

	Three months ended June 30,				Six months ended June 30,
	2021		2020		2021		2020
Revenue, net	$	1,802	$	15,588	$	17,394	$	27,563
Cost of goods sold	1,325		13,618		13,716		23,959
Gross profit	477		1,970		3,678		3,604
Operating expenses
Technology	577		4,615		7,133		10,130
Selling, general, and administrative	2,084		7,109		13,509		16,067
Total operating expenses	2,661		11,724		20,642		26,197
Operating loss from discontinued operations	(2,184)		(9,754)		(16,964)		(22,593)
Interest income, net	5		390		192		473
Other income (loss), net	(398)		(4,417)		4,081		2,553
Gain on deconsolidation	243,541		—		243,541		—
Income (loss) from discontinued operations before income taxes	240,964		(13,781)		230,850		(19,567)
Provision (benefit) for income taxes	13,592		(323)		13,604		(310)
Net income (loss) from discontinued operations	$	227,372	$	(13,458)	$	217,246	$	(19,257)
Less: Net loss attributable to noncontrolling interests from discontinued operations	(134)		(1,975)		(335)		(5,207)
Net income (loss) from discontinued operations attributable to stockholders of Overstock.com, Inc.	$	227,506	$	(11,483)	$	217,581	$	(14,050)

Assets and liabilities of discontinued operations were as follows (in thousands):

	June 30, 2021		December 31, 2020
Cash and cash equivalents	$	—	$	21,075
Other current assets	—		13,054
Total current assets of discontinued operations	$	—	$	34,129
Property and equipment, net	$	—	$	8,783
Intangible assets, net	—		13,852
Goodwill	—		28,790
Equity securities	—		45,878
Operating lease right-of-use assets	—		7,226
Other long-term assets, net	—		1,626
Total long-term assets of discontinued operations	$	—	$	106,155
Accounts payable and accrued liabilities	$	—	$	11,939
Other current liabilities	—		1,985
Total current liabilities of discontinued operations	$	—	$	13,924
Operating lease liabilities, non-current	—		7,099
Other long-term liabilities	—		586
Total long-term liabilities of discontinued operations	$	—	$	7,685