ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of fair value of financial instruments using levels of inputs

using the following levels of inputs as of December 31, 2015 and December 31, 2014 as indicated (in thousands):



	Fair Value Measurements at December 31, 2015:
	Total		Level 1		Level 2		Level 3
Assets:
Cash equivalents - Money market mutual funds	$	28,102	$	28,102	$	—	$	—
Trading securities held in a “rabbi trust” (1)	68		68		—		—
Total assets	$	28,170	$	28,170	$	—	$	—
Liabilities:
Derivatives (2)	$	2,356	$	—	$	2,356	$	—
Deferred compensation accrual “rabbi trust” (3)	70		70		—		—
Total liabilities	$	2,426	$	70	$	2,356	$	—



	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	$	—

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


(2)	—

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



	Year ended December 31,
	2015		2014		2013
Cost of goods sold - direct	$	283	$	282	$	380
Technology	22,126		16,651		12,917
General and administrative	1,107		1,028		1,136
Total depreciation, including internal-use software and website development	$	23,516	$	17,961	$	14,433

Schedule of intangible assets

Intangible assets consist of the following (in thousands):



	December 31,
	2015			2014
Acquired intangible assets	$	15,776		$	—
Intangible assets, other	1,355			1,130
	17,131			1,130
Less: accumulated amortization of intangible assets	(2,475		)	(895		)
Total intangible assets, net	$	14,656		$	235

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):



	Year ended December 31,
	2015			2014			2013
Total revenue, net	$	1,657,838	100%	$	1,497,103	100%	$	1,304,217	100%
Cost of goods sold
Product costs and other cost of goods sold	1,279,766		77%	1,152,489		77%	999,519		77%
Fulfillment and related costs	73,418		4%	65,555		4%	57,038		4%
Total cost of goods sold	1,353,184		82%	1,218,044		81%	1,056,557		81%
Gross profit	$	304,654	18%	$	279,059	19%	$	247,660	19%

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

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



	Year ended December 31,
	2015		2014		2013
Net income attributable to stockholders of Overstock.com, Inc.	$	2,446	$	8,854	$	84,378
Net income per common share—basic:
Net income attributable to common shares—basic	$	0.10	$	0.37	$	3.56
Weighted average common shares outstanding—basic	24,612		23,999		23,714
Effect of dilutive securities:
Stock options and restricted stock awards	91		318		580
Weighted average common shares outstanding—diluted	24,703		24,317		24,294
Net income attributable to common shares—diluted	$	0.10	$	0.36	$	3.47

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):



	Year ended December 31,
	2015	2014	2013
Stock options and restricted stock units	323	291	154