Overstock.com (OSTK)

Inventories

Inventories, consisting of merchandise purchased for resale, are accounted for using a standard costing system which approximates the first-in-first-out (“FIFO”) method of accounting, and are valued at the lower of cost or market value. The Company establishes reserves for estimated obsolescence or damage equal to the difference between the cost of inventory and the estimated market value based upon assumptions about future demand and market conditions. Once established, the original cost of the inventory less the related reserve represents the new cost basis of such products. Reversal of these reserves is recognized only when the related inventory has been sold or scrapped.

Inventories

        Inventories, consisting of merchandise purchased for resale, are accounted for using a standard costing system which approximates the first-in-first-out ("FIFO") method of accounting, and are valued at the lower of cost or market value. The Company establishes reserves for estimated obsolescence or damage equal to the difference between the cost of inventory and the estimated market value based upon assumptions about future demand and market conditions. Once established, the original cost of the inventory less the related reserve represents the new cost basis of such products. Reversal of these reserves is recognized only when the related inventory has been sold or scrapped.

Inventories

        Inventories, consisting of merchandise purchased for resale, are accounted for using a standard costing system which approximates the
first-in-first-out ("FIFO") method of accounting, and are valued at the lower of cost or market value. The Company establishes reserves for estimated obsolescence
or damage equal to the difference between the cost of inventory and the estimated market value based upon assumptions about future demand and market conditions. Once established, the original cost of
the inventory less the related reserve represents the new cost basis of such products. Reversal of these reserves is recognized only when the related inventory has been sold or scrapped.

8. INVENTORIES

        Inventories consist of the following (in thousands):

8. INVENTORIES

        Inventories consist of the following (in thousands):

Inventories

Inventories, consisting of merchandise purchased for resale, are accounted for using a standard costing system which approximates the first-in-first-out (“FIFO”) method of accounting, and are valued at the lower of cost or market value. The Company establishes reserves for estimated obsolescence or damage equal to the difference between the cost of inventory and the estimated market value based upon assumptions about future demand and market conditions. Once established, the original cost of the inventory less the related reserve represents the new cost basis of such products. Reversal of these reserves is recognized only when the related inventory has been sold or scrapped.

Inventories

Inventories, consisting
of merchandise purchased for resale, are accounted for using a standard costing
system which approximates the first-in-first-out (“FIFO”) method of accounting,
and are valued at the lower of cost or market value. The Company establishes
reserves for estimated obsolescence or damage equal to the difference between
the cost of inventory and the estimated market value based upon assumptions
about future demand and market conditions. Once established, the original cost
of the inventory less the related reserve represents the new cost basis of such
products. Reversal of these reserves is recognized only when the related
inventory has been sold or scrapped.

8. INVENTORIES

Inventories consist of the following (in thousands):

8.
INVENTORIES

Inventories consist of
the following (in thousands):

7. INVENTORIES

        Inventories consist of the following (in thousands):

6. INVENTORIES

        Inventories consist of the following (in thousands):

F-23

Overstock.com, Inc.

Notes to Consolidated Financial Statements (Continued)

6. INVENTORIES

        Inventories consist of the following (in thousands):

F-23

Overstock.com, Inc.

Notes to Consolidated Financial Statements (Continued)

Inventories

Inventories, consisting of merchandise purchased for resale, are accounted for using a standard costing system which approximates the first-in-first-out (“FIFO”) method of accounting, and are valued at the lower of cost or market value. The Company establishes reserves for estimated obsolescence or damage equal to the difference between the cost of inventory and the estimated market value based upon assumptions about future demand and market conditions. Once established, the original cost of the inventory less the related reserve represents the new cost basis of such products. Reversal of these reserves is recognized only when the related inventory has been sold or scrapped.

Until the time of shipping, inventory ownership related to product sales by third parties through the Company’s website is maintained by the third parties.

Inventories

Inventories, consisting
of merchandise purchased for resale, are accounted for using a standard costing
system which approximates the first-in-first-out (“FIFO”) method of accounting,
and are valued at the lower of cost or market value. The Company establishes
reserves for estimated obsolescence or damage equal to the difference between
the cost of inventory and the estimated market value based upon assumptions
about future demand and market conditions. Once established, the original cost
of the inventory less the related reserve represents the new cost basis of such
products. Reversal of these reserves is recognized only when the related
inventory has been sold or scrapped.

Until the time of
shipping, inventory ownership related to product sales by third parties through
the Company’s website is maintained by the third parties.

Inventories

Inventories, consisting of merchandise purchased for resale, are accounted for using a standard costing system which approximates the first-in-first-out (“FIFO”) method of accounting, and are valued at the lower of cost or market value. The Company establishes reserves for estimated obsolescence or damage equal to the difference between the cost of inventory and the estimated market value based upon assumptions about future demand and market conditions. Once established, the original cost of the inventory less the related reserve represents the new cost basis of such products. Reversal of these reserves is recognized only when the related inventory has been sold or scrapped.

Until the time of shipping, inventory ownership related to product sales by third parties through the Company’s website is maintained by the third parties.

Inventories

Inventories, consisting of merchandise purchased for resale, are accounted for using a standard costing system which approximates the first-in-first-out (“FIFO”) method of accounting, and are valued at the lower of cost or market value. The Company establishes reserves for estimated obsolescence or damage equal to the difference between the cost of inventory and the estimated market value based upon assumptions about future demand and market conditions. Once established, the original cost of the inventory less the related reserve represents the new cost basis of such products. Reversal of these reserves is recognized only when the related inventory has been sold or scrapped.

Until the time of shipping, inventory ownership related to product sales by third parties through the Company’s website is maintained by the third parties.

6. INVENTORIES

Inventories consist of the following: