Stamps.com 2005 Annual Report Download - page 54

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STAMPS.COM INC.
NOTES TO FINANCIAL STATEMENTS (continued)
3. Goodwill and Intangible Assets
The Company wrote off all of its goodwill in the first quarter of 2001 due to impairment. The Company’s other intangible assets, which
consist of patents, trademarks and other intellectual property with a gross carrying value of $8.9 million as of December 31, 2005 and 2004 and
accumulated amortization of $5.2 million and $4.1 million as of December 31, 2005 and 2004, respectively, continue to be amortized over their
expected useful lives ranging from 4 to 17 years with a remaining weighted average amortization period of 2.2 years. During the fiscal years
2005, 2004 and 2003, the Company assessed whether events or changes in circumstances occurred that could potentially indicate that the
carrying amount of the Company’s intangible assets may not be recoverable. The Company concluded that there were no such events or
changes in circumstances during the years ended December 31, 2005, 2004 and 2003 and determined that the fair value of the Company’s
intangible assets were in excess of their carrying value as of December 31, 2005, 2004 and 2003.
Aggregate amortization expense on patents and trademarks was approximately $1.1 million per year for the three years ended December
31, 2005, 2004, and 2003. Amortization expense on patents and trademarks is estimated to approximate $1.1 million for each of fiscal years
2006 and 2007.
4. Cash, Cash Equivalents and Investments
The following table summarizes the Company’s cash, restricted cash and investments as of December 31, 2005 and 2004 (in thousands):
F-13
December 31, 2005
Cost or
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair Value
Cash and cash equivalents:
Cash
$
16,812
$ —
$
—
$
16,812
Money market
559
—
—
559
Commercial paper
3,398
—
(
1
)
3,397
Cash and cash equivalents
20,769
—
(
1
)
20,768
Restricted cash:
Corporate notes and bonds
554
—
—
554
Restricted cash
554
—
—
554
Short term investments:
Corporate notes and bonds
6,111
(30
)
6,081
U.S. Government and agency securities
13,466
—
(
97
)
13,369
Short term investments
19,577
—
(
127
)
19,450
Long term investments:
Corporate notes and bonds
29,105
—
(
129
)
28,976
U.S. Government and agency securities
34,529
—
(
298
)
34,231
Long term investments
63,634
—
(
427
)
63,207
Cash and equivalents, restricted cash and investments
$
104,534
$ —
$
(
555
)
$
103,979