Stamps.com 2007 Annual Report Download - page 48

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Exercised
(132
)
7.05
Forfeited or expired
(342
)
18.86
Balance at December 31, 2007
3,091
16.17
6.9
$
3,811
Exercisable at December 31, 2007
1,829
$
16.99
5.4
$
3,792
F-46
TABLE OF CONTENTS
STAMPS.COM INC.
NOTES TO FINANCIAL STATEMENTS
2. Summary of Significant Accounting Policies – (continued)
The aggregate intrinsic value in the table above represents the total pretax intrinsic value, based on our closing stock price of
$12.18 at December 31, 2007, representing the last trading day of 2007, which would have been received by award holders had
all award holders exercised their awards that were in-the-money as of that date.
The weighted average grant date fair value of options granted during the 2007, 2006 and 2005 were $6.56, $13.41 and $9.34
respectively. The total intrinsic value of options exercised during 2007, 2006 and 2005 were $769,121, $11,460,570 and
$7,172,993, respectively.
The following table summarizes the status of our nonvested shares as of December 31, 2007:
As of December 31, 2007, there was approximately $9 million of total unrecognized compensation cost related to nonvested
share-based compensation arrangements, which is expected to be recognized over a weighted-average period of 3.1 years.
Treasury Stock
During 2007 and 2006, we repurchased approximately 2.5 million shares for $33.3 million and 1.6 million shares for $26.7
million, respectively.
Segment Information
SFAS No. 131, “Disclosures about Segments of an Enterprise and Related Information” establishes standards of reporting
information regarding operating segments in annual financial statements and requires selected information for those segments to
be presented in interim financial reports issued to stockholders. We operate in a single segment.
Website Development Costs
We develop and maintain our website. Costs associated with the operation of our website consist primarily of software and
hardware purchased from third parties, and the costs are capitalized based on our capitalization policy. These capitalized costs
are amortized based on their estimated useful life. Costs related to the maintenance and development of our website are expensed
as incurred.
Recent Accounting Pronouncements
In September 2006, the FASB issued SFAS No. 157, “Fair Value Measurements” (SFAS 157), which addresses how
companies should measure fair value when they are required to use a fair value measure for recognition or disclosure purposes
under generally accepted accounting principles. SFAS 157 defines fair value, establishes a framework for measuring fair value in
Number of
Stock Options
(in Thousands)
Weighted
Average Grant
Date Fair Value
Nonvested at December 31, 2006
432
$
11.28
Granted
1,368
6.56
Vested
(317
)
8.54
Forfeited
(221
)
8.97
Nonvested at December 31, 2007
1,262
$
7.18