Stamps.com 2012 Annual Report Download - page 63

STAMPS.COM INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Treasury Stock
During 2012, 2011 and 2010, we repurchased 1.5 million shares for $31.8 million, 426,000 shares for $5.3 million and 1.5 million shares for
$13.8 million, respectively.
Segment Information
We operate in a single segment. We are a provider of Internet-
based postage solutions located in a single geographic location from which
substantially all of our revenue is generated. While components of revenue include both services and products associated with our postage
solutions, our Chief Executive Officer, who is the chief operating decision maker, evaluates performance, makes operating decisions and
allocates resources based on the financial data provided in our financial statements as a single operating 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 administrative cost relating to the maintenance and development of the website. Costs related to the purchase of software
and hardware are capitalized based on our capitalization policy. These capitalized costs are amortized based on their estimated useful life.
Administrative costs related to the maintenance and development of our website are expensed as incurred.
Recent Accounting Pronouncements
In July 2012, FASB issued Accounting Standards Update No. 2012-02, Goodwill and Other (Topic 350) — Testing Indefinite-
Lived Intangible
Assets for Impairment (ASU 2012-
02), which provides the option for companies to first perform a qualitative assessment to determine whether it
is more likely than not (a likelihood of more than 50%) that an indefinite-
lived intangible is impaired. This is effective for annual and interim
impairment tests performed for fiscal years beginning after September 15, 2012. We do not anticipate the adoption of ASU 2012-
02 will have a
material impact on our consolidated financial statements.
We have amortizable and non-amortizable intangible assets consisting of patents, trademarks, other intellectual property and lease-in-
place
intangible assets with a gross carrying value of $9.4 million and $8.7 million as of December 31, 2012 and 2011, respectively, and accumulated
amortization of $8.1 million and $7.8 million as of December 30, 2012 and 2011, respectively. During 2012, we completed our purchase of our
new corporate headquarters for an aggregate purchase price of $13.4 million. As a result of the purchase we also acquired existing leases of
building tenants, and $700,000 of the initial purchase price was allocated to lease-in-
place intangible assets and is being amortized over the
remaining actual lease terms, which are as long as 5.5 years. The expected useful lives of our amortizable intangible assets range from
approximately 5 to 17 years.
As of December 31, 2012, the remaining weighted average amortization period for our amortizable intangible assets
is 5.2 years. During 2012, we assessed whether events or changes in circumstances occurred that could potentially indicate that the carrying
amount of our intangible assets may not be recoverable. We concluded that there were no such events or changes in circumstances during 2012
and determined that the fair value of our intangible assets was in excess of their carrying value as of December 31, 2012. Aggregate
amortization expense on patents, trademarks and lease-in-
place intangible asset was approximately $269,000, $47,000 and $13,000 for the years
ended December 31, 2012, 2011 and 2010, respectively. Our expected yearly amortization expense for the next five years is approximately
$141,000.
Table of Contents
3.
Intangible Assets
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