Stamps.com 2004 Annual Report Download - page 49

F-14
STAMPS.COM INC.
NOTES TO FINANCIAL STATEMENTS (continued)
The following table summarizes contractual maturities of our marketable fixed-income securities as of
December 31, 2004 (in thousands):
Amortized
Cost
Estimated
Fair Value
Due within one year................................................................................................... $ 1,502 $ 1,499
Due after one year through three years...................................................................... 37,483 36,918
Asset-backed and agency securities with various maturities ..................................... 37,169 37,038
$ 76,154 $ 75,455
Total restricted cash as of December 31, 2004 and 2003 is $554,000 and $3.7 million, respectively. As of
December 31, 2004 and 2003 the total restricted cash includes $554,000 and $922,000, respectively, related to
letters of credit for facility leases.
5. Accrued Expenses
The following table summarizes the Company’ s accounts payable and accrued expenses as of
December 31, 2004 and 2003 (in thousands):
2004 2003
Accrued expenses:
Payroll and related accrual.................................................................................. $ 1,425 $ 1,103
Restructuring accrual ..........................................................................................
—
46
Legal and related accrual .................................................................................... 167 400
Deferred rent accrual........................................................................................... 140 51
Sales and Marketing related accrual.................................................................... 2,051 901
Sales tax accrual.................................................................................................. 454 407
Other accrual....................................................................................................... 1,304 871
Accrued expenses................................................................................................ $ 5,541 $ 3,779
6. Allowance for Doubtful Accounts
As of December 31, 2004, and 2003, the allowance for doubtful accounts totaled $6,305 and $1,285,
respectively. Increases in the allowance for doubtful accounts totaled $5,020 and $1,285 for the years ended
December 31, 2004 and 2003, respectively. Write-offs against the allowance for doubtful accounts totaled $0 for the
years ended December 31, 2004 and 2003.
7. Property and Equipment
Property and equipment are stated at cost. Depreciation and amortization are computed principally on a
straight-line method over the estimated useful life of the asset, ranging from three to five years. Property and
equipment is summarized as follows (in thousands):
2004 2003
Furniture and equipment......................................................................................... $ 1,713 $ 1,713
Computers and software ......................................................................................... 10,361 20,631
Leasehold improvements........................................................................................ 1,193 1,851
13,267 24,195
Less accumulated depreciation and amortization................................................ (9,794) (19,982)
Property and equipment, net............................................................................ $ 3,473 $ 4,213
During 2004, 2003 and 2002, depreciation expense was approximately $2.0 million, $2.7 million and $5.3
million, respectively.