Stamps.com 2008 Annual Report Download - page 48

As of December 31, 2008, there was approximately $7.4 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 2.7
years.
Treasury Stock
During 2008, 2007 and 2006, we repurchased approximately 2.7 million shares for $26.9 million, 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 December 2007, the FASB issued Financial Statement Position No. 141 (revised 2007), “Business Combinations” (FSP
SFAS 141(R)). The fundamental requirements of using the acquisition method of accounting (which SFAS 141 called the
purchase method) for all business combinations, identifying an acquirer for each business combination, and identifying and
recognizing intangible assets separately from goodwill remain unchanged by the standard. The new requirements of the standard
include: recognizing assets acquired, liabilities assumed, and any noncontrolling interest in the acquiree at the acquisition date,
measured at their fair values as of that date; recognizing the identifiable assets and liabilities, as well as the noncontrolling
interest in the acquiree in a step acquisition at the full amounts of their fair values; recognizing acquisition-related and
restructuring costs separately from the acquisition itself; and recognizing a gain by the
(in Thousands)
Fair Value
Nonvested at December 31, 2007
1,262
$
7.18
Granted
528
5.28
Vested
(429
)
7.45
Forfeited
(158
)
6.88
Nonvested at December 31, 2008
1,203
$
6.29
F-12
TABLE OF CONTENTS
STAMPS.COM INC.
NOTES TO FINANCIAL STATEMENTS
2. Summary of Significant Accounting Policies – (continued)
acquirer when total acquisition-date fair value of the identifiable net assets acquired exceeds the fair value of the consideration
transferred plus any noncontrolling interest in the acquiree. SFAS 141(R) applies prospectively to business combinations for
which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15,
2008. SFAS 141(R) is effective for the Company for transactions consummated during annual periods beginning after December
15, 2008. Earlier adoption is prohibited. SFAS 141 (R) also amends FASB Statement No. 109, “Accounting for Income
Taxes” (SFAS 109), such that the effects of changes to deferred tax asset valuation allowances established in purchase price
allocations are reported directly as a reduction of income tax expense. After SFAS 141(R) is adopted, all changes to tax
uncertainties and deferred tax asset valuation allowances established in purchase accounting, should be recognized in accordance
with the amended requirements of SFAS 109, even if the combination occurred prior to the effective date of SFAS 141 (R). We
do not anticipate the adoption of FSP SFAS 141(R) will have a material impact to our financial statements.