Stamps.com 2008 Annual Report Download - page 49

In April 2008, the FASB issued Financial Statement Position No. SFAS 142-3, “Determination of the Useful Life of
Intangible Assets” (FSP SFAS 142-3). FSP SFAS 142-3 amends the factors that should be considered in developing renewal or
extension assumptions used to determine the useful life of a recognized intangible asset under SFAS No. 142, “Goodwill and
Other Intangible Assets” (SFAS 142). The intent of FSP SFAS 142-3 is to improve the consistency between the useful life of a
recognized intangible asset under SFAS 142 and the period of expected cash flows used to measure the fair value of the asset
under SFAS No. 141(R) and other applicable accounting literature. FSP SFAS 142-3 is effective for financial statements issued
for fiscal years beginning after December 15, 2008 and must be applied prospectively to intangible assets acquired after the
effective date. We do not anticipate the adoption of FSP SFAS 142-3 will have a material impact on our financial statements.
In October 2008, the FASB issued Financial Statement Position No. SFAS 157-3, “Determining the Fair Value of a Financial
Assets When the Market for That Asset is Not Active” (FSP SFAS 157-3). FSP SFAS 157-3 clarifies the application of FASB
Statement No. 157, “Fair Value Measurements”, in a market that is not active and provides an example to illustrate key
consideration in determining the fair value of a financial asset when the market for that financial asset is not active. FSP SFAS
157-3 is effective upon issuance and its adoption did not have a material impact on our financial statements.
3. Intangible Assets
Our intangible assets consist of patents, trademarks and other intellectual property with a gross carrying value of $8.3 million
as of December 31, 2008 and 2007 and accumulated amortization of approximately $7.8 million and $7.4 million as of
December 30, 2008 and 2007, respectively. The expected useful lives of our amortizable intangible assets range from 4 to 17
years. During 2008, 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 2008 and determined that the fair value of our intangible assets were in excess of their carrying value as of
December 31, 2008. Aggregate amortization expense on patents and trademarks was approximately $367,000, $1.1 million and
$1.1 million for the years ended December 31, 2008, 2007 and 2006, respectively.
F-13
TABLE OF CONTENTS
STAMPS.COM INC.
NOTES TO FINANCIAL STATEMENTS
4. Cash, Cash Equivalents and Investments
The following table summarizes our cash, cash equivalents, restricted cash and investments as of December 31, 2008 and
2007 (in thousands):
December 31, 2008
Cost or
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair Value
Cash and cash equivalents:
Cash
$
6,762
$
—
$
—
$
6,762
Money market
45,814
—
—
45,814
Cash and cash equivalents
52,576
—
—
52,576
Restricted cash:
Corporate notes and bonds
554
—
—
554
Restricted cash
554
—
—
554
Short-term investments:
Corporate notes and bonds
14,285
—
(
48
)
14,237
U.S. Government and agency securities
2,002
—
(
4
)
1,998
Short-term investments
16,287
—
(
52
)
16,235