Stamps.com 2008 Annual Report Download - page 51

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Total restricted cash of approximately $554,000 as of December 31, 2008 and 2007 is related to a letter of credit for a facility
leased by us under a lease that will expire in February 2010.
5. Fair Value Measurements
We adopted SFAS No. 157, “Fair Value Measurement” (SFAS 157) on January 1, 2008. SFAS 157 defines fair value,
establishes a framework for measuring fair value and expands disclosure for each major asset and liability category measured at
fair value on either a recurring or nonrecurring basis. The fair value hierarchy for disclosure of fair value measurements under
SFAS 157 is as follows:
Level 1 — Valuations based on unadjusted quoted prices for identical assets in an active market
Level 2 — Valuations based on quoted prices in markets where trading occurs infrequently or whose values are based on
quoted prices of instruments with similar attributes in active markets
Level 3 — Valuations based on inputs that are unobservable and involve management judgment and our own assumptions
about market participants and pricing
The following table summarizes our financial assets measured at fair value on a recurring basis in accordance with SFAS 157
(in thousands):
The fair value of our available-for-sale debt securities included in the Level 2 category is based on the market values
obtained from an independent pricing service that were evaluated using pricing models that vary by asset class and may
incorporate available trade, bid and other market information and price quotes from well established independent pricing vendors
and broker-dealers.
Fair Value Measurement at Reporting Date Using
Description
December 31,
2008
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Cash and cash equivalents $
52,576
$
52,576
$
—
$ —
Available-for-sale debt securities
21,483
—
21,483
—
Total $
74,059
$
52,576
$
21,483
$ —
F-15
TABLE OF CONTENTS
STAMPS.COM INC.
NOTES TO FINANCIAL STATEMENTS
6. Accounts Payable and Accrued Expenses
The following table summarizes our accounts payable and accrued expenses as of December 31, 2008 and 2007 (in
thousands):
2008
2007
Payroll and related accrual $
2,090
$
1,879
Legal and related accrual
1,295
405
Deferred rent accrual
162
256
Sales and marketing related accrual
2,908
3,088
Other accruals
4,719
4,307
Accounts payable and Accrued expenses $
11,174
$
9,935