Stamps.com 2008 Annual Report Download - page 54

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(in thousands):
We adopted the provisions of Financial Accounting Standards Board (FASB) Interpretation No. 48, “Accounting for
Uncertainty in Income Taxes, an interpretation of FASB Statement No. 109” (FIN 48) on January 1, 2007. Under FIN 48, we are
required to determine whether it is more likely than not that a tax position will be sustained upon examination based on the
technical merits of the position. A tax position that meets the more likely than not recognition threshold is measured to determine
the amount of benefit to recognize in the financial statements. The adoption of FIN 48 did not have a material effect on our
financial statements. We have concluded that there are no significant uncertain tax positions requiring recognition in our
financial statements.
Our policy is to recognize interest and penalties expense, if any, related to unrecognized tax benefits as a component of
income tax expense. As of December 31, 2008, we have not recorded any interest and penalty expense.
Our determination on the analysis of uncertain tax positions are related to tax years that remain subject to examination by the
relevant tax authorities. These include the 2005 through 2007 tax years for federal purposes and the 2004 through 2007 tax years
for California purposes.
2008
2007
2006
Income tax at statutory federal rate
$
2,460
$
3,757
$
5,653
State income taxes, net of federal benefit
422
730
1,095
Effect of permanent differences
765
36
1
Other
302
3,000
(4,336
)
Change in valuation allowance
(6,735
)
(7,136
)
(2,249
)
$
(2,786
)
$
387
$
164
F-18
TABLE OF CONTENTS
STAMPS.COM INC.
NOTES TO FINANCIAL STATEMENTS
10. Commitments and Contingencies
Operating Leases
The following is a schedule of significant future minimum lease payments under operating leases at December 31, 2008 (in
thousands):
Total rent expense was approximately $657,000 in each of 2008, 2007 and 2006.
In November 2003, we entered into a facility lease agreement commencing on March 2004 for our corporate headquarters
with aggregate lease payments of approximately $4.0 million through February 2010. As of December 31, 2008, we maintained
a letter of credit for the facility lease in the amount of $554,000.
Operating
Years ending:
2009
794
2010
134
2011 —
2012 —
Thereafter —
$
928