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TABLE OF CONTENTS
STAMPS.COM INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
2. Summary of Significant Accounting Policies – (continued)
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.
Reclassifications
Certain reclassifications have been made to prior year amounts to conform to current year presentations.
Recent Accounting Pronouncements
In April 2009, the Financial Accounting Standards Board (“FASB”) issued FSP No. Statement of Financial Accounting
Standards (“SFAS”) 107-1 and APB 28-1, Interim Disclosure about Fair Value of Financial Instruments (“FSP SFAS 107-1 and
APB 28-1”), as codified in Accounting Standards Codification (“ASC”) ASC 825, Financial Instruments, which amend the
required disclosure about fair value of financial instruments for interim reporting periods of publicly traded companies as well as
in annual financial statements and the required disclosures in summarized financial information at interim reporting periods. This
is effective for interim and annual reporting periods ending after June 15, 2009, with early adoption permitted for periods after
March 15, 2009. The adoption of FSP SFAS 107-1 and APB 28-1 did not have a material impact on our financial statements.
In April 2009, the FASB issued FSP No. SFAS 115-2 and SFAS 124-2, Recognition and Presentation of Other-Than
Temporary Impairments (“FSP SFAS 115-2 and SFAS 124-2”), as codified in ASC 320, Investments-Debt and Equity. FSP
SFAS 115-2 and SFAS 124-2 amend the other-than-temporary impairment guidance for debt securities to make the guidance
more operational and to improve the presentation and disclosure of other-than-temporary impairments on debt and equity
securities in the financial statements. This is effective for interim and annual reporting periods ending after June 15, 2009, with
early adoption permitted for periods after March 15, 2009. The adoption of FSP SFAS 115-2 and SFAS 124-2 did not have a
material impact on our consolidated financial statements.
In April 2009, the FASB issued FSP No. SFAS 157-4, Determining Fair Value When the Volume and Level of Activity for
the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly (“FSP SFAS 157-4”), as
codified in ASC 820, Fair Value Measurements and Disclosures. FSP SFAS 157-4 provides guidelines for (1) estimating fair
value in accordance with SFAS No. 157, “Fair Value Measurement”, when the volume and level of activity for an asset or
liability have significantly decreased and (2) identifying circumstances indicating that a transaction is not an orderly one. This is
effective for interim and annual periods ending after June 15, 2009, but entities may early adopt for the interim and annual
periods ending after March 15, 2009. The adoption of FSP SFAS 157-4 did not have a material impact on our consolidated
financial statements.
In May 2009, the FASB issued SFAS No. 165, Subsequent Events (“SFAS No. 165”), as codified in ASC 855, Subsequent
Events. SFAS No. 165 establishes guidance for the accounting for and the disclosure of events that happen after the date of the
balance sheet but before the release of the financial statements. The adoption of SFAS No. 165 did not have a material impact on
our consolidated financial statements.
F-12