Stamps.com 2009 Annual Report Download - page 65

TABLE OF CONTENTS
STAMPS.COM INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
2. Summary of Significant Accounting Policies – (continued)
In June 2009, the FASB issued Accounting Standards Update (“ASU”) No. 2009-01 (Topic 105), “Generally Accepted
Accounting Principles,” as codified in ASC 105, Generally Accepted Accounting Principles, which establishes the FASB
Codification as the official single source of authoritative United States generally accepted accounting principles. All existing
accounting standards are superseded. All other accounting guidance not included in the Codification will be considered non-
authoritative. The Codification also includes all relevant SEC guidance organized using the same topical structure in separate
sections within the Codification. This update is effective for financial statements issued for interim and annual reports ending
after September 15, 2009. The adoption of this update did not have a material impact on our consolidated financial statements.
In August 2009, the FASB issued ASU No. 2009-05, “Fair Value Measurements and Disclosures (Topic 820) — Measuring
Liabilities at Fair Value”. This update provides clarification for the fair value measurement of liabilities in circumstances in
which a quoted price in an active market for an identical liability is not available. This update is effective for interim periods
beginning after August 28, 2009. The adoption of this update did not have a material impact on our consolidated financial
statements.
3. Intangible Assets
We have amortizable and non-amortizable intangible assets consisting of patents, trademarks and other intellectual property
with a gross carrying value of $8.3 million as of December 31, 2009 and 2008 and accumulated amortization of $7.8 million as
of December 30, 2009 and 2008, respectively. The expected useful lives of our amortizable intangible assets range from 4 to 17
years. During 2009, 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 2009 and determined that the fair value of our intangible assets were in excess of their carrying value as of
December 31, 2009. Aggregate amortization expense on patents and trademarks was approximately $6,000, $367,000 and $1.1
million for the years ended December 31, 2009, 2008 and 2007, respectively. Our expected amortization expense for the next
five years is not significant to our consolidated financial statements.
4. Cash, Cash Equivalents and Investments
Our cash equivalents and investments consist of money market, U.S. government obligations, asset-backed securities and
public corporate debt securities at December 31, 2009 and 2008. We consider all highly liquid investments with an original or
remaining maturity of three months or less at the date of purchase to be cash equivalents. All investments are classified as
available for sale and are recorded at market value using the specific identification method. Unrealized gains and losses are
included as a separate component of stockholders’ equity. We have eight securities with a total fair value of $4.5 million that
have unrealized losses of approximately $473,000 as of December 31, 2009. Realized gains and losses are reflected in interest
income and other income, net using the specific identification method.
The following table summarizes realized gains and losses for the period indicated (in thousands):
December 31,
2009 2008
Realized gain $
37
$
50
Realized loss
(5
)
(41
)
Net realized gain (loss)
$
32
$
9
F-13