Stamps.com 2010 Annual Report Download - page 43

TABLE OF CONTENTS
The following table is a schedule of our significant contractual obligations and commercial commitments, which consists
only of the future minimum lease payments under operating leases at December 31, 2010 (in thousands):
During 2010, we repurchased 1.5 million shares of our common stock for $13.8 million. During 2011, subject to limitations
that may be imposed by applicable securities laws and regulations and the rules of The NASDAQ Stock Market, we may
consider repurchasing stock by evaluating such factors as the price of the stock, the daily trading volume and the availability of
large blocks of stock and any additional constraints related to material inside information we may possess. We have no
commitments to make any such purchases.
During the fourth quarter of 2010, we paid a special dividend of $2.00 per share on our common stock. The total cash
dividend amount paid to stockholders was $28.9 million, based on 14.5 million shares outstanding as of the November 11, 2010
record date. We also incurred compensation expense of $3.4 million in the fourth quarter related to the special dividend and its
effect on employee stock options. See Note 2 “Summary of Significant Accounting Policies — Stock Based Compensation” of
our accompanying consolidated financial statements.
Net cash provided by operating activities was $4.8 million and $10.0 million for 2010 and 2009, respectively. The decrease
in net cash provided by operating activities in 2010 is primarily attributable to (1) the $5.2 million in the legal settlement in 2010
and (2) the $3.4 million in additional compensation expense in 2010 related to the special dividend. See Note 2 “Summary of
Significant Accounting Policies — Stock Based Compensation” of our accompanying consolidated financial statements.
Net cash used in investing activities was $1.4 million and $4.3 million in 2010 and 2009, respectively. The decrease in net
cash used in investing activities primarily resulted from the sale of long-term investments.
Net cash used by financing activities was $40.4 million and $13.3 million for 2010 and 2009, respectively. The increase in
net cash used in financing activities resulted primarily from our payment of a special dividend of $2.00 per share in the fourth
quarter of 2010 totaling $28.9 million, as described above.
We believe our available cash and marketable securities, together with the cash flow from operations, will be sufficient to
fund our business for at least the next twelve months.
Critical Accounting Policies
General
The discussion and analysis of our financial condition and results of operations are based on our financial statements, which
have been prepared in accordance with US generally accepted accounting principles. The preparation of these financial
statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and
expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, we evaluate our estimates, including
those related to patents, contingencies and litigation. We base our estimates on historical experience and on various other
assumptions that we believe are reasonable under the circumstances, the results of which form the basis for making judgments
about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from
these estimates under different assumptions or conditions.
We believe the following critical accounting policies affect our more significant judgments and estimates used in the
preparation of our financial statements.
Operating
Lease
Obligations
Years ended:
2011
1,005
2012
419
Thereafter
—
$
1,424
35