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TABLE OF CONTENTS
STAMPS.COM INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
9. Income Taxes – (continued)
Differences between the provision for income taxes and income taxes at the statutory federal income tax rate are as follows
(in thousands):
10. Commitments and Contingencies
Operating Leases
The following is a schedule of significant future minimum lease payments under operating leases at December 31, 2010 (in
thousands):
2010
2009
2008
Income tax at statutory federal rate
$
534
$
2,288
$
2,460
State income taxes, net of federal benefit
36
393
422
Effect of permanent differences
467
757
765
Change in valuation allowance – discrete release
(3,979
)
—
(
3,671
)
Other changes in valuation allowance, net
(1)
(1,026
)
(4,262
)
(3,064
)
Unrecognized tax benefits
23
1,710
—
Other
—
(
332
)
302
$
(3,945
)
$
554
$
(2,786
)
(1) Other changes in valuation allowance, net includes the tax effect of utilization of net operating losses of $401,000, $3.0
million and $4.4 million for the years ended December 31, 2010, 2009 and 2008, respectively, which were provided for as
part of the valuation allowance prior to utilization.
Total rent expense was approximately $959,000 in 2010 and $657,000 in each of 2009 and 2008.
In November 2003, we entered into a facility lease agreement commencing in March 2004 for our corporate headquarters
with aggregate lease payments of $4.0 million through March 2010. In December 2009, we amended our lease agreement term
for 26 months commencing in April 2010 through May 2012. In addition to extending our lease term, we also added lease space
of approximately 5,000 square feet. The total remaining aggregate lease payments as of December 31, 2010 for the original and
amended lease agreement is $1.4 million.
11. Employee Stock Plans
Stock Incentive Plans
Our 1999 Stock Incentive Plan (the “1999 Plan”), which became effective in June 1999, was the successor to the 1998 Stock
Plan (the “1998 Plan”). Upon approval of the 1999 Plan, all outstanding options under the 1998 Plan were transferred to the
1999 Plan, and no further option grants were made under the 1998 Plan. All outstanding options under the 1998 Plan continue to
Operating
Lease
Obligations
Years ending:
2011
1,005
2012
419
Thereafter
—
$
1,424