Stamps.com 2013 Annual Report Download - page 43

Our exposure to market rate risk for changes in interest rates relates primarily to our investment portfolio. We have not used derivative financial
instruments in our investment portfolio. None of the instruments in our investment portfolio are held for trading purposes. Our cash equivalents
and investments consist of money market, U.S. government obligations, asset-backed securities and public corporate debt securities with
weighted average maturities of 315 days at December 31, 2013. Our cash equivalents and investments approximated $87 million and had a
weighted average interest rate of 0.4%. Interest rate fluctuations impact the carrying value of the portfolio. The fair value of our portfolio of
marketable securities would not be significantly affected by either a 10% increase or decrease in the rates of interest due primarily to the short-
term nature of the portfolio. We do not believe that the future market risks related to the above securities will have a material adverse impact on
our financial position, results of operations or liquidity.
Our consolidated financial statements, schedules and supplementary data, as listed under Item 15, appear in a separate section of this Report
beginning on page F-1.
None.
Evaluation of disclosure controls and procedures
We maintain disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act).
As of the end of the period covered by this Report, our management evaluated, with the participation of our Principal Executive Officer and
Principal Financial Officer, the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report. Based
on that evaluation, our Principal Executive Officer and Principal Financial Officer have concluded, as of that time, that our disclosure controls
and procedures were effective.
Management’s report on internal control over financial reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in
Exchange Act Rule 13a-15(f) and 15d-
15(f). Our internal control system was designed to provide reasonable assurance to our management and
Board of Directors regarding the preparation and fair presentation of published financial statements. All internal control systems, no matter how
well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with
respect to financial statement preparation and presentation.
Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer,
management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (1992 Framework) (COSO)
in Internal Control-
Integrated Framework. Based on our assessment and those criteria, management, including our Chief Executive Officer and
Chief Financial Officer, concluded that our internal control over financial reporting was effective as of December 31, 2013.
Ernst & Young, LLP, the independent registered public accounting firm who also audited our consolidated financial statements, has issued an
attestation report on the effectiveness of internal control over financial reporting as of December 31, 2013, which is included herein.
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Table of Contents
ITEM 7A.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
ITEM 8.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.
ITEM 9.
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE.
ITEM 9A. CONTROLS AND PROCEDURES.