Stamps.com 2014 Annual Report Download - page 81

Download and view the complete annual report

Please find page 81 of the 2014 Stamps.com annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 99

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99

STAMPS.COM INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
The following table summarizes our contingent consideration measured at fair value on a recurring basis (in thousands):
(1) See Note 3 – “Acquisition: for the method used to value the contingent consideration.
The following table represents a reconciliation of contingent consideration obligation measured on a recurring basis using significant
unobservable inputs (level 3) as of December 31, 2014 (in thousands):
F-24
Table of Contents
Fair Value Measurement at Reporting Date Using
Description
December 31,
2014
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Contingent consideration
–
current
(1)
$
9,225
$
—
$
—
$
9,225
Contingent consideration – long-term
(1)
15,790
—
—
15,790
Total
$
25,015
$
—
$
—
$
25,015
2014
Beginning of year balance
$
—
Acquisition related contingent consideration
16,242
Contingent consideration charges
(1)
8,438
Contingent consideration compensation expense
(1)
335
End of year balance
$
25,015
(1)
This amount represents fair value adjustment during the year to contingent consideration recorded associated with the acquisition of
ShipStation. The $8.4 million contingent consideration charge is recorded as a separate line item in our consolidated statement of income.
The $335,000 contingent consideration charge relating to certain employees is recorded in general and administrative expense in operating
expense. See Note 3
–
“
Acquisitions
”
for further description.