Stamps.com 2015 Annual Report Download - page 79

Download and view the complete annual report

Please find page 79 of the 2015 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 102

  • 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
  • 100
  • 101
  • 102

Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Patentsandothers $ 8,889 $ 8,729 $ 160
CustomerRelationship 54,500  2,773 51,727
Technology 33,100  1,598 31,502
Non-Compete 1,100  389 711
Trademark 700  239 461
TotalIntangibleassetsatDecember31,2015 $ 98,289 $ 13,728 $ 84,561
TABLE OF CONTENTS
STAMPS.COM INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
4. Goodwill and Intangible Assets
Goodwillrepresentstheexcessofthefairvalueofconsiderationgivenoverthefairvalueofthetangibleassets,identifiable
intangibleassetsandliabilitiesassumedinbusinesscombinations.
ThefollowingtablesummarizesgoodwillasofDecember31,2014and2015(inthousands):
2014
GoodwillbalanceatDecember31,2013 $ —
Acquisitions(seeNote3–“Acquisitions”)  66,893
GoodwillbalanceatDecember31,2014 $ 66,893
2015
GoodwillbalanceatDecember31,2014 $ 66,893
Acquisitions(seeNote3–“Acquisitions”)  130,914
GoodwillbalanceatDecember31,2015 $ 197,807
  
GoodwillisreviewedforimpairmentannuallyonOctober1stutilizingaqualitativeassessmentoratwo-stepprocess.Wehavean
optiontomakeaqualitativeassessmentofareportingunit'sgoodwillforimpairment.Ifwechoosetoperformaqualitativeassessment
anddeterminethefairvaluemorelikelythannotexceedsthecarryingvalue,nofurtherevaluationisnecessary.Forreportingunits
whereweperformthetwo-stepprocess,thefirststeprequiresustocomparethefairvalueofeachreportingunit,whichweprimarily
determineusinganincomeapproachbasedonthepresentvalueofdiscountedcashflows,totherespectivecarryingvalue,which
includesgoodwill.Ifthefairvalueofthereportingunitexceedsitscarryingvalue,thegoodwillisnotconsideredimpaired.Ifthe
carryingvalueishigherthanthefairvalue,thereisanindicationthatimpairmentmayexistandthesecondstepisrequired.Insteptwo,
theimpliedfairvalueofgoodwilliscalculatedastheexcessofthefairvalueofareportingunitoverthefairvaluesassignedtoits
assetsandliabilities.Iftheimpliedfairvalueofgoodwillislessthanthecarryingvalueofthereportingunit'sgoodwill,thedifference
isrecognizedasanimpairmentloss.
Wehaveamortizableandnon-amortizableintangibleassetsconsistingofpatents,trademarks,tradenames,lease-in-place
intangibleassets,developedtechnology,non-competeagreementsandcustomerrelationshipstotalingapproximately$109.7million
and$29.5millioningrosscarryingamountasofDecember31,2015and2014,respectively.Ourindefinite-livedintangibleassets
consistoftradeanddomainnametotalingapproximately$11.4millionand$490,000asofDecember31,2015and2014,respectively.
ThefollowingtablesummarizesouramortizableintangibleassetsasofDecember31,2015(inthousands):
F-20