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TABLE OF CONTENTS
STAMPS.COM INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
6. Fair Value Measurements
Financialassetsmeasuredatfairvalueonarecurringbasisareclassifiedinoneofthethreefollowingcategories,whichare
describedbelow:
Level1-Valuationsbasedonunadjustedquotedpricesforidenticalassetsinanactivemarket.
Level2-Valuationsbasedonquotedpricesinmarketswheretradingoccursinfrequentlyorwhosevaluesarebasedonquoted
pricesofinstrumentswithsimilarattributesinactivemarkets.
Level3-Valuationsbasedoninputsthatareunobservableandinvolvemanagementjudgmentandourownassumptionsabout
marketparticipantsandpricing.
ThefollowingtablesummarizesourfinancialassetsmeasuredatfairvalueonarecurringbasisasofDecember31,2015and2014
(inthousands):
Fair Value Measurement at Reporting Date Using
Description
December 31,
2015
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Cashandcashequivalents $ 65,126 $ 65,126 $ — $ —
Available-for-saledebtsecurities 10,082  —  10,082  —
Total $ 75,208 $ 65,126 $ 10,082 $ —
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)
Cashandcashequivalents $ 40,933 $ 40,933 $ — $ —
Available-for-saledebtsecurities 16,697  —  16,697  —
Total $ 57,630 $ 40,933 $ 16,697 $ —
Thefairvalueofouravailable-for-saledebtsecuritiesincludedintheLevel2categoryisbasedonthemarketvaluesobtained
fromanindependentpricingservicethatwereevaluatedusingpricingmodelsthatvarybyassetclassandmayincorporateavailable
trade,bidandothermarketinformationandpricequotesfromwell-establishedindependentpricingvendorsandbroker-dealers.
AsofDecember31,2015and2014wehad$63.2millionand$25.0million,respectively,ofcontingentconsiderationrelatingto
ouracquisitionofShipStation(seeNote3–“Acquisitions”)thatwasrequiredtobemeasuredatfairvalue.
Thefollowingtablesummarizesourcontingentconsiderationmeasuredatfairvalueonarecurringbasis(inthousands):
Fair Value Measurement at Reporting Date Using
Description
December 31,
2015
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Contingentconsideration–current $ 63,209 $ 63,209 $ — $ —
F-23