Classmates.com 2010 Annual Report Download - page 153

Table of Contents
UNITED ONLINE, INC.
NOTES TO PARENT COMPANY FINANCIAL STATEMENTS
1. BASIS OF PRESENTATION
The financial statements for United Online, Inc. (the "Parent Company") summarize the results of operations and cash flows of the Parent
Company for the years ended December 31, 2010, 2009 and 2008 and its financial position at December 31, 2010 and 2009.
In these statements, the Parent Company's investment in subsidiaries is stated at cost plus equity in undistributed earnings of subsidiaries
since the date the Parent Company began consolidating them ("date of acquisition"). The Parent Company's share of net income (loss) of its
subsidiaries is included in net income (loss) using the equity method. The Parent Company financial statements should be read in conjunction
with the consolidated financial statements of United Online, Inc. for the corresponding years.
Under the terms of agreements governing indebtedness of FTD Group, Inc., a subsidiary of United Online, Inc., such subsidiary is
significantly restricted from making dividend payments, loans or advances to United Online, Inc. and its subsidiaries. These restrictions have
resulted in the restricted net assets (as defined in Rule 4-08(e)(3) of Regulation S-X) of FTD Group, Inc. and its subsidiaries exceeding 25% of
the consolidated net assets of United Online, Inc. and its subsidiaries.
2. DIVIDENDS RECEIVED FROM SUBSIDIARIES
During the years ended December 31, 2010, 2009 and 2008, no dividends were paid to the Parent Company by its subsidiaries.
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