Classmates.com 2010 Annual Report Download - page 57

Table of Contents
taxes; gains and losses on the sale of assets; and expenses incurred as a result of settlements, judgments, fines, penalties, assessment, or other
resolutions related to litigation, arbitration, investigations, disputes, or similar matters, or reserves for any of the foregoing. General and
administrative expenses also include expenses resulting from actual or potential transactions such as business combinations, mergers,
acquisitions, and financing transactions, including expenses for advisors and representatives such as investment bankers, consultants, attorneys,
and accounting firms.
Amortization of Intangible Assets
Amortization of intangible assets principally includes amortization of: acquired pay accounts and free accounts; certain acquired trademarks
and trade names; purchased software and technology; acquired customer and advertising contracts and related relationships; acquired rights,
content and intellectual property; and other acquired identifiable intangible assets. In accordance with the provisions set forth in ASC 350,
goodwill and indefinite-lived intangible assets are not being amortized but are tested for impairment at a reporting unit level on an annual basis
and between annual tests if an event occurs or circumstances change that would indicate the fair value of a reporting unit is below its carrying
value.
Restructuring Charges
Restructuring charges consist of costs associated with the realignment and reorganization of our operations and generally include severance
expenses and facility closure and relocation costs.
Interest Income
Interest income consists of earnings on our cash, cash equivalents and short-term investments held from time to time, and interest on long-
term receivables from FTD's technology system sales.
Interest Expense
Interest expense consists of interest expense on our credit facilities, including accretion of discounts and amortization of debt issue costs,
and interest expense relating to capital leases and our interest rate cap.
Other Income (Expense), Net
Other income (expense), net, generally consists of realized gains and losses recognized in connection with the sale of short-term
investments, equity earnings on investments in subsidiaries, and gains and losses on foreign currency exchange rate transactions. Additionally,
other income (expense), net, consists of realized and unrealized gains and losses on foreign currency forward contracts and other non-operating
income and expenses.
Results of Operations
The following tables set forth for the periods presented selected historical statements of operations data. The information contained in the
tables below should be read in conjunction with Critical Accounting Policies, Estimates and Assumptions, Liquidity and Capital Resources,
Contractual Obligations, and Other Commitments included in this Item 7 as well as "Quantitative and Qualitative Disclosures About Market
Risk" and the consolidated financial statements and notes thereto included elsewhere in this Annual Report on Form 10-K. As a result of the
FTD acquisition, the results of operations of FTD have been included in the consolidated statements of operations and cash flows from
August 26, 2008, the date of acquisition. Combined information for FTD for the full-year ended December 31, 2008 is set forth below under
"FTD Segment Results (Actual Results vs. Combined Results Discussion)".
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