Juno 2012 Annual Report Download - page 126

Table of Contents
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United Online, Inc. (together with its subsidiaries, "United Online" or the "Company"), through its operating subsidiaries, is a leading provider of
consumer products and services over the Internet under a number of brands, including FTD, Interflora, Flying Flowers, Flowers Direct, Drake Algar,
Classmates, schoolFeed, StayFriends, Trombi, MyPoints, NetZero, and Juno. The Company reports its business in three reportable segments: FTD,
Content & Media and Communications. The Company's FTD segment provides floral, gift and related products and services to consumers and retail
florists, as well as to other retail locations offering floral, gift and related products and services. The Company's Content & Media segment provides
online nostalgia products and services and an online loyalty marketing service. The Company's primary Communications service is Internet access. On a
combined basis, the Company's web properties attract a significant number of Internet users and the Company offers a broad array of Internet marketing
services for advertisers.
On August 1, 2012, United Online, Inc. announced that its Board of Directors had approved a preliminary plan to separate the Company into two
independent, publicly-traded companies: FTD, which will include the domestic and international operations of the Company's FTD segment, and United
Online, Inc., which will continue to include the businesses of the Company's Content & Media and Communications segments. The transaction is
expected to take the form of a tax-free pro rata distribution to stockholders of United Online, Inc. The transaction is subject to a number of conditions,
including final approval of transaction specifics by the Board of Directors, and is planned to be completed by the end of the third quarter of 2013. In
addition, United Online, Inc. announced that it also is continuing to explore strategic alternatives for its Content & Media and Communications
businesses and monetization opportunities for its portfolio of patents and patent applications.
The Company's corporate headquarters are located in Woodland Hills, California, and the Company also maintains offices in Downers Grove,
Illinois; Centerbrook, Connecticut; Medford, Oregon; Sleaford, England; Quebec, Canada; Seattle, Washington; San Mateo, California; Erlangen,
Germany; Berlin, Germany; San Francisco, California; Schaumburg, Illinois; Fort Lee, New Jersey; and Hyderabad, India.
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The Company's consolidated financial statements for the years ended December 31, 2012, 2011 and 2010 have been prepared in accordance with
accounting principles generally accepted in the United States of America ("GAAP"). All significant intercompany accounts and transactions have been
eliminated in consolidation. The results of operations for such periods are not necessarily indicative of the results expected for any future periods.
The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities, disclosure of contingent liabilities and the reported amounts of revenues and expenses. Actual results could differ from
these estimates and assumptions.
The most significant areas of the consolidated financial statements that require management judgment include the Company's revenue recognition,
goodwill and indefinite-lived intangible assets, definite-lived intangible assets and other long-lived assets, member redemption liability, income taxes,
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