Juno 2012 Annual Report Download - page 134

Table of Contents
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on hardware which is sold without software at the time of delivery. For hardware sales that include software, revenue is recognized when delivery,
installation and customer acceptance have all occurred.
Services revenues based on orders sent to floral network members are recognized in the period in which the orders are delivered. Monthly fees,
recurring fees and other floral network service-based fees are recognized in the period in which the related service is provided.
Content & Media Segment and Communications Segment Revenue Recognition—Revenues are comprised of products revenues, which are
derived primarily from the sale of yearbook reprints and related shipping fees, as well as from the sale of third-party merchandise; services revenues,
which are derived primarily from fees charged to pay accounts; and advertising and other revenues.
The Company's online nostalgia products revenues are derived from the sale of yearbook reprints and related shipping fees. Products revenues
from the sale of yearbook reprints are recognized upon delivery to the customer. Shipping fees charged to customers are recognized at the time the
related products revenues are recognized and are included in products revenues. Shipping costs are included in cost of revenues.
The Company's Communications products revenues are generated from the sale of NetZero 4G mobile broadband service devices and the related
shipping and handling fees and are recognized upon delivery of such devices. Sales of NetZero 4G mobile broadband service devices bundled with free
or paid service plans are allocated using the relative selling price method in accordance with the multiple-element arrangement provisions of ASC 605.
The selling prices of the Company's NetZero 4G mobile broadband paid service plans are determined by vendor specific objective evidence, which is
based upon the monthly stand-alone selling price of each plan. The selling prices of the NetZero 4G mobile broadband service devices and free service
plans are determined by management's best estimate of selling price, which considers market and economic conditions, internal costs, pricing, and
discounting practices. The revenues allocated to the free or paid service plans are recognized ratably over the service period.
Service revenues for the Company's online nostalgia services and for its Communications services are derived primarily from fees charged to pay
accounts and are recognized in the period in which fees are fixed or determinable and the related services are provided to the customer. The Company's
pay accounts generally pay in advance for their services by credit card, PayPal or check, and revenues are then recognized ratably over the service
period. Advance payments from pay accounts are recorded on the consolidated balance sheets as deferred revenue. The Company offers alternative
payment methods to credit cards for certain Communications pay service plans. These alternative payment methods currently include use of automated
clearinghouse, payment by money order, or payment through a local telephone company. In circumstances where payment is not received in advance,
revenues are only recognized if collectibility is reasonably assured.
Advertising revenues from the Company's online nostalgia services and from its Communications services consist primarily of amounts from its
Internet search partner that are generated as a result of users utilizing the partner's Internet search services, amounts generated from display
advertisements, and amounts generated from referring members to third-party websites or services. The Company recognizes such advertising revenues
in the period in which the advertisement is displayed or, for performance-based arrangements, when the related performance criteria are met. In
determining
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