Juno 2012 Annual Report Download - page 136

Table of Contents




2012, 2011 and 2010 were $104.2 million, $96.7 million and $96.9 million, respectively. At December 31, 2012 and 2011, $1.6 million and
$1.5 million, respectively, of prepaid advertising and promotion expenses were included in other current assets in the consolidated balance sheets.
—Technology and development expenses include expenses for product development, maintenance of existing
software, technology and websites, and development of new or improved software and technology, including personnel-related expenses for the
Company's technology group in various office locations. Costs incurred by the Company to manage and monitor the Company's technology and
development activities are expensed as incurred.
—The Company accounts for costs incurred to develop software for internal use in accordance with ASC 350, which
requires such costs be capitalized and amortized over the estimated useful life of the software. The Company capitalizes costs associated with
customized internal-use software systems that have reached the application development stage. Such capitalized costs include external direct costs
utilized in developing or obtaining the applications and payroll and payroll-related expenses for employees who are directly associated with the
applications. Capitalization of such costs begins when the preliminary project stage is complete and ceases at the point in which the project is
substantially complete and ready for its intended purpose. The Company capitalized costs associated with internal-use software totaling $11.1 million
and $12.8 million in the years ended December 31, 2012 and 2011, respectively, which are being depreciated on a straight-line basis over each project's
estimated useful life, which is generally three years. Capitalized internal-use software is included in the computer software and equipment category
within property and equipment, net, in the consolidated balance sheets.
—The Company follows the provisions of ASC 985, which requires that all costs relating to the purchase
or internal development and production of computer software products to be sold, leased or otherwise marketed be expensed in the period incurred
unless the requirements for technological feasibility have been established. The Company capitalizes all eligible computer software costs incurred once
technological feasibility is established. The Company amortizes these costs using either the straight-line method over a period of three to five years or
the revenue method prescribed by ASC 985. At December 31, 2012 and 2011, the carrying amount of capitalized computer software costs related to the
internal development and production of computer software to be sold, leased or otherwise marketed was $2.8 million and $6.6 million, respectively,
included within property and equipment, net, in the consolidated balance sheets. During the years ended December 31, 2012, 2011 and 2010, the
Company amortized and recognized the associated depreciation expense of $14.9 million, $10.9 million and $7.1 million, respectively, related to these
capitalized computer software costs.
—General and administrative expenses, which include unallocated corporate expenses, consist of personnel-related
expenses for executive, finance, legal, human resources, facilities, internal audit, investor relations, internal customer support personnel, and personnel
associated with operating our corporate network systems. In addition, general and administrative expenses include, among other costs, professional fees
for legal, accounting and financial services; insurance; occupancy and other overhead-related costs; office relocation costs; non-income taxes; gains and
losses on sales of assets; bad debt expense; and reserves or expenses incurred as a result of
F-19