Juno 2012 Annual Report Download - page 137

Table of Contents




settlements, judgments, fines, penalties, assessments, or other resolutions related to litigation, arbitration, investigations, disputes, or similar matters.
General and administrative expenses also include expenses resulting from actual or potential transactions such as business combinations, mergers,
acquisitions, dispositions, spin-offs, financing transactions, and other strategic transactions, including, without limitation, expenses for advisors and
representatives such as investment bankers, consultants, attorneys, and accounting firms.
 —Restructuring and other exit costs consist of costs associated with the realignment and reorganization of the
Company's operations and other employee termination events. Restructuring and other exit costs include employee termination costs, facility closure and
relocation costs, and contract termination costs. The timing of associated cash payments is dependent upon the type of exit cost and can extend over a
12-month period. The Company records restructuring and other exit costs liabilities in accrued liabilities in the consolidated balance sheets.
—The Company follows the provisions of ASC 718, , which requires the
measurement and recognition of compensation expense for all share-based payment awards made to employees and directors including restricted stock
units, stock awards, stock options, and employee stock purchases. ASC 718 requires companies to estimate the fair value of share-based payment
awards on the grant date using an option-pricing model. The Company values its restricted stock units based on the grant-date closing price of the
Company's common stock. The Company uses the Black-Scholes option-pricing model for valuing stock options. The Company's assumptions about
stock price volatility are based on the Company's historical volatility for periods approximating the expected life of options granted. The expected term
was estimated using the simplified method because the Company does not have adequate historical data to estimate expected term. The risk-free interest
rate is based on the U.S. Treasury yield curve in effect at the time of grant. The value of the portion of the award that is ultimately expected to vest is
recognized as an expense over the requisite service periods on a straight-line basis in the Company's consolidated statements of operations. ASC 718
also requires forfeitures to be estimated at the time of grant in order to calculate the amount of share-based payment awards ultimately expected to vest.
The Company uses the "with and without" approach in determining the order in which tax attributes are utilized. As a result, the Company only
recognizes a tax benefit from share-based payment awards in additional paid-in capital in the consolidated balance sheets if an incremental tax benefit is
realized after all other tax attributes currently available to the Company have been utilized. In addition, the Company accounts for the indirect effects of
share-based payment awards on other tax attributes in the consolidated statements of operations.
—The Company follows the provisions of ASC 220, , which establishes standards for reporting
comprehensive income and its components in financial statements. Comprehensive income, as defined, includes all changes in equity during a period
from non-owner sources. For the Company, comprehensive income primarily consists of its reported net income, changes in unrealized gains or losses
on derivatives, net of tax, and foreign currency translation.
—The Company accounts for foreign currency translation in accordance with ASC 830, .
The functional currency of each of the Company's
F-20