Juno 2012 Annual Report Download - page 139

Table of Contents
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


amendments in this update allow an entity to first assess qualitatively whether it is more likely than not that an indefinite-lived intangible asset is
impaired, thus necessitating that it perform the quantitative impairment test. An entity is not required to calculate the fair value of an indefinite-lived
intangible asset and perform the quantitative impairment test unless the entity determines that it is more likely than not that the asset is impaired. An
entity choosing to perform the qualitative assessment would need to identify and consider those events and circumstances that, individually or in the
aggregate, most significantly affect an indefinite-lived intangible asset's fair value. The amendments include a number of events and circumstances for an
entity to consider in conducting the qualitative assessment. The amendments in this update are effective for annual and interim impairment tests of
indefinite-lived intangible assets performed for fiscal years beginning after September 15, 2012. Early adoption is permitted, including for annual and
interim impairment tests performed as of a date before July 27, 2012, if a public entity's financial statements for the most recent annual or interim period
have not yet been issued. The Company performs its annual impairment assessment in the fourth quarter and adopted this update in the quarter ended
December 31, 2012. The adoption of this update did not have a material impact on the Company's consolidated financial statements.
 —In February 2013, the FASB issued Accounting
Standards Update No. 2013-02,  , as codified in ASC 220. The
amendments in this update require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by
component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant
amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is
required under GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under GAAP
to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under GAAP that provide additional
detail about those amounts. The amendments in this update are effective prospectively for reporting periods beginning after December 15, 2012. The
Company does not expect this update to have a material impact on its consolidated financial statements.
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On June 8, 2012 (the "Closing Date"), Memory Lane, Inc. ("Memory Lane"), a subsidiary of United Online, Inc., completed the acquisition of
schoolFeed, Inc. ("schoolFeed"), owner of the schoolFeed Facebook app. Memory Lane acquired all of the issued and outstanding capital stock of
schoolFeed from the stockholders for consideration of $7.5 million in cash upon closing and a maximum of $27.5 million of contingent consideration
payments payable upon the achievement of certain performance objectives. The acquisition is expected to strengthen the Classmates business
domestically and its StayFriends business internationally by providing the opportunity for our members to reconnect and interact with more of their high
school friends and acquaintances.
The contingent consideration payments are calculated based on the number of individuals who (i) install the schoolFeed app or register for
schoolFeed via the schoolFeed registration process and (ii) the number of eligible new subscribers who convert to pay accounts, all subject to certain
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