Juno 2012 Annual Report Download - page 33

Table of Contents
in the relevant tax, accounting and other laws, regulations, principles, and interpretations. We are subject to audit in various jurisdictions, and such
jurisdictions may assess additional income and other taxes against us. Although we believe our tax estimates are reasonable, the final determination of
tax audits and any related litigation could be materially different from our historical income tax provisions, and our historical recognition of other tax
matters. The results of an audit or litigation could have a material adverse effect on our business, financial condition, results of operations, and cash
flows.
In connection with our Internet-based transactions, a number of states have been considering or adopting legislation or instituting policy initiatives,
including those that would facilitate a finding of nexus to exist between Internet companies with the states, aimed at expanding the reach of sales and use
taxes or imposing state income or other taxes on various innovative theories, including agency attribution from independent third-party service
providers. Such legislation or initiatives could result in the imposition of additional sales and use taxes, or the payment of state income or other taxes, on
certain transactions conducted over the Internet. In addition, advertisers and other third parties may choose to not do business with us in order to avoid
nexus with certain states. If such legislation is enacted, or such initiatives are instituted, and unless overturned by the courts, the legislation or initiatives
could subject us to substantially increased tax liabilities for past and future sales or state income or other taxes, require us to collect additional sales and
use taxes, cause our future sales to decrease, otherwise negatively impact our businesses, and thus have a material adverse effect on us.
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Our businesses operate in a number of countries outside the U.S. Conducting international operations involves risks and uncertainties, including:
•adverse fluctuations in foreign currency exchange rates;
•potentially adverse tax consequences, including the complexities of foreign value added taxes and restrictions on the repatriation of
earnings;
•increased financial accounting, tax and reporting burdens and complexities;
•disruption of our ongoing business and significant diversion of management attention from day-to-day responsibilities;
•localization of our services, including translation into foreign languages and adaptation for local practices and regulatory requirements;
•lack of familiarity with, and unexpected changes in, foreign regulatory requirements;
•potentially longer accounts receivable collection cycles;
•difficulties in managing and staffing international operations;
•the burdens of complying with a wide variety of foreign laws, regulations and legal and regulatory standards;
•political, social and economic instability abroad, terrorist attacks and security concerns in general; and
•nationalization;
•reduced or varied protection for intellectual property and proprietary rights.
The occurrence of any one of these risks could negatively affect our international operations, our key business metrics, and our financial results.
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