Juno 2012 Annual Report Download - page 68

Table of Contents
Costs incurred by us to manage and monitor our technology and development activities are expensed as incurred.
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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 the sale of
assets; bad debt expense; and reserves or expenses incurred as a result of settlements, judgments, fines, penalties, assessment, 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.
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Amortization of intangible assets includes amortization of acquired pay accounts and free accounts; certain acquired trademarks and trade names;
acquired software and technology; acquired customer and advertising contracts and related relationships; acquired rights, content and intellectual
property; and other acquired identifiable intangible assets. In accordance with the provisions set forth in ASC 350, goodwill and indefinite-lived
intangible assets are not being amortized but are tested for impairment on an annual basis and between annual tests if an event occurs or circumstances
change that would indicate the fair value may be below the carrying amount.
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Acquisition-related contingent consideration includes changes in fair value measurements of the acquisition-related contingent consideration, as
well as interest expense related to the contingent consideration. Changes to one or multiple inputs to the Monte-Carlo simulation used to estimate fair
value, including the discount rate, growth rates, volatility rates, the estimated number of daily registrations, and the estimated rate of conversion of new
subscribers to pay accounts, could significantly impact the estimated fair value of the contingent consideration. We review and reassess the estimated
fair value of the contingent consideration on a quarterly basis, and future fair value estimates could differ from the initial estimate.
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Restructuring and other exit costs consist of costs associated with the realignment and reorganization of our 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. We record restructuring
and other exit cost liabilities in accrued liabilities in the consolidated balance sheets.
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Interest income consists primarily of earnings on our cash and cash equivalents and interest on long-term receivables, including those from FTD's
technology system sales.
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