Juno 2013 Annual Report Download - page 100

Table of Contents
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United Online, Inc. (together with its subsidiaries, "United Online" or the "Company"), through its operating subsidiaries, provides consumer
services and products over the Internet under a number of brands, including Classmates, StayFriends, MyPoints, NetZero, and Juno. The Company
reports its business in two reportable segments: Content & Media and Communications. The Company's Content & Media segment provides social
networking products and services and a loyalty marketing service. The Company's primary Communications service is Internet access. On a combined
basis, the Company's web properties attract a significant number of Internet users and the Company offers a broad array of Internet marketing services
for advertisers.
On November 1, 2013, United Online, Inc. consummated the separation of FTD Companies, Inc. (together with its subsidiaries, "FTD") from
United Online, Inc. through a tax-free distribution of all FTD Companies, Inc. common stock held by United Online, Inc. to United Online, Inc.'s
stockholders (the "FTD Spin-Off Transaction"). On October 31, 2013, immediately prior to the completion of the FTD Spin-Off Transaction, United
Online, Inc. implemented a one-for-seven reverse stock split of shares of United Online, Inc. common stock. Accordingly, the results of operations, the
financial condition and the cash flows of FTD have been presented as discontinued operations for all periods presented. Further, except as noted, all
United Online, Inc. common stock share information and related per share amounts have been adjusted to reflect the one-for-seven reverse stock split of
shares of United Online, Inc. common stock.
Prior to the completion of the FTD Spin-Off Transaction, United Online, Inc. and FTD entered into a Separation and Distribution Agreement, a
Tax Sharing Agreement and an Employee Matters Agreement, each dated October 31, 2013, that govern the post-separation relationship. In addition,
United Online, Inc. and FTD entered into a Transition Services Agreement, dated October 31, 2013, as amended January 2, 2014, under which United
Online, Inc. agreed to provide FTD with various services on an interim, transitional basis, generally for a period of up to 12 months.
The Company's corporate headquarters are located in Woodland Hills, California, and the Company also maintains offices in Seattle, Washington;
San Mateo, California; Erlangen, Germany; Berlin, Germany; San Francisco, California; Schaumburg, Illinois; Fort Lee, New Jersey; and Hyderabad,
India.
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The Company's consolidated financial statements for the years ended December 31, 2013, 2012 and 2011 have been prepared in accordance with
accounting principles generally accepted in the United States of America ("GAAP"). All significant intercompany accounts and transactions have been
eliminated in consolidation. The results of operations for such periods are not necessarily indicative of the results expected for any future periods.
The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities, disclosure of contingent liabilities and the reported amounts of revenues and expenses. Actual results could differ from
these estimates and assumptions.
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