Juno 2013 Annual Report Download - page 101

Table of Contents




The most significant areas of the consolidated financial statements that require management judgment include the Company's revenue recognition,
goodwill, definite-lived intangible assets and other long-lived assets, member redemption liability, income taxes, contingent consideration, and legal
contingencies. The accounting policies for these areas are discussed elsewhere in these consolidated financial statements.
The Company believes that its existing cash and cash equivalents and cash generated from operations will be sufficient to service its debt
obligations and fund its working capital requirements, capital expenditures, dividend payments, and other obligations through at least the next twelve
months.
—Certain prior-period amounts have been reclassified to conform to the current period presentation. These
reclassifications had no impact on the previously-reported consolidated results of operations or stockholders' equity. Certain revisions have been
recorded in prior periods, which had immaterial impacts on the previously-reported consolidated financial statements.
During the quarter ended March 31, 2013, the Company identified an error in the calculation of the MyPoints member redemption liability, which
impacted prior-period balances. The Company evaluated this error and concluded that it did not result in a material misstatement of the Company's
previously-issued consolidated financial statements. Accordingly, the Company has determined to revise, in this report, its previously-reported
consolidated financial statements, including the Company's consolidated balance sheet at December 31, 2012 and consolidated statements of operations
and cash flows for the years ended December 31, 2012 and 2011, to adjust for this error. As a result of this error, accrued liabilities, additional paid-in
capital and retained earnings were overstated by $0.4 million, $0.2 million and $0.8 million, respectively, at December 31, 2012 and member redemption
liability—current, member redemption liability—long-term, and other liabilities were understated by $0.9 million, $0.2 million and $0.3 million,
respectively, at December 31, 2012. Additionally, cost of revenues—services was understated by $92,000 and $98,000 for the years ended
December 31, 2012 and 2011, respectively, provision for income taxes was overstated by $35,000 and $37,000 for the years ended December 31, 2012
and 2011, respectively, and net income was overstated by $57,000 and $61,000 for the years ended December 31, 2012 and 2011, respectively. There
was no impact on net cash provided by operating activities; however, adjustments to deferred taxes, net, within cash flows from operating activities was
understated by $0.3 million for the year ended December 31, 2012, changes in member redemption liability within cash flows from operating activities
were understated by $92,000 million and $98,000, respectively, for the years ended December 31, 2012 and 2011, respectively, and changes in
accounts payable and accrued liabilities within cash flows from operating activities was overstated by $0.3 million and $37,000 for the years ended
December 31, 2012 and 2011, respectively.
During the quarter ended March 31, 2013, the Company identified an error in the calculation of the provision for income taxes as it relates to
changes in the estimated fair value of contingent consideration. Changes in the estimated fair value of contingent consideration are recorded in the
consolidated statements of operations, while, for tax purposes, such changes are treated as a purchase price adjustment; however, the Company
previously recorded a provision for income taxes associated with such changes. The Company evaluated this error and concluded that it did not result in
a material misstatement of the Company's previously-reported consolidated financial statements. Accordingly, the Company has determined to revise, in
this report, its previously-reported consolidated financial
F-9