Juno 2013 Annual Report Download - page 102

Table of Contents
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

statements, including the Company's consolidated balance sheet at December 31, 2012 and consolidated statement of operations and cash flows for the
year ended December 31, 2012. As a result of this error, other current assets, accrued liabilities and retained earnings were understated by $0.4 million,
$0.1 million and $0.3 million, respectively, at December 31, 2012. Additionally, the provision for income taxes was overstated by $0.3 million for the
year ended December 31, 2012. There was no impact on net cash provided by operating activities; however, changes in other assets within cash flows
from operating activities was understated by $0.4 million and changes in accounts payable and accrued liabilities within cash flows from operating
activities were overstated by $0.1 million for the year ended December 31, 2012, respectively.

—The Company complies with the reporting requirements of Financial Accounting Standards Board ("FASB") Accounting Standards
Codification ("ASC") 280, . Management measures and reviews segment performance for internal reporting purposes in accordance
with the "management approach" defined in ASC 280. The reportable segments identified in Note 2 below are the segments of the Company for which
separate financial information is available and for which segment results are regularly reviewed by the Company's chief operating decision maker in
deciding how to allocate resources and assess performance.
—The Company considers cash equivalents to be only those investments which are highly liquid, readily convertible to
cash and which have a maturity date within three months from the date of purchase.
At December 31, 2013 and 2012, the Company's cash and cash equivalents were maintained primarily with major financial institutions and
brokerage firms in the United States ("U.S."), Germany and India. Deposits with these institutions and firms generally exceed the amount of insurance
provided on such deposits.
—The Company's accounts receivable are derived primarily from revenues earned from advertising customers located in the
U.S. and pay accounts. The Company extends credit based upon an evaluation of the customer's financial condition and, generally, collateral is not
required. The Company maintains an allowance for doubtful accounts receivable based upon the expected collectibility of accounts receivable and, to
date, such losses have been within management's expectations.
The Company evaluates specific accounts receivable where information exists that the customer may have an inability to meet its financial
obligations. In these cases, based on the best available facts and circumstances, a specific allowance is recorded for that customer against amounts due to
reduce the receivable to the amount that is expected to be collected. These specific allowances are re-evaluated and adjusted as additional information is
received that impacts the amount of the allowance. Also, an allowance is established for all customers based on the aging of the receivables. If
circumstances change (i.e., higher than expected delinquencies or an unexpected material adverse change in a customer's ability to meet its financial
obligations), the estimates of the recoverability of amounts due to the Company are adjusted.
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