Juno 2013 Annual Report Download - page 111

Table of Contents




—The Company follows the provisions of ASC 220, , which establishes standards for reporting
comprehensive income and its components in financial statements. Comprehensive income, as defined, includes all changes in equity during a period
from non-owner sources. For the Company, comprehensive income primarily consists of its reported net income, changes in unrealized gains or losses
on derivatives, net of tax, and foreign currency translation.
—The Company accounts for foreign currency translation in accordance with ASC 830, .
The functional currency of each of the Company's international subsidiaries is its respective local currency. The financial statements of these subsidiaries
are translated to U.S. Dollars using period-end rates of exchange for assets and liabilities, historical rates of exchange for equity, and average rates of
exchange for the period for revenues and expenses. Translation gains and losses are recorded in accumulated other comprehensive loss as a component
of stockholders' equity in the consolidated balance sheets.
—The Company applies the provisions of ASC 740, . Under ASC 740, deferred tax assets and liabilities are
determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and
laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance to reduce its deferred tax assets to
the amount that is more likely than not to be realized. In evaluating the Company's ability to recover its deferred tax assets, the Company considers all
available positive and negative evidence, including its operating results, ongoing tax planning and forecasts of future taxable income on a jurisdiction-
by-jurisdiction basis. In accordance with ASC 740, the Company recognizes, in its consolidated financial statements, the impact of the Company's tax
positions that are more likely than not to be sustained upon examination based on the technical merits of the positions. The Company recognizes interest
and penalties for uncertain tax positions in income tax expense.
In connection with the FTD Spin-Off Transaction, the Company entered into a Tax Sharing Agreement with FTD. The Tax Sharing Agreement
generally will govern the Company's and FTD's respective rights, responsibilities, and obligations after the consummation of the FTD Spin-Off
Transaction with respect to taxes, including ordinary course of business taxes and taxes, if any, incurred as a result of any failure of the distribution to
qualify as tax-free for U.S. federal income tax purposes within the meaning of Section 355 of the Internal Revenue Code of 1986, as amended (the
"Code"), including as a result of Section 355(e) of the Code. Under the Tax Sharing Agreement, with certain exceptions, FTD generally will be
responsible for the payment of all income and non-income taxes attributable to its operations or the operations of its subsidiaries, and FTD will
indemnify the Company for these taxes. With certain exceptions, the Company generally will be responsible for the payment of all other income and
non-income taxes, including consolidated U.S. federal income taxes of the United Online tax reporting group for which FTD is severally liable, and the
Company will indemnify FTD for these taxes. The Company and FTD generally will be jointly responsible for any taxes that arise from the failure of
the FTD Spin-Off Transaction to qualify as tax-free for U.S. federal income tax purposes within the meaning of Section 355 of the Code, if such failure
is for any reason for which neither the Company nor FTD is responsible.
—The Company computes earnings per share in accordance with ASC 260, . ASC 260 provides that
unvested share-based payment awards that contain
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