Juno 2013 Annual Report Download - page 112

Table of Contents
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


non-forfeitable rights to dividends are participating securities and shall be included in the computation of earnings per share pursuant to the two-class
method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for common stock
and any participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. Certain of
the Company's restricted stock units are considered participating securities because they contain non-forfeitable rights to dividends irrespective of
whether the awards ultimately vest.
—The Company is currently involved in certain legal proceedings and investigations. The Company records liabilities related
to pending matters when an unfavorable outcome is deemed probable and management can reasonably estimate the amount or range of loss. As
additional information becomes available, the Company continually assesses the potential liability related to such pending matter.
—The Company leases office space, data centers, and certain office equipment under operating lease agreements with original
lease periods of up to ten years. Certain of the lease agreements contain rent holidays and rent escalation provisions. Rent holidays and rent escalation
provisions are considered in determining straight-line rent expense to be recorded over the lease term. The lease term begins on the date of initial
possession of the leased property for purposes of recognizing lease expense on a straight-line basis over the term of the lease.

 —Effective January 1, 2013, the Company adopted the
Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") No. 2013-02, 
, as codified in Accounting Standards Codification ("ASC") 220. The amendments in this update require an
entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is
required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated
other comprehensive income by the respective line items of net income but only if the amount reclassified is required under GAAP to be reclassified to
net income in its entirety in the same reporting period. For other amounts that are not required under GAAP to be reclassified in their entirety to net
income, an entity is required to cross-reference to other disclosures required under GAAP that provide additional detail about those amounts. The
adoption of this update did not have a material impact on the Company's consolidated financial statements.

—In July 2013, FASB issued ASU No. 2013-11, 
, as codified in ASC 740, . The amendments in this update state that an
unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax
asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. However, to the extent a net operating loss carryforward, a
similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of
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