Juno 2013 Annual Report Download - page 143

Table of Contents
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
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Net income reflects the following pro forma adjustments:
(i) Amortization of acquired intangible assets based on the estimated fair values at the date of acquisition, net of tax; and
(ii) Acquisition and integration costs incurred by the Company.
The unaudited pro forma information is presented for illustrative purposes only and does not purport to be indicative of the results of future
operations of the Company or of the results that would have actually been attained had the operations been combined during the periods presented.
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Future minimum lease payments at December 31, 2013 under noncancelable operating leases with initial lease terms in excess of one year were as
follows (in thousands):
The Company leases certain office space, data centers, and office equipment under operating leases expiring at various periods through 2018.
Certain of the Company's operating leases include rent holidays, as well as rent escalation provisions. The Company records rent expense on a straight-
line basis over the lease term. Rent expense under operating leases for the years ended December 31, 2013, 2012 and 2011 was $10.3 million,
$11.7 million and $13.1 million, respectively.
In December 2010, the Company's MyPoints subsidiary entered into a sublease agreement with Blackrock, Inc., a five percent or more
shareholder, and Blackrock Realty Advisors, Inc., whereby MyPoints leases approximately 18,000 square feet of office space in San Francisco,
California. In connection with the sublease agreement, United Online, Inc. entered into a parent guaranty of all obligations under the sublease. The term
of the sublease will expire in 2014.
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Letters of credit are maintained pursuant to certain of the Company's lease arrangements and contractual obligations. The amounts of letters of
credit are subject to change based on the terms of the related agreements. Certificates of deposit totaling $0.2 million and $0.3 million at December 31,
2013 and 2012, respectively, were maintained by the Company in connection with certain of these letters of credit and were included in other current
assets and other assets in the consolidated balance sheets. Commitments under letters of credit at December 31, 2013 were scheduled to expire as
follows (in thousands):
F-48
    
        
Operating leases $ 14,435 $ 6,757 $ 3,045 $ 2,370 $ 1,743 $ 520
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 
Letters of credit $ 162 $ 162