Juno 2013 Annual Report Download - page 49

Table of Contents
associated with the sale of yearbook reprints and the related shipping and handling costs; license fees; and domain name registration fees.
Communications cost of revenues includes telecommunications and data center costs; personnel- and overhead-related costs associated with
operating our networks and data centers; depreciation of network computers and equipment; license fees; costs related to providing customer support;
costs related to customer billing and billing support for our pay accounts; fees associated with the storage and processing of customer credit cards and
associated bank fees; domain name registration fees; and the costs associated with the sale of mobile broadband devices, including the related shipping
and handling costs.
Sales and Marketing
Sales and marketing expenses include expenses associated with promoting our brands, services and products and with generating advertising
revenues. Expenses associated with promoting our brands, services and products include advertising and promotion expenses; fees paid to distribution
partners, third-party advertising networks and co-registration partners to acquire new pay and free accounts; personnel and overhead-related expenses
for marketing, merchandising, customer service, and sales personnel; and telemarketing costs incurred to acquire and retain pay accounts and up-sell pay
accounts to additional services. Expenses associated with generating advertising revenues include sales commissions and personnel-related expenses.
We have expended significant amounts on sales and marketing, including branding and customer acquisition campaigns consisting of television,
Internet, public relations, sponsorships, print, and outdoor advertising, and on retail and other performance-based distribution relationships. Marketing
and advertising costs to promote our services and products are expensed in the period incurred. Advertising and promotion expenses include media,
agency and promotion expenses. Media production costs are expensed the first time the advertisement is run. Media and agency costs are expensed over
the period the advertising runs.
Technology and Development
Technology and development expenses include expenses for product development, maintenance of existing software, technology and websites, and
development of new or improved software and technology, including personnel-related expenses for our technology group in various office locations.
Costs incurred by us to manage and monitor our technology and development activities are expensed as incurred.
General and Administrative
General and administrative expenses, which include unallocated corporate expenses, consist of personnel-related expenses for executive, finance,
legal, human resources, facilities, internal audit, investor relations, internal customer support personnel and personnel associated with operating our
corporate network systems. In addition, general and administrative expenses include, among other costs, professional fees for legal, accounting and
financial services; insurance; occupancy and other overhead-related costs; office relocation costs; non-income taxes; gains and losses on the sale of
assets; bad debt expense; and reserves or expenses incurred as a result of settlements, judgments, fines, penalties, assessment, or other resolutions
related to litigation, arbitration, investigations, disputes, or similar matters. General and administrative expenses also include expenses resulting from
actual or potential transactions such as business combinations, mergers, acquisitions, dispositions, spin offs, financing transactions, and other strategic
transactions, including, without limitation, expenses for advisors and representatives such as investment bankers, consultants, attorneys, and accounting
firms.
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