Juno 2013 Annual Report Download - page 73

Table of Contents
purchases of rights, content and intellectual property related to our social networking services. Capital expenditures for the year ended December 31,
2012 totaled $11.4 million. At December 31, 2012, we had $1.8 million of property and equipment that was not yet paid for and was included in
accounts payable in the consolidated balance sheets. The actual amount of future capital expenditures may fluctuate due to a number of factors,
including, without limitation, potential future acquisitions and new business initiatives, which are difficult to predict and which could change
significantly over time. Additionally, technological advances may require us to make capital expenditures to develop or acquire new equipment or
technology in order to replace aging or technologically obsolete equipment.
Net cash used for financing activities from continuing operations decreased by $3.7 million, or 9%, for the year ended December 31, 2012,
compared to the year ended December 31, 2011. The decrease was primarily due to a $5.1 million decrease in repurchases of common stock, partially
offset by a $0.9 million increase in proceeds from employee stock purchase plans.
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We measure our contingent consideration liability at fair value on a recurring basis using significant unobservable inputs classified within Level 3
of the fair value hierarchy. Contingent consideration related to the acquisition of schoolFeed, Inc. is measured based on three annual earnout periods
ending June 30, 2013, 2014 and 2015 and, if earned, will be paid annually shortly after the closing of each earnout period. The range of the amounts we
could pay under the contingent consideration arrangement is between $0 and $27.5 million. We review and reassess the estimated fair value of the
contingent consideration on a quarterly basis, and future fair value estimates could differ from the initial estimate.
During the quarter ended March 31, 2013, Facebook restricted certain functionality of the schoolFeed app, which limited schoolFeed's ability to
use the Facebook platform to contact users who are not registered members of schoolFeed. Subsequently, in May 2013, Facebook discontinued the
schoolFeed app's access to the Facebook platform, which resulted in the termination of future new installations of the schoolFeed app through
Facebook, as well as the discontinuance of the sharing of Facebook content through the schoolFeed app. At June 30, 2013, we had accrued $3.4 million
for the contingent consideration payment for the earnout period ended June 30, 2013, which was paid in full in August 2013. We recognized a gain of
$5.1 million in the year ended December 31, 2013 related to resulting changes in the estimated fair value of the contingent consideration. We do not
currently expect any contingent consideration will be earned for either of the remaining earnout periods.
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Contractual obligations at December 31, 2013 were as follows (in thousands):
At December 31, 2013, we had liabilities for uncertain tax positions totaling $11.4 million, of which $6.5 million was included in other liabilities in
the contractual obligations table above and, at December 31, 2013, was expected to be due in less than one year. We are not able to reasonably estimate
when or if cash payments for long-term liabilities related to uncertain tax positions will occur.
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Member redemption liability $ 20,927 $ 14,738 $ 6,189 $ —
Noncancelable operating leases 14,435 6,757 5,415 2,263
Purchase obligations 1,767 1,607 160 —
Other liabilities 6,499 6,489 6 4
Total $ 43,628 $ 29,591 $ 11,770 $ 2,267