Juno 2014 Annual Report Download - page 101

Table of Contents
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


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 matters.
—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, 2014, the Company adopted the FASB Accounting Standards Update ("ASU") No. 2013-11, 
, as codified in ASC Topic No. 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. The adoption of this
update did not have a material impact on the Company's consolidated financial statements.
In April 2014, the FASB issued ASU No. 2014-08, 
 The core principle of the guidance raises the threshold for a disposal to qualify as a
discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the new definition of a
discontinued operation. The amendments in this ASU are effective prospectively for disposals (or classifications as held for sale) of components of an entity
that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years. Early adoption is permitted but only for
disposals (or classifications as held for sale) that have not been reported in financial statements previously issued or available for issuance. The Company
does not expect this update to have a material impact on its consolidated financial statements.
In May 2014, the FASB issued ASU No. 2014-09, . The core principle of the guidance is that an entity should
recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to
be entitled in exchange for those goods or services. The amendments in this ASU will be effective for annual reporting periods beginning after December 15,
2016, including interim periods within that reporting period. Early adoption is not permitted. The amendments should be applied retrospectively. The
Company is currently assessing the impact of this update on its consolidated financial statements.
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