Juno 2014 Annual Report Download - page 41

Table of Contents
redemption liability. A 100 basis point increase or decrease in the estimate of points that will never be redeemed would increase or decrease our member
redemption liability at December 31, 2014 by approximately $32,000.
Points in active MyPoints accounts do not expire; however, unredeemed points expire after 12 consecutive months of inactivity. For purposes of the
member redemption liability, "inactive" means a lack of all of the following: email response; survey completion; profile update; and any point-earning or
point-redeeming transaction. The canceling or disabling of inactive MyPoints accounts would have no impact on our consolidated financial statements, as
we fully consider inactive MyPoints accounts when establishing the member redemption liability, as discussed above.
The following table sets forth, for the periods presented, a reconciliation of the changes in the member redemption liability (in thousands):
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We apply the provisions of ASC 740, . Under ASC 740, deferred tax assets and liabilities are determined based on differences between the
financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are
expected to reverse. We record a valuation allowance to reduce our deferred tax assets to the amount that is more likely than not to be realized. In evaluating
our ability to recover our deferred tax assets, we consider all available positive and negative evidence, including our operating results, ongoing tax planning
and forecasts of future taxable income on a jurisdiction-by-jurisdiction basis. In accordance with ASC 740, we recognize, in our consolidated financial
statements, the impact of our tax positions that are more likely than not to be sustained upon examination based on the technical merits of the positions. The
Company recognizes interest and penalties for uncertain tax positions in income tax expense.
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We are currently involved in certain legal proceedings and investigations. We record 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, we continually
assess the potential liability related to such pending matters.
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Revenues
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Communications services revenues consist of amounts charged to pay accounts for dial-up Internet access, mobile broadband, DSL, email, Internet
security, web hosting, voice services, and other services. Content & Media services revenues primarily consist of amounts charged to pay accounts for social
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    
Beginning balance $ 20,927 $ 22,575
Accruals for points earned 10,515 11,892
Reduction for redeemed points (11,805) (13,586)
Changes in allowance for points expected to expire and weighted-average cost
of points (990) 46
Ending balance $ 18,647 $ 20,927