Juno 2014 Annual Report Download - page 90

Table of Contents
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United Online, Inc. (together with its subsidiaries, "United Online" or the "Company"), through its operating subsidiaries, provides consumer services and
products over the Internet under a number of brands, including NetZero, Juno, Classmates, StayFriends, and MyPoints. The Company reports its business in
two reportable segments: Communications and Content & Media. The Company's primary Communications service is Internet access. The Company's
Content & Media segment provides social networking services and products and a loyalty marketing service. On a combined basis, the Company's web
properties attract a significant number of Internet users and the Company offers a broad array of Internet marketing services for advertisers.
On November 1, 2013, United Online, Inc. consummated the separation of FTD Companies, Inc. (together with its subsidiaries, "FTD") from United
Online, Inc. through a tax-free distribution of all FTD Companies, Inc. common stock held by United Online, Inc. to United Online, Inc.'s stockholders (the
"FTD Spin-Off Transaction"). On October 31, 2013, immediately prior to the completion of the FTD Spin-Off Transaction, United Online, Inc. implemented a
one-for-seven reverse stock split of shares of United Online, Inc. common stock. Accordingly, the results of operations, the financial condition and the cash
flows of FTD have been presented as discontinued operations for all periods presented. Further, except as noted, all United Online, Inc. common stock share
information and related per share amounts have been adjusted to reflect the one-for-seven reverse stock split of shares of United Online, Inc. common stock.
Prior to the completion of the FTD Spin-Off Transaction, United Online, Inc. and FTD entered into a Separation and Distribution Agreement, a Tax
Sharing Agreement and an Employee Matters Agreement, each dated October 31, 2013, that govern the post-separation relationship. In addition, United
Online, Inc. and FTD entered into a Transition Services Agreement, dated October 31, 2013, as amended January 2, 2014, under which United Online, Inc.
agreed to provide FTD with various services on an interim, transitional basis, generally for a period of up to 12 months.
The Company's corporate headquarters are located in Woodland Hills, California, and the Company also maintains offices in Seattle, Washington;
Erlangen, Germany; Berlin, Germany; San Francisco, California; Schaumburg, Illinois; Fort Lee, New Jersey; and Hyderabad, India.
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The Company's consolidated financial statements for the years ended December 31, 2014, 2013 and 2012 have been prepared in accordance with
accounting principles generally accepted in the United States of America ("GAAP"). All significant intercompany accounts and transactions have been
eliminated in consolidation. The results of operations for such periods are not necessarily indicative of the results expected for any future periods.
The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities, disclosure of contingent liabilities and the reported amounts of revenues and expenses. Actual results could differ from these
estimates and assumptions.
The most significant areas of the consolidated financial statements that require management judgment include the Company's revenue recognition,
goodwill, definite-lived intangible assets and
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