Juno 2014 Annual Report Download - page 99

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Table of Contents




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 sales of assets; bad debt expense; and reserves or expenses incurred as a result of settlements, judgments, fines, penalties, assessments, 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.
—Restructuring and other exit costs consist of costs associated with the realignment and reorganization of the
Company's operations and other employee termination events. Restructuring and other exit costs include employee termination costs, facility closure and
relocation costs, and contract termination costs. The timing of associated cash payments is dependent upon the type of exit cost and can extend over a 12-
month period. The Company records restructuring and other exit costs liabilities in accrued liabilities in the consolidated balance sheets.
—The Company follows the provisions of ASC 718, , which requires the measurement
and recognition of compensation expense for all share-based payment awards made to employees and directors including restricted stock units, stock awards,
stock options, and employee stock purchases. ASC 718 requires companies to estimate the fair value of share-based payment awards on the grant date using
an option-pricing model. The Company values its restricted stock units based on the grant-date closing price of the Company's common stock. The Company
uses the Black-Scholes option-pricing model for valuing stock options. The Company's assumptions about stock price volatility are based on the Company's
historical volatility for periods approximating the expected life of options granted. The expected term was estimated using the simplified method because the
Company does not have adequate historical data to estimate expected term. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the
time of grant. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods on a
straight-line basis in the Company's consolidated statements of operations. ASC 718 also requires forfeitures to be estimated at the time of grant in order to
calculate the amount of share-based payment awards ultimately expected to vest. The Company uses the "with and without" approach in determining the
order in which tax attributes are utilized. As a result, the Company only recognizes a tax benefit from share-based payment awards in additional paid- in
capital in the consolidated balance sheets if an incremental tax benefit is realized after all other tax attributes currently available to the Company have been
utilized. In addition, the Company accounts for the indirect effects of share-based payment awards on other tax attributes in the consolidated statements of
operations.
—The Company follows the provisions of ASC 220, , which establishes standards for reporting
comprehensive income and its components in financial statements. Comprehensive income, as defined, includes all changes in equity during a period from
non- owner sources. For the Company, comprehensive income primarily consists of its reported net income, changes in unrealized gains or losses on
derivatives, net of tax, and foreign currency translation.
F-17