Incredimail 2012 Annual Report Download - page 111

PERION NETWORK LTD. AND ITS SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars in thousands (except share and per share data)
As of December 31, 2012 and 2011, the Company had cash, cash equivalents and restricted cash of $32,012 and $11,220,
respectively, which are classified in the Level 1 hierarchy. Money market funds and treasury notes in the total amount of $
10 and $ 40, respectively, presented as part of cash and cash equivalents and derivative financial instruments, in the
amount of $ 248 and $ (44) respectively, presented in other receivables and prepaid expenses and as part of accrued
expenses and other liabilities, respectively, measured using input type Level 2. Payment obligation related to acquisitions
(short term and long term) in the amount of $ 16,427 and $ 6,574 respectively, is classified as level 3. Changes in level 3
are primarily attributable to increase related to the Sweet IM acquisition during 2012 (refer to Note 3) and the decrease is
primarily due to the payment made during 2012 for Smilebox acquisition (refer to Note 3).
In the past the Company repurchased its Ordinary shares on the open market and holds those shares as treasury shares.
The Company presents the cost to repurchase treasury shares as a reduction of shareholders' equity.
The Company accounts for comprehensive income in accordance with ASC 220, "Comprehensive Income". This
statement establishes standards for the reporting and display of comprehensive income and its components in a full set of
general purpose financial statements. Comprehensive income generally represents all changes in shareholders' equity
during the period except those resulting from investments by, or distributions to, shareholders. The Company determined
that its items of other comprehensive income relates to unrealized gains and losses on available for sale securities.
In May 2011, the FASB issued guidance that changed the requirement for presenting "Comprehensive Income" in the
consolidated financial statements. The update requires an entity to present the components of other comprehensive income
either in a single continuous statement of comprehensive income or in two separate but consecutive statements. The
update is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011 and should
be applied retrospectively. The Company adopted this new guidance on January 1, 2012 and elected to present the
comprehensive income in two separate but consecutive statements.
NOTE 2:
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SIGNIFICANT ACCOUNTING POLICIES (Cont.)
•
Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement.
t.
Treasury shares:
u.
Comprehensive income:
F
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