46
Foreign Currency Risk
For the year ended December 31, 2013, we generated $38.2 million of revenue outside the U.S. A majority of our transactions
generated outside the U.S. are denominated in U.S. dollars and a change in exchange rates would not have a material impact on our
Consolidated Financial Statements. As of December 31, 2013, we had approximately $0.1 million of billed and $0.1 million unbilled
accounts receivable that would expose us to foreign currency exchange risk. During 2013, our average receivables and deferred
revenue subject to foreign currency exchange risk were $0.4 million and $0.2 million, respectively. We recorded an immaterial
amount of transaction income on foreign currency denominated receivables and deferred revenue for the year ended December 31,
2013.
Item 8.
Financial Statements and Supplementary Data
The financial statements listed in Item 15 are included in this Annual Report on Form 10-K beginning on page F-1.
Item 9.
Changes In and Disagreements With Accountants on Accounting and Financial Disclosure
None.
Item 9A.
Controls and Procedures
Evaluation of Disclosure Controls and Procedures
As of the end of the period covered by this Annual Report on Form 10-K, we carried out an evaluation, under the supervision
and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness
of the design and operation of our disclosure controls and procedures. There are inherent limitations to the effectiveness of any system
of disclosure controls and procedures, including the possibility of human error and the circumvention or overriding of the controls and
procedures. Accordingly, even effective disclosure controls and procedures can only provide reasonable assurance of achieving their
control objectives.
Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and
procedures (as defined in Rule 13a-15(e) or 15d-15(e) of the Exchange Act) were effective to provide reasonable assurance that
information we are required to disclose in reports we file or submit under the Exchange Act is recorded, processed, summarized and
reported within the time periods specified in the applicable rules and forms, and that it is accumulated and communicated to our
management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding
required disclosure.
Management’s Report on Internal Control over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in
Exchange Act Rule 13a-15(f). Management, including our Chief Executive Officer and Chief Financial Officer, conducted an
evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control—Integrated
Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (1992 framework). Based on this
evaluation, management concluded that our internal control over financial reporting was effective as of December 31, 2013.
Management reviewed the results of their assessment with our Audit Committee. The effectiveness of our internal control over
financial reporting as of December 31, 2013 has been audited by Ernst & Young LLP, an independent registered public accounting
firm, as stated in their report which is included in Item 9A of this Annual Report on Form 10-K.
Changes in Internal Control over Financial Reporting
There were no changes in the Company’s internal controls over financial reporting during the quarter ended December 31, 2013,
that are materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
