Document_and_Entity_Informatio
Document and Entity Information Document | 9 Months Ended | |
Sep. 30, 2013 | Nov. 07, 2013 | |
Document And Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'J2 GLOBAL, INC. | ' |
Entity Central Index Key | '0001084048 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 46,538,978 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $199,181 | $218,680 |
Short-term investments | 108,043 | 105,054 |
Accounts receivable, net of allowances of $3,735 and $3,213, respectively | 64,279 | 37,285 |
Prepaid expenses and other current assets | 22,779 | 15,388 |
Deferred income taxes | 2,729 | 1,092 |
Total current assets | 397,011 | 377,499 |
Long-term investments | 66,899 | 19,841 |
Property and equipment, net | 30,143 | 19,599 |
Tradenames, net | 84,419 | 71,409 |
Patent and patent licenses, net | 18,703 | 19,329 |
Customer relationships, net | 84,023 | 64,723 |
Goodwill | 441,687 | 407,825 |
Other purchased intangibles, net | 9,666 | 9,855 |
Deferred income taxes | 2,130 | 1,852 |
Other assets | 3,409 | 3,238 |
Total assets | 1,138,090 | 995,170 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' |
Accounts payable and accrued expenses | 68,430 | 39,874 |
Income taxes payable | 1,736 | 3,004 |
Deferred revenue, current | 35,675 | 30,493 |
Liability for uncertain tax positions | 5,535 | 5,523 |
Deferred income taxes | 5,098 | 33 |
Total current liabilities | 116,474 | 78,927 |
Long-term Debt | 245,548 | 245,194 |
Liability for uncertain tax positions | 36,010 | 32,155 |
Deferred income taxes | 41,635 | 32,393 |
Deferred revenue, non-current | 12,041 | 1,609 |
Other long-term liabilities | 1,787 | 1,557 |
Mandatorily redeemable financial instrument | 9,760 | 8,740 |
Total liabilities | 463,255 | 400,575 |
Commitments and contingencies | 0 | 0 |
Preferred stock, $0.01 par value. Authorized 1,000,000 and none issued | 0 | 0 |
Common stock, $0.01 par value. Authorized 95,000,000 at September 30, 2013 and December 31, 2012; total issued 45,858,238 and 45,094,191 shares at September 30, 2013 and December 31, 2012, respectively; and total outstanding 45,858,238 and 45,094,191 shares at September 30, 2013 and December 31, 2012, respectively | 459 | 451 |
Additional paid-in capital | 191,287 | 169,542 |
Retained Earnings (Accumulated Deficit) | 475,979 | 424,790 |
Accumulated other comprehensive loss | 8,646 | -88 |
Total stockholders' equity | 676,371 | 594,695 |
Stockholders' Equity Attributable to Noncontrolling Interest | -1,536 | -100 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 674,835 | 594,595 |
Total liabilities and stockholders' equity | $1,138,090 | $995,170 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Allowance for doubtful accounts | $3,735 | $3,213 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 95,000,000 | 95,000,000 |
Common stock, shares issued | 45,858,238 | 45,094,191 |
Common stock, shares outstanding | 45,858,238 | 45,094,191 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Treasury Stock, shares | 0 | 0 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements Of Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues: | ' | ' | ' | ' |
Total revenues | $127,788 | $93,246 | $382,766 | $269,363 |
Cost of revenues (including share-based compensation of $162 and $581 for the three and nine months of 2013, respectively, and $199 and $633 for the three and nine months of 2012, respectively) | 21,801 | 16,303 | 64,715 | 48,354 |
Gross profit | 105,987 | 76,943 | 318,051 | 221,009 |
Operating expenses: | ' | ' | ' | ' |
Sales and marketing (including share-based compensation of $465 and $1,315 for the three and nine months of 2013, respectively, and $390 and $1,117 for the three and nine months of 2012, respectively) | 34,787 | 15,190 | 99,638 | 43,910 |
Research, development and engineering (including share-based compensation of $103 and $311 for the three and nine months of 2013, respectively, and $111 and $344 for the three and nine months of 2012, respectively) | 6,000 | 4,692 | 19,134 | 13,798 |
General and administrative (including share-based compensation of $1,695 and $4,901 for the three and nine months of 2013, respectively, and $1,703 and $4,757 for the three and nine months of 2012, respectively) | 25,892 | 14,784 | 74,377 | 43,387 |
Total operating expenses | 66,679 | 34,666 | 193,149 | 101,095 |
Operating income | 39,308 | 42,277 | 124,902 | 119,914 |
Interest and other income (expense), net | -4,576 | -2,747 | -14,109 | -2,657 |
Income before income taxes | 34,732 | 39,530 | 110,793 | 117,257 |
Income Tax Expense (Benefit) | 7,105 | 7,880 | 24,428 | 25,880 |
Net income attributable to j2 Global, Inc. common shareholders | 27,806 | 31,650 | 86,768 | 91,377 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 27,627 | 31,650 | 86,365 | 91,377 |
Net Income (Loss) Attributable to Noncontrolling Interest | ($179) | $0 | ($403) | $0 |
Net income per common share: | ' | ' | ' | ' |
Basic | $0.60 | $0.69 | $1.88 | $1.97 |
Diluted | $0.59 | $0.69 | $1.85 | $1.96 |
Weighted average shares outstanding: | ' | ' | ' | ' |
Basic | 45,729,171 | 45,002,565 | 45,441,265 | 45,590,160 |
Diluted | 46,291,631 | 45,340,111 | 46,066,604 | 45,897,389 |
Cash dividends paid per common share | $0.25 | $0.22 | $0.72 | $0.65 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements Of Income Condensed Consolidated Statements of Income (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Allocated Share-based Compensation Expense | $2,425 | $2,403 | $7,108 | $6,851 |
Cost of Sales [Member] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | 162 | 199 | 581 | 633 |
Selling and Marketing Expense [Member] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | 465 | 390 | 1,315 | 1,117 |
Research and Development Expense [Member] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | 103 | 111 | 311 | 344 |
General and Administrative Expense [Member] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | $1,695 | $1,703 | $4,901 | $4,757 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statement of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $27,627 | $31,650 | $86,365 | $91,377 |
Foreign currency translation adjustment, net of tax (benefit) of $759 and $(219) for the three and nine months of 2013, respectively, and $196 and $167 for the three and nine months of 2012, respectively | 1,590 | 530 | -526 | 590 |
Unrealized gain (loss) on available-for-sale investments, net of tax (benefit) of $2,465 and $5,380 for the three and nine months of 2013, respectively, and ($877) and ($906) for the three and nine months of 2012, respectively | 4,259 | -1,515 | 9,260 | -1,365 |
Other Comprehensive Income (Loss), Net of Tax | 5,849 | -985 | 8,734 | -775 |
Comprehensive Income | 33,668 | 30,665 | 95,537 | 90,602 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 33,476 | 30,665 | 95,099 | 90,602 |
Net Income (Loss) Attributable to Noncontrolling Interest | -179 | 0 | -403 | 0 |
Foreign currency translation adjustment attributable to noncontrolling Interest, net of tax (benefit) of ($3) and ($20) for the three and nine months of 2013, respectively, and zero and zero for the three and six months of 2012 , respectively | ($13) | $0 | ($35) | $0 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statement of Comprehensive Income Condensed Consolidated Statement of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Foreign currency translation adjustment | $759 | $196 | ($219) | $167 |
Unrealized gain on available-for-sale investments | 2,465 | -877 | 5,380 | -906 |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax, Portion Attributable to Noncontrolling Interest | $0 | $0 | ($20) | $0 |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statement Of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ' | ' |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $86,365 | $91,377 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 28,424 | 15,555 |
Amortization of discount or premium of investments | 1,323 | 1,090 |
Amortization of financing costs and discounts | 456 | 104 |
Share-based compensation | 7,108 | 6,816 |
Excess tax benefits from share-based compensation | -3,171 | -1,016 |
Provision for doubtful accounts | 2,565 | 3,520 |
Deferred income taxes | 472 | -1,012 |
(Gain) loss on sale of available-for-sale investments | 103 | -244 |
Decrease (increase) in: | ' | ' |
Accounts receivable | -7,495 | -7,032 |
Prepaid expenses and other current assets | 945 | -951 |
Other assets | 182 | -118 |
(Decrease) increase in: | ' | ' |
Accounts payable and accrued expenses | 4,035 | 168 |
Income taxes payable | -3,286 | 7,112 |
Deferred revenue | 13,049 | 1,611 |
Liability for uncertain tax positions | 3,867 | 6,538 |
Other | -62 | -1 |
Net cash provided by operating activities | 134,880 | 123,517 |
Cash flows from investing activities: | ' | ' |
Maturity of certificates of deposit | 42,615 | 8,000 |
Purchase of certificates of deposit | -22,071 | -34,674 |
Sales of available-for-sale investments | 82,889 | 64,581 |
Purchase of available-for-sale investments | -139,955 | -140,785 |
Purchases of property and equipment | -11,116 | -3,902 |
Proceeds from sale of assets | 1 | 156 |
Acquisition of businesses, net of cash received | -81,566 | -25,108 |
Purchases of intangible assets | -2,784 | -3,668 |
Net cash used in investing activities | -131,987 | -135,400 |
Cash flows from financing activities: | ' | ' |
Proceeds from Issuance of Long-term Debt | 0 | 245,000 |
Debt issuance costs | -47 | -1,342 |
Repurchases of common stock and restricted stock | -4,513 | -60,261 |
Issuance of common stock under employee stock purchase plan | 161 | 109 |
Exercise of stock options | 13,515 | 4,865 |
Dividends paid | -33,267 | -29,940 |
Excess tax benefits from share-based compensation | 3,171 | 1,016 |
Proceeds from (Payments for) Other Financing Activities | -171 | 0 |
Net cash used in financing activities | -21,151 | 159,447 |
Effect of exchange rate changes on cash and cash equivalents | -1,241 | 591 |
Net change in cash and cash equivalents | -19,499 | 148,155 |
Cash and cash equivalents | 199,181 | 287,514 |
Cash and cash equivalents at end of period | $199,181 | $287,514 |
Basis_Of_Presentation
Basis Of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation and Significant Accounting Policies [Text Block] | ' |
Basis of Presentation | |
j2 Global, Inc., together with its subsidiaries (“j2 Global” or the "Company"), is a leading provider of Internet services. Through its Business Cloud Services Division, the Company provides cloud services to businesses of all sizes, from individuals to enterprises, and licenses its patented technology to third parties. j2 Global's Digital Media Division operates a portfolio of web properties providing technology, gaming and lifestyle content and an innovative data-driven platform to connect advertisers with visitors to those properties in addition to websites operated by third parties that are part of the Division's advertising network. | |
The accompanying interim condensed consolidated financial statements include the accounts of j2 Global and its direct and indirect wholly-owned and less-than-wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. | |
The accompanying interim condensed consolidated financial statements are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), including those for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X issued by the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and note disclosures required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been reflected in these interim financial statements. These financial statements should be read in conjunction with the audited financial statements and related notes for the year ended December 31, 2012 included in our Annual Report on Form 10-K filed with the SEC on March 1, 2013. Accordingly, significant accounting policies and other disclosures normally provided have been omitted since such items are disclosed therein. | |
The results of operations for this interim period are not necessarily indicative of the operating results for the full year or for any future period. | |
Use of Estimates | |
The preparation of consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, including judgments about investment classifications, and the reported amounts of net revenue and expenses during the reporting period. On an ongoing basis, management evaluates its estimates based on historical experience and on various other factors that the Company believes to be reasonable under the circumstances. Actual results could differ from those estimates. | |
Allowances for Doubtful Accounts | |
j2 Global reserves for receivables it may not be able to collect. These reserves for the Company's Business Cloud Services segment are typically driven by the historical volume of credit card declines, an evaluation of current market conditions and past due invoices based on historical experience. These reserves for the Company's Digital Media segment are typically driven by past due invoices based on historical experience. Management evaluates the adequacy of these reserves on an ongoing basis. | |
Revenue Recognition | |
Business Cloud Services | |
The Company's Business Cloud Services revenues substantially consist of monthly recurring subscription and usage-based fees, which are primarily paid in advance by credit card. In accordance with GAAP, the Company defers the portions of monthly, quarterly, semi-annually and annually recurring subscription and usage-based fees collected in advance and recognizes them in the period earned. Additionally, the Company defers and recognizes subscriber activation fees and related direct incremental costs over a subscriber's estimated useful life. | |
j2 Global's Business Cloud Services also include patent license revenues generated under license agreements that provide for the payment of contractually determined fully paid-up or royalty-bearing license fees to j2 Global in exchange for the grant of non-exclusive, retroactive and future licenses to our intellectual property. Patent revenues may also consist of revenues generated from the sale of patents. Patent license revenues are recognized when earned over the term of the license agreements. With regard to fully paid-up license arrangements, the Company recognizes as revenue in the period the license agreement is executed the portion of the payment attributable to past use of the intellectual property and amortizes the remaining portion of such payments on a straight-line basis over the life of the licensed patent(s). With regard to royalty-bearing license arrangements, the Company recognizes revenues of license fees earned during the applicable period. With regard to patent sales, the Company recognizes as revenue in the period of the sale the amount of the purchase price over the carrying value of the patent(s) sold. | |
The Business Cloud Services business also generates revenues by licensing certain technology to third parties. These licensing revenues are recognized when earned in accordance with the terms of the underlying agreement. Generally, revenue is recognized as the third party uses the licensed technology over the period. | |
Digital Media | |
The Company's Digital Media revenues primarily consist of revenues generated from the sale of advertising campaigns that are targeted to the Company's proprietary websites and to those websites operated by third parties that are part of the Digital Media business's advertising network. Revenues for these advertising campaigns are recognized as earned either when an ad is placed for viewing by a visitor to the appropriate web page or when the visitor "clicks through" on the ad, depending upon the terms with the individual advertiser. | |
Revenues for Digital Media business-to-business operations consist of lead-generation campaigns for IT vendors and are recognized as earned when the Company delivers the qualified leads to the customer. | |
j2 Global also generates Digital Media revenues through the license of certain assets to clients, for the clients' use in their own promotional materials or otherwise. Such assets may include logos, editorial reviews, or other copyrighted material. Revenues under such license agreements are recognized when the assets are delivered to the client. The Digital Media business also generates other types of revenues, including business listing fees, subscriptions to online publications, and from other sources. Such other revenues are recognized as earned. | |
Fair Value Measurements | |
j2 Global complies with the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification ("ASC") Topic No. 820, Fair Value Measurements and Disclosures (“ASC 820”), in measuring fair value and in disclosing fair value measurements. ASC 820 provides a framework for measuring fair value and expands the disclosures required for fair value measurements of financial and non-financial assets and liabilities. | |
As of September 30, 2013 and December 31, 2012, the carrying value of cash and cash equivalents, short-term investments, accounts receivable, interest receivable, accounts payable, accrued expenses, interest payable, customer deposits and long-term debt are reflected in the financial statements at cost. With the exception of long-term debt, cost approximates fair value due to the short-term nature of such instruments. The fair value of the Company's senior unsecured notes was determined using the quoted market prices of debt instruments with similar terms and maturities. As of the same dates, the carrying value of other long-term liabilities approximated fair value as the related interest rates approximate rates currently available to j2 Global. | |
Debt Issuance Costs and Debt Discount | |
j2 Global capitalizes costs incurred with borrowing and issuance of debt securities and records debt discounts as a reduction to the debt amount. j2 Global capitalized costs incurred in connection with its sale of senior unsecured notes within long-term other assets and recorded the original purchase discount as a reduction to such notes (See Note 7 - Long Term Debt). These costs and discounts are amortized and included in interest expense over the life of the borrowing or term of the credit facility using the interest method. | |
Concentration of Credit Risk | |
All of the Company’s cash, cash equivalents and marketable securities are invested at major financial institutions primarily within the United States, United Kingdom and Ireland. These institutions are required to invest the Company’s cash in accordance with the Company’s investment policy with the principal objectives being preservation of capital, fulfillment of liquidity needs and above market returns commensurate with preservation of capital. The Company’s investment policy also requires that investments in marketable securities be in only highly rated instruments, with limitations on investing in securities of any single issuer. However, these investments are not insured against the possibility of a total or near complete loss of earnings or principal and are inherently subject to the credit risk related to the continued credit worthiness of the underlying issuer and general credit market risks. At September 30, 2013 and December 31, 2012, the Company’s cash and cash equivalents were maintained in accounts that are insured up to the limit determined by the applicable governmental agency. j2 Global's deposits held in qualifying financial institutions in Ireland are fully insured through March 28, 2018 to the extent on deposit prior to March 28, 2013. With respect to the Company's deposits with financial institutions in other jurisdictions, the insured amount is immaterial in comparison to the total uninsured cash and cash equivalents on deposit. These financial institutions are primarily in the United States and United Kingdom, however, the Company has accounts with financial institutions in several other countries, including Australia, Austria, China, France, Germany, Italy, Japan, New Zealand, the Netherlands and Poland. | |
Income Taxes | |
The Company must make certain estimates and judgments in determining income tax expense for financial statement purposes. These estimates and judgments occur in the following areas, among others: (i) calculation of tax credits, benefits and deductions; (ii) calculation of tax assets and liabilities arising from differences in the timing of recognition of revenue and expense for tax and financial statement purposes; and (iii) interest and penalties related to uncertain tax positions. Significant changes to these estimates may result in an increase or decrease to the Company’s tax provision in the current or a subsequent period. | |
The Company must assess the likelihood that it will be able to recover its deferred tax assets. If recovery is not likely, the Company must increase its provision for taxes by recording a valuation allowance against the deferred tax assets that the Company estimates will not ultimately be recoverable. The Company believes that it will ultimately recover a substantial majority of the deferred tax assets recorded on its condensed consolidated balance sheets. However, should there be a change in the Company’s ability to recover its deferred tax assets, the Company’s tax provision would increase in the period in which j2 Global determined that the recovery was not likely. | |
The calculation of the Company’s tax liabilities involves dealing with uncertainties in the application of complex tax laws. j2 Global recognizes liabilities for uncertain tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. If the Company determines that a tax position will more likely than not be sustained on audit, then the second step requires j2 Global to estimate and measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. It is inherently difficult and subjective to estimate such amounts, as j2 Global has to determine the probability of various possible outcomes. j2 Global reevaluates these uncertain tax positions on a quarterly basis. This evaluation is based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, effectively settled issues under audit and new audit activity. Such a change in recognition or measurement would result in the recognition of a tax benefit or an additional charge to the tax provision. | |
Reclassifications | |
Certain prior year reported amounts have been reclassified to conform with the 2013 presentation. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2013 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In July 2012, the FASB issued ASU No. 2012-02, Intangibles – Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment, which simplifies how entities test indefinite-lived intangible assets other than goodwill for impairment and permits an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of the indefinite-lived intangible asset is less than its carrying amount as a basis for determining whether it is necessary to perform a quantitative impairment test. This ASU is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. The Company adopted this guidance and did not have a significant impact on the Company's consolidated financial position or results of operations. | |
In February 2013, the FASB issued ASU No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, ("AOCI"), which provides guidance on disclosure requirements for items reclassified out of AOCI. This new guidance requires entities to present (either on the face of the income statement or in the notes) the effects on the line items of the income statement for amounts reclassified out of AOCI. This guidance is effective prospectively for reporting periods beginning after December 15, 2012. This new guidance requires disclosures but did not have a material impact on our financial statements. | |
In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, which provides guidance on financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This ASU is effective for fiscal years beginning after December 15, 2013. The Company is currently assessing the impact, if any, from this update with the principal potential impact expected to be related to the presentation of unrecognized tax benefits on the condensed consolidated balance sheet. |
Business_Acquisition
Business Acquisition | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Business Combinations [Abstract] | ' | |||||||
Business Acquisition | ' | |||||||
Business Acquisitions | ||||||||
The Company has completed the following acquisitions during the first nine months of fiscal 2013, paying the purchase price in cash for each transaction: (a) share purchase of IGN Entertainment, Inc. ("IGN"), an online publisher of video games, entertainment and men's lifestyle content; (b) share purchase of MetroFax, Inc., a provider of online faxing services and advanced features; (c) share purchase of Backup Connect BV, an online backup provider based in the Netherlands; (d) share purchase of NetShelter, the largest community of technology publishers dedicated to consumer electronics, computing and mobile communications; (e) share purchase of Email Protection Agency Limited, a UK-based provider of email security, email management and network security services; and (f) other immaterial share and asset acquisitions of online data backup businesses. | ||||||||
The condensed consolidated statement of income, since the date of each acquisition, and balance sheet, as of September 30, 2013, reflect the results of operations of all 2013 acquisitions. For the nine months ended September 30, 2013, these acquisitions contributed $50.3 million to the Company's revenues. Net income contributed by these acquisitions was not separately identifiable due to j2 Global's integration activities. Total consideration for these transactions was $114.0 million, net of cash acquired and including $15.2 million in assumed liabilities consisting primarily of deferred revenues, trade accounts payable, other accrued liabilities and net deferred tax liabilities. | ||||||||
The following table summarizes the allocation of the purchase consideration for these acquisitions (in thousands): | ||||||||
Asset | Valuation | |||||||
Accounts Receivable | $ | 23,034 | ||||||
Property and Equipment | 2,536 | |||||||
Other Assets | 2,617 | |||||||
Deferred Tax Asset | 2,058 | |||||||
Software | 3,016 | |||||||
Content | 2,460 | |||||||
Trade Names | 16,626 | |||||||
Customer Relationships | 18,498 | |||||||
Advertiser Relationships | 11,770 | |||||||
Goodwill | 31,420 | |||||||
Total | $ | 114,035 | ||||||
The initial accounting for these acquisitions is incomplete and subject to change, which may be significant. j2 Global has recorded provisional amounts for certain property and equipment, intangible assets (including trade names and software), preliminary working capital and related tax items. During the second quarter 2013, the Company recorded an adjustment to initial working capital related to the acquisition of IGN, which increased acquired accounts receivable and reduced assumed liabilities with a corresponding reduction to goodwill in the amount of $3.8 million. During the third quarter of 2013, the Company recorded an additional adjustment to initial working capital related to the acquisition of IGN, which decreased acquired accounts receivable and increased assumed liabilities with a corresponding increase to goodwill in the amount of $1.8 million. Also during the third quarter of 2013, the Company recorded an adjustment to initial working capital related to the acquisition of Ziff Davis, Inc., which increased assumed liabilities with a corresponding increase to goodwill in the amount of $1.7 million. Actual amounts recorded upon finalization of the purchase accounting may differ materially from the information presented in this Quarterly Report on Form 10-Q. | ||||||||
Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired and represents intangible assets that do not qualify for separate recognition. Goodwill recognized associated with these acquisitions during the nine months ended September 30, 2013 is $31.4 million, of which $15.7 million is expected to be deductible for income tax purposes. | ||||||||
Pro Forma Financial Information for 2013 Acquisitions | ||||||||
The following unaudited pro forma supplemental information is based on estimates and assumptions, which j2 Global believes are reasonable. However, this information is not necessarily indicative of the Company's consolidated financial position or results of income in future periods or the results that actually would have been realized had j2 Global and the acquired businesses been combined companies during the periods presented. These pro forma results exclude any savings or synergies that would have resulted from these business acquisitions had they occurred on January 1, 2012 and do not take into consideration the exiting of any acquired lines of business. This unaudited pro forma supplemental information includes incremental intangible asset amortization and other charges as a result of the acquisitions, net of the related tax effects. | ||||||||
The supplemental information on an unaudited pro forma financial basis presents the combined results of j2 Global and its 2013 acquisitions as if each acquisition had occurred on January 1, 2012 (in thousands, except per share amounts): | ||||||||
Nine Months Ended September 30, 2013 | Nine Months Ended September 30, 2012 | |||||||
(unaudited) | (unaudited) | |||||||
Revenues | $ | 398,953 | $ | 357,571 | ||||
Net Income | $ | 86,442 | $ | 91,925 | ||||
EPS - Basic | $ | 1.87 | $ | 2.02 | ||||
EPS - Diluted | $ | 1.84 | $ | 2 | ||||
Investments
Investments | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Investments [Abstract] | ' | |||||||||||||||
Investments | ' | |||||||||||||||
Investments | ||||||||||||||||
Short-term investments consist generally of corporate and governmental debt securities and certificates of deposits which are stated at fair market value. Realized gains and losses of short and long-term investments are recorded using the specific identification method. | ||||||||||||||||
The following table summarizes j2 Global’s debt securities designated as available-for-sale, classified by the contractual maturity date of the security (in thousands): | ||||||||||||||||
September 30, | December 31, 2012 | |||||||||||||||
2013 | ||||||||||||||||
Due within 1 year | $ | 55,668 | $ | 46,681 | ||||||||||||
Due within more than 1 year but less than 5 years | 64,392 | 17,209 | ||||||||||||||
Due within more than 5 years but less than 10 years | — | — | ||||||||||||||
Due 10 years or after | 2,507 | 2,633 | ||||||||||||||
Total | $ | 122,567 | $ | 66,523 | ||||||||||||
The following table summarizes the Company’s investments designated as trading and available-for-sale (in thousands): | ||||||||||||||||
September 30, | December 31, 2012 | |||||||||||||||
2013 | ||||||||||||||||
Trading | $ | 14 | $ | 3 | ||||||||||||
Available-for-sale | 160,666 | 90,017 | ||||||||||||||
Total | $ | 160,680 | $ | 90,020 | ||||||||||||
The following table summarizes the gross unrealized gains and losses and fair values for the Company's available-for-sale investments as of September 30, 2013 and December 31, 2012 aggregated by major security type (in thousands): | ||||||||||||||||
Amortized | Gross | Gross | Fair | |||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||
Gains | Losses | |||||||||||||||
September 30, 2013 | ||||||||||||||||
Debt Securities | $ | 122,551 | $ | 130 | $ | (114 | ) | $ | 122,567 | |||||||
Equity Securities | 20,610 | 17,489 | — | 38,099 | ||||||||||||
Total | $ | 143,161 | $ | 17,619 | $ | (114 | ) | $ | 160,666 | |||||||
December 31, 2012 | ||||||||||||||||
Debt Securities | $ | 66,541 | $ | 149 | $ | (167 | ) | $ | 66,523 | |||||||
Equity Securities | 20,610 | 3,251 | (367 | ) | 23,494 | |||||||||||
Total | $ | 87,151 | $ | 3,400 | $ | (534 | ) | $ | 90,017 | |||||||
At September 30, 2013, corporate and governmental debt securities, which have a fixed interest rate, were recorded as available-for-sale. There have been no significant changes in the maturity dates and average interest rates for the Company’s investment portfolio and debt obligations subsequent to September 30, 2013. At September 30, 2013, equity securities were recorded as available-for-sale and represent a strategic equity investment. At September 30, 2013, the Company’s available-for-sale securities are carried at fair value, with the unrealized gains and losses reported as a component of stockholders’ equity. Short-term investments include restricted balances that the Company may not liquidate until maturity, generally within 12 months. Restricted balances included in short-term investments were $8.2 million at September 30, 2013. | ||||||||||||||||
Investments in an unrealized loss position as of September 30, 2013 and December 31, 2012 but in a continuous unrealized loss position for less than 12 months had a fair value of $59.4 million and $31.8 million, respectively. Investments in a continuous unrealized loss position for 12 months and longer as of September 30, 2013 and December 31, 2012 had a fair value of $1.3 million and $2.2 million, respectively, of which loss positions are determined to be temporary in nature. | ||||||||||||||||
Recognition and Measurement of Other-Than-Temporary Impairment | ||||||||||||||||
j2 Global regularly reviews and evaluates each investment that has an unrealized loss. An unrealized loss exists when the current fair value of an individual security is less than its amortized cost basis. Unrealized losses that are determined to be temporary in nature are recorded, net of tax, in accumulated other comprehensive income for available-for-sale securities. | ||||||||||||||||
Regardless of the classification of the securities, the Company has assessed each position for impairment. | ||||||||||||||||
Factors considered in determining whether a loss is temporary include: | ||||||||||||||||
• | the length of time and the extent to which fair value has been below cost; | |||||||||||||||
• | the severity of the impairment; | |||||||||||||||
• | the cause of the impairment and the financial condition and near-term prospects of the issuer; | |||||||||||||||
• | activity in the market of the issuer which may indicate adverse credit conditions; and | |||||||||||||||
• | the Company’s ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery. | |||||||||||||||
j2 Global’s review for impairment generally entails: | ||||||||||||||||
• | identification and evaluation of investments that have indications of possible impairment; | |||||||||||||||
• | analysis of individual investments that have fair values less than amortized cost, including consideration of the length of time the investment has been in an unrealized loss position and the expected recovery period; | |||||||||||||||
• | discussion of evidential matter, including an evaluation of factors or triggers that could cause individual investments to qualify as having an other-than-temporary impairment and those that would not support an other-than-temporary impairment; | |||||||||||||||
• | documentation of the results of these analyses, as required under business policies; and | |||||||||||||||
• | information provided by third-party valuation experts. | |||||||||||||||
For these securities, a critical component of the evaluation for other-than-temporary impairments is the identification of credit impairment, where management does not expect to receive cash flows sufficient to recover the entire amortized cost basis of the security. Credit impairment is assessed using a combination of a discounted cash flow model that estimates the cash flows on the underlying securities and a market comparables method, where the security is valued based upon indications from the secondary market of what discounts buyers demand when purchasing similar securities. The cash flow model incorporates actual cash flows from the securities through the current period and then projects the remaining cash flows using relevant interest rate curves over the remaining term. These cash flows are discounted using a number of assumptions, some of which include prevailing implied credit risk premiums, incremental credit spreads and illiquidity risk premiums, among others. | ||||||||||||||||
Securities that have been identified as other-than-temporarily impaired are written down to their current fair value. For debt securities that are intended to be sold or that management believes it more-likely-than-not that will be required to sell prior to recovery, the full impairment is recognized immediately in earnings. | ||||||||||||||||
For available-for-sale securities that management has no intent to sell and believes that it more-likely-than-not will not be required to sell prior to recovery, only the credit loss component of the impairment is recognized in earnings, while the rest of the fair value impairment is recognized in other comprehensive income. The credit loss component recognized in earnings is identified as the amount of principal cash flows not expected to be received over the remaining term of the security. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Disclosures [Text Block] | ' | |||||||||||||||
Fair Value Measurements | ||||||||||||||||
j2 Global complies with the provisions of ASC 820, which defines fair value, provides a framework for measuring fair value and expands the disclosures required for fair value measurements of financial and non-financial assets and liabilities. ASC 820 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, ASC 820 establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: | ||||||||||||||||
l | Level 1 – Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. | |||||||||||||||
l | Level 2 – Include other inputs that are directly or indirectly observable in the marketplace. | |||||||||||||||
l | Level 3 – Unobservable inputs which are supported by little or no market activity. | |||||||||||||||
The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. | ||||||||||||||||
The Company measures its cash equivalents and investments at fair value. j2 Global’s cash equivalents, short-term investments and other debt securities are primarily classified within Level 1. Cash equivalents and marketable securities are valued primarily using quoted market prices utilizing market observable inputs. The fair value of the senior unsecured notes (See Note 7 - Long-Term Debt) was determined using the quoted market prices of debt instruments with similar terms, credit rating and maturities, which are considered Level 2 inputs. The total carrying value of long-term debt was $245.5 million and $245.2 million, and the corresponding fair value was approximately $274.0 million and $275.5 million, at September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||
The following tables present the fair values of the Company’s financial instruments that are measured at fair value on a recurring basis (in thousands): | ||||||||||||||||
September 30, 2013 | Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||
Cash equivalents: | ||||||||||||||||
Money market and other funds | $ | 94,278 | $ | — | $ | — | $ | 94,278 | ||||||||
Time deposits | 22,463 | — | — | 22,463 | ||||||||||||
Corporate commercial papers | 6,998 | — | — | 6,998 | ||||||||||||
Certificates of deposit | 14,263 | — | — | 14,263 | ||||||||||||
Equity securities | 38,113 | — | — | 38,113 | ||||||||||||
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 30,359 | — | — | 30,359 | ||||||||||||
Debt securities issued by states of the U.S. and political subdivisions of the states | 4,321 | — | — | 4,321 | ||||||||||||
Debt securities issued by foreign governments | 1,998 | — | — | 1,998 | ||||||||||||
Corporate debt securities | 85,889 | — | — | 85,889 | ||||||||||||
Total | $ | 298,682 | $ | — | $ | — | $ | 298,682 | ||||||||
December 31, 2012 | Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||
Cash equivalents: | ||||||||||||||||
Money market and other funds | $ | 99,351 | $ | — | $ | — | $ | 99,351 | ||||||||
Time deposits | 22,093 | — | — | 22,093 | ||||||||||||
Corporate commercial papers | — | — | — | — | ||||||||||||
Certificates of deposit | 34,876 | — | — | 34,876 | ||||||||||||
Equity securities | 23,497 | — | — | 23,497 | ||||||||||||
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 6,450 | — | — | 6,450 | ||||||||||||
Debt securities issued by states of the U.S. and political subdivisions of the states | 11,658 | — | — | 11,658 | ||||||||||||
Debt securities issued by foreign governments | 3,589 | — | — | 3,589 | ||||||||||||
Corporate debt securities | 44,826 | — | — | 44,826 | ||||||||||||
Total | $ | 246,340 | $ | — | $ | — | $ | 246,340 | ||||||||
Losses associated with other-than-temporary impairments are recorded as a component of other income (expenses). Gains and losses not associated with other-than-temporary impairments are recorded as a component of other comprehensive income. |
Goodwill_And_Intangible_Assets
Goodwill And Intangible Assets | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||
Goodwill And Intangible Assets | ' | |||||||||||||
Goodwill and Intangible Assets | ||||||||||||||
Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in a business combination. Intangible assets resulting from the acquisitions of entities accounted for using the purchase method of accounting are recorded at the estimated fair value of the assets acquired. Identifiable intangible assets are comprised of purchased customer relationships, trademarks and trade names, developed technologies and other intangible assets. The fair values of these identified intangible assets are based upon expected future cash flows or income, which take into consideration certain assumptions such as customer turnover, trade names and patent lives. These determinations are primarily based upon the Company’s historical experience and expected benefit of each intangible asset. If it is determined that such assumptions are not accurate, then the resulting change will impact the fair value of the intangible asset. Identifiable intangible assets are amortized over the period of estimated economic benefit, which ranges from one to 20 years. | ||||||||||||||
The changes in carrying amounts of goodwill for the nine months ended September 30, 2013 are as follows (in thousands): | ||||||||||||||
Balance as of January 1, 2013 | $ | 407,825 | ||||||||||||
Goodwill acquired (Note 3) | 31,420 | |||||||||||||
Purchase accounting adjustments | 2,329 | |||||||||||||
Foreign exchange translation | 113 | |||||||||||||
Balance as of September 30, 2013 | $ | 441,687 | ||||||||||||
The Company's goodwill balance was $441.7 million as of September 30, 2013, of which $309.8 million and $131.9 million were recorded in the Business Cloud Services and Digital Media segment, respectively. Purchase accounting adjustments relate to adjustments to goodwill in connection with prior year business acquisitions. | ||||||||||||||
Intangible assets are summarized as of September 30, 2013 and December 31, 2012 as follows (in thousands): | ||||||||||||||
Intangible Assets with Indefinite Lives: | ||||||||||||||
September 30, | December 31, | |||||||||||||
2013 | 2012 | |||||||||||||
Trade name | $ | 27,379 | $ | 27,379 | ||||||||||
Other | 5,432 | 5,433 | ||||||||||||
Total | $ | 32,811 | $ | 32,812 | ||||||||||
Intangible Assets Subject to Amortization: | ||||||||||||||
As of September 30, 2013, intangible assets subject to amortization relate primarily to the following (in thousands): | ||||||||||||||
Weighted-Average | Historical | Accumulated | Net | |||||||||||
Amortization | Cost | Amortization | ||||||||||||
Period | ||||||||||||||
Tradenames | 17.1 years | $ | 66,852 | $ | (9,812 | ) | $ | 57,040 | ||||||
Patent and patent licenses | 7.8 years | 47,173 | (28,470 | ) | 18,703 | |||||||||
Customer relationships | 7.1 years | 117,231 | (33,208 | ) | 84,023 | |||||||||
Other purchased intangibles | 4.0 years | 16,094 | (11,860 | ) | 4,234 | |||||||||
Total | $ | 247,350 | $ | (83,350 | ) | $ | 164,000 | |||||||
As of December 31, 2012, intangible assets subject to amortization relate primarily to the following (in thousands): | ||||||||||||||
Weighted-Average | Historical | Accumulated | Net | |||||||||||
Amortization | Cost | Amortization | ||||||||||||
Period | ||||||||||||||
Tradenames | 17.7 years | $ | 50,257 | $ | (6,227 | ) | $ | 44,030 | ||||||
Patent and patent licenses | 8.2 years | 44,048 | (24,719 | ) | 19,329 | |||||||||
Customer relationships | 7.0 years | 86,473 | (21,750 | ) | 64,723 | |||||||||
Other purchased intangibles | 4.4 years | 13,322 | (8,900 | ) | 4,422 | |||||||||
Total | $ | 194,100 | $ | (61,596 | ) | $ | 132,504 | |||||||
Amortization expense, included in general and administrative expense, approximated $7.5 million and $3.9 million for the three month periods ended September 30, 2013 and 2012, respectively, and $21.6 million and $11.0 million for the nine month periods ended September 30, 2013 and 2012, respectively. Amortization expense is estimated to approximate $30.0 million, $26.2 million, $24.0 million, $22.1 million and $19.7 million for fiscal years 2013 through 2017 respectively, and $63.6 million thereafter through the duration of the amortization period. |
Long_Term_Debt
Long Term Debt | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Long-term Debt, Unclassified [Abstract] | ' | |||
Debt Disclosure [Text Block] | ' | |||
Long-Term Debt | ||||
On July 26, 2012, j2 Global issued in a private offering exempt from the registration requirements of the Securities Act of 1933, as amended, $250 million aggregate principal amount of 8.0% senior unsecured notes (the “Notes”) due August 1, 2020. j2 Global received proceeds of $245 million in cash, net of initial purchaser's discounts and commissions of $5 million. As of September 30, 2013, the unamortized discount on long-term debt was approximately $4.5 million. Other fees of approximately $1.3 million were incurred in connection with the issuance of the Notes and recorded in long-term other assets. The net proceeds were available for general corporate purposes, including acquisitions. Interest is payable semi-annually on February 1 and August 1 of each year beginning on February 1, 2013. j2 Global has the option to call the Notes in whole or in part after August 1, 2016, subject to certain premiums as defined in the indenture governing the Notes plus accrued and unpaid interest. In addition, at any time before August 1, 2016, j2 Global may redeem the Notes, in whole or in part, at a "make-whole" redemption price specified in the indenture plus accrued and unpaid interest, if any, to (but not including) the redemption date. Also, j2 Global may redeem up to 35% of the aggregate principal amount of the Notes using proceeds from certain public offerings of our equity securities at a price equal to 108% of the principal amount plus accrued and unpaid interest, if any, prior to August 1, 2015. Upon a change in control, the holders may put the Notes at 101% of the principal amount of the Notes plus accrued and unpaid interest, if any, to the repurchase date. The Notes are not guaranteed by any of the j2 Global's subsidiaries as of September 30, 2013, because, as of such date, all of j2 Global's existing domestic restricted subsidiaries are deemed insignificant subsidiaries (as that term is defined in the indenture). If j2 Global or any of its restricted subsidiaries acquires or creates a domestic restricted subsidiary, other than an insignificant subsidiary, after the issue date, or any insignificant subsidiary ceases to fit within the definition of insignificant subsidiary, such restricted subsidiary is required to unconditionally guarantee, jointly and severally, on an unsecured basis, j2 Global's obligations under the Notes. | ||||
The indenture to the Notes contains certain restrictive and other covenants applicable to j2 Global and subsidiaries designated as restricted subsidiaries, including but not limited to limitations on debt and disqualified or preferred stock, restricted payments, liens, sale and leaseback transactions, dividends and other payment restrictions, asset sales and transactions with affiliates. As of September 30, 2013, j2 Global was in compliance with all such covenants. Violation of these covenants could result in a default which could result in the acceleration of outstanding amounts if such default is not cured or waived within the time periods outlined in the indenture agreement. | ||||
The amount recorded in long-term debt in the consolidated balance sheet for the Notes is equal to the aggregate principal amount of the Notes, net of initial purchaser's discounts. The estimated fair value of the Notes was $274.0 million as of September 30, 2013 and was based on the quoted market prices of debt instruments with similar terms, credit rating and maturities of the Notes as of September 30, 2013. | ||||
Cash paid for interest for the nine months ended September 30, 2013 was $20.3 million. | ||||
Long-term debt as of September 30, 2013 consists of the following (in thousands): | ||||
Notes | $ | 245,548 | ||
Total long-term debt | 245,548 | |||
Less: Current portion | — | |||
Total long-term debt, less current portion | $ | 245,548 | ||
Commitments_And_Contingencies
Commitments And Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments And Contingencies | ' |
Commitments and Contingencies | |
Litigation | |
From time-to-time, j2 Global is involved in litigation and other disputes or regulatory inquiries that arise in the ordinary course of its business. Many of these actions involve or are filed in response to patent actions filed by j2 Global against others. The number and significance of these disputes and inquiries has increased as our business has expanded and j2 Global has grown. Any claims or regulatory actions against j2 Global, whether meritorious or not, could be time-consuming, result in costly litigation, require significant management time and result in diversion of significant operational resources. | |
As part of the Company’s continuing effort to prevent the unauthorized use of its intellectual property, j2 Global has brought claims against several companies for infringing its patents relating to online fax, voice and other messaging technologies, including, among others, Nextiva, Inc. (“Nextiva”), Vitelity Communications, Inc. (“Vitelity”), EC Data Systems, Inc. (“EC Data”) and Integrated Global Concepts, Inc. (“IGC”). | |
On August 5, 2011, j2 Global and one of its affiliates filed suit in the United States District Court for the Central District of California (the “Central District of California”) against Nextiva, alleging infringement of U.S. Patents Nos. 6,208,638 (the “‘638 Patent”), 6,350,066 (the “‘066 Patent”) and 7,020,132 (the “’132 Patent”). On July 23, 2013, j2 Global filed an amended complaint, adding a claim for infringement of U.S. Patent No. 6,020,980 (the “‘980 Patent”). On September 23, 2013, Nextiva filed an amended answer and counterclaims for non-infringement and invalidity of the ‘638, ‘066, ‘132 and ‘980 Patents and for unfair competition in violation of California’s Business & Professions Code § 17200, et. seq. and prohibited restraints on competition and unfair practices in violation of California’s Business & Professions Code §§ 16720, et. seq. and 17000, et. seq. On October 15, 2013, j2 Global and its affiliate moved to dismiss Nextiva’s counterclaims for unenforceability of the ‘980 Patent and for unfair competition, prohibited restraints on competition and unfair practices. j2 Global also moved to strike from Nextiva’s amended answer certain affirmative defenses related to the alleged unenforceability of the patents at issue. Discovery is ongoing. | |
On September 23, 2011, j2 Global and one of its affiliates filed suit against Vitelity in the Central District of California, alleging infringement of the ‘638 and ‘066 Patents. On June 15, 2012, Vitelity filed counterclaims for invalidity and non-infringement of the ‘638 and ‘066 Patents. On September 13, 2013, the Court entered its Claim Construction Order. Discovery is ongoing. | |
On February 21, 2012, EC Data filed a complaint against j2 Global and one of its affiliates in the United District Court for the District of Colorado, seeking declaratory judgment of non-infringement of the ‘638 and ‘066 Patents. On April 9, 2012, j2 Global filed an answer to the complaint and counterclaims asserting that EC Data infringes these and other patents. On May 14, 2012, EC Data filed an answer to j2 Global’s counterclaims and asserted counterclaims for declaratory judgments of non-infringement and invalidity of the ‘132 Patent and non-infringement of U.S. Patent No. 6,597,688 (the “‘688 Patent”). On August 29, 2012, the Court granted j2 Global’s motion to transfer the case to the Central District of California. On May 31, 2012, EC Data submitted a request to the United States Patent and Trademark Office (“USPTO”) to submit the ‘132 Patent into inter-partes reexamination proceedings. On August 22, 2012, the USPTO granted EC Data’s reexamination request and issued a non-final office action rejecting certain of the ‘132 Patent’s claims. On April 25, 2013, the USPTO issued an Action Closing Prosecution and on July 26, 2013 a second Action Closing Prosecution. On September 13, 2013, the Court entered its Claim Construction Order. Discovery is ongoing. | |
On June 28, 2013, j2 Global filed suit against EC Data in the Central District of California, alleging infringement of the ‘980 Patent. On October 4, 2013, EC Data filed its amended answer and counterclaims for non-infringement and invalidity of the ‘980 Patent. | |
On October 16, 2013, one of j2 Global’s affiliates entered its appearance as a plaintiff in a multi-district litigation proceeding entitled In re: Unified Messaging Solutions LLC and Advanced Messaging Technologies, Inc. Patent Litigation (N.D. Ill. Master Docket No. 12 C 6286). In that litigation, a company with certain rights to assert patents owned by the j2 Global affiliate has asserted those patents against a number of defendants, and those defendants have filed counterclaims for, inter alia, non-infringement, unenforceability, and invalidity of U.S. Patent Nos. 6,857,074; 7,836,141; 7,895,306; 7,895,313; and 7,934,148. | |
On August 28, 2013, Phyllis A. Huster (“Huster”) filed suit in the United States District Court for the Northern District of Illinois against Unified Messaging Solutions, LLC, Acacia Patent Acquisition LLC (“Acacia”), Charles R. Bobo, II (“Bobo”), j2 Global, and one of j2 Global’s affiliates for correction of inventorship of the ‘066 Patent and U.S. Patents Nos. 5,675,507; 5,870,549; 6,564,321; 6,857,074; 7,895,306; 7,836,141; 7,895,313 and 7,934,148. Huster seeks a declaration that she was the inventor of the patents at issue, an order directing the USPTO to substitute or add Huster as inventor of the patents at issue, an order that the defendants pay to Huster at least half of all earnings from licensing and sales of rights in the patents at issue, and costs and attorneys’ fees. On October 28, 2013, j2 Global, the j2 Global affiliate, and the other defendants in the case filed a motion to dismiss Huster’s action on the basis of improper venue and on the basis that Huster’s action is barred by laches. The defendants also filed a motion to strike certain portions of Huster’s prayer for relief. On the same day, j2 Global filed a motion to dismiss on the basis that it is not a proper party to Huster’s action; Bobo filed a motion to dismiss for lack of personal jurisdiction; and Acacia filed a motion to dismiss on the basis of lack of subject matter jurisdiction. | |
On September 15, 2006, one of j2 Global’s affiliates filed a patent infringement suit against IGC in the United States District Court for the Northern District of Georgia (the “Northern District of Georgia”). On May 13, 2008, IGC filed counterclaims alleging violations of Section 2 of the Sherman Act and breach of contract. IGC is seeking damages, including treble and punitive damages, an injunction against further violations, divestiture of certain assets, and attorneys’ fees and costs. On February 18, 2009, the Court granted the j2 Global affiliate’s motion to stay the case pending the conclusion of the j2 Global affiliate’s appeal of a summary judgment ruling of non-infringement in another case involving the same patents and issues as this action. On January 22, 2010, the United States Court of Appeals for the Federal Circuit affirmed the non-infringement ruling in the other case and on June 7, 2010 the Court lifted the stay. On September 2, 2011, the Northern District of Georgia Court granted the j2 Global affiliate’s motion to dismiss IGC’s breach of contract counterclaim and one portion of IGC’s antitrust counterclaim. On October 21, 2011, IGC filed a motion to strike certain of the affirmative defenses asserted by the j2 Global affiliate, which the Northern District of Georgia Court granted in part on July 26, 2012, striking certain of the affirmative defenses at issue. Following additional discovery, on June 20, 2012, the j2 Global affiliate filed a motion to dismiss its infringement claims and IGC's counterclaims for declaratory relief. On July 27, 2012, the Northern District of Georgia Court granted the j2 Global affiliate’s motion to dismiss, dismissing the j2 Global affiliate’s infringement claims and IGC’s related counterclaims. Discovery is ongoing. | |
On July 2, 2012, IGC filed suit against j2 Global and one of its affiliates in the United States District Court for the Northern District of California (“Northern District of California”), alleging that j2 Global - through filing suit in the Central District of California - breached a contract not to sue IGC. IGC seeks monetary damages, attorneys' fees, fees and costs, injunctive relief and specific performance of the alleged covenant not to sue IGC. On August 24, 2012, j2 Global filed a motion to dismiss or alternatively to transfer the case to the Central District of California. The motion was heard on October 26, 2012; the Court denied the motion on March 29, 2013. On April 12, 2013, j2 Global filed its answer and asserted counterclaims for infringement of the ‘638, ‘066, ‘688, and ‘132 Patents. On May 3, 2013, IGC asserted counterclaims seeking declaratory judgments of invalidity, unenforceability and non-infringement of the ‘638, ‘066, ‘688, and ‘132 Patents, implied license and exhaustion, punitive damages, attorneys’ fees and costs. On June 28, 2013, the Court granted in part and denied in part j2 Global’s motion to dismiss certain of IGC’s counterclaims, dismissing the claims for declaratory judgment of exhaustion and punitive damages. Discovery is underway, and the Court has set a trial date of April 21, 2014 on the issue of interpretation of the contract that IGC alleges j2 Global breached. | |
On June 27, 2013, j2 Global filed suit against IGC in the Northern District of California, alleging infringement of the ‘980 Patent. On August 29, 2013, IGC filed counterclaims for invalidity, unenforceability, non-infringement, an implied license of the ‘980 Patent and breach and specific enforcement of the contract not to sue IGC. On September 26, 2013, j2 moved to dismiss IGC’s counterclaims for unenforceability and an implied license of the ‘980 Patent and for breach and specific performance of the contract not to sue. That motion remains pending. On October 18, 2013, the Court consolidated IGC’s breach of contract claim with the other case pending in the Northern District of California and stayed j2 Global's patent infringement claims pending a resolution of the breach of contract claims. | |
On February 17, 2011, Emmanuel Pantelakis (“Pantelakis”) filed suit against j2 Global Canada, Inc., carrying on business as Protus IP Solutions (“Protus”), in the Ontario Superior Court of Justice, alleging that Protus breached a contract with Pantelakis in connection with Protus’s e-mail marketing services. Pantelakis is seeking damages, attorneys’ fees, interest, and costs. Protus filed a responsive pleading on March 23, 2011. On July 16, 2012, Protus filed its responses to undertakings. On July 24, 2012, Pantelakis moved for an order granting him leave to file a second amended statement of claim re-framing his lawsuit as a negligence action. On September 27, 2012, the Court granted in part Pantelakis’s motion, permitting him to plead claims for negligence and breach of contract, but limited the scope of discovery, awarded j2 Global its costs associated with its amended statement of defence and reserved a further award of costs for the trial court. On November 6, 2012, Pantelakis filed his second amended statement of claim. j2 Global filed its amended statement of defence on April 8, 2013. The parties filed their pre-trial briefs on October 15, 2013. A pre-trial was held on October 23, 2013, at which time the Court allowed additional discovery and set a new time table. | |
j2 Global does not believe, based on current knowledge, that the foregoing legal proceedings or claims, including those where an unfavorable outcome is reasonably possible, after giving effect to existing reserves, are likely to have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. However, depending on the amount and the timing, an unfavorable resolution of some or all of these matters could materially affect j2 Global’s consolidated financial position, results of operations or cash flows in a particular period. The Company has not accrued for a loss contingency relating to certain of these legal proceedings because unfavorable outcomes are not considered by management to be probable or the amount of any losses reasonably estimable. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
The Company’s tax provision for interim periods is determined using an estimate of the Company’s annual effective tax rate. Each quarter the Company updates its estimated annual effective tax rate and, if the estimate changes, makes a cumulative adjustment. j2 Global’s annual effective tax rate is normally lower than the 35% U.S. federal statutory rate and applicable apportioned state tax rates primarily due to anticipated earnings of the Company’s subsidiaries outside of the U.S. in jurisdictions where the Company’s effective tax rate is lower than in the U.S. For the quarter ended September 30, 2013, the effective tax rate was 20.5%. j2 Global does not provide for U.S. income taxes on the undistributed earnings of the Company’s foreign operations because the Company intends to reinvest such earnings in foreign jurisdictions. Income before income taxes included income from domestic operations of $56.0 million and $38.5 million for the nine months ended September 30, 2013 and 2012, respectively, and income from foreign operations of $54.8 million and $78.7 million for the nine months ended September 30, 2013 and 2012, respectively. | |
As of September 30, 2013 and December 31, 2012, the Company had $41.5 million and $37.7 million, respectively, in liabilities for uncertain income tax positions. Accrued interest and penalties related to unrecognized tax benefits are recognized in income tax expense on the Company’s consolidated statement of income. | |
Cash paid for income taxes net of refunds received was $23.4 million for the nine months ended September 30, 2013. | |
Certain taxes are prepaid during the year and included within prepaid expenses and other current assets on the consolidated balance sheet. The Company’s prepaid taxes were $14.1 million and $9.0 million at September 30, 2013 and December 31, 2012, respectively. | |
j2 Global is currently under income tax audit by the California Franchise Tax Board (“FTB”) for tax years 2005 through 2007, and during the second quarter of 2013 received notice that the FTB will also be auditing it for tax years 2009 through 2011. The FTB has also issued Information Document Requests regarding the 2008 tax year, although the Company has not received a formal notice of audit for that year. The Company is also currently under income tax audit by the U.S. Internal Revenue Service ("IRS") for tax years 2009 and 2010, and during the second quarter of 2013 received notice that the IRS will be auditing it for tax year 2011 as well. In addition, the Company is under income tax audit by the Canada Revenue Agency (“CRA”) for tax years 2010 through 2011. During the third quarter of 2013, the Company was notified by the CRA that the income tax audit for tax years 2008 and 2009 had concluded with no changes and that tax year 2011 would be subject to income tax audit. The Company is also under CRA audit for Goods and Services Tax for tax years 2009 through 2011. It is possible that some or all of these audits may conclude in the next 12 months and that the unrecognized tax benefits the Company has recorded in relation to these tax years may change compared to the liabilities recorded for these periods. However, it is not currently possible to estimate the amount, if any, of such change. | |
j2 Global is also under audit by various state and local governments for non-income related taxes. |
Stockholders_Equity
Stockholders' Equity | 9 Months Ended | |||||
Sep. 30, 2013 | ||||||
Stockholders' Equity Note [Abstract] | ' | |||||
Stockholders' Equity | ' | |||||
Stockholders’ Equity | ||||||
Non-Controlling Interest | ||||||
Non-controlling interests represent equity interests in consolidated subsidiaries that are not attributable, either directly or indirectly, to j2 Global (i.e., minority interests). Non-controlling interests include the minority equity holders' proportionate share of the equity of Ziff Davis, Inc. ("Ziff Davis") and its subsidiaries. | ||||||
Ownership interests in subsidiaries held by parties other than the Company are presented as non-controlling interests within stockholders' equity, separately from the equity held by the Company, on the condensed consolidated balance sheet as of September 30, 2013. Revenues, expenses, net income and other comprehensive income are reported in the consolidated financial statements at the consolidated amounts, which includes amounts attributable to both the Company's interest and the non-controlling interests in Ziff Davis. Net income and other comprehensive income is then attributed to the Company's interest and the non-controlling interests. Net income (loss) to non-controlling interests is deducted from net income in the condensed consolidated statements of income to determine net income (loss) attributable to the Company's common stockholders. | ||||||
Common Stock Repurchase Program | ||||||
In February 2012, the Company’s Board of Directors approved a program authorizing the repurchase of up to five million shares of our common stock through February 20, 2013 (the "2012 Program") and on February 12, 2013 extended the 2012 Program through February 20, 2014. During the nine month period ended September 30, 2013, no shares were repurchased under this program. | ||||||
Periodically, participants in j2 Global’s stock plans surrender to the Company shares of j2 Global stock to pay the exercise price or to satisfy tax withholding obligations arising upon the exercise of stock options or the vesting of restricted stock. During the three month period ended September 30, 2013, the Company purchased 43,435 shares from plan participants for this purpose. | ||||||
Dividends | ||||||
The following is a summary of each dividend declared during fiscal year 2013: | ||||||
Declaration Date | Dividend per Common Share | Record Date | Payment Date | |||
February 12, 2013 | $ | 0.2325 | February 25, 2013 | March 4, 2013 | ||
May 7, 2013 | $ | 0.24 | May 20, 2013 | June 4, 2013 | ||
August 7, 2013 | $ | 0.2475 | August 19, 2013 | September 3, 2013 | ||
November 5, 2013 | $ | 0.255 | November 18, 2013 | December 4, 2013 | ||
Future dividends are subject to Board approval. |
Stock_Options_And_Employee_Sto
Stock Options And Employee Stock Purchase Plan | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Stock Options And Employee Stock Purchase Plan | ' | |||||||||||||||
Stock Options and Employee Stock Purchase Plan | ||||||||||||||||
j2 Global’s share-based compensation plans include the Second Amended and Restated 1997 Stock Option Plan (the “1997 Plan”), 2007 Stock Plan (the “2007 Plan”) and 2001 Employee Stock Purchase Plan (the “Purchase Plan”). Each plan is described below. | ||||||||||||||||
The 1997 Plan terminated in 2007. A total of 12,000,000 shares of common stock were authorized to be used for 1997 Plan purposes. An additional 840,000 shares were authorized for issuance upon exercise of options granted outside the 1997 Plan. As of September 30, 2013, 509,367 shares underlying options and zero shares of restricted stock were outstanding under the 1997 Plan, all of which continue to be governed by the 1997 Plan. | ||||||||||||||||
The 2007 Plan provides for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units and other share-based awards. 4,500,000 shares of common stock are authorized to be used for 2007 Plan purposes. Options under the 2007 Plan may be granted at exercise prices determined by the Board of Directors, provided that the exercise prices shall not be less than the fair market value of j2 Global’s common stock on the date of grant for incentive stock options and not less than 85% of the fair market value of j2 Global’s common stock on the date of grant for non-statutory stock options. As of September 30, 2013, 673,321 shares underlying options and 99,025 shares of restricted stock were outstanding under the 2007 Plan. | ||||||||||||||||
All stock option grants are approved by “outside directors” within the meaning of Internal Revenue Code Section 162(m). | ||||||||||||||||
Stock Options | ||||||||||||||||
The following table represents stock option activity for the nine months ended September 30, 2013: | ||||||||||||||||
Number of | Weighted- | Weighted-Average | Aggregate | |||||||||||||
Shares | Average | Remaining | Intrinsic | |||||||||||||
Exercise | Contractual | Value | ||||||||||||||
Price | Term (in years) | |||||||||||||||
Outstanding at January 1, 2013 | 1,765,461 | $ | 22.08 | |||||||||||||
Granted | — | — | ||||||||||||||
Exercised | (562,173 | ) | 24.04 | |||||||||||||
Canceled | (20,600 | ) | 21.79 | |||||||||||||
Outstanding at September 30, 2013 | 1,182,688 | 21.16 | 4.3 | $ | 33,542,013 | |||||||||||
Exercisable at September 30, 2013 | 836,229 | 20.25 | 3.3 | $ | 24,476,289 | |||||||||||
Vested and expected to vest at September 30, 2013 | 1,127,602 | $ | 20.94 | 4.1 | $ | 32,231,627 | ||||||||||
The per share weighted-average grant-date fair values of stock options granted during the nine months ended September 30, 2013 and 2012 were zero and $7.92, respectively. | ||||||||||||||||
The aggregate intrinsic values of options exercised during the nine months ended September 30, 2013 and 2012 were $11.6 million and $4.0 million, respectively. | ||||||||||||||||
As of September 30, 2013 and December 31, 2012, unrecognized stock compensation related to non-vested stock options granted under the 1997 Plan and the 2007 Plan approximated $2.6 million and $5.0 million, respectively. Unrecognized stock compensation expense related to non-vested stock options granted under these plans is expected to be recognized ratably over a weighted-average period of 1.7 years (i.e., the remaining requisite service period). | ||||||||||||||||
Fair Value Disclosure | ||||||||||||||||
j2 Global uses the Black-Scholes option pricing model to calculate the fair value of each option grant. The expected volatility for the nine months ended September 30, 2013 is based on historical volatility of the Company’s common stock. The Company estimates the expected term based upon the historical exercise behavior of our employees. The risk-free interest rate is based on U.S. Treasury zero-coupon issues with a term equal to the expected term of the option assumed at the date of grant. The Company uses an annualized dividend yield based upon the per share dividends declared by its Board of Directors. Estimated forfeiture rates were 15.72% and 14.68% as of September 30, 2013 and 2012, respectively. | ||||||||||||||||
The weighted-average fair values of stock options granted have been estimated utilizing the following assumptions, no stock options were granted during the nine month period ended September 30, 2013: | ||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||
2012 | ||||||||||||||||
Risk-free interest rate | 0.91% | |||||||||||||||
Expected term (in years) | 5.7 | |||||||||||||||
Dividend yield | 3.09% | |||||||||||||||
Expected volatility | 41% | |||||||||||||||
Weighted-average volatility | 41% | |||||||||||||||
Restricted Stock | ||||||||||||||||
j2 Global has awarded restricted stock and restricted stock units to its Board of Directors and senior staff pursuant to the 1997 Plan and the 2007 Plan. Compensation expense resulting from restricted stock and restricted unit grants is measured at fair value on the date of grant and is recognized as share-based compensation expense over the applicable vesting period. Beginning in fiscal year 2012 vesting periods are approximately one year for awards to members of the Company's Board of Directors and five years for senior staff. The Company recognized $1.8 million and $1.6 million of compensation expense for the three months ended September 30, 2013 and 2012, respectively, related to restricted stock and restricted stock units, and $5.0 million and $3.7 million for the nine month period ended September 30, 2013 and 2012, respectively. As of September 30, 2013 and December 31, 2012, the Company had unrecognized share-based compensation cost of approximately $18.5 million and $16.0 million, respectively, associated with these awards. This cost is expected to be recognized over a weighted-average period of 2.6 years for awards and 3.7 years for units. | ||||||||||||||||
Restricted stock award activity for the nine months ended September 30, 2013 is set forth below: | ||||||||||||||||
Shares | Weighted-Average | |||||||||||||||
Grant-Date | ||||||||||||||||
Fair Value | ||||||||||||||||
Nonvested at January 1, 2013 | 828,475 | $ | 23.08 | |||||||||||||
Granted | 178,430 | 38.4 | ||||||||||||||
Vested | (291,841 | ) | 21.33 | |||||||||||||
Canceled | (43,900 | ) | 24.46 | |||||||||||||
Nonvested at September 30, 2013 | 671,164 | $ | 27.82 | |||||||||||||
Restricted stock unit award activity for the nine months ended September 30, 2013 is set forth below: | ||||||||||||||||
Number of | Weighted-Average | Aggregate | ||||||||||||||
Shares | Remaining | Intrinsic | ||||||||||||||
Contractual | Value | |||||||||||||||
Term (in years) | ||||||||||||||||
Outstanding at January 1, 2013 | 115,466 | |||||||||||||||
Granted | 26,675 | |||||||||||||||
Vested | (10,116 | ) | ||||||||||||||
Canceled | (33,000 | ) | ||||||||||||||
Outstanding at September 30, 2013 | 99,025 | 2.3 | $ | 4,903,718 | ||||||||||||
Vested and expected to vest at September 30, 2013 | 67,640 | 2 | $ | 3,349,522 | ||||||||||||
Share-Based Compensation Expense | ||||||||||||||||
The following table represents share-based compensation expense included in cost of revenues and operating expenses in the accompanying condensed consolidated statements of income for the three and nine months ended September 30, 2013 and 2012 (in thousands): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Cost of revenues | $ | 162 | $ | 199 | $ | 581 | $ | 633 | ||||||||
Operating expenses: | ||||||||||||||||
Sales and marketing | 465 | 390 | 1,315 | 1,117 | ||||||||||||
Research, development and engineering | 103 | 111 | 311 | 344 | ||||||||||||
General and administrative | 1,695 | 1,703 | 4,901 | 4,757 | ||||||||||||
Total | $ | 2,425 | $ | 2,403 | $ | 7,108 | $ | 6,851 | ||||||||
Ziff Davis, Inc. Equity Incentive Plan | ||||||||||||||||
In November 2012, Ziff Davis established the Ziff Davis, Inc. 2012 Equity Incentive Plan (the "Ziff Davis Plan"), providing incentives to selected directors, officers, employees and consultants. The Ziff Davis Plan provides for the granting of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units and other share-based awards. The number of authorized shares of common stock that may be used for purposes of the Ziff Davis Plan is 15,000,000. In addition, certain stockholders have put rights under certain circumstances in which the stockholder may elect to cause Ziff Davis to purchase any or all of the shares of common stock (to the extent vested pursuant to the terms of the Ziff Davis Plan) and preferred stock owned by such stockholder. Ziff Davis also has the option to call under certain circumstances the common stock issued pursuant to the Ziff Davis Plan (to the extent vested pursuant to the terms of the Ziff Davis Plan) and shares of preferred stock. The put right held by the stockholder is exercisable only in cases where the Company unilaterally changes the terms of such stockholder's employment relationship or requires such stockholder to relocate his residence a specific distance. As each circumstance is completely within the Company's control, management determined that liability classification is not required. | ||||||||||||||||
Ziff Davis granted 13,035,000 shares of restricted stock during the year ended December 31, 2012 to its senior staff pursuant to the Ziff Davis Plan, which shares vest evenly over a 5 year period. No restricted stock awards were granted for the nine months ended September 30, 2013. | ||||||||||||||||
Employee Stock Purchase Plan | ||||||||||||||||
The Purchase Plan provides for the issuance of a maximum of two million shares of the Company's common stock. Under the Purchase Plan, eligible employees can have up to 15% of their earnings withheld, up to certain maximums, to be used to purchase shares of j2 Global’s common stock at certain plan-defined dates. The price of the common stock purchased under the Purchase Plan for the offering periods is equal to 95% of the fair market value of the common stock at the end of the offering period. For the nine months ended September 30, 2013 and 2012, 4,416 and 4,115 shares were purchased under the plan, respectively. Cash received upon the issuance of common stock under the Purchase Plan was $161,000 and $109,000 for the nine months ended September 30, 2013 and 2012, respectively. As of September 30, 2013, 1,641,185 shares were available under the Purchase Plan for future issuance. |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share Reconciliation [Abstract] | ' | |||||||||||||||
Earnings Per Share | ' | |||||||||||||||
Earnings Per Share | ||||||||||||||||
The components of basic and diluted earnings per share are as follows (in thousands, except share and per share data): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Numerator for basic and diluted net income per common share: | ||||||||||||||||
Net income attributable to j2 Global, Inc. common shareholders | $ | 27,806 | $ | 31,650 | $ | 86,768 | $ | 91,377 | ||||||||
Net income available to participating securities (a) | (416 | ) | (513 | ) | (1,455 | ) | (1,512 | ) | ||||||||
Net income available to j2 Global, Inc. common shareholders | $ | 27,390 | $ | 31,137 | $ | 85,313 | $ | 89,865 | ||||||||
Denominator: | ||||||||||||||||
Weighted-average outstanding shares of common stock | 45,729,171 | 45,002,565 | 45,441,265 | 45,590,160 | ||||||||||||
Dilutive effect of: | ||||||||||||||||
Dilutive effect of equity incentive plans | 562,460 | 337,546 | 625,339 | 307,229 | ||||||||||||
Common stock and common stock equivalents | 46,291,631 | 45,340,111 | 46,066,604 | 45,897,389 | ||||||||||||
Net income per share: | ||||||||||||||||
Basic | $ | 0.6 | $ | 0.69 | $ | 1.88 | $ | 1.97 | ||||||||
Diluted | $ | 0.59 | $ | 0.69 | $ | 1.85 | $ | 1.96 | ||||||||
(a) | Represents unvested share-based payment awards that contain certain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid). | |||||||||||||||
For the three and nine months ended September 30, 2013 and 2012, there were zero and 420,319 options outstanding, respectively, and zero and 536,559 options outstanding, respectively, which were excluded from the computation of diluted earnings per share because the exercise prices were greater than the average market price of the common shares. |
Geographic_Information
Geographic Information | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Segments, Geographical Areas [Abstract] | ' | |||||||||||||||
Geographic Information | ' | |||||||||||||||
Segment Information | ||||||||||||||||
The Company's business segments are based on the organization structure used by management for making operating and investment decisions and for assessing performance. j2 Global's reportable business segments are: (i) Business Cloud Services; and (ii) Digital Media. Segment accounting policies are the same as described in Note 1 - Basis of Presentation. | ||||||||||||||||
Information on reportable segments and reconciliation to consolidated income from operations is presented below (in thousands): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Revenues by segment: | ||||||||||||||||
Business Cloud Services | $ | 94,391 | $ | 93,246 | $ | 293,898 | $ | 269,363 | ||||||||
Digital Media | 33,522 | — | 89,207 | — | ||||||||||||
Elimination of inter-segment revenues | (125 | ) | — | (339 | ) | — | ||||||||||
Total revenues | 127,788 | 93,246 | 382,766 | 269,363 | ||||||||||||
Direct costs by segment(1): | ||||||||||||||||
Business Cloud Services | 48,504 | 44,379 | 143,075 | 129,063 | ||||||||||||
Digital Media | 32,652 | — | 92,845 | — | ||||||||||||
Direct costs by segment(1): | 81,156 | 44,379 | 235,920 | 129,063 | ||||||||||||
Business Cloud Services operating income | 45,886 | 48,866 | 150,823 | 140,300 | ||||||||||||
Digital Media operating income (loss) | 871 | — | (3,638 | ) | — | |||||||||||
Segment operating income | 46,757 | 48,866 | 147,185 | 140,300 | ||||||||||||
Global operating costs(2) | 7,449 | 6,589 | 22,283 | 20,386 | ||||||||||||
Income from operations | $ | 39,308 | $ | 42,277 | $ | 124,902 | $ | 119,914 | ||||||||
(1) Direct costs for each segment include cost of revenues and other operating expenses that are directly attributable to the segment such as employee compensation expense, local sales and marketing expenses, engineering and operations, depreciation and amortization and other administrative expenses. | ||||||||||||||||
(2) Global operating costs include general and administrative and other corporate expenses that are managed on a global basis and that are not directly attributable to any particular segment. | ||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||
Assets: | ||||||||||||||||
Business Cloud Services | $ | 896,847 | $ | 788,828 | ||||||||||||
Digital Media | 306,750 | 204,244 | ||||||||||||||
Total assets from reportable segments | 1,203,597 | 993,072 | ||||||||||||||
Corporate | 1,993 | 2,098 | ||||||||||||||
Elimination of inter-segment note receivable | (67,500 | ) | — | |||||||||||||
Total assets | $ | 1,138,090 | $ | 995,170 | ||||||||||||
Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Capital expenditures: | ||||||||||||||||
Business Cloud Services | $ | 5,573 | $ | 3,512 | ||||||||||||
Digital Media | 5,067 | — | ||||||||||||||
Total from reportable segments | 10,640 | 3,512 | ||||||||||||||
Corporate | 475 | 234 | ||||||||||||||
Total capital expenditures | $ | 11,115 | $ | 3,746 | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Depreciation and amortization: | ||||||||||||||||
Business Cloud Services | $ | 6,248 | $ | 5,245 | $ | 17,609 | $ | 15,179 | ||||||||
Digital Media | 3,767 | — | 10,335 | — | ||||||||||||
Total from reportable segments | 10,015 | 5,245 | 27,944 | 15,179 | ||||||||||||
Corporate | 168 | 133 | 480 | 376 | ||||||||||||
Total depreciation and amortization | $ | 10,183 | $ | 5,378 | $ | 28,424 | $ | 15,555 | ||||||||
j2 Global maintains operations in the U.S., Canada, Ireland, Japan and other countries. Geographic information about the U.S. and all other countries for the reporting periods is presented below. Such information attributes revenues based on jurisdictions where revenues are reported (in thousands). | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Revenues: | ||||||||||||||||
United States | $ | 90,447 | $ | 58,194 | $ | 270,444 | $ | 167,211 | ||||||||
Canada | 17,992 | 20,028 | 55,137 | 60,616 | ||||||||||||
Ireland | 10,417 | 10,124 | 30,822 | 30,908 | ||||||||||||
All other countries | 8,932 | 4,900 | 26,363 | 10,628 | ||||||||||||
$ | 127,788 | $ | 93,246 | $ | 382,766 | $ | 269,363 | |||||||||
September 30, | December 31, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Long-lived assets: | ||||||||||||||||
United States | $ | 146,039 | $ | 105,549 | ||||||||||||
All other countries | 48,104 | 46,554 | ||||||||||||||
Total | $ | 194,143 | $ | 152,103 | ||||||||||||
Unrestricted_Subsidiaries_Note
Unrestricted Subsidiaries (Notes) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Unrestricted Subsidiaires [Abstract] | ' | |||||||
Unrestricted Subsidiaries [Text Block] | ' | |||||||
Unrestricted Subsidiaries | ||||||||
In November 2012, the Company's Board of Directors designated Ziff Davis, Inc., a subsidiary of j2 Global, Inc., as an “Unrestricted Subsidiary” under the indenture governing j2 Global's Notes. In February 2013, Ziff Davis, Inc. acquired the shares of IGN Entertainment, Inc. and in May 2013, the shares of NetShelter (See Note 3 - Business Acquisitions). Each acquired company is included in the financial position and results of operations of Ziff Davis, Inc. since the respective date of acquisition and each also was designated by the Company's Board of Directors as an "Unrestricted Subsidiary" under the indenture governing j2 Global's Notes. The financial position and results of operations of Ziff Davis, Inc. are included in the Company's condensed consolidated financial statements. | ||||||||
As required by the indenture governing j2 Global's Notes, information sufficient to ascertain the financial condition and results of operations excluding the Unrestricted Subsidiaries must be presented. Accordingly, the Company is presenting the following tables. | ||||||||
The financial position of Ziff Davis, Inc. and its subsidiaries as of September 30, 2013 is as follows (in thousands): | ||||||||
September 30, 2013 | ||||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 14,910 | ||||||
Accounts receivable | 45,773 | |||||||
Prepaid expenses and other current assets | 4,599 | |||||||
Deferred income taxes | 3,197 | |||||||
Total current assets | 68,479 | |||||||
Property and equipment, net | 12,777 | |||||||
Trade names, net | 50,620 | |||||||
Customer relationships, net | 39,658 | |||||||
Goodwill | 131,877 | |||||||
Other purchased intangibles, net | 1,828 | |||||||
Deferred income taxes | — | |||||||
Other assets | 1,511 | |||||||
Total assets | $ | 306,750 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Accounts payable and accrued expenses | $ | 30,268 | ||||||
Income taxes payable | 1,578 | |||||||
Deferred revenue, current | 2,294 | |||||||
Total current liabilities | 34,140 | |||||||
Note payable | 67,500 | |||||||
Interest payable | 6,351 | |||||||
Deferred income taxes | 30,550 | |||||||
Other long-term liabilities | 16 | |||||||
Mandatorily redeemable financial instrument | 199,611 | |||||||
Total liabilities | 338,168 | |||||||
Commitments and contingencies | — | |||||||
Common stock | — | |||||||
Additional paid-in capital | (25,064 | ) | ||||||
Retained earnings | (6,325 | ) | ||||||
Accumulated other comprehensive income (loss) | (29 | ) | ||||||
Total stockholders’ equity | (31,418 | ) | ||||||
Total liabilities and stockholders’ equity | $ | 306,750 | ||||||
The results of operations of Ziff Davis, Inc. and its subsidiaries for the three and nine months ended September 30, 2013 is as follows (in thousands): | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
2013 | 2013 | |||||||
Revenues | $ | 33,522 | $ | 89,207 | ||||
Cost of revenues | 4,398 | 12,682 | ||||||
Gross profit | 29,124 | 76,525 | ||||||
Operating expenses: | ||||||||
Sales and marketing | 18,085 | 49,049 | ||||||
Research, development and engineering | 943 | 4,401 | ||||||
General and administrative | 9,225 | 26,713 | ||||||
Total operating expenses | 28,253 | 80,163 | ||||||
Income (loss) from operations | 871 | (3,638 | ) | |||||
Interest and other income (expense), net | (2,911 | ) | (6,435 | ) | ||||
Loss before income taxes | (2,040 | ) | (10,073 | ) | ||||
Income tax expense (benefit) | 1,624 | (1,836 | ) | |||||
Net loss | $ | (3,664 | ) | $ | (8,237 | ) |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Notes) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Accumulated Other Comprehensive Income [Abstract] | ' | |||||||||||
Comprehensive Income (Loss) Note [Text Block] | ' | |||||||||||
Accumulated Other Comprehensive Income | ||||||||||||
The following table summarizes the changes in accumulated balances of other comprehensive income, net of tax, for the three months ended September 30, 2013 (in thousands): | ||||||||||||
Unrealized Gains (Losses) on Investments | Foreign Currency Translation | Total | ||||||||||
Beginning balance | $ | 6,812 | $ | (4,015 | ) | $ | 2,797 | |||||
Other comprehensive income before reclassifications | 4,247 | 1,590 | 5,837 | |||||||||
Amounts reclassified from accumulated other comprehensive income | 12 | — | 12 | |||||||||
Net current period other comprehensive income | 4,259 | 1,590 | 5,849 | |||||||||
Ending balance | $ | 11,071 | $ | (2,425 | ) | $ | 8,646 | |||||
The following table summarizes the changes in accumulated balances of other comprehensive income, net of tax, for the nine months ended September 30, 2013 (in thousands): | ||||||||||||
Unrealized Gains (Losses) on Investments | Foreign Currency Translation | Total | ||||||||||
Beginning balance | $ | 1,811 | $ | (1,899 | ) | $ | (88 | ) | ||||
Other comprehensive income before reclassifications | 9,251 | (614 | ) | 8,637 | ||||||||
Amounts reclassified from accumulated other comprehensive income | 9 | 88 | 97 | |||||||||
Net current period other comprehensive income | 9,260 | (526 | ) | 8,734 | ||||||||
Ending balance | $ | 11,071 | $ | (2,425 | ) | $ | 8,646 | |||||
The following table provides details about reclassifications out of accumulated other comprehensive income for the three and nine months ended September 30, 2013 (in thousands): | ||||||||||||
Details about Accumulated Other Comprehensive Income Components | Amount Reclassified from Accumulated Other Comprehensive Income | Affected Line Item in the Statement of Income | ||||||||||
Three Months Ended September 30, 2013 | Nine Months Ended September 30, 2013 | |||||||||||
Cumulative translation adjustment | $ | — | $ | 116 | Interest and other income (expense), net | |||||||
— | 116 | Total, before income taxes | ||||||||||
— | (28 | ) | Income tax expense (benefit) | |||||||||
— | 88 | Total, net of tax | ||||||||||
Unrealized gain (loss) on available-for-sale investments | 18 | 14 | Interest and other income (expense), net | |||||||||
18 | 14 | Total, before income taxes | ||||||||||
(6 | ) | (5 | ) | Income tax expense (benefit) | ||||||||
12 | 9 | Total, net of tax | ||||||||||
Total reclassifications for the period | $ | 12 | $ | 97 | Total, net of tax | |||||||
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
On November 5, 2013, the Company's Board of Directors approved a quarterly cash dividend of $0.255 per share of common stock payable on December 4, 2013 to all stockholders of record as of the close of business on November 18, 2013. |
Basis_Of_Presentation_Policy
Basis Of Presentation (Policy) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Use Of Estimates | ' |
Use of Estimates | |
The preparation of consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, including judgments about investment classifications, and the reported amounts of net revenue and expenses during the reporting period. On an ongoing basis, management evaluates its estimates based on historical experience and on various other factors that the Company believes to be reasonable under the circumstances. Actual results could differ from those estimates. | |
Allowances For Doubtful Accounts | ' |
Allowances for Doubtful Accounts | |
j2 Global reserves for receivables it may not be able to collect. These reserves for the Company's Business Cloud Services segment are typically driven by the historical volume of credit card declines, an evaluation of current market conditions and past due invoices based on historical experience. These reserves for the Company's Digital Media segment are typically driven by past due invoices based on historical experience. Management evaluates the adequacy of these reserves on an ongoing basis. | |
Revenue Recognition | ' |
Revenue Recognition | |
Business Cloud Services | |
The Company's Business Cloud Services revenues substantially consist of monthly recurring subscription and usage-based fees, which are primarily paid in advance by credit card. In accordance with GAAP, the Company defers the portions of monthly, quarterly, semi-annually and annually recurring subscription and usage-based fees collected in advance and recognizes them in the period earned. Additionally, the Company defers and recognizes subscriber activation fees and related direct incremental costs over a subscriber's estimated useful life. | |
j2 Global's Business Cloud Services also include patent license revenues generated under license agreements that provide for the payment of contractually determined fully paid-up or royalty-bearing license fees to j2 Global in exchange for the grant of non-exclusive, retroactive and future licenses to our intellectual property. Patent revenues may also consist of revenues generated from the sale of patents. Patent license revenues are recognized when earned over the term of the license agreements. With regard to fully paid-up license arrangements, the Company recognizes as revenue in the period the license agreement is executed the portion of the payment attributable to past use of the intellectual property and amortizes the remaining portion of such payments on a straight-line basis over the life of the licensed patent(s). With regard to royalty-bearing license arrangements, the Company recognizes revenues of license fees earned during the applicable period. With regard to patent sales, the Company recognizes as revenue in the period of the sale the amount of the purchase price over the carrying value of the patent(s) sold. | |
The Business Cloud Services business also generates revenues by licensing certain technology to third parties. These licensing revenues are recognized when earned in accordance with the terms of the underlying agreement. Generally, revenue is recognized as the third party uses the licensed technology over the period. | |
Digital Media | |
The Company's Digital Media revenues primarily consist of revenues generated from the sale of advertising campaigns that are targeted to the Company's proprietary websites and to those websites operated by third parties that are part of the Digital Media business's advertising network. Revenues for these advertising campaigns are recognized as earned either when an ad is placed for viewing by a visitor to the appropriate web page or when the visitor "clicks through" on the ad, depending upon the terms with the individual advertiser. | |
Revenues for Digital Media business-to-business operations consist of lead-generation campaigns for IT vendors and are recognized as earned when the Company delivers the qualified leads to the customer. | |
j2 Global also generates Digital Media revenues through the license of certain assets to clients, for the clients' use in their own promotional materials or otherwise. Such assets may include logos, editorial reviews, or other copyrighted material. Revenues under such license agreements are recognized when the assets are delivered to the client. The Digital Media business also generates other types of revenues, including business listing fees, subscriptions to online publications, and from other sources. Such other revenues are recognized as earned. | |
Fair Value Measurements | ' |
Fair Value Measurements | |
j2 Global complies with the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification ("ASC") Topic No. 820, Fair Value Measurements and Disclosures (“ASC 820”), in measuring fair value and in disclosing fair value measurements. ASC 820 provides a framework for measuring fair value and expands the disclosures required for fair value measurements of financial and non-financial assets and liabilities. | |
As of September 30, 2013 and December 31, 2012, the carrying value of cash and cash equivalents, short-term investments, accounts receivable, interest receivable, accounts payable, accrued expenses, interest payable, customer deposits and long-term debt are reflected in the financial statements at cost. With the exception of long-term debt, cost approximates fair value due to the short-term nature of such instruments. The fair value of the Company's senior unsecured notes was determined using the quoted market prices of debt instruments with similar terms and maturities. As of the same dates, the carrying value of other long-term liabilities approximated fair value as the related interest rates approximate rates currently available to j2 Global. | |
Debt, Policy [Policy Text Block] | ' |
Debt Issuance Costs and Debt Discount | |
j2 Global capitalizes costs incurred with borrowing and issuance of debt securities and records debt discounts as a reduction to the debt amount. j2 Global capitalized costs incurred in connection with its sale of senior unsecured notes within long-term other assets and recorded the original purchase discount as a reduction to such notes (See Note 7 - Long Term Debt). These costs and discounts are amortized and included in interest expense over the life of the borrowing or term of the credit facility using the interest method. | |
Concentration Of Credit Risk | ' |
Concentration of Credit Risk | |
All of the Company’s cash, cash equivalents and marketable securities are invested at major financial institutions primarily within the United States, United Kingdom and Ireland. These institutions are required to invest the Company’s cash in accordance with the Company’s investment policy with the principal objectives being preservation of capital, fulfillment of liquidity needs and above market returns commensurate with preservation of capital. The Company’s investment policy also requires that investments in marketable securities be in only highly rated instruments, with limitations on investing in securities of any single issuer. However, these investments are not insured against the possibility of a total or near complete loss of earnings or principal and are inherently subject to the credit risk related to the continued credit worthiness of the underlying issuer and general credit market risks. At September 30, 2013 and December 31, 2012, the Company’s cash and cash equivalents were maintained in accounts that are insured up to the limit determined by the applicable governmental agency. j2 Global's deposits held in qualifying financial institutions in Ireland are fully insured through March 28, 2018 to the extent on deposit prior to March 28, 2013. With respect to the Company's deposits with financial institutions in other jurisdictions, the insured amount is immaterial in comparison to the total uninsured cash and cash equivalents on deposit. These financial institutions are primarily in the United States and United Kingdom, however, the Company has accounts with financial institutions in several other countries, including Australia, Austria, China, France, Germany, Italy, Japan, New Zealand, the Netherlands and Poland. | |
Income Taxes | ' |
Income Taxes | |
The Company must make certain estimates and judgments in determining income tax expense for financial statement purposes. These estimates and judgments occur in the following areas, among others: (i) calculation of tax credits, benefits and deductions; (ii) calculation of tax assets and liabilities arising from differences in the timing of recognition of revenue and expense for tax and financial statement purposes; and (iii) interest and penalties related to uncertain tax positions. Significant changes to these estimates may result in an increase or decrease to the Company’s tax provision in the current or a subsequent period. | |
The Company must assess the likelihood that it will be able to recover its deferred tax assets. If recovery is not likely, the Company must increase its provision for taxes by recording a valuation allowance against the deferred tax assets that the Company estimates will not ultimately be recoverable. The Company believes that it will ultimately recover a substantial majority of the deferred tax assets recorded on its condensed consolidated balance sheets. However, should there be a change in the Company’s ability to recover its deferred tax assets, the Company’s tax provision would increase in the period in which j2 Global determined that the recovery was not likely. | |
The calculation of the Company’s tax liabilities involves dealing with uncertainties in the application of complex tax laws. j2 Global recognizes liabilities for uncertain tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. If the Company determines that a tax position will more likely than not be sustained on audit, then the second step requires j2 Global to estimate and measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. It is inherently difficult and subjective to estimate such amounts, as j2 Global has to determine the probability of various possible outcomes. j2 Global reevaluates these uncertain tax positions on a quarterly basis. This evaluation is based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, effectively settled issues under audit and new audit activity. Such a change in recognition or measurement would result in the recognition of a tax benefit or an additional charge to the tax provision. | |
Comparability of Prior Year Financial Data, Policy [Policy Text Block] | ' |
Reclassifications | |
Certain prior year reported amounts have been reclassified to conform with the 2013 presentation. |
Business_Acquisition_Tables
Business Acquisition (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | ' | |||||||
The following table summarizes the allocation of the purchase consideration for these acquisitions (in thousands): | ||||||||
Asset | Valuation | |||||||
Accounts Receivable | $ | 23,034 | ||||||
Property and Equipment | 2,536 | |||||||
Other Assets | 2,617 | |||||||
Deferred Tax Asset | 2,058 | |||||||
Software | 3,016 | |||||||
Content | 2,460 | |||||||
Trade Names | 16,626 | |||||||
Customer Relationships | 18,498 | |||||||
Advertiser Relationships | 11,770 | |||||||
Goodwill | 31,420 | |||||||
Total | $ | 114,035 | ||||||
Business Acquisition, Pro Forma Information [Table Text Block] | ' | |||||||
The supplemental information on an unaudited pro forma financial basis presents the combined results of j2 Global and its 2013 acquisitions as if each acquisition had occurred on January 1, 2012 (in thousands, except per share amounts): | ||||||||
Nine Months Ended September 30, 2013 | Nine Months Ended September 30, 2012 | |||||||
(unaudited) | (unaudited) | |||||||
Revenues | $ | 398,953 | $ | 357,571 | ||||
Net Income | $ | 86,442 | $ | 91,925 | ||||
EPS - Basic | $ | 1.87 | $ | 2.02 | ||||
EPS - Diluted | $ | 1.84 | $ | 2 | ||||
Investments_Tables
Investments (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Investments [Abstract] | ' | |||||||||||||||
Schedule Of Debt Securities By Contractual Maturity Date | ' | |||||||||||||||
The following table summarizes j2 Global’s debt securities designated as available-for-sale, classified by the contractual maturity date of the security (in thousands): | ||||||||||||||||
September 30, | December 31, 2012 | |||||||||||||||
2013 | ||||||||||||||||
Due within 1 year | $ | 55,668 | $ | 46,681 | ||||||||||||
Due within more than 1 year but less than 5 years | 64,392 | 17,209 | ||||||||||||||
Due within more than 5 years but less than 10 years | — | — | ||||||||||||||
Due 10 years or after | 2,507 | 2,633 | ||||||||||||||
Total | $ | 122,567 | $ | 66,523 | ||||||||||||
Schedule Of Available-For-Sale And Trading Securities | ' | |||||||||||||||
The following table summarizes the Company’s investments designated as trading and available-for-sale (in thousands): | ||||||||||||||||
September 30, | December 31, 2012 | |||||||||||||||
2013 | ||||||||||||||||
Trading | $ | 14 | $ | 3 | ||||||||||||
Available-for-sale | 160,666 | 90,017 | ||||||||||||||
Total | $ | 160,680 | $ | 90,020 | ||||||||||||
Summary Of Gross Unrealized Gains And Losses And Fair Values | ' | |||||||||||||||
The following table summarizes the gross unrealized gains and losses and fair values for the Company's available-for-sale investments as of September 30, 2013 and December 31, 2012 aggregated by major security type (in thousands): | ||||||||||||||||
Amortized | Gross | Gross | Fair | |||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||
Gains | Losses | |||||||||||||||
September 30, 2013 | ||||||||||||||||
Debt Securities | $ | 122,551 | $ | 130 | $ | (114 | ) | $ | 122,567 | |||||||
Equity Securities | 20,610 | 17,489 | — | 38,099 | ||||||||||||
Total | $ | 143,161 | $ | 17,619 | $ | (114 | ) | $ | 160,666 | |||||||
December 31, 2012 | ||||||||||||||||
Debt Securities | $ | 66,541 | $ | 149 | $ | (167 | ) | $ | 66,523 | |||||||
Equity Securities | 20,610 | 3,251 | (367 | ) | 23,494 | |||||||||||
Total | $ | 87,151 | $ | 3,400 | $ | (534 | ) | $ | 90,017 | |||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Schedule Of Fair Values Of Financial Instruments Measured On Recurring Basis | ' | |||||||||||||||
The following tables present the fair values of the Company’s financial instruments that are measured at fair value on a recurring basis (in thousands): | ||||||||||||||||
September 30, 2013 | Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||
Cash equivalents: | ||||||||||||||||
Money market and other funds | $ | 94,278 | $ | — | $ | — | $ | 94,278 | ||||||||
Time deposits | 22,463 | — | — | 22,463 | ||||||||||||
Corporate commercial papers | 6,998 | — | — | 6,998 | ||||||||||||
Certificates of deposit | 14,263 | — | — | 14,263 | ||||||||||||
Equity securities | 38,113 | — | — | 38,113 | ||||||||||||
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 30,359 | — | — | 30,359 | ||||||||||||
Debt securities issued by states of the U.S. and political subdivisions of the states | 4,321 | — | — | 4,321 | ||||||||||||
Debt securities issued by foreign governments | 1,998 | — | — | 1,998 | ||||||||||||
Corporate debt securities | 85,889 | — | — | 85,889 | ||||||||||||
Total | $ | 298,682 | $ | — | $ | — | $ | 298,682 | ||||||||
December 31, 2012 | Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||
Cash equivalents: | ||||||||||||||||
Money market and other funds | $ | 99,351 | $ | — | $ | — | $ | 99,351 | ||||||||
Time deposits | 22,093 | — | — | 22,093 | ||||||||||||
Corporate commercial papers | — | — | — | — | ||||||||||||
Certificates of deposit | 34,876 | — | — | 34,876 | ||||||||||||
Equity securities | 23,497 | — | — | 23,497 | ||||||||||||
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 6,450 | — | — | 6,450 | ||||||||||||
Debt securities issued by states of the U.S. and political subdivisions of the states | 11,658 | — | — | 11,658 | ||||||||||||
Debt securities issued by foreign governments | 3,589 | — | — | 3,589 | ||||||||||||
Corporate debt securities | 44,826 | — | — | 44,826 | ||||||||||||
Total | $ | 246,340 | $ | — | $ | — | $ | 246,340 | ||||||||
Goodwill_And_Intangible_Assets1
Goodwill And Intangible Assets (Tables) | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ||||||||||||||||||||||||||
Changes In Carrying Amounts Of Goodwill | ' | ' | ||||||||||||||||||||||||||
The changes in carrying amounts of goodwill for the nine months ended September 30, 2013 are as follows (in thousands): | ||||||||||||||||||||||||||||
Balance as of January 1, 2013 | $ | 407,825 | ||||||||||||||||||||||||||
Goodwill acquired (Note 3) | 31,420 | |||||||||||||||||||||||||||
Purchase accounting adjustments | 2,329 | |||||||||||||||||||||||||||
Foreign exchange translation | 113 | |||||||||||||||||||||||||||
Balance as of September 30, 2013 | $ | 441,687 | ||||||||||||||||||||||||||
Schedule Of Intangible Assets With Indefinite Lives | ' | ' | ||||||||||||||||||||||||||
Intangible Assets with Indefinite Lives: | ||||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||
Trade name | $ | 27,379 | $ | 27,379 | ||||||||||||||||||||||||
Other | 5,432 | 5,433 | ||||||||||||||||||||||||||
Total | $ | 32,811 | $ | 32,812 | ||||||||||||||||||||||||
Finite-Lived Intangible Assets By Major Class | ' | ' | ||||||||||||||||||||||||||
As of September 30, 2013, intangible assets subject to amortization relate primarily to the following (in thousands): | As of December 31, 2012, intangible assets subject to amortization relate primarily to the following (in thousands): | |||||||||||||||||||||||||||
Weighted-Average | Historical | Accumulated | Net | |||||||||||||||||||||||||
Weighted-Average | Historical | Accumulated | Net | Amortization | Cost | Amortization | ||||||||||||||||||||||
Amortization | Cost | Amortization | Period | |||||||||||||||||||||||||
Period | Tradenames | 17.7 years | $ | 50,257 | $ | (6,227 | ) | $ | 44,030 | |||||||||||||||||||
Tradenames | 17.1 years | $ | 66,852 | $ | (9,812 | ) | $ | 57,040 | ||||||||||||||||||||
Patent and patent licenses | 8.2 years | 44,048 | (24,719 | ) | 19,329 | |||||||||||||||||||||||
Patent and patent licenses | 7.8 years | 47,173 | (28,470 | ) | 18,703 | |||||||||||||||||||||||
Customer relationships | 7.0 years | 86,473 | (21,750 | ) | 64,723 | |||||||||||||||||||||||
Customer relationships | 7.1 years | 117,231 | (33,208 | ) | 84,023 | |||||||||||||||||||||||
Other purchased intangibles | 4.4 years | 13,322 | (8,900 | ) | 4,422 | |||||||||||||||||||||||
Other purchased intangibles | 4.0 years | 16,094 | (11,860 | ) | 4,234 | |||||||||||||||||||||||
Total | $ | 194,100 | $ | (61,596 | ) | $ | 132,504 | |||||||||||||||||||||
Total | $ | 247,350 | $ | (83,350 | ) | $ | 164,000 | |||||||||||||||||||||
Long_Term_Debt_Tables
Long Term Debt (Tables) | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Long-term Debt, Unclassified [Abstract] | ' | |||
Schedule of Long-term Debt Instruments [Table Text Block] | ' | |||
Long-term debt as of September 30, 2013 consists of the following (in thousands): | ||||
Notes | $ | 245,548 | ||
Total long-term debt | 245,548 | |||
Less: Current portion | — | |||
Total long-term debt, less current portion | $ | 245,548 | ||
Stock_Options_And_Employee_Sto1
Stock Options And Employee Stock Purchase Plan (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Stock Options Activity | ' | |||||||||||||||
The following table represents stock option activity for the nine months ended September 30, 2013: | ||||||||||||||||
Number of | Weighted- | Weighted-Average | Aggregate | |||||||||||||
Shares | Average | Remaining | Intrinsic | |||||||||||||
Exercise | Contractual | Value | ||||||||||||||
Price | Term (in years) | |||||||||||||||
Outstanding at January 1, 2013 | 1,765,461 | $ | 22.08 | |||||||||||||
Granted | — | — | ||||||||||||||
Exercised | (562,173 | ) | 24.04 | |||||||||||||
Canceled | (20,600 | ) | 21.79 | |||||||||||||
Outstanding at September 30, 2013 | 1,182,688 | 21.16 | 4.3 | $ | 33,542,013 | |||||||||||
Exercisable at September 30, 2013 | 836,229 | 20.25 | 3.3 | $ | 24,476,289 | |||||||||||
Vested and expected to vest at September 30, 2013 | 1,127,602 | $ | 20.94 | 4.1 | $ | 32,231,627 | ||||||||||
Assumptions To Estimate Fair Value Of Stock Options | ' | |||||||||||||||
The weighted-average fair values of stock options granted have been estimated utilizing the following assumptions, no stock options were granted during the nine month period ended September 30, 2013: | ||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||
2012 | ||||||||||||||||
Risk-free interest rate | 0.91% | |||||||||||||||
Expected term (in years) | 5.7 | |||||||||||||||
Dividend yield | 3.09% | |||||||||||||||
Expected volatility | 41% | |||||||||||||||
Weighted-average volatility | 41% | |||||||||||||||
Allocation Of Share-Based Compensation Expense | ' | |||||||||||||||
The following table represents share-based compensation expense included in cost of revenues and operating expenses in the accompanying condensed consolidated statements of income for the three and nine months ended September 30, 2013 and 2012 (in thousands): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Cost of revenues | $ | 162 | $ | 199 | $ | 581 | $ | 633 | ||||||||
Operating expenses: | ||||||||||||||||
Sales and marketing | 465 | 390 | 1,315 | 1,117 | ||||||||||||
Research, development and engineering | 103 | 111 | 311 | 344 | ||||||||||||
General and administrative | 1,695 | 1,703 | 4,901 | 4,757 | ||||||||||||
Total | $ | 2,425 | $ | 2,403 | $ | 7,108 | $ | 6,851 | ||||||||
Restricted Stock [Member] | ' | |||||||||||||||
Restricted Stock And Restricted Stock Unit Award Activity | ' | |||||||||||||||
Restricted stock award activity for the nine months ended September 30, 2013 is set forth below: | ||||||||||||||||
Shares | Weighted-Average | |||||||||||||||
Grant-Date | ||||||||||||||||
Fair Value | ||||||||||||||||
Nonvested at January 1, 2013 | 828,475 | $ | 23.08 | |||||||||||||
Granted | 178,430 | 38.4 | ||||||||||||||
Vested | (291,841 | ) | 21.33 | |||||||||||||
Canceled | (43,900 | ) | 24.46 | |||||||||||||
Nonvested at September 30, 2013 | 671,164 | $ | 27.82 | |||||||||||||
Restricted Stock Units (RSUs) [Member] | ' | |||||||||||||||
Restricted Stock And Restricted Stock Unit Award Activity | ' | |||||||||||||||
Restricted stock unit award activity for the nine months ended September 30, 2013 is set forth below: | ||||||||||||||||
Number of | Weighted-Average | Aggregate | ||||||||||||||
Shares | Remaining | Intrinsic | ||||||||||||||
Contractual | Value | |||||||||||||||
Term (in years) | ||||||||||||||||
Outstanding at January 1, 2013 | 115,466 | |||||||||||||||
Granted | 26,675 | |||||||||||||||
Vested | (10,116 | ) | ||||||||||||||
Canceled | (33,000 | ) | ||||||||||||||
Outstanding at September 30, 2013 | 99,025 | 2.3 | $ | 4,903,718 | ||||||||||||
Vested and expected to vest at September 30, 2013 | 67,640 | 2 | $ | 3,349,522 | ||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share Reconciliation [Abstract] | ' | |||||||||||||||
Components Of Basic And Diluted Earnings Per Share | ' | |||||||||||||||
The components of basic and diluted earnings per share are as follows (in thousands, except share and per share data): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Numerator for basic and diluted net income per common share: | ||||||||||||||||
Net income attributable to j2 Global, Inc. common shareholders | $ | 27,806 | $ | 31,650 | $ | 86,768 | $ | 91,377 | ||||||||
Net income available to participating securities (a) | (416 | ) | (513 | ) | (1,455 | ) | (1,512 | ) | ||||||||
Net income available to j2 Global, Inc. common shareholders | $ | 27,390 | $ | 31,137 | $ | 85,313 | $ | 89,865 | ||||||||
Denominator: | ||||||||||||||||
Weighted-average outstanding shares of common stock | 45,729,171 | 45,002,565 | 45,441,265 | 45,590,160 | ||||||||||||
Dilutive effect of: | ||||||||||||||||
Dilutive effect of equity incentive plans | 562,460 | 337,546 | 625,339 | 307,229 | ||||||||||||
Common stock and common stock equivalents | 46,291,631 | 45,340,111 | 46,066,604 | 45,897,389 | ||||||||||||
Net income per share: | ||||||||||||||||
Basic | $ | 0.6 | $ | 0.69 | $ | 1.88 | $ | 1.97 | ||||||||
Diluted | $ | 0.59 | $ | 0.69 | $ | 1.85 | $ | 1.96 | ||||||||
(a) | Represents unvested share-based payment awards that contain certain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid). |
Geographic_Information_Tables
Geographic Information (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Segments, Geographical Areas [Abstract] | ' | |||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | |||||||||||||||
Information on reportable segments and reconciliation to consolidated income from operations is presented below (in thousands): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Revenues by segment: | ||||||||||||||||
Business Cloud Services | $ | 94,391 | $ | 93,246 | $ | 293,898 | $ | 269,363 | ||||||||
Digital Media | 33,522 | — | 89,207 | — | ||||||||||||
Elimination of inter-segment revenues | (125 | ) | — | (339 | ) | — | ||||||||||
Total revenues | 127,788 | 93,246 | 382,766 | 269,363 | ||||||||||||
Direct costs by segment(1): | ||||||||||||||||
Business Cloud Services | 48,504 | 44,379 | 143,075 | 129,063 | ||||||||||||
Digital Media | 32,652 | — | 92,845 | — | ||||||||||||
Direct costs by segment(1): | 81,156 | 44,379 | 235,920 | 129,063 | ||||||||||||
Business Cloud Services operating income | 45,886 | 48,866 | 150,823 | 140,300 | ||||||||||||
Digital Media operating income (loss) | 871 | — | (3,638 | ) | — | |||||||||||
Segment operating income | 46,757 | 48,866 | 147,185 | 140,300 | ||||||||||||
Global operating costs(2) | 7,449 | 6,589 | 22,283 | 20,386 | ||||||||||||
Income from operations | $ | 39,308 | $ | 42,277 | $ | 124,902 | $ | 119,914 | ||||||||
(1) Direct costs for each segment include cost of revenues and other operating expenses that are directly attributable to the segment such as employee compensation expense, local sales and marketing expenses, engineering and operations, depreciation and amortization and other administrative expenses. | ||||||||||||||||
(2) Global operating costs include general and administrative and other corporate expenses that are managed on a global basis and that are not directly attributable to any particular segment. | ||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||
Assets: | ||||||||||||||||
Business Cloud Services | $ | 896,847 | $ | 788,828 | ||||||||||||
Digital Media | 306,750 | 204,244 | ||||||||||||||
Total assets from reportable segments | 1,203,597 | 993,072 | ||||||||||||||
Corporate | 1,993 | 2,098 | ||||||||||||||
Elimination of inter-segment note receivable | (67,500 | ) | — | |||||||||||||
Total assets | $ | 1,138,090 | $ | 995,170 | ||||||||||||
Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Capital expenditures: | ||||||||||||||||
Business Cloud Services | $ | 5,573 | $ | 3,512 | ||||||||||||
Digital Media | 5,067 | — | ||||||||||||||
Total from reportable segments | 10,640 | 3,512 | ||||||||||||||
Corporate | 475 | 234 | ||||||||||||||
Total capital expenditures | $ | 11,115 | $ | 3,746 | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Depreciation and amortization: | ||||||||||||||||
Business Cloud Services | $ | 6,248 | $ | 5,245 | $ | 17,609 | $ | 15,179 | ||||||||
Digital Media | 3,767 | — | 10,335 | — | ||||||||||||
Total from reportable segments | 10,015 | 5,245 | 27,944 | 15,179 | ||||||||||||
Corporate | 168 | 133 | 480 | 376 | ||||||||||||
Total depreciation and amortization | $ | 10,183 | $ | 5,378 | $ | 28,424 | $ | 15,555 | ||||||||
Summary On Revenues And Long-Lived Assets By Geographic Areas | ' | |||||||||||||||
j2 Global maintains operations in the U.S., Canada, Ireland, Japan and other countries. Geographic information about the U.S. and all other countries for the reporting periods is presented below. Such information attributes revenues based on jurisdictions where revenues are reported (in thousands). | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Revenues: | ||||||||||||||||
United States | $ | 90,447 | $ | 58,194 | $ | 270,444 | $ | 167,211 | ||||||||
Canada | 17,992 | 20,028 | 55,137 | 60,616 | ||||||||||||
Ireland | 10,417 | 10,124 | 30,822 | 30,908 | ||||||||||||
All other countries | 8,932 | 4,900 | 26,363 | 10,628 | ||||||||||||
$ | 127,788 | $ | 93,246 | $ | 382,766 | $ | 269,363 | |||||||||
September 30, | December 31, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Long-lived assets: | ||||||||||||||||
United States | $ | 146,039 | $ | 105,549 | ||||||||||||
All other countries | 48,104 | 46,554 | ||||||||||||||
Total | $ | 194,143 | $ | 152,103 | ||||||||||||
Unrestricted_Subsidiaries_Tabl
Unrestricted Subsidiaries (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Unrestricted Subsidiaires [Abstract] | ' | |||||||
Schedule of Unrestricted Subsidiaries Financial Information [Table Text Block] | ' | |||||||
The financial position of Ziff Davis, Inc. and its subsidiaries as of September 30, 2013 is as follows (in thousands): | ||||||||
September 30, 2013 | ||||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 14,910 | ||||||
Accounts receivable | 45,773 | |||||||
Prepaid expenses and other current assets | 4,599 | |||||||
Deferred income taxes | 3,197 | |||||||
Total current assets | 68,479 | |||||||
Property and equipment, net | 12,777 | |||||||
Trade names, net | 50,620 | |||||||
Customer relationships, net | 39,658 | |||||||
Goodwill | 131,877 | |||||||
Other purchased intangibles, net | 1,828 | |||||||
Deferred income taxes | — | |||||||
Other assets | 1,511 | |||||||
Total assets | $ | 306,750 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Accounts payable and accrued expenses | $ | 30,268 | ||||||
Income taxes payable | 1,578 | |||||||
Deferred revenue, current | 2,294 | |||||||
Total current liabilities | 34,140 | |||||||
Note payable | 67,500 | |||||||
Interest payable | 6,351 | |||||||
Deferred income taxes | 30,550 | |||||||
Other long-term liabilities | 16 | |||||||
Mandatorily redeemable financial instrument | 199,611 | |||||||
Total liabilities | 338,168 | |||||||
Commitments and contingencies | — | |||||||
Common stock | — | |||||||
Additional paid-in capital | (25,064 | ) | ||||||
Retained earnings | (6,325 | ) | ||||||
Accumulated other comprehensive income (loss) | (29 | ) | ||||||
Total stockholders’ equity | (31,418 | ) | ||||||
Total liabilities and stockholders’ equity | $ | 306,750 | ||||||
The results of operations of Ziff Davis, Inc. and its subsidiaries for the three and nine months ended September 30, 2013 is as follows (in thousands): | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
2013 | 2013 | |||||||
Revenues | $ | 33,522 | $ | 89,207 | ||||
Cost of revenues | 4,398 | 12,682 | ||||||
Gross profit | 29,124 | 76,525 | ||||||
Operating expenses: | ||||||||
Sales and marketing | 18,085 | 49,049 | ||||||
Research, development and engineering | 943 | 4,401 | ||||||
General and administrative | 9,225 | 26,713 | ||||||
Total operating expenses | 28,253 | 80,163 | ||||||
Income (loss) from operations | 871 | (3,638 | ) | |||||
Interest and other income (expense), net | (2,911 | ) | (6,435 | ) | ||||
Loss before income taxes | (2,040 | ) | (10,073 | ) | ||||
Income tax expense (benefit) | 1,624 | (1,836 | ) | |||||
Net loss | $ | (3,664 | ) | $ | (8,237 | ) |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2013 | |||||||||||||||||||||||
Accumulated Other Comprehensive Income [Abstract] | ' | ' | ||||||||||||||||||||||
Reclassification Out Of Accumulated Other Comprehensive Income [Table Text Block] | ' | ' | ||||||||||||||||||||||
The following table provides details about reclassifications out of accumulated other comprehensive income for the three and nine months ended September 30, 2013 (in thousands): | ||||||||||||||||||||||||
Details about Accumulated Other Comprehensive Income Components | Amount Reclassified from Accumulated Other Comprehensive Income | Affected Line Item in the Statement of Income | ||||||||||||||||||||||
Three Months Ended September 30, 2013 | Nine Months Ended September 30, 2013 | |||||||||||||||||||||||
Cumulative translation adjustment | $ | — | $ | 116 | Interest and other income (expense), net | |||||||||||||||||||
— | 116 | Total, before income taxes | ||||||||||||||||||||||
— | (28 | ) | Income tax expense (benefit) | |||||||||||||||||||||
— | 88 | Total, net of tax | ||||||||||||||||||||||
Unrealized gain (loss) on available-for-sale investments | 18 | 14 | Interest and other income (expense), net | |||||||||||||||||||||
18 | 14 | Total, before income taxes | ||||||||||||||||||||||
(6 | ) | (5 | ) | Income tax expense (benefit) | ||||||||||||||||||||
12 | 9 | Total, net of tax | ||||||||||||||||||||||
Total reclassifications for the period | $ | 12 | $ | 97 | Total, net of tax | |||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ' | ' | ||||||||||||||||||||||
The following table summarizes the changes in accumulated balances of other comprehensive income, net of tax, for the three months ended September 30, 2013 (in thousands): | ||||||||||||||||||||||||
The following table summarizes the changes in accumulated balances of other comprehensive income, net of tax, for the nine months ended September 30, 2013 (in thousands): | ||||||||||||||||||||||||
Unrealized Gains (Losses) on Investments | Foreign Currency Translation | Total | ||||||||||||||||||||||
Beginning balance | $ | 6,812 | $ | (4,015 | ) | $ | 2,797 | Unrealized Gains (Losses) on Investments | Foreign Currency Translation | Total | ||||||||||||||
Beginning balance | $ | 1,811 | $ | (1,899 | ) | $ | (88 | ) | ||||||||||||||||
Other comprehensive income before reclassifications | 4,247 | 1,590 | 5,837 | |||||||||||||||||||||
Other comprehensive income before reclassifications | 9,251 | (614 | ) | 8,637 | ||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | 12 | — | 12 | |||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | 9 | 88 | 97 | |||||||||||||||||||||
Net current period other comprehensive income | 4,259 | 1,590 | 5,849 | |||||||||||||||||||||
Net current period other comprehensive income | 9,260 | (526 | ) | 8,734 | ||||||||||||||||||||
Ending balance | $ | 11,071 | $ | (2,425 | ) | $ | 8,646 | |||||||||||||||||
Ending balance | $ | 11,071 | $ | (2,425 | ) | $ | 8,646 | |||||||||||||||||
Basis_Of_Presentation_Details
Basis Of Presentation (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenue | $127,788 | $93,246 | $382,766 | $269,363 |
Net income attributable to j2 Global, Inc. common shareholders | $27,806 | $31,650 | $86,768 | $91,377 |
Basic earnings per share | $0.60 | $0.69 | $1.88 | $1.97 |
Diluted earnings per share | $0.59 | $0.69 | $1.85 | $1.96 |
Business_Acquisition_Details
Business Acquisition (Details) (USD $) | 9 Months Ended | 3 Months Ended | |||
Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | |
IGN Entertainment, Inc [Member] | IGN Entertainment, Inc [Member] | Ziff Davis, Inc [Member] | |||
Goodwill, Period Increase (Decrease) | ' | ' | $1,800,000 | $3,800,000 | $1,700,000 |
Goodwill, Acquired During Period | 31,420,000 | ' | ' | ' | ' |
Goodwill | 441,687,000 | 407,825,000 | ' | ' | ' |
Business Acquisition, Purchase Price Allocation, Goodwill, Expected Tax Deductible Amount | 15,700,000 | ' | ' | ' | ' |
Business Acquisition Contributed Total Revenue | 50,300,000 | ' | ' | ' | ' |
Total consideration of transaction, net of cash acquired | 114,000,000 | ' | ' | ' | ' |
Business Combination, Consideration Transferred, Liabilities Incurred | $15,200,000 | ' | ' | ' | ' |
Business_Acquisition_Business_
Business Acquisition Business Acquisition (Allocation of Aggregate Purchase Price) (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Business Acquisition [Line Items] | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | $23,034 | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 2,536 | ' |
Business Combination, Purchase Price Allocation Current Noncurrent Assets Prepaid Expense and Other Assets | 2,617 | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Assets Noncurrent | 2,058 | ' |
Business Combination, Purchase Price Allocation, Goodwill Amount | 441,687 | 407,825 |
Goodwill, Acquired During Period | 31,420 | ' |
Developed Technology Rights [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 3,016 | ' |
Media Content [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 2,460 | ' |
Trade Names [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 16,626 | ' |
Customer Relationships [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 18,498 | ' |
Advertiser Relationship [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $11,770 | ' |
Business_Acquisition_Business_1
Business Acquisition Business Acquisitions (Supplementary Information On Unaudited Pro Forma Financial Results Of Acquisition) (Details) (USD $) | 9 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Business Combinations [Abstract] | ' | ' |
Business Acquisition, Pro Forma Revenue | $398,953 | $357,571 |
Business Acquisition, Pro Forma Net Income (Loss) | $86,442 | $91,925 |
Business Acquisition, Pro Forma Earnings Per Share, Basic | $1.87 | $2.02 |
Business Acquisition, Pro Forma Earnings Per Share, Diluted | $1.84 | $2 |
Investments_Schedule_Of_Debt_S
Investments (Schedule Of Debt Securities By Contractual Maturity Date) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Investments [Abstract] | ' | ' |
Due within 1 year | $55,668 | $46,681 |
Due within more than 1 year but less than 5 years | 64,392 | 17,209 |
Due within more than 5 years but less than 10 years | 0 | 0 |
Due 10 years or after | 2,507 | 2,633 |
Total | $122,567 | $66,523 |
Investments_Schedule_Of_Availa
Investments (Schedule Of Available-For-Sale And Trading Securities) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Investments [Abstract] | ' | ' |
Trading | $14 | $3 |
Available-for-sale Securities | 160,666 | 90,017 |
Total | $160,680 | $90,020 |
Investments_Summary_Of_Gross_U
Investments (Summary Of Gross Unrealized Gains And Losses And Fair Values) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Amortized Cost Basis | $143,161 | $87,151 |
Available-for-sale Securities, Gross Unrealized Gains | 17,619 | 3,400 |
Available-for-sale Securities, Gross Unrealized Losses | -114 | -534 |
Available-for-sale Securities | 160,666 | 90,017 |
Equity Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Amortized Cost Basis | 20,610 | 20,610 |
Available-for-sale Securities, Gross Unrealized Gains | 17,489 | 3,251 |
Available-for-sale Securities, Gross Unrealized Losses | 0 | -367 |
Available-for-sale Securities | 38,099 | 23,494 |
Debt Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Amortized Cost Basis | 122,551 | 66,541 |
Available-for-sale Securities, Gross Unrealized Gains | 130 | 149 |
Available-for-sale Securities, Gross Unrealized Losses | -114 | -167 |
Available-for-sale Securities | $122,567 | $66,523 |
Investments_Investments_Narrat
Investments Investments (Narrative) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Investments [Abstract] | ' | ' |
Restricted Investments, Current | $8.20 | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 59.4 | 31.8 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | $1.30 | $2.20 |
Fair_Value_Measurements_Schedu
Fair Value Measurements (Schedule Of Fair Values Of Financial Instruments Measured On Recurring Basis) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Total assets | $298,682 | $246,340 |
Money Market Funds [Member] | ' | ' |
Cash | 94,278 | 99,351 |
Bank Time Deposits [Member] | ' | ' |
Cash | 22,463 | 22,093 |
Commercial Paper [Member] | ' | ' |
Cash | 6,998 | 0 |
Certificates of Deposit [Member] | ' | ' |
Investments | 14,263 | 34,876 |
Equity Securities [Member] | ' | ' |
Investments | 38,113 | 23,497 |
Debt Securities Issued By The U.S Treasury And Other U.S Government Corporations And Agencies [Member] | ' | ' |
Investments | 30,359 | 6,450 |
Debt Securities Issued By States Of The United States And Political Subdivisions Of The States [Member] | ' | ' |
Investments | 4,321 | 11,658 |
Debt Securities Issued By Foreign Governments [Member] | ' | ' |
Investments | 1,998 | 3,589 |
Corporate Debt Securities [Member] | ' | ' |
Investments | 85,889 | 44,826 |
Level 1 [Member] | ' | ' |
Total assets | 298,682 | 246,340 |
Level 1 [Member] | Money Market Funds [Member] | ' | ' |
Cash | 94,278 | 99,351 |
Level 1 [Member] | Bank Time Deposits [Member] | ' | ' |
Cash | 22,463 | 22,093 |
Level 1 [Member] | Commercial Paper [Member] | ' | ' |
Cash | 6,998 | 0 |
Level 1 [Member] | Certificates of Deposit [Member] | ' | ' |
Investments | 14,263 | 34,876 |
Level 1 [Member] | Equity Securities [Member] | ' | ' |
Investments | 38,113 | 23,497 |
Level 1 [Member] | Debt Securities Issued By The U.S Treasury And Other U.S Government Corporations And Agencies [Member] | ' | ' |
Investments | 30,359 | 6,450 |
Level 1 [Member] | Debt Securities Issued By States Of The United States And Political Subdivisions Of The States [Member] | ' | ' |
Investments | 4,321 | 11,658 |
Level 1 [Member] | Debt Securities Issued By Foreign Governments [Member] | ' | ' |
Investments | 1,998 | 3,589 |
Level 1 [Member] | Corporate Debt Securities [Member] | ' | ' |
Investments | 85,889 | 44,826 |
Level 2 [Member] | ' | ' |
Total assets | 0 | 0 |
Level 2 [Member] | Money Market Funds [Member] | ' | ' |
Cash | 0 | 0 |
Level 2 [Member] | Bank Time Deposits [Member] | ' | ' |
Cash | 0 | 0 |
Level 2 [Member] | Commercial Paper [Member] | ' | ' |
Cash | 0 | 0 |
Level 2 [Member] | Certificates of Deposit [Member] | ' | ' |
Investments | 0 | 0 |
Level 2 [Member] | Equity Securities [Member] | ' | ' |
Investments | 0 | 0 |
Level 2 [Member] | Debt Securities Issued By The U.S Treasury And Other U.S Government Corporations And Agencies [Member] | ' | ' |
Investments | 0 | 0 |
Level 2 [Member] | Debt Securities Issued By States Of The United States And Political Subdivisions Of The States [Member] | ' | ' |
Investments | 0 | 0 |
Level 2 [Member] | Debt Securities Issued By Foreign Governments [Member] | ' | ' |
Investments | 0 | 0 |
Level 2 [Member] | Corporate Debt Securities [Member] | ' | ' |
Investments | 0 | 0 |
Level 3 [Member] | ' | ' |
Total assets | 0 | 0 |
Level 3 [Member] | Money Market Funds [Member] | ' | ' |
Cash | 0 | 0 |
Level 3 [Member] | Bank Time Deposits [Member] | ' | ' |
Cash | 0 | 0 |
Level 3 [Member] | Commercial Paper [Member] | ' | ' |
Cash | 0 | 0 |
Level 3 [Member] | Certificates of Deposit [Member] | ' | ' |
Investments | 0 | 0 |
Level 3 [Member] | Equity Securities [Member] | ' | ' |
Investments | 0 | 0 |
Level 3 [Member] | Debt Securities Issued By The U.S Treasury And Other U.S Government Corporations And Agencies [Member] | ' | ' |
Investments | 0 | 0 |
Level 3 [Member] | Debt Securities Issued By States Of The United States And Political Subdivisions Of The States [Member] | ' | ' |
Investments | 0 | 0 |
Level 3 [Member] | Debt Securities Issued By Foreign Governments [Member] | ' | ' |
Investments | 0 | 0 |
Level 3 [Member] | Corporate Debt Securities [Member] | ' | ' |
Investments | $0 | $0 |
Fair_Value_Measurements_Fair_V
Fair Value Measurements Fair Value Measurements (Narrative) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value Disclosures [Abstract] | ' | ' |
Long-term Debt | $245,548 | $245,194 |
Long-term Debt, Fair Value | $274,000 | $275,458 |
Goodwill_And_Intangible_Assets2
Goodwill And Intangible Assets (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Goodwill | $441,687,000 | ' | $441,687,000 | ' | $407,825,000 |
Amortization expense | 7,500,000 | 3,900,000 | 21,600,000 | 11,000,000 | ' |
Estimated future amortization expense in year 2013 | 30,000,000 | ' | 30,000,000 | ' | ' |
Estimated future amortization expense in year 2014 | 26,200,000 | ' | 26,200,000 | ' | ' |
Estimated future amortization expense in year 2015 | 24,000,000 | ' | 24,000,000 | ' | ' |
Estimated future amortization expense in year 2016 | 22,100,000 | ' | 22,100,000 | ' | ' |
Estimated future amortization expense in year 2017 | 19,700,000 | ' | 19,700,000 | ' | ' |
Estimated future amortization expense thereafter | 63,600,000 | ' | 63,600,000 | ' | ' |
Minimum [Member] | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Identifiable intangible assets minimum useful life (years) | ' | ' | '1 year | ' | ' |
Maximum [Member] | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Identifiable intangible assets minimum useful life (years) | ' | ' | '20 years | ' | ' |
Business Cloud Services Segment [Member] | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Goodwill | 309,800,000 | ' | 309,800,000 | ' | ' |
Digital Media Segment [Member] | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Goodwill | $131,900,000 | ' | $131,900,000 | ' | ' |
Goodwill_And_Intangible_Assets3
Goodwill And Intangible Assets (Changes In Carrying Amounts Of Goodwill And Other Intangible Assets) (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Goodwill and Intangible Assets Disclosure [Abstract] | ' |
Balance as of January 1, 2013 | $407,825 |
Goodwill, Acquired During Period | 31,420 |
Purchase Accounting Adjustments | 2,329 |
Foreign Exchange Translation | 113 |
Balance as of September 30, 2013 | $441,687 |
Goodwill_And_Intangible_Assets4
Goodwill And Intangible Assets (Indefinite Intangible Assets) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Intangible assets | $32,811 | $32,812 |
Trade Names [Member] | ' | ' |
Intangible assets | 27,379 | 27,379 |
Other Intangible Assets [Member] | ' | ' |
Intangible assets | $5,432 | $5,433 |
Goodwill_And_Intangible_Assets5
Goodwill And Intangible Assets (Schedule Of Intangible Assets Subject To Amortization) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Historical Cost | $247,350 | $194,100 |
Accumulated Amortization | -83,350 | -61,596 |
Net | 164,000 | 132,504 |
Trade Names [Member] | ' | ' |
Historical Cost | 66,852 | 50,257 |
Accumulated Amortization | -9,812 | -6,227 |
Net | 57,040 | 44,030 |
Weighted-Average Amortization Period, years | '17 years 1 month 6 days | '17 years 8 months 12 days |
Patents And Patent Licenses [Member] | ' | ' |
Historical Cost | 47,173 | 44,048 |
Accumulated Amortization | -28,470 | -24,719 |
Net | 18,703 | 19,329 |
Weighted-Average Amortization Period, years | '7 years 9 months 18 days | '8 years 2 months 12 days |
Customer Relationships [Member] | ' | ' |
Historical Cost | 117,231 | 86,473 |
Accumulated Amortization | -33,208 | -21,750 |
Net | 84,023 | 64,723 |
Weighted-Average Amortization Period, years | '7 years 1 month 6 days | '7 years |
Other Purchased Intangibles [Member] | ' | ' |
Historical Cost | 16,094 | 13,322 |
Accumulated Amortization | -11,860 | -8,900 |
Net | $4,234 | $4,422 |
Weighted-Average Amortization Period, years | '4 years | '4 years 4 months 24 days |
Long_Term_Debt_Details
Long Term Debt (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Jul. 26, 2012 | |
Long-term Debt, Unclassified [Abstract] | ' | ' | ' | ' |
Debt Instrument, Issuance Date | 26-Jul-12 | ' | ' | ' |
Debt Instrument, Face Amount | $250,000,000 | $250,000,000 | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | ' | ' |
Debt Instrument, Maturity Date | 1-Aug-20 | ' | ' | ' |
Proceeds from Debt, Net of Issuance Costs | 245,000,000 | ' | ' | ' |
Debt Instrument, Unamortized Discount | 4,500,000 | 4,500,000 | ' | 5,000,000 |
Debt Issuance Cost | 1,300,000 | ' | ' | ' |
Debt Instrument, Frequency of Periodic Payment | 'semi-annually | ' | ' | ' |
Debt Instrument, Date of First Required Payment | 1-Feb-13 | ' | ' | ' |
Debt Instrument, Call Date, Earliest | 1-Aug-16 | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Long-term Debt | 245,548,000 | 245,548,000 | 245,194,000 | ' |
Long-term Debt, Current Maturities | 0 | 0 | ' | ' |
Total long-term debt, less current portion | 245,548,000 | 245,548,000 | ' | ' |
Long-term Debt, Fair Value | 274,000,000 | 274,000,000 | 275,458,000 | ' |
Interest Paid | ' | $20,300,000 | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2007 | Dec. 31, 2006 | Dec. 31, 2005 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2011 | Dec. 31, 2010 |
California Franchise Tax Board [Member] | California Franchise Tax Board [Member] | California Franchise Tax Board [Member] | California Franchise Tax Board [Member] | California Franchise Tax Board [Member] | California Franchise Tax Board [Member] | Internal Revenue Service (IRS) [Member] | Internal Revenue Service (IRS) [Member] | Internal Revenue Service (IRS) [Member] | Canada Revenue Agency [Member] | Canada Revenue Agency [Member] | |||||
Income Taxes [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
U.S. federal statutory rate | ' | 35.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effective income tax rate | 20.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income before income taxes, domestic operations | ' | $56 | $38.50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income before income taxes, foreign operations | ' | 54.8 | 78.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liabilities for uncertain income tax positions | 41.5 | 41.5 | ' | 37.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash paid for income taxes | ' | 23.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Prepaid tax payments | $14.10 | $14.10 | ' | $9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Tax Examination, Year under Examination | ' | ' | ' | ' | '2011 | '2010 | '2009 | '2007 | '2006 | '2005 | '2011 | '2010 | '2009 | '2011 | '2010 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | |||
Nov. 05, 2013 | Aug. 07, 2013 | 7-May-13 | Feb. 13, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
2012 Repurchase Program [Member] | ||||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' |
Maximum number of shares authorized to be repurchased | ' | ' | ' | ' | ' | 5,000,000 |
Stock Repurchased | ' | ' | ' | ' | 43,435 | 0 |
Dividend amount to be paid, per common share | $0.26 | $0.25 | $0.24 | $0.23 | ' | ' |
Dividend, declaration date | 5-Nov-13 | 7-Aug-13 | 7-May-13 | 12-Feb-13 | ' | ' |
Dividend, date to be paid | 4-Dec-13 | 3-Sep-13 | 4-Jun-13 | 4-Mar-13 | ' | ' |
Dividend, date of record | 18-Nov-13 | 19-Aug-13 | 20-May-13 | 25-Feb-13 | ' | ' |
Stock_Options_And_Employee_Sto2
Stock Options And Employee Stock Purchase Plan (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | ' | ' | ' | '5 years |
Allocated Share-based Compensation Expense | $2,425,000 | $2,403,000 | $7,108,000 | $6,851,000 | ' |
Weighted-average grant date fair value of options granted | ' | ' | $0 | $7.92 | ' |
Number of options outstanding | 1,182,688 | ' | 1,182,688 | ' | 1,765,461 |
Number of options granted | ' | ' | 0 | ' | ' |
Cash received upon the issuance of common stock | ' | ' | 161,000 | 109,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | ' | ' | 11,600,000 | 4,000,000 | ' |
Stock Options [Member] | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | 2,600,000 | ' | 2,600,000 | ' | 5,000,000 |
Restricted Stock And Restricted Stock Unit (RSU) [Member] | ' | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | 1,800,000 | 1,600,000 | 5,000,000 | 3,700,000 | ' |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | 18,500,000 | ' | 18,500,000 | ' | 16,000,000 |
Restricted Stock [Member] | ' | ' | ' | ' | ' |
Shares, Granted | ' | ' | 178,430 | ' | ' |
Weighted-Average Grant-Date Fair Value, Granted | ' | ' | $38.40 | ' | ' |
Number of stocks outstanding | 671,164 | ' | 671,164 | ' | 828,475 |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' | ' | ' |
Shares, Granted | ' | ' | 26,675 | ' | ' |
Number of stocks outstanding | 99,025 | ' | 99,025 | ' | 115,466 |
1997 Stock Option Plan [Member] | ' | ' | ' | ' | ' |
Additional shares authorized for issuance | ' | ' | 840,000 | ' | ' |
Maximum issuance of common stock | 12,000,000 | ' | 12,000,000 | ' | ' |
1997 Stock Option Plan [Member] | Stock Options [Member] | ' | ' | ' | ' | ' |
Number of options outstanding | 509,367 | ' | 509,367 | ' | ' |
1997 Stock Option Plan [Member] | Restricted Stock [Member] | ' | ' | ' | ' | ' |
Number of stocks outstanding | 0 | ' | 0 | ' | ' |
2007 Stock Plan [Member] | ' | ' | ' | ' | ' |
Number of options outstanding | 673,321 | ' | 673,321 | ' | ' |
Number of stocks outstanding | 99,025 | ' | 99,025 | ' | ' |
Maximum issuance of common stock | 4,500,000 | ' | 4,500,000 | ' | ' |
Ziff Davis, Inc. 2012 Equity Incentive Plan [Member] | ' | ' | ' | ' | ' |
Shares, Granted | ' | ' | ' | ' | 13,035,000 |
Maximum issuance of common stock | 15,000,000 | ' | 15,000,000 | ' | ' |
Employee Stock Purchase Plan [Member] | Common Stock [Member] | ' | ' | ' | ' | ' |
Market value of common stock on the date of grant for incentive stock options | ' | ' | 95.00% | ' | ' |
Maximum earnings withheld by the employees | 15.00% | ' | 15.00% | ' | ' |
Number of shares purchased under the plan | ' | ' | 4,416 | 4,115 | ' |
Cash received upon the issuance of common stock | ' | ' | $161,000 | $109,000 | ' |
Number of shares available for issuance | 1,641,185 | ' | 1,641,185 | ' | ' |
Minimum [Member] | ' | ' | ' | ' | ' |
Market value of common stock on the date of grant for incentive stock options | ' | ' | 85.00% | ' | ' |
Stock_Options_And_Employee_Sto3
Stock Options And Employee Stock Purchase Plan (Stock Options) (Details) (USD $) | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | |
Stock Options [Member] | Stock Options [Member] | |||
Number of Shares, Outstanding Beginning of Period | 1,765,461 | ' | ' | ' |
Number of options granted | 0 | ' | ' | ' |
Number of Shares, Exercised | -562,173 | ' | ' | ' |
Number of Shares, Canceled | -20,600 | ' | ' | ' |
Number of Shares, Outstanding Ending of Period | 1,182,688 | ' | ' | ' |
Number of Shares, Exercisable | 836,229 | ' | ' | ' |
Number of Shares, Vested and expected to vest | 1,127,602 | ' | ' | ' |
Weighted-Average Exercise Price, Outstanding Beginning of Period | $22.08 | ' | ' | ' |
Weighted-Average Exercise Price, Granted | $0 | ' | ' | ' |
Weighted-Average Exercise Price, Exercised | $24.04 | ' | ' | ' |
Weighted-Average Exercise Price, Canceled | $21.79 | ' | ' | ' |
Weighted-Average Exercise Price, Outstanding Ending of Period | $21.16 | ' | ' | ' |
Weighted-Average Exercise Price, Exercisable | $20.25 | ' | ' | ' |
Weighted-Average Exercise Price, Vested and expected to vest | $20.94 | ' | ' | ' |
Weighted-Average Remaining Contractual Term, Outstanding (in years) | '4 years 3 months 11 days | ' | ' | ' |
Weighted-Average Remaining Contractual Term, Exercisable (in years) | '3 years 3 months 11 days | ' | ' | ' |
Weighted-Average Remaining Contractual Term, Vested and expected to vest (in years) | '4 years 1 month 17 days | ' | ' | ' |
Aggregate Intrinsic Value, Outstanding | $33,542,013 | ' | ' | ' |
Aggregate Intrinsic Value, Exercisable | 24,476,289 | ' | ' | ' |
Aggregate Intrinsic Value, Vested and expected to vest | 32,231,627 | ' | ' | ' |
Aggregate intrinsic values of options exercised | 11,600,000 | 4,000,000 | ' | ' |
Unrecognized compensation cost related to non-vested awards granted | ' | ' | $2,600,000 | $5,000,000 |
Weighted-average period to recognize compensation cost (in years) | ' | ' | '1 year 8 months 1 day | ' |
Stock_Options_And_Employee_Sto4
Stock Options And Employee Stock Purchase Plan (Assumptions To Estimate Fair Value Of Stock Options) (Details) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' |
Estimated forfeiture rate | 15.72% | 14.68% |
Risk-free interest rate | ' | 0.91% |
Expected term (in years) | ' | '5 years 8 months 23 days |
Dividend yield | ' | 3.09% |
Expected volatility | ' | 41.00% |
Weighted-average volatility | ' | 41.00% |
Stock_Options_And_Employee_Sto5
Stock Options And Employee Stock Purchase Plan (Restricted Stock) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Compensation cost recognized | $2,425,000 | $2,403,000 | $7,108,000 | $6,851,000 | ' |
Allocated Share-based Compensation Expense | 2,425,000 | 2,403,000 | 7,108,000 | 6,851,000 | ' |
Restricted Stock And Restricted Stock Unit (RSU) [Member] | ' | ' | ' | ' | ' |
Compensation cost recognized | 1,800,000 | 1,600,000 | 5,000,000 | 3,700,000 | ' |
Allocated Share-based Compensation Expense | 1,800,000 | 1,600,000 | 5,000,000 | 3,700,000 | ' |
Unrecognized compensation cost related to non-vested awards granted | 18,500,000 | ' | 18,500,000 | ' | 16,000,000 |
Restricted Stock [Member] | ' | ' | ' | ' | ' |
Shares, Nonvested at January 1, 2013 | ' | ' | 828,475 | ' | ' |
Shares, Granted | ' | ' | 178,430 | ' | ' |
Shares, Vested | ' | ' | -291,841 | ' | ' |
Shares, Canceled | ' | ' | -43,900 | ' | ' |
Shares, Nonvested at September 30, 2013 | 671,164 | ' | 671,164 | ' | ' |
Weighted-Average Grant-Date Fair Value, Nonvested at January 1, 2013 | ' | ' | $23.08 | ' | ' |
Weighted-Average Grant-Date Fair Value, Granted | ' | ' | $38.40 | ' | ' |
Weighted-Average Grant-Date Fair Value, Vested | ' | ' | $21.33 | ' | ' |
Weighted-Average Grant-Date Fair Value, Canceled | ' | ' | $24.46 | ' | ' |
Weighted-Average Grant-Date Fair Value, Nonvested at September 30, 2013 | $27.82 | ' | $27.82 | ' | ' |
Weighted-average period to recognize compensation cost (in years) | ' | ' | '2 years 7 months 21 days | ' | ' |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' | ' | ' |
Shares, Nonvested at January 1, 2013 | ' | ' | 115,466 | ' | ' |
Shares, Granted | ' | ' | 26,675 | ' | ' |
Shares, Vested | ' | ' | -10,116 | ' | ' |
Shares, Canceled | ' | ' | -33,000 | ' | ' |
Shares, Nonvested at September 30, 2013 | 99,025 | ' | 99,025 | ' | ' |
Share Based Compensation Equity Awards Other Than Options Expected To Vest Shares | ' | ' | 67,640 | ' | ' |
Weighted-average period to recognize compensation cost (in years) | ' | ' | '3 years 8 months 19 days | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms | ' | ' | '2 years 3 months 11 days | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Expected To Vest Weighted Average Remaining Contractual Term | ' | ' | '2 years 0 months 4 days | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Expected To Vest Intrinsic Value | 3,349,522 | ' | 3,349,522 | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Outstanding, Aggregate Intrinsic Value | $4,903,718 | ' | $4,903,718 | ' | ' |
Stock_Options_And_Employee_Sto6
Stock Options And Employee Stock Purchase Plan (Allocation Of Share-Based Compensation Expense) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Allocated Share-based Compensation Expense | $2,425 | $2,403 | $7,108 | $6,851 |
Cost Of Revenues [Member] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | 162 | 199 | 581 | 633 |
Sales And Marketing [Member] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | 465 | 390 | 1,315 | 1,117 |
Research, Development And Engineering [Member] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | 103 | 111 | 311 | 344 |
General And Administrative [Member] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | $1,695 | $1,703 | $4,901 | $4,757 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Earnings Per Share Reconciliation [Abstract] | ' | ' | ' | ' |
Net income attributable to j2 Global, Inc. common shareholders | $27,806 | $31,650 | $86,768 | $91,377 |
Net earnings available to participating securities | -416 | -513 | -1,455 | -1,512 |
Net earnings available to common shareholders | $27,390 | $31,137 | $85,313 | $89,865 |
Weighted-average outstanding shares of common stock - basic | 45,729,171 | 45,002,565 | 45,441,265 | 45,590,160 |
Dilutive effect of equity incentive plans | 562,460 | 337,546 | 625,339 | 307,229 |
Weighted-average outstanding shares of common stock - diluted | 46,291,631 | 45,340,111 | 46,066,604 | 45,897,389 |
Basic | $0.60 | $0.69 | $1.88 | $1.97 |
Diluted | $0.59 | $0.69 | $1.85 | $1.96 |
Share options excluded from the computation of diluted earnings per share | 0 | 420,319 | 0 | 536,559 |
Geographic_Information_Details
Geographic Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Total revenues | $127,788 | $93,246 | $382,766 | $269,363 | ' |
United States | 194,143 | ' | 194,143 | ' | 152,103 |
Total long-lived assets | 194,143 | ' | 194,143 | ' | 152,103 |
UNITED STATES | ' | ' | ' | ' | ' |
Total revenues | 90,447 | 58,194 | 270,444 | 167,211 | ' |
United States | 146,039 | ' | 146,039 | ' | 105,549 |
Total long-lived assets | 146,039 | ' | 146,039 | ' | 105,549 |
CANADA | ' | ' | ' | ' | ' |
Total revenues | 17,992 | 20,028 | 55,137 | 60,616 | ' |
IRELAND | ' | ' | ' | ' | ' |
Total revenues | 10,417 | 10,124 | 30,822 | 30,908 | ' |
All Other Countries [Member] | ' | ' | ' | ' | ' |
Total revenues | 8,932 | 4,900 | 26,363 | 10,628 | ' |
United States | 48,104 | ' | 48,104 | ' | 46,554 |
Total long-lived assets | $48,104 | ' | $48,104 | ' | $46,554 |
Segment_Information_Reportable
Segment Information Reportable Segment Information (Reconciliation of Total Segment Operating Income to Consolidated Operating Income) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total revenues | $127,788 | $93,246 | $382,766 | $269,363 |
Operating Income (Loss) | 39,308 | 42,277 | 124,902 | 119,914 |
Global Operating Costs | 7,449 | 6,589 | 22,283 | 20,386 |
Business Cloud Services Segment [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total revenues | 94,391 | 93,246 | 293,898 | 269,363 |
Direct Costs By Segment | 48,504 | 44,379 | 143,075 | 129,063 |
Operating Income (Loss) | 45,886 | 48,866 | 150,823 | 140,300 |
Digital Media Segment [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total revenues | 33,522 | 0 | 89,207 | 0 |
Direct Costs By Segment | 32,652 | 0 | 92,845 | 0 |
Operating Income (Loss) | 871 | 0 | -3,638 | 0 |
Intersegment Elimination [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total revenues | -125 | 0 | -339 | 0 |
Operating Segments [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating Income (Loss) | $46,757 | $48,866 | $147,185 | $140,300 |
Segment_Information_Reportable1
Segment Information Reportable Segment Information (Total Assets, Capital Expenditures, Depreciation And Amortization) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ' | ' | ' | ' | ' |
Assets | $1,138,090 | ' | $1,138,090 | ' | $995,170 |
Property, Plant and Equipment, Additions | ' | ' | 11,115 | 3,746 | ' |
Depreciation, Depletion and Amortization, Nonproduction | 10,183 | 5,378 | 28,424 | 15,555 | ' |
Business Cloud Services Segment [Member] | ' | ' | ' | ' | ' |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ' | ' | ' | ' | ' |
Assets | 896,847 | ' | 896,847 | ' | 788,828 |
Property, Plant and Equipment, Additions | ' | ' | 5,573 | 3,512 | ' |
Depreciation, Depletion and Amortization, Nonproduction | 6,248 | 5,245 | 17,609 | 15,179 | ' |
Digital Media Segment [Member] | ' | ' | ' | ' | ' |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ' | ' | ' | ' | ' |
Assets | 306,750 | ' | 306,750 | ' | 204,244 |
Property, Plant and Equipment, Additions | ' | ' | 5,067 | 0 | ' |
Depreciation, Depletion and Amortization, Nonproduction | 3,767 | 0 | 10,335 | 0 | ' |
Operating Segments [Member] | ' | ' | ' | ' | ' |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ' | ' | ' | ' | ' |
Assets | 1,203,597 | ' | 1,203,597 | ' | 993,072 |
Property, Plant and Equipment, Additions | ' | ' | 10,640 | 3,512 | ' |
Depreciation, Depletion and Amortization, Nonproduction | 10,015 | 5,245 | 27,944 | 15,179 | ' |
Corporate [Member] | ' | ' | ' | ' | ' |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ' | ' | ' | ' | ' |
Assets | 1,993 | ' | 1,993 | ' | 2,098 |
Property, Plant and Equipment, Additions | ' | ' | 475 | 234 | ' |
Depreciation, Depletion and Amortization, Nonproduction | 168 | 133 | 480 | 376 | ' |
Intersegment Elimination [Member] | ' | ' | ' | ' | ' |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ' | ' | ' | ' | ' |
Notes Receivable, Related Parties, Noncurrent | ($67,500) | ' | ($67,500) | ' | $0 |
Unrestricted_Subsidiaries_Unre
Unrestricted Subsidiaries Unrestricted Subsidiaries (Financial Position) (Details) (USD $) | Sep. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | |||||
Cash and cash equivalents | $199,181 | ' | $218,680 | $287,514 | $139,359 |
Accounts receivable | 64,279 | ' | 37,285 | ' | ' |
Prepaid expenses and other current assets | 22,779 | ' | 15,388 | ' | ' |
Deferred income taxes | 2,729 | ' | 1,092 | ' | ' |
Assets, Current | 397,011 | ' | 377,499 | ' | ' |
Property and equipment, net | 30,143 | ' | 19,599 | ' | ' |
Tradenames, net | 84,419 | ' | 71,409 | ' | ' |
Customer Relationships, Net | 84,023 | ' | 64,723 | ' | ' |
Goodwill | 441,687 | ' | 407,825 | ' | ' |
Other purchased intangibles, net | 9,666 | ' | 9,855 | ' | ' |
Deferred income taxes | 2,130 | ' | 1,852 | ' | ' |
Other assets | 3,409 | ' | 3,238 | ' | ' |
Assets | 1,138,090 | ' | 995,170 | ' | ' |
Accounts payable and accrued expenses | 68,430 | ' | 39,874 | ' | ' |
Income taxes payable | 1,736 | ' | 3,004 | ' | ' |
Deferred revenue, current | 35,675 | ' | 30,493 | ' | ' |
Liabilities, Current | 116,474 | ' | 78,927 | ' | ' |
Deferred income taxes | 41,635 | ' | 32,393 | ' | ' |
Other long-term liabilities | 1,787 | ' | 1,557 | ' | ' |
Mandatorily redeemable financial instrument | 9,760 | ' | 8,740 | ' | ' |
Liabilities | 463,255 | ' | 400,575 | ' | ' |
Commitments and contingencies | 0 | ' | 0 | ' | ' |
Common Stock, Value, Issued | 459 | ' | 451 | ' | ' |
Additional paid-in capital | 191,287 | ' | 169,542 | ' | ' |
Retained Earnings (Accumulated Deficit) | 475,979 | ' | 424,790 | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax | 8,646 | 2,797 | -88 | ' | ' |
Stockholders' Equity Attributable to Parent | 676,371 | ' | 594,695 | ' | ' |
Liabilities and Equity | 1,138,090 | ' | 995,170 | ' | ' |
Ziff Davis, Inc [Member] | ' | ' | ' | ' | ' |
Cash and cash equivalents | 14,910 | ' | ' | ' | ' |
Accounts receivable | 45,773 | ' | ' | ' | ' |
Prepaid expenses and other current assets | 4,599 | ' | ' | ' | ' |
Deferred income taxes | 3,197 | ' | ' | ' | ' |
Assets, Current | 68,479 | ' | ' | ' | ' |
Property and equipment, net | 12,777 | ' | ' | ' | ' |
Tradenames, net | 50,620 | ' | ' | ' | ' |
Customer Relationships, Net | 39,658 | ' | ' | ' | ' |
Goodwill | 131,877 | ' | ' | ' | ' |
Other purchased intangibles, net | 1,828 | ' | ' | ' | ' |
Deferred income taxes | 0 | ' | ' | ' | ' |
Other assets | 1,511 | ' | ' | ' | ' |
Assets | 306,750 | ' | ' | ' | ' |
Accounts payable and accrued expenses | 30,268 | ' | ' | ' | ' |
Income taxes payable | 1,578 | ' | ' | ' | ' |
Deferred revenue, current | 2,294 | ' | ' | ' | ' |
Liabilities, Current | 34,140 | ' | ' | ' | ' |
Notes Payable, Related Parties, Noncurrent | 67,500 | ' | ' | ' | ' |
Interest Payable, Noncurrent | 6,351 | ' | ' | ' | ' |
Deferred income taxes | 30,550 | ' | ' | ' | ' |
Other long-term liabilities | 16 | ' | ' | ' | ' |
Mandatorily redeemable financial instrument | 199,611 | ' | ' | ' | ' |
Liabilities | 338,168 | ' | ' | ' | ' |
Commitments and contingencies | 0 | ' | ' | ' | ' |
Common Stock, Value, Issued | 0 | ' | ' | ' | ' |
Additional paid-in capital | -25,064 | ' | ' | ' | ' |
Retained Earnings (Accumulated Deficit) | -6,325 | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax | -29 | ' | ' | ' | ' |
Stockholders' Equity Attributable to Parent | -31,418 | ' | ' | ' | ' |
Liabilities and Equity | $306,750 | ' | ' | ' | ' |
Unrestricted_Subsidiaries_Unre1
Unrestricted Subsidiaries Unrestricted Subsidiaries (Results of Operations) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Total revenues | $127,788 | $93,246 | $382,766 | $269,363 |
Cost of Goods Sold, Subscription | 21,801 | 16,303 | 64,715 | 48,354 |
Gross Profit | 105,987 | 76,943 | 318,051 | 221,009 |
Selling and Marketing Expense | 34,787 | 15,190 | 99,638 | 43,910 |
Research and Development Expense | 6,000 | 4,692 | 19,134 | 13,798 |
General and Administrative Expense | 25,892 | 14,784 | 74,377 | 43,387 |
Operating Expenses | 66,679 | 34,666 | 193,149 | 101,095 |
Operating Income (Loss) | 39,308 | 42,277 | 124,902 | 119,914 |
Interest and other income (expense), net | -4,576 | -2,747 | -14,109 | -2,657 |
Income before income taxes | 34,732 | 39,530 | 110,793 | 117,257 |
Income Tax Expense (Benefit) | 7,105 | 7,880 | 24,428 | 25,880 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 27,627 | 31,650 | 86,365 | 91,377 |
Ziff Davis, Inc [Member] | ' | ' | ' | ' |
Total revenues | 33,522 | ' | 89,207 | ' |
Cost of Goods Sold, Subscription | 4,398 | ' | 12,682 | ' |
Gross Profit | 29,124 | ' | 76,525 | ' |
Selling and Marketing Expense | 18,085 | ' | 49,049 | ' |
Research and Development Expense | 943 | ' | 4,401 | ' |
General and Administrative Expense | 9,225 | ' | 26,713 | ' |
Operating Expenses | 28,253 | ' | 80,163 | ' |
Operating Income (Loss) | 871 | ' | -3,638 | ' |
Interest and other income (expense), net | -2,911 | ' | -6,435 | ' |
Income before income taxes | -2,040 | ' | -10,073 | ' |
Income Tax Expense (Benefit) | 1,624 | ' | -1,836 | ' |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | ($3,664) | ' | ($8,237) | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income Roll Forward (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) Roll Forward [Line Items] | ' | ' | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | $11,071 | ' | $11,071 | ' | $6,812 | $1,811 |
Unrealized gain on available-for-sale investments, net of tax (benefit) | 4,247 | ' | 9,251 | ' | ' | ' |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | 1,590 | ' | -614 | ' | ' | ' |
Other Comprehensive Income Loss Arising During Period Total Net of Tax | 5,837 | ' | 8,637 | ' | ' | ' |
Foreign currency translation adjustment, net of tax (benefit) | 1,590 | 530 | -526 | 590 | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance | ' | ' | -88 | ' | 2,797 | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance | 8,646 | ' | 8,646 | ' | 2,797 | ' |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | 12 | ' | 9 | ' | ' | ' |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment Realized upon Sale or Liquidation, Net of Tax | 0 | ' | 88 | ' | ' | ' |
Other Comprehensive Income Loss Reclassification Adjustments Total Net of Tax | 12 | ' | 97 | ' | ' | ' |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | 4,259 | -1,515 | 9,260 | -1,365 | ' | ' |
Other Comprehensive Income (Loss), Net of Tax | 5,849 | -985 | 8,734 | -775 | ' | ' |
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | ($2,425) | ' | ($2,425) | ' | ($4,015) | ($1,899) |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Reclassification out of Accumulated Other Comprehensive Income (Loss)) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
ReclassificationOutOfAccumulatedOtherComprehensiveIncomeTableTextBlock [Line Items] | ' | ' | ' | ' |
Interest and other income (expense), net | ($4,576) | ($2,747) | ($14,109) | ($2,657) |
Income Tax Expense (Benefit) | 7,105 | 7,880 | 24,428 | 25,880 |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | 12 | ' | 9 | ' |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | 0 | ' | 88 | ' |
Other Comprehensive Income Loss Reclassification Adjustments Total Net of Tax | 12 | ' | 97 | ' |
Accumulated Translation Adjustment [Member] | ' | ' | ' | ' |
ReclassificationOutOfAccumulatedOtherComprehensiveIncomeTableTextBlock [Line Items] | ' | ' | ' | ' |
Interest and other income (expense), net | 0 | ' | 116 | ' |
Income Tax Expense (Benefit) | 0 | ' | -28 | ' |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ' | ' | ' | ' |
ReclassificationOutOfAccumulatedOtherComprehensiveIncomeTableTextBlock [Line Items] | ' | ' | ' | ' |
Interest and other income (expense), net | 18 | ' | 14 | ' |
Income Tax Expense (Benefit) | ($6) | ' | ($5) | ' |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 0 Months Ended | |||
Nov. 05, 2013 | Aug. 07, 2013 | 7-May-13 | Feb. 13, 2013 | |
Subsequent Events [Abstract] | ' | ' | ' | ' |
Dividends declared date | 5-Nov-13 | 7-Aug-13 | 7-May-13 | 12-Feb-13 |
Dividend amount to be paid, per common share | $0.26 | $0.25 | $0.24 | $0.23 |
Date dividend is payable | 4-Dec-13 | 3-Sep-13 | 4-Jun-13 | 4-Mar-13 |
Date shareholders must be on record for dividend | 18-Nov-13 | 19-Aug-13 | 20-May-13 | 25-Feb-13 |