Document_and_Entity_Informatio
Document and Entity Information Document | 3 Months Ended | |
Mar. 31, 2014 | 6-May-14 | |
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 | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 47,553,114 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $208,068 | $207,801 |
Short-term investments | 71,300 | 90,789 |
Accounts receivable, net of allowances of $3,714 and $4,105, respectively | 63,666 | 67,245 |
Prepaid expenses and other current assets | 24,343 | 20,064 |
Deferred income taxes | 2,110 | 3,126 |
Total current assets | 369,487 | 389,025 |
Long-term investments | 35,698 | 47,351 |
Property and equipment, net | 38,829 | 31,200 |
Tradenames, net | 82,034 | 83,108 |
Patent and patent licenses, net | 28,092 | 28,530 |
Customer relationships, net | 124,979 | 100,980 |
Goodwill | 483,255 | 457,422 |
Other purchased intangibles, net | 11,158 | 10,915 |
Deferred income taxes | 1,369 | 1,845 |
Other assets | 3,383 | 3,413 |
Total assets | 1,178,284 | 1,153,789 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' |
Accounts payable and accrued expenses | 54,084 | 69,570 |
Income taxes payable | 4,837 | 1,569 |
Deferred revenue, current | 49,606 | 36,326 |
Liability for uncertain tax positions | 5,711 | 5,535 |
Deferred income taxes | 344 | 1,892 |
Total current liabilities | 114,582 | 114,892 |
Long-term Debt | 245,796 | 245,670 |
Liability for uncertain tax positions | 38,504 | 38,329 |
Deferred income taxes | 34,703 | 35,833 |
Deferred revenue, non-current | 12,460 | 11,189 |
Other long-term liabilities | 3,873 | 1,458 |
Total liabilities | 449,918 | 447,371 |
Commitments and contingencies | 0 | 0 |
Common stock, $0.01 par value. Authorized 95,000,000; total issued and outstanding 46,680,714 and 45,105,076 shares, respectively | 467 | 461 |
Additional paid-in capital | 227,149 | 216,872 |
Retained Earnings (Accumulated Deficit) | 498,318 | 484,850 |
Accumulated other comprehensive loss | 2,432 | 4,235 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 728,366 | 706,418 |
Total liabilities and stockholders' equity | 1,178,284 | 1,153,789 |
Series A Preferred Stock [Member] | ' | ' |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' |
Preferred stock, $0.01 par value | 0 | 0 |
Series B Preferred Stock [Member] | ' | ' |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' |
Preferred stock, $0.01 par value | $0 | $0 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Allowance for doubtful accounts | $3,714 | $4,105 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 95,000,000 | 95,000,000 |
Common stock, shares issued | 46,680,714 | 46,105,076 |
Common stock, shares outstanding | 46,680,714 | 46,105,076 |
Preferred stock, par value | $0.01 | $0.01 |
Treasury Stock, shares | 0 | 0 |
Series A Preferred Stock [Member] | ' | ' |
Preferred stock, shares authorized | 6,000 | 6,000 |
Preferred stock, shares issued | 5,064 | 5,064 |
Preferred Stock, Shares Outstanding | 5,064 | 5,064 |
Series B Preferred Stock [Member] | ' | ' |
Preferred stock, shares authorized | 20,000 | 20,000 |
Preferred stock, shares issued | 4,155 | 4,155 |
Preferred Stock, Shares Outstanding | 4,155 | 4,155 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements Of Income (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenues: | ' | ' |
Total revenues | $134,124 | $113,617 |
Cost of revenues (including share-based compensation of $154 and $214 for the three months of 2014 and 2013, respectively) | 23,388 | 20,235 |
Gross profit | 110,736 | 93,382 |
Operating expenses: | ' | ' |
Sales and marketing (including share-based compensation of $491 and $418 for the three months of 2014 and 2013, respectively) | 32,959 | 29,638 |
Research, development and engineering (including share-based compensation of $140 and $106 for the three months of 2014 and 2013, respectively) | 7,213 | 6,746 |
General and administrative (including share-based compensation of $1,599 and $1,610 for the three months of 2014 and 2013, respectively) | 28,979 | 24,011 |
Total operating expenses | 69,151 | 60,395 |
Operating income | 41,585 | 32,987 |
Interest expense (income), net | 4,948 | 4,877 |
Other expense (income), net | -319 | -161 |
Income before income taxes | 36,956 | 28,271 |
Income Tax Expense (Benefit) | 8,191 | 5,500 |
Net income attributable to j2 Global, Inc. common shareholders | 28,765 | 22,922 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 28,765 | 22,771 |
Net Income (Loss) Attributable to Noncontrolling Interest | $0 | ($151) |
Net income per common share: | ' | ' |
Basic | $0.61 | $0.50 |
Diluted | $0.60 | $0.49 |
Weighted average shares outstanding: | ' | ' |
Basic | 46,365,158 | 45,160,140 |
Diluted | 46,765,732 | 45,668,167 |
Cash dividends paid per common share | $0.26 | $0.23 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements Of Income Condensed Consolidated Statements of Income (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Allocated Share-based Compensation Expense | $2,384 | $2,348 |
Cost of Sales [Member] | ' | ' |
Allocated Share-based Compensation Expense | 154 | 214 |
Selling and Marketing Expense [Member] | ' | ' |
Allocated Share-based Compensation Expense | 491 | 418 |
Research and Development Expense [Member] | ' | ' |
Allocated Share-based Compensation Expense | 140 | 106 |
General and Administrative Expense [Member] | ' | ' |
Allocated Share-based Compensation Expense | $1,599 | $1,610 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statement of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $28,765 | $22,771 |
Foreign currency translation adjustment, net of tax (benefit) of $201 and ($714) for the three months of 2014 and 2013, respectively | 837 | -1,753 |
Unrealized gain (loss) on available-for-sale investments, net of tax (benefit) of ($1,529) and $1,628 for the three months of 2014 and 2013, respectively | -2,640 | 2,821 |
Other Comprehensive Income (Loss), Net of Tax | -1,803 | 1,068 |
Comprehensive Income | 26,962 | 23,997 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 26,962 | 23,839 |
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | -151 |
Foreign currency translation adjustment attributable to noncontrolling Interest, net of tax (benefit) of $0 and ($6) for the three months of 2014 and 2013, respectively | $0 | ($7) |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statement of Comprehensive Income Condensed Consolidated Statement of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Foreign currency translation adjustment | $201 | ($714) |
Unrealized gain on available-for-sale investments | -1,529 | 1,628 |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax, Portion Attributable to Noncontrolling Interest | $0 | $0 |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statement Of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities: | ' | ' |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $28,765 | $22,771 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 13,137 | 8,762 |
Amortization of discount or premium of investments | 352 | 453 |
Amortization of financing costs and discounts | 162 | 150 |
Share-based compensation | 2,384 | 2,348 |
Excess tax benefits from share-based compensation | -4,082 | -280 |
Provision for doubtful accounts | 732 | 833 |
Deferred income taxes | -211 | -1,446 |
(Gain) loss on sale of available-for-sale investments | -40 | 0 |
Decrease (increase) in: | ' | ' |
Accounts receivable | 8,452 | 2,495 |
Prepaid expenses and other current assets | -1,657 | -139 |
Other assets | 147 | 357 |
(Decrease) increase in: | ' | ' |
Accounts payable and accrued expenses | -16,228 | 160 |
Income taxes payable | 4,723 | 2,138 |
Deferred revenue | 205 | 92 |
Liability for uncertain tax positions | 351 | 1,294 |
Other | 102 | 60 |
Net cash provided by operating activities | 37,294 | 40,048 |
Cash flows from investing activities: | ' | ' |
Maturity of certificates of deposit | 8,210 | 22,106 |
Purchase of certificates of deposit | 0 | -8,165 |
Sales of available-for-sale investments | 29,705 | 31,932 |
Purchase of available-for-sale investments | -11,213 | -35,244 |
Purchases of property and equipment | -2,936 | -1,933 |
Acquisition of businesses, net of cash received | -49,068 | -62,771 |
Purchases of intangible assets | -915 | -333 |
Net cash used in investing activities | -26,217 | -54,408 |
Cash flows from financing activities: | ' | ' |
Debt issuance costs | 0 | -47 |
Repurchases of common stock and restricted stock | -4,042 | -2,069 |
Issuance of common stock under employee stock purchase plan | 55 | 56 |
Exercise of stock options | 4,926 | 2,025 |
Dividends paid | -12,418 | -10,684 |
Excess tax benefits from share-based compensation | 4,082 | 280 |
Deferred payments for acquisitions | -3,314 | 0 |
Net cash used in financing activities | -10,711 | -10,439 |
Effect of exchange rate changes on cash and cash equivalents | -99 | -755 |
Net change in cash and cash equivalents | 267 | -25,554 |
Cash and cash equivalents | 208,068 | 193,126 |
Cash and cash equivalents at end of period | $208,068 | $193,126 |
Basis_Of_Presentation
Basis Of Presentation | 3 Months Ended |
Mar. 31, 2014 | |
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 intellectual property ("IP") to third parties. The Digital Media Division operates a portfolio of web properties providing technology, gaming and lifestyle content and an innovative data-driven platform connecting advertisers with visitors to those properties and to visitors of third party websites that are part of the Digital Media Division's advertising network. | |
The accompanying interim condensed consolidated financial statements include the accounts of j2 Global and its direct and indirect 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, 2013 included in our Annual Report on Form 10-K filed with the SEC on March 3, 2014. 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, including patented technology. 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 | |
As of March 31, 2014 and December 31, 2013, 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 primarily at major financial institutions within the United States, United Kingdom and Ireland, with cash and cash equivalents also held at financial institutions within several other countries, including Australia, Austria, Canada, China, France, Germany, Italy, Japan, New Zealand, the Netherlands and Poland. 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 March 31, 2014 and December 31, 2013, the Company’s cash and cash equivalents were maintained in accounts that are insured up to the limit determined by the applicable governmental agency. The Company'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 amount of the Company’s cash and cash equivalents held by these institutions which is not insured. | |
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 2014 presentation. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
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. This new guidance did not have a material impact on our financial statements. |
Business_Acquisition
Business Acquisition | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Business Combinations [Abstract] | ' | |||
Business Acquisition | ' | |||
Business Acquisitions | ||||
The Company completed the following acquisitions during the first three months of fiscal 2014, all within the Business Cloud Services segment, and paid the purchase price in cash in each transaction: (a) share purchase of City Numbers®, a Birmingham, UK-based worldwide provider of inbound local, national and international toll free phone numbers in over 80 countries; (b) share and asset purchase of Securstore®, an Iceland-based provider of cloud backup and recovery services for corporate and enterprise networks; (c) share purchase of Livedrive®, a UK-based provider of online backup with added file synchronization features for professionals and individuals; (d) asset purchase of Faxmate, a Brisbane, Australia-based provider of Internet fax; (e) share purchase of Critical Software Ltd., a UK-based email security and management company operating under the brand name iCriticalTM; and (f) other immaterial share and asset acquisitions. | ||||
The condensed consolidated statement of income, since the date of each acquisition, and balance sheet, as of March 31, 2014, reflect the results of operations of all 2014 acquisitions. For the three months ended March 31, 2014, these acquisitions contributed $4.5 million to the Company's revenues. Net income contributed by these acquisitions was not separately identifiable due to the Company's integration activities. Total consideration for these transactions was $70.6 million, net of cash acquired and including $18.9 million in assumed liabilities consisting primarily of deferred revenues, trade accounts payable, and other accrued liabilities. | ||||
The following table summarizes the allocation of the purchase consideration for these acquisitions (in thousands): | ||||
Asset | Valuation | |||
Accounts Receivable | $ | 5,427 | ||
Property and Equipment | 6,112 | |||
Other Assets | 1,000 | |||
Software | 2,246 | |||
Trade Names | 80 | |||
Customer Relationships | 29,469 | |||
Other Intangibles | 5 | |||
Goodwill | 26,291 | |||
Total | $ | 70,630 | ||
The initial accounting for these acquisitions is incomplete and subject to change, which may be significant. j2 Global has recorded provisional amounts for certain intangible assets (including trade names, software and customer relationships), preliminary working capital and related tax items. During the first quarter of 2014, the Company recorded final adjustments to the initial working capital related to a prior period Digital Media acquisition, which resulted in an increase to goodwill in the amount of $0.2 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 three months ended March 31, 2014 is $26.3 million, of which $0.7 million is expected to be deductible for income tax purposes. |
Investments
Investments | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
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): | ||||||||||||||||
March 31, | December 31, 2013 | |||||||||||||||
2014 | ||||||||||||||||
Due within 1 year | $ | 39,186 | $ | 46,339 | ||||||||||||
Due within more than 1 year but less than 5 years | 33,220 | 44,865 | ||||||||||||||
Due within more than 5 years but less than 10 years | — | — | ||||||||||||||
Due 10 years or after | 2,478 | 2,486 | ||||||||||||||
Total | $ | 74,884 | $ | 93,690 | ||||||||||||
The following table summarizes the Company’s investments designated as available-for-sale (in thousands): | ||||||||||||||||
March 31, | December 31, 2013 | |||||||||||||||
2014 | ||||||||||||||||
Available-for-sale | 100,766 | 123,737 | ||||||||||||||
Total | $ | 100,766 | $ | 123,737 | ||||||||||||
The following table summarizes the gross unrealized gains and losses and fair values for the Company's available-for-sale investments as of March 31, 2014 and December 31, 2013 aggregated by major security type (in thousands): | ||||||||||||||||
Amortized | Gross | Gross | Fair | |||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||
Gains | Losses | |||||||||||||||
March 31, 2014 | ||||||||||||||||
Debt Securities | $ | 74,767 | $ | 151 | $ | (34 | ) | $ | 74,884 | |||||||
Equity Securities | 20,610 | 5,508 | (236 | ) | 25,882 | |||||||||||
Total | $ | 95,377 | $ | 5,659 | $ | (270 | ) | $ | 100,766 | |||||||
December 31, 2013 | ||||||||||||||||
Debt Securities | $ | 93,569 | $ | 158 | $ | (37 | ) | $ | 93,690 | |||||||
Equity Securities | 20,610 | 9,558 | (121 | ) | 30,047 | |||||||||||
Total | $ | 114,179 | $ | 9,716 | $ | (158 | ) | $ | 123,737 | |||||||
At March 31, 2014, 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 March 31, 2014. At March 31, 2014, equity securities were recorded as available-for-sale and represent a strategic equity investment. At March 31, 2014, 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. | ||||||||||||||||
Investments in an unrealized loss position as of March 31, 2014 and December 31, 2013, but in a continuous unrealized loss position for less than 12 months had a fair value of $32.3 million and $37.3 million, respectively. Investments in a continuous unrealized loss position for 12 months and longer as of March 31, 2014 and December 31, 2013 had a fair value of zero and $2.0 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 | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
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 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 $245.8 million and $245.7 million, and the corresponding fair value was approximately $287.3 million and $283.3 million, at March 31, 2014 and December 31, 2013, 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): | ||||||||||||||||
March 31, 2014 | Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||
Cash equivalents: | ||||||||||||||||
Money market and other funds | $ | 66,811 | $ | — | $ | — | $ | 66,811 | ||||||||
Time deposits | 30,797 | — | — | 30,797 | ||||||||||||
Corporate commercial papers | 999 | — | — | 999 | ||||||||||||
Certificates of deposit | 6,233 | — | — | 6,233 | ||||||||||||
Equity securities | 25,882 | — | — | 25,882 | ||||||||||||
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 19,219 | — | — | 19,219 | ||||||||||||
Debt securities issued by states of the U.S. and political subdivisions of the states | 2,275 | — | — | 2,275 | ||||||||||||
Debt securities issued by foreign governments | 2,049 | — | — | 2,049 | ||||||||||||
Corporate debt securities | 51,340 | — | — | 51,340 | ||||||||||||
Total | $ | 205,605 | $ | — | $ | — | $ | 205,605 | ||||||||
December 31, 2013 | Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||
Cash equivalents: | ||||||||||||||||
Money market and other funds | $ | 101,232 | $ | — | $ | — | $ | 101,232 | ||||||||
Time deposits | 22,773 | — | — | 22,773 | ||||||||||||
Certificates of deposit | 14,402 | — | — | 14,402 | ||||||||||||
Equity securities | 30,047 | — | — | 30,047 | ||||||||||||
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 23,702 | — | — | 23,702 | ||||||||||||
Debt securities issued by states of the U.S. and political subdivisions of the states | 3,296 | — | — | 3,296 | ||||||||||||
Corporate debt securities | 66,692 | — | — | 66,692 | ||||||||||||
Total | $ | 262,144 | $ | — | $ | — | $ | 262,144 | ||||||||
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 | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
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 three months ended March 31, 2014 are as follows (in thousands): | ||||||||||||||
Balance as of January 1, 2014 | $ | 457,422 | ||||||||||||
Goodwill acquired (Note 3) | 26,291 | |||||||||||||
Purchase accounting adjustments | (981 | ) | ||||||||||||
Foreign exchange translation | 523 | |||||||||||||
Balance as of March 31, 2014 | $ | 483,255 | ||||||||||||
The Company's goodwill balance was $483.3 million as of March 31, 2014, of which $342.9 million and $140.4 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 March 31, 2014 and December 31, 2013 as follows (in thousands): | ||||||||||||||
Intangible Assets with Indefinite Lives: | ||||||||||||||
March 31, | December 31, | |||||||||||||
2014 | 2013 | |||||||||||||
Trade name | $ | 27,379 | $ | 27,379 | ||||||||||
Other | 5,432 | 5,432 | ||||||||||||
Total | $ | 32,811 | $ | 32,811 | ||||||||||
Intangible Assets Subject to Amortization: | ||||||||||||||
As of March 31, 2014, intangible assets subject to amortization relate primarily to the following (in thousands): | ||||||||||||||
Weighted-Average | Historical | Accumulated | Net | |||||||||||
Amortization | Cost | Amortization | ||||||||||||
Period | ||||||||||||||
Tradenames | 16.7 years | $ | 67,073 | $ | (12,418 | ) | $ | 54,655 | ||||||
Patent and patent licenses | 7.9 years | 59,816 | (31,724 | ) | 28,092 | |||||||||
Customer relationships | 8.9 years | 169,853 | (44,874 | ) | 124,979 | |||||||||
Other purchased intangibles | 5.3 years | 18,906 | (13,180 | ) | 5,726 | |||||||||
Total | $ | 315,648 | $ | (102,196 | ) | $ | 213,452 | |||||||
As of December 31, 2013, intangible assets subject to amortization relate primarily to the following (in thousands): | ||||||||||||||
Weighted-Average | Historical | Accumulated | Net | |||||||||||
Amortization | Cost | Amortization | ||||||||||||
Period | ||||||||||||||
Tradenames | 17.0 years | $ | 66,911 | $ | (11,182 | ) | $ | 55,729 | ||||||
Patent and patent licenses | 8.1 years | 58,446 | (29,916 | ) | 28,530 | |||||||||
Customer relationships | 8.1 years | 139,362 | (38,382 | ) | 100,980 | |||||||||
Other purchased intangibles | 5.0 years | 18,149 | (12,666 | ) | 5,483 | |||||||||
Total | $ | 282,868 | $ | (92,146 | ) | $ | 190,722 | |||||||
Amortization expense, included in general and administrative expense, approximated $10.0 million and $6.8 million for the three month periods ended March 31, 2014 and 2013, respectively. Amortization expense is estimated to approximate $41.5 million, $37.9 million, $31.9 million, $26.9 million and $19.1 million for fiscal years 2014 through 2018 respectively, and $66.2 million thereafter through the duration of the amortization period. |
Long_Term_Debt
Long Term Debt | 3 Months Ended | |||
Mar. 31, 2014 | ||||
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 March 31, 2014, the unamortized discount on long-term debt was approximately $4.2 million. Unamortized other fees of approximately $1.2 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 j2 Global's subsidiaries as of March 31, 2014, 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 March 31, 2014, 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 $287.3 million as of March 31, 2014 and was based on the quoted market prices of debt instruments with similar terms, credit rating and maturities of the Notes as of March 31, 2014. | ||||
Cash paid for interest for the three months ended March 31, 2014 was $10.0 million. | ||||
Long-term debt as of March 31, 2014 consists of the following (in thousands): | ||||
Notes | $ | 245,796 | ||
Total long-term debt | 245,796 | |||
Less: Current portion | — | |||
Total long-term debt, less current portion | $ | 245,796 | ||
Commitments_And_Contingencies
Commitments And Contingencies | 3 Months Ended |
Mar. 31, 2014 | |
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 February 7, 2014, this action was dismissed pursuant to a settlement agreement. | |
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 April 3, 2014, this action was dismissed pursuant to a settlement agreement. | |
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 October 25, 2013, EC Data filed an amended complaint asserting claims for declaratory judgments of non-infringement and invalidity of the ‘638, ‘132, and ‘066 Patents, and U.S. Patent No. 6,597,688 (the “‘688 Patent”). On April 3, 2014 this action was dismissed pursuant to a settlement agreement. | |
On June 28, 2013, j2 Global filed suit against EC Data in the Central District of California, alleging infringement of the ‘980 Patent. On April 3, 2014, this action was dismissed pursuant to a settlement agreement. | |
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 December 20, 2013, the Court issued a claim construction ruling, construing certain terms of the patents-in-suit. | |
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. Those motions remain pending. | |
On September 15, 2006, a j2 Global affiliate 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 declaratory judgment counterclaims. On June 28, 2013, the Court bifurcated discovery, with the first stage of discovery limited to the issue of whether the j2 Global affiliate’s infringement claims were objectively baseless. The period for discovery into that issue ended on February 3, 2014. Also on February 3, 2014, IGC moved for leave to file amended counterclaims to assert a breach of contract claim. On March 12, 2014, j2 moved for summary judgment on IGC’s remaining antitrust claims. Both of those motions remain pending. | |
On July 2, 2012, IGC filed suit against j2 Global and its affiliate 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, 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. On January 31, 2014, j2 moved for summary judgment on IGC’s breach of contract claims. On March 21, 2014, the Court granted summary judgment. | |
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 declarations of invalidity, unenforceability, and non-infringement of the ‘980 Patent; an implied license to the ‘980 Patent; and breach and specific enforcement of an alleged covenant 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. On February 26, 2014, the Court granted j2’s motion to dismiss in part, dismissing IGC’s claim for declaratory judgment of unenforceability of the ‘980 Patent and striking related affirmative defenses. On October 18, 2013, the Court consolidated IGC’s breach of contract counterclaim with the other case pending in the Northern District of California and stayed j2 Global's patent infringement claims pending resolution of the breach of contract claims. On March 21, 2014, the Court granted summary judgment on IGC’s breach of contract counterclaims. | |
On February 17, 2011, Emmanuel Pantelakis (“Pantelakis”) filed suit against j2 Global Canada, Inc., carrying on business as Protus IP Solutions (“j2 Canada”), 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. On November 6, 2012, Pantelakis filed a second amended statement of claim adding claims for negligence and breach of contract. Following a pre-trial, Pantelakis expressed a desire to bring a motion seeking to remove Ontario counsel for j2 Canada due to an alleged conflict of interest. This motion was subsequently adjourned, as Pantelakis changed legal counsel. The parties are scheduled to have additional discussions, at which time Pantelakis will determine whether or not to proceed with this motion. | |
On January 18, 2013, Paldo Sign and Display Company (“Paldo”), filed an amended complaint adding j2 Global, j2 Canada, and a former j2 Canada employee, Tyler Eyamie (“Eyamie”), as additional defendants in an existing purported class action pending in the United States District Court for the Northern District of Illinois. The amended complaint alleged violations of the Telephone Consumer Protection Act (“TCPA”), the Illinois Consumer Fraud and Deceptive Business Practices Act (“ICFA”), and common law conversion, arising from a customer’s alleged use of the j2 Canada system to send unsolicited facsimile transmissions. On August 23, 2013, Paldo filed a second amended complaint to add a second plaintiff, Sabon, Inc. (“Sabon”). j2 Global and j2 Canada filed a motion to dismiss the ICFA and conversion claims, which was granted. Paldo and Sabon seek statutory damages, costs, attorneys’ fees and injunctive relief for the remaining TCPA claims. Eyamie filed a motion to dismiss for lack of personal jurisdiction, which was granted on March 11, 2014. The discovery period commenced on April 17, 2014, and will close in August 2015. The case is set for trial in late January 2016. | |
On February 19, 2013, Asher & Simons, P.A. (“Simons”) and Dr. Stuart T. Zaller, LLC (“Zaller”) filed suit against j2 Global and j2 Canada in the Circuit Court for Baltimore County, Maryland, alleging violations of the TCPA. j2 Global was dismissed from the lawsuit for lack of personal jurisdiction and in Q1 2014 the entire case was dismissed pursuant to a settlement agreement. | |
On December 16, 2013, Anthony Jenkins filed a purported class action against “j2 Global, carrying on business as eFax” in the Central District of California. An amended complaint was filed on March 18, 2014 adding two named plaintiffs. The amended complaint includes causes of action for breach of contract, several state statutory violations and conversion. The claims arose either out of alleged difficulties some users encountered in canceling their eFax® online fax accounts or out of j2 Global allegedly being unjustly enriched and converting users’ funds. The potential class representatives are seeking damages, statutory damages, restitution, attorneys’ fees, interest, costs and injunctive relief on behalf of themselves and a purported nationwide class of persons allegedly similarly situated. On April 7, 2014, j2 Global filed a motion to dismiss the amended complaint. Plaintiffs have yet to file a responsive pleading to the motion to dismiss. | |
On January 7, 2011 the Department of Revenue for the State of Washington (“Washington Department of Revenue”) issued assessments to j2 Global for business and occupations and retail sales tax for the periods January 1, 2004 through December 31, 2008 and January 1, 2009 through September 30, 2010. On February 4, 2011, j2 Global filed a petition for correction with the Washington Department of Revenue. On November 16, 2012, the Washington Department of Revenue issued a determination denying j2 Global’s petition. j2 Global paid the assessments on or about December 13, 2012 and on June 21, 2013 filed a complaint against the Washington Department of Revenue in the Superior Court of Washington for Thurston County, seeking a refund of the entire amount paid and asserting various declarations that the State improperly imposed tax. Discovery is ongoing. | |
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 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 | 3 Months Ended |
Mar. 31, 2014 | |
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 March 31, 2014, the effective tax rate was 22.2%. 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 $11.6 million and $5.4 million for the three months ended March 31, 2014 and 2013, respectively, and income from foreign operations of $25.4 million and $22.9 million for the three months ended March 31, 2014 and 2013, respectively. | |
As of March 31, 2014 and December 31, 2013, the Company had $44.2 million and $43.9 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 $3.3 million for the three months ended March 31, 2014. | |
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 $13.6 million and $11.3 million at March 31, 2014 and December 31, 2013, respectively. | |
Income Tax Audits: | |
j2 Global is currently under income tax audit by the California Franchise Tax Board (“FTB”) for tax years 2005 through 2007 and for tax years 2009 through 2011. The FTB has also issued Information Document Requests regarding the 2004 and 2008 tax years, although no formal notice of audit for these years has been provided. The Company is currently under audit by the Illinois Department of Revenue for income tax for tax years 2008 and 2009. The Company is currently under audit by the New York City Department of Finance for income tax for tax years 2009 through 2011. | |
The Company is also under income tax audit by the U.S. Internal Revenue Service ("IRS") for tax years 2009 and 2011. The Company has appealed the IRS tax examiner's decision regarding transfer pricing for tax years 2009 and 2010 to the IRS appeals office and that process remains on-going. | |
In addition, the Company is under income tax audit by the Canada Revenue Agency (“CRA”) for tax years 2010 through 2011. The Company is also under audit by the CRA for Goods and Services Tax for the tax period beginning on October 1, 2008 and ending on September 30, 2012. | |
It is reasonably possible that these audits may conclude in the next 12 months and that the uncertain tax positions the Company has recorded in relation to these tax years may change compared to the liabilities recorded for these periods. If the recorded uncertain tax positions are inadequate to cover the associated tax liabilities, the Company would be required to record additional tax expense in the relevant period, which could be material. If the recorded uncertain tax positions are adequate to cover the associated tax liabilities, the Company would be required to record any excess as reduction in tax expense in the relevant period, which could be material. However, it is not currently possible to estimate the amount, if any, of such change. |
Stockholders_Equity
Stockholders' Equity | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
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, LLC (formerly Ziff Davis, Inc.) and its subsidiaries ("Ziff Davis"). | ||||||
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. 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 11, 2014 extended the 2012 Program through February 20, 2015. During the three month period ended March 31, 2014, 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 March 31, 2014, the Company purchased 82,509 shares from plan participants for this purpose. | ||||||
Dividends | ||||||
The following is a summary of each dividend declared during fiscal year 2014: | ||||||
Declaration Date | Dividend per Common Share | Record Date | Payment Date | |||
February 11, 2014 | $ | 0.2625 | February 24, 2014 | March 10, 2014 | ||
Future dividends are subject to Board approval. |
Stock_Options_And_Employee_Sto
Stock Options And Employee Stock Purchase Plan | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
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 March 31, 2014, 246,029 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 March 31, 2014, 576,662 shares underlying options and 104,200 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 three months ended March 31, 2014: | |||||||||||||
Number of | Weighted- | Weighted-Average | Aggregate | ||||||||||
Shares | Average | Remaining | Intrinsic | ||||||||||
Exercise | Contractual | Value | |||||||||||
Price | Term (in years) | ||||||||||||
Outstanding at January 1, 2014 | 1,175,657 | $ | 21.21 | ||||||||||
Granted | — | — | |||||||||||
Exercised | (352,966 | ) | 14.46 | ||||||||||
Canceled | — | — | |||||||||||
Outstanding at March 31, 2014 | 822,691 | 24.1 | 4.7 | $ | 21,344,914 | ||||||||
Exercisable at March 31, 2014 | 611,372 | 23.33 | 3.9 | $ | 16,335,927 | ||||||||
Vested and expected to vest at March 31, 2014 | 793,255 | $ | 23.97 | 4.6 | $ | 20,685,031 | |||||||
The aggregate intrinsic values of options exercised during the three months ended March 31, 2014 and 2013 were $12.3 million and $1.4 million, respectively. | |||||||||||||
As of March 31, 2014 and December 31, 2013, unrecognized stock compensation related to non-vested stock options granted under the 1997 Plan and the 2007 Plan approximated $1.5 million and $2.0 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 1.8 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 three months ended March 31, 2014 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 11.07% and 15% as of March 31, 2014 and 2013, respectively. | |||||||||||||
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 $1.9 million and $1.6 million of compensation expense for the three months ended March 31, 2014 and 2013, respectively, related to restricted stock and restricted stock units. As of March 31, 2014 and December 31, 2013, the Company had unrecognized share-based compensation cost of approximately $18.5 million and $20.2 million, respectively, associated with these awards. This cost is expected to be recognized over a weighted-average period of 3.2 years for awards and 3.5 years for units. | |||||||||||||
Restricted stock award activity for the three months ended March 31, 2014 is set forth below: | |||||||||||||
Shares | Weighted-Average | ||||||||||||
Grant-Date | |||||||||||||
Fair Value | |||||||||||||
Nonvested at January 1, 2014 | 1,178,371 | $ | 17.86 | ||||||||||
Granted | 8,000 | 51.46 | |||||||||||
Vested | (298,386 | ) | 10.39 | ||||||||||
Canceled | (509 | ) | — | ||||||||||
Nonvested at March 31, 2014 | 887,476 | $ | 20.69 | ||||||||||
Restricted stock unit award activity for the three months ended March 31, 2014 is set forth below: | |||||||||||||
Number of | Weighted-Average | Aggregate | |||||||||||
Shares | Remaining | Intrinsic | |||||||||||
Contractual | Value | ||||||||||||
Term (in years) | |||||||||||||
Outstanding at January 1, 2014 | 109,725 | ||||||||||||
Granted | — | ||||||||||||
Vested | (5,525 | ) | |||||||||||
Canceled | — | ||||||||||||
Outstanding at March 31, 2014 | 104,200 | 2.1 | $ | 5,215,210 | |||||||||
Vested and expected to vest at March 31, 2014 | 74,127 | 1.8 | $ | 3,710,051 | |||||||||
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 months ended March 31, 2014 and 2013 (in thousands): | |||||||||||||
Three Months Ended March 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Cost of revenues | $ | 154 | $ | 214 | |||||||||
Operating expenses: | |||||||||||||
Sales and marketing | 491 | 418 | |||||||||||
Research, development and engineering | 140 | 106 | |||||||||||
General and administrative | 1,599 | 1,610 | |||||||||||
Total | $ | 2,384 | $ | 2,348 | |||||||||
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 three months ended March 31, 2014 and 2013, 1,270 and 1,860 shares were purchased under the plan, respectively. Cash received upon the issuance of common stock under the Purchase Plan was $55,000 and $56,000 for the three months ended March 31, 2014 and 2013, respectively. As of March 31, 2014, 1,638,929 shares were available under the Purchase Plan for future issuance. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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 March 31, | ||||||||
2014 | 2013 | |||||||
Numerator for basic and diluted net income per common share: | ||||||||
Net income attributable to j2 Global, Inc. common shareholders | $ | 28,765 | $ | 22,922 | ||||
Net income available to participating securities (a) | (635 | ) | (412 | ) | ||||
Net income available to j2 Global, Inc. common shareholders | $ | 28,130 | $ | 22,510 | ||||
Denominator: | ||||||||
Weighted-average outstanding shares of common stock | 46,365,158 | 45,160,140 | ||||||
Dilutive effect of: | ||||||||
Dilutive effect of equity incentive plans | 400,574 | 508,027 | ||||||
Common stock and common stock equivalents | 46,765,732 | 45,668,167 | ||||||
Net income per share: | ||||||||
Basic | $ | 0.61 | $ | 0.5 | ||||
Diluted | $ | 0.6 | $ | 0.49 | ||||
(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 months ended March 31, 2014 and 2013, there were zero and 15,000 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 | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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 March 31, | ||||||||
2014 | 2013 | |||||||
Revenues by segment: | ||||||||
Business Cloud Services | $ | 100,830 | $ | 90,739 | ||||
Digital Media | 33,368 | 22,907 | ||||||
Elimination of inter-segment revenues | (74 | ) | (29 | ) | ||||
Total revenues | 134,124 | 113,617 | ||||||
Direct costs by segment(1): | ||||||||
Business Cloud Services | 55,612 | 46,081 | ||||||
Digital Media | 28,716 | 26,903 | ||||||
Direct costs by segment(1): | 84,328 | 72,984 | ||||||
Business Cloud Services operating income | 45,218 | 44,657 | ||||||
Digital Media operating income (loss) | 4,652 | (3,996 | ) | |||||
Segment operating income | 49,870 | 40,661 | ||||||
Global operating costs(2) | 8,285 | 7,674 | ||||||
Income from operations | $ | 41,585 | $ | 32,987 | ||||
(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. | ||||||||
March 31, 2014 | December 31, 2013 | |||||||
Assets: | ||||||||
Business Cloud Services | $ | 848,633 | $ | 818,722 | ||||
Digital Media | 327,898 | 333,286 | ||||||
Total assets from reportable segments | 1,176,531 | 1,152,008 | ||||||
Corporate | 1,753 | 1,781 | ||||||
Total assets | $ | 1,178,284 | $ | 1,153,789 | ||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Capital expenditures: | ||||||||
Business Cloud Services | $ | 1,875 | $ | 976 | ||||
Digital Media | 956 | 783 | ||||||
Total from reportable segments | 2,831 | 1,759 | ||||||
Corporate | 105 | 174 | ||||||
Total capital expenditures | $ | 2,936 | $ | 1,933 | ||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Depreciation and amortization: | ||||||||
Business Cloud Services | $ | 8,030 | $ | 5,456 | ||||
Digital Media | 4,918 | 3,152 | ||||||
Total from reportable segments | 12,948 | 8,608 | ||||||
Corporate | 189 | 154 | ||||||
Total depreciation and amortization | $ | 13,137 | $ | 8,762 | ||||
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 March 31, | ||||||||
2014 | 2013 | |||||||
Revenues: | ||||||||
United States | $ | 91,428 | $ | 76,378 | ||||
Canada | 17,508 | 18,557 | ||||||
Ireland | 10,511 | 10,098 | ||||||
All other countries | 14,677 | 8,584 | ||||||
$ | 134,124 | $ | 113,617 | |||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Long-lived assets: | ||||||||
United States | $ | 165,160 | $ | 170,247 | ||||
All other countries | 87,121 | 51,675 | ||||||
Total | $ | 252,281 | $ | 221,922 | ||||
Unrestricted_Subsidiaries_Note
Unrestricted Subsidiaries (Notes) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Unrestricted Subsidiaires [Abstract] | ' | |||||||
Unrestricted Subsidiaries [Text Block] | ' | |||||||
Unrestricted Subsidiaries | ||||||||
As of March 31, 2014, the Company's Board of Directors had designated the following entities as “Unrestricted Subsidiary” under the indenture governing j2 Global's Notes: | ||||||||
Ziff Davis, LLC and subsidiaries | ||||||||
The financial position and results of operations of Ziff Davis, LLC and its subsidiaries 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, LLC and its subsidiaries as of March 31, 2014 is as follows (in thousands): | ||||||||
March 31, 2014 | ||||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 23,582 | ||||||
Accounts receivable | 38,793 | |||||||
Prepaid expenses and other current assets | 3,177 | |||||||
Deferred income taxes | 2,704 | |||||||
Total current assets | 68,256 | |||||||
Property and equipment, net | 13,217 | |||||||
Trade names, net | 48,796 | |||||||
Customer relationships, net | 50,419 | |||||||
Goodwill | 140,419 | |||||||
Other purchased intangibles, net | 3,583 | |||||||
Deferred income taxes | 1,510 | |||||||
Other assets | 1,698 | |||||||
Total assets | $ | 327,898 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Accounts payable and accrued expenses | $ | 11,560 | ||||||
Income taxes payable | 4,942 | |||||||
Deferred revenue, current | 2,831 | |||||||
Deferred income taxes | 679 | |||||||
Total current liabilities | 20,012 | |||||||
Deferred income taxes | 21,696 | |||||||
Other long-term liabilities | 1,443 | |||||||
Total liabilities | 43,151 | |||||||
Additional paid-in capital | 296,099 | |||||||
Retained earnings | (11,310 | ) | ||||||
Accumulated other comprehensive income (loss) | (42 | ) | ||||||
Total stockholders’ equity | 284,747 | |||||||
Total liabilities and stockholders’ equity | $ | 327,898 | ||||||
The results of operations of Ziff Davis, LLC and its subsidiaries for the three months ended March 31, 2014 and 2013 is as follows (in thousands): | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Revenues | $ | 33,368 | $ | 22,907 | ||||
Cost of revenues | 3,852 | 3,593 | ||||||
Gross profit | 29,516 | 19,314 | ||||||
Operating expenses: | ||||||||
Sales and marketing | 14,958 | 12,787 | ||||||
Research, development and engineering | 1,072 | 1,978 | ||||||
General and administrative | 8,834 | 8,545 | ||||||
Total operating expenses | 24,864 | 23,310 | ||||||
Income (loss) from operations | 4,652 | (3,996 | ) | |||||
Interest expense (income), net | 1 | 1,349 | ||||||
Other expense (income), net | (342 | ) | 70 | |||||
Income (loss) before income taxes | 4,993 | (5,415 | ) | |||||
Income tax expense (benefit) | 2,027 | (2,332 | ) | |||||
Net income (loss) | $ | 2,966 | $ | (3,083 | ) | |||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Notes) | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
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 March 31, 2014 (in thousands): | ||||||||||||
Unrealized Gains (Losses) on Investments | Foreign Currency Translation | Total | ||||||||||
Beginning balance | $ | 6,056 | $ | (1,821 | ) | $ | 4,235 | |||||
Other comprehensive income before reclassifications | (2,657 | ) | 837 | (1,820 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income | 17 | — | 17 | |||||||||
Net current period other comprehensive income | (2,640 | ) | 837 | (1,803 | ) | |||||||
Ending balance | $ | 3,416 | $ | (984 | ) | $ | 2,432 | |||||
The following table provides details about reclassifications out of accumulated other comprehensive income for the three months ended March 31, 2014 (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 March 31, 2014 | ||||||||||||
Unrealized loss on available-for-sale investments | 26 | Other expense (income), net | ||||||||||
26 | Total, before income taxes | |||||||||||
(9 | ) | Income tax expense (benefit) | ||||||||||
17 | Total, net of tax | |||||||||||
Total reclassifications for the period | $ | 17 | Total, net of tax | |||||||||
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
On May 2, 2014, in a cash transaction the Company acquired Online Backup Company Norway AS and a related subsidiary, a Nordic-based provider of online backup services. | |
On May 7, 2014, the Company's Board of Directors approved a quarterly cash dividend of $0.27 per share of common stock payable on June 3, 2014 to all stockholders of record as of the close of business on May 19, 2014. |
Basis_Of_Presentation_Policy
Basis Of Presentation (Policy) | 3 Months Ended |
Mar. 31, 2014 | |
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, including patented technology. 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 | |
As of March 31, 2014 and December 31, 2013, 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 primarily at major financial institutions within the United States, United Kingdom and Ireland, with cash and cash equivalents also held at financial institutions within several other countries, including Australia, Austria, Canada, China, France, Germany, Italy, Japan, New Zealand, the Netherlands and Poland. 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 March 31, 2014 and December 31, 2013, the Company’s cash and cash equivalents were maintained in accounts that are insured up to the limit determined by the applicable governmental agency. The Company'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 amount of the Company’s cash and cash equivalents held by these institutions which is not insured. | |
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 2014 presentation. |
Business_Acquisition_Tables
Business Acquisition (Tables) | 3 Months Ended | |||
Mar. 31, 2014 | ||||
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 | $ | 5,427 | ||
Property and Equipment | 6,112 | |||
Other Assets | 1,000 | |||
Software | 2,246 | |||
Trade Names | 80 | |||
Customer Relationships | 29,469 | |||
Other Intangibles | 5 | |||
Goodwill | 26,291 | |||
Total | $ | 70,630 | ||
Investments_Tables
Investments (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
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): | ||||||||||||||||
March 31, | December 31, 2013 | |||||||||||||||
2014 | ||||||||||||||||
Due within 1 year | $ | 39,186 | $ | 46,339 | ||||||||||||
Due within more than 1 year but less than 5 years | 33,220 | 44,865 | ||||||||||||||
Due within more than 5 years but less than 10 years | — | — | ||||||||||||||
Due 10 years or after | 2,478 | 2,486 | ||||||||||||||
Total | $ | 74,884 | $ | 93,690 | ||||||||||||
Schedule Of Available-For-Sale And Trading Securities | ' | |||||||||||||||
The following table summarizes the Company’s investments designated as available-for-sale (in thousands): | ||||||||||||||||
March 31, | December 31, 2013 | |||||||||||||||
2014 | ||||||||||||||||
Available-for-sale | 100,766 | 123,737 | ||||||||||||||
Total | $ | 100,766 | $ | 123,737 | ||||||||||||
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 March 31, 2014 and December 31, 2013 aggregated by major security type (in thousands): | ||||||||||||||||
Amortized | Gross | Gross | Fair | |||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||
Gains | Losses | |||||||||||||||
March 31, 2014 | ||||||||||||||||
Debt Securities | $ | 74,767 | $ | 151 | $ | (34 | ) | $ | 74,884 | |||||||
Equity Securities | 20,610 | 5,508 | (236 | ) | 25,882 | |||||||||||
Total | $ | 95,377 | $ | 5,659 | $ | (270 | ) | $ | 100,766 | |||||||
December 31, 2013 | ||||||||||||||||
Debt Securities | $ | 93,569 | $ | 158 | $ | (37 | ) | $ | 93,690 | |||||||
Equity Securities | 20,610 | 9,558 | (121 | ) | 30,047 | |||||||||||
Total | $ | 114,179 | $ | 9,716 | $ | (158 | ) | $ | 123,737 | |||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
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): | ||||||||||||||||
March 31, 2014 | Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||
Cash equivalents: | ||||||||||||||||
Money market and other funds | $ | 66,811 | $ | — | $ | — | $ | 66,811 | ||||||||
Time deposits | 30,797 | — | — | 30,797 | ||||||||||||
Corporate commercial papers | 999 | — | — | 999 | ||||||||||||
Certificates of deposit | 6,233 | — | — | 6,233 | ||||||||||||
Equity securities | 25,882 | — | — | 25,882 | ||||||||||||
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 19,219 | — | — | 19,219 | ||||||||||||
Debt securities issued by states of the U.S. and political subdivisions of the states | 2,275 | — | — | 2,275 | ||||||||||||
Debt securities issued by foreign governments | 2,049 | — | — | 2,049 | ||||||||||||
Corporate debt securities | 51,340 | — | — | 51,340 | ||||||||||||
Total | $ | 205,605 | $ | — | $ | — | $ | 205,605 | ||||||||
December 31, 2013 | Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||
Cash equivalents: | ||||||||||||||||
Money market and other funds | $ | 101,232 | $ | — | $ | — | $ | 101,232 | ||||||||
Time deposits | 22,773 | — | — | 22,773 | ||||||||||||
Certificates of deposit | 14,402 | — | — | 14,402 | ||||||||||||
Equity securities | 30,047 | — | — | 30,047 | ||||||||||||
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 23,702 | — | — | 23,702 | ||||||||||||
Debt securities issued by states of the U.S. and political subdivisions of the states | 3,296 | — | — | 3,296 | ||||||||||||
Corporate debt securities | 66,692 | — | — | 66,692 | ||||||||||||
Total | $ | 262,144 | $ | — | $ | — | $ | 262,144 | ||||||||
Goodwill_And_Intangible_Assets1
Goodwill And Intangible Assets (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||
Changes In Carrying Amounts Of Goodwill | ' | |||||||||||||
The changes in carrying amounts of goodwill for the three months ended March 31, 2014 are as follows (in thousands): | ||||||||||||||
Balance as of January 1, 2014 | $ | 457,422 | ||||||||||||
Goodwill acquired (Note 3) | 26,291 | |||||||||||||
Purchase accounting adjustments | (981 | ) | ||||||||||||
Foreign exchange translation | 523 | |||||||||||||
Balance as of March 31, 2014 | $ | 483,255 | ||||||||||||
Schedule Of Intangible Assets With Indefinite Lives | ' | |||||||||||||
Intangible Assets with Indefinite Lives: | ||||||||||||||
March 31, | December 31, | |||||||||||||
2014 | 2013 | |||||||||||||
Trade name | $ | 27,379 | $ | 27,379 | ||||||||||
Other | 5,432 | 5,432 | ||||||||||||
Total | $ | 32,811 | $ | 32,811 | ||||||||||
Finite-Lived Intangible Assets By Major Class | ' | |||||||||||||
As of March 31, 2014, intangible assets subject to amortization relate primarily to the following (in thousands): | ||||||||||||||
Weighted-Average | Historical | Accumulated | Net | |||||||||||
Amortization | Cost | Amortization | ||||||||||||
Period | ||||||||||||||
Tradenames | 16.7 years | $ | 67,073 | $ | (12,418 | ) | $ | 54,655 | ||||||
Patent and patent licenses | 7.9 years | 59,816 | (31,724 | ) | 28,092 | |||||||||
Customer relationships | 8.9 years | 169,853 | (44,874 | ) | 124,979 | |||||||||
Other purchased intangibles | 5.3 years | 18,906 | (13,180 | ) | 5,726 | |||||||||
Total | $ | 315,648 | $ | (102,196 | ) | $ | 213,452 | |||||||
As of December 31, 2013, intangible assets subject to amortization relate primarily to the following (in thousands): | ||||||||||||||
Weighted-Average | Historical | Accumulated | Net | |||||||||||
Amortization | Cost | Amortization | ||||||||||||
Period | ||||||||||||||
Tradenames | 17.0 years | $ | 66,911 | $ | (11,182 | ) | $ | 55,729 | ||||||
Patent and patent licenses | 8.1 years | 58,446 | (29,916 | ) | 28,530 | |||||||||
Customer relationships | 8.1 years | 139,362 | (38,382 | ) | 100,980 | |||||||||
Other purchased intangibles | 5.0 years | 18,149 | (12,666 | ) | 5,483 | |||||||||
Total | $ | 282,868 | $ | (92,146 | ) | $ | 190,722 | |||||||
Long_Term_Debt_Tables
Long Term Debt (Tables) | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Long-term Debt, Unclassified [Abstract] | ' | |||
Schedule of Long-term Debt Instruments [Table Text Block] | ' | |||
Long-term debt as of March 31, 2014 consists of the following (in thousands): | ||||
Notes | $ | 245,796 | ||
Total long-term debt | 245,796 | |||
Less: Current portion | — | |||
Total long-term debt, less current portion | $ | 245,796 | ||
Stock_Options_And_Employee_Sto1
Stock Options And Employee Stock Purchase Plan (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Stock Options Activity | ' | ||||||||||||
The following table represents stock option activity for the three months ended March 31, 2014: | |||||||||||||
Number of | Weighted- | Weighted-Average | Aggregate | ||||||||||
Shares | Average | Remaining | Intrinsic | ||||||||||
Exercise | Contractual | Value | |||||||||||
Price | Term (in years) | ||||||||||||
Outstanding at January 1, 2014 | 1,175,657 | $ | 21.21 | ||||||||||
Granted | — | — | |||||||||||
Exercised | (352,966 | ) | 14.46 | ||||||||||
Canceled | — | — | |||||||||||
Outstanding at March 31, 2014 | 822,691 | 24.1 | 4.7 | $ | 21,344,914 | ||||||||
Exercisable at March 31, 2014 | 611,372 | 23.33 | 3.9 | $ | 16,335,927 | ||||||||
Vested and expected to vest at March 31, 2014 | 793,255 | $ | 23.97 | 4.6 | $ | 20,685,031 | |||||||
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 months ended March 31, 2014 and 2013 (in thousands): | |||||||||||||
Three Months Ended March 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Cost of revenues | $ | 154 | $ | 214 | |||||||||
Operating expenses: | |||||||||||||
Sales and marketing | 491 | 418 | |||||||||||
Research, development and engineering | 140 | 106 | |||||||||||
General and administrative | 1,599 | 1,610 | |||||||||||
Total | $ | 2,384 | $ | 2,348 | |||||||||
Restricted Stock [Member] | ' | ||||||||||||
Restricted Stock And Restricted Stock Unit Award Activity | ' | ||||||||||||
Restricted stock award activity for the three months ended March 31, 2014 is set forth below: | |||||||||||||
Shares | Weighted-Average | ||||||||||||
Grant-Date | |||||||||||||
Fair Value | |||||||||||||
Nonvested at January 1, 2014 | 1,178,371 | $ | 17.86 | ||||||||||
Granted | 8,000 | 51.46 | |||||||||||
Vested | (298,386 | ) | 10.39 | ||||||||||
Canceled | (509 | ) | — | ||||||||||
Nonvested at March 31, 2014 | 887,476 | $ | 20.69 | ||||||||||
Restricted Stock Units (RSUs) [Member] | ' | ||||||||||||
Restricted Stock And Restricted Stock Unit Award Activity | ' | ||||||||||||
Restricted stock unit award activity for the three months ended March 31, 2014 is set forth below: | |||||||||||||
Number of | Weighted-Average | Aggregate | |||||||||||
Shares | Remaining | Intrinsic | |||||||||||
Contractual | Value | ||||||||||||
Term (in years) | |||||||||||||
Outstanding at January 1, 2014 | 109,725 | ||||||||||||
Granted | — | ||||||||||||
Vested | (5,525 | ) | |||||||||||
Canceled | — | ||||||||||||
Outstanding at March 31, 2014 | 104,200 | 2.1 | $ | 5,215,210 | |||||||||
Vested and expected to vest at March 31, 2014 | 74,127 | 1.8 | $ | 3,710,051 | |||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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 March 31, | ||||||||
2014 | 2013 | |||||||
Numerator for basic and diluted net income per common share: | ||||||||
Net income attributable to j2 Global, Inc. common shareholders | $ | 28,765 | $ | 22,922 | ||||
Net income available to participating securities (a) | (635 | ) | (412 | ) | ||||
Net income available to j2 Global, Inc. common shareholders | $ | 28,130 | $ | 22,510 | ||||
Denominator: | ||||||||
Weighted-average outstanding shares of common stock | 46,365,158 | 45,160,140 | ||||||
Dilutive effect of: | ||||||||
Dilutive effect of equity incentive plans | 400,574 | 508,027 | ||||||
Common stock and common stock equivalents | 46,765,732 | 45,668,167 | ||||||
Net income per share: | ||||||||
Basic | $ | 0.61 | $ | 0.5 | ||||
Diluted | $ | 0.6 | $ | 0.49 | ||||
(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) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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 March 31, | ||||||||
2014 | 2013 | |||||||
Revenues by segment: | ||||||||
Business Cloud Services | $ | 100,830 | $ | 90,739 | ||||
Digital Media | 33,368 | 22,907 | ||||||
Elimination of inter-segment revenues | (74 | ) | (29 | ) | ||||
Total revenues | 134,124 | 113,617 | ||||||
Direct costs by segment(1): | ||||||||
Business Cloud Services | 55,612 | 46,081 | ||||||
Digital Media | 28,716 | 26,903 | ||||||
Direct costs by segment(1): | 84,328 | 72,984 | ||||||
Business Cloud Services operating income | 45,218 | 44,657 | ||||||
Digital Media operating income (loss) | 4,652 | (3,996 | ) | |||||
Segment operating income | 49,870 | 40,661 | ||||||
Global operating costs(2) | 8,285 | 7,674 | ||||||
Income from operations | $ | 41,585 | $ | 32,987 | ||||
(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. | ||||||||
March 31, 2014 | December 31, 2013 | |||||||
Assets: | ||||||||
Business Cloud Services | $ | 848,633 | $ | 818,722 | ||||
Digital Media | 327,898 | 333,286 | ||||||
Total assets from reportable segments | 1,176,531 | 1,152,008 | ||||||
Corporate | 1,753 | 1,781 | ||||||
Total assets | $ | 1,178,284 | $ | 1,153,789 | ||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Capital expenditures: | ||||||||
Business Cloud Services | $ | 1,875 | $ | 976 | ||||
Digital Media | 956 | 783 | ||||||
Total from reportable segments | 2,831 | 1,759 | ||||||
Corporate | 105 | 174 | ||||||
Total capital expenditures | $ | 2,936 | $ | 1,933 | ||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Depreciation and amortization: | ||||||||
Business Cloud Services | $ | 8,030 | $ | 5,456 | ||||
Digital Media | 4,918 | 3,152 | ||||||
Total from reportable segments | 12,948 | 8,608 | ||||||
Corporate | 189 | 154 | ||||||
Total depreciation and amortization | $ | 13,137 | $ | 8,762 | ||||
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 March 31, | ||||||||
2014 | 2013 | |||||||
Revenues: | ||||||||
United States | $ | 91,428 | $ | 76,378 | ||||
Canada | 17,508 | 18,557 | ||||||
Ireland | 10,511 | 10,098 | ||||||
All other countries | 14,677 | 8,584 | ||||||
$ | 134,124 | $ | 113,617 | |||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Long-lived assets: | ||||||||
United States | $ | 165,160 | $ | 170,247 | ||||
All other countries | 87,121 | 51,675 | ||||||
Total | $ | 252,281 | $ | 221,922 | ||||
Unrestricted_Subsidiaries_Tabl
Unrestricted Subsidiaries (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Unrestricted Subsidiaires [Abstract] | ' | |||||||
Schedule of Unrestricted Subsidiaries Financial Information [Table Text Block] | ' | |||||||
The financial position of Ziff Davis, LLC and its subsidiaries as of March 31, 2014 is as follows (in thousands): | ||||||||
March 31, 2014 | ||||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 23,582 | ||||||
Accounts receivable | 38,793 | |||||||
Prepaid expenses and other current assets | 3,177 | |||||||
Deferred income taxes | 2,704 | |||||||
Total current assets | 68,256 | |||||||
Property and equipment, net | 13,217 | |||||||
Trade names, net | 48,796 | |||||||
Customer relationships, net | 50,419 | |||||||
Goodwill | 140,419 | |||||||
Other purchased intangibles, net | 3,583 | |||||||
Deferred income taxes | 1,510 | |||||||
Other assets | 1,698 | |||||||
Total assets | $ | 327,898 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Accounts payable and accrued expenses | $ | 11,560 | ||||||
Income taxes payable | 4,942 | |||||||
Deferred revenue, current | 2,831 | |||||||
Deferred income taxes | 679 | |||||||
Total current liabilities | 20,012 | |||||||
Deferred income taxes | 21,696 | |||||||
Other long-term liabilities | 1,443 | |||||||
Total liabilities | 43,151 | |||||||
Additional paid-in capital | 296,099 | |||||||
Retained earnings | (11,310 | ) | ||||||
Accumulated other comprehensive income (loss) | (42 | ) | ||||||
Total stockholders’ equity | 284,747 | |||||||
Total liabilities and stockholders’ equity | $ | 327,898 | ||||||
The results of operations of Ziff Davis, LLC and its subsidiaries for the three months ended March 31, 2014 and 2013 is as follows (in thousands): | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Revenues | $ | 33,368 | $ | 22,907 | ||||
Cost of revenues | 3,852 | 3,593 | ||||||
Gross profit | 29,516 | 19,314 | ||||||
Operating expenses: | ||||||||
Sales and marketing | 14,958 | 12,787 | ||||||
Research, development and engineering | 1,072 | 1,978 | ||||||
General and administrative | 8,834 | 8,545 | ||||||
Total operating expenses | 24,864 | 23,310 | ||||||
Income (loss) from operations | 4,652 | (3,996 | ) | |||||
Interest expense (income), net | 1 | 1,349 | ||||||
Other expense (income), net | (342 | ) | 70 | |||||
Income (loss) before income taxes | 4,993 | (5,415 | ) | |||||
Income tax expense (benefit) | 2,027 | (2,332 | ) | |||||
Net income (loss) | $ | 2,966 | $ | (3,083 | ) | |||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
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 months ended March 31, 2014 (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 March 31, 2014 | ||||||||||||
Unrealized loss on available-for-sale investments | 26 | Other expense (income), net | ||||||||||
26 | Total, before income taxes | |||||||||||
(9 | ) | Income tax expense (benefit) | ||||||||||
17 | Total, net of tax | |||||||||||
Total reclassifications for the period | $ | 17 | 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 March 31, 2014 (in thousands): | ||||||||||||
Unrealized Gains (Losses) on Investments | Foreign Currency Translation | Total | ||||||||||
Beginning balance | $ | 6,056 | $ | (1,821 | ) | $ | 4,235 | |||||
Other comprehensive income before reclassifications | (2,657 | ) | 837 | (1,820 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income | 17 | — | 17 | |||||||||
Net current period other comprehensive income | (2,640 | ) | 837 | (1,803 | ) | |||||||
Ending balance | $ | 3,416 | $ | (984 | ) | $ | 2,432 | |||||
Basis_Of_Presentation_Details
Basis Of Presentation (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenue | $134,124 | $113,617 |
Net income attributable to j2 Global, Inc. common shareholders | $28,765 | $22,922 |
Basic earnings per share | $0.61 | $0.50 |
Diluted earnings per share | $0.60 | $0.49 |
Business_Acquisition_Details
Business Acquisition (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Dec. 31, 2013 | |
Goodwill, Acquired During Period | $26,291,000 | ' |
Goodwill | 483,255,000 | 457,422,000 |
Business Acquisition, Purchase Price Allocation, Goodwill, Expected Tax Deductible Amount | 700,000 | ' |
Business Acquisition Contributed Total Revenue | 4,500,000 | ' |
Total consideration of transaction, net of cash acquired | 70,600,000 | ' |
Business Combination, Consideration Transferred, Liabilities Incurred | 18,900,000 | ' |
IGN Entertainment, Inc [Member] | ' | ' |
Goodwill, Period Increase (Decrease) | $200,000 | ' |
Business_Acquisition_Business_
Business Acquisition Business Acquisition (Allocation of Aggregate Purchase Price) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | $5,427 | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 6,112 | ' |
Business Combination, Purchase Price Allocation Current Noncurrent Assets Prepaid Expense and Other Assets | 1,000 | ' |
Business Combination, Purchase Price Allocation, Goodwill Amount | 483,255 | 457,422 |
Goodwill, Acquired During Period | 26,291 | ' |
Developed Technology Rights [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 2,246 | ' |
Trade Names [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 80 | ' |
Customer Relationships [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 29,469 | ' |
Other Intangible Assets [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $5 | ' |
Investments_Schedule_Of_Debt_S
Investments (Schedule Of Debt Securities By Contractual Maturity Date) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investments [Abstract] | ' | ' |
Due within 1 year | $39,186 | $46,339 |
Due within more than 1 year but less than 5 years | 33,220 | 44,865 |
Due within more than 5 years but less than 10 years | 0 | 0 |
Due 10 years or after | 2,478 | 2,486 |
Total | $74,884 | $93,690 |
Investments_Schedule_Of_Availa
Investments (Schedule Of Available-For-Sale And Trading Securities) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investments [Abstract] | ' | ' |
Available-for-sale Securities | $100,766 | $123,737 |
Total | $100,766 | $123,737 |
Investments_Summary_Of_Gross_U
Investments (Summary Of Gross Unrealized Gains And Losses And Fair Values) (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Amortized Cost Basis | $95,377 | $114,179 |
Available-for-sale Securities, Gross Unrealized Gains | 5,659 | 9,716 |
Available-for-sale Securities, Gross Unrealized Losses | -270 | -158 |
Available-for-sale Securities | 100,766 | 123,737 |
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 | 5,508 | 9,558 |
Available-for-sale Securities, Gross Unrealized Losses | -236 | -121 |
Available-for-sale Securities | 25,882 | 30,047 |
Debt Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Amortized Cost Basis | 74,767 | 93,569 |
Available-for-sale Securities, Gross Unrealized Gains | 151 | 158 |
Available-for-sale Securities, Gross Unrealized Losses | -34 | -37 |
Available-for-sale Securities | $74,884 | $93,690 |
Investments_Investments_Narrat
Investments Investments (Narrative) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Investments [Abstract] | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $32.30 | $37.30 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | $0 | $2 |
Fair_Value_Measurements_Schedu
Fair Value Measurements (Schedule Of Fair Values Of Financial Instruments Measured On Recurring Basis) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Total assets | $205,605 | $262,144 |
Money Market Funds [Member] | ' | ' |
Cash | 66,811 | 101,232 |
Bank Time Deposits [Member] | ' | ' |
Cash | 30,797 | 22,773 |
Commercial Paper [Member] | ' | ' |
Cash | 999 | ' |
Certificates of Deposit [Member] | ' | ' |
Investments | 6,233 | 14,402 |
Equity Securities [Member] | ' | ' |
Investments | 25,882 | 30,047 |
Debt Securities Issued By The U.S Treasury And Other U.S Government Corporations And Agencies [Member] | ' | ' |
Investments | 19,219 | 23,702 |
Debt Securities Issued By States Of The United States And Political Subdivisions Of The States [Member] | ' | ' |
Investments | 2,275 | 3,296 |
Debt Securities Issued By Foreign Governments [Member] | ' | ' |
Investments | 2,049 | ' |
Corporate Debt Securities [Member] | ' | ' |
Investments | 51,340 | 66,692 |
Level 1 [Member] | ' | ' |
Total assets | 205,605 | 262,144 |
Level 1 [Member] | Money Market Funds [Member] | ' | ' |
Cash | 66,811 | 101,232 |
Level 1 [Member] | Bank Time Deposits [Member] | ' | ' |
Cash | 30,797 | 22,773 |
Level 1 [Member] | Commercial Paper [Member] | ' | ' |
Cash | 999 | ' |
Level 1 [Member] | Certificates of Deposit [Member] | ' | ' |
Investments | 6,233 | 14,402 |
Level 1 [Member] | Equity Securities [Member] | ' | ' |
Investments | 25,882 | 30,047 |
Level 1 [Member] | Debt Securities Issued By The U.S Treasury And Other U.S Government Corporations And Agencies [Member] | ' | ' |
Investments | 19,219 | 23,702 |
Level 1 [Member] | Debt Securities Issued By States Of The United States And Political Subdivisions Of The States [Member] | ' | ' |
Investments | 2,275 | 3,296 |
Level 1 [Member] | Debt Securities Issued By Foreign Governments [Member] | ' | ' |
Investments | 2,049 | ' |
Level 1 [Member] | Corporate Debt Securities [Member] | ' | ' |
Investments | 51,340 | 66,692 |
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 | ' |
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 | ' |
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 | ' |
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 | ' |
Level 3 [Member] | Corporate Debt Securities [Member] | ' | ' |
Investments | $0 | $0 |
Fair_Value_Measurements_Fair_V
Fair Value Measurements Fair Value Measurements (Narrative) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Fair Value Disclosures [Abstract] | ' | ' |
Long-term Debt | $245,796,000 | $245,670,000 |
Long-term Debt, Fair Value | $287,300,000 | $283,300,000 |
Goodwill_And_Intangible_Assets2
Goodwill And Intangible Assets (Narrative) (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Goodwill | $483,255,000 | ' | $457,422,000 |
Amortization expense | 10,000,000 | 6,800,000 | ' |
Estimated future amortization expense in year 2014 | 41,500,000 | ' | ' |
Estimated future amortization expense in year 2015 | 37,900,000 | ' | ' |
Estimated future amortization expense in year 2016 | 31,900,000 | ' | ' |
Estimated future amortization expense in year 2017 | 26,900,000 | ' | ' |
Estimated future amortization expense in year 2018 | 19,100,000 | ' | ' |
Estimated future amortization expense thereafter | 66,200,000 | ' | ' |
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 | 342,900,000 | ' | ' |
Digital Media Segment [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Goodwill | $140,400,000 | ' | ' |
Goodwill_And_Intangible_Assets3
Goodwill And Intangible Assets (Changes In Carrying Amounts Of Goodwill And Other Intangible Assets) (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | ' |
Balance as of January 1, 2014 | $457,422 |
Goodwill, Acquired During Period | 26,291 |
Purchase Accounting Adjustments | -981 |
Foreign Exchange Translation | 523 |
Balance as of March 31, 2014 | $483,255 |
Goodwill_And_Intangible_Assets4
Goodwill And Intangible Assets (Indefinite Intangible Assets) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Intangible assets | $32,811 | $32,811 |
Trade Names [Member] | ' | ' |
Intangible assets | 27,379 | 27,379 |
Other Intangible Assets [Member] | ' | ' |
Intangible assets | $5,432 | $5,432 |
Goodwill_And_Intangible_Assets5
Goodwill And Intangible Assets (Schedule Of Intangible Assets Subject To Amortization) (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Historical Cost | $315,648 | $282,868 |
Accumulated Amortization | -102,196 | -92,146 |
Net | 213,452 | 190,722 |
Trade Names [Member] | ' | ' |
Historical Cost | 67,073 | 66,911 |
Accumulated Amortization | -12,418 | -11,182 |
Net | 54,655 | 55,729 |
Weighted-Average Amortization Period, years | '16 years 8 months 12 days | '17 years |
Patents And Patent Licenses [Member] | ' | ' |
Historical Cost | 59,816 | 58,446 |
Accumulated Amortization | -31,724 | -29,916 |
Net | 28,092 | 28,530 |
Weighted-Average Amortization Period, years | '7 years 10 months 24 days | '8 years 1 month 6 days |
Customer Relationships [Member] | ' | ' |
Historical Cost | 169,853 | 139,362 |
Accumulated Amortization | -44,874 | -38,382 |
Net | 124,979 | 100,980 |
Weighted-Average Amortization Period, years | '8 years 10 months 24 days | '8 years 1 month 6 days |
Other Purchased Intangibles [Member] | ' | ' |
Historical Cost | 18,906 | 18,149 |
Accumulated Amortization | -13,180 | -12,666 |
Net | $5,726 | $5,483 |
Weighted-Average Amortization Period, years | '5 years 3 months 18 days | '5 years |
Long_Term_Debt_Details
Long Term Debt (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Dec. 31, 2013 | Jul. 26, 2012 | |
Long-term Debt, Unclassified [Abstract] | ' | ' | ' |
Debt Instrument, Issuance Date | 26-Jul-12 | ' | ' |
Debt Instrument, Face Amount | $250,000,000 | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | ' | ' |
Debt Instrument, Maturity Date | 1-Aug-20 | ' | ' |
Proceeds from Debt, Net of Issuance Costs | 245,000,000 | ' | ' |
Debt Instrument, Unamortized Discount | 4,200,000 | ' | 5,000,000 |
Debt Issuance Cost | 1,200,000 | ' | ' |
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 | 245,796,000 | 245,670,000 | ' |
Long-term Debt, Current Maturities | 0 | ' | ' |
Total long-term debt, less current portion | 245,796,000 | ' | ' |
Long-term Debt, Fair Value | 287,300,000 | 283,300,000 | ' |
Interest Paid | $10,000,000 | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | 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 | Dec. 31, 2009 | Dec. 31, 2008 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 |
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] | Illinois Department of Revenue [Member] | Illinois Department of Revenue [Member] | New York City Department of Finance [Member] | New York City Department of Finance [Member] | New York City Department of Finance [Member] | ||||
Income Taxes [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
U.S. federal statutory rate | 35.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effective income tax rate | 22.20% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income before income taxes, domestic operations | $11.60 | $5.40 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income before income taxes, foreign operations | 25.4 | 22.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liabilities for uncertain income tax positions | 44.2 | ' | 43.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash paid for income taxes | 3.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Prepaid tax payments | $13.60 | ' | $11.30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Tax Examination, Year under Examination | ' | ' | ' | '2011 | '2010 | '2009 | '2007 | '2006 | '2005 | '2011 | '2010 | '2009 | '2011 | '2010 | '2009 | '2008 | '2011 | '2010 | '2009 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 0 Months Ended | 3 Months Ended | |
7-May-14 | Feb. 12, 2014 | Mar. 31, 2014 | |
Class of Stock [Line Items] | ' | ' | ' |
Stock Repurchased | ' | ' | 82,509 |
Dividend amount to be paid, per common share | $0.27 | $0.26 | ' |
Dividend, declaration date | 7-May-14 | 11-Feb-14 | ' |
Dividend, date to be paid | 3-Jun-14 | 10-Mar-14 | ' |
Dividend, date of record | 19-May-14 | 24-Feb-14 | ' |
2012 Repurchase Program [Member] | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' |
Maximum number of shares authorized to be repurchased | ' | ' | 5,000,000 |
Stock Repurchased | ' | ' | 0 |
Stock_Options_And_Employee_Sto2
Stock Options And Employee Stock Purchase Plan (Narrative) (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Allocated Share-based Compensation Expense | $2,384,000 | $2,348,000 | ' |
Number of options outstanding | 822,691 | ' | 1,175,657 |
Number of options granted | 0 | ' | ' |
Cash received upon the issuance of common stock | 55,000 | 56,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | 12,300,000 | 1,400,000 | ' |
Stock Options [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | 1,500,000 | ' | 2,000,000 |
Restricted Stock And Restricted Stock Unit (RSU) [Member] | ' | ' | ' |
Allocated Share-based Compensation Expense | 1,900,000 | 1,600,000 | ' |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | 18,500,000 | ' | 20,200,000 |
Restricted Stock [Member] | ' | ' | ' |
Shares, Granted | 8,000 | ' | ' |
Weighted-Average Grant-Date Fair Value, Granted | $51.46 | ' | ' |
Number of stocks outstanding | 887,476 | ' | 1,178,371 |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' |
Shares, Granted | 0 | ' | ' |
Number of stocks outstanding | 104,200 | ' | 109,725 |
1997 Stock Option Plan [Member] | ' | ' | ' |
Additional shares authorized for issuance | 840,000 | ' | ' |
Maximum issuance of common stock | 12,000,000 | ' | ' |
1997 Stock Option Plan [Member] | Stock Options [Member] | ' | ' | ' |
Number of options outstanding | 246,029 | ' | ' |
1997 Stock Option Plan [Member] | Restricted Stock [Member] | ' | ' | ' |
Number of stocks outstanding | 0 | ' | ' |
2007 Stock Plan [Member] | ' | ' | ' |
Number of options outstanding | 576,662 | ' | ' |
Number of stocks outstanding | 104,200 | ' | ' |
Maximum issuance of common stock | 4,500,000 | ' | ' |
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% | ' | ' |
Number of shares purchased under the plan | 1,270 | 1,860 | ' |
Cash received upon the issuance of common stock | $55,000 | $56,000 | ' |
Number of shares available for issuance | 1,638,929 | ' | ' |
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 $) | 3 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | |
Stock Options [Member] | Stock Options [Member] | |||
Number of Shares, Outstanding Beginning of Period | 1,175,657 | ' | ' | ' |
Number of options granted | 0 | ' | ' | ' |
Number of Shares, Exercised | -352,966 | ' | ' | ' |
Number of Shares, Canceled | 0 | ' | ' | ' |
Number of Shares, Outstanding Ending of Period | 822,691 | ' | ' | ' |
Number of Shares, Exercisable | 611,372 | ' | ' | ' |
Number of Shares, Vested and expected to vest | 793,255 | ' | ' | ' |
Weighted-Average Exercise Price, Outstanding Beginning of Period | $21.21 | ' | ' | ' |
Weighted-Average Exercise Price, Granted | $0 | ' | ' | ' |
Weighted-Average Exercise Price, Exercised | $14.46 | ' | ' | ' |
Weighted-Average Exercise Price, Canceled | $0 | ' | ' | ' |
Weighted-Average Exercise Price, Outstanding Ending of Period | $24.10 | ' | ' | ' |
Weighted-Average Exercise Price, Exercisable | $23.33 | ' | ' | ' |
Weighted-Average Exercise Price, Vested and expected to vest | $23.97 | ' | ' | ' |
Weighted-Average Remaining Contractual Term, Outstanding (in years) | '4 years 8 months 1 day | ' | ' | ' |
Weighted-Average Remaining Contractual Term, Exercisable (in years) | '3 years 11 months 9 days | ' | ' | ' |
Weighted-Average Remaining Contractual Term, Vested and expected to vest (in years) | '4 years 6 months 29 days | ' | ' | ' |
Aggregate Intrinsic Value, Outstanding | $21,344,914 | ' | ' | ' |
Aggregate Intrinsic Value, Exercisable | 16,335,927 | ' | ' | ' |
Aggregate Intrinsic Value, Vested and expected to vest | 20,685,031 | ' | ' | ' |
Aggregate intrinsic values of options exercised | 12,300,000 | 1,400,000 | ' | ' |
Unrecognized compensation cost related to non-vested awards granted | ' | ' | $1,500,000 | $2,000,000 |
Weighted-average period to recognize compensation cost (in years) | ' | ' | '1 year 9 months 15 days | ' |
Stock_Options_And_Employee_Sto4
Stock Options And Employee Stock Purchase Plan (Assumptions To Estimate Fair Value Of Stock Options) (Details) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' |
Estimated forfeiture rate | 11.07% | 15.00% |
Stock_Options_And_Employee_Sto5
Stock Options And Employee Stock Purchase Plan (Restricted Stock) (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Compensation cost recognized | $2,384,000 | $2,348,000 | ' |
Allocated Share-based Compensation Expense | 2,384,000 | 2,348,000 | ' |
Restricted Stock And Restricted Stock Unit (RSU) [Member] | ' | ' | ' |
Compensation cost recognized | 1,900,000 | 1,600,000 | ' |
Allocated Share-based Compensation Expense | 1,900,000 | 1,600,000 | ' |
Unrecognized compensation cost related to non-vested awards granted | 18,500,000 | ' | 20,200,000 |
Restricted Stock [Member] | ' | ' | ' |
Shares, Nonvested at January 1, 2014 | 1,178,371 | ' | ' |
Shares, Granted | 8,000 | ' | ' |
Shares, Vested | -298,386 | ' | ' |
Shares, Canceled | -509 | ' | ' |
Shares, Nonvested at March 31, 2014 | 887,476 | ' | ' |
Weighted-Average Grant-Date Fair Value, Nonvested at January 1, 2014 | $17.86 | ' | ' |
Weighted-Average Grant-Date Fair Value, Granted | $51.46 | ' | ' |
Weighted-Average Grant-Date Fair Value, Vested | $10.39 | ' | ' |
Weighted-Average Grant-Date Fair Value, Canceled | $0 | ' | ' |
Weighted-Average Grant-Date Fair Value, Nonvested at March 31, 2014 | $20.69 | ' | ' |
Weighted-average period to recognize compensation cost (in years) | '3 years 2 months 12 days | ' | ' |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' |
Shares, Nonvested at January 1, 2014 | 109,725 | ' | ' |
Shares, Granted | 0 | ' | ' |
Shares, Vested | -5,525 | ' | ' |
Shares, Canceled | 0 | ' | ' |
Shares, Nonvested at March 31, 2014 | 104,200 | ' | ' |
Share Based Compensation Equity Awards Other Than Options Expected To Vest Shares | 74,127 | ' | ' |
Weighted-average period to recognize compensation cost (in years) | '3 years 5 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 0 months 22 days | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Expected To Vest Weighted Average Remaining Contractual Term | '1 year 10 months 2 days | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Expected To Vest Intrinsic Value | 3,710,051 | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Outstanding, Aggregate Intrinsic Value | $5,215,210 | ' | ' |
Stock_Options_And_Employee_Sto6
Stock Options And Employee Stock Purchase Plan (Allocation Of Share-Based Compensation Expense) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Allocated Share-based Compensation Expense | $2,384 | $2,348 |
Cost Of Revenues [Member] | ' | ' |
Allocated Share-based Compensation Expense | 154 | 214 |
Sales And Marketing [Member] | ' | ' |
Allocated Share-based Compensation Expense | 491 | 418 |
Research, Development And Engineering [Member] | ' | ' |
Allocated Share-based Compensation Expense | 140 | 106 |
General And Administrative [Member] | ' | ' |
Allocated Share-based Compensation Expense | $1,599 | $1,610 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Earnings Per Share Reconciliation [Abstract] | ' | ' |
Net income attributable to j2 Global, Inc. common shareholders | $28,765 | $22,922 |
Net earnings available to participating securities | -635 | -412 |
Net earnings available to common shareholders | $28,130 | $22,510 |
Weighted-average outstanding shares of common stock - basic | 46,365,158 | 45,160,140 |
Dilutive effect of equity incentive plans | 400,574 | 508,027 |
Weighted-average outstanding shares of common stock - diluted | 46,765,732 | 45,668,167 |
Basic | $0.61 | $0.50 |
Diluted | $0.60 | $0.49 |
Share options excluded from the computation of diluted earnings per share | 0 | 15,000 |
Geographic_Information_Details
Geographic Information (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Total revenues | $134,124 | $113,617 | ' |
United States | 252,281 | ' | 221,922 |
Total long-lived assets | 252,281 | ' | 221,922 |
UNITED STATES | ' | ' | ' |
Total revenues | 91,428 | 76,378 | ' |
United States | 165,160 | ' | 170,247 |
Total long-lived assets | 165,160 | ' | 170,247 |
CANADA | ' | ' | ' |
Total revenues | 17,508 | 18,557 | ' |
IRELAND | ' | ' | ' |
Total revenues | 10,511 | 10,098 | ' |
All Other Countries [Member] | ' | ' | ' |
Total revenues | 14,677 | 8,584 | ' |
United States | 87,121 | ' | 51,675 |
Total long-lived assets | $87,121 | ' | $51,675 |
Segment_Information_Reportable
Segment Information Reportable Segment Information (Reconciliation of Total Segment Operating Income to Consolidated Operating Income) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Segment Reporting Information [Line Items] | ' | ' |
Total revenues | $134,124 | $113,617 |
Operating Income (Loss) | 41,585 | 32,987 |
Global Operating Costs | 8,285 | 7,674 |
Business Cloud Services Segment [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total revenues | 100,830 | 90,739 |
Direct Costs By Segment | 55,612 | 46,081 |
Operating Income (Loss) | 45,218 | 44,657 |
Digital Media Segment [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total revenues | 33,368 | 22,907 |
Direct Costs By Segment | 28,716 | 26,903 |
Operating Income (Loss) | 4,652 | -3,996 |
Intersegment Elimination [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total revenues | -74 | -29 |
Operating Segments [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Operating Income (Loss) | $49,870 | $40,661 |
Segment_Information_Reportable1
Segment Information Reportable Segment Information (Total Assets, Capital Expenditures, Depreciation And Amortization) (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ' | ' | ' |
Assets | $1,178,284 | ' | $1,153,789 |
Property, Plant and Equipment, Additions | 2,936 | 1,933 | ' |
Depreciation, Depletion and Amortization, Nonproduction | 13,137 | 8,762 | ' |
Business Cloud Services Segment [Member] | ' | ' | ' |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ' | ' | ' |
Assets | 848,633 | ' | 818,722 |
Property, Plant and Equipment, Additions | 1,875 | 976 | ' |
Depreciation, Depletion and Amortization, Nonproduction | 8,030 | 5,456 | ' |
Digital Media Segment [Member] | ' | ' | ' |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ' | ' | ' |
Assets | 327,898 | ' | 333,286 |
Property, Plant and Equipment, Additions | 956 | 783 | ' |
Depreciation, Depletion and Amortization, Nonproduction | 4,918 | 3,152 | ' |
Operating Segments [Member] | ' | ' | ' |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ' | ' | ' |
Assets | 1,176,531 | ' | 1,152,008 |
Property, Plant and Equipment, Additions | 2,831 | 1,759 | ' |
Depreciation, Depletion and Amortization, Nonproduction | 12,948 | 8,608 | ' |
Corporate [Member] | ' | ' | ' |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ' | ' | ' |
Assets | 1,753 | ' | 1,781 |
Property, Plant and Equipment, Additions | 105 | 174 | ' |
Depreciation, Depletion and Amortization, Nonproduction | $189 | $154 | ' |
Unrestricted_Subsidiaries_Unre
Unrestricted Subsidiaries Unrestricted Subsidiaries (Financial Position) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Cash and cash equivalents | $208,068 | $207,801 | $193,126 | $218,680 |
Accounts receivable | 63,666 | 67,245 | ' | ' |
Prepaid expenses and other current assets | 24,343 | 20,064 | ' | ' |
Deferred income taxes | 2,110 | 3,126 | ' | ' |
Assets, Current | 369,487 | 389,025 | ' | ' |
Property and equipment, net | 38,829 | 31,200 | ' | ' |
Tradenames, net | 82,034 | 83,108 | ' | ' |
Customer Relationships, Net | 124,979 | 100,980 | ' | ' |
Goodwill | 483,255 | 457,422 | ' | ' |
Other purchased intangibles, net | 11,158 | 10,915 | ' | ' |
Deferred income taxes | 1,369 | 1,845 | ' | ' |
Other assets | 3,383 | 3,413 | ' | ' |
Assets | 1,178,284 | 1,153,789 | ' | ' |
Accounts payable and accrued expenses | 54,084 | 69,570 | ' | ' |
Income taxes payable | 4,837 | 1,569 | ' | ' |
Deferred revenue, current | 49,606 | 36,326 | ' | ' |
Deferred Tax Liabilities, Net, Current | 344 | 1,892 | ' | ' |
Liabilities, Current | 114,582 | 114,892 | ' | ' |
Deferred income taxes | 34,703 | 35,833 | ' | ' |
Other long-term liabilities | 3,873 | 1,458 | ' | ' |
Liabilities | 449,918 | 447,371 | ' | ' |
Commitments and contingencies | 0 | 0 | ' | ' |
Common Stock, Value, Issued | 467 | 461 | ' | ' |
Additional paid-in capital | 227,149 | 216,872 | ' | ' |
Retained Earnings (Accumulated Deficit) | 498,318 | 484,850 | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax | 2,432 | 4,235 | ' | ' |
Liabilities and Equity | 1,178,284 | 1,153,789 | ' | ' |
Ziff Davis, LLC [Member] | ' | ' | ' | ' |
Cash and cash equivalents | 23,582 | ' | ' | ' |
Accounts receivable | 38,793 | ' | ' | ' |
Prepaid expenses and other current assets | 3,177 | ' | ' | ' |
Deferred income taxes | 2,704 | ' | ' | ' |
Assets, Current | 68,256 | ' | ' | ' |
Property and equipment, net | 13,217 | ' | ' | ' |
Tradenames, net | 48,796 | ' | ' | ' |
Customer Relationships, Net | 50,419 | ' | ' | ' |
Goodwill | 140,419 | ' | ' | ' |
Other purchased intangibles, net | 3,583 | ' | ' | ' |
Deferred income taxes | 1,510 | ' | ' | ' |
Other assets | 1,698 | ' | ' | ' |
Assets | 327,898 | ' | ' | ' |
Accounts payable and accrued expenses | 11,560 | ' | ' | ' |
Income taxes payable | 4,942 | ' | ' | ' |
Deferred revenue, current | 2,831 | ' | ' | ' |
Deferred Tax Liabilities, Net, Current | 679 | ' | ' | ' |
Liabilities, Current | 20,012 | ' | ' | ' |
Deferred income taxes | 21,696 | ' | ' | ' |
Other long-term liabilities | 1,443 | ' | ' | ' |
Liabilities | 43,151 | ' | ' | ' |
Additional paid-in capital | 296,099 | ' | ' | ' |
Retained Earnings (Accumulated Deficit) | -11,310 | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax | -42 | ' | ' | ' |
Stockholders' Equity Attributable to Parent | 284,747 | ' | ' | ' |
Liabilities and Equity | $327,898 | ' | ' | ' |
Unrestricted_Subsidiaries_Unre1
Unrestricted Subsidiaries Unrestricted Subsidiaries (Results of Operations) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Total revenues | $134,124 | $113,617 |
Cost of Goods Sold, Subscription | 23,388 | 20,235 |
Gross Profit | 110,736 | 93,382 |
Selling and Marketing Expense | 32,959 | 29,638 |
Research and Development Expense | 7,213 | 6,746 |
General and Administrative Expense | 28,979 | 24,011 |
Operating Expenses | 69,151 | 60,395 |
Operating Income (Loss) | 41,585 | 32,987 |
Interest expense (income), net | 4,948 | 4,877 |
Other expense (income), net | -319 | -161 |
Income before income taxes | 36,956 | 28,271 |
Income Tax Expense (Benefit) | 8,191 | 5,500 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 28,765 | 22,771 |
Ziff Davis, LLC [Member] | ' | ' |
Total revenues | 33,368 | 22,907 |
Cost of Goods Sold, Subscription | 3,852 | 3,593 |
Gross Profit | 29,516 | 19,314 |
Selling and Marketing Expense | 14,958 | 12,787 |
Research and Development Expense | 1,072 | 1,978 |
General and Administrative Expense | 8,834 | 8,545 |
Operating Expenses | 24,864 | 23,310 |
Operating Income (Loss) | 4,652 | -3,996 |
Interest expense (income), net | 1 | 1,349 |
Other expense (income), net | -342 | 70 |
Income before income taxes | 4,993 | -5,415 |
Income Tax Expense (Benefit) | $2,027 | ($2,332) |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income Roll Forward (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Accumulated Other Comprehensive Income (Loss) Roll Forward [Line Items] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | $3,416 | ' | $6,056 |
Unrealized gain on available-for-sale investments, net of tax (benefit) | -2,657 | ' | ' |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | 837 | ' | ' |
Other Comprehensive Income Loss Arising During Period Total Net of Tax | -1,820 | ' | ' |
Foreign currency translation adjustment, net of tax (benefit) | 837 | -1,753 | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance | 4,235 | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance | 2,432 | ' | ' |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | 17 | ' | ' |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment Realized upon Sale or Liquidation, Net of Tax | 0 | ' | ' |
Other Comprehensive Income Loss Reclassification Adjustments Total Net of Tax | 17 | ' | ' |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | -2,640 | 2,821 | ' |
Other Comprehensive Income (Loss), Net of Tax | -1,803 | 1,068 | ' |
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | ($984) | ' | ($1,821) |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Reclassification out of Accumulated Other Comprehensive Income (Loss)) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
ReclassificationOutOfAccumulatedOtherComprehensiveIncomeTableTextBlock [Line Items] | ' | ' |
Other expense (income), net | ($319) | ($161) |
Income Tax Expense (Benefit) | 8,191 | 5,500 |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | 17 | ' |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | 0 | ' |
Other Comprehensive Income Loss Reclassification Adjustments Total Net of Tax | 17 | ' |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ' | ' |
ReclassificationOutOfAccumulatedOtherComprehensiveIncomeTableTextBlock [Line Items] | ' | ' |
Other expense (income), net | 26 | ' |
Income Tax Expense (Benefit) | ($9) | ' |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 0 Months Ended | |
7-May-14 | Feb. 12, 2014 | |
Subsequent Events [Abstract] | ' | ' |
Dividends declared date | 7-May-14 | 11-Feb-14 |
Dividend amount to be paid, per common share | $0.27 | $0.26 |
Date dividend is payable | 3-Jun-14 | 10-Mar-14 |
Date shareholders must be on record for dividend | 19-May-14 | 24-Feb-14 |