Document_and_Entity_Informatio
Document and Entity Information Document | 9 Months Ended | |
Sep. 30, 2014 | Nov. 04, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'J2 GLOBAL, INC. | ' |
Entity Central Index Key | '0001084048 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 47,806,494 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||||
ASSETS | ' | ' | ' | ' | ' |
Cash and cash equivalents | $514,997 | ' | $207,801 | $199,181 | $218,680 |
Short-term investments | 107,418 | ' | 90,789 | ' | ' |
Accounts receivable, net of allowances of $3,582 and $4,105, respectively | 75,016 | ' | 67,245 | ' | ' |
Prepaid expenses and other current assets | 24,817 | ' | 20,064 | ' | ' |
Deferred income taxes | 7,451 | ' | 3,126 | ' | ' |
Total current assets | 729,699 | ' | 389,025 | ' | ' |
Long-term investments | 61,415 | ' | 47,351 | ' | ' |
Property and equipment, net | 38,787 | ' | 31,200 | ' | ' |
Tradenames, net | 84,193 | ' | 83,108 | ' | ' |
Patent and patent licenses, net | 26,892 | ' | 28,530 | ' | ' |
Customer relationships, net | 144,398 | ' | 100,980 | ' | ' |
Goodwill | 533,403 | ' | 457,422 | ' | ' |
Other purchased intangibles, net | 8,021 | ' | 10,915 | ' | ' |
Deferred income taxes | 0 | ' | 1,845 | ' | ' |
Other assets | 13,196 | ' | 3,413 | ' | ' |
Total assets | 1,640,004 | ' | 1,153,789 | ' | ' |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' | ' | ' | ' |
Accounts payable and accrued expenses | 70,781 | ' | 69,570 | ' | ' |
Income taxes payable | 1,187 | ' | 1,569 | ' | ' |
Deferred revenue, current | 57,399 | ' | 36,326 | ' | ' |
Liability for uncertain tax positions | 0 | ' | 5,535 | ' | ' |
Deferred income taxes | 591 | ' | 1,892 | ' | ' |
Other current liabilities | 540 | ' | 0 | ' | ' |
Total current liabilities | 130,498 | ' | 114,892 | ' | ' |
Long-term Debt | 591,464 | ' | 245,670 | ' | ' |
Liability for uncertain tax positions | 35,793 | ' | 38,329 | ' | ' |
Deferred income taxes | 61,710 | ' | 35,833 | ' | ' |
Deferred revenue, non-current | 10,945 | ' | 11,189 | ' | ' |
Other long-term liabilities | 6,033 | ' | 1,458 | ' | ' |
Total liabilities | 836,443 | ' | 447,371 | ' | ' |
Commitments and contingencies | 0 | ' | 0 | ' | ' |
Common stock, $0.01 par value. Authorized 95,000,000; total issued and outstanding 46,892,811 and 46,105,076 shares, respectively | 469 | ' | 461 | ' | ' |
Additional paid-in capital | 270,857 | ' | 216,872 | ' | ' |
Retained Earnings (Accumulated Deficit) | 535,567 | ' | 484,850 | ' | ' |
Accumulated other comprehensive loss | -3,332 | 6,651 | 4,235 | ' | ' |
Stockholders' Equity Attributable to Noncontrolling Interest | ' | ' | 0 | ' | ' |
Total stockholders' equity | 803,561 | ' | 706,418 | ' | ' |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 803,561 | ' | 706,418 | ' | ' |
Total liabilities and stockholders' equity | 1,640,004 | ' | 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 $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Allowance for doubtful accounts | $3,582 | $4,105 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 95,000,000 | 95,000,000 |
Common stock, shares issued | 46,892,811 | 46,105,076 |
Common stock, shares outstanding | 46,892,811 | 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 | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Revenues: | ' | ' | ' | ' |
Total revenues | $153,018 | $127,788 | $431,886 | $382,766 |
Cost of revenues (including share-based compensation of $82 and $263 for the three and nine months of 2014, respectively, and $162 and $581 for the three and nine months of 2013, respectively) | 28,044 | 21,801 | 76,991 | 64,715 |
Gross profit | 124,974 | 105,987 | 354,895 | 318,051 |
Operating expenses: | ' | ' | ' | ' |
Sales and marketing (including share-based compensation of $443 and $1,360 for the three and nine months of 2014, respectively, and $465 and $1,315 for the three and nine months of 2013, respectively) | 37,047 | 34,787 | 105,335 | 99,638 |
Research, development and engineering (including share-based compensation of $175 and $537 for the three and nine months of 2014, respectively, and $103 and $311 for the three and nine months of 2013, respectively) | 7,637 | 6,000 | 22,451 | 19,134 |
General and administrative (including share-based compensation of $1,491 and $4,378 for the three and nine months of 2014, respectively, and $1,695 and $4,901 for the three and nine months of 2013, respectively) | 33,812 | 25,892 | 94,209 | 74,377 |
Total operating expenses | 78,496 | 66,679 | 221,995 | 193,149 |
Income (loss) from operations | 46,478 | 39,308 | 132,900 | 124,902 |
Interest expense (income), net | 10,123 | 4,972 | 20,753 | 14,709 |
Other expense (income), net | 251 | -396 | -254 | -600 |
Income (loss) before income taxes | 36,104 | 34,732 | 112,401 | 110,793 |
Income Tax Expense (Benefit) | 7,345 | 7,105 | 19,828 | 24,428 |
Net income attributable to j2 Global, Inc. common shareholders | 28,759 | 27,806 | 92,573 | 86,768 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 28,759 | 27,627 | 92,573 | 86,365 |
Net Income (Loss) Attributable to Noncontrolling Interest | $0 | ($179) | $0 | ($403) |
Net income per common share: | ' | ' | ' | ' |
Basic | $0.60 | $0.60 | $1.94 | $1.88 |
Diluted | $0.60 | $0.59 | $1.93 | $1.85 |
Weighted average shares outstanding: | ' | ' | ' | ' |
Basic | 46,845,477 | 45,729,171 | 46,653,836 | 45,441,265 |
Diluted | 47,163,912 | 46,291,631 | 46,988,427 | 46,066,604 |
Cash dividends paid per common share | $0.28 | $0.25 | $0.81 | $0.72 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements Of Income Condensed Consolidated Statements of Income (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Allocated Share-based Compensation Expense | $2,191 | $2,425 | $6,538 | $7,108 |
Cost of Sales [Member] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | 82 | 162 | 263 | 581 |
Selling and Marketing Expense [Member] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | 443 | 465 | 1,360 | 1,315 |
Research and Development Expense [Member] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | 175 | 103 | 537 | 311 |
General and Administrative Expense [Member] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | $1,491 | $1,695 | $4,378 | $4,901 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statement of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $28,759 | $27,627 | $92,573 | $86,365 |
Foreign currency translation adjustment, net of tax expense (benefit) of ($2,456) and ($1,757) for three and nine months of 2014, respectively, and $759 and ($219) for the three and nine months of 2013, respectively | -6,977 | 1,590 | -4,806 | -526 |
Unrealized gain (loss) on available-for-sale investments, net of tax expense (benefit) of ($1,440) and ($1,295) for the three and nine months of 2014, respectively, and $2,465 and $5,380 for the three and nine months of and 2013, respectively | -3,006 | 4,259 | -2,761 | 9,260 |
Other Comprehensive Income (Loss), Net of Tax | -9,983 | 5,849 | -7,567 | 8,734 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 18,776 | 33,476 | 85,006 | 95,099 |
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | -179 | 0 | -403 |
Foreign currency translation adjustment attributable to noncontrolling interest, net of tax expense (benefit) of $0 for the three and nine months of 2014, respectively, and ($3) and ($20) for the three and nine months of 2013, respectively | 0 | -13 | 0 | -35 |
Comprehensive Income | $18,776 | $33,668 | $85,006 | $95,537 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statement of Comprehensive Income Condensed Consolidated Statement of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Foreign currency translation adjustment | ($2,456) | $759 | ($1,757) | ($219) |
Unrealized gain on available-for-sale investments | -1,440 | 2,465 | -1,295 | 5,380 |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax, Portion Attributable to Noncontrolling Interest | $0 | $0 | $0 | ($20) |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statement Of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $92,573 | $86,365 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 43,307 | 28,424 |
Amortization of discount or premium of investments | 983 | 1,323 |
Amortization of financing costs and discounts | 2,828 | 456 |
Share-based compensation | 6,538 | 7,108 |
Excess tax benefits from share-based compensation | -6,728 | -3,171 |
Provision for doubtful accounts | 3,278 | 2,565 |
Deferred income taxes | -2,954 | 472 |
(Gain) loss on sale of available-for-sale investments | -69 | 103 |
Decrease (increase) in: | ' | ' |
Accounts receivable | 1,267 | -7,495 |
Prepaid expenses and other current assets | -4,124 | 945 |
Other assets | -128 | 182 |
(Decrease) increase in: | ' | ' |
Accounts payable and accrued expenses | -2,949 | 4,035 |
Income taxes payable | 7,565 | -3,286 |
Deferred revenue | -815 | 13,049 |
Liability for uncertain tax positions | -8,071 | 3,867 |
Other | -380 | -62 |
Net cash provided by operating activities | 132,121 | 134,880 |
Cash flows from investing activities: | ' | ' |
Maturity of certificates of deposit | 14,520 | 42,615 |
Purchase of certificates of deposit | 0 | -22,071 |
Sales of available-for-sale investments | 60,456 | 82,889 |
Purchase of available-for-sale investments | -112,983 | -139,955 |
Purchases of property and equipment | -7,755 | -11,116 |
Proceeds from sale of assets | 608 | 1 |
Acquisition of businesses, net of cash received | -118,238 | -81,566 |
Purchases of intangible assets | -4,806 | -2,784 |
Net cash used in investing activities | -168,198 | -131,987 |
Cash flows from financing activities: | ' | ' |
Proceeds from Issuance of Long-term Debt | 402,500 | 0 |
Debt issuance costs | -11,527 | -47 |
Repurchases of common stock and restricted stock | -5,473 | -4,513 |
Issuance of common stock under employee stock purchase plan | 199 | 161 |
Exercise of stock options | 6,441 | 13,515 |
Dividends paid | -38,547 | -33,267 |
Excess tax benefits from share-based compensation | 6,728 | 3,171 |
Deferred payments for acquisitions | -14,316 | 0 |
Proceeds from (Payments for) Other Financing Activities | -765 | -171 |
Net cash used in financing activities | 345,240 | -21,151 |
Effect of exchange rate changes on cash and cash equivalents | -1,967 | -1,241 |
Net change in cash and cash equivalents | 307,196 | -19,499 |
Cash and cash equivalents | 514,997 | ' |
Cash and cash equivalents at end of period | $514,997 | ' |
Basis_Of_Presentation
Basis Of Presentation | 9 Months Ended |
Sep. 30, 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 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 although the Company believes that that disclosures made are adequate to make that information not misleading. 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. | |
Holding Company Reorganization | |
On June 10, 2014, j2 Global, Inc., a Delaware corporation, completed a corporate reorganization (the “Holding Company Reorganization”) pursuant to which j2 Global, Inc. (the “Predecessor”), merged with j2 Merger Sub, Inc., a Delaware corporation and an indirect, wholly owned subsidiary of the Predecessor, and changed its name to “j2 Cloud Services, Inc.” The Predecessor surviving the merger became a direct, wholly owned subsidiary of a new public holding company, j2 Global Holdings, Inc. (the “Holding Company”), which in connection with the merger changed its name to j2 Global, Inc. | |
At the effective time of the merger and in connection with the Holding Company Reorganization, all outstanding shares of common stock and preferred stock of the Predecessor were automatically converted into identical shares of common stock or preferred stock, as applicable, of the Holding Company on a one-for-one basis, and the Predecessor’s existing stockholders and other equity holders became stockholders and equity holders, as applicable, of the Holding Company in the same amounts and percentages as they were in the Predecessor prior to the Holding Company Reorganization. | |
Further information related to the merger and the Holding Company Reorganization is contained in the Agreement and Plan of Merger set forth as an exhibit to the Form 8-K filed with the Securities and Exchange Commission on June 10, 2014. | |
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 materially differ from those estimates. | |
Allowances for Doubtful Accounts | |
j2 Global reserves for receivables it may not be able to collect. The 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. The 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 September 30, 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 third-party costs incurred in connection with its sale of debt within long-term other assets and recorded the amounts paid to the lender as 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 September 30, 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. | |
Earnings Per Common Share | |
Earnings per common share ("EPS") is calculated pursuant to the two-class method as defined in ASC Topic No. 260, Earnings per Share (“ASC 260”), which specifies that all outstanding unvested share-based payment awards that contain rights to nonforfeitable dividends or dividend equivalents are considered participating securities and should be included in the computation of EPS pursuant to the two-class method. | |
Basic EPS is calculated by dividing net distributed and undistributed earnings allocated to common shareholders, excluding participating securities and the net income attributable to noncontrolling interest, by the weighted-average number of common shares outstanding. The Company's participating securities consist of its unvested share-based awards that contain rights to nonforfeitable dividends or dividend equivalents. | |
Diluted EPS includes the determinants of basic EPS and, in addition, reflects the impact of other potentially dilutive shares outstanding during the period. The dilutive effect of participating securities is calculated under the more dilutive of either the treasury method or the two-class method. In connection with the Company's issuance of convertible notes (See Note 7 - Long Term Debt) during the second quarter of 2014, the Company currently intends to satisfy the conversion obligation by paying and delivering a combination of cash and shares of the Company's common stock, where cash will be used to settle each $1,000 of principal and the remainder, if any, will be settled via the Company's common shares. As a result, the potential common shares to satisfy the excess conversion value will be included in the presentation of diluted EPS only to the extent that the conversion features are in-the-money and the effect is dilutive. | |
Reclassifications | |
Certain prior year reported amounts have been reclassified to conform with the 2014 presentation. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In July 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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. | |
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, as a new Topic, Accounting Standards Codification (ASC) Topic 606. The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU is effective for annual periods beginning after December 15, 2016 and shall be applied retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The Company is evaluating the effect and methodology of adopting this new accounting guidance upon the Company's results of operations, cash flows and financial position. | |
In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties About an Entity's Ability to Continue as a Going Concern. The new standard provides guidance around management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The adoption of this standard is not expected to have a material impact on our financial statements. |
Business_Acquisition
Business Acquisition | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Business Combinations [Abstract] | ' | |||||||
Business Acquisition | ' | |||||||
Business Acquisitions | ||||||||
The Company completed the following acquisitions during the first nine months of fiscal 2014, paying the purchase price in cash in each transaction: (a) share purchase of City Numbers®, a UK-based provider of inbound DIDs in over 80 countries; (b) share and asset purchase of Securstore®, an Iceland-based provider of cloud backup and recovery services; (c) share purchase of Livedrive®, a UK-based provider of online backup with added file synchronization features; (d) asset purchase of Faxmate, an Australia-based provider of Internet fax services; (e) share purchase of Critical Software Ltd., a UK-based email security and management company operating under the brand name iCriticalTM; (f) share and asset purchase of Online Backup Company Norway AS and a subsidiary, a Nordic-based provider of online backup services; (g) share and asset purchase of emedia Communications LLC, a US and UK-based provider of research to information technology (IT) buyers and leads to IT vendors; (h) asset purchase of Contactology, Inc., a North Carolina-based provider of email marketing services; (i) asset purchase of Back Up My Info!, a NY-based provider of online backup services; (j) asset purchase of Web24, an Australia-based provider of domain name, web hosting, dedicated or shared servers and related services; (k) equity purchase of Excel Micro, LLC, a Philadelphia-based provider of cloud email security and archiving solutions; and (l) other smaller share and asset acquisitions in the Business Cloud Services segment. | ||||||||
The condensed consolidated statement of income, since the date of each acquisition, and balance sheet, as of September 30, 2014, reflect the results of operations of all 2014 acquisitions. For the nine months ended September 30, 2014, these acquisitions contributed $32 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 $176.3 million, net of cash acquired and including $34.9 million of 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 | $ | 11,291 | ||||||
Property and Equipment | 8,686 | |||||||
Other Assets | 3,339 | |||||||
Deferred Tax Asset | 1,877 | |||||||
Software | 2,474 | |||||||
Trade Names | 2,387 | |||||||
Customer Relationships | 65,153 | |||||||
Other Intangibles | 1,477 | |||||||
Goodwill | 79,600 | |||||||
Total | $ | 176,284 | ||||||
The initial accounting for these acquisitions is incomplete and subject to change, which may be significant. j2 Global has recorded provisional amounts which may be based upon past acquisitions with similar attributes for certain intangible assets (including trade names, software and customer relationships), preliminary working capital and related tax items. Actual amounts recorded upon finalization of the purchase accounting may differ materially from the information presented in this Quarterly Report on Form 10-Q. | ||||||||
Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired and represents intangible assets that do not qualify for separate recognition. Goodwill recognized associated with these acquisitions during the nine months ended September 30, 2014 is $79.6 million, of which $20.9 million is expected to be deductible for income tax purposes. | ||||||||
Pro Forma Financial Information for 2014 Acquisitions | ||||||||
The following unaudited pro forma supplemental information is based on estimates and assumptions, which j2 Global believes are reasonable. However, this information is not necessarily indicative of the Company's consolidated financial position or results of income in future periods or the results that actually would have been realized had j2 Global and the acquired businesses been combined companies during the periods presented. These pro forma results exclude any savings or synergies that would have resulted from these business acquisitions had they occurred on January 1, 2013 and do not take into consideration the exiting of any acquired lines of business. This unaudited pro forma supplemental information includes incremental intangible asset amortization and other charges as a result of the acquisitions, net of the related tax effects. | ||||||||
The supplemental information on an unaudited pro forma financial basis presents the combined results of j2 Global and its 2014 acquisitions as if each acquisition had occurred on January 1, 2013 (in thousands, except per share amounts): | ||||||||
Nine Months Ended September 30, 2014 | Nine Months Ended September 30, 2013 | |||||||
(unaudited) | (unaudited) | |||||||
Revenues | $ | 474,749 | $ | 440,030 | ||||
Net Income | $ | 96,031 | $ | 89,043 | ||||
EPS - Basic | $ | 2.01 | $ | 1.93 | ||||
EPS - Diluted | $ | 2 | $ | 1.9 | ||||
Investments
Investments | 9 Months Ended | |||||||||||||||
Sep. 30, 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): | ||||||||||||||||
September 30, | December 31, 2013 | |||||||||||||||
2014 | ||||||||||||||||
Due within 1 year | $ | 81,410 | $ | 46,339 | ||||||||||||
Due within more than 1 year but less than 5 years | 58,955 | 44,865 | ||||||||||||||
Due within more than 5 years but less than 10 years | — | — | ||||||||||||||
Due 10 years or after | 2,459 | 2,486 | ||||||||||||||
Total | $ | 142,824 | $ | 93,690 | ||||||||||||
The following table summarizes the Company’s investments designated as available-for-sale (in thousands): | ||||||||||||||||
September 30, | December 31, 2013 | |||||||||||||||
2014 | ||||||||||||||||
Available-for-sale | $ | 168,833 | $ | 123,737 | ||||||||||||
Total | $ | 168,833 | $ | 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 September 30, 2014 and December 31, 2013 aggregated by major security type (in thousands): | ||||||||||||||||
Amortized | Gross | Gross | Fair | |||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||
Gains | Losses | |||||||||||||||
September 30, 2014 | ||||||||||||||||
Debt Securities | $ | 142,730 | $ | 188 | $ | (94 | ) | $ | 142,824 | |||||||
Equity Securities | 20,610 | 5,631 | (232 | ) | 26,009 | |||||||||||
Total | $ | 163,340 | $ | 5,819 | $ | (326 | ) | $ | 168,833 | |||||||
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 September 30, 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 September 30, 2014. At September 30, 2014, equity securities were recorded as available-for-sale and represent a strategic equity investment. At September 30, 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 September 30, 2014 and December 31, 2013, but in a continuous unrealized loss position for less than 12 months had a fair value of $78.8 million and $37.3 million, respectively. Investments in a continuous unrealized loss position for 12 months and longer as of September 30, 2014 and December 31, 2013 had a fair value of $0.2 million 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 | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Disclosures [Text Block] | ' | |||||||||||||||
Fair Value Measurements | ||||||||||||||||
j2 Global complies with the accounting guidance 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. 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, the Company uses 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 – Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||||||||||||||
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's money market funds and its marketable equity securities are classified within Level 1. The Company values these Level 1 investments using quoted market prices. The Company's debt investments, time deposits and commercial paper, all of which have counterparties with high credit ratings, are classified within Level 2. The Company values these Level 2 investments based on quoted market prices or model-driven valuations using significant inputs derived from or corroborated by observable market data. | ||||||||||||||||
The fair value of the Senior Notes and Convertible Notes (See Note 7 - Long-Term Debt) are determined using recent quoted market prices or dealer quotes for such securities, if available, which are Level 1 inputs. If such information is unavailable, the fair value of these securities are determined using quoted market prices or dealer quotes for instruments with similar maturities and other terms and credit ratings, which are Level 2 inputs. If none of the above information is available, the fair value of these securities is determined using cash-flow models of the scheduled payments and, for the Convertible Notes, discounted at market interest rates for comparable debt without the conversion feature, which are also Level 2 inputs. The total carrying value of long-term debt was $591.5 million and $245.7 million, and the corresponding fair value was approximately $678.3 million and $283.3 million, at September 30, 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): | ||||||||||||||||
September 30, 2014 | Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||
Cash equivalents: | ||||||||||||||||
Money market and other funds | $ | 328,786 | $ | — | $ | — | $ | 328,786 | ||||||||
Time deposits | — | 52,057 | — | 52,057 | ||||||||||||
Corporate commercial papers | — | 12,004 | — | 12,004 | ||||||||||||
Equity securities | 26,009 | — | — | 26,009 | ||||||||||||
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | — | 42,387 | — | 42,387 | ||||||||||||
Debt securities issued by states of the U.S. and political subdivisions of the states | — | 2,119 | — | 2,119 | ||||||||||||
Debt securities issued by foreign governments | — | 2,033 | — | 2,033 | ||||||||||||
Corporate debt securities | — | 96,285 | — | 96,285 | ||||||||||||
Total | $ | 354,795 | $ | 206,885 | $ | — | $ | 561,680 | ||||||||
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 | ||||||||
Management reevaluated the inputs used in determining the level of fair value as of September 30, 2014 and transferred $206.9 million of financial instruments from Level 1 to Level 2. The Company determined the fair value of such transfer as of the end of the reporting period. | ||||||||||||||||
Losses associated with other-than-temporary impairments are recorded as a component of other income (expenses). Gains and losses not associated with other-than-temporary impairments are recorded as a component of other comprehensive income. |
Goodwill_And_Intangible_Assets
Goodwill And Intangible Assets | 9 Months Ended | |||||||||||||
Sep. 30, 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 nine months ended September 30, 2014 are as follows (in thousands): | ||||||||||||||
Balance as of January 1, 2014 | $ | 457,422 | ||||||||||||
Goodwill acquired (Note 3) | 79,600 | |||||||||||||
Purchase accounting adjustments | (975 | ) | ||||||||||||
Foreign exchange translation | (2,644 | ) | ||||||||||||
Balance as of September 30, 2014 | $ | 533,403 | ||||||||||||
The Company's goodwill balance was $533.4 million as of September 30, 2014, of which $385.3 million and $148.1 million were recorded in the Business Cloud Services and Digital Media segments, respectively. Purchase accounting adjustments relate to adjustments to goodwill in connection with prior year business acquisitions. | ||||||||||||||
Intangible assets are summarized as of September 30, 2014 and December 31, 2013 as follows (in thousands): | ||||||||||||||
Intangible Assets with Indefinite Lives: | ||||||||||||||
September 30, | 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 September 30, 2014, intangible assets subject to amortization relate primarily to the following (in thousands): | ||||||||||||||
Weighted-Average | Historical | Accumulated | Net | |||||||||||
Amortization | Cost | Amortization | ||||||||||||
Period | ||||||||||||||
Tradenames | 16.6 years | $ | 69,067 | $ | (12,253 | ) | $ | 56,814 | ||||||
Patent and patent licenses | 7.8 years | 62,836 | (35,944 | ) | 26,892 | |||||||||
Customer relationships | 8.5 years | 201,827 | (57,429 | ) | 144,398 | |||||||||
Other purchased intangibles | 5.1 years | 20,183 | (17,594 | ) | 2,589 | |||||||||
Total | $ | 353,913 | $ | (123,220 | ) | $ | 230,693 | |||||||
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 $10.7 million and $7.5 million for the three month periods ended September 30, 2014 and 2013, respectively, and $32.2 million and $21.6 million for the nine month periods ended September 30, 2014 and 2013, respectively. Amortization expense is estimated to approximate $44.3 million, $45.6 million, $40.0 million, $33.1 million and $23.8 million for fiscal years 2014 through 2018 respectively, and $76.1 million thereafter through the duration of the amortization period. |
Long_Term_Debt
Long Term Debt | 9 Months Ended | |||
Sep. 30, 2014 | ||||
Long-term Debt, Unclassified [Abstract] | ' | |||
Debt Disclosure [Text Block] | ' | |||
Long-Term Debt | ||||
8.0% Senior Notes | ||||
On July 26, 2012, j2 Cloud Services, Inc. (formerly j2 Global, Inc.), a subsidiary of j2 Global, Inc., issued $250 million aggregate principal amount of 8.0% senior unsecured notes (the "Senior Notes") due August 1, 2020. j2 Cloud Services, Inc. received proceeds of $245 million in cash, net of initial purchaser's discounts and commissions of $5 million. As of September 30, 2014, the unamortized discount on the Senior Notes was approximately $3.9 million. Other fees were incurred in connection with the issuance of the Senior Notes and have an unamortized balance of $1.1 million as of September 30, 2014, which is recorded within 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 Cloud Services, Inc. has the option to call the Senior Notes in whole or in part after August 1, 2016, subject to certain premiums as defined in the indenture governing the Senior Notes plus accrued and unpaid interest. In addition, at any time before August 1, 2016, j2 Cloud Services, Inc. may redeem the Senior 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 Cloud Services, Inc. may redeem up to 35% of the aggregate principal amount of the Senior 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 Senior Notes at 101% of the principal amount of the Senior Notes plus accrued and unpaid interest, if any, to the repurchase date. The Senior Notes are not guaranteed by any of j2 Cloud Services, Inc.'s subsidiaries as of September 30, 2014, because, as of such date, all of j2 Cloud Services, Inc.'s existing domestic restricted subsidiaries are deemed insignificant subsidiaries (as that term is defined in the indenture) or are designated as unrestricted subsidiaries. If j2 Cloud Services, Inc. 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 restricted 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 Cloud Services, Inc.'s obligations under the Senior Notes. In connection with the issuance of the Convertible Notes (defined below), j2 Global, Inc. unconditionally guaranteed, on an unsecured basis, the obligations of j2 Cloud Services, Inc. under the Senior Notes, | ||||
The indenture to the Senior Notes contains restrictive and other covenants applicable to j2 Cloud Services, Inc. and subsidiaries designated as restricted subsidiaries, including but not limited to limitations on debt and disqualified or preferred stock, restricted payments, liens, sale and leaseback transactions, dividends and other payment restrictions, asset sales and transactions with affiliates. As of September 30, 2014, j2 Cloud Services, Inc. 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. | ||||
As of September 30, 2014, the estimated fair value of the Senior Notes was approximately $273.3 million and was based on the quoted market prices of debt instruments with similar terms, credit rating and maturities of the Senior Notes as of September 30, 2014. | ||||
3.25% Convertible Notes | ||||
On June 10, 2014, j2 Global issued $402.5 million (including the subsequent exercise of the underwriters option) aggregate principal amount of 3.25% convertible senior notes due June 15, 2029 (the “Convertible Notes”). j2 Global received proceeds of $391.4 million in cash, net of initial purchaser's discounts and commissions. The net proceeds were available for general corporate purposes, which may include working capital, acquisitions, retirement of debt and other business opportunities. The Convertible Notes bear interest at a rate of 3.25% per annum, payable semiannually in arrears on June 15 and December 15 of each year, beginning on December 15, 2014. Beginning with the six-month interest period commencing on June 15, 2021, the Company must pay contingent interest on the Convertible Notes during any six-month interest period if the trading price per $1,000 principal amount of the Convertible Notes for each of the five trading days immediately preceding the first day of such interest period equals or exceeds $1,300. Any contingent interest payable on the Convertible Notes will be in addition to the regular interest payable on the Convertible Notes. | ||||
Holders may surrender their Convertible Notes for conversion at any time prior to the close of business on the business day immediately preceding the maturity date only if one or more of the following conditions is satisfied: (i) during any calendar quarter commencing after the calendar quarter ending on September 30, 2014 (and only during such calendar quarter), if the closing sale price of our common stock for at least 20 trading days in the period of 30 consecutive trading days ending on the last trading day of the calendar quarter immediately preceding the calendar quarter in which the conversion occurs is more than 130% of the applicable conversion price of the Convertible Notes on each such trading day; (ii) during the five consecutive business day period following any ten consecutive trading day period in which the trading price for the Convertible Notes for each such trading day was less than 98% of the product of (a) the closing sale price of our common stock on each such trading day and (b) the applicable conversion rate on each such trading day; (iii) if j2 Global calls any or all of the Convertible Notes for redemption, at any time prior to the close of business on the business day prior to the redemption date; (iv) upon the occurrence of specified corporate events; or (v) during either the period beginning on, and including, March 15, 2021 and ending on, but excluding, June 20, 2021 or the period beginning on, and including, March 15, 2029 and ending on, but excluding, the maturity date. j2 Global will settle conversions of Convertible Notes by paying or delivering, as the case may be, cash, shares of our common stock or a combination thereof at our election. The Company currently intends to satisfy our conversion obligation by paying and delivering a combination of cash and shares of the Company's common stock, where cash will be used to settle each $1,000 of principal and the remainder, if any, will be settled via the Company's common shares. | ||||
The initial conversion rate is 14.4159 shares of our common stock for each $1,000 principal amount of Convertible Notes, which represents an initial conversion price of approximately $69.37 per share of our common stock based on the Company's closing stock price at issuance. The conversion rate is subject to adjustment for certain events as set forth in the indenture governing the Convertible Notes and described in the Prospectus Supplement filed with the Securities and Exchange Commission on June 13, 2014 ("Prospectus Supplement") in connection with the offer and sale of the Convertible Notes, but will not be adjusted for accrued interest. In addition, following certain corporate events that occur on or prior to June 20, 2021, j2 Global will increase the conversion rate for a holder that elects to convert its Convertible Notes in connection with such a corporate event. | ||||
j2 Global may not redeem the Convertible Notes prior to June 20, 2021. On or after June 20, 2021, j2 Global may redeem for cash all or part of the Convertible Notes at a redemption price equal to 100% of the principal amount of the Convertible Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. No sinking fund is provided for the Convertible Notes. | ||||
Holders have the right to require j2 Global to repurchase for cash all or part of their Convertible Notes on each of June 15, 2021 and June 15, 2024 at a repurchase price equal to 100% of the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the relevant repurchase date. In addition, if a fundamental change, as defined in the indenture governing the Convertible Notes, occurs prior to the maturity date, holders may require j2 Global to repurchase for cash all or part of their Convertible Notes at a repurchase price equal to 100% of the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. | ||||
The Convertible Notes will be the Company's general senior unsecured obligations and will rank: (i) senior in right of payment to any of the Company's future indebtedness that is expressly subordinated in right of payment to the Convertible Notes; (ii) equal in right of payment to the Company's existing and future unsecured indebtedness that is not so subordinated, including in respect of our guarantee of the obligations of our subsidiary, j2 Cloud Services, Inc., with respect to its outstanding Senior Notes; (iii) effectively junior in right of payment to any of the Company's secured indebtedness to the extent of the value of the assets securing such indebtedness; and (iv) structurally junior to all existing and future indebtedness (including trade payables) incurred by the Company's subsidiaries. | ||||
Accounting for the Convertible Notes | ||||
In accordance with ASC 470-20, Debt with Conversion and Other Options, convertible debt that can be settled for cash is required to be separated into the liability and equity component at issuance, with each component assigned a value. The value assigned to the liability component is the estimated fair value, as of the issuance date, of similar debt without the conversion feature. The difference between the cash proceeds and estimated fair value of the liability component, representing the value of the conversion premium assigned to the equity component, is recorded as a debt discount on the issuance date. This debt discount is amortized to interest expense using the effective interest method over the period from the issuance date through the first stated repurchase date on June 15, 2021. | ||||
j2 Global estimated the borrowing rates of similar debt without the conversion feature at origination to be 5.79% for the Convertible Notes and determined the debt discount to be $59.0 million. As a result, a conversion premium after tax of $37.7 million was recorded in additional paid-in capital. As of September 30, 2014, the carrying value of the Convertible Notes was $345.4 million, which consisted of $402.5 million outstanding principal amount net of $57.1 million unamortized debt discount. The aggregate debt discount is amortized as interest expense over the period from the issuance date through the first stated repurchase date on June 15, 2021 which management believes is the expected life of the Convertible Notes using an interest rate of 5.81%. As of September 30, 2014, the remaining period over which the unamortized debt discount will be amortized is 6.8 years. | ||||
In connection with the issuance of the Convertible Notes, the Company incurred $11.7 million of deferred issuance costs, which primarily consisted of the initial purchasers' discount and legal and other professional service fees. Of the total deferred issuance costs incurred, $10.0 million of such deferred issuance costs were attributable to the liability component and are recorded within other assets and are being amortized to interest expense through June 15, 2021. The unamortized balance as of September 30, 2014 was $9.7 million. The remaining $1.7 million ($1.1 million net of tax) of such deferred issuance costs were netted with the equity component in additional paid-in capital at the issuance date. | ||||
For the third quarter ended September 30, 2014, the Company recognized interest expense of $5.3 million related to the Convertible Notes, comprised of $3.3 million for the contractual coupon interest, $1.7 million related to the amortization of debt discount and $0.3 million related to the amortization of deferred debt issuance costs. | ||||
The Convertible Notes are carried at face value less any unamortized debt discount. The fair value of the Convertible Notes at each balance sheet date is determined based on recent quoted market prices or dealer quotes for the Convertible Notes, if available. If such information is not available, the fair value is determined using cash-flow models of the scheduled payments discounted at market interest rates for comparable debt without the conversion feature. As of September 30, 2014, the estimated fair value of the Convertible Notes was approximately $405.0 million. | ||||
Cash paid for interest on debt for the nine months ended September 30, 2014 was $20.0 million. | ||||
Long-term debt as of September 30, 2014 consists of the following (in thousands): | ||||
Notes | $ | 246,055 | ||
Convertible Notes | 345,409 | |||
Total long-term debt | 591,464 | |||
Less: current portion | — | |||
Total long-term debt, less current portion | $ | 591,464 | ||
Commitments_And_Contingencies
Commitments And Contingencies | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments And Contingencies | ' |
Commitments and Contingencies | |
Litigation | |
From time-to-time, j2 Global and its affiliates are involved in litigation and other disputes or regulatory inquiries that arise in the ordinary course of business. Any claims or regulatory actions against j2 Global and its affiliates, whether meritorious or not, could be time consuming and costly, and could divert significant operational resources. Many of these matters directly or indirectly concern patent actions filed by j2 Global and its affiliates against others. As part of the Company’s continuing effort to prevent the unauthorized use of its intellectual property, j2 Global and its affiliates have brought claims against several companies for infringing patents relating to online fax, voice, and other messaging technologies, including, among others, Integrated Global Concepts, Inc. (“IGC”) and RPost Holdings, Inc. and its affiliates (collectively, “RPost”). | |
On September 15, 2006, a j2 Global affiliate filed a patent infringement suit against IGC in the U.S. District Court for the Northern District of Georgia (“Northern District of Georgia”) (No. 1:06-cv-02119). In response, IGC filed counterclaims alleging antitrust violations and breach of contract, in addition to patent-related counterclaims. On September 2, 2011, the Northern District of Georgia dismissed IGC’s breach of contract counterclaim and one of its antitrust counterclaims. On July 27, 2012, the Northern District of Georgia granted the j2 Global affiliate’s motion to dismiss the patent-related claims and counterclaims. On March 12, 2014, the j2 Global affiliate moved for summary judgment on IGC’s remaining antitrust claims, which remains pending. | |
On January 7, 2011, the Department of Revenue for the State of Washington (“Washington Department of Revenue”) issued assessments to a j2 Global affiliate for business and occupation tax and retail sales tax for the period of January 1, 2004 through September 30, 2010. On November 16, 2012, the Washington Department of Revenue denied the j2 Global affiliate’s petition for correction. The j2 Global affiliate paid the assessments and on June 21, 2013 filed a complaint against the Washington Department of Revenue in the Superior Court of Washington for Thurston County (No. 13-2-01338-7). In that suit, the j2 Global affiliate is seeking a refund of the entire amount paid and a declaration that the State improperly imposed the taxes. Discovery is ongoing. | |
On February 17, 2011, Emmanuel Pantelakis (“Pantelakis”) filed suit against j2 Global Canada, Inc. (“j2 Canada,” carrying on business as Protus IP Solutions) in the Ontario Superior Court of Justice (No. 11-50673), alleging that j2 Canada breached a contract relating to his use of j2 Canada’s Campaigner® product. j2 Canada filed a responsive pleading on March 23, 2011 and its responses to undertakings on July 16, 2012. On November 6, 2012, Pantelakis filed a second amended statement of claim reframing his lawsuit as a negligence action. j2 Canada filed an amended statement of defense on April 8, 2013. Discovery is ongoing. | |
On July 2, 2012, IGC filed suit against two j2 Global affiliates in the U.S. District Court for the Northern District of California (“Northern District of California”) (No. 5:12-cv-03434), alleging that the j2 Global affiliates breached a contract not to sue IGC. The j2 Global affiliates asserted counterclaims for infringement of U.S. Patent Nos. 6,350,066 (“the ’066 Patent”), 6,208,638 (“the ’638 Patent”), 6,597,688 (“the ’688 Patent”), and 7,020,132 (“the ’132 Patent”), and IGC asserted counterclaims for, among other things, invalidity, unenforceability, non-infringement, and implied license. On June 27, 2013, one of the j2 Global affiliates filed an additional suit against IGC in the Northern District of California (No. 5:13-cv-02971), alleging infringement of U.S. Patent No. 6,020,980 (“the ’980 Patent”). In response, IGC filed counterclaims for, among other things, invalidity, non-infringement, implied license, and breach of the same alleged covenant not to sue. The Northern District of California ordered that the two pending suits were related for the contract issues and on March 21, 2014 granted summary judgment dismissing IGC’s breach of contract claims in both actions. On June 27, 2014, the Northern District of California transferred the cases to the Central District of California (Nos. 14-cv-5128 and 14-cv-5139). The Central District of California has not yet issued a scheduling order. | |
On January 17, 2013, the Commissioner of the Massachusetts Department of Revenue (“Commissioner”) issued a notice of assessment to a j2 Global affiliate for sales and use tax for the period of July 1, 2003 through December 31, 2011. On or around July 22, 2014, the Commissioner denied the j2 Global affiliate’s application for abatement. On September 18, 2014, the j2 Global affiliate petitioned the Massachusetts Appellate Tax Board for abatement of the tax asserted in the notice of assessment (No. C325426). The Massachusetts Appellate Tax Board has not yet issued a scheduling order. | |
On January 18, 2013, Paldo Sign and Display Co. (“Paldo”) filed an amended complaint adding two j2 Global affiliates and a former j2 Canada employee as additional defendants in an existing purported class action pending in the U.S. District Court for the Northern District of Illinois (“Northern District of Illinois”) (No. 1:13-cv-01896). 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 an indirect customer’s alleged use of the j2 Global affiliates’ systems to send unsolicited facsimile transmissions. On August 23, 2013, a second plaintiff, Sabon, Inc. (“Sabon”), was added. The j2 Global affiliates filed a motion to dismiss the ICFA and conversion claims, which was granted. The Northern District of Illinois also dismissed the j2 Canada employee for lack of personal jurisdiction. Discovery is ongoing. | |
On August 28, 2013, Phyllis A. Huster (“Huster”) filed suit in the Northern District of Illinois (No. 1:13-cv-06143) against two j2 Global affiliates and three other parties for correction of inventorship for the ’066 Patent, as well as U.S. Patent Nos. 6,857,074 (“the ’074 Patent”), 7,836,141 (“the ’141 Patent”), 7,895,306 (“the ’306 Patent”), 7,895,313 (“the ’313 Patent”), 7,934,148 (“the ’148 Patent”), 5,675,507, 5,870,549, and 6,564,321. Huster seeks, among other things, a declaration that she was an inventor of the patents-in-suit, an order directing the U.S. Patent & Trademark Office to substitute or add her as an inventor, and payment of at least half of defendants’ earnings from patent licensing and sales of rights. On September 19, 2014, the Northern District of Illinois granted the defendants’ motion to dismiss for improper venue and transferred the case to the Northern District of Georgia (No. 1:14-cv-03304). The Northern District of Georgia has not yet issued a scheduling order. | |
On October 16, 2013, one of j2 Global’s affiliates entered its appearance as a plaintiff in a multi-district litigation pending in the Northern District of Illinois (No. 1:12-cv-06286). In this litigation, Unified Messaging Solutions, LLC (“UMS”), a company with rights to assert certain patents owned by the j2 Global affiliate, has asserted the ’074, ’141, ’306, ’313, and ’148 Patents against a number of defendants. While claims against some defendants have been settled, other defendants have filed counterclaims for, among other things, non-infringement, unenforceability, and invalidity of the patents-in-suit. On December 20, 2013, the Northern District of Illinois issued a claim construction opinion and, on June 13, 2014, entered a final judgment of non-infringement for the remaining defendants based on that claim construction. UMS and the j2 Global affiliate filed a notice of appeal to the Federal Circuit on June 27, 2014. Briefing on the appeal was stayed on September 26, 2014, pending the Northern District of Illinois’s resolution of the defendants’ motion to declare the case exceptional. | |
On December 16, 2013, Anthony Jenkins filed a purported class action against a j2 Global affiliate in the Central District of California (No. 2:13-cv-09226). An amended complaint was filed on March 18, 2014 adding two additional named plaintiffs. The amended complaint includes causes of action for breach of contract, several California statutory violations, and conversion. The claims arose from the alleged difficulties some users encountered in canceling their eFax® accounts. The potential class representatives sought, among other things, damages and injunctive relief on behalf of themselves and a purported nationwide class of allegedly similarly situated persons. On May 23, 2014, the Central District of California dismissed the plaintiffs’ breach of contract and conversion claims, as well as certain statutory claims. On September 15, 2014, this case was dismissed pursuant to a settlement agreement. | |
On February 19, 2014, two j2 Global affiliates filed suit in the Central District of California (No. 2:14-cv-01283) against RPost, alleging infringement of the ’980 and ’148 Patents and seeking a declaration of non-infringement and invalidity of nine RPost patents that had been asserted against the j2 Global affiliates in a patent assertion letter from RPost. An amended complaint was filed on June 20, 2014 adding j2 Canada as a plaintiff. RPost filed an answer to the complaint on July 14, 2014, asserting counterclaims of infringement for the nine RPost patents against j2 Canada’s Campaigner® product. Discovery is ongoing. | |
On June 23, 2014, Andre Free-Vychine (“Free-Vychine”) filed a purported class action against a j2 Global affiliate in the Superior Court for the State of California, County of Los Angeles (“Los Angeles Superior Court”). The complaint alleges two California statutory violations relating to late fees levied in certain eVoice® accounts. Free-Vychine is seeking, among other things, damages and injunctive relief on behalf of himself and a purported nationwide class of allegedly similarly situated persons. On August 26, 2014, Law Enforcement Officers, Inc. and IV Pit Stop, Inc. (collectively, “LEO”) filed a purported class action against the same j2 Global affiliate in Los Angeles Superior Court. The complaint alleges three California statutory violations, negligence, breach of the implied covenant of good faith and fair dealing, and various other common law claims relating to late fees levied in certain Onebox® accounts. LEO is seeking, among other things, damages and injunctive relief on behalf of itself and a purported nationwide class of allegedly similarly situated persons. On September 29, 2014, the Los Angeles Superior Court ordered both cases related. 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. | |
Non-Income Related Taxes | |
As a provider of cloud services for business, the Company does not provide telecommunications services. Thus, it believes that its business and its users (by using our services) are not subject to various telecommunication taxes. Moreover, the Company does not believe that its business and its users (by using our services) are subject to other indirect taxes, such as sales and use tax, value added tax (“VAT”), goods and services tax, business tax and gross receipt tax. However, several state and municipal taxing authorities have challenged these beliefs and have and may continue to audit and assess our business and operations with respect to telecommunications and other indirect taxes. | |
The current U.S. federal government moratorium on states and other local authorities imposing access or discriminatory taxes on the Internet, which is set to expire November 2014 (extended to December 2014), does not prohibit federal, state or local authorities from collecting taxes on our income or from collecting taxes that are due under existing tax rules. | |
The Company is currently under audit for indirect taxes in several states and municipalities. The Company currently has no material reserves established for these matters, as the Company has determined that the liability is not probable and estimable. However, it is reasonably possible that such a liability could be incurred, which would result in additional expense, which could materially impact our financial results. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 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 September 30, 2014, the effective tax rate was 20.3%. 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 $70.5 million and $56.0 million for the nine months ended September 30, 2014 and 2013, respectively, and income from foreign operations of $41.9 million and $54.8 million for the nine months ended September 30, 2014 and 2013, respectively. | |
As of September 30, 2014 and December 31, 2013, the Company had $35.8 million and $43.9 million, respectively, in liabilities for uncertain income tax positions. The decrease in liabilities for uncertain income tax positions resulted from j2 Global effectively settling its California Franchise Tax Board ("FTB") 2004 through 2008 income tax audits, as well as transfer pricing changes made for 2013 and 2014. Accrued interest and penalties related to unrecognized tax benefits are recognized in income tax expense on the Company’s consolidated statement of income. | |
Cash paid for income taxes net of refunds received was $23.6 million for the nine months ended September 30, 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 $9.8 million and $11.3 million at September 30, 2014 and December 31, 2013, respectively. | |
Income Tax Audits: | |
The Company is 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. | |
j2 Global is currently under income tax audit by the FTB for tax years 2009 through 2011, by the Illinois Department of Revenue for tax years 2008 and 2009, by the New York City Department of Finance for tax years 2009 through 2011 and by the Canada Revenue Agency for tax years 2010 through 2011. | |
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 | 9 Months Ended | |||||
Sep. 30, 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 nine month period ended September 30, 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 September 30, 2014, the Company purchased 13,349 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 | ||
May 7, 2014 | $ | 0.27 | May 19, 2014 | June 3, 2014 | ||
August 5, 2014 | $ | 0.2775 | August 18, 2014 | September 2, 2014 | ||
October 30, 2014 | $ | 0.285 | November 17, 2014 | December 4, 2014 | ||
Future dividends are subject to Board approval. |
Stock_Options_And_Employee_Sto
Stock Options And Employee Stock Purchase Plan | 9 Months Ended | |||||||||||||||
Sep. 30, 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 September 30, 2014, 224,708 shares underlying options and zero shares of restricted stock were outstanding under the 1997 Plan, all of which continue to be governed by the 1997 Plan. | ||||||||||||||||
The 2007 Plan provides for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units and other share-based awards. 4,500,000 shares of common stock are authorized to be used for 2007 Plan purposes. Options under the 2007 Plan may be granted at exercise prices determined by the Board of Directors, provided that the exercise prices shall not be less than the fair market value of j2 Global’s common stock on the date of grant for incentive stock options and not less than 85% of the fair market value of j2 Global’s common stock on the date of grant for non-statutory stock options. As of September 30, 2014, 606,447 shares underlying options and 95,204 shares of restricted stock were outstanding under the 2007 Plan. | ||||||||||||||||
All stock option grants are approved by “outside directors” within the meaning of Internal Revenue Code Section 162(m). | ||||||||||||||||
Stock Options | ||||||||||||||||
The following table represents stock option activity for the nine months ended September 30, 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 | (424,706 | ) | 15.59 | |||||||||||||
Canceled | (15,000 | ) | 31.07 | |||||||||||||
Outstanding at September 30, 2014 | 735,951 | 24.25 | 4.1 | $ | 18,476,543 | |||||||||||
Exercisable at September 30, 2014 | 623,739 | 23.72 | 3.7 | $ | 15,991,979 | |||||||||||
Vested and expected to vest at September 30, 2014 | 721,497 | $ | 24.19 | 4.1 | $ | 18,163,534 | ||||||||||
The aggregate intrinsic values of options exercised during the nine months ended September 30, 2014 and 2013 were $14.5 million and $11.6 million, respectively. | ||||||||||||||||
As of September 30, 2014 and December 31, 2013, unrecognized stock compensation related to non-vested stock options granted under the 1997 Plan and the 2007 Plan approximated $1.0 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 1.6 years (i.e., the remaining requisite service period). | ||||||||||||||||
Fair Value Disclosure | ||||||||||||||||
j2 Global uses the Black-Scholes option pricing model to calculate the fair value of each option grant. The expected volatility for the nine months ended September 30, 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 12.22% and 15.72% as of September 30, 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 $1.8 million of compensation expense for the three months ended September 30, 2014 and 2013, respectively, related to restricted stock and restricted stock units, and $5.5 million and $5.0 million of compensation expense for the nine months ended September 30, 2014 and 2013, respectively. As of September 30, 2014 and December 31, 2013, the Company had unrecognized share-based compensation cost of approximately $22.6 million and $20.2 million, respectively, associated with these awards. This cost is expected to be recognized over a weighted-average period of 3.1 years for awards and 3.3 years for units. | ||||||||||||||||
Restricted stock award activity for the nine months ended September 30, 2014 is set forth below: | ||||||||||||||||
Shares | Weighted-Average | |||||||||||||||
Grant-Date | ||||||||||||||||
Fair Value | ||||||||||||||||
Nonvested at January 1, 2014 | 1,178,371 | $ | 18.17 | |||||||||||||
Granted | 176,864 | 44.65 | ||||||||||||||
Vested | (452,010 | ) | 17.66 | |||||||||||||
Canceled | (45,070 | ) | 35.55 | |||||||||||||
Nonvested at September 30, 2014 | 858,155 | $ | 22.98 | |||||||||||||
Restricted stock unit award activity for the nine months ended September 30, 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 | 16,737 | |||||||||||||||
Vested | (16,258 | ) | ||||||||||||||
Canceled | (15,000 | ) | ||||||||||||||
Outstanding at September 30, 2014 | 95,204 | 2 | $ | 4,699,269 | ||||||||||||
Vested and expected to vest at September 30, 2014 | 74,330 | 1.8 | $ | 3,668,909 | ||||||||||||
Share-Based Compensation Expense | ||||||||||||||||
The following table represents share-based compensation expense included in cost of revenues and operating expenses in the accompanying condensed consolidated statements of income for the three and nine months ended September 30, 2014 and 2013 (in thousands): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Cost of revenues | $ | 82 | $ | 162 | $ | 263 | $ | 581 | ||||||||
Operating expenses: | ||||||||||||||||
Sales and marketing | 443 | 465 | 1,360 | 1,315 | ||||||||||||
Research, development and engineering | 175 | 103 | 537 | 311 | ||||||||||||
General and administrative | 1,491 | 1,695 | 4,378 | 4,901 | ||||||||||||
Total | $ | 2,191 | $ | 2,425 | $ | 6,538 | $ | 7,108 | ||||||||
Employee Stock Purchase Plan | ||||||||||||||||
The Purchase Plan provides for the issuance of a maximum of two million shares of the Company's common stock. Under the Purchase Plan, eligible employees can have up to 15% of their earnings withheld, up to certain maximums, to be used to purchase shares of j2 Global’s common stock at certain plan-defined dates. The price of the common stock purchased under the Purchase Plan for the offering periods is equal to 95% of the fair market value of the common stock at the end of the offering period. For the nine months ended September 30, 2014 and 2013, 4,463 and 4,416 shares were purchased under the plan, respectively. Cash received upon the issuance of common stock under the Purchase Plan was $199,000 and $161,000 for the nine months ended September 30, 2014 and 2013, respectively. As of September 30, 2014, 1,635,736 shares were available under the Purchase Plan for future issuance. |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | |||||||||||||||
Sep. 30, 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 September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Numerator for basic and diluted net income per common share: | ||||||||||||||||
Net income attributable to j2 Global, Inc. common shareholders | $ | 28,759 | $ | 27,806 | $ | 92,573 | $ | 86,768 | ||||||||
Net income available to participating securities (a) | (538 | ) | (416 | ) | (1,964 | ) | (1,455 | ) | ||||||||
Net income available to j2 Global, Inc. common shareholders | $ | 28,221 | $ | 27,390 | $ | 90,609 | $ | 85,313 | ||||||||
Denominator: | ||||||||||||||||
Weighted-average outstanding shares of common stock | 46,845,477 | 45,729,171 | 46,653,836 | 45,441,265 | ||||||||||||
Dilutive effect of: | ||||||||||||||||
Dilutive effect of equity incentive plans | 318,435 | 562,460 | 334,591 | 625,339 | ||||||||||||
Common stock and common stock equivalents | 47,163,912 | 46,291,631 | 46,988,427 | 46,066,604 | ||||||||||||
Net income per share: | ||||||||||||||||
Basic | $ | 0.6 | $ | 0.6 | $ | 1.94 | $ | 1.88 | ||||||||
Diluted | $ | 0.6 | $ | 0.59 | $ | 1.93 | $ | 1.85 | ||||||||
(a) | Represents unvested restricted stock awards that contain certain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid). | |||||||||||||||
For the three and nine months ended September 30, 2014 and 2013, zero options were outstanding with exercise prices greater than the average market price of the common shares so none were excluded from the computation of diluted earnings per share for such periods. |
Geographic_Information
Geographic Information | 9 Months Ended | |||||||||||||||
Sep. 30, 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 September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenues by segment: | ||||||||||||||||
Business Cloud Services | $ | 109,855 | $ | 94,391 | $ | 317,208 | $ | 293,898 | ||||||||
Digital Media | 43,218 | 33,522 | 114,860 | 89,207 | ||||||||||||
Elimination of inter-segment revenues | (55 | ) | (125 | ) | (182 | ) | (339 | ) | ||||||||
Total revenues | 153,018 | 127,788 | 431,886 | 382,766 | ||||||||||||
Direct costs by segment(1): | ||||||||||||||||
Business Cloud Services | 60,841 | 48,504 | 176,609 | 143,075 | ||||||||||||
Digital Media | 35,872 | 32,652 | 97,305 | 92,845 | ||||||||||||
Direct costs by segment(1): | 96,713 | 81,156 | 273,914 | 235,920 | ||||||||||||
Business Cloud Services operating income | 49,014 | 45,886 | 140,599 | 150,823 | ||||||||||||
Digital Media operating income (loss) | 7,346 | 871 | 17,555 | (3,638 | ) | |||||||||||
Segment operating income | 56,360 | 46,757 | 158,154 | 147,185 | ||||||||||||
Global operating costs(2) | 9,882 | 7,449 | 25,254 | 22,283 | ||||||||||||
Income from operations | $ | 46,478 | $ | 39,308 | $ | 132,900 | $ | 124,902 | ||||||||
(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 network operations expense, depreciation and amortization and other administrative expenses. | ||||||||||||||||
(2) Global operating costs include general and administrative and other corporate expenses that are managed on a global basis and that are not directly attributable to any particular segment. | ||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||
Assets: | ||||||||||||||||
Business Cloud Services | $ | 853,843 | $ | 818,722 | ||||||||||||
Digital Media | 352,547 | 333,286 | ||||||||||||||
Total assets from reportable segments | 1,206,390 | 1,152,008 | ||||||||||||||
Corporate | 433,614 | 1,781 | ||||||||||||||
Total assets | $ | 1,640,004 | $ | 1,153,789 | ||||||||||||
Nine Months Ended September 30, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Capital expenditures: | ||||||||||||||||
Business Cloud Services | $ | 4,366 | $ | 5,573 | ||||||||||||
Digital Media | 3,066 | 5,067 | ||||||||||||||
Total from reportable segments | 7,432 | 10,640 | ||||||||||||||
Corporate | 323 | 476 | ||||||||||||||
Total capital expenditures | $ | 7,755 | $ | 11,116 | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Depreciation and amortization: | ||||||||||||||||
Business Cloud Services | $ | 9,413 | $ | 6,248 | $ | 27,471 | $ | 17,609 | ||||||||
Digital Media | 5,250 | 3,767 | 15,273 | 10,335 | ||||||||||||
Total from reportable segments | 14,663 | 10,015 | 42,744 | 27,944 | ||||||||||||
Corporate | 188 | 168 | 563 | 480 | ||||||||||||
Total depreciation and amortization | $ | 14,851 | $ | 10,183 | $ | 43,307 | $ | 28,424 | ||||||||
j2 Global maintains operations in the U.S., Canada, Ireland, Japan and other countries. Geographic information about the U.S. and all other countries for the reporting periods is presented below. Such information attributes revenues based on jurisdictions where revenues are reported (in thousands). | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenues: | ||||||||||||||||
United States | $ | 101,381 | $ | 90,447 | $ | 289,656 | $ | 270,444 | ||||||||
Canada | 17,698 | 17,992 | 52,642 | 55,137 | ||||||||||||
Ireland | 10,846 | 10,417 | 32,118 | 30,822 | ||||||||||||
All other countries | 23,093 | 8,932 | 57,470 | 26,363 | ||||||||||||
$ | 153,018 | $ | 127,788 | $ | 431,886 | $ | 382,766 | |||||||||
September 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Long-lived assets: | ||||||||||||||||
United States | $ | 176,216 | $ | 170,247 | ||||||||||||
All other countries | 93,264 | 51,675 | ||||||||||||||
Total | $ | 269,480 | $ | 221,922 | ||||||||||||
Unrestricted_Subsidiaries_Note
Unrestricted Subsidiaries (Notes) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Unrestricted Subsidiaires [Abstract] | ' | |||||||||||||||
Unrestricted Subsidiaries [Text Block] | ' | |||||||||||||||
Unrestricted Subsidiaries | ||||||||||||||||
As of September 30, 2014, the Company's Board of Directors had designated the following entities as “Unrestricted Subsidiaries” under the indenture governing j2 Cloud Services' Senior Notes: | ||||||||||||||||
Ziff Davis, LLC and subsidiaries | ||||||||||||||||
Advanced Messaging Technologies, Inc. and subsidiaries | ||||||||||||||||
The financial position and results of operations of these Unrestricted Subsidiaries are included in the Company's condensed consolidated financial statements. | ||||||||||||||||
As required by the indenture governing j2 Cloud Services' Senior 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 the Unrestricted Subsidiaries as of September 30, 2014 is as follows (in thousands): | ||||||||||||||||
September 30, 2014 | ||||||||||||||||
ASSETS | ||||||||||||||||
Cash and cash equivalents | $ | 28,093 | ||||||||||||||
Accounts receivable | 47,081 | |||||||||||||||
Prepaid expenses and other current assets | 3,570 | |||||||||||||||
Deferred income taxes | 9,289 | |||||||||||||||
Total current assets | 88,033 | |||||||||||||||
Property and equipment, net | 12,737 | |||||||||||||||
Trade names, net | 50,156 | |||||||||||||||
Patent and patent licenses, net | 25,904 | |||||||||||||||
Customer relationships, net | 49,885 | |||||||||||||||
Goodwill | 148,080 | |||||||||||||||
Other purchased intangibles, net | 802 | |||||||||||||||
Deferred income taxes | 1,280 | |||||||||||||||
Other assets | 1,707 | |||||||||||||||
Total assets | $ | 378,584 | ||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||
Accounts payable and accrued expenses | $ | 36,700 | ||||||||||||||
Income taxes payable | 249 | |||||||||||||||
Deferred revenue, current | 4,044 | |||||||||||||||
Deferred income taxes | — | |||||||||||||||
Total current liabilities | 40,993 | |||||||||||||||
Deferred income taxes | 25,238 | |||||||||||||||
Other long-term liabilities | 1,541 | |||||||||||||||
Total liabilities | 67,772 | |||||||||||||||
Additional paid-in capital | 316,124 | |||||||||||||||
Accumulated deficit | (5,306 | ) | ||||||||||||||
Accumulated other comprehensive income (loss) | (6 | ) | ||||||||||||||
Total stockholders’ equity | 310,812 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 378,584 | ||||||||||||||
The results of operations of the Unrestricted Subsidiaries for the three and nine months ended September 30, 2014 and 2013 is as follows (in thousands): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 (1) | 2013 | 2014 (1) | 2013 | |||||||||||||
Revenues | $ | 43,618 | $ | 33,522 | $ | 115,801 | $ | 89,207 | ||||||||
Cost of revenues | 5,299 | 4,398 | 13,596 | 12,682 | ||||||||||||
Gross profit | 38,319 | 29,124 | 102,205 | 76,525 | ||||||||||||
Operating expenses: | ||||||||||||||||
Sales and marketing | 18,163 | 18,085 | 49,552 | 49,049 | ||||||||||||
Research, development and engineering | 1,565 | 943 | 3,792 | 4,401 | ||||||||||||
General and administrative | 13,527 | 9,225 | 35,320 | 26,713 | ||||||||||||
Total operating expenses | 33,255 | 28,253 | 88,664 | 80,163 | ||||||||||||
Income (loss) from operations | 5,064 | 871 | 13,541 | (3,638 | ) | |||||||||||
Interest expense (income), net | (3 | ) | 2,633 | (5 | ) | 6,350 | ||||||||||
Other expense (income), net | 518 | 278 | 100 | 85 | ||||||||||||
Income (loss) before income taxes | 4,549 | (2,040 | ) | 13,446 | (10,073 | ) | ||||||||||
Income tax expense (benefit) | 4,015 | 1,624 | 8,250 | (1,836 | ) | |||||||||||
Net income (loss) | $ | 534 | $ | (3,664 | ) | $ | 5,196 | $ | (8,237 | ) | ||||||
(1) Effective in the second quarter of 2014, Advanced Messaging Technologies, Inc. and subsidiaries were classified as Unrestricted Subsidiaries. As a result, the prior period may not be comparable to the current period presentation. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Notes) | 9 Months Ended | |||||||||||
Sep. 30, 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 September 30, 2014 (in thousands): | ||||||||||||
Unrealized Gains (Losses) on Investments | Foreign Currency Translation | Total | ||||||||||
Beginning balance | $ | 6,301 | $ | 350 | $ | 6,651 | ||||||
Other comprehensive (loss) income before reclassifications | (3,008 | ) | (6,977 | ) | (9,985 | ) | ||||||
Amounts reclassified from accumulated other comprehensive income | 2 | — | 2 | |||||||||
Net current period other comprehensive (loss) income | (3,006 | ) | (6,977 | ) | (9,983 | ) | ||||||
Ending balance | $ | 3,295 | $ | (6,627 | ) | $ | (3,332 | ) | ||||
The following table summarizes the changes in accumulated balances of other comprehensive income, net of tax, for the nine months ended September 30, 2014 (in thousands): | ||||||||||||
Unrealized Gains (Losses) on Investments | Foreign Currency Translation | Total | ||||||||||
Beginning balance | $ | 6,056 | $ | (1,821 | ) | $ | 4,235 | |||||
Other comprehensive (loss) income before reclassifications | (2,746 | ) | (4,806 | ) | (7,552 | ) | ||||||
Amounts reclassified from accumulated other comprehensive income | (15 | ) | — | (15 | ) | |||||||
Net current period other comprehensive (loss) income | (2,761 | ) | (4,806 | ) | (7,567 | ) | ||||||
Ending balance | $ | 3,295 | $ | (6,627 | ) | $ | (3,332 | ) | ||||
The following table provides details about reclassifications out of accumulated other comprehensive income for the three and nine months ended September 30, 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 September 30, 2014 | Nine Months Ended September 30, 2014 | |||||||||||
Unrealized gain on available-for-sale investments | 1 | (25 | ) | Other expense (income), net | ||||||||
1 | (25 | ) | Total, before income taxes | |||||||||
1 | 10 | Income tax expense (benefit) | ||||||||||
2 | (15 | ) | Total, net of tax | |||||||||
Total reclassifications for the period | $ | 2 | $ | (15 | ) | Total, net of tax | ||||||
Condensed_Consolidating_Financ
Condensed Consolidating Financials (Notes) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Condensed Financial Information [Abstract] | ' | |||||||||||||||||||
Condensed Financial Statements [Text Block] | ' | |||||||||||||||||||
Condensed Consolidating Financial Statements | ||||||||||||||||||||
In connection with the June 2014 Convertible Note issuance, j2 Global, Inc. entered into a supplemental indenture related to the Senior Notes, pursuant to which it fully and unconditionally guaranteed, on an unsecured basis, the full and punctual payment of the 8.0% senior unsecured notes due 2020 that were issued by its wholly owned subsidiary, j2 Cloud Services, Inc. j2 Cloud Services, Inc. is subject to restrictions on dividends in its existing indenture with respect to the Senior Notes and the credit facility with Union Bank. While substantially all of the Company’s assets (other than the net cash proceeds from the issuance of the Convertible Notes) are owned directly or indirectly by j2 Cloud Services, Inc., those contractual provisions did not, as of June 30, 2014, meaningfully restrict j2 Cloud Services, Inc.’s ability to pay dividends to j2 Global, Inc. | ||||||||||||||||||||
The following condensed consolidating financial statements present, in separate columns, financial information for (i) j2 Global, Inc. (the “Parent”) on a parent-only basis, (ii) j2 Cloud Services, Inc., (iii) the non-guarantor subsidiaries on a combined basis, (iv) the eliminations and reclassifications necessary to arrive at the information for the Company on a consolidated basis, and (v) the Company on a consolidated basis. The condensed consolidating financial statements are presented in accordance with the equity method. Under this method, the investments in subsidiaries are recorded at cost and adjusted for the Company’s share of subsidiaries’ cumulative results of operations, capital contributions, distributions and other equity changes. Intercompany charges (income) between the Parent and subsidiaries are recognized in the condensed consolidating financial statements during the period incurred and the settlement of intercompany balances is reflected in the condensed consolidating statement of cash flows based on the nature of the underlying transactions. Consolidating adjustments include consolidating and eliminating entries for investments in subsidiaries, intercompany activity and balances. | ||||||||||||||||||||
j2 Global, Inc. | ||||||||||||||||||||
Condensed Consolidated Balance Sheets | ||||||||||||||||||||
(Unaudited, in thousands except share and per share data) | ||||||||||||||||||||
As of | ||||||||||||||||||||
30-Sep-14 | ||||||||||||||||||||
BALANCE SHEET | j2 Global, Inc. | j2 Cloud Services, Inc. | Non-guarantor Subsidiaries | Consolidating Adjustments | j2 Global Consolidated | |||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | 313,667 | $ | 14,799 | $ | 186,531 | $ | — | $ | 514,997 | ||||||||||
Short-term investments | 62,647 | 39,767 | 5,004 | — | 107,418 | |||||||||||||||
Accounts receivable, net | — | 11,213 | 63,803 | — | 75,016 | |||||||||||||||
Prepaid expenses and other current assets | 1,075 | 16,237 | 7,505 | — | 24,817 | |||||||||||||||
Deferred income taxes | — | — | 9,081 | (1,630 | ) | 7,451 | ||||||||||||||
Intercompany receivable | — | 81,095 | — | (81,095 | ) | — | ||||||||||||||
Total current assets | 377,389 | 163,111 | 271,924 | (82,725 | ) | 729,699 | ||||||||||||||
Long-term investments | 54,353 | 7,061 | 1 | — | 61,415 | |||||||||||||||
Property and equipment, net | — | 8,349 | 30,438 | — | 38,787 | |||||||||||||||
Trade names, net | — | 10,273 | 73,920 | — | 84,193 | |||||||||||||||
Patent and patent licenses, net | — | 921 | 25,971 | — | 26,892 | |||||||||||||||
Customer relationships, net | — | 1,049 | 143,349 | — | 144,398 | |||||||||||||||
Goodwill | — | 50,803 | 482,600 | — | 533,403 | |||||||||||||||
Other purchased intangibles, net | — | 4,308 | 3,713 | — | 8,021 | |||||||||||||||
Investment in subsidiaries | 231,027 | 442,726 | 8,716 | (682,469 | ) | — | ||||||||||||||
Deferred income taxes | — | 6,309 | 3,178 | (9,487 | ) | — | ||||||||||||||
Other assets | 9,684 | 1,488 | 2,024 | — | 13,196 | |||||||||||||||
Total assets | $ | 672,453 | $ | 696,398 | $ | 1,045,834 | $ | (774,681 | ) | $ | 1,640,004 | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
Accounts payable and accrued expenses | $ | 7,486 | $ | 23,100 | $ | 40,195 | $ | — | $ | 70,781 | ||||||||||
Income taxes payable | — | 398 | 789 | — | 1,187 | |||||||||||||||
Deferred revenue - short term | — | 23,312 | 34,087 | — | 57,399 | |||||||||||||||
Deferred income taxes | 856 | 1,365 | — | (1,630 | ) | 591 | ||||||||||||||
Other current liabilities | — | — | 540 | — | 540 | |||||||||||||||
Intercompany payable | 42,256 | — | 38,839 | (81,095 | ) | — | ||||||||||||||
Total current liabilities | 50,598 | 48,175 | 114,450 | (82,725 | ) | 130,498 | ||||||||||||||
Long term debt | 345,409 | 246,055 | — | — | 591,464 | |||||||||||||||
Liability for uncertain tax positions | — | 35,793 | — | — | 35,793 | |||||||||||||||
Deferred income taxes | 24,332 | — | 46,865 | (9,487 | ) | 61,710 | ||||||||||||||
Deferred revenue - long term | — | 8,870 | 2,075 | — | 10,945 | |||||||||||||||
Other long-term liabilities | — | 881 | 5,152 | — | 6,033 | |||||||||||||||
Total liabilities | 420,339 | 339,774 | 168,542 | (92,212 | ) | 836,443 | ||||||||||||||
Common stock, $0.01 par value. | 469 | — | — | — | 469 | |||||||||||||||
Additional paid-in capital - common | 270,857 | 231,027 | 421,401 | (652,428 | ) | 270,857 | ||||||||||||||
Retained earnings | (19,276 | ) | 120,214 | 464,670 | (30,041 | ) | 535,567 | |||||||||||||
Accumulated other comprehensive loss | 64 | 5,383 | (8,779 | ) | — | (3,332 | ) | |||||||||||||
Total j2 Global Inc., stockholders’ equity | 252,114 | 356,624 | 877,292 | (682,469 | ) | 803,561 | ||||||||||||||
Total stockholders’ equity | 252,114 | 356,624 | 877,292 | (682,469 | ) | 803,561 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 672,453 | $ | 696,398 | $ | 1,045,834 | $ | (774,681 | ) | $ | 1,640,004 | |||||||||
j2 Global, Inc. | ||||||||||||||||||||
Condensed Consolidated Statements of Income | ||||||||||||||||||||
(Unaudited, in thousands except share and per share data) | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
30-Sep-14 | ||||||||||||||||||||
j2 Global, Inc. | j2 Cloud Services, Inc | Non-guarantor Subsidiaries | Consolidating Adjustments | j2 Global Consolidated | ||||||||||||||||
Revenues: | ||||||||||||||||||||
Total revenues | $ | — | $ | 52,960 | $ | 90,854 | $ | 9,204 | $ | 153,018 | ||||||||||
Cost of revenues | — | (3,275 | ) | 22,060 | 9,259 | 28,044 | ||||||||||||||
Gross profit | — | 56,235 | 68,794 | (55 | ) | 124,974 | ||||||||||||||
Operating expenses: | ||||||||||||||||||||
Sales and marketing | — | 9,168 | 27,934 | (55 | ) | 37,047 | ||||||||||||||
Research, development and engineering | — | 3,320 | 4,317 | — | 7,637 | |||||||||||||||
General and administrative | 3,063 | 6,789 | 23,960 | — | 33,812 | |||||||||||||||
Total operating expenses | 3,063 | 19,277 | 56,211 | (55 | ) | 78,496 | ||||||||||||||
Operating income | (3,063 | ) | 36,958 | 12,583 | — | 46,478 | ||||||||||||||
Interest expense (income), net | 5,136 | 5,116 | (129 | ) | — | 10,123 | ||||||||||||||
Other expense (income), net | (2 | ) | 78 | 175 | — | 251 | ||||||||||||||
Income before income taxes | (8,197 | ) | 31,764 | 12,537 | — | 36,104 | ||||||||||||||
Income tax expense | (3,158 | ) | 3,458 | 7,045 | — | 7,345 | ||||||||||||||
Net income attributable to j2 Global, Inc. common shareholders | $ | (5,039 | ) | $ | 28,306 | $ | 5,492 | $ | — | $ | 28,759 | |||||||||
j2 Global, Inc. | ||||||||||||||||||||
Condensed Consolidated Statements of Income | ||||||||||||||||||||
(Unaudited, in thousands except share and per share data) | ||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||
30-Sep-14 | ||||||||||||||||||||
j2 Global, Inc. | j2 Cloud Services, Inc | Non-guarantor Subsidiaries | Consolidating Adjustments | j2 Global Consolidated | ||||||||||||||||
Revenues: | ||||||||||||||||||||
Total revenues | $ | — | $ | 169,467 | $ | 293,530 | $ | (31,111 | ) | $ | 431,886 | |||||||||
Cost of revenues | — | 35,729 | 72,191 | (30,929 | ) | 76,991 | ||||||||||||||
Gross profit | — | 133,738 | 221,339 | (182 | ) | 354,895 | ||||||||||||||
Operating expenses: | ||||||||||||||||||||
Sales and marketing | — | 27,148 | 78,369 | (182 | ) | 105,335 | ||||||||||||||
Research, development and engineering | — | 10,411 | 12,040 | — | 22,451 | |||||||||||||||
General and administrative | 3,463 | 24,004 | 66,742 | — | 94,209 | |||||||||||||||
Total operating expenses | 3,463 | 61,563 | 157,151 | (182 | ) | 221,995 | ||||||||||||||
Operating income | (3,463 | ) | 72,175 | 64,188 | — | 132,900 | ||||||||||||||
Interest expense (income), net | 5,786 | 15,314 | (347 | ) | — | 20,753 | ||||||||||||||
Other expense (income), net | (2 | ) | 6 | (258 | ) | — | (254 | ) | ||||||||||||
Income before income taxes | (9,247 | ) | 56,855 | 64,793 | — | 112,401 | ||||||||||||||
Income tax expense | (3,537 | ) | 4,783 | 18,582 | — | 19,828 | ||||||||||||||
Net income attributable to j2 Global, Inc. common shareholders | $ | (5,710 | ) | $ | 52,072 | $ | 46,211 | $ | — | $ | 92,573 | |||||||||
j2 Global, Inc. | ||||||||||||||||||||
Condensed Consolidated Statements of Comprehensive Income | ||||||||||||||||||||
(Unaudited, in thousands except share and per share data) | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
30-Sep-14 | ||||||||||||||||||||
j2 Global, Inc. | j2 Cloud Services, Inc. | Non-guarantor Subsidiaries | Consolidating Adjustments | j2 Global Consolidated | ||||||||||||||||
Net income | $ | (5,039 | ) | $ | 28,306 | $ | 5,492 | $ | — | $ | 28,759 | |||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||
Foreign currency translation adjustment, net of tax expense (benefit) | — | 2,300 | (9,277 | ) | — | (6,977 | ) | |||||||||||||
Unrealized gain (loss) on available-for-sale investments, net of tax expense (benefit) | 64 | (3,068 | ) | (2 | ) | — | (3,006 | ) | ||||||||||||
Other comprehensive income (loss), net of tax | 64 | (768 | ) | (9,279 | ) | — | (9,983 | ) | ||||||||||||
Comprehensive income attributable to j2 Global, Inc. | $ | (4,975 | ) | $ | 27,538 | $ | (3,787 | ) | $ | — | $ | 18,776 | ||||||||
j2 Global, Inc. | ||||||||||||||||||||
Condensed Consolidated Statements of Comprehensive Income | ||||||||||||||||||||
(Unaudited, in thousands except share and per share data) | ||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||
30-Sep-14 | ||||||||||||||||||||
j2 Global, Inc. | j2 Cloud Services, Inc. | Non-guarantor Subsidiaries | Consolidating Adjustments | j2 Global Consolidated | ||||||||||||||||
Net income | $ | (5,710 | ) | $ | 52,072 | $ | 46,211 | $ | — | $ | 92,573 | |||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||
Foreign currency translation adjustment, net of tax expense (benefit) | — | 1,644 | (6,450 | ) | — | (4,806 | ) | |||||||||||||
Unrealized gain (loss) on available-for-sale investments, net of tax expense (benefit) | 64 | (2,834 | ) | 9 | — | (2,761 | ) | |||||||||||||
Other comprehensive income (loss), net of tax | 64 | (1,190 | ) | (6,441 | ) | — | (7,567 | ) | ||||||||||||
Comprehensive income attributable to j2 Global, Inc. | $ | (5,646 | ) | $ | 50,882 | $ | 39,770 | $ | — | $ | 85,006 | |||||||||
j2 Global, Inc. | ||||||||||||||||||||
Condensed Consolidated Statement of Cash Flows | ||||||||||||||||||||
(Unaudited, in thousands) | ||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||
30-Sep-14 | ||||||||||||||||||||
j2 Global, Inc. | j2 Cloud Services, Inc. | Non-guarantor Subsidiaries | Consolidating Adjustments | j2 Global Consolidated | ||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net income | $ | (5,710 | ) | $ | 52,072 | $ | 46,211 | $ | — | $ | 92,573 | |||||||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||||||||||||||||||
Depreciation and amortization | — | 4,950 | 38,357 | — | 43,307 | |||||||||||||||
Amortization of discount or premium of investments | 142 | 677 | 164 | — | 983 | |||||||||||||||
Amortization of financing costs and discounts | 2,266 | 562 | — | — | 2,828 | |||||||||||||||
Share-based compensation | 2,191 | 4,514 | (167 | ) | — | 6,538 | ||||||||||||||
Excess tax benefits from share-based compensation | (1,925 | ) | (4,802 | ) | (1 | ) | — | (6,728 | ) | |||||||||||
Provision for doubtful accounts | — | 1,395 | 1,883 | — | 3,278 | |||||||||||||||
Deferred income taxes | 4,614 | (2,657 | ) | (4,911 | ) | — | (2,954 | ) | ||||||||||||
(Gain) loss on sale of available-for-sale investments | (2 | ) | (18 | ) | (49 | ) | — | (69 | ) | |||||||||||
Decrease (increase) in: | ||||||||||||||||||||
Accounts receivable | — | (1,894 | ) | 3,161 | — | 1,267 | ||||||||||||||
Prepaid expenses and other current assets | (1,075 | ) | (2,197 | ) | (852 | ) | — | (4,124 | ) | |||||||||||
Other assets | (896 | ) | (83 | ) | 851 | — | (128 | ) | ||||||||||||
(Decrease) increase in: | ||||||||||||||||||||
Accounts payable and accrued expenses | 9,915 | (4,119 | ) | (8,745 | ) | — | (2,949 | ) | ||||||||||||
Income taxes payable | 1,734 | 2,822 | 3,009 | — | 7,565 | |||||||||||||||
Deferred revenue | — | (942 | ) | 127 | — | (815 | ) | |||||||||||||
Liability for uncertain tax positions | — | (8,069 | ) | (2 | ) | — | (8,071 | ) | ||||||||||||
Other | — | (108 | ) | (272 | ) | — | (380 | ) | ||||||||||||
Net cash provided by operating activities | 11,254 | 42,103 | 78,764 | — | 132,121 | |||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Maturity of certificates of deposit | — | 8,210 | 6,310 | — | 14,520 | |||||||||||||||
Purchase of certificates of deposit | — | — | — | — | — | |||||||||||||||
Sales of available-for-sale investments | 2,005 | 46,863 | 11,588 | — | 60,456 | |||||||||||||||
Purchase of available-for-sale investments | (58,591 | ) | (54,393 | ) | 1 | — | (112,983 | ) | ||||||||||||
Purchases of property and equipment | — | (925 | ) | (6,830 | ) | — | (7,755 | ) | ||||||||||||
Proceeds from sale of assets | — | — | 608 | — | 608 | |||||||||||||||
Acquisition of businesses, net of cash received | — | — | (118,238 | ) | — | (118,238 | ) | |||||||||||||
Purchases of intangible assets | — | (2,871 | ) | (1,935 | ) | — | (4,806 | ) | ||||||||||||
Investment in subsidiaries | — | (23,822 | ) | — | 23,822 | — | ||||||||||||||
Net cash used in investing activities | (56,586 | ) | (26,938 | ) | (108,496 | ) | 23,822 | (168,198 | ) | |||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Issuance of long-term debt | 402,500 | — | — | — | 402,500 | |||||||||||||||
Debt issuance costs | (12,069 | ) | — | 542 | — | (11,527 | ) | |||||||||||||
Repurchases of common stock and restricted stock | (739 | ) | (4,733 | ) | (1 | ) | — | (5,473 | ) | |||||||||||
Issuance of common stock under employee stock purchase plan | 76 | 123 | — | — | 199 | |||||||||||||||
Exercise of stock options | 1,193 | 5,248 | — | — | 6,441 | |||||||||||||||
Dividends paid | (13,267 | ) | (25,302 | ) | 22 | — | (38,547 | ) | ||||||||||||
Excess tax benefits from share-based compensation | 1,925 | 4,803 | — | — | 6,728 | |||||||||||||||
Deferred payments for acquisitions | — | — | (14,316 | ) | — | (14,316 | ) | |||||||||||||
Other | — | (54 | ) | (711 | ) | — | (765 | ) | ||||||||||||
Intercompany | (20,620 | ) | (14,861 | ) | 59,303 | (23,822 | ) | — | ||||||||||||
Net cash provided by financing activities | 358,999 | (34,776 | ) | 44,839 | (23,822 | ) | 345,240 | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | 4 | (1,971 | ) | — | (1,967 | ) | |||||||||||||
Net change in cash and cash equivalents | 313,667 | (19,607 | ) | 13,136 | — | 307,196 | ||||||||||||||
Cash and cash equivalents at beginning of period | — | 34,406 | 173,395 | — | 207,801 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 313,667 | $ | 14,799 | $ | 186,531 | $ | — | $ | 514,997 | ||||||||||
j2 Global, Inc. | ||||||||||||||||||||
Condensed Consolidated Balance Sheets | ||||||||||||||||||||
(Unaudited, in thousands except share and per share data) | ||||||||||||||||||||
As of | ||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||
BALANCE SHEET | j2 Global, Inc. | j2 Cloud Services, Inc. | Non-guarantor Subsidiaries | Consolidating Adjustments | j2 Global Consolidated | |||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 34,406 | $ | 173,395 | $ | — | $ | 207,801 | ||||||||||
Short-term investments | — | 67,848 | 22,941 | — | 90,789 | |||||||||||||||
Accounts receivable, net | — | 11,541 | 55,704 | — | 67,245 | |||||||||||||||
Prepaid expenses and other current assets | — | 16,662 | 3,402 | — | 20,064 | |||||||||||||||
Deferred income taxes | — | — | 3,126 | — | 3,126 | |||||||||||||||
Intercompany receivable | — | 4,433 | — | (4,433 | ) | — | ||||||||||||||
Total current assets | — | 134,890 | 258,568 | (4,433 | ) | 389,025 | ||||||||||||||
Long-term investments | — | 47,351 | — | — | 47,351 | |||||||||||||||
Property and equipment, net | — | 11,232 | 19,968 | — | 31,200 | |||||||||||||||
Trade names, net | — | 12,119 | 70,989 | — | 83,108 | |||||||||||||||
Patent and patent licenses, net | — | 15,107 | 13,423 | — | 28,530 | |||||||||||||||
Customer relationships, net | — | 6,125 | 94,855 | — | 100,980 | |||||||||||||||
Goodwill | — | 86,025 | 371,397 | — | 457,422 | |||||||||||||||
Other purchased intangibles, net | — | 5,306 | 5,609 | — | 10,915 | |||||||||||||||
Investment in subsidiaries | — | 357,057 | — | (357,057 | ) | — | ||||||||||||||
Deferred income taxes | — | 202 | 1,643 | — | 1,845 | |||||||||||||||
Other assets | — | 1,576 | 1,837 | — | 3,413 | |||||||||||||||
Total assets | $ | — | $ | 676,990 | $ | 838,289 | $ | (361,490 | ) | $ | 1,153,789 | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
Accounts payable and accrued expenses | $ | — | $ | 29,419 | $ | 40,151 | $ | — | $ | 69,570 | ||||||||||
Income taxes payable | — | — | 1,569 | — | 1,569 | |||||||||||||||
Deferred revenue - short term | — | 23,762 | 12,564 | — | 36,326 | |||||||||||||||
Liability for uncertain tax positions | — | 5,532 | 3 | — | 5,535 | |||||||||||||||
Deferred income taxes | — | 906 | 986 | — | 1,892 | |||||||||||||||
Intercompany payable | — | — | 4,433 | (4,433 | ) | — | ||||||||||||||
Total current liabilities | — | 59,619 | 59,706 | (4,433 | ) | 114,892 | ||||||||||||||
Long term debt | — | 245,670 | — | — | 245,670 | |||||||||||||||
Liability for uncertain tax positions | — | 38,329 | — | — | 38,329 | |||||||||||||||
Deferred income taxes | — | — | 35,833 | — | 35,833 | |||||||||||||||
Deferred revenue - long term | — | 10,753 | 436 | — | 11,189 | |||||||||||||||
Other long-term liabilities | — | 989 | 469 | — | 1,458 | |||||||||||||||
Total liabilities | — | 355,360 | 96,444 | (4,433 | ) | 447,371 | ||||||||||||||
Common stock, $0.01 par value | — | 461 | 34 | (34 | ) | 461 | ||||||||||||||
Additional paid-in capital - common | — | 216,871 | 326,984 | (326,983 | ) | 216,872 | ||||||||||||||
Retained earnings | — | 97,754 | 417,136 | (30,040 | ) | 484,850 | ||||||||||||||
Accumulated other comprehensive loss | — | 6,544 | (2,309 | ) | — | 4,235 | ||||||||||||||
Total j2 Global Inc., stockholders’ equity | — | 321,630 | 741,845 | (357,057 | ) | 706,418 | ||||||||||||||
Noncontrolling interests | — | — | — | — | — | |||||||||||||||
Total stockholders’ equity | — | 321,630 | 741,845 | (357,057 | ) | 706,418 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | — | $ | 676,990 | $ | 838,289 | $ | (361,490 | ) | $ | 1,153,789 | |||||||||
j2 Global, Inc. | ||||||||||||||||||||
Condensed Consolidated Statements of Income | ||||||||||||||||||||
(Unaudited, in thousands except share and per share data) | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
30-Sep-13 | ||||||||||||||||||||
j2 Global, Inc. | j2 Cloud Services, Inc | Non-guarantor Subsidiaries | Consolidating Adjustments | j2 Global Consolidated | ||||||||||||||||
Revenues: | ||||||||||||||||||||
Total revenues | $ | — | $ | 70,126 | $ | 71,865 | $ | (14,203 | ) | $ | 127,788 | |||||||||
Cost of revenues | — | 21,378 | 14,501 | (14,078 | ) | 21,801 | ||||||||||||||
Gross profit | — | 48,748 | 57,364 | (125 | ) | 105,987 | ||||||||||||||
Operating expenses: | ||||||||||||||||||||
Sales and marketing | — | 10,577 | 24,335 | (125 | ) | 34,787 | ||||||||||||||
Research, development and engineering | — | 3,323 | 2,677 | — | 6,000 | |||||||||||||||
General and administrative | — | 9,238 | 16,654 | — | 25,892 | |||||||||||||||
Total operating expenses | — | 23,138 | 43,666 | (125 | ) | 66,679 | ||||||||||||||
Operating income | — | 25,610 | 13,698 | — | 39,308 | |||||||||||||||
Interest expense (income), net | — | 2,263 | 2,709 | — | 4,972 | |||||||||||||||
Other expense (income), net | — | (67 | ) | (329 | ) | — | (396 | ) | ||||||||||||
Income before income taxes | — | 23,414 | 11,318 | — | 34,732 | |||||||||||||||
Income tax expense | — | 3,101 | 4,004 | — | 7,105 | |||||||||||||||
Net income | $ | — | $ | 20,313 | $ | 7,314 | $ | — | $ | 27,627 | ||||||||||
Less net loss attributable to noncontrolling interest | — | — | — | (179 | ) | (179 | ) | |||||||||||||
Net income attributable to j2 Global, Inc. common shareholders | $ | — | $ | 20,313 | $ | 7,314 | $ | 179 | $ | 27,806 | ||||||||||
j2 Global, Inc. | ||||||||||||||||||||
Condensed Consolidated Statements of Income | ||||||||||||||||||||
(Unaudited, in thousands except share and per share data) | ||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||
30-Sep-13 | ||||||||||||||||||||
j2 Global, Inc. | j2 Cloud Services, Inc | Non-guarantor Subsidiaries | Consolidating Adjustments | j2 Global Consolidated | ||||||||||||||||
Revenues: | ||||||||||||||||||||
Total revenues | $ | — | $ | 199,696 | $ | 228,681 | $ | (45,611 | ) | $ | 382,766 | |||||||||
Cost of revenues | — | 63,286 | 46,701 | (45,272 | ) | 64,715 | ||||||||||||||
Gross profit | — | 136,410 | 181,980 | (339 | ) | 318,051 | ||||||||||||||
Operating expenses: | ||||||||||||||||||||
Sales and marketing | — | 31,849 | 68,128 | (339 | ) | 99,638 | ||||||||||||||
Research, development and engineering | — | 9,375 | 9,759 | — | 19,134 | |||||||||||||||
General and administrative | — | 27,693 | 46,684 | — | 74,377 | |||||||||||||||
Total operating expenses | — | 68,917 | 124,571 | (339 | ) | 193,149 | ||||||||||||||
Operating income | — | 67,493 | 57,409 | — | 124,902 | |||||||||||||||
Interest expense (income), net | — | 7,496 | 7,213 | — | 14,709 | |||||||||||||||
Other expense (income), net | — | (166 | ) | (434 | ) | — | (600 | ) | ||||||||||||
Income before income taxes | — | 60,163 | 50,630 | — | 110,793 | |||||||||||||||
Income tax expense | — | 17,478 | 6,950 | — | 24,428 | |||||||||||||||
Net income | $ | — | $ | 42,685 | $ | 43,680 | $ | — | $ | 86,365 | ||||||||||
Less net loss attributable to noncontrolling interest | — | — | — | (403 | ) | (403 | ) | |||||||||||||
Net income attributable to j2 Global, Inc. common shareholders | $ | — | $ | 42,685 | $ | 43,680 | $ | 403 | $ | 86,768 | ||||||||||
j2 Global, Inc. | ||||||||||||||||||||
Condensed Consolidated Statements of Comprehensive Income | ||||||||||||||||||||
(Unaudited, in thousands) | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
30-Sep-13 | ||||||||||||||||||||
j2 Global, Inc. | j2 Cloud Services, Inc. | Non-guarantor Subsidiaries | Consolidating Adjustments | j2 Global Consolidated | ||||||||||||||||
Net income | $ | — | $ | 20,313 | $ | 7,314 | $ | — | $ | 27,627 | ||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||
Foreign currency translation adjustment, net of tax expense (benefit) | — | (586 | ) | 2,176 | — | 1,590 | ||||||||||||||
Unrealized gain (loss) on available-for-sale investments, net of tax expense (benefit) | — | 4,247 | 12 | — | 4,259 | |||||||||||||||
Other comprehensive income (loss), net of tax | — | 3,661 | 2,188 | — | 5,849 | |||||||||||||||
Comprehensive income | — | 23,974 | 9,502 | — | 33,476 | |||||||||||||||
Net loss attributable to noncontrolling interest | — | — | — | (179 | ) | (179 | ) | |||||||||||||
Foreign currency translation adjustment attributable to noncontrolling interest, net of tax expense (benefit) | — | — | (13 | ) | — | (13 | ) | |||||||||||||
Comprehensive income attributable to j2 Global, Inc. | $ | — | $ | 23,974 | $ | 9,515 | $ | 179 | $ | 33,668 | ||||||||||
j2 Global, Inc. | ||||||||||||||||||||
Condensed Consolidated Statements of Comprehensive Income | ||||||||||||||||||||
(Unaudited, in thousands) | ||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||
30-Sep-13 | ||||||||||||||||||||
j2 Global, Inc. | j2 Cloud Services, Inc. | Non-guarantor Subsidiaries | Consolidating Adjustments | j2 Global Consolidated | ||||||||||||||||
Net income | $ | — | $ | 42,685 | $ | 43,680 | $ | — | $ | 86,365 | ||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||
Foreign currency translation adjustment, net of tax expense (benefit) | — | (159 | ) | (367 | ) | — | (526 | ) | ||||||||||||
Unrealized gain (loss) on available-for-sale investments, net of tax expense (benefit) | — | 5,767 | 3,493 | — | 9,260 | |||||||||||||||
Other comprehensive income (loss), net of tax | — | 5,608 | 3,126 | — | 8,734 | |||||||||||||||
Comprehensive income | — | 48,293 | 46,806 | — | 95,099 | |||||||||||||||
Net loss attributable to noncontrolling interest | — | — | — | (403 | ) | (403 | ) | |||||||||||||
Foreign currency translation adjustment attributable to noncontrolling interest, net of tax expense (benefit) | — | — | (35 | ) | — | (35 | ) | |||||||||||||
Comprehensive income attributable to j2 Global, Inc. | $ | — | $ | 48,293 | $ | 46,841 | $ | 403 | $ | 95,537 | ||||||||||
j2 Global, Inc. | ||||||||||||||||||||
Condensed Consolidated Statement of Cash Flows | ||||||||||||||||||||
(Unaudited, in thousands) | ||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||
30-Sep-13 | ||||||||||||||||||||
j2 Global, Inc. | j2 Cloud Services, Inc. | Non-guarantor Subsidiaries | Consolidating Adjustments | j2 Global Consolidated | ||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net income | $ | — | $ | 42,685 | $ | 43,680 | $ | — | $ | 86,365 | ||||||||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||||||||||||||||||
Depreciation and amortization | — | 6,659 | 21,765 | — | 28,424 | |||||||||||||||
Amortization of discount or premium of investments | — | 948 | 375 | — | 1,323 | |||||||||||||||
Amortization of financing costs and discounts | — | 456 | — | — | 456 | |||||||||||||||
Share-based compensation | — | 7,108 | — | — | 7,108 | |||||||||||||||
Excess tax benefits from share-based compensation | — | (3,171 | ) | — | — | (3,171 | ) | |||||||||||||
Provision for doubtful accounts | — | 1,016 | 1,549 | — | 2,565 | |||||||||||||||
Deferred income taxes | — | 451 | 21 | — | 472 | |||||||||||||||
Loss on sale of available-for-sale investment | — | — | 103 | — | 103 | |||||||||||||||
Decrease (increase) in: | ||||||||||||||||||||
Accounts receivable | — | (1,514 | ) | (5,981 | ) | — | (7,495 | ) | ||||||||||||
Prepaid expenses and other current assets | — | 1,227 | (282 | ) | — | 945 | ||||||||||||||
Other assets | — | (7 | ) | 189 | — | 182 | ||||||||||||||
(Decrease) increase in: | ||||||||||||||||||||
Accounts payable and accrued expenses | — | (9,583 | ) | 13,618 | — | 4,035 | ||||||||||||||
Income taxes payable | — | (1,235 | ) | (2,051 | ) | — | (3,286 | ) | ||||||||||||
Deferred revenue | — | 14,331 | (1,282 | ) | — | 13,049 | ||||||||||||||
Liability for uncertain tax positions | — | 3,865 | 2 | — | 3,867 | |||||||||||||||
Other | — | (44 | ) | (18 | ) | — | (62 | ) | ||||||||||||
Net cash provided by operating activities | — | 63,192 | 71,688 | — | 134,880 | |||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Maturity of certificates of deposit | — | 30,270 | 12,345 | — | 42,615 | |||||||||||||||
Purchase of certificates of deposit | — | (16,375 | ) | (5,696 | ) | — | (22,071 | ) | ||||||||||||
Sales of available-for-sale investments | — | 72,384 | 10,505 | — | 82,889 | |||||||||||||||
Purchase of available-for-sale investments | — | (119,049 | ) | (20,906 | ) | — | (139,955 | ) | ||||||||||||
Purchases of property and equipment | — | (4,134 | ) | (6,982 | ) | — | (11,116 | ) | ||||||||||||
Proceeds from sale of assets | — | 1 | — | — | 1 | |||||||||||||||
Acquisition of businesses, net of cash received | — | (2,305 | ) | (79,261 | ) | — | (81,566 | ) | ||||||||||||
Purchases of intangible assets | — | (1,828 | ) | (956 | ) | — | (2,784 | ) | ||||||||||||
Investment in subsidiaries | — | (12,498 | ) | — | 12,498 | — | ||||||||||||||
Other | — | 3,281 | (3,281 | ) | — | — | ||||||||||||||
Net cash used in investing activities | — | (50,253 | ) | (94,232 | ) | 12,498 | (131,987 | ) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Debt issuance costs | — | (47 | ) | — | — | (47 | ) | |||||||||||||
Repurchases of common stock and restricted stock | — | (4,514 | ) | 1 | — | (4,513 | ) | |||||||||||||
Issuance of common stock under employee stock purchase plan | — | 161 | — | — | 161 | |||||||||||||||
Exercise of stock options | — | 13,515 | — | — | 13,515 | |||||||||||||||
Dividends paid | — | (33,267 | ) | — | — | (33,267 | ) | |||||||||||||
Excess tax benefits from share-based compensation | — | 3,171 | — | — | 3,171 | |||||||||||||||
Other | — | — | (171 | ) | — | (171 | ) | |||||||||||||
Intercompany | — | (18,120 | ) | 30,618 | (12,498 | ) | — | |||||||||||||
Net cash used in financing activities | — | (39,101 | ) | 30,448 | (12,498 | ) | (21,151 | ) | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | (23 | ) | (1,218 | ) | — | (1,241 | ) | ||||||||||||
Net change in cash and cash equivalents | — | (26,185 | ) | 6,686 | — | (19,499 | ) | |||||||||||||
Cash and cash equivalents at beginning of period | — | 76,712 | 141,968 | — | 218,680 | |||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 50,527 | $ | 148,654 | $ | — | $ | 199,181 | ||||||||||
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
On October 30, 2014, the Company's Board of Directors approved a quarterly cash dividend of $0.2850 per share of common stock payable on December 4, 2014 to all stockholders of record as of the close of business on November 17, 2014. |
Basis_Of_Presentation_Policy
Basis Of Presentation (Policy) | 9 Months Ended |
Sep. 30, 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 materially differ from those estimates. | |
Allowances For Doubtful Accounts | ' |
Allowances for Doubtful Accounts | |
j2 Global reserves for receivables it may not be able to collect. The 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. The 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 September 30, 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 third-party costs incurred in connection with its sale of debt within long-term other assets and recorded the amounts paid to the lender as 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 September 30, 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) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Business Acquisition, Pro Forma Information [Table Text Block] | ' | |||||||
The supplemental information on an unaudited pro forma financial basis presents the combined results of j2 Global and its 2014 acquisitions as if each acquisition had occurred on January 1, 2013 (in thousands, except per share amounts): | ||||||||
Nine Months Ended September 30, 2014 | Nine Months Ended September 30, 2013 | |||||||
(unaudited) | (unaudited) | |||||||
Revenues | $ | 474,749 | $ | 440,030 | ||||
Net Income | $ | 96,031 | $ | 89,043 | ||||
EPS - Basic | $ | 2.01 | $ | 1.93 | ||||
EPS - Diluted | $ | 2 | $ | 1.9 | ||||
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 | $ | 11,291 | ||||||
Property and Equipment | 8,686 | |||||||
Other Assets | 3,339 | |||||||
Deferred Tax Asset | 1,877 | |||||||
Software | 2,474 | |||||||
Trade Names | 2,387 | |||||||
Customer Relationships | 65,153 | |||||||
Other Intangibles | 1,477 | |||||||
Goodwill | 79,600 | |||||||
Total | $ | 176,284 | ||||||
Investments_Tables
Investments (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 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): | ||||||||||||||||
September 30, | December 31, 2013 | |||||||||||||||
2014 | ||||||||||||||||
Due within 1 year | $ | 81,410 | $ | 46,339 | ||||||||||||
Due within more than 1 year but less than 5 years | 58,955 | 44,865 | ||||||||||||||
Due within more than 5 years but less than 10 years | — | — | ||||||||||||||
Due 10 years or after | 2,459 | 2,486 | ||||||||||||||
Total | $ | 142,824 | $ | 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): | ||||||||||||||||
September 30, | December 31, 2013 | |||||||||||||||
2014 | ||||||||||||||||
Available-for-sale | $ | 168,833 | $ | 123,737 | ||||||||||||
Total | $ | 168,833 | $ | 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 September 30, 2014 and December 31, 2013 aggregated by major security type (in thousands): | ||||||||||||||||
Amortized | Gross | Gross | Fair | |||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||
Gains | Losses | |||||||||||||||
September 30, 2014 | ||||||||||||||||
Debt Securities | $ | 142,730 | $ | 188 | $ | (94 | ) | $ | 142,824 | |||||||
Equity Securities | 20,610 | 5,631 | (232 | ) | 26,009 | |||||||||||
Total | $ | 163,340 | $ | 5,819 | $ | (326 | ) | $ | 168,833 | |||||||
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) | 9 Months Ended | |||||||||||||||
Sep. 30, 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): | ||||||||||||||||
September 30, 2014 | Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||
Cash equivalents: | ||||||||||||||||
Money market and other funds | $ | 328,786 | $ | — | $ | — | $ | 328,786 | ||||||||
Time deposits | — | 52,057 | — | 52,057 | ||||||||||||
Corporate commercial papers | — | 12,004 | — | 12,004 | ||||||||||||
Equity securities | 26,009 | — | — | 26,009 | ||||||||||||
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | — | 42,387 | — | 42,387 | ||||||||||||
Debt securities issued by states of the U.S. and political subdivisions of the states | — | 2,119 | — | 2,119 | ||||||||||||
Debt securities issued by foreign governments | — | 2,033 | — | 2,033 | ||||||||||||
Corporate debt securities | — | 96,285 | — | 96,285 | ||||||||||||
Total | $ | 354,795 | $ | 206,885 | $ | — | $ | 561,680 | ||||||||
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) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||
Changes In Carrying Amounts Of Goodwill | ' | |||||||||||||
The changes in carrying amounts of goodwill for the nine months ended September 30, 2014 are as follows (in thousands): | ||||||||||||||
Balance as of January 1, 2014 | $ | 457,422 | ||||||||||||
Goodwill acquired (Note 3) | 79,600 | |||||||||||||
Purchase accounting adjustments | (975 | ) | ||||||||||||
Foreign exchange translation | (2,644 | ) | ||||||||||||
Balance as of September 30, 2014 | $ | 533,403 | ||||||||||||
Schedule Of Intangible Assets With Indefinite Lives | ' | |||||||||||||
Intangible Assets with Indefinite Lives: | ||||||||||||||
September 30, | 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 September 30, 2014, intangible assets subject to amortization relate primarily to the following (in thousands): | ||||||||||||||
Weighted-Average | Historical | Accumulated | Net | |||||||||||
Amortization | Cost | Amortization | ||||||||||||
Period | ||||||||||||||
Tradenames | 16.6 years | $ | 69,067 | $ | (12,253 | ) | $ | 56,814 | ||||||
Patent and patent licenses | 7.8 years | 62,836 | (35,944 | ) | 26,892 | |||||||||
Customer relationships | 8.5 years | 201,827 | (57,429 | ) | 144,398 | |||||||||
Other purchased intangibles | 5.1 years | 20,183 | (17,594 | ) | 2,589 | |||||||||
Total | $ | 353,913 | $ | (123,220 | ) | $ | 230,693 | |||||||
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) | 9 Months Ended | |||
Sep. 30, 2014 | ||||
Long-term Debt, Unclassified [Abstract] | ' | |||
Schedule of Long-term Debt Instruments [Table Text Block] | ' | |||
Long-term debt as of September 30, 2014 consists of the following (in thousands): | ||||
Notes | $ | 246,055 | ||
Convertible Notes | 345,409 | |||
Total long-term debt | 591,464 | |||
Less: current portion | — | |||
Total long-term debt, less current portion | $ | 591,464 | ||
Stock_Options_And_Employee_Sto1
Stock Options And Employee Stock Purchase Plan (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Stock Options Activity | ' | |||||||||||||||
The following table represents stock option activity for the nine months ended September 30, 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 | (424,706 | ) | 15.59 | |||||||||||||
Canceled | (15,000 | ) | 31.07 | |||||||||||||
Outstanding at September 30, 2014 | 735,951 | 24.25 | 4.1 | $ | 18,476,543 | |||||||||||
Exercisable at September 30, 2014 | 623,739 | 23.72 | 3.7 | $ | 15,991,979 | |||||||||||
Vested and expected to vest at September 30, 2014 | 721,497 | $ | 24.19 | 4.1 | $ | 18,163,534 | ||||||||||
Allocation Of Share-Based Compensation Expense | ' | |||||||||||||||
The following table represents share-based compensation expense included in cost of revenues and operating expenses in the accompanying condensed consolidated statements of income for the three and nine months ended September 30, 2014 and 2013 (in thousands): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Cost of revenues | $ | 82 | $ | 162 | $ | 263 | $ | 581 | ||||||||
Operating expenses: | ||||||||||||||||
Sales and marketing | 443 | 465 | 1,360 | 1,315 | ||||||||||||
Research, development and engineering | 175 | 103 | 537 | 311 | ||||||||||||
General and administrative | 1,491 | 1,695 | 4,378 | 4,901 | ||||||||||||
Total | $ | 2,191 | $ | 2,425 | $ | 6,538 | $ | 7,108 | ||||||||
Restricted Stock [Member] | ' | |||||||||||||||
Restricted Stock And Restricted Stock Unit Award Activity | ' | |||||||||||||||
Restricted stock award activity for the nine months ended September 30, 2014 is set forth below: | ||||||||||||||||
Shares | Weighted-Average | |||||||||||||||
Grant-Date | ||||||||||||||||
Fair Value | ||||||||||||||||
Nonvested at January 1, 2014 | 1,178,371 | $ | 18.17 | |||||||||||||
Granted | 176,864 | 44.65 | ||||||||||||||
Vested | (452,010 | ) | 17.66 | |||||||||||||
Canceled | (45,070 | ) | 35.55 | |||||||||||||
Nonvested at September 30, 2014 | 858,155 | $ | 22.98 | |||||||||||||
Restricted Stock Units (RSUs) [Member] | ' | |||||||||||||||
Restricted Stock And Restricted Stock Unit Award Activity | ' | |||||||||||||||
Restricted stock unit award activity for the nine months ended September 30, 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 | 16,737 | |||||||||||||||
Vested | (16,258 | ) | ||||||||||||||
Canceled | (15,000 | ) | ||||||||||||||
Outstanding at September 30, 2014 | 95,204 | 2 | $ | 4,699,269 | ||||||||||||
Vested and expected to vest at September 30, 2014 | 74,330 | 1.8 | $ | 3,668,909 | ||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 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 September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Numerator for basic and diluted net income per common share: | ||||||||||||||||
Net income attributable to j2 Global, Inc. common shareholders | $ | 28,759 | $ | 27,806 | $ | 92,573 | $ | 86,768 | ||||||||
Net income available to participating securities (a) | (538 | ) | (416 | ) | (1,964 | ) | (1,455 | ) | ||||||||
Net income available to j2 Global, Inc. common shareholders | $ | 28,221 | $ | 27,390 | $ | 90,609 | $ | 85,313 | ||||||||
Denominator: | ||||||||||||||||
Weighted-average outstanding shares of common stock | 46,845,477 | 45,729,171 | 46,653,836 | 45,441,265 | ||||||||||||
Dilutive effect of: | ||||||||||||||||
Dilutive effect of equity incentive plans | 318,435 | 562,460 | 334,591 | 625,339 | ||||||||||||
Common stock and common stock equivalents | 47,163,912 | 46,291,631 | 46,988,427 | 46,066,604 | ||||||||||||
Net income per share: | ||||||||||||||||
Basic | $ | 0.6 | $ | 0.6 | $ | 1.94 | $ | 1.88 | ||||||||
Diluted | $ | 0.6 | $ | 0.59 | $ | 1.93 | $ | 1.85 | ||||||||
(a) | Represents unvested restricted stock awards that contain certain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid). |
Geographic_Information_Tables
Geographic Information (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 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 September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenues by segment: | ||||||||||||||||
Business Cloud Services | $ | 109,855 | $ | 94,391 | $ | 317,208 | $ | 293,898 | ||||||||
Digital Media | 43,218 | 33,522 | 114,860 | 89,207 | ||||||||||||
Elimination of inter-segment revenues | (55 | ) | (125 | ) | (182 | ) | (339 | ) | ||||||||
Total revenues | 153,018 | 127,788 | 431,886 | 382,766 | ||||||||||||
Direct costs by segment(1): | ||||||||||||||||
Business Cloud Services | 60,841 | 48,504 | 176,609 | 143,075 | ||||||||||||
Digital Media | 35,872 | 32,652 | 97,305 | 92,845 | ||||||||||||
Direct costs by segment(1): | 96,713 | 81,156 | 273,914 | 235,920 | ||||||||||||
Business Cloud Services operating income | 49,014 | 45,886 | 140,599 | 150,823 | ||||||||||||
Digital Media operating income (loss) | 7,346 | 871 | 17,555 | (3,638 | ) | |||||||||||
Segment operating income | 56,360 | 46,757 | 158,154 | 147,185 | ||||||||||||
Global operating costs(2) | 9,882 | 7,449 | 25,254 | 22,283 | ||||||||||||
Income from operations | $ | 46,478 | $ | 39,308 | $ | 132,900 | $ | 124,902 | ||||||||
(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 network operations expense, depreciation and amortization and other administrative expenses. | ||||||||||||||||
(2) Global operating costs include general and administrative and other corporate expenses that are managed on a global basis and that are not directly attributable to any particular segment. | ||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||
Assets: | ||||||||||||||||
Business Cloud Services | $ | 853,843 | $ | 818,722 | ||||||||||||
Digital Media | 352,547 | 333,286 | ||||||||||||||
Total assets from reportable segments | 1,206,390 | 1,152,008 | ||||||||||||||
Corporate | 433,614 | 1,781 | ||||||||||||||
Total assets | $ | 1,640,004 | $ | 1,153,789 | ||||||||||||
Nine Months Ended September 30, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Capital expenditures: | ||||||||||||||||
Business Cloud Services | $ | 4,366 | $ | 5,573 | ||||||||||||
Digital Media | 3,066 | 5,067 | ||||||||||||||
Total from reportable segments | 7,432 | 10,640 | ||||||||||||||
Corporate | 323 | 476 | ||||||||||||||
Total capital expenditures | $ | 7,755 | $ | 11,116 | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Depreciation and amortization: | ||||||||||||||||
Business Cloud Services | $ | 9,413 | $ | 6,248 | $ | 27,471 | $ | 17,609 | ||||||||
Digital Media | 5,250 | 3,767 | 15,273 | 10,335 | ||||||||||||
Total from reportable segments | 14,663 | 10,015 | 42,744 | 27,944 | ||||||||||||
Corporate | 188 | 168 | 563 | 480 | ||||||||||||
Total depreciation and amortization | $ | 14,851 | $ | 10,183 | $ | 43,307 | $ | 28,424 | ||||||||
Summary On Revenues And Long-Lived Assets By Geographic Areas | ' | |||||||||||||||
j2 Global maintains operations in the U.S., Canada, Ireland, Japan and other countries. Geographic information about the U.S. and all other countries for the reporting periods is presented below. Such information attributes revenues based on jurisdictions where revenues are reported (in thousands). | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenues: | ||||||||||||||||
United States | $ | 101,381 | $ | 90,447 | $ | 289,656 | $ | 270,444 | ||||||||
Canada | 17,698 | 17,992 | 52,642 | 55,137 | ||||||||||||
Ireland | 10,846 | 10,417 | 32,118 | 30,822 | ||||||||||||
All other countries | 23,093 | 8,932 | 57,470 | 26,363 | ||||||||||||
$ | 153,018 | $ | 127,788 | $ | 431,886 | $ | 382,766 | |||||||||
September 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Long-lived assets: | ||||||||||||||||
United States | $ | 176,216 | $ | 170,247 | ||||||||||||
All other countries | 93,264 | 51,675 | ||||||||||||||
Total | $ | 269,480 | $ | 221,922 | ||||||||||||
Unrestricted_Subsidiaries_Tabl
Unrestricted Subsidiaries (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Unrestricted Subsidiaires [Abstract] | ' | |||||||||||||||
Schedule of Unrestricted Subsidiaries Financial Information [Table Text Block] | ' | |||||||||||||||
The financial position of the Unrestricted Subsidiaries as of September 30, 2014 is as follows (in thousands): | ||||||||||||||||
September 30, 2014 | ||||||||||||||||
ASSETS | ||||||||||||||||
Cash and cash equivalents | $ | 28,093 | ||||||||||||||
Accounts receivable | 47,081 | |||||||||||||||
Prepaid expenses and other current assets | 3,570 | |||||||||||||||
Deferred income taxes | 9,289 | |||||||||||||||
Total current assets | 88,033 | |||||||||||||||
Property and equipment, net | 12,737 | |||||||||||||||
Trade names, net | 50,156 | |||||||||||||||
Patent and patent licenses, net | 25,904 | |||||||||||||||
Customer relationships, net | 49,885 | |||||||||||||||
Goodwill | 148,080 | |||||||||||||||
Other purchased intangibles, net | 802 | |||||||||||||||
Deferred income taxes | 1,280 | |||||||||||||||
Other assets | 1,707 | |||||||||||||||
Total assets | $ | 378,584 | ||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||
Accounts payable and accrued expenses | $ | 36,700 | ||||||||||||||
Income taxes payable | 249 | |||||||||||||||
Deferred revenue, current | 4,044 | |||||||||||||||
Deferred income taxes | — | |||||||||||||||
Total current liabilities | 40,993 | |||||||||||||||
Deferred income taxes | 25,238 | |||||||||||||||
Other long-term liabilities | 1,541 | |||||||||||||||
Total liabilities | 67,772 | |||||||||||||||
Additional paid-in capital | 316,124 | |||||||||||||||
Accumulated deficit | (5,306 | ) | ||||||||||||||
Accumulated other comprehensive income (loss) | (6 | ) | ||||||||||||||
Total stockholders’ equity | 310,812 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 378,584 | ||||||||||||||
The results of operations of the Unrestricted Subsidiaries for the three and nine months ended September 30, 2014 and 2013 is as follows (in thousands): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 (1) | 2013 | 2014 (1) | 2013 | |||||||||||||
Revenues | $ | 43,618 | $ | 33,522 | $ | 115,801 | $ | 89,207 | ||||||||
Cost of revenues | 5,299 | 4,398 | 13,596 | 12,682 | ||||||||||||
Gross profit | 38,319 | 29,124 | 102,205 | 76,525 | ||||||||||||
Operating expenses: | ||||||||||||||||
Sales and marketing | 18,163 | 18,085 | 49,552 | 49,049 | ||||||||||||
Research, development and engineering | 1,565 | 943 | 3,792 | 4,401 | ||||||||||||
General and administrative | 13,527 | 9,225 | 35,320 | 26,713 | ||||||||||||
Total operating expenses | 33,255 | 28,253 | 88,664 | 80,163 | ||||||||||||
Income (loss) from operations | 5,064 | 871 | 13,541 | (3,638 | ) | |||||||||||
Interest expense (income), net | (3 | ) | 2,633 | (5 | ) | 6,350 | ||||||||||
Other expense (income), net | 518 | 278 | 100 | 85 | ||||||||||||
Income (loss) before income taxes | 4,549 | (2,040 | ) | 13,446 | (10,073 | ) | ||||||||||
Income tax expense (benefit) | 4,015 | 1,624 | 8,250 | (1,836 | ) | |||||||||||
Net income (loss) | $ | 534 | $ | (3,664 | ) | $ | 5,196 | $ | (8,237 | ) | ||||||
(1) Effective in the second quarter of 2014, Advanced Messaging Technologies, Inc. and subsidiaries were classified as Unrestricted Subsidiaries. As a result, the prior period may not be comparable to the current period presentation. |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Accumulated Other Comprehensive Income [Abstract] | ' | |||||||||||
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 nine months ended September 30, 2014 (in thousands): | ||||||||||||
Unrealized Gains (Losses) on Investments | Foreign Currency Translation | Total | ||||||||||
Beginning balance | $ | 6,056 | $ | (1,821 | ) | $ | 4,235 | |||||
Other comprehensive (loss) income before reclassifications | (2,746 | ) | (4,806 | ) | (7,552 | ) | ||||||
Amounts reclassified from accumulated other comprehensive income | (15 | ) | — | (15 | ) | |||||||
Net current period other comprehensive (loss) income | (2,761 | ) | (4,806 | ) | (7,567 | ) | ||||||
Ending balance | $ | 3,295 | $ | (6,627 | ) | $ | (3,332 | ) | ||||
The following table summarizes the changes in accumulated balances of other comprehensive income, net of tax, for the three months ended September 30, 2014 (in thousands): | ||||||||||||
Unrealized Gains (Losses) on Investments | Foreign Currency Translation | Total | ||||||||||
Beginning balance | $ | 6,301 | $ | 350 | $ | 6,651 | ||||||
Other comprehensive (loss) income before reclassifications | (3,008 | ) | (6,977 | ) | (9,985 | ) | ||||||
Amounts reclassified from accumulated other comprehensive income | 2 | — | 2 | |||||||||
Net current period other comprehensive (loss) income | (3,006 | ) | (6,977 | ) | (9,983 | ) | ||||||
Ending balance | $ | 3,295 | $ | (6,627 | ) | $ | (3,332 | ) | ||||
Reclassification Out Of Accumulated Other Comprehensive Income [Table Text Block] | ' | |||||||||||
The following table provides details about reclassifications out of accumulated other comprehensive income for the three and nine months ended September 30, 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 September 30, 2014 | Nine Months Ended September 30, 2014 | |||||||||||
Unrealized gain on available-for-sale investments | 1 | (25 | ) | Other expense (income), net | ||||||||
1 | (25 | ) | Total, before income taxes | |||||||||
1 | 10 | Income tax expense (benefit) | ||||||||||
2 | (15 | ) | Total, net of tax | |||||||||
Total reclassifications for the period | $ | 2 | $ | (15 | ) | Total, net of tax | ||||||
Condensed_Consolidating_Financ1
Condensed Consolidating Financials (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Condensed Financial Information [Abstract] | ' | |||||||||||||||||||
Condensed Balance Sheet [Table Text Block] | ' | |||||||||||||||||||
j2 Global, Inc. | ||||||||||||||||||||
Condensed Consolidated Balance Sheets | ||||||||||||||||||||
(Unaudited, in thousands except share and per share data) | ||||||||||||||||||||
As of | ||||||||||||||||||||
30-Sep-14 | ||||||||||||||||||||
BALANCE SHEET | j2 Global, Inc. | j2 Cloud Services, Inc. | Non-guarantor Subsidiaries | Consolidating Adjustments | j2 Global Consolidated | |||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | 313,667 | $ | 14,799 | $ | 186,531 | $ | — | $ | 514,997 | ||||||||||
Short-term investments | 62,647 | 39,767 | 5,004 | — | 107,418 | |||||||||||||||
Accounts receivable, net | — | 11,213 | 63,803 | — | 75,016 | |||||||||||||||
Prepaid expenses and other current assets | 1,075 | 16,237 | 7,505 | — | 24,817 | |||||||||||||||
Deferred income taxes | — | — | 9,081 | (1,630 | ) | 7,451 | ||||||||||||||
Intercompany receivable | — | 81,095 | — | (81,095 | ) | — | ||||||||||||||
Total current assets | 377,389 | 163,111 | 271,924 | (82,725 | ) | 729,699 | ||||||||||||||
Long-term investments | 54,353 | 7,061 | 1 | — | 61,415 | |||||||||||||||
Property and equipment, net | — | 8,349 | 30,438 | — | 38,787 | |||||||||||||||
Trade names, net | — | 10,273 | 73,920 | — | 84,193 | |||||||||||||||
Patent and patent licenses, net | — | 921 | 25,971 | — | 26,892 | |||||||||||||||
Customer relationships, net | — | 1,049 | 143,349 | — | 144,398 | |||||||||||||||
Goodwill | — | 50,803 | 482,600 | — | 533,403 | |||||||||||||||
Other purchased intangibles, net | — | 4,308 | 3,713 | — | 8,021 | |||||||||||||||
Investment in subsidiaries | 231,027 | 442,726 | 8,716 | (682,469 | ) | — | ||||||||||||||
Deferred income taxes | — | 6,309 | 3,178 | (9,487 | ) | — | ||||||||||||||
Other assets | 9,684 | 1,488 | 2,024 | — | 13,196 | |||||||||||||||
Total assets | $ | 672,453 | $ | 696,398 | $ | 1,045,834 | $ | (774,681 | ) | $ | 1,640,004 | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
Accounts payable and accrued expenses | $ | 7,486 | $ | 23,100 | $ | 40,195 | $ | — | $ | 70,781 | ||||||||||
Income taxes payable | — | 398 | 789 | — | 1,187 | |||||||||||||||
Deferred revenue - short term | — | 23,312 | 34,087 | — | 57,399 | |||||||||||||||
Deferred income taxes | 856 | 1,365 | — | (1,630 | ) | 591 | ||||||||||||||
Other current liabilities | — | — | 540 | — | 540 | |||||||||||||||
Intercompany payable | 42,256 | — | 38,839 | (81,095 | ) | — | ||||||||||||||
Total current liabilities | 50,598 | 48,175 | 114,450 | (82,725 | ) | 130,498 | ||||||||||||||
Long term debt | 345,409 | 246,055 | — | — | 591,464 | |||||||||||||||
Liability for uncertain tax positions | — | 35,793 | — | — | 35,793 | |||||||||||||||
Deferred income taxes | 24,332 | — | 46,865 | (9,487 | ) | 61,710 | ||||||||||||||
Deferred revenue - long term | — | 8,870 | 2,075 | — | 10,945 | |||||||||||||||
Other long-term liabilities | — | 881 | 5,152 | — | 6,033 | |||||||||||||||
Total liabilities | 420,339 | 339,774 | 168,542 | (92,212 | ) | 836,443 | ||||||||||||||
Common stock, $0.01 par value. | 469 | — | — | — | 469 | |||||||||||||||
Additional paid-in capital - common | 270,857 | 231,027 | 421,401 | (652,428 | ) | 270,857 | ||||||||||||||
Retained earnings | (19,276 | ) | 120,214 | 464,670 | (30,041 | ) | 535,567 | |||||||||||||
Accumulated other comprehensive loss | 64 | 5,383 | (8,779 | ) | — | (3,332 | ) | |||||||||||||
Total j2 Global Inc., stockholders’ equity | 252,114 | 356,624 | 877,292 | (682,469 | ) | 803,561 | ||||||||||||||
Total stockholders’ equity | 252,114 | 356,624 | 877,292 | (682,469 | ) | 803,561 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 672,453 | $ | 696,398 | $ | 1,045,834 | $ | (774,681 | ) | $ | 1,640,004 | |||||||||
j2 Global, Inc. | ||||||||||||||||||||
Condensed Consolidated Balance Sheets | ||||||||||||||||||||
(Unaudited, in thousands except share and per share data) | ||||||||||||||||||||
As of | ||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||
BALANCE SHEET | j2 Global, Inc. | j2 Cloud Services, Inc. | Non-guarantor Subsidiaries | Consolidating Adjustments | j2 Global Consolidated | |||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 34,406 | $ | 173,395 | $ | — | $ | 207,801 | ||||||||||
Short-term investments | — | 67,848 | 22,941 | — | 90,789 | |||||||||||||||
Accounts receivable, net | — | 11,541 | 55,704 | — | 67,245 | |||||||||||||||
Prepaid expenses and other current assets | — | 16,662 | 3,402 | — | 20,064 | |||||||||||||||
Deferred income taxes | — | — | 3,126 | — | 3,126 | |||||||||||||||
Intercompany receivable | — | 4,433 | — | (4,433 | ) | — | ||||||||||||||
Total current assets | — | 134,890 | 258,568 | (4,433 | ) | 389,025 | ||||||||||||||
Long-term investments | — | 47,351 | — | — | 47,351 | |||||||||||||||
Property and equipment, net | — | 11,232 | 19,968 | — | 31,200 | |||||||||||||||
Trade names, net | — | 12,119 | 70,989 | — | 83,108 | |||||||||||||||
Patent and patent licenses, net | — | 15,107 | 13,423 | — | 28,530 | |||||||||||||||
Customer relationships, net | — | 6,125 | 94,855 | — | 100,980 | |||||||||||||||
Goodwill | — | 86,025 | 371,397 | — | 457,422 | |||||||||||||||
Other purchased intangibles, net | — | 5,306 | 5,609 | — | 10,915 | |||||||||||||||
Investment in subsidiaries | — | 357,057 | — | (357,057 | ) | — | ||||||||||||||
Deferred income taxes | — | 202 | 1,643 | — | 1,845 | |||||||||||||||
Other assets | — | 1,576 | 1,837 | — | 3,413 | |||||||||||||||
Total assets | $ | — | $ | 676,990 | $ | 838,289 | $ | (361,490 | ) | $ | 1,153,789 | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
Accounts payable and accrued expenses | $ | — | $ | 29,419 | $ | 40,151 | $ | — | $ | 69,570 | ||||||||||
Income taxes payable | — | — | 1,569 | — | 1,569 | |||||||||||||||
Deferred revenue - short term | — | 23,762 | 12,564 | — | 36,326 | |||||||||||||||
Liability for uncertain tax positions | — | 5,532 | 3 | — | 5,535 | |||||||||||||||
Deferred income taxes | — | 906 | 986 | — | 1,892 | |||||||||||||||
Intercompany payable | — | — | 4,433 | (4,433 | ) | — | ||||||||||||||
Total current liabilities | — | 59,619 | 59,706 | (4,433 | ) | 114,892 | ||||||||||||||
Long term debt | — | 245,670 | — | — | 245,670 | |||||||||||||||
Liability for uncertain tax positions | — | 38,329 | — | — | 38,329 | |||||||||||||||
Deferred income taxes | — | — | 35,833 | — | 35,833 | |||||||||||||||
Deferred revenue - long term | — | 10,753 | 436 | — | 11,189 | |||||||||||||||
Other long-term liabilities | — | 989 | 469 | — | 1,458 | |||||||||||||||
Total liabilities | — | 355,360 | 96,444 | (4,433 | ) | 447,371 | ||||||||||||||
Common stock, $0.01 par value | — | 461 | 34 | (34 | ) | 461 | ||||||||||||||
Additional paid-in capital - common | — | 216,871 | 326,984 | (326,983 | ) | 216,872 | ||||||||||||||
Retained earnings | — | 97,754 | 417,136 | (30,040 | ) | 484,850 | ||||||||||||||
Accumulated other comprehensive loss | — | 6,544 | (2,309 | ) | — | 4,235 | ||||||||||||||
Total j2 Global Inc., stockholders’ equity | — | 321,630 | 741,845 | (357,057 | ) | 706,418 | ||||||||||||||
Noncontrolling interests | — | — | — | — | — | |||||||||||||||
Total stockholders’ equity | — | 321,630 | 741,845 | (357,057 | ) | 706,418 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | — | $ | 676,990 | $ | 838,289 | $ | (361,490 | ) | $ | 1,153,789 | |||||||||
Condensed Income Statement [Table Text Block] | ' | |||||||||||||||||||
j2 Global, Inc. | ||||||||||||||||||||
Condensed Consolidated Statements of Income | ||||||||||||||||||||
(Unaudited, in thousands except share and per share data) | ||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||
30-Sep-14 | ||||||||||||||||||||
j2 Global, Inc. | j2 Cloud Services, Inc | Non-guarantor Subsidiaries | Consolidating Adjustments | j2 Global Consolidated | ||||||||||||||||
Revenues: | ||||||||||||||||||||
Total revenues | $ | — | $ | 169,467 | $ | 293,530 | $ | (31,111 | ) | $ | 431,886 | |||||||||
Cost of revenues | — | 35,729 | 72,191 | (30,929 | ) | 76,991 | ||||||||||||||
Gross profit | — | 133,738 | 221,339 | (182 | ) | 354,895 | ||||||||||||||
Operating expenses: | ||||||||||||||||||||
Sales and marketing | — | 27,148 | 78,369 | (182 | ) | 105,335 | ||||||||||||||
Research, development and engineering | — | 10,411 | 12,040 | — | 22,451 | |||||||||||||||
General and administrative | 3,463 | 24,004 | 66,742 | — | 94,209 | |||||||||||||||
Total operating expenses | 3,463 | 61,563 | 157,151 | (182 | ) | 221,995 | ||||||||||||||
Operating income | (3,463 | ) | 72,175 | 64,188 | — | 132,900 | ||||||||||||||
Interest expense (income), net | 5,786 | 15,314 | (347 | ) | — | 20,753 | ||||||||||||||
Other expense (income), net | (2 | ) | 6 | (258 | ) | — | (254 | ) | ||||||||||||
Income before income taxes | (9,247 | ) | 56,855 | 64,793 | — | 112,401 | ||||||||||||||
Income tax expense | (3,537 | ) | 4,783 | 18,582 | — | 19,828 | ||||||||||||||
Net income attributable to j2 Global, Inc. common shareholders | $ | (5,710 | ) | $ | 52,072 | $ | 46,211 | $ | — | $ | 92,573 | |||||||||
j2 Global, Inc. | ||||||||||||||||||||
Condensed Consolidated Statements of Income | ||||||||||||||||||||
(Unaudited, in thousands except share and per share data) | ||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||
30-Sep-13 | ||||||||||||||||||||
j2 Global, Inc. | j2 Cloud Services, Inc | Non-guarantor Subsidiaries | Consolidating Adjustments | j2 Global Consolidated | ||||||||||||||||
Revenues: | ||||||||||||||||||||
Total revenues | $ | — | $ | 199,696 | $ | 228,681 | $ | (45,611 | ) | $ | 382,766 | |||||||||
Cost of revenues | — | 63,286 | 46,701 | (45,272 | ) | 64,715 | ||||||||||||||
Gross profit | — | 136,410 | 181,980 | (339 | ) | 318,051 | ||||||||||||||
Operating expenses: | ||||||||||||||||||||
Sales and marketing | — | 31,849 | 68,128 | (339 | ) | 99,638 | ||||||||||||||
Research, development and engineering | — | 9,375 | 9,759 | — | 19,134 | |||||||||||||||
General and administrative | — | 27,693 | 46,684 | — | 74,377 | |||||||||||||||
Total operating expenses | — | 68,917 | 124,571 | (339 | ) | 193,149 | ||||||||||||||
Operating income | — | 67,493 | 57,409 | — | 124,902 | |||||||||||||||
Interest expense (income), net | — | 7,496 | 7,213 | — | 14,709 | |||||||||||||||
Other expense (income), net | — | (166 | ) | (434 | ) | — | (600 | ) | ||||||||||||
Income before income taxes | — | 60,163 | 50,630 | — | 110,793 | |||||||||||||||
Income tax expense | — | 17,478 | 6,950 | — | 24,428 | |||||||||||||||
Net income | $ | — | $ | 42,685 | $ | 43,680 | $ | — | $ | 86,365 | ||||||||||
Less net loss attributable to noncontrolling interest | — | — | — | (403 | ) | (403 | ) | |||||||||||||
Net income attributable to j2 Global, Inc. common shareholders | $ | — | $ | 42,685 | $ | 43,680 | $ | 403 | $ | 86,768 | ||||||||||
j2 Global, Inc. | ||||||||||||||||||||
Condensed Consolidated Statements of Income | ||||||||||||||||||||
(Unaudited, in thousands except share and per share data) | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
30-Sep-13 | ||||||||||||||||||||
j2 Global, Inc. | j2 Cloud Services, Inc | Non-guarantor Subsidiaries | Consolidating Adjustments | j2 Global Consolidated | ||||||||||||||||
Revenues: | ||||||||||||||||||||
Total revenues | $ | — | $ | 70,126 | $ | 71,865 | $ | (14,203 | ) | $ | 127,788 | |||||||||
Cost of revenues | — | 21,378 | 14,501 | (14,078 | ) | 21,801 | ||||||||||||||
Gross profit | — | 48,748 | 57,364 | (125 | ) | 105,987 | ||||||||||||||
Operating expenses: | ||||||||||||||||||||
Sales and marketing | — | 10,577 | 24,335 | (125 | ) | 34,787 | ||||||||||||||
Research, development and engineering | — | 3,323 | 2,677 | — | 6,000 | |||||||||||||||
General and administrative | — | 9,238 | 16,654 | — | 25,892 | |||||||||||||||
Total operating expenses | — | 23,138 | 43,666 | (125 | ) | 66,679 | ||||||||||||||
Operating income | — | 25,610 | 13,698 | — | 39,308 | |||||||||||||||
Interest expense (income), net | — | 2,263 | 2,709 | — | 4,972 | |||||||||||||||
Other expense (income), net | — | (67 | ) | (329 | ) | — | (396 | ) | ||||||||||||
Income before income taxes | — | 23,414 | 11,318 | — | 34,732 | |||||||||||||||
Income tax expense | — | 3,101 | 4,004 | — | 7,105 | |||||||||||||||
Net income | $ | — | $ | 20,313 | $ | 7,314 | $ | — | $ | 27,627 | ||||||||||
Less net loss attributable to noncontrolling interest | — | — | — | (179 | ) | (179 | ) | |||||||||||||
Net income attributable to j2 Global, Inc. common shareholders | $ | — | $ | 20,313 | $ | 7,314 | $ | 179 | $ | 27,806 | ||||||||||
j2 Global, Inc. | ||||||||||||||||||||
Condensed Consolidated Statements of Income | ||||||||||||||||||||
(Unaudited, in thousands except share and per share data) | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
30-Sep-14 | ||||||||||||||||||||
j2 Global, Inc. | j2 Cloud Services, Inc | Non-guarantor Subsidiaries | Consolidating Adjustments | j2 Global Consolidated | ||||||||||||||||
Revenues: | ||||||||||||||||||||
Total revenues | $ | — | $ | 52,960 | $ | 90,854 | $ | 9,204 | $ | 153,018 | ||||||||||
Cost of revenues | — | (3,275 | ) | 22,060 | 9,259 | 28,044 | ||||||||||||||
Gross profit | — | 56,235 | 68,794 | (55 | ) | 124,974 | ||||||||||||||
Operating expenses: | ||||||||||||||||||||
Sales and marketing | — | 9,168 | 27,934 | (55 | ) | 37,047 | ||||||||||||||
Research, development and engineering | — | 3,320 | 4,317 | — | 7,637 | |||||||||||||||
General and administrative | 3,063 | 6,789 | 23,960 | — | 33,812 | |||||||||||||||
Total operating expenses | 3,063 | 19,277 | 56,211 | (55 | ) | 78,496 | ||||||||||||||
Operating income | (3,063 | ) | 36,958 | 12,583 | — | 46,478 | ||||||||||||||
Interest expense (income), net | 5,136 | 5,116 | (129 | ) | — | 10,123 | ||||||||||||||
Other expense (income), net | (2 | ) | 78 | 175 | — | 251 | ||||||||||||||
Income before income taxes | (8,197 | ) | 31,764 | 12,537 | — | 36,104 | ||||||||||||||
Income tax expense | (3,158 | ) | 3,458 | 7,045 | — | 7,345 | ||||||||||||||
Net income attributable to j2 Global, Inc. common shareholders | $ | (5,039 | ) | $ | 28,306 | $ | 5,492 | $ | — | $ | 28,759 | |||||||||
Condensed Comprehensive Income Statement [Table Text Block] | ' | |||||||||||||||||||
j2 Global, Inc. | ||||||||||||||||||||
Condensed Consolidated Statements of Comprehensive Income | ||||||||||||||||||||
(Unaudited, in thousands except share and per share data) | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
30-Sep-14 | ||||||||||||||||||||
j2 Global, Inc. | j2 Cloud Services, Inc. | Non-guarantor Subsidiaries | Consolidating Adjustments | j2 Global Consolidated | ||||||||||||||||
Net income | $ | (5,039 | ) | $ | 28,306 | $ | 5,492 | $ | — | $ | 28,759 | |||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||
Foreign currency translation adjustment, net of tax expense (benefit) | — | 2,300 | (9,277 | ) | — | (6,977 | ) | |||||||||||||
Unrealized gain (loss) on available-for-sale investments, net of tax expense (benefit) | 64 | (3,068 | ) | (2 | ) | — | (3,006 | ) | ||||||||||||
Other comprehensive income (loss), net of tax | 64 | (768 | ) | (9,279 | ) | — | (9,983 | ) | ||||||||||||
Comprehensive income attributable to j2 Global, Inc. | $ | (4,975 | ) | $ | 27,538 | $ | (3,787 | ) | $ | — | $ | 18,776 | ||||||||
j2 Global, Inc. | ||||||||||||||||||||
Condensed Consolidated Statements of Comprehensive Income | ||||||||||||||||||||
(Unaudited, in thousands except share and per share data) | ||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||
30-Sep-14 | ||||||||||||||||||||
j2 Global, Inc. | j2 Cloud Services, Inc. | Non-guarantor Subsidiaries | Consolidating Adjustments | j2 Global Consolidated | ||||||||||||||||
Net income | $ | (5,710 | ) | $ | 52,072 | $ | 46,211 | $ | — | $ | 92,573 | |||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||
Foreign currency translation adjustment, net of tax expense (benefit) | — | 1,644 | (6,450 | ) | — | (4,806 | ) | |||||||||||||
Unrealized gain (loss) on available-for-sale investments, net of tax expense (benefit) | 64 | (2,834 | ) | 9 | — | (2,761 | ) | |||||||||||||
Other comprehensive income (loss), net of tax | 64 | (1,190 | ) | (6,441 | ) | — | (7,567 | ) | ||||||||||||
Comprehensive income attributable to j2 Global, Inc. | $ | (5,646 | ) | $ | 50,882 | $ | 39,770 | $ | — | $ | 85,006 | |||||||||
j2 Global, Inc. | ||||||||||||||||||||
Condensed Consolidated Statements of Comprehensive Income | ||||||||||||||||||||
(Unaudited, in thousands) | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
30-Sep-13 | ||||||||||||||||||||
j2 Global, Inc. | j2 Cloud Services, Inc. | Non-guarantor Subsidiaries | Consolidating Adjustments | j2 Global Consolidated | ||||||||||||||||
Net income | $ | — | $ | 20,313 | $ | 7,314 | $ | — | $ | 27,627 | ||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||
Foreign currency translation adjustment, net of tax expense (benefit) | — | (586 | ) | 2,176 | — | 1,590 | ||||||||||||||
Unrealized gain (loss) on available-for-sale investments, net of tax expense (benefit) | — | 4,247 | 12 | — | 4,259 | |||||||||||||||
Other comprehensive income (loss), net of tax | — | 3,661 | 2,188 | — | 5,849 | |||||||||||||||
Comprehensive income | — | 23,974 | 9,502 | — | 33,476 | |||||||||||||||
Net loss attributable to noncontrolling interest | — | — | — | (179 | ) | (179 | ) | |||||||||||||
Foreign currency translation adjustment attributable to noncontrolling interest, net of tax expense (benefit) | — | — | (13 | ) | — | (13 | ) | |||||||||||||
Comprehensive income attributable to j2 Global, Inc. | $ | — | $ | 23,974 | $ | 9,515 | $ | 179 | $ | 33,668 | ||||||||||
j2 Global, Inc. | ||||||||||||||||||||
Condensed Consolidated Statements of Comprehensive Income | ||||||||||||||||||||
(Unaudited, in thousands) | ||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||
30-Sep-13 | ||||||||||||||||||||
j2 Global, Inc. | j2 Cloud Services, Inc. | Non-guarantor Subsidiaries | Consolidating Adjustments | j2 Global Consolidated | ||||||||||||||||
Net income | $ | — | $ | 42,685 | $ | 43,680 | $ | — | $ | 86,365 | ||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||
Foreign currency translation adjustment, net of tax expense (benefit) | — | (159 | ) | (367 | ) | — | (526 | ) | ||||||||||||
Unrealized gain (loss) on available-for-sale investments, net of tax expense (benefit) | — | 5,767 | 3,493 | — | 9,260 | |||||||||||||||
Other comprehensive income (loss), net of tax | — | 5,608 | 3,126 | — | 8,734 | |||||||||||||||
Comprehensive income | — | 48,293 | 46,806 | — | 95,099 | |||||||||||||||
Net loss attributable to noncontrolling interest | — | — | — | (403 | ) | (403 | ) | |||||||||||||
Foreign currency translation adjustment attributable to noncontrolling interest, net of tax expense (benefit) | — | — | (35 | ) | — | (35 | ) | |||||||||||||
Comprehensive income attributable to j2 Global, Inc. | $ | — | $ | 48,293 | $ | 46,841 | $ | 403 | $ | 95,537 | ||||||||||
Condensed Cash Flow Statement [Table Text Block] | ' | |||||||||||||||||||
j2 Global, Inc. | ||||||||||||||||||||
Condensed Consolidated Statement of Cash Flows | ||||||||||||||||||||
(Unaudited, in thousands) | ||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||
30-Sep-14 | ||||||||||||||||||||
j2 Global, Inc. | j2 Cloud Services, Inc. | Non-guarantor Subsidiaries | Consolidating Adjustments | j2 Global Consolidated | ||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net income | $ | (5,710 | ) | $ | 52,072 | $ | 46,211 | $ | — | $ | 92,573 | |||||||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||||||||||||||||||
Depreciation and amortization | — | 4,950 | 38,357 | — | 43,307 | |||||||||||||||
Amortization of discount or premium of investments | 142 | 677 | 164 | — | 983 | |||||||||||||||
Amortization of financing costs and discounts | 2,266 | 562 | — | — | 2,828 | |||||||||||||||
Share-based compensation | 2,191 | 4,514 | (167 | ) | — | 6,538 | ||||||||||||||
Excess tax benefits from share-based compensation | (1,925 | ) | (4,802 | ) | (1 | ) | — | (6,728 | ) | |||||||||||
Provision for doubtful accounts | — | 1,395 | 1,883 | — | 3,278 | |||||||||||||||
Deferred income taxes | 4,614 | (2,657 | ) | (4,911 | ) | — | (2,954 | ) | ||||||||||||
(Gain) loss on sale of available-for-sale investments | (2 | ) | (18 | ) | (49 | ) | — | (69 | ) | |||||||||||
Decrease (increase) in: | ||||||||||||||||||||
Accounts receivable | — | (1,894 | ) | 3,161 | — | 1,267 | ||||||||||||||
Prepaid expenses and other current assets | (1,075 | ) | (2,197 | ) | (852 | ) | — | (4,124 | ) | |||||||||||
Other assets | (896 | ) | (83 | ) | 851 | — | (128 | ) | ||||||||||||
(Decrease) increase in: | ||||||||||||||||||||
Accounts payable and accrued expenses | 9,915 | (4,119 | ) | (8,745 | ) | — | (2,949 | ) | ||||||||||||
Income taxes payable | 1,734 | 2,822 | 3,009 | — | 7,565 | |||||||||||||||
Deferred revenue | — | (942 | ) | 127 | — | (815 | ) | |||||||||||||
Liability for uncertain tax positions | — | (8,069 | ) | (2 | ) | — | (8,071 | ) | ||||||||||||
Other | — | (108 | ) | (272 | ) | — | (380 | ) | ||||||||||||
Net cash provided by operating activities | 11,254 | 42,103 | 78,764 | — | 132,121 | |||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Maturity of certificates of deposit | — | 8,210 | 6,310 | — | 14,520 | |||||||||||||||
Purchase of certificates of deposit | — | — | — | — | — | |||||||||||||||
Sales of available-for-sale investments | 2,005 | 46,863 | 11,588 | — | 60,456 | |||||||||||||||
Purchase of available-for-sale investments | (58,591 | ) | (54,393 | ) | 1 | — | (112,983 | ) | ||||||||||||
Purchases of property and equipment | — | (925 | ) | (6,830 | ) | — | (7,755 | ) | ||||||||||||
Proceeds from sale of assets | — | — | 608 | — | 608 | |||||||||||||||
Acquisition of businesses, net of cash received | — | — | (118,238 | ) | — | (118,238 | ) | |||||||||||||
Purchases of intangible assets | — | (2,871 | ) | (1,935 | ) | — | (4,806 | ) | ||||||||||||
Investment in subsidiaries | — | (23,822 | ) | — | 23,822 | — | ||||||||||||||
Net cash used in investing activities | (56,586 | ) | (26,938 | ) | (108,496 | ) | 23,822 | (168,198 | ) | |||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Issuance of long-term debt | 402,500 | — | — | — | 402,500 | |||||||||||||||
Debt issuance costs | (12,069 | ) | — | 542 | — | (11,527 | ) | |||||||||||||
Repurchases of common stock and restricted stock | (739 | ) | (4,733 | ) | (1 | ) | — | (5,473 | ) | |||||||||||
Issuance of common stock under employee stock purchase plan | 76 | 123 | — | — | 199 | |||||||||||||||
Exercise of stock options | 1,193 | 5,248 | — | — | 6,441 | |||||||||||||||
Dividends paid | (13,267 | ) | (25,302 | ) | 22 | — | (38,547 | ) | ||||||||||||
Excess tax benefits from share-based compensation | 1,925 | 4,803 | — | — | 6,728 | |||||||||||||||
Deferred payments for acquisitions | — | — | (14,316 | ) | — | (14,316 | ) | |||||||||||||
Other | — | (54 | ) | (711 | ) | — | (765 | ) | ||||||||||||
Intercompany | (20,620 | ) | (14,861 | ) | 59,303 | (23,822 | ) | — | ||||||||||||
Net cash provided by financing activities | 358,999 | (34,776 | ) | 44,839 | (23,822 | ) | 345,240 | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | 4 | (1,971 | ) | — | (1,967 | ) | |||||||||||||
Net change in cash and cash equivalents | 313,667 | (19,607 | ) | 13,136 | — | 307,196 | ||||||||||||||
Cash and cash equivalents at beginning of period | — | 34,406 | 173,395 | — | 207,801 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 313,667 | $ | 14,799 | $ | 186,531 | $ | — | $ | 514,997 | ||||||||||
j2 Global, Inc. | ||||||||||||||||||||
Condensed Consolidated Statement of Cash Flows | ||||||||||||||||||||
(Unaudited, in thousands) | ||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||
30-Sep-13 | ||||||||||||||||||||
j2 Global, Inc. | j2 Cloud Services, Inc. | Non-guarantor Subsidiaries | Consolidating Adjustments | j2 Global Consolidated | ||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net income | $ | — | $ | 42,685 | $ | 43,680 | $ | — | $ | 86,365 | ||||||||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||||||||||||||||||
Depreciation and amortization | — | 6,659 | 21,765 | — | 28,424 | |||||||||||||||
Amortization of discount or premium of investments | — | 948 | 375 | — | 1,323 | |||||||||||||||
Amortization of financing costs and discounts | — | 456 | — | — | 456 | |||||||||||||||
Share-based compensation | — | 7,108 | — | — | 7,108 | |||||||||||||||
Excess tax benefits from share-based compensation | — | (3,171 | ) | — | — | (3,171 | ) | |||||||||||||
Provision for doubtful accounts | — | 1,016 | 1,549 | — | 2,565 | |||||||||||||||
Deferred income taxes | — | 451 | 21 | — | 472 | |||||||||||||||
Loss on sale of available-for-sale investment | — | — | 103 | — | 103 | |||||||||||||||
Decrease (increase) in: | ||||||||||||||||||||
Accounts receivable | — | (1,514 | ) | (5,981 | ) | — | (7,495 | ) | ||||||||||||
Prepaid expenses and other current assets | — | 1,227 | (282 | ) | — | 945 | ||||||||||||||
Other assets | — | (7 | ) | 189 | — | 182 | ||||||||||||||
(Decrease) increase in: | ||||||||||||||||||||
Accounts payable and accrued expenses | — | (9,583 | ) | 13,618 | — | 4,035 | ||||||||||||||
Income taxes payable | — | (1,235 | ) | (2,051 | ) | — | (3,286 | ) | ||||||||||||
Deferred revenue | — | 14,331 | (1,282 | ) | — | 13,049 | ||||||||||||||
Liability for uncertain tax positions | — | 3,865 | 2 | — | 3,867 | |||||||||||||||
Other | — | (44 | ) | (18 | ) | — | (62 | ) | ||||||||||||
Net cash provided by operating activities | — | 63,192 | 71,688 | — | 134,880 | |||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Maturity of certificates of deposit | — | 30,270 | 12,345 | — | 42,615 | |||||||||||||||
Purchase of certificates of deposit | — | (16,375 | ) | (5,696 | ) | — | (22,071 | ) | ||||||||||||
Sales of available-for-sale investments | — | 72,384 | 10,505 | — | 82,889 | |||||||||||||||
Purchase of available-for-sale investments | — | (119,049 | ) | (20,906 | ) | — | (139,955 | ) | ||||||||||||
Purchases of property and equipment | — | (4,134 | ) | (6,982 | ) | — | (11,116 | ) | ||||||||||||
Proceeds from sale of assets | — | 1 | — | — | 1 | |||||||||||||||
Acquisition of businesses, net of cash received | — | (2,305 | ) | (79,261 | ) | — | (81,566 | ) | ||||||||||||
Purchases of intangible assets | — | (1,828 | ) | (956 | ) | — | (2,784 | ) | ||||||||||||
Investment in subsidiaries | — | (12,498 | ) | — | 12,498 | — | ||||||||||||||
Other | — | 3,281 | (3,281 | ) | — | — | ||||||||||||||
Net cash used in investing activities | — | (50,253 | ) | (94,232 | ) | 12,498 | (131,987 | ) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Debt issuance costs | — | (47 | ) | — | — | (47 | ) | |||||||||||||
Repurchases of common stock and restricted stock | — | (4,514 | ) | 1 | — | (4,513 | ) | |||||||||||||
Issuance of common stock under employee stock purchase plan | — | 161 | — | — | 161 | |||||||||||||||
Exercise of stock options | — | 13,515 | — | — | 13,515 | |||||||||||||||
Dividends paid | — | (33,267 | ) | — | — | (33,267 | ) | |||||||||||||
Excess tax benefits from share-based compensation | — | 3,171 | — | — | 3,171 | |||||||||||||||
Other | — | — | (171 | ) | — | (171 | ) | |||||||||||||
Intercompany | — | (18,120 | ) | 30,618 | (12,498 | ) | — | |||||||||||||
Net cash used in financing activities | — | (39,101 | ) | 30,448 | (12,498 | ) | (21,151 | ) | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | (23 | ) | (1,218 | ) | — | (1,241 | ) | ||||||||||||
Net change in cash and cash equivalents | — | (26,185 | ) | 6,686 | — | (19,499 | ) | |||||||||||||
Cash and cash equivalents at beginning of period | — | 76,712 | 141,968 | — | 218,680 | |||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 50,527 | $ | 148,654 | $ | — | $ | 199,181 | ||||||||||
Basis_Of_Presentation_Details
Basis Of Presentation (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Revenue | $153,018 | $127,788 | $431,886 | $382,766 |
Net income attributable to j2 Global, Inc. common shareholders | $28,759 | $27,806 | $92,573 | $86,768 |
Basic earnings per share | $0.60 | $0.60 | $1.94 | $1.88 |
Diluted earnings per share | $0.60 | $0.59 | $1.93 | $1.85 |
Business_Acquisition_Details
Business Acquisition (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2013 | |
Goodwill, Acquired During Period | $79,600,000 | ' |
Goodwill | 533,403,000 | 457,422,000 |
Business Acquisition, Purchase Price Allocation, Goodwill, Expected Tax Deductible Amount | 20,900,000 | ' |
Business Acquisition Contributed Total Revenue | 32,000,000 | ' |
Total consideration of transaction, net of cash acquired | 176,300,000 | ' |
Business Combination, Consideration Transferred, Liabilities Incurred | $34,900,000 | ' |
Business_Acquisition_Business_
Business Acquisition Business Acquisition (Allocation of Aggregate Purchase Price) (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | $11,291 | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 8,686 | ' |
Business Combination, Purchase Price Allocation Current Noncurrent Assets Prepaid Expense and Other Assets | 3,339 | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Assets Noncurrent | 1,877 | ' |
Business Combination, Purchase Price Allocation, Goodwill Amount | 533,403 | 457,422 |
Goodwill, Acquired During Period | 79,600 | ' |
Developed Technology Rights [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 2,474 | ' |
Trade Names [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 2,387 | ' |
Customer Relationships [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 65,153 | ' |
Other Intangible Assets [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $1,477 | ' |
Business_Acquisition_Business_1
Business Acquisition Business Acquisitions (Supplementary Information On Unaudited Pro Forma Financial Results Of Acquisition) (Details) (2014 Business Acquisitions [Member], USD $) | 9 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
2014 Business Acquisitions [Member] | ' | ' |
Business Acquisition, Pro Forma Revenue | $474,749 | $440,030 |
Business Acquisition, Pro Forma Net Income (Loss) | $96,031 | $89,043 |
Business Acquisition, Pro Forma Earnings Per Share, Basic | $2.01 | $1.93 |
Business Acquisition, Pro Forma Earnings Per Share, Diluted | $2 | $1.90 |
Investments_Schedule_Of_Debt_S
Investments (Schedule Of Debt Securities By Contractual Maturity Date) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investments [Abstract] | ' | ' |
Due within 1 year | $81,410 | $46,339 |
Due within more than 1 year but less than 5 years | 58,955 | 44,865 |
Due within more than 5 years but less than 10 years | 0 | 0 |
Due 10 years or after | 2,459 | 2,486 |
Total | $142,824 | $93,690 |
Investments_Schedule_Of_Availa
Investments (Schedule Of Available-For-Sale And Trading Securities) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investments [Abstract] | ' | ' |
Available-for-sale Securities | $168,833 | $123,737 |
Total | $168,833 | $123,737 |
Investments_Summary_Of_Gross_U
Investments (Summary Of Gross Unrealized Gains And Losses And Fair Values) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Amortized Cost Basis | $163,340 | $114,179 |
Available-for-sale Securities, Gross Unrealized Gains | 5,819 | 9,716 |
Available-for-sale Securities, Gross Unrealized Losses | -326 | -158 |
Available-for-sale Securities | 168,833 | 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 | 5,631 | 9,558 |
Available-for-sale Securities, Gross Unrealized Losses | -232 | -121 |
Available-for-sale Securities | 26,009 | 30,047 |
Debt Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Amortized Cost Basis | 142,730 | 93,569 |
Available-for-sale Securities, Gross Unrealized Gains | 188 | 158 |
Available-for-sale Securities, Gross Unrealized Losses | -94 | -37 |
Available-for-sale Securities | $142,824 | $93,690 |
Investments_Investments_Narrat
Investments Investments (Narrative) (Details) (USD $) | Sep. 30, 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 | $78.80 | $37.30 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | $0.20 | $2 |
Fair_Value_Measurements_Schedu
Fair Value Measurements (Schedule Of Fair Values Of Financial Instruments Measured On Recurring Basis) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Total assets | $561,680 | $262,144 |
Money Market Funds [Member] | ' | ' |
Cash | 328,786 | 101,232 |
Bank Time Deposits [Member] | ' | ' |
Cash | 52,057 | 22,773 |
Commercial Paper [Member] | ' | ' |
Cash | 12,004 | ' |
Certificates of Deposit [Member] | ' | ' |
Investments | ' | 14,402 |
Equity Securities [Member] | ' | ' |
Investments | 26,009 | 30,047 |
Debt Securities Issued By The U.S Treasury And Other U.S Government Corporations And Agencies [Member] | ' | ' |
Investments | 42,387 | 23,702 |
Debt Securities Issued By States Of The United States And Political Subdivisions Of The States [Member] | ' | ' |
Investments | 2,119 | 3,296 |
Debt Securities Issued By Foreign Governments [Member] | ' | ' |
Investments | 2,033 | ' |
Corporate Debt Securities [Member] | ' | ' |
Investments | 96,285 | 66,692 |
Level 1 [Member] | ' | ' |
Total assets | 354,795 | 262,144 |
Level 1 [Member] | Money Market Funds [Member] | ' | ' |
Cash | 328,786 | 101,232 |
Level 1 [Member] | Bank Time Deposits [Member] | ' | ' |
Cash | 0 | 22,773 |
Level 1 [Member] | Commercial Paper [Member] | ' | ' |
Cash | 0 | ' |
Level 1 [Member] | Certificates of Deposit [Member] | ' | ' |
Investments | ' | 14,402 |
Level 1 [Member] | Equity Securities [Member] | ' | ' |
Investments | 26,009 | 30,047 |
Level 1 [Member] | Debt Securities Issued By The U.S Treasury And Other U.S Government Corporations And Agencies [Member] | ' | ' |
Investments | 0 | 23,702 |
Level 1 [Member] | Debt Securities Issued By States Of The United States And Political Subdivisions Of The States [Member] | ' | ' |
Investments | 0 | 3,296 |
Level 1 [Member] | Debt Securities Issued By Foreign Governments [Member] | ' | ' |
Investments | 0 | ' |
Level 1 [Member] | Corporate Debt Securities [Member] | ' | ' |
Investments | 0 | 66,692 |
Level 2 [Member] | ' | ' |
Total assets | 206,885 | 0 |
Level 2 [Member] | Money Market Funds [Member] | ' | ' |
Cash | 0 | 0 |
Level 2 [Member] | Bank Time Deposits [Member] | ' | ' |
Cash | 52,057 | 0 |
Level 2 [Member] | Commercial Paper [Member] | ' | ' |
Cash | 12,004 | ' |
Level 2 [Member] | Certificates of Deposit [Member] | ' | ' |
Investments | ' | 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 | 42,387 | 0 |
Level 2 [Member] | Debt Securities Issued By States Of The United States And Political Subdivisions Of The States [Member] | ' | ' |
Investments | 2,119 | 0 |
Level 2 [Member] | Debt Securities Issued By Foreign Governments [Member] | ' | ' |
Investments | 2,033 | ' |
Level 2 [Member] | Corporate Debt Securities [Member] | ' | ' |
Investments | 96,285 | 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 |
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 $) | Sep. 30, 2014 | Dec. 31, 2013 |
Fair Value Disclosures [Abstract] | ' | ' |
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | $206,900,000 | ' |
Long-term Debt | 591,464,000 | 245,670,000 |
Long-term Debt, Fair Value | $678,300,000 | $283,300,000 |
Goodwill_And_Intangible_Assets2
Goodwill And Intangible Assets (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Goodwill | $533,403,000 | ' | $533,403,000 | ' | $457,422,000 |
Amortization expense | 10,700,000 | 7,500,000 | 32,200,000 | 21,600,000 | ' |
Estimated future amortization expense in year 2014 | 44,300,000 | ' | 44,300,000 | ' | ' |
Estimated future amortization expense in year 2015 | 45,600,000 | ' | 45,600,000 | ' | ' |
Estimated future amortization expense in year 2016 | 40,000,000 | ' | 40,000,000 | ' | ' |
Estimated future amortization expense in year 2017 | 33,100,000 | ' | 33,100,000 | ' | ' |
Estimated future amortization expense in year 2018 | 23,800,000 | ' | 23,800,000 | ' | ' |
Estimated future amortization expense thereafter | 76,100,000 | ' | 76,100,000 | ' | ' |
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 | 385,300,000 | ' | 385,300,000 | ' | ' |
Digital Media Segment [Member] | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Goodwill | $148,100,000 | ' | $148,100,000 | ' | ' |
Goodwill_And_Intangible_Assets3
Goodwill And Intangible Assets (Changes In Carrying Amounts Of Goodwill And Other Intangible Assets) (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | ' |
Balance as of January 1, 2014 | $457,422 |
Goodwill, Acquired During Period | 79,600 |
Purchase Accounting Adjustments | -975 |
Foreign Exchange Translation | -2,644 |
Balance as of September 30, 2014 | $533,403 |
Goodwill_And_Intangible_Assets4
Goodwill And Intangible Assets (Indefinite Intangible Assets) (Details) (USD $) | Sep. 30, 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 $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Historical Cost | $353,913 | $282,868 |
Accumulated Amortization | -123,220 | -92,146 |
Net | 230,693 | 190,722 |
Trade Names [Member] | ' | ' |
Historical Cost | 69,067 | 66,911 |
Accumulated Amortization | -12,253 | -11,182 |
Net | 56,814 | 55,729 |
Weighted-Average Amortization Period, years | '16 years 7 months 6 days | '17 years |
Patents And Patent Licenses [Member] | ' | ' |
Historical Cost | 62,836 | 58,446 |
Accumulated Amortization | -35,944 | -29,916 |
Net | 26,892 | 28,530 |
Weighted-Average Amortization Period, years | '7 years 9 months 18 days | '8 years 1 month 6 days |
Customer Relationships [Member] | ' | ' |
Historical Cost | 201,827 | 139,362 |
Accumulated Amortization | -57,429 | -38,382 |
Net | 144,398 | 100,980 |
Weighted-Average Amortization Period, years | '8 years 6 months | '8 years 1 month 6 days |
Other Purchased Intangibles [Member] | ' | ' |
Historical Cost | 20,183 | 18,149 |
Accumulated Amortization | -17,594 | -12,666 |
Net | $2,589 | $5,483 |
Weighted-Average Amortization Period, years | '5 years 1 month 6 days | '5 years |
Long_Term_Debt_Details
Long Term Debt (Details) (USD $) | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2014 | Jun. 10, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Jul. 26, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Jun. 10, 2014 | |
Senior Notes [Member] | Senior Notes [Member] | Convertible Debt Securities [Member] | Convertible Debt Securities [Member] | Convertible Debt Securities [Member] | ||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Issuance Date | ' | ' | ' | 26-Jul-12 | ' | ' | 10-Jun-14 | ' |
Debt Instrument, Face Amount | ' | ' | ' | $250,000,000 | ' | $402,500,000 | $402,500,000 | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | 8.00% | ' | 3.25% | 3.25% | ' |
Debt Instrument, Maturity Date | ' | ' | ' | 1-Aug-20 | ' | ' | 15-Jun-29 | ' |
Proceeds from Debt, Net of Issuance Costs | ' | ' | ' | 245,000,000 | ' | ' | 391,400,000 | ' |
Debt Instrument, Unamortized Discount | ' | ' | ' | 3,900,000 | 5,000,000 | 57,100,000 | 57,100,000 | 59,000,000 |
Debt Instrument, Convertible, Remaining Discount Amortization Period | ' | ' | ' | ' | ' | ' | '6 years 9 months | ' |
Debt Issuance Cost | ' | ' | ' | ' | ' | ' | 11,700,000 | ' |
Unamortized Debt Issuance Expense | ' | ' | ' | 1,100,000 | ' | 9,700,000 | 9,700,000 | ' |
Interest Expense, Debt | ' | ' | ' | ' | ' | 5,300,000 | ' | ' |
Debt Instrument, Frequency of Periodic Payment | ' | ' | ' | 'semi-annually | ' | ' | 'semiannually | ' |
Debt Instrument, Date of First Required Payment | ' | ' | ' | 1-Feb-13 | ' | ' | 15-Dec-14 | ' |
Debt Instrument, Convertible, Carrying Amount of Equity Component | ' | 37,700,000 | ' | ' | ' | ' | ' | ' |
Debt Instrument, Call Date, Earliest | ' | ' | ' | 1-Aug-16 | ' | ' | ' | ' |
Long-term Debt | 591,464,000 | ' | 245,670,000 | 246,055,000 | ' | 345,409,000 | 345,409,000 | ' |
Long-term Debt, Current Maturities | 0 | ' | ' | ' | ' | ' | ' | ' |
Total long-term debt, less current portion | 591,464,000 | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Fair Value | 678,300,000 | ' | 283,300,000 | 273,300,000 | ' | 405,000,000 | 405,000,000 | ' |
Interest Paid | $20,000,000 | ' | ' | ' | ' | ' | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | 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] | 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 | 20.30% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income before income taxes, domestic operations | ' | $70.50 | $56 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income before income taxes, foreign operations | ' | 41.9 | 54.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liabilities for uncertain income tax positions | 35.8 | 35.8 | ' | 43.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash paid for income taxes | ' | 23.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Prepaid tax payments | $9.80 | $9.80 | ' | $11.30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Tax Examination, Year under Examination | ' | ' | ' | ' | '2011 | '2010 | '2009 | '2011 | '2010 | '2009 | '2011 | '2010 | '2009 | '2008 | '2011 | '2010 | '2009 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | |||
Oct. 30, 2014 | Aug. 05, 2014 | 7-May-14 | Feb. 12, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
2012 Repurchase Program [Member] | ||||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' |
Maximum number of shares authorized to be repurchased | ' | ' | ' | ' | ' | 5,000,000 |
Stock Repurchased | ' | ' | ' | ' | ' | 0 |
Dividend amount to be paid, per common share | $0.28 | $0.28 | $0.27 | $0.26 | ' | ' |
Dividend, declaration date | 30-Oct-14 | 5-Aug-14 | 7-May-14 | 11-Feb-14 | ' | ' |
Dividend, date to be paid | 4-Dec-14 | 2-Sep-14 | 3-Jun-14 | 10-Mar-14 | ' | ' |
Dividend, date of record | 17-Nov-14 | 18-Aug-14 | 19-May-14 | 24-Feb-14 | ' | ' |
Shares Paid for Tax Withholding for Share Based Compensation | ' | ' | ' | ' | 13,349 | ' |
Stock_Options_And_Employee_Sto2
Stock Options And Employee Stock Purchase Plan (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Allocated Share-based Compensation Expense | $2,191,000 | $2,425,000 | $6,538,000 | $7,108,000 | ' |
Number of options outstanding | 735,951 | ' | 735,951 | ' | 1,175,657 |
Number of options granted | ' | ' | 0 | ' | ' |
Cash received upon the issuance of common stock | ' | ' | 199,000 | 161,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | ' | ' | 14,500,000 | 11,600,000 | ' |
Stock Options [Member] | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | 1,000,000 | ' | 1,000,000 | ' | 2,000,000 |
Restricted Stock And Restricted Stock Unit (RSU) [Member] | ' | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | 1,900,000 | 1,800,000 | 5,500,000 | 5,000,000 | ' |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | 22,600,000 | ' | 22,600,000 | ' | 20,200,000 |
Restricted Stock [Member] | ' | ' | ' | ' | ' |
Shares, Granted | ' | ' | 176,864 | ' | ' |
Weighted-Average Grant-Date Fair Value, Granted | ' | ' | $44.65 | ' | ' |
Number of stocks outstanding | 858,155 | ' | 858,155 | ' | 1,178,371 |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' | ' | ' |
Shares, Granted | ' | ' | 16,737 | ' | ' |
Number of stocks outstanding | 95,204 | ' | 95,204 | ' | 109,725 |
1997 Stock Option Plan [Member] | ' | ' | ' | ' | ' |
Additional shares authorized for issuance | ' | ' | 840,000 | ' | ' |
Maximum issuance of common stock | 12,000,000 | ' | 12,000,000 | ' | ' |
1997 Stock Option Plan [Member] | Stock Options [Member] | ' | ' | ' | ' | ' |
Number of options outstanding | 224,708 | ' | 224,708 | ' | ' |
1997 Stock Option Plan [Member] | Restricted Stock [Member] | ' | ' | ' | ' | ' |
Number of stocks outstanding | 0 | ' | 0 | ' | ' |
2007 Stock Plan [Member] | ' | ' | ' | ' | ' |
Number of options outstanding | 606,447 | ' | 606,447 | ' | ' |
Number of stocks outstanding | 95,204 | ' | 95,204 | ' | ' |
Maximum issuance of common stock | 4,500,000 | ' | 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% | ' | 15.00% | ' | ' |
Number of shares purchased under the plan | ' | ' | 4,463 | 4,416 | ' |
Cash received upon the issuance of common stock | ' | ' | $199,000 | $161,000 | ' |
Number of shares available for issuance | 1,635,736 | ' | 1,635,736 | ' | ' |
Minimum [Member] | ' | ' | ' | ' | ' |
Market value of common stock on the date of grant for incentive stock options | ' | ' | 85.00% | ' | ' |
Stock_Options_And_Employee_Sto3
Stock Options And Employee Stock Purchase Plan (Stock Options) (Details) (USD $) | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 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 | -424,706 | ' | ' | ' |
Number of Shares, Canceled | -15,000 | ' | ' | ' |
Number of Shares, Outstanding Ending of Period | 735,951 | ' | ' | ' |
Number of Shares, Exercisable | 623,739 | ' | ' | ' |
Number of Shares, Vested and expected to vest | 721,497 | ' | ' | ' |
Weighted-Average Exercise Price, Outstanding Beginning of Period | $21.21 | ' | ' | ' |
Weighted-Average Exercise Price, Granted | $0 | ' | ' | ' |
Weighted-Average Exercise Price, Exercised | $15.59 | ' | ' | ' |
Weighted-Average Exercise Price, Canceled | $31.07 | ' | ' | ' |
Weighted-Average Exercise Price, Outstanding Ending of Period | $24.25 | ' | ' | ' |
Weighted-Average Exercise Price, Exercisable | $23.72 | ' | ' | ' |
Weighted-Average Exercise Price, Vested and expected to vest | $24.19 | ' | ' | ' |
Weighted-Average Remaining Contractual Term, Outstanding (in years) | '4 years 1 month 17 days | ' | ' | ' |
Weighted-Average Remaining Contractual Term, Exercisable (in years) | '3 years 8 months 5 days | ' | ' | ' |
Weighted-Average Remaining Contractual Term, Vested and expected to vest (in years) | '4 years 0 months 29 days | ' | ' | ' |
Aggregate Intrinsic Value, Outstanding | $18,476,543 | ' | ' | ' |
Aggregate Intrinsic Value, Exercisable | 15,991,979 | ' | ' | ' |
Aggregate Intrinsic Value, Vested and expected to vest | 18,163,534 | ' | ' | ' |
Aggregate intrinsic values of options exercised | 14,500,000 | 11,600,000 | ' | ' |
Unrecognized compensation cost related to non-vested awards granted | ' | ' | $1,000,000 | $2,000,000 |
Weighted-average period to recognize compensation cost (in years) | ' | ' | '1 year 7 months 21 days | ' |
Stock_Options_And_Employee_Sto4
Stock Options And Employee Stock Purchase Plan (Assumptions To Estimate Fair Value Of Stock Options) (Details) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' |
Estimated forfeiture rate | 12.22% | 15.72% |
Stock_Options_And_Employee_Sto5
Stock Options And Employee Stock Purchase Plan (Restricted Stock) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Compensation cost recognized | $2,191,000 | $2,425,000 | $6,538,000 | $7,108,000 | ' |
Allocated Share-based Compensation Expense | 2,191,000 | 2,425,000 | 6,538,000 | 7,108,000 | ' |
Restricted Stock And Restricted Stock Unit (RSU) [Member] | ' | ' | ' | ' | ' |
Compensation cost recognized | 1,900,000 | 1,800,000 | 5,500,000 | 5,000,000 | ' |
Allocated Share-based Compensation Expense | 1,900,000 | 1,800,000 | 5,500,000 | 5,000,000 | ' |
Unrecognized compensation cost related to non-vested awards granted | 22,600,000 | ' | 22,600,000 | ' | 20,200,000 |
Restricted Stock [Member] | ' | ' | ' | ' | ' |
Nonvested at January 1, 2014 | ' | ' | 1,178,371 | ' | ' |
Shares, Granted | ' | ' | 176,864 | ' | ' |
Shares, Vested | ' | ' | -452,010 | ' | ' |
Shares, Canceled | ' | ' | -45,070 | ' | ' |
Nonvested at September 30, 2014 | 858,155 | ' | 858,155 | ' | ' |
Weighted-Average Grant-Date Fair Value, Nonvested at January 1, 2014 | ' | ' | $18.17 | ' | ' |
Weighted-Average Grant-Date Fair Value, Granted | ' | ' | $44.65 | ' | ' |
Weighted-Average Grant-Date Fair Value, Vested | ' | ' | $17.66 | ' | ' |
Weighted-Average Grant-Date Fair Value, Canceled | ' | ' | $35.55 | ' | ' |
Weighted-Average Grant-Date Fair Value, Nonvested at June 30, 2014 | $22.98 | ' | $22.98 | ' | ' |
Weighted-average period to recognize compensation cost (in years) | ' | ' | '3 years 1 month 17 days | ' | ' |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' | ' | ' |
Nonvested at January 1, 2014 | ' | ' | 109,725 | ' | ' |
Shares, Granted | ' | ' | 16,737 | ' | ' |
Shares, Vested | ' | ' | -16,258 | ' | ' |
Shares, Canceled | ' | ' | -15,000 | ' | ' |
Nonvested at September 30, 2014 | 95,204 | ' | 95,204 | ' | ' |
Share Based Compensation Equity Awards Other Than Options Expected To Vest Shares | ' | ' | 74,330 | ' | ' |
Weighted-average period to recognize compensation cost (in years) | ' | ' | ' | '3 years 4 months 2 days | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms | ' | ' | '1 year 11 months 27 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 9 months 22 days | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Expected To Vest Intrinsic Value | 3,668,909 | ' | 3,668,909 | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Outstanding, Aggregate Intrinsic Value | $4,699,269 | ' | $4,699,269 | ' | ' |
Stock_Options_And_Employee_Sto6
Stock Options And Employee Stock Purchase Plan (Allocation Of Share-Based Compensation Expense) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Allocated Share-based Compensation Expense | $2,191 | $2,425 | $6,538 | $7,108 |
Cost Of Revenues [Member] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | 82 | 162 | 263 | 581 |
Sales And Marketing [Member] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | 443 | 465 | 1,360 | 1,315 |
Research, Development And Engineering [Member] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | 175 | 103 | 537 | 311 |
General And Administrative [Member] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | $1,491 | $1,695 | $4,378 | $4,901 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Earnings Per Share Reconciliation [Abstract] | ' | ' | ' | ' |
Net income attributable to j2 Global, Inc. common shareholders | $28,759 | $27,806 | $92,573 | $86,768 |
Undistributed Earnings (Loss) Allocated to Participating Securities, Basic | 538 | 416 | 1,964 | 1,455 |
Net earnings available to common shareholders | $28,221 | $27,390 | $90,609 | $85,313 |
Weighted-average outstanding shares of common stock - basic | 46,845,477 | 45,729,171 | 46,653,836 | 45,441,265 |
Dilutive effect of equity incentive plans | 318,435 | 562,460 | 334,591 | 625,339 |
Weighted-average outstanding shares of common stock - diluted | 47,163,912 | 46,291,631 | 46,988,427 | 46,066,604 |
Basic | $0.60 | $0.60 | $1.94 | $1.88 |
Diluted | $0.60 | $0.59 | $1.93 | $1.85 |
Share options excluded from the computation of diluted earnings per share | ' | ' | 0 | ' |
Geographic_Information_Details
Geographic Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Total revenues | $153,018 | $127,788 | $431,886 | $382,766 | ' |
United States | 269,480 | ' | 269,480 | ' | 221,922 |
Total long-lived assets | 269,480 | ' | 269,480 | ' | 221,922 |
UNITED STATES | ' | ' | ' | ' | ' |
Total revenues | 101,381 | 90,447 | 289,656 | 270,444 | ' |
United States | 176,216 | ' | 176,216 | ' | 170,247 |
Total long-lived assets | 176,216 | ' | 176,216 | ' | 170,247 |
CANADA | ' | ' | ' | ' | ' |
Total revenues | 17,698 | 17,992 | 52,642 | 55,137 | ' |
IRELAND | ' | ' | ' | ' | ' |
Total revenues | 10,846 | 10,417 | 32,118 | 30,822 | ' |
All Other Countries [Member] | ' | ' | ' | ' | ' |
Total revenues | 23,093 | 8,932 | 57,470 | 26,363 | ' |
United States | 93,264 | ' | 93,264 | ' | 51,675 |
Total long-lived assets | $93,264 | ' | $93,264 | ' | $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 | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total revenues | $153,018 | $127,788 | $431,886 | $382,766 |
Income (loss) from operations | 46,478 | 39,308 | 132,900 | 124,902 |
Global Operating Costs | 9,882 | 7,449 | 25,254 | 22,283 |
Business Cloud Services Segment [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total revenues | 109,855 | 94,391 | 317,208 | 293,898 |
Direct Costs By Segment | 60,841 | 48,504 | 176,609 | 143,075 |
Income (loss) from operations | 49,014 | 45,886 | 140,599 | 150,823 |
Digital Media Segment [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total revenues | 43,218 | 33,522 | 114,860 | 89,207 |
Direct Costs By Segment | 35,872 | 32,652 | 97,305 | 92,845 |
Income (loss) from operations | 7,346 | 871 | 17,555 | -3,638 |
Intersegment Elimination [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total revenues | -55 | -125 | -182 | -339 |
Operating Segments [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Income (loss) from operations | $56,360 | $46,757 | $158,154 | $147,185 |
Segment_Information_Reportable1
Segment Information Reportable Segment Information (Total Assets, Capital Expenditures, Depreciation And Amortization) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ' | ' | ' | ' | ' |
Total assets | $1,640,004 | ' | $1,640,004 | ' | $1,153,789 |
Property, Plant and Equipment, Additions | ' | ' | 7,755 | 11,116 | ' |
Depreciation, Depletion and Amortization, Nonproduction | 14,851 | 10,183 | 43,307 | 28,424 | ' |
Business Cloud Services Segment [Member] | ' | ' | ' | ' | ' |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ' | ' | ' | ' | ' |
Total assets | 853,843 | ' | 853,843 | ' | 818,722 |
Property, Plant and Equipment, Additions | ' | ' | 4,366 | 5,573 | ' |
Depreciation, Depletion and Amortization, Nonproduction | 9,413 | 6,248 | 27,471 | 17,609 | ' |
Digital Media Segment [Member] | ' | ' | ' | ' | ' |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ' | ' | ' | ' | ' |
Total assets | 352,547 | ' | 352,547 | ' | 333,286 |
Property, Plant and Equipment, Additions | ' | ' | 3,066 | 5,067 | ' |
Depreciation, Depletion and Amortization, Nonproduction | 5,250 | 3,767 | 15,273 | 10,335 | ' |
Operating Segments [Member] | ' | ' | ' | ' | ' |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ' | ' | ' | ' | ' |
Total assets | 1,206,390 | ' | 1,206,390 | ' | 1,152,008 |
Property, Plant and Equipment, Additions | ' | ' | 7,432 | 10,640 | ' |
Depreciation, Depletion and Amortization, Nonproduction | 14,663 | 10,015 | 42,744 | 27,944 | ' |
Corporate [Member] | ' | ' | ' | ' | ' |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ' | ' | ' | ' | ' |
Total assets | 433,614 | ' | 433,614 | ' | 1,781 |
Property, Plant and Equipment, Additions | ' | ' | 323 | 476 | ' |
Depreciation, Depletion and Amortization, Nonproduction | $188 | $168 | $563 | $480 | ' |
Unrestricted_Subsidiaries_Unre
Unrestricted Subsidiaries Unrestricted Subsidiaries (Financial Position) (Details) (USD $) | Sep. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||||
Cash and cash equivalents | $514,997 | ' | $207,801 | $199,181 | $218,680 |
Accounts receivable | 75,016 | ' | 67,245 | ' | ' |
Prepaid expenses and other current assets | 24,817 | ' | 20,064 | ' | ' |
Deferred income taxes | 7,451 | ' | 3,126 | ' | ' |
Total current assets | 729,699 | ' | 389,025 | ' | ' |
Property and equipment, net | 38,787 | ' | 31,200 | ' | ' |
Tradenames, net | 84,193 | ' | 83,108 | ' | ' |
Patent and patent licenses, net | 26,892 | ' | 28,530 | ' | ' |
Customer Relationships, Net | 144,398 | ' | 100,980 | ' | ' |
Goodwill | 533,403 | ' | 457,422 | ' | ' |
Other purchased intangibles, net | 8,021 | ' | 10,915 | ' | ' |
Deferred income taxes | 0 | ' | 1,845 | ' | ' |
Other assets | 13,196 | ' | 3,413 | ' | ' |
Total assets | 1,640,004 | ' | 1,153,789 | ' | ' |
Accounts payable and accrued expenses | 70,781 | ' | 69,570 | ' | ' |
Income taxes payable | 1,187 | ' | 1,569 | ' | ' |
Deferred revenue, current | 57,399 | ' | 36,326 | ' | ' |
Deferred Tax Liabilities, Net, Current | 591 | ' | 1,892 | ' | ' |
Total current liabilities | 130,498 | ' | 114,892 | ' | ' |
Deferred income taxes | 61,710 | ' | 35,833 | ' | ' |
Other long-term liabilities | 6,033 | ' | 1,458 | ' | ' |
Total liabilities | 836,443 | ' | 447,371 | ' | ' |
Commitments and contingencies | 0 | ' | 0 | ' | ' |
Common Stock, Value, Issued | 469 | ' | 461 | ' | ' |
Additional paid-in capital | 270,857 | ' | 216,872 | ' | ' |
Retained Earnings (Accumulated Deficit) | 535,567 | ' | 484,850 | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax | -3,332 | 6,651 | 4,235 | ' | ' |
Stockholders' Equity Attributable to Parent | 803,561 | ' | 706,418 | ' | ' |
Total liabilities and stockholdersb equity | 1,640,004 | ' | 1,153,789 | ' | ' |
Unrestricted Subsidiaries [Member] | ' | ' | ' | ' | ' |
Cash and cash equivalents | 28,093 | ' | ' | ' | ' |
Accounts receivable | 47,081 | ' | ' | ' | ' |
Prepaid expenses and other current assets | 3,570 | ' | ' | ' | ' |
Deferred income taxes | 9,289 | ' | ' | ' | ' |
Total current assets | 88,033 | ' | ' | ' | ' |
Property and equipment, net | 12,737 | ' | ' | ' | ' |
Tradenames, net | 50,156 | ' | ' | ' | ' |
Patent and patent licenses, net | ' | 25,904 | ' | ' | ' |
Customer Relationships, Net | 49,885 | ' | ' | ' | ' |
Goodwill | 148,080 | ' | ' | ' | ' |
Other purchased intangibles, net | 802 | ' | ' | ' | ' |
Deferred income taxes | 1,280 | ' | ' | ' | ' |
Other assets | 1,707 | ' | ' | ' | ' |
Total assets | 378,584 | ' | ' | ' | ' |
Accounts payable and accrued expenses | 36,700 | ' | ' | ' | ' |
Income taxes payable | 249 | ' | ' | ' | ' |
Deferred revenue, current | 4,044 | ' | ' | ' | ' |
Deferred Tax Liabilities, Net, Current | 0 | ' | ' | ' | ' |
Total current liabilities | 40,993 | ' | ' | ' | ' |
Deferred income taxes | 25,238 | ' | ' | ' | ' |
Other long-term liabilities | 1,541 | ' | ' | ' | ' |
Total liabilities | 67,772 | ' | ' | ' | ' |
Additional paid-in capital | 316,124 | ' | ' | ' | ' |
Retained Earnings (Accumulated Deficit) | -5,306 | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax | -6 | ' | ' | ' | ' |
Stockholders' Equity Attributable to Parent | 310,812 | ' | ' | ' | ' |
Total liabilities and stockholdersb equity | $378,584 | ' | ' | ' | ' |
Unrestricted_Subsidiaries_Unre1
Unrestricted Subsidiaries Unrestricted Subsidiaries (Results of Operations) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Total revenues | $153,018 | $127,788 | $431,886 | $382,766 |
Cost of revenues | 28,044 | 21,801 | 76,991 | 64,715 |
Gross Profit | 124,974 | 105,987 | 354,895 | 318,051 |
Selling and Marketing Expense | 37,047 | 34,787 | 105,335 | 99,638 |
Research and Development Expense | 7,637 | 6,000 | 22,451 | 19,134 |
General and Administrative Expense | 33,812 | 25,892 | 94,209 | 74,377 |
Operating Expenses | 78,496 | 66,679 | 221,995 | 193,149 |
Income (loss) from operations | 46,478 | 39,308 | 132,900 | 124,902 |
Interest expense (income), net | 10,123 | 4,972 | 20,753 | 14,709 |
Other expense (income), net | 251 | -396 | -254 | -600 |
Income (loss) before income taxes | 36,104 | 34,732 | 112,401 | 110,793 |
Income Tax Expense (Benefit) | 7,345 | 7,105 | 19,828 | 24,428 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 28,759 | 27,627 | 92,573 | 86,365 |
Unrestricted Subsidiaries [Member] | ' | ' | ' | ' |
Total revenues | 43,618 | 33,522 | 115,801 | 89,207 |
Cost of revenues | 5,299 | 4,398 | 13,596 | 12,682 |
Gross Profit | 38,319 | 29,124 | 102,205 | 76,525 |
Selling and Marketing Expense | 18,163 | 18,085 | 49,552 | 49,049 |
Research and Development Expense | 1,565 | 943 | 3,792 | 4,401 |
General and Administrative Expense | 13,527 | 9,225 | 35,320 | 26,713 |
Operating Expenses | 33,255 | 28,253 | 88,664 | 80,163 |
Income (loss) from operations | 5,064 | 871 | 13,541 | -3,638 |
Interest expense (income), net | -3 | 2,633 | -5 | 6,350 |
Other expense (income), net | 518 | 278 | 100 | 85 |
Income (loss) before income taxes | 4,549 | -2,040 | 13,446 | -10,073 |
Income Tax Expense (Benefit) | $4,015 | $1,624 | $8,250 | ($1,836) |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income Roll Forward (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Mar. 31, 2014 | 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 | $3,295 | ' | $3,295 | ' | $6,301 | $6,056 |
Unrealized gain on available-for-sale investments, net of tax (benefit) | -3,008 | ' | -2,746 | ' | ' | ' |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | -6,977 | ' | -4,806 | ' | ' | ' |
Other Comprehensive Income Loss Arising During Period Total Net of Tax | -9,985 | ' | -7,552 | ' | ' | ' |
Foreign currency translation adjustment, net of tax (benefit) | -6,977 | 1,590 | -4,806 | -526 | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance | ' | ' | 4,235 | ' | 6,651 | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance | -3,332 | ' | -3,332 | ' | 6,651 | ' |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | 2 | ' | -15 | ' | ' | ' |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment Realized upon Sale or Liquidation, Net of Tax | 0 | ' | 0 | ' | ' | ' |
Other Comprehensive Income Loss Reclassification Adjustments Total Net of Tax | 2 | ' | -15 | ' | ' | ' |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | -3,006 | 4,259 | -2,761 | 9,260 | ' | ' |
Other Comprehensive Income (Loss), Net of Tax | -9,983 | 5,849 | -7,567 | 8,734 | ' | ' |
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | ($6,627) | ' | ($6,627) | ' | $350 | ($1,821) |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Reclassification out of Accumulated Other Comprehensive Income (Loss)) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
ReclassificationOutOfAccumulatedOtherComprehensiveIncomeTableTextBlock [Line Items] | ' | ' | ' | ' |
Other expense (income), net | $251 | ($396) | ($254) | ($600) |
Income Tax Expense (Benefit) | 7,345 | 7,105 | 19,828 | 24,428 |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | 2 | ' | -15 | ' |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | 0 | ' | 0 | ' |
Other Comprehensive Income Loss Reclassification Adjustments Total Net of Tax | 2 | ' | -15 | ' |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ' | ' | ' | ' |
ReclassificationOutOfAccumulatedOtherComprehensiveIncomeTableTextBlock [Line Items] | ' | ' | ' | ' |
Other expense (income), net | 1 | ' | 25 | ' |
Income Tax Expense (Benefit) | $1 | ' | $10 | ' |
Condensed_Consolidating_Financ2
Condensed Consolidating Financials Condensed Balance Sheet (Details) (USD $) | Sep. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||||
Cash and cash equivalents | $514,997 | ' | $207,801 | $199,181 | $218,680 |
Short-term investments | 107,418 | ' | 90,789 | ' | ' |
Accounts receivable, net of allowances of $3,582 and $4,105, respectively | 75,016 | ' | 67,245 | ' | ' |
Prepaid expenses and other current assets | 24,817 | ' | 20,064 | ' | ' |
Deferred income taxes | 7,451 | ' | 3,126 | ' | ' |
Due from Affiliate, Current | 0 | ' | 0 | ' | ' |
Total current assets | 729,699 | ' | 389,025 | ' | ' |
Long-term investments | 61,415 | ' | 47,351 | ' | ' |
Property and equipment, net | 38,787 | ' | 31,200 | ' | ' |
Tradenames, net | 84,193 | ' | 83,108 | ' | ' |
Patent and patent licenses, net | 26,892 | ' | 28,530 | ' | ' |
Customer Relationships, Net | 144,398 | ' | 100,980 | ' | ' |
Goodwill | 533,403 | ' | 457,422 | ' | ' |
Other purchased intangibles, net | 8,021 | ' | 10,915 | ' | ' |
Investments in and Advances to Affiliates, Amount of Equity | 0 | ' | 0 | ' | ' |
Other assets | 13,196 | ' | 3,413 | ' | ' |
Deferred income taxes | 0 | ' | 1,845 | ' | ' |
Total assets | 1,640,004 | ' | 1,153,789 | ' | ' |
Accounts payable and accrued expenses | 70,781 | ' | 69,570 | ' | ' |
Income taxes payable | 1,187 | ' | 1,569 | ' | ' |
Deferred revenue, current | 57,399 | ' | 36,326 | ' | ' |
Liability for Uncertain Tax Positions, Current | 0 | ' | 5,535 | ' | ' |
Deferred Tax Liabilities, Net, Current | 591 | ' | 1,892 | ' | ' |
Other current liabilities | 540 | ' | 0 | ' | ' |
Due to Affiliate, Current | 0 | ' | 0 | ' | ' |
Total current liabilities | 130,498 | ' | 114,892 | ' | ' |
Long-term Debt | 591,464 | ' | 245,670 | ' | ' |
Liability for uncertain tax positions | 35,793 | ' | 38,329 | ' | ' |
Deferred income taxes | 61,710 | ' | 35,833 | ' | ' |
Deferred revenue, non-current | 10,945 | ' | 11,189 | ' | ' |
Other long-term liabilities | 6,033 | ' | 1,458 | ' | ' |
Total liabilities | 836,443 | ' | 447,371 | ' | ' |
Commitments and contingencies | 0 | ' | 0 | ' | ' |
Common Stock, Value, Issued | 469 | ' | 461 | ' | ' |
Additional paid-in capital | 270,857 | ' | 216,872 | ' | ' |
Retained Earnings (Accumulated Deficit) | 535,567 | ' | 484,850 | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax | -3,332 | 6,651 | 4,235 | ' | ' |
Stockholders' Equity Attributable to Parent | 803,561 | ' | 706,418 | ' | ' |
Stockholders' Equity Attributable to Noncontrolling Interest | ' | ' | 0 | ' | ' |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 803,561 | ' | 706,418 | ' | ' |
Total liabilities and stockholdersb equity | 1,640,004 | ' | 1,153,789 | ' | ' |
Series A Preferred Stock [Member] | ' | ' | ' | ' | ' |
Preferred stock, $0.01 par value | 0 | ' | 0 | ' | ' |
Series B Preferred Stock [Member] | ' | ' | ' | ' | ' |
Preferred stock, $0.01 par value | 0 | ' | 0 | ' | ' |
j2 Global, Inc. [Member] | ' | ' | ' | ' | ' |
Cash and cash equivalents | 313,667 | ' | 0 | 0 | 0 |
Short-term investments | 62,647 | ' | 0 | ' | ' |
Accounts receivable, net of allowances of $3,582 and $4,105, respectively | 0 | ' | 0 | ' | ' |
Prepaid expenses and other current assets | 1,075 | ' | 0 | ' | ' |
Deferred income taxes | 0 | ' | 0 | ' | ' |
Due from Affiliate, Current | 0 | ' | 0 | ' | ' |
Total current assets | 377,389 | ' | 0 | ' | ' |
Long-term investments | 54,353 | ' | 0 | ' | ' |
Property and equipment, net | 0 | ' | 0 | ' | ' |
Tradenames, net | 0 | ' | 0 | ' | ' |
Patent and patent licenses, net | 0 | ' | 0 | ' | ' |
Customer Relationships, Net | 0 | ' | 0 | ' | ' |
Goodwill | 0 | ' | 0 | ' | ' |
Other purchased intangibles, net | 0 | ' | 0 | ' | ' |
Investments in and Advances to Affiliates, Amount of Equity | 231,027 | ' | 0 | ' | ' |
Other assets | 9,684 | ' | 0 | ' | ' |
Deferred income taxes | 0 | ' | 0 | ' | ' |
Total assets | 672,453 | ' | 0 | ' | ' |
Accounts payable and accrued expenses | 7,486 | ' | 0 | ' | ' |
Income taxes payable | 0 | ' | 0 | ' | ' |
Deferred revenue, current | 0 | ' | 0 | ' | ' |
Liability for Uncertain Tax Positions, Current | ' | ' | 0 | ' | ' |
Deferred Tax Liabilities, Net, Current | 856 | ' | 0 | ' | ' |
Other current liabilities | 0 | ' | ' | ' | ' |
Due to Affiliate, Current | 42,256 | ' | 0 | ' | ' |
Total current liabilities | 50,598 | ' | 0 | ' | ' |
Long-term Debt | 345,409 | ' | 0 | ' | ' |
Liability for uncertain tax positions | 0 | ' | 0 | ' | ' |
Deferred income taxes | 24,332 | ' | 0 | ' | ' |
Deferred revenue, non-current | 0 | ' | 0 | ' | ' |
Other long-term liabilities | 0 | ' | 0 | ' | ' |
Total liabilities | 420,339 | ' | 0 | ' | ' |
Common Stock, Value, Issued | 469 | ' | 0 | ' | ' |
Additional paid-in capital | 270,857 | ' | 0 | ' | ' |
Retained Earnings (Accumulated Deficit) | -19,276 | ' | 0 | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax | 64 | ' | 0 | ' | ' |
Stockholders' Equity Attributable to Parent | 252,114 | ' | 0 | ' | ' |
Stockholders' Equity Attributable to Noncontrolling Interest | ' | ' | 0 | ' | ' |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 252,114 | ' | 0 | ' | ' |
Total liabilities and stockholdersb equity | 672,453 | ' | 0 | ' | ' |
j2 Cloud Services, Inc. [Member] | ' | ' | ' | ' | ' |
Cash and cash equivalents | 14,799 | ' | 34,406 | 50,527 | 76,712 |
Short-term investments | 39,767 | ' | 67,848 | ' | ' |
Accounts receivable, net of allowances of $3,582 and $4,105, respectively | 11,213 | ' | 11,541 | ' | ' |
Prepaid expenses and other current assets | 16,237 | ' | 16,662 | ' | ' |
Deferred income taxes | 0 | ' | 0 | ' | ' |
Due from Affiliate, Current | 81,095 | ' | 4,433 | ' | ' |
Total current assets | 163,111 | ' | 134,890 | ' | ' |
Long-term investments | 7,061 | ' | 47,351 | ' | ' |
Property and equipment, net | 8,349 | ' | 11,232 | ' | ' |
Tradenames, net | 10,273 | ' | 12,119 | ' | ' |
Patent and patent licenses, net | 921 | ' | 15,107 | ' | ' |
Customer Relationships, Net | 1,049 | ' | 6,125 | ' | ' |
Goodwill | 50,803 | ' | 86,025 | ' | ' |
Other purchased intangibles, net | 4,308 | ' | 5,306 | ' | ' |
Investments in and Advances to Affiliates, Amount of Equity | 442,726 | ' | 357,057 | ' | ' |
Other assets | 1,488 | ' | 1,576 | ' | ' |
Deferred income taxes | 6,309 | ' | 202 | ' | ' |
Total assets | 696,398 | ' | 676,990 | ' | ' |
Accounts payable and accrued expenses | 23,100 | ' | 29,419 | ' | ' |
Income taxes payable | 398 | ' | 0 | ' | ' |
Deferred revenue, current | 23,312 | ' | 23,762 | ' | ' |
Liability for Uncertain Tax Positions, Current | ' | ' | 5,532 | ' | ' |
Deferred Tax Liabilities, Net, Current | 1,365 | ' | 906 | ' | ' |
Other current liabilities | 0 | ' | ' | ' | ' |
Due to Affiliate, Current | 0 | ' | 0 | ' | ' |
Total current liabilities | 48,175 | ' | 59,619 | ' | ' |
Long-term Debt | 246,055 | ' | 245,670 | ' | ' |
Liability for uncertain tax positions | 35,793 | ' | 38,329 | ' | ' |
Deferred income taxes | 0 | ' | 0 | ' | ' |
Deferred revenue, non-current | 8,870 | ' | 10,753 | ' | ' |
Other long-term liabilities | 881 | ' | 989 | ' | ' |
Total liabilities | 339,774 | ' | 355,360 | ' | ' |
Common Stock, Value, Issued | 0 | ' | 461 | ' | ' |
Additional paid-in capital | 231,027 | ' | 216,871 | ' | ' |
Retained Earnings (Accumulated Deficit) | 120,214 | ' | 97,754 | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax | 5,383 | ' | 6,544 | ' | ' |
Stockholders' Equity Attributable to Parent | 356,624 | ' | 321,630 | ' | ' |
Stockholders' Equity Attributable to Noncontrolling Interest | ' | ' | 0 | ' | ' |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 356,624 | ' | 321,630 | ' | ' |
Total liabilities and stockholdersb equity | 696,398 | ' | 676,990 | ' | ' |
Non-Guarantor Subsidiaries [Member] | ' | ' | ' | ' | ' |
Cash and cash equivalents | 186,531 | ' | 173,395 | 148,654 | 141,968 |
Short-term investments | 5,004 | ' | 22,941 | ' | ' |
Accounts receivable, net of allowances of $3,582 and $4,105, respectively | 63,803 | ' | 55,704 | ' | ' |
Prepaid expenses and other current assets | 7,505 | ' | 3,402 | ' | ' |
Deferred income taxes | 9,081 | ' | 3,126 | ' | ' |
Due from Affiliate, Current | 0 | ' | 0 | ' | ' |
Total current assets | 271,924 | ' | 258,568 | ' | ' |
Long-term investments | 1 | ' | 0 | ' | ' |
Property and equipment, net | 30,438 | ' | 19,968 | ' | ' |
Tradenames, net | 73,920 | ' | 70,989 | ' | ' |
Patent and patent licenses, net | 25,971 | ' | 13,423 | ' | ' |
Customer Relationships, Net | 143,349 | ' | 94,855 | ' | ' |
Goodwill | 482,600 | ' | 371,397 | ' | ' |
Other purchased intangibles, net | 3,713 | ' | 5,609 | ' | ' |
Investments in and Advances to Affiliates, Amount of Equity | 8,716 | ' | 0 | ' | ' |
Other assets | 2,024 | ' | 1,837 | ' | ' |
Deferred income taxes | 3,178 | ' | 1,643 | ' | ' |
Total assets | 1,045,834 | ' | 838,289 | ' | ' |
Accounts payable and accrued expenses | 40,195 | ' | 40,151 | ' | ' |
Income taxes payable | 789 | ' | 1,569 | ' | ' |
Deferred revenue, current | 34,087 | ' | 12,564 | ' | ' |
Liability for Uncertain Tax Positions, Current | ' | ' | 3 | ' | ' |
Deferred Tax Liabilities, Net, Current | 0 | ' | 986 | ' | ' |
Other current liabilities | 540 | ' | ' | ' | ' |
Due to Affiliate, Current | 38,839 | ' | 4,433 | ' | ' |
Total current liabilities | 114,450 | ' | 59,706 | ' | ' |
Long-term Debt | 0 | ' | 0 | ' | ' |
Liability for uncertain tax positions | 0 | ' | 0 | ' | ' |
Deferred income taxes | 46,865 | ' | 35,833 | ' | ' |
Deferred revenue, non-current | 2,075 | ' | 436 | ' | ' |
Other long-term liabilities | 5,152 | ' | 469 | ' | ' |
Total liabilities | 168,542 | ' | 96,444 | ' | ' |
Common Stock, Value, Issued | 0 | ' | 34 | ' | ' |
Additional paid-in capital | 421,401 | ' | 326,984 | ' | ' |
Retained Earnings (Accumulated Deficit) | 464,670 | ' | 417,136 | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax | -8,779 | ' | -2,309 | ' | ' |
Stockholders' Equity Attributable to Parent | 877,292 | ' | 741,845 | ' | ' |
Stockholders' Equity Attributable to Noncontrolling Interest | ' | ' | 0 | ' | ' |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 877,292 | ' | 741,845 | ' | ' |
Total liabilities and stockholdersb equity | 1,045,834 | ' | 838,289 | ' | ' |
Consolidation, Eliminations [Member] | ' | ' | ' | ' | ' |
Cash and cash equivalents | 0 | ' | 0 | 0 | 0 |
Short-term investments | 0 | ' | 0 | ' | ' |
Accounts receivable, net of allowances of $3,582 and $4,105, respectively | 0 | ' | 0 | ' | ' |
Prepaid expenses and other current assets | 0 | ' | 0 | ' | ' |
Deferred income taxes | -1,630 | ' | 0 | ' | ' |
Due from Affiliate, Current | -81,095 | ' | -4,433 | ' | ' |
Total current assets | -82,725 | ' | -4,433 | ' | ' |
Long-term investments | 0 | ' | 0 | ' | ' |
Property and equipment, net | 0 | ' | 0 | ' | ' |
Tradenames, net | 0 | ' | 0 | ' | ' |
Patent and patent licenses, net | 0 | ' | 0 | ' | ' |
Customer Relationships, Net | 0 | ' | 0 | ' | ' |
Goodwill | 0 | ' | 0 | ' | ' |
Other purchased intangibles, net | 0 | ' | 0 | ' | ' |
Investments in and Advances to Affiliates, Amount of Equity | -682,469 | ' | -357,057 | ' | ' |
Other assets | 0 | ' | 0 | ' | ' |
Deferred income taxes | -9,487 | ' | 0 | ' | ' |
Total assets | -774,681 | ' | -361,490 | ' | ' |
Accounts payable and accrued expenses | 0 | ' | 0 | ' | ' |
Income taxes payable | 0 | ' | 0 | ' | ' |
Deferred revenue, current | 0 | ' | 0 | ' | ' |
Liability for Uncertain Tax Positions, Current | ' | ' | 0 | ' | ' |
Deferred Tax Liabilities, Net, Current | -1,630 | ' | 0 | ' | ' |
Other current liabilities | 0 | ' | ' | ' | ' |
Due to Affiliate, Current | -81,095 | ' | -4,433 | ' | ' |
Total current liabilities | -82,725 | ' | -4,433 | ' | ' |
Long-term Debt | 0 | ' | 0 | ' | ' |
Liability for uncertain tax positions | 0 | ' | 0 | ' | ' |
Deferred income taxes | -9,487 | ' | 0 | ' | ' |
Deferred revenue, non-current | 0 | ' | 0 | ' | ' |
Other long-term liabilities | 0 | ' | 0 | ' | ' |
Total liabilities | -92,212 | ' | -4,433 | ' | ' |
Common Stock, Value, Issued | 0 | ' | -34 | ' | ' |
Additional paid-in capital | -652,428 | ' | -326,983 | ' | ' |
Retained Earnings (Accumulated Deficit) | -30,041 | ' | -30,040 | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax | 0 | ' | 0 | ' | ' |
Stockholders' Equity Attributable to Parent | -682,469 | ' | -357,057 | ' | ' |
Stockholders' Equity Attributable to Noncontrolling Interest | ' | ' | 0 | ' | ' |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | -682,469 | ' | -357,057 | ' | ' |
Total liabilities and stockholdersb equity | ($774,681) | ' | ($361,490) | ' | ' |
Condensed_Consolidating_Financ3
Condensed Consolidating Financials Condensed Income Statement (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Total revenues | $153,018 | $127,788 | $431,886 | $382,766 |
Cost of revenues | 28,044 | 21,801 | 76,991 | 64,715 |
Gross Profit | 124,974 | 105,987 | 354,895 | 318,051 |
Selling and Marketing Expense | 37,047 | 34,787 | 105,335 | 99,638 |
Research and Development Expense | 7,637 | 6,000 | 22,451 | 19,134 |
General and Administrative Expense | 33,812 | 25,892 | 94,209 | 74,377 |
Operating Expenses | 78,496 | 66,679 | 221,995 | 193,149 |
Income (loss) from operations | 46,478 | 39,308 | 132,900 | 124,902 |
Interest expense (income), net | 10,123 | 4,972 | 20,753 | 14,709 |
Other expense (income), net | 251 | -396 | -254 | -600 |
Income (loss) before income taxes | 36,104 | 34,732 | 112,401 | 110,793 |
Income Tax Expense (Benefit) | 7,345 | 7,105 | 19,828 | 24,428 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 28,759 | 27,627 | 92,573 | 86,365 |
Net Income (Loss) Attributable to Parent | 28,759 | 27,806 | 92,573 | 86,768 |
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | -179 | 0 | -403 |
j2 Global, Inc. [Member] | ' | ' | ' | ' |
Total revenues | 0 | 0 | 0 | 0 |
Cost of revenues | 0 | 0 | 0 | 0 |
Gross Profit | 0 | 0 | 0 | 0 |
Selling and Marketing Expense | 0 | 0 | 0 | 0 |
Research and Development Expense | 0 | 0 | 0 | 0 |
General and Administrative Expense | 3,063 | 0 | 3,463 | 0 |
Operating Expenses | 3,063 | 0 | 3,463 | 0 |
Income (loss) from operations | -3,063 | 0 | -3,463 | 0 |
Interest expense (income), net | 5,136 | 0 | 5,786 | 0 |
Other expense (income), net | -2 | 0 | -2 | 0 |
Income (loss) before income taxes | -8,197 | 0 | -9,247 | 0 |
Income Tax Expense (Benefit) | -3,158 | 0 | -3,537 | 0 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | -5,039 | 0 | -5,710 | 0 |
Net Income (Loss) Attributable to Parent | ' | 0 | ' | 0 |
Net Income (Loss) Attributable to Noncontrolling Interest | ' | 0 | ' | 0 |
j2 Cloud Services, Inc. [Member] | ' | ' | ' | ' |
Total revenues | 52,960 | 70,126 | 169,467 | 199,696 |
Cost of revenues | -3,275 | 21,378 | 35,729 | 63,286 |
Gross Profit | 56,235 | 48,748 | 133,738 | 136,410 |
Selling and Marketing Expense | 9,168 | 10,577 | 27,148 | 31,849 |
Research and Development Expense | 3,320 | 3,323 | 10,411 | 9,375 |
General and Administrative Expense | 6,789 | 9,238 | 24,004 | 27,693 |
Operating Expenses | 19,277 | 23,138 | 61,563 | 68,917 |
Income (loss) from operations | 36,958 | 25,610 | 72,175 | 67,493 |
Interest expense (income), net | 5,116 | 2,263 | 15,314 | 7,496 |
Other expense (income), net | 78 | -67 | 6 | -166 |
Income (loss) before income taxes | 31,764 | 23,414 | 56,855 | 60,163 |
Income Tax Expense (Benefit) | 3,458 | 3,101 | 4,783 | 17,478 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 28,306 | 20,313 | 52,072 | 42,685 |
Net Income (Loss) Attributable to Parent | ' | 20,313 | ' | 42,685 |
Net Income (Loss) Attributable to Noncontrolling Interest | ' | 0 | ' | 0 |
Non-Guarantor Subsidiaries [Member] | ' | ' | ' | ' |
Total revenues | 90,854 | 71,865 | 293,530 | 228,681 |
Cost of revenues | 22,060 | 14,501 | 72,191 | 46,701 |
Gross Profit | 68,794 | 57,364 | 221,339 | 181,980 |
Selling and Marketing Expense | 27,934 | 24,335 | 78,369 | 68,128 |
Research and Development Expense | 4,317 | 2,677 | 12,040 | 9,759 |
General and Administrative Expense | 23,960 | 16,654 | 66,742 | 46,684 |
Operating Expenses | 56,211 | 43,666 | 157,151 | 124,571 |
Income (loss) from operations | 12,583 | 13,698 | 64,188 | 57,409 |
Interest expense (income), net | -129 | 2,709 | -347 | 7,213 |
Other expense (income), net | 175 | -329 | -258 | -434 |
Income (loss) before income taxes | 12,537 | 11,318 | 64,793 | 50,630 |
Income Tax Expense (Benefit) | 7,045 | 4,004 | 18,582 | 6,950 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 5,492 | 7,314 | 46,211 | 43,680 |
Net Income (Loss) Attributable to Parent | ' | 7,314 | ' | 43,680 |
Net Income (Loss) Attributable to Noncontrolling Interest | ' | 0 | ' | 0 |
Consolidation, Eliminations [Member] | ' | ' | ' | ' |
Total revenues | 9,204 | -14,203 | -31,111 | -45,611 |
Cost of revenues | 9,259 | -14,078 | -30,929 | -45,272 |
Gross Profit | -55 | -125 | -182 | -339 |
Selling and Marketing Expense | -55 | -125 | -182 | -339 |
Research and Development Expense | 0 | 0 | 0 | 0 |
General and Administrative Expense | 0 | 0 | 0 | 0 |
Operating Expenses | -55 | -125 | -182 | -339 |
Income (loss) from operations | 0 | 0 | 0 | 0 |
Interest expense (income), net | 0 | 0 | 0 | 0 |
Other expense (income), net | 0 | 0 | 0 | 0 |
Income (loss) before income taxes | 0 | 0 | 0 | 0 |
Income Tax Expense (Benefit) | 0 | 0 | 0 | 0 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 0 | 0 | 0 | 0 |
Net Income (Loss) Attributable to Parent | ' | 179 | ' | 403 |
Net Income (Loss) Attributable to Noncontrolling Interest | ' | ($179) | ' | ($403) |
Condensed_Consolidating_Financ4
Condensed Consolidating Financials Condensed Comprehensive Income Statement (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Other Comprehensive (Income) Loss, Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Noncontrolling Interest | $0 | ($13) | $0 | ($35) |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 28,759 | 27,627 | 92,573 | 86,365 |
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | -179 | 0 | -403 |
Foreign currency translation adjustment, net of tax (benefit) | -6,977 | 1,590 | -4,806 | -526 |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | -3,006 | 4,259 | -2,761 | 9,260 |
Other Comprehensive Income (Loss), Net of Tax | -9,983 | 5,849 | -7,567 | 8,734 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 18,776 | 33,476 | 85,006 | 95,099 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 18,776 | 33,668 | 85,006 | 95,537 |
j2 Global, Inc. [Member] | ' | ' | ' | ' |
Other Comprehensive (Income) Loss, Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Noncontrolling Interest | ' | 0 | ' | 0 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | -5,039 | 0 | -5,710 | 0 |
Net Income (Loss) Attributable to Noncontrolling Interest | ' | 0 | ' | 0 |
Foreign currency translation adjustment, net of tax (benefit) | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | 64 | 0 | 64 | 0 |
Other Comprehensive Income (Loss), Net of Tax | 64 | 0 | 64 | 0 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | ' | 0 | ' | 0 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | -4,975 | 0 | -5,646 | 0 |
j2 Cloud Services, Inc. [Member] | ' | ' | ' | ' |
Other Comprehensive (Income) Loss, Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Noncontrolling Interest | ' | 0 | ' | 0 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 28,306 | 20,313 | 52,072 | 42,685 |
Net Income (Loss) Attributable to Noncontrolling Interest | ' | 0 | ' | 0 |
Foreign currency translation adjustment, net of tax (benefit) | 2,300 | -586 | 1,644 | -159 |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | -3,068 | 4,247 | -2,834 | 5,767 |
Other Comprehensive Income (Loss), Net of Tax | -768 | 3,661 | -1,190 | 5,608 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | ' | 23,974 | ' | 48,293 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 27,538 | 23,974 | 50,882 | 48,293 |
Non-Guarantor Subsidiaries [Member] | ' | ' | ' | ' |
Other Comprehensive (Income) Loss, Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Noncontrolling Interest | ' | -13 | ' | -35 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 5,492 | 7,314 | 46,211 | 43,680 |
Net Income (Loss) Attributable to Noncontrolling Interest | ' | 0 | ' | 0 |
Foreign currency translation adjustment, net of tax (benefit) | -9,277 | 2,176 | -6,450 | -367 |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | -2 | 12 | 9 | 3,493 |
Other Comprehensive Income (Loss), Net of Tax | -9,279 | 2,188 | -6,441 | 3,126 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | ' | 9,502 | ' | 46,806 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | -3,787 | 9,515 | 39,770 | 46,841 |
Consolidation, Eliminations [Member] | ' | ' | ' | ' |
Other Comprehensive (Income) Loss, Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Noncontrolling Interest | ' | 0 | ' | 0 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 0 | 0 | 0 | 0 |
Net Income (Loss) Attributable to Noncontrolling Interest | ' | -179 | ' | -403 |
Foreign currency translation adjustment, net of tax (benefit) | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | 0 | 0 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | ' | 0 | ' | 0 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $0 | $179 | $0 | $403 |
Condensed_Consolidating_Financ5
Condensed Consolidating Financials Condensed Statement of Cash Flows (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $92,573,000 | $86,365,000 |
Depreciation and amortization | 43,307,000 | 28,424,000 |
Accretion (Amortization) of Discounts and Premiums, Investments | 983,000 | 1,323,000 |
Amortization of financing costs and discounts | 2,828,000 | 456,000 |
Share-based Compensation | 6,538,000 | 7,108,000 |
Excess Tax Benefit from Share-based Compensation, Operating Activities | -6,728,000 | -3,171,000 |
Provision for doubtful accounts | 3,278,000 | 2,565,000 |
Deferred income taxes | -2,954,000 | 472,000 |
(Gain) loss on sale of available-for-sale investments | -69,000 | 103,000 |
Increase (Decrease) in Accounts Receivable | 1,267,000 | -7,495,000 |
Increase (Decrease) in Prepaid Expense and Other Assets | -4,124,000 | 945,000 |
Increase (Decrease) in Other Operating Assets | -128,000 | 182,000 |
Accounts payable and accrued expenses | -2,949,000 | 4,035,000 |
Income taxes payable | 7,565,000 | -3,286,000 |
Deferred revenue | -815,000 | 13,049,000 |
Liability for uncertain tax positions | -8,071,000 | 3,867,000 |
Other | -380,000 | -62,000 |
Net Cash Provided by (Used in) Operating Activities | 132,121,000 | 134,880,000 |
Maturity of certificates of deposit | 14,520,000 | 42,615,000 |
Payments to Acquire Other Investments | 0 | -22,071,000 |
Sales of available-for-sale investments | 60,456,000 | 82,889,000 |
Payments to Acquire Available-for-sale Securities | -112,983,000 | -139,955,000 |
Payments to Acquire Property, Plant, and Equipment | -7,755,000 | -11,116,000 |
Proceeds from sale of assets | 608,000 | 1,000 |
Payments to Acquire Businesses, Net of Cash Acquired | -118,238,000 | -81,566,000 |
Payments to Acquire Intangible Assets | -4,806,000 | -2,784,000 |
Payments to Acquire Interest in Subsidiaries and Affiliates | 0 | 0 |
Payments for (Proceeds from) Other Investing Activities | ' | 0 |
Net Cash Provided by (Used in) Investing Activities | -168,198,000 | -131,987,000 |
Proceeds from Issuance of Long-term Debt | 402,500,000 | 0 |
Debt issuance costs | -11,527,000 | -47,000 |
Payments for Repurchase of Common Stock | -5,473,000 | -4,513,000 |
Issuance of common stock under employee stock purchase plan | 199,000 | 161,000 |
Exercise of stock options | 6,441,000 | 13,515,000 |
Payments of Dividends | -38,547,000 | -33,267,000 |
Excess tax benefits from share-based compensation | 6,728,000 | 3,171,000 |
Deferred payments for acquisitions | -14,316,000 | 0 |
Proceeds from (Payments for) Other Financing Activities | -765,000 | -171,000 |
Payments of Distributions to Affiliates | 0 | 0 |
Net Cash Provided by (Used in) Financing Activities | 345,240,000 | -21,151,000 |
Effect of exchange rate changes on cash and cash equivalents | -1,967,000 | -1,241,000 |
Cash and Cash Equivalents, Period Increase (Decrease) | 307,196,000 | -19,499,000 |
Cash and cash equivalents | 514,997,000 | ' |
j2 Global, Inc. [Member] | ' | ' |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | -5,710,000 | 0 |
Depreciation and amortization | 0 | 0 |
Accretion (Amortization) of Discounts and Premiums, Investments | 142,000 | 0 |
Amortization of financing costs and discounts | 2,266,000 | 0 |
Share-based Compensation | 2,191,000 | 0 |
Excess Tax Benefit from Share-based Compensation, Operating Activities | -1,925,000 | 0 |
Provision for doubtful accounts | 0 | 0 |
Deferred income taxes | 4,614,000 | 0 |
(Gain) loss on sale of available-for-sale investments | -2,000 | ' |
Increase (Decrease) in Accounts Receivable | 0 | 0 |
Increase (Decrease) in Prepaid Expense and Other Assets | -1,075,000 | 0 |
Increase (Decrease) in Other Operating Assets | -896,000 | 0 |
Accounts payable and accrued expenses | 9,915,000 | 0 |
Income taxes payable | 1,734,000 | 0 |
Deferred revenue | 0 | 0 |
Liability for uncertain tax positions | 0 | 0 |
Other | 0 | 0 |
Net Cash Provided by (Used in) Operating Activities | 11,254,000 | 0 |
Maturity of certificates of deposit | 0 | 0 |
Payments to Acquire Other Investments | 0 | 0 |
Sales of available-for-sale investments | 2,005,000 | 0 |
Payments to Acquire Available-for-sale Securities | -58,591,000 | 0 |
Payments to Acquire Property, Plant, and Equipment | 0 | 0 |
Proceeds from sale of assets | 0 | 0 |
Payments to Acquire Businesses, Net of Cash Acquired | 0 | 0 |
Payments to Acquire Intangible Assets | 0 | 0 |
Payments to Acquire Interest in Subsidiaries and Affiliates | 0 | 0 |
Payments for (Proceeds from) Other Investing Activities | ' | 0 |
Net Cash Provided by (Used in) Investing Activities | -56,586,000 | 0 |
Proceeds from Issuance of Long-term Debt | 402,500,000 | ' |
Debt issuance costs | -12,069,000 | 0 |
Payments for Repurchase of Common Stock | -739,000 | 0 |
Issuance of common stock under employee stock purchase plan | 76,000 | 0 |
Exercise of stock options | 1,193,000 | 0 |
Payments of Dividends | -13,267,000 | 0 |
Excess tax benefits from share-based compensation | 1,925,000 | 0 |
Deferred payments for acquisitions | 0 | ' |
Proceeds from (Payments for) Other Financing Activities | 0 | 0 |
Payments of Distributions to Affiliates | -20,620,000 | 0 |
Net Cash Provided by (Used in) Financing Activities | 358,999,000 | 0 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Cash and Cash Equivalents, Period Increase (Decrease) | 313,667,000 | 0 |
Cash and cash equivalents | 313,667,000 | ' |
j2 Cloud Services, Inc. [Member] | ' | ' |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 52,072,000 | 42,685,000 |
Depreciation and amortization | 4,950,000 | 6,659,000 |
Accretion (Amortization) of Discounts and Premiums, Investments | 677,000 | 948,000 |
Amortization of financing costs and discounts | 562,000 | 456,000 |
Share-based Compensation | 4,514,000 | 7,108,000 |
Excess Tax Benefit from Share-based Compensation, Operating Activities | -4,802,000 | -3,171,000 |
Provision for doubtful accounts | 1,395,000 | 1,016,000 |
Deferred income taxes | -2,657,000 | 451,000 |
(Gain) loss on sale of available-for-sale investments | -18,000 | ' |
Increase (Decrease) in Accounts Receivable | -1,894,000 | -1,514,000 |
Increase (Decrease) in Prepaid Expense and Other Assets | -2,197,000 | 1,227,000 |
Increase (Decrease) in Other Operating Assets | -83,000 | -7,000 |
Accounts payable and accrued expenses | -4,119,000 | -9,583,000 |
Income taxes payable | 2,822,000 | -1,235,000 |
Deferred revenue | -942,000 | 14,331,000 |
Liability for uncertain tax positions | -8,069,000 | 3,865,000 |
Other | -108,000 | -44,000 |
Net Cash Provided by (Used in) Operating Activities | 42,103,000 | 63,192,000 |
Maturity of certificates of deposit | 8,210,000 | 30,270,000 |
Payments to Acquire Other Investments | 0 | -16,375,000 |
Sales of available-for-sale investments | 46,863,000 | 72,384,000 |
Payments to Acquire Available-for-sale Securities | -54,393,000 | -119,049,000 |
Payments to Acquire Property, Plant, and Equipment | -925,000 | -4,134,000 |
Proceeds from sale of assets | 0 | 1,000 |
Payments to Acquire Businesses, Net of Cash Acquired | 0 | -2,305,000 |
Payments to Acquire Intangible Assets | -2,871,000 | -1,828,000 |
Payments to Acquire Interest in Subsidiaries and Affiliates | -23,822,000 | -12,498,000 |
Payments for (Proceeds from) Other Investing Activities | ' | 3,281,000 |
Net Cash Provided by (Used in) Investing Activities | -26,938,000 | -50,253,000 |
Proceeds from Issuance of Long-term Debt | 0 | ' |
Debt issuance costs | 0 | -47,000 |
Payments for Repurchase of Common Stock | -4,733,000 | -4,514,000 |
Issuance of common stock under employee stock purchase plan | 123,000 | 161,000 |
Exercise of stock options | 5,248,000 | 13,515,000 |
Payments of Dividends | -25,302,000 | -33,267,000 |
Excess tax benefits from share-based compensation | 4,803,000 | 3,171,000 |
Deferred payments for acquisitions | 0 | ' |
Proceeds from (Payments for) Other Financing Activities | -54,000 | 0 |
Payments of Distributions to Affiliates | -14,861,000 | -18,120,000 |
Net Cash Provided by (Used in) Financing Activities | -34,776,000 | -39,101,000 |
Effect of exchange rate changes on cash and cash equivalents | 4,000 | -23,000 |
Cash and Cash Equivalents, Period Increase (Decrease) | -19,607,000 | -26,185,000 |
Cash and cash equivalents | 14,799,000 | ' |
Non-Guarantor Subsidiaries [Member] | ' | ' |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 46,211,000 | 43,680,000 |
Depreciation and amortization | 38,357,000 | 21,765,000 |
Accretion (Amortization) of Discounts and Premiums, Investments | 164,000 | 375,000 |
Amortization of financing costs and discounts | 0 | 0 |
Share-based Compensation | -167,000 | 0 |
Excess Tax Benefit from Share-based Compensation, Operating Activities | -1,000 | 0 |
Provision for doubtful accounts | 1,883,000 | 1,549,000 |
Deferred income taxes | -4,911,000 | 21,000 |
(Gain) loss on sale of available-for-sale investments | -49,000 | ' |
Increase (Decrease) in Accounts Receivable | 3,161,000 | -5,981,000 |
Increase (Decrease) in Prepaid Expense and Other Assets | -852,000 | -282,000 |
Increase (Decrease) in Other Operating Assets | 851,000 | 189,000 |
Accounts payable and accrued expenses | -8,745,000 | 13,618,000 |
Income taxes payable | 3,009,000 | -2,051,000 |
Deferred revenue | 127,000 | -1,282,000 |
Liability for uncertain tax positions | -2,000 | 2,000 |
Other | -272,000 | -18,000 |
Net Cash Provided by (Used in) Operating Activities | 78,764,000 | 71,688,000 |
Maturity of certificates of deposit | 6,310,000 | 12,345,000 |
Payments to Acquire Other Investments | 0 | -5,696,000 |
Sales of available-for-sale investments | 11,588,000 | 10,505,000 |
Payments to Acquire Available-for-sale Securities | 1,000 | -20,906,000 |
Payments to Acquire Property, Plant, and Equipment | -6,830,000 | -6,982,000 |
Proceeds from sale of assets | 608,000 | 0 |
Payments to Acquire Businesses, Net of Cash Acquired | -118,238,000 | -79,261,000 |
Payments to Acquire Intangible Assets | -1,935,000 | -956,000 |
Payments to Acquire Interest in Subsidiaries and Affiliates | 0 | 0 |
Payments for (Proceeds from) Other Investing Activities | ' | -3,281,000 |
Net Cash Provided by (Used in) Investing Activities | -108,496,000 | -94,232,000 |
Proceeds from Issuance of Long-term Debt | 0 | ' |
Debt issuance costs | 542,000 | 0 |
Payments for Repurchase of Common Stock | -1,000 | 1,000 |
Issuance of common stock under employee stock purchase plan | 0 | 0 |
Exercise of stock options | 0 | 0 |
Payments of Dividends | 22,000 | 0 |
Excess tax benefits from share-based compensation | 0 | 0 |
Deferred payments for acquisitions | -14,316,000 | ' |
Proceeds from (Payments for) Other Financing Activities | -711,000 | -171,000 |
Payments of Distributions to Affiliates | 59,303,000 | 30,618,000 |
Net Cash Provided by (Used in) Financing Activities | 44,839,000 | 30,448,000 |
Effect of exchange rate changes on cash and cash equivalents | -1,971,000 | -1,218,000 |
Cash and Cash Equivalents, Period Increase (Decrease) | 13,136,000 | 6,686,000 |
Cash and cash equivalents | 186,531,000 | ' |
Consolidation, Eliminations [Member] | ' | ' |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 0 | 0 |
Depreciation and amortization | 0 | 0 |
Accretion (Amortization) of Discounts and Premiums, Investments | 0 | 0 |
Amortization of financing costs and discounts | 0 | 0 |
Share-based Compensation | 0 | 0 |
Excess Tax Benefit from Share-based Compensation, Operating Activities | 0 | 0 |
Provision for doubtful accounts | 0 | 0 |
Deferred income taxes | 0 | 0 |
(Gain) loss on sale of available-for-sale investments | 0 | ' |
Increase (Decrease) in Accounts Receivable | 0 | 0 |
Increase (Decrease) in Prepaid Expense and Other Assets | 0 | 0 |
Increase (Decrease) in Other Operating Assets | 0 | 0 |
Accounts payable and accrued expenses | 0 | 0 |
Income taxes payable | 0 | 0 |
Deferred revenue | 0 | 0 |
Liability for uncertain tax positions | 0 | 0 |
Other | 0 | 0 |
Net Cash Provided by (Used in) Operating Activities | 0 | 0 |
Maturity of certificates of deposit | 0 | 0 |
Payments to Acquire Other Investments | 0 | 0 |
Sales of available-for-sale investments | 0 | 0 |
Payments to Acquire Available-for-sale Securities | 0 | 0 |
Payments to Acquire Property, Plant, and Equipment | 0 | 0 |
Proceeds from sale of assets | 0 | 0 |
Payments to Acquire Businesses, Net of Cash Acquired | 0 | 0 |
Payments to Acquire Intangible Assets | 0 | 0 |
Payments to Acquire Interest in Subsidiaries and Affiliates | 23,822,000 | 12,498,000 |
Payments for (Proceeds from) Other Investing Activities | ' | 0 |
Net Cash Provided by (Used in) Investing Activities | 23,822,000 | 12,498,000 |
Proceeds from Issuance of Long-term Debt | 0 | ' |
Debt issuance costs | 0 | 0 |
Payments for Repurchase of Common Stock | 0 | 0 |
Issuance of common stock under employee stock purchase plan | 0 | 0 |
Exercise of stock options | 0 | 0 |
Payments of Dividends | 0 | 0 |
Excess tax benefits from share-based compensation | 0 | 0 |
Deferred payments for acquisitions | 0 | ' |
Proceeds from (Payments for) Other Financing Activities | 0 | 0 |
Payments of Distributions to Affiliates | -23,822,000 | -12,498,000 |
Net Cash Provided by (Used in) Financing Activities | -23,822,000 | -12,498,000 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Cash and Cash Equivalents, Period Increase (Decrease) | 0 | 0 |
Cash and cash equivalents | $0 | ' |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 0 Months Ended | |||
Oct. 30, 2014 | Aug. 05, 2014 | 7-May-14 | Feb. 12, 2014 | |
Subsequent Events [Abstract] | ' | ' | ' | ' |
Dividends declared date | 30-Oct-14 | 5-Aug-14 | 7-May-14 | 11-Feb-14 |
Dividend amount to be paid, per common share | $0.28 | $0.28 | $0.27 | $0.26 |
Date dividend is payable | 4-Dec-14 | 2-Sep-14 | 3-Jun-14 | 10-Mar-14 |
Date shareholders must be on record for dividend | 17-Nov-14 | 18-Aug-14 | 19-May-14 | 24-Feb-14 |