Condensed Consolidating Financials (Tables) | 12 Months Ended |
Dec. 31, 2014 |
Condensed Consolidating Financials [Abstract] | |
Condensed Financial Statements [Text Block] | Consolidating Financial Statements |
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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 Senior Notes 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. 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. AND SUBSIDIARIES |
CONSOLIDATED BALANCE SHEET |
31-Dec-14 |
(In thousands except share and per share data) |
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| | | | | | | | | | | | | | | | | | | |
BALANCE SHEET | j2 Global, Inc. | | j2 Cloud Services, Inc. | | Non-guarantor Subsidiaries | | Consolidating Adjustments | | j2 Global Consolidated |
ASSETS | | | | | | | | | |
Cash and cash equivalents | 226,790 | | | 36,810 | | | 170,063 | | | — | | | 433,663 | |
|
Short-term investments | 47,880 | | | 48,261 | | | 65 | | | — | | | 96,206 | |
|
Accounts receivable, net | — | | | 11,167 | | | 80,532 | | | — | | | 91,699 | |
|
Prepaid expenses and other current assets | 776 | | | 12,689 | | | 9,137 | | | — | | | 22,602 | |
|
Deferred income taxes | 1,271 | | | — | | | 742 | | | — | | | 2,013 | |
|
Intercompany receivable | 110,000 | | | 74,938 | | | 1,428 | | | (186,366 | ) | | — | |
|
Total current assets | 386,717 | | | 183,865 | | | 261,967 | | | (186,366 | ) | | 646,183 | |
|
Long-term investments | 55,452 | | | 5,056 | | | — | | | — | | | 60,508 | |
|
Property and equipment, net | — | | | 8,011 | | | 30,206 | | | — | | | 38,217 | |
|
Trade names, net | — | | | 10,231 | | | 95,320 | | | — | | | 105,551 | |
|
Patent and patent licenses, net | — | | | 886 | | | 24,041 | | | — | | | 24,927 | |
|
Customer relationships, net | — | | | 2,206 | | | 161,560 | | | — | | | 163,766 | |
|
Goodwill | — | | | 52,131 | | | 583,544 | | | — | | | 635,675 | |
|
Other purchased intangibles, net | — | | | 4,276 | | | 13,280 | | | — | | | 17,556 | |
|
Investment in subsidiaries | 826,289 | | | 900,681 | | | 8,716 | | | (1,735,686 | ) | | — | |
|
Other assets | 9,328 | | | 1,368 | | | 2,123 | | | — | | | 12,819 | |
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Total assets | $ | 1,277,786 | | | $ | 1,168,711 | | | $ | 1,180,757 | | | $ | (1,922,052 | ) | | $ | 1,705,202 | |
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LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | |
Accounts payable and accrued expenses | 2,834 | | | 28,414 | | | 64,062 | | | — | | | 95,310 | |
|
Deferred revenue | — | | | 23,091 | | | 40,366 | | | — | | | 63,457 | |
|
Deferred income taxes | — | | | — | | | 342 | | | — | | | 342 | |
|
Capital lease, current | — | | | — | | | 258 | | | — | | | 258 | |
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Intercompany payable | 76,366 | | | — | | | 110,000 | | | (186,366 | ) | | — | |
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Total current liabilities | 79,200 | | | 51,505 | | | 215,028 | | | (186,366 | ) | | 159,367 | |
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| | | | | | | | | | | | | | | | | | | |
Long-term debt | 347,163 | | | 246,187 | | | — | | | — | | | 593,350 | |
|
Capital lease, non-current | — | | | — | | | 141 | | | — | | | 141 | |
|
Liability for uncertain tax positions | — | | | 37,551 | | | — | | | — | | | 37,551 | |
|
Deferred income taxes | 21,728 | | | (1,837 | ) | | 42,069 | | | — | | | 61,960 | |
|
Deferred revenue, non-current | — | | | 8,187 | | | 1,995 | | | — | | | 10,182 | |
|
Other long-term liabilities | 744 | | | 829 | | | 20,843 | | | — | | | 22,416 | |
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Total liabilities | 448,835 | | | 342,422 | | | 280,076 | | | (186,366 | ) | | 884,967 | |
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Common stock, $0.01 par value | 474 | | | — | | | — | | | — | | | 474 | |
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Additional paid-in capital | 273,304 | | | 232,340 | | | 421,676 | | | (654,016 | ) | | 273,304 | |
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Retained earnings | 555,158 | | | 584,591 | | | 495,505 | | | (1,081,670 | ) | | 553,584 | |
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Accumulated other comprehensive income (loss) | 15 | | | 9,358 | | | (16,500 | ) | | — | | | (7,127 | ) |
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Total stockholders’ equity | 828,951 | | | 826,289 | | | 900,681 | | | (1,735,686 | ) | | 820,235 | |
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Total liabilities and stockholders’ equity | $ | 1,277,786 | | | $ | 1,168,711 | | | $ | 1,180,757 | | | $ | (1,922,052 | ) | | $ | 1,705,202 | |
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j2 GLOBAL, INC. AND SUBSIDIARIES |
CONSOLIDATED BALANCE SHEET |
31-Dec-13 |
(In thousands except share and per share data) |
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| | | | | | | | | | | | | | | | | | | |
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 | |
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Goodwill | — | | | 86,025 | | | 371,397 | | | — | | | 457,422 | |
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Other purchased intangibles, net | — | | | 5,306 | | | 5,609 | | | — | | | 10,915 | |
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Investment in subsidiaries | — | | | 741,843 | | | — | | | (741,843 | ) | | — | |
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Deferred income taxes | — | | | 202 | | | 1,643 | | | — | | | 1,845 | |
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Other assets | — | | | 1,578 | | | 1,835 | | | — | | | 3,413 | |
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Total assets | $ | — | | | $ | 1,061,778 | | | $ | 838,287 | | | $ | (746,276 | ) | | $ | 1,153,789 | |
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LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | |
Accounts payable and accrued expenses | — | | | 29,419 | | | 40,151 | | | — | | | 69,570 | |
|
Income taxes payable | — | | | — | | | 1,569 | | | — | | | 1,569 | |
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Deferred revenue | — | | | 23,762 | | | 12,564 | | | — | | | 36,326 | |
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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, non-current | — | | | 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 | — | | | 216,872 | | | 326,983 | | | (326,983 | ) | | 216,872 | |
|
Retained earnings | — | | | 482,540 | | | 417,136 | | | (414,826 | ) | | 484,850 | |
|
Accumulated other comprehensive loss | — | | | 6,545 | | | (2,310 | ) | | — | | | 4,235 | |
|
Total stockholders’ equity | — | | | 706,418 | | | 741,843 | | | (741,843 | ) | | 706,418 | |
|
Total liabilities and stockholders’ equity | $ | — | | | $ | 1,061,778 | | | $ | 838,287 | | | $ | (746,276 | ) | | $ | 1,153,789 | |
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j2 GLOBAL, INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENT OF INCOME |
Year Ended December 31, 2014 |
(In thousands, except share and per share data) |
|
|
| | | | | | | | | | | | | | | | | | | |
| j2 Global, Inc. | | j2 Cloud Services, Inc | | Non-guarantor Subsidiaries | | Consolidating Adjustments | | j2 Global Consolidated |
Revenues: | | | | | | | | | |
Total revenues | $ | — | | | $ | 227,860 | | | $ | 412,217 | | | $ | (41,047 | ) | | $ | 599,030 | |
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| | | | | | | | | |
Cost of revenues | — | | | 51,391 | | | 95,386 | | | (40,788 | ) | | 105,989 | |
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Gross profit | — | | | 176,469 | | | 316,831 | | | (259 | ) | | 493,041 | |
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Operating expenses: | | | | | | | | | |
Sales and marketing | — | | | 36,414 | | | 105,812 | | | (259 | ) | | 141,967 | |
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Research, development and engineering | — | | | 14,055 | | | 16,625 | | | — | | | 30,680 | |
|
General and administrative | 6,401 | | | 30,300 | | | 97,487 | | | — | | | 134,188 | |
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Total operating expenses | 6,401 | | | 80,769 | | | 219,924 | | | (259 | ) | | 306,835 | |
|
Income from operations | (6,401 | ) | | 95,700 | | | 96,907 | | | — | | | 186,206 | |
|
Equity earnings in Subsidiaries | 135,838 | | | 77,051 | | | — | | | (212,889 | ) | | — | |
|
Interest expense (income), net | 10,442 | | | 20,478 | | | 284 | | | — | | | 31,204 | |
|
Other expense (income), net | (23 | ) | | 141 | | | (283 | ) | | — | | | (165 | ) |
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Income before income taxes | 119,018 | | | 152,132 | | | 96,906 | | | (212,889 | ) | | 155,167 | |
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Income tax expense | (6,309 | ) | | 16,294 | | | 19,855 | | | — | | | 29,840 | |
|
Net income | 125,327 | | | 135,838 | | | 77,051 | | | (212,889 | ) | | 125,327 | |
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Less net loss attributable to noncontrolling interest | — | | | — | | | — | | | — | | | — | |
|
Less extinguishment of Series A preferred stock | (991 | ) | | — | | | — | | | — | | | (991 | ) |
|
Net income attributable to j2 Global, Inc. common shareholders | $ | 124,336 | | | $ | 135,838 | | | $ | 77,051 | | | $ | (212,889 | ) | | $ | 124,336 | |
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j2 GLOBAL, INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENT OF INCOME |
Year Ended December 31, 2013 |
(In thousands, except share and per share data) |
|
|
| | | | | | | | | | | | | | | | | | | |
| j2 Global, Inc. | | j2 Cloud Services, Inc | | Non-guarantor Subsidiaries | | Consolidating Adjustments | | j2 Global Consolidated |
Revenues: | | | | | | | | | |
Total revenues | $ | — | | | $ | 255,413 | | | $ | 369,079 | | | $ | (103,691 | ) | | $ | 520,801 | |
|
| | | | | | | | | |
Cost of revenues | — | | | 84,655 | | | 105,480 | | | (103,242 | ) | | 86,893 | |
|
Gross profit | — | | | 170,758 | | | 263,599 | | | (449 | ) | | 433,908 | |
|
Operating expenses: | | | | | | | | | |
Sales and marketing | — | | | 41,555 | | | 90,211 | | | (449 | ) | | 131,317 | |
|
Research, development and engineering | — | | | 12,977 | | | 12,508 | | | — | | | 25,485 | |
|
General and administrative | — | | | 37,634 | | | 64,049 | | | — | | | 101,683 | |
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Total operating expenses | — | | | 92,166 | | | 166,768 | | | (449 | ) | | 258,485 | |
|
Income from operations | — | | | 78,592 | | | 96,831 | | | — | | | 175,423 | |
|
Equity earnings in Subsidiaries | — | | | 61,551 | | | — | | | (61,551 | ) | | — | |
|
Interest expense (income), net | — | | | 9,292 | | | 11,962 | | | — | | | 21,254 | |
|
Other expense (income), net | — | | | (369 | ) | | 11,841 | | | — | | | 11,472 | |
|
Income before income taxes | — | | | 131,220 | | | 73,028 | | | (61,551 | ) | | 142,697 | |
|
Income tax expense | — | | | 23,698 | | | 11,477 | | | — | | | 35,175 | |
|
Net income | — | | | 107,522 | | | 61,551 | | | (61,551 | ) | | 107,522 | |
|
Less net loss attributable to noncontrolling interest | — | | | — | | | — | | | — | | | — | |
|
Net income attributable to j2 Global, Inc. common shareholders | $ | — | | | $ | 107,522 | | | $ | 61,551 | | | $ | (61,551 | ) | | $ | 107,522 | |
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j2 GLOBAL, INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENT OF INCOME |
Year Ended December 31, 2012 |
(In thousands, except share and per share data) |
|
|
| | | | | | | | | | | | | | | | | | | |
| j2 Global, Inc. | | j2 Cloud Services, Inc | | Non-guarantor Subsidiaries | | Consolidating Adjustments | | j2 Global Consolidated |
Revenues: | | | | | | | | | |
Total revenues | $ | — | | | $ | 222,203 | | | $ | 206,045 | | | $ | (56,852 | ) | | $ | 371,396 | |
|
| | | | | | | | | |
Cost of revenues | — | | | 85,826 | | | 38,039 | | | (56,852 | ) | | 67,013 | |
|
Gross profit | — | | | 136,377 | | | 168,006 | | | — | | | 304,383 | |
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Operating expenses: | | | | | | | | | | |
|
Sales and marketing | — | | | 35,677 | | | 27,148 | | | — | | | 62,825 | |
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Research, development and engineering | — | | | 11,878 | | | 6,746 | | | — | | | 18,624 | |
|
General and administrative | — | | | 35,558 | | | 25,214 | | | — | | | 60,772 | |
|
Total operating expenses | — | | | 83,113 | | | 59,108 | | | — | | | 142,221 | |
|
Income from operations | — | | | 53,264 | | | 108,898 | | | — | | | 162,162 | |
|
Equity earnings in Subsidiaries | — | | | 91,539 | | | — | | | (91,539 | ) | | — | |
|
Interest expense (income), net | — | | | 3,911 | | | 3,739 | | | — | | | 7,650 | |
|
Other expense (income), net | — | | | (168 | ) | | (242 | ) | | — | | | (410 | ) |
|
Income before income taxes | — | | | 141,060 | | | 105,401 | | | (91,539 | ) | | 154,922 | |
|
Income tax expense | — | | | 19,480 | | | 13,779 | | | — | | | 33,259 | |
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Net income | — | | | 121,580 | | | 91,622 | | | (91,539 | ) | | 121,663 | |
|
Less net loss attributable to noncontrolling interest | — | | | — | | | 83 | | | — | | | 83 | |
|
Net income attributable to j2 Global, Inc. common shareholders | $ | — | | | $ | 121,580 | | | $ | 91,539 | | | $ | (91,539 | ) | | $ | 121,580 | |
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j2 GLOBAL, INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
Year Ended December 31, 2014 |
(In thousands) |
|
|
| | | | | | | | | | | | | | | | | | | |
| j2 Global, Inc. | | j2 Cloud Services, Inc. | | Non-guarantor Subsidiaries | | Consolidating Adjustments | | j2 Global Consolidated |
| | | | | | | | | |
Net income | $ | 125,327 | | | $ | 135,838 | | | $ | 77,051 | | | $ | (212,889 | ) | | $ | 125,327 | |
|
Other comprehensive income (loss), net of tax: | | | | | | | | | |
Foreign currency translation adjustment, net of tax expense (benefit) | — | | | (478 | ) | | (14,216 | ) | | — | | | (14,694 | ) |
|
Unrealized gain (loss) on available-for-sale investments, net of tax expense (benefit) | 15 | | | 3,307 | | | 10 | | | — | | | 3,332 | |
|
Other comprehensive income (loss), net of tax | 15 | | | 2,829 | | | (14,206 | ) | | — | | | (11,362 | ) |
|
Comprehensive income (loss) | $ | 125,342 | | | $ | 138,667 | | | $ | 62,845 | | | $ | (212,889 | ) | | $ | 113,965 | |
|
Net loss attributable to noncontrolling interest | — | | | — | | | — | | | — | | | — | |
|
Comprehensive income attributable to j2 Global, Inc. | $ | 125,342 | | | $ | 138,667 | | | $ | 62,845 | | | $ | (212,889 | ) | | $ | 113,965 | |
|
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j2 GLOBAL, INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
Year Ended December 31, 2013 |
(In thousands) |
|
|
| | | | | | | | | | | | | | | | | | | |
| j2 Global, Inc. | | j2 Cloud Services, Inc. | | Non-guarantor Subsidiaries | | Consolidating Adjustments | | j2 Global Consolidated |
| | | | | | | | | |
Net income | $ | — | | | $ | 107,522 | | | $ | 61,551 | | | $ | (61,551 | ) | | $ | 107,522 | |
|
Other comprehensive income (loss), net of tax: | | | | | | | | | |
Foreign currency translation adjustment, net of tax expense (benefit) | — | | | (43 | ) | | 121 | | | — | | | 78 | |
|
Unrealized gain (loss) on available-for-sale investments, net of tax expense (benefit) | — | | | 4,249 | | | (4 | ) | | — | | | 4,245 | |
|
Other comprehensive income, net of tax | — | | | 4,206 | | | 117 | | | — | | | 4,323 | |
|
Comprehensive income | $ | — | | | $ | 111,728 | | | $ | 61,668 | | | $ | (61,551 | ) | | $ | 111,845 | |
|
Net loss attributable to noncontrolling interest | — | | | — | | | — | | | — | | | — | |
|
Comprehensive income attributable to j2 Global, Inc. | $ | — | | | $ | 111,728 | | | $ | 61,668 | | | $ | (61,551 | ) | | $ | 111,845 | |
|
j2 GLOBAL, INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
Year Ended December 31, 2012 |
(In thousands) |
|
|
| | | | | | | | | | | | | | | | | | | |
| j2 Global, Inc. | | j2 Cloud Services, Inc. | | Non-guarantor Subsidiaries | | Consolidating Adjustments | | j2 Global Consolidated |
| | | | | | | | | |
Net income | $ | — | | | $ | 121,580 | | | $ | 91,622 | | | $ | (91,539 | ) | | $ | 121,663 | |
|
Other comprehensive income (loss), net of tax: | | | | | | | | | |
Foreign currency translation adjustment, net of tax expense (benefit) | — | | | 521 | | | 914 | | | — | | | 1,435 | |
|
Unrealized gain (loss) on available-for-sale investments, net of tax expense (benefit) | — | | | 1,960 | | | (6 | ) | | — | | | 1,954 | |
|
Other comprehensive income, net of tax | — | | | 2,481 | | | 908 | | | — | | | 3,389 | |
|
Comprehensive income | — | | | 124,061 | | | 92,530 | | | (91,539 | ) | | 125,052 | |
|
Net loss attributable to noncontrolling interest | — | | | — | | | 83 | | | — | | | 83 | |
|
Comprehensive income attributable to j2 Global, Inc. | $ | — | | | $ | 124,061 | | | $ | 92,447 | | | $ | (91,539 | ) | | $ | 124,969 | |
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j2 GLOBAL, INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENT OF CASH FLOWS |
Year Ended December 31, 2014 |
(In thousands) |
|
|
| | | | | | | | | | | | | | | | | | | |
| j2 Global, Inc. | | j2 Cloud Services, Inc. | | Non-guarantor Subsidiaries | | Consolidating Adjustments | | j2 Global Consolidated |
Cash flows from operating activities: | | | | | | | | | |
Net income | $ | 125,327 | | | $ | 135,838 | | | $ | 77,051 | | | $ | (212,889 | ) | | $ | 125,327 | |
|
Adjustments to reconcile net earnings to net cash provided by operating activities: | | | | | | | | | |
Depreciation and amortization | — | | | 6,047 | | | 56,906 | | | — | | | 62,953 | |
|
Accretion and amortization of discount and premium of investments | 392 | | | 722 | | | 220 | | | — | | | 1,334 | |
|
Amortization of financing costs and discounts | 4,297 | | | 748 | | | — | | | — | | | 5,045 | |
|
Share-based compensation | 2,353 | | | 5,325 | | | 1,230 | | | — | | | 8,908 | |
|
Excess tax benefits from share-based compensation | (86 | ) | | (4,803 | ) | | (623 | ) | | — | | | (5,512 | ) |
|
Provision for doubtful accounts | — | | | 2,114 | | | 2,588 | | | — | | | 4,702 | |
|
Equity earnings in subsidiaries | (135,838 | ) | | (77,051 | ) | | — | | | 212,889 | | | — | |
|
Deferred income taxes | (1,392 | ) | | (5,767 | ) | | (2,874 | ) | | — | | | (10,033 | ) |
|
(Gain) Loss on disposal of fixed assets | — | | | — | | | — | | | — | | | — | |
|
(Gain) loss on available-for-sale investment | 26 | | | (58 | ) | | (58 | ) | | | | (90 | ) |
|
Changes in assets and liabilities, net of effects of business combinations: | | | | | | | | | |
Decrease (increase) in: | | | | | | | | | |
Accounts receivable | — | | | (2,490 | ) | | (8,588 | ) | | — | | | (11,078 | ) |
|
Prepaid expenses and other current assets | (776 | ) | | (8,757 | ) | | 6,321 | | | — | | | (3,212 | ) |
|
Other assets | — | | | — | | | (42 | ) | | — | | | (42 | ) |
|
Increase (decrease) in: | | | | | | | | | |
Accounts payable and accrued expenses | 2,835 | | | (1,173 | ) | | (7,109 | ) | | — | | | (5,447 | ) |
|
Income taxes payable | 2,055 | | | 17,384 | | | (8,642 | ) | | — | | | 10,797 | |
|
Deferred revenue | — | | | (2,067 | ) | | 1,356 | | | — | | | (711 | ) |
|
|
| | | | | | | | | | | | | | | | | | | |
Liability for uncertain tax positions | — | | | (6,311 | ) | | (2 | ) | | — | | | (6,313 | ) |
|
Other long-term liabilities | 742 | | | (157 | ) | | 18 | | | — | | | 603 | |
|
Net cash (used in) provided by operating activities | (65 | ) | | 59,544 | | | 117,752 | | | — | | | 177,231 | |
|
Cash flows from investing activities: | | | | | | | | | | | |
|
Maturity of certificates of deposit | — | | | 8,210 | | | 6,310 | | | — | | | 14,520 | |
|
Purchase of certificates of deposit | — | | | — | | | (65 | ) | | — | | | (65 | ) |
|
Sales of available-for-sale investments | 40,211 | | | 53,563 | | | 16,589 | | | — | | | 110,363 | |
|
Purchase of available-for-sale investments | (81,061 | ) | | (57,391 | ) | | — | | | — | | | (138,452 | ) |
|
Purchases of property and equipment | — | | | (2,866 | ) | | (8,963 | ) | | — | | | (11,829 | ) |
|
Proceeds from sale of assets | — | | | 608 | | | — | | | — | | | 608 | |
|
Acquisition of businesses, net of cash received | — | | | (2,083 | ) | | (243,195 | ) | | — | | | (245,278 | ) |
|
Purchases of intangible assets | — | | | (2,949 | ) | | (2,387 | ) | | — | | | (5,336 | ) |
|
Investment in subsidiaries | — | | | (23,821 | ) | | — | | | 23,821 | | | — | |
|
Net cash (used in) provided by investing activities | (40,850 | ) | | (26,729 | ) | | (231,711 | ) | | 23,821 | | | (275,469 | ) |
|
Cash flows from financing activities: | | | | | | | | | |
Issuance of long-term debt | 402,500 | | | — | | | — | | | — | | | 402,500 | |
|
Debt issuance cost | (11,991 | ) | | — | | | — | | | — | | | (11,991 | ) |
|
Repurchases of common and restricted stock | (930 | ) | | (4,733 | ) | | — | | | — | | | (5,663 | ) |
|
Issuance of common stock under employee stock purchase plan | 142 | | | 123 | | | — | | | — | | | 265 | |
|
Exercise of stock options | 1,374 | | | 5,193 | | | 54 | | | — | | | 6,621 | |
|
Mandatorily redeemable preferred stock | — | | | — | | | — | | | — | | | — | |
|
Dividends paid | (26,967 | ) | | (25,302 | ) | | — | | | — | | | (52,269 | ) |
|
Excess tax benefits from share-based compensation | 86 | | | 4,803 | | | 623 | | | — | | | 5,512 | |
|
Deferred payments for acquisitions | — | | | — | | | (16,512 | ) | | — | | | (16,512 | ) |
|
Other | — | | | — | | | (933 | ) | | — | | | (933 | ) |
|
Intercompany | (96,509 | ) | | (10,495 | ) | | 130,825 | | | (23,821 | ) | | — | |
|
Net cash (used in) provided by financing activities | 267,705 | | | (30,411 | ) | | 114,057 | | | (23,821 | ) | | 327,530 | |
|
|
| | | | | | | | | | | | | | | | | | | |
Effect of exchange rate changes on cash and cash equivalents | — | | | — | | | (3,430 | ) | | — | | | (3,430 | ) |
|
Net change in cash and cash equivalents | 226,790 | | | 2,404 | | | (3,332 | ) | | — | | | 225,862 | |
|
Cash and cash equivalents at beginning of period | — | | | 34,406 | | | 173,395 | | | — | | | 207,801 | |
|
Cash and cash equivalents at end of period | $ | 226,790 | | | $ | 36,810 | | | $ | 170,063 | | | $ | — | | | $ | 433,663 | |
|
j2 GLOBAL, INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENT OF CASH FLOWS |
Year Ended December 31, 2013 |
(In thousands) |
|
|
| | | | | | | | | | | | | | | | | | | |
| j2 Global, Inc. | | j2 Cloud Services, Inc. | | Non-guarantor Subsidiaries | | Consolidating Adjustments | | j2 Global Consolidated |
Cash flows from operating activities: | | | | | | | | | |
Net income | $ | — | | | $ | 107,522 | | | $ | 61,551 | | | $ | (61,551 | ) | | $ | 107,522 | |
|
Adjustments to reconcile net earnings to net cash provided by operating activities: | | | | | | | | | |
Depreciation and amortization | — | | | 9,201 | | | 30,587 | | | — | | | 39,788 | |
|
Accretion and amortization of discount and premium of investments | — | | | 1,273 | | | 523 | | | — | | | 1,796 | |
|
Amortization of financing costs and discounts | — | | | 613 | | | — | | | — | | | 613 | |
|
Share-based compensation | — | | | 9,720 | | | — | | | — | | | 9,720 | |
|
Excess tax benefits from share-based compensation | — | | | (2,695 | ) | | — | | | — | | | (2,695 | ) |
|
Provision for doubtful accounts | — | | | 1,219 | | | 1,916 | | | — | | | 3,135 | |
|
Equity earnings in subsidiaries | — | | | (61,551 | ) | | — | | | 61,551 | | | — | |
|
Deferred income taxes | — | | | (495 | ) | | 745 | | | — | | | 250 | |
|
(Gain) Loss on disposal of fixed assets | — | | | — | | | 8 | | | — | | | 8 | |
|
(Gain) loss on available-for-sale investment | — | | | (51 | ) | | 117 | | | | | 66 | |
|
Loss on extinguishment of debt and related interest expense | — | | | — | | | 14,437 | | | — | | | 14,437 | |
|
Changes in assets and liabilities, net of effects of business combinations: | | | | | | | | | |
Decrease (increase) in: | | | | | | | | | |
Accounts receivable | — | | | (1,656 | ) | | (7,932 | ) | | — | | | (9,588 | ) |
|
Prepaid expenses and other current assets | — | | | 784 | | | (635 | ) | | — | | | 149 | |
|
Other assets | — | | | (57 | ) | | 225 | | | — | | | 168 | |
|
Increase (decrease) in: | | | | | | | | | |
Accounts payable and accrued expenses | — | | | (124 | ) | | 9,250 | | | — | | | 9,126 | |
|
Income taxes payable | — | | | (923 | ) | | 1,590 | | | — | | | 667 | |
|
|
| | | | | | | | | | | | | | | | | | | |
Deferred revenue | — | | | 13,415 | | | (1,047 | ) | | — | | | 12,368 | |
|
Liability for uncertain tax positions | — | | | 6,184 | | | 2 | | | — | | | 6,186 | |
|
Other long-term liabilities | — | | | (88 | ) | | (304 | ) | | — | | | (392 | ) |
|
Net cash provided by operating activities | — | | | 82,291 | | | 111,033 | | | — | | | 193,324 | |
|
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 | — | | | 124,745 | | | 15,381 | | | — | | | 140,126 | |
|
Purchase of available-for-sale investments | — | | | (149,748 | ) | | (19,153 | ) | | — | | | (168,901 | ) |
|
Purchases of property and equipment | — | | | (6,223 | ) | | (12,404 | ) | | — | | | (18,627 | ) |
|
Proceeds from sale of assets | — | | | 1 | | | — | | | — | | | 1 | |
|
Acquisition of businesses, net of cash received | — | | | (4,043 | ) | | (122,298 | ) | | — | | | (126,341 | ) |
|
Purchases of intangible assets | — | | | (3,034 | ) | | (11,166 | ) | | — | | | (14,200 | ) |
|
Investment in subsidiaries | — | | | (14,920 | ) | | — | | | 14,920 | | | — | |
|
Other | — | | | 3,281 | | | (3,281 | ) | | — | | | — | |
|
Net cash (used in) provided by investing activities | — | | | (36,046 | ) | | (146,272 | ) | | 14,920 | | | (167,398 | ) |
|
Cash flows from financing activities: | | | | | | | | | |
Issuance of long-term debt | — | | | — | | | — | | | — | | | — | |
|
Debt issuance costs | — | | | (47 | ) | | — | | | — | | | (47 | ) |
|
Repurchases of common stock and restricted stock | — | | | (4,587 | ) | | — | | | — | | | (4,587 | ) |
|
Issuance of common stock under employee stock purchase plan | — | | | 213 | | | — | | | — | | | 213 | |
|
Exercise of stock options | — | | | 13,604 | | | — | | | — | | | 13,604 | |
|
Mandatorily redeemable preferred stock | — | | | — | | | — | | | | | — | |
|
Dividends paid | — | | | (45,134 | ) | | — | | | — | | | (45,134 | ) |
|
Excess tax benefits from share-based compensation | — | | | 2,695 | | | — | | | — | | | 2,695 | |
|
Deferred payments for acquisitions | — | | | — | | | — | | | — | | | — | |
|
Other | — | | | — | | | (2,437 | ) | | — | | | (2,437 | ) |
|
Intercompany | — | | | (55,295 | ) | | 70,215 | | | (14,920 | ) | | — | |
|
Net cash (used in) provided by financing activities | — | | | (88,551 | ) | | 67,778 | | | (14,920 | ) | | (35,693 | ) |
|
|
| | | | | | | | | | | | | | | | | | | |
Effect of exchange rate changes on cash and cash equivalents | — | | | — | | | (1,112 | ) | | — | | | (1,112 | ) |
|
Net change in cash and cash equivalents | — | | | (42,306 | ) | | 31,427 | | | — | | | (10,879 | ) |
|
Cash and cash equivalents at beginning of period | — | | | 76,712 | | | 141,968 | | | — | | | 218,680 | |
|
Cash and cash equivalents at end of period | $ | — | | | $ | 34,406 | | | $ | 173,395 | | | $ | — | | | $ | 207,801 | |
|
j2 GLOBAL, INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENT OF CASH FLOWS |
Year Ended December 31, 2012 |
(In thousands) |
|
|
| | | | | | | | | | | | | | | | | | | |
| j2 Global, Inc. | | j2 Cloud Services, Inc. | | Non-guarantor Subsidiaries | | Consolidating Adjustments | | j2 Global Consolidated |
Cash flows from operating activities: | | | | | | | | | |
Net income | $ | — | | | $ | 121,580 | | | $ | 91,622 | | | $ | (91,539 | ) | | $ | 121,663 | |
|
Adjustments to reconcile net earnings to net cash provided by operating activities: | | | | | | | | | |
Depreciation and amortization | — | | | 8,590 | | | 13,574 | | | — | | | 22,164 | |
|
Accretion and amortization of discount and premium of investments | — | | | 1,461 | | | 142 | | | — | | | 1,603 | |
|
Amortization of financing costs and discounts | — | | | 249 | | | — | | | — | | | 249 | |
|
Share-based compensation | — | | | 9,132 | | | — | | | — | | | 9,132 | |
|
Excess tax benefits from share-based compensation | — | | | (961 | ) | | — | | | — | | | (961 | ) |
|
Provision for doubtful accounts | — | | | 293 | | | 3,996 | | | — | | | 4,289 | |
|
Equity earnings in subsidiaries | — | | | (91,539 | ) | | — | | | 91,539 | | | — | |
|
Deferred income taxes | — | | | 4,839 | | | (3,689 | ) | | — | | | 1,150 | |
|
(Gain) Loss on disposal of fixed assets | — | | | 54 | | | — | | | — | | | 54 | |
|
(Gain) loss on available-for-sale investment | — | | | (266 | ) | | — | | | | | (266 | ) |
|
Loss on extinguishment of debt and related interest expense | — | | | — | | | — | | | — | | | — | |
|
Changes in assets and liabilities, net of effects of business combinations: | | | | | | | | | |
Decrease (increase) in: | | | | | | | | | |
Accounts receivable | — | | | (822 | ) | | (4,595 | ) | | — | | | (5,417 | ) |
|
Prepaid expenses and other current assets | — | | | (1,265 | ) | | (763 | ) | | — | | | (2,028 | ) |
|
Other assets | — | | | 123 | | | (366 | ) | | | | (243 | ) |
|
Increase (decrease) in: | | | | | | | | | |
Accounts payable and accrued expenses | — | | | 10,599 | | | (5,461 | ) | | — | | | 5,138 | |
|
Income taxes payable | — | | | 2,193 | | | 1,946 | | | — | | | 4,139 | |
|
|
| | | | | | | | | | | | | | | | | | | |
Deferred revenue | — | | | 878 | | | 734 | | | — | | | 1,612 | |
|
Liability for uncertain tax positions | — | | | 7,601 | | | — | | | — | | | 7,601 | |
|
Other long-term liabilities | — | | | 99 | | | (67 | ) | | — | | | 32 | |
|
Net cash provided by operating activities | — | | | 72,838 | | | 97,073 | | | — | | | 169,911 | |
|
Cash flows from investing activities: | | | | | | | | | |
Maturity of certificates of deposit | — | | | 8,000 | | | — | | | — | | | 8,000 | |
|
Purchase of certificates of deposit | — | | | (22,106 | ) | | (12,567 | ) | | — | | | (34,673 | ) |
|
Sales of available-for-sale investments | — | | | 138,709 | | | — | | | — | | | 138,709 | |
|
Purchase of available-for-sale investments | — | | | (139,087 | ) | | (12,902 | ) | | — | | | (151,989 | ) |
|
Purchases of property and equipment | — | | | (2,677 | ) | | (2,384 | ) | | — | | | (5,061 | ) |
|
Proceeds from sale of assets | — | | | 136 | | | 20 | | | — | | | 156 | |
|
Acquisition of businesses, net of cash received | — | | | (1,811 | ) | | (196,530 | ) | | — | | | (198,341 | ) |
|
Purchases of intangible assets | — | | | (4,433 | ) | | (1,862 | ) | | — | | | (6,295 | ) |
|
Investment in subsidiaries | — | | | (171,562 | ) | | — | | | 171,562 | | | — | |
|
Other | — | | | — | | | — | | | — | | | — | |
|
Net cash (used in) provided by investing activities | — | | | (194,831 | ) | | (226,225 | ) | | 171,562 | | | (249,494 | ) |
|
Cash flows from financing activities: | | | | | | | | | |
Issuance of long-term debt | — | | | 245,000 | | | — | | | — | | | 245,000 | |
|
Debt issuance cost | — | | | (1,384 | ) | | — | | | — | | | (1,384 | ) |
|
Repurchases of common and restricted stock | — | | | (60,282 | ) | | — | | | — | | | (60,282 | ) |
|
Issuance of common stock under employee stock purchase plan | — | | | 157 | | | — | | | — | | | 157 | |
|
Exercise of stock options | — | | | 5,646 | | | — | | | | | 5,646 | |
|
Mandatorily redeemable preferred stock | — | | | — | | | 8,557 | | | — | | | 8,557 | |
|
Dividends paid | — | | | (40,263 | ) | | — | | | — | | | (40,263 | ) |
|
Excess tax benefits from share-based compensation | — | | | 961 | | | — | | | — | | | 961 | |
|
Deferred payments for acquisitions | — | | | — | | | — | | | — | | | — | |
|
Other | — | | | — | | | — | | | — | | | — | |
|
Intercompany | — | | | 3,746 | | | 167,816 | | | (171,562 | ) | | — | |
|
Net cash (used in) provided by financing activities | — | | | 153,581 | | | 176,373 | | | (171,562 | ) | | 158,392 | |
|
|
| | | | | | | | | | | | | | | | | | | |
Effect of exchange rate changes on cash and cash equivalents | — | | | — | | | 512 | | | — | | | 512 | |
|
Net change in cash and cash equivalents | — | | | 31,588 | | | 47,733 | | | — | | | 79,321 | |
|
Cash and cash equivalents at beginning of period | — | | | 45,124 | | | 94,235 | | | — | | | 139,359 | |
|
Cash and cash equivalents at end of period | $ | — | | | $ | 76,712 | | | $ | 141,968 | | | $ | — | | | $ | 218,680 | |
|
Condensed Balance Sheet [Table Text Block] | j2 GLOBAL, INC. AND SUBSIDIARIES |
CONSOLIDATED BALANCE SHEET |
31-Dec-14 |
(In thousands except share and per share data) |
|
|
| | | | | | | | | | | | | | | | | | | |
BALANCE SHEET | j2 Global, Inc. | | j2 Cloud Services, Inc. | | Non-guarantor Subsidiaries | | Consolidating Adjustments | | j2 Global Consolidated |
ASSETS | | | | | | | | | |
Cash and cash equivalents | 226,790 | | | 36,810 | | | 170,063 | | | — | | | 433,663 | |
|
Short-term investments | 47,880 | | | 48,261 | | | 65 | | | — | | | 96,206 | |
|
Accounts receivable, net | — | | | 11,167 | | | 80,532 | | | — | | | 91,699 | |
|
Prepaid expenses and other current assets | 776 | | | 12,689 | | | 9,137 | | | — | | | 22,602 | |
|
Deferred income taxes | 1,271 | | | — | | | 742 | | | — | | | 2,013 | |
|
Intercompany receivable | 110,000 | | | 74,938 | | | 1,428 | | | (186,366 | ) | | — | |
|
Total current assets | 386,717 | | | 183,865 | | | 261,967 | | | (186,366 | ) | | 646,183 | |
|
Long-term investments | 55,452 | | | 5,056 | | | — | | | — | | | 60,508 | |
|
Property and equipment, net | — | | | 8,011 | | | 30,206 | | | — | | | 38,217 | |
|
Trade names, net | — | | | 10,231 | | | 95,320 | | | — | | | 105,551 | |
|
Patent and patent licenses, net | — | | | 886 | | | 24,041 | | | — | | | 24,927 | |
|
Customer relationships, net | — | | | 2,206 | | | 161,560 | | | — | | | 163,766 | |
|
Goodwill | — | | | 52,131 | | | 583,544 | | | — | | | 635,675 | |
|
Other purchased intangibles, net | — | | | 4,276 | | | 13,280 | | | — | | | 17,556 | |
|
Investment in subsidiaries | 826,289 | | | 900,681 | | | 8,716 | | | (1,735,686 | ) | | — | |
|
Other assets | 9,328 | | | 1,368 | | | 2,123 | | | — | | | 12,819 | |
|
Total assets | $ | 1,277,786 | | | $ | 1,168,711 | | | $ | 1,180,757 | | | $ | (1,922,052 | ) | | $ | 1,705,202 | |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | |
Accounts payable and accrued expenses | 2,834 | | | 28,414 | | | 64,062 | | | — | | | 95,310 | |
|
Deferred revenue | — | | | 23,091 | | | 40,366 | | | — | | | 63,457 | |
|
Deferred income taxes | — | | | — | | | 342 | | | — | | | 342 | |
|
Capital lease, current | — | | | — | | | 258 | | | — | | | 258 | |
|
Intercompany payable | 76,366 | | | — | | | 110,000 | | | (186,366 | ) | | — | |
|
Total current liabilities | 79,200 | | | 51,505 | | | 215,028 | | | (186,366 | ) | | 159,367 | |
|
|
| | | | | | | | | | | | | | | | | | | |
Long-term debt | 347,163 | | | 246,187 | | | — | | | — | | | 593,350 | |
|
Capital lease, non-current | — | | | — | | | 141 | | | — | | | 141 | |
|
Liability for uncertain tax positions | — | | | 37,551 | | | — | | | — | | | 37,551 | |
|
Deferred income taxes | 21,728 | | | (1,837 | ) | | 42,069 | | | — | | | 61,960 | |
|
Deferred revenue, non-current | — | | | 8,187 | | | 1,995 | | | — | | | 10,182 | |
|
Other long-term liabilities | 744 | | | 829 | | | 20,843 | | | — | | | 22,416 | |
|
Total liabilities | 448,835 | | | 342,422 | | | 280,076 | | | (186,366 | ) | | 884,967 | |
|
Common stock, $0.01 par value | 474 | | | — | | | — | | | — | | | 474 | |
|
Additional paid-in capital | 273,304 | | | 232,340 | | | 421,676 | | | (654,016 | ) | | 273,304 | |
|
Retained earnings | 555,158 | | | 584,591 | | | 495,505 | | | (1,081,670 | ) | | 553,584 | |
|
Accumulated other comprehensive income (loss) | 15 | | | 9,358 | | | (16,500 | ) | | — | | | (7,127 | ) |
|
Total stockholders’ equity | 828,951 | | | 826,289 | | | 900,681 | | | (1,735,686 | ) | | 820,235 | |
|
Total liabilities and stockholders’ equity | $ | 1,277,786 | | | $ | 1,168,711 | | | $ | 1,180,757 | | | $ | (1,922,052 | ) | | $ | 1,705,202 | |
|
j2 GLOBAL, INC. AND SUBSIDIARIES |
CONSOLIDATED BALANCE SHEET |
31-Dec-13 |
(In thousands except share and per share data) |
|
|
| | | | | | | | | | | | | | | | | | | |
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 | — | | | 741,843 | | | — | | | (741,843 | ) | | — | |
|
Deferred income taxes | — | | | 202 | | | 1,643 | | | — | | | 1,845 | |
|
Other assets | — | | | 1,578 | | | 1,835 | | | — | | | 3,413 | |
|
Total assets | $ | — | | | $ | 1,061,778 | | | $ | 838,287 | | | $ | (746,276 | ) | | $ | 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 | — | | | 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, non-current | — | | | 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 | — | | | 216,872 | | | 326,983 | | | (326,983 | ) | | 216,872 | |
|
Retained earnings | — | | | 482,540 | | | 417,136 | | | (414,826 | ) | | 484,850 | |
|
Accumulated other comprehensive loss | — | | | 6,545 | | | (2,310 | ) | | — | | | 4,235 | |
|
Total stockholders’ equity | — | | | 706,418 | | | 741,843 | | | (741,843 | ) | | 706,418 | |
|
Total liabilities and stockholders’ equity | $ | — | | | $ | 1,061,778 | | | $ | 838,287 | | | $ | (746,276 | ) | | $ | 1,153,789 | |
|
Condensed Income Statement [Table Text Block] | j2 GLOBAL, INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENT OF INCOME |
Year Ended December 31, 2014 |
(In thousands, except share and per share data) |
|
|
| | | | | | | | | | | | | | | | | | | |
| j2 Global, Inc. | | j2 Cloud Services, Inc | | Non-guarantor Subsidiaries | | Consolidating Adjustments | | j2 Global Consolidated |
Revenues: | | | | | | | | | |
Total revenues | $ | — | | | $ | 227,860 | | | $ | 412,217 | | | $ | (41,047 | ) | | $ | 599,030 | |
|
| | | | | | | | | |
Cost of revenues | — | | | 51,391 | | | 95,386 | | | (40,788 | ) | | 105,989 | |
|
Gross profit | — | | | 176,469 | | | 316,831 | | | (259 | ) | | 493,041 | |
|
Operating expenses: | | | | | | | | | |
Sales and marketing | — | | | 36,414 | | | 105,812 | | | (259 | ) | | 141,967 | |
|
Research, development and engineering | — | | | 14,055 | | | 16,625 | | | — | | | 30,680 | |
|
General and administrative | 6,401 | | | 30,300 | | | 97,487 | | | — | | | 134,188 | |
|
Total operating expenses | 6,401 | | | 80,769 | | | 219,924 | | | (259 | ) | | 306,835 | |
|
Income from operations | (6,401 | ) | | 95,700 | | | 96,907 | | | — | | | 186,206 | |
|
Equity earnings in Subsidiaries | 135,838 | | | 77,051 | | | — | | | (212,889 | ) | | — | |
|
Interest expense (income), net | 10,442 | | | 20,478 | | | 284 | | | — | | | 31,204 | |
|
Other expense (income), net | (23 | ) | | 141 | | | (283 | ) | | — | | | (165 | ) |
|
Income before income taxes | 119,018 | | | 152,132 | | | 96,906 | | | (212,889 | ) | | 155,167 | |
|
Income tax expense | (6,309 | ) | | 16,294 | | | 19,855 | | | — | | | 29,840 | |
|
Net income | 125,327 | | | 135,838 | | | 77,051 | | | (212,889 | ) | | 125,327 | |
|
Less net loss attributable to noncontrolling interest | — | | | — | | | — | | | — | | | — | |
|
Less extinguishment of Series A preferred stock | (991 | ) | | — | | | — | | | — | | | (991 | ) |
|
Net income attributable to j2 Global, Inc. common shareholders | $ | 124,336 | | | $ | 135,838 | | | $ | 77,051 | | | $ | (212,889 | ) | | $ | 124,336 | |
|
j2 GLOBAL, INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENT OF INCOME |
Year Ended December 31, 2013 |
(In thousands, except share and per share data) |
|
|
| | | | | | | | | | | | | | | | | | | |
| j2 Global, Inc. | | j2 Cloud Services, Inc | | Non-guarantor Subsidiaries | | Consolidating Adjustments | | j2 Global Consolidated |
Revenues: | | | | | | | | | |
Total revenues | $ | — | | | $ | 255,413 | | | $ | 369,079 | | | $ | (103,691 | ) | | $ | 520,801 | |
|
| | | | | | | | | |
Cost of revenues | — | | | 84,655 | | | 105,480 | | | (103,242 | ) | | 86,893 | |
|
Gross profit | — | | | 170,758 | | | 263,599 | | | (449 | ) | | 433,908 | |
|
Operating expenses: | | | | | | | | | |
Sales and marketing | — | | | 41,555 | | | 90,211 | | | (449 | ) | | 131,317 | |
|
Research, development and engineering | — | | | 12,977 | | | 12,508 | | | — | | | 25,485 | |
|
General and administrative | — | | | 37,634 | | | 64,049 | | | — | | | 101,683 | |
|
Total operating expenses | — | | | 92,166 | | | 166,768 | | | (449 | ) | | 258,485 | |
|
Income from operations | — | | | 78,592 | | | 96,831 | | | — | | | 175,423 | |
|
Equity earnings in Subsidiaries | — | | | 61,551 | | | — | | | (61,551 | ) | | — | |
|
Interest expense (income), net | — | | | 9,292 | | | 11,962 | | | — | | | 21,254 | |
|
Other expense (income), net | — | | | (369 | ) | | 11,841 | | | — | | | 11,472 | |
|
Income before income taxes | — | | | 131,220 | | | 73,028 | | | (61,551 | ) | | 142,697 | |
|
Income tax expense | — | | | 23,698 | | | 11,477 | | | — | | | 35,175 | |
|
Net income | — | | | 107,522 | | | 61,551 | | | (61,551 | ) | | 107,522 | |
|
Less net loss attributable to noncontrolling interest | — | | | — | | | — | | | — | | | — | |
|
Net income attributable to j2 Global, Inc. common shareholders | $ | — | | | $ | 107,522 | | | $ | 61,551 | | | $ | (61,551 | ) | | $ | 107,522 | |
|
j2 GLOBAL, INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENT OF INCOME |
Year Ended December 31, 2012 |
(In thousands, except share and per share data) |
|
|
| | | | | | | | | | | | | | | | | | | |
| j2 Global, Inc. | | j2 Cloud Services, Inc | | Non-guarantor Subsidiaries | | Consolidating Adjustments | | j2 Global Consolidated |
Revenues: | | | | | | | | | |
Total revenues | $ | — | | | $ | 222,203 | | | $ | 206,045 | | | $ | (56,852 | ) | | $ | 371,396 | |
|
| | | | | | | | | |
Cost of revenues | — | | | 85,826 | | | 38,039 | | | (56,852 | ) | | 67,013 | |
|
Gross profit | — | | | 136,377 | | | 168,006 | | | — | | | 304,383 | |
|
Operating expenses: | | | | | | | | | | |
|
Sales and marketing | — | | | 35,677 | | | 27,148 | | | — | | | 62,825 | |
|
Research, development and engineering | — | | | 11,878 | | | 6,746 | | | — | | | 18,624 | |
|
General and administrative | — | | | 35,558 | | | 25,214 | | | — | | | 60,772 | |
|
Total operating expenses | — | | | 83,113 | | | 59,108 | | | — | | | 142,221 | |
|
Income from operations | — | | | 53,264 | | | 108,898 | | | — | | | 162,162 | |
|
Equity earnings in Subsidiaries | — | | | 91,539 | | | — | | | (91,539 | ) | | — | |
|
Interest expense (income), net | — | | | 3,911 | | | 3,739 | | | — | | | 7,650 | |
|
Other expense (income), net | — | | | (168 | ) | | (242 | ) | | — | | | (410 | ) |
|
Income before income taxes | — | | | 141,060 | | | 105,401 | | | (91,539 | ) | | 154,922 | |
|
Income tax expense | — | | | 19,480 | | | 13,779 | | | — | | | 33,259 | |
|
Net income | — | | | 121,580 | | | 91,622 | | | (91,539 | ) | | 121,663 | |
|
Less net loss attributable to noncontrolling interest | — | | | — | | | 83 | | | — | | | 83 | |
|
Net income attributable to j2 Global, Inc. common shareholders | $ | — | | | $ | 121,580 | | | $ | 91,539 | | | $ | (91,539 | ) | | $ | 121,580 | |
|
Condensed Comprehensive Income Statement [Table Text Block] | j2 GLOBAL, INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
Year Ended December 31, 2014 |
(In thousands) |
|
|
| | | | | | | | | | | | | | | | | | | |
| j2 Global, Inc. | | j2 Cloud Services, Inc. | | Non-guarantor Subsidiaries | | Consolidating Adjustments | | j2 Global Consolidated |
| | | | | | | | | |
Net income | $ | 125,327 | | | $ | 135,838 | | | $ | 77,051 | | | $ | (212,889 | ) | | $ | 125,327 | |
|
Other comprehensive income (loss), net of tax: | | | | | | | | | |
Foreign currency translation adjustment, net of tax expense (benefit) | — | | | (478 | ) | | (14,216 | ) | | — | | | (14,694 | ) |
|
Unrealized gain (loss) on available-for-sale investments, net of tax expense (benefit) | 15 | | | 3,307 | | | 10 | | | — | | | 3,332 | |
|
Other comprehensive income (loss), net of tax | 15 | | | 2,829 | | | (14,206 | ) | | — | | | (11,362 | ) |
|
Comprehensive income (loss) | $ | 125,342 | | | $ | 138,667 | | | $ | 62,845 | | | $ | (212,889 | ) | | $ | 113,965 | |
|
Net loss attributable to noncontrolling interest | — | | | — | | | — | | | — | | | — | |
|
Comprehensive income attributable to j2 Global, Inc. | $ | 125,342 | | | $ | 138,667 | | | $ | 62,845 | | | $ | (212,889 | ) | | $ | 113,965 | |
|
|
j2 GLOBAL, INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
Year Ended December 31, 2013 |
(In thousands) |
|
|
| | | | | | | | | | | | | | | | | | | |
| j2 Global, Inc. | | j2 Cloud Services, Inc. | | Non-guarantor Subsidiaries | | Consolidating Adjustments | | j2 Global Consolidated |
| | | | | | | | | |
Net income | $ | — | | | $ | 107,522 | | | $ | 61,551 | | | $ | (61,551 | ) | | $ | 107,522 | |
|
Other comprehensive income (loss), net of tax: | | | | | | | | | |
Foreign currency translation adjustment, net of tax expense (benefit) | — | | | (43 | ) | | 121 | | | — | | | 78 | |
|
Unrealized gain (loss) on available-for-sale investments, net of tax expense (benefit) | — | | | 4,249 | | | (4 | ) | | — | | | 4,245 | |
|
Other comprehensive income, net of tax | — | | | 4,206 | | | 117 | | | — | | | 4,323 | |
|
Comprehensive income | $ | — | | | $ | 111,728 | | | $ | 61,668 | | | $ | (61,551 | ) | | $ | 111,845 | |
|
Net loss attributable to noncontrolling interest | — | | | — | | | — | | | — | | | — | |
|
Comprehensive income attributable to j2 Global, Inc. | $ | — | | | $ | 111,728 | | | $ | 61,668 | | | $ | (61,551 | ) | | $ | 111,845 | |
|
j2 GLOBAL, INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
Year Ended December 31, 2012 |
(In thousands) |
|
|
| | | | | | | | | | | | | | | | | | | |
| j2 Global, Inc. | | j2 Cloud Services, Inc. | | Non-guarantor Subsidiaries | | Consolidating Adjustments | | j2 Global Consolidated |
| | | | | | | | | |
Net income | $ | — | | | $ | 121,580 | | | $ | 91,622 | | | $ | (91,539 | ) | | $ | 121,663 | |
|
Other comprehensive income (loss), net of tax: | | | | | | | | | |
Foreign currency translation adjustment, net of tax expense (benefit) | — | | | 521 | | | 914 | | | — | | | 1,435 | |
|
Unrealized gain (loss) on available-for-sale investments, net of tax expense (benefit) | — | | | 1,960 | | | (6 | ) | | — | | | 1,954 | |
|
Other comprehensive income, net of tax | — | | | 2,481 | | | 908 | | | — | | | 3,389 | |
|
Comprehensive income | — | | | 124,061 | | | 92,530 | | | (91,539 | ) | | 125,052 | |
|
Net loss attributable to noncontrolling interest | — | | | — | | | 83 | | | — | | | 83 | |
|
Comprehensive income attributable to j2 Global, Inc. | $ | — | | | $ | 124,061 | | | $ | 92,447 | | | $ | (91,539 | ) | | $ | 124,969 | |
|
Condensed Cash Flow Statement [Table Text Block] | j2 GLOBAL, INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENT OF CASH FLOWS |
Year Ended December 31, 2014 |
(In thousands) |
|
|
| | | | | | | | | | | | | | | | | | | |
| j2 Global, Inc. | | j2 Cloud Services, Inc. | | Non-guarantor Subsidiaries | | Consolidating Adjustments | | j2 Global Consolidated |
Cash flows from operating activities: | | | | | | | | | |
Net income | $ | 125,327 | | | $ | 135,838 | | | $ | 77,051 | | | $ | (212,889 | ) | | $ | 125,327 | |
|
Adjustments to reconcile net earnings to net cash provided by operating activities: | | | | | | | | | |
Depreciation and amortization | — | | | 6,047 | | | 56,906 | | | — | | | 62,953 | |
|
Accretion and amortization of discount and premium of investments | 392 | | | 722 | | | 220 | | | — | | | 1,334 | |
|
Amortization of financing costs and discounts | 4,297 | | | 748 | | | — | | | — | | | 5,045 | |
|
Share-based compensation | 2,353 | | | 5,325 | | | 1,230 | | | — | | | 8,908 | |
|
Excess tax benefits from share-based compensation | (86 | ) | | (4,803 | ) | | (623 | ) | | — | | | (5,512 | ) |
|
Provision for doubtful accounts | — | | | 2,114 | | | 2,588 | | | — | | | 4,702 | |
|
Equity earnings in subsidiaries | (135,838 | ) | | (77,051 | ) | | — | | | 212,889 | | | — | |
|
Deferred income taxes | (1,392 | ) | | (5,767 | ) | | (2,874 | ) | | — | | | (10,033 | ) |
|
(Gain) Loss on disposal of fixed assets | — | | | — | | | — | | | — | | | — | |
|
(Gain) loss on available-for-sale investment | 26 | | | (58 | ) | | (58 | ) | | | | (90 | ) |
|
Changes in assets and liabilities, net of effects of business combinations: | | | | | | | | | |
Decrease (increase) in: | | | | | | | | | |
Accounts receivable | — | | | (2,490 | ) | | (8,588 | ) | | — | | | (11,078 | ) |
|
Prepaid expenses and other current assets | (776 | ) | | (8,757 | ) | | 6,321 | | | — | | | (3,212 | ) |
|
Other assets | — | | | — | | | (42 | ) | | — | | | (42 | ) |
|
Increase (decrease) in: | | | | | | | | | |
Accounts payable and accrued expenses | 2,835 | | | (1,173 | ) | | (7,109 | ) | | — | | | (5,447 | ) |
|
Income taxes payable | 2,055 | | | 17,384 | | | (8,642 | ) | | — | | | 10,797 | |
|
Deferred revenue | — | | | (2,067 | ) | | 1,356 | | | — | | | (711 | ) |
|
|
| | | | | | | | | | | | | | | | | | | |
Liability for uncertain tax positions | — | | | (6,311 | ) | | (2 | ) | | — | | | (6,313 | ) |
|
Other long-term liabilities | 742 | | | (157 | ) | | 18 | | | — | | | 603 | |
|
Net cash (used in) provided by operating activities | (65 | ) | | 59,544 | | | 117,752 | | | — | | | 177,231 | |
|
Cash flows from investing activities: | | | | | | | | | | | |
|
Maturity of certificates of deposit | — | | | 8,210 | | | 6,310 | | | — | | | 14,520 | |
|
Purchase of certificates of deposit | — | | | — | | | (65 | ) | | — | | | (65 | ) |
|
Sales of available-for-sale investments | 40,211 | | | 53,563 | | | 16,589 | | | — | | | 110,363 | |
|
Purchase of available-for-sale investments | (81,061 | ) | | (57,391 | ) | | — | | | — | | | (138,452 | ) |
|
Purchases of property and equipment | — | | | (2,866 | ) | | (8,963 | ) | | — | | | (11,829 | ) |
|
Proceeds from sale of assets | — | | | 608 | | | — | | | — | | | 608 | |
|
Acquisition of businesses, net of cash received | — | | | (2,083 | ) | | (243,195 | ) | | — | | | (245,278 | ) |
|
Purchases of intangible assets | — | | | (2,949 | ) | | (2,387 | ) | | — | | | (5,336 | ) |
|
Investment in subsidiaries | — | | | (23,821 | ) | | — | | | 23,821 | | | — | |
|
Net cash (used in) provided by investing activities | (40,850 | ) | | (26,729 | ) | | (231,711 | ) | | 23,821 | | | (275,469 | ) |
|
Cash flows from financing activities: | | | | | | | | | |
Issuance of long-term debt | 402,500 | | | — | | | — | | | — | | | 402,500 | |
|
Debt issuance cost | (11,991 | ) | | — | | | — | | | — | | | (11,991 | ) |
|
Repurchases of common and restricted stock | (930 | ) | | (4,733 | ) | | — | | | — | | | (5,663 | ) |
|
Issuance of common stock under employee stock purchase plan | 142 | | | 123 | | | — | | | — | | | 265 | |
|
Exercise of stock options | 1,374 | | | 5,193 | | | 54 | | | — | | | 6,621 | |
|
Mandatorily redeemable preferred stock | — | | | — | | | — | | | — | | | — | |
|
Dividends paid | (26,967 | ) | | (25,302 | ) | | — | | | — | | | (52,269 | ) |
|
Excess tax benefits from share-based compensation | 86 | | | 4,803 | | | 623 | | | — | | | 5,512 | |
|
Deferred payments for acquisitions | — | | | — | | | (16,512 | ) | | — | | | (16,512 | ) |
|
Other | — | | | — | | | (933 | ) | | — | | | (933 | ) |
|
Intercompany | (96,509 | ) | | (10,495 | ) | | 130,825 | | | (23,821 | ) | | — | |
|
Net cash (used in) provided by financing activities | 267,705 | | | (30,411 | ) | | 114,057 | | | (23,821 | ) | | 327,530 | |
|
|
| | | | | | | | | | | | | | | | | | | |
Effect of exchange rate changes on cash and cash equivalents | — | | | — | | | (3,430 | ) | | — | | | (3,430 | ) |
|
Net change in cash and cash equivalents | 226,790 | | | 2,404 | | | (3,332 | ) | | — | | | 225,862 | |
|
Cash and cash equivalents at beginning of period | — | | | 34,406 | | | 173,395 | | | — | | | 207,801 | |
|
Cash and cash equivalents at end of period | $ | 226,790 | | | $ | 36,810 | | | $ | 170,063 | | | $ | — | | | $ | 433,663 | |
|
j2 GLOBAL, INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENT OF CASH FLOWS |
Year Ended December 31, 2013 |
(In thousands) |
|
|
| | | | | | | | | | | | | | | | | | | |
| j2 Global, Inc. | | j2 Cloud Services, Inc. | | Non-guarantor Subsidiaries | | Consolidating Adjustments | | j2 Global Consolidated |
Cash flows from operating activities: | | | | | | | | | |
Net income | $ | — | | | $ | 107,522 | | | $ | 61,551 | | | $ | (61,551 | ) | | $ | 107,522 | |
|
Adjustments to reconcile net earnings to net cash provided by operating activities: | | | | | | | | | |
Depreciation and amortization | — | | | 9,201 | | | 30,587 | | | — | | | 39,788 | |
|
Accretion and amortization of discount and premium of investments | — | | | 1,273 | | | 523 | | | — | | | 1,796 | |
|
Amortization of financing costs and discounts | — | | | 613 | | | — | | | — | | | 613 | |
|
Share-based compensation | — | | | 9,720 | | | — | | | — | | | 9,720 | |
|
Excess tax benefits from share-based compensation | — | | | (2,695 | ) | | — | | | — | | | (2,695 | ) |
|
Provision for doubtful accounts | — | | | 1,219 | | | 1,916 | | | — | | | 3,135 | |
|
Equity earnings in subsidiaries | — | | | (61,551 | ) | | — | | | 61,551 | | | — | |
|
Deferred income taxes | — | | | (495 | ) | | 745 | | | — | | | 250 | |
|
(Gain) Loss on disposal of fixed assets | — | | | — | | | 8 | | | — | | | 8 | |
|
(Gain) loss on available-for-sale investment | — | | | (51 | ) | | 117 | | | | | 66 | |
|
Loss on extinguishment of debt and related interest expense | — | | | — | | | 14,437 | | | — | | | 14,437 | |
|
Changes in assets and liabilities, net of effects of business combinations: | | | | | | | | | |
Decrease (increase) in: | | | | | | | | | |
Accounts receivable | — | | | (1,656 | ) | | (7,932 | ) | | — | | | (9,588 | ) |
|
Prepaid expenses and other current assets | — | | | 784 | | | (635 | ) | | — | | | 149 | |
|
Other assets | — | | | (57 | ) | | 225 | | | — | | | 168 | |
|
Increase (decrease) in: | | | | | | | | | |
Accounts payable and accrued expenses | — | | | (124 | ) | | 9,250 | | | — | | | 9,126 | |
|
Income taxes payable | — | | | (923 | ) | | 1,590 | | | — | | | 667 | |
|
|
| | | | | | | | | | | | | | | | | | | |
Deferred revenue | — | | | 13,415 | | | (1,047 | ) | | — | | | 12,368 | |
|
Liability for uncertain tax positions | — | | | 6,184 | | | 2 | | | — | | | 6,186 | |
|
Other long-term liabilities | — | | | (88 | ) | | (304 | ) | | — | | | (392 | ) |
|
Net cash provided by operating activities | — | | | 82,291 | | | 111,033 | | | — | | | 193,324 | |
|
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 | — | | | 124,745 | | | 15,381 | | | — | | | 140,126 | |
|
Purchase of available-for-sale investments | — | | | (149,748 | ) | | (19,153 | ) | | — | | | (168,901 | ) |
|
Purchases of property and equipment | — | | | (6,223 | ) | | (12,404 | ) | | — | | | (18,627 | ) |
|
Proceeds from sale of assets | — | | | 1 | | | — | | | — | | | 1 | |
|
Acquisition of businesses, net of cash received | — | | | (4,043 | ) | | (122,298 | ) | | — | | | (126,341 | ) |
|
Purchases of intangible assets | — | | | (3,034 | ) | | (11,166 | ) | | — | | | (14,200 | ) |
|
Investment in subsidiaries | — | | | (14,920 | ) | | — | | | 14,920 | | | — | |
|
Other | — | | | 3,281 | | | (3,281 | ) | | — | | | — | |
|
Net cash (used in) provided by investing activities | — | | | (36,046 | ) | | (146,272 | ) | | 14,920 | | | (167,398 | ) |
|
Cash flows from financing activities: | | | | | | | | | |
Issuance of long-term debt | — | | | — | | | — | | | — | | | — | |
|
Debt issuance costs | — | | | (47 | ) | | — | | | — | | | (47 | ) |
|
Repurchases of common stock and restricted stock | — | | | (4,587 | ) | | — | | | — | | | (4,587 | ) |
|
Issuance of common stock under employee stock purchase plan | — | | | 213 | | | — | | | — | | | 213 | |
|
Exercise of stock options | — | | | 13,604 | | | — | | | — | | | 13,604 | |
|
Mandatorily redeemable preferred stock | — | | | — | | | — | | | | | — | |
|
Dividends paid | — | | | (45,134 | ) | | — | | | — | | | (45,134 | ) |
|
Excess tax benefits from share-based compensation | — | | | 2,695 | | | — | | | — | | | 2,695 | |
|
Deferred payments for acquisitions | — | | | — | | | — | | | — | | | — | |
|
Other | — | | | — | | | (2,437 | ) | | — | | | (2,437 | ) |
|
Intercompany | — | | | (55,295 | ) | | 70,215 | | | (14,920 | ) | | — | |
|
Net cash (used in) provided by financing activities | — | | | (88,551 | ) | | 67,778 | | | (14,920 | ) | | (35,693 | ) |
|
|
| | | | | | | | | | | | | | | | | | | |
Effect of exchange rate changes on cash and cash equivalents | — | | | — | | | (1,112 | ) | | — | | | (1,112 | ) |
|
Net change in cash and cash equivalents | — | | | (42,306 | ) | | 31,427 | | | — | | | (10,879 | ) |
|
Cash and cash equivalents at beginning of period | — | | | 76,712 | | | 141,968 | | | — | | | 218,680 | |
|
Cash and cash equivalents at end of period | $ | — | | | $ | 34,406 | | | $ | 173,395 | | | $ | — | | | $ | 207,801 | |
|
j2 GLOBAL, INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENT OF CASH FLOWS |
Year Ended December 31, 2012 |
(In thousands) |
|
|
| | | | | | | | | | | | | | | | | | | |
| j2 Global, Inc. | | j2 Cloud Services, Inc. | | Non-guarantor Subsidiaries | | Consolidating Adjustments | | j2 Global Consolidated |
Cash flows from operating activities: | | | | | | | | | |
Net income | $ | — | | | $ | 121,580 | | | $ | 91,622 | | | $ | (91,539 | ) | | $ | 121,663 | |
|
Adjustments to reconcile net earnings to net cash provided by operating activities: | | | | | | | | | |
Depreciation and amortization | — | | | 8,590 | | | 13,574 | | | — | | | 22,164 | |
|
Accretion and amortization of discount and premium of investments | — | | | 1,461 | | | 142 | | | — | | | 1,603 | |
|
Amortization of financing costs and discounts | — | | | 249 | | | — | | | — | | | 249 | |
|
Share-based compensation | — | | | 9,132 | | | — | | | — | | | 9,132 | |
|
Excess tax benefits from share-based compensation | — | | | (961 | ) | | — | | | — | | | (961 | ) |
|
Provision for doubtful accounts | — | | | 293 | | | 3,996 | | | — | | | 4,289 | |
|
Equity earnings in subsidiaries | — | | | (91,539 | ) | | — | | | 91,539 | | | — | |
|
Deferred income taxes | — | | | 4,839 | | | (3,689 | ) | | — | | | 1,150 | |
|
(Gain) Loss on disposal of fixed assets | — | | | 54 | | | — | | | — | | | 54 | |
|
(Gain) loss on available-for-sale investment | — | | | (266 | ) | | — | | | | | (266 | ) |
|
Loss on extinguishment of debt and related interest expense | — | | | — | | | — | | | — | | | — | |
|
Changes in assets and liabilities, net of effects of business combinations: | | | | | | | | | |
Decrease (increase) in: | | | | | | | | | |
Accounts receivable | — | | | (822 | ) | | (4,595 | ) | | — | | | (5,417 | ) |
|
Prepaid expenses and other current assets | — | | | (1,265 | ) | | (763 | ) | | — | | | (2,028 | ) |
|
Other assets | — | | | 123 | | | (366 | ) | | | | (243 | ) |
|
Increase (decrease) in: | | | | | | | | | |
Accounts payable and accrued expenses | — | | | 10,599 | | | (5,461 | ) | | — | | | 5,138 | |
|
Income taxes payable | — | | | 2,193 | | | 1,946 | | | — | | | 4,139 | |
|
|
| | | | | | | | | | | | | | | | | | | |
Deferred revenue | — | | | 878 | | | 734 | | | — | | | 1,612 | |
|
Liability for uncertain tax positions | — | | | 7,601 | | | — | | | — | | | 7,601 | |
|
Other long-term liabilities | — | | | 99 | | | (67 | ) | | — | | | 32 | |
|
Net cash provided by operating activities | — | | | 72,838 | | | 97,073 | | | — | | | 169,911 | |
|
Cash flows from investing activities: | | | | | | | | | |
Maturity of certificates of deposit | — | | | 8,000 | | | — | | | — | | | 8,000 | |
|
Purchase of certificates of deposit | — | | | (22,106 | ) | | (12,567 | ) | | — | | | (34,673 | ) |
|
Sales of available-for-sale investments | — | | | 138,709 | | | — | | | — | | | 138,709 | |
|
Purchase of available-for-sale investments | — | | | (139,087 | ) | | (12,902 | ) | | — | | | (151,989 | ) |
|
Purchases of property and equipment | — | | | (2,677 | ) | | (2,384 | ) | | — | | | (5,061 | ) |
|
Proceeds from sale of assets | — | | | 136 | | | 20 | | | — | | | 156 | |
|
Acquisition of businesses, net of cash received | — | | | (1,811 | ) | | (196,530 | ) | | — | | | (198,341 | ) |
|
Purchases of intangible assets | — | | | (4,433 | ) | | (1,862 | ) | | — | | | (6,295 | ) |
|
Investment in subsidiaries | — | | | (171,562 | ) | | — | | | 171,562 | | | — | |
|
Other | — | | | — | | | — | | | — | | | — | |
|
Net cash (used in) provided by investing activities | — | | | (194,831 | ) | | (226,225 | ) | | 171,562 | | | (249,494 | ) |
|
Cash flows from financing activities: | | | | | | | | | |
Issuance of long-term debt | — | | | 245,000 | | | — | | | — | | | 245,000 | |
|
Debt issuance cost | — | | | (1,384 | ) | | — | | | — | | | (1,384 | ) |
|
Repurchases of common and restricted stock | — | | | (60,282 | ) | | — | | | — | | | (60,282 | ) |
|
Issuance of common stock under employee stock purchase plan | — | | | 157 | | | — | | | — | | | 157 | |
|
Exercise of stock options | — | | | 5,646 | | | — | | | | | 5,646 | |
|
Mandatorily redeemable preferred stock | — | | | — | | | 8,557 | | | — | | | 8,557 | |
|
Dividends paid | — | | | (40,263 | ) | | — | | | — | | | (40,263 | ) |
|
Excess tax benefits from share-based compensation | — | | | 961 | | | — | | | — | | | 961 | |
|
Deferred payments for acquisitions | — | | | — | | | — | | | — | | | — | |
|
Other | — | | | — | | | — | | | — | | | — | |
|
Intercompany | — | | | 3,746 | | | 167,816 | | | (171,562 | ) | | — | |
|
Net cash (used in) provided by financing activities | — | | | 153,581 | | | 176,373 | | | (171,562 | ) | | 158,392 | |
|
|
| | | | | | | | | | | | | | | | | | | |
Effect of exchange rate changes on cash and cash equivalents | — | | | — | | | 512 | | | — | | | 512 | |
|
Net change in cash and cash equivalents | — | | | 31,588 | | | 47,733 | | | — | | | 79,321 | |
|
Cash and cash equivalents at beginning of period | — | | | 45,124 | | | 94,235 | | | — | | | 139,359 | |
|
Cash and cash equivalents at end of period | $ | — | | | $ | 76,712 | | | $ | 141,968 | | | $ | — | | | $ | 218,680 | |
|
| | | | | | | | | | | | | | | | | | | | |