Condensed Consolidating Financials (Notes) | 3 Months Ended |
Mar. 31, 2015 |
Condensed Financial Information [Abstract] | |
Condensed Financial Statements [Text Block] | Condensed 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 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 do not meaningfully restrict j2 Cloud Services, Inc.’s ability to pay dividends to j2 Global, Inc. |
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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 |
CONDENSED CONSOLIDATED BALANCE SHEET |
(Unaudited, in thousands except share and per share data) |
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| 31-Mar-15 |
BALANCE SHEET | j2 Global, Inc. | | j2 Cloud Services, Inc. | | Non-guarantor Subsidiaries | | Consolidating Adjustments | | j2 Global Consolidated |
ASSETS | | | | | | | | | |
Cash and cash equivalents | $ | 199,815 | | | $ | 17,516 | | | $ | 174,686 | | | $ | — | | | $ | 392,017 | |
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Short-term investments | 41,880 | | | 43,819 | | | 60 | | | — | | | 85,759 | |
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Accounts receivable, net | 326 | | | 12,059 | | | 70,187 | | | — | | | 82,572 | |
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Prepaid expenses and other current assets | 737 | | | 14,472 | | | 9,505 | | | (103 | ) | | 24,611 | |
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Deferred income taxes | 896 | | | — | | | 1,250 | | | — | | | 2,146 | |
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Intercompany receivable | 110,000 | | | 91,474 | | | — | | | (201,474 | ) | | — | |
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Total current assets | 353,654 | | | 179,340 | | | 255,688 | | | (201,577 | ) | | 587,105 | |
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Long-term investments | 52,619 | | | 9,099 | | | — | | | — | | | 61,718 | |
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Property and equipment, net | — | | | 7,567 | | | 29,051 | | | — | | | 36,618 | |
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Trade names, net | — | | | 10,199 | | | 95,655 | | | — | | | 105,854 | |
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Patent and patent licenses, net | — | | | 850 | | | 22,118 | | | — | | | 22,968 | |
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Customer relationships, net | — | | | 1,952 | | | 182,376 | | | — | | | 184,328 | |
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Goodwill | — | | | 52,131 | | | 617,243 | | | — | | | 669,374 | |
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Other purchased intangibles, net | — | | | 4,264 | | | 11,882 | | | — | | | 16,146 | |
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Investment in subsidiaries | 839,108 | | | 909,081 | | | 8,717 | | | (1,756,906 | ) | | — | |
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Other assets | 9,061 | | | 3,063 | | | 2,001 | | | — | | | 14,125 | |
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Total assets | $ | 1,254,442 | | | $ | 1,177,546 | | | $ | 1,224,731 | | | $ | (1,958,483 | ) | | $ | 1,698,236 | |
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LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | |
Accounts payable and accrued expenses | $ | 4,798 | | | $ | 23,185 | | | $ | 53,025 | | | $ | — | | | $ | 81,008 | |
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Income taxes payable | 2,959 | | | 103 | | | — | | | (103 | ) | | 2,959 | |
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Deferred revenue, current | — | | | 20,774 | | | 52,504 | | | — | | | 73,278 | |
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Capital lease, current | — | | | — | | | 441 | | | — | | | 441 | |
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Deferred income taxes | 43 | | | — | | | 142 | | | — | | | 185 | |
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Intercompany payable | 48,268 | | | — | | | 153,206 | | | (201,474 | ) | | — | |
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Total current liabilities | 56,068 | | | 44,062 | | | 259,318 | | | (201,577 | ) | | 157,871 | |
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Long term debt | 348,942 | | | 246,324 | | | — | | | — | | | 595,266 | |
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Capital lease, non-current | — | | | — | | | 66 | | | — | | | 66 | |
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Liability for uncertain tax positions | — | | | 40,145 | | | — | | | — | | | 40,145 | |
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Deferred income taxes | 24,685 | | | — | | | 38,424 | | | — | | | 63,109 | |
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Deferred revenue, non-current | — | | | 7,009 | | | 1,896 | | | — | | | 8,905 | |
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Other long-term liabilities | 1,071 | | | 898 | | | 15,946 | | | — | | | 17,915 | |
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Total liabilities | 430,766 | | | 338,438 | | | 315,650 | | | (201,577 | ) | | 883,277 | |
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Common stock, $0.01 par value. | 474 | | | — | | | — | | | — | | | 474 | |
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Additional paid-in capital - common | 275,420 | | | 233,836 | | | 421,684 | | | (655,520 | ) | | 275,420 | |
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Retained earnings | 547,697 | | | 595,691 | | | 519,047 | | | (1,101,386 | ) | | 561,049 | |
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Accumulated other comprehensive loss | 85 | | | 9,581 | | | (31,650 | ) | | — | | | (21,984 | ) |
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Total stockholders’ equity | 823,676 | | | 839,108 | | | 909,081 | | | (1,756,906 | ) | | 814,959 | |
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Total liabilities and stockholders’ equity | $ | 1,254,442 | | | $ | 1,177,546 | | | $ | 1,224,731 | | | $ | (1,958,483 | ) | | $ | 1,698,236 | |
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j2 GLOBAL, INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED BALANCE SHEET |
(Unaudited, in thousands except share and per share data) |
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| 31-Dec-14 |
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 | |
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Short-term investments | 47,880 | | | 48,261 | | | 65 | | | — | | | 96,206 | |
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Accounts receivable, net | — | | | 11,167 | | | 80,532 | | | — | | | 91,699 | |
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Prepaid expenses and other current assets | 776 | | | 12,689 | | | 9,137 | | | — | | | 22,602 | |
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Deferred income taxes | 1,271 | | | — | | | 742 | | | — | | | 2,013 | |
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Intercompany receivable | 110,000 | | | 74,938 | | | 1,428 | | | (186,366 | ) | | — | |
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Total current assets | 386,717 | | | 183,865 | | | 261,967 | | | (186,366 | ) | | 646,183 | |
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Long-term investments | 55,452 | | | 5,056 | | | — | | | — | | | 60,508 | |
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Property and equipment, net | — | | | 8,011 | | | 30,206 | | | — | | | 38,217 | |
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Trade names, net | — | | | 10,231 | | | 95,320 | | | — | | | 105,551 | |
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Patent and patent licenses, net | — | | | 886 | | | 24,041 | | | — | | | 24,927 | |
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Customer relationships, net | — | | | 2,206 | | | 161,560 | | | — | | | 163,766 | |
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Goodwill | — | | | 52,131 | | | 583,544 | | | — | | | 635,675 | |
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Other purchased intangibles, net | — | | | 4,276 | | | 13,280 | | | — | | | 17,556 | |
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Investment in subsidiaries | 826,289 | | | 900,681 | | | 8,716 | | | (1,735,686 | ) | | — | |
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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 | |
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Income taxes payable | — | | | — | | | — | | | — | | | — | |
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Deferred revenue, current | — | | | 23,091 | | | 40,366 | | | — | | | 63,457 | |
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Capital lease, current | — | | | — | | | 258 | | | — | | | 258 | |
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Deferred income taxes | — | | | — | | | 342 | | | — | | | 342 | |
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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 | |
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Capital lease, non-current | — | | | — | | | 141 | | | — | | | 141 | |
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| | | | | | | | | | | | | | | | | | | |
Liability for uncertain tax positions | — | | | 37,551 | | | — | | | — | | | 37,551 | |
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Deferred income taxes | 21,728 | | | (1,837 | ) | | 42,069 | | | — | | | 61,960 | |
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Deferred revenue, non-current | — | | | 8,187 | | | 1,995 | | | — | | | 10,182 | |
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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 - common | 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 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 |
CONDENSED CONSOLIDATED STATEMENT OF INCOME |
(Unaudited, in thousands except share and per share data) |
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| Three Months Ended March 31, 2015 |
| j2 Global, Inc. | | j2 Cloud Services, Inc | | Non-guarantor Subsidiaries | | Consolidating Adjustments | | j2 Global Consolidated |
Revenues: | | | | | | | | | |
Total revenues | $ | — | | | $ | 54,619 | | | $ | 116,435 | | | $ | (9,801 | ) | | $ | 161,253 | |
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Cost of revenues | — | | | 15,528 | | | 22,394 | | | (9,736 | ) | | 28,186 | |
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Gross profit | — | | | 39,091 | | | 94,041 | | | (65 | ) | | 133,067 | |
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Operating expenses: | | | | | | | | | |
Sales and marketing | — | | | 9,780 | | | 27,875 | | | (65 | ) | | 37,590 | |
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Research, development and engineering | — | | | 3,855 | | | 4,592 | | | — | | | 8,447 | |
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General and administrative | 4,179 | | | 6,850 | | | 35,471 | | | — | | | 46,500 | |
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Total operating expenses | 4,179 | | | 20,485 | | | 67,938 | | | (65 | ) | | 92,537 | |
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Operating income | (4,179 | ) | | 18,606 | | | 26,103 | | | — | | | 40,530 | |
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Equity earnings in subsidiaries | 26,251 | | | 23,539 | | | — | | | (49,790 | ) | | — | |
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Interest expense (income), net | 2,588 | | | 5,107 | | | 2,618 | | | — | | | 10,313 | |
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Other expense (income), net | (12 | ) | | 339 | | | (1,111 | ) | | — | | | (784 | ) |
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Income before income taxes | 19,496 | | | 36,699 | | | 24,596 | | | (49,790 | ) | | 31,001 | |
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Income tax expense | (2,381 | ) | | 10,448 | | | 1,057 | | | — | | | 9,124 | |
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Net income | $ | 21,877 | | | $ | 26,251 | | | $ | 23,539 | | | $ | (49,790 | ) | | $ | 21,877 | |
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j2 GLOBAL, INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENT OF INCOME |
(Unaudited, in thousands except share and per share data) |
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| Three Months Ended March 31, 2014 |
| j2 Global, Inc. | | j2 Cloud Services, Inc | | Non-guarantor Subsidiaries | | Consolidating Adjustments | | j2 Global Consolidated |
Revenues: | | | | | | | | | |
Total revenues | $ | — | | | $ | 51,193 | | | $ | 96,634 | | | $ | (13,703 | ) | | $ | 134,124 | |
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Cost of revenues | — | | | 19,953 | | | 17,065 | | | (13,630 | ) | | 23,388 | |
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Gross profit | — | | | 31,240 | | | 79,569 | | | (73 | ) | | 110,736 | |
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Operating expenses: | | | | | | | | | |
Sales and marketing | — | | | 9,013 | | | 24,019 | | | (73 | ) | | 32,959 | |
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Research, development and engineering | — | | | 3,620 | | | 3,593 | | | — | | | 7,213 | |
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General and administrative | — | | | 9,570 | | | 19,409 | | | — | | | 28,979 | |
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Total operating expenses | — | | | 22,203 | | | 47,021 | | | (73 | ) | | 69,151 | |
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Operating income | — | | | 9,037 | | | 32,548 | | | — | | | 41,585 | |
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Equity earnings in subsidiaries | — | | | 27,942 | | | — | | | (27,942 | ) | | — | |
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Interest expense (income), net | — | | | 5,103 | | | (155 | ) | | — | | | 4,948 | |
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Other expense (income), net | — | | | (32 | ) | | (287 | ) | | — | | | (319 | ) |
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Income before income taxes | — | | | 31,908 | | | 32,990 | | | (27,942 | ) | | 36,956 | |
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Income tax expense | — | | | 3,143 | | | 5,048 | | | — | | | 8,191 | |
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Net income | $ | — | | | $ | 28,765 | | | $ | 27,942 | | | $ | (27,942 | ) | | $ | 28,765 | |
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j2 GLOBAL, INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
(Unaudited, in thousands except share and per share data) |
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| Three Months Ended March 31, 2015 |
| j2 Global, Inc. | | j2 Cloud Services, Inc. | | Non-guarantor Subsidiaries | | Consolidating Adjustments | | j2 Global Consolidated |
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Net income | $ | 21,877 | | | $ | 26,251 | | | $ | 23,539 | | | $ | (49,790 | ) | | $ | 21,877 | |
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Other comprehensive income (loss), net of tax: | | | | | | | | | |
Foreign currency translation adjustment, net of tax expense (benefit) | — | | | — | | | (15,237 | ) | | — | | | (15,237 | ) |
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Unrealized gain (loss) on available-for-sale investments, net of tax expense (benefit) | 311 | | | 69 | | | — | | | — | | | 380 | |
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Other comprehensive income (loss), net of tax | 311 | | | 69 | | | (15,237 | ) | | — | | | (14,857 | ) |
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Comprehensive income | $ | 22,188 | | | $ | 26,320 | | | $ | 8,302 | | | $ | (49,790 | ) | | $ | 7,020 | |
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j2 GLOBAL, INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
(Unaudited, in thousands except share and per share data) |
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| Three Months Ended March 31, 2014 |
| j2 Global, Inc. | | j2 Cloud Services, Inc. | | Non-guarantor Subsidiaries | | Consolidating Adjustments | | j2 Global Consolidated |
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Net income | $ | — | | | $ | 28,765 | | | $ | 27,942 | | | $ | (27,942 | ) | | $ | 28,765 | |
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Other comprehensive income (loss), net of tax: | | | | | | | | | |
Foreign currency translation adjustment, net of tax expense (benefit) | — | | | (248 | ) | | 1,085 | | | — | | | 837 | |
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Unrealized gain (loss) on available-for-sale investments, net of tax expense (benefit) | — | | | (2,649 | ) | | 9 | | | — | | | (2,640 | ) |
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Other comprehensive income (loss), net of tax | — | | | (2,897 | ) | | 1,094 | | | — | | | (1,803 | ) |
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Comprehensive income | $ | — | | | $ | 25,868 | | | $ | 29,036 | | | $ | (27,942 | ) | | $ | 26,962 | |
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j2 GLOBAL, INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW |
(Unaudited, in thousands except share and per share data) |
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| Three Months Ended March 31, 2015 |
| j2 Global, Inc. | | j2 Cloud Services, Inc. | | Non-guarantor Subsidiaries | | Consolidating Adjustments | | j2 Global Consolidated |
Net cash (used in) provided by operating activities | $ | (8,106 | ) | | $ | 6,745 | | | $ | 47,077 | | | $ | — | | | $ | 45,716 | |
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Cash flows from investing activities: | | | | | | | | | |
Maturity of available-for-sale investments | 21,994 | | | 7,000 | | | — | | | — | | | 28,994 | |
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Purchase of available-for-sale investments | (13,276 | ) | | (6,543 | ) | | — | | | — | | | (19,819 | ) |
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Purchases of property and equipment | — | | | (308 | ) | | (2,648 | ) | | — | | | (2,956 | ) |
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Acquisition of businesses, net of cash received | — | | | 1,459 | | | (73,674 | ) | | — | | | (72,215 | ) |
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Purchases of intangible assets | — | | | (5 | ) | | (322 | ) | | — | | | (327 | ) |
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Investment in subsidiaries | — | | | — | | | — | | | — | | | — | |
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Net cash (used in) provided by investing activities | 8,718 | | | 1,603 | | | (76,644 | ) | | — | | | (66,323 | ) |
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Cash flows from financing activities: | | | | | | | | | |
Repurchases of common and restricted stock | (705 | ) | | — | | | — | | | — | | | (705 | ) |
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Issuance of common stock under employee stock purchase plan | 61 | | | — | | | — | | | — | | | 61 | |
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Exercise of stock options | 65 | | | — | | | — | | | — | | | 65 | |
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Dividends paid | (14,110 | ) | | — | | | — | | | — | | | (14,110 | ) |
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Excess tax benefits from share-based compensation | 334 | | | — | | | — | | | — | | | 334 | |
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Deferred payments for acquisitions | — | | | (544 | ) | | (1,812 | ) | | — | | | (2,356 | ) |
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Other | — | | | — | | | (50 | ) | | — | | | (50 | ) |
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Intercompany | (13,232 | ) | | (27,098 | ) | | 40,330 | | | — | | | — | |
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Net cash (used in) provided by financing activities | (27,587 | ) | | (27,642 | ) | | 38,468 | | | — | | | (16,761 | ) |
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Effect of exchange rate changes on cash and cash equivalents | — | | | — | | | (4,278 | ) | | — | | | (4,278 | ) |
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Net change in cash and cash equivalents | (26,975 | ) | | (19,294 | ) | | 4,623 | | | — | | | (41,646 | ) |
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Cash and cash equivalents at beginning of period | 226,790 | | | 36,810 | | | 170,063 | | | — | | | 433,663 | |
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Cash and cash equivalents at end of period | $ | 199,815 | | | $ | 17,516 | | | $ | 174,686 | | | $ | — | | | $ | 392,017 | |
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j2 GLOBAL, INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW |
(Unaudited, in thousands except share and per share data) |
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| Three Months Ended March 31, 2014 |
| j2 Global, Inc. | | j2 Cloud Services, Inc. | | Non-guarantor Subsidiaries | | Consolidating Adjustments | | j2 Global Consolidated |
Net cash provided by operating activities | $ | — | | | $ | (3,119 | ) | | $ | 40,413 | | | $ | — | | | $ | 37,294 | |
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Cash flows from investing activities: | | | | | | | | | |
Maturity of certificates of deposit | — | | | 8,210 | | | — | | | — | | | 8,210 | |
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Maturity of available-for-sale investments | — | | | 24,105 | | | 5,600 | | | — | | | 29,705 | |
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Purchase of available-for-sale investments | — | | | (11,213 | ) | | — | | | — | | | (11,213 | ) |
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Purchases of property and equipment | — | | | (454 | ) | | (2,482 | ) | | — | | | (2,936 | ) |
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Acquisition of businesses, net of cash received | — | | | — | | | (49,068 | ) | | — | | | (49,068 | ) |
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Purchases of intangible assets | — | | | (591 | ) | | (324 | ) | | — | | | (915 | ) |
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Investment in subsidiaries | — | | | (1,021 | ) | | 1,021 | | | — | | | — | |
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Net cash (used in) provided by investing activities | — | | | 19,036 | | | (45,253 | ) | | — | | | (26,217 | ) |
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Cash flows from financing activities: | | | | | | | | | | | |
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Repurchases of common stock and restricted stock | — | | | (4,042 | ) | | — | | | — | | | (4,042 | ) |
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Issuance of common stock under employee stock purchase plan | — | | | 55 | | | — | | | — | | | 55 | |
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Exercise of stock options | — | | | 4,926 | | | — | | | — | | | 4,926 | |
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Dividends paid | — | | | (12,418 | ) | | — | | | — | | | (12,418 | ) |
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Excess tax benefits from share-based compensation | — | | | 4,082 | | | — | | | — | | | 4,082 | |
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Deferred payments for acquisitions | — | | | — | | | (3,314 | ) | | — | | | (3,314 | ) |
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Other | — | | | — | | | — | | | — | | | — | |
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Intercompany | — | | | 2,335 | | | (2,335 | ) | | — | | | — | |
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Net cash (used in) provided by financing activities | — | | | (5,062 | ) | | (5,649 | ) | | — | | | (10,711 | ) |
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Effect of exchange rate changes on cash and cash equivalents | — | | | — | | | (99 | ) | | — | | | (99 | ) |
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Net change in cash and cash equivalents | — | | | 10,855 | | | (10,588 | ) | | — | | | 267 | |
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Cash and cash equivalents at beginning of period | — | | | 34,406 | | | 173,395 | | | — | | | 207,801 | |
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Cash and cash equivalents at end of period | $ | — | | | $ | 45,261 | | | $ | 162,807 | | | $ | — | | | $ | 208,068 | |
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