Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 23, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | J2 GLOBAL, INC. | ||
Entity Central Index Key | 1,084,048 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 48,668,436 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1,688,736,275 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and cash equivalents | $ 255,530 | $ 433,663 |
Short-term investments | 79,655 | 96,206 |
Accounts receivable, net of allowances of $4,261 and $3,685, respectively | 114,680 | 91,699 |
Prepaid expenses and other current assets | 25,722 | 22,602 |
Deferred income taxes, current | 7,218 | 2,013 |
Total current assets | 482,805 | 646,183 |
Long-term investments | 78,563 | 60,508 |
Property and equipment, net | 57,442 | 38,217 |
Tradenames, net | 118,965 | 105,551 |
Patent and patent licenses, net | 18,841 | 24,927 |
Customer relationships, net | 197,319 | 163,766 |
Goodwill | 807,661 | 635,675 |
Other purchased intangibles, net | 17,516 | 17,556 |
Deferred income taxes, noncurrent | 0 | |
Other assets | 13,756 | 12,819 |
Total assets | 1,792,868 | 1,705,202 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable and accrued expenses | 114,384 | 95,310 |
Income taxes payable | 5,589 | 0 |
Deferred revenue | 76,104 | 63,457 |
Capital Lease Obligations, Current | 214 | 258 |
Deferred income taxes, current | 363 | 342 |
Total current liabilities | 196,654 | 159,367 |
Total long-term debt, less current portion | 601,186 | 593,350 |
Long-term Debt | 601,186 | 593,350 |
Capital Lease Obligations, Noncurrent | 148 | 141 |
Liability for uncertain tax positions | 35,917 | 37,551 |
Deferred income taxes, non-current | 43,989 | 61,960 |
Deferred Revenue, Noncurrent | 6,538 | 10,182 |
Other long-term liabilities | 18,228 | 22,416 |
Total liabilities | 902,660 | 884,967 |
Commitments and contingencies | 0 | 0 |
Common stock, $0.01 par value. Authorized 95,000,000 at December 31, 2015 and 2014; total issued and outstanding 47,950,677 and 47,409,514 shares at December 31, 2015 and 2014, respectively. | 479 | 474 |
Additional paid-in capital | 292,064 | 273,304 |
Retained earnings | 626,789 | 553,584 |
Accumulated other comprehensive loss | (29,124) | (7,127) |
Stockholders' equity attributable to j2 Global, Inc. | 890,208 | 820,235 |
Stockholders' Equity Attributable to Noncontrolling Interest | 0 | 0 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 890,208 | 820,235 |
Total liabilities and stockholders' equity | 1,792,868 | 1,705,202 |
Series A Preferred Stock [Member] | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Preferred stock, $0.01 par value | 0 | 0 |
Series B Preferred Stock [Member] | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Preferred stock, $0.01 par value | $ 0 | $ 0 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) Statement - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Allowance for Doubtful Accounts Receivable, Current | $ 4,261 | $ 3,685 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 95,000,000 | 95,000,000 |
Common Stock, Shares, Issued | 47,950,677 | 47,409,514 |
Common Stock, Shares, Outstanding | 47,950,677 | 47,409,514 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Treasury Stock, Shares | 0 | 0 |
Series A Preferred Stock [Member] | ||
Preferred Stock, Shares Authorized | 6,000 | 6,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Series B Preferred Stock [Member] | ||
Preferred Stock, Shares Authorized | 20,000 | 20,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allocated Share-based Compensation Expense | $ 11,793 | $ 8,908 | $ 9,720 |
Revenues: | |||
Revenues | 720,815 | 599,030 | 520,801 |
Cost of revenues (1) | 122,958 | 105,989 | 86,893 |
Gross profit | 597,857 | 493,041 | 433,908 |
Operating expenses: | |||
Sales and marketing (1) | 159,009 | 141,967 | 131,317 |
Research, development and engineering (1) | 34,329 | 30,680 | 25,485 |
General and administrative (1) | 205,137 | 134,188 | 101,683 |
Total operating expenses | 398,475 | 306,835 | 258,485 |
Operating earnings | 199,382 | 186,206 | 175,423 |
Interest expense, net | 42,458 | 31,204 | 21,254 |
Other expense (income), net | 5 | (165) | 11,472 |
Income before income taxes | 156,919 | 155,167 | 142,697 |
Income tax expense | 23,283 | 29,840 | 35,175 |
Net income attributable to j2 Global, Inc. common shareholders | 133,636 | 124,336 | 107,522 |
Net income | 133,636 | 125,327 | 107,522 |
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | 0 | |
Preferred Stock Redemption Premium | $ 0 | $ (991) | $ 0 |
Net earnings per common share: | |||
Basic | $ 2.76 | $ 2.60 | $ 2.31 |
Diluted | $ 2.73 | $ 2.58 | $ 2.28 |
Weighted average shares outstanding: | |||
Basic | 47,627,853 | 46,778,015 | 45,548,767 |
Diluted | 48,087,760 | 47,106,538 | 46,140,019 |
Cash dividends paid per common share | $ 1.22 | $ 1.10 | $ 0.98 |
Cost of Sales [Member] | |||
Allocated Share-based Compensation Expense | $ 373 | $ 345 | $ 756 |
Selling and Marketing Expense [Member] | |||
Allocated Share-based Compensation Expense | 2,435 | 1,944 | 1,855 |
Research and Development Expense [Member] | |||
Allocated Share-based Compensation Expense | 863 | 721 | 434 |
General and Administrative Expense [Member] | |||
Allocated Share-based Compensation Expense | $ 8,122 | $ 5,898 | $ 6,675 |
Consolidated Statement Of Compr
Consolidated Statement Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net income | $ 35,467 | $ 37,375 | $ 38,916 | $ 21,877 | $ 32,754 | $ 28,759 | $ 35,049 | $ 28,765 | $ 133,636 | $ 125,327 | $ 107,522 |
Other comprehensive income, net of tax: | |||||||||||
Foreign currency translation adjustment, net of tax expense (benefit) of zero, zero and ($122) for the year ended 2015, 2014 and 2013, respectively | (15,058) | (14,694) | 78 | ||||||||
Unrealized gain (loss) on available-for-sale investments, net of tax expense (benefit) of ($4,556), $2,757 and $2,447 for the year ended 2015, 2014 and 2013, respectively | (6,939) | 3,332 | 4,245 | ||||||||
Other Comprehensive Income, net of tax | (21,997) | (11,362) | 4,323 | ||||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ 111,639 | 113,965 | 111,845 | ||||||||
Net Income (Loss) Attributable to Noncontrolling Interest | $ 0 | 0 | |||||||||
Comprehensive income attributable to j2 Global, Inc. | $ 111,845 |
Consolidated Statement of Comp6
Consolidated Statement of Comprehensive Income (Parenthetical) Statement - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | $ 0 | $ 0 | $ (122) |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | $ (4,556) | $ 2,757 | $ 2,447 |
Consolidated Statement Of Cash
Consolidated Statement Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net income | $ 133,636 | $ 125,327 | $ 107,522 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 93,213 | 62,953 | 39,788 |
Amortization of discount or premium of investments | 1,207 | 1,334 | 1,796 |
Amortization of financing costs and discounts | 9,105 | 5,045 | 613 |
Share-based compensation | 11,793 | 8,908 | 9,720 |
Excess tax benefits from share-based compensation | (4,486) | (5,512) | (2,695) |
Provision for doubtful accounts | 6,872 | 4,702 | 3,135 |
Deferred income taxes | (17,083) | (10,033) | 250 |
Loss on disposal of fixed assets | 0 | 0 | 8 |
(Gain) loss on available-for-sale investments | (549) | (90) | 66 |
Loss on extinguishment of debt and related interest expense | 0 | 0 | 14,437 |
Decrease (increase) in: | |||
Accounts receivable | (18,508) | (11,078) | (9,588) |
Prepaid expenses and other current assets | 1,461 | (3,212) | 149 |
Other assets | (602) | (42) | 168 |
(Decrease) increase in: | |||
Accounts payable and accrued expenses | 8,757 | (5,447) | 9,126 |
Income taxes payable | 3,578 | 10,797 | 667 |
Deferred revenue | (3,480) | (711) | 12,368 |
Liability for uncertain tax positions | (5,718) | (6,313) | 6,186 |
Other | 9,865 | 603 | (392) |
Net cash provided by operating activities | 229,061 | 177,231 | 193,324 |
Cash flows from investing activities: | |||
Maturity of certificates of deposit | 65 | 14,520 | 42,615 |
Purchase of certificates of deposit | (62) | (65) | (22,071) |
Maturity of available-for-sale investments | 121,687 | 110,363 | 140,126 |
Purchase of available-for-sale investments | (135,832) | (138,452) | (168,901) |
Purchases of property and equipment | (17,297) | (11,829) | (18,627) |
Proceeds from sale of assets | 0 | 608 | 1 |
Acquisition of businesses, net of cash received | (302,809) | (245,278) | (126,341) |
Purchases of intangible assets | (1,455) | (5,336) | (14,200) |
Net cash used in investing activities | (335,703) | (275,469) | (167,398) |
Cash flows from financing activities: | |||
Issuance of long-term debt | 0 | 402,500 | 0 |
Debt issuance costs | 0 | (11,991) | (47) |
Repurchases of common stock and restricted stock | (3,674) | (5,663) | (4,587) |
Issuance of common stock under employee stock purchase plan | 260 | 265 | 213 |
Exercise of stock options | 4,958 | 6,621 | 13,604 |
Dividends paid | (58,826) | (52,269) | (45,134) |
Excess tax benefits from share-based compensation | 4,486 | 5,512 | 2,695 |
PaymentsOfDeferredConsiderationRelatedToAcquisition | (14,271) | (16,512) | 0 |
Proceeds from (Payments for) Other Financing Activities | (296) | (933) | (2,437) |
Net cash (used in) provided by financing activities | (67,363) | 327,530 | (35,693) |
Effect of exchange rate changes on cash and cash equivalents | (4,128) | (3,430) | (1,112) |
Net change in cash and cash equivalents | (178,133) | 225,862 | (10,879) |
Cash and cash equivalents | 255,530 | 433,663 | 207,801 |
Cash and cash equivalents at end of period | $ 255,530 | $ 433,663 | $ 207,801 |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholders' Equity Statement - USD ($) $ in Thousands | Total | Series A Preferred Stock [Member] | Series B Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Shares, Outstanding | 45,094,191 | 0 | ||||||
Stockholders' equity attributable to j2 Global, Inc. | $ 594,695 | $ 451 | $ 169,542 | $ 0 | $ 424,790 | $ (88) | ||
Stockholders' Equity Attributable to Noncontrolling Interest | (100) | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 594,595 | |||||||
Net income | 107,522 | |||||||
Net earnings attributable to j2 Global, Inc. common shareholders | 107,522 | 107,522 | ||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | |||||||
Comprehensive income attributable to j2 Global, Inc. | 111,845 | 4,323 | ||||||
Dividends, Common Stock, Cash | (45,135) | |||||||
Preferred Stock, Accretion of Redemption Discount | 0 | |||||||
Stock Issued During Period, Shares, New Issues | 5,064 | 4,155 | 234,025 | |||||
Stock Issued During Period, Value, New Issues | $ 0 | $ 0 | $ 2 | |||||
Preferred Stock Redemption Premium | 0 | |||||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | $ 100 | 22,900 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 569,204 | 569,204 | ||||||
Stock Issued During Period, Value, Stock Options Exercised | $ 6 | 13,598 | ||||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 5,402 | |||||||
Stock Issued During Period, Value, Employee Stock Purchase Plan | $ 0 | 213 | ||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 308,082 | |||||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | $ (3) | (3) | ||||||
Common Shares Repurchased And Retired During Period Shares | (29,950) | |||||||
Common Shares Repurchased And Retired During Period Value | $ 0 | (684) | (2,395) | |||||
Stock Repurchased and Retired During Period, Shares | (75,878) | |||||||
Stock Repurchased and Retired During Period, Value | $ (1) | (1,506) | ||||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 9,585 | 68 | ||||||
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | 3,227 | |||||||
Shares, Outstanding | 46,105,076 | 0 | ||||||
Stockholders' equity attributable to j2 Global, Inc. | $ 706,418 | $ 461 | 216,872 | $ 0 | 484,850 | 4,235 | ||
Stockholders' Equity Attributable to Noncontrolling Interest | 0 | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 706,418 | |||||||
Additional Paid in Capital, Preferred Stock | $ 4,774 | $ 6,575 | ||||||
Net income | 125,327 | 125,327 | ||||||
Net earnings attributable to j2 Global, Inc. common shareholders | 124,336 | |||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | |||||||
Comprehensive income attributable to j2 Global, Inc. | (11,362) | |||||||
Dividends, Common Stock, Cash | (52,269) | |||||||
Preferred Stock, Accretion of Redemption Discount | $ 0 | |||||||
Stock Issued During Period, Shares, New Issues | Extinguishment of Series A Preferred Stock [Member] | 235,665 | |||||||
Stock Issued During Period, Shares, New Issues | Exchange of Series B Preferred Stock [Member] | 177,573 | |||||||
Stock Issued During Period, Value, New Issues | Extinguishment of Series A Preferred Stock [Member] | $ 2 | |||||||
Stock Issued During Period, Value, New Issues | Exchange of Series B Preferred Stock [Member] | 2 | |||||||
Stock Repurchased | (5,064) | (4,155) | ||||||
Adjustments to Additional Paid in Capital, Other | $ (4,774) | $ (6,575) | ||||||
Preferred Stock Redemption Premium | $ (991) | (991) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 433,008 | 433,008 | ||||||
Stock Issued During Period, Value, Stock Options Exercised | $ 4 | 6,617 | ||||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 5,735 | |||||||
Stock Issued During Period, Value, Employee Stock Purchase Plan | $ 0 | 265 | ||||||
Adjustments to Additional Paid in Capital, Equity Component of Convertible Debt | 36,478 | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 565,713 | |||||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | $ (6) | (6) | ||||||
Common Shares Repurchased And Retired During Period Shares | (113,256) | |||||||
Common Shares Repurchased And Retired During Period Value | $ (1) | (2,245) | (3,417) | |||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 8,824 | 84 | ||||||
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | 5,512 | |||||||
Shares, Outstanding | 47,409,514 | 0 | ||||||
Stockholders' equity attributable to j2 Global, Inc. | $ 820,235 | $ 474 | 273,304 | $ 0 | 553,584 | (7,127) | ||
Stockholders' Equity Attributable to Noncontrolling Interest | 0 | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 820,235 | |||||||
Additional paid-in capital | 273,304 | |||||||
Net income | 133,636 | 133,636 | ||||||
Net earnings attributable to j2 Global, Inc. common shareholders | $ 133,636 | |||||||
Comprehensive income attributable to j2 Global, Inc. | (21,997) | |||||||
Dividends, Common Stock, Cash | (58,826) | |||||||
Stock Issued During Period, Shares, New Issues | Exchange of Series B Preferred Stock [Member] | 91,734 | |||||||
Stock Issued During Period, Value, New Issues | Exchange of Series B Preferred Stock [Member] | $ 1 | |||||||
Stock Repurchased | (2,100,000) | |||||||
Preferred Stock Redemption Premium | $ 0 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 221,221 | 221,221 | ||||||
Stock Issued During Period, Value, Stock Options Exercised | $ 2 | 4,956 | ||||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 4,020 | |||||||
Stock Issued During Period, Value, Employee Stock Purchase Plan | $ 0 | 260 | ||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 278,092 | |||||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | $ (3) | (3) | ||||||
Common Shares Repurchased And Retired During Period Shares | (53,904) | |||||||
Common Shares Repurchased And Retired During Period Value | $ (1) | (1,718) | ||||||
Stock Repurchased and Retired During Period, Value | (1,955) | |||||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 11,017 | 113 | ||||||
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | 4,486 | |||||||
Shares, Outstanding | 47,950,677 | 0 | ||||||
Stockholders' equity attributable to j2 Global, Inc. | $ 890,208 | $ 479 | $ 292,064 | $ 0 | $ 626,789 | $ (29,124) | ||
Stockholders' Equity Attributable to Noncontrolling Interest | 0 | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 890,208 | |||||||
Additional paid-in capital | $ 292,064 |
The Company
The Company | 12 Months Ended |
Dec. 31, 2015 | |
The Company [Abstract] | |
Nature of Operations [Text Block] | The Company j2 Global, Inc., together with its subsidiaries (“j2 Global” or the "Company"), is a leading provider of Internet services. Through its Business Cloud Services Division, the Company provides cloud services to businesses of all sizes, from individuals to enterprises, and licenses its intellectual property ("IP") to third parties. The Digital Media Division specializes in the technology and gaming markets, reaching in-market buyers and influencers in both the consumer and business-to-business space. |
Basis Of Presentation
Basis Of Presentation | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies [Text Block] | Basis of Presentation and Summary of Significant Accounting Policies (a) Principles of Consolidation The accompanying consolidated financial statements include the accounts of j2 Global and its direct and indirect wholly-owned and less-than-wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Holding Company Reorganization On June 10, 2014, j2 Global, Inc., a Delaware corporation, completed a corporate reorganization (the “Holding Company Reorganization”) pursuant to which j2 Global, Inc. (the “Predecessor”), merged with j2 Merger Sub, Inc., a Delaware corporation and an indirect, wholly owned subsidiary of the Predecessor, and changed its name to “j2 Cloud Services, Inc.” The Predecessor surviving the merger became a direct, wholly owned subsidiary of a new public holding company, j2 Global Holdings, Inc. (the “Holding Company”), which in connection with the merger changed its name to j2 Global, Inc. At the effective time of the merger and in connection with the Holding Company Reorganization, all outstanding shares of common stock and preferred stock of the Predecessor were automatically converted into identical shares of common stock or preferred stock, as applicable, of the Holding Company on a one-for-one basis, and the Predecessor’s existing stockholders and other equity holders became stockholders and equity holders, as applicable, of the Holding Company in the same amounts and percentages as they were in the Predecessor prior to the Holding Company Reorganization. (b) Use of Estimates The preparation of consolidated financial statements in accordance with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, including judgments about investment classifications, and the reported amounts of net revenue and expenses during the reporting period. We believe that our most significant estimates are those related to valuation and impairment of marketable securities, valuation of assets acquired and liabilities assumed in connection with business combinations, long-lived and intangible asset impairment, contingent consideration, income taxes and contingencies and allowance for doubtful accounts. On an ongoing basis, management evaluates its estimates based on historical experience and on various other factors that the Company believes to be reasonable under the circumstances. Actual results could materially differ from those estimates. (c) Allowances for Doubtful Accounts j2 Global reserves for receivables it may not be able to collect. These reserves for the Company's Business Cloud Services are typically driven by the volume of credit card declines and past due invoices and are based on historical experience as well as an evaluation of current market conditions. These reserves for the Company's Digital Media segment are typically driven by past due invoices and are based on historical experience. On an ongoing basis, management evaluates the adequacy of these reserves. (d) Revenue Recognition Business Cloud Services The Company's Business Cloud Services revenues substantially consist of monthly recurring subscription and usage-based fees, which are primarily paid in advance by credit card. In accordance with GAAP, the Company recognizes revenue when persuasive evidence of an arrangement exists, services have been provided, the sales price is fixed and determinable and collection is probable. The Company defers the portions of monthly, quarterly, semi-annually and annually recurring subscription and usage-based fees collected in advance and recognizes them in the period earned. Additionally, the Company defers and recognizes subscriber activation fees and related direct incremental costs over a subscriber's estimated useful life. j2 Global's Business Cloud Services also include patent license revenues generated under license agreements that provide for the payment of contractually determined fully paid-up or royalty-bearing license fees to j2 Global in exchange for the grant of non-exclusive, retroactive and future licenses to our intellectual property, including patented technology. Patent revenues may also consist of revenues generated from the sale of patents. Patent license revenues are recognized when earned over the term of the license agreements. With regard to fully paid-up license arrangements, the Company recognizes as revenue in the period the license agreement is executed the portion of the payment attributable to past use of the intellectual property and amortizes the remaining portion of such payments on a straight-line basis, or pro-rata revenue basis, as appropriate over the life of the licensed patent(s). With regard to royalty-bearing license arrangements, the Company recognizes revenues of license fees earned during the applicable period. With regard to patent sales, the Company recognizes as revenue in the period of the sale the amount of the purchase price over the carrying value of the patent(s) sold. The Business Cloud Services business also generates revenues by licensing certain technology to third parties. These licensing revenues are recognized when earned in accordance with the terms of the underlying agreement. Generally, revenue is recognized as the third party uses the licensed technology over the period. Digital Media The Company's Digital Media revenues primarily consist of revenues generated from the sale of advertising campaigns that are targeted to the Company's proprietary websites and to those websites operated by third parties that are part of the Digital Media business's advertising network. Revenues for these advertising campaigns are recognized as earned either when an ad is placed for viewing by a visitor to the appropriate web page or when the visitor "clicks through" on the ad, depending upon the terms with the individual advertiser. Revenues for Digital Media business-to-business operations consist of lead-generation campaigns for IT vendors and are recognized as earned when the Company delivers the qualified leads to the customer. j2 Global also generates Digital Media revenues through the license of certain assets to clients, for the clients' use in their own promotional materials or otherwise. Such assets may include logos, editorial reviews, or other copyrighted material. Revenues under such license agreements are recognized when the assets are delivered to the client. Also, Digital Media revenues are generated through the license of certain speed testing technology which is recognized when delivered to the client through providing data services primarily to Internet Service Providers ("ISPs") and wireless carriers which is recognized as earned over the term of the access period. The Digital Media business also generates other types of revenues, including business listing fees, subscriptions to online publications, and from other sources. Such other revenues are recognized as earned. The Company determines whether Digital Media revenue should be reported on a gross or net basis by assessing whether the Company is acting as the principal or an agent in the transaction. If the Company is acting as the principal in a transaction, the Company reports revenue on a gross basis. If the Company is acting as an agent in a transaction, the Company reports revenue on a net basis. In determining whether the Company acts as the principal or an agent, the Company follows the accounting guidance for principal-agent considerations and the Company places the most weight on three factors: whether or not the Company (i) is the primary obligor in the arrangement, (ii) has latitude in determining pricing and (iii) bears credit risk. The Company records revenue on a gross basis with respect to revenue generated (i) by the Company serving online display and video advertising across its owned-and-operated web properties, on third party sites or on unaffiliated advertising networks, (ii) through the Company’s lead-generation business and (iii) through the Company’s Digital Media licensing program. The Company records revenue on a net basis with respect to revenue paid to the Company by certain third-party advertising networks who serve online display and video advertising across the Company’s owned-and-operated web properties and certain third party sites. (e) Fair Value Measurements j2 Global complies with the provisions of Financial Accounting Standards Board (“FASB”) ASC Topic No. 820, Fair Value Measurements and Disclosures (“ASC 820”), in measuring fair value and in disclosing fair value measurements. ASC 820 provides a framework for measuring fair value and expands the disclosures required for fair value measurements of financial and non-financial assets and liabilities. As of December 31, 2015 , the carrying value of cash and cash equivalents, short-term investments, accounts receivable, interest receivable, accounts payable, accrued expenses, interest payable, customer deposits and long-term debt are reflected in the financial statements at cost. With the exception of long-term debt, cost approximates fair value due to the short-term nature of such instruments. The fair value of the Company's outstanding debt was determined using the quoted market prices of debt instruments with similar terms and maturities, if available. As of the same dates, the carrying value of other long-term liabilities approximated fair value as the related interest rates approximate rates currently available to j2 Global. (f) Cash and Cash Equivalents j2 Global considers cash equivalents to be only those investments that are highly liquid, readily convertible to cash and with maturities of three months or less at the purchase date. (g) Investments j2 Global accounts for its investments in debt and equity securities in accordance with FASB ASC Topic No. 320, Investments - Debt and Equity Securities (“ASC 320”). Debt investments are typically comprised of corporate and governmental debt securities. Equity securities recorded as available-for-sale represent strategic equity investments. j2 Global determines the appropriate classification of its investments at the time of acquisition and evaluates such determination at each balance sheet date. Held-to-maturity securities are those investments which the Company has the ability and intent to hold until maturity and are recorded at amortized cost. Available-for-sale securities are those investments j2 Global does not intend to hold to maturity and can be sold. Available-for-sale securities are carried at fair value with unrealized gains and losses included in other comprehensive income. Trading securities are carried at fair value, with unrealized gains and losses included in investment income. Securities are accounted for on a specific identification basis, average cost method or other method, as appropriate. (h) Debt Issuance Costs and Debt Discount j2 Global capitalizes costs incurred with borrowing and issuance of debt securities and records debt discounts as a reduction to the debt amount. j2 Global capitalized third-party costs incurred in connection with its sale of senior unsecured notes within long-term other assets and recorded the original purchase discount as a reduction to such notes (see Note 8 - Long Term Debt). These costs and discounts are amortized and included in interest expense over the life of the borrowing or term of the credit facility using the interest method. (i) Derivative Instruments j2 Global currently holds an embedded derivative instrument related to contingent interest in connection with its 3.25% Convertible Notes issued on June 10, 2014. This embedded derivative instrument is carried at fair value with changes recorded to interest expense (see Note 5 - Fair Value Measurements). (j) Concentration of Credit Risk All of the Company’s cash, cash equivalents and marketable securities are invested at major financial institutions primarily within the United States, United Kingdom and Ireland. These institutions are required to invest the Company’s cash in accordance with the Company’s investment policy with the principal objectives being preservation of capital, fulfillment of liquidity needs and above market returns commensurate with preservation of capital. The Company’s investment policy also requires that investments in marketable securities be in only highly rated instruments, with limitations on investing in securities of any single issuer. However, these investments are not insured against the possibility of a total or near complete loss of earnings or principal and are inherently subject to the credit risk related to the continued credit worthiness of the underlying issuer and general credit market risks. At December 31, 2015 , the Company’s cash and cash equivalents were maintained in accounts that are insured up to the limit determined by the applicable governmental agency. The Company's deposits held in qualifying financial institutions in Ireland are fully insured through March 28, 2018 to the extent on deposit prior to March 28, 2013. With respect to the Company's deposits with financial institutions in other jurisdictions, the insured amount held in other institutions is immaterial in comparison to the total amount of the Company’s cash and cash equivalents held by these institutions which is not insured. These institutions are primarily in the United States and United Kingdom, however, the Company has accounts within several other countries including Australia, Austria, China, France, Germany, Italy, Japan, New Zealand, the Netherlands and Poland. (k) Foreign Currency Some of j2 Global's foreign subsidiaries use the local currency of their respective countries as their functional currency. Assets and liabilities are translated at exchange rates prevailing at the balance sheet dates. Revenues, costs and expenses are translated into U.S. Dollars at average exchange rates for the period. Gains and losses resulting from translation are recorded as a component of accumulated other comprehensive income/(loss). Net translation gain/(loss) was $(15.1) million , $(14.7) million and $0.1 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Realized gains and losses from foreign currency transactions are recognized within other expense (income), net. Net transaction gain/(loss) was $(0.1) million , $(0.1) million and $0.4 million for the years ended December 31, 2015, 2014 and 2013, respectively. (l) Property and Equipment Property and equipment are stated at cost. Equipment under capital leases is stated at the present value of the minimum lease payments. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. The estimated useful lives of property and equipment range from one to 10 years. Fixtures, which are comprised primarily of leasehold improvements and equipment under capital leases, are amortized on a straight-line basis over their estimated useful lives or for leasehold improvements, the related lease term, if less. The Company has capitalized certain internal use software and website development costs which are included in property and equipment. The estimated useful life of costs capitalized is evaluated for each specific project and ranges from 1 to 5 years. (m) Long-Lived Assets j2 Global accounts for long-lived assets, which include property and equipment and identifiable intangible assets with finite useful lives (subject to amortization), in accordance with the provisions of FASB ASC Topic No. 360, Property, Plant, and Equipment (“ASC 360”), which requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability is measured by comparing the carrying amount of an asset to the expected undiscounted future net cash flows generated by the asset. If it is determined that the asset may not be recoverable, and if the carrying amount of an asset exceeds its estimated fair value, an impairment charge is recognized to the extent of the difference. j2 Global assessed whether events or changes in circumstances have occurred that potentially indicate the carrying amount of long-lived assets may not be recoverable. No impairment was recorded in fiscal year 2015, 2014 and 2013. (n) Goodwill and Intangible Assets Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in a business combination. Intangible assets resulting from the acquisitions of entities accounted for using the purchase method of accounting are recorded at the estimated fair value of the assets acquired. Identifiable intangible assets are comprised of purchased customer relationships, trademarks and trade names, developed technologies and other intangible assets. Intangible assets subject to amortization are amortized over the period of estimated economic benefit ranging from 1 to 20 years. In accordance with FASB ASC Topic No. 350, Intangibles - Goodwill and Other (“ASC 350”), goodwill and other intangible assets with indefinite lives are not amortized but tested annually for impairment or more frequently if j2 Global believes indicators of impairment exist. In connection with the annual impairment test for goodwill, the Company has the option to perform a qualitative assessment in determining whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company determines that it was more likely than not that the fair value of the reporting unit is less than its carrying amount, then it performs the impairment test upon goodwill. The impairment test involves a two-step process. The first step involves comparing the fair values of the applicable reporting units with their aggregate carrying values, including goodwill. The Company generally determines the fair value of its reporting units using the income approach methodology of valuation. If the carrying value of a reporting unit exceeds the reporting unit's fair value, j2 Global performs the second step of the test to determine the amount of impairment loss. The second step involves measuring the impairment by comparing the implied fair values of the affected reporting unit's goodwill and intangible assets with the respective carrying values. In connection with the annual impairment test for indefinite-lived intangible assets, we have the option to perform a qualitative assessment in determining whether it is more likely than not that the fair value is less than its carrying amount, then we perform the impairment test upon indefinite-lived intangible assets. The impairment testing for indefinite-lived intangible assets consists of comparing the carrying values to the fair values and an impairment loss is recorded if the carrying value exceeds the fair value. j2 Global completed the required impairment review at the end of 2015, 2014 and 2013 and concluded that there were no impairments. Consequently, no impairment charges were recorded. (o) Contingent Consideration j2 Global measures the contingent earn-out liabilities at fair value on a recurring basis using significant unobservable inputs classified within Level 3 of the fair value hierarchy (see Note 5 - Fair Value Measurements). The Company may use various valuation techniques depending on the terms and conditions of the contingent consideration including a Monte-Carlo simulation. This simulation uses probability distribution for each significant input to produce hundreds or thousands of possible outcomes and the results are analyzed to determine probabilities of different outcomes occurring. Significant increases or decreases to these inputs in isolation would result in a significantly higher or lower liability with a higher liability capped by the contractual maximum of the contingent earn-out obligation. Ultimately, the liability will be equivalent to the amount paid, and the difference between the fair value estimate and amount paid will be recorded in earnings. The amount paid that is less than or equal to the liability on the acquisition date is reflected as cash used in financing activities in our consolidated statements of cash flows. Any amount paid in excess of the liability on the acquisition date is reflected as cash used in operating activities. j2 Global reviews and re-assess the estimated fair value of contingent consideration on a quarterly basis, and the updated fair value could differ materially from the initial estimates. Changes in the estimated fair value of our contingent earn-out liabilities related to the time component of the present value calculation are reported in interest expense. Adjustments to the estimated fair value related to changes in all other unobservable inputs are reported in operating income. (p) Income Taxes j2 Global's income is subject to taxation in both the U.S. and numerous foreign jurisdictions. Significant judgment is required in evaluating the Company's tax positions and determining its provision for income taxes. During the ordinary course of business, there are many transactions and calculations for which the ultimate tax determination is uncertain. j2 Global establishes reserves for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. These reserves for tax contingencies are established when the Company believes that certain positions might be challenged despite the Company's belief that its tax return positions are fully supportable. j2 Global adjusts these reserves in light of changing facts and circumstances, such as the outcome of a tax audit or lapse of a statute of limitations. The provision for income taxes includes the impact of reserve provisions and changes to reserves that are considered appropriate. j2 Global accounts for income taxes in accordance with FASB ASC Topic No. 740, Income Taxes (“ASC 740”), which requires that deferred tax assets and liabilities be recognized using enacted tax rates for the effect of temporary differences between the book and tax basis of recorded assets and liabilities. ASC 740 also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some or all of the net deferred tax assets will not be realized. The valuation allowance is reviewed quarterly based upon the facts and circumstances known at the time. In assessing this valuation allowance, j2 Global reviews historical and future expected operating results and other factors, including its recent cumulative earnings experience, expectations of future taxable income by taxing jurisdiction and the carryforward periods available for tax reporting purposes, to determine whether it is more likely than not that deferred tax assets are realizable. ASC 740 provides guidance on the minimum threshold that an uncertain income tax benefit is required to meet before it can be recognized in the financial statements and applies to all income tax positions taken by a company. ASC 740 contains a two-step approach to recognizing and measuring uncertain income tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. If it is not more likely than not that the benefit will be sustained on its technical merits, no benefit will be recorded. Uncertain income tax positions that relate only to timing of when an item is included on a tax return are considered to have met the recognition threshold. j2 Global recognized accrued interest and penalties related to uncertain income tax positions in income tax expense on its consolidated statement of income. (q) Share-Based Compensation j2 Global accounts for share-based awards in accordance with the provisions of FASB ASC Topic No. 718, Compensation - Stock Compensation (“ASC 718”). Accordingly, j2 Global measures share-based compensation expense at the grant date, based on the fair value of the award, and recognizes the expense over the employee's requisite service period using the straight-line method. The measurement of share-based compensation expense is based on several criteria, including but not limited to the valuation model used and associated input factors, such as expected term of the award, stock price volatility, risk free interest rate, dividend rate and award cancellation rate. These inputs are subjective and are determined using management's judgment. If differences arise between the assumptions used in determining share-based compensation expense and the actual factors, which become known over time, j2 Global may change the input factors used in determining future share-based compensation expense. Any such changes could materially impact the Company's results of operations in the period in which the changes are made and in periods thereafter. The Company estimates the expected term based upon the historical exercise behavior of our employees. j2 Global accounts for option grants to non-employees in accordance with FASB ASC Topic No. 505, Equity, whereby the fair value of such options is determined using the Black-Scholes option pricing model at the earlier of the date at which the non-employee's performance is complete or a performance commitment is reached. (r) Earnings Per Common Share EPS is calculated pursuant to the two-class method as defined in ASC Topic No. 260, Earnings per Share (“ASC 260”), which specifies that all outstanding unvested share-based payment awards that contain rights to nonforfeitable dividends or dividend equivalents are considered participating securities and should be included in the computation of EPS pursuant to the two-class method. Basic EPS is calculated by dividing net distributed and undistributed earnings allocated to common shareholders, excluding participating securities and the net income attributable to noncontrolling interest, by the weighted-average number of common shares outstanding. The Company's participating securities consist of its unvested share-based payment awards that contain rights to nonforfeitable dividends or dividend equivalents. Diluted EPS includes the determinants of basic EPS and, in addition, reflects the impact of other potentially dilutive shares outstanding during the period. The dilutive effect of participating securities is calculated under the more dilutive of either the treasury method or the two-class method. (s) Research, Development and Engineering Research, development and engineering costs are expensed as incurred. Costs for software development incurred subsequent to establishing technological feasibility, in the form of a working model, are capitalized and amortized over their estimated useful lives. To date, software development costs incurred after technological feasibility has been established have not been material. (t) Segment Reporting FASB ASC Topic No. 280, Segment Reporting (“ASC 280”), establishes standards for the way that public business enterprises report information about operating segments in annual consolidated financial statements and requires that those enterprises report selected information about operating segments in interim financial reports. ASC 280 also establishes standards for related disclosures about products and services, geographic areas and major customers. As a result of the acquisition of Ziff Davis, Inc., the Company operates as two segments: (1) Business Cloud Services and (2) Digital Media. (u) Advertising Costs Advertising costs are expensed as incurred. Advertising costs for the year ended December 31, 2015, 2014 and 2013 was $63.5 million , $60.5 million and $55.4 million , respectively. (v) Sales Taxes The Company may collect sales taxes from certain customers which are remitted to governmental authorities as required and are excluded from revenues. (w) Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, as a new Topic, Accounting Standards Codification (ASC) Topic 606. The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date, which deferred the effective date of the new revenue standard for periods beginning after December 15, 2016 to December 15, 2017, with early adoption permitted but not earlier than the original effective date. This ASU must be applied retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The Company is continuing to evaluate the effect and methodology of adopting this new accounting guidance upon the Company's results of operations, cash flows and financial position. In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties About an Entity's Ability to Continue as a Going Concern. The new standard provides guidance around management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The adoption of this standard is not expected to have a material impact on our financial statements. In November 2014, the FASB issued ASU No. 2014-16, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share is More Akin to Debt or to Equity, which clarifies how current guidance should be interpreted in evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. Specifically, the amendments clarify that an entity should consider all relevant terms and features, including the embedded derivative feature being evaluated for bifurcation, in evaluating the nature of the host contract. The assessment of the substance of the relevant terms and features should incorporate a consideration of: (1) the characteristics of the terms and features themselves; (2) the circumstances under which the hybrid financial instrument was issued or acquired; and (3) the potential outcomes of the hybrid financial instrument, as well as the likelihood of those potential outcomes. The amendments in this ASU apply to all entities that are issuers of, or investors in, hybrid financial instruments that are issued in the form of a share. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. Early adoption is permitted. The Company is currently evaluating the impact of adoption on our financial statements and related disclosures. In January 2015, the FASB issued ASU No. 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on our financial statements. In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis. The amendments in this ASU provide guidance which changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. The amendments in this ASU are effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. The adoption of this standard is not expected to have a material i |
Business Acquisition
Business Acquisition | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Business Acquisition | Business Acquisitions The Company uses acquisitions as a strategy to grow its customer base by increasing its presence in new and existing markets, expand and diversify its service offerings, enhance its technology, acquire skilled personnel and to enter into other jurisdictions. The Company completed the following acquisitions during the year ended December 31, 2015, paying the purchase price in cash for each transaction: (a) a share purchase of the entire issued share capital of Firstway, an Ireland-based distributor of FaxBOX® digital fax services; (b) an asset purchase of Nuvotera (formerly known as Spam Soap), a California-based supplier of email security; (c) an asset purchase of EmailDirect, a California-based provider of email marketing services; (d) an asset purchase of SugarSync®, Inc., a California-based provider of online file backup, synchronization and sharing assets; (e) an asset purchase of Popfax, a France-based global provider of internet fax services; (f) a stock purchase of the entire capital stock of Salesify, a California-based based provider of lead generation solutions; (g) an asset purchase of LiveVault®, a California-based global provider of data backup and recovery services; (h) a membership interest purchase of the entire units of Offers.com, based in Texas and is an online marketplace connecting millions of consumers with discounts from thousands of leading merchants; and (i) certain other immaterial acquisitions of fax, online data backup and application businesses. The consolidated statement of income, since the date of each acquisition, and balance sheet, as of December 31, 2015 , reflect the results of operations of all 2015 acquisitions. For the year ended December 31, 2015 , these acquisitions contributed $52.4 million to the Company's revenues. Net income contributed by these acquisitions was not separately identifiable due to j2 Global's integration activities. Total consideration for these transactions was $314.0 million , net of cash acquired and assumed liabilities and subject to certain post-closing adjustments. The following table summarizes the allocation of the purchase consideration for these acquisitions (in thousands): Assets and Liabilities Valuation Accounts receivable $ 14,935 Property and equipment 5,769 Other assets 1,415 Software 18,764 Trade name 22,602 Customer relationship 98,027 Other intangibles 1,873 Goodwill 172,593 Deferred revenue (10,764 ) Deferred tax liability (1,316 ) Other accrued liabilities (9,684 ) Capital lease (195 ) Total $ 314,019 During 2015, the purchase price accounting has been finalized for the following acquisitions: (i) Stay Secure, (ii) TestudoData LLC, (iii) Comendo A/S, (iv) Ookla, (v) Nuvotera, (vi) SugarSync®, (vii) Firstway, (viii) EmailDirect and (ix) other immaterial fax and online data backup businesses. The initial accounting for all other 2015 acquisitions is incomplete and subject to change, which may be significant. j2 Global has recorded provisional amounts which may be based upon past acquisitions with similar attributes for certain intangible assets (including trade names, software and customer relationships), preliminary acquisition date working capital and related tax items. In connection with the acquisition of Salesify, acquired on September 17, 2015, contingent consideration of up to an aggregate of $17.0 million may be payable upon achieving certain future income thresholds and was determined to have a fair value of $5.6 million which was recorded as an other long-term liability on the consolidated balance sheet at December 31, 2015. The fair value of the contingent consideration was determined using options-based valuation approaches based on various inputs, including discount rates, volatility and market risk which are not readily observable in the market, representing a Level 3 measurement within the fair value hierarchy (see Note 5 - Fair Value Measurements). As of December 31, 2015 , the Company has holdbacks of $23.2 million in connection with current year and prior years acquisitions recorded as current and long-term liabilities in the consolidated balance sheet. These holdbacks represent amounts to ensure that certain representations and warranties provided by the sellers are effective. During the year ended December 31, 2015, the Company recorded adjustments to prior period acquisitions primarily due to the finalization of the purchase accounting of Stay Secure and Comendo A/S in the Business Cloud Services segment which resulted in a net increase in goodwill in the amount of $10.9 million and a corresponding decrease in customer relationships, net. In addition, the Company recorded adjustments to the initial working capital related to prior period acquisitions and finalized the fair value of contingent consideration associated with the acquisition of Scene LLC ("Ookla") in the Digital Media segment, which resulted in a net decrease in goodwill in the amount of $(4.3) million (See Note 7 - Goodwill and Intangible Assets). Such adjustments had an immaterial impact to amortization expense within the consolidated statement of income for the year ended December 31, 2015. Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired and represents intangible assets that do not qualify for separate recognition. Goodwill recognized associated with these acquisitions during the year ended December 31, 2015 is $172.6 million , of which $143.3 million is expected to be deductible for income tax purposes. Pro Forma Financial Information for 2015 Acquisitions The following unaudited pro forma supplemental information is based on estimates and assumptions, which j2 Global believes are reasonable. However, this information is not necessarily indicative of the Company's consolidated financial position or results of income in future periods or the results that actually would have been realized had j2 Global and the acquired businesses been combined companies during the periods presented. These pro forma results exclude any savings or synergies that would have resulted from these business acquisitions had they occurred on January 1, 2014 and do not take into consideration the exiting of any acquired lines of business. This unaudited pro forma supplemental information includes incremental intangible asset amortization and other charges as a result of the acquisitions, net of the related tax effects. The supplemental information on an unaudited pro forma financial basis presents the combined results of j2 Global and its 2015 acquisitions as if each acquisition had occurred on January 1, 2014 (in thousands, except per share amounts): Year ended December 31, 2015 December 31, 2014 (unaudited) (unaudited) Revenues $ 823,904 $ 744,388 Net income attributable to j2 Global, Inc. common shareholders $ 159,408 $ 126,196 EPS - Basic $ 3.29 $ 2.64 EPS - Diluted $ 3.26 $ 2.62 2014 The Company completed the following acquisitions during the year ended December 31, 2014, paying the purchase price in cash for each transaction: (a) all of the shares of City Numbers, a Birmingham, UK-based worldwide provider of inbound local, national and international toll free phone numbers in over 80 countries; (b) all of the shares and certain assets of Securstore, an Iceland-based provider of cloud backup and recovery services for corporate and enterprise networks; (c) all of the shares of Livedrive®, a UK-based provider of online backup with added file sync features for professionals and individuals; (d) certain assets of Faxmate, a Brisbane-based provider of Internet fax; (e) all of the shares of Critical Software Ltd., a UK-based Email Security and Management company operating under the brand name iCritical TM ; (f) all of the shares of The Online Backup Company, a Scandinavian-based provider of cloud backup, disaster recovery and file sharing solutions for corporate and enterprise networks; (g) all of the shares and certain assets of eMedia Communications LLC, a provider of research to IT buyers and leads to IT vendors; (h) asset purchase of Contactology, Inc., a North Carolina-based provider of email marketing services; (i) certain assets of Back Up My Info!, a NY-based company focusing primarily on backup supporting small to mid-sized businesses in a variety of industries around the world; (j) certain assets of Web24, a Melbourne, Australia- based company which offers domain name, web hosting, dedicated or shared servers and related services primarily to small and mid-sized businesses in Australia and elsewhere; (k) all of the units of Excel Micro, a Philadelphia-based cloud email security and archiving solutions; (l) all of the units of Scene LLC (“Ookla”), a Washington-based leading provider of broadband and mobile speed testing; (m) all of the shares of NCSG Holding AB (“Stay Secure”), a Swedish-based provider of e-mail and web security services; (n) all of the shares of Comendo A/S, a Danish-based provider of e-mail security; (o) certain assets of TestudoData LLC, a Nevada-based provider of e-mail security; and (p) certain other immaterial acquisitions of fax, online data backup and application businesses. The consolidated statement of income, since the date of each acquisition, and balance sheet, as of December 31, 2014, reflect the results of operations of all 2014 acquisitions. For the year ended December 31, 2014 , these acquisitions contributed $51.9 million to the Company's revenues. Net income contributed by these acquisitions was not separately identifiable due to j2 Global's integration activities. Total consideration for these transactions was $300.2 million , net of cash acquired and assumed liabilities and subject to certain post-closing adjustments. The following table summarizes the allocation of the purchase consideration as follows (in thousands): Assets and Liabilities Valuation Accounts receivable $ 18,024 Property and equipment 10,022 Other assets 5,500 Deferred tax asset 419 Software 9,836 Trade name 28,192 Customer relationship 98,498 Other intangibles 2,121 Goodwill 184,837 Deferred revenue (29,182 ) Deferred tax liability (12,328 ) Other accrued liabilities (14,338 ) Capital lease (1,361 ) Total $ 300,240 Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired and represents intangible assets that do not qualify for separate recognition. Goodwill recognized associated with these acquisitions during the year ended December 31, 2014 is $184.8 million , of which $89.4 million is expected to be deductible for income tax purposes. Pro Forma Financial Information for 2014 Acquisitions The following unaudited pro forma supplemental information is based on estimates and assumptions, which j2 Global believes are reasonable. However, this information is not necessarily indicative of the Company's consolidated financial position or results of income in future periods or the results that actually would have been realized had j2 Global and the acquired businesses been combined companies during the period presented. These pro forma results exclude any savings or synergies that would have resulted from these business acquisitions had they occurred on January 1, 2013 and do not take into consideration the exiting of any acquired lines of business. This unaudited pro forma supplemental information includes incremental intangible asset amortization and other charges as a result of the acquisitions, net of the related tax effects. The supplemental information on an unaudited pro forma financial basis presents the combined results of j2 Global and its 2014 acquisitions as if each acquisition had occurred on January 1, 2013 (in thousands, except per share amounts): Years ended December 31, 2014 December 31, 2013 (unaudited) (unaudited) Revenues $ 672,701 $ 626,906 Net income attributable to j2 Global, Inc. common shareholders $ 119,773 $ 132,480 EPS - Basic $ 2.51 $ 2.85 EPS - Diluted $ 2.49 $ 2.81 2013 The Company acquired the following companies during year ended December 31, 2013, in each case for cash: (a) IGN Entertainment, Inc. ("IGN"), an online publisher of video games, entertainment and men's lifestyle content; (b) MetroFax, Inc., a provider of online faxing services and advanced features; (c) Backup Connect BV, an online backup provider based in the Netherlands; (d) NetShelter, the largest community of technology publishers dedicated to consumer electronics, computing and mobile communications; (e) Email Protection Agency Limited, a UK-based provider of email security, email management and network security services; (f) TechBargains.com, the leading deal aggregation website for electronic products; and (g) certain other immaterial share and asset acquisitions in the Business Cloud Services segment. The consolidated statement of income, since the date of the each acquisitions, and balance sheet as of December 31, 2013 reflect the results of operations of all 2013 acquisitions. For the year ended December 31, 2013, these acquisitions contributed $98.1 million to the Company's revenues. Net income contributed by these acquisitions was not separately identifiable due to j2 Global's integration activities. Total consideration for these transactions was $147.7 million , net of cash acquired and assumed liabilities and subject to certain post-closing adjustments. The following table summarizes the allocation of the purchase consideration as follows (in thousands): Assets and Liabilities Valuation Accounts receivable $ 24,658 Property and equipment 3,274 Other assets 2,703 Deferred tax asset 2,058 Software 3,031 Content 2,460 Trade name 18,581 Customer relationship 40,275 Advertiser relationship 11,770 Other intangibles 168 Goodwill 54,472 Deferred revenue (2,543 ) Other accrued liabilities (13,162 ) Total $ 147,745 Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired and represents intangible assets that do not qualify for separate recognition. Goodwill recognized associated with these acquisition during the year ended December 31, 2013 is $54.5 million , of which $36.6 million is expected to be deductible for income tax purposes. Pro Forma Financial Information for 2013 Acquisitions The following unaudited pro forma supplemental information is based on estimates and assumptions, which j2 Global believes are reasonable. However, this information is not necessarily indicative of the Company's consolidated financial position or results of income in future periods or the results that actually would have been realized had j2 Global and the acquired businesses been combined companies during the period presented. These pro forma results exclude any savings or synergies that would have resulted from these business acquisitions had they occurred on January 1 for the year ended December 31, 2012 and do not take into consideration the exiting of any acquired lines of business. This unaudited pro forma supplemental information includes incremental intangible asset amortization and other charges as a result of the acquisitions, net of the related tax effects. The supplemental information on an unaudited pro forma financial basis presents the combined results of j2 Global and its 2013 acquisitions as if each acquisition had occurred on January 1, 2012 (in thousands, except per share amounts): Years ended December 31, December 31, (unaudited) (unaudited) Revenues $ 545,952 $ 470,190 Net income attributable to j2 Global, Inc. common shareholders $ 108,600 $ 122,187 EPS - Basic $ 2.34 $ 2.64 EPS - Diluted $ 2.31 $ 2.62 |
Investments
Investments | 12 Months Ended |
Dec. 31, 2015 | |
Investments [Abstract] | |
Investments | Investments Short-term investments consist generally of corporate and governmental debt securities and certificates of deposits which are stated at fair market value. Realized gains and losses of short- and long-term investments are recorded using the specific identification method. The following table summarizes j2 Global’s debt securities designated as available-for-sale, classified by the contractual maturity date of the security (in thousands): December 31, December 31, 2014 Due within 1 year $ 56,940 $ 59,896 Due within more than 1 year but less than 5 years 78,248 60,178 Due within more than 5 years but less than 10 years — — Due 10 years or after 315 330 Total $ 135,503 $ 120,404 The following table summarizes the Company’s investments (in thousands): December 31, December 31, 2014 Available-for-sale $ 158,158 $ 156,649 Certificates of deposit 60 65 Total $ 158,218 $ 156,714 The following table summarizes the gross unrealized gains and losses and fair values for investments classified as available for sale as of December 31, 2015 and December 31, 2014 aggregated by major security type (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2015 Corporate debt securities $ 88,852 $ 110 $ (213 ) $ 88,749 Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 40,715 — (63 ) 40,652 Debt securities issued by states of the United States and political subdivisions of the states 6,111 2 (10 ) 6,103 Equity securities 18,536 4,118 — 22,654 Total $ 154,214 $ 4,230 $ (286 ) $ 158,158 December 31, 2014 Corporate debt securities $ 91,456 $ 147 $ (136 ) $ 91,467 Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 26,848 9 (13 ) 26,844 Debt securities issued by states of the United States and political subdivisions of the states 2,088 5 — 2,093 Equity securities 20,611 15,634 — 36,245 Total $ 141,003 $ 15,795 $ (149 ) $ 156,649 At December 31, 2015 and 2014 , corporate and governmental debt securities, which have a fixed interest rate, were recorded as available-for-sale. There have been no significant changes in the maturity dates and average interest rates for the Company’s investment portfolio and debt obligations subsequent to December 31, 2015 . At December 31, 2015 , equity securities were recorded as available-for-sale and primarily represent a strategic investment in Carbonite, Inc. At December 31, 2015 , the Company’s available-for-sale securities are carried at fair value, with the unrealized gains and losses reported as a component of stockholders’ equity. Short-term investments include restricted balances which the Company may not liquidate until maturity, generally within 12 months. Restricted balances included in short-term investments were $0.1 million and $0.1 million at December 31, 2015 and 2014 , respectively. For the years ended December 31, 2015 , 2014 and 2013 , the Company recorded realized gains (losses) from the sale of investments of approximately $0.5 million , $0.1 million and $(0.1) million , respectively. Recognition and Measurement of Other-Than-Temporary Impairment j2 Global regularly reviews and evaluates each investment that has an unrealized loss. An unrealized loss exists when the current fair value of an individual security is less than its amortized cost basis. Unrealized losses that are determined to be temporary in nature are recorded, net of tax, in accumulated other comprehensive income for available-for-sale securities, while such losses related to held-to-maturity securities are not recorded, as these investments are carried at their amortized cost. Regardless of the classification of the securities as available-for-sale or held-to-maturity, the Company has assessed each position for impairment. Factors considered in determining whether a loss is temporary include: • the length of time and the extent to which fair value has been below cost; • the severity of the impairment; • the cause of the impairment and the financial condition and near-term prospects of the issuer; • activity in the market of the issuer which may indicate adverse credit conditions; and • the Company’s ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery. j2 Global’s review for impairment generally entails: • identification and evaluation of investments that have indications of possible impairment; • analysis of individual investments that have fair values less than amortized cost, including consideration of the length of time the investment has been in an unrealized loss position and the expected recovery period; • discussion of evidential matter, including an evaluation of factors or triggers that could cause individual investments to qualify as having an other-than-temporary impairment and those that would not support an other-than-temporary impairment; • documentation of the results of these analyses, as required under business policies; and • information provided by third-party valuation experts. For these securities, a critical component of the evaluation for other-than-temporary impairments is the identification of credit impairment, where management does not expect to receive cash flows sufficient to recover the entire amortized cost basis of the security. Credit impairment is assessed using a combination of a discounted cash flow model that estimates the cash flows on the underlying securities and a market comparables method, where the security is valued based upon indications from the secondary market of what discounts buyers demand when purchasing similar securities. The cash flow model incorporates actual cash flows from the securities through the current period and then projects the remaining cash flows using relevant interest rate curves over the remaining term. These cash flows are discounted using a number of assumptions, some of which include prevailing implied credit risk premiums, incremental credit spreads and illiquidity risk premiums, among others. Securities that have been identified as other-than-temporarily impaired are written down to their current fair value. For debt securities that are intended to be sold or that management believes it more-likely-than-not that will be required to sell prior to recovery, the full impairment is recognized immediately in earnings. For available-for-sale and held-to-maturity securities that management has no intent to sell and believes that it more-likely-than-not that it will not be required to sell prior to recovery, only the credit loss component of the impairment is recognized in earnings, while the rest of the fair value impairment is recognized in other comprehensive income. The credit loss component recognized in earnings is identified as the amount of principal cash flows not expected to be received over the remaining term of the security. The following tables present gross unrealized losses and fair values for those investments that were in an unrealized loss position as of December 31, 2015 and December 31, 2014 , aggregated by investment category and the length of time that individual securities have been in a continuous loss position (in thousands): As of December 31, 2015 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Corporate debt securities $ 74,807 $ (212 ) $ 1,000 $ (1 ) $ 75,807 $ (213 ) Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 38,004 (62 ) 649 (1 ) 38,653 (63 ) Debt securities issued by states of the United States and political subdivisions of the states 4,189 (10 ) — — 4,189 (10 ) Total $ 117,000 $ (284 ) $ 1,649 $ (2 ) $ 118,649 $ (286 ) As of December 31, 2014 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Corporate debt securities $ 57,898 $ (131 ) $ 1,260 $ (5 ) $ 59,158 $ (136 ) Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 15,072 (13 ) — — 15,072 (13 ) Total $ 72,970 $ (144 ) $ 1,260 $ (5 ) $ 74,230 $ (149 ) During the years ended December 31, 2015 and December 31, 2014 , we did not recognize any other-than-temporary impairment losses. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Fair Value Measurements j2 Global complies with the provisions of ASC 820, which defines fair value, provides a framework for measuring fair value and expands the disclosures required for fair value measurements of financial and non-financial assets and liabilities. ASC 820 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, ASC 820 establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: § Level 1 – Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. § Level 2 – Include other inputs that are directly or indirectly observable in the marketplace. § Level 3 – Unobservable inputs which are supported by little or no market activity. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company's money market funds and its marketable equity securities are classified within Level 1. The Company values these Level 1 investments using quoted market prices. The Company's debt investments, time deposits and commercial paper, all of which have counterparties with high credit ratings, are classified within Level 2. The Company values these Level 2 investments based on quoted market prices or model-driven valuations using significant inputs derived from or corroborated by observable market data. The fair value of the Convertible Notes (see Note 8 - Long-Term Debt) is determined using recent quoted market prices or dealer quotes for such securities, which are Level 1 inputs. The fair value of the Senior Notes (see Note 8 - Long-Term Debt) is determined using quoted market prices or dealer quotes for instruments with similar maturities and other terms and credit ratings, which are Level 2 inputs. The fair value of long-term debt was $790.5 million and $711.1 million , at December 31, 2015 and December 31, 2014 , respectively. In addition, the Convertible Notes contain terms that may require the Company to pay contingent interest on the Convertible Notes which is accounted for as a derivative with fair value adjustments being recorded to interest expense. This derivative is fair valued using a binomial lattice convertible bond pricing model using historical and implied market information, which are Level 2 inputs. The Company classifies its contingent consideration liability in connection with the acquisitions of Ookla and Salesify (see Note 3 - Business Acquisitions) within Level 3 because factors used to develop the estimated fair value are unobservable inputs, such as volatility and market risks, and are not supported by market activity. The fair value of the contingent consideration liability was determined using option based approaches. This methodology was utilized because the distribution of payments is not symmetric and amounts are only payable upon certain earnings before interest, tax, depreciation and amortization ("EBITDA") thresholds being reached. Such valuation approach included a Monte-Carlo simulation for the contingency since the financial metric driving the payments is path dependent. Significant increases or decreases in either of the inputs noted above in isolation would result in a significantly lower or higher fair value measurement. The following tables present the fair values of the Company’s financial assets or liabilities that are measured at fair value on a recurring basis (in thousands): December 31, 2015 Level 1 Level 2 Level 3 Fair Value Assets: Cash equivalents: Money market and other funds $ 46,867 $ — $ — $ 46,867 Time deposits — 3,004 — 3,004 Certificates of Deposit — 60 — 60 Equity securities 22,654 — — 22,654 Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies — 40,652 — 40,652 Debt securities issued by states of the United States and political subdivisions of the states — 6,103 — 6,103 Corporate debt securities — 88,749 — 88,749 Total assets measured at fair value $ 69,521 $ 138,568 $ — $ 208,089 Liabilities: Contingent consideration $ — $ — $ 30,600 $ 30,600 Contingent interest derivative — 1,450 — 1,450 Total liabilities measured at fair value $ — $ 1,450 $ 30,600 $ 32,050 December 31, 2014 Level 1 Level 2 Level 3 Fair Value Assets: Cash equivalents: Money market and other funds $ 212,645 $ — $ — $ 212,645 Time deposits — 51,807 — 51,807 Certificates of Deposit — 65 — 65 Equity securities 36,245 — — 36,245 Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies — 26,844 — 26,844 Debt securities issued by states of the United States and political subdivisions of the states — 2,093 — 2,093 Corporate debt securities — 91,467 — 91,467 Total assets measured at fair value $ 248,890 $ 172,276 $ — $ 421,166 Liabilities: Contingent consideration $ — $ — $ 15,000 $ 15,000 Contingent interest derivative — 742 — 742 Total liabilities measured at fair value $ — $ 742 $ 15,000 $ 15,742 At the end of each reporting period, management reviews the inputs to measure the fair value measurements of financial and non-financial assets and liabilities to determine when transfers between levels are deemed to have occurred. For the year ended December 31, 2015 , there were no transfers that have occurred between levels. On September 30, 2014, management reevaluated the inputs of its Level 1 assets used in determining fair value and transferred $206.9 million of financial instruments from Level 1 to Level 2. The Company determined the fair value of such transfer as of the end of the reporting period. The following tables presents a reconciliation of the Company’s Level 3 financial assets or liabilities that are measured at fair value on a recurring basis (in thousands): Level 3 Affected line item in the Statement of Income Balance as of January 1, 2014 $ — Contingent consideration 15,000 Not Applicable Total (gains) losses reported in earnings — Transfers into or out of Level 3 — Balance as of December 31, 2014 $ 15,000 Contingent consideration $ (600 ) Not applicable Total (gains) losses reported in earnings 16,200 General and administrative Transfers into or out of Level 3 — Balance as of December 31, 2015 $ 30,600 In connection with the acquisition of Ookla, on December 1, 2014, contingent consideration of up to an aggregate of $40.0 million may be payable upon achieving certain future income thresholds and had a fair value of $25.0 million and $15.0 million at December 31, 2015 and 2014, respectively. Due to the Company achieving certain earnings targets for the year ended December 31, 2015, $20.0 million has been reclassified to current liabilities on the consolidated balance sheet payable in 2016. The remaining $5.0 million of contingent consideration is recorded as an other long-term liability on the consolidated balance sheet at December 31, 2015. In connection with the acquisition of Salesify, on September 17, 2015, contingent consideration of up to an aggregate of $17.0 million may be payable upon achieving certain future income thresholds and had a fair value of $5.6 million , which was recorded as an other long-term liability on the consolidated balance sheet at December 31, 2015. During the year ended December 31, 2015, the Company recorded a net increase in the fair value of the contingent consideration of $16.2 million and reported such increase in general and administrative expenses. The following tables presents a reconciliation of the Company’s derivative instruments (in thousands): Amount Affected line item in the Statement of Income Derivative Liabilities: Level 2: Balance as of January 1, 2014 $ — Contingent interest 372 Total losses reported in earnings 370 Interest expense, net Balance as of December 31, 2014 $ 742 Total losses reported in earnings 708 Interest expense, net Balance as of December 31, 2015 $ 1,450 Losses associated with other-than-temporary impairments are recorded as a component of other income (expenses). Gains and losses not associated with other-than-temporary impairments are recorded as a component of other comprehensive income. |
Property And Equipment
Property And Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property And Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | Property and Equipment Property and equipment, stated at cost, at December 31, 2015 and 2014 consisted of the following (in thousands): 2015 2014 Computers and related equipment $ 135,360 $ 100,537 Furniture and equipment 1,710 1,763 Leasehold improvements 10,603 9,098 147,673 111,398 Less: Accumulated depreciation and amortization (90,231 ) (73,181 ) Total property and equipment, net $ 57,442 $ 38,217 Depreciation and amortization expense was $19.2 million , $15.5 million and $9.6 million for the year ended December 31, 2015 , 2014 and 2013 , respectively. Total disposals of long-lived assets for the year ended December 31, 2015 , 2014 and 2013 was zero , $0.6 million and $0.9 million , respectively. |
Goodwill And Intangible Assets
Goodwill And Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Intangible Assets | Goodwill and Intangible Assets Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in a business combination. Intangible assets resulting from the acquisitions of entities accounted for using the purchase method of accounting are recorded at the estimated fair value of the assets acquired. Identifiable intangible assets are comprised of purchased customer relationships, trademarks and trade names, developed technologies and other intangible assets. The fair values of these identified intangible assets are based upon expected future cash flows or income, which take into consideration certain assumptions such as customer turnover, trade names and patent lives. These determinations are primarily based upon the Company’s historical experience and expected benefit of each intangible asset. If it is determined that such assumptions are not accurate, then the resulting change will impact the fair value of the intangible asset. Identifiable intangible assets are amortized over the period of estimated economic benefit, which ranges from one to 20 years. The changes in carrying amounts of goodwill for the year ended December 31, 2015 and 2014 are as follows (in thousands): Business Cloud Services Digital Media Consolidated Balance as of January 1, 2014 $ 316,682 $ 140,740 $ 457,422 Goodwill acquired 79,536 105,301 184,837 Purchase Accounting Adjustments (706 ) (329 ) (1,035 ) Foreign exchange translation (5,449 ) (100 ) (5,549 ) Balance as of December 31, 2014 $ 390,063 $ 245,612 $ 635,675 Goodwill acquired 108,913 63,680 172,593 Purchase accounting adjustments 10,900 (4,289 ) 6,611 Foreign exchange translation (7,158 ) (60 ) (7,218 ) Balance as of December 31, 2015 $ 502,718 $ 304,943 $ 807,661 Purchase accounting adjustments relate to adjustments to goodwill in connection with prior years business acquisitions. See Note 3 - Business Acquisitions - for a discussion related to purchase accounting adjustments. Intangible assets are summarized as of December 31, 2015 and 2014 as follows (in thousands): Intangible Assets with Indefinite Lives: 2015 2014 Trade names $ 27,379 $ 27,379 Other 5,432 5,432 Total $ 32,811 $ 32,811 In accordance with ASC 350, the Company performed the annual impairment test for goodwill for fiscal year 2015 using a qualitative assessment primarily taking into consideration macroeconomic, industry and market conditions, overall financial performance and any other relevant company-specific events. The Company performed the annual impairment test for intangible assets with indefinite lives for fiscal 2015 using a qualitative assessment primarily taking into consideration macroeconomic, industry and market conditions, overall financial performance and any other relevant company-specific events. j2 Global concluded that there were no impairments in 2015, 2014 and 2013. Intangible Assets Subject to Amortization: As of December 31, 2015 , intangible assets subject to amortization relate primarily to the following (in thousands): Weighted-Average Amortization Period Historical Cost Accumulated Amortization Net Trade names 12.0 years $ 117,753 $ 26,167 $ 91,586 Patent and patent licenses 8.3 years 64,258 45,417 18,841 Customer relationships 9.4 years 313,909 116,590 197,319 Other purchased intangibles 4.2 years 33,088 21,004 12,084 Total $ 529,008 $ 209,178 $ 319,830 As of December 31, 2014 , intangible assets subject to amortization relate primarily to the following (in thousands): Weighted-Average Amortization Period Historical Cost Accumulated Amortization Net Trade names 14.5 years $ 94,770 $ 16,598 $ 78,172 Patent and patent licenses 9.0 years 62,940 38,013 24,927 Customer relationships 9.3 years 230,424 66,658 163,766 Other purchased intangibles 4.3 years 28,360 16,236 12,124 Total $ 416,494 $ 137,505 $ 278,989 Expected amortization expense for intangible assets subject to amortization at December 31, 2015 are as follows (in thousands): Fiscal Year: 2016 $ 63,209 2017 58,498 2018 46,500 2019 33,665 2020 31,313 Thereafter 86,645 Total expected amortization expense $ 319,830 Amortization expense was $74.0 million , $47.4 million and $30.2 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. |
Long Term Debt
Long Term Debt | 12 Months Ended |
Dec. 31, 2015 | |
Long-term Debt, Unclassified [Abstract] | |
Debt Disclosure [Text Block] | Long-Term Debt 8.0% Senior Notes On July 26, 2012 , the Company's subsidiaries, issued in a private offering exempt from the registration requirements of the Securities Act of 1933, as amended, $250 million aggregate principal amount of 8.0% senior unsecured notes (the “Senior Notes”) due August 1, 2020 . j2 Cloud Services, Inc. received proceeds of $245 million in cash, net of initial purchaser's discounts and commissions of $5 million . As of December 31, 2015 , the unamortized discount on Senior Notes was approximately $3.3 million . Other fees were incurred in connection with the issuance of the Senior Notes and have an unamortized balance of $0.9 million as of December 31, 2015 , which is recorded within long-term other assets. The net proceeds were available for general corporate purposes, including acquisitions. Interest is payable semi-annually on February 1 and August 1 of each year. j2 Cloud Services, Inc. has the option to call the Senior Notes in whole or in part after August 1, 2016 , subject to certain premiums as defined in the indenture governing the Senior Notes plus accrued and unpaid interest. In addition, at any time before August 1, 2016, j2 Cloud Services, Inc. may redeem the Senior Notes in whole or in part at a "make-whole" redemption price specified in the indenture plus accrued and unpaid interest, if any, to (but not including) the redemption date. Upon a change in control, the holders may put the Senior Notes at 101% of the principal amount of the Senior Notes plus accrued and unpaid interest, if any, to the repurchase date. The Senior Notes are not guaranteed by any of the j2 Cloud Services, Inc. subsidiaries as of December 31, 2015 , because, as of such date, all of j2 Cloud Services existing domestic restricted subsidiaries are deemed insignificant subsidiaries (as that term is defined in the indenture) or are designated as unrestricted subsidiaries. If j2 Cloud Services, Inc. or any of its restricted subsidiaries (as that term is defined in the indenture) acquires or creates a domestic restricted subsidiary, other than an insignificant subsidiary, after the issue date, or any insignificant subsidiary ceases to fit within the definition of insignificant subsidiary, such restricted subsidiary is required to unconditionally guarantee, jointly and severally, on an unsecured basis, j2 Cloud Services, Inc.'s obligations under the Senior Notes. In connection with the issuance of Convertible Notes (defined below), j2 Global, Inc. unconditionally guaranteed, on an unsecured basis, the obligations of j2 Cloud Services, Inc. under the Senior Notes. The indenture governing the Senior Notes contain certain restrictive and other covenants applicable to j2 Cloud Services, Inc. and subsidiaries designated as restricted subsidiaries including, but not limited to, limitations on debt and disqualified or preferred stock, restricted payments, liens, sale and leaseback transactions, dividends and other payment restrictions, asset sales and transactions with affiliates. Restricted payments are applicable only if j2 Cloud Services, Inc. and subsidiaries designated as restricted subsidiaries has a pro forma leverage ratio of greater than 1.75 to 1.0. In addition, if such leverage ratio is in excess of 1.75 to 1.0, restricted payments are permitted up to $50 million. As of December 31, 2015 , j2 Cloud Services, Inc. was in compliance with all such covenants. Violation of these covenants could result in a default which could result in the acceleration of outstanding amounts if such default is not cured or waived within the time periods outlined in the indenture. As of December 31, 2015 and 2014, the estimated fair value of the Senior Notes was approximately $262.2 million and $262.4 million , respectively, and was based on the quoted market prices of debt instruments with similar terms, credit rating and maturities of the Senior Notes as of December 31, 2015 and 2014, respectively. 3.25% Convertible Notes On June 10, 2014 , j2 Global issued $402.5 million aggregate principal amount of 3.25% convertible senior notes due June 15, 2029 (the “Convertible Notes”). j2 Global received proceeds of $391.4 million in cash, net of underwriters' discounts and commissions. The net proceeds were available for general corporate purposes. The Convertible Notes bear interest at a rate of 3.25% per annum, payable semiannually in arrears on June 15 and December 15 of each year. Beginning with the six-month interest period commencing on June 15, 2021, the Company must pay contingent interest on the Convertible Notes during any six-month interest period if the trading price per $1,000 principal amount of the Convertible Notes for each of the five trading days immediately preceding the first day of such interest period equals or exceeds $1,300. Any contingent interest payable on the Convertible Notes will be in addition to the regular interest payable on the Convertible Notes. Holders may surrender their Convertible Notes for conversion at any time prior to the close of business on the business day immediately preceding the maturity date only if one or more of the following conditions is satisfied: (i) during any calendar quarter commencing after the calendar quarter ending on September 30, 2014 (and only during such calendar quarter), if the closing sale price of j2 Global common stock for at least 20 trading days in the period of 30 consecutive trading days ending on the last trading day of the calendar quarter immediately preceding the calendar quarter in which the conversion occurs is more than 130% of the applicable conversion price of the Convertible Notes on each such trading day; (ii) during the five consecutive business day period following any ten consecutive trading day period in which the trading price for the Convertible Notes for each such trading day was less than 98% of the product of (a) the closing sale price of j2 Global common stock on each such trading day and (b) the applicable conversion rate on each such trading day; (iii) if j2 Global calls any or all of the Convertible Notes for redemption, at any time prior to the close of business on the business day prior to the redemption date; (iv) upon the occurrence of specified corporate events; or (v) during either the period beginning on, and including, March 15, 2021 and ending on, but excluding, June 20, 2021 or the period beginning on, and including, March 15, 2029 and ending on, but excluding, the maturity date. j2 Global will settle conversions of Convertible Notes by paying or delivering, as the case may be, cash, shares of j2 Global common stock or a combination thereof at j2 Global's election. The Company currently intends to satisfy its conversion obligation by paying and delivering a combination of cash and shares of the Company's common stock, where cash will be used to settle each $1,000 of principal and the remainder, if any, will be settled via shares of the Company's common stock. As of December 31, 2015, the conversion rate is 14.4488 shares of j2 Global common stock for each $1,000 principal amount of Convertible Notes, which represents a conversion price of approximately $69.21 per share of j2 Global common stock. The conversion rate is subject to adjustment for certain events as set forth in the indenture governing the Convertible Notes, but will not be adjusted for accrued interest. In addition, following certain corporate events that occur on or prior to June 20, 2021, j2 Global will increase the conversion rate for a holder that elects to convert its Convertible Notes in connection with such a corporate event. j2 Global may not redeem the Convertible Notes prior to June 20, 2021. On or after June 20, 2021, j2 Global may redeem for cash all or part of the Convertible Notes at a redemption price equal to 100% of the principal amount of the Convertible Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. No sinking fund is provided for the Convertible Notes. Holders have the right to require j2 Global to repurchase for cash all or part of their Convertible Notes on each of June 15, 2021 and June 15, 2024 at a repurchase price equal to 100% of the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the relevant repurchase date. In addition, if a fundamental change, as defined in the indenture governing the Convertible Notes, occurs prior to the maturity date, holders may require j2 Global to repurchase for cash all or part of their Convertible Notes at a repurchase price equal to 100% of the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. The Convertible Notes are the Company's general senior unsecured obligations and rank: (i) senior in right of payment to any of the Company's future indebtedness that is expressly subordinated in right of payment to the Convertible Notes; (ii) equal in right of payment to the Company's existing and future unsecured indebtedness that is not so subordinated, including in respect of j2 Global's guarantee of the obligations of our subsidiary, j2 Cloud Services, Inc., with respect to its outstanding Senior Notes; (iii) effectively junior in right of payment to any of the Company's secured indebtedness to the extent of the value of the assets securing such indebtedness; and (iv) structurally junior to all existing and future indebtedness (including trade payables) incurred by the Company's subsidiaries. Accounting for the Convertible Notes In accordance with ASC 470-20, Debt with Conversion and Other Options, convertible debt that can be settled for cash is required to be separated into the liability and equity component at issuance, with each component assigned a value. The value assigned to the liability component is the estimated fair value, as of the issuance date, of similar debt without the conversion feature. The difference between the cash proceeds and estimated fair value of the liability component, representing the value of the conversion premium assigned to the equity component, is recorded as a debt discount on the issuance date. This debt discount is amortized to interest expense using the effective interest method over the period from the issuance date through the first stated repurchase date on June 15, 2021. j2 Global estimated the borrowing rates of similar debt without the conversion feature at origination to be 5.79% for the Convertible Notes and determined the debt discount to be $59.0 million . As a result, a conversion premium after tax of $37.7 million was recorded in additional paid-in capital. As of December 31, 2015 , the carrying value of the Convertible Notes was $354.4 million , which consisted of $402.5 million outstanding principal amount net of $48.1 million unamortized debt discount. The aggregate debt discount is amortized as interest expense over the period from the issuance date through the first stated repurchase date on June 15, 2021 which management believes is the expected life of the Convertible Notes using an interest rate of 5.81% . As of December 31, 2015 , the remaining period over which the unamortized debt discount will be amortized is 5.5 years . In connection with the issuance of the Convertible Notes, the Company incurred $11.7 million of deferred issuance costs, which primarily consisted of the underwriters' discount and legal and other professional service fees. Of the total deferred issuance costs incurred, $10.0 million of such deferred issuance costs were attributable to the liability component and are recorded within other assets and are being amortized to interest expense through June 15, 2021. The remaining $1.7 million ( $1.1 million net of tax) of such deferred issuance costs were netted with the equity component in additional paid-in capital at the issuance date. The unamortized balance as of December 31, 2015 was $8.2 million . The Convertible Notes are carried at face value less any unamortized debt discount. The fair value of the Convertible Notes at each balance sheet date is determined based on recent quoted market prices or dealer quotes for the Convertible Notes, which are Level 1 inputs (see Note 5 - Fair Value Measurements). If such information is not available, the fair value is determined using cash-flow models of the scheduled payments discounted at market interest rates for comparable debt without the conversion feature. As of December 31, 2015 and 2014, the estimated fair value of the Convertible Notes was approximately $528.3 million and $448.7 million , respectively. Long-term debt as of December 31, 2015 and 2014 consists of the following (in thousands): 2015 2014 Senior Notes $ 246,750 $ 246,187 Convertible Notes 354,436 347,163 Total long-term debt $ 601,186 $ 593,350 Less: Current portion — — Total long-term debt, less current portion $ 601,186 $ 593,350 At December 31, 2015 , future principal payments for debt were as follows (in thousands): Years Ended December 31, 2016 $ — 2017 — 2018 — 2019 — 2020 250,000 Thereafter 402,500 $ 652,500 Interest expense was $43.6 million , $32.5 million and $22.3 million for the year ended December 31, 2015 , 2014 and 2013 , respectively. |
Mandatorily Redeemable Financia
Mandatorily Redeemable Financial Instrument (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Mandatorily Redeemable Financial Instrument [Abstract] | |
Mandatorily Redeemable Financial Instrument [Text Block] | Mandatorily Redeemable Financial Instrument On November 9, 2012, the Company acquired substantially all of the issued and outstanding capital stock of Ziff Davis, Inc. ("Ziff Davis"). In connection with the acquisition, the issued and outstanding capital stock was exchanged for shares of Series A Cumulative Participating Preferred Stock ("Series A Stock") of Ziff Davis. Ziff Davis is accounted for as a consolidated subsidiary as of the date of acquisition. Certain minority interest holders received an ownership in Series A Stock which was accounted for as a non-controlling interest. On December 31, 2013, in connection with a reorganization of Ziff Davis, Inc. to Ziff Davis, LLC (the "Reorganization"), the Company acquired all of the minority interest holders' equity interests, including their Series A Stock. The Series A Stock met the definition of a mandatorily redeemable financial instrument which requires liability classification and remeasurement at each reporting period on the consolidated subsidiaries financial statements. As the fair value of the Series A Stock was less than the mandatory redemption amount at issuance, periodic accretions using the interest method were made so that the carrying amount equaled the redemption amount on the mandatory redemption date. In connection with the Reorganization, the Company issued to the minority holders shares of j2 common stock, j2 Series A Preferred Stock and j2 Series B Preferred Stock equal to the fair market value of the minority holders' Series A Stock (see Note 12 - Stockholders' Equity). As a result of the Reorganization, the Series A Stock was extinguished, resulting in loss on extinguishment of debt and related interest expense of $14.4 million within the consolidated statement of income, in accordance with ASC 480, Distinguishing Liabilities from Equity . |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | Commitments and Contingencies Litigation From time-to-time, j2 Global and its affiliates are involved in litigation and other legal disputes or regulatory inquiries that arise in the ordinary course of business. Any claims or regulatory actions against j2 Global and its affiliates, whether meritorious or not, could be time consuming and costly, and could divert significant operational resources. The outcome of such matters is subject to inherent uncertainties, carrying the potential for unfavorable rulings that could include monetary damages and injunctive relief. On January 7, 2011, the Department of Revenue for the State of Washington (“Washington Department of Revenue”) issued assessments to a j2 Global affiliate for business and occupation tax and retail sales tax for the period of January 1, 2004 through September 30, 2010. On November 16, 2012, the Washington Department of Revenue denied the j2 Global affiliate’s petition for correction. The j2 Global affiliate paid the assessments and, on June 21, 2013, filed a complaint against the Washington Department of Revenue in the Superior Court of Washington for Thurston County (No. 13-2-01338-7). In that suit, the j2 Global affiliate is seeking a refund of the entire amount paid and a declaration that the Washington Department of Revenue improperly imposed the taxes. Discovery is ongoing. On February 17, 2011, Emmanuel Pantelakis (“Pantelakis”) filed suit against a j2 Global affiliate in the Ontario Superior Court of Justice (No. 11-50673), alleging that the j2 Global affiliate breached a contract relating to Pantelakis’s use of the Campaigner ® service. The j2 Global affiliate filed a responsive pleading on March 23, 2011 and responses to undertakings on July 16, 2012. On November 6, 2012, Pantelakis filed a second amended statement of claim, reframing his lawsuit as a negligence action. The j2 Global affiliate filed an amended statement of defense on April 8, 2013. Discovery is ongoing. On January 17, 2013, the Commissioner of the Massachusetts Department of Revenue (“Commissioner”) issued a notice of assessment to a j2 Global affiliate for sales and use tax for the period of July 1, 2003 through December 31, 2011. On July 22, 2014, the Commissioner denied the j2 Global affiliate’s application for abatement. On September 18, 2014, the j2 Global affiliate petitioned the Massachusetts Appellate Tax Board for abatement of the tax asserted in the notice of assessment (No. C325426). A trial was held on December 16, 2015. The Massachusetts Appellate Tax Board has not yet rendered its decision. On January 18, 2013, Paldo Sign and Display Co. (“Paldo”) filed an amended complaint adding two j2 Global affiliates and a former employee as additional defendants in an existing purported class action pending in the U.S. District Court for the Northern District of Illinois (“Northern District of Illinois”) (No. 1:13-cv-01896). The amended complaint alleged violations of the Telephone Consumer Protection Act (“TCPA”), the Illinois Consumer Fraud and Deceptive Business Practices Act (“ICFA”), and common law conversion, arising from an indirect customer’s alleged use of the j2 Global affiliates’ systems to send unsolicited facsimile transmissions. On August 23, 2013, a second plaintiff, Sabon, Inc. (“Sabon”), was added. The j2 Global affiliates filed a motion to dismiss the ICFA and conversion claims, which was granted. The Northern District of Illinois also dismissed the former employee for lack of personal jurisdiction. Discovery closed on January 11, 2016. The parties are preparing dispositive motions. On August 28, 2013, Phyllis A. Huster (“Huster”) filed suit in the Northern District of Illinois (No. 1:13-cv-06143) against two j2 Global affiliates and three other parties for correction of inventorship for nine j2 Global patents. Huster seeks, among other things, a declaration that she was an inventor of the patents-in-suit, an order directing the U.S. Patent & Trademark Office to substitute or add her as an inventor, and payment of at least half of defendants’ earnings from licensing the patents-in-suit. On September 19, 2014, the Northern District of Illinois granted the defendants’ motion to dismiss for improper venue and transferred the case to the U.S. District Court for the Northern District of Georgia (No. 1:14-cv-03304). Huster filed an amended complaint on February 11, 2015, which she corrected on February 12, 2015. The corrected amended complaint added claims of fraudulent concealment, breach of fiduciary duty, unjust enrichment, breach of contract, breach of a private duty, conversion, and breach of the implied covenant of good faith and fair dealing. On November 12, 2015, the Northern District of Georgia dismissed all claims against the j2 Global affiliates. On January 28, 2016, the remaining claims were dismissed on summary judgment and a judgment was entered in favor of the defendants. On October 16, 2013, a j2 Global affiliate entered an appearance as a plaintiff in a multi-district litigation pending in the Northern District of Illinois (No. 1:12-cv-06286). In this litigation, Unified Messaging Solutions, LLC (“UMS”), a company with rights to assert certain patents owned by the j2 Global affiliate, has asserted five j2 Global patents against a number of defendants. While claims against some defendants have been settled, other defendants have filed counterclaims for, among other things, non-infringement, unenforceability, and invalidity of the patents-in-suit. On December 20, 2013, the Northern District of Illinois issued a claim construction opinion and, on June 13, 2014, entered a final judgment of non-infringement for the remaining defendants based on that claim construction. UMS and the j2 Global affiliate filed a notice of appeal to the U.S. Court of Appeals for the Federal Circuit on June 27, 2014 (No. 14-1611). The appeal remains pending. On June 23, 2014, Andre Free-Vychine (“Free-Vychine”) filed a purported class action against a j2 Global affiliate in the Superior Court for the State of California, County of Los Angeles (“Los Angeles Superior Court”) (No. BC549422). The complaint alleges two California statutory violations relating to late fees levied in certain eVoice® accounts. Free-Vychine is seeking, among other things, damages and injunctive relief on behalf of himself and a purported nationwide class of similarly situated persons. On August 26, 2014, Law Enforcement Officers, Inc. (“LEO”) and IV Pit Stop, Inc. (“IV Pit Stop”) filed a separate purported class action against the same j2 Global affiliate in Los Angeles Superior Court (No. BC555721). The complaint alleges three California statutory violations, negligence, breach of the implied covenant of good faith and fair dealing, and various other common law claims relating to late fees levied on any of the j2 Global affiliate’s customers, including those with eVoice® and Onebox® accounts. The plaintiffs are seeking, among other things, damages and injunctive relief on behalf of themselves and a purported nationwide class of similarly situated persons. On September 29, 2014, the Los Angeles Superior Court ordered both cases related and consolidated for discovery purposes. On March 13, 2015, a third amended complaint was filed in this action, which no longer included IV Pit Stop as a plaintiff but added Christopher Dancel (“Dancel”) as a plaintiff. On or around June 26, 2015, the case filed by Free-Vychine was dismissed pursuant to a settlement agreement. On October 7, 2015, the parties reached a tentative class-based settlement that remains subject to court approval.j2 Global does not believe, based on current knowledge, that the foregoing legal proceedings or claims, after giving effect to existing reserves, are likely to have a material adverse effect on the Company’s consolidated financial position, results of operations, or cash flows. However, depending on the amount and timing, an unfavorable resolution of some or all of these matters could have a material effect on j2 Global’s consolidated financial position, results of operations, or cash flows in a particular period. The Company has not accrued for any material loss contingencies relating to these legal proceedings because unfavorable outcomes are not considered probable by management. Operating Leases j2 Global leases certain facilities and equipment under non-cancelable operating leases which expire at various dates through 2025. Office and equipment leases are typically for terms of three to five years and generally provide renewal options for terms up to an additional five years. In most cases, the Company expects leases that expire will be renewed or replaced by other leases with similar terms. Future minimum lease payments at December 31, 2015 under non-cancelable operating leases (with initial or remaining lease terms in excess of one year) are as follows (in thousands): Lease Payments Fiscal Year: 2016 10,033 2017 9,685 2018 9,241 2019 7,611 2020 4,731 Thereafter 12,962 Total minimum lease payments $ 54,263 Rental expense for the years ended December 31, 2015 , 2014 and 2013 was $9.0 million , $9.7 million and $7.7 million , respectively. Sublease Total sublease income for the years ended December 31, 2015 , 2014 and 2013 was $0.5 million and $0.1 million and zero , respectively. Total estimated aggregate sublease income to be received in the future is $1.8 million . Capital Leases As of December 31, 2015 and 2014 , assets held under capital leases are as follows: 2015 2014 Capital leases $ 870 $ 805 Less: Accumulated depreciation (617 ) (440 ) Total capital leases, net $ 253 $ 365 Future minimum payments at December 31, 2015 under all capital leases (with initial or remaining lease terms in excess of one year) are as follows (in thousands): Future Payments Fiscal Year: 2016 $ 140 2017 44 2018 7 2019 — 2020 — Thereafter — Total minimum lease payments $ 191 Depreciation expense under capital leases for the years ended December 31, 2015 , 2014 and 2013 was $0.2 million , $0.4 million and zero , respectively. Non-Income Related Taxes As a provider of cloud services for business, the Company does not provide telecommunications services. Thus, it believes that its business and its users (by using our services) are generally not subject to various telecommunication taxes. Moreover, the Company generally does not believe that its business and its users (by using our services) are subject to other indirect taxes, such as sales and use tax, business tax and gross receipt tax. However, several state and municipal taxing authorities have challenged these beliefs and have and may continue to audit and assess our business and operations with respect to telecommunications and other indirect taxes. On February 24, 2016, President Obama signed into law H.R. 644, the “Trade Facilitation and Trade Enforcement Act of 2015” which included a provision to permanently ban state and local authorities from imposing access or discriminatory taxes on the Internet. The new law allows “grandfathered” states and local authorities to continue their existing taxes on internet access through June 2020. The Company is currently under audit for indirect taxes in several states and municipalities. On February 27, 2013, the Office of Finance for the City of Los Angeles (the "Los Angeles Office of Finance") issued assessments to a j2 Global affiliate for business and communications taxes for the period of January 1, 2009 through December 31, 2012. On September 11, 2014, the Los Angeles Office of Finance issued revised assessments to a j2 Global affiliate increasing such affiliate's liability to the City of Los Angeles. On April 30, 2015, the Los Angeles Office of Finance Board of Review denied the j2 Global affiliate's request to abate the assessments. The j2 Global affiliate paid the assessments and requested the abatement of penalties associated with the assessments. In addition, the j2 Global affiliate is currently working with the Office of the City Attorney of the City of Los Angeles to obtain a refund of the entire amount paid. For other jurisdictions, the Company currently has no reserves established for these matters, as the Company has determined that the liability is not probable and estimable. However, it is reasonably possible that such a liability could be incurred, which would result in additional expense, which could materially impact our financial results. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income tax consisted of the following (in thousands): Years Ended December 31, 2015 2014 2013 Current: Federal $ 21,745 $ 22,074 $ 22,834 State 1,805 3,822 2,676 Foreign 16,816 13,977 9,415 Total current 40,366 39,873 34,925 Deferred: Federal (8,581 ) (958 ) 3,678 State (3,462 ) (5,019 ) (235 ) Foreign (5,040 ) (4,056 ) (3,193 ) Total deferred (17,083 ) (10,033 ) 250 Total provision $ 23,283 $ 29,840 $ 35,175 A reconciliation of the statutory federal income tax rate with j2 Global's effective income tax rate is as follows: Years Ended December 31, 2015 2014 2013 Statutory tax rate 35 % 35 % 35 % State income taxes, net 0.3 0.6 0.3 Foreign rate differential (15.8 ) (13.8 ) (17.9 ) Reserve for uncertain tax positions (3.3 ) (2.2 ) 4.3 Valuation allowance 1.8 2.6 1.9 IRC Section 199 deductions (1.2 ) (0.5 ) (0.5 ) Other (2.0 ) (2.5 ) 1.6 Effective tax rates 14.8 % 19.2 % 24.7 % The Company's effective rate for each year is normally lower than the 35% U.S. federal statutory plus applicable state income tax rates primarily due to earnings of j2 Global's subsidiaries outside of the U.S. in jurisdictions where the effective tax rate is lower than in the U.S. Deferred tax assets and liabilities result from differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. Temporary differences and carryforwards which give rise to deferred tax assets and liabilities are as follows (in thousands): Years Ended December 31, 2015 2014 Deferred tax assets: Net operating loss carryforwards $ 11,559 $ 13,774 Tax credit carryforwards 18,341 14,091 Accrued expenses 12,156 7,114 Allowance for bad debt 1,169 1,132 Share-based compensation expense 4,308 3,632 Impairment of investments 74 76 Deferred revenue 3,232 250 State taxes 522 2,333 Other 7,458 789 58,819 43,191 Less: valuation allowance (14,242 ) (11,358 ) Total deferred tax assets $ 44,577 $ 31,833 Deferred tax liabilities: Basis difference in fixed assets $ (5,457 ) $ (5,883 ) Basis difference in intangible assets (41,351 ) (51,566 ) Prepaid insurance (482 ) (420 ) Convertible debt (31,091 ) (26,272 ) Other (3,330 ) (7,981 ) Total deferred tax liabilities (81,711 ) (92,122 ) Net deferred tax liabilities $ (37,134 ) $ (60,289 ) The Company had approximately $44.6 million and $31.8 million in deferred tax assets as of December 31, 2015 and 2014 , respectively, related primarily to tax credit carryforwards, net operating loss carryforwards and accrued expenses treated differently between its financial statements and its tax returns. Based on the weight of available evidence, the Company assesses whether it is more likely than not that some portion or all of a deferred tax asset will not be realized. If necessary, j2 Global records a valuation allowance sufficient to reduce the deferred tax asset to the amount that is more likely that not to be realized. The deferred tax assets should be realized through future operating results and the reversal of temporary differences. As of December 31, 2015 , the Company had federal net operating loss carryforwards (“NOLs”) of $17.4 million , after considering substantial restrictions on the utilization of these NOLs due to “ownership changes”, as defined in the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”). j2 Global currently estimates that all of the above-mentioned federal NOLs will be available for use before their expiration. These NOLs expire through the year 2031 . As of December 31, 2015 and 2014 , the Company has foreign tax credits of $14.0 million and $11.1 million , respectively. The Company has provided a valuation allowance on the foreign tax credits of $14.0 million and $11.1 million , respectively, as the weight of available evidence does not support full utilization of these credits. The foreign tax credits expire through the year 2025. In addition, as of December 31, 2015 and 2014 , the Company had state research and development tax credits of $3.7 million and $2.0 million , respectively, which last indefinitely. As of December 31, 2015 and 2014 , the Company had state enterprise zone tax credits of $0.6 million and $0.9 million , respectively. The state enterprise zone credits expire through the year 2025 . j2 Global estimates that all of the state enterprise zone credits will be available for use before their expiration. Certain tax payments are prepaid during the year and included within prepaid expenses and other current assets on the consolidated balance sheet. The Company's prepaid tax payments were $11.6 million and $5.8 million at December 31, 2015 and 2014 , respectively. Uncertain Income Tax Positions Tax positions are evaluated in a two-step process. The Company first determines whether it is more likely than not that a tax position will be sustained upon examination. If a tax position meets the more-likely-than-not recognition threshold, it is then measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. The Company classifies gross interest and penalties and unrecognized tax benefits that are not expected to result in payment or receipt of cash within one year as non-current liabilities in the consolidated balance sheets. As of December 31, 2015 , the total amount of unrecognized tax benefits was $32.5 million , of which $29.8 million , if recognized, would affect the Company’s effective tax rate. As of December 31, 2014, the total amount of unrecognized tax benefits was $34.6 million , of which $32.7 million , if recognized, would affect the Company’s effective tax rate. As of December 31, 2013, the total amount of unrecognized tax benefits was $40.9 million , of which $40.9 million , if recognized would affect the Company's effective tax rate. The aggregate changes in the balance of unrecognized tax benefits, which excludes interest and penalties, for 2015 , 2014 and 2013 , is as follows (in thousands): Years Ended December 31, 2015 2014 2013 Beginning balance $ 34,635 $ 40,888 35,421 Increases related to tax positions during a prior year 10,361 919 58 Decreases related to tax positions taken during a prior year (17,107 ) (8,284 ) (1,519 ) Increases related to tax positions taken in the current year 8,841 3,765 6,928 Settlements (4,194 ) (1,524 ) — Decreases related to expiration of statute of limitations — (1,129 ) — Ending balance $ 32,536 $ 34,635 $ 40,888 The Company includes interest and penalties related to unrecognized tax benefits within the provision for income taxes. As of December 31, 2015 , 2014 and 2013 , the total amount of interest and penalties accrued was $3.4 million , $2.9 million and $3.0 million , respectively, which is classified as non-current liabilities in the consolidated balance sheets. In connection with tax matters, the Company recognized interest and penalty (benefit) expense in 2015 , 2014 and 2013 of $(1.4) million , $(0.1) million and $0.7 million , respectively. Uncertain income tax positions are reasonably possible to significantly change during the next 12 months as a result of completion of income tax audits and expiration of statutes of limitations. At this point it is not possible to provide an estimate of the amount, if any, of significant changes in reserves for uncertain income tax positions as a result of the completion of income tax audits that are reasonably possible to occur in the next 12 months. In addition, the Company cannot currently estimate the amount of, if any, uncertain income tax positions which will be released in the next 12 months as a result of expiration of statutes of limitations due to ongoing audits. As a result of ongoing federal, state and foreign income tax audits (discussed below), it is reasonably possible that our entire reserve for uncertain income tax positions for the periods under audit will be released. It is also reasonably possible that the Company's reserves will be inadequate to cover the entire amount of any such income tax liability. The Company has not provided U.S. income taxes and foreign withholding taxes on the undistributed earnings of foreign subsidiaries as of December 31, 2015 because it intends to permanently reinvest such earnings outside the U.S. If these foreign earnings were to be repatriated in the future, the related U.S. tax liability may be reduced by any foreign income taxes previously paid on these earnings and would generate foreign tax credits that would reduce the federal tax liability. As of December 31, 2015 , the cumulative amount of earnings upon which U.S. income taxes have not been provided is approximately $531.5 million . Determination of the amount of unrecognized deferred tax liability related to these earnings is not practicable. Income before income taxes included income from domestic operations of $61.0 million , $79.4 million and $61.0 million for the year ended December 31, 2015 , 2014 and 2013 , respectively, and income from foreign operations of $95.9 million , $75.8 million and $81.7 million for the year ended December 31, 2015 , 2014 and 2013 , respectively. Income Tax Audits: The Company was under examination by the U.S. Internal Revenue Service (“IRS”) for tax years 2009 through 2011. In April 2015, the Company and the IRS reached a settlement which effectively closed the IRS examination for the Company’s 2009 and 2010 tax years. In conjunction with the settlement, the Company made tax and interest payments totaling $1.8 million to the IRS. In June 2015, the Company filed amended state franchise and income tax returns to reflect the IRS settlement and paid tax and interest related to those amended returns totaling $0.9 million . As a result of the IRS settlement, the Company determined that the 2009 and 2010 tax years were effectively closed and decreased its liabilities for uncertain tax positions by $9.3 million . In September 2015, the Company and the IRS reached a settlement which effectively closed the IRS examination for the Company’s 2011 tax year and resolved the disputed issues for the 2011 tax year. In conjunction with the settlement, the Company made a tax payment of $1.2 million to the IRS. The Company filed amended state franchise and income tax returns to reflect the IRS settlement and paid tax and interest totaling $0.1 million . As a result of the IRS settlement, the Company determined that its 2011 tax year was effectively closed and decreased its liabilities for uncertain tax positions by $0.9 million . In November 2015, the IRS began its income tax audit for the Company’s tax years 2012 and 2013. j 2 Global was under income tax audit by the California Franchise Tax Board (the “FTB”) for tax years 2009 through 2011. In April 2015, the Company was notified by the FTB that the income tax audit for tax years 2009 through 2011 had concluded with no changes. In September 2015, the Company was notified by the FTB that tax years 2012 and 2013 are under income tax audit. In December 2015, the Company and FTB reached an agreement to suspend the California audit for tax years 2012 and 2013 pending the outcome of the IRS audit for such tax years. In July 2015, the Company was notified by the New York State Department of Taxation and Finance that its tax returns for tax years 2011 through 2013 would be audited. The Company is also currently under income tax audit by the New York City Department of Finance for tax years 2009 through 2011. The Company was under income tax audit by the Canada Revenue Agency (“CRA”) for tax years 2010 and 2011. In December 2015, the Company was notified by the CRA that the income tax audit for tax years 2010 and 2011 had concluded with no changes. In January 2015, the Company was notified by the Illinois Department of Revenue that the income tax audit for tax years 2008 and 2009 had been concluded with no changes. It is reasonably possible that these audits may conclude in the next 12 months and that the uncertain tax positions the Company has recorded in relation to these tax years may change compared to the liabilities recorded for these periods. If the recorded uncertain tax positions are inadequate to cover the associated tax liabilities, the Company would be required to record additional tax expense in the relevant period, which could be material. If the recorded uncertain tax positions are adequate to cover the associated tax liabilities, the Company would be required to record any excess as reduction in tax expense in the relevant period, which could be material. However, it is not currently possible to estimate the amount, if any, of such change. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity j2 Preferred Stock In connection with the December 31, 2013 reorganization of Ziff Davis, Inc. ("ZD Inc.") into Ziff Davis, LLC ("ZD LLC") and the Company's acquisition of all of the minority holders' equity interests in ZD Inc., the Company issued j2 Series A Preferred Stock ("j2 Series A Stock") and j2 Series B Preferred Stock ("j2 Series B Stock"). j2 Series A Stock Each share of j2 Series A Stock has a stated value of $1,000 . The j2 Series A Stock is not convertible into any other securities. In the event ZD LLC pays any dividends or distributions to the Company in respect of the Company’s membership interests in ZD LLC (subject to certain exceptions in respect of senior interests), holders of the j2 Series A Stock will be entitled to receive a dividend in the aggregate with respect to all j2 Series A Stock equal to 2.4449% of such ZD LLC dividend (but only to the extent such dividend and all other dividends paid in respect of the series A preferred stock does not exceed a compounded annual rate of 15% on the stated value of the j2 Series A Stock). The j2 Series A Stock has a liquidation preference over the j2 Series B Stock and a liquidation preference over j2 common stock in an amount up to, with respect to all shares of j2 Series A Stock, 2.4449% of the assets of ZD LLC and its subsidiaries legally available for distribution to the Company, after reduction in respect of certain senior interests (the "series A minority portion"), but in no event in an amount that exceeds the stated value of the j2 Series A Stock increased at a compounded annual rate of 15% (the "series A cap") and in no event in an amount that exceeds the lesser of the Company’s assets available for distribution and 2.4449% of the assets of ZD LLC and its subsidiaries legally available for distribution to the Company. On or after January 2, 2019, the j2 Series A Stock will be mandatorily redeemable by the Company upon the occurrence of certain contingent liquidity events such as a sale, initial public offering or spin-off transactions involving ZD, LLC. Any or all of the j2 Series A Stock is subject to redemption by the Company at its option at any time. If the redemption occurs in connection with certain sale, initial public offering or spin-off transactions involving ZD LLC, the redemption price will be equal to an allocable portion of the enterprise value of ZD, LLC implied by such transaction with respect to the series A minority portion and based on certain factors to be determined by the Company’s Board of Directors in its sole good faith judgment, but in no event in an amount that would exceed the series A cap. If not in connection with such a transaction, the redemption price will be the series A cap. j2 Series B Stock The j2 Series B Stock is not convertible into any other securities. In the event ZD LLC pays any dividends or distributions to the Company in respect of the Company’s membership interests in ZD LLC (subject to certain exceptions in respect of senior interests and the j2 Series A Stock), holders of the j2 series B preferred stock will be entitled to receive a dividend in the aggregate with respect to all j2 Series B Stock equal to 9.5579% of such ZD LLC dividend. The j2 Series B Stock will have a liquidation preference junior to the liquidation preference of the j2 Series A Stock and a liquidation preference over the j2 common stock in an amount up to, with respect to all shares of j2 Series B Stock, 9.5579% of the assets of ZD LLC and its subsidiaries legally available for distribution to the Company, after reduction in respect of the j2 Series A Stock and certain other senior interests (the "series B minority portion"), but in no event in an amount that exceeds the lesser of the Company’s assets available for distribution and 9.5579% of the assets of ZD LLC and its subsidiaries legally available for distribution to the Company. On or after January 2, 2019, the j2 Series B Stock will be mandatorily redeemable by the Company upon the occurrence of certain contingent liquidity events such as a sale, initial public offering or spin-off transactions involving ZD LLC. Any or all of the j2 Series B Stock is subject to redemption by the Company at its option at any time. If the redemption occurs in connection with certain sale, initial public offering or spin-off transactions involving ZD LLC, the redemption price will be equal to an allocable portion of the enterprise value of ZD LLC implied by such transaction with respect to the series B minority portion and based on certain factors to be determined by the Board of Directors of the Company in its sole good faith judgment. Otherwise, the redemption price will be equal to the fair market value of such share as determined by the Company’s Board of Directors in its sole good faith judgment. Preferred Stock Exchange In November 2014, the Company provided holders of j2 Series A Stock and j2 Series B Stock an exchange right in which shares may be exchanged for j2 common stock. The exchange right associated with the shares of j2 Series A Stock were immediately exercisable at an exchange ratio of 20.4319 shares of j2 common stock per share of j2 Series A Stock (the "Series A Exchange Ratio"). Both holders of the j2 Series A Stock exercised this exchange right which resulted in the issuance of 235,665 shares of j2 common stock. The exchange right associated with the vested shares of the j2 Series B Stock is exercisable during specified exchange periods at an exchange ratio of 31.8094 shares of j2 common stock per share of j2 Series B Stock (the "Series B Exchange Ratio"). Holders of vested j2 Series B Stock exercised this exchange right which resulted in the issuance of 91,734 and 177,573 shares of j2 common stock during fiscal years 2015 and 2014 , respectively. In connection with the exercise of the exchange right and the resulting extinguishment of the Series A, the Company recorded the difference between the carrying value of the Series A and the fair value of the j2 common stock exchanged within retained earnings as a preferred stock dividend. In connection with the exercise of the exchange right associated with Series B, the Company recognized incremental fair value in the amount of $6.3 million and recorded additional share-based compensation in the amount of $1.6 million and $0.2 million for the years ended December 31, 2015 and 2014, respectively. The remaining amount of unrecognized incremental fair value will be recognized over the remaining service period. The Series B Exchange Ratio is adjusted in the event of a subdivision of the outstanding j2 common stock or j2 Series B Stock, a declaration of a dividend payable in shares of j2 common stock or j2 Series B Stock, a declaration of a dividend payable in a form other than shares in an amount that has a material effect on the value of shares of j2 common stock or j2 Series B Stock, a combination or consolidation of the outstanding j2 common stock or j2 Series B Stock into a lesser number of shares of j2 common stock or j2 Series B Stock, respectively, specified changes in control, a recapitalization, a reclassification, or a similar occurrence, the Company shall adjust the Series B Exchange Ratio as it deems appropriate in its sole discretion. Non-Controlling Interest Non-controlling interests represents equity interests in consolidated subsidiaries that are not attributable, either directly or indirectly, to j2 Global (i.e., minority interests). Non-controlling interests includes prior to the Reorganization described above in Note 9 - Mandatorily Redeemable Financial Instrument, the minority equity holders' proportionate share of the equity of Ziff Davis, Inc. Ownership interests in subsidiaries held by parties other than the Company are presented as non-controlling interests within stockholders' equity, separately from the equity held by the Company on the consolidated statements of stockholders' equity. Revenues, expenses, net income and other comprehensive income are reported in the consolidated financial statements at the consolidated amounts, which includes amounts attributable to both the Company's interest and the non-controlling interests in Ziff Davis. Net income and other comprehensive income is then attributed to the Company's interest and the non-controlling interests. Net income to non-controlling interests is deducted from net income in the consolidated statements of income to determine net income attributable to the Company's common shareholders. In connection with the Reorganization described above in Note 9 - Mandatorily Redeemable Financial Instrument, the Company acquired all of the minority holders' equity interests in ZD, Inc. As a result, on December 31, 2013, ZD LLC became a wholly-owned subsidiary of j2 Global, Inc. and the non-controlling interest was no longer outstanding. Common Stock Repurchase Program In February 2012, the Company’s Board of Directors approved a program authorizing the repurchase of up to five million shares of j2 Global common stock through February 20, 2013 (see Note 22 - Subsequent Events - for a discussion regarding the extension of the share repurchase program through February 20, 2017). On February 15, 2012, the Company entered into a Rule 10b5-1 trading plan with a broker to facilitate the repurchase program. No shares were repurchased under the share repurchase program for the year ended December 31, 2015 and 2014. Cumulatively at December 31, 2015 , 2.1 million shares were repurchased at an aggregate cost of $58.6 million (including an immaterial amount of commission fees). Periodically, participants in j2 Global’s stock plans surrender to the Company shares of j2 Global stock to pay the exercise price or to satisfy tax withholding obligations arising upon the exercise of stock options or the vesting of restricted stock. During the year ended December 31, 2015 , the Company purchased 53,904 shares from plan participants for this purpose. Dividends The following is a summary of each dividend declared during fiscal year 2015 and 2014: Declaration Date Dividend per Common Share Record Date Payment Date February 11, 2014 $ 0.2625 February 24, 2014 March 10, 2014 May 7, 2014 $ 0.27 May 19, 2014 June 3, 2014 August 5, 2014 $ 0.2775 August 18, 2014 September 2, 2014 October 30, 2014 $ 0.285 November 17, 2014 December 4, 2014 February 10, 2015 $ 0.2925 February 23, 2015 March 9, 2015 May 6, 2015 $ 0.3 May 19, 2015 June 3, 2015 August 3, 2015 $ 0.3075 August 17, 2015 September 1, 2015 November 3, 2015 $ 0.315 November 17, 2015 December 3, 2015 On February 10, 2016 , the Company's Board of Directors declared a quarterly cash dividend of $0.3250 per share of common stock payable on March 10, 2016 to all stockholders of record as of the close of business on February 23, 2016 (see Note 22 - Subsequent Events). Future dividends will be subject to Board approval. |
Stock Options And Employee Stoc
Stock Options And Employee Stock Purchase Plan | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Options And Employee Stock Purchase Plan | Stock Options and Employee Stock Purchase Plan j2 Global’s share-based compensation plans include the Second Amended and Restated 1997 Stock Option Plan, the 2007 Stock Plan, the 2015 Stock Plan and the 2001 Employee Stock Purchase Plan. Each plan is described below. (a) Second Amended and Restated 1997 Stock Option Plan, the 2007 Stock Plan and the 2015 Stock Plan In November 1997, j2 Global's Board of Directors adopted the j2 Global Communications, Inc. 1997 Stock Option Plan, which was twice amended and restated (the “1997 Plan”). The 1997 Plan terminated in 2007, although stock options and restricted stock issued under the 1997 Plan continue to be governed by it. A total of 12,000,000 shares of common stock were authorized to be used for 1997 Plan purposes. An additional 840,000 shares were authorized for issuance upon exercise of options granted outside the 1997 Plan. In October 2007, j2 Global's Board of Directors adopted the j2 Global, Inc. 2007 Stock Plan (the “2007 Plan”). The 2007 Plan provides for the granting of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units and other share-based awards. The number of authorized shares of common stock that may be used for 2007 Plan purposes is 4,500,000 . Options under the 2007 Plan may be granted at exercise prices determined by the Board of Directors, provided that the exercise prices shall not be less than the fair market value of j2 Global's common stock on the date of grant for incentive stock options and not less than 85% of the fair market value of j2 Global's common stock on the date of grant for non-statutory stock options. In May 2015, j2 Global's Board of Directors adopted the j2 Global, Inc. 2015 Stock Option Plan (the "2015 Plan"). The 2015 Plan provides for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance share units and other share-based awards and is intended as a successor plan to the 2007 Stock Plan since no further grants will be made under the 2007 Stock Plan. 4,200,000 shares of common stock are authorized to be used for 2015 Plan purposes. Options under the 2015 Plan may be granted at exercise prices determined by the Board of Directors, provided that the exercise prices shall not be less than the higher of the par value or 100% of the fair market value of j2 Global's common stock subject to the option on the date the option is granted. At December 31, 2015 , 2014 and 2013 , options to purchase 457,792 , 618,437 and 845,198 shares of common stock were exercisable under and outside of the 2015 Plan, the 2007 Plan and the 1997 Plan combined, at weighted average exercise prices of $24.78 , $23.77 and $20.35 , respectively. Stock options generally expire after 10 years and vest over a 5 -year period. All stock option grants are approved by “outside directors” within the meaning of Internal Revenue Code Section 162(m). Stock Options Stock option activity for the years ended December 31, 2015 , 2014 and 2013 is summarized as follows: Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Life (In Years) Aggregate Intrinsic Value Options outstanding at January 1, 2013 1,765,461 $ 22.08 Granted — — Exercised (569,204 ) 23.90 Canceled (20,600 ) 21.79 Options outstanding at December 31, 2013 1,175,657 $ 21.08 Granted — — Exercised (433,008 ) 15.70 Canceled (17,000 ) 29.85 Options outstanding at December 31, 2014 725,649 $ 24.29 Granted 62,000 67.35 Exercised (221,221 ) 22.41 Canceled — — Options outstanding at December 31, 2015 566,428 $ 29.74 4.3 $29,782,205 Exercisable at December 31, 2015 457,792 $ 24.78 3.5 $26,341,699 Vested and expected to vest at December 31, 2015 545,070 $ 28.53 4.2 $29,316,663 For the year ended December 31, 2015, j2 Global granted 62,000 options to purchase shares of common stock pursuant to the 2015 Plan. These stock options vest 20% per year and expire 10 years from the date of grant. The per share weighted-average grant-date fair values of stock options granted during the period ended December 31, 2015 was $15.22 . There were no stock options granted during the years 2014 and 2013 . The total intrinsic values of options exercised during the years ended December 31, 2015 , 2014 and 2013 were $10.5 million , $14.6 million and $11.9 million , respectively. The total fair value of options vested during the years ended December 31, 2015 , 2014 and 2013 was $0.7 million , $2.3 million and $3.1 million , respectively. Cash received from options exercised under all share-based payment arrangements for the years ended December 31, 2015 , 2014 and 2013 was $5.0 million , $6.6 million and $13.6 million , respectively. The actual tax benefit realized for the tax deductions from option exercises under the share-based payment arrangements totaled $3.7 million , $5.2 million and $3.9 million , respectively, for the years ended December 31, 2015 , 2014 and 2013 . The following table summarizes information concerning outstanding and exercisable options as of December 31, 2015 : Options Outstanding Exercisable Options Range of Exercise Prices Number Outstanding December 31, 2015 Weighted Average Remaining Contractual Life Weighted Average Exercise Price Number Exercisable December 31, 2015 Weighted Average Exercise Price $17.19 33,500 3.18 years $ 17.19 33,500 $ 17.19 20.91 77,448 2.34 years 20.91 77,448 20.91 21.67 66,720 3.35 years 21.67 66,720 21.67 21.88 770 1.95 years 21.88 770 21.88 22.92 98,716 4.35 years 22.92 98,716 22.92 24.61 - 28.52 54,874 3.88 years 27.32 37,874 27.63 29.34 90,700 5.36 years 29.34 72,564 29.34 29.53 - 31.07 25,000 6.07 years 29.99 13,500 30.21 32.45 56,700 1.59 years 32.45 56,700 32.45 67.35 62,000 9.35 years 67.35 — — $17.19 - $67.35 566,428 4.35 years $ 29.74 457,792 $ 24.78 As discussed in Note 12 - Stockholders' Equity, the Company provided holders of j2 Series B Stock an exchange right in which j2 Series B Stock may be exchanged for j2 common stock during specified exchange periods. The Company determined that such exchange right represents a grant under the 2007 Plan for the year ended December 31, 2014, and accordingly, reduced the awards available under the 2007 Plan. At December 31, 2015 , there were 4,032,368 additional shares underlying options, shares of restricted stock and other share-based awards available for grant under the 2015 Plan, and no additional shares are available for grant under or outside of the 2007 and 1997 Plans. As of December 31, 2015 , there was $1.1 million of total unrecognized compensation expense related to nonvested share-based compensation options granted under the 2015 Plan, 2007 Plan and the 1997 Plan. That expense is expected to be recognized ratably over a weighted average period of 2.83 years (i.e., the remaining requisite service period). Fair Value Disclosure j2 Global uses the Black-Scholes option pricing model to calculate the fair value of each option grant. The expected volatility is based on historical volatility of the Company’s common stock. The Company estimates the expected term based upon the historical exercise behavior of our employees. The risk-free interest rate is based on U.S. Treasury zero-coupon issues with a term equal to the expected term of the option assumed at the date of grant. The Company uses an annualized dividend yield based upon the per share dividends declared by its Board of Directors. Estimated forfeiture rates were 14.1% , 12.3% and 14.4% as of December 31, 2015 , 2014 and 2013 , respectively. The weighted-average fair values of stock options granted have been estimated utilizing the following assumptions: Years Ended December 31, 2015 2014 2013 Risk-free interest rate 1.61% —% —% Expected term (in years) 5.2 0.0 0.0 Dividend yield 1.8% —% —% Expected volatility 28.12% —% —% Weighted average volatility 28.12% —% —% Restricted Stock j2 Global has awarded restricted stock and restricted stock units to its Board of Directors and senior staff pursuant to the 1997 Plan, the 2007 Plan, and the 2015 Plan. Compensation expense resulting from restricted stock and restricted unit grants is measured at fair value on the date of grant and is recognized as share-based compensation expense over the applicable vesting period. Beginning in fiscal year 2012 vesting periods are approximately one year for awards to members of the Company's Board of Directors and five years for senior staff. The Company granted 252,940 , 265,601 and 729,137 shares of restricted stock and restricted units during the years ended December 31, 2015 , 2014 and 2013 , respectively, and recognized $11.0 million , $7.4 million and $7.1 million , respectively of related compensation expense. As of December 31, 2015 , the Company had unrecognized share-based compensation cost of $34.5 million associated with these awards. This cost is expected to be recognized over a weighted-average period of 2.8 years for awards and 3.1 years for units. The total fair value of restricted stock and restricted stock units vested during the years ended December 31, 2015 , 2014 and 2013 was $6.4 million , $8.5 million and $6.4 million , respectively. The actual tax benefit realized for the tax deductions from the vesting of restricted stock awards and units totaled $3.8 million , $5.0 million and $1.4 million , respectively, for the years ended December 31, 2015 , 2014 and 2013 . In accordance with ASC 718, share-based compensation is recognized on dividends paid related to nonvested restricted stock not expected to vest, which amounted to approximately $0.1 million for the year ended December 31, 2015 . Restricted stock award activity for the years ended December 31, 2015 , 2014 and 2013 is set forth below: Shares Weighted-Average Grant-Date Fair Value Nonvested at January 1, 2013 828,475 $ 23.08 Granted 690,762 13.57 Vested (296,966 ) 21.46 Canceled (43,900 ) 24.46 Nonvested at December 31, 2013 1,178,371 $ 17.86 Granted 226,864 45.66 Vested (546,115 ) 15.63 Canceled (45,070 ) 35.55 Nonvested at December 31, 2014 814,050 $ 26.57 Granted 234,540 68.11 Vested (254,871 ) 25.16 Canceled (88,915 ) 40.97 Nonvested at December 31, 2015 704,804 $ 39.08 Restricted stock unit activity for the years ended December 31, 2015 , 2014 and 2013 is set forth below: Number of Weighted-Average Aggregate Outstanding at January 1, 2013 115,466 Granted 38,375 Vested (11,116 ) Canceled (33,000 ) Outstanding at December 31, 2013 109,725 Granted 38,737 Vested (19,598 ) Canceled (25,940 ) Outstanding at December 31, 2014 102,924 Granted 18,400 Vested (23,221 ) Canceled (41,858 ) Outstanding at December 31, 2015 56,245 1.8 $ 4,630,088 Vested and expected to vest at December 31, 2015 43,355 1.6 $ 3,568,998 Ziff Davis, Inc. Equity Incentive Plan In November 2012, Ziff Davis, Inc. ("ZD, Inc.") established the Ziff Davis, Inc. 2012 Equity Incentive Plan (the "Ziff Davis Plan"), providing incentives to selected directors, officers, employees and consultants. The Ziff Davis Plan provides for the granting of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units and other share-based awards. The number of authorized shares of common stock that may be used for the Ziff Davis Plan purposes is 15,000,000 . In addition, certain stockholders have put rights under certain circumstances in which the stockholder may elect to cause ZD, Inc. to purchase any or all of the shares of common stock (to the extent vested pursuant to the terms of the Ziff Davis Plan) and preferred stock owned by such stockholder. ZD, Inc. also has the option to call under certain circumstances the common stock issued pursuant to the Ziff Davis Plan (to the extent vested pursuant to the terms of the Ziff Davis Plan) and shares of preferred stock. Management has determined that the circumstances in which the put right held by the stockholder is exercisable are within the control of the Company. Accordingly, management determined that liability classification is not required. ZD, Inc. granted 13,035,000 shares of restricted stock during the year ended December 31, 2013 to its senior staff pursuant to the Ziff Davis Plan, which shares vest evenly over a 5 -year period. Based upon the terms of the Ziff Davis Series A Stock discussed in Note 9 - Mandatorily Redeemable Financial Instrument, the Company determined at the relevant grant date that the fair value of the ZD, Inc. restricted stock was zero . Accordingly, no compensation expense was recorded for the ZD, Inc. restricted stock for the year ended December 31, 2013. In connection with the December 31, 2013 reorganization of ZD, Inc. into Ziff Davis, LLC, the Company acquired all of the minority holders' equity interests in ZD, Inc. As a result, on December 31, 2013, Ziff Davis LLC became a wholly-owned subsidiary of j2 Global, Inc. No further securities are issuable under the Ziff Davis Plan. Employee Stock Purchase Plan In May of 2001, j2 Global established the j2 Global, Inc. 2001 Employee Stock Purchase Plan, as amended (the “Purchase Plan”), which provides for the issuance of a maximum of 2,000,000 shares of common stock. Under the Purchase Plan, eligible employees can have up to 15% of their earnings withheld, up to certain maximums, to be used to purchase shares of j2 Global’s common stock at certain plan-defined dates. The price of the common stock purchased under the Purchase Plan for the offering periods is equal to 95% of the fair market value of the common stock at the end of the offering period. During 2015 , 2014 and 2013 , 4,020 , 5,735 and 5,402 shares, respectively were purchased under the Purchase Plan at price ranging from $73.67 to $54.57 per share during 2015. As of December 31, 2015 , 1,630,444 shares were available under the Purchase Plan for future issuance. |
Defined Contribution 401(k) Sav
Defined Contribution 401(k) Savings Plan | 12 Months Ended |
Dec. 31, 2015 | |
Defined Contribution 401(k) Savings Plan [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Defined Contribution 401(k) Savings Plan j2 Global has two significant 401(k) Savings Plans covering the employees of j2 Global, Inc. and its consolidated subsidiary Ziff Davis, Inc. Eligible employees may contribute through payroll deductions. The Company may make annual contributions to the j2 Global 401(k) Savings Plan at the discretion of j2 Global's Board of Directors and employees within the Ziff Davis, Inc. 401(k) Savings Plan receive 50% of the first 4% of eligible compensation with a maximum of 2% of salary. For the years ended December 31, 2015 and 2014 , the Company accrued $0.2 million and $0.2 million , respectively, for contributions to the 401(k) Savings Plans. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share Reconciliation [Abstract] | |
Earnings Per Share | Earnings Per Share The components of basic and diluted earnings per share are as follows (in thousands, except share and per share data): Years Ended December 31, 2015 2014 2013 Numerator for basic and diluted net income per common share: Net income attributable to j2 Global, Inc. common shareholders $ 133,636 $ 124,336 $ 107,522 Net income available to participating securities (a) (2,159 ) (2,590 ) (2,105 ) Net income available to j2 Global, Inc. common shareholders 131,477 121,746 105,417 Denominator: Weighted-average outstanding shares of common stock 47,627,853 46,778,015 45,548,767 Dilutive effect of: Equity incentive plans 293,911 328,523 591,252 Convertible debt (b) 165,996 — — Common stock and common stock equivalents 48,087,760 47,106,538 46,140,019 Net income per share: Basic $ 2.76 $ 2.60 $ 2.31 Diluted $ 2.73 $ 2.58 $ 2.28 (a) Represents unvested share-based payment awards that contain certain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid). (b) Represents the incremental shares issuable upon conversion of the Convertible Notes due June 15, 2029 by applying the treasury stock method when the average stock price exceeds the conversion price of the Convertible Notes. (see Note 8 - Long Term Debt) For the years ended December 31, 2015 , 2014 and 2013 , there were zero options outstanding, respectively, which were excluded from the computation of diluted earnings per share because the exercise prices were greater than the average market price of the common shares. |
Geographic Information
Geographic Information | 12 Months Ended |
Dec. 31, 2015 | |
Segments, Geographical Areas [Abstract] | |
Geographic Information | Segment Information The Company's business segments are based on the organization structure used by management for making operating and investment decisions and for assessing performance. j2 Global's reportable business segments are: (i) Business Cloud Services; and (ii) Digital Media. Segment accounting policies are the same as described in Note 2 - Basis of Presentation and Summary of Significant Policies. Information on reportable segments and reconciliation to consolidated income from operations is as follows (in thousands): Years Ended December 31, 2015 2014 2013 Revenue by segment: Business Cloud Services $ 504,638 $ 431,475 $ 390,104 Digital Media 216,374 167,814 131,146 Elimination of inter-segment revenues (197 ) (259 ) (449 ) Total revenue 720,815 599,030 520,801 Direct costs by segment (1) : Business Cloud Services 294,436 241,592 191,169 Digital Media 185,937 137,321 124,413 Direct costs by segment (1) : 480,373 378,913 315,582 Business Cloud Services operating income 210,202 189,883 198,935 Digital Media operating income 30,437 30,493 6,733 Segment operating income 240,639 220,376 205,668 Global operating costs (2) 41,257 34,170 30,245 Income from operations $ 199,382 $ 186,206 $ 175,423 (1) Direct costs for each segment include cost of revenue and other operating expenses that are directly attributable to the segment such as employee compensation expense, local sales and marketing expenses, engineering and operations, depreciation and amortization and other administrative expenses. (2) Global operating costs include general and administrative and other corporate expenses that are managed on a global basis and that are not directly attributable to any particular segment. 2015 2014 Assets: Business Cloud Services $ 1,018,606 $ 883,587 Digital Media 427,647 378,381 Total assets from reportable segments 1,446,253 1,261,968 Corporate 346,615 443,234 Total assets $ 1,792,868 $ 1,705,202 2015 2014 2013 Capital expenditures: Business Cloud Services $ 7,546 $ 6,639 $ 10,979 Digital Media 9,389 4,920 6,635 Total from reportable segments $ 16,935 $ 11,559 $ 17,614 Corporate 362 270 1,013 Total capital expenditures $ 17,297 $ 11,829 $ 18,627 Depreciation and amortization: Business Cloud Services $ 62,385 $ 39,699 $ 24,148 Digital Media 30,008 22,483 14,963 Total from reportable segments 92,393 62,182 39,111 Corporate 820 771 677 Total depreciation and amortization $ 93,213 $ 62,953 $ 39,788 j2 Global maintains operations in the U.S., Canada, Ireland, Japan and other countries. Geographic information about the U.S. and all other countries for the reporting periods is presented below. Such information attributes revenues based on jurisdictions where revenues are reported (in thousands). Years Ended December 31, 2015 2014 2013 Revenues: United States $ 492,682 $ 403,279 $ 369,507 Canada 74,864 70,434 73,130 Ireland 43,717 42,979 41,398 All other countries 109,552 82,338 36,766 Total $ 720,815 $ 599,030 $ 520,801 December 31, December 31, Long-lived assets: United States $ 271,796 $ 216,099 All other countries 105,477 101,107 Total $ 377,273 $ 317,206 |
Condensed Consolidating Financi
Condensed Consolidating Financials (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Consolidating Financials [Abstract] | |
Condensed Financial Statements [Text Block] | Consolidating Financial Statements In connection with the June 2014 Convertible Note issuance, j2 Global, Inc. entered into a supplemental indenture related to the Senior Notes pursuant to which it fully and unconditionally guaranteed, on an unsecured basis, the full and punctual payment of the 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 December 31, 2015 (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 55,516 9,975 190,039 — 255,530 Short-term investments 79,595 — 60 — 79,655 Accounts receivable, net — 10,679 104,131 (130 ) 114,680 Prepaid expenses and other current assets 6,887 8,500 14,319 (3,984 ) 25,722 Deferred income taxes — 3,316 4,413 (511 ) 7,218 Intercompany receivable 117,000 174,127 — (291,127 ) — Total current assets 258,998 206,597 312,962 (295,752 ) 482,805 Long-term investments 78,563 — — — 78,563 Property and equipment, net — 6,557 50,885 — 57,442 Trade names, net — 10,118 108,847 — 118,965 Patent and patent licenses, net — 743 18,098 — 18,841 Customer relationships, net — 1,193 196,126 — 197,319 Goodwill — 56,296 751,365 — 807,661 Other purchased intangibles, net — 4,218 13,298 — 17,516 Investment in subsidiaries 1,051,927 1,095,155 — (2,147,082 ) — Deferred income taxes — 14,978 (14,978 ) — — Other assets 8,219 1,167 4,370 — 13,756 Total assets $ 1,397,707 $ 1,397,022 $ 1,440,973 $ (2,442,834 ) $ 1,792,868 LIABILITIES AND STOCKHOLDERS’ EQUITY Accounts payable and accrued expenses 4,573 27,976 81,965 (130 ) 114,384 Income taxes payable — 9,573 — (3,984 ) 5,589 Deferred revenue, current — 19,530 56,574 — 76,104 Deferred income taxes, current 511 — 363 (511 ) 363 Capital lease, current — — 214 — 214 Intercompany payable 121,263 — 169,864 (291,127 ) — Total current liabilities 126,347 57,079 308,980 (295,752 ) 196,654 Long-term debt 354,437 246,749 — — 601,186 Capital lease, non-current — — 148 — 148 Liability for uncertain tax positions — 35,917 — — 35,917 Deferred income taxes, non-current 24,936 — 19,053 — 43,989 Deferred revenue, non-current — 4,667 1,871 — 6,538 Other long-term liabilities 1,779 683 15,766 — 18,228 Total liabilities 507,499 345,095 345,818 (295,752 ) 902,660 Commitments and contingencies — — — — — Preferred stock - Series A, $0.01 par value — — — — — Preferred stock - Series B, $0.01 par value — — — — — Common stock, $0.01 par value 479 — — — 479 Additional paid-in capital 292,064 238,631 524,031 (762,662 ) 292,064 Retained earnings 595,216 813,058 602,935 (1,384,420 ) 626,789 Accumulated other comprehensive income (loss) 2,449 238 (31,811 ) — (29,124 ) Total stockholders’ equity 890,208 1,051,927 1,095,155 (2,147,082 ) 890,208 Total liabilities and stockholders’ equity $ 1,397,707 $ 1,397,022 $ 1,440,973 $ (2,442,834 ) $ 1,792,868 j2 GLOBAL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET December 31, 2014 (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, current 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, current — 23,091 40,366 — 63,457 Deferred income taxes, current — — 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, non-current 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 Commitments and contingencies — — — — — Preferred stock - Series A, $0.01 par value — — — — — Preferred stock - Series B, $0.01 par value — — — — — 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 STATEMENT OF INCOME Year Ended December 31, 2015 (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 $ — $ 232,768 $ 554,560 $ (66,513 ) $ 720,815 Cost of revenues — 77,798 111,476 (66,316 ) 122,958 Gross profit — 154,970 443,084 (197 ) 597,857 Operating expenses: Sales and marketing — 39,240 119,966 (197 ) 159,009 Research, development and engineering — 14,844 19,485 — 34,329 General and administrative 15,849 26,842 162,446 — 205,137 Total operating expenses 15,849 80,926 301,897 (197 ) 398,475 Income (loss) from operations (15,849 ) 74,044 141,187 — 199,382 Equity earnings in Subsidiaries 151,894 116,142 — (268,036 ) — Interest expense, net 12,227 21,276 8,955 — 42,458 Other expense (income), net (271 ) 395 (119 ) — 5 Income before income taxes 124,089 168,515 132,351 (268,036 ) 156,919 Income tax expense (benefit) (9,547 ) 16,621 16,209 — 23,283 Net income $ 133,636 $ 151,894 $ 116,142 $ (268,036 ) $ 133,636 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 (loss) from operations (6,401 ) 95,700 96,907 — 186,206 Equity earnings in Subsidiaries 135,838 77,051 — (212,889 ) — Interest expense, 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 (benefit) (6,309 ) 16,294 19,855 — 29,840 Net income 125,327 135,838 77,051 (212,889 ) 125,327 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, 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 j2 GLOBAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Year Ended December 31, 2015 (In thousands) j2 Global, Inc. j2 Cloud Services, Inc. Non-guarantor Subsidiaries Consolidating Adjustments j2 Global Consolidated Net income $ 133,636 $ 151,894 $ 116,142 $ (268,036 ) $ 133,636 Other comprehensive loss, net of tax: Foreign currency translation adjustment, net of tax expense (benefit) — — (15,058 ) — (15,058 ) Unrealized gain (loss) on available-for-sale investments, net of tax expense (benefit) (6,939 ) — — — (6,939 ) Other comprehensive loss, net of tax (6,939 ) — (15,058 ) — (21,997 ) Comprehensive income $ 126,697 $ 151,894 $ 101,084 $ (268,036 ) $ 111,639 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 $ 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, 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 Comprehensive income attributable to j2 Global, Inc. $ — $ 111,728 $ 61,668 $ (61,551 ) $ 111,845 j2 GLOBAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS Year Ended December 31, 2015 (In thousands) j2 Global, Inc. j2 Cloud Services, Inc. Non-guarantor Subsidiaries Consolidating Adjustments j2 Global Consolidated Net cash (used in) provided by operating activities $ (29,406 ) $ 70,905 $ 187,562 $ — $ 229,061 Cash flows from investing activities: Maturity of certificates of deposit 65 — — — 65 Purchase of certificates of deposit (62 ) — — — (62 ) Maturity of available-for-sale investments 121,687 — — — 121,687 Purchase of available-for-sale investments (135,832 ) — — — (135,832 ) Purchases of property and equipment — (1,645 ) (15,652 ) — (17,297 ) Acquisition of businesses, net of cash received — — (302,809 ) — (302,809 ) Purchases of intangible assets — 57 (1,512 ) — (1,455 ) Investment in subsidiaries — — — — — Intercompany (53,317 ) 53,317 — — — Net cash (used in) provided by investing activities (67,459 ) 51,729 (319,973 ) — (335,703 ) Cash flows from financing activities: Repurchases of common and restricted stock (3,674 ) — — — (3,674 ) Issuance of common stock under employee stock purchase plan 260 — — — 260 Exercise of stock options 4,958 — — — 4,958 Dividends paid (58,826 ) — — — (58,826 ) Excess tax benefits from share-based compensation 4,486 — — — 4,486 Deferred payments for acquisitions — (2,000 ) (12,271 ) — (14,271 ) Other — — (296 ) — (296 ) Intercompany (29,835 ) (144,516 ) 174,351 — — Net cash (used in) provided by financing activities (82,631 ) (146,516 ) 161,784 — (67,363 ) Effect of exchange rate changes on cash and cash equivalents 8,222 (2,953 ) (9,397 ) — (4,128 ) Net change in cash and cash equivalents (171,274 ) (26,835 ) 19,976 — (178,133 ) Cash and cash equivalents at beginning of period 226,790 36,810 170,063 — 433,663 Cash and cash equivalents at end of period $ 55,516 $ 9,975 $ 190,039 $ — $ 255,530 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 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 ) Maturity 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 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 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 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 ) Maturity 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 investing activities — (36,046 ) (146,272 ) 14,920 (167,398 ) Cash flows from financing activities: 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 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 |
Supplemental Cash Flows Informa
Supplemental Cash Flows Information | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flows Information [Abstract] | |
Cash Flow, Supplemental Disclosures [Text Block] | Supplemental Cash Flows Information Cash paid for interest during the years ended December 31, 2015 , 2014 and 2013 was $33.1 million , $26.6 million and $21.1 million , respectively, substantially all of which related to interest on outstanding debt, foreign taxes and interest on settled acquisition holdback. Cash paid for income taxes net of refunds received was $42.0 million , $49.5 million and $28.3 million during the years ended December 31, 2015 , 2014 and 2013 , respectively. The Company acquired property and equipment for $0.6 million , $0.6 million and $0.9 million during the years ended December 31, 2015 , 2014 and 2013 , respectively, which had not been yet paid at the end of each such year. During the years ended December 31, 2015 , 2014 and 2013 , j2 Global recorded the tax benefit from the exercise of stock options and restricted stock as a reduction of its income tax liability of $7.5 million , $10.2 million and $7.1 million , respectively. In connection with the December 31, 2013 reorganization of Ziff Davis, Inc. into Ziff Davis, LLC, the Company acquired, in a non-cash transaction, all of the minority holders' equity interests in ZD, Inc., which included shares of Ziff Davis, Inc. Series A Preferred Stock and Ziff Davis, Inc. common stock. In this transaction, the Company issued the minority holders an aggregate fair market value of j2 common stock, j2 Series A Preferred Stock and j2 Series B Preferred Stock equal to the fair market value of the minority holders' shares in ZD, Inc. (see Note 12 - Stockholders' Equity). As a result of this reorganization, on December 31, 2013, the Ziff Davis Series A Preferred Stock and Ziff Davis common stock was extinguished, resulting in loss on extinguishment of debt and related interest expense of $14.4 million within the consolidated statement of income, in accordance with ASC 480, Distinguishing Liabilities from Equity . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive Income [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | Accumulated Other Comprehensive Income The following table summarizes the changes in accumulated balances of other comprehensive income, net of tax, for the years ended December 31, 2015 and 2014 (in thousands): Unrealized Gains (Losses) on Investments Foreign Currency Translation Total Balance as of January 1, 2014 $ 6,056 $ (1,821 ) $ 4,235 Other comprehensive income (loss) before reclassifications 3,346 (14,694 ) (11,348 ) Amounts reclassified from accumulated other comprehensive income (14 ) — (14 ) Net increase in other comprehensive income 3,332 (14,694 ) (11,362 ) Balance as of December 31, 2014 $ 9,388 $ (16,515 ) $ (7,127 ) Other comprehensive income (loss) before reclassifications (6,769 ) (15,058 ) (21,827 ) Amounts reclassified from accumulated other comprehensive income (170 ) — (170 ) Net increase (decrease) in other comprehensive income (6,939 ) (15,058 ) (21,997 ) Balance as of December 31, 2015 $ 2,449 $ (31,573 ) $ (29,124 ) The following table provides details about reclassifications out of accumulated other comprehensive income for the years ended December 31, 2015 and 2014 (in thousands): Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Statement of Income Year Ended December 31, 2015 Year Ended December 31, 2014 Unrealized gain (loss) on available-for-sale investments $ (274 ) $ (23 ) Other expense (income), net (274 ) (23 ) Total, before income taxes 104 9 Income tax expense (benefit) (170 ) (14 ) Total, net of tax Total reclassifications for the period $ (170 ) $ (14 ) Total, net of tax |
Quarterly Results
Quarterly Results | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Results [Abstract] | |
Quarterly Financial Information [Text Block] | Quarterly Results (unaudited) The following tables contain selected unaudited statement of income information for each quarter of 2015 and 2014 (in thousands, except share and per share data). j2 Global believes that the following information reflects all normal recurring adjustments necessary for a fair presentation of the information for the periods presented. The operating results for any quarter are not necessarily indicative of results for any future period. Year Ended December 31, 2015 Fourth Quarter Third Quarter Second Quarter First Quarter Revenues $ 204,823 $ 178,701 $ 176,038 $ 161,253 Gross profit 170,215 148,032 146,544 133,067 Net income 35,467 37,375 38,916 21,877 Net income attributable to j2 Global, Inc. common shareholders 35,467 37,375 38,916 21,877 Net income per common share: Basic $ 0.73 $ 0.77 $ 0.81 $ 0.45 Diluted $ 0.72 $ 0.77 $ 0.80 $ 0.45 Weighted average shares outstanding Basic 47,849,748 47,696,224 47,537,597 47,422,396 Diluted 48,772,061 47,953,871 47,853,574 47,766,088 Year Ended December 31, 2014 Fourth Quarter Third Quarter Second Quarter First Quarter Revenues $ 167,144 $ 153,018 $ 144,744 $ 134,124 Gross profit 138,145 124,974 119,186 110,736 Net income 32,754 28,759 35,049 28,765 Net income attributable to j2 Global, Inc. common shareholders 31,763 28,759 35,049 28,765 Net income per common share: Basic $ 0.66 $ 0.60 $ 0.73 $ 0.61 Diluted $ 0.66 $ 0.60 $ 0.73 $ 0.60 Weighted average shares outstanding Basic 47,146,503 46,845,477 46,745,596 46,365,158 Diluted 47,468,841 47,163,912 47,067,767 46,765,732 |
Unrestricted Subsidiaries (Note
Unrestricted Subsidiaries (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Unrestricted Subsidiaries [Abstract] | |
Unrestricted Subsidiaries [Text Block] | Unrestricted Subsidiaries (unaudited) As of December 31, 2015, the Company's Board of Directors had designated the following entities as “Unrestricted Subsidiaries” under the indenture governing j2 Cloud Services' Senior Notes: Ziff Davis, LLC and subsidiaries. Advanced Messaging Technologies, Inc. and subsidiaries The financial position and results of operations of these Unrestricted Subsidiaries are included in the Company's consolidated financial statements. As required by the indenture governing j2 Cloud Services' Senior Notes, information sufficient to ascertain the financial condition and results of operations excluding the Unrestricted Subsidiaries must be presented. Accordingly, the Company is presenting the following tables. The consolidated financial position of the Unrestricted Subsidiaries as of December 31, 2015 and 2014 is as follows (in thousands): December 31, 2015 December 31, 2014 ASSETS Cash and cash equivalents $ 16,482 $ 27,944 Accounts receivable 79,283 57,005 Prepaid expenses and other current assets 5,437 2,986 Deferred income taxes, current 3,382 5,292 Total current assets 104,584 93,227 Property and equipment, net 25,353 12,834 Trade names, net 73,034 70,310 Patent and patent licenses, net 18,071 24,007 Customer relationships, net 68,317 55,925 Goodwill 304,943 245,613 Other purchased intangibles, net 7,810 8,901 Deferred income taxes, non-current 2,373 — Other assets — 1,706 Total assets $ 604,485 $ 512,523 LIABILITIES AND STOCKHOLDERS’ EQUITY Accounts payable and accrued expenses $ 88,580 $ 40,296 Income taxes payable — 316 Deferred revenue, current 6,554 5,277 Total current liabilities 95,134 45,889 Long-term debt 155,000 110,000 Deferred income taxes, non-current 11,270 17,397 Other long-term liabilities 13,546 16,243 Total liabilities 274,950 189,529 Additional paid-in capital 319,728 317,932 Retained earnings 11,552 6,051 Accumulated other comprehensive income (loss) (1,745 ) (989 ) Total stockholders’ equity 329,535 322,994 Total liabilities and stockholders’ equity $ 604,485 $ 512,523 The consolidated results of operations of the Unrestricted Subsidiaries for the years ended December 31, 2015 and 2014 are as follows (in thousands): Years Ended December 31, 2015 2014 Revenues $ 217,778 $ 169,065 Cost of revenues 21,749 19,028 Gross profit 196,029 150,037 Operating expenses: Sales and marketing 78,176 68,057 Research, development and engineering 8,134 5,485 General and administrative 87,161 52,768 Total operating expenses 173,471 126,310 Income from operations 22,558 23,727 Other income (expenses): Interest expense, net 11,179 821 Other expense (income), net 290 347 Income before income taxes 11,089 22,559 Income tax expense 5,588 4,883 Net income 5,501 17,676 Less net income attributable to noncontrolling interest — — Net income attributable to common stockholders $ 5,501 $ 17,676 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On January 22, 2016, in a cash transaction, the Company acquired certain assets of Yotta280, Inc., a Florida based provider of backup and disaster recovery services. On January 27, 2016, in a cash transaction, the Company acquired certain assets of Mailout Interactive Inc., a Canada based provider of email services. On February 10, 2016 , the Company's Board of Directors declared a quarterly cash dividend of $0.3250 per share of common stock payable on March 10, 2016 to all stockholders of record as of the close of business on February 23, 2016 . In addition, the Company's Board of Directors extended the Company's share repurchase program set to expire February 20, 2016 to February 20, 2017. On February 17, 2016, in a cash transaction, the Company acquired certain assets of VaultLogix LLC., a Maine based provider of cloud data backup services. |
Basis Of Presentation (Policy)
Basis Of Presentation (Policy) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | (a) Principles of Consolidation The accompanying consolidated financial statements include the accounts of j2 Global and its direct and indirect wholly-owned and less-than-wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Holding Company Reorganization On June 10, 2014, j2 Global, Inc., a Delaware corporation, completed a corporate reorganization (the “Holding Company Reorganization”) pursuant to which j2 Global, Inc. (the “Predecessor”), merged with j2 Merger Sub, Inc., a Delaware corporation and an indirect, wholly owned subsidiary of the Predecessor, and changed its name to “j2 Cloud Services, Inc.” The Predecessor surviving the merger became a direct, wholly owned subsidiary of a new public holding company, j2 Global Holdings, Inc. (the “Holding Company”), which in connection with the merger changed its name to j2 Global, Inc. At the effective time of the merger and in connection with the Holding Company Reorganization, all outstanding shares of common stock and preferred stock of the Predecessor were automatically converted into identical shares of common stock or preferred stock, as applicable, of the Holding Company on a one-for-one basis, and the Predecessor’s existing stockholders and other equity holders became stockholders and equity holders, as applicable, of the Holding Company in the same amounts and percentages as they were in the Predecessor prior to the Holding Company Reorganization. |
Use Of Estimates | (b) Use of Estimates The preparation of consolidated financial statements in accordance with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, including judgments about investment classifications, and the reported amounts of net revenue and expenses during the reporting period. We believe that our most significant estimates are those related to valuation and impairment of marketable securities, valuation of assets acquired and liabilities assumed in connection with business combinations, long-lived and intangible asset impairment, contingent consideration, income taxes and contingencies and allowance for doubtful accounts. On an ongoing basis, management evaluates its estimates based on historical experience and on various other factors that the Company believes to be reasonable under the circumstances. Actual results could materially differ from those estimates. |
Allowances For Doubtful Accounts | (c) Allowances for Doubtful Accounts j2 Global reserves for receivables it may not be able to collect. These reserves for the Company's Business Cloud Services are typically driven by the volume of credit card declines and past due invoices and are based on historical experience as well as an evaluation of current market conditions. These reserves for the Company's Digital Media segment are typically driven by past due invoices and are based on historical experience. On an ongoing basis, management evaluates the adequacy of these reserves. |
Revenue Recognition | (d) Revenue Recognition Business Cloud Services The Company's Business Cloud Services revenues substantially consist of monthly recurring subscription and usage-based fees, which are primarily paid in advance by credit card. In accordance with GAAP, the Company recognizes revenue when persuasive evidence of an arrangement exists, services have been provided, the sales price is fixed and determinable and collection is probable. The Company defers the portions of monthly, quarterly, semi-annually and annually recurring subscription and usage-based fees collected in advance and recognizes them in the period earned. Additionally, the Company defers and recognizes subscriber activation fees and related direct incremental costs over a subscriber's estimated useful life. j2 Global's Business Cloud Services also include patent license revenues generated under license agreements that provide for the payment of contractually determined fully paid-up or royalty-bearing license fees to j2 Global in exchange for the grant of non-exclusive, retroactive and future licenses to our intellectual property, including patented technology. Patent revenues may also consist of revenues generated from the sale of patents. Patent license revenues are recognized when earned over the term of the license agreements. With regard to fully paid-up license arrangements, the Company recognizes as revenue in the period the license agreement is executed the portion of the payment attributable to past use of the intellectual property and amortizes the remaining portion of such payments on a straight-line basis, or pro-rata revenue basis, as appropriate over the life of the licensed patent(s). With regard to royalty-bearing license arrangements, the Company recognizes revenues of license fees earned during the applicable period. With regard to patent sales, the Company recognizes as revenue in the period of the sale the amount of the purchase price over the carrying value of the patent(s) sold. The Business Cloud Services business also generates revenues by licensing certain technology to third parties. These licensing revenues are recognized when earned in accordance with the terms of the underlying agreement. Generally, revenue is recognized as the third party uses the licensed technology over the period. Digital Media The Company's Digital Media revenues primarily consist of revenues generated from the sale of advertising campaigns that are targeted to the Company's proprietary websites and to those websites operated by third parties that are part of the Digital Media business's advertising network. Revenues for these advertising campaigns are recognized as earned either when an ad is placed for viewing by a visitor to the appropriate web page or when the visitor "clicks through" on the ad, depending upon the terms with the individual advertiser. Revenues for Digital Media business-to-business operations consist of lead-generation campaigns for IT vendors and are recognized as earned when the Company delivers the qualified leads to the customer. j2 Global also generates Digital Media revenues through the license of certain assets to clients, for the clients' use in their own promotional materials or otherwise. Such assets may include logos, editorial reviews, or other copyrighted material. Revenues under such license agreements are recognized when the assets are delivered to the client. Also, Digital Media revenues are generated through the license of certain speed testing technology which is recognized when delivered to the client through providing data services primarily to Internet Service Providers ("ISPs") and wireless carriers which is recognized as earned over the term of the access period. The Digital Media business also generates other types of revenues, including business listing fees, subscriptions to online publications, and from other sources. Such other revenues are recognized as earned. The Company determines whether Digital Media revenue should be reported on a gross or net basis by assessing whether the Company is acting as the principal or an agent in the transaction. If the Company is acting as the principal in a transaction, the Company reports revenue on a gross basis. If the Company is acting as an agent in a transaction, the Company reports revenue on a net basis. In determining whether the Company acts as the principal or an agent, the Company follows the accounting guidance for principal-agent considerations and the Company places the most weight on three factors: whether or not the Company (i) is the primary obligor in the arrangement, (ii) has latitude in determining pricing and (iii) bears credit risk. The Company records revenue on a gross basis with respect to revenue generated (i) by the Company serving online display and video advertising across its owned-and-operated web properties, on third party sites or on unaffiliated advertising networks, (ii) through the Company’s lead-generation business and (iii) through the Company’s Digital Media licensing program. The Company records revenue on a net basis with respect to revenue paid to the Company by certain third-party advertising networks who serve online display and video advertising across the Company’s owned-and-operated web properties and certain third party sites. |
Fair Value Measurements | (e) Fair Value Measurements j2 Global complies with the provisions of Financial Accounting Standards Board (“FASB”) ASC Topic No. 820, Fair Value Measurements and Disclosures (“ASC 820”), in measuring fair value and in disclosing fair value measurements. ASC 820 provides a framework for measuring fair value and expands the disclosures required for fair value measurements of financial and non-financial assets and liabilities. As of December 31, 2015 , the carrying value of cash and cash equivalents, short-term investments, accounts receivable, interest receivable, accounts payable, accrued expenses, interest payable, customer deposits and long-term debt are reflected in the financial statements at cost. With the exception of long-term debt, cost approximates fair value due to the short-term nature of such instruments. The fair value of the Company's outstanding debt was determined using the quoted market prices of debt instruments with similar terms and maturities, if available. As of the same dates, the carrying value of other long-term liabilities approximated fair value as the related interest rates approximate rates currently available to j2 Global. |
Cash and Cash Equivalents, Policy [Policy Text Block] | (f) Cash and Cash Equivalents j2 Global considers cash equivalents to be only those investments that are highly liquid, readily convertible to cash and with maturities of three months or less at the purchase date. |
Investment, Policy [Policy Text Block] | (g) Investments j2 Global accounts for its investments in debt and equity securities in accordance with FASB ASC Topic No. 320, Investments - Debt and Equity Securities (“ASC 320”). Debt investments are typically comprised of corporate and governmental debt securities. Equity securities recorded as available-for-sale represent strategic equity investments. j2 Global determines the appropriate classification of its investments at the time of acquisition and evaluates such determination at each balance sheet date. Held-to-maturity securities are those investments which the Company has the ability and intent to hold until maturity and are recorded at amortized cost. Available-for-sale securities are those investments j2 Global does not intend to hold to maturity and can be sold. Available-for-sale securities are carried at fair value with unrealized gains and losses included in other comprehensive income. Trading securities are carried at fair value, with unrealized gains and losses included in investment income. Securities are accounted for on a specific identification basis, average cost method or other method, as appropriate. |
Debt, Policy [Policy Text Block] | (h) Debt Issuance Costs and Debt Discount j2 Global capitalizes costs incurred with borrowing and issuance of debt securities and records debt discounts as a reduction to the debt amount. j2 Global capitalized third-party costs incurred in connection with its sale of senior unsecured notes within long-term other assets and recorded the original purchase discount as a reduction to such notes (see Note 8 - Long Term Debt). These costs and discounts are amortized and included in interest expense over the life of the borrowing or term of the credit facility using the interest method. |
Derivatives, Policy [Policy Text Block] | (i) Derivative Instruments j2 Global currently holds an embedded derivative instrument related to contingent interest in connection with its 3.25% Convertible Notes issued on June 10, 2014. This embedded derivative instrument is carried at fair value with changes recorded to interest expense (see Note 5 - Fair Value Measurements). |
Concentration Of Credit Risk | (j) Concentration of Credit Risk All of the Company’s cash, cash equivalents and marketable securities are invested at major financial institutions primarily within the United States, United Kingdom and Ireland. These institutions are required to invest the Company’s cash in accordance with the Company’s investment policy with the principal objectives being preservation of capital, fulfillment of liquidity needs and above market returns commensurate with preservation of capital. The Company’s investment policy also requires that investments in marketable securities be in only highly rated instruments, with limitations on investing in securities of any single issuer. However, these investments are not insured against the possibility of a total or near complete loss of earnings or principal and are inherently subject to the credit risk related to the continued credit worthiness of the underlying issuer and general credit market risks. At December 31, 2015 , the Company’s cash and cash equivalents were maintained in accounts that are insured up to the limit determined by the applicable governmental agency. The Company's deposits held in qualifying financial institutions in Ireland are fully insured through March 28, 2018 to the extent on deposit prior to March 28, 2013. With respect to the Company's deposits with financial institutions in other jurisdictions, the insured amount held in other institutions is immaterial in comparison to the total amount of the Company’s cash and cash equivalents held by these institutions which is not insured. These institutions are primarily in the United States and United Kingdom, however, the Company has accounts within several other countries including Australia, Austria, China, France, Germany, Italy, Japan, New Zealand, the Netherlands and Poland. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | (k) Foreign Currency Some of j2 Global's foreign subsidiaries use the local currency of their respective countries as their functional currency. Assets and liabilities are translated at exchange rates prevailing at the balance sheet dates. Revenues, costs and expenses are translated into U.S. Dollars at average exchange rates for the period. Gains and losses resulting from translation are recorded as a component of accumulated other comprehensive income/(loss). Net translation gain/(loss) was $(15.1) million , $(14.7) million and $0.1 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Realized gains and losses from foreign currency transactions are recognized within other expense (income), net. Net transaction gain/(loss) was $(0.1) million , $(0.1) million and $0.4 million for the years ended December 31, 2015, 2014 and 2013, respectively. |
Property, Plant and Equipment, Policy [Policy Text Block] | (l) Property and Equipment Property and equipment are stated at cost. Equipment under capital leases is stated at the present value of the minimum lease payments. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. The estimated useful lives of property and equipment range from one to 10 years. Fixtures, which are comprised primarily of leasehold improvements and equipment under capital leases, are amortized on a straight-line basis over their estimated useful lives or for leasehold improvements, the related lease term, if less. The Company has capitalized certain internal use software and website development costs which are included in property and equipment. The estimated useful life of costs capitalized is evaluated for each specific project and ranges from 1 to 5 years. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | (m) Long-Lived Assets j2 Global accounts for long-lived assets, which include property and equipment and identifiable intangible assets with finite useful lives (subject to amortization), in accordance with the provisions of FASB ASC Topic No. 360, Property, Plant, and Equipment (“ASC 360”), which requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability is measured by comparing the carrying amount of an asset to the expected undiscounted future net cash flows generated by the asset. If it is determined that the asset may not be recoverable, and if the carrying amount of an asset exceeds its estimated fair value, an impairment charge is recognized to the extent of the difference. j2 Global assessed whether events or changes in circumstances have occurred that potentially indicate the carrying amount of long-lived assets may not be recoverable. No impairment was recorded in fiscal year 2015, 2014 and 2013. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | (n) Goodwill and Intangible Assets Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in a business combination. Intangible assets resulting from the acquisitions of entities accounted for using the purchase method of accounting are recorded at the estimated fair value of the assets acquired. Identifiable intangible assets are comprised of purchased customer relationships, trademarks and trade names, developed technologies and other intangible assets. Intangible assets subject to amortization are amortized over the period of estimated economic benefit ranging from 1 to 20 years. In accordance with FASB ASC Topic No. 350, Intangibles - Goodwill and Other (“ASC 350”), goodwill and other intangible assets with indefinite lives are not amortized but tested annually for impairment or more frequently if j2 Global believes indicators of impairment exist. In connection with the annual impairment test for goodwill, the Company has the option to perform a qualitative assessment in determining whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company determines that it was more likely than not that the fair value of the reporting unit is less than its carrying amount, then it performs the impairment test upon goodwill. The impairment test involves a two-step process. The first step involves comparing the fair values of the applicable reporting units with their aggregate carrying values, including goodwill. The Company generally determines the fair value of its reporting units using the income approach methodology of valuation. If the carrying value of a reporting unit exceeds the reporting unit's fair value, j2 Global performs the second step of the test to determine the amount of impairment loss. The second step involves measuring the impairment by comparing the implied fair values of the affected reporting unit's goodwill and intangible assets with the respective carrying values. In connection with the annual impairment test for indefinite-lived intangible assets, we have the option to perform a qualitative assessment in determining whether it is more likely than not that the fair value is less than its carrying amount, then we perform the impairment test upon indefinite-lived intangible assets. The impairment testing for indefinite-lived intangible assets consists of comparing the carrying values to the fair values and an impairment loss is recorded if the carrying value exceeds the fair value. j2 Global completed the required impairment review at the end of 2015, 2014 and 2013 and concluded that there were no impairments. Consequently, no impairment charges were recorded. |
Business Combinations Policy [Policy Text Block] | (o) Contingent Consideration j2 Global measures the contingent earn-out liabilities at fair value on a recurring basis using significant unobservable inputs classified within Level 3 of the fair value hierarchy (see Note 5 - Fair Value Measurements). The Company may use various valuation techniques depending on the terms and conditions of the contingent consideration including a Monte-Carlo simulation. This simulation uses probability distribution for each significant input to produce hundreds or thousands of possible outcomes and the results are analyzed to determine probabilities of different outcomes occurring. Significant increases or decreases to these inputs in isolation would result in a significantly higher or lower liability with a higher liability capped by the contractual maximum of the contingent earn-out obligation. Ultimately, the liability will be equivalent to the amount paid, and the difference between the fair value estimate and amount paid will be recorded in earnings. The amount paid that is less than or equal to the liability on the acquisition date is reflected as cash used in financing activities in our consolidated statements of cash flows. Any amount paid in excess of the liability on the acquisition date is reflected as cash used in operating activities. j2 Global reviews and re-assess the estimated fair value of contingent consideration on a quarterly basis, and the updated fair value could differ materially from the initial estimates. Changes in the estimated fair value of our contingent earn-out liabilities related to the time component of the present value calculation are reported in interest expense. Adjustments to the estimated fair value related to changes in all other unobservable inputs are reported in operating income. |
Income Taxes | (p) Income Taxes j2 Global's income is subject to taxation in both the U.S. and numerous foreign jurisdictions. Significant judgment is required in evaluating the Company's tax positions and determining its provision for income taxes. During the ordinary course of business, there are many transactions and calculations for which the ultimate tax determination is uncertain. j2 Global establishes reserves for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. These reserves for tax contingencies are established when the Company believes that certain positions might be challenged despite the Company's belief that its tax return positions are fully supportable. j2 Global adjusts these reserves in light of changing facts and circumstances, such as the outcome of a tax audit or lapse of a statute of limitations. The provision for income taxes includes the impact of reserve provisions and changes to reserves that are considered appropriate. j2 Global accounts for income taxes in accordance with FASB ASC Topic No. 740, Income Taxes (“ASC 740”), which requires that deferred tax assets and liabilities be recognized using enacted tax rates for the effect of temporary differences between the book and tax basis of recorded assets and liabilities. ASC 740 also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some or all of the net deferred tax assets will not be realized. The valuation allowance is reviewed quarterly based upon the facts and circumstances known at the time. In assessing this valuation allowance, j2 Global reviews historical and future expected operating results and other factors, including its recent cumulative earnings experience, expectations of future taxable income by taxing jurisdiction and the carryforward periods available for tax reporting purposes, to determine whether it is more likely than not that deferred tax assets are realizable. ASC 740 provides guidance on the minimum threshold that an uncertain income tax benefit is required to meet before it can be recognized in the financial statements and applies to all income tax positions taken by a company. ASC 740 contains a two-step approach to recognizing and measuring uncertain income tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. If it is not more likely than not that the benefit will be sustained on its technical merits, no benefit will be recorded. Uncertain income tax positions that relate only to timing of when an item is included on a tax return are considered to have met the recognition threshold. j2 Global recognized accrued interest and penalties related to uncertain income tax positions in income tax expense on its consolidated statement of income. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | (q) Share-Based Compensation j2 Global accounts for share-based awards in accordance with the provisions of FASB ASC Topic No. 718, Compensation - Stock Compensation (“ASC 718”). Accordingly, j2 Global measures share-based compensation expense at the grant date, based on the fair value of the award, and recognizes the expense over the employee's requisite service period using the straight-line method. The measurement of share-based compensation expense is based on several criteria, including but not limited to the valuation model used and associated input factors, such as expected term of the award, stock price volatility, risk free interest rate, dividend rate and award cancellation rate. These inputs are subjective and are determined using management's judgment. If differences arise between the assumptions used in determining share-based compensation expense and the actual factors, which become known over time, j2 Global may change the input factors used in determining future share-based compensation expense. Any such changes could materially impact the Company's results of operations in the period in which the changes are made and in periods thereafter. The Company estimates the expected term based upon the historical exercise behavior of our employees. j2 Global accounts for option grants to non-employees in accordance with FASB ASC Topic No. 505, Equity, whereby the fair value of such options is determined using the Black-Scholes option pricing model at the earlier of the date at which the non-employee's performance is complete or a performance commitment is reached. |
Earnings Per Share, Policy [Policy Text Block] | (r) Earnings Per Common Share EPS is calculated pursuant to the two-class method as defined in ASC Topic No. 260, Earnings per Share (“ASC 260”), which specifies that all outstanding unvested share-based payment awards that contain rights to nonforfeitable dividends or dividend equivalents are considered participating securities and should be included in the computation of EPS pursuant to the two-class method. Basic EPS is calculated by dividing net distributed and undistributed earnings allocated to common shareholders, excluding participating securities and the net income attributable to noncontrolling interest, by the weighted-average number of common shares outstanding. The Company's participating securities consist of its unvested share-based payment awards that contain rights to nonforfeitable dividends or dividend equivalents. Diluted EPS includes the determinants of basic EPS and, in addition, reflects the impact of other potentially dilutive shares outstanding during the period. The dilutive effect of participating securities is calculated under the more dilutive of either the treasury method or the two-class method. |
Research and Development Expense, Policy [Policy Text Block] | (s) Research, Development and Engineering Research, development and engineering costs are expensed as incurred. Costs for software development incurred subsequent to establishing technological feasibility, in the form of a working model, are capitalized and amortized over their estimated useful lives. To date, software development costs incurred after technological feasibility has been established have not been material. |
Segment Reporting, Policy [Policy Text Block] | (t) Segment Reporting FASB ASC Topic No. 280, Segment Reporting (“ASC 280”), establishes standards for the way that public business enterprises report information about operating segments in annual consolidated financial statements and requires that those enterprises report selected information about operating segments in interim financial reports. ASC 280 also establishes standards for related disclosures about products and services, geographic areas and major customers. As a result of the acquisition of Ziff Davis, Inc., the Company operates as two segments: (1) Business Cloud Services and (2) Digital Media. |
Advertising Costs, Policy [Policy Text Block] | (u) Advertising Costs Advertising costs are expensed as incurred. Advertising costs for the year ended December 31, 2015, 2014 and 2013 was $63.5 million , $60.5 million and $55.4 million , respectively. |
Revenue Recognition, Excise and Sales Taxes | (v) Sales Taxes The Company may collect sales taxes from certain customers which are remitted to governmental authorities as required and are excluded from revenues. |
New Accounting Pronouncements, Policy [Policy Text Block] | (w) Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, as a new Topic, Accounting Standards Codification (ASC) Topic 606. The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date, which deferred the effective date of the new revenue standard for periods beginning after December 15, 2016 to December 15, 2017, with early adoption permitted but not earlier than the original effective date. This ASU must be applied retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The Company is continuing to evaluate the effect and methodology of adopting this new accounting guidance upon the Company's results of operations, cash flows and financial position. In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties About an Entity's Ability to Continue as a Going Concern. The new standard provides guidance around management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The adoption of this standard is not expected to have a material impact on our financial statements. In November 2014, the FASB issued ASU No. 2014-16, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share is More Akin to Debt or to Equity, which clarifies how current guidance should be interpreted in evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. Specifically, the amendments clarify that an entity should consider all relevant terms and features, including the embedded derivative feature being evaluated for bifurcation, in evaluating the nature of the host contract. The assessment of the substance of the relevant terms and features should incorporate a consideration of: (1) the characteristics of the terms and features themselves; (2) the circumstances under which the hybrid financial instrument was issued or acquired; and (3) the potential outcomes of the hybrid financial instrument, as well as the likelihood of those potential outcomes. The amendments in this ASU apply to all entities that are issuers of, or investors in, hybrid financial instruments that are issued in the form of a share. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. Early adoption is permitted. The Company is currently evaluating the impact of adoption on our financial statements and related disclosures. In January 2015, the FASB issued ASU No. 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on our financial statements. In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis. The amendments in this ASU provide guidance which changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. The amendments in this ASU are effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. The adoption of this standard is not expected to have a material impact on our financial statements. In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The amendments in this ASU provide guidance which require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The amendments in this ASU are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. The adoption of this standard is not expected to have a material impact on our financial statements. In April 2015, the FASB issued ASU No. 2015-05, Intangibles - Goodwill and Other Internal - Use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in a Cloud Computing Arrangement. The amendments in this ASU provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. The amendments in this ASU are effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. An entity can elect to adopt the amendments either (1) prospectively to all arrangements entered into or materially modified after the effective date or (2) retrospectively. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on our financial statements. In June 2015, the FASB issued ASU No. 2015-10, Technical Corrections and Improvements. The amendments in this update cover a wide range of topics in the Codification and are generally categorized as follows: Amendments Related to Differences between Original Guidance and the Codification; Guidance Clarification and Reference Corrections; Simplification; and Minor Improvements. The amendments are effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. Since the this update is intended to clarify the Codification, correct unintended application of guidance, or make minor improvements to the Codification that are not expected to have a significant effect on current accounting practice, the adoption of this standard is not expected to have a material impact on our financial statements. In September 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805). The amendments in this ASU require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. In addition, the amendments in this ASU require that the acquirer record, in the same period's financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. Finally, the amendments in this ASU require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The amendments in this ASU are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years and should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this update. The Company decided to early adopt this guidance in the third quarter of 2015. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes. This ASU requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. This ASU is effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. The Company is currently evaluation the impact that this ASU will have on its financial position or financial statement disclosures. In January 2016, the FASB issued ASU No. 2016-1, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The amendments in this ASU modifies how entities measure equity investments and present changes in the fair value of financial liabilities. Under the new guidance, entities will have to measure equity investments that do not result in consolidation and are not accounted under the equity method at fair value and recognize any changes in fair value in net income unless the investments qualify for the new practicality exception. A practicality exception will apply to those equity investments that do not have a readily determinable fair value and do not qualify for the practical expedient to estimate fair value under ASC 820, Fair Value Measurements, and as such these investments may be measured at cost. ASU 2016-01 is effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company is currently evaluating the impact of this ASU on our financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases. This ASU establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently evaluating the impact of the pending adoption of this new standard on our financial statements. |
Comparability of Prior Year Financial Data, Policy [Policy Text Block] | Reclassifications Certain prior year reported amounts have been reclassified to conform with the 2015 presentation. |
Business Acquisition (Tables)
Business Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following table summarizes the allocation of the purchase consideration as follows (in thousands): Assets and Liabilities Valuation Accounts receivable $ 24,658 Property and equipment 3,274 Other assets 2,703 Deferred tax asset 2,058 Software 3,031 Content 2,460 Trade name 18,581 Customer relationship 40,275 Advertiser relationship 11,770 Other intangibles 168 Goodwill 54,472 Deferred revenue (2,543 ) Other accrued liabilities (13,162 ) Total $ 147,745 The following table summarizes the allocation of the purchase consideration for these acquisitions (in thousands): Assets and Liabilities Valuation Accounts receivable $ 14,935 Property and equipment 5,769 Other assets 1,415 Software 18,764 Trade name 22,602 Customer relationship 98,027 Other intangibles 1,873 Goodwill 172,593 Deferred revenue (10,764 ) Deferred tax liability (1,316 ) Other accrued liabilities (9,684 ) Capital lease (195 ) Total $ 314,019 The following table summarizes the allocation of the purchase consideration as follows (in thousands): Assets and Liabilities Valuation Accounts receivable $ 18,024 Property and equipment 10,022 Other assets 5,500 Deferred tax asset 419 Software 9,836 Trade name 28,192 Customer relationship 98,498 Other intangibles 2,121 Goodwill 184,837 Deferred revenue (29,182 ) Deferred tax liability (12,328 ) Other accrued liabilities (14,338 ) Capital lease (1,361 ) Total $ 300,240 |
Business Acquisition, Pro Forma Information [Table Text Block] | The supplemental information on an unaudited pro forma financial basis presents the combined results of j2 Global and its 2014 acquisitions as if each acquisition had occurred on January 1, 2013 (in thousands, except per share amounts): Years ended December 31, 2014 December 31, 2013 (unaudited) (unaudited) Revenues $ 672,701 $ 626,906 Net income attributable to j2 Global, Inc. common shareholders $ 119,773 $ 132,480 EPS - Basic $ 2.51 $ 2.85 EPS - Diluted $ 2.49 $ 2.81 The supplemental information on an unaudited pro forma financial basis presents the combined results of j2 Global and its 2015 acquisitions as if each acquisition had occurred on January 1, 2014 (in thousands, except per share amounts): Year ended December 31, 2015 December 31, 2014 (unaudited) (unaudited) Revenues $ 823,904 $ 744,388 Net income attributable to j2 Global, Inc. common shareholders $ 159,408 $ 126,196 EPS - Basic $ 3.29 $ 2.64 EPS - Diluted $ 3.26 $ 2.62 The supplemental information on an unaudited pro forma financial basis presents the combined results of j2 Global and its 2013 acquisitions as if each acquisition had occurred on January 1, 2012 (in thousands, except per share amounts): Years ended December 31, December 31, (unaudited) (unaudited) Revenues $ 545,952 $ 470,190 Net income attributable to j2 Global, Inc. common shareholders $ 108,600 $ 122,187 EPS - Basic $ 2.34 $ 2.64 EPS - Diluted $ 2.31 $ 2.62 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments [Abstract] | |
Schedule Of Debt Securities By Contractual Maturity Date | The following table summarizes j2 Global’s debt securities designated as available-for-sale, classified by the contractual maturity date of the security (in thousands): December 31, December 31, 2014 Due within 1 year $ 56,940 $ 59,896 Due within more than 1 year but less than 5 years 78,248 60,178 Due within more than 5 years but less than 10 years — — Due 10 years or after 315 330 Total $ 135,503 $ 120,404 |
Schedule Of Available-For-Sale And Trading Securities | The following table summarizes the Company’s investments (in thousands): December 31, December 31, 2014 Available-for-sale $ 158,158 $ 156,649 Certificates of deposit 60 65 Total $ 158,218 $ 156,714 |
Summary Of Gross Unrealized Gains And Losses And Fair Values | The following table summarizes the gross unrealized gains and losses and fair values for investments classified as available for sale as of December 31, 2015 and December 31, 2014 aggregated by major security type (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2015 Corporate debt securities $ 88,852 $ 110 $ (213 ) $ 88,749 Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 40,715 — (63 ) 40,652 Debt securities issued by states of the United States and political subdivisions of the states 6,111 2 (10 ) 6,103 Equity securities 18,536 4,118 — 22,654 Total $ 154,214 $ 4,230 $ (286 ) $ 158,158 December 31, 2014 Corporate debt securities $ 91,456 $ 147 $ (136 ) $ 91,467 Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 26,848 9 (13 ) 26,844 Debt securities issued by states of the United States and political subdivisions of the states 2,088 5 — 2,093 Equity securities 20,611 15,634 — 36,245 Total $ 141,003 $ 15,795 $ (149 ) $ 156,649 |
Schedule of Unrealized Loss on Investments [Table Text Block] | The following tables present gross unrealized losses and fair values for those investments that were in an unrealized loss position as of December 31, 2015 and December 31, 2014 , aggregated by investment category and the length of time that individual securities have been in a continuous loss position (in thousands): As of December 31, 2015 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Corporate debt securities $ 74,807 $ (212 ) $ 1,000 $ (1 ) $ 75,807 $ (213 ) Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 38,004 (62 ) 649 (1 ) 38,653 (63 ) Debt securities issued by states of the United States and political subdivisions of the states 4,189 (10 ) — — 4,189 (10 ) Total $ 117,000 $ (284 ) $ 1,649 $ (2 ) $ 118,649 $ (286 ) As of December 31, 2014 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Corporate debt securities $ 57,898 $ (131 ) $ 1,260 $ (5 ) $ 59,158 $ (136 ) Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 15,072 (13 ) — — 15,072 (13 ) Total $ 72,970 $ (144 ) $ 1,260 $ (5 ) $ 74,230 $ (149 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule Of Fair Values Of Financial Instruments Measured On Recurring Basis | The following tables present the fair values of the Company’s financial assets or liabilities that are measured at fair value on a recurring basis (in thousands): December 31, 2015 Level 1 Level 2 Level 3 Fair Value Assets: Cash equivalents: Money market and other funds $ 46,867 $ — $ — $ 46,867 Time deposits — 3,004 — 3,004 Certificates of Deposit — 60 — 60 Equity securities 22,654 — — 22,654 Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies — 40,652 — 40,652 Debt securities issued by states of the United States and political subdivisions of the states — 6,103 — 6,103 Corporate debt securities — 88,749 — 88,749 Total assets measured at fair value $ 69,521 $ 138,568 $ — $ 208,089 Liabilities: Contingent consideration $ — $ — $ 30,600 $ 30,600 Contingent interest derivative — 1,450 — 1,450 Total liabilities measured at fair value $ — $ 1,450 $ 30,600 $ 32,050 December 31, 2014 Level 1 Level 2 Level 3 Fair Value Assets: Cash equivalents: Money market and other funds $ 212,645 $ — $ — $ 212,645 Time deposits — 51,807 — 51,807 Certificates of Deposit — 65 — 65 Equity securities 36,245 — — 36,245 Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies — 26,844 — 26,844 Debt securities issued by states of the United States and political subdivisions of the states — 2,093 — 2,093 Corporate debt securities — 91,467 — 91,467 Total assets measured at fair value $ 248,890 $ 172,276 $ — $ 421,166 Liabilities: Contingent consideration $ — $ — $ 15,000 $ 15,000 Contingent interest derivative — 742 — 742 Total liabilities measured at fair value $ — $ 742 $ 15,000 $ 15,742 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The following tables presents a reconciliation of the Company’s Level 3 financial assets or liabilities that are measured at fair value on a recurring basis (in thousands): Level 3 Affected line item in the Statement of Income Balance as of January 1, 2014 $ — Contingent consideration 15,000 Not Applicable Total (gains) losses reported in earnings — Transfers into or out of Level 3 — Balance as of December 31, 2014 $ 15,000 Contingent consideration $ (600 ) Not applicable Total (gains) losses reported in earnings 16,200 General and administrative Transfers into or out of Level 3 — Balance as of December 31, 2015 $ 30,600 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The following tables presents a reconciliation of the Company’s derivative instruments (in thousands): Amount Affected line item in the Statement of Income Derivative Liabilities: Level 2: Balance as of January 1, 2014 $ — Contingent interest 372 Total losses reported in earnings 370 Interest expense, net Balance as of December 31, 2014 $ 742 Total losses reported in earnings 708 Interest expense, net Balance as of December 31, 2015 $ 1,450 |
Property And Equipment (Tables)
Property And Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property And Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment, stated at cost, at December 31, 2015 and 2014 consisted of the following (in thousands): 2015 2014 Computers and related equipment $ 135,360 $ 100,537 Furniture and equipment 1,710 1,763 Leasehold improvements 10,603 9,098 147,673 111,398 Less: Accumulated depreciation and amortization (90,231 ) (73,181 ) Total property and equipment, net $ 57,442 $ 38,217 |
Goodwill And Intangible Assets
Goodwill And Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes In Carrying Amounts Of Goodwill | The changes in carrying amounts of goodwill for the year ended December 31, 2015 and 2014 are as follows (in thousands): Business Cloud Services Digital Media Consolidated Balance as of January 1, 2014 $ 316,682 $ 140,740 $ 457,422 Goodwill acquired 79,536 105,301 184,837 Purchase Accounting Adjustments (706 ) (329 ) (1,035 ) Foreign exchange translation (5,449 ) (100 ) (5,549 ) Balance as of December 31, 2014 $ 390,063 $ 245,612 $ 635,675 Goodwill acquired 108,913 63,680 172,593 Purchase accounting adjustments 10,900 (4,289 ) 6,611 Foreign exchange translation (7,158 ) (60 ) (7,218 ) Balance as of December 31, 2015 $ 502,718 $ 304,943 $ 807,661 |
Schedule Of Intangible Assets With Indefinite Lives | Intangible Assets with Indefinite Lives: 2015 2014 Trade names $ 27,379 $ 27,379 Other 5,432 5,432 Total $ 32,811 $ 32,811 |
Finite-Lived Intangible Assets By Major Class | As of December 31, 2015 , intangible assets subject to amortization relate primarily to the following (in thousands): Weighted-Average Amortization Period Historical Cost Accumulated Amortization Net Trade names 12.0 years $ 117,753 $ 26,167 $ 91,586 Patent and patent licenses 8.3 years 64,258 45,417 18,841 Customer relationships 9.4 years 313,909 116,590 197,319 Other purchased intangibles 4.2 years 33,088 21,004 12,084 Total $ 529,008 $ 209,178 $ 319,830 As of December 31, 2014 , intangible assets subject to amortization relate primarily to the following (in thousands): Weighted-Average Amortization Period Historical Cost Accumulated Amortization Net Trade names 14.5 years $ 94,770 $ 16,598 $ 78,172 Patent and patent licenses 9.0 years 62,940 38,013 24,927 Customer relationships 9.3 years 230,424 66,658 163,766 Other purchased intangibles 4.3 years 28,360 16,236 12,124 Total $ 416,494 $ 137,505 $ 278,989 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Expected amortization expense for intangible assets subject to amortization at December 31, 2015 are as follows (in thousands): Fiscal Year: 2016 $ 63,209 2017 58,498 2018 46,500 2019 33,665 2020 31,313 Thereafter 86,645 Total expected amortization expense $ 319,830 |
Long Term Debt (Tables)
Long Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Long-term Debt, Unclassified [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | Long-term debt as of December 31, 2015 and 2014 consists of the following (in thousands): 2015 2014 Senior Notes $ 246,750 $ 246,187 Convertible Notes 354,436 347,163 Total long-term debt $ 601,186 $ 593,350 Less: Current portion — — Total long-term debt, less current portion $ 601,186 $ 593,350 |
Schedule of Maturities of Long-term Debt [Table Text Block] | At December 31, 2015 , future principal payments for debt were as follows (in thousands): Years Ended December 31, 2016 $ — 2017 — 2018 — 2019 — 2020 250,000 Thereafter 402,500 $ 652,500 |
Commitments And Contingencies C
Commitments And Contingencies Commitments And Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies [Abstract] | |
Schedule of Capital Leased Assets [Table Text Block] | Capital Leases As of December 31, 2015 and 2014 , assets held under capital leases are as follows: 2015 2014 Capital leases $ 870 $ 805 Less: Accumulated depreciation (617 ) (440 ) Total capital leases, net $ 253 $ 365 |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | j2 Global leases certain facilities and equipment under non-cancelable operating leases which expire at various dates through 2025. Office and equipment leases are typically for terms of three to five years and generally provide renewal options for terms up to an additional five years. In most cases, the Company expects leases that expire will be renewed or replaced by other leases with similar terms. Future minimum lease payments at December 31, 2015 under non-cancelable operating leases (with initial or remaining lease terms in excess of one year) are as follows (in thousands): Lease Payments Fiscal Year: 2016 10,033 2017 9,685 2018 9,241 2019 7,611 2020 4,731 Thereafter 12,962 Total minimum lease payments $ 54,263 |
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | Future minimum payments at December 31, 2015 under all capital leases (with initial or remaining lease terms in excess of one year) are as follows (in thousands): Future Payments Fiscal Year: 2016 $ 140 2017 44 2018 7 2019 — 2020 — Thereafter — Total minimum lease payments $ 191 |
Income Taxes Income Taxes (Tabl
Income Taxes Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The provision for income tax consisted of the following (in thousands): Years Ended December 31, 2015 2014 2013 Current: Federal $ 21,745 $ 22,074 $ 22,834 State 1,805 3,822 2,676 Foreign 16,816 13,977 9,415 Total current 40,366 39,873 34,925 Deferred: Federal (8,581 ) (958 ) 3,678 State (3,462 ) (5,019 ) (235 ) Foreign (5,040 ) (4,056 ) (3,193 ) Total deferred (17,083 ) (10,033 ) 250 Total provision $ 23,283 $ 29,840 $ 35,175 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | A reconciliation of the statutory federal income tax rate with j2 Global's effective income tax rate is as follows: Years Ended December 31, 2015 2014 2013 Statutory tax rate 35 % 35 % 35 % State income taxes, net 0.3 0.6 0.3 Foreign rate differential (15.8 ) (13.8 ) (17.9 ) Reserve for uncertain tax positions (3.3 ) (2.2 ) 4.3 Valuation allowance 1.8 2.6 1.9 IRC Section 199 deductions (1.2 ) (0.5 ) (0.5 ) Other (2.0 ) (2.5 ) 1.6 Effective tax rates 14.8 % 19.2 % 24.7 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Deferred tax assets and liabilities result from differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. Temporary differences and carryforwards which give rise to deferred tax assets and liabilities are as follows (in thousands): Years Ended December 31, 2015 2014 Deferred tax assets: Net operating loss carryforwards $ 11,559 $ 13,774 Tax credit carryforwards 18,341 14,091 Accrued expenses 12,156 7,114 Allowance for bad debt 1,169 1,132 Share-based compensation expense 4,308 3,632 Impairment of investments 74 76 Deferred revenue 3,232 250 State taxes 522 2,333 Other 7,458 789 58,819 43,191 Less: valuation allowance (14,242 ) (11,358 ) Total deferred tax assets $ 44,577 $ 31,833 Deferred tax liabilities: Basis difference in fixed assets $ (5,457 ) $ (5,883 ) Basis difference in intangible assets (41,351 ) (51,566 ) Prepaid insurance (482 ) (420 ) Convertible debt (31,091 ) (26,272 ) Other (3,330 ) (7,981 ) Total deferred tax liabilities (81,711 ) (92,122 ) Net deferred tax liabilities $ (37,134 ) $ (60,289 ) |
Summary of Income Tax Contingencies [Table Text Block] | The aggregate changes in the balance of unrecognized tax benefits, which excludes interest and penalties, for 2015 , 2014 and 2013 , is as follows (in thousands): Years Ended December 31, 2015 2014 2013 Beginning balance $ 34,635 $ 40,888 35,421 Increases related to tax positions during a prior year 10,361 919 58 Decreases related to tax positions taken during a prior year (17,107 ) (8,284 ) (1,519 ) Increases related to tax positions taken in the current year 8,841 3,765 6,928 Settlements (4,194 ) (1,524 ) — Decreases related to expiration of statute of limitations — (1,129 ) — Ending balance $ 32,536 $ 34,635 $ 40,888 |
Stockholders' Equity Dividends
Stockholders' Equity Dividends Declared (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Dividends Declared [Table Text Block] | The following is a summary of each dividend declared during fiscal year 2015 and 2014: Declaration Date Dividend per Common Share Record Date Payment Date February 11, 2014 $ 0.2625 February 24, 2014 March 10, 2014 May 7, 2014 $ 0.27 May 19, 2014 June 3, 2014 August 5, 2014 $ 0.2775 August 18, 2014 September 2, 2014 October 30, 2014 $ 0.285 November 17, 2014 December 4, 2014 February 10, 2015 $ 0.2925 February 23, 2015 March 9, 2015 May 6, 2015 $ 0.3 May 19, 2015 June 3, 2015 August 3, 2015 $ 0.3075 August 17, 2015 September 1, 2015 November 3, 2015 $ 0.315 November 17, 2015 December 3, 2015 |
Stock Options And Employee St41
Stock Options And Employee Stock Purchase Plan (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stock Options Activity | Stock option activity for the years ended December 31, 2015 , 2014 and 2013 is summarized as follows: Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Life (In Years) Aggregate Intrinsic Value Options outstanding at January 1, 2013 1,765,461 $ 22.08 Granted — — Exercised (569,204 ) 23.90 Canceled (20,600 ) 21.79 Options outstanding at December 31, 2013 1,175,657 $ 21.08 Granted — — Exercised (433,008 ) 15.70 Canceled (17,000 ) 29.85 Options outstanding at December 31, 2014 725,649 $ 24.29 Granted 62,000 67.35 Exercised (221,221 ) 22.41 Canceled — — Options outstanding at December 31, 2015 566,428 $ 29.74 4.3 $29,782,205 Exercisable at December 31, 2015 457,792 $ 24.78 3.5 $26,341,699 Vested and expected to vest at December 31, 2015 545,070 $ 28.53 4.2 $29,316,663 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | The following table summarizes information concerning outstanding and exercisable options as of December 31, 2015 : Options Outstanding Exercisable Options Range of Exercise Prices Number Outstanding December 31, 2015 Weighted Average Remaining Contractual Life Weighted Average Exercise Price Number Exercisable December 31, 2015 Weighted Average Exercise Price $17.19 33,500 3.18 years $ 17.19 33,500 $ 17.19 20.91 77,448 2.34 years 20.91 77,448 20.91 21.67 66,720 3.35 years 21.67 66,720 21.67 21.88 770 1.95 years 21.88 770 21.88 22.92 98,716 4.35 years 22.92 98,716 22.92 24.61 - 28.52 54,874 3.88 years 27.32 37,874 27.63 29.34 90,700 5.36 years 29.34 72,564 29.34 29.53 - 31.07 25,000 6.07 years 29.99 13,500 30.21 32.45 56,700 1.59 years 32.45 56,700 32.45 67.35 62,000 9.35 years 67.35 — — $17.19 - $67.35 566,428 4.35 years $ 29.74 457,792 $ 24.78 |
Assumptions To Estimate Fair Value Of Stock Options | The weighted-average fair values of stock options granted have been estimated utilizing the following assumptions: Years Ended December 31, 2015 2014 2013 Risk-free interest rate 1.61% —% —% Expected term (in years) 5.2 0.0 0.0 Dividend yield 1.8% —% —% Expected volatility 28.12% —% —% Weighted average volatility 28.12% —% —% |
Restricted Stock [Member] | |
Restricted Stock And Restricted Stock Unit Award Activity | Restricted stock award activity for the years ended December 31, 2015 , 2014 and 2013 is set forth below: Shares Weighted-Average Grant-Date Fair Value Nonvested at January 1, 2013 828,475 $ 23.08 Granted 690,762 13.57 Vested (296,966 ) 21.46 Canceled (43,900 ) 24.46 Nonvested at December 31, 2013 1,178,371 $ 17.86 Granted 226,864 45.66 Vested (546,115 ) 15.63 Canceled (45,070 ) 35.55 Nonvested at December 31, 2014 814,050 $ 26.57 Granted 234,540 68.11 Vested (254,871 ) 25.16 Canceled (88,915 ) 40.97 Nonvested at December 31, 2015 704,804 $ 39.08 |
Restricted Stock Units (RSUs) [Member] | |
Restricted Stock And Restricted Stock Unit Award Activity | Restricted stock unit activity for the years ended December 31, 2015 , 2014 and 2013 is set forth below: Number of Weighted-Average Aggregate Outstanding at January 1, 2013 115,466 Granted 38,375 Vested (11,116 ) Canceled (33,000 ) Outstanding at December 31, 2013 109,725 Granted 38,737 Vested (19,598 ) Canceled (25,940 ) Outstanding at December 31, 2014 102,924 Granted 18,400 Vested (23,221 ) Canceled (41,858 ) Outstanding at December 31, 2015 56,245 1.8 $ 4,630,088 Vested and expected to vest at December 31, 2015 43,355 1.6 $ 3,568,998 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share Reconciliation [Abstract] | |
Components Of Basic And Diluted Earnings Per Share | The components of basic and diluted earnings per share are as follows (in thousands, except share and per share data): Years Ended December 31, 2015 2014 2013 Numerator for basic and diluted net income per common share: Net income attributable to j2 Global, Inc. common shareholders $ 133,636 $ 124,336 $ 107,522 Net income available to participating securities (a) (2,159 ) (2,590 ) (2,105 ) Net income available to j2 Global, Inc. common shareholders 131,477 121,746 105,417 Denominator: Weighted-average outstanding shares of common stock 47,627,853 46,778,015 45,548,767 Dilutive effect of: Equity incentive plans 293,911 328,523 591,252 Convertible debt (b) 165,996 — — Common stock and common stock equivalents 48,087,760 47,106,538 46,140,019 Net income per share: Basic $ 2.76 $ 2.60 $ 2.31 Diluted $ 2.73 $ 2.58 $ 2.28 (a) Represents unvested share-based payment awards that contain certain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid). (b) Represents the incremental shares issuable upon conversion of the Convertible Notes due June 15, 2029 by applying the treasury stock method when the average stock price exceeds the conversion price of the Convertible Notes. (see Note 8 - Long Term Debt) |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | Information on reportable segments and reconciliation to consolidated income from operations is as follows (in thousands): Years Ended December 31, 2015 2014 2013 Revenue by segment: Business Cloud Services $ 504,638 $ 431,475 $ 390,104 Digital Media 216,374 167,814 131,146 Elimination of inter-segment revenues (197 ) (259 ) (449 ) Total revenue 720,815 599,030 520,801 Direct costs by segment (1) : Business Cloud Services 294,436 241,592 191,169 Digital Media 185,937 137,321 124,413 Direct costs by segment (1) : 480,373 378,913 315,582 Business Cloud Services operating income 210,202 189,883 198,935 Digital Media operating income 30,437 30,493 6,733 Segment operating income 240,639 220,376 205,668 Global operating costs (2) 41,257 34,170 30,245 Income from operations $ 199,382 $ 186,206 $ 175,423 (1) Direct costs for each segment include cost of revenue and other operating expenses that are directly attributable to the segment such as employee compensation expense, local sales and marketing expenses, engineering and operations, depreciation and amortization and other administrative expenses. (2) Global operating costs include general and administrative and other corporate expenses that are managed on a global basis and that are not directly attributable to any particular segment. |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | 2015 2014 Assets: Business Cloud Services $ 1,018,606 $ 883,587 Digital Media 427,647 378,381 Total assets from reportable segments 1,446,253 1,261,968 Corporate 346,615 443,234 Total assets $ 1,792,868 $ 1,705,202 2015 2014 2013 Capital expenditures: Business Cloud Services $ 7,546 $ 6,639 $ 10,979 Digital Media 9,389 4,920 6,635 Total from reportable segments $ 16,935 $ 11,559 $ 17,614 Corporate 362 270 1,013 Total capital expenditures $ 17,297 $ 11,829 $ 18,627 Depreciation and amortization: Business Cloud Services $ 62,385 $ 39,699 $ 24,148 Digital Media 30,008 22,483 14,963 Total from reportable segments 92,393 62,182 39,111 Corporate 820 771 677 Total depreciation and amortization $ 93,213 $ 62,953 $ 39,788 |
Summary On Revenues And Long-Lived Assets By Geographic Areas | j2 Global maintains operations in the U.S., Canada, Ireland, Japan and other countries. Geographic information about the U.S. and all other countries for the reporting periods is presented below. Such information attributes revenues based on jurisdictions where revenues are reported (in thousands). Years Ended December 31, 2015 2014 2013 Revenues: United States $ 492,682 $ 403,279 $ 369,507 Canada 74,864 70,434 73,130 Ireland 43,717 42,979 41,398 All other countries 109,552 82,338 36,766 Total $ 720,815 $ 599,030 $ 520,801 December 31, December 31, Long-lived assets: United States $ 271,796 $ 216,099 All other countries 105,477 101,107 Total $ 377,273 $ 317,206 |
Condensed Consolidating Finan44
Condensed Consolidating Financials (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Consolidating Financials [Abstract] | |
Condensed Balance Sheet [Table Text Block] | j2 GLOBAL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET December 31, 2015 (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 55,516 9,975 190,039 — 255,530 Short-term investments 79,595 — 60 — 79,655 Accounts receivable, net — 10,679 104,131 (130 ) 114,680 Prepaid expenses and other current assets 6,887 8,500 14,319 (3,984 ) 25,722 Deferred income taxes — 3,316 4,413 (511 ) 7,218 Intercompany receivable 117,000 174,127 — (291,127 ) — Total current assets 258,998 206,597 312,962 (295,752 ) 482,805 Long-term investments 78,563 — — — 78,563 Property and equipment, net — 6,557 50,885 — 57,442 Trade names, net — 10,118 108,847 — 118,965 Patent and patent licenses, net — 743 18,098 — 18,841 Customer relationships, net — 1,193 196,126 — 197,319 Goodwill — 56,296 751,365 — 807,661 Other purchased intangibles, net — 4,218 13,298 — 17,516 Investment in subsidiaries 1,051,927 1,095,155 — (2,147,082 ) — Deferred income taxes — 14,978 (14,978 ) — — Other assets 8,219 1,167 4,370 — 13,756 Total assets $ 1,397,707 $ 1,397,022 $ 1,440,973 $ (2,442,834 ) $ 1,792,868 LIABILITIES AND STOCKHOLDERS’ EQUITY Accounts payable and accrued expenses 4,573 27,976 81,965 (130 ) 114,384 Income taxes payable — 9,573 — (3,984 ) 5,589 Deferred revenue, current — 19,530 56,574 — 76,104 Deferred income taxes, current 511 — 363 (511 ) 363 Capital lease, current — — 214 — 214 Intercompany payable 121,263 — 169,864 (291,127 ) — Total current liabilities 126,347 57,079 308,980 (295,752 ) 196,654 Long-term debt 354,437 246,749 — — 601,186 Capital lease, non-current — — 148 — 148 Liability for uncertain tax positions — 35,917 — — 35,917 Deferred income taxes, non-current 24,936 — 19,053 — 43,989 Deferred revenue, non-current — 4,667 1,871 — 6,538 Other long-term liabilities 1,779 683 15,766 — 18,228 Total liabilities 507,499 345,095 345,818 (295,752 ) 902,660 Commitments and contingencies — — — — — Preferred stock - Series A, $0.01 par value — — — — — Preferred stock - Series B, $0.01 par value — — — — — Common stock, $0.01 par value 479 — — — 479 Additional paid-in capital 292,064 238,631 524,031 (762,662 ) 292,064 Retained earnings 595,216 813,058 602,935 (1,384,420 ) 626,789 Accumulated other comprehensive income (loss) 2,449 238 (31,811 ) — (29,124 ) Total stockholders’ equity 890,208 1,051,927 1,095,155 (2,147,082 ) 890,208 Total liabilities and stockholders’ equity $ 1,397,707 $ 1,397,022 $ 1,440,973 $ (2,442,834 ) $ 1,792,868 j2 GLOBAL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET December 31, 2014 (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, current 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, current — 23,091 40,366 — 63,457 Deferred income taxes, current — — 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, non-current 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 Commitments and contingencies — — — — — Preferred stock - Series A, $0.01 par value — — — — — Preferred stock - Series B, $0.01 par value — — — — — 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 |
Condensed Income Statement [Table Text Block] | j2 GLOBAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME Year Ended December 31, 2015 (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 $ — $ 232,768 $ 554,560 $ (66,513 ) $ 720,815 Cost of revenues — 77,798 111,476 (66,316 ) 122,958 Gross profit — 154,970 443,084 (197 ) 597,857 Operating expenses: Sales and marketing — 39,240 119,966 (197 ) 159,009 Research, development and engineering — 14,844 19,485 — 34,329 General and administrative 15,849 26,842 162,446 — 205,137 Total operating expenses 15,849 80,926 301,897 (197 ) 398,475 Income (loss) from operations (15,849 ) 74,044 141,187 — 199,382 Equity earnings in Subsidiaries 151,894 116,142 — (268,036 ) — Interest expense, net 12,227 21,276 8,955 — 42,458 Other expense (income), net (271 ) 395 (119 ) — 5 Income before income taxes 124,089 168,515 132,351 (268,036 ) 156,919 Income tax expense (benefit) (9,547 ) 16,621 16,209 — 23,283 Net income $ 133,636 $ 151,894 $ 116,142 $ (268,036 ) $ 133,636 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 (loss) from operations (6,401 ) 95,700 96,907 — 186,206 Equity earnings in Subsidiaries 135,838 77,051 — (212,889 ) — Interest expense, 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 (benefit) (6,309 ) 16,294 19,855 — 29,840 Net income 125,327 135,838 77,051 (212,889 ) 125,327 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, 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 |
Condensed Comprehensive Income Statement [Table Text Block] | j2 GLOBAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Year Ended December 31, 2015 (In thousands) j2 Global, Inc. j2 Cloud Services, Inc. Non-guarantor Subsidiaries Consolidating Adjustments j2 Global Consolidated Net income $ 133,636 $ 151,894 $ 116,142 $ (268,036 ) $ 133,636 Other comprehensive loss, net of tax: Foreign currency translation adjustment, net of tax expense (benefit) — — (15,058 ) — (15,058 ) Unrealized gain (loss) on available-for-sale investments, net of tax expense (benefit) (6,939 ) — — — (6,939 ) Other comprehensive loss, net of tax (6,939 ) — (15,058 ) — (21,997 ) Comprehensive income $ 126,697 $ 151,894 $ 101,084 $ (268,036 ) $ 111,639 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 $ 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, 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 Comprehensive income attributable to j2 Global, Inc. $ — $ 111,728 $ 61,668 $ (61,551 ) $ 111,845 |
Condensed Cash Flow Statement [Table Text Block] | j2 GLOBAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS Year Ended December 31, 2015 (In thousands) j2 Global, Inc. j2 Cloud Services, Inc. Non-guarantor Subsidiaries Consolidating Adjustments j2 Global Consolidated Net cash (used in) provided by operating activities $ (29,406 ) $ 70,905 $ 187,562 $ — $ 229,061 Cash flows from investing activities: Maturity of certificates of deposit 65 — — — 65 Purchase of certificates of deposit (62 ) — — — (62 ) Maturity of available-for-sale investments 121,687 — — — 121,687 Purchase of available-for-sale investments (135,832 ) — — — (135,832 ) Purchases of property and equipment — (1,645 ) (15,652 ) — (17,297 ) Acquisition of businesses, net of cash received — — (302,809 ) — (302,809 ) Purchases of intangible assets — 57 (1,512 ) — (1,455 ) Investment in subsidiaries — — — — — Intercompany (53,317 ) 53,317 — — — Net cash (used in) provided by investing activities (67,459 ) 51,729 (319,973 ) — (335,703 ) Cash flows from financing activities: Repurchases of common and restricted stock (3,674 ) — — — (3,674 ) Issuance of common stock under employee stock purchase plan 260 — — — 260 Exercise of stock options 4,958 — — — 4,958 Dividends paid (58,826 ) — — — (58,826 ) Excess tax benefits from share-based compensation 4,486 — — — 4,486 Deferred payments for acquisitions — (2,000 ) (12,271 ) — (14,271 ) Other — — (296 ) — (296 ) Intercompany (29,835 ) (144,516 ) 174,351 — — Net cash (used in) provided by financing activities (82,631 ) (146,516 ) 161,784 — (67,363 ) Effect of exchange rate changes on cash and cash equivalents 8,222 (2,953 ) (9,397 ) — (4,128 ) Net change in cash and cash equivalents (171,274 ) (26,835 ) 19,976 — (178,133 ) Cash and cash equivalents at beginning of period 226,790 36,810 170,063 — 433,663 Cash and cash equivalents at end of period $ 55,516 $ 9,975 $ 190,039 $ — $ 255,530 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 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 ) Maturity 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 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 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 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 ) Maturity 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 investing activities — (36,046 ) (146,272 ) 14,920 (167,398 ) Cash flows from financing activities: 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 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 |
Accumulated Other Comprehensi45
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table summarizes the changes in accumulated balances of other comprehensive income, net of tax, for the years ended December 31, 2015 and 2014 (in thousands): Unrealized Gains (Losses) on Investments Foreign Currency Translation Total Balance as of January 1, 2014 $ 6,056 $ (1,821 ) $ 4,235 Other comprehensive income (loss) before reclassifications 3,346 (14,694 ) (11,348 ) Amounts reclassified from accumulated other comprehensive income (14 ) — (14 ) Net increase in other comprehensive income 3,332 (14,694 ) (11,362 ) Balance as of December 31, 2014 $ 9,388 $ (16,515 ) $ (7,127 ) Other comprehensive income (loss) before reclassifications (6,769 ) (15,058 ) (21,827 ) Amounts reclassified from accumulated other comprehensive income (170 ) — (170 ) Net increase (decrease) in other comprehensive income (6,939 ) (15,058 ) (21,997 ) Balance as of December 31, 2015 $ 2,449 $ (31,573 ) $ (29,124 ) |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | The following table provides details about reclassifications out of accumulated other comprehensive income for the years ended December 31, 2015 and 2014 (in thousands): Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Statement of Income Year Ended December 31, 2015 Year Ended December 31, 2014 Unrealized gain (loss) on available-for-sale investments $ (274 ) $ (23 ) Other expense (income), net (274 ) (23 ) Total, before income taxes 104 9 Income tax expense (benefit) (170 ) (14 ) Total, net of tax Total reclassifications for the period $ (170 ) $ (14 ) Total, net of tax |
Quarterly Results (Tables)
Quarterly Results (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Results [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | Year Ended December 31, 2015 Fourth Quarter Third Quarter Second Quarter First Quarter Revenues $ 204,823 $ 178,701 $ 176,038 $ 161,253 Gross profit 170,215 148,032 146,544 133,067 Net income 35,467 37,375 38,916 21,877 Net income attributable to j2 Global, Inc. common shareholders 35,467 37,375 38,916 21,877 Net income per common share: Basic $ 0.73 $ 0.77 $ 0.81 $ 0.45 Diluted $ 0.72 $ 0.77 $ 0.80 $ 0.45 Weighted average shares outstanding Basic 47,849,748 47,696,224 47,537,597 47,422,396 Diluted 48,772,061 47,953,871 47,853,574 47,766,088 Year Ended December 31, 2014 Fourth Quarter Third Quarter Second Quarter First Quarter Revenues $ 167,144 $ 153,018 $ 144,744 $ 134,124 Gross profit 138,145 124,974 119,186 110,736 Net income 32,754 28,759 35,049 28,765 Net income attributable to j2 Global, Inc. common shareholders 31,763 28,759 35,049 28,765 Net income per common share: Basic $ 0.66 $ 0.60 $ 0.73 $ 0.61 Diluted $ 0.66 $ 0.60 $ 0.73 $ 0.60 Weighted average shares outstanding Basic 47,146,503 46,845,477 46,745,596 46,365,158 Diluted 47,468,841 47,163,912 47,067,767 46,765,732 |
Unrestricted Subsidiaries (Tabl
Unrestricted Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Unrestricted Subsidiaries [Abstract] | |
Schedule of Unrestricted Subsidiaries Financial Information [Table Text Block] | The consolidated financial position of the Unrestricted Subsidiaries as of December 31, 2015 and 2014 is as follows (in thousands): December 31, 2015 December 31, 2014 ASSETS Cash and cash equivalents $ 16,482 $ 27,944 Accounts receivable 79,283 57,005 Prepaid expenses and other current assets 5,437 2,986 Deferred income taxes, current 3,382 5,292 Total current assets 104,584 93,227 Property and equipment, net 25,353 12,834 Trade names, net 73,034 70,310 Patent and patent licenses, net 18,071 24,007 Customer relationships, net 68,317 55,925 Goodwill 304,943 245,613 Other purchased intangibles, net 7,810 8,901 Deferred income taxes, non-current 2,373 — Other assets — 1,706 Total assets $ 604,485 $ 512,523 LIABILITIES AND STOCKHOLDERS’ EQUITY Accounts payable and accrued expenses $ 88,580 $ 40,296 Income taxes payable — 316 Deferred revenue, current 6,554 5,277 Total current liabilities 95,134 45,889 Long-term debt 155,000 110,000 Deferred income taxes, non-current 11,270 17,397 Other long-term liabilities 13,546 16,243 Total liabilities 274,950 189,529 Additional paid-in capital 319,728 317,932 Retained earnings 11,552 6,051 Accumulated other comprehensive income (loss) (1,745 ) (989 ) Total stockholders’ equity 329,535 322,994 Total liabilities and stockholders’ equity $ 604,485 $ 512,523 The consolidated results of operations of the Unrestricted Subsidiaries for the years ended December 31, 2015 and 2014 are as follows (in thousands): Years Ended December 31, 2015 2014 Revenues $ 217,778 $ 169,065 Cost of revenues 21,749 19,028 Gross profit 196,029 150,037 Operating expenses: Sales and marketing 78,176 68,057 Research, development and engineering 8,134 5,485 General and administrative 87,161 52,768 Total operating expenses 173,471 126,310 Income from operations 22,558 23,727 Other income (expenses): Interest expense, net 11,179 821 Other expense (income), net 290 347 Income before income taxes 11,089 22,559 Income tax expense 5,588 4,883 Net income 5,501 17,676 Less net income attributable to noncontrolling interest — — Net income attributable to common stockholders $ 5,501 $ 17,676 |
Basis Of Presentation (Details)
Basis Of Presentation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | $ (15,058) | $ (14,694) | $ 78 | ||||||||
Advertising Expense | 63,500 | 60,500 | 55,400 | ||||||||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | $ (31,573) | $ (16,515) | (31,573) | (16,515) | (1,821) | ||||||
Revenues | 720,815 | 599,030 | 520,801 | ||||||||
Net earnings | $ 35,467 | $ 37,375 | $ 38,916 | $ 21,877 | $ 31,763 | $ 28,759 | $ 35,049 | $ 28,765 | $ 133,636 | $ 124,336 | $ 107,522 |
Basic earnings per share | $ 0.73 | $ 0.77 | $ 0.81 | $ 0.45 | $ 0.66 | $ 0.60 | $ 0.73 | $ 0.61 | $ 2.76 | $ 2.60 | $ 2.31 |
Diluted earnings per share | $ 0.72 | $ 0.77 | $ 0.80 | $ 0.45 | $ 0.66 | $ 0.60 | $ 0.73 | $ 0.60 | $ 2.73 | $ 2.58 | $ 2.28 |
Foreign Currency Transaction Gain (Loss), Realized | $ (100) | $ (100) | $ 400 | ||||||||
Minimum [Member] | |||||||||||
Identifiable intangible assets minimum useful life (years) | 1 year | ||||||||||
Property, Plant and Equipment, Useful Life | 1 year | ||||||||||
Maximum [Member] | |||||||||||
Identifiable intangible assets minimum useful life (years) | 20 years | ||||||||||
Property, Plant and Equipment, Useful Life | 5 years |
Business Acquisition Business A
Business Acquisition Business Acquisition (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Business Combination, Contingent Consideration, Liability | $ 30,600 | $ 15,000 | |
Business Combination, Holdback | 23,200 | ||
Goodwill, Purchase Accounting Adjustments | 6,611 | (1,035) | |
Business Acquisition, Purchase Price Allocation, Goodwill, Expected Tax Deductible Amount | 143,300 | 89,400 | $ 36,600 |
Goodwill, Acquired During Period | 172,593 | 184,837 | 54,472 |
Business Acquisition Contributed Total Revenue | 52,400 | 51,900 | 98,100 |
Business Combination, Consideration Transferred | 314,019 | $ 300,240 | $ 147,745 |
Salesify [Member] | |||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 17,000 | ||
Business Combination, Contingent Consideration, Liability | $ 5,600 |
Business Acquisition Business50
Business Acquisition Business Acquisitions (Allocation Of Aggregate Purchase Price) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Business Acquisition [Line Items] | |||
Goodwill, Purchase Accounting Adjustments | $ 6,611 | $ (1,035) | |
Business Acquisition, Purchase Price Allocation, Property, Plant and Equipment | 5,769 | 10,022 | $ 3,274 |
Business Acquisition Purchase Price Allocation Current Noncurrent Assets Prepaid Expense and Other Assets | 1,415 | 5,500 | 2,703 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Assets Noncurrent | 419 | 2,058 | |
Goodwill, Acquired During Period | 172,593 | 184,837 | 54,472 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Deferred Revenue | (10,764) | (29,182) | (2,543) |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | (9,684) | (14,338) | (13,162) |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Capital Lease Obligation | (195) | (1,361) | |
Business Combination, Consideration Transferred | 314,019 | 300,240 | 147,745 |
Business Acquisition, Purchase Price Allocation, Goodwill, Expected Tax Deductible Amount | 143,300 | 89,400 | 36,600 |
Business Acquisition, Purchase Price Allocation, Current Assets, Receivables | 14,935 | 18,024 | 24,658 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent | (1,316) | (12,328) | |
Developed Technology Rights [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 18,764 | 9,836 | 3,031 |
Media Content [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 2,460 | ||
Trade Names [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 22,602 | 28,192 | 18,581 |
Customer Contracts [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 98,027 | 98,498 | 40,275 |
Advertiser Relationship [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 11,770 | ||
Other Intangible Assets [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 1,873 | 2,121 | $ 168 |
Digital Media Segment [Member] | |||
Business Acquisition [Line Items] | |||
Goodwill, Purchase Accounting Adjustments | (4,289) | (329) | |
Goodwill, Acquired During Period | $ 63,680 | $ 105,301 |
Business Acquisition Business51
Business Acquisition Business Acquisitions (Supplementary Information On Unaudited Pro Forma Financial Results Of Acquisition) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
2013 Business Acquisitions [Member] | ||||
Business Acquisition, Pro Forma Revenue | $ 545,952 | $ 470,190 | ||
Business Acquisition, Pro Forma Net Income (Loss) | $ 108,600 | $ 122,187 | ||
Business Acquisition, Pro Forma Earnings Per Share, Basic | $ 2.34 | $ 2.64 | ||
Business Acquisition, Pro Forma Earnings Per Share, Diluted | $ 2.31 | $ 2.62 | ||
2014 Business Acquisitions [Member] | ||||
Business Acquisition, Pro Forma Revenue | $ 672,701 | $ 626,906 | ||
Business Acquisition, Pro Forma Net Income (Loss) | $ 119,773 | $ 132,480 | ||
Business Acquisition, Pro Forma Earnings Per Share, Basic | $ 2.51 | $ 2.85 | ||
Business Acquisition, Pro Forma Earnings Per Share, Diluted | $ 2.49 | $ 2.81 | ||
2015 Business Acquisition [Member] | ||||
Business Acquisition, Pro Forma Revenue | $ 823,904 | $ 744,388 | ||
Business Acquisition, Pro Forma Net Income (Loss) | $ 159,408 | $ 126,196 | ||
Business Acquisition, Pro Forma Earnings Per Share, Basic | $ 3.29 | $ 2.64 | ||
Business Acquisition, Pro Forma Earnings Per Share, Diluted | $ 3.26 | $ 2.62 |
Investments Investments (Narrat
Investments Investments (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Investments [Abstract] | |||
Restricted Investments, Current | $ 100 | $ 100 | |
(Gain) loss on available-for-sale investments | 549 | 90 | $ (66) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 117,000 | 72,970 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | $ 1,649 | $ 1,260 |
Investments (Schedule Of Debt S
Investments (Schedule Of Debt Securities By Contractual Maturity Date) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Investments [Abstract] | ||
Due within 1 year | $ 56,940 | $ 59,896 |
Due within more than 1 year but less than 5 years | 78,248 | 60,178 |
Due within more than 5 years but less than 10 years | 0 | 0 |
Due 10 years or after | 315 | 330 |
Total | $ 135,503 | $ 120,404 |
Investments (Schedule Of Availa
Investments (Schedule Of Available-For-Sale And Trading Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Investments [Abstract] | ||
Available-for-sale Securities | $ 158,158 | $ 156,649 |
Certificates of Deposit, at Carrying Value | 60 | 65 |
Investments | $ 158,218 | $ 156,714 |
Investments (Summary Of Gross U
Investments (Summary Of Gross Unrealized Gains And Losses And Fair Values) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | $ 154,214 | $ 141,003 |
Available-for-sale Securities, Gross Unrealized Gains | 4,230 | 15,795 |
Available-for-sale Securities, Gross Unrealized Losses | (286) | (149) |
Available-for-sale Securities | 158,158 | 156,649 |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 88,852 | 91,456 |
Available-for-sale Securities, Gross Unrealized Gains | 110 | 147 |
Available-for-sale Securities, Gross Unrealized Losses | (213) | (136) |
Available-for-sale Securities | 88,749 | 91,467 |
US Treasury and Government [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 40,715 | 26,848 |
Available-for-sale Securities, Gross Unrealized Gains | 0 | 9 |
Available-for-sale Securities, Gross Unrealized Losses | (63) | (13) |
Available-for-sale Securities | 40,652 | 26,844 |
US States and Political Subdivisions Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 6,111 | 2,088 |
Available-for-sale Securities, Gross Unrealized Gains | 2 | 5 |
Available-for-sale Securities, Gross Unrealized Losses | (10) | 0 |
Available-for-sale Securities | 6,103 | 2,093 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 18,536 | 20,611 |
Available-for-sale Securities, Gross Unrealized Gains | 4,118 | 15,634 |
Available-for-sale Securities, Gross Unrealized Losses | 0 | 0 |
Available-for-sale Securities | $ 22,654 | $ 36,245 |
Investments Investments (Summar
Investments Investments (Summary of Unrealized Loss by 12 month Period) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Investments Unrealized Loss Position [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 117,000 | $ 72,970 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (284) | (144) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 1,649 | 1,260 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (2) | (5) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 118,649 | 74,230 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (286) | (149) |
Corporate Debt Securities [Member] | ||
Investments Unrealized Loss Position [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 74,807 | 57,898 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (212) | (131) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 1,000 | 1,260 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (1) | (5) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 75,807 | 59,158 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (213) | (136) |
US Treasury and Government [Member] | ||
Investments Unrealized Loss Position [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 38,004 | 15,072 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (62) | (13) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 649 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (1) | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 38,653 | 15,072 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (63) | $ (13) |
US States and Political Subdivisions Debt Securities [Member] | ||
Investments Unrealized Loss Position [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 4,189 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (10) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 4,189 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (10) |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Business Combination, Contingent Consideration, Liability | $ 30,600 | $ 15,000 | |
Long-term Debt, Fair Value | 790,500 | 711,100 | |
Ookla [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 40,000 | ||
Business Combination, Contingent Consideration, Liability | 25,000 | 15,000 | |
Salesify [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 17,000 | ||
Business Combination, Contingent Consideration, Liability | 5,600 | ||
Level 3 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Business Combination, Contingent Consideration, Liability | 30,600 | 15,000 | $ 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings | $ 16,200 | $ 0 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule Of Fair Values Of Financial Instruments Measured On Recurring Basis) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | |
Total assets | $ 208,089 | $ 421,166 | ||
Business Combination, Contingent Consideration, Liability | 30,600 | 15,000 | ||
Derivative Liability | 1,450 | 742 | ||
Financial Liabilities Fair Value Disclosure | 32,050 | 15,742 | ||
Money Market Funds [Member] | ||||
Cash | 46,867 | 212,645 | ||
Bank Time Deposits [Member] | ||||
Cash | 3,004 | 51,807 | ||
Certificates of Deposit [Member] | ||||
Investments | 60 | 65 | ||
Equity Securities [Member] | ||||
Investments | 22,654 | 36,245 | ||
US Treasury and Government [Member] | ||||
Investments | 40,652 | 26,844 | ||
US States and Political Subdivisions Debt Securities [Member] | ||||
Investments | 6,103 | 2,093 | ||
Corporate Debt Securities [Member] | ||||
Investments | 88,749 | 91,467 | ||
Level 1 [Member] | ||||
Total assets | 69,521 | 248,890 | ||
Business Combination, Contingent Consideration, Liability | 0 | 0 | ||
Derivative Liability | 0 | 0 | ||
Financial Liabilities Fair Value Disclosure | 0 | 0 | ||
Level 1 [Member] | Money Market Funds [Member] | ||||
Cash | 46,867 | 212,645 | ||
Level 1 [Member] | Bank Time Deposits [Member] | ||||
Cash | 0 | 0 | ||
Level 1 [Member] | Certificates of Deposit [Member] | ||||
Investments | 0 | 0 | ||
Level 1 [Member] | Equity Securities [Member] | ||||
Investments | 22,654 | 36,245 | ||
Level 1 [Member] | US Treasury and Government [Member] | ||||
Investments | 0 | 0 | ||
Level 1 [Member] | US States and Political Subdivisions Debt Securities [Member] | ||||
Investments | 0 | 0 | ||
Level 1 [Member] | Corporate Debt Securities [Member] | ||||
Investments | 0 | 0 | ||
Level 2 [Member] | ||||
Total assets | 138,568 | 172,276 | ||
Business Combination, Contingent Consideration, Liability | 0 | 0 | ||
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net | 708 | 370 | ||
Derivative Liability | 1,450 | 742 | $ 372 | $ 0 |
Financial Liabilities Fair Value Disclosure | 1,450 | 742 | ||
Level 2 [Member] | Money Market Funds [Member] | ||||
Cash | 0 | 0 | ||
Level 2 [Member] | Bank Time Deposits [Member] | ||||
Cash | 3,004 | 51,807 | ||
Level 2 [Member] | Certificates of Deposit [Member] | ||||
Investments | 60 | 65 | ||
Level 2 [Member] | Equity Securities [Member] | ||||
Investments | 0 | 0 | ||
Level 2 [Member] | US Treasury and Government [Member] | ||||
Investments | 40,652 | 26,844 | ||
Level 2 [Member] | US States and Political Subdivisions Debt Securities [Member] | ||||
Investments | 6,103 | 2,093 | ||
Level 2 [Member] | Corporate Debt Securities [Member] | ||||
Investments | 88,749 | 91,467 | ||
Level 3 [Member] | ||||
Total assets | 0 | 0 | ||
Business Combination, Contingent Consideration, Liability | 30,600 | 15,000 | $ 0 | |
Derivative Liability | 0 | 0 | ||
Financial Liabilities Fair Value Disclosure | 30,600 | 15,000 | ||
Level 3 [Member] | Money Market Funds [Member] | ||||
Cash | 0 | 0 | ||
Level 3 [Member] | Bank Time Deposits [Member] | ||||
Cash | 0 | 0 | ||
Level 3 [Member] | Certificates of Deposit [Member] | ||||
Investments | 0 | 0 | ||
Level 3 [Member] | Equity Securities [Member] | ||||
Investments | 0 | 0 | ||
Level 3 [Member] | US Treasury and Government [Member] | ||||
Investments | 0 | 0 | ||
Level 3 [Member] | US States and Political Subdivisions Debt Securities [Member] | ||||
Investments | 0 | 0 | ||
Level 3 [Member] | Corporate Debt Securities [Member] | ||||
Investments | 0 | 0 | ||
Ookla [Member] | ||||
Business Combination, Contingent Consideration, Liability | $ 25,000 | $ 15,000 |
Fair Value Measurements Fair 59
Fair Value Measurements Fair Value Measurements (Schedule of Changes In Fair Value Of Level 3 Financial Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Business Combination, Contingent Consideration, Liability | $ 30,600 | $ 15,000 | |
Level 3 [Member] | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Business Combination, Contingent Consideration, Liability | 30,600 | 15,000 | $ 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Period Increase (Decrease) | (600) | 15,000 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings | 16,200 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Transfers, Net | $ 0 | $ 0 |
Fair Value Measurements Fair 60
Fair Value Measurements Fair Value Measurements (Derivative Summary) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Derivative Liability | $ 1,450 | $ 742 | ||
Level 2 [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net | 708 | 370 | ||
Derivative Liability | $ 1,450 | $ 742 | $ 372 | $ 0 |
Property And Equipment Property
Property And Equipment Property And Equipment (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property And Equipment [Abstract] | |||
Depreciation | $ 19.2 | $ 15.5 | $ 9.6 |
Property, Plant and Equipment, Disposals | $ 0 | $ 0.6 | $ 0.9 |
Property And Equipment Proper62
Property And Equipment Property And Equipment (Property And Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 147,673 | $ 111,398 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (90,231) | (73,181) |
Property and equipment, net | 57,442 | 38,217 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 135,360 | 100,537 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 1,710 | 1,763 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 10,603 | $ 9,098 |
Goodwill And Intangible Asset63
Goodwill And Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | $ 74 | $ 47.4 | $ 30.2 |
Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Identifiable intangible assets minimum useful life (years) | 1 year | ||
Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Identifiable intangible assets minimum useful life (years) | 20 years |
Goodwill And Intangible Asset64
Goodwill And Intangible Assets (Changes In Carrying Amounts Of Goodwill And Other Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill [Line Items] | |||
Balance as of January 1, 2014 | $ 635,675 | $ 457,422 | |
Goodwill, Acquired During Period | 172,593 | 184,837 | $ 54,472 |
Goodwill, Purchase Accounting Adjustments | 6,611 | (1,035) | |
Foreign Exchange Translation | (7,218) | (5,549) | |
Balance as of December 31, 2015 | 807,661 | 635,675 | 457,422 |
Business Cloud Services Segment [Member] | |||
Goodwill [Line Items] | |||
Balance as of January 1, 2014 | 390,063 | 316,682 | |
Goodwill, Acquired During Period | 108,913 | 79,536 | |
Goodwill, Purchase Accounting Adjustments | 10,900 | (706) | |
Foreign Exchange Translation | (7,158) | (5,449) | |
Balance as of December 31, 2015 | 502,718 | 390,063 | 316,682 |
Digital Media Segment [Member] | |||
Goodwill [Line Items] | |||
Balance as of January 1, 2014 | 245,612 | 140,740 | |
Goodwill, Acquired During Period | 63,680 | 105,301 | |
Goodwill, Purchase Accounting Adjustments | (4,289) | (329) | |
Foreign Exchange Translation | (60) | (100) | |
Balance as of December 31, 2015 | $ 304,943 | $ 245,612 | $ 140,740 |
Goodwill And Intangible Asset65
Goodwill And Intangible Assets (Indefinite Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Intangible assets | $ 32,811 | $ 32,811 |
Trade Names [Member] | ||
Intangible assets | 27,379 | 27,379 |
Other Intangible Assets [Member] | ||
Intangible assets | $ 5,432 | $ 5,432 |
Goodwill And Intangible Asset66
Goodwill And Intangible Assets (Schedule Of Intangible Assets Subject To Amortization) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Historical Cost | $ 529,008 | $ 416,494 |
Accumulated Amortization | (209,178) | (137,505) |
Net | 319,830 | 278,989 |
Trade Names [Member] | ||
Historical Cost | 117,753 | 94,770 |
Accumulated Amortization | (26,167) | (16,598) |
Net | $ 91,586 | $ 78,172 |
Weighted-Average Amortization Period, years | 12 years | 14 years 6 months |
Patents And Patent Licenses [Member] | ||
Historical Cost | $ 64,258 | $ 62,940 |
Accumulated Amortization | (45,417) | (38,013) |
Net | $ 18,841 | $ 24,927 |
Weighted-Average Amortization Period, years | 8 years 3 months 18 days | 9 years |
Customer Contracts [Member] | ||
Historical Cost | $ 313,909 | $ 230,424 |
Accumulated Amortization | (116,590) | (66,658) |
Net | $ 197,319 | $ 163,766 |
Weighted-Average Amortization Period, years | 9 years 4 months 24 days | 9 years 3 months 18 days |
Other Purchased Intangibles [Member] | ||
Historical Cost | $ 33,088 | $ 28,360 |
Accumulated Amortization | (21,004) | (16,236) |
Net | $ 12,084 | $ 12,124 |
Weighted-Average Amortization Period, years | 4 years 2 months 12 days | 4 years 3 months 18 days |
Goodwill And Intangible Asset67
Goodwill And Intangible Assets Goodwill And Intangible Assets (Intangible Assets Subject To Amortization) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Estimated future amortization expense in year 2016 | $ 63,209 | |
Estimated future amortization expense in year 2017 | 58,498 | |
Estimated future amortization expense in year 2018 | 46,500 | |
Estimated future amortization expense in year 2019 | 33,665 | |
Estimated future amortization expense in year 2020 | 31,313 | |
Estimated future amortization expense thereafter | 86,645 | |
Finite-Lived Intangible Assets, Net | $ 319,830 | $ 278,989 |
Long Term Debt (Details)
Long Term Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 10, 2014 | Jul. 26, 2012 | |
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 652,500 | ||||
Debt Instrument, Unamortized Discount | $ 5,000 | ||||
Interest Expense | 43,600 | $ 32,500 | $ 22,300 | ||
Long-term Debt | 601,186 | 593,350 | |||
Long-term Debt, Current Maturities | 0 | 0 | |||
Total long-term debt, less current portion | 601,186 | 593,350 | |||
Long-term Debt, Fair Value | $ 790,500 | 711,100 | |||
Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Issuance Date | Jul. 26, 2012 | ||||
Debt Instrument, Face Amount | $ 250,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | ||||
Debt Instrument, Maturity Date | Aug. 1, 2020 | ||||
Proceeds from Debt, Net of Issuance Costs | $ 245,000 | ||||
Debt Instrument, Unamortized Discount | 3,300 | ||||
Unamortized Debt Issuance Expense | $ 900 | ||||
Debt Instrument, Frequency of Periodic Payment | semi-annually | ||||
Debt Instrument, Call Date, Earliest | Aug. 1, 2016 | ||||
Debt Instrument, Covenant Description | The indenture governing the Senior Notes contain certain restrictive and other covenants applicable to j2 Cloud Services, Inc. and subsidiaries designated as restricted subsidiaries including, but not limited to, limitations on debt and disqualified or preferred stock, restricted payments, liens, sale and leaseback transactions, dividends and other payment restrictions, asset sales and transactions with affiliates. | ||||
Long-term Debt | $ 246,750 | 246,187 | |||
Long-term Debt, Fair Value | $ 262,200 | 262,400 | |||
Convertible Debt Securities [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Issuance Date | Jun. 10, 2014 | ||||
Debt Instrument, Face Amount | $ 402,500 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.25% | ||||
Debt Instrument, Maturity Date | Jun. 15, 2029 | ||||
Proceeds from Debt, Net of Issuance Costs | $ 391,400 | ||||
Debt Instrument, Unamortized Discount | $ 48,100 | $ 59,000 | |||
Debt Instrument, Convertible, Remaining Discount Amortization Period | 5 years 6 months | ||||
Debt Issuance Cost | $ 11,700 | ||||
Unamortized Debt Issuance Expense | $ 8,200 | ||||
Debt Instrument, Frequency of Periodic Payment | semiannually | ||||
Debt Instrument, Convertible, Carrying Amount of Equity Component | $ 37,700 | ||||
Long-term Debt | $ 354,436 | 347,163 | |||
Long-term Debt, Fair Value | $ 528,300 | $ 448,700 |
Long Term Debt Long Term Debt (
Long Term Debt Long Term Debt (Schedule Of Maturities Of Long-term Debt) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Long-term Debt, Unclassified [Abstract] | |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | $ 0 |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 0 |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 0 |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 0 |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 250,000 |
Long-term Debt, Maturities, Repayments of Principal after Year Five | 402,500 |
Long-term Debt | $ 652,500 |
Mandatorily Redeemable Financ70
Mandatorily Redeemable Financial Instrument (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Mandatorily Redeemable Financial Instrument [Abstract] | |||
Loss on extinguishment of debt and related interest expense | $ 0 | $ 0 | $ 14,437 |
Commitments And Contingencies71
Commitments And Contingencies Commitments And Contingencies (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Capital Leases, Income Statement, Amortization Expense | $ 0.2 | $ 0.4 | $ 0 |
Operating Leases, Rent Expense, Net | 9 | 9.7 | 7.7 |
Operating Leases, Rent Expense, Sublease Rentals | 0.5 | $ 0.1 | $ 0 |
Operating Leases, Future Minimum Payments Due, Future Minimum Sublease Rentals | $ 1.8 |
Commitments And Contingencies72
Commitments And Contingencies Commitment And Contingencies (Capital Lease Summary) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Commitments and Contingencies [Abstract] | ||
Capital Leased Assets, Gross | $ 870 | $ 805 |
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation | (617) | (440) |
Capital Leases, Future Minimum Payments Due, Next Twelve Months | 140 | |
Capital Leases, Balance Sheet, Assets by Major Class, Net | 253 | $ 365 |
Capital Leases, Future Minimum Payments Due in Two Years | 44 | |
Capital Leases, Future Minimum Payments Due in Three Years | 7 | |
Capital Leases, Future Minimum Payments Due in Four Years | 0 | |
Capital Leases, Future Minimum Payments Due in Five Years | 0 | |
Capital Leases, Future Minimum Payments Due Thereafter | 0 | |
Capital Leases, Future Minimum Payments Due | $ 191 |
Commitments And Contingencies73
Commitments And Contingencies Commitments And Contingencies (Summary Of Future Minimum Lease Payments Under Non-Cancelable Operating Leases) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Commitments and Contingencies [Abstract] | |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 10,033 |
Operating Leases, Future Minimum Payments, Due in Two Years | 9,685 |
Operating Leases, Future Minimum Payments, Due in Three Years | 9,241 |
Operating Leases, Future Minimum Payments, Due in Four Years | 7,611 |
Operating Leases, Future Minimum Payments, Due in Five Years | 4,731 |
Operating Leases, Future Minimum Payments, Due Thereafter | 12,962 |
Operating Leases, Future Minimum Payments Due | $ 54,263 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2008 | |
Income Taxes [Line Items] | ||||||||||
Deferred Tax Assets, Net of Valuation Allowance | $ 44,577 | $ 31,833 | ||||||||
Deferred Tax Assets, Tax Credit Carryforwards, Foreign | 14,000 | 11,100 | ||||||||
Deferred Tax Assets, Tax Credit Carryforwards, Research | $ 3,700 | $ 2,000 | ||||||||
U.S. federal statutory rate | 35.00% | 35.00% | 35.00% | |||||||
Effective income tax rate | 14.80% | 19.20% | 24.70% | |||||||
Income before income taxes, domestic operations | $ 61,000 | $ 79,400 | $ 61,000 | |||||||
Income before income taxes, foreign operations | 95,900 | 75,800 | 81,700 | |||||||
Liabilities for uncertain income tax positions | 32,536 | 34,635 | 40,888 | $ 35,421 | ||||||
Prepaid tax payments | 11,600 | 5,800 | ||||||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 3,400 | 2,900 | 3,000 | |||||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | (1,400) | (100) | 700 | |||||||
Undistributed Earnings of Foreign Subsidiaries | 531,500 | |||||||||
Unrecognized Tax Benefits, Decreases Resulting from Prior Period Tax Positions | (17,107) | (8,284) | (1,519) | |||||||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 29,800 | 32,700 | $ 40,900 | |||||||
Foreign Tax Authority [Member] | ||||||||||
Income Taxes [Line Items] | ||||||||||
Tax Credit Carryforward, Valuation Allowance | 14,000 | 11,100 | ||||||||
California Franchise Tax Board [Member] | ||||||||||
Income Taxes [Line Items] | ||||||||||
Income Tax Examination, Year under Examination | 2,013 | 2,012 | ||||||||
Internal Revenue Service (IRS) [Member] | ||||||||||
Income Taxes [Line Items] | ||||||||||
Operating Loss Carryforwards | $ 17,400 | |||||||||
Operating Loss Carryforwards, Expiration Dates | Dec. 31, 2031 | |||||||||
Tax Adjustments, Settlements, and Unusual Provisions | $ 1,200 | $ 1,800 | ||||||||
Income Tax Examination, Year under Examination | 2,013 | 2,012 | ||||||||
Unrecognized Tax Benefits, Decreases Resulting from Prior Period Tax Positions | 900 | 9,300 | ||||||||
State and Local Jurisdiction [Member] | ||||||||||
Income Taxes [Line Items] | ||||||||||
Operating Loss Carryforwards, Expiration Dates | Dec. 31, 2025 | |||||||||
Tax Credit Carryforward, Amount | $ 600 | $ 900 | ||||||||
Tax Adjustments, Settlements, and Unusual Provisions | $ 100 | $ 900 | ||||||||
Canada Revenue Agency [Member] | ||||||||||
Income Taxes [Line Items] | ||||||||||
Income Tax Examination, Year under Examination | ||||||||||
Illinois Department of Revenue [Member] | ||||||||||
Income Taxes [Line Items] | ||||||||||
Income Tax Examination, Year under Examination | ||||||||||
New York City Department of Finance [Member] | ||||||||||
Income Taxes [Line Items] | ||||||||||
Income Tax Examination, Year under Examination | 2,011 | 2,010 | 2,009 | |||||||
New York State Division of Taxation and Finance [Member] | ||||||||||
Income Taxes [Line Items] | ||||||||||
Income Tax Examination, Year under Examination | 2,013 | 2,012 | 2,011 |
Income Taxes Income Taxes (Comp
Income Taxes Income Taxes (Components Of Income Tax) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Abstract] | |||
Current Federal Tax Expense (Benefit) | $ 21,745 | $ 22,074 | $ 22,834 |
Current State and Local Tax Expense (Benefit) | 1,805 | 3,822 | 2,676 |
Current Foreign Tax Expense (Benefit) | 16,816 | 13,977 | 9,415 |
Current Income Tax Expense (Benefit) | 40,366 | 39,873 | 34,925 |
Deferred Federal Income Tax Expense (Benefit) | (8,581) | (958) | 3,678 |
Deferred State and Local Income Tax Expense (Benefit) | (3,462) | (5,019) | (235) |
Deferred Foreign Income Tax Expense (Benefit) | (5,040) | (4,056) | (3,193) |
Deferred income taxes | (17,083) | (10,033) | 250 |
Income tax expense | $ 23,283 | $ 29,840 | $ 35,175 |
Income Taxes Income Taxes (Reco
Income Taxes Income Taxes (Reconciliation Of Statutory Federal Income Tax Rate With Effective Income Tax Rate) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Abstract] | |||
U.S. federal statutory rate | 35.00% | 35.00% | 35.00% |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes | 0.30% | 0.60% | 0.30% |
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential | (15.80%) | (13.80%) | (17.90%) |
Effective Income Tax Rate Reconciliation, Tax Contingencies, Reserve | (3.30%) | (2.20%) | 4.30% |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance | 1.80% | 2.60% | 1.90% |
Effective Income Tax Rate Reconciliation, Deductions, Qualified Production Activities | (1.20%) | (0.50%) | (0.50%) |
Effective Income Tax Rate Reconciliation, Other Adjustments | (2.00%) | (2.50%) | 1.60% |
Effective Income Tax Rate, Continuing Operations | 14.80% | 19.20% | 24.70% |
Income Taxes Income Taxes (Defe
Income Taxes Income Taxes (Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Income Taxes [Abstract] | ||
Deferred Tax Assets, Operating Loss Carryforwards | $ 11,559 | $ 13,774 |
Deferred Tax Assets, Tax Credit Carryforwards | 18,341 | 14,091 |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Accrued Liabilities | 12,156 | 7,114 |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Allowance for Doubtful Accounts | 1,169 | 1,132 |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Share-based Compensation Cost | 4,308 | 3,632 |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Impairment Losses | 74 | 76 |
Deferred Tax Assets, Deferred Income | 3,232 | 250 |
Deferred Tax Assets, State Taxes | 522 | 2,333 |
Deferred Tax Assets, Other | 7,458 | 789 |
Deferred Tax Assets, Gross | 58,819 | 43,191 |
Deferred Tax Assets, Valuation Allowance | (14,242) | (11,358) |
Deferred Tax Assets, Net of Valuation Allowance | 44,577 | 31,833 |
Deferred Tax Liabilities, Property, Plant and Equipment | (5,457) | (5,883) |
Deferred Tax Liabilities, Intangible Assets | (41,351) | (51,566) |
Deferred Tax Liabilities, Prepaid Insurance | (482) | (420) |
Deferred Tax Liability, Convertible Debt | (31,091) | (26,272) |
Deferred Tax Liabilities, Foreign Other | (3,330) | (7,981) |
Deferred Tax Liabilities, Net | (81,711) | (92,122) |
Deferred Tax Assets, Net | $ (37,134) | $ (60,289) |
Income Taxes Income Taxes (Re78
Income Taxes Income Taxes (Reconciliation Of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes [Abstract] | ||||
Unrecognized Tax Benefits | $ 32,536 | $ 34,635 | $ 40,888 | $ 35,421 |
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 10,361 | 919 | 58 | |
Unrecognized Tax Benefits, Decreases Resulting from Prior Period Tax Positions | (17,107) | (8,284) | (1,519) | |
Unrecognized Tax Benefits, Increases Resulting from Current Period Tax Positions | 8,841 | 3,765 | $ 6,928 | |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | (4,194) | (1,524) | ||
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | $ 0 | $ (1,129) |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 10, 2016 | Nov. 03, 2015 | Aug. 03, 2015 | May. 06, 2015 | Feb. 10, 2015 | Oct. 30, 2014 | Aug. 05, 2014 | May. 07, 2014 | Feb. 12, 2014 | Dec. 31, 2015 | Dec. 31, 2014 |
Class of Stock [Line Items] | |||||||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | |||||||||
Common Stock, Shares, Issued | 47,950,677 | 47,409,514 | |||||||||
Stock Repurchased | 2,100,000 | ||||||||||
Aggregate cost for repurchase of common stock | $ 58.6 | ||||||||||
Shares surrendered to pay exercise price or satisfy tax withholding obligations for stock options exercised/restricted stock | 53,904 | ||||||||||
Dividend, declaration date | Nov. 3, 2015 | Aug. 3, 2015 | May 6, 2015 | Feb. 10, 2015 | Oct. 30, 2014 | Aug. 5, 2014 | May 7, 2014 | Feb. 11, 2014 | |||
Dividend amount to be paid, per common share | $ 0.315 | $ 0.3075 | $ 0.3 | $ 0.2925 | $ 0.285 | $ 0.2775 | $ 0.27 | $ 0.2625 | |||
Dividend, date of record | Nov. 17, 2015 | Aug. 17, 2015 | May 19, 2015 | Feb. 23, 2015 | Nov. 17, 2014 | Aug. 18, 2014 | May 19, 2014 | Feb. 24, 2014 | |||
Dividend, date to be paid | Dec. 3, 2015 | Sep. 1, 2015 | Jun. 3, 2015 | Mar. 9, 2015 | Dec. 4, 2014 | Sep. 2, 2014 | Jun. 3, 2014 | Mar. 10, 2014 | |||
Subsequent Event [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Dividend, declaration date | Feb. 10, 2016 | ||||||||||
Dividend amount to be paid, per common share | $ 0.3250 | ||||||||||
Dividend, date of record | Feb. 23, 2016 | ||||||||||
Dividend, date to be paid | Mar. 10, 2016 | ||||||||||
2012 Repurchase Program [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Maximum number of shares authorized to be repurchased | 5,000,000 |
Stock Options And Employee St80
Stock Options And Employee Stock Purchase Plan (Narrative) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)$ / sharesyrshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013USD ($)$ / sharesshares | |
Estimated forfeiture rate | 14.12% | 12.31% | 14.44% |
Allocated Share-based Compensation Expense | $ | $ 11,793 | $ 8,908 | $ 9,720 |
Number of options granted | 62,000 | 0 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 15.22 | ||
Expiration period of options granted (in years) | yr | 10 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | $ | $ 10,500 | $ 14,600 | $ 11,900 |
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Vested In Period, Total Fair Value | $ | 700 | 2,300 | 3,100 |
Employee Service Share-based Compensation, Cash Received from Exercise of Stock Options | $ | $ 5,000 | 6,600 | 13,600 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options | $ | $ 3,700 | $ 5,200 | $ 3,900 |
Dividends, Share-based Compensation | $ | $ 100 | ||
Number of Shares, Exercisable | 457,792 | 618,437 | 845,198 |
Weighted-Average Exercise Price, Exercisable | $ / shares | $ 24.78 | $ 23.77 | $ 20.35 |
Stock Options [Member] | |||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ | $ 1,100 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 9 months 29 days | ||
Restricted Stock And Restricted Stock Unit (RSU) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Total Fair Value | $ | $ 6,400 | $ 8,500 | $ 6,400 |
Shares, Granted | 252,940 | 265,601 | 729,137 |
Allocated Share-based Compensation Expense | $ | $ 11,000 | $ 7,400 | $ 7,100 |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ | 34,500 | ||
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options | $ | $ 3,800 | $ 5,000 | $ 1,400 |
Employee Stock Purchase Plan [Member] | |||
Market value of common stock on the date of grant for incentive stock options | 95.00% | ||
Maximum issuance of common stock | 2,000,000 | ||
Maximum earnings withheld by the employees | 15.00% | ||
Number of shares purchased under the plan | 4,020 | 5,735 | 5,402 |
Number of shares available for issuance | 1,630,444 | ||
Restricted Stock [Member] | |||
Shares, Granted | 234,540 | 226,864 | 690,762 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 10 months 2 days | ||
Weighted-Average Grant-Date Fair Value, Granted | $ / shares | $ 68.11 | $ 45.66 | $ 13.57 |
Restricted Stock Units (RSUs) [Member] | |||
Shares, Granted | 18,400 | 38,737 | 38,375 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years 1 month 21 days | ||
Nineteen Hundred Ninety Seven Stock Oprtion Plan [Member] | |||
Additional shares authorized for issuance | 840,000 | ||
Maximum issuance of common stock | 12,000,000 | ||
2007 Stock Plan [Member] | |||
Maximum issuance of common stock | 4,500,000 | ||
2015 Stock Option Plan [Member] | |||
Maximum issuance of common stock | 4,200,000 | ||
Number of shares available for issuance | 4,032,368 | ||
Ziff Davis, Inc. 2012 Equity Incentive Plan [Member] | |||
Shares, Granted | 13,035,000 | ||
Maximum issuance of common stock | 15,000,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||
Weighted-Average Grant-Date Fair Value, Granted | $ / shares | $ 0 | ||
Minimum [Member] | Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased | $ / shares | $ 54.57 | ||
Minimum [Member] | 2007 Stock Plan [Member] | |||
Market value of common stock on the date of grant for incentive stock options | 85.00% | ||
Maximum [Member] | Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased | $ / shares | $ 73.67 |
Stock Options And Employee St81
Stock Options And Employee Stock Purchase Plan (Stock Options) (Details) | 12 Months Ended | ||
Dec. 31, 2015USD ($)$ / sharesyrshares | Dec. 31, 2014$ / sharesshares | Dec. 31, 2013$ / sharesshares | |
Number of Shares, Outstanding Beginning of Period | shares | 725,649 | 1,175,657 | 1,765,461 |
Number of options granted | shares | 62,000 | 0 | 0 |
Number of Shares, Exercised | shares | (221,221) | (433,008) | (569,204) |
Number of Shares, Canceled | shares | 0 | (17,000) | (20,600) |
Number of Shares, Outstanding Ending of Period | shares | 566,428 | 725,649 | 1,175,657 |
Number of Shares, Exercisable | shares | 457,792 | 618,437 | 845,198 |
Number of Shares, Vested and expected to vest | shares | 545,070 | ||
Weighted-Average Exercise Price, Outstanding Beginning of Period | $ / shares | $ 24.29 | $ 21.08 | $ 22.08 |
Weighted-Average Exercise Price, Granted | $ / shares | 67.35 | 0 | 0 |
Weighted-Average Exercise Price, Exercised | $ / shares | 22.41 | 15.70 | 23.90 |
Weighted-Average Exercise Price, Canceled | $ / shares | 0 | 29.85 | 21.79 |
Weighted-Average Exercise Price, Outstanding Ending of Period | $ / shares | 29.74 | 24.29 | 21.08 |
Weighted-Average Exercise Price, Exercisable | $ / shares | 24.78 | $ 23.77 | $ 20.35 |
Weighted-Average Exercise Price, Vested and expected to vest | $ / shares | $ 28.53 | ||
Weighted-Average Remaining Contractual Term, Outstanding (in years) | 4 years 4 months 6 days | ||
Weighted-Average Remaining Contractual Term, Exercisable (in years) | 3 years 6 months 7 days | ||
Weighted-Average Remaining Contractual Term, Vested and expected to vest (in years) | 4 years 2 months 1 day | ||
Aggregate Intrinsic Value, Outstanding | $ | $ 29,782,205 | ||
Aggregate Intrinsic Value, Exercisable | $ | 26,341,699 | ||
Aggregate Intrinsic Value, Vested and expected to vest | $ | $ 29,316,663 | ||
Expiration period of options granted (in years) | yr | 10 | ||
Stock Options [Member] | |||
Unrecognized compensation cost related to non-vested awards granted | $ | $ 1,100,000 |
Stock Options And Employee St82
Stock Options And Employee Stock Purchase Plan Stock Options And Employee Stock Purchase Plan (Outstanding And Exercisable Options) (Details) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | shares | 566,428 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 4 years 4 months 6 days |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 29.74 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | shares | 457,792 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price | $ 24.78 |
Range One [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | shares | 33,500 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 3 years 2 months 5 days |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 17.19 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | shares | 33,500 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price | $ 17.19 |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range | $ 17.19 |
Range Two [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | shares | 77,448 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 2 years 4 months 2 days |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 20.91 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | shares | 77,448 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price | $ 20.91 |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range | 20.91 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $ 0 |
Range Three [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | shares | 66,720 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 3 years 4 months 6 days |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 21.67 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | shares | 66,720 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price | $ 21.67 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $ 21.67 |
Range Four [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | shares | 770 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 1 year 11 months 12 days |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 21.88 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | shares | 770 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price | $ 21.88 |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range | $ 21.88 |
Range Five [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | shares | 98,716 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 4 years 4 months 6 days |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 22.92 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | shares | 98,716 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price | $ 22.92 |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range | 22.92 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $ 0 |
Range Six [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | shares | 54,874 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 3 years 10 months 17 days |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 27.32 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | shares | 37,874 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price | $ 27.63 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | 24.61 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $ 28.52 |
Range Seven [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | shares | 90,700 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 5 years 4 months 10 days |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 29.34 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | shares | 72,564 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price | $ 29.34 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | 29.34 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $ 0 |
Range Eight [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | shares | 25,000 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 6 years 26 days |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 29.99 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | shares | 13,500 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price | $ 30.21 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | 29.53 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $ 31.07 |
Range Nine [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | shares | 56,700 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 1 year 7 months 2 days |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 32.45 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | shares | 56,700 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price | $ 32.45 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $ 32.45 |
Range Ten [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | shares | 62,000 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 9 years 4 months 6 days |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 67.35 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | shares | 0 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price | $ 0 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $ 67.35 |
Stock Options And Employee St83
Stock Options And Employee Stock Purchase Plan (Assumptions To Estimate Fair Value Of Stock Options) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Risk-free interest rate | 1.61% | 0.00% | 0.00% |
Expected term (in years) | 5 years 2 months 1 day | 0 days | 0 days |
Dividend yield | 1.80% | 0.00% | 0.00% |
Expected volatility | 28.12% | 0.00% | 0.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Weighted Average Volatility Rate | 28.12% | 0.00% | 0.00% |
Stock Options And Employee St84
Stock Options And Employee Stock Purchase Plan (Restricted Stock) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restricted Stock [Member] | |||
Nonvested, Beginning of Period | 814,050 | 1,178,371 | 828,475 |
Shares, Vested | (254,871) | (546,115) | (296,966) |
Shares, Canceled | (88,915) | (45,070) | (43,900) |
Nonvested, End of Period | 704,804 | 814,050 | 1,178,371 |
Weighted-Average Grant-Date Fair Value, Nonvested, Beginning of Period | $ 26.57 | $ 17.86 | $ 23.08 |
Weighted-Average Grant-Date Fair Value, Granted | 68.11 | 45.66 | 13.57 |
Weighted-Average Grant-Date Fair Value, Vested | 25.16 | 15.63 | 21.46 |
Weighted-Average Grant-Date Fair Value, Canceled | 40.97 | 35.55 | 24.46 |
Weighted-Average Grant-Date Fair Value, Nonvested, End of Period | $ 39.08 | $ 26.57 | $ 17.86 |
Restricted Stock Units (RSUs) [Member] | |||
Nonvested, Beginning of Period | 102,924 | 109,725 | 115,466 |
Shares, Vested | (23,221) | (19,598) | (11,116) |
Shares, Canceled | (41,858) | (25,940) | (33,000) |
Nonvested, End of Period | 56,245 | 102,924 | 109,725 |
Share Based Compensation Equity Awards Other Than Options Expected To Vest Shares | 43,355 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms | 1 year 9 months 26 days | ||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Expected To Vest Weighted Average Remaining Contractual Term | 1 year 7 months 6 days | ||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Expected To Vest Intrinsic Value | $ 3,568,998 | ||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Outstanding, Aggregate Intrinsic Value | $ 4,630,088 |
Defined Contribution 401(k) S85
Defined Contribution 401(k) Savings Plan (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Contribution 401(k) Savings Plan [Abstract] | ||
Defined Contribution Plan, Cost Recognized | $ 0.2 | $ 0.2 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share Reconciliation [Abstract] | |||||||||||
Net earnings attributable to j2 Global, Inc. common shareholders | $ 35,467 | $ 37,375 | $ 38,916 | $ 21,877 | $ 31,763 | $ 28,759 | $ 35,049 | $ 28,765 | $ 133,636 | $ 124,336 | $ 107,522 |
Undistributed Earnings (Loss) Allocated to Participating Securities, Basic | 2,159 | 2,590 | 2,105 | ||||||||
Net earnings available to common shareholders | $ 131,477 | $ 121,746 | $ 105,417 | ||||||||
Basic | 47,849,748 | 47,696,224 | 47,537,597 | 47,422,396 | 47,146,503 | 46,845,477 | 46,745,596 | 46,365,158 | 47,627,853 | 46,778,015 | 45,548,767 |
Dilutive effect of equity incentive plans | 293,911 | 328,523 | 591,252 | ||||||||
Incremental Common Shares Attributable to Dilutive Effect of Contingently Issuable Shares | 165,996 | 0 | 0 | ||||||||
Diluted | 48,772,061 | 47,953,871 | 47,853,574 | 47,766,088 | 47,468,841 | 47,163,912 | 47,067,767 | 46,765,732 | 48,087,760 | 47,106,538 | 46,140,019 |
Basic | $ 0.73 | $ 0.77 | $ 0.81 | $ 0.45 | $ 0.66 | $ 0.60 | $ 0.73 | $ 0.61 | $ 2.76 | $ 2.60 | $ 2.31 |
Diluted | $ 0.72 | $ 0.77 | $ 0.80 | $ 0.45 | $ 0.66 | $ 0.60 | $ 0.73 | $ 0.60 | $ 2.73 | $ 2.58 | $ 2.28 |
Share options excluded from the computation of diluted earnings per share | 0 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues | $ 720,815 | $ 599,030 | $ 520,801 |
Total long-lived assets | 377,273 | 317,206 | |
UNITED STATES | |||
Revenues | 492,682 | 403,279 | 369,507 |
Total long-lived assets | 271,796 | 216,099 | |
CANADA | |||
Revenues | 74,864 | 70,434 | 73,130 |
IRELAND | |||
Revenues | 43,717 | 42,979 | 41,398 |
All Other Countries [Member] | |||
Revenues | 109,552 | 82,338 | $ 36,766 |
Total long-lived assets | $ 105,477 | $ 101,107 |
Segment Information Reportable
Segment Information Reportable Segment Information (Reconciliation of Total Segment Operating Income to Consolidated Operating Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 720,815 | $ 599,030 | $ 520,801 |
Direct Costs By Segment | 480,373 | 378,913 | 315,582 |
Operating Income (Loss) | 199,382 | 186,206 | 175,423 |
Global Operating Costs | 41,257 | 34,170 | 30,245 |
Business Cloud Services Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 504,638 | 431,475 | 390,104 |
Direct Costs By Segment | 294,436 | 241,592 | 191,169 |
Operating Income (Loss) | 210,202 | 189,883 | 198,935 |
Digital Media Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 216,374 | 167,814 | 131,146 |
Direct Costs By Segment | 185,937 | 137,321 | 124,413 |
Operating Income (Loss) | 30,437 | 30,493 | 6,733 |
Intersegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | (197) | (259) | (449) |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Income (Loss) | $ 240,639 | $ 220,376 | $ 205,668 |
Segment Information Reportabl89
Segment Information Reportable Segment Information (Total Assets, Capital Expenditures, Depreciation And Amortization) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Assets | $ 1,792,868 | $ 1,705,202 | |
Payments to Acquire Property, Plant, and Equipment | 17,297 | 11,829 | $ 18,627 |
Property, Plant and Equipment, Additions | 17,297 | 11,829 | 18,627 |
Depreciation, Depletion and Amortization, Nonproduction | 93,213 | 62,953 | 39,788 |
Business Cloud Services Segment [Member] | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Assets | 1,018,606 | 883,587 | |
Payments to Acquire Property, Plant, and Equipment | 7,546 | 6,639 | 10,979 |
Depreciation, Depletion and Amortization, Nonproduction | 62,385 | 39,699 | 24,148 |
Digital Media Segment [Member] | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Assets | 427,647 | 378,381 | |
Payments to Acquire Property, Plant, and Equipment | 9,389 | 4,920 | 6,635 |
Depreciation, Depletion and Amortization, Nonproduction | 30,008 | 22,483 | 14,963 |
Operating Segments [Member] | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Assets | 1,446,253 | 1,261,968 | |
Payments to Acquire Property, Plant, and Equipment | 16,935 | 11,559 | 17,614 |
Depreciation, Depletion and Amortization, Nonproduction | 92,393 | 62,182 | 39,111 |
Corporate [Member] | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Assets | 346,615 | 443,234 | |
Payments to Acquire Property, Plant, and Equipment | 362 | 270 | 1,013 |
Depreciation, Depletion and Amortization, Nonproduction | $ 820 | $ 771 | $ 677 |
Condensed Consolidating Finan90
Condensed Consolidating Financials Condensed Consolidating Balance Sheet (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash and cash equivalents | $ 255,530,000 | $ 433,663,000 | $ 207,801,000 | $ 218,680,000 |
Short-term investments | 79,655,000 | 96,206,000 | ||
Accounts Receivable, Net | 114,680,000 | 91,699,000 | ||
Prepaid expenses and other current assets | 25,722,000 | 22,602,000 | ||
Due from Affiliate, Current | 0 | 0 | ||
Assets, Current | 482,805,000 | 646,183,000 | ||
Long-term investments | 78,563,000 | 60,508,000 | ||
Property and equipment, net | 57,442,000 | 38,217,000 | ||
Tradenames, net | 118,965,000 | 105,551,000 | ||
Patent and patent licenses, net | 18,841,000 | 24,927,000 | ||
Customer Relationships, Net | 197,319,000 | 163,766,000 | ||
Goodwill | 807,661,000 | 635,675,000 | 457,422,000 | |
Other purchased intangibles, net | 17,516,000 | 17,556,000 | ||
Investments in and Advances to Affiliates, Amount of Equity | 0 | 0 | ||
Other assets | 13,756,000 | 12,819,000 | ||
Assets | 1,792,868,000 | 1,705,202,000 | ||
Accounts payable and accrued expenses | 114,384,000 | 95,310,000 | ||
Income taxes payable | 5,589,000 | 0 | ||
Deferred revenue | 76,104,000 | 63,457,000 | ||
Deferred Tax Liabilities, Net, Current | 363,000 | 342,000 | ||
Capital Lease Obligations, Current | 214,000 | 258,000 | ||
Due to Affiliate, Current | 0 | 0 | ||
Liabilities, Current | 196,654,000 | 159,367,000 | ||
Long-term Debt | 601,186,000 | 593,350,000 | ||
Capital Lease Obligations, Noncurrent | 148,000 | 141,000 | ||
Liability for uncertain tax positions | 35,917,000 | 37,551,000 | ||
Deferred income taxes | (43,989,000) | (61,960,000) | ||
Deferred Revenue, Noncurrent | 6,538,000 | 10,182,000 | ||
Other long-term liabilities | 18,228,000 | 22,416,000 | ||
Liabilities | 902,660,000 | 884,967,000 | ||
Commitments and contingencies | 0 | 0 | ||
Common Stock, Value, Issued | 479,000 | 474,000 | ||
Additional paid-in capital | 292,064,000 | 273,304,000 | ||
Retained earnings | 626,789,000 | 553,584,000 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (29,124,000) | (7,127,000) | 4,235,000 | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 890,208,000 | 820,235,000 | 706,418,000 | 594,595,000 |
Liabilities and Equity | 1,792,868,000 | 1,705,202,000 | ||
Stockholders' Equity Attributable to Noncontrolling Interest | 0 | 0 | 0 | (100,000) |
j2 Global, Inc. [Member] | ||||
Cash and cash equivalents | 55,516,000 | 226,790,000 | 0 | 0 |
Short-term investments | 79,595,000 | 47,880,000 | ||
Accounts Receivable, Net | 0 | 0 | ||
Prepaid expenses and other current assets | 6,887,000 | 776,000 | ||
Deferred income taxes | 0 | 1,271,000 | ||
Due from Affiliate, Current | 117,000,000 | 110,000,000 | ||
Assets, Current | 258,998,000 | 386,717,000 | ||
Long-term investments | 78,563,000 | 55,452,000 | ||
Property and equipment, net | 0 | 0 | ||
Tradenames, net | 0 | 0 | ||
Patent and patent licenses, net | 0 | 0 | ||
Customer Relationships, Net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other purchased intangibles, net | 0 | 0 | ||
Investments in and Advances to Affiliates, Amount of Equity | 1,051,927,000 | 826,289,000 | ||
Deferred income taxes | 0 | |||
Other assets | 8,219,000 | 9,328,000 | ||
Assets | 1,397,707,000 | 1,277,786,000 | ||
Accounts payable and accrued expenses | 4,573,000 | 2,834,000 | ||
Income taxes payable | 0 | |||
Deferred revenue | 0 | 0 | ||
Deferred Tax Liabilities, Net, Current | 511,000 | 0 | ||
Capital Lease Obligations, Current | 0 | 0 | ||
Due to Affiliate, Current | 121,263,000 | 76,366,000 | ||
Liabilities, Current | 126,347,000 | 79,200,000 | ||
Long-term Debt | 354,437,000 | 347,163,000 | ||
Capital Lease Obligations, Noncurrent | 0 | 0 | ||
Liability for uncertain tax positions | 0 | 0 | ||
Deferred income taxes | (24,936,000) | (21,728,000) | ||
Deferred Revenue, Noncurrent | 0 | 0 | ||
Other long-term liabilities | 1,779,000 | 744,000 | ||
Liabilities | 507,499,000 | 448,835,000 | ||
Commitments and contingencies | 0 | |||
Preferred Stock, Value, Issued | 0 | 0 | ||
Common Stock, Value, Issued | 479,000 | 474,000 | ||
Additional paid-in capital | 292,064,000 | 273,304,000 | ||
Retained earnings | 595,216,000 | 555,158,000 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 2,449,000 | 15,000 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 890,208,000 | 828,951,000 | ||
Liabilities and Equity | 1,397,707,000 | 1,277,786,000 | ||
j2 Cloud Services, Inc. [Member] | ||||
Cash and cash equivalents | 9,975,000 | 36,810,000 | 34,406,000 | 76,712,000 |
Short-term investments | 0 | 48,261,000 | ||
Accounts Receivable, Net | 10,679,000 | 11,167,000 | ||
Prepaid expenses and other current assets | 8,500,000 | 12,689,000 | ||
Deferred income taxes | 3,316,000 | 0 | ||
Due from Affiliate, Current | 174,127,000 | 74,938,000 | ||
Assets, Current | 206,597,000 | 183,865,000 | ||
Long-term investments | 0 | 5,056,000 | ||
Property and equipment, net | 6,557,000 | 8,011,000 | ||
Tradenames, net | 10,118,000 | 10,231,000 | ||
Patent and patent licenses, net | 743,000 | 886,000 | ||
Customer Relationships, Net | 1,193,000 | 2,206,000 | ||
Goodwill | 56,296,000 | 52,131,000 | ||
Other purchased intangibles, net | 4,218,000 | 4,276,000 | ||
Investments in and Advances to Affiliates, Amount of Equity | 1,095,155,000 | 900,681,000 | ||
Deferred income taxes | 14,978,000 | |||
Other assets | 1,167,000 | 1,368,000 | ||
Assets | 1,397,022,000 | 1,168,711,000 | ||
Accounts payable and accrued expenses | 27,976,000 | 28,414,000 | ||
Income taxes payable | 9,573,000 | |||
Deferred revenue | 19,530,000 | 23,091,000 | ||
Deferred Tax Liabilities, Net, Current | 0 | 0 | ||
Capital Lease Obligations, Current | 0 | |||
Due to Affiliate, Current | 0 | 0 | ||
Liabilities, Current | 57,079,000 | 51,505,000 | ||
Long-term Debt | 246,749,000 | 246,187,000 | ||
Capital Lease Obligations, Noncurrent | 0 | 0 | ||
Liability for uncertain tax positions | 35,917,000 | 37,551,000 | ||
Deferred income taxes | 0 | (1,837,000) | ||
Deferred Revenue, Noncurrent | 4,667,000 | 8,187,000 | ||
Other long-term liabilities | 683,000 | 829,000 | ||
Liabilities | 345,095,000 | 342,422,000 | ||
Commitments and contingencies | 0 | 0 | ||
Preferred Stock, Value, Issued | 0 | 0 | ||
Common Stock, Value, Issued | 0 | 0 | ||
Additional paid-in capital | 238,631,000 | 232,340,000 | ||
Retained earnings | 813,058,000 | 584,591,000 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 238,000 | 9,358,000 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,051,927,000 | 826,289,000 | ||
Liabilities and Equity | 1,397,022,000 | 1,168,711,000 | ||
Non-Guarantor Subsidiaries [Member] | ||||
Cash and cash equivalents | 190,039,000 | 170,063,000 | 173,395,000 | 141,968,000 |
Short-term investments | 60,000 | 65,000 | ||
Accounts Receivable, Net | 104,131,000 | 80,532,000 | ||
Prepaid expenses and other current assets | 14,319,000 | 9,137,000 | ||
Deferred income taxes | 4,413,000 | 742,000 | ||
Due from Affiliate, Current | 0 | 1,428,000 | ||
Assets, Current | 312,962,000 | 261,967,000 | ||
Long-term investments | 0 | 0 | ||
Property and equipment, net | 50,885,000 | 30,206,000 | ||
Tradenames, net | 108,847,000 | 95,320,000 | ||
Patent and patent licenses, net | 18,098,000 | 24,041,000 | ||
Customer Relationships, Net | 196,126,000 | 161,560,000 | ||
Goodwill | 751,365,000 | 583,544,000 | ||
Other purchased intangibles, net | 13,298,000 | 13,280,000 | ||
Investments in and Advances to Affiliates, Amount of Equity | 0 | 8,716,000 | ||
Deferred income taxes | (14,978,000) | |||
Other assets | 4,370,000 | 2,123,000 | ||
Assets | 1,440,973,000 | 1,180,757,000 | ||
Accounts payable and accrued expenses | 81,965,000 | 64,062,000 | ||
Income taxes payable | 0 | |||
Deferred revenue | 56,574,000 | 40,366,000 | ||
Deferred Tax Liabilities, Net, Current | 363,000 | 342,000 | ||
Capital Lease Obligations, Current | 214,000 | 258,000 | ||
Due to Affiliate, Current | 169,864,000 | 110,000,000 | ||
Liabilities, Current | 308,980,000 | 215,028,000 | ||
Long-term Debt | 0 | 0 | ||
Capital Lease Obligations, Noncurrent | 148,000 | 141,000 | ||
Liability for uncertain tax positions | 0 | 0 | ||
Deferred income taxes | (19,053,000) | (42,069,000) | ||
Deferred Revenue, Noncurrent | 1,871,000 | 1,995,000 | ||
Other long-term liabilities | 15,766,000 | 20,843,000 | ||
Liabilities | 345,818,000 | 280,076,000 | ||
Commitments and contingencies | 0 | 0 | ||
Preferred Stock, Value, Issued | 0 | 0 | ||
Common Stock, Value, Issued | 0 | 0 | ||
Additional paid-in capital | 524,031,000 | 421,676,000 | ||
Retained earnings | 602,935,000 | 495,505,000 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (31,811,000) | (16,500,000) | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,095,155,000 | 900,681,000 | ||
Liabilities and Equity | 1,440,973,000 | 1,180,757,000 | ||
Consolidation, Eliminations [Member] | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Short-term investments | 0 | 0 | ||
Accounts Receivable, Net | (130,000) | 0 | ||
Prepaid expenses and other current assets | (3,984,000) | 0 | ||
Deferred income taxes | (511,000) | 0 | ||
Due from Affiliate, Current | (291,127,000) | (186,366,000) | ||
Assets, Current | (295,752,000) | (186,366,000) | ||
Long-term investments | 0 | 0 | ||
Property and equipment, net | 0 | 0 | ||
Tradenames, net | 0 | 0 | ||
Patent and patent licenses, net | 0 | 0 | ||
Customer Relationships, Net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other purchased intangibles, net | 0 | 0 | ||
Investments in and Advances to Affiliates, Amount of Equity | (2,147,082,000) | (1,735,686,000) | ||
Deferred income taxes | 0 | |||
Other assets | 0 | 0 | ||
Assets | (2,442,834,000) | (1,922,052,000) | ||
Accounts payable and accrued expenses | (130,000) | 0 | ||
Income taxes payable | (3,984,000) | |||
Deferred revenue | 0 | 0 | ||
Deferred Tax Liabilities, Net, Current | (511,000) | 0 | ||
Capital Lease Obligations, Current | 0 | 0 | ||
Due to Affiliate, Current | (291,127,000) | (186,366,000) | ||
Liabilities, Current | (295,752,000) | (186,366,000) | ||
Long-term Debt | 0 | 0 | ||
Capital Lease Obligations, Noncurrent | 0 | 0 | ||
Liability for uncertain tax positions | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Deferred Revenue, Noncurrent | 0 | 0 | ||
Other long-term liabilities | 0 | 0 | ||
Liabilities | (295,752,000) | (186,366,000) | ||
Commitments and contingencies | 0 | 0 | ||
Preferred Stock, Value, Issued | 0 | 0 | ||
Common Stock, Value, Issued | 0 | 0 | ||
Additional paid-in capital | (762,662,000) | (654,016,000) | ||
Retained earnings | (1,384,420,000) | (1,081,670,000) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (2,147,082,000) | (1,735,686,000) | ||
Liabilities and Equity | $ (2,442,834,000) | $ (1,922,052,000) |
Condensed Consolidating Finan91
Condensed Consolidating Financials Condensed Consolidating Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues | $ 720,815 | $ 599,030 | $ 520,801 | ||||||||
Cost of revenues | 122,958 | 105,989 | 86,893 | ||||||||
Gross Profit | $ 170,215 | $ 148,032 | $ 146,544 | $ 133,067 | $ 138,145 | $ 124,974 | $ 119,186 | $ 110,736 | 597,857 | 493,041 | 433,908 |
Selling and Marketing Expense | 159,009 | 141,967 | 131,317 | ||||||||
Research and Development Expense | 34,329 | 30,680 | 25,485 | ||||||||
General and Administrative Expense | 205,137 | 134,188 | 101,683 | ||||||||
Operating Expenses | 398,475 | 306,835 | 258,485 | ||||||||
Operating Income (Loss) | 199,382 | 186,206 | 175,423 | ||||||||
Income (Loss) from Subsidiaries, before Tax | 0 | 0 | 0 | ||||||||
Interest expense, net | 42,458 | 31,204 | 21,254 | ||||||||
Other expense (income), net | 5 | (165) | 11,472 | ||||||||
Income before income taxes | 156,919 | 155,167 | 142,697 | ||||||||
Income tax expense | 23,283 | 29,840 | 35,175 | ||||||||
Net income | 35,467 | 37,375 | 38,916 | 21,877 | 32,754 | 28,759 | 35,049 | 28,765 | 133,636 | 125,327 | 107,522 |
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | 0 | |||||||||
Preferred Stock Redemption Premium | 0 | (991) | 0 | ||||||||
Net earnings attributable to j2 Global, Inc. common shareholders | $ 35,467 | $ 37,375 | $ 38,916 | $ 21,877 | $ 31,763 | $ 28,759 | $ 35,049 | $ 28,765 | 133,636 | 124,336 | 107,522 |
j2 Global, Inc. [Member] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Cost of revenues | 0 | 0 | 0 | ||||||||
Gross Profit | 0 | 0 | 0 | ||||||||
Selling and Marketing Expense | 0 | 0 | 0 | ||||||||
Research and Development Expense | 0 | 0 | 0 | ||||||||
General and Administrative Expense | 15,849 | 6,401 | 0 | ||||||||
Operating Expenses | 15,849 | 6,401 | 0 | ||||||||
Operating Income (Loss) | (15,849) | (6,401) | 0 | ||||||||
Income (Loss) from Subsidiaries, before Tax | 151,894 | 135,838 | 0 | ||||||||
Interest expense, net | 12,227 | (10,442) | 0 | ||||||||
Other expense (income), net | (271) | 23 | 0 | ||||||||
Income before income taxes | 124,089 | 119,018 | 0 | ||||||||
Income tax expense | (9,547) | (6,309) | 0 | ||||||||
Net income | 133,636 | 125,327 | 0 | ||||||||
Preferred Stock Redemption Premium | (991) | ||||||||||
Net earnings attributable to j2 Global, Inc. common shareholders | 124,336 | ||||||||||
j2 Cloud Services, Inc. [Member] | |||||||||||
Revenues | 232,768 | 227,860 | 255,413 | ||||||||
Cost of revenues | 77,798 | 51,391 | 84,655 | ||||||||
Gross Profit | 154,970 | 176,469 | 170,758 | ||||||||
Selling and Marketing Expense | 39,240 | 36,414 | 41,555 | ||||||||
Research and Development Expense | 14,844 | 14,055 | 12,977 | ||||||||
General and Administrative Expense | 26,842 | 30,300 | 37,634 | ||||||||
Operating Expenses | 80,926 | 80,769 | 92,166 | ||||||||
Operating Income (Loss) | 74,044 | 95,700 | 78,592 | ||||||||
Income (Loss) from Subsidiaries, before Tax | 116,142 | 77,051 | 61,551 | ||||||||
Interest expense, net | 21,276 | (20,478) | 9,292 | ||||||||
Other expense (income), net | 395 | (141) | (369) | ||||||||
Income before income taxes | 168,515 | 152,132 | 131,220 | ||||||||
Income tax expense | 16,621 | 16,294 | 23,698 | ||||||||
Net income | 151,894 | 135,838 | 107,522 | ||||||||
Preferred Stock Redemption Premium | 0 | ||||||||||
Net earnings attributable to j2 Global, Inc. common shareholders | 135,838 | ||||||||||
Non-Guarantor Subsidiaries [Member] | |||||||||||
Revenues | 554,560 | 412,217 | 369,079 | ||||||||
Cost of revenues | 111,476 | 95,386 | 105,480 | ||||||||
Gross Profit | 443,084 | 316,831 | 263,599 | ||||||||
Selling and Marketing Expense | 119,966 | 105,812 | 90,211 | ||||||||
Research and Development Expense | 19,485 | 16,625 | 12,508 | ||||||||
General and Administrative Expense | 162,446 | 97,487 | 64,049 | ||||||||
Operating Expenses | 301,897 | 219,924 | 166,768 | ||||||||
Operating Income (Loss) | 141,187 | 96,907 | 96,831 | ||||||||
Income (Loss) from Subsidiaries, before Tax | 0 | 0 | 0 | ||||||||
Interest expense, net | 8,955 | (284) | 11,962 | ||||||||
Other expense (income), net | (119) | 283 | 11,841 | ||||||||
Income before income taxes | 132,351 | 96,906 | 73,028 | ||||||||
Income tax expense | 16,209 | 19,855 | 11,477 | ||||||||
Net income | 116,142 | 77,051 | 61,551 | ||||||||
Preferred Stock Redemption Premium | 0 | ||||||||||
Net earnings attributable to j2 Global, Inc. common shareholders | 77,051 | ||||||||||
Consolidation, Eliminations [Member] | |||||||||||
Revenues | (66,513) | (41,047) | (103,691) | ||||||||
Cost of revenues | (66,316) | (40,788) | (103,242) | ||||||||
Gross Profit | (197) | (259) | (449) | ||||||||
Selling and Marketing Expense | (197) | (259) | (449) | ||||||||
Research and Development Expense | 0 | 0 | 0 | ||||||||
General and Administrative Expense | 0 | 0 | 0 | ||||||||
Operating Expenses | (197) | (259) | (449) | ||||||||
Operating Income (Loss) | 0 | 0 | 0 | ||||||||
Income (Loss) from Subsidiaries, before Tax | (268,036) | (212,889) | (61,551) | ||||||||
Interest expense, net | 0 | 0 | 0 | ||||||||
Other expense (income), net | 0 | 0 | 0 | ||||||||
Income before income taxes | (268,036) | (212,889) | (61,551) | ||||||||
Income tax expense | 0 | 0 | 0 | ||||||||
Net income | $ (268,036) | (212,889) | $ (61,551) | ||||||||
Preferred Stock Redemption Premium | 0 | ||||||||||
Net earnings attributable to j2 Global, Inc. common shareholders | $ (212,889) |
Condensed Consolidating Finan92
Condensed Consolidating Financials Condensed Consolidating Comprehensive Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net income | $ 35,467 | $ 37,375 | $ 38,916 | $ 21,877 | $ 32,754 | $ 28,759 | $ 35,049 | $ 28,765 | $ 133,636 | $ 125,327 | $ 107,522 |
Other comprehensive income, net of tax: | |||||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (15,058) | (14,694) | 78 | ||||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | (6,939) | 3,332 | 4,245 | ||||||||
Other Comprehensive Income (Loss), Net of Tax | (21,997) | (11,362) | 4,323 | ||||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 111,639 | 113,965 | 111,845 | ||||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | 0 | |||||||||
Comprehensive income attributable to j2 Global, Inc. | 111,845 | ||||||||||
j2 Global, Inc. [Member] | |||||||||||
Net income | 133,636 | 125,327 | 0 | ||||||||
Other comprehensive income, net of tax: | |||||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 0 | 0 | 0 | ||||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | (6,939) | 15 | 0 | ||||||||
Other Comprehensive Income (Loss), Net of Tax | (6,939) | 15 | 0 | ||||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 126,697 | 125,342 | 0 | ||||||||
Comprehensive income attributable to j2 Global, Inc. | 0 | ||||||||||
j2 Cloud Services, Inc. [Member] | |||||||||||
Net income | 151,894 | 135,838 | 107,522 | ||||||||
Other comprehensive income, net of tax: | |||||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 0 | (478) | (43) | ||||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 0 | 3,307 | 4,249 | ||||||||
Other Comprehensive Income (Loss), Net of Tax | 0 | 2,829 | 4,206 | ||||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 151,894 | 138,667 | 111,728 | ||||||||
Comprehensive income attributable to j2 Global, Inc. | 111,728 | ||||||||||
Non-Guarantor Subsidiaries [Member] | |||||||||||
Net income | 116,142 | 77,051 | 61,551 | ||||||||
Other comprehensive income, net of tax: | |||||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (15,058) | (14,216) | 121 | ||||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 0 | 10 | (4) | ||||||||
Other Comprehensive Income (Loss), Net of Tax | (15,058) | (14,206) | 117 | ||||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 101,084 | 62,845 | 61,668 | ||||||||
Comprehensive income attributable to j2 Global, Inc. | 61,668 | ||||||||||
Consolidation, Eliminations [Member] | |||||||||||
Net income | (268,036) | (212,889) | (61,551) | ||||||||
Other comprehensive income, net of tax: | |||||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 0 | 0 | 0 | ||||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 0 | 0 | 0 | ||||||||
Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | 0 | ||||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ (268,036) | $ (212,889) | (61,551) | ||||||||
Comprehensive income attributable to j2 Global, Inc. | $ (61,551) |
Condensed Consolidating Finan93
Condensed Consolidating Financials Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Net income | $ 35,467 | $ 37,375 | $ 38,916 | $ 21,877 | $ 32,754 | $ 28,759 | $ 35,049 | $ 28,765 | $ 133,636 | $ 125,327 | $ 107,522 | |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization | 93,213 | 62,953 | 39,788 | |||||||||
Accretion (Amortization) of Discounts and Premiums, Investments | (1,207) | (1,334) | (1,796) | |||||||||
Amortization of financing costs and discounts | 9,105 | 5,045 | 613 | |||||||||
Share-based Compensation | 11,793 | 8,908 | 9,720 | |||||||||
Excess Tax Benefit from Share-based Compensation, Operating Activities | 4,486 | 5,512 | 2,695 | |||||||||
Provision for doubtful accounts | 6,872 | 4,702 | 3,135 | |||||||||
Deferred income taxes | (17,083) | (10,033) | 250 | |||||||||
Loss on disposal of fixed assets | 0 | 0 | 8 | |||||||||
(Gain) loss on available-for-sale investments | (549) | (90) | 66 | |||||||||
Loss on extinguishment of debt and related interest expense | 0 | 0 | 14,437 | |||||||||
Decrease (increase) in: | ||||||||||||
Increase (Decrease) in Accounts Receivable | (18,508) | (11,078) | (9,588) | |||||||||
Increase (Decrease) in Prepaid Expense and Other Assets | 1,461 | (3,212) | 149 | |||||||||
Increase (Decrease) in Other Operating Assets | (602) | (42) | 168 | |||||||||
(Decrease) increase in: | ||||||||||||
Accounts payable and accrued expenses | 8,757 | (5,447) | 9,126 | |||||||||
Income taxes payable | 3,578 | 10,797 | 667 | |||||||||
Deferred revenue | (3,480) | (711) | 12,368 | |||||||||
Liability for uncertain tax positions | (5,718) | (6,313) | 6,186 | |||||||||
Other | 9,865 | 603 | (392) | |||||||||
Net Cash Provided by (Used in) Operating Activities | 229,061 | 177,231 | 193,324 | |||||||||
Cash flows from investing activities: | ||||||||||||
Maturity of certificates of deposit | 65 | 14,520 | 42,615 | |||||||||
Payments to Acquire Other Investments | (62) | (65) | (22,071) | |||||||||
Maturity of available-for-sale investments | 121,687 | 110,363 | 140,126 | |||||||||
Payments to Acquire Available-for-sale Securities | (135,832) | (138,452) | (168,901) | |||||||||
Payments to Acquire Property, Plant, and Equipment | (17,297) | (11,829) | (18,627) | |||||||||
Proceeds from sale of assets | 0 | 608 | 1 | |||||||||
Payments to Acquire Businesses, Net of Cash Acquired | (302,809) | (245,278) | (126,341) | |||||||||
Payments to Acquire Intangible Assets | (1,455) | (5,336) | (14,200) | |||||||||
Net Cash Provided by (Used in) Investing Activities | (335,703) | (275,469) | (167,398) | |||||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from Issuance of Long-term Debt | 0 | (402,500) | 0 | |||||||||
Debt issuance costs | 0 | (11,991) | (47) | |||||||||
Payments for Repurchase of Common Stock | (3,674) | (5,663) | (4,587) | |||||||||
Issuance of common stock under employee stock purchase plan | 260 | 265 | 213 | |||||||||
Exercise of stock options | 4,958 | 6,621 | 13,604 | |||||||||
Proceeds from Noncontrolling Interests | 0 | |||||||||||
Payments of Dividends | (58,826) | (52,269) | (45,134) | |||||||||
Excess tax benefits from share-based compensation | 4,486 | 5,512 | 2,695 | |||||||||
PaymentsOfDeferredConsiderationRelatedToAcquisition | (14,271) | (16,512) | 0 | |||||||||
Proceeds from (Payments for) Other Financing Activities | (296) | (933) | (2,437) | |||||||||
Payments of Distributions to Affiliates | 0 | 0 | 0 | |||||||||
Net Cash Provided by (Used in) Financing Activities | (67,363) | 327,530 | (35,693) | |||||||||
Effect of exchange rate changes on cash and cash equivalents | (4,128) | (3,430) | (1,112) | |||||||||
Cash and Cash Equivalents, Period Increase (Decrease) | (178,133) | 225,862 | (10,879) | |||||||||
Cash and cash equivalents | 255,530 | 433,663 | 255,530 | 433,663 | 207,801 | $ 218,680 | ||||||
Payments to Acquire Interest in Subsidiaries and Affiliates | 0 | 0 | 0 | |||||||||
Intercompany Investing Activities | 0 | |||||||||||
Payments for (Proceeds from) Other Investing Activities | 0 | |||||||||||
j2 Global, Inc. [Member] | ||||||||||||
Net income | 133,636 | 125,327 | 0 | |||||||||
(Decrease) increase in: | ||||||||||||
Net Cash Provided by (Used in) Operating Activities | (29,406) | (65) | 0 | |||||||||
Cash flows from investing activities: | ||||||||||||
Maturity of certificates of deposit | 65 | 0 | 0 | |||||||||
Payments to Acquire Other Investments | (62) | 0 | 0 | |||||||||
Maturity of available-for-sale investments | 121,687 | 40,211 | 0 | |||||||||
Payments to Acquire Available-for-sale Securities | (135,832) | 81,061 | 0 | |||||||||
Payments to Acquire Property, Plant, and Equipment | 0 | 0 | 0 | |||||||||
Proceeds from sale of assets | 0 | 0 | ||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | 0 | 0 | 0 | |||||||||
Payments to Acquire Intangible Assets | 0 | 0 | 0 | |||||||||
Net Cash Provided by (Used in) Investing Activities | (67,459) | (40,850) | 0 | |||||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from Issuance of Long-term Debt | (402,500) | |||||||||||
Debt issuance costs | 11,991 | 0 | ||||||||||
Payments for Repurchase of Common Stock | (3,674) | 930 | 0 | |||||||||
Issuance of common stock under employee stock purchase plan | 260 | 142 | 0 | |||||||||
Exercise of stock options | 4,958 | 1,374 | 0 | |||||||||
Proceeds from Noncontrolling Interests | 0 | |||||||||||
Payments of Dividends | (58,826) | 26,967 | 0 | |||||||||
Excess tax benefits from share-based compensation | 4,486 | 86 | 0 | |||||||||
PaymentsOfDeferredConsiderationRelatedToAcquisition | 0 | 0 | ||||||||||
Proceeds from (Payments for) Other Financing Activities | 0 | 0 | 0 | |||||||||
Payments of Distributions to Affiliates | (29,835) | (96,509) | 0 | |||||||||
Net Cash Provided by (Used in) Financing Activities | (82,631) | 267,705 | 0 | |||||||||
Effect of exchange rate changes on cash and cash equivalents | 8,222 | 0 | 0 | |||||||||
Cash and Cash Equivalents, Period Increase (Decrease) | (171,274) | 226,790 | 0 | |||||||||
Cash and cash equivalents | 55,516 | 226,790 | 55,516 | 226,790 | 0 | 0 | ||||||
Payments to Acquire Interest in Subsidiaries and Affiliates | 0 | 0 | 0 | |||||||||
Intercompany Investing Activities | (53,317) | |||||||||||
Payments for (Proceeds from) Other Investing Activities | 0 | |||||||||||
j2 Cloud Services, Inc. [Member] | ||||||||||||
Net income | 151,894 | 135,838 | 107,522 | |||||||||
(Decrease) increase in: | ||||||||||||
Net Cash Provided by (Used in) Operating Activities | 70,905 | 59,544 | 82,291 | |||||||||
Cash flows from investing activities: | ||||||||||||
Maturity of certificates of deposit | 0 | 8,210 | 30,270 | |||||||||
Payments to Acquire Other Investments | 0 | 0 | (16,375) | |||||||||
Maturity of available-for-sale investments | 0 | 53,563 | 124,745 | |||||||||
Payments to Acquire Available-for-sale Securities | 0 | 57,391 | (149,748) | |||||||||
Payments to Acquire Property, Plant, and Equipment | (1,645) | (2,866) | (6,223) | |||||||||
Proceeds from sale of assets | 608 | 1 | ||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | 0 | 2,083 | (4,043) | |||||||||
Payments to Acquire Intangible Assets | 57 | 2,949 | (3,034) | |||||||||
Net Cash Provided by (Used in) Investing Activities | 51,729 | (26,729) | (36,046) | |||||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from Issuance of Long-term Debt | 0 | |||||||||||
Debt issuance costs | 0 | (47) | ||||||||||
Payments for Repurchase of Common Stock | 0 | 4,733 | (4,587) | |||||||||
Issuance of common stock under employee stock purchase plan | 0 | 123 | 213 | |||||||||
Exercise of stock options | 0 | 5,193 | 13,604 | |||||||||
Proceeds from Noncontrolling Interests | 0 | |||||||||||
Payments of Dividends | 0 | 25,302 | (45,134) | |||||||||
Excess tax benefits from share-based compensation | 0 | 4,803 | 2,695 | |||||||||
PaymentsOfDeferredConsiderationRelatedToAcquisition | (2,000) | 0 | ||||||||||
Proceeds from (Payments for) Other Financing Activities | 0 | 0 | 0 | |||||||||
Payments of Distributions to Affiliates | (144,516) | (10,495) | (55,295) | |||||||||
Net Cash Provided by (Used in) Financing Activities | (146,516) | (30,411) | (88,551) | |||||||||
Effect of exchange rate changes on cash and cash equivalents | (2,953) | 0 | 0 | |||||||||
Cash and Cash Equivalents, Period Increase (Decrease) | (26,835) | 2,404 | (42,306) | |||||||||
Cash and cash equivalents | 9,975 | 36,810 | 9,975 | 36,810 | 34,406 | 76,712 | ||||||
Payments to Acquire Interest in Subsidiaries and Affiliates | 0 | (23,821) | (14,920) | |||||||||
Intercompany Investing Activities | 53,317 | |||||||||||
Payments for (Proceeds from) Other Investing Activities | 3,281 | |||||||||||
Non-Guarantor Subsidiaries [Member] | ||||||||||||
Net income | 116,142 | 77,051 | 61,551 | |||||||||
(Decrease) increase in: | ||||||||||||
Net Cash Provided by (Used in) Operating Activities | 187,562 | 117,752 | 111,033 | |||||||||
Cash flows from investing activities: | ||||||||||||
Maturity of certificates of deposit | 0 | 6,310 | 12,345 | |||||||||
Payments to Acquire Other Investments | 0 | 65 | (5,696) | |||||||||
Maturity of available-for-sale investments | 0 | 16,589 | 15,381 | |||||||||
Payments to Acquire Available-for-sale Securities | 0 | 0 | (19,153) | |||||||||
Payments to Acquire Property, Plant, and Equipment | (15,652) | 8,963 | (12,404) | |||||||||
Proceeds from sale of assets | 0 | 0 | ||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | (302,809) | 243,195 | (122,298) | |||||||||
Payments to Acquire Intangible Assets | (1,512) | 2,387 | (11,166) | |||||||||
Net Cash Provided by (Used in) Investing Activities | (319,973) | (231,711) | (146,272) | |||||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from Issuance of Long-term Debt | 0 | |||||||||||
Debt issuance costs | 0 | 0 | ||||||||||
Payments for Repurchase of Common Stock | 0 | 0 | 0 | |||||||||
Issuance of common stock under employee stock purchase plan | 0 | 0 | 0 | |||||||||
Exercise of stock options | 0 | 54 | 0 | |||||||||
Proceeds from Noncontrolling Interests | 0 | |||||||||||
Payments of Dividends | 0 | 0 | 0 | |||||||||
Excess tax benefits from share-based compensation | 0 | 623 | 0 | |||||||||
PaymentsOfDeferredConsiderationRelatedToAcquisition | (12,271) | 16,512 | ||||||||||
Proceeds from (Payments for) Other Financing Activities | (296) | (933) | (2,437) | |||||||||
Payments of Distributions to Affiliates | 174,351 | 130,825 | 70,215 | |||||||||
Net Cash Provided by (Used in) Financing Activities | 161,784 | 114,057 | 67,778 | |||||||||
Effect of exchange rate changes on cash and cash equivalents | (9,397) | (3,430) | (1,112) | |||||||||
Cash and Cash Equivalents, Period Increase (Decrease) | 19,976 | (3,332) | 31,427 | |||||||||
Cash and cash equivalents | 190,039 | 170,063 | 190,039 | 170,063 | 173,395 | 141,968 | ||||||
Payments to Acquire Interest in Subsidiaries and Affiliates | 0 | 0 | 0 | |||||||||
Intercompany Investing Activities | 0 | |||||||||||
Payments for (Proceeds from) Other Investing Activities | (3,281) | |||||||||||
Consolidation, Eliminations [Member] | ||||||||||||
Net income | (268,036) | (212,889) | (61,551) | |||||||||
(Decrease) increase in: | ||||||||||||
Net Cash Provided by (Used in) Operating Activities | 0 | 0 | 0 | |||||||||
Cash flows from investing activities: | ||||||||||||
Maturity of certificates of deposit | 0 | 0 | 0 | |||||||||
Payments to Acquire Other Investments | 0 | 0 | 0 | |||||||||
Maturity of available-for-sale investments | 0 | 0 | 0 | |||||||||
Payments to Acquire Available-for-sale Securities | 0 | 0 | 0 | |||||||||
Payments to Acquire Property, Plant, and Equipment | 0 | 0 | 0 | |||||||||
Proceeds from sale of assets | 0 | 0 | ||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | 0 | 0 | 0 | |||||||||
Payments to Acquire Intangible Assets | 0 | 0 | 0 | |||||||||
Net Cash Provided by (Used in) Investing Activities | 0 | 23,821 | 14,920 | |||||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from Issuance of Long-term Debt | 0 | |||||||||||
Debt issuance costs | 0 | 0 | ||||||||||
Payments for Repurchase of Common Stock | 0 | 0 | 0 | |||||||||
Issuance of common stock under employee stock purchase plan | 0 | 0 | 0 | |||||||||
Exercise of stock options | 0 | 0 | 0 | |||||||||
Proceeds from Noncontrolling Interests | 0 | |||||||||||
Payments of Dividends | 0 | 0 | 0 | |||||||||
Excess tax benefits from share-based compensation | 0 | 0 | 0 | |||||||||
PaymentsOfDeferredConsiderationRelatedToAcquisition | 0 | 0 | ||||||||||
Proceeds from (Payments for) Other Financing Activities | 0 | 0 | 0 | |||||||||
Payments of Distributions to Affiliates | 0 | (23,821) | (14,920) | |||||||||
Net Cash Provided by (Used in) Financing Activities | 0 | (23,821) | (14,920) | |||||||||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 | |||||||||
Cash and Cash Equivalents, Period Increase (Decrease) | 0 | 0 | 0 | |||||||||
Cash and cash equivalents | $ 0 | $ 0 | 0 | 0 | 0 | $ 0 | ||||||
Payments to Acquire Interest in Subsidiaries and Affiliates | 0 | $ 23,821 | 14,920 | |||||||||
Intercompany Investing Activities | $ 0 | |||||||||||
Payments for (Proceeds from) Other Investing Activities | $ 0 |
Supplemental Cash Flows Infor94
Supplemental Cash Flows Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Supplemental Cash Flows Information [Abstract] | |||
Cash paid for income taxes | $ 42,000 | $ 49,500 | $ 28,300 |
Capital Expenditures Incurred but Not yet Paid | 600 | 600 | 900 |
Tax Benefit from Stock Options Exercised | 7,500 | 10,200 | 7,100 |
Interest Paid | 33,100 | 26,600 | 21,100 |
Loss on extinguishment of debt and related interest expense | $ 0 | $ 0 | $ 14,437 |
Accumulated Other Comprehensi95
Accumulated Other Comprehensive Income Accumulated Other Comprehensive Income Roll Forward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss) Roll Forward [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | $ 2,449 | $ 9,388 | $ 6,056 |
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | (31,573) | (16,515) | (1,821) |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (29,124) | (7,127) | 4,235 |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | (6,939) | 3,332 | 4,245 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | (15,058) | (14,694) | |
Other Comprehensive Income Loss Arising During Period Total Net of Tax | (21,827) | (11,348) | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | (170) | (14) | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | 0 | 0 | |
Other Comprehensive Income Loss Reclassification Adjustments Total Net of Tax | (170) | (14) | |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | (6,769) | 3,346 | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (15,058) | (14,694) | 78 |
Other Comprehensive Income (Loss), Net of Tax | $ (21,997) | $ (11,362) | $ 4,323 |
Accumulated Other Comprehensi96
Accumulated Other Comprehensive Income Accumulated Other Comprehensive Income (Reclassification out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income [Abstract] | |||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | $ (6,769) | $ 3,346 | |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | (6,939) | 3,332 | $ 4,245 |
ReclassificationOutOfAccumulatedOtherComprehensiveIncomeTableTextBlock [Line Items] | |||
Other expense (income), net | 5 | (165) | 11,472 |
Income tax expense | 23,283 | 29,840 | $ 35,175 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | 0 | 0 | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | (170) | (14) | |
Other Comprehensive Income Loss Reclassification Adjustments Total Net of Tax | (170) | (14) | |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | |||
ReclassificationOutOfAccumulatedOtherComprehensiveIncomeTableTextBlock [Line Items] | |||
Other expense (income), net | (274) | (23) | |
Income tax expense | $ 104 | $ 9 |
Quarterly Results (Details)
Quarterly Results (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Results [Abstract] | |||||||||||
Revenue, Net | $ 204,823 | $ 178,701 | $ 176,038 | $ 161,253 | $ 167,144 | $ 153,018 | $ 144,744 | $ 134,124 | |||
Gross Profit | 170,215 | 148,032 | 146,544 | 133,067 | 138,145 | 124,974 | 119,186 | 110,736 | $ 597,857 | $ 493,041 | $ 433,908 |
Net income | 35,467 | 37,375 | 38,916 | 21,877 | 32,754 | 28,759 | 35,049 | 28,765 | 133,636 | 125,327 | 107,522 |
Net earnings attributable to j2 Global, Inc. common shareholders | $ 35,467 | $ 37,375 | $ 38,916 | $ 21,877 | $ 31,763 | $ 28,759 | $ 35,049 | $ 28,765 | $ 133,636 | $ 124,336 | $ 107,522 |
Basic | $ 0.73 | $ 0.77 | $ 0.81 | $ 0.45 | $ 0.66 | $ 0.60 | $ 0.73 | $ 0.61 | $ 2.76 | $ 2.60 | $ 2.31 |
Diluted | $ 0.72 | $ 0.77 | $ 0.80 | $ 0.45 | $ 0.66 | $ 0.60 | $ 0.73 | $ 0.60 | $ 2.73 | $ 2.58 | $ 2.28 |
Basic | 47,849,748 | 47,696,224 | 47,537,597 | 47,422,396 | 47,146,503 | 46,845,477 | 46,745,596 | 46,365,158 | 47,627,853 | 46,778,015 | 45,548,767 |
Diluted | 48,772,061 | 47,953,871 | 47,853,574 | 47,766,088 | 47,468,841 | 47,163,912 | 47,067,767 | 46,765,732 | 48,087,760 | 47,106,538 | 46,140,019 |
Unrestricted Subsidiaries Unres
Unrestricted Subsidiaries Unrestricted Subsidiaries (Financial Position) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash and cash equivalents | $ 255,530 | $ 433,663 | $ 207,801 | $ 218,680 |
Accounts Receivable, Net | 114,680 | 91,699 | ||
Prepaid expenses and other current assets | 25,722 | 22,602 | ||
Assets, Current | 482,805 | 646,183 | ||
Property and equipment, net | 57,442 | 38,217 | ||
Tradenames, net | 118,965 | 105,551 | ||
Patent and patent licenses, net | 18,841 | 24,927 | ||
Customer Relationships, Net | 197,319 | 163,766 | ||
Goodwill | 807,661 | 635,675 | 457,422 | |
Other purchased intangibles, net | 17,516 | 17,556 | ||
Other assets | 13,756 | 12,819 | ||
Assets | 1,792,868 | 1,705,202 | ||
Accounts payable and accrued expenses | 114,384 | 95,310 | ||
Income taxes payable | 5,589 | 0 | ||
Deferred revenue | 76,104 | 63,457 | ||
Deferred Tax Liabilities, Net, Current | 363 | 342 | ||
Liabilities, Current | 196,654 | 159,367 | ||
Long-term Debt | 601,186 | 593,350 | ||
Deferred income taxes, non-current | 43,989 | 61,960 | ||
Other long-term liabilities | 18,228 | 22,416 | ||
Liabilities | 902,660 | 884,967 | ||
Commitments and contingencies | 0 | 0 | ||
Common Stock, Value, Issued | 479 | 474 | ||
Additional paid-in capital | 292,064 | 273,304 | ||
Retained earnings | 626,789 | 553,584 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (29,124) | (7,127) | 4,235 | |
Stockholders' equity attributable to j2 Global, Inc. | 890,208 | 820,235 | 706,418 | 594,695 |
Stockholders' Equity Attributable to Noncontrolling Interest | 0 | 0 | 0 | (100) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 890,208 | 820,235 | $ 706,418 | $ 594,595 |
Liabilities and Equity | 1,792,868 | 1,705,202 | ||
Unrestricted Subsidiaries [Member] | ||||
Cash and cash equivalents | 16,482 | 27,944 | ||
Accounts Receivable, Net | 79,283 | 57,005 | ||
Prepaid expenses and other current assets | 5,437 | 2,986 | ||
Deferred income taxes | 3,382 | 5,292 | ||
Assets, Current | 104,584 | 93,227 | ||
Property and equipment, net | 25,353 | 12,834 | ||
Tradenames, net | 73,034 | 70,310 | ||
Patent and patent licenses, net | 18,071 | 24,007 | ||
Customer Relationships, Net | 68,317 | 55,925 | ||
Goodwill | 304,943 | 245,613 | ||
Other purchased intangibles, net | 7,810 | 8,901 | ||
Deferred income taxes | 2,373 | 0 | ||
Other assets | 0 | 1,706 | ||
Assets | 604,485 | 512,523 | ||
Accounts payable and accrued expenses | 88,580 | 40,296 | ||
Income taxes payable | 0 | 316 | ||
Deferred revenue | 6,554 | 5,277 | ||
Liabilities, Current | 95,134 | 45,889 | ||
Long-term Debt | 155,000 | 110,000 | ||
Deferred income taxes, non-current | 11,270 | 17,397 | ||
Other long-term liabilities | 13,546 | 16,243 | ||
Liabilities | 274,950 | 189,529 | ||
Additional paid-in capital | 319,728 | 317,932 | ||
Retained earnings | 11,552 | 6,051 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (1,745) | (989) | ||
Stockholders' equity attributable to j2 Global, Inc. | 329,535 | 322,994 | ||
Liabilities and Equity | $ 604,485 | $ 512,523 |
Unrestricted Subsidiaries Unr99
Unrestricted Subsidiaries Unrestricted Subsidiaries (Results of Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues | $ 720,815 | $ 599,030 | $ 520,801 | ||||||||
Cost of revenues | 122,958 | 105,989 | 86,893 | ||||||||
Gross Profit | $ 170,215 | $ 148,032 | $ 146,544 | $ 133,067 | $ 138,145 | $ 124,974 | $ 119,186 | $ 110,736 | 597,857 | 493,041 | 433,908 |
Selling and Marketing Expense | 159,009 | 141,967 | 131,317 | ||||||||
Research and Development Expense | 34,329 | 30,680 | 25,485 | ||||||||
General and Administrative Expense | 205,137 | 134,188 | 101,683 | ||||||||
Operating Expenses | 398,475 | 306,835 | 258,485 | ||||||||
Operating Income (Loss) | 199,382 | 186,206 | 175,423 | ||||||||
Interest expense, net | 42,458 | 31,204 | 21,254 | ||||||||
Other expense (income), net | 5 | (165) | 11,472 | ||||||||
Income before income taxes | 156,919 | 155,167 | 142,697 | ||||||||
Income tax expense | 23,283 | 29,840 | 35,175 | ||||||||
Net income | 35,467 | 37,375 | 38,916 | 21,877 | 32,754 | 28,759 | 35,049 | 28,765 | 133,636 | 125,327 | 107,522 |
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | 0 | |||||||||
Net earnings attributable to j2 Global, Inc. common shareholders | $ 35,467 | $ 37,375 | $ 38,916 | $ 21,877 | $ 31,763 | $ 28,759 | $ 35,049 | $ 28,765 | 133,636 | 124,336 | $ 107,522 |
Unrestricted Subsidiaries [Member] | |||||||||||
Revenues | 217,778 | 169,065 | |||||||||
Cost of revenues | 21,749 | 19,028 | |||||||||
Gross Profit | 196,029 | 150,037 | |||||||||
Selling and Marketing Expense | 78,176 | 68,057 | |||||||||
Research and Development Expense | 8,134 | 5,485 | |||||||||
General and Administrative Expense | 87,161 | 52,768 | |||||||||
Operating Expenses | 173,471 | 126,310 | |||||||||
Operating Income (Loss) | 22,558 | 23,727 | |||||||||
Interest expense, net | 11,179 | 821 | |||||||||
Other expense (income), net | 290 | 347 | |||||||||
Income before income taxes | 11,089 | 22,559 | |||||||||
Income tax expense | 5,588 | 4,883 | |||||||||
Net income | 5,501 | 17,676 | |||||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | 0 | |||||||||
Net earnings attributable to j2 Global, Inc. common shareholders | $ 5,501 | $ 17,676 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | Feb. 10, 2016 | Nov. 03, 2015 | Aug. 03, 2015 | May. 06, 2015 | Feb. 10, 2015 | Oct. 30, 2014 | Aug. 05, 2014 | May. 07, 2014 | Feb. 12, 2014 |
Subsequent Event [Line Items] | |||||||||
Dividends declared date | Nov. 3, 2015 | Aug. 3, 2015 | May 6, 2015 | Feb. 10, 2015 | Oct. 30, 2014 | Aug. 5, 2014 | May 7, 2014 | Feb. 11, 2014 | |
Dividend amount to be paid, per common share | $ 0.315 | $ 0.3075 | $ 0.3 | $ 0.2925 | $ 0.285 | $ 0.2775 | $ 0.27 | $ 0.2625 | |
Date dividend is payable | Dec. 3, 2015 | Sep. 1, 2015 | Jun. 3, 2015 | Mar. 9, 2015 | Dec. 4, 2014 | Sep. 2, 2014 | Jun. 3, 2014 | Mar. 10, 2014 | |
Date shareholders must be on record for dividend | Nov. 17, 2015 | Aug. 17, 2015 | May 19, 2015 | Feb. 23, 2015 | Nov. 17, 2014 | Aug. 18, 2014 | May 19, 2014 | Feb. 24, 2014 | |
Subsequent Event [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Dividends declared date | Feb. 10, 2016 | ||||||||
Dividend amount to be paid, per common share | $ 0.3250 | ||||||||
Date dividend is payable | Mar. 10, 2016 | ||||||||
Date shareholders must be on record for dividend | Feb. 23, 2016 |