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 |