Condensed Financial Statements [Text Block] | Condensed Consolidating Financial Statements In connection with the June 2014 Convertible Note issuance, j2 Global, Inc. entered into a supplemental indenture related to the Senior Notes, pursuant to which it fully and unconditionally guaranteed, on an unsecured basis, the full and punctual payment of the 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 CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited, in thousands except share and per share data) June 30, 2016 BALANCE SHEET j2 Global, Inc. j2 Cloud Services, Inc. Non-guarantor Subsidiaries Consolidating Adjustments j2 Global Consolidated ASSETS Cash and cash equivalents $ 74,197 $ 39,655 $ 199,902 $ — $ 313,754 Short-term investments 50,853 — 62 — 50,915 Accounts receivable, net — 12,430 93,941 (6 ) 106,365 Prepaid expenses and other current assets 10,097 2,151 15,340 (5,116 ) 22,472 Intercompany receivable 144,488 172,564 — (317,052 ) — Total current assets 279,635 226,800 309,245 (322,174 ) 493,506 Long-term investments 42,537 — — — 42,537 Property and equipment, net — 7,064 52,989 — 60,053 Trade names, net — 10,064 110,614 — 120,678 Patent and patent licenses, net — 672 15,246 — 15,918 Customer relationships, net — 867 189,513 — 190,380 Goodwill — 56,296 784,650 — 840,946 Other purchased intangibles, net — 4,223 13,047 — 17,270 Investment in subsidiaries 1,118,892 1,136,930 2 (2,255,824 ) — Deferred income taxes, non-current — 24,899 2,125 (20,530 ) 6,494 Other assets — 345 5,024 — 5,369 Total assets $ 1,441,064 $ 1,468,160 $ 1,482,455 $ (2,598,528 ) $ 1,793,151 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable and accrued expenses $ 3,927 $ 30,087 $ 72,504 $ (6 ) $ 106,512 Income taxes payable — 9,262 — (5,115 ) 4,147 Deferred revenue, current — 19,582 54,976 — 74,558 Capital lease, current — — 29 — 29 Intercompany payable 135,078 — 181,974 (317,052 ) — Total current liabilities 139,005 58,931 309,483 (322,173 ) 185,246 Long-term debt 350,609 246,204 — — 596,813 Capital lease, non-current — — 79 — 79 Liability for uncertain tax positions — 40,356 — — 40,356 Deferred income taxes, non-current 31,569 — 31,314 (20,531 ) 42,352 Deferred revenue, non-current — 3,120 1,668 — 4,788 Other long-term liabilities 1,486 657 2,981 — 5,124 Total liabilities 522,669 349,268 345,525 (342,704 ) 874,758 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 481 — — — 481 Additional paid-in capital - common 299,349 242,319 526,323 (768,642 ) 299,349 Retained earnings 616,226 876,575 651,416 (1,487,182 ) 657,035 Accumulated other comprehensive income (loss) 2,339 (2 ) (40,809 ) — (38,472 ) Total stockholders' equity 918,395 1,118,892 1,136,930 (2,255,824 ) 918,393 Total liabilities and stockholders' equity $ 1,441,064 $ 1,468,160 $ 1,482,455 $ (2,598,528 ) $ 1,793,151 j2 GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited, in thousands except share and per share data) December 31, 2015 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, current — 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, non-current — 14,978 (14,978 ) — — Other assets 8,219 1,167 4,370 (9,149 ) 4,607 Total assets $ 1,397,707 $ 1,397,022 $ 1,440,973 $ (2,451,983 ) $ 1,783,719 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 Capital lease, current — — 214 — 214 Deferred income taxes, current 511 — 363 (511 ) 363 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 — (9,149 ) 592,037 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 (304,901 ) 893,511 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 $ (2,451,983 ) $ 1,783,719 j2 GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF INCOME (Unaudited, in thousands except share and per share data) Three Months Ended June 30, 2016 j2 Global, Inc. j2 Cloud Services, Inc. Non-guarantor Subsidiaries Consolidating Adjustments j2 Global Consolidated Revenues: Total revenues $ — $ 66,254 $ 166,079 $ (20,533 ) $ 211,800 Cost of revenues — 16,992 39,087 (20,488 ) 35,591 Gross profit — 49,262 126,992 (45 ) 176,209 Operating expenses: Sales and marketing — 10,260 38,402 (45 ) 48,617 Research, development and engineering — 2,930 6,283 — 9,213 General and administrative 5,078 4,431 49,925 — 59,434 Total operating expenses 5,078 17,621 94,610 (45 ) 117,264 Income (loss) from operations (5,078 ) 31,641 32,382 — 58,945 Equity earnings in subsidiaries 38,019 20,786 — (58,805 ) — Interest expense, net 1,591 5,193 3,517 — 10,301 Other expense (income), net (300 ) (93 ) 180 — (213 ) Income before income taxes 31,650 47,327 28,685 (58,805 ) 48,857 Income tax expense (benefit) (2,120 ) 9,308 7,899 — 15,087 Net income $ 33,770 $ 38,019 $ 20,786 $ (58,805 ) $ 33,770 j2 GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF INCOME (Unaudited, in thousands except share and per share data) Three Months Ended June 30, 2015 j2 Global, Inc. j2 Cloud Services, Inc. Non-guarantor Subsidiaries Consolidating Adjustments j2 Global Consolidated Revenues: Total revenues $ — $ 56,547 $ 129,217 $ (9,726 ) $ 176,038 Cost of revenues 1 15,414 23,748 (9,669 ) 29,494 Gross profit (1 ) 41,133 105,469 (57 ) 146,544 Operating expenses: Sales and marketing — 10,512 29,966 (57 ) 40,421 Research, development and engineering 2 3,763 5,204 — 8,969 General and administrative 3,538 9,011 34,539 — 47,088 Total operating expenses 3,540 23,286 69,709 (57 ) 96,478 Income (loss) from operations (3,541 ) 17,847 35,760 — 50,066 Equity earnings in subsidiaries 45,530 26,742 — (72,272 ) — Interest expense, net 2,772 5,791 2,318 — 10,881 Other expense (income), net (5 ) (28 ) 121 — 88 Income before income taxes 39,222 38,826 33,321 (72,272 ) 39,097 Income tax expense (benefit) 306 (6,704 ) 6,579 — 181 Net income $ 38,916 $ 45,530 $ 26,742 $ (72,272 ) $ 38,916 j2 GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF INCOME (Unaudited, in thousands except share and per share data) Six Months Ended June 30, 2016 j2 Global, Inc. j2 Cloud Services, Inc. Non-guarantor Subsidiaries Consolidating Adjustments j2 Global Consolidated Revenues: Total revenues $ — $ 122,639 $ 321,645 $ (31,982 ) $ 412,302 Cost of revenues — 34,481 67,288 (31,891 ) 69,878 Gross profit — 88,158 254,357 (91 ) 342,424 Operating expenses: Sales and marketing — 20,888 75,932 (91 ) 96,729 Research, development and engineering — 6,219 11,982 — 18,201 General and administrative 9,750 9,902 95,559 — 115,211 Total operating expenses 9,750 37,009 183,473 (91 ) 230,141 Income (loss) from operations (9,750 ) 51,149 70,884 — 112,283 Equity earnings in subsidiaries 72,342 48,482 — (120,824 ) — Interest expense, net 3,462 10,425 6,647 — 20,534 Other expense (income), net (209 ) (1,013 ) 1,135 — (87 ) Income before income taxes 59,339 90,219 63,102 (120,824 ) 91,836 Income tax expense (benefit) (4,374 ) 17,877 14,620 — 28,123 Net income $ 63,713 $ 72,342 $ 48,482 $ (120,824 ) $ 63,713 j2 GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF INCOME (Unaudited, in thousands except share and per share data) Six Months Ended June 30, 2015 j2 Global, Inc. j2 Cloud Services, Inc. Non-guarantor Subsidiaries Consolidating Adjustments j2 Global Consolidated Revenues: Total revenues $ — $ 111,166 $ 245,652 $ (19,527 ) $ 337,291 Cost of revenues 1 30,942 46,143 (19,405 ) 57,681 Gross profit (1 ) 80,224 199,509 (122 ) 279,610 Operating expenses: Sales and marketing — 20,292 57,841 (122 ) 78,011 Research, development and engineering 2 7,618 9,795 — 17,415 General and administrative 7,717 15,861 70,010 — 93,588 Total operating expenses 7,719 43,771 137,646 (122 ) 189,014 Income (loss) from operations (7,720 ) 36,453 61,863 — 90,596 Equity earnings in subsidiaries 71,782 50,283 — (122,065 ) — Interest expense, net 5,360 10,899 4,935 — 21,194 Other expense (income), net (17 ) 311 (990 ) — (696 ) Income before income taxes 58,719 75,526 57,918 (122,065 ) 70,098 Income tax expense (benefit) (2,075 ) 3,744 7,635 — 9,304 Net income $ 60,794 $ 71,782 $ 50,283 $ (122,065 ) $ 60,794 j2 GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited, in thousands except share and per share data) Three Months Ended June 30, 2016 j2 Global, Inc. j2 Cloud Services, Inc. Non-guarantor Subsidiaries Consolidating Adjustments j2 Global Consolidated Net income $ 33,770 $ 38,019 $ 20,786 $ (58,805 ) $ 33,770 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment, net of tax — — (12,653 ) — (12,653 ) Unrealized gain (loss) on available-for-sale investments, net of tax expense (benefit) 2,251 — — — 2,251 Other comprehensive income (loss), net of tax 2,251 — (12,653 ) — (10,402 ) Comprehensive income $ 36,021 $ 38,019 $ 8,133 $ (58,805 ) $ 23,368 j2 GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited, in thousands except share and per share data) Three Months Ended June 30, 2015 j2 Global, Inc. j2 Cloud Services, Inc. Non-guarantor Subsidiaries Consolidating Adjustments j2 Global Consolidated Net income $ 38,916 $ 45,530 $ 26,742 $ (72,272 ) $ 38,916 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment, net of tax — — 7,112 — 7,112 Unrealized gain on available-for-sale investments, net of tax benefit (267 ) (3,667 ) — — (3,934 ) Other comprehensive income (loss), net of tax (267 ) (3,667 ) 7,112 — 3,178 Comprehensive income $ 38,649 $ 41,863 $ 33,854 $ (72,272 ) $ 42,094 j2 GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited, in thousands except share and per share data) Six Months Ended June 30, 2016 j2 Global, Inc. j2 Cloud Services, Inc. Non-guarantor Subsidiaries Consolidating Adjustments j2 Global Consolidated Net income $ 63,713 $ 72,342 $ 48,482 $ (120,824 ) $ 63,713 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment, net of tax — — (9,238 ) — (9,238 ) Unrealized gain (loss) on available-for-sale investments, net of tax expense (benefit) (110 ) — — — (110 ) Other comprehensive loss, net of tax (110 ) — (9,238 ) — (9,348 ) Comprehensive income $ 63,603 $ 72,342 $ 39,244 $ (120,824 ) $ 54,365 j2 GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited, in thousands except share and per share data) Six Months Ended June 30, 2015 j2 Global, Inc. j2 Cloud Services, Inc. Non-guarantor Subsidiaries Consolidating Adjustments j2 Global Consolidated Net income $ 60,794 $ 71,782 $ 50,283 $ (122,065 ) $ 60,794 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment, net of tax — — (8,125 ) — (8,125 ) Unrealized gain (loss) on available-for-sale investments, net of tax expense (benefit) 44 (3,598 ) — — (3,554 ) Other comprehensive income (loss), net of tax 44 (3,598 ) (8,125 ) — (11,679 ) Comprehensive income $ 60,838 $ 68,184 $ 42,158 $ (122,065 ) $ 49,115 j2 GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW (Unaudited, in thousands except share and per share data) Six Months Ended June 30, 2016 j2 Global, Inc. j2 Cloud Services, Inc. Non-guarantor Subsidiaries Consolidating Adjustments j2 Global Consolidated Net cash (used in) provided by operating activities $ (695 ) $ 25,755 $ 106,992 $ — $ 132,052 Cash flows from investing activities: Maturity of available-for-sale investments 112,631 — — — 112,631 Purchase of available-for-sale investments (47,208 ) — 1 — (47,207 ) Purchases of property and equipment — (542 ) (8,644 ) — (9,186 ) Acquisition of businesses, net of cash received — — (76,725 ) — (76,725 ) Purchases of intangible assets — (104 ) (1,711 ) — (1,815 ) Net cash (used in) provided by investing activities 65,423 (646 ) (87,079 ) — (22,302 ) Cash flows from financing activities: Repurchases of common and restricted stock (3,356 ) — — — (3,356 ) Issuance of common stock under employee stock purchase plan 2,034 — (1,911 ) — 123 Exercise of stock options — — 1,911 — 1,911 Dividends paid (32,202 ) — — — (32,202 ) Excess tax benefits from share-based compensation 1,097 — — — 1,097 Deferred payments for acquisitions — (873 ) (15,677 ) — (16,550 ) Other — — (254 ) — (254 ) Intercompany (13,673 ) 5,683 7,990 — — Net cash (used in) provided by financing activities (46,100 ) 4,810 (7,941 ) — (49,231 ) Effect of exchange rate changes on cash and cash equivalents 53 (239 ) (2,109 ) — (2,295 ) Net change in cash and cash equivalents 18,681 29,680 9,863 — 58,224 Cash and cash equivalents at beginning of period 55,516 9,975 190,039 — 255,530 Cash and cash equivalents at end of period $ 74,197 $ 39,655 $ 199,902 $ — $ 313,754 j2 GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW (Unaudited, in thousands except share and per share data) Six Months Ended June 30, 2015 j2 Global, Inc. j2 Cloud Services, Inc. Non-guarantor Subsidiaries Consolidating Adjustments j2 Global Consolidated Net cash provided by operating activities $ (26,174 ) $ 35,542 $ 88,242 $ — $ 97,610 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 38,047 18,048 — — 56,095 Purchase of available-for-sale investments (37,734 ) (19,731 ) — — (57,465 ) Purchases of property and equipment — (496 ) (6,459 ) — (6,955 ) Acquisition of businesses, net of cash received — (497 ) (73,811 ) — (74,308 ) Purchases of intangible assets — 291 (1,157 ) — (866 ) Net cash (used in) provided by investing activities 313 (2,382 ) (81,427 ) — (83,496 ) Cash flows from financing activities: Repurchases of common stock and restricted stock (2,302 ) — — — (2,302 ) Issuance of common stock under employee stock purchase plan 126 — — — 126 Exercise of stock options 3,009 — — — 3,009 Dividends paid (28,610 ) — — — (28,610 ) Excess tax benefits from share-based compensation 2,104 — — — 2,104 Deferred payments for acquisitions — (656 ) (3,227 ) — (3,883 ) Other — — (180 ) — (180 ) Intercompany 45,533 (60,376 ) 14,843 — — Net cash (used in) provided by financing activities 19,860 (61,032 ) 11,436 — (29,736 ) Effect of exchange rate changes on cash and cash equivalents (2 ) 2,462 (4,571 ) — (2,111 ) Net change in cash and cash equivalents (6,003 ) (25,410 ) 13,680 — (17,733 ) Cash and cash equivalents at beginning of period 226,790 36,810 170,063 — 433,663 Cash and cash equivalents at end of period $ 220,787 $ 11,400 $ 183,743 $ — $ 415,930 |