Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 03, 2016 | |
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-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 48,056,679 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and cash equivalents | $ 285,563 | $ 255,530 |
Short-term investments | 39,908 | 79,655 |
Accounts receivable, net of allowances of $6,643 and $4,261, respectively | 114,581 | 114,680 |
Prepaid expenses and other current assets | 26,567 | 25,722 |
Deferred income taxes | 0 | 7,218 |
Total current assets | 466,619 | 482,805 |
Long-term investments | 53,421 | 78,563 |
Property and equipment, net | 61,437 | 57,442 |
Trade names, net | 118,891 | 118,965 |
Patent and patent licenses, net | 14,441 | 18,841 |
Customer relationships, net | 175,434 | 197,319 |
Goodwill | 853,791 | 807,661 |
Other purchased intangibles, net | 16,888 | 17,516 |
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 4,454 | 0 |
Other assets | 3,769 | 4,607 |
Total assets | 1,769,145 | 1,783,719 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable and accrued expenses | 101,830 | 114,384 |
Income taxes payable | 2,207 | 5,589 |
Deferred revenue, current | 76,259 | 76,104 |
Capital Lease Obligations, Current | 191 | 214 |
Deferred income taxes, current | 0 | 363 |
Total current liabilities | 180,487 | 196,654 |
Long-term Debt | 599,260 | 592,037 |
Capital Lease Obligations, Noncurrent | 12 | 148 |
Liability for uncertain tax positions | 44,418 | 35,917 |
Deferred income taxes | 39,975 | 43,989 |
Deferred revenue, non-current | 2,354 | 6,538 |
Other long-term liabilities | 4,445 | 18,228 |
Total liabilities | 870,951 | 893,511 |
Commitments and contingencies | 0 | 0 |
Common stock, $0.01 par value. Authorized 95,000,000; total issued and outstanding 47,245,704 and 47,950,677 shares, respectively | 472 | 479 |
Additional paid-in capital | 304,385 | 292,064 |
Retained Earnings (Accumulated Deficit) | 634,386 | 626,789 |
Accumulated other comprehensive loss | (41,049) | (29,124) |
Stockholders' Equity Attributable to Parent | 898,194 | 890,208 |
Total liabilities and stockholders' equity | 1,769,145 | 1,783,719 |
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 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Allowance for doubtful accounts | $ 6,643 | $ 4,261 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 95,000,000 | 95,000,000 |
Common stock, shares issued | 47,245,704 | 47,950,677 |
Common stock, shares outstanding | 47,245,704 | 47,950,677 |
Preferred stock, par value | $ 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 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Allocated Share-based Compensation Expense | $ 3,699 | $ 2,770 | $ 9,947 | $ 8,943 |
Revenues: | ||||
Total revenues | 210,116 | 178,701 | 622,418 | 515,992 |
Cost of revenues (1) | 36,992 | 30,669 | 106,870 | 88,350 |
Gross Profit | 173,124 | 148,032 | 515,548 | 427,642 |
Operating expenses: | ||||
Sales and marketing (1) | 46,425 | 38,808 | 143,155 | 116,819 |
Research, development and engineering (1) | 8,965 | 8,289 | 27,165 | 25,704 |
General and administrative (1) | 55,612 | 45,202 | 170,823 | 138,790 |
Operating Expenses | 111,002 | 92,299 | 341,143 | 281,313 |
Income from operations | 62,122 | 55,733 | 174,405 | 146,329 |
Interest expense (income), net | 10,436 | 10,259 | 30,971 | 31,453 |
Other expense (income), net | (9,718) | 1,086 | (9,805) | 390 |
Income (loss) before income taxes | 61,404 | 44,388 | 153,239 | 114,486 |
Income Tax Expense (Benefit) | 15,835 | 7,013 | 43,958 | 16,317 |
Net Income (Loss) Attributable to Parent | $ 45,569 | $ 37,375 | $ 109,281 | $ 98,169 |
Net income per common share: | ||||
Basic | $ 0.95 | $ 0.77 | $ 2.25 | $ 2.03 |
Diluted | $ 0.94 | $ 0.77 | $ 2.24 | $ 2.02 |
Weighted average shares outstanding: | ||||
Basic | 47,310,011 | 47,696,224 | 47,775,798 | 47,553,075 |
Diluted | 47,494,744 | 47,953,871 | 47,997,674 | 47,777,622 |
Cash dividends paid per common share | $ 0.3450 | $ 0.3075 | $ 1.0050 | $ 0.9000 |
Cost of Sales [Member] | ||||
Allocated Share-based Compensation Expense | $ 116 | $ 99 | $ 314 | $ 273 |
Selling and Marketing Expense [Member] | ||||
Allocated Share-based Compensation Expense | 423 | 624 | 1,388 | 1,811 |
Research and Development Expense [Member] | ||||
Allocated Share-based Compensation Expense | 235 | 227 | 663 | 635 |
General and Administrative Expense [Member] | ||||
Allocated Share-based Compensation Expense | $ 2,925 | $ 1,820 | $ 7,582 | $ 6,224 |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net Income (Loss) Attributable to Parent | $ 45,569 | $ 37,375 | $ 109,281 | $ 98,169 |
Foreign currency translation adjustment | (328) | (4,652) | (9,566) | (12,777) |
Change in fair value on available-for-sale investments, net of tax expense (benefit) of $1,378 and $1,440 for the three and nine months of 2016, respectively, ($625) and ($3,242) for the three and nine months of 2015. | (2,249) | (1,057) | (2,359) | (4,611) |
Other Comprehensive Income (Loss), Net of Tax | (2,577) | (5,709) | (11,925) | (17,388) |
Comprehensive Income | $ 42,992 | $ 31,666 | $ 97,356 | $ 80,781 |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Comprehensive Income Condensed Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Foreign currency translation adjustment | $ 0 | $ 0 | $ 0 | $ 0 |
Unrealized gain on available-for-sale investments | $ 1,378 | $ (625) | $ 1,440 | $ (3,242) |
Condensed Consolidated Stateme7
Condensed Consolidated Statement Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | ||
Net Income (Loss) Attributable to Parent | $ 109,281 | $ 98,169 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 88,569 | 63,635 |
Accretion and amortization of discount and premium of investments | 896 | 871 |
Amortization of financing costs and discounts | 7,224 | 6,774 |
Share-based compensation | 9,947 | 8,943 |
Excess tax benefits from share-based compensation | (2,071) | (4,541) |
Provision for doubtful accounts | 9,072 | 5,015 |
Deferred income taxes | (2,328) | 219 |
Gain on sale of available-for-sale investment | (7,709) | (37) |
Decrease (increase) in: | ||
Accounts receivable | (7,631) | (4,296) |
Prepaid expenses and other current assets | (663) | 2,815 |
Other assets | 937 | (77) |
(Decrease) increase in: | ||
Accounts payable and accrued expenses | (4,601) | (5,783) |
Income taxes payable | (927) | (13,565) |
Deferred revenue | (4,134) | (3,727) |
Liability for uncertain tax positions | 8,502 | (9,916) |
Other | (11,824) | 4,074 |
Net cash provided by operating activities | 192,540 | 148,573 |
Cash flows from investing activities: | ||
Maturity of certificates of deposit | 0 | 65 |
Purchase of certificates of deposit | 0 | 62 |
Sales of available-for-sale investments | 145,005 | 87,976 |
Purchase of available-for-sale investments | (75,834) | (78,281) |
Purchases of property and equipment | (17,447) | (11,927) |
Acquisition of businesses, net of cash received | (91,401) | (259,838) |
Purchases of intangible assets | (2,014) | (1,258) |
Net Cash Provided by (Used in) Investing Activities | (41,691) | (263,325) |
Cash flows from financing activities: | ||
Repurchases of common stock and restricted stock | (56,083) | (3,159) |
Issuance of common stock under employee stock purchase plan | 191 | 196 |
Exercise of stock options | 3,272 | 4,618 |
Dividends paid | (48,768) | (43,526) |
Excess tax benefits from share-based compensation | 2,071 | 4,541 |
Deferred payments for acquisitions | (18,939) | (5,411) |
Proceeds from (Payments for) Other Financing Activities | (391) | (250) |
Net Cash Provided by (Used in) Financing Activities | (118,647) | (42,991) |
Effect of exchange rate changes on cash and cash equivalents | (2,169) | (3,552) |
Cash and Cash Equivalents, Period Increase (Decrease) | 30,033 | (161,295) |
Cash and cash equivalents | 285,563 | 272,368 |
Cash and cash equivalents at end of period | $ 285,563 | $ 272,368 |
Basis Of Presentation
Basis Of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies [Text Block] | Basis of Presentation 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. In addition, the Business Cloud Services Division includes j2 Cloud Connect, which primarily focuses on our number-based voice and fax services. The Digital Media Division specializes in the technology, gaming, entertainment and lifestyle markets, reaching in-market buyers and influencers in both the consumer and business-to-business space. The accompanying interim condensed consolidated financial statements include the accounts of j2 Global and its direct and indirect wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The accompanying interim condensed consolidated financial statements are unaudited and have been prepared in accordance with instructions for Form 10-Q and Article 10 of Regulation S-X issued by the Securities and Exchange Commission ("SEC"). Accordingly, they do not include all of the information and note disclosures required by GAAP for complete financial statements although the Company believes that the disclosures made are adequate to make that information not misleading. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been reflected in these interim financial statements. It is suggested that these financial statements be read in conjunction with the audited financial statements and the related notes thereto for the year ended December 31, 2015 included in our Annual Report (Form 10-K) filed with the SEC on February 29, 2016. Accordingly, significant accounting policies and other disclosures normally provided have been omitted since such items are disclosed therein. The results of operations for this interim period are not necessarily indicative of the operating results for the full year or for any future period. Reorganization On August 10, 2016, the Board of Directors of j2 Cloud Services, Inc., a wholly owned subsidiary of the Company and a Delaware corporation, approved the conversion of j2 Cloud Services, Inc. into a Delaware limited liability company which will continue as j2 Cloud Services, LLC. On August 12, 2016, the Board of Directors distributed all of the equity interests in Ziff Davis, LLC, a Delaware limited liability company, and all of the equity interests in Advanced Messaging Technologies, Inc., a Delaware corporation, held by j2 Cloud Services, LLC, a Delaware limited liability company, to j2 Global, the parent company of j2 Cloud Services, LLC. 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 allowances 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 j2 Global reserves for receivables it may not be able to collect. These reserves for the Company's Business Cloud Services segment 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 based on historical experience. On an ongoing basis, Management evaluates the adequacy of these reserves. Debt Issuance Costs and Debt Discount j2 Global capitalizes costs incurred with borrowing and issuance of debt securities and records debt issuance costs and discounts as a reduction to the debt amount. 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 effective interest method. Contingent Consideration j2 Global measures contingent earn-out liabilities in connection with acquisitions 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 a 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 the 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-assesses the estimated fair value of contingent consideration on a quarterly basis, and the updated fair value could be materially different from the initial estimates or prior quarterly amounts. Changes in the estimated fair value of our contingent earn-out liabilities are reported in operating income, except for the time component of the present value calculation which is reported in interest expense. Segment Reporting Accounting guidance establishes standards for the way that public business enterprises report information about operating segments in their annual consolidated financial statements and requires that those enterprises report selected information about operating segments in interim financial reports. Accounting guidance also establishes standards for related disclosures about products and services, geographic areas and major customers. The Company operates as two segments: (1) Business Cloud Services and (2) Digital Media. Reclassifications Certain prior year reported amounts have been reclassified to conform to the 2016 presentation. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("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 January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The amendments in this ASU modify 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. This ASU 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 this ASU on our financial statements. In March 2016, the FASB issued ASU 2016-06, Derivatives and Hedging (Topic 815). This ASU is related to the embedded derivative analysis for debt instruments with contingent call or put options. This ASU clarifies that an exercise contingency does not need to be evaluated to determine whether it relates only to interest rates or credit risk. Instead, the contingent put or call option should be evaluated for possible bifurcation as a derivative in accordance with the four-step decision sequence detailed in FASB ASC 815-15, without regard to the nature of the exercise contingency. This ASU is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The Company is currently evaluating the impact of this ASU on our financial statements. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606). This ASU is related to reporting revenue gross versus net, or principal versus agent considerations. This ASU is meant to clarify the guidance in ASU 2014-09, Revenue from Contracts with Customers, as it pertains to principal versus agent considerations. Specifically, the guidance addresses how entities should identify goods and services being provided to a customer, the unit of account for a principal versus agent assessment, how to evaluate whether a good or service is controlled before being transferred to a customer, and how to assess whether an entity controls services performed by another party. This ASU has the same effective date as the new revenue standard, which is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017. The Company is evaluating the effect and methodology of adopting this new accounting guidance upon the Company's results of operations, cash flows and financial position. In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718). This ASU is related to simplifications of employee share-based payment accounting. This pronouncement eliminates the APIC pool concept and requires that excess tax benefits and tax deficiencies be recorded in the income statement when awards are settled. The pronouncement also addresses simplifications related to statement of cash flows classification, accounting for forfeitures, and minimum statutory tax withholding requirements. This ASU is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The Company is currently evaluating the impact of this ASU on our financial statements. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. This ASU is meant to clarify the guidance in FASB ASU 2014-09, Revenue from Contracts with Customers. Specifically, the guidance addresses an entity’s identification of its performance obligations in a contract, as well as an entity’s evaluation of the nature of its promise to grant a license of intellectual property and whether or not that revenue is recognized over time or at a point in time. This ASU has the same effective date as the new revenue standard, which is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017. The Company is evaluating the effect and methodology of adopting this new accounting guidance upon the Company's results of operations, cash flows and financial position. In May 2016, the FASB issued ASU 2016-11, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting. This ASU rescinds SEC paragraphs pursuant to two SEC Staff Announcements at the March 3, 2016 Emerging Issues Task Force (EITF) meeting. Specifically, registrants should not rely on the following SEC Staff Observer comments upon adoption of Topic 606: 1) Revenue and Expense Recognition for Freight Services in Process, which is codified in paragraph 605-20-S99-2; 2) Accounting for Shipping and Handling Fees and Costs, which is codified in paragraph 605-45-S99-1; 3) Accounting for Consideration Given by a Vendor to a Customer (including Reseller of the Vendor's Products), which is codified in paragraph 605-50-S99-1; and 4) Accounting for Gas-Balancing Arrangements (i.e., use of the "entitlements method"), which is codified in paragraph 932-10-S99-5. This ASU becomes effective upon adoption of ASU 2014-09, which is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017. The Company is currently evaluating the impact of this ASU on our financial statements. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. This ASU does not change the core principle of the guidance in Topic 606. Instead, the amendments provide clarifying guidance in a few narrow areas and add some practical expedients to the guidance. This ASU has the same effective date as the new revenue standard, which is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017. The Company is currently evaluating the impact of the pending adoption of this new standard on our financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments in this ASU replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This ASU is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019. The Company is currently evaluating the impact of this ASU on our financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The new guidance is intended to reduce diversity in practice in how transactions are classified in the statement of cash flows. This ASU is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017. The adoption of this standard is not expected to have a material impact on our financial statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other than Inventory. The amendments in this ASU reduce the complexity in the accounting standards by allowing the recognition of current and deferred income taxes for an intra-entity asset transfer, other than inventory, when the transfer occurs. Historically, the income tax consequence was not recognized until the asset was sold to an outside party. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the impact of this ASU on our financial statements. |
Business Acquisition
Business Acquisition | 9 Months Ended |
Sep. 30, 2016 | |
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 enter into other jurisdictions. The Company completed the following acquisitions during the first nine months of fiscal 2016, paying the purchase price in cash in each transaction: (a) an asset purchase of VaultLogix, acquired on February 17, 2016, a Massachusetts-based provider of cloud data backup and storage for business clients; (b) a share purchase of the entire issued capital of CallStream Group Limited, acquired on March 3, 2016, a provider of cloud-based call management solutions to markets in the United Kingdom; (c) an asset purchase of Publicaster, acquired on April 1, 2016, a Maryland-based provider of email marketing services; (d) an asset purchase of SMTP, acquired on June 27, 2016, a Florida-based provider of cloud email services offering solutions ranging from sophisticated transactional email solutions to cost-effective Simple Mail Transfer Protocol ("SMTP") relay services; (e) a share purchase of the entire issued capital of Integrated Global Concepts, Inc. ("IGC"), acquired on July 12, 2016, a Chicago-based provider of fax and voicemail services; (f) a share purchase of the entire issued capital of Front-safe A/S, acquired on July 15, 2016, a Denmark-based provider of cloud backup solutions; and (g) other immaterial acquisitions of online data backup, email marketing and digital media businesses. The condensed consolidated statement of income, since the date of each acquisition, and balance sheet, as of September 30, 2016 , reflect the results of operations of all 2016 acquisitions. For the nine months ended September 30, 2016 , these acquisitions contributed $20.1 million to the Company's revenues. Net income contributed by these acquisitions was not separately identifiable due to j2 Global's integration activities and is impracticable to provide. Total consideration for these transactions was $95.6 million , net of cash acquired and assumed liabilities and is subject to certain post-closing adjustments which may increase or decrease the final consideration paid. The following table summarizes the allocation of the purchase consideration for these acquisitions (in thousands): Assets and Liabilities (1) Valuation Accounts receivable $ 2,644 Property and equipment 2,033 Other assets 575 Software 2,546 Trade names 5,344 Customer relationships 32,223 Other intangibles 1,290 Goodwill 56,479 Other accrued liabilities (3,384 ) Deferred revenue (1,189 ) Deferred tax liability (3,003 ) Total $ 95,558 (1) In connection with the purchase of IGC, the majority of the value was associated with the 935,231 shares of j2 Global common stock. The value associated with these shares was recorded as a separate transaction from the fax business and has been excluded from the schedule above. IGC The Company acquired the entire issued capital of IGC on July 12, 2016 for a cash purchase price of approximately $6.3 million (excluding amounts allocated to the Company's purchase of its common stock described below), net of cash acquired and assumed liabilities and is subject to certain post-closing adjustments which may increase or decrease the final consideration paid. At the date of acquisition, IGC held 935,231 of the Company's common stock which the Company determined should be treated as a separate transaction from the acquired fax and voicemail businesses. In order to determine the amount of purchase consideration allocable to the fax and voicemail business and the Company’s common stock, the Company used a relative fair value approach and concluded that the amounts of consideration allocable to the fax and voicemail business and the Company's common stock were $6.3 million and $51.5 million , respectively. See Note 10 - Stockholders' Equity for further discussion regarding the Company's common stock acquired in connection with the IGC business combination. During the nine months ended September 30, 2016, the purchase price accounting has been finalized for the following acquisitions: (i) LiveVault, (ii) Salesify, (iii) CallStream Group Limited, (iv) Publicaster and (v) other immaterial fax, online data backup and digital media businesses. The initial accounting for all other 2016 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. During the nine months ended September 30, 2016 , the Company recorded adjustments to prior period acquisitions due to the finalization of purchase accounting in the Business Cloud Services segment which resulted in a net increase in goodwill in the amount of $0.8 million . In addition, the Company recorded adjustments to the initial working capital related to prior period acquisitions and updated the purchase accounting of Offers.com in the Digital Media segment, which resulted in a net decrease in goodwill in the amount of $(4.9) million with a corresponding increase in trade names, net and other purchased intangibles, net (See Note 6 - Goodwill and Intangible Assets). Such adjustments had an immaterial impact to the amortization expense within the Condensed Consolidated Statement of Income for the nine months ended September 30, 2016 . 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 nine months ended September 30, 2016 is $56.5 million , of which $35.4 million is expected to be deductible for income tax purposes. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2016 | |
Investments [Abstract] | |
Investments | Investments 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, average cost method or other method, as appropriate. 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): September 30, December 31, 2015 Due within 1 year $ 39,845 $ 56,940 Due within more than 1 year but less than 5 years 53,100 78,248 Due within more than 5 years but less than 10 years — — Due 10 years or after 321 315 Total $ 93,266 $ 135,503 The following table summarizes the Company’s investments (in thousands): September 30, December 31, 2015 Available-for-sale $ 93,266 $ 158,158 Certificates of deposit 63 60 Total $ 93,329 $ 158,218 The following table summarizes the gross unrealized gains and losses and fair values for the Company's investments classified as available-for-sale investments as of September 30, 2016 and December 31, 2015 aggregated by major security type (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value September 30, 2016 Corporate debt securities $ 66,120 $ 186 $ (31 ) $ 66,275 Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 19,070 4 (14 ) 19,060 Debt securities issued by states of the United States and political subdivisions of the states 5,532 1 (2 ) 5,531 Variable Rate Demand Notes (1) 2,400 — — 2,400 Total $ 93,122 $ 191 $ (47 ) $ 93,266 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 (1) Variable Rate Demand Notes ("VRDNs") are long-term floating rate bonds with embedded put options that allow the bondholder to sell the security at par plus accrued interest. All of the put options are secured by a pledged liquidity source. Our VRDN portfolio is comprised of investments in states and municipalities, which are backed by financial institutions or other highly rated companies that serve as the pledged liquidity source. While they are classified as investments, the put option allows VRDNs to be liquidated generally on a seven business day settlement basis. At September 30, 2016 , corporate and governmental debt securities, which have fixed interest rates, and VRDNs, which have floating rates, were recorded as available-for-sale investments. At December 31, 2015, corporate and governmental debt securities, which have fixed interest rates, and equity securities, were recorded as available-for sale-investments. 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 September 30, 2016 . At September 30, 2016 , 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. The Company sold its strategic investment in Carbonite during fiscal year 2016 resulting in recognized gains before tax of $7.6 million ( $2.9 million of income tax), which is reflected in the Condensed Consolidated Statements of Income. 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. Regardless of the classification of the securities, 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 be sold prior to recovery, the full impairment is recognized immediately in earnings. For available-for-sale securities that management has no intent to sell and believes that it more-likely-than-not 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 September 30, 2016 and December 31, 2015 , aggregated by investment category and the length of time that individual securities have been in a continuous loss position (in thousands): As of September 30, 2016 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Corporate debt securities $ 25,007 $ (31 ) $ — $ — $ 25,007 $ (31 ) Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 14,161 (14 ) — — 14,161 (14 ) Debt securities issued by states of the United States and political subdivisions of the states 3,193 (2 ) — — 3,193 (2 ) Total $ 42,361 $ (47 ) $ — $ — $ 42,361 $ (47 ) 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 September 30, 2016 and December 31, 2015 , we did not recognize any other-than-temporary impairment losses. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2016 | |
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 the 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: l Level 1 – Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. l Level 2 – Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. l 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, VRDNs 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 7 - 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 7 - 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 at September 30, 2016 and December 31, 2015 was $747.1 million and $790.5 million , 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 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 the 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 of 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): September 30, 2016 Level 1 Level 2 Level 3 Fair Value Assets: Cash equivalents: Money market and other funds $ 80,405 $ — $ — $ 80,405 Time deposits — 73 — 73 Certificates of deposit — 63 — 63 Variable Rate Demand Notes — 2,400 — 2,400 Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies — 19,060 — 19,060 Debt securities issued by states of the U.S. and political subdivisions of the states — 5,531 — 5,531 Corporate debt securities — 66,275 — 66,275 Total assets measured at fair value $ 80,405 $ 93,402 $ — $ 173,807 Liabilities: Contingent consideration $ — $ — $ 13,661 $ 13,661 Contingent interest derivative — 1,450 — 1,450 Total liabilities measured at fair value $ — $ 1,450 $ 13,661 $ 15,111 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 U.S. 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 At the end of each reporting period, management reviews the inputs to 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 nine months ended September 30, 2016 , there were no transfers that have occurred between levels. The following table 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, 2016 $ 30,600 Total fair value adjustments reported in earnings 1,061 General and administrative Contingent consideration payments (18,000 ) Not applicable Balance as of September 30, 2016 $ 13,661 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 $12.3 million and $25.0 million at September 30, 2016 and December 31, 2015 , respectively. Due to the Company's achievement of certain earnings targets for the year ended December 31, 2015, $20.0 million ( $17.0 million of contingent consideration and $3.0 million of compensation) was paid during the first quarter 2016 in connection with this acquisition. 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 $1.3 million and $5.6 million at September 30, 2016 and December 31, 2015 , respectively. Due to the Company's achievement of certain earnings targets for the year ended December 31, 2015, $1.0 million of contingent consideration was paid during the second quarter 2016 in connection with this acquisition. The contingent consideration associated with Ookla is classified within current liabilities, while the contingent consideration associated with Salesify is classified within other long-term liabilities on the consolidated balance sheet at September 30, 2016 . During the nine months ended September 30, 2016 , the Company recorded an increase in the fair value of the contingent consideration of $1.1 million and reported such increase in general and administrative expenses. The following table 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, 2016 $ 1,450 Total fair value adjustments reported in earnings — Balance as of September 30, 2016 $ 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. |
Goodwill And Intangible Assets
Goodwill And Intangible Assets | 9 Months Ended |
Sep. 30, 2016 | |
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 acquisition 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 nine months ended September 30, 2016 are as follows (in thousands): Business Cloud Services Digital Media Consolidated Balance as of January 1, 2016 $ 502,718 $ 304,943 $ 807,661 Goodwill acquired (Note 3) 56,479 — 56,479 Purchase accounting adjustments (1) 816 (4,931 ) (4,115 ) Foreign exchange translation (6,073 ) (161 ) (6,234 ) Balance as of September 30, 2016 $ 553,940 $ 299,851 $ 853,791 (1) Purchase accounting adjustments relate to adjustments to goodwill in connection with prior year business acquisitions (See Note 3 - Business Acquisitions). Intangible Assets with Indefinite Lives: Intangible assets are summarized as of September 30, 2016 and December 31, 2015 as follows (in thousands): September 30, December 31, Trade name $ 27,379 $ 27,379 Other 5,432 5,432 Total $ 32,811 $ 32,811 Intangible Assets Subject to Amortization: As of September 30, 2016 , intangible assets subject to amortization relate primarily to the following (in thousands): Weighted-Average Amortization Period Historical Cost Accumulated Amortization Net Trade names 11.8 years $ 127,254 $ 35,742 $ 91,512 Patent and patent licenses 8.2 years 64,518 50,077 14,441 Customer relationships (1) 10.5 years 343,447 168,013 175,434 Other purchased intangibles 4.6 years 35,871 24,415 11,456 Total $ 571,090 $ 278,247 $ 292,843 (1) Historically, the Company has amortized its customer relationship assets in a pattern that best reflects the pace in which the asset's benefits are consumed. This pattern results in a substantial majority of the amortization expense being recognized in the first 4 to 5 years, despite the overall life of the asset. 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 (1) 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 (1) Historically, the Company has amortized its customer relationship assets in a pattern that best reflects the pace in which the asset's benefits are consumed. This pattern results in a substantial majority of the amortization expense being recognized in the first 4 to 5 years, despite the overall life of the asset. Amortization expense, included in general and administrative expense, approximated $23.7 million and $15.9 million for the three month periods ended September 30, 2016 and 2015 , respectively, and $69.6 million and $50.5 million for the nine month periods ended September 30, 2016 and 2015 , respectively. Amortization expense is estimated to approximate $93.0 million , $71.0 million , $50.7 million , $32.1 million and $22.7 million for fiscal years 2016 through 2020 , respectively, and $92.9 million thereafter through the duration of the amortization period. |
Long Term Debt
Long Term Debt | 9 Months Ended |
Sep. 30, 2016 | |
Long-term Debt, Unclassified [Abstract] | |
Debt Disclosure [Text Block] | Long-Term Debt 8.0% Senior Notes On July 26, 2012 , the Company's subsidiary 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, LLC (formerly j2 Cloud Services, Inc.) received proceeds of $245 million in cash, net of initial purchaser's discounts and commissions of $5 million . 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, LLC 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. 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. In connection with the issuance of the Convertible Notes (defined below), j2 Global, Inc. unconditionally guaranteed, on an unsecured basis, the obligations of j2 Cloud Services, LLC under the Senior Notes. The indenture governing the Senior Notes contains certain restrictive and other covenants applicable to j2 Cloud Services, LLC 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, LLC 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 September 30, 2016 , j2 Cloud Services, LLC 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 September 30, 2016 and December 31, 2015 , the estimated fair value of the Senior Notes was approximately $278.2 million and $262.2 million , respectively, and was based on the quoted market prices of debt instruments with similar terms, credit rating and maturities of the Senior Notes which are Level 2 inputs (See Note 5 - Fair Value Measurements). 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 the Company's common stock. As of September 30, 2016 , the conversion rate is 14.4910 shares of j2 Global common stock for each $1,000 principal amount of Convertible Notes, which represents a conversion price of approximately $69.01 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, LLC, 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. 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 September 30, 2016 , the remaining period over which the unamortized debt discount will be amortized is 4.7 years . The Convertible Notes are carried at face value less any unamortized debt discount and debt issuance costs. 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 September 30, 2016 and December 31, 2015 , the estimated fair value of the Convertible Notes was approximately $468.9 million and $528.3 million , respectively. Long-term debt as of September 30, 2016 and December 31, 2015 consists of the following (in thousands): September 30, 2016 December 31, 2015 8% Senior Notes $ 247,203 $ 246,750 3.25% Convertible Notes 360,174 354,436 Less: Deferred issuance costs (1) (8,117 ) (9,149 ) Total long-term debt 599,260 592,037 Less: current portion — — Total long-term debt, less current portion $ 599,260 $ 592,037 (1) The Company adopted ASU 2015-03 Interest - Imputation Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs during the first quarter of 2016 on a retrospective basis. At December 31, 2015, $9.1 million of deferred issuance costs were classified as a reduction of Long-term debt on our consolidated balance sheets. |
Commitments And Contingencies
Commitments And Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
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 outcomes of such matters are subject to inherent uncertainties, carrying the potential for unfavorable rulings that could include monetary damages and injunctive relief. 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 putative 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 a j2 Global affiliate's systems to send unsolicited facsimile transmissions. 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. On August 23, 2013, a second plaintiff, Sabon, Inc. ("Sabon"), was added. On March 7, 2016, the j2 Global affiliates moved for summary judgment on all remaining claims. The summary judgment motions are pending. The Northern District of Illinois has not yet addressed class certification. 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 ("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 various common law claims. On November 12, 2015, the Northern District of Georgia dismissed all claims against the j2 Global affiliates. On January 28, 2016, all remaining claims were dismissed on summary judgment. Huster filed a notice of appeal to the U.S. Court of Appeals for the Federal Circuit ("Federal Circuit") on February 26, 2016 (No. 16-1639). The appeal is pending. 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 Federal Circuit on June 27, 2014 (No. 14-1611). The appeal is pending. On June 23, 2014, Andre Free-Vychine ("Free-Vychine") filed a putative class action against two j2 Global affiliates in the Superior Court for the State of California, County of Los Angeles ("Los Angeles Superior Court") (No. BC549422). The complaint alleged two California statutory violations relating to late fees levied in certain eVoice® accounts. Free-Vychine sought, 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 putative class action against the same j2 Global affiliates in Los Angeles Superior Court (No. BC555721). The complaint alleged 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 affiliates' customers, including those with eVoice® and Onebox® accounts. LEO and IV Pit Stop sought, 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 related and consolidated both cases for discovery purposes. On March 13, 2015, a third amended complaint was filed in the case brought by LEO, which no longer included IV Pit Stop as a plaintiff but added Christopher Dancel ("Dancel") as a plaintiff. On June 26, 2015, the case filed by Free-Vychine was dismissed pursuant to a settlement agreement. On October 7, 2015, the parties in the case brought by LEO and Dancel reached a tentative class-based settlement. On September 12, 2016, the Los Angeles Superior Court certified the class for settlement purposes only and preliminary approved the settlement. The court will consider final approval of the settlement in early 2017. 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 loss contingencies relating to these legal proceedings because unfavorable outcomes are not considered probable by management. The Company has not accrued for any material loss contingencies relating to these legal proceedings because unfavorable outcomes are not considered probable by management. 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 the Company's services) are generally not subject to various telecommunication taxes. Moreover, the Company generally does not believe that its business and its users (by using the Company's 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 the Company's 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, on November 2, 2016, the j2 Global affiliate reached an agreement with the City of Los Angeles to obtain a refund of a portion of the assessments 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 | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company's tax provision for interim periods is determined using an estimate of the Company's annual effective tax rate. Each quarter the Company updates its estimated annual effective tax rate and, if the estimate changes, makes a cumulative adjustment. j2 Global's annual effective tax rate is normally lower than the 35% U.S. federal statutory rate and applicable apportioned state tax rates primarily due to anticipated earnings of the Company's subsidiaries outside of the U.S. in jurisdictions where the Company's effective tax rate is lower than in the U.S. The Company's effective tax rate was 25.8% and 15.8% for the three months ended September 30, 2016 and 2015 , respectively and 28.7% and 14.3% for the nine months ended September 30, 2016 and 2015, respectively. j2 Global does not provide for U.S. income taxes on the undistributed earnings of the Company’s foreign operations because the Company intends to permanently reinvest such earnings in foreign jurisdictions and any 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 $57.2 million and $33.7 million for the nine months ended September 30, 2016 and 2015 , respectively, and income from foreign operations of $96.0 million and $80.8 million for the nine months ended September 30, 2016 and 2015 , respectively. As of September 30, 2016 and December 31, 2015 , the Company had $44.4 million and $35.9 million , respectively, in liabilities for uncertain income tax positions. Accrued interest and penalties related to unrecognized tax benefits are recognized in income tax expense on the Company's consolidated statement of income. Cash paid for income taxes net of refunds received was $40.4 million and $40.5 million for the nine months ended September 30, 2016 and 2015 , respectively. Certain taxes are prepaid during the year and included within prepaid expenses and other current assets on the consolidated balance sheet. The Company's prepaid taxes were $11.6 million and $11.6 million at September 30, 2016 and December 31, 2015 , respectively. Income Tax Audits : In November 2015, the U.S. Internal Revenue Service ("IRS") began its income tax audit of the Company's 2012 and 2013 tax years. In March 2016, the IRS expanded its income tax audit to include the Company's 2014 tax year. j 2 Global is under income tax audit by the California Franchise Tax Board (the "FTB") for its tax years 2012 and 2013. The FTB, however, has agreed to suspend its audit for 2012 and 2013 pending the outcome of the IRS audit for such tax years. The Company is under income tax audit by the New York State Department of Taxation and Finance for tax years 2011 through 2013. j2 Global was under income tax audit by the New York City Department of Finance ("NYC") for its tax years 2009 through 2011. In February 2016, j2 Global settled its NYC audit for approximately $26,000 . 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 | 9 Months Ended |
Sep. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity 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 our common stock through February 20, 2013 (the "2012 Program") which was subsequently extended through February 20, 2017. During the nine month period ended September 30, 2016 , we repurchased zero shares under this program. Cumulatively at September 30, 2016 , 2.1 million shares were repurchased at an aggregate cost of $58.6 million (including an immaterial amount of commission fees). In July 2016, the Company acquired and subsequently retired 935,231 shares of j2 Global common stock in connection with the acquisition of Integrated Global Concepts, Inc. (See Note 3 - Business Acquisitions). As a result of the purchase of j2 Global common stock, the Company's Board of Directors approved a reduction in the number of shares available for purchase under the 2012 Program by the same amount leaving 1,938,689 shares of j2 Global common stock available for purchase under this program. 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 three month period ended September 30, 2016 , the Company purchased 14,049 shares from plan participants for this purpose. Dividends The following is a summary of each dividend declared during fiscal year 2016 and 2015 : Declaration Date Dividend per Common Share Record Date Payment Date February 10, 2015 $ 0.2925 February 23, 2015 March 9, 2015 May 6, 2015 $ 0.3000 May 19, 2015 June 3, 2015 August 3, 2015 $ 0.3075 August 17, 2015 September 1, 2015 November 3, 2015 $ 0.3150 November 17, 2015 December 3, 2015 February 10, 2016 $ 0.3250 February 23, 2016 March 10, 2016 May 5, 2016 $ 0.3350 May 18, 2016 June 2, 2016 August 2, 2016 $ 0.3450 August 17, 2016 September 1, 2016 Future dividends are subject to Board approval. |
Stock Options And Employee Stoc
Stock Options And Employee Stock Purchase Plan | 9 Months Ended |
Sep. 30, 2016 | |
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 "1997 Plan"), 2007 Stock Plan (the "2007 Plan"), 2015 Stock Option Plan (the "2015 Plan") and 2001 Employee Stock Purchase Plan (the "Purchase Plan"). Each plan is described below. The 1997 Plan terminated in 2007. A total of 12,000,000 shares of j2 Global 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. As of September 30, 2016 , 28,998 shares underlying options and zero shares of restricted stock were outstanding under the 1997 Plan, all of which continue to be governed by the 1997 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. 4,500,000 shares of j2 Global common stock are authorized to be used for 2007 Plan purposes. 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. As of September 30, 2016 , 333,655 shares underlying options and 28,590 shares of restricted stock were outstanding under the 2007 Plan. The 2015 Plan provides for the granting 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 j2 Global 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. As of September 30, 2016 , 62,000 shares underlying options and 26,950 shares of restricted stock units were outstanding under the 2015 Plan. All stock option grants are approved by "outside directors" within the meaning of Internal Revenue Code Section 162(m). Stock Options The following table represents stock option activity for the nine months ended September 30, 2016 : Number of Shares Weighted- Weighted-Average Aggregate Outstanding at January 1, 2016 566,428 $ 29.74 Granted — — Exercised (132,073 ) 25.91 Canceled (9,700 ) 26.92 Outstanding at September 30, 2016 424,655 $ 31.00 4.1 $ 15,169,195 Exercisable at September 30, 2016 362,555 $ 26.12 3.4 $ 14,688,225 Vested and expected to vest at September 30, 2016 412,053 $ 29.96 3.9 $ 15,137,035 The total intrinsic values of options exercised during the nine months ended September 30, 2016 and 2015 were $5.1 million and $9.6 million , respectively. The Company recognized $0.1 million and $0.1 million of compensation expense related to stock options for the three months ended September 30, 2016 and 2015, and $0.3 million and $0.6 million for the nine months ended September 30, 2016 and 2015, respectively. As of September 30, 2016 and December 31, 2015 , unrecognized stock compensation related to non-vested stock options granted under each of the share-based compensation plans approximated $0.7 million and $1.1 million , respectively. Unrecognized stock compensation expense related to non-vested stock options granted under these plans is expected to be recognized ratably over a weighted-average period of 3.0 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 12.58% and 14.01% as of September 30, 2016 and 2015 , respectively. Restricted Stock and Restricted Stock Units j2 Global has awarded restricted stock and restricted stock units to its Board of Directors and senior staff pursuant to certain share-based compensation plans. 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 (excluding market-based awards discussed below). Restricted Stock - Awards with Market Conditions In May 2016, certain key employees were granted market-based restricted stock awards. The market-based awards have vesting conditions that are based on specified stock price targets of the Company's common stock. Market conditions were factored into the grant date fair value using a Monte Carlo valuation model, which utilized multiple input variables to determine the probability of the Company achieving the specified stock price targets with a 20 day lookback (trading days). Stock-based compensation expense related to an award with a market condition will be recognized over the requisite service period using the graded-vesting method regardless of whether the market condition is satisfied, provided that the requisite service period has been completed. During the nine months ended September 30, 2016 and 2015, the Company awarded 106,780 and zero market-based restricted stock awards, respectively. The per share weighted average grant-date fair values of the market-based restricted stock awards granted during the nine months ended September 30, 2016 were $44.67 . The weighted-average fair values of market-based restricted stock awards granted have been estimated utilizing the following assumptions: September 30, 2016 Underlying stock price at valuation date $ 63.73 Expected volatility 29.8 % Risk-free interest rate 1.51 % Restricted stock award activity for the nine months ended September 30, 2016 is set forth below: Shares Weighted-Average Grant-Date Fair Value Nonvested at January 1, 2016 704,804 $ 39.08 Granted 291,914 40.82 Vested (159,035 ) 44.53 Canceled (34,700 ) 66.31 Nonvested at September 30, 2016 802,983 $ 37.46 Restricted stock unit award activity for the nine months ended September 30, 2016 is set forth below: Number of Weighted-Average Aggregate Outstanding at January 1, 2016 56,245 Granted 21,250 Vested (10,755 ) Canceled (11,200 ) Outstanding at September 30, 2016 55,540 1.9 $ 3,699,519 Vested and expected to vest at September 30, 2016 43,475 1.7 $ 2,895,863 The Company recognized $3.6 million and $2.6 million of compensation expense related to restricted stock and restricted stock units for the three months ended September 30, 2016 and 2015, respectively, and $9.6 million and $8.3 million for the nine months ended September 30, 2016 and 2015, respectively. As of September 30, 2016 and December 31, 2015 , the Company had unrecognized share-based compensation cost of approximately $41.7 million and $34.5 million , respectively, associated with these awards. This cost is expected to be recognized over a weighted-average period of 3.3 years for awards and 3.3 years for units. Employee Stock Purchase Plan The Purchase Plan provides for the issuance of a maximum of two million shares of the Company's 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 common stock at certain plan-defined dates. The price of the j2 Global common stock purchased under the Purchase Plan for the offering periods is equal to 95% of the fair market value of the j2 Global common stock at the end of the offering period. For the nine months ended September 30, 2016 and 2015 , 2,996 and 3,155 shares were purchased under the plan, respectively. Cash received upon the issuance of j2 Global common stock under the Purchase Plan was $191,000 and $196,000 for the nine months ended September 30, 2016 and 2015 , respectively. As of September 30, 2016 , 1,627,448 shares were available under the Purchase Plan for future issuance. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2016 | |
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): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Numerator for basic and diluted net income per common share: Net income attributable to j2 Global, Inc. common shareholders $ 45,569 $ 37,375 $ 109,281 $ 98,169 Net income available to participating securities (a) (718 ) (611 ) (1,610 ) (1,620 ) Net income available to j2 Global, Inc. common shareholders $ 44,851 $ 36,764 $ 107,671 $ 96,549 Denominator: Weighted-average outstanding shares of common stock 47,310,011 47,696,224 47,775,798 47,553,075 Dilutive effect of: Equity incentive plans 184,733 257,647 208,974 224,547 Convertible debt (b) — — 12,902 — Common stock and common stock equivalents 47,494,744 47,953,871 47,997,674 47,777,622 Net income per share: Basic $ 0.95 $ 0.77 $ 2.25 $ 2.03 Diluted $ 0.94 $ 0.77 $ 2.24 $ 2.02 (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 7 - Long Term Debt). For the three months ended September 30, 2016 and 2015 , there were 62,000 and 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 stock. For the nine months ended September 30, 2016 and 2015 , there were 62,000 and 62,000 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 stock. |
Segment and Geographic Informat
Segment and Geographic Information | 9 Months Ended |
Sep. 30, 2016 | |
Segments, Geographical Areas [Abstract] | |
Segment and 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. Information on reportable segments and reconciliation to consolidated income from operations is presented below (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Revenues by segment: Business Cloud Services $ 143,342 $ 126,436 $ 423,941 $ 369,685 Digital Media 66,819 52,312 198,613 146,476 Elimination of inter-segment revenues (45 ) (47 ) (136 ) (169 ) Total revenues 210,116 178,701 622,418 515,992 Direct costs by segment (1) : Business Cloud Services 90,485 69,617 268,333 213,518 Digital Media 52,887 44,970 165,398 125,045 Direct costs by segment (1) : 143,372 114,587 433,731 338,563 Business Cloud Services operating income (2) 52,857 56,819 155,608 156,167 Digital Media operating income 13,932 7,342 33,215 21,431 Segment operating income 66,789 64,161 188,823 177,598 Global operating costs (2)(3) 4,667 8,428 14,418 31,269 Income from operations $ 62,122 $ 55,733 $ 174,405 $ 146,329 (1) Direct costs for each segment include cost of revenues and other operating expenses that are directly attributable to the segment, such as employee compensation expense, local sales and marketing expenses, engineering and network operations expense, depreciation and amortization and other administrative expenses. (2) During 2016, the Company determined certain personnel and third-party costs were directly attributable to a particular segment. As a result, these costs were no longer classified as Global operating costs in 2016. If such costs in the prior period were classified consistent with the 2016 presentation, the operating income for the Business Cloud Services segment would have been $53.1 million and $139.8 million for the three and nine months ended September 30, 2015, respectively. Global operating costs would have been $4.7 million and $14.9 million for the three and nine month ended September 30, 2015, respectively. (3) 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. September 30, 2016 December 31, 2015 Assets: Business Cloud Services $ 1,034,687 $ 1,017,676 Digital Media 582,352 427,647 Total assets from reportable segments 1,617,039 1,445,323 Corporate 152,106 338,396 Total assets $ 1,769,145 $ 1,783,719 Nine Months Ended September 30, 2016 2015 Capital expenditures: Business Cloud Services $ 6,251 $ 6,078 Digital Media 11,196 5,528 Total from reportable segments 17,447 11,606 Corporate — 321 Total capital expenditures $ 17,447 $ 11,927 Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Depreciation and amortization: Business Cloud Services $ 20,218 $ 12,961 $ 58,971 $ 41,733 Digital Media 10,118 7,280 29,598 21,303 Total from reportable segments 30,336 20,241 88,569 63,036 Corporate — 214 — 599 Total depreciation and amortization $ 30,336 $ 20,455 $ 88,569 $ 63,635 The Company's Business Cloud Services segment consists of several services which have similar economic characteristics, including the nature of the services and their production processes, the type of customers, as well as the methods used to distribute these services. j2 Global groups its Business Cloud services into three main categories based on the similarities of these services: Cloud Connect, Cloud Services and Intellectual Property. Cloud Connect consists of our Fax and Voice services. Cloud Services consist of Backup, Email Security, Email Marketing and Web Hosting. Three Months Ended September 30, 2016 Nine Months Ended September 30, 2016 Revenue Depreciation and Amortization Operating Income (4) Revenue Depreciation and Amortization Operating Income (4) Cloud Connect (Fax/Voice) $ 92,599 $ 5,950 $ 43,503 $ 275,700 $ 19,096 $ 126,598 Cloud Services 49,624 12,826 10,350 144,853 35,327 31,974 Intellectual Property 1,119 1,442 (996 ) 3,388 4,548 (2,964 ) Total $ 143,342 $ 20,218 $ 52,857 $ 423,941 $ 58,971 $ 155,608 Three Months Ended September 30, 2015 Nine Months Ended September 30, 2015 Revenue Depreciation and Amortization Operating Income (4) Revenue Depreciation and Amortization Operating Income (4) Cloud Connect (Fax/Voice) $ 89,511 $ 5,309 $ 48,346 $ 264,987 $ 16,287 $ 136,909 Cloud Services 35,819 6,030 9,459 100,050 19,810 21,808 Intellectual Property 1,106 1,622 (986 ) 4,648 5,636 (2,550 ) Total $ 126,436 $ 12,961 $ 56,819 $ 369,685 $ 41,733 $ 156,167 (4) During 2016, the Company determined certain personnel and third-party costs were directly attributable to a particular segment. As a result, these costs were no longer classified as Global operating costs in 2016. If such costs in the prior period were classified consistent with the 2016 presentation, the operating income for Cloud Connect and Other Cloud Services would have been $46.2 million and $7.9 million, respectively, for the three months ended September 30, 2015 and $125.3 million and $17.1 million, respectively, for the nine months ended September 30, 2015. 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). Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Revenues: United States $ 142,691 $ 119,177 $ 424,804 $ 349,226 Canada 19,939 18,836 57,205 55,922 Ireland 18,068 11,363 54,517 32,118 All other countries 29,418 29,325 85,892 78,726 $ 210,116 $ 178,701 $ 622,418 $ 515,992 September 30, December 31, Long-lived assets: United States $ 257,217 $ 271,796 All other countries 97,070 105,477 Total $ 354,287 $ 377,273 |
Unrestricted Subsidiaries (Note
Unrestricted Subsidiaries (Notes) | 9 Months Ended |
Sep. 30, 2016 | |
Unrestricted Subsidiaires [Abstract] | |
Unrestricted Subsidiaries [Text Block] | Unrestricted Subsidiaries (unaudited) Until the reorganization described in Note 1 of these Notes to the Condensed Consolidated Financial Statements, 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 condensed 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 for any period in which j2 Cloud Services had Unrestricted Subsidiaries. Accordingly, the Company is presenting the following tables. The financial position of the Unrestricted Subsidiaries as of September 30, 2016 and December 31, 2015 is as follows (in thousands): September 30, 2016 December 31, 2015 ASSETS Cash and cash equivalents $ 46,053 $ 16,482 Accounts receivable 67,857 79,283 Prepaid expenses and other current assets 5,648 5,437 Deferred income taxes, current — 3,382 Total current assets 119,558 104,584 Property and equipment, net 28,999 25,353 Trade names, net 71,322 73,034 Patent and patent licenses, net 13,779 18,071 Customer relationships, net 54,765 68,317 Goodwill 299,851 304,943 Other purchased intangibles, net 7,224 7,810 Deferred income taxes, non-current 885 2,373 Other assets 3,039 — Total assets $ 599,422 $ 604,485 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable and accrued expenses $ 78,942 $ 88,580 Deferred revenue, current 8,128 6,554 Total current liabilities 87,070 95,134 Long-term debt 162,662 155,000 Deferred income taxes, non-current 6,928 11,270 Other long-term liabilities 1,867 13,546 Total liabilities 258,527 274,950 Additional paid-in capital 320,692 319,728 Retained earnings 21,968 11,552 Accumulated other comprehensive loss (1,765 ) (1,745 ) Total stockholders' equity 340,895 329,535 Total liabilities and stockholders' equity $ 599,422 $ 604,485 The results of operations of the Unrestricted Subsidiaries for the three and nine months ended September 30, 2016 and 2015 is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Revenues $ 66,819 $ 52,334 $ 198,661 $ 147,858 Cost of revenues 5,618 5,922 16,489 15,293 Gross profit 61,201 46,412 182,172 132,565 Operating expenses: Sales and marketing 27,394 19,053 81,099 55,896 Research, development and engineering 2,791 1,916 8,443 5,984 General and administrative 19,200 20,172 65,724 55,070 Total operating expenses 49,385 41,141 155,266 116,950 Income from operations 11,816 5,271 26,906 15,615 Interest expense, net 4,364 2,698 12,977 8,016 Other expense (income), net (2,468 ) 430 (1,982 ) 529 Income (loss) before income taxes 9,920 2,143 15,911 7,070 Income tax expense 3,223 2,224 5,495 5,421 Net income (loss) $ 6,697 $ (81 ) $ 10,416 $ 1,649 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Notes) | 9 Months Ended |
Sep. 30, 2016 | |
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 three months ended September 30, 2016 (in thousands): Unrealized Gains (Losses) on Investments Foreign Currency Translation Total Beginning balance $ 2,339 $ (40,811 ) $ (38,472 ) Other comprehensive income (loss) before reclassifications 902 (328 ) 574 Amounts reclassified from accumulated other comprehensive income (3,151 ) — (3,151 ) Net current period other comprehensive loss (2,249 ) (328 ) (2,577 ) Ending balance $ 90 $ (41,139 ) $ (41,049 ) The following table summarizes the changes in accumulated balances of other comprehensive income, net of tax, for the nine months ended September 30, 2016 (in thousands): Unrealized Gains (Losses) on Investments Foreign Currency Translation Total Beginning balance $ 2,449 $ (31,573 ) $ (29,124 ) Other comprehensive income (loss) before reclassifications 749 (9,566 ) (8,817 ) Amounts reclassified from accumulated other comprehensive income (3,108 ) — (3,108 ) Net current period other comprehensive loss (2,359 ) (9,566 ) (11,925 ) Ending balance $ 90 $ (41,139 ) $ (41,049 ) The following table provides details about reclassifications out of accumulated other comprehensive income for the three and nine months ended September 30, 2016 (in thousands): Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Statement of Income Three Months Ended September 30, 2016 Nine Months Ended September 30, 2016 Unrealized gain on available-for-sale investments $ (5,082 ) $ (5,013 ) Other expense (income), net (5,082 ) (5,013 ) Income before income taxes 1,931 1,905 Income tax expense (3,151 ) (3,108 ) Net income Total reclassifications for the period $ (3,151 ) $ (3,108 ) Net income |
Condensed Consolidating Financi
Condensed Consolidating Financials (Notes) | 9 Months Ended |
Sep. 30, 2016 | |
Condensed Financial Information [Abstract] | |
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, LLC. j2 Cloud Services, LLC 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, LLC, those contractual provisions did not, as of June 30, 2014, meaningfully restrict j2 Cloud Services, LLC'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, LLC, (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) September 30, 2016 BALANCE SHEET j2 Global, Inc. j2 Cloud Services, LLC Non-guarantor Subsidiaries Consolidating Adjustments j2 Global Consolidated ASSETS Cash and cash equivalents $ 46,203 $ 8,433 $ 230,927 $ — $ 285,563 Short-term investments 39,845 — 63 — 39,908 Accounts receivable, net — 13,872 100,714 (5 ) 114,581 Prepaid expenses and other current assets 32,347 1,846 17,015 (24,641 ) 26,567 Intercompany receivable 130,000 201,099 — (331,099 ) — Total current assets 248,395 225,250 348,719 (355,745 ) 466,619 Long-term investments 53,421 — — — 53,421 Property and equipment, net — 6,763 54,674 — 61,437 Trade names, net — 10,130 108,761 — 118,891 Patent and patent licenses, net — 637 13,804 — 14,441 Customer relationships, net — 2,543 172,891 — 175,434 Goodwill — 61,419 792,372 — 853,791 Other purchased intangibles, net — 4,438 12,450 — 16,888 Investment in subsidiaries 1,062,379 723,601 (1,072 ) (1,784,908 ) — Deferred income taxes, non-current — 22,475 2,284 (20,305 ) 4,454 Other assets — 457 3,312 — 3,769 Total assets $ 1,364,195 $ 1,057,713 $ 1,508,195 $ (2,160,958 ) $ 1,769,145 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable and accrued expenses $ 6,461 $ 24,111 $ 90,973 $ (19,715 ) $ 101,830 Income taxes payable — 7,138 — (4,931 ) 2,207 Deferred revenue, current — 19,977 56,282 — 76,259 Capital lease, current — — 191 — 191 Intercompany payable 77,121 — 253,978 (331,099 ) — Total current liabilities 83,582 51,226 401,424 (355,745 ) 180,487 Long-term debt 352,858 246,402 — — 599,260 Capital lease, non-current — — 12 — 12 Liability for uncertain tax positions — 44,418 — — 44,418 Deferred income taxes, non-current 29,111 — 31,169 (20,305 ) 39,975 Deferred revenue, non-current — 2,354 — — 2,354 Other long-term liabilities 1,522 581 2,342 — 4,445 Total liabilities 467,073 344,981 434,947 (376,050 ) 870,951 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 472 — — — 472 Additional paid-in capital 460,276 89,066 425,550 (670,507 ) 304,385 Retained earnings 436,285 623,518 688,984 (1,114,401 ) 634,386 Accumulated other comprehensive income (loss) 89 148 (41,286 ) — (41,049 ) Total stockholders' equity 897,122 712,732 1,073,248 (1,784,908 ) 898,194 Total liabilities and stockholders' equity $ 1,364,195 $ 1,057,713 $ 1,508,195 $ (2,160,958 ) $ 1,769,145 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, LLC 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 September 30, 2016 j2 Global, Inc. j2 Cloud Services, LLC Non-guarantor Subsidiaries Consolidating Adjustments j2 Global Consolidated Revenues: Total revenues $ — $ 57,751 $ 165,317 $ (12,952 ) $ 210,116 Cost of revenues — 19,421 30,479 (12,908 ) 36,992 Gross profit — 38,330 134,838 (44 ) 173,124 Operating expenses: Sales and marketing — 10,166 36,303 (44 ) 46,425 Research, development and engineering — 3,097 5,868 — 8,965 General and administrative 4,667 5,793 45,152 — 55,612 Total operating expenses 4,667 19,056 87,323 (44 ) 111,002 Income (loss) from operations (4,667 ) 19,274 47,515 — 62,122 Equity earnings in subsidiaries 45,662 28,224 — (73,886 ) — Interest expense, net 1,799 5,199 3,438 — 10,436 Other income, net (7,500 ) (56 ) (2,162 ) — (9,718 ) Income before income taxes 46,696 42,355 46,239 (73,886 ) 61,404 Income tax expense 1,127 7,110 7,598 — 15,835 Net income $ 45,569 $ 35,245 $ 38,641 $ (73,886 ) $ 45,569 j2 GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF INCOME (Unaudited, in thousands except share and per share data) Three Months Ended September 30, 2015 j2 Global, Inc. j2 Cloud Services, LLC Non-guarantor Subsidiaries Consolidating Adjustments j2 Global Consolidated Revenues: Total revenues $ — $ 56,753 $ 148,648 $ (26,700 ) $ 178,701 Cost of revenues (1 ) 29,375 27,948 (26,653 ) 30,669 Gross profit 1 27,378 120,700 (47 ) 148,032 Operating expenses: Sales and marketing — 9,684 29,171 (47 ) 38,808 Research, development and engineering (2 ) 3,646 4,645 — 8,289 General and administrative 3,714 5,067 36,421 — 45,202 Total operating expenses 3,712 18,397 70,237 (47 ) 92,299 Income (loss) from operations (3,711 ) 8,981 50,463 — 55,733 Equity earnings in subsidiaries 41,260 41,357 — (82,617 ) — Interest expense, net 3,293 5,179 1,787 — 10,259 Other expense (income), net (2 ) 37 1,051 — 1,086 Income before income taxes 34,258 45,122 47,625 (82,617 ) 44,388 Income tax expense (benefit) (3,117 ) 3,862 6,268 — 7,013 Net income $ 37,375 $ 41,260 $ 41,357 $ (82,617 ) $ 37,375 j2 GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF INCOME (Unaudited, in thousands except share and per share data) Nine Months Ended September 30, 2016 j2 Global, Inc. j2 Cloud Services, LLC Non-guarantor Subsidiaries Consolidating Adjustments j2 Global Consolidated Revenues: Total revenues $ — $ 180,390 $ 486,962 $ (44,934 ) $ 622,418 Cost of revenues — 53,902 97,767 (44,799 ) 106,870 Gross profit — 126,488 389,195 (135 ) 515,548 Operating expenses: Sales and marketing — 31,055 112,235 (135 ) 143,155 Research, development and engineering — 9,316 17,849 — 27,165 General and administrative 14,417 15,694 140,712 — 170,823 Total operating expenses 14,417 56,065 270,796 (135 ) 341,143 Income (loss) from operations (14,417 ) 70,423 118,399 — 174,405 Equity earnings in subsidiaries 118,004 76,706 — (194,710 ) — Interest expense, net 5,262 15,624 10,085 — 30,971 Other income, net (7,709 ) (1,070 ) (1,026 ) — (9,805 ) Income before income taxes 106,034 132,575 109,340 (194,710 ) 153,239 Income tax expense (benefit) (3,247 ) 24,987 22,218 — 43,958 Net income $ 109,281 $ 107,588 $ 87,122 $ (194,710 ) $ 109,281 j2 GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF INCOME (Unaudited, in thousands except share and per share data) Nine Months Ended September 30, 2015 j2 Global, Inc. j2 Cloud Services, LLC Non-guarantor Subsidiaries Consolidating Adjustments j2 Global Consolidated Revenues: Total revenues $ — $ 167,919 $ 394,300 $ (46,227 ) $ 515,992 Cost of revenues — 60,317 74,091 (46,058 ) 88,350 Gross profit — 107,602 320,209 (169 ) 427,642 Operating expenses: Sales and marketing — 29,976 87,012 (169 ) 116,819 Research, development and engineering — 11,264 14,440 — 25,704 General and administrative 11,434 20,928 106,428 — 138,790 Total operating expenses 11,434 62,168 207,880 (169 ) 281,313 Income (loss) from operations (11,434 ) 45,434 112,329 — 146,329 Equity earnings in subsidiaries 113,042 91,640 — (204,682 ) — Interest expense, net 8,651 16,079 6,723 — 31,453 Other expense (income), net (20 ) 347 63 — 390 Income before income taxes 92,977 120,648 105,543 (204,682 ) 114,486 Income tax expense (benefit) (5,192 ) 7,606 13,903 — 16,317 Net income $ 98,169 $ 113,042 $ 91,640 $ (204,682 ) $ 98,169 j2 GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited, in thousands except share and per share data) Three Months Ended September 30, 2016 j2 Global, Inc. j2 Cloud Services, LLC Non-guarantor Subsidiaries Consolidating Adjustments j2 Global Consolidated Net income $ 45,569 $ 35,245 $ 38,641 $ (73,886 ) $ 45,569 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment — — (328 ) — (328 ) Change in fair value on available-for-sale investments, net of tax expense (benefit) (2,249 ) — — — (2,249 ) Other comprehensive income (loss), net of tax (2,249 ) — (328 ) — (2,577 ) Comprehensive income $ 43,320 $ 35,245 $ 38,313 $ (73,886 ) $ 42,992 j2 GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited, in thousands except share and per share data) Three Months Ended September 30, 2015 j2 Global, Inc. j2 Cloud Services, LLC Non-guarantor Subsidiaries Consolidating Adjustments j2 Global Consolidated Net income $ 37,375 $ 41,260 $ 41,357 $ (82,617 ) $ 37,375 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment, net of tax — — (4,652 ) — (4,652 ) Change in fair value on available-for-sale investments, net of tax expense (benefit) (1,057 ) — — — (1,057 ) Other comprehensive income (loss), net of tax (1,057 ) — (4,652 ) — (5,709 ) Comprehensive income $ 36,318 $ 41,260 $ 36,705 $ (82,617 ) $ 31,666 j2 GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited, in thousands except share and per share data) Nine Months Ended September 30, 2016 j2 Global, Inc. j2 Cloud Services, LLC Non-guarantor Subsidiaries Consolidating Adjustments j2 Global Consolidated Net income $ 109,281 $ 107,588 $ 87,122 $ (194,710 ) $ 109,281 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment, net of tax — — (9,566 ) — (9,566 ) Change in fair value on available-for-sale investments, net of tax expense (benefit) (2,359 ) — — — (2,359 ) Other comprehensive income (loss), net of tax (2,359 ) — (9,566 ) — (11,925 ) Comprehensive income $ 106,922 $ 107,588 $ 77,556 $ (194,710 ) $ 97,356 j2 GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited, in thousands except share and per share data) Nine Months Ended September 30, 2015 j2 Global, Inc. j2 Cloud Services, LLC Non-guarantor Subsidiaries Consolidating Adjustments j2 Global Consolidated Net income $ 98,169 $ 113,042 $ 91,640 $ (204,682 ) $ 98,169 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment, net of tax — — (12,777 ) — (12,777 ) Change in fair value on available-for-sale investments, net of tax expense (benefit) (4,611 ) — — — (4,611 ) Other comprehensive income (loss), net of tax (4,611 ) — (12,777 ) — (17,388 ) Comprehensive income $ 93,558 $ 113,042 $ 78,863 $ (204,682 ) $ 80,781 j2 GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW (Unaudited, in thousands except share and per share data) Nine Months Ended September 30, 2016 j2 Global, Inc. j2 Cloud Services, LLC Non-guarantor Subsidiaries Consolidating Adjustments j2 Global Consolidated Net cash (used in) provided by operating activities $ (4,416 ) $ 35,756 $ 161,200 $ — $ 192,540 Cash flows from investing activities: Maturity of available-for-sale investments 145,005 — — — 145,005 Purchase of available-for-sale investments (75,834 ) — — — (75,834 ) Purchases of property and equipment — (2,458 ) (14,989 ) — (17,447 ) Acquisition of businesses, net of cash received — (6,292 ) (85,109 ) — (91,401 ) Purchases of intangible assets — (106 ) (1,908 ) — (2,014 ) Net cash (used in) provided by investing activities 69,171 (8,856 ) (102,006 ) — (41,691 ) Cash flows from financing activities: Repurchases of common and restricted stock (56,083 ) — — — (56,083 ) Issuance of common stock under employee stock purchase plan 191 — — — 191 Exercise of stock options 3,272 — — — 3,272 Dividends paid (48,768 ) — — — (48,768 ) Excess tax benefits from share-based compensation 2,071 — — — 2,071 Deferred payments for acquisitions — (1,378 ) (17,561 ) — (18,939 ) Other — — (391 ) — (391 ) Intercompany 25,463 (26,973 ) 1,510 — — Net cash used in financing activities (73,854 ) (28,351 ) (16,442 ) — (118,647 ) Effect of exchange rate changes on cash and cash equivalents (214 ) (91 ) (1,864 ) — (2,169 ) Net change in cash and cash equivalents (9,313 ) (1,542 ) 40,888 — 30,033 Cash and cash equivalents at beginning of period 55,516 9,975 190,039 — 255,530 Cash and cash equivalents at end of period $ 46,203 $ 8,433 $ 230,927 $ — $ 285,563 j2 GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW (Unaudited, in thousands except share and per share data) Nine Months Ended September 30, 2015 j2 Global, Inc. j2 Cloud Services, LLC Non-guarantor Subsidiaries Consolidating Adjustments j2 Global Consolidated Net cash (used in) provided by operating activities $ (21,341 ) $ 34,297 $ 135,617 $ — $ 148,573 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 87,976 — — — 87,976 Purchase of available-for-sale investments (78,281 ) — — — (78,281 ) Purchases of property and equipment — (1,355 ) (10,572 ) — (11,927 ) Acquisition of businesses, net of cash received — 47 (259,885 ) — (259,838 ) Purchases of intangible assets — 166 (1,424 ) — (1,258 ) Intercompany (53,317 ) 53,317 — — — Net cash (used in) provided by investing activities (43,619 ) 52,175 (271,881 ) — (263,325 ) Cash flows from financing activities: Repurchases of common stock and restricted stock (3,159 ) — — — (3,159 ) Issuance of common stock under employee stock purchase plan 196 — — — 196 Exercise of stock options 4,618 — — — 4,618 Dividends paid (43,526 ) — — — (43,526 ) Excess tax benefits from share-based compensation 4,541 — — — 4,541 Deferred payments for acquisitions — — (5,411 ) — (5,411 ) Other — — (250 ) — (250 ) Intercompany (13,713 ) (103,533 ) 117,246 — — Net cash (used in) provided by financing activities (51,043 ) (103,533 ) 111,585 — (42,991 ) Effect of exchange rate changes on cash and cash equivalents (1,233 ) (7,895 ) 5,576 — (3,552 ) Net change in cash and cash equivalents (117,236 ) (24,956 ) (19,103 ) — (161,295 ) Cash and cash equivalents at beginning of period 226,790 36,810 170,063 — 433,663 Cash and cash equivalents at end of period $ 109,554 $ 11,854 $ 150,960 $ — $ 272,368 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On October 18, 2016, in a cash transaction, the Company acquired certain assets of Fonebox Australia Pty Ltd., an Australian-based provider of voice, call routing and virtual receptionist business. On November 1, 2016 , the Company's Board of Directors approved a quarterly cash dividend of $0.3550 per share of j2 Global common stock payable on December 5, 2016 to all stockholders of record as of the close of business on November 18, 2016 . On October 21, 2016, the Company entered into an Agreement and Plan of Merger (the "Merger Agreement"), by and among Everyday Health, Inc. ("EVDY"), Ziff Davis, LLC, a subsidiary of j2 Global ("Ziff Davis"), Project Echo Acquisition Corp, a wholly owned subsidiary of Ziff Davis ("Purchaser"), and, for the limited purposes therein, j2 Global. Pursuant to the Merger Agreement, upon the terms and subject to the conditions thereof, the Company and two of its affiliates commenced a tender offer on November 2, 2016 to acquire all of the outstanding shares of common stock of EVDY, $0.01 par value per share, at a purchase price of approximately $465.0 million (net of cash acquired and assumed liabilities) or $10.50 per share in cash, without interest, subject to any required withholding of taxes. |
Basis Of Presentation (Policy)
Basis Of Presentation (Policy) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Use Of Estimates | 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 allowances 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 | 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 segment 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 based on historical experience. On an ongoing basis, Management evaluates the adequacy of these reserves. |
Debt | Debt Issuance Costs and Debt Discount j2 Global capitalizes costs incurred with borrowing and issuance of debt securities and records debt issuance costs and discounts as a reduction to the debt amount. 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 effective interest method. |
Business Combinations | Contingent Consideration j2 Global measures contingent earn-out liabilities in connection with acquisitions 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 a 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 the 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-assesses the estimated fair value of contingent consideration on a quarterly basis, and the updated fair value could be materially different from the initial estimates or prior quarterly amounts. Changes in the estimated fair value of our contingent earn-out liabilities are reported in operating income, except for the time component of the present value calculation which is reported in interest expense. |
Segment Reporting | Segment Reporting Accounting guidance establishes standards for the way that public business enterprises report information about operating segments in their annual consolidated financial statements and requires that those enterprises report selected information about operating segments in interim financial reports. Accounting guidance also establishes standards for related disclosures about products and services, geographic areas and major customers. The Company operates as two segments: (1) Business Cloud Services and (2) Digital Media. |
Comparability of Prior Year Financial Data | Reclassifications Certain prior year reported amounts have been reclassified to conform to the 2016 presentation. |
Business Acquisition (Tables)
Business Acquisition (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the allocation of the purchase consideration for these acquisitions (in thousands): Assets and Liabilities (1) Valuation Accounts receivable $ 2,644 Property and equipment 2,033 Other assets 575 Software 2,546 Trade names 5,344 Customer relationships 32,223 Other intangibles 1,290 Goodwill 56,479 Other accrued liabilities (3,384 ) Deferred revenue (1,189 ) Deferred tax liability (3,003 ) Total $ 95,558 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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): September 30, December 31, 2015 Due within 1 year $ 39,845 $ 56,940 Due within more than 1 year but less than 5 years 53,100 78,248 Due within more than 5 years but less than 10 years — — Due 10 years or after 321 315 Total $ 93,266 $ 135,503 |
Schedule Of Available-For-Sale And Trading Securities | The following table summarizes the Company’s investments (in thousands): September 30, December 31, 2015 Available-for-sale $ 93,266 $ 158,158 Certificates of deposit 63 60 Total $ 93,329 $ 158,218 |
Summary Of Gross Unrealized Gains And Losses And Fair Values | The following table summarizes the gross unrealized gains and losses and fair values for the Company's investments classified as available-for-sale investments as of September 30, 2016 and December 31, 2015 aggregated by major security type (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value September 30, 2016 Corporate debt securities $ 66,120 $ 186 $ (31 ) $ 66,275 Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 19,070 4 (14 ) 19,060 Debt securities issued by states of the United States and political subdivisions of the states 5,532 1 (2 ) 5,531 Variable Rate Demand Notes (1) 2,400 — — 2,400 Total $ 93,122 $ 191 $ (47 ) $ 93,266 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 |
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 September 30, 2016 and December 31, 2015 , aggregated by investment category and the length of time that individual securities have been in a continuous loss position (in thousands): As of September 30, 2016 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Corporate debt securities $ 25,007 $ (31 ) $ — $ — $ 25,007 $ (31 ) Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 14,161 (14 ) — — 14,161 (14 ) Debt securities issued by states of the United States and political subdivisions of the states 3,193 (2 ) — — 3,193 (2 ) Total $ 42,361 $ (47 ) $ — $ — $ 42,361 $ (47 ) 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 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
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): September 30, 2016 Level 1 Level 2 Level 3 Fair Value Assets: Cash equivalents: Money market and other funds $ 80,405 $ — $ — $ 80,405 Time deposits — 73 — 73 Certificates of deposit — 63 — 63 Variable Rate Demand Notes — 2,400 — 2,400 Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies — 19,060 — 19,060 Debt securities issued by states of the U.S. and political subdivisions of the states — 5,531 — 5,531 Corporate debt securities — 66,275 — 66,275 Total assets measured at fair value $ 80,405 $ 93,402 $ — $ 173,807 Liabilities: Contingent consideration $ — $ — $ 13,661 $ 13,661 Contingent interest derivative — 1,450 — 1,450 Total liabilities measured at fair value $ — $ 1,450 $ 13,661 $ 15,111 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 U.S. 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 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The following table 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, 2016 $ 30,600 Total fair value adjustments reported in earnings 1,061 General and administrative Contingent consideration payments (18,000 ) Not applicable Balance as of September 30, 2016 $ 13,661 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The following table 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, 2016 $ 1,450 Total fair value adjustments reported in earnings — Balance as of September 30, 2016 $ 1,450 |
Goodwill And Intangible Assets
Goodwill And Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes In Carrying Amounts Of Goodwill | The changes in carrying amounts of goodwill for the nine months ended September 30, 2016 are as follows (in thousands): Business Cloud Services Digital Media Consolidated Balance as of January 1, 2016 $ 502,718 $ 304,943 $ 807,661 Goodwill acquired (Note 3) 56,479 — 56,479 Purchase accounting adjustments (1) 816 (4,931 ) (4,115 ) Foreign exchange translation (6,073 ) (161 ) (6,234 ) Balance as of September 30, 2016 $ 553,940 $ 299,851 $ 853,791 (1) Purchase accounting adjustments relate to adjustments to goodwill in connection with prior year business acquisitions (See Note 3 - Business Acquisitions). |
Schedule Of Intangible Assets With Indefinite Lives | Intangible Assets with Indefinite Lives: Intangible assets are summarized as of September 30, 2016 and December 31, 2015 as follows (in thousands): September 30, December 31, Trade name $ 27,379 $ 27,379 Other 5,432 5,432 Total $ 32,811 $ 32,811 |
Finite-Lived Intangible Assets By Major Class | Intangible Assets Subject to Amortization: As of September 30, 2016 , intangible assets subject to amortization relate primarily to the following (in thousands): Weighted-Average Amortization Period Historical Cost Accumulated Amortization Net Trade names 11.8 years $ 127,254 $ 35,742 $ 91,512 Patent and patent licenses 8.2 years 64,518 50,077 14,441 Customer relationships (1) 10.5 years 343,447 168,013 175,434 Other purchased intangibles 4.6 years 35,871 24,415 11,456 Total $ 571,090 $ 278,247 $ 292,843 (1) Historically, the Company has amortized its customer relationship assets in a pattern that best reflects the pace in which the asset's benefits are consumed. This pattern results in a substantial majority of the amortization expense being recognized in the first 4 to 5 years, despite the overall life of the asset. 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 (1) 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 (1) Historically, the Company has amortized its customer relationship assets in a pattern that best reflects the pace in which the asset's benefits are consumed. This pattern results in a substantial majority of the amortization expense being recognized in the first 4 to 5 years, despite the overall life of the asset. |
Long Term Debt (Tables)
Long Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Long-term Debt, Unclassified [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | Long-term debt as of September 30, 2016 and December 31, 2015 consists of the following (in thousands): September 30, 2016 December 31, 2015 8% Senior Notes $ 247,203 $ 246,750 3.25% Convertible Notes 360,174 354,436 Less: Deferred issuance costs (1) (8,117 ) (9,149 ) Total long-term debt 599,260 592,037 Less: current portion — — Total long-term debt, less current portion $ 599,260 $ 592,037 (1) The Company adopted ASU 2015-03 Interest - Imputation Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs during the first quarter of 2016 on a retrospective basis. At December 31, 2015, $9.1 million of deferred issuance costs were classified as a reduction of Long-term debt on our consolidated balance sheets. |
Stockholders' Equity Dividends
Stockholders' Equity Dividends Declared (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Dividends Declared [Abstract] | |
Dividends Declared [Table Text Block] | The following is a summary of each dividend declared during fiscal year 2016 and 2015 : Declaration Date Dividend per Common Share Record Date Payment Date February 10, 2015 $ 0.2925 February 23, 2015 March 9, 2015 May 6, 2015 $ 0.3000 May 19, 2015 June 3, 2015 August 3, 2015 $ 0.3075 August 17, 2015 September 1, 2015 November 3, 2015 $ 0.3150 November 17, 2015 December 3, 2015 February 10, 2016 $ 0.3250 February 23, 2016 March 10, 2016 May 5, 2016 $ 0.3350 May 18, 2016 June 2, 2016 August 2, 2016 $ 0.3450 August 17, 2016 September 1, 2016 |
Stock Options And Employee St32
Stock Options And Employee Stock Purchase Plan (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Stock Options Activity | The following table represents stock option activity for the nine months ended September 30, 2016 : Number of Shares Weighted- Weighted-Average Aggregate Outstanding at January 1, 2016 566,428 $ 29.74 Granted — — Exercised (132,073 ) 25.91 Canceled (9,700 ) 26.92 Outstanding at September 30, 2016 424,655 $ 31.00 4.1 $ 15,169,195 Exercisable at September 30, 2016 362,555 $ 26.12 3.4 $ 14,688,225 Vested and expected to vest at September 30, 2016 412,053 $ 29.96 3.9 $ 15,137,035 |
Restricted (Performance) Stock [Member] | |
Schedule of Share-based Payment Award, Performance Awards, Valuation Assumptions [Table Text Block] | The weighted-average fair values of market-based restricted stock awards granted have been estimated utilizing the following assumptions: September 30, 2016 Underlying stock price at valuation date $ 63.73 Expected volatility 29.8 % Risk-free interest rate 1.51 % |
Restricted Stock [Member] | |
Restricted Stock And Restricted Stock Unit Award Activity | Restricted stock award activity for the nine months ended September 30, 2016 is set forth below: Shares Weighted-Average Grant-Date Fair Value Nonvested at January 1, 2016 704,804 $ 39.08 Granted 291,914 40.82 Vested (159,035 ) 44.53 Canceled (34,700 ) 66.31 Nonvested at September 30, 2016 802,983 $ 37.46 |
Restricted Stock Units (RSUs) [Member] | |
Restricted Stock And Restricted Stock Unit Award Activity | Restricted stock unit award activity for the nine months ended September 30, 2016 is set forth below: Number of Weighted-Average Aggregate Outstanding at January 1, 2016 56,245 Granted 21,250 Vested (10,755 ) Canceled (11,200 ) Outstanding at September 30, 2016 55,540 1.9 $ 3,699,519 Vested and expected to vest at September 30, 2016 43,475 1.7 $ 2,895,863 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Numerator for basic and diluted net income per common share: Net income attributable to j2 Global, Inc. common shareholders $ 45,569 $ 37,375 $ 109,281 $ 98,169 Net income available to participating securities (a) (718 ) (611 ) (1,610 ) (1,620 ) Net income available to j2 Global, Inc. common shareholders $ 44,851 $ 36,764 $ 107,671 $ 96,549 Denominator: Weighted-average outstanding shares of common stock 47,310,011 47,696,224 47,775,798 47,553,075 Dilutive effect of: Equity incentive plans 184,733 257,647 208,974 224,547 Convertible debt (b) — — 12,902 — Common stock and common stock equivalents 47,494,744 47,953,871 47,997,674 47,777,622 Net income per share: Basic $ 0.95 $ 0.77 $ 2.25 $ 2.03 Diluted $ 0.94 $ 0.77 $ 2.24 $ 2.02 (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 7 - Long Term Debt). |
Segment and Geographic Inform34
Segment and Geographic Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | Information on reportable segments and reconciliation to consolidated income from operations is presented below (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Revenues by segment: Business Cloud Services $ 143,342 $ 126,436 $ 423,941 $ 369,685 Digital Media 66,819 52,312 198,613 146,476 Elimination of inter-segment revenues (45 ) (47 ) (136 ) (169 ) Total revenues 210,116 178,701 622,418 515,992 Direct costs by segment (1) : Business Cloud Services 90,485 69,617 268,333 213,518 Digital Media 52,887 44,970 165,398 125,045 Direct costs by segment (1) : 143,372 114,587 433,731 338,563 Business Cloud Services operating income (2) 52,857 56,819 155,608 156,167 Digital Media operating income 13,932 7,342 33,215 21,431 Segment operating income 66,789 64,161 188,823 177,598 Global operating costs (2)(3) 4,667 8,428 14,418 31,269 Income from operations $ 62,122 $ 55,733 $ 174,405 $ 146,329 (1) Direct costs for each segment include cost of revenues and other operating expenses that are directly attributable to the segment, such as employee compensation expense, local sales and marketing expenses, engineering and network operations expense, depreciation and amortization and other administrative expenses. (2) During 2016, the Company determined certain personnel and third-party costs were directly attributable to a particular segment. As a result, these costs were no longer classified as Global operating costs in 2016. If such costs in the prior period were classified consistent with the 2016 presentation, the operating income for the Business Cloud Services segment would have been $53.1 million and $139.8 million for the three and nine months ended September 30, 2015, respectively. Global operating costs would have been $4.7 million and $14.9 million for the three and nine month ended September 30, 2015, respectively. (3) 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] | September 30, 2016 December 31, 2015 Assets: Business Cloud Services $ 1,034,687 $ 1,017,676 Digital Media 582,352 427,647 Total assets from reportable segments 1,617,039 1,445,323 Corporate 152,106 338,396 Total assets $ 1,769,145 $ 1,783,719 Nine Months Ended September 30, 2016 2015 Capital expenditures: Business Cloud Services $ 6,251 $ 6,078 Digital Media 11,196 5,528 Total from reportable segments 17,447 11,606 Corporate — 321 Total capital expenditures $ 17,447 $ 11,927 Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Depreciation and amortization: Business Cloud Services $ 20,218 $ 12,961 $ 58,971 $ 41,733 Digital Media 10,118 7,280 29,598 21,303 Total from reportable segments 30,336 20,241 88,569 63,036 Corporate — 214 — 599 Total depreciation and amortization $ 30,336 $ 20,455 $ 88,569 $ 63,635 The Company's Business Cloud Services segment consists of several services which have similar economic characteristics, including the nature of the services and their production processes, the type of customers, as well as the methods used to distribute these services. j2 Global groups its Business Cloud services into three main categories based on the similarities of these services: Cloud Connect, Cloud Services and Intellectual Property. Cloud Connect consists of our Fax and Voice services. Cloud Services consist of Backup, Email Security, Email Marketing and Web Hosting. Three Months Ended September 30, 2016 Nine Months Ended September 30, 2016 Revenue Depreciation and Amortization Operating Income (4) Revenue Depreciation and Amortization Operating Income (4) Cloud Connect (Fax/Voice) $ 92,599 $ 5,950 $ 43,503 $ 275,700 $ 19,096 $ 126,598 Cloud Services 49,624 12,826 10,350 144,853 35,327 31,974 Intellectual Property 1,119 1,442 (996 ) 3,388 4,548 (2,964 ) Total $ 143,342 $ 20,218 $ 52,857 $ 423,941 $ 58,971 $ 155,608 Three Months Ended September 30, 2015 Nine Months Ended September 30, 2015 Revenue Depreciation and Amortization Operating Income (4) Revenue Depreciation and Amortization Operating Income (4) Cloud Connect (Fax/Voice) $ 89,511 $ 5,309 $ 48,346 $ 264,987 $ 16,287 $ 136,909 Cloud Services 35,819 6,030 9,459 100,050 19,810 21,808 Intellectual Property 1,106 1,622 (986 ) 4,648 5,636 (2,550 ) Total $ 126,436 $ 12,961 $ 56,819 $ 369,685 $ 41,733 $ 156,167 (4) During 2016, the Company determined certain personnel and third-party costs were directly attributable to a particular segment. As a result, these costs were no longer classified as Global operating costs in 2016. If such costs in the prior period were classified consistent with the 2016 presentation, the operating income for Cloud Connect and Other Cloud Services would have been $46.2 million and $7.9 million, respectively, for the three months ended September 30, 2015 and $125.3 million and $17.1 million, respectively, for the nine months ended September 30, 2015. |
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). Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Revenues: United States $ 142,691 $ 119,177 $ 424,804 $ 349,226 Canada 19,939 18,836 57,205 55,922 Ireland 18,068 11,363 54,517 32,118 All other countries 29,418 29,325 85,892 78,726 $ 210,116 $ 178,701 $ 622,418 $ 515,992 September 30, December 31, Long-lived assets: United States $ 257,217 $ 271,796 All other countries 97,070 105,477 Total $ 354,287 $ 377,273 |
Unrestricted Subsidiaries (Tabl
Unrestricted Subsidiaries (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Unrestricted Subsidiaires [Abstract] | |
Schedule of Unrestricted Subsidiaries Financial Information [Table Text Block] | The financial position of the Unrestricted Subsidiaries as of September 30, 2016 and December 31, 2015 is as follows (in thousands): September 30, 2016 December 31, 2015 ASSETS Cash and cash equivalents $ 46,053 $ 16,482 Accounts receivable 67,857 79,283 Prepaid expenses and other current assets 5,648 5,437 Deferred income taxes, current — 3,382 Total current assets 119,558 104,584 Property and equipment, net 28,999 25,353 Trade names, net 71,322 73,034 Patent and patent licenses, net 13,779 18,071 Customer relationships, net 54,765 68,317 Goodwill 299,851 304,943 Other purchased intangibles, net 7,224 7,810 Deferred income taxes, non-current 885 2,373 Other assets 3,039 — Total assets $ 599,422 $ 604,485 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable and accrued expenses $ 78,942 $ 88,580 Deferred revenue, current 8,128 6,554 Total current liabilities 87,070 95,134 Long-term debt 162,662 155,000 Deferred income taxes, non-current 6,928 11,270 Other long-term liabilities 1,867 13,546 Total liabilities 258,527 274,950 Additional paid-in capital 320,692 319,728 Retained earnings 21,968 11,552 Accumulated other comprehensive loss (1,765 ) (1,745 ) Total stockholders' equity 340,895 329,535 Total liabilities and stockholders' equity $ 599,422 $ 604,485 The results of operations of the Unrestricted Subsidiaries for the three and nine months ended September 30, 2016 and 2015 is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Revenues $ 66,819 $ 52,334 $ 198,661 $ 147,858 Cost of revenues 5,618 5,922 16,489 15,293 Gross profit 61,201 46,412 182,172 132,565 Operating expenses: Sales and marketing 27,394 19,053 81,099 55,896 Research, development and engineering 2,791 1,916 8,443 5,984 General and administrative 19,200 20,172 65,724 55,070 Total operating expenses 49,385 41,141 155,266 116,950 Income from operations 11,816 5,271 26,906 15,615 Interest expense, net 4,364 2,698 12,977 8,016 Other expense (income), net (2,468 ) 430 (1,982 ) 529 Income (loss) before income taxes 9,920 2,143 15,911 7,070 Income tax expense 3,223 2,224 5,495 5,421 Net income (loss) $ 6,697 $ (81 ) $ 10,416 $ 1,649 |
Accumulated Other Comprehensi36
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 three months ended September 30, 2016 (in thousands): Unrealized Gains (Losses) on Investments Foreign Currency Translation Total Beginning balance $ 2,339 $ (40,811 ) $ (38,472 ) Other comprehensive income (loss) before reclassifications 902 (328 ) 574 Amounts reclassified from accumulated other comprehensive income (3,151 ) — (3,151 ) Net current period other comprehensive loss (2,249 ) (328 ) (2,577 ) Ending balance $ 90 $ (41,139 ) $ (41,049 ) The following table summarizes the changes in accumulated balances of other comprehensive income, net of tax, for the nine months ended September 30, 2016 (in thousands): Unrealized Gains (Losses) on Investments Foreign Currency Translation Total Beginning balance $ 2,449 $ (31,573 ) $ (29,124 ) Other comprehensive income (loss) before reclassifications 749 (9,566 ) (8,817 ) Amounts reclassified from accumulated other comprehensive income (3,108 ) — (3,108 ) Net current period other comprehensive loss (2,359 ) (9,566 ) (11,925 ) Ending balance $ 90 $ (41,139 ) $ (41,049 ) |
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 three and nine months ended September 30, 2016 (in thousands): Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Statement of Income Three Months Ended September 30, 2016 Nine Months Ended September 30, 2016 Unrealized gain on available-for-sale investments $ (5,082 ) $ (5,013 ) Other expense (income), net (5,082 ) (5,013 ) Income before income taxes 1,931 1,905 Income tax expense (3,151 ) (3,108 ) Net income Total reclassifications for the period $ (3,151 ) $ (3,108 ) Net income |
Condensed Consolidating Finan37
Condensed Consolidating Financials (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Condensed Financial Statements, Captions [Line Items] | |
Condensed Balance Sheet [Table Text Block] | j2 GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited, in thousands except share and per share data) September 30, 2016 BALANCE SHEET j2 Global, Inc. j2 Cloud Services, LLC Non-guarantor Subsidiaries Consolidating Adjustments j2 Global Consolidated ASSETS Cash and cash equivalents $ 46,203 $ 8,433 $ 230,927 $ — $ 285,563 Short-term investments 39,845 — 63 — 39,908 Accounts receivable, net — 13,872 100,714 (5 ) 114,581 Prepaid expenses and other current assets 32,347 1,846 17,015 (24,641 ) 26,567 Intercompany receivable 130,000 201,099 — (331,099 ) — Total current assets 248,395 225,250 348,719 (355,745 ) 466,619 Long-term investments 53,421 — — — 53,421 Property and equipment, net — 6,763 54,674 — 61,437 Trade names, net — 10,130 108,761 — 118,891 Patent and patent licenses, net — 637 13,804 — 14,441 Customer relationships, net — 2,543 172,891 — 175,434 Goodwill — 61,419 792,372 — 853,791 Other purchased intangibles, net — 4,438 12,450 — 16,888 Investment in subsidiaries 1,062,379 723,601 (1,072 ) (1,784,908 ) — Deferred income taxes, non-current — 22,475 2,284 (20,305 ) 4,454 Other assets — 457 3,312 — 3,769 Total assets $ 1,364,195 $ 1,057,713 $ 1,508,195 $ (2,160,958 ) $ 1,769,145 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable and accrued expenses $ 6,461 $ 24,111 $ 90,973 $ (19,715 ) $ 101,830 Income taxes payable — 7,138 — (4,931 ) 2,207 Deferred revenue, current — 19,977 56,282 — 76,259 Capital lease, current — — 191 — 191 Intercompany payable 77,121 — 253,978 (331,099 ) — Total current liabilities 83,582 51,226 401,424 (355,745 ) 180,487 Long-term debt 352,858 246,402 — — 599,260 Capital lease, non-current — — 12 — 12 Liability for uncertain tax positions — 44,418 — — 44,418 Deferred income taxes, non-current 29,111 — 31,169 (20,305 ) 39,975 Deferred revenue, non-current — 2,354 — — 2,354 Other long-term liabilities 1,522 581 2,342 — 4,445 Total liabilities 467,073 344,981 434,947 (376,050 ) 870,951 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 472 — — — 472 Additional paid-in capital 460,276 89,066 425,550 (670,507 ) 304,385 Retained earnings 436,285 623,518 688,984 (1,114,401 ) 634,386 Accumulated other comprehensive income (loss) 89 148 (41,286 ) — (41,049 ) Total stockholders' equity 897,122 712,732 1,073,248 (1,784,908 ) 898,194 Total liabilities and stockholders' equity $ 1,364,195 $ 1,057,713 $ 1,508,195 $ (2,160,958 ) $ 1,769,145 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, LLC 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 |
Condensed Income Statement [Table Text Block] | j2 GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF INCOME (Unaudited, in thousands except share and per share data) Three Months Ended September 30, 2016 j2 Global, Inc. j2 Cloud Services, LLC Non-guarantor Subsidiaries Consolidating Adjustments j2 Global Consolidated Revenues: Total revenues $ — $ 57,751 $ 165,317 $ (12,952 ) $ 210,116 Cost of revenues — 19,421 30,479 (12,908 ) 36,992 Gross profit — 38,330 134,838 (44 ) 173,124 Operating expenses: Sales and marketing — 10,166 36,303 (44 ) 46,425 Research, development and engineering — 3,097 5,868 — 8,965 General and administrative 4,667 5,793 45,152 — 55,612 Total operating expenses 4,667 19,056 87,323 (44 ) 111,002 Income (loss) from operations (4,667 ) 19,274 47,515 — 62,122 Equity earnings in subsidiaries 45,662 28,224 — (73,886 ) — Interest expense, net 1,799 5,199 3,438 — 10,436 Other income, net (7,500 ) (56 ) (2,162 ) — (9,718 ) Income before income taxes 46,696 42,355 46,239 (73,886 ) 61,404 Income tax expense 1,127 7,110 7,598 — 15,835 Net income $ 45,569 $ 35,245 $ 38,641 $ (73,886 ) $ 45,569 j2 GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF INCOME (Unaudited, in thousands except share and per share data) Three Months Ended September 30, 2015 j2 Global, Inc. j2 Cloud Services, LLC Non-guarantor Subsidiaries Consolidating Adjustments j2 Global Consolidated Revenues: Total revenues $ — $ 56,753 $ 148,648 $ (26,700 ) $ 178,701 Cost of revenues (1 ) 29,375 27,948 (26,653 ) 30,669 Gross profit 1 27,378 120,700 (47 ) 148,032 Operating expenses: Sales and marketing — 9,684 29,171 (47 ) 38,808 Research, development and engineering (2 ) 3,646 4,645 — 8,289 General and administrative 3,714 5,067 36,421 — 45,202 Total operating expenses 3,712 18,397 70,237 (47 ) 92,299 Income (loss) from operations (3,711 ) 8,981 50,463 — 55,733 Equity earnings in subsidiaries 41,260 41,357 — (82,617 ) — Interest expense, net 3,293 5,179 1,787 — 10,259 Other expense (income), net (2 ) 37 1,051 — 1,086 Income before income taxes 34,258 45,122 47,625 (82,617 ) 44,388 Income tax expense (benefit) (3,117 ) 3,862 6,268 — 7,013 Net income $ 37,375 $ 41,260 $ 41,357 $ (82,617 ) $ 37,375 j2 GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF INCOME (Unaudited, in thousands except share and per share data) Nine Months Ended September 30, 2016 j2 Global, Inc. j2 Cloud Services, LLC Non-guarantor Subsidiaries Consolidating Adjustments j2 Global Consolidated Revenues: Total revenues $ — $ 180,390 $ 486,962 $ (44,934 ) $ 622,418 Cost of revenues — 53,902 97,767 (44,799 ) 106,870 Gross profit — 126,488 389,195 (135 ) 515,548 Operating expenses: Sales and marketing — 31,055 112,235 (135 ) 143,155 Research, development and engineering — 9,316 17,849 — 27,165 General and administrative 14,417 15,694 140,712 — 170,823 Total operating expenses 14,417 56,065 270,796 (135 ) 341,143 Income (loss) from operations (14,417 ) 70,423 118,399 — 174,405 Equity earnings in subsidiaries 118,004 76,706 — (194,710 ) — Interest expense, net 5,262 15,624 10,085 — 30,971 Other income, net (7,709 ) (1,070 ) (1,026 ) — (9,805 ) Income before income taxes 106,034 132,575 109,340 (194,710 ) 153,239 Income tax expense (benefit) (3,247 ) 24,987 22,218 — 43,958 Net income $ 109,281 $ 107,588 $ 87,122 $ (194,710 ) $ 109,281 j2 GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF INCOME (Unaudited, in thousands except share and per share data) Nine Months Ended September 30, 2015 j2 Global, Inc. j2 Cloud Services, LLC Non-guarantor Subsidiaries Consolidating Adjustments j2 Global Consolidated Revenues: Total revenues $ — $ 167,919 $ 394,300 $ (46,227 ) $ 515,992 Cost of revenues — 60,317 74,091 (46,058 ) 88,350 Gross profit — 107,602 320,209 (169 ) 427,642 Operating expenses: Sales and marketing — 29,976 87,012 (169 ) 116,819 Research, development and engineering — 11,264 14,440 — 25,704 General and administrative 11,434 20,928 106,428 — 138,790 Total operating expenses 11,434 62,168 207,880 (169 ) 281,313 Income (loss) from operations (11,434 ) 45,434 112,329 — 146,329 Equity earnings in subsidiaries 113,042 91,640 — (204,682 ) — Interest expense, net 8,651 16,079 6,723 — 31,453 Other expense (income), net (20 ) 347 63 — 390 Income before income taxes 92,977 120,648 105,543 (204,682 ) 114,486 Income tax expense (benefit) (5,192 ) 7,606 13,903 — 16,317 Net income $ 98,169 $ 113,042 $ 91,640 $ (204,682 ) $ 98,169 |
Condensed Comprehensive Income Statement [Table Text Block] | j2 GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited, in thousands except share and per share data) Three Months Ended September 30, 2016 j2 Global, Inc. j2 Cloud Services, LLC Non-guarantor Subsidiaries Consolidating Adjustments j2 Global Consolidated Net income $ 45,569 $ 35,245 $ 38,641 $ (73,886 ) $ 45,569 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment — — (328 ) — (328 ) Change in fair value on available-for-sale investments, net of tax expense (benefit) (2,249 ) — — — (2,249 ) Other comprehensive income (loss), net of tax (2,249 ) — (328 ) — (2,577 ) Comprehensive income $ 43,320 $ 35,245 $ 38,313 $ (73,886 ) $ 42,992 j2 GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited, in thousands except share and per share data) Three Months Ended September 30, 2015 j2 Global, Inc. j2 Cloud Services, LLC Non-guarantor Subsidiaries Consolidating Adjustments j2 Global Consolidated Net income $ 37,375 $ 41,260 $ 41,357 $ (82,617 ) $ 37,375 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment, net of tax — — (4,652 ) — (4,652 ) Change in fair value on available-for-sale investments, net of tax expense (benefit) (1,057 ) — — — (1,057 ) Other comprehensive income (loss), net of tax (1,057 ) — (4,652 ) — (5,709 ) Comprehensive income $ 36,318 $ 41,260 $ 36,705 $ (82,617 ) $ 31,666 j2 GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited, in thousands except share and per share data) Nine Months Ended September 30, 2016 j2 Global, Inc. j2 Cloud Services, LLC Non-guarantor Subsidiaries Consolidating Adjustments j2 Global Consolidated Net income $ 109,281 $ 107,588 $ 87,122 $ (194,710 ) $ 109,281 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment, net of tax — — (9,566 ) — (9,566 ) Change in fair value on available-for-sale investments, net of tax expense (benefit) (2,359 ) — — — (2,359 ) Other comprehensive income (loss), net of tax (2,359 ) — (9,566 ) — (11,925 ) Comprehensive income $ 106,922 $ 107,588 $ 77,556 $ (194,710 ) $ 97,356 j2 GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited, in thousands except share and per share data) Nine Months Ended September 30, 2015 j2 Global, Inc. j2 Cloud Services, LLC Non-guarantor Subsidiaries Consolidating Adjustments j2 Global Consolidated Net income $ 98,169 $ 113,042 $ 91,640 $ (204,682 ) $ 98,169 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment, net of tax — — (12,777 ) — (12,777 ) Change in fair value on available-for-sale investments, net of tax expense (benefit) (4,611 ) — — — (4,611 ) Other comprehensive income (loss), net of tax (4,611 ) — (12,777 ) — (17,388 ) Comprehensive income $ 93,558 $ 113,042 $ 78,863 $ (204,682 ) $ 80,781 |
Condensed Cash Flow Statement [Table Text Block] | j2 GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW (Unaudited, in thousands except share and per share data) Nine Months Ended September 30, 2016 j2 Global, Inc. j2 Cloud Services, LLC Non-guarantor Subsidiaries Consolidating Adjustments j2 Global Consolidated Net cash (used in) provided by operating activities $ (4,416 ) $ 35,756 $ 161,200 $ — $ 192,540 Cash flows from investing activities: Maturity of available-for-sale investments 145,005 — — — 145,005 Purchase of available-for-sale investments (75,834 ) — — — (75,834 ) Purchases of property and equipment — (2,458 ) (14,989 ) — (17,447 ) Acquisition of businesses, net of cash received — (6,292 ) (85,109 ) — (91,401 ) Purchases of intangible assets — (106 ) (1,908 ) — (2,014 ) Net cash (used in) provided by investing activities 69,171 (8,856 ) (102,006 ) — (41,691 ) Cash flows from financing activities: Repurchases of common and restricted stock (56,083 ) — — — (56,083 ) Issuance of common stock under employee stock purchase plan 191 — — — 191 Exercise of stock options 3,272 — — — 3,272 Dividends paid (48,768 ) — — — (48,768 ) Excess tax benefits from share-based compensation 2,071 — — — 2,071 Deferred payments for acquisitions — (1,378 ) (17,561 ) — (18,939 ) Other — — (391 ) — (391 ) Intercompany 25,463 (26,973 ) 1,510 — — Net cash used in financing activities (73,854 ) (28,351 ) (16,442 ) — (118,647 ) Effect of exchange rate changes on cash and cash equivalents (214 ) (91 ) (1,864 ) — (2,169 ) Net change in cash and cash equivalents (9,313 ) (1,542 ) 40,888 — 30,033 Cash and cash equivalents at beginning of period 55,516 9,975 190,039 — 255,530 Cash and cash equivalents at end of period $ 46,203 $ 8,433 $ 230,927 $ — $ 285,563 j2 GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW (Unaudited, in thousands except share and per share data) Nine Months Ended September 30, 2015 j2 Global, Inc. j2 Cloud Services, LLC Non-guarantor Subsidiaries Consolidating Adjustments j2 Global Consolidated Net cash (used in) provided by operating activities $ (21,341 ) $ 34,297 $ 135,617 $ — $ 148,573 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 87,976 — — — 87,976 Purchase of available-for-sale investments (78,281 ) — — — (78,281 ) Purchases of property and equipment — (1,355 ) (10,572 ) — (11,927 ) Acquisition of businesses, net of cash received — 47 (259,885 ) — (259,838 ) Purchases of intangible assets — 166 (1,424 ) — (1,258 ) Intercompany (53,317 ) 53,317 — — — Net cash (used in) provided by investing activities (43,619 ) 52,175 (271,881 ) — (263,325 ) Cash flows from financing activities: Repurchases of common stock and restricted stock (3,159 ) — — — (3,159 ) Issuance of common stock under employee stock purchase plan 196 — — — 196 Exercise of stock options 4,618 — — — 4,618 Dividends paid (43,526 ) — — — (43,526 ) Excess tax benefits from share-based compensation 4,541 — — — 4,541 Deferred payments for acquisitions — — (5,411 ) — (5,411 ) Other — — (250 ) — (250 ) Intercompany (13,713 ) (103,533 ) 117,246 — — Net cash (used in) provided by financing activities (51,043 ) (103,533 ) 111,585 — (42,991 ) Effect of exchange rate changes on cash and cash equivalents (1,233 ) (7,895 ) 5,576 — (3,552 ) Net change in cash and cash equivalents (117,236 ) (24,956 ) (19,103 ) — (161,295 ) Cash and cash equivalents at beginning of period 226,790 36,810 170,063 — 433,663 Cash and cash equivalents at end of period $ 109,554 $ 11,854 $ 150,960 $ — $ 272,368 |
Business Acquisition (Details)
Business Acquisition (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($)shares | |
Goodwill, Purchase Accounting Adjustments | $ (4,115) |
Goodwill, Acquired During Period | 56,479 |
Business Acquisition, Purchase Price Allocation, Goodwill, Expected Tax Deductible Amount | 35,400 |
Business Acquisition Contributed Total Revenue | 20,100 |
Total consideration of transaction, net of cash acquired | $ 95,558 |
Stock Repurchased | shares | 2,100,000 |
IGC [Member] | |
Business Acquisition, Date of Acquisition Agreement | Jul. 12, 2016 |
Total consideration of transaction, net of cash acquired | $ 6,300 |
Stock Repurchased During Period, Value | $ 51,500 |
Stock Repurchased | shares | 935,231 |
Business Cloud Services Segment [Member] | |
Goodwill, Purchase Accounting Adjustments | $ 816 |
Goodwill, Acquired During Period | 56,479 |
Digital Media Segment [Member] | |
Goodwill, Purchase Accounting Adjustments | (4,931) |
Goodwill, Acquired During Period | $ 0 |
Business Acquisition Business A
Business Acquisition Business Acquisition (Allocation of Aggregate Purchase Price) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Business Acquisition [Line Items] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | $ 2,644 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 2,033 | |
Business Acquisition Purchase Price Allocation Current Noncurrent Assets Prepaid Expense and Other Assets | 575 | |
Business Combination, Purchase Price Allocation, Goodwill Amount | 853,791 | $ 807,661 |
Goodwill, Acquired During Period | 56,479 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | (3,384) | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Deferred Revenue | (1,189) | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent | (3,003) | |
Total consideration of transaction, net of cash acquired | 95,558 | |
Developed Technology Rights [Member] | ||
Business Acquisition [Line Items] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 2,546 | |
Trade Names [Member] | ||
Business Acquisition [Line Items] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 5,344 | |
Customer Relationships [Member] | ||
Business Acquisition [Line Items] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 32,223 | |
Other Intangible Assets [Member] | ||
Business Acquisition [Line Items] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 1,290 |
Investments Investments (Narrat
Investments Investments (Narrative) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($)shares | |
Schedule of Available-for-sale Securities [Line Items] | |
Stock Repurchased | shares | 2,100,000 |
Equity Securities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Available-for-sale Securities, tax | $ | $ 2.9 |
Available-for-sale Securities, Gross Realized Gains | $ | $ 7.6 |
IGC [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Stock Repurchased | shares | 935,231 |
Investments (Schedule Of Debt S
Investments (Schedule Of Debt Securities By Contractual Maturity Date) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Investments [Abstract] | ||
Due within 1 year | $ 39,845 | $ 56,940 |
Due within more than 1 year but less than 5 years | 53,100 | 78,248 |
Due within more than 5 years but less than 10 years | 0 | 0 |
Due 10 years or after | 321 | 315 |
Total | $ 93,266 | $ 135,503 |
Investments (Schedule Of Availa
Investments (Schedule Of Available-For-Sale And Trading Securities) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | $ 93,266 | $ 158,158 |
Certificates of Deposit, at Carrying Value | 63 | 60 |
Total | 93,329 | 158,218 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Gross Realized Gains | $ 7,600 | |
Available-for-sale Securities | $ 22,654 |
Investments (Summary Of Gross U
Investments (Summary Of Gross Unrealized Gains And Losses And Fair Values) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | $ 93,122 | $ 154,214 |
Available-for-sale Securities, Gross Unrealized Gain | 191 | 4,230 |
Available-for-sale Securities, Gross Unrealized Loss | (47) | (286) |
Available-for-sale Securities | 93,266 | 158,158 |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 66,120 | 88,852 |
Available-for-sale Securities, Gross Unrealized Gain | 186 | 110 |
Available-for-sale Securities, Gross Unrealized Loss | (31) | (213) |
Available-for-sale Securities | 66,275 | 88,749 |
Debt Securities Issued By The U.S Treasury And Other U.S Government Corporations And Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 19,070 | 40,715 |
Available-for-sale Securities, Gross Unrealized Gain | 4 | 0 |
Available-for-sale Securities, Gross Unrealized Loss | (14) | (63) |
Available-for-sale Securities | 19,060 | 40,652 |
Debt Securities Issued By States Of The United States And Political Subdivisions Of The States [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 5,532 | 6,111 |
Available-for-sale Securities, Gross Unrealized Gain | 1 | 2 |
Available-for-sale Securities, Gross Unrealized Loss | (2) | (10) |
Available-for-sale Securities | 5,531 | 6,103 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 18,536 | |
Available-for-sale Securities, Gross Unrealized Gain | 4,118 | |
Available-for-sale Securities, Gross Unrealized Loss | 0 | |
Available-for-sale Securities | $ 22,654 | |
Variable Rate Demand Obligation [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 2,400 | |
Available-for-sale Securities, Gross Unrealized Gain | 0 | |
Available-for-sale Securities, Gross Unrealized Loss | 0 | |
Available-for-sale Securities | $ 2,400 |
Investments Investments (Summar
Investments Investments (Summary of Unrealized Loss by 12 month Period) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Investments Unrealized Loss Position [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 42,361 | $ 117,000 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (47) | (284) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 1,649 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | (2) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 42,361 | 118,649 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (47) | (286) |
Corporate Debt Securities [Member] | ||
Investments Unrealized Loss Position [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 25,007 | 74,807 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (31) | (212) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 1,000 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | (1) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 25,007 | 75,807 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (31) | (213) |
Debt Securities Issued By The U.S Treasury And Other U.S Government Corporations And Agencies [Member] | ||
Investments Unrealized Loss Position [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 14,161 | 38,004 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (14) | (62) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 649 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | (1) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 14,161 | 38,653 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (14) | (63) |
Debt Securities Issued By States Of The United States And Political Subdivisions Of The States [Member] | ||
Investments Unrealized Loss Position [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 3,193 | 4,189 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (2) | (10) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 3,193 | 4,189 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (2) | $ (10) |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt, Fair Value | $ 747,100 | $ 790,500 |
Business Combination, Contingent Consideration, Liability | 13,661 | 30,600 |
Other Payments to Acquire Businesses | 20,000 | |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 1,100 | |
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 | 12,300 | 25,000 |
Other Payments to Acquire Businesses | 17,000 | |
Payments to Employees | 3,000 | |
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 | 1,300 | $ 5,600 |
Other Payments to Acquire Businesses | $ 1,000 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule Of Fair Values Of Financial Instruments Measured On Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Available-for-sale Securities | $ 93,266 | $ 158,158 |
Certificates of Deposit, at Carrying Value | 63 | 60 |
Total assets | 173,807 | 208,089 |
Business Combination, Contingent Consideration, Liability | 13,661 | 30,600 |
Derivative Liability | 1,450 | 1,450 |
Financial Liabilities Fair Value Disclosure | 15,111 | 32,050 |
Debt Securities Issued By States Of The United States And Political Subdivisions Of The States [Member] | ||
Investments | 5,531 | 6,103 |
Money Market Funds [Member] | ||
Cash | 80,405 | 46,867 |
Bank Time Deposits [Member] | ||
Cash | 73 | 3,004 |
Certificates of Deposit [Member] | ||
Investments | 63 | 60 |
Equity Securities [Member] | ||
Investments | 22,654 | |
Variable Rate Demand Obligation [Member] | ||
Investments | 2,400 | |
Debt Securities Issued By The U.S Treasury And Other U.S Government Corporations And Agencies [Member] | ||
Investments | 19,060 | 40,652 |
Corporate Debt Securities [Member] | ||
Investments | 66,275 | 88,749 |
Level 1 [Member] | ||
Total assets | 80,405 | 69,521 |
Business Combination, Contingent Consideration, Liability | 0 | 0 |
Derivative Liability | 0 | 0 |
Financial Liabilities Fair Value Disclosure | 0 | 0 |
Level 1 [Member] | Debt Securities Issued By States Of The United States And Political Subdivisions Of The States [Member] | ||
Investments | 0 | 0 |
Level 1 [Member] | Money Market Funds [Member] | ||
Cash | 80,405 | 46,867 |
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 | |
Level 1 [Member] | Variable Rate Demand Obligation [Member] | ||
Investments | 0 | |
Level 1 [Member] | Debt Securities Issued By The U.S Treasury And Other U.S Government Corporations And Agencies [Member] | ||
Investments | 0 | 0 |
Level 1 [Member] | Corporate Debt Securities [Member] | ||
Investments | 0 | 0 |
Level 2 [Member] | ||
Total assets | 93,402 | 138,568 |
Business Combination, Contingent Consideration, Liability | 0 | 0 |
Derivative Liability | 1,450 | 1,450 |
Financial Liabilities Fair Value Disclosure | 1,450 | 1,450 |
Level 2 [Member] | Debt Securities Issued By States Of The United States And Political Subdivisions Of The States [Member] | ||
Investments | 5,531 | 6,103 |
Level 2 [Member] | Money Market Funds [Member] | ||
Cash | 0 | 0 |
Level 2 [Member] | Bank Time Deposits [Member] | ||
Cash | 73 | 3,004 |
Level 2 [Member] | Certificates of Deposit [Member] | ||
Investments | 63 | 60 |
Level 2 [Member] | Equity Securities [Member] | ||
Investments | 0 | |
Level 2 [Member] | Variable Rate Demand Obligation [Member] | ||
Investments | 2,400 | |
Level 2 [Member] | Debt Securities Issued By The U.S Treasury And Other U.S Government Corporations And Agencies [Member] | ||
Investments | 19,060 | 40,652 |
Level 2 [Member] | Corporate Debt Securities [Member] | ||
Investments | 66,275 | 88,749 |
Level 3 [Member] | ||
Total assets | 0 | 0 |
Business Combination, Contingent Consideration, Liability | 13,661 | 30,600 |
Derivative Liability | 0 | 0 |
Financial Liabilities Fair Value Disclosure | 13,661 | 30,600 |
Level 3 [Member] | Debt Securities Issued By States Of The United States And Political Subdivisions Of The States [Member] | ||
Investments | 0 | 0 |
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 | |
Level 3 [Member] | Variable Rate Demand Obligation [Member] | ||
Investments | 0 | |
Level 3 [Member] | Debt Securities Issued By The U.S Treasury And Other U.S Government Corporations And Agencies [Member] | ||
Investments | 0 | 0 |
Level 3 [Member] | Corporate Debt Securities [Member] | ||
Investments | $ 0 | $ 0 |
Fair Value Measurements Fair 47
Fair Value Measurements Fair Value Measurements (Schedule Of Changes In Fair Value Of Level 3 Financial Assets) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Other Payments to Acquire Businesses | $ (20,000) | |
Business Combination, Contingent Consideration, Liability | 13,661 | $ 30,600 |
Level 2 [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net | 0 | |
Business Combination, Contingent Consideration, Liability | 0 | 0 |
Level 3 [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Period Increase (Decrease) | 1,061 | |
Other Payments to Acquire Businesses | (18,000) | |
Business Combination, Contingent Consideration, Liability | $ 13,661 | $ 30,600 |
Fair Value Measurements Fair 48
Fair Value Measurements Fair Value Measurements (Derivative Summary) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Liability | $ 1,450 | $ 1,450 |
Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Liability | 1,450 | $ 1,450 |
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net | $ 0 |
Goodwill And Intangible Asset49
Goodwill And Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill | $ 853,791 | $ 853,791 | $ 807,661 | ||
Amortization expense | 23,700 | $ 15,900 | 69,600 | $ 50,500 | |
Estimated future amortization expense in year 2016 | 93,000 | 93,000 | |||
Estimated future amortization expense in year 2017 | 71,000 | 71,000 | |||
Estimated future amortization expense in year 2018 | 50,700 | 50,700 | |||
Estimated future amortization expense in year 2019 | 32,100 | 32,100 | |||
Estimated future amortization expense in year 2020 | 22,700 | 22,700 | |||
Estimated future amortization expense thereafter | $ 92,900 | $ 92,900 | |||
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 Asset50
Goodwill And Intangible Assets (Changes In Carrying Amounts Of Goodwill And Other Intangible Assets) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Goodwill [Line Items] | |
Balance as of January 1, 2016 | $ 807,661 |
Goodwill, Acquired During Period | 56,479 |
Goodwill, Purchase Accounting Adjustments | (4,115) |
Foreign Exchange Translation | (6,234) |
Balance as of September 30, 2016 | 853,791 |
Business Cloud Services Segment [Member] | |
Goodwill [Line Items] | |
Balance as of January 1, 2016 | 502,718 |
Goodwill, Acquired During Period | 56,479 |
Goodwill, Purchase Accounting Adjustments | 816 |
Foreign Exchange Translation | (6,073) |
Balance as of September 30, 2016 | 553,940 |
Digital Media Segment [Member] | |
Goodwill [Line Items] | |
Balance as of January 1, 2016 | 304,943 |
Goodwill, Acquired During Period | 0 |
Goodwill, Purchase Accounting Adjustments | (4,931) |
Foreign Exchange Translation | (161) |
Balance as of September 30, 2016 | $ 299,851 |
Goodwill And Intangible Asset51
Goodwill And Intangible Assets (Indefinite Intangible Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
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 Asset52
Goodwill And Intangible Assets (Schedule Of Intangible Assets Subject To Amortization) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Historical Cost | $ 571,090 | $ 529,008 |
Accumulated Amortization | (278,247) | (209,178) |
Net | 292,843 | 319,830 |
Trade Names [Member] | ||
Historical Cost | 127,254 | 117,753 |
Accumulated Amortization | (35,742) | (26,167) |
Net | $ 91,512 | $ 91,586 |
Weighted-Average Amortization Period, years | 11 years 9 months 18 days | 12 years |
Patents And Patent Licenses [Member] | ||
Historical Cost | $ 64,518 | $ 64,258 |
Accumulated Amortization | (50,077) | (45,417) |
Net | $ 14,441 | $ 18,841 |
Weighted-Average Amortization Period, years | 8 years 2 months 12 days | 8 years 3 months 18 days |
Customer Relationships [Member] | ||
Historical Cost | $ 343,447 | $ 313,909 |
Accumulated Amortization | (168,013) | (116,590) |
Net | $ 175,434 | $ 197,319 |
Weighted-Average Amortization Period, years | 10 years 6 months | 9 years 4 months 24 days |
Other Purchased Intangibles [Member] | ||
Historical Cost | $ 35,871 | $ 33,088 |
Accumulated Amortization | (24,415) | (21,004) |
Net | $ 11,456 | $ 12,084 |
Weighted-Average Amortization Period, years | 4 years 7 months 6 days | 4 years 2 months 12 days |
Long Term Debt (Details)
Long Term Debt (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2016 | Dec. 31, 2015 | Jun. 10, 2014 | Jul. 26, 2012 | |
Debt Instrument [Line Items] | ||||
Unamortized Debt Issuance Expense | $ (8,117) | $ (9,149) | ||
Long-term Debt | 599,260 | 592,037 | ||
Long-term Debt, Current Maturities | 0 | 0 | ||
Total long-term debt, less current portion | 599,260 | 592,037 | ||
Long-term Debt, Fair Value | $ 747,100 | 790,500 | ||
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 | $ 5,000 | |||
Debt Instrument, Frequency of Periodic Payment | semi-annually | |||
Debt Instrument, Call Date, Earliest | Aug. 1, 2016 | |||
Long-term Debt | $ 247,203 | 246,750 | ||
Long-term Debt, Fair Value | $ 278,200 | 262,200 | ||
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 | $ 59,000 | |||
Debt Instrument, Convertible, Remaining Discount Amortization Period | 4 years 8 months 16 days | |||
Debt Instrument, Frequency of Periodic Payment | semiannually | |||
Long-term Debt | $ 360,174 | 354,436 | ||
Long-term Debt, Fair Value | $ 468,900 | $ 528,300 | ||
Convertible Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Convertible, Carrying Amount of Equity Component | $ 37,700 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2015 | |
Income Taxes [Line Items] | |||||||||
U.S. federal statutory rate | 35.00% | ||||||||
Effective income tax rate | 25.80% | 15.80% | 28.70% | 14.30% | |||||
Income before income taxes, domestic operations | $ 57,200,000 | $ 33,700,000 | |||||||
Income before income taxes, foreign operations | 96,000,000 | 80,800,000 | |||||||
Liabilities for uncertain income tax positions | $ 44,400,000 | 44,400,000 | $ 35,900,000 | ||||||
Cash paid for income taxes | 40,400,000 | $ 40,500,000 | |||||||
Prepaid tax payments | $ 11,600,000 | 11,600,000 | $ 11,600,000 | ||||||
New York City Department of Finance [Member] | |||||||||
Income Taxes [Line Items] | |||||||||
Tax Adjustments, Settlements, and Unusual Provisions | $ 26,000 | ||||||||
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] | |||||||||
Income Tax Examination, Year under Examination | 2,014 | 2,013 | 2,012 | ||||||
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 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2016USD ($)shares | Sep. 30, 2016USD ($)shares | |
Class of Stock [Line Items] | ||
Stock Repurchased | 2,100,000 | |
Treasury Stock, Value, Acquired, Cost Method | $ | $ 58,600,000 | |
Shares Paid for Tax Withholding for Share Based Compensation | 14,049 | |
2012 Repurchase Program [Member] | ||
Class of Stock [Line Items] | ||
Maximum number of shares authorized to be repurchased | 5,000,000 | 5,000,000 |
Stock Repurchased | 0 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ | $ 1,938,689 | $ 1,938,689 |
IGC [Member] | ||
Class of Stock [Line Items] | ||
Stock Repurchased | 935,231 |
Stockholders' Equity Dividend56
Stockholders' Equity Dividends Declared (Details) - $ / shares | Aug. 02, 2016 | May 05, 2016 | Feb. 10, 2016 | Nov. 03, 2015 | Aug. 03, 2015 | May 06, 2015 | Feb. 10, 2015 |
Dividends Payable [Line Items] | |||||||
Dividend, declaration date | Aug. 2, 2016 | May 5, 2016 | Feb. 10, 2016 | Nov. 3, 2015 | Aug. 3, 2015 | May 6, 2015 | Feb. 10, 2015 |
Dividend amount to be paid, per common share | $ 0.3450 | $ 0.3350 | $ 0.3250 | $ 0.3150 | $ 0.3075 | $ 0.3000 | $ 0.2925 |
Dividend, date of record | Aug. 17, 2016 | May 18, 2016 | Feb. 23, 2016 | Nov. 17, 2015 | Aug. 17, 2015 | May 19, 2015 | Feb. 23, 2015 |
Dividend, date to be paid | Sep. 1, 2016 | Jun. 2, 2016 | Mar. 10, 2016 | Dec. 3, 2015 | Sep. 1, 2015 | Jun. 3, 2015 | Mar. 9, 2015 |
Stock Options And Employee St57
Stock Options And Employee Stock Purchase Plan (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Allocated Share-based Compensation Expense | $ 3,699,000 | $ 2,770,000 | $ 9,947,000 | $ 8,943,000 | |
Number of options outstanding | 424,655 | 424,655 | 566,428 | ||
Number of options granted | 0 | ||||
Cash received upon the issuance of common stock | $ 191,000 | 196,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | 5,100,000 | 9,600,000 | |||
Stock Options [Member] | |||||
Allocated Share-based Compensation Expense | $ 100,000 | 100,000 | 300,000 | $ 600,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | 700,000 | $ 700,000 | $ 1,100,000 | ||
Restricted (Performance) Stock [Member] | |||||
Shares, Granted | 106,780 | 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 44.67 | ||||
Restricted Stock And Restricted Stock Unit (RSU) [Member] | |||||
Allocated Share-based Compensation Expense | 3,600,000 | $ 2,600,000 | $ 9,600,000 | $ 8,300,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 41,700,000 | $ 41,700,000 | $ 34,500,000 | ||
Restricted Stock [Member] | |||||
Shares, Granted | 291,914 | ||||
Weighted-Average Grant-Date Fair Value, Granted | $ 40.82 | ||||
Number of stocks outstanding | 802,983 | 802,983 | 704,804 | ||
Restricted Stock Units (RSUs) [Member] | |||||
Shares, Granted | 21,250 | ||||
Number of stocks outstanding | 55,540 | 55,540 | 56,245 | ||
1997 Stock Option Plan [Member] | |||||
Additional shares authorized for issuance | 840,000 | ||||
Maximum issuance of common stock | 12,000,000 | 12,000,000 | |||
1997 Stock Option Plan [Member] | Stock Options [Member] | |||||
Number of options outstanding | 28,998 | 28,998 | |||
1997 Stock Option Plan [Member] | Restricted Stock [Member] | |||||
Number of stocks outstanding | 0 | 0 | |||
2007 Stock Plan [Member] | |||||
Number of options outstanding | 333,655 | 333,655 | |||
Number of stocks outstanding | 28,590 | 28,590 | |||
Maximum issuance of common stock | 4,500,000 | 4,500,000 | |||
2015 Stock Option Plan [Member] | |||||
Number of options outstanding | 62,000 | 62,000 | |||
Number of stocks outstanding | 26,950 | 26,950 | |||
Maximum issuance of common stock | 4,200,000 | 4,200,000 | |||
2001 Employee Stock Purchase Plan [Member] | Common Stock [Member] | |||||
Market value of common stock on the date of grant for incentive stock options | 95.00% | ||||
Maximum earnings withheld by the employees | 15.00% | 15.00% | |||
Number of shares purchased under the plan | 2,996 | 3,155 | |||
Cash received upon the issuance of common stock | $ 191,000 | $ 196,000 | |||
Number of shares available for issuance | 1,627,448 | 1,627,448 | |||
Minimum [Member] | |||||
Market value of common stock on the date of grant for incentive stock options | 85.00% |
Stock Options And Employee St58
Stock Options And Employee Stock Purchase Plan (Stock Options) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Number of Shares, Outstanding Beginning of Period | 566,428 | ||||
Number of options granted | 0 | ||||
Number of Shares, Exercised | (132,073) | ||||
Number of Shares, Canceled | (9,700) | ||||
Number of Shares, Outstanding Ending of Period | 424,655 | 424,655 | |||
Number of Shares, Exercisable | 362,555 | 362,555 | |||
Number of Shares, Vested and expected to vest | 412,053 | 412,053 | |||
Weighted-Average Exercise Price, Outstanding Beginning of Period | $ 29.74 | ||||
Weighted-Average Exercise Price, Granted | 0 | ||||
Weighted-Average Exercise Price, Exercised | 25.91 | ||||
Weighted-Average Exercise Price, Canceled | 26.92 | ||||
Weighted-Average Exercise Price, Outstanding Ending of Period | $ 31 | 31 | |||
Weighted-Average Exercise Price, Exercisable | 26.12 | 26.12 | |||
Weighted-Average Exercise Price, Vested and expected to vest | $ 29.96 | $ 29.96 | |||
Weighted-Average Remaining Contractual Term, Outstanding (in years) | 4 years 29 days | ||||
Weighted-Average Remaining Contractual Term, Exercisable (in years) | 3 years 4 months 28 days | ||||
Weighted-Average Remaining Contractual Term, Vested and expected to vest (in years) | 3 years 11 months 9 days | ||||
Aggregate Intrinsic Value, Outstanding | $ 15,169,195 | $ 15,169,195 | |||
Aggregate Intrinsic Value, Exercisable | 14,688,225 | 14,688,225 | |||
Aggregate Intrinsic Value, Vested and expected to vest | 15,137,035 | 15,137,035 | |||
Aggregate intrinsic values of options exercised | 5,100,000 | $ 9,600,000 | |||
Allocated Share-based Compensation Expense | 3,699,000 | $ 2,770,000 | $ 9,947,000 | $ 8,943,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Estimated Forfeiture Rate | 12.58% | 14.01% | |||
Stock Options [Member] | |||||
Allocated Share-based Compensation Expense | 100,000 | $ 100,000 | $ 300,000 | $ 600,000 | |
Unrecognized compensation cost related to non-vested awards granted | $ 700,000 | $ 700,000 | $ 1,100,000 | ||
Weighted-average period to recognize compensation cost (in years) | 2 years 11 months 23 days |
Stock Options And Employee St59
Stock Options And Employee Stock Purchase Plan (Restricted Stock) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Compensation cost recognized | $ 3,699,000 | $ 2,770,000 | $ 9,947,000 | $ 8,943,000 | |
Allocated Share-based Compensation Expense | 3,699,000 | 2,770,000 | 9,947,000 | 8,943,000 | |
Restricted Stock And Restricted Stock Unit (RSU) [Member] | |||||
Compensation cost recognized | 3,600,000 | 2,600,000 | 9,600,000 | 8,300,000 | |
Allocated Share-based Compensation Expense | 3,600,000 | $ 2,600,000 | 9,600,000 | $ 8,300,000 | |
Unrecognized compensation cost related to non-vested awards granted | $ 41,700,000 | $ 41,700,000 | $ 34,500,000 | ||
Restricted Stock [Member] | |||||
Nonvested at January 1, 2016 | 704,804 | ||||
Shares, Granted | 291,914 | ||||
Shares, Vested | (159,035) | ||||
Shares, Canceled | (34,700) | ||||
Nonvested at September 30, 2016 | 802,983 | 802,983 | |||
Weighted-Average Grant-Date Fair Value, Nonvested at January 1, 2016 | $ 39.08 | ||||
Weighted-Average Grant-Date Fair Value, Granted | 40.82 | ||||
Weighted-Average Grant-Date Fair Value, Vested | 44.53 | ||||
Weighted-Average Grant-Date Fair Value, Canceled | 66.31 | ||||
Weighted-Average Grant-Date Fair Value, Nonvested at September 30, 2016 | $ 37.46 | $ 37.46 | |||
Weighted-average period to recognize compensation cost (in years) | 3 years 3 months 4 days | ||||
Restricted Stock Units (RSUs) [Member] | |||||
Nonvested at January 1, 2016 | 56,245 | ||||
Shares, Granted | 21,250 | ||||
Shares, Vested | (10,755) | ||||
Shares, Canceled | (11,200) | ||||
Nonvested at September 30, 2016 | 55,540 | 55,540 | |||
Share Based Compensation Equity Awards Other Than Options Expected To Vest Shares | 43,475 | ||||
Weighted-average period to recognize compensation cost (in years) | 3 years 4 months 2 days | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms | 1 year 11 months 12 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 8 months 12 days | ||||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Expected To Vest Intrinsic Value | $ 2,895,863 | $ 2,895,863 | |||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Outstanding, Aggregate Intrinsic Value | $ 3,699,519 | $ 3,699,519 |
Stock Options And Employee St60
Stock Options And Employee Stock Purchase Plan Stock Options and Employee Stock Purchase Plan (Performance Awards) (Details) (Details) - Restricted (Performance) Stock [Member] - $ / shares | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | May 09, 2016 | |
Shares, Granted | 106,780 | 0 | |
Share Price | $ 63.73 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 29.80% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.51% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share Reconciliation [Abstract] | ||||
Net Income (Loss) Attributable to Parent | $ 45,569 | $ 37,375 | $ 109,281 | $ 98,169 |
Undistributed Earnings (Loss) Allocated to Participating Securities, Basic | 718 | 611 | 1,610 | 1,620 |
Net earnings available to common shareholders | $ 44,851 | $ 36,764 | $ 107,671 | $ 96,549 |
Weighted-average outstanding shares of common stock - basic | 47,310,011 | 47,696,224 | 47,775,798 | 47,553,075 |
Dilutive effect of equity incentive plans | 184,733 | 257,647 | 208,974 | 224,547 |
Incremental Common Shares Attributable to Dilutive Effect of Contingently Issuable Shares | 0 | 0 | 12,902 | 0 |
Weighted-average outstanding shares of common stock - diluted | 47,494,744 | 47,953,871 | 47,997,674 | 47,777,622 |
Basic | $ 0.95 | $ 0.77 | $ 2.25 | $ 2.03 |
Diluted | $ 0.94 | $ 0.77 | $ 2.24 | $ 2.02 |
Share options excluded from the computation of diluted earnings per share | 62,000 | 0 | 62,000 | 62,000 |
Segment and Geographic Inform62
Segment and Geographic Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Total revenues | $ 210,116 | $ 178,701 | $ 622,418 | $ 515,992 | |
United States | 354,287 | 354,287 | $ 377,273 | ||
Total long-lived assets | 354,287 | 354,287 | 377,273 | ||
UNITED STATES | |||||
Total revenues | 142,691 | 119,177 | 424,804 | 349,226 | |
United States | 257,217 | 257,217 | 271,796 | ||
Total long-lived assets | 257,217 | 257,217 | 271,796 | ||
CANADA | |||||
Total revenues | 19,939 | 18,836 | 57,205 | 55,922 | |
IRELAND | |||||
Total revenues | 18,068 | 11,363 | 54,517 | 32,118 | |
All Other Countries [Member] | |||||
Total revenues | 29,418 | $ 29,325 | 85,892 | $ 78,726 | |
United States | 97,070 | 97,070 | 105,477 | ||
Total long-lived assets | $ 97,070 | $ 97,070 | $ 105,477 |
Segment Information Reportable
Segment Information Reportable Segment Information (Reconciliation of Total Segment Operating Income to Consolidated Operating Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 210,116 | $ 178,701 | $ 622,418 | $ 515,992 |
Direct Costs By Segment | 143,372 | 114,587 | 433,731 | 338,563 |
Income from operations | 62,122 | 55,733 | 174,405 | 146,329 |
Global Operating Costs | 4,667 | 8,428 | 14,418 | 31,269 |
Depreciation, Depletion and Amortization, Nonproduction | 30,336 | 20,455 | 88,569 | 63,635 |
Business Cloud Services Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 143,342 | 126,436 | 423,941 | 369,685 |
Direct Costs By Segment | 90,485 | 69,617 | 268,333 | 213,518 |
Income from operations | 52,857 | 56,819 | 155,608 | 156,167 |
Depreciation, Depletion and Amortization, Nonproduction | 20,218 | 12,961 | 58,971 | 41,733 |
Business Cloud Services Segment [Member] | Cloud Connect [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 92,599 | 89,511 | 275,700 | 264,987 |
Income from operations | 43,503 | 48,346 | 126,598 | 136,909 |
Depreciation, Depletion and Amortization, Nonproduction | 5,950 | 5,309 | 19,096 | 16,287 |
Business Cloud Services Segment [Member] | Cloud Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 49,624 | 35,819 | 144,853 | 100,050 |
Income from operations | 10,350 | 9,459 | 31,974 | 21,808 |
Depreciation, Depletion and Amortization, Nonproduction | 12,826 | 6,030 | 35,327 | 19,810 |
Business Cloud Services Segment [Member] | Intellectual Property [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 1,119 | 1,106 | 3,388 | 4,648 |
Income from operations | (996) | (986) | (2,964) | (2,550) |
Depreciation, Depletion and Amortization, Nonproduction | 1,442 | 1,622 | 4,548 | 5,636 |
Digital Media Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 66,819 | 52,312 | 198,613 | 146,476 |
Direct Costs By Segment | 52,887 | 44,970 | 165,398 | 125,045 |
Income from operations | 13,932 | 7,342 | 33,215 | 21,431 |
Depreciation, Depletion and Amortization, Nonproduction | 10,118 | 7,280 | 29,598 | 21,303 |
Intersegment Elimination [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | (45) | (47) | (136) | (169) |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Income from operations | 66,789 | 64,161 | 188,823 | 177,598 |
Depreciation, Depletion and Amortization, Nonproduction | $ 30,336 | $ 20,241 | $ 88,569 | $ 63,036 |
Segment Information Reportabl64
Segment Information Reportable Segment Information (Total Assets, Capital Expenditures, Depreciation And Amortization) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Total assets | $ 1,769,145 | $ 1,769,145 | $ 1,783,719 | ||
Property, Plant and Equipment, Additions | 17,447 | $ 11,927 | |||
Depreciation, Depletion and Amortization, Nonproduction | 30,336 | $ 20,455 | 88,569 | 63,635 | |
Business Cloud Services Segment [Member] | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Total assets | 1,034,687 | 1,034,687 | 1,017,676 | ||
Property, Plant and Equipment, Additions | 6,251 | 6,078 | |||
Depreciation, Depletion and Amortization, Nonproduction | 20,218 | 12,961 | 58,971 | 41,733 | |
Digital Media Segment [Member] | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Total assets | 582,352 | 582,352 | 427,647 | ||
Property, Plant and Equipment, Additions | 11,196 | 5,528 | |||
Depreciation, Depletion and Amortization, Nonproduction | 10,118 | 7,280 | 29,598 | 21,303 | |
Operating Segments [Member] | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Total assets | 1,617,039 | 1,617,039 | 1,445,323 | ||
Property, Plant and Equipment, Additions | 17,447 | 11,606 | |||
Depreciation, Depletion and Amortization, Nonproduction | 30,336 | 20,241 | 88,569 | 63,036 | |
Corporate [Member] | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Total assets | 152,106 | 152,106 | $ 338,396 | ||
Property, Plant and Equipment, Additions | 0 | 321 | |||
Depreciation, Depletion and Amortization, Nonproduction | $ 0 | $ 214 | $ 0 | $ 599 |
Unrestricted Subsidiaries Unres
Unrestricted Subsidiaries Unrestricted Subsidiaries (Financial Position) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Cash and cash equivalents | $ 285,563 | $ 255,530 | $ 272,368 | $ 433,663 | |
Accounts receivable | 114,581 | 114,680 | |||
Prepaid expenses and other current assets | 26,567 | 25,722 | |||
Deferred income taxes | 0 | 7,218 | |||
Total current assets | 466,619 | 482,805 | |||
Property and equipment, net | 61,437 | 57,442 | |||
Trade names, net | 118,891 | 118,965 | |||
Patent and patent licenses, net | 14,441 | 18,841 | |||
Customer Relationships, Net | 175,434 | 197,319 | |||
Goodwill | 853,791 | 807,661 | |||
Other purchased intangibles, net | 16,888 | 17,516 | |||
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 4,454 | 0 | |||
Other assets | 3,769 | 4,607 | |||
Total assets | 1,769,145 | 1,783,719 | |||
Accounts payable and accrued expenses | 101,830 | 114,384 | |||
Income taxes payable | 2,207 | 5,589 | |||
Deferred revenue, current | 76,259 | 76,104 | |||
Deferred Tax Liabilities, Net, Current | 0 | 363 | |||
Total current liabilities | 180,487 | 196,654 | |||
Deferred income taxes | 39,975 | 43,989 | |||
Other long-term liabilities | 4,445 | 18,228 | |||
Total liabilities | 870,951 | 893,511 | |||
Commitments and contingencies | 0 | 0 | |||
Common Stock, Value, Issued | 472 | 479 | |||
Additional paid-in capital | 304,385 | 292,064 | |||
Retained Earnings (Accumulated Deficit) | 634,386 | 626,789 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (41,049) | $ (38,472) | (29,124) | ||
Stockholders' Equity Attributable to Parent | 898,194 | 890,208 | |||
Total liabilities and stockholders' equity | 1,769,145 | 1,783,719 | |||
Unrestricted Subsidiaries [Member] | |||||
Cash and cash equivalents | 46,053 | 16,482 | |||
Accounts receivable | 67,857 | 79,283 | |||
Prepaid expenses and other current assets | 5,648 | 5,437 | |||
Deferred income taxes | 0 | 3,382 | |||
Total current assets | 119,558 | 104,584 | |||
Property and equipment, net | 28,999 | 25,353 | |||
Trade names, net | 71,322 | 73,034 | |||
Patent and patent licenses, net | 13,779 | 18,071 | |||
Customer Relationships, Net | 54,765 | 68,317 | |||
Goodwill | 299,851 | 304,943 | |||
Other purchased intangibles, net | 7,224 | 7,810 | |||
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 885 | 2,373 | |||
Other assets | 3,039 | 0 | |||
Total assets | 599,422 | 604,485 | |||
Accounts payable and accrued expenses | 78,942 | 88,580 | |||
Deferred revenue, current | 8,128 | 6,554 | |||
Total current liabilities | 87,070 | 95,134 | |||
Deferred income taxes | 6,928 | 11,270 | |||
Other long-term liabilities | 1,867 | 13,546 | |||
Total liabilities | 258,527 | 274,950 | |||
Additional paid-in capital | 320,692 | 319,728 | |||
Retained Earnings (Accumulated Deficit) | 21,968 | 11,552 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (1,765) | (1,745) | |||
Stockholders' Equity Attributable to Parent | 340,895 | 329,535 | |||
Total liabilities and stockholders' equity | 599,422 | 604,485 | |||
Notes Payable, Related Parties, Noncurrent | $ 162,662 | $ 155,000 |
Unrestricted Subsidiaries Unr66
Unrestricted Subsidiaries Unrestricted Subsidiaries (Results of Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Total revenues | $ 210,116 | $ 178,701 | $ 622,418 | $ 515,992 |
Cost of revenues | 36,992 | 30,669 | 106,870 | 88,350 |
Gross Profit | 173,124 | 148,032 | 515,548 | 427,642 |
Selling and Marketing Expense | 46,425 | 38,808 | 143,155 | 116,819 |
Research and Development Expense | 8,965 | 8,289 | 27,165 | 25,704 |
General and Administrative Expense | 55,612 | 45,202 | 170,823 | 138,790 |
Operating Expenses | 111,002 | 92,299 | 341,143 | 281,313 |
Income from operations | 62,122 | 55,733 | 174,405 | 146,329 |
Interest expense (income), net | 10,436 | 10,259 | 30,971 | 31,453 |
Other expense (income), net | (9,718) | 1,086 | (9,805) | 390 |
Income (loss) before income taxes | 61,404 | 44,388 | 153,239 | 114,486 |
Income Tax Expense (Benefit) | 15,835 | 7,013 | 43,958 | 16,317 |
Net Income (Loss) Attributable to Parent | 45,569 | 37,375 | 109,281 | 98,169 |
Unrestricted Subsidiaries [Member] | ||||
Total revenues | 66,819 | 52,334 | 198,661 | 147,858 |
Cost of revenues | 5,618 | 5,922 | 16,489 | 15,293 |
Gross Profit | 61,201 | 46,412 | 182,172 | 132,565 |
Selling and Marketing Expense | 27,394 | 19,053 | 81,099 | 55,896 |
Research and Development Expense | 2,791 | 1,916 | 8,443 | 5,984 |
General and Administrative Expense | 19,200 | 20,172 | 65,724 | 55,070 |
Operating Expenses | 49,385 | 41,141 | 155,266 | 116,950 |
Income from operations | 11,816 | 5,271 | 26,906 | 15,615 |
Interest expense (income), net | 4,364 | 2,698 | 12,977 | 8,016 |
Other expense (income), net | (2,468) | 430 | (1,982) | 529 |
Income (loss) before income taxes | 9,920 | 2,143 | 15,911 | 7,070 |
Income Tax Expense (Benefit) | 3,223 | 2,224 | 5,495 | 5,421 |
Net Income (Loss) Attributable to Parent | $ 6,697 | $ (81) | $ 10,416 | $ 1,649 |
Accumulated Other Comprehensi67
Accumulated Other Comprehensive Income Roll Forward (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Jun. 30, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) Roll Forward [Line Items] | ||||||
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 | (3,151) | (3,108) | ||||
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | 90 | 90 | $ 2,339 | $ 2,449 | ||
Unrealized gain on available-for-sale investments, net of tax (benefit) | 902 | 749 | ||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | (328) | (9,566) | ||||
Other Comprehensive Income Loss Arising During Period Total Net of Tax | 574 | (8,817) | ||||
Foreign currency translation adjustment | (328) | $ (4,652) | (9,566) | $ (12,777) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance | (38,472) | (29,124) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance | (41,049) | (41,049) | ||||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | (2,249) | (1,057) | (2,359) | (4,611) | ||
Other Comprehensive Income (Loss), Net of Tax | (2,577) | $ (5,709) | (11,925) | $ (17,388) | ||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | $ (41,139) | $ (41,139) | $ (40,811) | $ (31,573) |
Accumulated Other Comprehensi68
Accumulated Other Comprehensive Income (Reclassification out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
ReclassificationOutOfAccumulatedOtherComprehensiveIncomeTableTextBlock [Line Items] | ||||
Other expense (income), net | $ (9,718) | $ 1,086 | $ (9,805) | $ 390 |
Income Tax Expense (Benefit) | 15,835 | $ 7,013 | 43,958 | $ 16,317 |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | (3,151) | (3,108) | ||
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 | (3,151) | (3,108) | ||
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||||
ReclassificationOutOfAccumulatedOtherComprehensiveIncomeTableTextBlock [Line Items] | ||||
Other expense (income), net | (5,082) | 5,013 | ||
Income Tax Expense (Benefit) | $ 1,931 | $ 1,905 |
Condensed Consolidating Finan69
Condensed Consolidating Financials Condensed Balance Sheet (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
ASSETS | |||||
Cash and cash equivalents | $ 285,563 | $ 255,530 | $ 272,368 | $ 433,663 | |
Short-term investments | 39,908 | 79,655 | |||
Accounts receivable, net of allowances of $6,643 and $4,261, respectively | 114,581 | 114,680 | |||
Prepaid expenses and other current assets | 26,567 | 25,722 | |||
Deferred income taxes | 0 | 7,218 | |||
Due from Affiliate, Current | 0 | 0 | |||
Total current assets | 466,619 | 482,805 | |||
Long-term investments | 53,421 | 78,563 | |||
Property and equipment, net | 61,437 | 57,442 | |||
Trade names, net | 118,891 | 118,965 | |||
Patent and patent licenses, net | 14,441 | 18,841 | |||
Customer Relationships, Net | 175,434 | 197,319 | |||
Goodwill | 853,791 | 807,661 | |||
Other purchased intangibles, net | 16,888 | 17,516 | |||
Investments in and Advances to Affiliates, Amount of Equity | 0 | 0 | |||
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 4,454 | 0 | |||
Other assets | 3,769 | 4,607 | |||
Total assets | 1,769,145 | 1,783,719 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Accounts payable and accrued expenses | 101,830 | 114,384 | |||
Income taxes payable | 2,207 | 5,589 | |||
Deferred revenue, current | 76,259 | 76,104 | |||
Capital Lease Obligations, Current | 191 | 214 | |||
Deferred Tax Liabilities, Net, Current | 0 | 363 | |||
Due to Affiliate, Current | 0 | 0 | |||
Total current liabilities | 180,487 | 196,654 | |||
Long-term Debt | 599,260 | 592,037 | |||
Capital Lease Obligations, Noncurrent | 12 | 148 | |||
Liability for uncertain tax positions | 44,418 | 35,917 | |||
Deferred income taxes | 39,975 | 43,989 | |||
Deferred revenue, non-current | 2,354 | 6,538 | |||
Other long-term liabilities | 4,445 | 18,228 | |||
Total liabilities | 870,951 | 893,511 | |||
Commitments and contingencies | 0 | 0 | |||
Common Stock, Value, Issued | 472 | 479 | |||
Additional paid-in capital | 304,385 | 292,064 | |||
Retained Earnings (Accumulated Deficit) | 634,386 | 626,789 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (41,049) | $ (38,472) | (29,124) | ||
Stockholders' Equity Attributable to Parent | 898,194 | 890,208 | |||
Total liabilities and stockholders' equity | 1,769,145 | 1,783,719 | |||
Series A Preferred Stock [Member] | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Preferred stock, $0.01 par value | 0 | 0 | |||
j2 Global, Inc. [Member] | |||||
ASSETS | |||||
Cash and cash equivalents | 46,203 | 55,516 | 109,554 | 226,790 | |
Short-term investments | 39,845 | 79,595 | |||
Accounts receivable, net of allowances of $6,643 and $4,261, respectively | 0 | 0 | |||
Prepaid expenses and other current assets | 32,347 | 6,887 | |||
Deferred income taxes | 0 | ||||
Due from Affiliate, Current | 130,000 | 117,000 | |||
Total current assets | 248,395 | 258,998 | |||
Long-term investments | 53,421 | 78,563 | |||
Property and equipment, net | 0 | 0 | |||
Trade names, 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 | 1,062,379 | 1,051,927 | |||
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 0 | 0 | |||
Other assets | 0 | 8,219 | |||
Total assets | 1,364,195 | 1,397,707 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Accounts payable and accrued expenses | 6,461 | 4,573 | |||
Income taxes payable | 0 | 0 | |||
Deferred revenue, current | 0 | 0 | |||
Capital Lease Obligations, Current | 0 | 0 | |||
Deferred Tax Liabilities, Net, Current | 511 | ||||
Due to Affiliate, Current | 77,121 | 121,263 | |||
Total current liabilities | 83,582 | 126,347 | |||
Long-term Debt | 352,858 | 354,437 | |||
Capital Lease Obligations, Noncurrent | 0 | 0 | |||
Liability for uncertain tax positions | 0 | 0 | |||
Deferred income taxes | 29,111 | 24,936 | |||
Deferred revenue, non-current | 0 | 0 | |||
Other long-term liabilities | 1,522 | 1,779 | |||
Total liabilities | 467,073 | 507,499 | |||
Commitments and contingencies | 0 | 0 | |||
Preferred stock, $0.01 par value | 0 | 0 | |||
Common Stock, Value, Issued | 472 | 479 | |||
Additional paid-in capital | 460,276 | 292,064 | |||
Retained Earnings (Accumulated Deficit) | 436,285 | 595,216 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 89 | 2,449 | |||
Stockholders' Equity Attributable to Parent | 897,122 | 890,208 | |||
Total liabilities and stockholders' equity | 1,364,195 | 1,397,707 | |||
j2 Cloud Services, LLC [Member] | |||||
ASSETS | |||||
Cash and cash equivalents | 8,433 | 9,975 | 11,854 | 36,810 | |
Short-term investments | 0 | 0 | |||
Accounts receivable, net of allowances of $6,643 and $4,261, respectively | 13,872 | 10,679 | |||
Prepaid expenses and other current assets | 1,846 | 8,500 | |||
Deferred income taxes | 3,316 | ||||
Due from Affiliate, Current | 201,099 | 174,127 | |||
Total current assets | 225,250 | 206,597 | |||
Long-term investments | 0 | 0 | |||
Property and equipment, net | 6,763 | 6,557 | |||
Trade names, net | 10,130 | 10,118 | |||
Patent and patent licenses, net | 637 | 743 | |||
Customer Relationships, Net | 2,543 | 1,193 | |||
Goodwill | 61,419 | 56,296 | |||
Other purchased intangibles, net | 4,438 | 4,218 | |||
Investments in and Advances to Affiliates, Amount of Equity | 723,601 | 1,095,155 | |||
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 22,475 | 14,978 | |||
Other assets | 457 | 1,167 | |||
Total assets | 1,057,713 | 1,397,022 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Accounts payable and accrued expenses | 24,111 | 27,976 | |||
Income taxes payable | 7,138 | 9,573 | |||
Deferred revenue, current | 19,977 | 19,530 | |||
Capital Lease Obligations, Current | 0 | 0 | |||
Deferred Tax Liabilities, Net, Current | 0 | ||||
Due to Affiliate, Current | 0 | 0 | |||
Total current liabilities | 51,226 | 57,079 | |||
Long-term Debt | 246,402 | 246,749 | |||
Capital Lease Obligations, Noncurrent | 0 | 0 | |||
Liability for uncertain tax positions | 44,418 | 35,917 | |||
Deferred income taxes | 0 | 0 | |||
Deferred revenue, non-current | 2,354 | 4,667 | |||
Other long-term liabilities | 581 | 683 | |||
Total liabilities | 344,981 | 345,095 | |||
Commitments and contingencies | 0 | 0 | |||
Preferred stock, $0.01 par value | 0 | 0 | |||
Common Stock, Value, Issued | 0 | 0 | |||
Additional paid-in capital | 89,066 | 238,631 | |||
Retained Earnings (Accumulated Deficit) | 623,518 | 813,058 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 148 | 238 | |||
Stockholders' Equity Attributable to Parent | 712,732 | 1,051,927 | |||
Total liabilities and stockholders' equity | 1,057,713 | 1,397,022 | |||
Non-Guarantor Subsidiaries [Member] | |||||
ASSETS | |||||
Cash and cash equivalents | 230,927 | 190,039 | 150,960 | 170,063 | |
Short-term investments | 63 | 60 | |||
Accounts receivable, net of allowances of $6,643 and $4,261, respectively | 100,714 | 104,131 | |||
Prepaid expenses and other current assets | 17,015 | 14,319 | |||
Deferred income taxes | 4,413 | ||||
Due from Affiliate, Current | 0 | 0 | |||
Total current assets | 348,719 | 312,962 | |||
Long-term investments | 0 | 0 | |||
Property and equipment, net | 54,674 | 50,885 | |||
Trade names, net | 108,761 | 108,847 | |||
Patent and patent licenses, net | 13,804 | 18,098 | |||
Customer Relationships, Net | 172,891 | 196,126 | |||
Goodwill | 792,372 | 751,365 | |||
Other purchased intangibles, net | 12,450 | 13,298 | |||
Investments in and Advances to Affiliates, Amount of Equity | (1,072) | 0 | |||
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 2,284 | (14,978) | |||
Other assets | 3,312 | 4,370 | |||
Total assets | 1,508,195 | 1,440,973 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Accounts payable and accrued expenses | 90,973 | 81,965 | |||
Income taxes payable | 0 | 0 | |||
Deferred revenue, current | 56,282 | 56,574 | |||
Capital Lease Obligations, Current | 191 | 214 | |||
Deferred Tax Liabilities, Net, Current | 363 | ||||
Due to Affiliate, Current | 253,978 | 169,864 | |||
Total current liabilities | 401,424 | 308,980 | |||
Long-term Debt | 0 | 0 | |||
Capital Lease Obligations, Noncurrent | 12 | 148 | |||
Liability for uncertain tax positions | 0 | 0 | |||
Deferred income taxes | 31,169 | 19,053 | |||
Deferred revenue, non-current | 0 | 1,871 | |||
Other long-term liabilities | 2,342 | 15,766 | |||
Total liabilities | 434,947 | 345,818 | |||
Commitments and contingencies | 0 | 0 | |||
Preferred stock, $0.01 par value | 0 | 0 | |||
Common Stock, Value, Issued | 0 | 0 | |||
Additional paid-in capital | 425,550 | 524,031 | |||
Retained Earnings (Accumulated Deficit) | 688,984 | 602,935 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (41,286) | (31,811) | |||
Stockholders' Equity Attributable to Parent | 1,073,248 | 1,095,155 | |||
Total liabilities and stockholders' equity | 1,508,195 | 1,440,973 | |||
Consolidation, Eliminations [Member] | |||||
ASSETS | |||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 | |
Short-term investments | 0 | 0 | |||
Accounts receivable, net of allowances of $6,643 and $4,261, respectively | (5) | (130) | |||
Prepaid expenses and other current assets | (24,641) | (3,984) | |||
Deferred income taxes | (511) | ||||
Due from Affiliate, Current | (331,099) | (291,127) | |||
Total current assets | (355,745) | (295,752) | |||
Long-term investments | 0 | 0 | |||
Property and equipment, net | 0 | 0 | |||
Trade names, 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 | (1,784,908) | (2,147,082) | |||
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | (20,305) | 0 | |||
Other assets | 0 | (9,149) | |||
Total assets | (2,160,958) | (2,451,983) | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Accounts payable and accrued expenses | (19,715) | (130) | |||
Income taxes payable | (4,931) | (3,984) | |||
Deferred revenue, current | 0 | 0 | |||
Capital Lease Obligations, Current | 0 | 0 | |||
Deferred Tax Liabilities, Net, Current | (511) | ||||
Due to Affiliate, Current | (331,099) | (291,127) | |||
Total current liabilities | (355,745) | (295,752) | |||
Long-term Debt | 0 | (9,149) | |||
Capital Lease Obligations, Noncurrent | 0 | 0 | |||
Liability for uncertain tax positions | 0 | 0 | |||
Deferred income taxes | (20,305) | 0 | |||
Deferred revenue, non-current | 0 | 0 | |||
Other long-term liabilities | 0 | 0 | |||
Total liabilities | (376,050) | (304,901) | |||
Commitments and contingencies | 0 | 0 | |||
Preferred stock, $0.01 par value | 0 | 0 | |||
Common Stock, Value, Issued | 0 | 0 | |||
Additional paid-in capital | (670,507) | (762,662) | |||
Retained Earnings (Accumulated Deficit) | (1,114,401) | (1,384,420) | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | |||
Stockholders' Equity Attributable to Parent | (1,784,908) | (2,147,082) | |||
Total liabilities and stockholders' equity | $ (2,160,958) | $ (2,451,983) |
Condensed Consolidating Finan70
Condensed Consolidating Financials Condensed Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Total revenues | $ 210,116 | $ 178,701 | $ 622,418 | $ 515,992 |
Interest expense (income), net | 10,436 | 10,259 | 30,971 | 31,453 |
Other expense (income), net | (9,718) | 1,086 | (9,805) | 390 |
Income Tax Expense (Benefit) | 15,835 | 7,013 | 43,958 | 16,317 |
Cost of revenues | 36,992 | 30,669 | 106,870 | 88,350 |
Gross Profit | 173,124 | 148,032 | 515,548 | 427,642 |
Operating expenses: | ||||
Selling and Marketing Expense | 46,425 | 38,808 | 143,155 | 116,819 |
Research and Development Expense | 8,965 | 8,289 | 27,165 | 25,704 |
General and Administrative Expense | 55,612 | 45,202 | 170,823 | 138,790 |
Operating Expenses | 111,002 | 92,299 | 341,143 | 281,313 |
Income from operations | 62,122 | 55,733 | 174,405 | 146,329 |
Income (Loss) from Subsidiaries, before Tax | 0 | 0 | 0 | 0 |
Income (loss) before income taxes | 61,404 | 44,388 | 153,239 | 114,486 |
Net Income (Loss) Attributable to Parent | 45,569 | 37,375 | 109,281 | 98,169 |
j2 Global, Inc. [Member] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Interest expense (income), net | 1,799 | 3,293 | 5,262 | 8,651 |
Other expense (income), net | (7,500) | (2) | (7,709) | (20) |
Income Tax Expense (Benefit) | 1,127 | (3,117) | (3,247) | (5,192) |
Cost of revenues | 0 | (1) | 0 | 0 |
Gross Profit | 0 | 1 | 0 | 0 |
Operating expenses: | ||||
Selling and Marketing Expense | 0 | 0 | 0 | 0 |
Research and Development Expense | 0 | (2) | 0 | 0 |
General and Administrative Expense | 4,667 | 3,714 | 14,417 | 11,434 |
Operating Expenses | 4,667 | 3,712 | 14,417 | 11,434 |
Income from operations | (4,667) | (3,711) | (14,417) | (11,434) |
Income (Loss) from Subsidiaries, before Tax | 45,662 | 41,260 | 118,004 | 113,042 |
Income (loss) before income taxes | 46,696 | 34,258 | 106,034 | 92,977 |
Net Income (Loss) Attributable to Parent | 45,569 | 37,375 | 109,281 | 98,169 |
j2 Cloud Services, LLC [Member] | ||||
Total revenues | 57,751 | 56,753 | 180,390 | 167,919 |
Interest expense (income), net | 5,199 | 5,179 | 15,624 | 16,079 |
Other expense (income), net | (56) | 37 | (1,070) | 347 |
Income Tax Expense (Benefit) | 7,110 | 3,862 | 24,987 | 7,606 |
Cost of revenues | 19,421 | 29,375 | 53,902 | 60,317 |
Gross Profit | 38,330 | 27,378 | 126,488 | 107,602 |
Operating expenses: | ||||
Selling and Marketing Expense | 10,166 | 9,684 | 31,055 | 29,976 |
Research and Development Expense | 3,097 | 3,646 | 9,316 | 11,264 |
General and Administrative Expense | 5,793 | 5,067 | 15,694 | 20,928 |
Operating Expenses | 19,056 | 18,397 | 56,065 | 62,168 |
Income from operations | 19,274 | 8,981 | 70,423 | 45,434 |
Income (Loss) from Subsidiaries, before Tax | 28,224 | 41,357 | 76,706 | 91,640 |
Income (loss) before income taxes | 42,355 | 45,122 | 132,575 | 120,648 |
Net Income (Loss) Attributable to Parent | 35,245 | 41,260 | 107,588 | 113,042 |
Non-Guarantor Subsidiaries [Member] | ||||
Total revenues | 165,317 | 148,648 | 486,962 | 394,300 |
Interest expense (income), net | 3,438 | 1,787 | 10,085 | 6,723 |
Other expense (income), net | (2,162) | 1,051 | (1,026) | 63 |
Income Tax Expense (Benefit) | 7,598 | 6,268 | 22,218 | 13,903 |
Cost of revenues | 30,479 | 27,948 | 97,767 | 74,091 |
Gross Profit | 134,838 | 120,700 | 389,195 | 320,209 |
Operating expenses: | ||||
Selling and Marketing Expense | 36,303 | 29,171 | 112,235 | 87,012 |
Research and Development Expense | 5,868 | 4,645 | 17,849 | 14,440 |
General and Administrative Expense | 45,152 | 36,421 | 140,712 | 106,428 |
Operating Expenses | 87,323 | 70,237 | 270,796 | 207,880 |
Income from operations | 47,515 | 50,463 | 118,399 | 112,329 |
Income (Loss) from Subsidiaries, before Tax | 0 | 0 | 0 | 0 |
Income (loss) before income taxes | 46,239 | 47,625 | 109,340 | 105,543 |
Net Income (Loss) Attributable to Parent | 38,641 | 41,357 | 87,122 | 91,640 |
Consolidation, Eliminations [Member] | ||||
Total revenues | (12,952) | (26,700) | (44,934) | (46,227) |
Interest expense (income), net | 0 | 0 | 0 | 0 |
Other expense (income), net | 0 | 0 | 0 | 0 |
Income Tax Expense (Benefit) | 0 | 0 | 0 | 0 |
Cost of revenues | (12,908) | (26,653) | (44,799) | (46,058) |
Gross Profit | (44) | (47) | (135) | (169) |
Operating expenses: | ||||
Selling and Marketing Expense | (44) | (47) | (135) | (169) |
Research and Development Expense | 0 | 0 | 0 | 0 |
General and Administrative Expense | 0 | 0 | 0 | 0 |
Operating Expenses | (44) | (47) | (135) | (169) |
Income from operations | 0 | 0 | 0 | 0 |
Income (Loss) from Subsidiaries, before Tax | (73,886) | (82,617) | (194,710) | (204,682) |
Income (loss) before income taxes | (73,886) | (82,617) | (194,710) | (204,682) |
Net Income (Loss) Attributable to Parent | $ (73,886) | $ (82,617) | $ (194,710) | $ (204,682) |
Condensed Consolidating Finan71
Condensed Consolidating Financials Condensed Comprehensive Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Other Comprehensive Income (Loss), Net of Tax | $ (2,577) | $ (5,709) | $ (11,925) | $ (17,388) |
Net Income (Loss) Attributable to Parent | 45,569 | 37,375 | 109,281 | 98,169 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 42,992 | 31,666 | 97,356 | 80,781 |
Total revenues | 210,116 | 178,701 | 622,418 | 515,992 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (328) | (4,652) | (9,566) | (12,777) |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | (2,249) | (1,057) | (2,359) | (4,611) |
j2 Global, Inc. [Member] | ||||
Other Comprehensive Income (Loss), Net of Tax | (2,249) | (1,057) | (2,359) | (4,611) |
Net Income (Loss) Attributable to Parent | 45,569 | 37,375 | 109,281 | 98,169 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 43,320 | 36,318 | 106,922 | 93,558 |
Total revenues | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | (2,249) | (1,057) | (2,359) | (4,611) |
j2 Cloud Services, LLC [Member] | ||||
Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | 0 | 0 |
Net Income (Loss) Attributable to Parent | 35,245 | 41,260 | 107,588 | 113,042 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 35,245 | 41,260 | 107,588 | 113,042 |
Total revenues | 57,751 | 56,753 | 180,390 | 167,919 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | 0 | 0 | 0 | 0 |
Non-Guarantor Subsidiaries [Member] | ||||
Other Comprehensive Income (Loss), Net of Tax | (328) | (4,652) | (9,566) | (12,777) |
Net Income (Loss) Attributable to Parent | 38,641 | 41,357 | 87,122 | 91,640 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 38,313 | 36,705 | 77,556 | 78,863 |
Total revenues | 165,317 | 148,648 | 486,962 | 394,300 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (328) | (4,652) | (9,566) | (12,777) |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | 0 | 0 | 0 | 0 |
Consolidation, Eliminations [Member] | ||||
Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | 0 | 0 |
Net Income (Loss) Attributable to Parent | (73,886) | (82,617) | (194,710) | (204,682) |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | (73,886) | (82,617) | (194,710) | (204,682) |
Total revenues | (12,952) | (26,700) | (44,934) | (46,227) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | $ 0 | $ 0 | $ 0 | $ 0 |
Condensed Consolidating Finan72
Condensed Consolidating Financials Condensed Statement of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net Income (Loss) Attributable to Parent | $ 45,569 | $ 37,375 | $ 109,281 | $ 98,169 | ||
Depreciation and amortization | 88,569 | 63,635 | ||||
Accretion (Amortization) of Discounts and Premiums, Investments | 896 | 871 | ||||
Amortization of financing costs and discounts | 7,224 | 6,774 | ||||
Share-based Compensation | 9,947 | 8,943 | ||||
Excess Tax Benefit from Share-based Compensation, Operating Activities | (2,071) | (4,541) | ||||
Provision for doubtful accounts | 9,072 | 5,015 | ||||
Deferred income taxes | (2,328) | 219 | ||||
(Gain) loss on sale of available-for-sale investments | 7,709 | 37 | ||||
Decrease (increase) in: | ||||||
Increase (Decrease) in Accounts Receivable | (7,631) | (4,296) | ||||
Increase (Decrease) in Prepaid Expense and Other Assets | (663) | 2,815 | ||||
Increase (Decrease) in Other Operating Assets | 937 | (77) | ||||
(Decrease) increase in: | ||||||
Accounts payable and accrued expenses | (4,601) | (5,783) | ||||
Income taxes payable | (927) | (13,565) | ||||
Deferred revenue | (4,134) | (3,727) | ||||
Liability for uncertain tax positions | 8,502 | (9,916) | ||||
Other | (11,824) | 4,074 | ||||
Net Cash Provided by (Used in) Operating Activities | 192,540 | 148,573 | ||||
Cash flows from investing activities: | ||||||
Sales of available-for-sale investments | 145,005 | 87,976 | ||||
Payments to Acquire Available-for-sale Securities | (75,834) | (78,281) | ||||
Payments to Acquire Property, Plant, and Equipment | (17,447) | (11,927) | ||||
Payments to Acquire Businesses, Net of Cash Acquired | (91,401) | (259,838) | ||||
Payments to Acquire Intangible Assets | (2,014) | (1,258) | ||||
Intercompany Investing Activities | 0 | |||||
Net Cash Provided by (Used in) Investing Activities | (41,691) | (263,325) | ||||
Cash flows from financing activities: | ||||||
Payments for Repurchase of Common Stock | (56,083) | (3,159) | ||||
Issuance of common stock under employee stock purchase plan | 191 | 196 | ||||
Exercise of stock options | 3,272 | 4,618 | ||||
Payments of Dividends | (48,768) | (43,526) | ||||
Excess tax benefits from share-based compensation | 2,071 | 4,541 | ||||
Deferred payments for acquisitions | (18,939) | (5,411) | ||||
Proceeds from (Payments for) Other Financing Activities | (391) | (250) | ||||
Intercompany | 0 | 0 | ||||
Net Cash Provided by (Used in) Financing Activities | (118,647) | (42,991) | ||||
Effect of exchange rate changes on cash and cash equivalents | (2,169) | (3,552) | ||||
Cash and Cash Equivalents, Period Increase (Decrease) | 30,033 | (161,295) | ||||
Cash and cash equivalents | 285,563 | 272,368 | 285,563 | 272,368 | $ 255,530 | $ 433,663 |
Maturity of certificates of deposit | 0 | 65 | ||||
Payments to Acquire Other Investments | 0 | (62) | ||||
j2 Global, Inc. [Member] | ||||||
Net Income (Loss) Attributable to Parent | 45,569 | 37,375 | 109,281 | 98,169 | ||
(Decrease) increase in: | ||||||
Net Cash Provided by (Used in) Operating Activities | (4,416) | (21,341) | ||||
Cash flows from investing activities: | ||||||
Sales of available-for-sale investments | 145,005 | 87,976 | ||||
Payments to Acquire Available-for-sale Securities | (75,834) | (78,281) | ||||
Payments to Acquire Property, Plant, and Equipment | 0 | 0 | ||||
Payments to Acquire Businesses, Net of Cash Acquired | 0 | 0 | ||||
Payments to Acquire Intangible Assets | 0 | 0 | ||||
Intercompany Investing Activities | (53,317) | |||||
Net Cash Provided by (Used in) Investing Activities | 69,171 | (43,619) | ||||
Cash flows from financing activities: | ||||||
Payments for Repurchase of Common Stock | (56,083) | (3,159) | ||||
Issuance of common stock under employee stock purchase plan | 191 | 196 | ||||
Exercise of stock options | 3,272 | 4,618 | ||||
Payments of Dividends | (48,768) | (43,526) | ||||
Excess tax benefits from share-based compensation | 2,071 | 4,541 | ||||
Deferred payments for acquisitions | 0 | 0 | ||||
Proceeds from (Payments for) Other Financing Activities | 0 | 0 | ||||
Intercompany | 25,463 | (13,713) | ||||
Net Cash Provided by (Used in) Financing Activities | (73,854) | (51,043) | ||||
Effect of exchange rate changes on cash and cash equivalents | (214) | (1,233) | ||||
Cash and Cash Equivalents, Period Increase (Decrease) | (9,313) | (117,236) | ||||
Cash and cash equivalents | 46,203 | 109,554 | 46,203 | 109,554 | 55,516 | 226,790 |
Maturity of certificates of deposit | 65 | |||||
Payments to Acquire Other Investments | (62) | |||||
j2 Cloud Services, LLC [Member] | ||||||
Net Income (Loss) Attributable to Parent | 35,245 | 41,260 | 107,588 | 113,042 | ||
(Decrease) increase in: | ||||||
Net Cash Provided by (Used in) Operating Activities | 35,756 | 34,297 | ||||
Cash flows from investing activities: | ||||||
Sales of available-for-sale investments | 0 | 0 | ||||
Payments to Acquire Available-for-sale Securities | 0 | 0 | ||||
Payments to Acquire Property, Plant, and Equipment | (2,458) | (1,355) | ||||
Payments to Acquire Businesses, Net of Cash Acquired | (6,292) | 47 | ||||
Payments to Acquire Intangible Assets | (106) | 166 | ||||
Intercompany Investing Activities | 53,317 | |||||
Net Cash Provided by (Used in) Investing Activities | (8,856) | 52,175 | ||||
Cash flows from financing activities: | ||||||
Payments for Repurchase of Common Stock | 0 | 0 | ||||
Issuance of common stock under employee stock purchase plan | 0 | 0 | ||||
Exercise of stock options | 0 | 0 | ||||
Payments of Dividends | 0 | 0 | ||||
Excess tax benefits from share-based compensation | 0 | 0 | ||||
Deferred payments for acquisitions | (1,378) | 0 | ||||
Proceeds from (Payments for) Other Financing Activities | 0 | 0 | ||||
Intercompany | (26,973) | (103,533) | ||||
Net Cash Provided by (Used in) Financing Activities | (28,351) | (103,533) | ||||
Effect of exchange rate changes on cash and cash equivalents | (91) | (7,895) | ||||
Cash and Cash Equivalents, Period Increase (Decrease) | (1,542) | (24,956) | ||||
Cash and cash equivalents | 8,433 | 11,854 | 8,433 | 11,854 | 9,975 | 36,810 |
Maturity of certificates of deposit | 0 | |||||
Payments to Acquire Other Investments | 0 | |||||
Non-Guarantor Subsidiaries [Member] | ||||||
Net Income (Loss) Attributable to Parent | 38,641 | 41,357 | 87,122 | 91,640 | ||
(Decrease) increase in: | ||||||
Net Cash Provided by (Used in) Operating Activities | 161,200 | 135,617 | ||||
Cash flows from investing activities: | ||||||
Sales of available-for-sale investments | 0 | 0 | ||||
Payments to Acquire Available-for-sale Securities | 0 | 0 | ||||
Payments to Acquire Property, Plant, and Equipment | (14,989) | (10,572) | ||||
Payments to Acquire Businesses, Net of Cash Acquired | (85,109) | (259,885) | ||||
Payments to Acquire Intangible Assets | (1,908) | (1,424) | ||||
Intercompany Investing Activities | 0 | |||||
Net Cash Provided by (Used in) Investing Activities | (102,006) | (271,881) | ||||
Cash flows from financing activities: | ||||||
Payments for Repurchase of Common Stock | 0 | 0 | ||||
Issuance of common stock under employee stock purchase plan | 0 | 0 | ||||
Exercise of stock options | 0 | 0 | ||||
Payments of Dividends | 0 | 0 | ||||
Excess tax benefits from share-based compensation | 0 | 0 | ||||
Deferred payments for acquisitions | (17,561) | (5,411) | ||||
Proceeds from (Payments for) Other Financing Activities | (391) | (250) | ||||
Intercompany | 1,510 | 117,246 | ||||
Net Cash Provided by (Used in) Financing Activities | (16,442) | 111,585 | ||||
Effect of exchange rate changes on cash and cash equivalents | (1,864) | 5,576 | ||||
Cash and Cash Equivalents, Period Increase (Decrease) | 40,888 | (19,103) | ||||
Cash and cash equivalents | 230,927 | 150,960 | 230,927 | 150,960 | 190,039 | 170,063 |
Maturity of certificates of deposit | 0 | |||||
Payments to Acquire Other Investments | 0 | |||||
Consolidation, Eliminations [Member] | ||||||
Net Income (Loss) Attributable to Parent | (73,886) | (82,617) | (194,710) | (204,682) | ||
(Decrease) increase in: | ||||||
Net Cash Provided by (Used in) Operating Activities | 0 | 0 | ||||
Cash flows from investing activities: | ||||||
Sales of available-for-sale investments | 0 | 0 | ||||
Payments to Acquire Available-for-sale Securities | 0 | 0 | ||||
Payments to Acquire Property, Plant, and Equipment | 0 | 0 | ||||
Payments to Acquire Businesses, Net of Cash Acquired | 0 | 0 | ||||
Payments to Acquire Intangible Assets | 0 | 0 | ||||
Intercompany Investing Activities | 0 | |||||
Net Cash Provided by (Used in) Investing Activities | 0 | 0 | ||||
Cash flows from financing activities: | ||||||
Payments for Repurchase of Common Stock | 0 | 0 | ||||
Issuance of common stock under employee stock purchase plan | 0 | 0 | ||||
Exercise of stock options | 0 | 0 | ||||
Payments of Dividends | 0 | 0 | ||||
Excess tax benefits from share-based compensation | 0 | 0 | ||||
Deferred payments for acquisitions | 0 | 0 | ||||
Proceeds from (Payments for) Other Financing Activities | 0 | 0 | ||||
Intercompany | 0 | 0 | ||||
Net Cash Provided by (Used in) Financing Activities | 0 | 0 | ||||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | ||||
Cash and Cash Equivalents, Period Increase (Decrease) | 0 | 0 | ||||
Cash and cash equivalents | $ 0 | $ 0 | $ 0 | 0 | $ 0 | $ 0 |
Maturity of certificates of deposit | 0 | |||||
Payments to Acquire Other Investments | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Nov. 01, 2016 | Aug. 02, 2016 | May 05, 2016 | Feb. 10, 2016 | Nov. 03, 2015 | Aug. 03, 2015 | May 06, 2015 | Feb. 10, 2015 | Sep. 30, 2016 | Oct. 21, 2016 | Dec. 31, 2015 |
Subsequent Event [Line Items] | |||||||||||
Stock Repurchased | 2.1 | ||||||||||
Dividends declared date | Aug. 2, 2016 | May 5, 2016 | Feb. 10, 2016 | Nov. 3, 2015 | Aug. 3, 2015 | May 6, 2015 | Feb. 10, 2015 | ||||
Dividend amount to be paid, per common share | $ 0.3450 | $ 0.3350 | $ 0.3250 | $ 0.3150 | $ 0.3075 | $ 0.3000 | $ 0.2925 | ||||
Date dividend is payable | Sep. 1, 2016 | Jun. 2, 2016 | Mar. 10, 2016 | Dec. 3, 2015 | Sep. 1, 2015 | Jun. 3, 2015 | Mar. 9, 2015 | ||||
Date shareholders must be on record for dividend | Aug. 17, 2016 | May 18, 2016 | Feb. 23, 2016 | Nov. 17, 2015 | Aug. 17, 2015 | May 19, 2015 | Feb. 23, 2015 | ||||
Common stock, par value | $ 0.01 | $ 0.01 | |||||||||
Dividend Declared [Member] | Subsequent Event [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Dividends declared date | Nov. 1, 2016 | ||||||||||
Dividend amount to be paid, per common share | $ 0.3550 | ||||||||||
Date dividend is payable | Dec. 5, 2016 | ||||||||||
Date shareholders must be on record for dividend | Nov. 18, 2016 | ||||||||||
2012 Repurchase Program [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Stock Repurchased | 0 | ||||||||||
Maximum number of shares authorized to be repurchased | 5 | ||||||||||
EVDY [Member] | Subsequent Event [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Common stock, par value | $ 0.01 | ||||||||||
Business Acquisition, Purchase Price | $ 465 | ||||||||||
Business Acquisition, Share Price | $ 10.50 |