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 8.0% senior unsecured notes, pursuant to which it fully and unconditionally guaranteed, on an unsecured basis, the full and punctual payment of the 8.0% senior unsecured notes issued by its wholly owned subsidiary, j2 Cloud. j2 Cloud Services, LLC was subject to restrictions on dividends in its existing indenture with respect to the 8.0% senior unsecured notes until their redemption in full in August 2017 (see Note 8 - Long-Term Debt). While substantially all of the Company’s assets are owned directly or indirectly by j2 Cloud Services, LLC, those contractual provisions did not, as of June 30, 2017, 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 CONSOLIDATING BALANCE SHEET June 30, 2017 (Unaudited, in thousands except share and per share data) BALANCE SHEET j2 Global, Inc. j2 Cloud Services Non-guarantor Subsidiaries Consolidating Adjustments j2 Global Consolidated ASSETS Cash and cash equivalents $ 4,248 $ 169,330 $ 157,165 $ — $ 330,743 Restricted cash — 265,000 — — 265,000 Short-term investments — — 65 — 65 Accounts receivable, net — 11,678 169,996 (146 ) 181,528 Prepaid expenses and other current assets 41,434 1,682 21,082 (41,844 ) 22,354 Current assets held for sale — — 5,770 — 5,770 Intercompany receivable 687,229 530,478 157,243 (1,374,950 ) — Total current assets 732,911 978,168 511,321 (1,416,940 ) 805,460 Property and equipment, net — 5,715 65,458 — 71,173 Trade names, net — 10,767 99,677 — 110,444 Patent and patent licenses, net — 534 11,374 — 11,908 Customer relationships, net — 17,491 175,689 — 193,180 Goodwill — 83,298 1,056,128 — 1,139,426 Other purchased intangibles, net — 7,114 145,439 — 152,553 Investment in subsidiaries 1,167,712 803,353 (1,071 ) (1,969,994 ) — Deferred income taxes, non-current — 22,933 3,391 (19,096 ) 7,228 Other assets — 435 6,134 — 6,569 Non-current assets held for sale — — 29,720 — 29,720 Total assets $ 1,900,623 $ 1,929,808 $ 2,103,260 $ (3,406,030 ) $ 2,527,661 LIABILITIES AND STOCKHOLDERS’ EQUITY Accounts payable and accrued expenses $ 5,567 $ 42,227 $ 129,669 $ (41,990 ) $ 135,473 Income taxes payable — 101,314 39 (88,508 ) 12,845 Deferred revenue, current — 20,966 67,187 — 88,153 Current maturities of long-term debt — 246,652 — — 246,652 Other current liabilities — — 24 — 24 Current liabilities held for sale — — 523 — 523 Intercompany payable 547,092 — 739,350 (1,286,442 ) — Total current liabilities 552,659 411,159 936,792 (1,416,940 ) 483,670 Long-term debt 359,820 636,557 — — 996,377 Deferred revenue, non-current — 57 — — 57 Liability for uncertain tax positions — 40,254 6,734 — 46,988 Deferred income taxes, non-current 32,515 — 21,345 (19,096 ) 34,764 Other long-term liabilities 1,141 1,972 2,030 — 5,143 Non-current liabilities held for sale — — 5,103 — 5,103 Total liabilities 946,135 1,089,999 972,004 (1,436,036 ) 1,572,102 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 476 — — — 476 Additional paid-in capital 470,681 89,066 424,399 (669,356 ) 314,790 Retained earnings 483,331 750,667 745,669 (1,300,638 ) 679,029 Accumulated other comprehensive income (loss) — 76 (38,812 ) — (38,736 ) Total stockholders’ equity 954,488 839,809 1,131,256 (1,969,994 ) 955,559 Total liabilities and stockholders’ equity $ 1,900,623 $ 1,929,808 $ 2,103,260 $ (3,406,030 ) $ 2,527,661 j2 GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2016 (Unaudited, in thousands except share and per share data) BALANCE SHEET j2 Global, Inc. j2 Cloud Services Non-guarantor Subsidiaries Consolidating Adjustments j2 Global Consolidated ASSETS Cash and cash equivalents $ 23,935 $ 22,949 $ 77,066 $ — $ 123,950 Short-term investments — — 60 — 60 Accounts receivable, net — 11,464 188,498 (91 ) 199,871 Prepaid expenses and other current assets 25,922 2,266 21,246 (25,316 ) 24,118 Intercompany receivable 635,740 281,078 166,210 (1,083,028 ) — Total current assets 685,597 317,757 453,080 (1,108,435 ) 347,999 Property and equipment, net — 6,318 61,776 — 68,094 Trade names, net — 10,097 105,756 — 115,853 Patent and patent licenses, net — 601 13,327 — 13,928 Customer relationships, net — 2,519 205,636 — 208,155 Goodwill — 58,310 1,064,500 — 1,122,810 Other purchased intangibles, net — 4,804 168,951 — 173,755 Investment in subsidiaries 1,091,412 730,153 (1,071 ) (1,820,494 ) — Deferred income taxes, non-current 1,346 26,667 2,171 (24,895 ) 5,289 Other assets — 443 6,002 — 6,445 Total assets $ 1,778,355 $ 1,157,669 $ 2,080,128 $ (2,953,824 ) $ 2,062,328 LIABILITIES AND STOCKHOLDERS’ EQUITY Accounts payable and accrued expenses $ 4,545 $ 28,179 $ 170,754 $ (25,407 ) $ 178,071 Income taxes payable — 82,795 — (66,042 ) 16,753 Deferred revenue, current — 19,277 61,107 — 80,384 Line of credit 178,817 — — — 178,817 Other current liabilities — — 64 — 64 Intercompany payable 296,658 11 720,317 (1,016,986 ) — Total current liabilities 480,020 130,262 952,242 (1,108,435 ) 454,089 Long-term debt 355,143 246,604 (1 ) — 601,746 Deferred revenue, non-current — 1,588 — — 1,588 Liability for uncertain tax positions — 41,259 5,278 — 46,537 Deferred income taxes, non-current 28,687 — 36,565 (24,895 ) 40,357 Other long-term liabilities 1,040 505 1,930 — 3,475 Total liabilities 864,890 420,218 996,014 (1,133,330 ) 1,147,792 Commitments and contingencies — — — — — Preferred stock - Series A, $0.01 par value — — — — — Preferred stock - Series B, $0.01 par value — — — — — Common stock, $0.01 par value 474 — — — 474 Additional paid-in capital 464,220 89,066 424,399 (669,356 ) 308,329 Retained earnings 448,771 648,233 714,516 (1,151,138 ) 660,382 Accumulated other comprehensive income (loss) — 152 (54,801 ) — (54,649 ) Total stockholders’ equity 913,465 737,451 1,084,114 (1,820,494 ) 914,536 Total liabilities and stockholders’ equity $ 1,778,355 $ 1,157,669 $ 2,080,128 $ (2,953,824 ) $ 2,062,328 j2 GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF INCOME Three Months Ended June 30, 2017 (Unaudited, in thousands except share and per share data) j2 Global, Inc. j2 Cloud Services Non-guarantor Subsidiaries Consolidating Adjustments j2 Global Consolidated Revenues: Total revenues $ — $ 60,706 $ 224,039 $ (11,571 ) $ 273,174 Cost of revenues — 18,341 36,389 (11,571 ) 43,159 Gross profit — 42,365 187,650 — 230,015 Operating expenses: Sales and marketing — 10,845 70,017 — 80,862 Research, development and engineering — 2,845 8,710 — 11,555 General and administrative 9,678 7,200 62,160 — 79,038 Total operating expenses 9,678 20,890 140,887 — 171,455 Income (loss) from operations (9,678 ) 21,475 46,763 — 58,560 Equity earnings in subsidiaries 33,960 39,948 — (73,908 ) — Interest (income) expense, net (5,284 ) 5,545 13,409 — 13,670 Other (income) expense, net — (129 ) 4,356 — 4,227 Income before income taxes 29,566 56,007 28,998 (73,908 ) 40,663 Income tax (benefit) expense (1,809 ) 14,750 (3,654 ) — 9,287 Net income $ 31,375 $ 41,257 $ 32,652 $ (73,908 ) $ 31,376 j2 GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF INCOME Three Months Ended June 30, 2016 (Unaudited, in thousands except share and per share data) j2 Global, Inc. j2 Cloud Services Non-guarantor Subsidiaries Consolidating Adjustments j2 Global Consolidated Revenues: Total revenues $ — $ 66,254 $ 166,079 $ (20,533 ) $ 211,800 Cost of revenues — 16,992 39,087 (20,488 ) 35,591 Gross profit — 49,262 126,992 (45 ) 176,209 Operating expenses: Sales and marketing — 10,260 38,402 (45 ) 48,617 Research, development and engineering — 2,930 6,283 — 9,213 General and administrative 5,078 4,431 49,925 — 59,434 Total operating expenses 5,078 17,621 94,610 (45 ) 117,264 Income (loss) from operations (5,078 ) 31,641 32,382 — 58,945 Equity earnings in subsidiaries 38,019 20,786 — (58,805 ) — Interest expense, net 1,591 5,193 3,517 — 10,301 Other (income) expense, net (300 ) (93 ) 180 — (213 ) Income before income taxes 31,650 47,327 28,685 (58,805 ) 48,857 Income tax (benefit) expense (2,120 ) 9,308 7,899 — 15,087 Net income $ 33,770 $ 38,019 $ 20,786 $ (58,805 ) $ 33,770 j2 GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF INCOME Six Months Ended June 30, 2017 (Unaudited, in thousands except share and per share data) j2 Global, Inc. j2 Cloud Services Non-guarantor Subsidiaries Consolidating Adjustments j2 Global Consolidated Revenues: Total revenues $ — $ 136,042 $ 431,927 $ (40,126 ) $ 527,843 Cost of revenues — 35,568 88,520 (40,119 ) 83,969 Gross profit — 100,474 343,407 (7 ) 443,874 Operating expenses: Sales and marketing — 21,655 136,691 (7 ) 158,339 Research, development and engineering — 5,795 17,512 — 23,307 General and administrative 14,502 11,971 129,220 — 155,693 Total operating expenses 14,502 39,421 283,423 (7 ) 337,339 Income (loss) from operations (14,502 ) 61,053 59,984 — 106,535 Equity earnings in subsidiaries 60,390 57,776 — (118,166 ) — Interest (income) expense, net (10,593 ) 10,752 25,920 — 26,079 Other income, net — (175 ) 4,726 — 4,551 Income before income taxes 56,481 108,252 29,338 (118,166 ) 75,905 Income tax expense (714 ) 21,239 (1,816 ) — 18,709 Net income $ 57,195 $ 87,013 $ 31,154 $ (118,166 ) $ 57,196 j2 GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF INCOME Six Months Ended June 30, 2016 (Unaudited, in thousands except share and per share data) j2 Global, Inc. j2 Cloud Services Non-guarantor Subsidiaries Consolidating Adjustments j2 Global Consolidated Revenues: Total revenues $ — $ 122,639 $ 321,645 $ (31,982 ) $ 412,302 Cost of revenues — 34,481 67,288 (31,891 ) 69,878 Gross profit — 88,158 254,357 (91 ) 342,424 Operating expenses: Sales and marketing — 20,888 75,932 (91 ) 96,729 Research, development and engineering — 6,219 11,982 — 18,201 General and administrative 9,750 9,902 95,559 — 115,211 Total operating expenses 9,750 37,009 183,473 (91 ) 230,141 Income (loss) from operations (9,750 ) 51,149 70,884 — 112,283 Equity earnings in subsidiaries 72,342 48,482 — (120,824 ) — Interest expense, net 3,462 10,425 6,647 — 20,534 Other (income) expense, net (209 ) (1,013 ) 1,135 — (87 ) Income before income taxes 59,339 90,219 63,102 (120,824 ) 91,836 Income tax (benefit) expense (4,374 ) 17,877 14,620 — 28,123 Net income $ 63,713 $ 72,342 $ 48,482 $ (120,824 ) $ 63,713 j2 GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME Three Months Ended June 30, 2017 (Unaudited, in thousands except share and per share data) j2 Global, Inc. j2 Cloud Services Non-guarantor Subsidiaries Consolidating Adjustments j2 Global Consolidated Net income $ 31,375 $ 41,257 $ 32,652 $ (73,908 ) $ 31,376 Other comprehensive income, net of tax: Foreign currency translation adjustment — — 12,331 — 12,331 Change in fair value on available-for-sale investments, net of tax expense (benefit) — — — — — Other comprehensive income, net of tax — — 12,331 — 12,331 Comprehensive income $ 31,375 $ 41,257 $ 44,983 $ (73,908 ) $ 43,707 j2 GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Three Months Ended June 30, 2016 (Unaudited, in thousands except share and per share data) j2 Global, Inc. j2 Cloud Services Non-guarantor Subsidiaries Consolidating Adjustments j2 Global Consolidated Net income $ 33,770 $ 38,019 $ 20,786 $ (58,805 ) $ 33,770 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment — — (12,653 ) — (12,653 ) Change in fair value on available-for-sale investments, net of tax benefit 2,251 — — — 2,251 Other comprehensive income (loss), net of tax 2,251 — (12,653 ) — (10,402 ) Comprehensive income $ 36,021 $ 38,019 $ 8,133 $ (58,805 ) $ 23,368 j2 GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME Six Months Ended June 30, 2017 (Unaudited, in thousands except share and per share data) j2 Global, Inc. j2 Cloud Services Non-guarantor Subsidiaries Consolidating Adjustments j2 Global Consolidated Net income $ 57,195 $ 87,013 $ 31,154 $ (118,166 ) $ 57,196 Other comprehensive income, net of tax: Foreign currency translation adjustment — — 15,913 — 15,913 Change in fair value on available-for-sale investments, net of tax expense (benefit) — — — — — Other comprehensive income, net of tax — — 15,913 — 15,913 Comprehensive income $ 57,195 $ 87,013 $ 47,067 $ (118,166 ) $ 73,109 j2 GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME Six Months Ended June 30, 2016 (Unaudited, in thousands except share and per share data) j2 Global, Inc. j2 Cloud Services Non-guarantor Subsidiaries Consolidating Adjustments j2 Global Consolidated Net income $ 63,713 $ 72,342 $ 48,482 $ (120,824 ) $ 63,713 Other comprehensive loss, net of tax: Foreign currency translation adjustment — — (9,238 ) — (9,238 ) Change in fair value on available-for-sale investments, net of tax expense (benefit) (110 ) — — — (110 ) Other comprehensive loss, net of tax (110 ) — (9,238 ) — (9,348 ) Comprehensive income $ 63,603 $ 72,342 $ 39,244 $ (120,824 ) $ 54,365 j2 GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW Six Months Ended June 30, 2017 (Unaudited, in thousands except share and per share data) j2 Global, Inc. j2 Cloud Services Non-guarantor Subsidiaries Consolidating Adjustments j2 Global Consolidated Net cash (used in) provided by operating activities $ (79,270 ) $ 26,037 $ 164,888 $ — $ 111,655 Cash flows from investing activities: Purchase of available-for-sale investments — — (5 ) — (5 ) Purchases of property and equipment — (820 ) (18,125 ) — (18,945 ) Acquisition of businesses, net of cash received — (22,453 ) (13,977 ) — (36,430 ) Purchases of intangible assets — (8 ) (760 ) — (768 ) Net cash used in investing activities — (23,281 ) (32,867 ) — (56,148 ) Cash flows from financing activities: Issuance of long-term debt — 636,178 — — 636,178 Proceeds from line of credit, net 44,981 — — — 44,981 Repayment of line of credit, net (225,000 ) — — — (225,000 ) Repurchases of common and restricted stock (6,738 ) — — — (6,738 ) Issuance of common stock under employee stock purchase plan 133 — — — 133 Exercise of stock options 1,051 — — — 1,051 Dividends paid (35,707 ) — — — (35,707 ) Deferred payments for acquisitions — (1,035 ) (2,304 ) — (3,339 ) Other — — (36 ) — (36 ) Intercompany 280,863 (226,442 ) (54,421 ) — — Net cash provided by (used in) financing activities 59,583 408,701 (56,761 ) — 411,523 Effect of exchange rate changes on cash, cash equivalents and restricted cash — (76 ) 5,652 — 5,576 Net change in cash, cash equivalents and restricted cash (19,687 ) 411,381 80,912 — 472,606 Net change in cash balance included in assets held for sale — — (813 ) — (813 ) Cash, cash equivalents and restricted cash at beginning of period 23,935 22,949 77,066 — 123,950 Cash, cash equivalents and restricted cash at end of period $ 4,248 $ 434,330 $ 157,165 $ — $ 595,743 j2 GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW Six Months Ended June 30, 2016 (Unaudited, in thousands except share and per share data) j2 Global, Inc. j2 Cloud Services Non-guarantor Subsidiaries Consolidating Adjustments j2 Global Consolidated Net cash (used in) provided by operating activities $ (695 ) $ 25,755 $ 106,992 $ — $ 132,052 Cash flows from investing activities: Maturity of available-for-sale investments 112,631 — — — 112,631 Purchase of available-for-sale investments (47,207 ) — — — (47,207 ) Purchases of property and equipment — (542 ) (8,644 ) — (9,186 ) Acquisition of businesses, net of cash received — — (76,725 ) — (76,725 ) Purchases of intangible assets — (104 ) (1,711 ) — (1,815 ) Net cash provided (used in) by investing activities 65,424 (646 ) (87,080 ) — (22,302 ) Cash flows from financing activities: Repurchases of common stock and restricted stock (3,356 ) — — — (3,356 ) Issuance of common stock under employee stock purchase plan 123 — — — 123 Exercise of stock options 1,911 — — — 1,911 Dividends paid (32,202 ) — — — (32,202 ) Deferred payments for acquisitions — (873 ) (15,677 ) — (16,550 ) Other 1,097 — (254 ) — 843 Intercompany (13,674 ) 5,683 7,991 — — Net cash (used in) provided by financing activities (46,101 ) 4,810 (7,940 ) — (49,231 ) Effect of exchange rate changes on cash and cash equivalents 53 (239 ) (2,109 ) — (2,295 ) Net change in cash and cash equivalents 18,681 29,680 9,863 — 58,224 Cash and cash equivalents at beginning of period 55,516 9,975 190,039 — 255,530 Cash and cash equivalents at end of period $ 74,197 $ 39,655 $ 199,902 $ — $ 313,754 |