10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

ýQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE

ACT OF 1934

For the quarterly period ended June 30, 2012

OR

oTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission File Number: 0-25965

j2 GLOBAL, INC.

(Exact name of registrant as specified in its charter)

Delaware	51-0371142
(State or other jurisdiction	(I.R.S. Employer
of incorporation or organization)	Identification No.)

6922 Hollywood Boulevard, Suite 500

Los Angeles, California 90028

(Address of principal executive offices)

(323) 860-9200

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes ý    No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ý    No  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer.  See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act). (Check one):

Large accelerated filer ý Accelerated filer o Non-Accelerated filer o Smaller reporting company o

 Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).  Yes o        No ý

As of August 3, 2012, the registrant had 45,616,539 shares of common stock outstanding.

j2 GLOBAL, INC.

FOR THE QUARTER ENDED JUNE 30, 2012

INDEX

			PAGE
PART I.	FINANCIAL INFORMATION
	Item 1.	Financial Statements
		Condensed Consolidated Balance Sheets (unaudited)	3
		Condensed Consolidated Statements of Operations (unaudited)	4
		Condensed Consolidated Statements of Comprehensive Income (unaudited)	5
		Condensed Consolidated Statements of Cash Flows (unaudited)	6
		Notes to Condensed Consolidated Financial Statements (unaudited)	7
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	30
	Item 4.	Controls and Procedures	31
PART II.	OTHER INFORMATION
	Item 1.	Legal Proceedings	32
	Item 1A.	Risk Factors	32
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	33
	Item 3.	Defaults Upon Senior Securities	34
	Item 4.	Mine Safety Disclosures	34
	Item 5.	Other Information	34
	Item 6.	Exhibits	35
		Signature	36

-2-

PART I.  FINANCIAL INFORMATION

Item 1. Financial Statements

j2 Global, Inc.

Condensed Consolidated Balance Sheets

(Unaudited, in thousands)

	June 30, 2012			December 31, 2011
ASSETS
Cash and cash equivalents	$	142,873		$	139,359
Short-term investments	41,744			38,513
Accounts receivable, net of allowances of $4,172 and $3,404, respectively	20,242			19,071
Prepaid expenses and other current assets	6,215			14,311
Deferred income taxes	2,151			1,643
Total current assets	213,225			212,897
Long-term investments	22,217			43,077
Property and equipment, net	14,095			14,438
Tradenames, net	34,494			34,691
Patent and patent licenses, net	18,067			17,517
Customer relationships, net	40,045			35,865
Goodwill	289,259			279,016
Other purchased intangibles, net	9,306			9,994
Deferred income taxes	6,144			3,160
Other assets	2,429			516
Total assets	$	649,281		$	651,171
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued expenses	$	26,236		$	24,070
Income taxes payable	3,697			1,510
Deferred revenue	28,366			26,695
Liability for uncertain tax positions	5,523			5,523
Total current liabilities	63,822			57,798
Liability for uncertain tax positions	28,144			24,554
Deferred income taxes	11,305			12,102
Other long-term liabilities	2,500			2,342
Total liabilities	105,771			96,796
Commitments and contingencies	—			—
Preferred stock, $0.01 par value. Authorized 1,000,000 and none issued	—			—
Common stock, $0.01 par value. Authorized 95,000,000 at June 30, 2012 and December 31, 2011; total issued 53,623,637 and 55,389,636 shares at June 30, 2012 and December 31, 2011, respectively; and total outstanding 44,943,069 and 46,709,068 shares at June 30, 2012 and December 31, 2011, respectively	536			554
Additional paid-in capital	195,538			197,374
Treasury stock, at cost (8,680,568 shares at June 30, 2012 and December 31, 2011)	(112,671		)	(112,671		)
Retained earnings	462,658			472,595
Accumulated other comprehensive loss	(2,551		)	(3,477		)
Total stockholders’ equity	543,510			554,375
Total liabilities and stockholders’ equity	$	649,281		$	651,171

See Notes to Condensed Consolidated Financial Statements

-3-

j2 Global, Inc.

Condensed Consolidated Statements of Operations

(Unaudited, in thousands except share and per share data)

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Revenues:
Subscriber	$	88,071	$	85,298	$	172,896	$	158,166
Other	1,394		378		3,221		894
	89,465		85,676		176,117		159,060
Cost of revenues (including share-based compensation of $192 and $434 for the three and six months of 2012, respectively, and $246 and $490 for the three and six months of 2011, respectively)	16,187		15,158		32,051		30,950
Gross profit	73,278		70,518		144,066		128,110
Operating expenses:
Sales and marketing (including share-based compensation of $352 and $727 for the three and six months of 2012, respectively, and $351 and $699 for the three and six months of 2011, respectively)	13,860		14,345		28,721		29,856
Research, development and engineering (including share-based compensation of $117 and $233 for the three and six months of 2012, respectively, and $110 and $257 for the three and six months of 2011, respectively)	4,617		3,837		9,106		8,609
General and administrative (including share-based compensation of $1,494 and $3,054 for the three and six months of 2012, respectively, and $1,524 and $2,990 for the three and six months of 2011, respectively)	14,774		14,392		28,603		28,634
Total operating expenses	33,251		32,574		66,430		67,099
Operating earnings	40,027		37,944		77,636		61,011
Interest and other income (expense), net	809		299		91		(28		)
Earnings before income taxes	40,836		38,243		77,727		60,983
Income tax expense	9,648		9,729		18,000		1,534
Net earnings	$	31,188	$	28,514	$	59,727	$	59,449
Net earnings per common share:
Basic	$	0.68	$	0.63	$	1.28	$	1.31
Diluted	$	0.67	$	0.61	$	1.27	$	1.27
Weighted average shares outstanding:
Basic	45,373,930		45,399,940		45,887,185		45,247,381
Diluted	45,569,564		46,723,792		46,203,491		46,663,866
Cash dividends paid per common share	$	0.22	—		$	0.43	—

See Notes to Condensed Consolidated Financial Statements

-4-

j2 Global, Inc.

Condensed Consolidated Statements of Comprehensive Income

(Unaudited, in thousands)

	Three Months Ended June 30,					Six Months Ended June 30,
	2012			2011		2012		2011
Net Earnings	$	31,188		$	28,514	$	59,727	$	59,449
Other comprehensive income, net of tax:
Foreign currency translation adjustment, net of tax (benefit) of ($431) and $7 for the three and six months of 2012, respectively, and $83 and $483 for the three and six months of 2011, respectively	(1,430		)	248		24		1,450
Unrealized gain (loss) on available-for-sale investments, net of tax (benefit) of ($17) and $48 for the three and six months of 2012, respectively, and $7 and $17 for the three and six months of 2011, respectively	(26		)	22		72		50
Other comprehensive income, net of tax	(1,456		)	270		96		1,500
Comprehensive Income	$	29,732		$	28,784	$	59,823	$	60,949

See Notes to Condensed Consolidated Financial Statements

-5-

j2 Global, Inc.

Condensed Consolidated Statement of Cash Flows

(Unaudited, in thousands)

	Six Months Ended June 30,
	2012			2011
Cash flows from operating activities:
Net earnings	$	59,727		$	59,449
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	10,197			10,081
Amortization of discount or premium of investments	580			296
Share-based compensation	4,425			4,436
Excess tax benefits from share-based compensation	(1,107		)	(2,122		)
Provision for doubtful accounts	2,601			2,334
Deferred income taxes	(3,307		)	(59		)
Loss on disposal of fixed assets	59			115
(Gain) loss on available-for-sale investments	(216		)	—
Decrease (increase) in:
Accounts receivable	(1,313		)	(4,833		)
Prepaid expenses and other current assets	(425		)	3,257
Other assets	(99		)	(165		)
(Decrease) increase in:
Accounts payable and accrued expenses	(2,142		)	(553		)
Income taxes payable	11,903			7,632
Deferred revenue	822			10,450
Liability for uncertain tax positions	3,590			(10,132		)
Other	29			365
Net cash provided by operating activities	85,324			80,551
Cash flows from investing activities:
Purchase of certificate of deposit	(9,157		)	—
Redemptions/sales of available-for-sale investments	55,061			8,576
Purchase of available-for-sale investments	(28,242		)	(28,542		)
Purchases of property and equipment	(2,935		)	(2,485		)
Proceeds from sale of assets	145			4
Acquisition of businesses, net of cash received	(18,843		)	1,260
Purchases of intangible assets	(2,745		)	(1,860		)
Net cash used in investing activities	(6,716		)	(23,047		)
Cash flows from financing activities:
Repurchases of common stock and restricted stock	(60,224		)	(1,243		)
Issuance of common stock under employee stock purchase plan	61			77
Exercise of stock options	2,991			5,617
Dividends paid	(19,901		)	—
Excess tax benefits from share-based compensation	1,107			2,122
Debt issuance costs	(77		)	—
Net cash provided by (used in) financing activities	(76,043		)	6,573
Effect of exchange rate changes on cash and cash equivalents	949			878
Net change in cash and cash equivalents	3,514			64,955
Cash and cash equivalents at beginning of period	139,359			64,752
Cash and cash equivalents at end of period	$	142,873		$	129,707

See Notes to Condensed Consolidated Financial Statements

-6-

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2012

(UNAUDITED)

1.     Basis of Presentation

j2 Global, Inc. (“j2 Global” or the “Company”) is a Delaware corporation founded in 1995. j2 Global provides cloud services to businesses of all sizes, from individuals to enterprises. The Company’s hosted solutions deliver its customers greater efficiency, flexibility, mobility, business continuity and security.  j2 Global offers online fax, virtual phone systems, hosted email, email marketing, online backup, customer relationship management and bundled suites of these services. The Company markets its services principally under the brand names eFax®, eVoice®, FuseMail®, Campaigner®, KeepItSafe®, CampaignerCRM^TM and Onebox®.

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 accounting principles generally accepted in the United States of America (“GAAP”), including those for interim financial information and with the 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. 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. These financial statements should be read in conjunction with the audited financial statements and related notes for the year ended December 31, 2011 included in our Annual Report on Form 10-K filed with the SEC on February 28, 2012. 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.

Use of Estimates

The preparation of consolidated financial statements in accordance with 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. 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 differ from those estimates.

In the first quarter of 2011, the Company made a change in estimate regarding the remaining service obligations to its annual eFax® subscribers.  As a result of system upgrades, the Company is now basing the estimate on the actual remaining service obligations to these customers.  Due to this change, the Company recorded a one-time, non-cash increase to deferred revenues of $10.3 million with an equal offset to revenues.  This change in estimate reduced net income by approximately $7.6 million, net of tax, and reduced basic and diluted earnings per share for the six months ended June 30, 2011 by $0.17 and $0.16, respectively.

Allowances for Doubtful Accounts

j2 Global reserves for receivables it may not be able to collect. These reserves 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. On an ongoing basis, management evaluates the adequacy of these reserves.

Revenue Recognition

The Company’s subscriber revenues substantially consist of monthly recurring subscription and usage-based fees, which are primarily paid in advance by credit card. In accordance with GAAP, the Company defers the portions of monthly, quarterly, semi-annually and annually recurring subscription and usage-based fees collected in advance and recognizes them in the period earned. Additionally, the Company defers and recognizes subscriber activation fees and related direct incremental costs over a subscriber’s estimated useful life.

-7-

The Company’s patent revenues (included in “other revenues”) consist of patent license revenues generated under license agreements that provide for the payment of contractually determined fully paid-up or royalty-bearing license fees to j2 Global in exchange for the grant of non-exclusive, retroactive and future licenses to the Company’s patented technology. Patent revenues also consist of revenues generated from the sale of patents. Patent license revenues are recognized when earned over the term of the license agreements. With regard to fully paid-up license arrangements, the Company generally recognizes as revenue in the period the agreement is executed the portion of the payment attributable to past use of the patented technology and amortizes the remaining portion of such payments on a straight line basis over the life of the licensed patent(s). With regard to royalty-bearing license arrangements, j2 Global recognizes revenues of license fees earned during the applicable period. With regard to patent sales, the Company recognizes as revenue in the period of the sale the portion of the purchase price over the carrying value of the patent(s) sold.

j2 Global also recognizes other licensing revenues (included in “other revenues”) that primarily consist of revenues generated under license agreements for certain technology to third parties. Other licensing revenues are recognized when earned in accordance with the terms of the agreement. Generally, revenue is recognized as the third party uses the licensed technology over the period.

The Company’s advertising revenues (included in “other revenues”) primarily consist of revenues derived by delivering email messages to its customers on behalf of advertisers. Revenues are recognized in the period in which the advertising services are performed, provided that no significant j2 Global obligations remain and the collection of the resulting receivable is reasonably assured.

Fair Value Measurements

j2 Global complies with the provisions of Financial Accounting Standards Board (“FASB”) ASC Topic No. 820, Fair Value Measurements and Disclosures (“ASC 820”), in measuring fair value and in disclosing fair value measurements. ASC 820 provides a framework for measuring fair value and expands the disclosures required for fair value measurements of financial and non-financial assets and liabilities.

As of June 30, 2012 and December 31, 2011, the carrying value of cash and cash equivalents, short-term investments, accounts receivable, interest receivable, accounts payable, accrued expenses, interest payable and customer deposits approximated fair value due to the short-term nature of such instruments. As of the same dates, the carrying value of other long-term liabilities approximated fair value as the related interest rates approximate rates currently available to j2 Global.

Debt Issuance Costs

j2 Global capitalized costs incurred in connection with borrowings and issuance of debt securities. These costs are amortized and included in interest expense over the life of the borrowing or term of the credit facility using the interest method.

Concentration of Credit Risk

All of the Company’s cash, cash equivalents and marketable securities are invested at major financial institutions primarily within the United States, United Kingdom and Ireland. These institutions are required to invest the Company’s cash in accordance with the Company’s investment policy with the principal objectives being preservation of capital, fulfillment of liquidity needs and above market returns commensurate with preservation of capital. The Company’s investment policy also requires that investments in marketable securities be in only highly rated instruments, with limitations on investing in securities of any single issuer. However, these investments are not insured against the possibility of a total or near complete loss of earnings or principal and are inherently subject to the credit risk related to the continued credit worthiness of the underlying issuer and general credit market risks. At June 30, 2012 and December 31, 2011, the Company’s cash and cash equivalents were maintained in accounts that are insured up to the limit determined by the applicable governmental agency. The amount held in Ireland by some of our banks are fully insured through December 31, 2012 (subject to European Union state aid approval); however, the insured amount held in other institutions is immaterial in comparison to the total amount of the Company’s cash and cash equivalents held by these institutions which is not insured.  These institutions are primarily in the United States, however, the Company does have accounts within several other countries including Australia, Austria, China, France, Germany, Italy, Japan, Malaysia, the Netherlands, Poland and the United Kingdom.

-8-

Income Taxes

The Company must make certain estimates and judgments in determining income tax expense for financial statement purposes. These estimates and judgments occur in the following areas, among others: (i) calculation of tax credits, benefits and deductions; (ii) calculation of tax assets and liabilities arising from differences in the timing of recognition of revenue and expense for tax and financial statement purposes; and (iii) interest and penalties related to uncertain tax positions. Significant changes to these estimates may result in an increase or decrease to the Company’s tax provision in the current or a subsequent period.

The Company must assess the likelihood that it will be able to recover its deferred tax assets. If recovery is not likely, the Company must increase its provision for taxes by recording a valuation allowance against the deferred tax assets that the Company estimates will not ultimately be recoverable. The Company believes that it will ultimately recover a substantial majority of the deferred tax assets recorded on its consolidated condensed balance sheets. However, should there be a change in the Company’s ability to recover its deferred tax assets, the Company’s tax provision would increase in the period in which j2 Global determined that the recovery was not likely.

The calculation of the Company’s tax liabilities involves dealing with uncertainties in the application of complex tax laws. j2 Global recognizes liabilities for uncertain tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. If the Company determines that a tax position will more likely than not be sustained on audit, then the second step requires j2 Global to estimate and measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. It is inherently difficult and subjective to estimate such amounts, as j2 Global has to determine the probability of various possible outcomes. j2 Global reevaluates these uncertain tax positions on a quarterly basis. This evaluation is based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, effectively settled issues under audit and new audit activity. Such a change in recognition or measurement would result in the recognition of a tax benefit or an additional charge to the tax provision.

Reclassifications

Certain prior year reported amounts have been reclassified to conform with the 2012 presentation.

2.     Recent Accounting Pronouncements

In May 2011, the FASB issued ASU No. 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs.  This guidance was issued to achieve common fair value measurement and disclosure requirements between GAAP and International Financial Reporting Standards. This new guidance amends current fair value measurement and disclosure guidance to include increased transparency around valuation inputs and investment categorization. This ASU is effective for interim and annual periods beginning after December 15, 2011. The adoption of this new guidance did not have a significant impact on the Company’s fair value measurements, financial condition, results of operations or cash flows.

In June 2011, the FASB issued ASU No. 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income. This guidance is effective for interim and annual periods beginning December 15, 2011 and will require companies to present the components of net income and other comprehensive income either as one continuous statement or as two consecutive statements. It eliminates the option to present components of other comprehensive income as part of the statement of changes in stockholders' equity. The standard does not change the items which must be reported in other comprehensive income, how such items are measured or when they must be reclassified to net income.  In addition, in December 2011, the FASB issued an amendment which defers the requirement to present components of reclassifications of other comprehensive income on the face of the income statement.  In accordance with this guidance, the Company has presented the components of net income and other comprehensive income as two consecutive statements beginning the period ended March 31, 2012.

In September 2011, the FASB issued ASU No. 2011-08, Intangibles – Goodwill and Other (Topic 350), which simplifies how entities test goodwill for impairment and permits an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. This ASU is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011 (early adoption is permitted). The Company decided to early adopt this guidance which did not have a significant impact on the Company's consolidated financial position or results of operations.

-9-

In July 2012, the FASB issued ASU No. 2012-02, Intangibles – Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment, which simplifies how entities test indefinite-lived intangible assets other than goodwill for impairment and permits an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of the indefinite-lived intangible asset is less than its carrying amount as a basis for determining whether it is necessary to perform a quantitative impairment test. This ASU is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012 (early adoption is permitted). The Company does not anticipate that the adoption of this guidance will have a significant impact on the Company's consolidated financial position or results of operations.

3.     Business Acquisition

The Company paid cash for the following acquisitions closed during the first quarter of 2012, (a) substantially all of the assets of Offsite Backup Solutions, LLC, a Phoenix-based provider of online backup solutions; (b) Landslide Technologies, Inc., a Boston-based provider of online customer relationship management solutions designed for small to mid-sized businesses; (c) Zimo Communications Ltd., a UK provider of cloud-based voice services; and (d) the Australian business of Zintel Communications, a cloud voice service provider.

The initial accounting for these acquisitions are incomplete and subject to change. j2 Global is currently in the process of quantifying such amounts, if any, and has recorded provisional amounts based upon management's best estimate of the value as a result of a preliminary analysis performed. Therefore, actual amounts recorded upon the finalization of certain intangible assets and related tax items may differ from the information presented in this Quarterly Report on Form 10-Q.

These acquisitions are designed to be accretive and to provide the Company additional online data backup, customer relationship and voice customers. The financial impact to j2 Global for each of these transactions, individually and in the aggregate, is immaterial as of the date of each acquisition.  The condensed consolidated statement of operations and balance sheet as of June 30, 2012 reflect the results of operations of these acquisitions.  Total consideration for these transactions was $22.4 million, net of cash acquired.

4.     Investments

Short-term investments consist generally of corporate and governmental debt securities and certificates of deposits which are stated at fair market value. Realized gains and losses of short and long-term investments are recorded using the specific identification method.

The following table summarizes j2 Global’s debt securities designated as available-for-sale, classified by the contractual maturity date of the security (in thousands):

	June 30, 2012		December 31, 2011
Due within 1 year	$	24,479	$	30,512
Due within more than 1 year but less than 5 years	19,057		38,847
Due within more than 5 years but less than 10 years	—		—
Due 10 years or after	3,160		4,230
Total	$	46,696	$	73,589

The following table summarizes the Company’s investments designated as trading and available-for-sale (in thousands):

	June 30, 2012		December 31, 2011
Trading	$	3	$	2
Available-for-sale	46,913		73,589
Total	$	46,916	$	73,591

-10-

The following table summarizes the gross unrealized gains and losses and fair values for investments as of June 30, 2012 and December 31, 2011 aggregated by major security type (in thousands):

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
June 30, 2012
Debt Securities	$	46,719	$	116	$	(139	)	$	46,696
Equity Securities	$	215	$	2	$	—		$	217
December 31, 2011
Debt Securities	$	73,731	$	99	$	(241	)	$	73,589

At June 30, 2012, corporate and governmental debt securities were recorded as available-for-sale. The corporate and governmental debt securities have a fixed interest rate. 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 June 30, 2012. At June 30, 2012, the Company’s long-term available-for-sale securities are carried at fair value, with the unrealized gains and losses reported as a component of stockholders’ equity. For the six months ended June 30, 2012, the Company recorded gain from the sale of investments of approximately $0.2 million. Short-term investments include restricted balances in which the Company may not liquidate certain investments until maturity, generally within 12 months.  Restricted balances included in short-term investments were $17.0 million at June 30, 2012.

Investments that have been in an unrealized loss position as of June 30, 2012 and December 31, 2011 had a fair value of $21.7 million and $46.2 million, respectively, and have been in a continuous unrealized loss for less than 12 months. Investments in a continuous unrealized loss for 12 months and longer as of June 30, 2012 and December 31, 2011 had a fair value of $2.3 million and zero, respectively.  

Recognition and Measurement of Other-Than-Temporary Impairment

j2 Global regularly reviews and evaluates each investment that has an unrealized loss. An unrealized loss exists when the current fair value of an individual security is less than its amortized cost basis. Unrealized losses that are determined to be temporary in nature are recorded, net of tax, in accumulated other comprehensive income for available-for-sale securities, while such losses related to held-to-maturity securities are not recorded, as these investments are carried at their amortized cost.

Regardless of the classification of the securities as available-for-sale or held-to-maturity, the Company has assessed each position for impairment.

Factors considered in determining whether a loss is temporary include:

• the length of time and the extent to which fair value has been below cost;

• the severity of the impairment;

• the cause of the impairment and the financial condition and near-term prospects of the issuer;

• activity in the market of the issuer which may indicate adverse credit conditions; and

• the Company’s ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery.

j2 Global’s review for impairment generally entails:

• identification and evaluation of investments that have indications of possible impairment;

• analysis of individual investments that have fair values less than amortized cost, including consideration of the length of time the investment has been in an unrealized loss position and the expected recovery period;

• discussion of evidential matter, including an evaluation of factors or triggers that could cause individual investments to qualify as having an other-than-temporary impairment and those that would not support an other-than-temporary impairment;

• documentation of the results of these analyses, as required under business policies; and

• information provided by third-party valuation experts.

-11-

For these securities, a critical component of the evaluation for other-than-temporary impairments is the identification of credit impairment, where management does not expect to receive cash flows sufficient to recover the entire amortized cost basis of the security. Credit impairment is assessed using a combination of a discounted cash flow model that estimates the cash flows on the underlying securities and a market comparables method, where the security is valued based upon indications from the secondary market of what discounts buyers demand when purchasing similar securities. The cash flow model incorporates actual cash flows from the securities through the current period and then projects the remaining cash flows using relevant interest rate curves over the remaining term. These cash flows are discounted using a number of assumptions, some of which include prevailing implied credit risk premiums, incremental credit spreads and illiquidity risk premiums, among others.

Securities that have been identified as other-than-temporarily impaired are written down to their current fair value. For debt securities that are intended to be sold or that management believes it more-likely-than-not that will be required to sell prior to recovery, the full impairment is recognized immediately in earnings.

For available-for-sale and held-to-maturity securities that management has no intent to sell and believes that it more-likely-than-not 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.

5. Fair Value Measurements

j2 Global complies with the provisions of ASC 820, which defines fair value, provides a framework for measuring fair value and expands the disclosures required for fair value measurements of financial and non-financial assets and liabilities. ASC 820 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, ASC 820 establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:

§	Level 1 – Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.
§	Level 2 – Include other inputs that are directly or indirectly observable in the marketplace.
§	Level 3 – Unobservable inputs which are supported by little or no market activity.

The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

The Company measures its cash equivalents and investments at fair value. j2 Global’s cash equivalents, short-term investments and other debt securities are primarily classified within Level 1. Cash equivalents and marketable securities are valued primarily using quoted market prices utilizing market observable inputs.

The following tables present the fair values of the Company’s financial instruments that are measured at fair value on a recurring basis (in thousands):

-12-

June 30, 2012	Level 1		Level 2		Level 3		Fair Value
Cash equivalents:
Money market and other funds	65,522		—		—		65,522
Time deposits	1,511		—		—		1,511
Certificates of Deposit	17,045		—		—		17,045
Equity securities	220		—		—		220
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies	7,560		—		—		7,560
Debt securities issued by states of the United States and political subdivisions of the states	14,471		—		—		14,471
Debt securities issued by foreign governments	6,368		—		—		6,368
Corporate debt securities	18,297		—		—		18,297
Total	$	130,994	$	—	$	—	$	130,994
December 31, 2011	Level 1		Level 2		Level 3		Fair Value
Cash equivalents:
Money market and other funds	79,945		—		—		79,945
Time deposits	7,082		—		—		7,082
Certificates of Deposit	8,000		—		—		8,000
Equity securities	2		—		—		2
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies	15,006		—		—		15,006
Debt securities issued by states of the United States and political subdivisions of the states	16,228		—		—		16,228
Debt securities issued by foreign governments	6,544		—		—		6,544
Corporate debt securities	35,811		—		—		35,811
Total	$	168,618	$	—	$	—	$	168,618

The following table provides a summary of changes in fair value of the Company’s Level 3 financial assets (in thousands):

	Level 3 Financial Assets
	Six Months Ended June 30, 2012		Six Months Ended June 30, 2011
Beginning Balance	$	—	$	496
Total gains (losses) - realized/unrealized
Included in earnings	—		—
Not included in earnings	—		42
Purchases, issuances and settlements	—		—
Transfers in and/or out of Level 3	—		—
Balance, June 30, 2012 and 2011	$	—	$	538
Total losses for the period included in earnings relating to assets still held at June 30, 2012 and 2011	$	—	$	—

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. 

6.     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

-13-

using the purchase method of accounting are recorded at the estimated fair value of the assets acquired. Identifiable intangible assets are comprised of purchased customer relationships, trademarks and tradenames, 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, tradenames 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 using the straight-line method over estimated useful lives ranging from one to 20 years.

The changes in carrying amounts of goodwill for the six months ended June 30, 2012 are as follows (in thousands):

Balance as of January 1, 2012	$	279,016
Goodwill acquired	10,944
Purchase Accounting Adjustments	(301		)
Foreign exchange translation	(400		)
Balance as of June 30, 2012	$	289,259

Intangible assets are summarized as of June 30, 2012 and December 31, 2011 as follows (in thousands):

Intangible assets with indefinite lives:

	June 30, 2012		December 31, 2011
Tradename	$	27,382	$	28,254
Other	5,418		5,317
Total	$	32,800	$	33,571

The Company determined that a certain tradename no longer has an indefinite life as of the second quarter 2012.  Accordingly, the Company has reclassified $0.9 million from intangible assets with indefinite lives to intangible assets subject to amortization during fiscal year 2012.  The Company has determined that this intangible asset has a remaining useful life of 1.5 years and it will be amortized accordingly.

As of June 30, 2012, intangible assets subject to amortization relate primarily to the following (in thousands):

	Weighted-Average Amortization Period	Historical Cost		Accumulated Amortization			Net
Tradenames	11.2 years	$	12,165	$	(5,053	)	$	7,112
Patent and patent licenses	8.4 years	40,631		(22,564		)	18,067
Customer relationships	6.6 years	57,199		(17,154		)	40,045
Other purchased intangibles	4.7 years	11,697		(7,809		)	3,888
Total		$	121,692	$	(52,580	)	$	69,112

As of December 31, 2011, intangible assets subject to amortization relate primarily to the following (in thousands):

	Weighted-Average Amortization Period	Historical Cost		Accumulated Amortization			Net
Tradenames	12.6 years	$	10,584	$	(4,147	)	$	6,437
Patent and patent licenses	8.4 years	38,229		(20,712		)	17,517
Customer relationships	6.7 years	49,245		(13,380		)	35,865
Other purchased intangibles	4.7 years	11,545		(6,868		)	4,677
Total		$	109,603	$	(45,107	)	$	64,496

-14-

Amortization expense, included in general and administrative expense, approximated $3.7 million and $3.3 million for the three month period ended June 30, 2012 and 2011, respectively, and $7.1 million and $6.8 million for the six month period ended June 30, 2012 and 2011, respectively.  Amortization expense is estimated to approximate $18.4 million, $14.2 million, $12.4 million, $11.4 million and $10.0 million for fiscal years 2012 through 2016, respectively, and $9.8 million thereafter through the duration of the amortization period.

7.     Commitments and Contingencies

Litigation

From time-to-time, j2 Global is involved in litigation and other disputes or regulatory inquiries that arise in the ordinary course of its business. Many of these actions involve or are filed in response to patent actions filed by j2 Global against others. The number and significance of these disputes and inquiries has increased as our business has expanded and j2 Global has grown. Any claims or regulatory actions against j2 Global, whether meritorious or not, could be time-consuming, result in costly litigation, require significant management time and result in diversion of significant operational resources.

As part of the Company's continuing effort to prevent the unauthorized use of its intellectual property, j2 Global has ongoing litigation against several companies for infringing its patents relating to online fax, voice and other messaging technologies, including, but not limited to Open Text Corporation and its Captaris and EasyLink ("EasyLink") businesses (“Open Text”), and RingCentral, Inc. (“RingCentral”). Three of the patents at issue in some of these lawsuits have been reaffirmed through reexamination proceedings with the United States Patent and Trademark Office (the “USPTO”).

j2 Global's ongoing patent infringement cases involving U.S. Patent Nos. 6,208,638, 6,350,066, 6,597,688 and 7,020,132 against Open Text and EasyLink are being litigated in the United States District Court for the Central District of California before the same judge. Discovery in the cases is underway.  In both cases we are seeking a permanent injunction against continued infringement, a finding of willfulness, compensatory and treble damages, attorneys' fees, interest and costs. Both defendants filed counterclaims against the Company, including seeking declaratory judgments of non-infringement, invalidity and unenforceability of the patents asserted. Open Text also asserted counterclaims purporting to allege violations of federal and state antitrust laws, but dismissed those claims on September 14, 2011.  The Court completed Part One of the Markman hearing, covering two of the patents asserted, on October 15, 2010, and issued a related Markman Order on March 4, 2011. Open Text's motion for reconsideration of certain portions of the Markman Order was denied on July 2011. The Court completed Part Two of the Markman Hearing covering the two other patents asserted on July 29, 2011, and issued a related Markman Order on October 20, 2011.  In both Markman Orders the Court adopted a claim construction either identical to or consistent with j2 Global's proposed construction for every disputed claim term in all four patents asserted. Trial is currently scheduled to begin on February 13, 2013.

On June 1, 2011, j2 Global and one of its affiliates filed suit against RingCentral in the United States District Court for the Central District of California. The complaint alleges infringement of U.S. Patent Numbers 6,208,638, 6,350,066 and 7,020,132. j2 Global and its affiliate are seeking a permanent injunction against continued infringement, a finding of willfulness, compensatory and treble damages, attorneys' fees, interest and costs. On October 11, 2011, RingCentral filed an answer and counterclaims, alleging infringement of U.S. Patent Number 7,702,669 (the “'669 patent”) and unfair competition in violation of California's Business & Professions Code § 17200 et. seq.; and seeking declaratory judgment of non-infringement and invalidity and requesting damages, injunctive relief, interest and attorneys' fees and costs. On December 8, 2011, j2 Global submitted a request to the USPTO to submit the '669 patent into reexamination proceedings.  On January 25, 2012, the USPTO accepted the reexamination request and rejected all claims of the '669 patent. On March 13, 2012, the Court entered an Order staying RingCentral's patent counterclaim pending conclusion of the reexamination proceedings. The Court also referred questions relating to RingCentral's unfair competition claim to the FCC and stayed the unfair competition claim pending resolution by the FCC. On May 3, 2012, the USPTO issued an action closing the prosecution of the reexamination proceedings, and on July 3, 2012, RingCentral filed a response to this action, seeking permission to submit a response to the action closing prosecution, and also submitting its proposed response. j2 Global's response to RingCentral's submissions is due August 2, 2012. Discovery has commenced in the patent infringement case against RingCentral. The court has scheduled a Markman hearing on January 18, 2013 and trial on January 21, 2014.

On February 21, 2012, EC Data Systems, Inc. (“EC Data”) filed a complaint against j2 Global and one of its affiliates in the United District Court for the District of Colorado, seeking declaratory judgment of non-infringement of U.S. Patent Nos. 6,208,638 and 6,350,066. On April 2, 2012, the Company filed a motion to transfer the case to the Central District of California, which motion is pending. On April 9, 2012, the Company filed an answer to the complaint and counterclaims asserting that EC Data infringes these patents. On May 14, 2012, EC Data filed an answer to j2 Global's counterclaims and

-15-

asserted counterclaims for declaratory judgments of non-infringement and invalidity of j2 Global's U.S. Patent No. 7,020,132 and non-infringement of j2 Global's U.S. Patent No. 6,597,688. On May 31, 2012, EC Data submitted a request to the USPTO to submit j2 Global's U.S. Patent No.7,020,132 into re-examination proceedings.

On September 15, 2006, one of the Company's affiliates filed a patent infringement suit against Integrated Global Concepts, Inc. (“IGC”) in the United States District Court for the Northern District of Georgia. On May 13, 2008, IGC filed counterclaims alleging violations of Section 2 of the Sherman Act and breach of contract. IGC is seeking damages, including treble and punitive damages, an injunction against further violations, divestiture of certain assets, and attorneys' fees and costs. On February 18, 2009, the Court granted j2 Global's motion to stay the case pending the conclusion of the j2 Global affiliate's appeal of a summary judgment ruling of non-infringement in another case involving the same patents and issues as this action. On January 22, 2010, the Federal Circuit affirmed the District Court's non-infringement ruling in the other case and on June 7, 2010 the Court lifted the stay. On September 2, 2011, the Court granted the Company's motion to dismiss IGC's breach of contract counterclaim and one portion of IGC's antitrust counterclaim. Following additional discovery, on June 20, 2012, j2 Global's affiliate filed a motion to dismiss its infringement claims and IGC's counterclaims for declaratory relief. On July 27, 2012, the court granted the j2 Global affiliate's motion to dismiss, dismissing the affiliate's infringement claims and IGC's related counterclaims.

On April 20, 2012, j2 Global and a different affiliate filed suit against IGC in the United States District Court for the Central District of California. The complaint alleges infringement of U.S. Patent Numbers 6,208,638, 6,350,066, 6,597,688 and 7,020,132. j2 Global and its affiliate are seeking a permanent injunction against continued infringement, a finding of willfulness, compensatory and treble damages, attorneys' fees, interest and costs. On July 2, 2012, IGC filed a motion to dismiss the complaint or stay the action on the basis that the case is governed by a forum selection clause in a contract between a predecessor entity of j2 Global and IGC that allegedly mandates the United States District Court for the Northern District of California as the venue. On July 9, 2012, j2 Global filed its opposition to IGC's motion to dismiss. On July 30, 2012, the court heard IGC's motion to dismiss and took the motion under submission.

On July 2, 2012, IGC filed suit against j2 Global and one of its affiliates in the United States District Court for the Northern District of California, alleging that j2 Global -- through filing suit in the United States District Court for the Central District of California -- breached a contract not to sue IGC. IGC seeks monetary damages, attorneys' fees, fees and costs, injunctive relief, and specific performance of the alleged covenant not to sue IGC. j2 has not yet answered this complaint.

On February 17, 2011, Emmanuel Pantelakis (“Pantelakis”) filed suit against Protus in the Ontario Supreme Court of Justice, alleging that Protus breached a contract with Pantelakis in connection with Protus' e-mail marketing services. Pantelakis is seeking damages, attorneys' fees, interest and costs. Protus filed a responsive pleading on March 23, 2011. Discovery is ongoing. On July 16, 2012, Protus filed its responses to undertakings.

On March 7, 2011, Xpedite Systems, LLC, a subsidiary of Easylink (“Xpedite”), filed suit against j2 Global in the United States District Court for the Northern District of Georgia, Atlanta Division. The complaint alleges infringement of U.S. Patent Numbers 5,872,640 (the “'640 patent”) and 7,804,823 (the “'823 patent”). Xpedite is seeking a permanent injunction against continued infringement, damages, treble damages, an accounting of sales and profits, and interest and costs. In early July 2011, j2 Global submitted requests to put both patents at issue into reexamination proceedings. On September 8, 2011, the Examiner granted j2 Global's reexamination request with respect to the '823 patent, then on September 9, 2011, the Examiner closed the prosecution and affirmed all of the patent's claims. On October 1, 2011, the USPTO granted the reexamination request with respect to the '640 patent. On October 14, 2011, j2 Global filed a motion to stay the case in chief while the '640 reexamination proceeding is pending. The Court granted the motion to stay on December 21, 2011, staying the litigation until the final resolution of the reexamination proceedings. On February 7, 2012, the USPTO issued an Ex Parte Reexamination Certificate confirming all claims of the '640 patent. On March 13, 2012, Xpedite filed a motion to lift the stay. On March 30, 2012, j2 Global filed a second ex parte reexamination request with respect to the '640 patent and filed its opposition to the motion to lift the stay - which motion remains pending. On June 1, 2012, the USPTO issued an order granting j2 Global's second reexamination request. On May 21, 2012, j2 Global filed an appeal with the Board of Patent Appeals and Interferences (BPAI) of the Examiner's decision to close the prosecution of the '823 patent and affirm all of the claims. On June 21, 2012, the respondent's brief was filed with the BPAI.

j2 Global does not believe, based on current knowledge, that the foregoing legal proceedings or claims, including those where an unfavorable outcome is reasonably possible, 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 the timing, an unfavorable resolution of some or all of these matters could materially affect j2 Global's consolidated financial position, results of operations or cash flows in a particular period. The Company has not accrued for a loss contingency relating to certain of these legal proceedings because unfavorable outcomes are not considered by

-16-

management to be probable or the amount of any losses reasonably estimable.

8.     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 the estimate of the annual effective tax rate and, if the estimated tax rate 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. For the quarter ended June 30, 2012, the effective tax rate was 23.6%.  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 reinvest such earnings in foreign jurisdictions.  Income before income taxes included income from domestic operations of $27.7 million and $22.5 million for the six months ended June 30, 2012 and 2011, respectively, and income from foreign operations of $50.0 million and $38.5 million for the six months ended June 30, 2012 and 2011, respectively.

As of June 30, 2012 and December 31, 2011, the Company had $33.7 million and $30.1 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 operations.

Cash paid for income taxes net of refunds received was $5.7 million for the six months ended June 30, 2012.

Certain tax payments are prepaid during the year and included within prepaid expenses and other current assets on the consolidated balance sheet. The Company’s prepaid tax payments were $2.3 million and $11.0 million at June 30, 2012 and December 31, 2011, respectively.

j2 Global is currently under audit by the California Franchise Tax Board (“FTB”) for tax years 2005 through 2007.  The FTB has also issued Information Document Requests regarding the 2008 tax year, although no formal notice of audit for 2008 has been provided. The Company is also under income tax audits by the IRS for tax years 2009 and 2010 and by the Canada Revenue Agency (“CRA”) for tax years 2008 through 2010. In addition, the Company is under audit by the CRA for value added sales taxes for tax years 2009 through 2011.  It is possible that these audits may conclude in the next 12 months and that the unrecognized tax benefits the Company has recorded in relation to these tax years may change compared to the liabilities recorded for these periods. However, it is not currently possible to estimate the amount, if any, of such change.

j2 Global is also under audit by various states for non-income related taxes.

9.     Stockholders’ Equity

Common Stock Repurchase Program

In May 2010, j2 Global’s Board of Directors approved a program authorizing the repurchase of up to ten million shares of the Company’s common stock through the end of April 30, 2012 (the “2010 Program”). Effective February 15, 2012, the Company’s Board of Directors terminated and replaced this 2010 Program with a program authorizing the repurchase of up to five million shares of our common stock through February 20, 2013.  On February 15, 2012, we entered into a Rule 10b5-1 trading plan with a broker to facilitate this new repurchase program. During the six month period ended June 30, 2012, 2.1 million shares were repurchased at an aggregated cost of $58.6 million (including an immaterial amount of commission fees). j2 Global has accounted for these repurchases using the cost method. 

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 June 30, 2012, the Company purchased 6,687 shares from plan participants for this purpose. See Item II, Part 2. Unregistered Sales of Equity Securities and Use of Proceeds.

Dividends

On February 14, 2012, the Company's Board of Directors approved a quarterly cash dividend of $0.21 per share of common stock payable on March 12, 2012 to all stockholders of record as of the close of business on February 27, 2012. On May 2, 2012, the Company's Board of Directors approved a quarterly cash dividend of $0.215 per share of common stock payable on May 30, 2012 to all stockholders of record as of the close of business on May 16, 2012. On July 31, 2012, the

-17-

Company's Board of Directors approved a quarterly cash dividend of $0.22 per share of common stock payable on August 29, 2012 to all stockholders of record as of the close of business on August 13, 2012. Future dividends will be subject to Board approval.

10.     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”) 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 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 June 30, 2012, 816,977 shares underlying options and 14,700 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 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 June 30, 2012, 1,086,308 shares underlying options and 95,416 shares of restricted stock were outstanding under the 2007 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 six months ended June 30, 2012:

	Number of Shares		Weighted- Average Exercise Price		Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding at January 1, 2012	2,087,695		$	20.99
Granted	57,000		27.04
Exercised	(225,410	)	13.27
Canceled	(16,000	)	33.54
Outstanding at June 30, 2012	1,903,285		21.98		5.6	$	11,001,387
Exercisable at June 30, 2012	1,212,489		21.45		4.5	$	7,867,462
Vested and expected to vest at June 30, 2012	1,803,435		$	21.82	5.4	$	10,701,380

For the six months ended June 30, 2012, j2 Global granted 57,000 options to purchase shares of common stock pursuant to the 2007 Plan. These stock options vest 20% per year and expire 10 years from the date of grant.

The per share weighted-average grant-date fair values of stock options granted during the six months ended June 30, 2012 and 2011 were $7.88 and $13.12, respectively.

The aggregate intrinsic values of options exercised during the six months ended June 30, 2012 and 2011 were $3.2 million and $6.2 million, respectively.

As of June 30, 2012 and December 31, 2011, unrecognized stock compensation related to non-vested stock options granted under the 1997 Plan and the 2007 Plan approximated $6.8 million and $9.0 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 2.4 years (i.e., the remaining requisite service period).

-18-

Fair Value Disclosure

j2 Global uses the Black-Scholes option pricing model to calculate the fair value of each option grant. The expected volatility for the six months ended June 30, 2012 is based on historical volatility of the Company’s common stock. Beginning in the first quarter 2012, the Company estimates the expected term based upon the historical exercise behavior of our employees. Previously, the Company elected to use the simplified method for estimating the expected term. Under the simplified method, the expected term is equal to the midpoint between the vesting period and the contractual term of the stock option. 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. Prior to the initial declaration of a cash dividend on August 1, 2011, the fair value of stock options, restricted stock and restricted stock units were measured based upon an expected dividend yield of 0.0% as the Company did not historically pay cash dividends on its common stock.  For awards granted on or subsequent to August 1, 2011, the Company uses an annualized dividend yield based upon the per share dividends declared by its Board of Directors.  Estimated forfeiture rates were 14.64% and 14.64% as of June 30, 2012 and 2011, respectively.

The weighted-average fair values of stock options granted have been estimated utilizing the following assumptions:

	Six Months Ended June 30,
	2012	2011
Risk-free interest rate	0.97%	2.39%
Expected term (in years)	5.7	6.5
Dividend yield	3.43%	—%
Expected volatility	41%	42%
Weighted-average volatility	41%	42%

Restricted Stock

j2 Global has awarded restricted stock and restricted stock units to its Board of Directors and senior staff pursuant to the 1997 Plan and the 2007 Plan. Compensation expense resulting from restricted stock and restricted unit grants is measured at fair value on the date of grant and is recognized as share-based compensation expense over a five-year vesting period. The Company recognized $1.1 million and $2.1 million of compensation expense in the three and six months ended June 30, 2012, respectively, related to restricted stock and restricted stock units. As of June 30, 2012 and December 31, 2011, the Company had unrecognized share-based compensation cost of approximately $12.7 million and $11.3 million, respectively, associated with these awards. This cost is expected to be recognized over a weighted-average period of 2.22 years for awards and 4.43 years for units.

-19-

Restricted stock award activity for the six months ended June 30, 2012 is set forth below:

	Shares		Weighted-Average Grant-Date Fair Value
Nonvested at January 1, 2012	742,683		$	20.87
Granted	88,544		25.47
Vested	(184,652	)	20.37
Canceled	(900	)	29.21
Nonvested at June 30, 2012	645,675		$	21.63

Restricted stock unit award activity for the six months ended June 30, 2012 is set forth below:

	Number of Shares		Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding at January 1, 2012	32,750
Granted	64,166
Vested	(1,500	)
Canceled	—
Outstanding at June 30, 2012	95,416		3.0	$	2,520,891
Vested and expected to vest at June 30, 2012	60,453		3.0	$	1,597,179

Share-Based Compensation Expense

The following table represents share-based compensation expense included in cost of revenues and operating expenses in the accompanying condensed consolidated statements of operations for the three and six months ended June 30, 2012 and 2011 (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Cost of revenues	$	192	$	246	$	434	$	490
Operating expenses:
Sales and marketing	352		351		727		699
Research, development and engineering	117		110		233		257
General and administrative	1,494		1,524		3,054		2,990
Total	$	2,155	$	2,231	$	4,448	$	4,436

Employee Stock Purchase Plan

The Purchase Plan provides for the issuance of a maximum of two million shares of common stock. Under the Purchase Plan, eligible employees can have up to 15% of their earnings withheld, up to certain maximums, to be used to purchase shares of j2 Global’s common stock at certain plan-defined dates. The price of the common stock purchased under the Purchase Plan for the offering periods is equal to 95% of the fair market value of the common stock at the end of the offering period. For the six months ended June 30, 2012 and 2011, 2,432 and 2,840 shares were purchased under the plan, respectively. Cash received upon the issuance of common stock under the Purchase Plan was $61,000 and $77,000 for the six months ended June 30, 2012 and 2011, respectively.  As of June 30, 2012, 1,648,966 shares were available under the Purchase Plan for future issuance.

-20-

11.     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 June 30,					Six Months Ended June 30,
	2012			2011		2012			2011
Numerator for basic and diluted net earnings per common share:
Net earnings	$	31,188		$	28,514	$	59,727		$	59,449
Net earnings available to participating securities (a)	(460		)	—		(922		)	—
Net earnings available to common shareholders	30,728			28,514		58,805			59,449
Denominator:
Weighted-average outstanding shares of common stock	45,373,930			45,399,940		45,887,185			45,247,381
Dilutive effect of:
Dilutive effect of equity incentive plans	195,634			1,323,852		316,306			1,416,485
Common stock and common stock equivalents	45,569,564			46,723,792		46,203,491			46,663,866
Net earnings per share:
Basic	$	0.68		$	0.63	$	1.28		$	1.31
Diluted	$	0.67		$	0.61	$	1.27		$	1.27

(a) Represents unvested share-based payment awards that contain certain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid).

For the three and six months ended June 30, 2012 and 2011, there were 613,059 and 396,808 options outstanding, respectively, and 560,059 and 396,316 options outstanding, respectively, which were excluded from the computation of diluted earnings per share because the exercise prices were greater than the average market price of the common shares.

12.     Geographic Information

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 June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Revenues:
United States	$	54,896	$	53,247	$	109,017	$	97,603
All other countries	34,569		32,429		67,100		61,457
	$	89,465	$	85,676	$	176,117	$	159,060

	June 30, 2012		December 31, 2011
Long-lived assets:
United States	$	35,590	$	35,498
All other countries	47,617		43,436
Total	$	83,207	$	78,934

Revenues for the six months ended June 30, 2011 reflect a change in estimate of the remaining service obligation to

-21-

eFax® annual subscribers in the amount of $10.3 million which reduced subscriber revenues predominately in the United States (See Note 1 – Basis of Presentation) for further details.

13.     Subsequent Events

On July 31, 2012, the Company's Board of Directors approved a quarterly cash dividend of $0.22 per share of common stock payable on August 29, 2012 to all stockholders of record as of the close of business on August 13, 2012. Future dividends will be subject to Board approval.

On July 26, 2012, the Company completed the issuance of a private offering of $250 million in aggregate principal amount of 8.000% senior unsecured notes due 2020. The net proceeds of the offering are expected to be $243 million after deducting the commissions and fees and expenses of the offering. The Company intends to use the net proceeds from the offering for general corporate purposes, which may include acquisitions.

-22-

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Information

In addition to historical information, the foregoing Management’s Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements. These forward-looking statements involve risks, uncertainties and assumptions. The actual results may differ materially from those anticipated in these forward-looking statements as a result of many factors, including but not limited to those discussed below, the risk factors discussed in Part II, Item 1A - “Risk Factors” of this Quarterly Report on Form 10-Q (if any) and in Part I, Item 1A - “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2011 (together, the “Risk Factors”), and the factors discussed in the section in this Quarterly Report on Form 10-Q entitled “Quantitative and Qualitative Disclosures About Market Risk.” Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s opinions only as of the date hereof. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements. Readers should carefully review the Risk Factors and the risk factors set forth in other documents we file from time to time with the SEC.

Some factors that could cause actual results to differ materially from those anticipated in these forward-looking statements include, but are not limited to, our ability and intention to:

◦ Sustain growth or profitability, particularly in light of an uncertain U.S. or worldwide economy and the related impact on customer acquisition and retention rates, customer usage levels and credit and debit card payment declines;

◦ Maintain and expand our customer base and maintain or increase the average revenue per subscriber;

◦ Generate sufficient cash flow to make interest and debt payments and reinvest in our business, and pursue desired activities and businesses plans while satisfying restrictive covenants relating to debt obligations;

◦ Acquire sizeable businesses on acceptable terms and successfully integrate and realize anticipated synergies from such acquisitions;

◦ Continue to expand our business and operations internationally in the wake of numerous risks, including adverse currency fluctuations, difficulty in staffing and managing international operations, higher operating costs as a percentage of  revenues or the implementation of adverse regulations;

◦ Maintain our financial position, operating results and cash flows in the event that we incur new or unanticipated costs or income, sales or other tax liabilities;

◦ Accurately estimate the assumptions underlying our effective worldwide tax rate;

◦ Continue to pay a comparable cash dividend on a quarterly basis;

◦ Maintain favorable relationships with critical third-party vendors whose financial condition will not negatively impact the services they provide;

◦ Manage certain risks inherent to our business, such as costs associated with fraudulent activity, a system failure or security breach of our network, effectively maintaining and managing our billing systems, time and resources required to manage our legal proceedings or adhering to our internal controls and procedures;

◦ Compete with other similar providers with regard to price, service and functionality;

◦ Cost-effectively procure, retain and deploy large quantities of telephone numbers in desired locations in the United States and abroad;

◦ Achieve business and financial objectives in light of burdensome domestic and international telecommunications, Internet or other regulations including data privacy, security and retention;

◦ Successfully manage our growth, including but not limited to our operational and personnel-related resources, and integrate newly acquired businesses;

◦ Successfully adapt to technological changes in the value added messaging and communications services industry;

◦ Successfully develop and protect our intellectual property, both domestically and internationally, including our brands, patents, trademarks and domain names, and avoid infringing upon the proprietary rights of others;

◦ Diversify our service offerings and derive more revenue from those services at acceptable levels of returns-on-investment;  and

-23-

◦ Recruit and retain key personnel.

In addition, our financial results could be materially impacted by risks associated with new accounting pronouncements.

Overview

j2 Global, Inc. (“j2 Global”, “our”, “us” or “we”) is a Delaware corporation founded in 1995. We provide cloud services to businesses of all sizes, from individuals to enterprises. These services, which we provide through the Internet to our customers’ computers, mobile devices and telephones, deliver our customers increased sales and greater efficiency, flexibility, mobility, business continuity and security. We offer online fax, virtual phone systems, hosted email, email marketing, online backup, customer relationship management and bundled suites of these services. We market our services principally under the brand names eFax®, eVoice®, FuseMail®, Campaigner®, KeepItSafe®, CampaignerCRM^TMand Onebox®.

We generate substantially all of our revenues from "fixed" subscription revenues for basic customer subscriptions and “variable” usage revenues generated from actual usage by our subscribers. We also generate revenues from patent licensing and sales and advertising. We categorize our services and solutions into two basic groups: direct inward-dial number (“DID”) -based, which are services provided in whole or in part through a telephone number, and non-DID based, which are our other cloud services for business. As of June 30, 2012, we had approximately 2.1 million DIDs deployed to our paying subscribers, with additional DIDs in inventory. We operate in one reportable segment: cloud services for business.

We market our services to a broad spectrum of prospective business customers including individuals, small to medium-sized businesses, large enterprises and government organizations. Our marketing efforts include enhancing brand awareness; utilizing online advertising, search engines and affiliate programs; and selling through both a telesales and direct sales force and cross selling. We continuously seek to extend the number of distribution channels through which we acquire paying customers and improve the cost and volume of customers obtained through our current channels.

In addition to growing our business organically, we have used acquisitions to grow our customer base, expand our service offerings, enhance our technology and acquire skilled personnel. Since fiscal year 2000, we have completed 38 acquisitions in the cloud services for business industry. We continue to evaluate acquisitions on an on-going basis and expect to complete additional immaterial acquisitions in 2012. We may also pursue material acquisitions in the near term.

We have a global presence with over 625 employees across 11 offices in 6 countries, and are able to market, sell and provide our services virtually anywhere in the world where access to the Internet is available.

The following table sets forth certain key operating metrics for the three and six months ended June 30, 2012 and 2011 (in thousands, except for percentages):

	June 30,
	2012	2011
Paying telephone numbers	2,058	1,961

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011 (1)
Subscriber revenues:
Fixed	$	72,187		$	69,222		$	142,414		$	126,697
Variable	15,884			16,076			30,482			31,469
Total subscriber revenues	$	88,071		$	85,298		$	172,896		$	158,166
Percentage of total subscriber revenues:
Fixed	82.0		%	81.2		%	82.4		%	80.1		%
Variable	18.0		%	18.8		%	17.6		%	19.9		%
Revenues:
DID-based	$	81,620		$	79,544		$	160,181		$	146,650
Non-DID-based	7,845			6,132			15,936			12,410
Total revenues	$	89,465		$	85,676		$	176,117		$	159,060

-24-

(1) The amounts above reflect the change in estimate relating to the remaining service obligations to annual eFax® subscribers (See Note 1 – Basis of Presentation), which reduced subscriber revenues for the six months ended June 30, 2011 by $10.3 million.

Critical Accounting Policies and Estimates

In the ordinary course of business, we have made a number of estimates and assumptions relating to the reporting of results of operations and financial condition in the preparation of our financial statements. Actual results could differ significantly from those estimates under different assumptions and conditions. Our critical accounting policies are described in our 2011 Annual Report on Form 10-K filed with the SEC on February 28, 2012. During the three months ended June 30, 2012, there were no significant changes in our critical accounting policies and estimates.

Results of Operations for the Three and Six Months EndedJune 30, 2012

Revenues

Subscriber Revenues.

(in thousands, except percentages)	Three Months Ended June 30,		Percentage Change	Six Months Ended June 30,		Percentage Change
	2012	2011		2012	2011
Subscriber Revenues	$88,071	$85,298	3%	$172,896	$158,166	9%

Subscriber revenues consist of both a fixed monthly or annual recurring subscription component and a variable component driven by actual usage of our service offerings. Over the past three calendar years, the fixed portion of our subscriber revenues has grown and generally contributed an increasing percentage to our total subscriber revenues.  This increase in subscriber revenues was due to an increase in our subscriber base and the impact of our first quarter 2011 change in estimate relating to remaining service obligations to eFax® annual subscribers (See Note 1 – Basis of Presentation) which reduced subscriber revenues for the six months ended June 30, 2011 by $10.3 million.  The increase in our subscriber base resulted from new subscribers due to business acquisitions and subscribers coming directly to our websites; corporate, enterprise and government sales; and free-to-paid subscriber upgrades, in each case net of cancellations.

Other Revenues.

(in thousands, except percentages)	Three Months Ended June 30,		Percentage Change	Six Months Ended June 30,		Percentage Change
	2012	2011		2012	2011
Other Revenues	$1,394	$378	269%	$3,221	$894	260%

Other revenues consist primarily of revenues generated patent and technology licensing and sales transactions. The increase in other revenues for the three and six months ended June 30, 2012 resulted primarily from increased patent and technology related licensing revenues.

Cost of Revenues

(in thousands, except percentages)	Three Months Ended June 30,		Percentage Change	Six Months Ended June 30,		Percentage Change
	2012	2011		2012	2011
Cost of revenue	$16,187	$15,158	7%	$32,051	$30,950	4%
As a percent of revenue	18%	18%	—%	18%	19%	(1)%

Cost of revenues is primarily comprised of costs associated with data and voice transmission, DIDs, network operations, customer service, online processing fees and equipment depreciation. The increase in cost of revenues for the three

-25-

and six months ended June 30, 2012 was primarily due to an increase in costs associated with businesses acquired in the last twelve months that for at least some portion of the first six months of fiscal 2012 were not yet fully integrated into j2 Global, partially offset by reduced processing fees and a decrease in personnel and severance costs associated with businesses acquired in the prior comparable period.

Operating Expenses

Sales and Marketing.

(in thousands, except percentages)	Three Months Ended June 30,		Percentage Change	Six Months Ended June 30,		Percentage Change
	2012	2011		2012	2011
Sales and Marketing	$13,860	$14,345	(3)%	$28,721	$29,856	(4)%
As a percent of revenue	15%	17%	(2)%	16%	19%	(3)%

Our sales and marketing costs consist primarily of Internet-based advertising, sales and marketing, personnel costs and other business development-related expenses. Our Internet-based advertising relationships consist primarily of fixed cost and performance-based (cost-per-impression, cost-per-click and cost-per-acquisition) advertising relationships with an array of online service providers. We have a disciplined return-on-investment approach to our Internet-based advertising and marketing spend, which can cause sales and marketing costs as a percentage of total revenues to vary from period to period based upon available opportunities. Advertising cost for the three months ended June 30, 2012 and 2011 was $11.3 million and $10.8 million, respectively, and for the six months ended June 30, 2012 and 2011 was $23.0 million and $22.4 million, respectively.  The decrease in sales and marketing expenses for the three months ended June 30, 2012 was primarily due to a decrease in personnel costs associated with businesses acquired and lower commissions and consulting fees, partially offset by additional advertising in comparison to the prior comparable quarter. The decrease in sales and marketing expenses for the six months ended June 30, 2012 was primarily due to a decrease in personnel and severance costs associated with businesses acquired partially offset by additional advertising in comparison to the prior comparable period.

Research, Development and Engineering.

(in thousands, except percentages)	Three Months Ended June 30,		Percentage Change	Six Months Ended June 30,		Percentage Change
	2012	2011		2012	2011
Research, Development and Engineering	$4,617	$3,837	20%	$9,106	$8,609	6%
As a percent of revenue	5%	4%	1%	5%	5%	—

Our research, development and engineering costs consist primarily of personnel-related expenses.  The increase in research, development and engineering costs for the three months ended June 30, 2012 was primarily due to an increase in personnel costs associated with businesses acquired in comparison to the prior comparable quarter and additional expenses for professional services. The increase in research, development and engineering costs for the six months ended June 30, 2012 was primarily due to an increase in personnel costs associated with businesses acquired subsequent to the prior comparable period.

General and Administrative.

(in thousands, except percentages)	Three Months Ended June 30,		Percentage Change	Six Months Ended June 30,		Percentage Change
	2012	2011		2012	2011
General and Administrative	$14,774	$14,392	3%	$28,603	$28,634	—%
As a percent of revenue	17%	17%	—%	16%	18%	(2)%

Our general and administrative costs consist primarily of personnel-related expenses, depreciation and amortization, share-based compensation expense, bad debt expense, professional fees and insurance costs. The increase in general and administrative expense for the three months ended June 30, 2012 was primarily due to an increase in professional fees, legal settlements and additional amortization of intangible assets related to businesses acquired in comparison to the prior comparable quarter partially offset by certain losses on sublease and asset retirements in the prior comparable quarter. The decrease in general and administrative expense for the six months ended June 30, 2012 was primarily due to a decrease in

-26-

personnel and severance costs associated with businesses acquired and certain losses on sublease and asset retirements in comparison to the prior comparable period partially offset by an increase in professional fees and legal settlements.

Share-Based Compensation

The following table represents share-based compensation expense included in cost of revenues and operating expenses in the accompanying condensed consolidated statements of operations for the three and six months ended June 30, 2012 and 2011 (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Cost of revenues	$	192	$	246	$	434	$	490
Operating expenses:
Sales and marketing	352		351		727		699
Research, development and engineering	117		110		233		257
General and administrative	1,494		1,524		3,054		2,990
Total	$	2,155	$	2,231	$	4,448	$	4,436

Non-Operating Income and Expenses

Interest and Other Income (Expense), net. Our interest and other income (expense), net is generated primarily from gain or loss on foreign exchange and interest earned on cash, cash equivalents and short-term and long-term investments . Interest and other income (expense), net was $0.8 million and $0.3 million for the three months ended June 30, 2012 and 2011, respectively. The increase in interest and other income (expense), net was primarily due to a gain on sale of an investment, additional interest income and gain on foreign exchange primarily from short-term intercompany balances denominated in foreign currencies that remained unsettled.

Income Taxes

Our effective tax rate is based on pre-tax income, statutory tax rates, tax regulations (including those related to transfer pricing) and different tax rates in the various jurisdictions in which we operate. The tax bases of our assets and liabilities reflect our best estimate of the tax benefits and costs we expect to realize. When necessary, we establish valuation allowances to reduce our deferred tax assets to an amount that will more likely than not be realized. 

Provision for income taxes amounted to $9.6 million and $9.7 million for the three months ended June 30, 2012 and 2011, respectively.  Income tax expense for the six months ended June 30, 2012 and 2011 was $18.0 million and $1.5 million, respectively. Our effective tax rate was 23.6% and 25.4% for the three months ended June 30, 2012 and 2011, respectively, and 23.2% and 2.5% for the six months ended June 30, 2012 and 2011, respectively. The decrease in our effective income tax rate for the three months ended June 30, 2012 was primarily attributable to the following:

1. an increase during the second quarter 2012 in the portion of our income being taxed in foreign jurisdictions and subject to lower tax rates than in the U.S.; partially offset by:

2. an increase during the second quarter 2012 of uncertain income tax positions.

The increase in our effective income tax rate for the six months ended June 30, 2012 was primarily attributable to the following:

1. a reversal during the first quarter 2011 of approximately $14.1 million of uncertain income tax positions as a result of expiring statutes of limitations; partially offset by:

2. an increase during 2012 in the portion of our income being taxed in foreign jurisdictions and subject to lower tax rates than in the U.S.; and

3. a decrease during 2012 of uncertain income tax positions.

-27-

Liquidity and Capital Resources

Cash and Cash Equivalents and Investments

At June 30, 2012, we had cash and investments of $206.8 million compared to $220.9 million at December 31, 2011. The decrease resulted primarily from share repurchases, dividends and business acquisitions, partially offset by cash provided by operations. At June 30, 2012, cash and investments consisted of cash and cash equivalents of $142.9 million, short-term investments of $41.7 million and long-term investments of $22.2 million. Our investments are comprised primarily of readily marketable corporate and governmental debt securities, money-market accounts and time deposits. For financial statement presentation, we classify our investments primarily as available-for-sale; thus, they are reported as short- and long-term based upon their maturity dates. Short-term investments mature within one year of the date of the financial statements and long-term investments mature one year or more from the date of the financial statements. Short-term investments include restricted balances in which the Company may not liquidate certain investments until maturity, generally within 12 months.  Restricted balances included in short-term investments were $17.0 million at June 30, 2012. We retain a substantial portion of our cash and investments in foreign jurisdictions for future reinvestment. As of June 30, 2012, cash and investments held within foreign and domestic jurisdictions were $118.8 million and $ 88.0 million, respectively.  If we were to repatriate funds held within foreign jurisdictions, we would incur U.S. income tax on the repatriated amount at an approximate blended federal and state rate of 40%, net of a credit for foreign taxes paid on such amounts.

On February 14, 2012, the Company's Board of Directors approved a quarterly cash dividend of $0.21 per share of common stock payable on March 12, 2012 to all stockholders of record as of the close of business on February 27, 2012. On May 2, 2012, the Company's Board of Directors approved a quarterly cash dividend of $0.215 per share of common stock payable on May 30, 2012 to all stockholders of record as of the close of business on May 16, 2012.  On July 31, 2012, the Company's Board of Directors approved a quarterly cash dividend of $0.22 per share of common stock payable on August 29, 2012 to all stockholders of record as of the close of business on August 13, 2012. Future dividends are subject to Board approval and certain restrictions within the Credit Agreement (the “Credit Agreement”) with Union Bank, N.A. (“Lender”) and within the Indenture relating to the note issuance referenced below, a copy of which the Company filed with the SEC as an exhibit to its Current Report on Form 8-K on July 26, 2012.

On July 26, 2012, the Company completed the issuance of a private offering of $250 million in aggregate principal amount of 8.000% senior unsecured notes due 2020. The net proceeds of the offering are expected to be $243 million after deducting the commissions and fees and expenses of the offering. The Company intends to use the net proceeds from the offering for general corporate purposes, which may include acquisitions.

We currently anticipate that our existing cash and cash equivalents and short-term investment balances and cash generated from operations will be sufficient to meet our anticipated needs for working capital, capital expenditure, investment requirements, stock repurchases and cash dividends for at least the next 12 months.

Cash Flows

Our primary sources of liquidity are cash flows generated from operations, together with cash and cash equivalents and short-term investments. Net cash provided by operating activities was $85.3 million and $80.6 million for the six months ended June 30, 2012 and 2011, respectively. Our operating cash flows resulted primarily from cash received from our subscribers offset by excess tax benefit from share-based compensation, cash payments we made to third parties for their services and employee compensation. Certain tax payments are prepaid during the year and included within prepaid expenses and other current assets on the consolidated balance sheet. Our prepaid tax payments were $2.3 million and $11.0 million at June 30, 2012 and December 31, 2011, respectively. A significant portion of our subscribers pay us via credit cards and therefore our receivables from subscribers generally settle quickly.

Net cash used in investing activities was approximately $(6.7) million and $(23.0) million for the six months ended June 30, 2012 and 2011, respectively. For the six months ended June 30, 2012, net cash used in investing activities was primarily attributable to the purchase of available-for-sale investments, purchase of certificates of deposit, business acquisitions, property and equipment and intangible assets partially offset by the sale of available-for-sale investments.  For the six months ended June 30, 2011, net cash used in investing activities was primarily attributable to the purchase of available-for-sale investments and property and equipment partially offset by the sale of available-for-sale investments.

Net cash (used in) provided by financing activities was approximately $(76.0) million and $6.6 million for the six months ended June 30, 2012 and 2011, respectively. For the six months ended June 30, 2012, net cash used in financing

-28-

activities was primarily attributable to repurchase of stock and dividends paid partially offset by proceeds received upon the exercise of options and excess tax benefit from share-based compensation.  For the six months ended June 30, 2011, net cash provided by financing activities was primarily attributable to proceeds from the exercise of stock options and excess tax benefit from share-based compensation partially offset by repurchases of stock.

Contractual Obligations and Commitments

The following table summarizes our contractual obligations and commitments as of June 30, 2012:

	Payments Due in (in thousands)
Contractual Obligations	2012		2013		2014		2015		2016		Thereafter		Total
Operating leases (a)	$	1,544	$	2,501	$	2,360	$	1,838	$	1,629	$	4,852	$	14,724
Telecom services and co-location facilities (b)	2,405		2,889		349		38		—		—		5,681
Computer software and related services (c)	119		215		24		—		—		—		358
Holdback payment (d)	673		1,197		443		—		—		—		2,313
Other (e)	372		373		120		120		120		—		1,105
Total	$	5,113	$	7,175	$	3,296	$	1,996	$	1,749	$	4,852	$	24,181

________________________

(a) These amounts represent undiscounted future minimum rental commitments under noncancellable leases.

(b) These amounts represent service commitments to various telecommunication providers.

(c) These amounts represent software license commitments.

(d) These amounts represent the holdback amounts in connection with certain business acquisitions.

(e) These amounts primarily represent certain marketing and consulting arrangements.

As of June 30, 2012, our liability for uncertain tax positions was $33.7 million. The future payments related to uncertain tax positions have not been presented in the table above due to the uncertainty of the amounts and timing of cash settlement with the taxing authorities.

Credit Agreement

On January 5, 2009, we entered into a Credit Agreement with Union Bank, N.A. in order to further enhance our liquidity in the event of potential acquisitions or other corporate purposes. On August 16, 2010, we entered into an amended Credit Agreement with the Lender. On July 13, 2012, in connection with the issuance of senior unsecured notes as discussed in Note 13 - Subsequent Events, we entered into an amended Credit Agreement with the Lender. We have not drawn down any amounts under the Credit Agreement. See Note 8 - Commitments and Contingencies within our Annual Report on Form 10-K for the year ended December 31, 2011 for further details regarding the Credit Agreement.

-29-

Item 3. Quantitative and Qualitative Disclosures About Market Risk

The following discussion of the market risks we face contains forward-looking statements. Forward-looking statements are subject to risks and uncertainties. Actual results could differ materially from those discussed in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s opinions only as of the date hereof. j2 Global undertakes no obligation to revise or publicly release the results of any revision to these forward-looking statements. Readers should carefully review the risk factors described in this document and in the other documents incorporated by reference herein, including our Annual Report on Form 10-K for the year ended December 31, 2011 as well as in other documents we file from time to time with the SEC, including the Quarterly Reports on Form 10-Q and any Current Reports on Form 8-K filed or to be filed by us in 2012.

Interest Rate Risk

Our exposure to market risk for changes in interest rates relates primarily to our investment portfolio. We maintain an investment portfolio of various holdings, types and maturities. The primary objectives of our investment activities are to preserve our principal while at the same time maximizing yields without significantly increasing risk. To achieve these objectives, we maintain our portfolio of cash equivalents and investments in a mix of instruments that meet high credit quality standards, as specified in our investment policy. Our cash and cash equivalents are not subject to significant interest rate risk due to the short maturities of these instruments. As of June 30, 2012, the carrying value of our cash and cash equivalents approximated fair value. Our return on these investments is subject to interest rate fluctuations.

Our short- and long-term investments are comprised primarily of readily marketable corporate and governmental debt securities and certificates of deposits. Investments in fixed rate interest earning instruments carry a degree of interest rate risk. Fixed rate securities may have their fair market value adversely impacted due to a rise in interest rates. Our interest income is sensitive to changes in the general level of U.S. and foreign countries’ interest rates. Due in part to these factors, our future investment income may fall short of expectations due to changes in interest rates.

As of June 30, 2012, we had investments in debt securities with effective maturities greater than one year of approximately $22.2 million. Such investments had a weighted average yield of approximately 1%. As of June 30, 2012 and December 31, 2011, we had cash and cash equivalent investments in time deposits and money market funds with maturities of 90 days or less of $142.9 million and $139.4 million, respectively. Based on our cash and cash equivalents and short- and long-term investment holdings as of June 30, 2012, an immediate 100 basis point decline in interest rates would decrease our annual interest income to approximately zero.

We are parties to the Credit Agreement with the Lender, as amended. If we were to borrow under the Credit Agreement we would be subject to the prevailing interest rates and could be exposed to interest rate fluctuations.

We cannot ensure that future interest rate movements will not have a material adverse effect on our future business, prospects, financial condition, operating results and cash flows. To date, we have not entered into interest rate hedging transactions to control or minimize certain of these risks.

Foreign Currency Risk

We conduct business in certain foreign markets, primarily in Canada and the European Union. Our principal exposure to foreign currency risk relates to investment and inter-company debt in foreign subsidiaries that transact business in functional currencies other than the U.S. Dollar, primarily the Canadian Dollar, Euro, British Pound Sterling, Australian Dollar and Japanese Yen. If we are unable to settle our short term inter-company debts in a timely manner, we remain exposed to foreign currency fluctuations. As we expand our international presence, we become further exposed to foreign currency risk by entering new markets with additional foreign currencies.

As we increase our operations in international markets we become increasingly exposed to changes in currency exchange rates. The economic impact of currency exchange rate movements is often linked to variability in real growth, inflation, interest rates, governmental actions and other factors. These changes, if material, could cause us to adjust our financing and operating strategies.

As currency exchange rates change, translation of the income statements of the international businesses into U.S. Dollars affects year-over-year comparability of operating results. Historically, we have not hedged translation risks because cash flows from international operations were generally reinvested locally; however, we may do so in the future. Our objective in managing foreign exchange risk is to minimize the potential exposure to changes that exchange rates might have on earnings, cash flows

-30-

and financial position.

Foreign exchange gains and (losses) were not material to our earnings for the three and six months ended June 30, 2012, where net foreign currency gain/(loss) amounted to approximately $0.4 million and $(0.6) million, respectively. For the three and six months ended June 30, 2012, cumulative translation adjustments included in other comprehensive income amounted to approximately ($1.4) million and zero, respectively. Such gains/(losses) resulted primarily from short term intercompany balances denominated in foreign currencies that remained unsettled.

Item 4. Controls and Procedures

(a) Evaluation of Disclosure Controls and Procedures

j2 Global’s management, with the participation of our principal executive officer and principal financial officer, performed an evaluation of j2 Global’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934 (“Exchange Act”)) as of the end of the period covered by this report. Our principal executive officer and principal financial officer have concluded that j2 Global’s disclosure controls and procedures were effective to ensure that information required to be disclosed in reports we file or submit under the Exchange Act is (1) recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms, and (2) accumulated and communicated to our management to allow their timely decisions regarding required disclosure.

(b) Changes in Internal Controls

There were no changes in our internal control over financial reporting that occurred during the second quarter ended June 30, 2012 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

-31-

PART II.   OTHER INFORMATION

Item 1. Legal Proceedings

See Note 7 – Commitments and Contingencies of the Notes to Financial Statements (Part I, Item 1) for information regarding certain legal proceedings in which we are involved.

Item 1A. Risk Factors

In addition to the other information set forth in this report, before deciding to invest in j2 Global or to maintain or increase your investment, you should carefully consider the factors discussed in Part I, Item 1A “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2011 (the “10-K Risk Factors”). If any of these risks occur, our business, prospects, financial condition, operating results and cash flows could be materially adversely affected. The 10-K Risk Factors are not the only ones we face. Additional risks and uncertainties not presently known to us or that we currently deem immaterial also may impair our business operations. There have been no material changes from the 10-K Risk Factors, except as discussed below:

Our level of indebtedness could adversely affect our financial flexibility and our competitive position.

As of June 30, 2012, after giving effect to the offering of our 8.000% Senior Notes due 2020 (the “Senior Notes”), which closed on July 26, 2012, our total indebtedness would have been approximately $250 million, and we would have had approximately $40 million of unused availability under our revolving credit facility. Our level of indebtedness could have significant effects on our business. For example, it could:

•             make it more difficult for us to satisfy our obligations with respect to the Senior Notes and any other indebtedness we may incur in the future;

•             increase our vulnerability to adverse changes in general economic, industry and competitive conditions;

•             require us to dedicate a substantial portion of our cash flow from operations to make payments on our indebtedness, thereby reducing the availability of our cash flow to fund working capital, capital expenditures, acquisitions and other elements of our business strategy and other general corporate purposes, including share repurchases and payment of dividends;

•             limit our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate;

•             require us to repatriate cash for debt service from our foreign subsidiaries resulting in dividend tax costs or require us to adopt other disadvantageous tax structures to accommodate debt service payments;

•              restrict us from exploiting business opportunities;

•             make it more difficult to satisfy our financial obligations, including payments on the Senior Notes;

•             place us at a competitive disadvantage compared to our competitors that have less indebtedness; and

•             limit our ability to borrow additional funds for working capital, capital expenditures, acquisitions, debt service requirements, execution of our business strategy or other general corporate purposes.

In addition, the credit agreement related to our revolving credit facility and the indenture governing the Senior Notes do, and the agreements evidencing or governing other future indebtedness may, contain restrictive covenants that will limit our ability to engage in activities that may be in our long-term best interests. Our failure to comply with those covenants could result in an event of default which, if not cured or waived, could result in the acceleration of all of our indebtedness.

To service our debt and fund our other capital requirements, we will require a significant amount of cash, and our ability to generate cash will depend on many factors beyond our control.

Our ability to meet our debt service obligations, including the Senior Notes, and to fund working capital, capital expenditures, acquisitions and other elements of our business strategy and other general corporate purposes, including share repurchases and payment of dividends, will depend upon our future performance, which will be subject to financial, business and other factors affecting our operations, many of which are beyond our control. To some extent, this is subject to general and regional economic, financial, competitive, legislative, regulatory and other factors that are beyond our control. These factors are discussed in greater detail under “-Risks Related to Our Business” and “-Risks Related to Our Industry” in our Annual Report on Form 10-K for the year ended December 31, 2011 (the “10-K Risk Factors”). We cannot ensure that we will generate cash flow from operations, or that future borrowings will be available, in an amount sufficient to enable us to pay our debt, including the Senior Notes, or to fund our other liquidity needs.

-32-

If our cash flows and capital resources are insufficient to fund our debt service obligations, we could face substantial liquidity problems and could be forced to reduce or delay investments and capital expenditures or to dispose of material assets or operations, seek additional indebtedness or equity capital or restructure or refinance our indebtedness, including the Senior Notes. We may not be able to effect any such alternative measures on commercially reasonable terms or at all and, even if successful, those alternative actions may not allow us to meet our scheduled debt service obligations. The credit agreement related to our revolving credit facility and the indenture governing the Senior Notes restrict our ability to dispose of assets and use the proceeds from those dispositions and may also restrict our ability to raise indebtedness or equity capital to be used to repay other indebtedness when it becomes due. We may not be able to consummate those dispositions or to obtain proceeds in an amount sufficient to meet any debt service obligations then due.

Our inability to generate sufficient cash flows to satisfy our debt obligations, or to refinance our indebtedness on commercially reasonable terms, or at all, would materially and adversely affect our financial position and results of operations and our ability to satisfy our debt obligations.

The terms of the credit agreement related to our revolving credit facility and the indenture governing the Senior Notes restrict our current and future operations, particularly our ability to respond to changes or to take certain actions.

The credit agreement related to our revolving credit facility and the indenture governing the Senior Notes contain a number of restrictive covenants that impose significant operating and financial restrictions on us and may limit our ability to plan for or react to market conditions, meet capital needs or make acquisitions, or otherwise restrict our activities or business plans. These include restrictions on our ability to:

•             incur additional indebtedness;

•              create liens;

•             engage in sale-leaseback transactions;

•              pay dividends or make distributions in respect of capital stock;

•             purchase or redeem capital stock;

•              make investments or certain other restricted payments;

•             sell assets;

•              enter into transactions with affiliates; or

•             effect a consolidation or merger.

In addition, the restrictive covenants in the credit agreement related to our revolving credit facility require us to maintain specified financial ratios and satisfy other financial condition tests. Our ability to meet those financial ratios and tests can be affected by events beyond our control.

A breach of the covenants under the indenture governing the Senior Notes or under the credit agreement related to our revolving credit facility could result in an event of default under the applicable indebtedness. Such a default may allow the creditors to accelerate the related indebtedness and may result in the acceleration of any other indebtedness to which a cross-acceleration or cross-default provision applies. In addition, an event of default under the credit agreement related to our revolving credit facility would permit the lenders under that facility to terminate all commitments to extend further credit under that facility. Furthermore, if we were unable to repay any amounts due and payable under our revolving credit facility, those lenders could proceed against the collateral granted to them to secure that indebtedness. In the event our lenders or the holders of our Senior Notes accelerate the repayment of our borrowings, we and our subsidiaries may not have sufficient assets to repay that indebtedness or our other indebtedness.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

(a) Unregistered Sales of Equity Securities

None.

(b) Issuer Purchases of Equity Securities

Effective February 15, 2012, our 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").  On February 15, 2012, we entered into a Rule 10b5-1 trading plan with a broker to facilitate the 2012 Program. During the six month period ended June 30, 2012, we repurchased 2.1 million shares under the 2012 Program at an aggregated cost of $58.6 million (including an immaterial amount of commission fees).

-33-

The following table details the repurchases that were made under and outside the 2012 Program during the three months ended June 30, 2012:

Period	Total Number of Shares Purchased (1)	Average Price Paid Per Share		Total Number of Shares Purchased as Part of a Publicly Announced Program	Maximum Number of Shares That May Yet Be Purchased Under the Publicly Announced Program
April 1, 2012 - April 30, 2012	1,160	$	25.30	—	3,700,000
May 1, 2012 - May 31, 2012	581,373	$	23.90	581,373	3,118,627
June 1, 2012 - June 30, 2012	250,234	$	24.02	244,707	2,873,920
Total	832,767			826,080	2,873,920

(1) Includes shares surrendered to the Company to pay the exercise price and/or to satisfy tax withholding obligations in connection with employee stock options and/or the vesting of restricted stock issued to employees.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not Applicable

Item 5. Other Information

None.

-34-

Item 6. Exhibits

31.1	Rule 13a-14(a) Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Rule 13a-14(a) Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Section 1350 Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Section 1350 Certification of Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	The following financial information from j2 Global, Inc.'s Quarterly Report on Form 10-Q for the quarter ended June 30, 2012, formatted in XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets as of June 30, 2012 and December 31, 2011, (ii) Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2012 and 2011, (iii) Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2012 and 2011, (iv) Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2012 and 2011, and (v) the Notes to Condensed Consolidated Financial Statements.

-35-

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		j2 Global, Inc.
Date:	August 6, 2012	By:	/s/ NEHEMIA ZUCKER
			Nehemia Zucker
			Chief Executive Officer
			(Principal Executive Officer)

Date:	August 6, 2012	By:	/s/ KATHLEEN M. GRIGGS
			Kathleen M. Griggs
			Chief Financial Officer
			(Principal Financial Officer)

Date:	August 6, 2012	By:	/s/ STEVE P. DUNN
			Steve P. Dunn
			Chief Accounting Officer

-36-

INDEX TO EXHIBITS

Exhibit Number	Description
31.1	Rule 13a-14(a) Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Rule 13a-14(a) Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Section 1350 Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Section 1350 Certification of Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	The following financial information from j2 Global, Inc.'s Quarterly Report on Form 10-Q for the quarter ended June 30, 2012, formatted in XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets as of June 30, 2012 and December 31, 2011, (ii) Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2012 and 2011, (iii) Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2012 and 2011, (iv) Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2012 and 2011, and (v) the Notes to Condensed Consolidated Financial Statements.

-37-

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Nehemia Zucker, certify that:

1. I have reviewed this quarterly report on Form 10-Q of j2 Global, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

		/s/ NEHEMIA ZUCKER
		Nehemia Zucker
Dated:	August 6, 2012	Chief Executive Officer (Principal Executive Officer)

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Kathleen M. Griggs, certify that:

1. I have reviewed this quarterly report on Form 10-Q of j2 Global, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

		/s/ KATHLEEN M. GRIGGS
		Kathleen M. Griggs
Dated:	August 6, 2012	Chief Financial Officer (Principal Financial Officer)

EX-32.1

EXHIBIT 32.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Nehemia Zucker, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

1. The accompanying quarterly report on Form 10-Q for the quarter ended June 30, 2012 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities and Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of j2 Global Communications, Inc.

		/s/ NEHEMIA ZUCKER
		Nehemia Zucker
Dated:	August 6, 2012	Chief Executive Officer (Principal Executive Officer)

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act has been provided to j2 Global, Inc. and will be retained by j2 Global, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

EXHIBIT 32.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Kathleen M. Griggs, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

1. The accompanying quarterly report on Form 10-Q for the quarter ended June 30, 2012 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities and Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of j2 Global Communications, Inc.

		/s/ KATHLEEN M. GRIGGS
		Kathleen M. Griggs
Dated:	August 6, 2012	Chief Financial Officer (Principal Financial Officer)

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act has been provided to j2 Global, Inc. and will be retained by j2 Global, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Goodwill And Intangible Assets (Indefinite Intangible Assets) (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Intangible assets	$ 32,800	$ 33,571
Tradename [Member]
Intangible assets	27,382	28,254
Other Intangible Assets [Member]
Intangible assets	$ 5,418	$ 5,317

XML

Earnings Per Share (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Earnings Per Share Reconciliation [Abstract]
Net earnings	$ 31,188	$ 28,514	$ 59,727	$ 59,449
Net earnings available to participating securities	(460)	0	(922)	0
Net earnings available to common shareholders	$ 30,728	$ 28,514	$ 58,805	$ 59,449
Weighted-average outstanding shares of common stock - basic	45,373,930	45,399,940	45,887,185	45,247,381
Dilutive effect of equity incentive plans	195,634	1,323,852	316,306	1,416,485
Weighted-average outstanding shares of common stock - diluted	45,569,564	46,723,792	46,203,491	46,663,866
Basic	$ 0.68	$ 0.63	$ 1.28	$ 1.31
Diluted	$ 0.67	$ 0.61	$ 1.27	$ 1.27
Share options excluded from the computation of diluted earnings per share	613,059	396,808	560,059	396,316

XML

Stock Options And Employee Stock Purchase Plan (Restricted Stock) (Details) (USD $)	3 Months Ended		6 Months Ended		3 Months Ended	6 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012 Restricted Stock And Restricted Stock Unit (RSU) [Member]	Jun. 30, 2012 Restricted Stock And Restricted Stock Unit (RSU) [Member]	Dec. 31, 2011 Restricted Stock And Restricted Stock Unit (RSU) [Member]	Jun. 30, 2012 Restricted Stock [Member]	Jun. 30, 2012 Restricted Stock Units (RSUs) [Member]
Compensation cost recognized	$ 2,155,000	$ 2,231,000	$ 4,448,000	$ 4,436,000	$ 1,100,000	$ 2,100,000
Allocated Share-based Compensation Expense	2,155,000	2,231,000	4,448,000	4,436,000	1,100,000	2,100,000
Shares, Nonvested at January 1, 2012								742,683	32,750
Shares, Granted								88,544	64,166
Shares, Vested								(184,652)	(1,500)
Shares, Canceled								(900)	0
Shares, Nonvested at March 31, 2012								645,675	95,416
Share Based Compensation Equity Awards Other Than Options Expected To Vest Shares									60,453
Weighted-Average Grant-Date Fair Value, Nonvested at January 1, 2012								$ 20.87
Weighted-Average Grant-Date Fair Value, Granted								$ 25.47
Weighted-Average Grant-Date Fair Value, Vested								$ 20.37
Weighted-Average Grant-Date Fair Value, Canceled								$ 29.21
Weighted-Average Grant-Date Fair Value, Nonvested at March 31, 2012								$ 21.63
Weighted-average period to recognize compensation cost (in years)								2 years 2 months 19 days	4 years 5 months 5 days
Unrecognized compensation cost related to non-vested awards granted					12,700,000	12,700,000	11,300,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms									3 years
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Expected To Vest Weighted Average Remaining Contractual Term									3 years
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Expected To Vest Intrinsic Value									1,597,179
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Outstanding, Aggregate Intrinsic Value									$ 2,520,891

XML

Investments (Summary Of Gross Unrealized Gains And Losses And Fair Values) (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Equity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	$ 215
Available-for-sale Securities, Gross Unrealized Gains	2
Available-for-sale Securities, Gross Unrealized Losses	0
Available-for-sale Securities, Fair Value Disclosure	217
Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	46,719	73,731
Available-for-sale Securities, Gross Unrealized Gains	116	99
Available-for-sale Securities, Gross Unrealized Losses	(139)	(241)
Available-for-sale Securities, Fair Value Disclosure	$ 46,696	$ 73,589

XML

Goodwill And Intangible Assets (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2012

Dec. 31, 2011

Goodwill and Intangible Assets Disclosure [Abstract]

Changes In Carrying Amounts Of Goodwill

The changes in carrying amounts of goodwill for the six months ended June 30, 2012 are as follows (in thousands):

Balance as of January 1, 2012	$	279,016
Goodwill acquired	10,944
Purchase Accounting Adjustments	(301		)
Foreign exchange translation	(400		)
Balance as of June 30, 2012	$	289,259

Schedule Of Intangible Assets With Indefinite Lives

Intangible assets with indefinite lives:

	June 30, 2012		December 31, 2011
Tradename	$	27,382	$	28,254
Other	5,418		5,317
Total	$	32,800	$	33,571

Finite-Lived Intangible Assets By Major Class

As of June 30, 2012, intangible assets subject to amortization relate primarily to the following (in thousands):

	Weighted-Average Amortization Period	Historical Cost		Accumulated Amortization			Net
Tradenames	11.2 years	$	12,165	$	(5,053	)	$	7,112
Patent and patent licenses	8.4 years	40,631		(22,564		)	18,067
Customer relationships	6.6 years	57,199		(17,154		)	40,045
Other purchased intangibles	4.7 years	11,697		(7,809		)	3,888
Total		$	121,692	$	(52,580	)	$	69,112

As of December 31, 2011, intangible assets subject to amortization relate primarily to the following (in thousands):

	Weighted-Average Amortization Period	Historical Cost		Accumulated Amortization			Net
Tradenames	12.6 years	$	10,584	$	(4,147	)	$	6,437
Patent and patent licenses	8.4 years	38,229		(20,712		)	17,517
Customer relationships	6.7 years	49,245		(13,380		)	35,865
Other purchased intangibles	4.7 years	11,545		(6,868		)	4,677
Total		$	109,603	$	(45,107	)	$	64,496

XML

Subsequent Events (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	0 Months Ended			6 Months Ended
	Aug. 01, 2012	May 03, 2012	Feb. 15, 2012	Jun. 30, 2012
Subsequent Events [Abstract]
Debt Instrument, Issuance Date				Jul. 26, 2012
Debt Instrument, Face Amount				$ 250
Debt Instrument, Interest Rate, Stated Percentage				8.00%
Proceeds from Debt, Net of Issuance Costs				$ 243
Dividends declared date	Jul. 31, 2012	May 02, 2012	Feb. 14, 2012
Dividend amount to be paid, per common share	$ 0.22	$ 0.215	$ 0.21
Date dividend is payable	Aug. 29, 2012	May 30, 2012	Mar. 12, 2012
Date shareholders must be on record for dividend	Aug. 13, 2012	May 16, 2012	Feb. 27, 2012

XML

Stockholders' Equity (Details) (USD $) In Millions, except Share data, unless otherwise specified	0 Months Ended			3 Months Ended	6 Months Ended
	Aug. 01, 2012	May 03, 2012	Feb. 15, 2012	Jun. 30, 2012	Jun. 30, 2012
Class of Stock [Line Items]
Stock Repurchased					2,100,000
Aggregate cost for repurchase of common stock					$ 58.6
Shares surrendered to pay exercise price or satisfy tax withholding obligations for stock options exercised/restricted stock				6,687
Dividend amount to be paid, per common share	$ 0.22	$ 0.215	$ 0.21
Dividend, declaration date	Jul. 31, 2012	May 02, 2012	Feb. 14, 2012
Dividend, date to be paid	Aug. 29, 2012	May 30, 2012	Mar. 12, 2012
Dividend, date of record	Aug. 13, 2012	May 16, 2012	Feb. 27, 2012
2010 Repurchase Program [Member]
Class of Stock [Line Items]
Maximum number of shares authorized to be repurchased				10,000,000	10,000,000
2012 Repurchase Program [Member]
Class of Stock [Line Items]
Maximum number of shares authorized to be repurchased				5,000,000	5,000,000

XML

Goodwill And Intangible Assets (Narrative) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Finite-Lived Intangible Assets [Line Items]
Intangible assets subjected to amortization			$ 0.9
Identifiable intangible assets minimum useful life (years)			1 year 6 months
Amortization expense	3.7	3.3	7.1	6.8
Estimated future amortization expense in year 2012	18.4		18.4
Estimated future amortization expense in year 2013	14.2		14.2
Estimated future amortization expense in year 2014	12.4		12.4
Estimated future amortization expense in year 2015	11.4		11.4
Estimated future amortization expense in year 2016	10.0		10.0
Estimated future amortization expense thereafter	$ 9.8		$ 9.8
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

XML

Stock Options And Employee Stock Purchase Plan (Allocation Of Share-Based Compensation Expense) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Allocated Share-based Compensation Expense	$ 2,155	$ 2,231	$ 4,448	$ 4,436
Cost Of Revenues [Member]
Allocated Share-based Compensation Expense	192	246	434	490
Sales And Marketing [Member]
Allocated Share-based Compensation Expense	352	351	727	699
Research, Development And Engineering [Member]
Allocated Share-based Compensation Expense	117	110	233	257
General And Administrative [Member]
Allocated Share-based Compensation Expense	$ 1,494	$ 1,524	$ 3,054	$ 2,990

XML

Basis Of Presentation

6 Months Ended

Jun. 30, 2012

Accounting Policies [Abstract]

Basis of Presentation and Significant Accounting Policies [Text Block]

Basis of Presentation

j2 Global, Inc. (“j2 Global” or the “Company”) is a Delaware corporation founded in 1995. j2 Global provides cloud services to businesses of all sizes, from individuals to enterprises. The Company’s hosted solutions deliver its customers greater efficiency, flexibility, mobility, business continuity and security.  j2 Global offers online fax, virtual phone systems, hosted email, email marketing, online backup, customer relationship management and bundled suites of these services. The Company markets its services principally under the brand names eFax®, eVoice®, FuseMail®, Campaigner®, KeepItSafe®, CampaignerCRM^TM and Onebox®.

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 accounting principles generally accepted in the United States of America (“GAAP”), including those for interim financial information and with the 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. 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. These financial statements should be read in conjunction with the audited financial statements and related notes for the year ended December 31, 2011 included in our Annual Report on Form 10-K filed with the SEC on February 28, 2012. 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.

Use of Estimates

The preparation of consolidated financial statements in accordance with 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. 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 differ from those estimates.

In the first quarter of 2011, the Company made a change in estimate regarding the remaining service obligations to its annual eFax® subscribers.  As a result of system upgrades, the Company is now basing the estimate on the actual remaining service obligations to these customers.  Due to this change, the Company recorded a one-time, non-cash increase to deferred revenues of $10.3 million with an equal offset to revenues.  This change in estimate reduced net income by approximately $7.6 million, net of tax, and reduced basic and diluted earnings per share for the six months ended June 30, 2011 by $0.17 and $0.16, respectively.

Allowances for Doubtful Accounts

j2 Global reserves for receivables it may not be able to collect. These reserves 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. On an ongoing basis, management evaluates the adequacy of these reserves.

Revenue Recognition

The Company’s subscriber revenues substantially consist of monthly recurring subscription and usage-based fees, which are primarily paid in advance by credit card. In accordance with GAAP, the Company defers the portions of monthly, quarterly, semi-annually and annually recurring subscription and usage-based fees collected in advance and recognizes them in the period earned. Additionally, the Company defers and recognizes subscriber activation fees and related direct incremental costs over a subscriber’s estimated useful life.

The Company’s patent revenues (included in “other revenues”) consist of patent license revenues generated under license agreements that provide for the payment of contractually determined fully paid-up or royalty-bearing license fees to j2 Global in exchange for the grant of non-exclusive, retroactive and future licenses to the Company’s patented technology. Patent revenues also consist of revenues generated from the sale of patents. Patent license revenues are recognized when earned over the term of the license agreements. With regard to fully paid-up license arrangements, the Company generally recognizes as revenue in the period the agreement is executed the portion of the payment attributable to past use of the patented technology and amortizes the remaining portion of such payments on a straight line basis over the life of the licensed patent(s). With regard to royalty-bearing license arrangements, j2 Global recognizes revenues of license fees earned during the applicable period. With regard to patent sales, the Company recognizes as revenue in the period of the sale the portion of the purchase price over the carrying value of the patent(s) sold.

j2 Global also recognizes other licensing revenues (included in “other revenues”) that primarily consist of revenues generated under license agreements for certain technology to third parties. Other licensing revenues are recognized when earned in accordance with the terms of the agreement. Generally, revenue is recognized as the third party uses the licensed technology over the period.

The Company’s advertising revenues (included in “other revenues”) primarily consist of revenues derived by delivering email messages to its customers on behalf of advertisers. Revenues are recognized in the period in which the advertising services are performed, provided that no significant j2 Global obligations remain and the collection of the resulting receivable is reasonably assured.

Fair Value Measurements

j2 Global complies with the provisions of Financial Accounting Standards Board (“FASB”) ASC Topic No. 820, Fair Value Measurements and Disclosures (“ASC 820”), in measuring fair value and in disclosing fair value measurements. ASC 820 provides a framework for measuring fair value and expands the disclosures required for fair value measurements of financial and non-financial assets and liabilities.

As of June 30, 2012 and December 31, 2011, the carrying value of cash and cash equivalents, short-term investments, accounts receivable, interest receivable, accounts payable, accrued expenses, interest payable and customer deposits approximated fair value due to the short-term nature of such instruments. As of the same dates, the carrying value of other long-term liabilities approximated fair value as the related interest rates approximate rates currently available to j2 Global.

Debt Issuance Costs

j2 Global capitalized costs incurred in connection with borrowings and issuance of debt securities. These costs are amortized and included in interest expense over the life of the borrowing or term of the credit facility using the interest method.

Concentration of Credit Risk

All of the Company’s cash, cash equivalents and marketable securities are invested at major financial institutions primarily within the United States, United Kingdom and Ireland. These institutions are required to invest the Company’s cash in accordance with the Company’s investment policy with the principal objectives being preservation of capital, fulfillment of liquidity needs and above market returns commensurate with preservation of capital. The Company’s investment policy also requires that investments in marketable securities be in only highly rated instruments, with limitations on investing in securities of any single issuer. However, these investments are not insured against the possibility of a total or near complete loss of earnings or principal and are inherently subject to the credit risk related to the continued credit worthiness of the underlying issuer and general credit market risks. At June 30, 2012 and December 31, 2011, the Company’s cash and cash equivalents were maintained in accounts that are insured up to the limit determined by the applicable governmental agency. The amount held in Ireland by some of our banks are fully insured through December 31, 2012 (subject to European Union state aid approval); however, the insured amount held in other institutions is immaterial in comparison to the total amount of the Company’s cash and cash equivalents held by these institutions which is not insured.  These institutions are primarily in the United States, however, the Company does have accounts within several other countries including Australia, Austria, China, France, Germany, Italy, Japan, Malaysia, the Netherlands, Poland and the United Kingdom.

Income Taxes

The Company must make certain estimates and judgments in determining income tax expense for financial statement purposes. These estimates and judgments occur in the following areas, among others: (i) calculation of tax credits, benefits and deductions; (ii) calculation of tax assets and liabilities arising from differences in the timing of recognition of revenue and expense for tax and financial statement purposes; and (iii) interest and penalties related to uncertain tax positions. Significant changes to these estimates may result in an increase or decrease to the Company’s tax provision in the current or a subsequent period.

The Company must assess the likelihood that it will be able to recover its deferred tax assets. If recovery is not likely, the Company must increase its provision for taxes by recording a valuation allowance against the deferred tax assets that the Company estimates will not ultimately be recoverable. The Company believes that it will ultimately recover a substantial majority of the deferred tax assets recorded on its consolidated condensed balance sheets. However, should there be a change in the Company’s ability to recover its deferred tax assets, the Company’s tax provision would increase in the period in which j2 Global determined that the recovery was not likely.

The calculation of the Company’s tax liabilities involves dealing with uncertainties in the application of complex tax laws. j2 Global recognizes liabilities for uncertain tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. If the Company determines that a tax position will more likely than not be sustained on audit, then the second step requires j2 Global to estimate and measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. It is inherently difficult and subjective to estimate such amounts, as j2 Global has to determine the probability of various possible outcomes. j2 Global reevaluates these uncertain tax positions on a quarterly basis. This evaluation is based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, effectively settled issues under audit and new audit activity. Such a change in recognition or measurement would result in the recognition of a tax benefit or an additional charge to the tax provision.

Reclassifications

Certain prior year reported amounts have been reclassified to conform with the 2012 presentation.

XML

Stock Options And Employee Stock Purchase Plan (Narrative) (Details) (USD $)	6 Months Ended
	Jun. 30, 2012 Y	Jun. 30, 2011	Dec. 31, 2011
Weighted-average grant date fair value of options granted	$ 7.88	$ 13.12
Number of options outstanding	1,903,285		2,087,695
Number of options granted	57,000
Cash received upon the issuance of common stock	$ 61,000	$ 77,000
Percentage of stock options vested	20.00%
Expiration period of options granted (in years)	10
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value	3,200,000	6,200,000
Stock Options [Member]
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized	6,800,000		9,000,000
Restricted Stock And Restricted Stock Unit (RSU) [Member]
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized	12,700,000		11,300,000
Employee Stock Purchase Plan [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%
Number of shares purchased under the plan	2,432	2,840
Cash received upon the issuance of common stock	$ 61,000	$ 77,000
Number of shares available for issuance	1,648,966
Restricted Stock [Member]
Number of stocks outstanding	645,675		742,683
Restricted Stock Units (RSUs) [Member]
Number of stocks outstanding	95,416		32,750
1997 Stock Option Plan [Member]
Additional shares authorized for issuance	840,000
Maximum issuance of common stock	12,000,000
1997 Stock Option Plan [Member] | Stock Options [Member]
Number of options outstanding	816,977
1997 Stock Option Plan [Member] | Restricted Stock [Member]
Number of stocks outstanding	14,700
2007 Stock Plan [Member]
Number of options outstanding	1,086,308
Number of stocks outstanding	95,416
Maximum issuance of common stock	4,500,000
Minimum [Member]
Market value of common stock on the date of grant for incentive stock options	85.00%

XML

Basis Of Presentation (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Revenue	$ 89,465	$ 85,676	$ 176,117	$ 159,060
Net earnings	31,188	28,514	59,727	59,449
Basic earnings per share	$ 0.68	$ 0.63	$ 1.28	$ 1.31
Diluted earnings per share	$ 0.67	$ 0.61	$ 1.27	$ 1.27
Remaining Service Obligations To eFax Customers [Member]
Revenue				10,300
Net earnings				$ 7,600
Basic earnings per share				$ 0.17
Diluted earnings per share				$ 0.16

XML

Geographic Information (Tables)

6 Months Ended

Jun. 30, 2012

Segments, Geographical Areas [Abstract]

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 June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Revenues:
United States	$	54,896	$	53,247	$	109,017	$	97,603
All other countries	34,569		32,429		67,100		61,457
	$	89,465	$	85,676	$	176,117	$	159,060

	June 30, 2012		December 31, 2011
Long-lived assets:
United States	$	35,590	$	35,498
All other countries	47,617		43,436
Total	$	83,207	$	78,934

XML

Stock Options And Employee Stock Purchase Plan (Stock Options) (Details) (USD $)	6 Months Ended
	Jun. 30, 2012 Y	Jun. 30, 2011	Jun. 30, 2012 Stock Options [Member]	Dec. 31, 2011 Stock Options [Member]
Number of Shares, Outstanding Beginning of Period	2,087,695
Number of options granted	57,000
Number of Shares, Exercised	(225,410)
Number of Shares, Canceled	(16,000)
Number of Shares, Outstanding Ending of Period	1,903,285
Number of Shares, Exercisable	1,212,489
Number of Shares, Vested and expected to vest	1,803,435
Weighted-Average Exercise Price, Outstanding Beginning of Period	$ 20.99
Weighted-Average Exercise Price, Granted	$ 27.04
Weighted-Average Exercise Price, Exercised	$ 13.27
Weighted-Average Exercise Price, Canceled	$ 33.54
Weighted-Average Exercise Price, Outstanding Ending of Period	$ 21.98
Weighted-Average Exercise Price, Exercisable	$ 21.45
Weighted-Average Exercise Price, Vested and expected to vest	$ 21.82
Weighted-Average Remaining Contractual Term, Outstanding (in years)	5 years 7 months 6 days
Weighted-Average Remaining Contractual Term, Exercisable (in years)	4 years 6 months
Weighted-Average Remaining Contractual Term, Vested and expected to vest (in years)	5 years 4 months 24 days
Aggregate Intrinsic Value, Outstanding	$ 11,001,387
Aggregate Intrinsic Value, Exercisable	7,867,462
Aggregate Intrinsic Value, Vested and expected to vest	10,701,380
Expiration period of options granted (in years)	10
Aggregate intrinsic values of options exercised	3,200,000	6,200,000
Unrecognized compensation cost related to non-vested awards granted			$ 6,800,000	$ 9,000,000
Weighted-average period to recognize compensation cost (in years)			2 years 4 months 24 days

XML

Business Acquisition (Details) (USD $) In Millions, unless otherwise specified	Jun. 30, 2012
Total consideration of transaction, net of cash acquired	$ 22.4

XML

Investments (Schedule Of Debt Securities By Contractual Maturity Date) (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Investments [Abstract]
Due within 1 year	$ 24,479	$ 30,512
Due within more than 1 year but less than 5 years	19,057	38,847
Due within more than 5 years but less than 10 years	0	0
Due 10 years or after	3,160	4,230
Total	$ 46,696	$ 73,589

XML

Condensed Consolidated Statement Of Cash Flows (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Cash flows from operating activities:
Net earnings	$ 59,727	$ 59,449
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	10,197	10,081
Amortization of discount or premium of investments	580	296
Share-based compensation	4,425	4,436
Excess tax benefits from share-based compensation	(1,107)	(2,122)
Provision for doubtful accounts	2,601	2,334
Deferred income taxes	(3,307)	(59)
Loss on disposal of fixed assets	59	115
(Gain) loss on available-for-sale investments	(216)	0
Decrease (increase) in:
Accounts receivable	(1,313)	(4,833)
Prepaid expenses and other current assets	(425)	3,257
Other assets	(99)	(165)
(Decrease) increase in:
Accounts payable and accrued expenses	(2,142)	(553)
Income taxes payable	11,903	7,632
Deferred revenue	822	10,450
Liability for uncertain tax positions	3,590	(10,132)
Other	29	365
Net cash provided by operating activities	85,324	80,551
Cash flows from investing activities:
Purchase of certificate of deposit	(9,157)	0
Redemptions/sales of available-for-sale investments	55,061	8,576
Purchase of available-for-sale investments	(28,242)	(28,542)
Purchases of property and equipment	(2,935)	(2,485)
Proceeds from sale of assets	145	4
Acquisition of businesses, net of cash received	(18,843)	1,260
Purchases of intangible assets	(2,745)	(1,860)
Net cash used in investing activities	(6,716)	(23,047)
Cash flows from financing activities:
Repurchases of common stock and restricted stock	(60,224)	(1,243)
Issuance of common stock under employee stock purchase plan	61	77
Exercise of stock options	2,991	5,617
Dividends paid	(19,901)	0
Excess tax benefits from share-based compensation	1,107	2,122
Debt issuance costs	(77)	0
Net cash provided by (used in) financing activities	(76,043)	6,573
Effect of exchange rate changes on cash and cash equivalents	949	878
Net change in cash and cash equivalents	3,514	64,955
Cash and cash equivalents at beginning of period	139,359	64,752
Cash and cash equivalents at end of period	$ 142,873	$ 129,707

XML

Investments (Schedule Of Available-For-Sale And Trading Securities) (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Investments [Abstract]
Trading	$ 3	$ 2
Available-for-sale Securities	46,913	73,589
Total	$ 46,916	$ 73,591

XML

Goodwill And Intangible Assets (Schedule Of Intangible Assets Subject To Amortization) (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
Historical Cost	$ 121,692	$ 109,603
Accumulated Amortization	(52,580)	(45,107)
Net	69,112	64,496
Weighted-Average Amortization Period, years	1 year 6 months
Tradename [Member]
Historical Cost	12,165	10,584
Accumulated Amortization	(5,053)	(4,147)
Net	7,112	6,437
Weighted-Average Amortization Period, years	11 years 2 months 12 days	12 years 7 months 6 days
Patents And Patent Licenses [Member]
Historical Cost	40,631	38,229
Accumulated Amortization	(22,564)	(20,712)
Net	18,067	17,517
Weighted-Average Amortization Period, years	8 years 4 months 24 days	8 years 4 months 24 days
Customer Relationships [Member]
Historical Cost	57,199	49,245
Accumulated Amortization	(17,154)	(13,380)
Net	40,045	35,865
Weighted-Average Amortization Period, years	6 years 7 months 6 days	6 years 8 months 12 days
Other Purchased Intangibles [Member]
Historical Cost	11,697	11,545
Accumulated Amortization	(7,809)	(6,868)
Net	$ 3,888	$ 4,677
Weighted-Average Amortization Period, years	4 years 8 months 12 days	4 years 8 months 12 days

XML

Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
ASSETS
Cash and cash equivalents	$ 142,873	$ 139,359
Short-term investments	41,744	38,513
Accounts receivable, net of allowances of $4,172 and $3,404, respectively	20,242	19,071
Prepaid expenses and other current assets	6,215	14,311
Deferred income taxes	2,151	1,643
Total current assets	213,225	212,897
Long-term investments	22,217	43,077
Property and equipment, net	14,095	14,438
Tradenames, net	34,494	34,691
Patent and patent licenses, net	18,067	17,517
Customer relationships, net	40,045	35,865
Goodwill	289,259	279,016
Other purchased intangibles, net	9,306	9,994
Deferred income taxes	6,144	3,160
Other assets	2,429	516
Total assets	649,281	651,171
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses	26,236	24,070
Income taxes payable	3,697	1,510
Deferred revenue	28,366	26,695
Liability for uncertain tax positions	5,523	5,523
Total current liabilities	63,822	57,798
Liability for uncertain tax positions	28,144	24,554
Deferred income taxes	11,305	12,102
Other long-term liabilities	2,500	2,342
Total liabilities	105,771	96,796
Commitments and contingencies	0	0
Preferred stock, $0.01 par value. Authorized 1,000,000 and none issued	0	0
Common stock, $0.01 par value. Authorized 95,000,000 at June 30, 2012 and December 31, 2011; total issued 53,623,637 and 55,389,636 shares at June 30, 2012 and December 31, 2011, respectively; and total outstanding 44,943,069 and 46,709,068 shares at June 30, 2012 and December 31, 2011, respectively	536	554
Additional paid-in capital	195,538	197,374
Treasury stock, at cost (8,680,568 shares at June 30, 2012 and December 31, 2011)	(112,671)	(112,671)
Retained earnings	462,658	472,595
Accumulated other comprehensive loss	(2,551)	(3,477)
Total stockholders' equity	543,510	554,375
Total liabilities and stockholders' equity	$ 649,281	$ 651,171

XML

Stock Options And Employee Stock Purchase Plan (Assumptions To Estimate Fair Value Of Stock Options) (Details)	6 Months Ended		7 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jul. 31, 2011
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Estimated forfeiture rate	14.64%	14.64%
Risk-free interest rate	0.97%	2.39%
Expected term (in years)	5 years 8 months 23 days	6 years 6 months
Dividend yield	3.43%	0.00%	0.00%
Expected volatility	41.00%	42.00%
Weighted-average volatility	41.00%	42.00%

XML

Condensed Consolidated Statement of Comprehensive Income (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Net Earnings	$ 31,188	$ 28,514	$ 59,727	$ 59,449
Foreign currency translation adjustment, net of tax (benefit) of ($431) and $7 for the three and six months of 2012, respectively, and $83 and $483 for the three and six months of 2011, respectively	(1,430)	248	24	1,450
Unrealized gain on available-for-sale investments, net of tax (benefit0 of ($17) and $48 for the three and six months of 2012, respectively, and $7 and $17 for the three and six months of 2011, respectively	(26)	22	72	50
Other Comprehensive Income, net of tax	(1,456)	270	96	1,500
Comprehensive Income	$ 29,732	$ 28,784	$ 59,823	$ 60,949

XML

Fair Value Measurements (Schedule Of Fair Values Of Financial Instruments Measured On Recurring Basis) (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Total assets	$ 130,994	$ 168,618
Money Market Funds [Member]
Cash	65,522	79,945
Bank Time Deposits [Member]
Cash	1,511	7,082
Certificates of Deposit [Member]
Investments	17,045	8,000
Equity Securities [Member]
Investments	220	2
Debt Securities Issued By The U.S Treasury And Other U.S Government Corporations And Agencies [Member]
Investments	7,560	15,006
Debt Securities Issued By States Of The United States And Political Subdivisions Of The States [Member]
Investments	14,471	16,228
Debt Securities Issued By Foreign Governments [Member]
Investments	6,368	6,544
Corporate Debt Securities [Member]
Investments	18,297	35,811
Level 1 [Member]
Total assets	130,994	168,618
Level 1 [Member] | Money Market Funds [Member]
Cash	65,522	79,945
Level 1 [Member] | Bank Time Deposits [Member]
Cash	1,511	7,082
Level 1 [Member] | Certificates of Deposit [Member]
Investments	17,045	8,000
Level 1 [Member] | Equity Securities [Member]
Investments	220	2
Level 1 [Member] | Debt Securities Issued By The U.S Treasury And Other U.S Government Corporations And Agencies [Member]
Investments	7,560	15,006
Level 1 [Member] | Debt Securities Issued By States Of The United States And Political Subdivisions Of The States [Member]
Investments	14,471	16,228
Level 1 [Member] | Debt Securities Issued By Foreign Governments [Member]
Investments	6,368	6,544
Level 1 [Member] | Corporate Debt Securities [Member]
Investments	18,297	35,811
Level 2 [Member]
Total assets	0	0
Level 2 [Member] | Money Market Funds [Member]
Cash	0	0
Level 2 [Member] | Bank Time Deposits [Member]
Cash	0	0
Level 2 [Member] | Certificates of Deposit [Member]
Investments	0	0
Level 2 [Member] | Equity Securities [Member]
Investments	0	0
Level 2 [Member] | Debt Securities Issued By The U.S Treasury And Other U.S Government Corporations And Agencies [Member]
Investments	0	0
Level 2 [Member] | Debt Securities Issued By States Of The United States And Political Subdivisions Of The States [Member]
Investments	0	0
Level 2 [Member] | Debt Securities Issued By Foreign Governments [Member]
Investments	0	0
Level 2 [Member] | Corporate Debt Securities [Member]
Investments	0	0
Level 3 [Member]
Total assets	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	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] | Debt Securities Issued By States Of The United States And Political Subdivisions Of The States [Member]
Investments	0	0
Level 3 [Member] | Debt Securities Issued By Foreign Governments [Member]
Investments	0	0
Level 3 [Member] | Corporate Debt Securities [Member]
Investments	$ 0	$ 0

XML

Basis Of Presentation (Policy)

6 Months Ended

Jun. 30, 2012

Accounting Policies [Abstract]

Use Of Estimates

Use of Estimates

The preparation of consolidated financial statements in accordance with 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. 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 differ from those estimates.

In the first quarter of 2011, the Company made a change in estimate regarding the remaining service obligations to its annual eFax® subscribers.  As a result of system upgrades, the Company is now basing the estimate on the actual remaining service obligations to these customers.  Due to this change, the Company recorded a one-time, non-cash increase to deferred revenues of $10.3 million with an equal offset to revenues.  This change in estimate reduced net income by approximately $7.6 million, net of tax, and reduced basic and diluted earnings per share for the six months ended June 30, 2011 by $0.17 and $0.16, respectively.

Allowances For Doubtful Accounts

Allowances for Doubtful Accounts

j2 Global reserves for receivables it may not be able to collect. These reserves 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. On an ongoing basis, management evaluates the adequacy of these reserves.

Revenue Recognition

Revenue Recognition

The Company’s subscriber revenues substantially consist of monthly recurring subscription and usage-based fees, which are primarily paid in advance by credit card. In accordance with GAAP, the Company defers the portions of monthly, quarterly, semi-annually and annually recurring subscription and usage-based fees collected in advance and recognizes them in the period earned. Additionally, the Company defers and recognizes subscriber activation fees and related direct incremental costs over a subscriber’s estimated useful life.

The Company’s patent revenues (included in “other revenues”) consist of patent license revenues generated under license agreements that provide for the payment of contractually determined fully paid-up or royalty-bearing license fees to j2 Global in exchange for the grant of non-exclusive, retroactive and future licenses to the Company’s patented technology. Patent revenues also consist of revenues generated from the sale of patents. Patent license revenues are recognized when earned over the term of the license agreements. With regard to fully paid-up license arrangements, the Company generally recognizes as revenue in the period the agreement is executed the portion of the payment attributable to past use of the patented technology and amortizes the remaining portion of such payments on a straight line basis over the life of the licensed patent(s). With regard to royalty-bearing license arrangements, j2 Global recognizes revenues of license fees earned during the applicable period. With regard to patent sales, the Company recognizes as revenue in the period of the sale the portion of the purchase price over the carrying value of the patent(s) sold.

j2 Global also recognizes other licensing revenues (included in “other revenues”) that primarily consist of revenues generated under license agreements for certain technology to third parties. Other licensing revenues are recognized when earned in accordance with the terms of the agreement. Generally, revenue is recognized as the third party uses the licensed technology over the period.

The Company’s advertising revenues (included in “other revenues”) primarily consist of revenues derived by delivering email messages to its customers on behalf of advertisers. Revenues are recognized in the period in which the advertising services are performed, provided that no significant j2 Global obligations remain and the collection of the resulting receivable is reasonably assured.

Fair Value Measurements

Fair Value Measurements

j2 Global complies with the provisions of Financial Accounting Standards Board (“FASB”) ASC Topic No. 820, Fair Value Measurements and Disclosures (“ASC 820”), in measuring fair value and in disclosing fair value measurements. ASC 820 provides a framework for measuring fair value and expands the disclosures required for fair value measurements of financial and non-financial assets and liabilities.

As of June 30, 2012 and December 31, 2011, the carrying value of cash and cash equivalents, short-term investments, accounts receivable, interest receivable, accounts payable, accrued expenses, interest payable and customer deposits approximated fair value due to the short-term nature of such instruments. As of the same dates, the carrying value of other long-term liabilities approximated fair value as the related interest rates approximate rates currently available to j2 Global.

Debt, Policy [Policy Text Block]

Debt Issuance Costs

j2 Global capitalized costs incurred in connection with borrowings and issuance of debt securities. These costs are amortized and included in interest expense over the life of the borrowing or term of the credit facility using the interest method.

Concentration Of Credit Risk

Concentration of Credit Risk

All of the Company’s cash, cash equivalents and marketable securities are invested at major financial institutions primarily within the United States, United Kingdom and Ireland. These institutions are required to invest the Company’s cash in accordance with the Company’s investment policy with the principal objectives being preservation of capital, fulfillment of liquidity needs and above market returns commensurate with preservation of capital. The Company’s investment policy also requires that investments in marketable securities be in only highly rated instruments, with limitations on investing in securities of any single issuer. However, these investments are not insured against the possibility of a total or near complete loss of earnings or principal and are inherently subject to the credit risk related to the continued credit worthiness of the underlying issuer and general credit market risks. At June 30, 2012 and December 31, 2011, the Company’s cash and cash equivalents were maintained in accounts that are insured up to the limit determined by the applicable governmental agency. The amount held in Ireland by some of our banks are fully insured through December 31, 2012 (subject to European Union state aid approval); however, the insured amount held in other institutions is immaterial in comparison to the total amount of the Company’s cash and cash equivalents held by these institutions which is not insured.  These institutions are primarily in the United States, however, the Company does have accounts within several other countries including Australia, Austria, China, France, Germany, Italy, Japan, Malaysia, the Netherlands, Poland and the United Kingdom.

Income Taxes

Income Taxes

The Company must make certain estimates and judgments in determining income tax expense for financial statement purposes. These estimates and judgments occur in the following areas, among others: (i) calculation of tax credits, benefits and deductions; (ii) calculation of tax assets and liabilities arising from differences in the timing of recognition of revenue and expense for tax and financial statement purposes; and (iii) interest and penalties related to uncertain tax positions. Significant changes to these estimates may result in an increase or decrease to the Company’s tax provision in the current or a subsequent period.

The Company must assess the likelihood that it will be able to recover its deferred tax assets. If recovery is not likely, the Company must increase its provision for taxes by recording a valuation allowance against the deferred tax assets that the Company estimates will not ultimately be recoverable. The Company believes that it will ultimately recover a substantial majority of the deferred tax assets recorded on its consolidated condensed balance sheets. However, should there be a change in the Company’s ability to recover its deferred tax assets, the Company’s tax provision would increase in the period in which j2 Global determined that the recovery was not likely.

The calculation of the Company’s tax liabilities involves dealing with uncertainties in the application of complex tax laws. j2 Global recognizes liabilities for uncertain tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. If the Company determines that a tax position will more likely than not be sustained on audit, then the second step requires j2 Global to estimate and measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. It is inherently difficult and subjective to estimate such amounts, as j2 Global has to determine the probability of various possible outcomes. j2 Global reevaluates these uncertain tax positions on a quarterly basis. This evaluation is based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, effectively settled issues under audit and new audit activity. Such a change in recognition or measurement would result in the recognition of a tax benefit or an additional charge to the tax provision.

Comparability of Prior Year Financial Data, Policy [Policy Text Block]

Reclassifications

Certain prior year reported amounts have been reclassified to conform with the 2012 presentation.

XML

Fair Value Measurements (Schedule Of Changes In Fair Value Of Level 3 Financial Assets) (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings	$ 0	$ 0
Beginning Balance	0	496
Total gains (losses)-realized/unrealized not included in earnings	0	42
Balance, June 30, 2012 and 2011	0	538
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net	$ 0	$ 0

XML

Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2012

Fair Value Disclosures [Abstract]

Schedule Of Fair Values Of Financial Instruments Measured On Recurring Basis

The following tables present the fair values of the Company’s financial instruments that are measured at fair value on a recurring basis (in thousands):

June 30, 2012	Level 1		Level 2		Level 3		Fair Value
Cash equivalents:
Money market and other funds	65,522		—		—		65,522
Time deposits	1,511		—		—		1,511
Certificates of Deposit	17,045		—		—		17,045
Equity securities	220		—		—		220
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies	7,560		—		—		7,560
Debt securities issued by states of the United States and political subdivisions of the states	14,471		—		—		14,471
Debt securities issued by foreign governments	6,368		—		—		6,368
Corporate debt securities	18,297		—		—		18,297
Total	$	130,994	$	—	$	—	$	130,994
December 31, 2011	Level 1		Level 2		Level 3		Fair Value
Cash equivalents:
Money market and other funds	79,945		—		—		79,945
Time deposits	7,082		—		—		7,082
Certificates of Deposit	8,000		—		—		8,000
Equity securities	2		—		—		2
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies	15,006		—		—		15,006
Debt securities issued by states of the United States and political subdivisions of the states	16,228		—		—		16,228
Debt securities issued by foreign governments	6,544		—		—		6,544
Corporate debt securities	35,811		—		—		35,811
Total	$	168,618	$	—	$	—	$	168,618

Schedule Of Changes In Fair Value Of Level 3 Financial Assets

The following table provides a summary of changes in fair value of the Company’s Level 3 financial assets (in thousands):

	Level 3 Financial Assets
	Six Months Ended June 30, 2012		Six Months Ended June 30, 2011
Beginning Balance	$	—	$	496
Total gains (losses) - realized/unrealized
Included in earnings	—		—
Not included in earnings	—		42
Purchases, issuances and settlements	—		—
Transfers in and/or out of Level 3	—		—
Balance, June 30, 2012 and 2011	$	—	$	538
Total losses for the period included in earnings relating to assets still held at June 30, 2012 and 2011	$	—	$	—

XML

Statement of Comprehensive Income (Parenthetical) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax	$ (431)	$ 83	$ 7	$ 483
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax	$ (17)	$ 7	$ 48	$ 17

XML

Condensed Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Statement of Financial Position [Abstract]
Allowances for doubtful accounts	$ 4,172	$ 3,404
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	95,000,000	95,000,000
Common stock, shares issued	53,623,637	55,389,636
Common stock, shares outstanding	44,943,069	46,709,068

XML

Stockholders' Equity

6 Months Ended

Jun. 30, 2012

Stockholders' Equity Note [Abstract]

Stockholders' Equity

Stockholders’ Equity

Common Stock Repurchase Program

In May 2010, j2 Global’s Board of Directors approved a program authorizing the repurchase of up to ten million shares of the Company’s common stock through the end of April 30, 2012 (the “2010 Program”). Effective February 15, 2012, the Company’s Board of Directors terminated and replaced this 2010 Program with a program authorizing the repurchase of up to five million shares of our common stock through February 20, 2013.  On February 15, 2012, we entered into a Rule 10b5-1 trading plan with a broker to facilitate this new repurchase program. During the six month period ended June 30, 2012, 2.1 million shares were repurchased at an aggregated cost of $58.6 million (including an immaterial amount of commission fees). j2 Global has accounted for these repurchases using the cost method. 

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 June 30, 2012, the Company purchased 6,687 shares from plan participants for this purpose. See Item II, Part 2. Unregistered Sales of Equity Securities and Use of Proceeds.

Dividends

On February 14, 2012, the Company's Board of Directors approved a quarterly cash dividend of $0.21 per share of common stock payable on March 12, 2012 to all stockholders of record as of the close of business on February 27, 2012. On May 2, 2012, the Company's Board of Directors approved a quarterly cash dividend of $0.215 per share of common stock payable on May 30, 2012 to all stockholders of record as of the close of business on May 16, 2012. On July 31, 2012, the Company's Board of Directors approved a quarterly cash dividend of $0.22 per share of common stock payable on August 29, 2012 to all stockholders of record as of the close of business on August 13, 2012. Future dividends will be subject to Board approval.

XML

Document And Entity Information	6 Months Ended
	Jun. 30, 2012	Aug. 03, 2012
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q2
Entity Registrant Name	J2 GLOBAL, INC.
Entity Central Index Key	0001084048
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		45,616,539

XML

Stock Options And Employee Stock Purchase Plan

6 Months Ended

Jun. 30, 2012

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”) 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 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 June 30, 2012, 816,977 shares underlying options and 14,700 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 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 June 30, 2012, 1,086,308 shares underlying options and 95,416 shares of restricted stock were outstanding under the 2007 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 six months ended June 30, 2012:

	Number of Shares		Weighted- Average Exercise Price		Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding at January 1, 2012	2,087,695		$	20.99
Granted	57,000		27.04
Exercised	(225,410	)	13.27
Canceled	(16,000	)	33.54
Outstanding at June 30, 2012	1,903,285		21.98		5.6	$	11,001,387
Exercisable at June 30, 2012	1,212,489		21.45		4.5	$	7,867,462
Vested and expected to vest at June 30, 2012	1,803,435		$	21.82	5.4	$	10,701,380

For the six months ended June 30, 2012, j2 Global granted 57,000 options to purchase shares of common stock pursuant to the 2007 Plan. These stock options vest 20% per year and expire 10 years from the date of grant.

The per share weighted-average grant-date fair values of stock options granted during the six months ended June 30, 2012 and 2011 were $7.88 and $13.12, respectively.

The aggregate intrinsic values of options exercised during the six months ended June 30, 2012 and 2011 were $3.2 million and $6.2 million, respectively.

As of June 30, 2012 and December 31, 2011, unrecognized stock compensation related to non-vested stock options granted under the 1997 Plan and the 2007 Plan approximated $6.8 million and $9.0 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 2.4 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 for the six months ended June 30, 2012 is based on historical volatility of the Company’s common stock. Beginning in the first quarter 2012, the Company estimates the expected term based upon the historical exercise behavior of our employees. Previously, the Company elected to use the simplified method for estimating the expected term. Under the simplified method, the expected term is equal to the midpoint between the vesting period and the contractual term of the stock option. 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. Prior to the initial declaration of a cash dividend on August 1, 2011, the fair value of stock options, restricted stock and restricted stock units were measured based upon an expected dividend yield of 0.0% as the Company did not historically pay cash dividends on its common stock.  For awards granted on or subsequent to August 1, 2011, the Company uses an annualized dividend yield based upon the per share dividends declared by its Board of Directors.  Estimated forfeiture rates were 14.64% and 14.64% as of June 30, 2012 and 2011, respectively.

The weighted-average fair values of stock options granted have been estimated utilizing the following assumptions:

	Six Months Ended June 30,
	2012	2011
Risk-free interest rate	0.97%	2.39%
Expected term (in years)	5.7	6.5
Dividend yield	3.43%	—%
Expected volatility	41%	42%
Weighted-average volatility	41%	42%

Restricted Stock

j2 Global has awarded restricted stock and restricted stock units to its Board of Directors and senior staff pursuant to the 1997 Plan and the 2007 Plan. Compensation expense resulting from restricted stock and restricted unit grants is measured at fair value on the date of grant and is recognized as share-based compensation expense over a five-year vesting period. The Company recognized $1.1 million and $2.1 million of compensation expense in the three and six months ended June 30, 2012, respectively, related to restricted stock and restricted stock units. As of June 30, 2012 and December 31, 2011, the Company had unrecognized share-based compensation cost of approximately $12.7 million and $11.3 million, respectively, associated with these awards. This cost is expected to be recognized over a weighted-average period of 2.22 years for awards and 4.43 years for units.

Restricted stock award activity for the six months ended June 30, 2012 is set forth below:

	Shares		Weighted-Average Grant-Date Fair Value
Nonvested at January 1, 2012	742,683		$	20.87
Granted	88,544		25.47
Vested	(184,652	)	20.37
Canceled	(900	)	29.21
Nonvested at June 30, 2012	645,675		$	21.63

Restricted stock unit award activity for the six months ended June 30, 2012 is set forth below:

	Number of Shares		Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding at January 1, 2012	32,750
Granted	64,166
Vested	(1,500	)
Canceled	—
Outstanding at June 30, 2012	95,416		3.0	$	2,520,891
Vested and expected to vest at June 30, 2012	60,453		3.0	$	1,597,179

Share-Based Compensation Expense

The following table represents share-based compensation expense included in cost of revenues and operating expenses in the accompanying condensed consolidated statements of operations for the three and six months ended June 30, 2012 and 2011 (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Cost of revenues	$	192	$	246	$	434	$	490
Operating expenses:
Sales and marketing	352		351		727		699
Research, development and engineering	117		110		233		257
General and administrative	1,494		1,524		3,054		2,990
Total	$	2,155	$	2,231	$	4,448	$	4,436

Employee Stock Purchase Plan

The Purchase Plan provides for the issuance of a maximum of two million shares of common stock. Under the Purchase Plan, eligible employees can have up to 15% of their earnings withheld, up to certain maximums, to be used to purchase shares of j2 Global’s common stock at certain plan-defined dates. The price of the common stock purchased under the Purchase Plan for the offering periods is equal to 95% of the fair market value of the common stock at the end of the offering period. For the six months ended June 30, 2012 and 2011, 2,432 and 2,840 shares were purchased under the plan, respectively. Cash received upon the issuance of common stock under the Purchase Plan was $61,000 and $77,000 for the six months ended June 30, 2012 and 2011, respectively.  As of June 30, 2012, 1,648,966 shares were available under the Purchase Plan for future issuance.

XML

Condensed Consolidated Statements Of Operations (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Revenues:
Subscriber	$ 88,071	$ 85,298	$ 172,896	$ 158,166
Other	1,394	378	3,221	894
Total revenues	89,465	85,676	176,117	159,060
Cost of revenues (including share-based compensation of $192 and $434 for the three and six months of 2012, respectively, and $246 and $490 for the three and six months of 2011, respectively)	16,187	15,158	32,051	30,950
Gross profit	73,278	70,518	144,066	128,110
Operating expenses:
Sales and marketing (including share-based compensation of $352 and $727 for the three and six months of 2012, respectively, and $351 and $699 for the three and six months of 2011, respectively)	13,860	14,345	28,721	29,856
Research, development and engineering (including share-based compensation of $117 and $233 for the three and six months of 2012, respectively, and $110 and $257 for the three and six months of 2011, respectively)	4,617	3,837	9,106	8,609
General and administrative (including share-based compensation of $1,494 and $3,054 for the three and six months of 2012, respectively, and $1,524 and $2,990 for the three and six months of 2011, respectively)	14,774	14,392	28,603	28,634
Total operating expenses	33,251	32,574	66,430	67,099
Operating earnings	40,027	37,944	77,636	61,011
Interest and other income (expense), net	809	299	91	(28)
Earnings before income taxes	40,836	38,243	77,727	60,983
Income tax expense	9,648	9,729	18,000	1,534
Net earnings	$ 31,188	$ 28,514	$ 59,727	$ 59,449
Net earnings per common share:
Basic	$ 0.68	$ 0.63	$ 1.28	$ 1.31
Diluted	$ 0.67	$ 0.61	$ 1.27	$ 1.27
Weighted average shares outstanding:
Basic	45,373,930	45,399,940	45,887,185	45,247,381
Diluted	45,569,564	46,723,792	46,203,491	46,663,866
Cash dividends paid per common share	$ 0.22	$ 0.00	$ 430.00	$ 0

XML

Investments

6 Months Ended

Jun. 30, 2012

Investments [Abstract]

Investments

Investments

Short-term investments consist generally of corporate and governmental debt securities and certificates of deposits which are stated at fair market value. Realized gains and losses of short and long-term investments are recorded using the specific identification method.

The following table summarizes j2 Global’s debt securities designated as available-for-sale, classified by the contractual maturity date of the security (in thousands):

	June 30, 2012		December 31, 2011
Due within 1 year	$	24,479	$	30,512
Due within more than 1 year but less than 5 years	19,057		38,847
Due within more than 5 years but less than 10 years	—		—
Due 10 years or after	3,160		4,230
Total	$	46,696	$	73,589

The following table summarizes the Company’s investments designated as trading and available-for-sale (in thousands):

	June 30, 2012		December 31, 2011
Trading	$	3	$	2
Available-for-sale	46,913		73,589
Total	$	46,916	$	73,591

The following table summarizes the gross unrealized gains and losses and fair values for investments as of June 30, 2012 and December 31, 2011 aggregated by major security type (in thousands):

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
June 30, 2012
Debt Securities	$	46,719	$	116	$	(139	)	$	46,696
Equity Securities	$	215	$	2	$	—		$	217
December 31, 2011
Debt Securities	$	73,731	$	99	$	(241	)	$	73,589

At June 30, 2012, corporate and governmental debt securities were recorded as available-for-sale. The corporate and governmental debt securities have a fixed interest rate. 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 June 30, 2012. At June 30, 2012, the Company’s long-term available-for-sale securities are carried at fair value, with the unrealized gains and losses reported as a component of stockholders’ equity. For the six months ended June 30, 2012, the Company recorded gain from the sale of investments of approximately $0.2 million. Short-term investments include restricted balances in which the Company may not liquidate certain investments until maturity, generally within 12 months.  Restricted balances included in short-term investments were $17.0 million at June 30, 2012.

Investments that have been in an unrealized loss position as of June 30, 2012 and December 31, 2011 had a fair value of $21.7 million and $46.2 million, respectively, and have been in a continuous unrealized loss for less than 12 months. Investments in a continuous unrealized loss for 12 months and longer as of June 30, 2012 and December 31, 2011 had a fair value of $2.3 million and zero, respectively.  

Recognition and Measurement of Other-Than-Temporary Impairment

j2 Global regularly reviews and evaluates each investment that has an unrealized loss. An unrealized loss exists when the current fair value of an individual security is less than its amortized cost basis. Unrealized losses that are determined to be temporary in nature are recorded, net of tax, in accumulated other comprehensive income for available-for-sale securities, while such losses related to held-to-maturity securities are not recorded, as these investments are carried at their amortized cost.

Regardless of the classification of the securities as available-for-sale or held-to-maturity, the Company has assessed each position for impairment.

Factors considered in determining whether a loss is temporary include:

• the length of time and the extent to which fair value has been below cost;

• the severity of the impairment;

• the cause of the impairment and the financial condition and near-term prospects of the issuer;

• activity in the market of the issuer which may indicate adverse credit conditions; and

• the Company’s ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery.

j2 Global’s review for impairment generally entails:

• identification and evaluation of investments that have indications of possible impairment;

• analysis of individual investments that have fair values less than amortized cost, including consideration of the length of time the investment has been in an unrealized loss position and the expected recovery period;

• discussion of evidential matter, including an evaluation of factors or triggers that could cause individual investments to qualify as having an other-than-temporary impairment and those that would not support an other-than-temporary impairment;

• documentation of the results of these analyses, as required under business policies; and

• information provided by third-party valuation experts.

For these securities, a critical component of the evaluation for other-than-temporary impairments is the identification of credit impairment, where management does not expect to receive cash flows sufficient to recover the entire amortized cost basis of the security. Credit impairment is assessed using a combination of a discounted cash flow model that estimates the cash flows on the underlying securities and a market comparables method, where the security is valued based upon indications from the secondary market of what discounts buyers demand when purchasing similar securities. The cash flow model incorporates actual cash flows from the securities through the current period and then projects the remaining cash flows using relevant interest rate curves over the remaining term. These cash flows are discounted using a number of assumptions, some of which include prevailing implied credit risk premiums, incremental credit spreads and illiquidity risk premiums, among others.

Securities that have been identified as other-than-temporarily impaired are written down to their current fair value. For debt securities that are intended to be sold or that management believes it more-likely-than-not that will be required to sell prior to recovery, the full impairment is recognized immediately in earnings.

For available-for-sale and held-to-maturity securities that management has no intent to sell and believes that it more-likely-than-not 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.

XML

Business Acquisition

6 Months Ended

Jun. 30, 2012

Business Combinations [Abstract]

Business Acquisition

Business Acquisition

The Company paid cash for the following acquisitions closed during the first quarter of 2012, (a) substantially all of the assets of Offsite Backup Solutions, LLC, a Phoenix-based provider of online backup solutions; (b) Landslide Technologies, Inc., a Boston-based provider of online customer relationship management solutions designed for small to mid-sized businesses; (c) Zimo Communications Ltd., a UK provider of cloud-based voice services; and (d) the Australian business of Zintel Communications, a cloud voice service provider.

The initial accounting for these acquisitions are incomplete and subject to change. j2 Global is currently in the process of quantifying such amounts, if any, and has recorded provisional amounts based upon management's best estimate of the value as a result of a preliminary analysis performed. Therefore, actual amounts recorded upon the finalization of certain intangible assets and related tax items may differ from the information presented in this Quarterly Report on Form 10-Q.

These acquisitions are designed to be accretive and to provide the Company additional online data backup, customer relationship and voice customers. The financial impact to j2 Global for each of these transactions, individually and in the aggregate, is immaterial as of the date of each acquisition.  The condensed consolidated statement of operations and balance sheet as of June 30, 2012 reflect the results of operations of these acquisitions.  Total consideration for these transactions was $22.4 million, net of cash acquired.

XML

Investments (Tables)

6 Months Ended

Jun. 30, 2012

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):

	June 30, 2012		December 31, 2011
Due within 1 year	$	24,479	$	30,512
Due within more than 1 year but less than 5 years	19,057		38,847
Due within more than 5 years but less than 10 years	—		—
Due 10 years or after	3,160		4,230
Total	$	46,696	$	73,589

Schedule Of Available-For-Sale And Trading Securities

The following table summarizes the Company’s investments designated as trading and available-for-sale (in thousands):

	June 30, 2012		December 31, 2011
Trading	$	3	$	2
Available-for-sale	46,913		73,589
Total	$	46,916	$	73,591

Summary Of Gross Unrealized Gains And Losses And Fair Values

The following table summarizes the gross unrealized gains and losses and fair values for investments as of June 30, 2012 and December 31, 2011 aggregated by major security type (in thousands):

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
June 30, 2012
Debt Securities	$	46,719	$	116	$	(139	)	$	46,696
Equity Securities	$	215	$	2	$	—		$	217
December 31, 2011
Debt Securities	$	73,731	$	99	$	(241	)	$	73,589

XML

Earnings Per Share

6 Months Ended

Jun. 30, 2012

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 June 30,					Six Months Ended June 30,
	2012			2011		2012			2011
Numerator for basic and diluted net earnings per common share:
Net earnings	$	31,188		$	28,514	$	59,727		$	59,449
Net earnings available to participating securities (a)	(460		)	—		(922		)	—
Net earnings available to common shareholders	30,728			28,514		58,805			59,449
Denominator:
Weighted-average outstanding shares of common stock	45,373,930			45,399,940		45,887,185			45,247,381
Dilutive effect of:
Dilutive effect of equity incentive plans	195,634			1,323,852		316,306			1,416,485
Common stock and common stock equivalents	45,569,564			46,723,792		46,203,491			46,663,866
Net earnings per share:
Basic	$	0.68		$	0.63	$	1.28		$	1.31
Diluted	$	0.67		$	0.61	$	1.27		$	1.27

(a) Represents unvested share-based payment awards that contain certain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid).

For the three and six months ended June 30, 2012 and 2011, there were 613,059 and 396,808 options outstanding, respectively, and 560,059 and 396,316 options outstanding, respectively, which were excluded from the computation of diluted earnings per share because the exercise prices were greater than the average market price of the common shares.

XML

Commitments And Contingencies

6 Months Ended

Jun. 30, 2012

Commitments and Contingencies Disclosure [Abstract]

Commitments And Contingencies

Commitments and Contingencies

Litigation

From time-to-time, j2 Global is involved in litigation and other disputes or regulatory inquiries that arise in the ordinary course of its business. Many of these actions involve or are filed in response to patent actions filed by j2 Global against others. The number and significance of these disputes and inquiries has increased as our business has expanded and j2 Global has grown. Any claims or regulatory actions against j2 Global, whether meritorious or not, could be time-consuming, result in costly litigation, require significant management time and result in diversion of significant operational resources.

As part of the Company's continuing effort to prevent the unauthorized use of its intellectual property, j2 Global has ongoing litigation against several companies for infringing its patents relating to online fax, voice and other messaging technologies, including, but not limited to Open Text Corporation and its Captaris and EasyLink ("EasyLink") businesses (“Open Text”), and RingCentral, Inc. (“RingCentral”). Three of the patents at issue in some of these lawsuits have been reaffirmed through reexamination proceedings with the United States Patent and Trademark Office (the “USPTO”).

j2 Global's ongoing patent infringement cases involving U.S. Patent Nos. 6,208,638, 6,350,066, 6,597,688 and 7,020,132 against Open Text and EasyLink are being litigated in the United States District Court for the Central District of California before the same judge. Discovery in the cases is underway.  In both cases we are seeking a permanent injunction against continued infringement, a finding of willfulness, compensatory and treble damages, attorneys' fees, interest and costs. Both defendants filed counterclaims against the Company, including seeking declaratory judgments of non-infringement, invalidity and unenforceability of the patents asserted. Open Text also asserted counterclaims purporting to allege violations of federal and state antitrust laws, but dismissed those claims on September 14, 2011.  The Court completed Part One of the Markman hearing, covering two of the patents asserted, on October 15, 2010, and issued a related Markman Order on March 4, 2011. Open Text's motion for reconsideration of certain portions of the Markman Order was denied on July 2011. The Court completed Part Two of the Markman Hearing covering the two other patents asserted on July 29, 2011, and issued a related Markman Order on October 20, 2011.  In both Markman Orders the Court adopted a claim construction either identical to or consistent with j2 Global's proposed construction for every disputed claim term in all four patents asserted. Trial is currently scheduled to begin on February 13, 2013.

On June 1, 2011, j2 Global and one of its affiliates filed suit against RingCentral in the United States District Court for the Central District of California. The complaint alleges infringement of U.S. Patent Numbers 6,208,638, 6,350,066 and 7,020,132. j2 Global and its affiliate are seeking a permanent injunction against continued infringement, a finding of willfulness, compensatory and treble damages, attorneys' fees, interest and costs. On October 11, 2011, RingCentral filed an answer and counterclaims, alleging infringement of U.S. Patent Number 7,702,669 (the “'669 patent”) and unfair competition in violation of California's Business & Professions Code § 17200 et. seq.; and seeking declaratory judgment of non-infringement and invalidity and requesting damages, injunctive relief, interest and attorneys' fees and costs. On December 8, 2011, j2 Global submitted a request to the USPTO to submit the '669 patent into reexamination proceedings.  On January 25, 2012, the USPTO accepted the reexamination request and rejected all claims of the '669 patent. On March 13, 2012, the Court entered an Order staying RingCentral's patent counterclaim pending conclusion of the reexamination proceedings. The Court also referred questions relating to RingCentral's unfair competition claim to the FCC and stayed the unfair competition claim pending resolution by the FCC. On May 3, 2012, the USPTO issued an action closing the prosecution of the reexamination proceedings, and on July 3, 2012, RingCentral filed a response to this action, seeking permission to submit a response to the action closing prosecution, and also submitting its proposed response. j2 Global's response to RingCentral's submissions is due August 2, 2012. Discovery has commenced in the patent infringement case against RingCentral. The court has scheduled a Markman hearing on January 18, 2013 and trial on January 21, 2014.

On February 21, 2012, EC Data Systems, Inc. (“EC Data”) filed a complaint against j2 Global and one of its affiliates in the United District Court for the District of Colorado, seeking declaratory judgment of non-infringement of U.S. Patent Nos. 6,208,638 and 6,350,066. On April 2, 2012, the Company filed a motion to transfer the case to the Central District of California, which motion is pending. On April 9, 2012, the Company filed an answer to the complaint and counterclaims asserting that EC Data infringes these patents. On May 14, 2012, EC Data filed an answer to j2 Global's counterclaims and asserted counterclaims for declaratory judgments of non-infringement and invalidity of j2 Global's U.S. Patent No. 7,020,132 and non-infringement of j2 Global's U.S. Patent No. 6,597,688. On May 31, 2012, EC Data submitted a request to the USPTO to submit j2 Global's U.S. Patent No.7,020,132 into re-examination proceedings.

On September 15, 2006, one of the Company's affiliates filed a patent infringement suit against Integrated Global Concepts, Inc. (“IGC”) in the United States District Court for the Northern District of Georgia. On May 13, 2008, IGC filed counterclaims alleging violations of Section 2 of the Sherman Act and breach of contract. IGC is seeking damages, including treble and punitive damages, an injunction against further violations, divestiture of certain assets, and attorneys' fees and costs. On February 18, 2009, the Court granted j2 Global's motion to stay the case pending the conclusion of the j2 Global affiliate's appeal of a summary judgment ruling of non-infringement in another case involving the same patents and issues as this action. On January 22, 2010, the Federal Circuit affirmed the District Court's non-infringement ruling in the other case and on June 7, 2010 the Court lifted the stay. On September 2, 2011, the Court granted the Company's motion to dismiss IGC's breach of contract counterclaim and one portion of IGC's antitrust counterclaim. Following additional discovery, on June 20, 2012, j2 Global's affiliate filed a motion to dismiss its infringement claims and IGC's counterclaims for declaratory relief. On July 27, 2012, the court granted the j2 Global affiliate's motion to dismiss, dismissing the affiliate's infringement claims and IGC's related counterclaims.

On April 20, 2012, j2 Global and a different affiliate filed suit against IGC in the United States District Court for the Central District of California. The complaint alleges infringement of U.S. Patent Numbers 6,208,638, 6,350,066, 6,597,688 and 7,020,132. j2 Global and its affiliate are seeking a permanent injunction against continued infringement, a finding of willfulness, compensatory and treble damages, attorneys' fees, interest and costs. On July 2, 2012, IGC filed a motion to dismiss the complaint or stay the action on the basis that the case is governed by a forum selection clause in a contract between a predecessor entity of j2 Global and IGC that allegedly mandates the United States District Court for the Northern District of California as the venue. On July 9, 2012, j2 Global filed its opposition to IGC's motion to dismiss. On July 30, 2012, the court heard IGC's motion to dismiss and took the motion under submission.

On July 2, 2012, IGC filed suit against j2 Global and one of its affiliates in the United States District Court for the Northern District of California, alleging that j2 Global -- through filing suit in the United States District Court for the Central District of California -- breached a contract not to sue IGC. IGC seeks monetary damages, attorneys' fees, fees and costs, injunctive relief, and specific performance of the alleged covenant not to sue IGC. j2 has not yet answered this complaint.

On February 17, 2011, Emmanuel Pantelakis (“Pantelakis”) filed suit against Protus in the Ontario Supreme Court of Justice, alleging that Protus breached a contract with Pantelakis in connection with Protus' e-mail marketing services. Pantelakis is seeking damages, attorneys' fees, interest and costs. Protus filed a responsive pleading on March 23, 2011. Discovery is ongoing. On July 16, 2012, Protus filed its responses to undertakings.

On March 7, 2011, Xpedite Systems, LLC, a subsidiary of Easylink (“Xpedite”), filed suit against j2 Global in the United States District Court for the Northern District of Georgia, Atlanta Division. The complaint alleges infringement of U.S. Patent Numbers 5,872,640 (the “'640 patent”) and 7,804,823 (the “'823 patent”). Xpedite is seeking a permanent injunction against continued infringement, damages, treble damages, an accounting of sales and profits, and interest and costs. In early July 2011, j2 Global submitted requests to put both patents at issue into reexamination proceedings. On September 8, 2011, the Examiner granted j2 Global's reexamination request with respect to the '823 patent, then on September 9, 2011, the Examiner closed the prosecution and affirmed all of the patent's claims. On October 1, 2011, the USPTO granted the reexamination request with respect to the '640 patent. On October 14, 2011, j2 Global filed a motion to stay the case in chief while the '640 reexamination proceeding is pending. The Court granted the motion to stay on December 21, 2011, staying the litigation until the final resolution of the reexamination proceedings. On February 7, 2012, the USPTO issued an Ex Parte Reexamination Certificate confirming all claims of the '640 patent. On March 13, 2012, Xpedite filed a motion to lift the stay. On March 30, 2012, j2 Global filed a second ex parte reexamination request with respect to the '640 patent and filed its opposition to the motion to lift the stay - which motion remains pending. On June 1, 2012, the USPTO issued an order granting j2 Global's second reexamination request. On May 21, 2012, j2 Global filed an appeal with the Board of Patent Appeals and Interferences (BPAI) of the Examiner's decision to close the prosecution of the '823 patent and affirm all of the claims. On June 21, 2012, the respondent's brief was filed with the BPAI.

j2 Global does not believe, based on current knowledge, that the foregoing legal proceedings or claims, including those where an unfavorable outcome is reasonably possible, 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 the timing, an unfavorable resolution of some or all of these matters could materially affect j2 Global's consolidated financial position, results of operations or cash flows in a particular period. The Company has not accrued for a loss contingency relating to certain of these legal proceedings because unfavorable outcomes are not considered by management to be probable or the amount of any losses reasonably estimable.

XML

Fair Value Measurements

6 Months Ended

Jun. 30, 2012

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

Fair Value Measurements

j2 Global complies with the provisions of ASC 820, which defines fair value, provides a framework for measuring fair value and expands the disclosures required for fair value measurements of financial and non-financial assets and liabilities. ASC 820 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, ASC 820 establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:

§	Level 1 – Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.
§	Level 2 – Include other inputs that are directly or indirectly observable in the marketplace.
§	Level 3 – Unobservable inputs which are supported by little or no market activity.

The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

The Company measures its cash equivalents and investments at fair value. j2 Global’s cash equivalents, short-term investments and other debt securities are primarily classified within Level 1. Cash equivalents and marketable securities are valued primarily using quoted market prices utilizing market observable inputs.

The following tables present the fair values of the Company’s financial instruments that are measured at fair value on a recurring basis (in thousands):

June 30, 2012	Level 1		Level 2		Level 3		Fair Value
Cash equivalents:
Money market and other funds	65,522		—		—		65,522
Time deposits	1,511		—		—		1,511
Certificates of Deposit	17,045		—		—		17,045
Equity securities	220		—		—		220
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies	7,560		—		—		7,560
Debt securities issued by states of the United States and political subdivisions of the states	14,471		—		—		14,471
Debt securities issued by foreign governments	6,368		—		—		6,368
Corporate debt securities	18,297		—		—		18,297
Total	$	130,994	$	—	$	—	$	130,994
December 31, 2011	Level 1		Level 2		Level 3		Fair Value
Cash equivalents:
Money market and other funds	79,945		—		—		79,945
Time deposits	7,082		—		—		7,082
Certificates of Deposit	8,000		—		—		8,000
Equity securities	2		—		—		2
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies	15,006		—		—		15,006
Debt securities issued by states of the United States and political subdivisions of the states	16,228		—		—		16,228
Debt securities issued by foreign governments	6,544		—		—		6,544
Corporate debt securities	35,811		—		—		35,811
Total	$	168,618	$	—	$	—	$	168,618

The following table provides a summary of changes in fair value of the Company’s Level 3 financial assets (in thousands):

	Level 3 Financial Assets
	Six Months Ended June 30, 2012		Six Months Ended June 30, 2011
Beginning Balance	$	—	$	496
Total gains (losses) - realized/unrealized
Included in earnings	—		—
Not included in earnings	—		42
Purchases, issuances and settlements	—		—
Transfers in and/or out of Level 3	—		—
Balance, June 30, 2012 and 2011	$	—	$	538
Total losses for the period included in earnings relating to assets still held at June 30, 2012 and 2011	$	—	$	—

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.

XML

Goodwill And Intangible Assets

6 Months Ended

Jun. 30, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill And Intangible Assets

Goodwill and Intangible Assets

Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in a business combination. Intangible assets resulting from the acquisitions of entities accounted for using the purchase method of accounting are recorded at the estimated fair value of the assets acquired. Identifiable intangible assets are comprised of purchased customer relationships, trademarks and tradenames, 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, tradenames 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 using the straight-line method over estimated useful lives ranging from one to 20 years.

The changes in carrying amounts of goodwill for the six months ended June 30, 2012 are as follows (in thousands):

Balance as of January 1, 2012	$	279,016
Goodwill acquired	10,944
Purchase Accounting Adjustments	(301		)
Foreign exchange translation	(400		)
Balance as of June 30, 2012	$	289,259

Intangible assets are summarized as of June 30, 2012 and December 31, 2011 as follows (in thousands):

Intangible assets with indefinite lives:

	June 30, 2012		December 31, 2011
Tradename	$	27,382	$	28,254
Other	5,418		5,317
Total	$	32,800	$	33,571

The Company determined that a certain tradename no longer has an indefinite life as of the second quarter 2012.  Accordingly, the Company has reclassified $0.9 million from intangible assets with indefinite lives to intangible assets subject to amortization during fiscal year 2012.  The Company has determined that this intangible asset has a remaining useful life of 1.5 years and it will be amortized accordingly.

As of June 30, 2012, intangible assets subject to amortization relate primarily to the following (in thousands):

	Weighted-Average Amortization Period	Historical Cost		Accumulated Amortization			Net
Tradenames	11.2 years	$	12,165	$	(5,053	)	$	7,112
Patent and patent licenses	8.4 years	40,631		(22,564		)	18,067
Customer relationships	6.6 years	57,199		(17,154		)	40,045
Other purchased intangibles	4.7 years	11,697		(7,809		)	3,888
Total		$	121,692	$	(52,580	)	$	69,112

As of December 31, 2011, intangible assets subject to amortization relate primarily to the following (in thousands):

	Weighted-Average Amortization Period	Historical Cost		Accumulated Amortization			Net
Tradenames	12.6 years	$	10,584	$	(4,147	)	$	6,437
Patent and patent licenses	8.4 years	38,229		(20,712		)	17,517
Customer relationships	6.7 years	49,245		(13,380		)	35,865
Other purchased intangibles	4.7 years	11,545		(6,868		)	4,677
Total		$	109,603	$	(45,107	)	$	64,496

Amortization expense, included in general and administrative expense, approximated $3.7 million and $3.3 million for the three month period ended June 30, 2012 and 2011, respectively, and $7.1 million and $6.8 million for the six month period ended June 30, 2012 and 2011, respectively.  Amortization expense is estimated to approximate $18.4 million, $14.2 million, $12.4 million, $11.4 million and $10.0 million for fiscal years 2012 through 2016, respectively, and $9.8 million thereafter through the duration of the amortization period.

XML

Income Taxes

6 Months Ended

Jun. 30, 2012

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 the estimate of the annual effective tax rate and, if the estimated tax rate 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. For the quarter ended June 30, 2012, the effective tax rate was 23.6%.  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 reinvest such earnings in foreign jurisdictions.  Income before income taxes included income from domestic operations of $27.7 million and $22.5 million for the six months ended June 30, 2012 and 2011, respectively, and income from foreign operations of $50.0 million and $38.5 million for the six months ended June 30, 2012 and 2011, respectively.

As of June 30, 2012 and December 31, 2011, the Company had $33.7 million and $30.1 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 operations.

Cash paid for income taxes net of refunds received was $5.7 million for the six months ended June 30, 2012.

Certain tax payments are prepaid during the year and included within prepaid expenses and other current assets on the consolidated balance sheet. The Company’s prepaid tax payments were $2.3 million and $11.0 million at June 30, 2012 and December 31, 2011, respectively.

j2 Global is currently under audit by the California Franchise Tax Board (“FTB”) for tax years 2005 through 2007.  The FTB has also issued Information Document Requests regarding the 2008 tax year, although no formal notice of audit for 2008 has been provided. The Company is also under income tax audits by the IRS for tax years 2009 and 2010 and by the Canada Revenue Agency (“CRA”) for tax years 2008 through 2010. In addition, the Company is under audit by the CRA for value added sales taxes for tax years 2009 through 2011.  It is possible that these audits may conclude in the next 12 months and that the unrecognized tax benefits the Company has recorded in relation to these tax years may change compared to the liabilities recorded for these periods. However, it is not currently possible to estimate the amount, if any, of such change.

j2 Global is also under audit by various states for non-income related taxes.

XML

Investments Investments (Narrative) (Details) (USD $)	6 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
Investments [Abstract]
Gain on Sale of Investments	$ 200,000
Restricted Investments, Current	17,000,000
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	21,700,000	46,200,000
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	$ 2,300,000	$ 0

XML

Subsequent Events

6 Months Ended

Jun. 30, 2012

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

On July 31, 2012, the Company's Board of Directors approved a quarterly cash dividend of $0.22 per share of common stock payable on August 29, 2012 to all stockholders of record as of the close of business on August 13, 2012. Future dividends will be subject to Board approval.

On July 26, 2012, the Company completed the issuance of a private offering of $250 million in aggregate principal amount of 8.000% senior unsecured notes due 2020. The net proceeds of the offering are expected to be $243 million after deducting the commissions and fees and expenses of the offering. The Company intends to use the net proceeds from the offering for general corporate purposes, which may include acquisitions.

XML

Stock Options And Employee Stock Purchase Plan (Tables)

6 Months Ended

Jun. 30, 2012

Stock Options Activity

The following table represents stock option activity for the six months ended June 30, 2012:

	Number of Shares		Weighted- Average Exercise Price		Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding at January 1, 2012	2,087,695		$	20.99
Granted	57,000		27.04
Exercised	(225,410	)	13.27
Canceled	(16,000	)	33.54
Outstanding at June 30, 2012	1,903,285		21.98		5.6	$	11,001,387
Exercisable at June 30, 2012	1,212,489		21.45		4.5	$	7,867,462
Vested and expected to vest at June 30, 2012	1,803,435		$	21.82	5.4	$	10,701,380

Assumptions To Estimate Fair Value Of Stock Options

The weighted-average fair values of stock options granted have been estimated utilizing the following assumptions:

	Six Months Ended June 30,
	2012	2011
Risk-free interest rate	0.97%	2.39%
Expected term (in years)	5.7	6.5
Dividend yield	3.43%	—%
Expected volatility	41%	42%
Weighted-average volatility	41%	42%

Allocation Of Share-Based Compensation Expense

The following table represents share-based compensation expense included in cost of revenues and operating expenses in the accompanying condensed consolidated statements of operations for the three and six months ended June 30, 2012 and 2011 (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Cost of revenues	$	192	$	246	$	434	$	490
Operating expenses:
Sales and marketing	352		351		727		699
Research, development and engineering	117		110		233		257
General and administrative	1,494		1,524		3,054		2,990
Total	$	2,155	$	2,231	$	4,448	$	4,436

Restricted Stock [Member]

Restricted Stock And Restricted Stock Unit Award Activity

Restricted stock award activity for the six months ended June 30, 2012 is set forth below:

	Shares		Weighted-Average Grant-Date Fair Value
Nonvested at January 1, 2012	742,683		$	20.87
Granted	88,544		25.47
Vested	(184,652	)	20.37
Canceled	(900	)	29.21
Nonvested at June 30, 2012	645,675		$	21.63

Restricted Stock Units (RSUs) [Member]

Restricted Stock And Restricted Stock Unit Award Activity

Restricted stock unit award activity for the six months ended June 30, 2012 is set forth below:

	Number of Shares		Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding at January 1, 2012	32,750
Granted	64,166
Vested	(1,500	)
Canceled	—
Outstanding at June 30, 2012	95,416		3.0	$	2,520,891
Vested and expected to vest at June 30, 2012	60,453		3.0	$	1,597,179

XML

Geographic Information (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
United States	$ 54,896	$ 53,247	$ 109,017	$ 97,603
All other countries	34,569	32,429	67,100	61,457
Total revenues	89,465	85,676	176,117	159,060
United States	35,590		35,590		35,498
All other countries	47,617		47,617		43,436
Total long-lived assets	83,207		83,207		78,934
Remaining Service Obligations To eFax Customers [Member]
Total revenues				$ 10,300

XML

Income Taxes (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended	6 Months Ended			12 Months Ended
	Jun. 30, 2012	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011	Dec. 31, 2007 California Franchise Tax Board [Member]	Dec. 31, 2006 California Franchise Tax Board [Member]	Dec. 31, 2005 California Franchise Tax Board [Member]	Dec. 31, 2010 Internal Revenue Service (IRS) [Member]	Dec. 31, 2009 Internal Revenue Service (IRS) [Member]	Dec. 31, 2010 Canada Revenue Agency [Member]	Dec. 31, 2009 Canada Revenue Agency [Member]	Dec. 31, 2008 Canada Revenue Agency [Member]
Income Taxes [Line Items]
U.S. federal statutory rate		35.00%
Effective income tax rate	23.60%
Income before income taxes, domestic operations		$ 27.7	$ 22.5
Income before income taxes, foreign operations		50.0	38.5
Liabilities for uncertain income tax positions	33.7	33.7		30.1
Cash paid for income taxes		5.7
Prepaid tax payments	$ 2.3	$ 2.3		$ 11.0
Income Tax Examination, Year under Examination					2007	2006	2005	2010	2009	2010	2009	2008

XML

Condensed Consolidated Statement of Operations (Parenthetical) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Share-based Compensation			$ 4,425	$ 4,436
Allocated Share-based Compensation Expense	2,155	2,231	4,448	4,436
Cost of Goods Sold, Subscription	16,187	15,158	32,051	30,950
Cost Of Revenues [Member]
Allocated Share-based Compensation Expense	192	246	434	490
Sales And Marketing [Member]
Allocated Share-based Compensation Expense	352	351	727	699
Research, Development And Engineering [Member]
Allocated Share-based Compensation Expense	117	110	233	257
General And Administrative [Member]
Allocated Share-based Compensation Expense	$ 1,494	$ 1,524	$ 3,054	$ 2,990

XML

Recent Accounting Pronouncements

6 Months Ended

Jun. 30, 2012

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In May 2011, the FASB issued ASU No. 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs.  This guidance was issued to achieve common fair value measurement and disclosure requirements between GAAP and International Financial Reporting Standards. This new guidance amends current fair value measurement and disclosure guidance to include increased transparency around valuation inputs and investment categorization. This ASU is effective for interim and annual periods beginning after December 15, 2011. The adoption of this new guidance did not have a significant impact on the Company’s fair value measurements, financial condition, results of operations or cash flows.

In June 2011, the FASB issued ASU No. 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income. This guidance is effective for interim and annual periods beginning December 15, 2011 and will require companies to present the components of net income and other comprehensive income either as one continuous statement or as two consecutive statements. It eliminates the option to present components of other comprehensive income as part of the statement of changes in stockholders' equity. The standard does not change the items which must be reported in other comprehensive income, how such items are measured or when they must be reclassified to net income.  In addition, in December 2011, the FASB issued an amendment which defers the requirement to present components of reclassifications of other comprehensive income on the face of the income statement.  In accordance with this guidance, the Company has presented the components of net income and other comprehensive income as two consecutive statements beginning the period ended March 31, 2012.

In September 2011, the FASB issued ASU No. 2011-08, Intangibles – Goodwill and Other (Topic 350), which simplifies how entities test goodwill for impairment and permits an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. This ASU is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011 (early adoption is permitted). The Company decided to early adopt this guidance which did not have a significant impact on the Company's consolidated financial position or results of operations.

In July 2012, the FASB issued ASU No. 2012-02, Intangibles – Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment, which simplifies how entities test indefinite-lived intangible assets other than goodwill for impairment and permits an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of the indefinite-lived intangible asset is less than its carrying amount as a basis for determining whether it is necessary to perform a quantitative impairment test. This ASU is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012 (early adoption is permitted). The Company does not anticipate that the adoption of this guidance will have a significant impact on the Company's consolidated financial position or results of operations.

XML

Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2012

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 June 30,					Six Months Ended June 30,
	2012			2011		2012			2011
Numerator for basic and diluted net earnings per common share:
Net earnings	$	31,188		$	28,514	$	59,727		$	59,449
Net earnings available to participating securities (a)	(460		)	—		(922		)	—
Net earnings available to common shareholders	30,728			28,514		58,805			59,449
Denominator:
Weighted-average outstanding shares of common stock	45,373,930			45,399,940		45,887,185			45,247,381
Dilutive effect of:
Dilutive effect of equity incentive plans	195,634			1,323,852		316,306			1,416,485
Common stock and common stock equivalents	45,569,564			46,723,792		46,203,491			46,663,866
Net earnings per share:
Basic	$	0.68		$	0.63	$	1.28		$	1.31
Diluted	$	0.67		$	0.61	$	1.27		$	1.27

(a) Represents unvested share-based payment awards that contain certain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid).

XML

Goodwill And Intangible Assets (Changes In Carrying Amounts Of Goodwill And Other Intangible Assets) (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012
Goodwill and Intangible Assets Disclosure [Abstract]
Balance as of January 1, 2012	$ 279,016
Goodwill acquired	10,944
Purchase Accounting Adjustments	(301)
Foreign Exchange Translation	(400)
Balance as of June 30, 2012	$ 289,259

XML

Geographic Information

6 Months Ended

Jun. 30, 2012

Segments, Geographical Areas [Abstract]

Geographic Information

Geographic Information

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 June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Revenues:
United States	$	54,896	$	53,247	$	109,017	$	97,603
All other countries	34,569		32,429		67,100		61,457
	$	89,465	$	85,676	$	176,117	$	159,060

	June 30, 2012		December 31, 2011
Long-lived assets:
United States	$	35,590	$	35,498
All other countries	47,617		43,436
Total	$	83,207	$	78,934

Revenues for the six months ended June 30, 2011 reflect a change in estimate of the remaining service obligation to eFax® annual subscribers in the amount of $10.3 million which reduced subscriber revenues predominately in the United States (See Note 1 – Basis of Presentation) for further details.