Fair Value Measurements

12 Months Ended

Dec. 31, 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 fair value of the senior unsecured notes (See Note 8 - Long-Term Debt) was determined using the quoted market prices of debt instruments with similar terms, credit rating and maturities, which are considered Level 2 inputs. The total carrying value of long-term debt was $245.2 million and zero, and the corresponding fair value was approximately $275.5 million and zero, at December 31, 2012 and December 31, 2011, respectively.

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):

December 31, 2012	Level 1		Level 2		Level 3		Fair Value
Cash equivalents:
Money market and other funds	99,351		—		—		99,351
Time deposits	22,093		—		—		22,093
Certificates of Deposit	34,876		—		—		34,876
Equity securities	23,497		—		—		23,497
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies	6,450		—		—		6,450
Debt securities issued by states of the United States and political subdivisions of the states	11,658		—		—		11,658
Debt securities issued by foreign governments	3,589		—		—		3,589
Corporate debt securities	44,826		—		—		44,826
Total	$	246,340	$	—	$	—	$	246,340
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 as of December 31, 2012 and 2011 (in thousands):

	Level 3 Financial Assets
	Year Ended December 31, 2012		Year Ended December 31, 2011
Beginning Balance	$	—	$	496
Total gains (losses) - realized/unrealized
Included in earnings	—		553
Not included in earnings	—		(322		)
Purchases, issuances and settlements	—		(727		)
Transfers in and/or out of Level 3	—		—
Balance, December 31, 2012 and 2011	$	—	$	—
Total losses for the period included in earnings relating to assets still held at December 31, 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.