Unrestricted Subsidiaries (unaudited)

In November 2012, the Company's board of directors designated Ziff Davis, Inc., a subsidiary of j2 Global, Inc., as an “Unrestricted Subsidiary” under the indenture governing j2 Global's Notes. The financial position and results of operations of Ziff Davis, Inc. are included in the Company's consolidated financial statements included in this report.

As required by the indenture governing j2 Global's Notes, information sufficient to ascertain the financial condition and results of operations excluding the Unrestricted Subsidiaries must be presented. Accordingly, the Company is presenting the following tables.

The financial position of Ziff Davis, Inc. as of December 31, 2012 is as follows (in thousands):



	December 31, 2012
ASSETS
Cash and cash equivalents	$	2,574
Accounts receivable	16,349
Prepaid expenses and other current assets	494
Deferred income taxes	1,139
Total current assets	20,556
Property and equipment, net	5,812
Trade names, net	37,458
Customer relationships, net	25,410
Goodwill	112,882
Other purchased intangibles, net	1,216
Other assets	912
Total assets	$	204,246
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued expenses	$	2,372
Income taxes payable	1,374
Deferred revenue	1,973
Total current liabilities	5,719
Deferred income taxes	21,829
Mandatorily redeemable financial instrument	178,740
Total liabilities	206,288
Commitments and contingencies	—
Common stock	—
Additional paid-in capital	(2,052		)
Retained earnings	(73		)
Accumulated other comprehensive loss	—
Total stockholders’ equity	(2,125		)
Noncontrolling interests	83
Total equity	(2,042		)
Total liabilities and stockholders’ equity	$	204,246

The results of operations of Ziff Davis, Inc. for the year ended December 31, 2012 is as follows (in thousands):



	Year Ended December 31,
	2012
Revenues	$	9,712

Cost of revenues	1,956
Gross profit	7,756
Operating expenses:
Sales and marketing	2,677
Research, development and engineering	151
General and administrative	2,039
Total operating expenses	4,867
Income from operations	2,889
Other income (expenses):
Interest and other income	—
Interest and other expense	—
Total other income (expenses)	—
Income before income taxes	2,889
Income tax expense	1,192
Net income	1,697
Less net income attributable to noncontrolling interest	83
Net income attributable to common stockholders	$	1,614