Unrestricted Subsidiaries (unaudited)

As of December 31, 2013, the Company's Board of Directors had designated the following entities as “Unrestricted Subsidiary” under the indenture governing j2 Global's Notes:

Ziff Davis, LLC and subsidiaries.

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 consolidated financial position of the Unrestricted Subsidiaries as of December 31, 2013 is as follows (in thousands):



	December 31, 2013
ASSETS
Cash and cash equivalents	$	16,506
Accounts receivable	47,804
Prepaid expenses and other current assets	3,090
Deferred income taxes	2,704
Total current assets	70,104
Property and equipment, net	13,358
Trade names, net	49,701
Customer relationships, net	53,169
Goodwill	140,740
Other purchased intangibles, net	3,208
Deferred income taxes	1,463
Other assets	1,543
Total assets	$	333,286
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued expenses	$	23,087
Income taxes payable	3,294
Deferred revenue	2,743
Deferred income taxes	679
Total current liabilities	29,803
Deferred income taxes	21,696
Total liabilities	51,499
Additional paid-in capital	297,390
Retained earnings	(15,366		)
Accumulated other comprehensive loss	(237		)
Total stockholders’ equity	281,787
Total equity	281,787
Total liabilities and stockholders’ equity	$	333,286

The consolidated results of operations of the Unrestricted Subsidiaries for the year ended December 31, 2013 is as follows (in thousands):



	Year Ended December 31,
	2013
Revenues	$	131,146

Cost of revenues	16,982
Gross profit	114,164
Operating expenses:
Sales and marketing	64,923
Research, development and engineering	5,427
General and administrative	37,082
Total operating expenses	107,432
Income from operations	6,732
Other income (expenses):
Interest expense (income), net	11,215
Other expense (income), net	12,229
Loss before income taxes	(16,712		)
Income tax (benefit) expense	(265		)
Net loss	(16,447		)
Less net income attributable to noncontrolling interest	—
Net loss attributable to common stockholders	$	(16,447	)