Condensed Consolidating Financials (Notes)

12 Months Ended

Dec. 31, 2014

Condensed Consolidating Financials [Abstract]

Condensed Financial Statements [Text Block]

Consolidating Financial Statements

In connection with the June 2014 Convertible Note issuance, j2 Global, Inc. entered into a supplemental indenture related to the Senior Notes pursuant to which it fully and unconditionally guaranteed, on an unsecured basis, the full and punctual payment of the Senior Notes issued by its wholly owned subsidiary, j2 Cloud Services, Inc. j2 Cloud Services, Inc. is subject to restrictions on dividends in its existing indenture with respect to the Senior Notes. While substantially all of the Company’s assets (other than the net cash proceeds from the issuance of the Convertible Notes) are owned directly or indirectly by j2 Cloud Services, Inc., those contractual provisions did not, as of June 30, 2014, meaningfully restrict j2 Cloud Services, Inc.’s ability to pay dividends to j2 Global, Inc.

The following condensed consolidating financial statements present, in separate columns, financial information for (i) j2 Global, Inc. (the “Parent”) on a parent-only basis, (ii) j2 Cloud Services, Inc., (iii) the non-guarantor subsidiaries on a combined basis, (iv) the eliminations and reclassifications necessary to arrive at the information for the Company on a consolidated basis, and (v) the Company on a consolidated basis. The condensed consolidating financial statements are presented in accordance with the equity method. Under this method, the investments in subsidiaries are recorded at cost and adjusted for the Company’s share of subsidiaries’ cumulative results of operations, capital contributions, distributions and other equity changes. Intercompany charges (income) between the Parent and subsidiaries are recognized in the condensed consolidating financial statements during the period incurred and the settlement of intercompany balances is reflected in the condensed consolidating statement of cash flows based on the nature of the underlying transactions. Consolidating adjustments include consolidating and eliminating entries for investments in subsidiaries, intercompany activity and balances.

j2 GLOBAL, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

December 31, 2014

(In thousands except share and per share data)

BALANCE SHEET	j2 Global, Inc.		j2 Cloud Services, Inc.		Non-guarantor Subsidiaries		Consolidating Adjustments			j2 Global Consolidated
ASSETS
Cash and cash equivalents	226,790		36,810		170,063		—			433,663
Short-term investments	47,880		48,261		65		—			96,206
Accounts receivable, net	—		11,167		80,532		—			91,699
Prepaid expenses and other current assets	776		12,689		9,137		—			22,602
Deferred income taxes	1,271		—		742		—			2,013
Intercompany receivable	110,000		74,938		1,428		(186,366		)	—
Total current assets	386,717		183,865		261,967		(186,366		)	646,183
Long-term investments	55,452		5,056		—		—			60,508
Property and equipment, net	—		8,011		30,206		—			38,217
Trade names, net	—		10,231		95,320		—			105,551
Patent and patent licenses, net	—		886		24,041		—			24,927
Customer relationships, net	—		2,206		161,560		—			163,766
Goodwill	—		52,131		583,544		—			635,675
Other purchased intangibles, net	—		4,276		13,280		—			17,556
Investment in subsidiaries	826,289		900,681		8,716		(1,735,686		)	—
Other assets	9,328		1,368		2,123		—			12,819
Total assets	$	1,277,786	$	1,168,711	$	1,180,757	$	(1,922,052	)	$	1,705,202
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued expenses	2,834		28,414		64,062		—			95,310
Deferred revenue	—		23,091		40,366		—			63,457
Deferred income taxes	—		—		342		—			342
Capital lease, current	—		—		258		—			258
Intercompany payable	76,366		—		110,000		(186,366		)	—
Total current liabilities	79,200		51,505		215,028		(186,366		)	159,367

Long-term debt	347,163		246,187			—			—			593,350
Capital lease, non-current	—		—			141			—			141
Liability for uncertain tax positions	—		37,551			—			—			37,551
Deferred income taxes	21,728		(1,837		)	42,069			—			61,960
Deferred revenue, non-current	—		8,187			1,995			—			10,182
Other long-term liabilities	744		829			20,843			—			22,416
Total liabilities	448,835		342,422			280,076			(186,366		)	884,967
Common stock, $0.01 par value	474		—			—			—			474
Additional paid-in capital	273,304		232,340			421,676			(654,016		)	273,304
Retained earnings	555,158		584,591			495,505			(1,081,670		)	553,584
Accumulated other comprehensive income (loss)	15		9,358			(16,500		)	—			(7,127		)
Total stockholders’ equity	828,951		826,289			900,681			(1,735,686		)	820,235
Total liabilities and stockholders’ equity	$	1,277,786	$	1,168,711		$	1,180,757		$	(1,922,052	)	$	1,705,202

j2 GLOBAL, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

December 31, 2013

(In thousands except share and per share data)

BALANCE SHEET	j2 Global, Inc.		j2 Cloud Services, Inc.		Non-guarantor Subsidiaries		Consolidating Adjustments			j2 Global Consolidated
ASSETS
Cash and cash equivalents	—		34,406		173,395		—			207,801
Short-term investments	—		67,848		22,941		—			90,789
Accounts receivable, net	—		11,541		55,704		—			67,245
Prepaid expenses and other current assets	—		16,662		3,402		—			20,064
Deferred income taxes	—		—		3,126		—			3,126
Intercompany receivable	—		4,433		—		(4,433		)	—
Total current assets	—		134,890		258,568		(4,433		)	389,025
Long-term investments	—		47,351		—		—			47,351
Property and equipment, net	—		11,232		19,968		—			31,200
Trade names, net	—		12,119		70,989		—			83,108
Patent and patent licenses, net	—		15,107		13,423		—			28,530
Customer relationships, net	—		6,125		94,855		—			100,980
Goodwill	—		86,025		371,397		—			457,422
Other purchased intangibles, net	—		5,306		5,609		—			10,915
Investment in subsidiaries	—		741,843		—		(741,843		)	—
Deferred income taxes	—		202		1,643		—			1,845
Other assets	—		1,578		1,835		—			3,413
Total assets	$	—	$	1,061,778	$	838,287	$	(746,276	)	$	1,153,789
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued expenses	—		29,419		40,151		—			69,570
Income taxes payable	—		—		1,569		—			1,569
Deferred revenue	—		23,762		12,564		—			36,326
Liability for uncertain tax positions	—		5,532		3		—			5,535
Deferred income taxes	—		906		986		—			1,892
Intercompany payable	—		—		4,433		(4,433		)	—

Total current liabilities	—		59,619		59,706			(4,433		)	114,892
Long-term debt	—		245,670		—			—			245,670
Liability for uncertain tax positions	—		38,329		—			—			38,329
Deferred income taxes	—		—		35,833			—			35,833
Deferred revenue, non-current	—		10,753		436			—			11,189
Other long-term liabilities	—		989		469			—			1,458
Total liabilities	—		355,360		96,444			(4,433		)	447,371
Common stock, $0.01 par value	—		461		34			(34		)	461
Additional paid-in capital - common	—		216,872		326,983			(326,983		)	216,872
Retained earnings	—		482,540		417,136			(414,826		)	484,850
Accumulated other comprehensive loss	—		6,545		(2,310		)	—			4,235
Total stockholders’ equity	—		706,418		741,843			(741,843		)	706,418
Total liabilities and stockholders’ equity	$	—	$	1,061,778	$	838,287		$	(746,276	)	$	1,153,789

j2 GLOBAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF INCOME

Year Ended December 31, 2014

(In thousands, except share and per share data)

	j2 Global, Inc.			j2 Cloud Services, Inc		Non-guarantor Subsidiaries			Consolidating Adjustments			j2 Global Consolidated
Revenues:
Total revenues	$	—		$	227,860	$	412,217		$	(41,047	)	$	599,030
Cost of revenues	—			51,391		95,386			(40,788		)	105,989
Gross profit	—			176,469		316,831			(259		)	493,041
Operating expenses:
Sales and marketing	—			36,414		105,812			(259		)	141,967
Research, development and engineering	—			14,055		16,625			—			30,680
General and administrative	6,401			30,300		97,487			—			134,188
Total operating expenses	6,401			80,769		219,924			(259		)	306,835
Income from operations	(6,401		)	95,700		96,907			—			186,206
Equity earnings in Subsidiaries	135,838			77,051		—			(212,889		)	—
Interest expense (income), net	10,442			20,478		284			—			31,204
Other expense (income), net	(23		)	141		(283		)	—			(165		)
Income before income taxes	119,018			152,132		96,906			(212,889		)	155,167
Income tax expense	(6,309		)	16,294		19,855			—			29,840
Net income	125,327			135,838		77,051			(212,889		)	125,327
Less net loss attributable to noncontrolling interest	—			—		—			—			—
Less extinguishment of Series A preferred stock	(991		)	—		—			—			(991		)
Net income attributable to j2 Global, Inc. common shareholders	$	124,336		$	135,838	$	77,051		$	(212,889	)	$	124,336

j2 GLOBAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF INCOME

Year Ended December 31, 2013

(In thousands, except share and per share data)

	j2 Global, Inc.		j2 Cloud Services, Inc			Non-guarantor Subsidiaries		Consolidating Adjustments			j2 Global Consolidated
Revenues:
Total revenues	$	—	$	255,413		$	369,079	$	(103,691	)	$	520,801
Cost of revenues	—		84,655			105,480		(103,242		)	86,893
Gross profit	—		170,758			263,599		(449		)	433,908
Operating expenses:
Sales and marketing	—		41,555			90,211		(449		)	131,317
Research, development and engineering	—		12,977			12,508		—			25,485
General and administrative	—		37,634			64,049		—			101,683
Total operating expenses	—		92,166			166,768		(449		)	258,485
Income from operations	—		78,592			96,831		—			175,423
Equity earnings in Subsidiaries	—		61,551			—		(61,551		)	—
Interest expense (income), net	—		9,292			11,962		—			21,254
Other expense (income), net	—		(369		)	11,841		—			11,472
Income before income taxes	—		131,220			73,028		(61,551		)	142,697
Income tax expense	—		23,698			11,477		—			35,175
Net income	—		107,522			61,551		(61,551		)	107,522
Less net loss attributable to noncontrolling interest	—		—			—		—			—
Net income attributable to j2 Global, Inc. common shareholders	$	—	$	107,522		$	61,551	$	(61,551	)	$	107,522

j2 GLOBAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF INCOME

Year Ended December 31, 2012

(In thousands, except share and per share data)

	j2 Global, Inc.		j2 Cloud Services, Inc			Non-guarantor Subsidiaries			Consolidating Adjustments			j2 Global Consolidated
Revenues:
Total revenues	$	—	$	222,203		$	206,045		$	(56,852	)	$	371,396
Cost of revenues	—		85,826			38,039			(56,852		)	67,013
Gross profit	—		136,377			168,006			—			304,383
Operating expenses:
Sales and marketing	—		35,677			27,148			—			62,825
Research, development and engineering	—		11,878			6,746			—			18,624
General and administrative	—		35,558			25,214			—			60,772
Total operating expenses	—		83,113			59,108			—			142,221
Income from operations	—		53,264			108,898			—			162,162
Equity earnings in Subsidiaries	—		91,539			—			(91,539		)	—
Interest expense (income), net	—		3,911			3,739			—			7,650
Other expense (income), net	—		(168		)	(242		)	—			(410		)
Income before income taxes	—		141,060			105,401			(91,539		)	154,922
Income tax expense	—		19,480			13,779			—			33,259
Net income	—		121,580			91,622			(91,539		)	121,663
Less net loss attributable to noncontrolling interest	—		—			83			—			83
Net income attributable to j2 Global, Inc. common shareholders	$	—	$	121,580		$	91,539		$	(91,539	)	$	121,580

j2 GLOBAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Year Ended December 31, 2014

(In thousands)

	j2 Global, Inc.		j2 Cloud Services, Inc.			Non-guarantor Subsidiaries			Consolidating Adjustments			j2 Global Consolidated
Net income	$	125,327	$	135,838		$	77,051		$	(212,889	)	$	125,327
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment, net of tax expense (benefit)	—		(478		)	(14,216		)	—			(14,694		)
Unrealized gain (loss) on available-for-sale investments, net of tax expense (benefit)	15		3,307			10			—			3,332
Other comprehensive income (loss), net of tax	15		2,829			(14,206		)	—			(11,362		)
Comprehensive income (loss)	$	125,342	$	138,667		$	62,845		$	(212,889	)	$	113,965
Net loss attributable to noncontrolling interest	—		—			—			—			—
Comprehensive income attributable to j2 Global, Inc.	$	125,342	$	138,667		$	62,845		$	(212,889	)	$	113,965

j2 GLOBAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Year Ended December 31, 2013

(In thousands)

	j2 Global, Inc.		j2 Cloud Services, Inc.			Non-guarantor Subsidiaries			Consolidating Adjustments			j2 Global Consolidated
Net income	$	—	$	107,522		$	61,551		$	(61,551	)	$	107,522
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment, net of tax expense (benefit)	—		(43		)	121			—			78
Unrealized gain (loss) on available-for-sale investments, net of tax expense (benefit)	—		4,249			(4		)	—			4,245
Other comprehensive income, net of tax	—		4,206			117			—			4,323
Comprehensive income	$	—	$	111,728		$	61,668		$	(61,551	)	$	111,845
Net loss attributable to noncontrolling interest	—		—			—			—			—
Comprehensive income attributable to j2 Global, Inc.	$	—	$	111,728		$	61,668		$	(61,551	)	$	111,845

j2 GLOBAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Year Ended December 31, 2012

(In thousands)

	j2 Global, Inc.		j2 Cloud Services, Inc.		Non-guarantor Subsidiaries			Consolidating Adjustments			j2 Global Consolidated
Net income	$	—	$	121,580	$	91,622		$	(91,539	)	$	121,663
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment, net of tax expense (benefit)	—		521		914			—			1,435
Unrealized gain (loss) on available-for-sale investments, net of tax expense (benefit)	—		1,960		(6		)	—			1,954
Other comprehensive income, net of tax	—		2,481		908			—			3,389
Comprehensive income	—		124,061		92,530			(91,539		)	125,052
Net loss attributable to noncontrolling interest	—		—		83			—			83
Comprehensive income attributable to j2 Global, Inc.	$	—	$	124,061	$	92,447		$	(91,539	)	$	124,969

j2 GLOBAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS

Year Ended December 31, 2014

(In thousands)

	j2 Global, Inc.			j2 Cloud Services, Inc.			Non-guarantor Subsidiaries			Consolidating Adjustments			j2 Global Consolidated
Cash flows from operating activities:
Net income	$	125,327		$	135,838		$	77,051		$	(212,889	)	$	125,327
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	—			6,047			56,906			—			62,953
Accretion and amortization of discount and premium of investments	392			722			220			—			1,334
Amortization of financing costs and discounts	4,297			748			—			—			5,045
Share-based compensation	2,353			5,325			1,230			—			8,908
Excess tax benefits from share-based compensation	(86		)	(4,803		)	(623		)	—			(5,512		)
Provision for doubtful accounts	—			2,114			2,588			—			4,702
Equity earnings in subsidiaries	(135,838		)	(77,051		)	—			212,889			—
Deferred income taxes	(1,392		)	(5,767		)	(2,874		)	—			(10,033		)
(Gain) Loss on disposal of fixed assets	—			—			—			—			—
(Gain) loss on available-for-sale investment	26			(58		)	(58		)				(90		)
Changes in assets and liabilities, net of effects of business combinations:
Decrease (increase) in:
Accounts receivable	—			(2,490		)	(8,588		)	—			(11,078		)
Prepaid expenses and other current assets	(776		)	(8,757		)	6,321			—			(3,212		)
Other assets	—			—			(42		)	—			(42		)
Increase (decrease) in:
Accounts payable and accrued expenses	2,835			(1,173		)	(7,109		)	—			(5,447		)
Income taxes payable	2,055			17,384			(8,642		)	—			10,797
Deferred revenue	—			(2,067		)	1,356			—			(711		)

Liability for uncertain tax positions	—		(6,311	)	(2	)	—		(6,313	)
Other long-term liabilities	742		(157	)	18		—		603
Net cash (used in) provided by operating activities	(65	)	59,544		117,752		—		177,231
Cash flows from investing activities:
Maturity of certificates of deposit	—		8,210		6,310		—		14,520
Purchase of certificates of deposit	—		—		(65	)	—		(65	)
Sales of available-for-sale investments	40,211		53,563		16,589		—		110,363
Purchase of available-for-sale investments	(81,061	)	(57,391	)	—		—		(138,452	)
Purchases of property and equipment	—		(2,866	)	(8,963	)	—		(11,829	)
Proceeds from sale of assets	—		608		—		—		608
Acquisition of businesses, net of cash received	—		(2,083	)	(243,195	)	—		(245,278	)
Purchases of intangible assets	—		(2,949	)	(2,387	)	—		(5,336	)
Investment in subsidiaries	—		(23,821	)	—		23,821		—
Net cash (used in) provided by investing activities	(40,850	)	(26,729	)	(231,711	)	23,821		(275,469	)
Cash flows from financing activities:
Issuance of long-term debt	402,500		—		—		—		402,500
Debt issuance cost	(11,991	)	—		—		—		(11,991	)
Repurchases of common and restricted stock	(930	)	(4,733	)	—		—		(5,663	)
Issuance of common stock under employee stock purchase plan	142		123		—		—		265
Exercise of stock options	1,374		5,193		54		—		6,621
Mandatorily redeemable preferred stock	—		—		—		—		—
Dividends paid	(26,967	)	(25,302	)	—		—		(52,269	)
Excess tax benefits from share-based compensation	86		4,803		623		—		5,512
Deferred payments for acquisitions	—		—		(16,512	)	—		(16,512	)
Other	—		—		(933	)	—		(933	)
Intercompany	(96,509	)	(10,495	)	130,825		(23,821	)	—
Net cash (used in) provided by financing activities	267,705		(30,411	)	114,057		(23,821	)	327,530

Effect of exchange rate changes on cash and cash equivalents	—		—		(3,430		)	—		(3,430		)
Net change in cash and cash equivalents	226,790		2,404		(3,332		)	—		225,862
Cash and cash equivalents at beginning of period	—		34,406		173,395			—		207,801
Cash and cash equivalents at end of period	$	226,790	$	36,810	$	170,063		$	—	$	433,663

j2 GLOBAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS

Year Ended December 31, 2013

(In thousands)

	j2 Global, Inc.		j2 Cloud Services, Inc.			Non-guarantor Subsidiaries			Consolidating Adjustments			j2 Global Consolidated
Cash flows from operating activities:
Net income	$	—	$	107,522		$	61,551		$	(61,551	)	$	107,522
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	—		9,201			30,587			—			39,788
Accretion and amortization of discount and premium of investments	—		1,273			523			—			1,796
Amortization of financing costs and discounts	—		613			—			—			613
Share-based compensation	—		9,720			—			—			9,720
Excess tax benefits from share-based compensation	—		(2,695		)	—			—			(2,695		)
Provision for doubtful accounts	—		1,219			1,916			—			3,135
Equity earnings in subsidiaries	—		(61,551		)	—			61,551			—
Deferred income taxes	—		(495		)	745			—			250
(Gain) Loss on disposal of fixed assets	—		—			8			—			8
(Gain) loss on available-for-sale investment	—		(51		)	117						66
Loss on extinguishment of debt and related interest expense	—		—			14,437			—			14,437
Changes in assets and liabilities, net of effects of business combinations:
Decrease (increase) in:
Accounts receivable	—		(1,656		)	(7,932		)	—			(9,588		)
Prepaid expenses and other current assets	—		784			(635		)	—			149
Other assets	—		(57		)	225			—			168
Increase (decrease) in:
Accounts payable and accrued expenses	—		(124		)	9,250			—			9,126
Income taxes payable	—		(923		)	1,590			—			667

Deferred revenue	—	13,415		(1,047	)	—		12,368
Liability for uncertain tax positions	—	6,184		2		—		6,186
Other long-term liabilities	—	(88	)	(304	)	—		(392	)
Net cash provided by operating activities	—	82,291		111,033		—		193,324
Cash flows from investing activities:
Maturity of certificates of deposit	—	30,270		12,345		—		42,615
Purchase of certificates of deposit	—	(16,375	)	(5,696	)	—		(22,071	)
Sales of available-for-sale investments	—	124,745		15,381		—		140,126
Purchase of available-for-sale investments	—	(149,748	)	(19,153	)	—		(168,901	)
Purchases of property and equipment	—	(6,223	)	(12,404	)	—		(18,627	)
Proceeds from sale of assets	—	1		—		—		1
Acquisition of businesses, net of cash received	—	(4,043	)	(122,298	)	—		(126,341	)
Purchases of intangible assets	—	(3,034	)	(11,166	)	—		(14,200	)
Investment in subsidiaries	—	(14,920	)	—		14,920		—
Other	—	3,281		(3,281	)	—		—
Net cash (used in) provided by investing activities	—	(36,046	)	(146,272	)	14,920		(167,398	)
Cash flows from financing activities:
Issuance of long-term debt	—	—		—		—		—
Debt issuance costs	—	(47	)	—		—		(47	)
Repurchases of common stock and restricted stock	—	(4,587	)	—		—		(4,587	)
Issuance of common stock under employee stock purchase plan	—	213		—		—		213
Exercise of stock options	—	13,604		—		—		13,604
Mandatorily redeemable preferred stock	—	—		—				—
Dividends paid	—	(45,134	)	—		—		(45,134	)
Excess tax benefits from share-based compensation	—	2,695		—		—		2,695
Deferred payments for acquisitions	—	—		—		—		—
Other	—	—		(2,437	)	—		(2,437	)
Intercompany	—	(55,295	)	70,215		(14,920	)	—
Net cash (used in) provided by financing activities	—	(88,551	)	67,778		(14,920	)	(35,693	)

Effect of exchange rate changes on cash and cash equivalents	—		—			(1,112		)	—		(1,112		)
Net change in cash and cash equivalents	—		(42,306		)	31,427			—		(10,879		)
Cash and cash equivalents at beginning of period	—		76,712			141,968			—		218,680
Cash and cash equivalents at end of period	$	—	$	34,406		$	173,395		$	—	$	207,801

j2 GLOBAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS

Year Ended December 31, 2012

(In thousands)

	j2 Global, Inc.		j2 Cloud Services, Inc.			Non-guarantor Subsidiaries			Consolidating Adjustments			j2 Global Consolidated
Cash flows from operating activities:
Net income	$	—	$	121,580		$	91,622		$	(91,539	)	$	121,663
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	—		8,590			13,574			—			22,164
Accretion and amortization of discount and premium of investments	—		1,461			142			—			1,603
Amortization of financing costs and discounts	—		249			—			—			249
Share-based compensation	—		9,132			—			—			9,132
Excess tax benefits from share-based compensation	—		(961		)	—			—			(961		)
Provision for doubtful accounts	—		293			3,996			—			4,289
Equity earnings in subsidiaries	—		(91,539		)	—			91,539			—
Deferred income taxes	—		4,839			(3,689		)	—			1,150
(Gain) Loss on disposal of fixed assets	—		54			—			—			54
(Gain) loss on available-for-sale investment	—		(266		)	—						(266		)
Loss on extinguishment of debt and related interest expense	—		—			—			—			—
Changes in assets and liabilities, net of effects of business combinations:
Decrease (increase) in:
Accounts receivable	—		(822		)	(4,595		)	—			(5,417		)
Prepaid expenses and other current assets	—		(1,265		)	(763		)	—			(2,028		)
Other assets	—		123			(366		)				(243		)
Increase (decrease) in:
Accounts payable and accrued expenses	—		10,599			(5,461		)	—			5,138
Income taxes payable	—		2,193			1,946			—			4,139

Deferred revenue	—	878		734		—		1,612
Liability for uncertain tax positions	—	7,601		—		—		7,601
Other long-term liabilities	—	99		(67	)	—		32
Net cash provided by operating activities	—	72,838		97,073		—		169,911
Cash flows from investing activities:
Maturity of certificates of deposit	—	8,000		—		—		8,000
Purchase of certificates of deposit	—	(22,106	)	(12,567	)	—		(34,673	)
Sales of available-for-sale investments	—	138,709		—		—		138,709
Purchase of available-for-sale investments	—	(139,087	)	(12,902	)	—		(151,989	)
Purchases of property and equipment	—	(2,677	)	(2,384	)	—		(5,061	)
Proceeds from sale of assets	—	136		20		—		156
Acquisition of businesses, net of cash received	—	(1,811	)	(196,530	)	—		(198,341	)
Purchases of intangible assets	—	(4,433	)	(1,862	)	—		(6,295	)
Investment in subsidiaries	—	(171,562	)	—		171,562		—
Other	—	—		—		—		—
Net cash (used in) provided by investing activities	—	(194,831	)	(226,225	)	171,562		(249,494	)
Cash flows from financing activities:
Issuance of long-term debt	—	245,000		—		—		245,000
Debt issuance cost	—	(1,384	)	—		—		(1,384	)
Repurchases of common and restricted stock	—	(60,282	)	—		—		(60,282	)
Issuance of common stock under employee stock purchase plan	—	157		—		—		157
Exercise of stock options	—	5,646		—				5,646
Mandatorily redeemable preferred stock	—	—		8,557		—		8,557
Dividends paid	—	(40,263	)	—		—		(40,263	)
Excess tax benefits from share-based compensation	—	961		—		—		961
Deferred payments for acquisitions	—	—		—		—		—
Other	—	—		—		—		—
Intercompany	—	3,746		167,816		(171,562	)	—
Net cash (used in) provided by financing activities	—	153,581		176,373		(171,562	)	158,392

Effect of exchange rate changes on cash and cash equivalents	—		—		512		—		512
Net change in cash and cash equivalents	—		31,588		47,733		—		79,321
Cash and cash equivalents at beginning of period	—		45,124		94,235		—		139,359
Cash and cash equivalents at end of period	$	—	$	76,712	$	141,968	$	—	$	218,680