Condensed Consolidating Financials (Tables)

6 Months Ended

Jun. 30, 2015

Condensed Financial Information [Abstract]

Condensed Balance Sheet [Table Text Block]

j2 GLOBAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET

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

	June 30, 2015
BALANCE SHEET	j2 Global, Inc.		j2 Cloud Services, Inc.		Non-guarantor Subsidiaries		Consolidating Adjustments			j2 Global Consolidated
ASSETS
Cash and cash equivalents	$	220,787	$	11,400	$	183,743	$	—		$	415,930
Short-term investments	55,489		41,637		62		—			97,188
Accounts receivable, net	—		12,423		74,939		(43		)	87,319
Prepaid expenses and other current assets	1,595		16,989		10,111		(1,555		)	27,140
Deferred income taxes	782		—		3,732		—			4,514
Intercompany receivable	72,000		105,827		—		(177,827		)	—
Total current assets	350,653		188,276		272,587		(179,425		)	632,091
Long-term investments	47,119		7,058		—		—			54,177
Property and equipment, net	—		7,088		29,690		—			36,778
Trade names, net	—		10,172		93,671		—			103,843
Patent and patent licenses, net	—		815		21,042		—			21,857
Customer relationships, net	—		1,699		173,789		—			175,488
Goodwill	—		54,087		619,997		—			674,084
Other purchased intangibles, net	—		4,248		10,732		—			14,980
Investment in subsidiaries	889,340		943,491		8,717		(1,841,548		)	—
Other assets	8,786		2,718		2,007		—			13,511
Total assets	$	1,295,898	$	1,219,652	$	1,232,232	$	(2,020,973	)	$	1,726,809
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued expenses	$	4,500	$	28,429	$	54,195	$	(43	)	$	87,081
Income taxes payable	—		2,770		—		(1,555		)	1,215
Deferred revenue, current	—		20,461		54,892		—			75,353
Capital lease, current	—		—		324		—			324
Deferred income taxes	—		—		362		—			362
Intercompany payable	54,901		—		122,926		(177,827		)	—
Total current liabilities	59,401		51,660		232,699		(179,425		)	164,335

Long term debt	350,747		246,462		—			—			597,209
Capital lease, non-current	—		—		195			—			195
Liability for uncertain tax positions	—		25,136		—			—			25,136
Deferred income taxes	26,759		—		36,508			—			63,267
Deferred revenue, non-current	—		6,227		1,995			—			8,222
Other long-term liabilities	1,071		827		17,344			—			19,242
Total liabilities	437,978		330,312		288,741			(179,425		)	877,606
Common stock, $0.01 par value.	476		—		—			—			476
Additional paid-in capital - common	282,702		235,332		422,108			(657,440		)	282,702
Retained earnings	574,683		648,467		545,789			(1,184,108		)	584,831
Accumulated other comprehensive loss	59		5,541		(24,406		)	—			(18,806		)
Total stockholders’ equity	857,920		889,340		943,491			(1,841,548		)	849,203
Total liabilities and stockholders’ equity	$	1,295,898	$	1,219,652	$	1,232,232		$	(2,020,973	)	$	1,726,809

j2 GLOBAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET

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

	December 31, 2014
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
Income taxes payable	—		—		—		—			—
Deferred revenue, current	—		23,091		40,366		—			63,457
Capital lease, current	—		—		258		—			258
Deferred income taxes	—		—		342		—			342
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 - common	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 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

Condensed Income Statement [Table Text Block]

j2 GLOBAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF INCOME

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

	Three Months Ended June 30, 2015
	j2 Global, Inc.			j2 Cloud Services, Inc			Non-guarantor Subsidiaries		Consolidating Adjustments			j2 Global Consolidated
Revenues:
Total revenues	$	—		$	56,547		$	129,217	$	(9,726	)	$	176,038
Cost of revenues	1			15,414			23,748		(9,669		)	29,494
Gross profit	(1		)	41,133			105,469		(57		)	146,544
Operating expenses:
Sales and marketing	—			10,512			29,966		(57		)	40,421
Research, development and engineering	2			3,763			5,204		—			8,969
General and administrative	3,538			9,011			34,539		—			47,088
Total operating expenses	3,540			23,286			69,709		(57		)	96,478
Operating income	(3,541		)	17,847			35,760		—			50,066
Equity earnings in subsidiaries	45,530			26,742			—		(72,272		)	—
Interest expense (income), net	2,772			5,791			2,318		—			10,881
Other expense (income), net	(5		)	(28		)	121		—			88
Income before income taxes	39,222			38,826			33,321		(72,272		)	39,097
Income tax expense	306			(6,704		)	6,579		—			181
Net income	$	38,916		$	45,530		$	26,742	$	(72,272	)	$	38,916

j2 GLOBAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF INCOME

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

	Three Months Ended June 30, 2014
	j2 Global, Inc.			j2 Cloud Services, Inc			Non-guarantor Subsidiaries			Consolidating Adjustments			j2 Global Consolidated
Revenues:
Total revenues	$	—		$	65,313		$	106,042		$	(26,611	)	$	144,744
Cost of revenues	—			19,051			33,065			(26,558		)	25,558
Gross profit	—			46,262			72,977			(53		)	119,186
Operating expenses:
Sales and marketing	—			8,968			26,414			(53		)	35,329
Research, development and engineering	—			3,471			4,129			—			7,600
General and administrative	400			7,646			23,373			—			31,419
Total operating expenses	400			20,085			53,916			(53		)	74,348
Operating income	(400		)	26,177			19,061			—			44,838
Equity earnings in subsidiaries	—			12,780			—			(12,780		)	—
Interest expense (income), net	650			5,095			(63		)	—			5,682
Other expense (income), net	—			(40		)	(145		)	—			(185		)
Income before income taxes	(1,050		)	33,902			19,269			(12,780		)	39,341
Income tax expense	(379		)	(1,818		)	6,489			—			4,292
Net income	$	(671	)	$	35,720		$	12,780		$	(12,780	)	$	35,049

j2 GLOBAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF INCOME

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

	Six Months Ended June 30, 2015
	j2 Global, Inc.			j2 Cloud Services, Inc		Non-guarantor Subsidiaries			Consolidating Adjustments			j2 Global Consolidated
Revenues:
Total revenues	$	—		$	111,166	$	245,652		$	(19,527	)	$	337,291
Cost of revenues	1			30,942		46,143			(19,405		)	57,681
Gross profit	(1		)	80,224		199,509			(122		)	279,610
Operating expenses:
Sales and marketing	—			20,292		57,841			(122		)	78,011
Research, development and engineering	2			7,618		9,795			—			17,415
General and administrative	7,717			15,861		70,010			—			93,588
Total operating expenses	7,719			43,771		137,646			(122		)	189,014
Operating income	(7,720		)	36,453		61,863			—			90,596
Equity earnings in subsidiaries	71,782			50,283		—			(122,065		)	—
Interest expense (income), net	5,360			10,899		4,935			—			21,194
Other expense (income), net	(17		)	311		(990		)	—			(696		)
Income before income taxes	58,719			75,526		57,918			(122,065		)	70,098
Income tax expense	(2,075		)	3,744		7,635			—			9,304
Net income	$	60,794		$	71,782	$	50,283		$	(122,065	)	$	60,794

j2 GLOBAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF INCOME

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

	Six Months Ended June 30, 2014
	j2 Global, Inc.			j2 Cloud Services, Inc			Non-guarantor Subsidiaries			Consolidating Adjustments			j2 Global Consolidated
Revenues:
Total revenues	$	—		$	116,507		$	202,676		$	(40,315	)	$	278,868
Cost of revenues	—			39,004			50,131			(40,188		)	48,947
Gross profit	—			77,503			152,545			(127		)	229,921
Operating expenses:
Sales and marketing	—			17,980			50,435			(127		)	68,288
Research, development and engineering	—			7,091			7,723			—			14,814
General and administrative	400			17,215			42,782			—			60,397
Total operating expenses	400			42,286			100,940			(127		)	143,499
Operating income	(400		)	35,217			51,605			—			86,422
Equity earnings in subsidiaries	—			40,720			—			(40,720		)	—
Interest expense (income), net	650			10,198			(218		)	—			10,630
Other expense (income), net	—			(71		)	(434		)	—			(505		)
Income before income taxes	(1,050		)	65,810			52,257			(40,720		)	76,297
Income tax expense	(379		)	1,325			11,537			—			12,483
Net income	$	(671	)	$	64,485		$	40,720		$	(40,720	)	$	63,814

Condensed Comprehensive Income Statement [Table Text Block]

j2 GLOBAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

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

	Three Months Ended June 30, 2015
	j2 Global, Inc.			j2 Cloud Services, Inc.			Non-guarantor Subsidiaries		Consolidating Adjustments			j2 Global Consolidated
Net income	$	38,916		$	45,530		$	26,742	$	(72,272	)	$	38,916
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment, net of tax expense (benefit)	—			—			7,112		—			7,112
Unrealized gain (loss) on available-for-sale investments, net of tax expense (benefit)	(267		)	(3,667		)	—		—			(3,934		)
Other comprehensive income (loss), net of tax	(267		)	(3,667		)	7,112		—			3,178
Comprehensive income	$	38,649		$	41,863		$	33,854	$	(72,272	)	$	42,094

j2 GLOBAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

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

	Three Months Ended June 30, 2014
	j2 Global, Inc.			j2 Cloud Services, Inc.		Non-guarantor Subsidiaries		Consolidating Adjustments			j2 Global Consolidated
Net income	$	(671	)	$	35,720	$	12,780	$	(12,780	)	$	35,049
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment, net of tax expense (benefit)	—			—		1,334		—			1,334
Unrealized gain (loss) on available-for-sale investments, net of tax expense (benefit)	—			2,477		408		—			2,885
Other comprehensive income (loss), net of tax	—			2,477		1,742		—			4,219
Comprehensive income	$	(671	)	$	38,197	$	14,522	$	(12,780	)	$	39,268

j2 GLOBAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

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

	Six Months Ended June 30, 2015
	j2 Global, Inc.		j2 Cloud Services, Inc.			Non-guarantor Subsidiaries			Consolidating Adjustments			j2 Global Consolidated
Net income	$	60,794	$	71,782		$	50,283		$	(122,065	)	$	60,794
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment, net of tax expense (benefit)	—		—			(8,125		)	—			(8,125		)
Unrealized gain (loss) on available-for-sale investments, net of tax expense (benefit)	44		(3,598		)	—			—			(3,554		)
Other comprehensive income (loss), net of tax	44		(3,598		)	(8,125		)	—			(11,679		)
Comprehensive income	$	60,838	$	68,184		$	42,158		$	(122,065	)	$	49,115

j2 GLOBAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

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

	Six Months Ended June 30, 2014
	j2 Global, Inc.			j2 Cloud Services, Inc.			Non-guarantor Subsidiaries		Consolidating Adjustments			j2 Global Consolidated
Net income	$	(671	)	$	64,485		$	40,720	$	(40,720	)	$	63,814
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment, net of tax expense (benefit)	—			—			2,171		—			2,171
Unrealized gain (loss) on available-for-sale investments, net of tax expense (benefit)	—			(421		)	666		—			245
Other comprehensive income (loss), net of tax	—			(421		)	2,837		—			2,416
Comprehensive income	$	(671	)	$	64,064		$	43,557	$	(40,720	)	$	66,230

Condensed Cash Flow Statement [Table Text Block]

j2 GLOBAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW

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

	Six Months Ended June 30, 2015
	j2 Global, Inc.			j2 Cloud Services, Inc.			Non-guarantor Subsidiaries			Consolidating Adjustments		j2 Global Consolidated
Net cash (used in) provided by operating activities	$	(26,174	)	$	35,542		$	88,242		$	—	$	97,610
Cash flows from investing activities:
Maturity of certificates of deposit	—			65			—			—		65
Purchase of certificates of deposit	—			(62		)	—			—		(62		)
Maturity of available-for-sale investments	38,047			18,048			—			—		56,095
Purchase of available-for-sale investments	(37,734		)	(19,731		)	—			—		(57,465		)
Purchases of property and equipment	—			(496		)	(6,459		)	—		(6,955		)
Acquisition of businesses, net of cash received	—			(497		)	(73,811		)	—		(74,308		)
Purchases of intangible assets	—			291			(1,157		)	—		(866		)
Investment in subsidiaries	—			—			—			—		—
Net cash (used in) provided by investing activities	313			(2,382		)	(81,427		)	—		(83,496		)
Cash flows from financing activities:
Repurchases of common and restricted stock	(2,302		)	—			—			—		(2,302		)
Issuance of common stock under employee stock purchase plan	126			—			—			—		126
Exercise of stock options	3,009			—			—			—		3,009
Dividends paid	(28,610		)	—			—			—		(28,610		)
Excess tax benefits from share-based compensation	2,104			—			—			—		2,104
Deferred payments for acquisitions	—			(656		)	(3,227		)	—		(3,883		)
Other	—			—			(180		)	—		(180		)
Intercompany	45,533			(60,376		)	14,843			—		—
Net cash (used in) provided by financing activities	19,860			(61,032		)	11,436			—		(29,736		)

Effect of exchange rate changes on cash and cash equivalents	(2		)	2,462			(4,571		)	—		(2,111		)
Net change in cash and cash equivalents	(6,003		)	(25,410		)	13,680			—		(17,733		)
Cash and cash equivalents at beginning of period	226,790			36,810			170,063			—		433,663
Cash and cash equivalents at end of period	$	220,787		$	11,400		$	183,743		$	—	$	415,930

j2 GLOBAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW

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

	Six Months Ended June 30, 2014
	j2 Global, Inc.			j2 Cloud Services, Inc.			Non-guarantor Subsidiaries			Consolidating Adjustments		j2 Global Consolidated
Net cash provided by operating activities	$	52		$	2,497		$	89,257		$	—	$	91,806
Cash flows from investing activities:
Maturity of certificates of deposit	—			8,210			6,310			—		14,520
Maturity of available-for-sale investments	—			40,340			11,589			—		51,929
Purchase of available-for-sale investments	—			(45,044		)	1			—		(45,043		)
Purchases of property and equipment	—			(533		)	(4,098		)	—		(4,631		)
Proceeds from sale of assets	—			—			608			—		608
Acquisition of businesses, net of cash received	—			55			(79,601		)	—		(79,546		)
Purchases of intangible assets	—			(2,804		)	(1,095		)	—		(3,899		)
Investment in subsidiaries	—			(1,021		)	1,021			—		—
Net cash (used in) provided by investing activities	—			(797		)	(65,265		)	—		(66,062		)
Cash flows from financing activities:
Issuance of long-term debt	402,500			—			—			—		402,500
Debt issuance costs	(11,069		)	—			—			—		(11,069		)
Repurchases of common stock and restricted stock	—			(4,733		)	—			—		(4,733		)
Issuance of common stock under employee stock purchase plan	—			123			—			—		123
Exercise of stock options	—			5,247			—			—		5,247
Dividends paid	—			(25,302		)	—			—		(25,302		)
Excess tax benefits from share-based compensation	—			4,803			—			—		4,803
Deferred payments for acquisitions	—			(3,996		)	(9,477		)	—		(13,473		)
Other	—			(54		)	(163		)	—		(217		)
Intercompany	—			17,792			(17,792		)	—		—

Net cash (used in) provided by financing activities	391,431		(6,120		)	(27,432		)	—		357,879
Effect of exchange rate changes on cash and cash equivalents	—		(18		)	475			—		457
Net change in cash and cash equivalents	391,483		(4,438		)	(2,965		)	—		384,080
Cash and cash equivalents at beginning of period	—		34,406			173,395			—		207,801
Cash and cash equivalents at end of period	$	391,483	$	29,968		$	170,430		$	—	$	591,881