Condensed Consolidating Financials (Tables)

9 Months Ended

Sep. 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)

	September 30, 2015
BALANCE SHEET	j2 Global, Inc.		j2 Cloud Services, Inc.		Non-guarantor Subsidiaries		Consolidating Adjustments			j2 Global Consolidated
ASSETS
Cash and cash equivalents	$	109,554	$	11,854	$	150,960	$	—		$	272,368
Short-term investments	85,353		—		57		—			85,410
Accounts receivable, net	69		11,353		85,954		—			97,376
Prepaid expenses and other current assets	10,289		18,486		12,331		(4,368		)	36,738
Deferred income taxes	267		857		6,663		—			7,787
Intercompany receivable	92,000		153,610		—		(245,610		)	—
Total current assets	297,532		196,160		255,965		(249,978		)	499,679
Long-term investments	52,889		—		—		—			52,889
Property and equipment, net	—		7,064		52,765		—			59,829
Trade names, net	—		10,145		113,193		—			123,338
Patent and patent licenses, net	—		779		19,573		—			20,352
Customer relationships, net	—		1,445		204,315		—			205,760
Goodwill	—		53,543		719,373		—			772,916
Other purchased intangibles, net	—		4,232		12,405		—			16,637
Investment in subsidiaries	1,027,107		1,081,389		8,714		(2,117,210		)	—
Other assets	8,506		2,928		2,165		—			13,599
Total assets	$	1,386,034	$	1,357,685	$	1,388,468	$	(2,367,188	)	$	1,764,999
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued expenses	$	7,102	$	25,860	$	56,676	$	—		$	89,638
Income taxes payable	—		4,430		—		(4,368		)	62
Deferred revenue, current	—		19,847		55,270		—			75,117
Capital lease, current	—		—		248		—			248
Deferred income taxes	—		—		364		—			364
Intercompany payable	118,263		—		127,347		(245,610		)	—
Total current liabilities	125,365		50,137		239,905		(249,978		)	165,429

Long term debt	352,579			246,604		—			—			599,183
Capital lease, non-current	—			—		175			—			175
Liability for uncertain tax positions	—			27,634		—			—			27,634
Deferred income taxes	26,339			—		39,867			—			66,206
Deferred revenue, non-current	—			5,446		1,921			—			7,367
Other long-term liabilities	1,071			757		25,211			—			27,039
Total liabilities	505,354			330,578		307,079			(249,978		)	893,033
Common stock, $0.01 par value.	477			—		—			—			477
Additional paid-in capital - common	289,196			236,965		523,584			(760,549		)	289,196
Retained earnings	600,139			785,386		587,147			(1,365,864		)	606,808
Accumulated other comprehensive loss	(9,132		)	4,756		(29,342		)	9,203			(24,515		)
Total stockholders’ equity	880,680			1,027,107		1,081,389			(2,117,210		)	871,966
Total liabilities and stockholders’ equity	$	1,386,034		$	1,357,685	$	1,388,468		$	(2,367,188	)	$	1,764,999

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 September 30, 2015
	j2 Global, Inc.			j2 Cloud Services, Inc		Non-guarantor Subsidiaries		Consolidating Adjustments			j2 Global Consolidated
Revenues:
Total revenues	$	—		$	56,753	$	148,648	$	(26,700	)	$	178,701
Cost of revenues	(1		)	29,375		27,948		(26,653		)	30,669
Gross profit	1			27,378		120,700		(47		)	148,032
Operating expenses:
Sales and marketing	—			9,684		29,171		(47		)	38,808
Research, development and engineering	(2		)	3,646		4,645		—			8,289
General and administrative	3,714			5,067		36,421		—			45,202
Total operating expenses	3,712			18,397		70,237		(47		)	92,299
Operating income	(3,711		)	8,981		50,463		—			55,733
Equity earnings in subsidiaries	41,260			41,357		—		(82,617		)	—
Interest expense (income), net	3,293			5,179		1,787		—			10,259
Other expense (income), net	(2		)	37		1,051		—			1,086
Income before income taxes	34,258			45,122		47,625		(82,617		)	44,388
Income tax expense	(3,117		)	3,862		6,268		—			7,013
Net income	$	37,375		$	41,260	$	41,357	$	(82,617	)	$	37,375

j2 GLOBAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF INCOME

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

	Three Months Ended September 30, 2014
	j2 Global, Inc.			j2 Cloud Services, Inc			Non-guarantor Subsidiaries			Consolidating Adjustments			j2 Global Consolidated
Revenues:
Total revenues	$	—		$	52,960		$	90,854		$	9,204		$	153,018
Cost of revenues	—			(3,275		)	22,060			9,259			28,044
Gross profit	—			56,235			68,794			(55		)	124,974
Operating expenses:
Sales and marketing	—			9,168			27,934			(55		)	37,047
Research, development and engineering	—			3,320			4,317			—			7,637
General and administrative	3,063			6,789			23,960			—			33,812
Total operating expenses	3,063			19,277			56,211			(55		)	78,496
Operating income	(3,063		)	36,958			12,583			—			46,478
Equity earnings in subsidiaries	33,798			5,492			—			(39,290		)	—
Interest expense (income), net	5,136			5,116			(129		)	—			10,123
Other expense (income), net	(2		)	78			175			—			251
Income before income taxes	25,601			37,256			12,537			(39,290		)	36,104
Income tax expense	(3,158		)	3,458			7,045			—			7,345
Net income	$	28,759		$	33,798		$	5,492		$	(39,290	)	$	28,759

j2 GLOBAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF INCOME

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

	Nine Months Ended September 30, 2015
	j2 Global, Inc.			j2 Cloud Services, Inc		Non-guarantor Subsidiaries		Consolidating Adjustments			j2 Global Consolidated
Revenues:
Total revenues	$	—		$	167,919	$	394,300	$	(46,227	)	$	515,992
Cost of revenues	—			60,317		74,091		(46,058		)	88,350
Gross profit	—			107,602		320,209		(169		)	427,642
Operating expenses:
Sales and marketing	—			29,976		87,012		(169		)	116,819
Research, development and engineering	—			11,264		14,440		—			25,704
General and administrative	11,434			20,928		106,428		—			138,790
Total operating expenses	11,434			62,168		207,880		(169		)	281,313
Operating income	(11,434		)	45,434		112,329		—			146,329
Equity earnings in subsidiaries	113,042			91,640		—		(204,682		)	—
Interest expense (income), net	8,651			16,079		6,723		—			31,453
Other expense (income), net	(20		)	347		63		—			390
Income before income taxes	92,977			120,648		105,543		(204,682		)	114,486
Income tax expense	(5,192		)	7,606		13,903		—			16,317
Net income	$	98,169		$	113,042	$	91,640	$	(204,682	)	$	98,169

j2 GLOBAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF INCOME

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

	Nine Months Ended September 30, 2014
	j2 Global, Inc.			j2 Cloud Services, Inc		Non-guarantor Subsidiaries			Consolidating Adjustments			j2 Global Consolidated
Revenues:
Total revenues	$	—		$	169,467	$	293,530		$	(31,111	)	$	431,886
Cost of revenues	—			35,729		72,191			(30,929		)	76,991
Gross profit	—			133,738		221,339			(182		)	354,895
Operating expenses:
Sales and marketing	—			27,149		78,368			(182		)	105,335
Research, development and engineering	—			10,411		12,040			—			22,451
General and administrative	3,463			24,003		66,743			—			94,209
Total operating expenses	3,463			61,563		157,151			(182		)	221,995
Operating income	(3,463		)	72,175		64,188			—			132,900
Equity earnings in subsidiaries	98,283			46,211		—			(144,494		)	—
Interest expense (income), net	5,786			15,314		(347		)	—			20,753
Other expense (income), net	(2		)	6		(258		)	—			(254		)
Income before income taxes	89,036			103,066		64,793			(144,494		)	112,401
Income tax expense	(3,537		)	4,783		18,582			—			19,828
Net income	$	92,573		$	98,283	$	46,211		$	(144,494	)	$	92,573

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 September 30, 2015
	j2 Global, Inc.			j2 Cloud Services, Inc.		Non-guarantor Subsidiaries			Consolidating Adjustments			j2 Global Consolidated
Net income	$	37,375		$	41,260	$	41,357		$	(82,617	)	$	37,375
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment, net of tax expense (benefit)	—			—		(4,652		)	—			(4,652		)
Unrealized gain (loss) on available-for-sale investments, net of tax expense (benefit)	(1,057		)	—		—			—			(1,057		)
Other comprehensive income (loss), net of tax	(1,057		)	—		(4,652		)	—			(5,709		)
Comprehensive income	$	36,318		$	41,260	$	36,705		$	(82,617	)	$	31,666

j2 GLOBAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

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

	Three Months Ended September 30, 2014
	j2 Global, Inc.		j2 Cloud Services, Inc.			Non-guarantor Subsidiaries			Consolidating Adjustments			j2 Global Consolidated
Net income	$	28,759	$	33,798		$	5,492		$	(39,290	)	$	28,759
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment, net of tax expense (benefit)	—		2,300			(9,277		)	—			(6,977		)
Unrealized gain (loss) on available-for-sale investments, net of tax expense (benefit)	64		(3,068		)	(2		)	—			(3,006		)
Other comprehensive income (loss), net of tax	64		(768		)	(9,279		)	—			(9,983		)
Comprehensive income	$	28,823	$	33,030		$	(3,787	)	$	(39,290	)	$	18,776

j2 GLOBAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

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

	Nine Months Ended September 30, 2015
	j2 Global, Inc.			j2 Cloud Services, Inc.		Non-guarantor Subsidiaries			Consolidating Adjustments			j2 Global Consolidated
Net income	$	98,169		$	113,042	$	91,640		$	(204,682	)	$	98,169
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment, net of tax expense (benefit)	—			—		(12,777		)	—			(12,777		)
Unrealized gain (loss) on available-for-sale investments, net of tax expense (benefit)	(4,611		)	—		—			—			(4,611		)
Other comprehensive income (loss), net of tax	(4,611		)	—		(12,777		)	—			(17,388		)
Comprehensive income	$	93,558		$	113,042	$	78,863		$	(204,682	)	$	80,781

j2 GLOBAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

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

	Nine Months Ended September 30, 2014
	j2 Global, Inc.		j2 Cloud Services, Inc.			Non-guarantor Subsidiaries			Consolidating Adjustments			j2 Global Consolidated
Net income	$	92,573	$	98,283		$	46,211		$	(144,494	)	$	92,573
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment, net of tax expense (benefit)	—		1,644			(6,450		)	—			(4,806		)
Unrealized gain (loss) on available-for-sale investments, net of tax expense (benefit)	64		(2,834		)	9			—			(2,761		)
Other comprehensive income (loss), net of tax	64		(1,190		)	(6,441		)	—			(7,567		)
Comprehensive income	$	92,637	$	97,093		$	39,770		$	(144,494	)	$	85,006

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)

	Nine Months Ended September 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	$	(21,341	)	$	34,297		$	135,617		$	—	$	148,573
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	87,976			—			—			—		87,976
Purchase of available-for-sale investments	(78,281		)	—			—			—		(78,281		)
Purchases of property and equipment	—			(1,355		)	(10,572		)	—		(11,927		)
Acquisition of businesses, net of cash received	—			47			(259,885		)	—		(259,838		)
Purchases of intangible assets	—			166			(1,424		)	—		(1,258		)
Investment in subsidiaries	—			—			—			—		—
Intercompany	(53,317		)	53,317			—			—		—
Net cash (used in) provided by investing activities	(43,619		)	52,175			(271,881		)	—		(263,325		)
Cash flows from financing activities:
Repurchases of common and restricted stock	(3,159		)	—			—			—		(3,159		)
Issuance of common stock under employee stock purchase plan	196			—			—			—		196
Exercise of stock options	4,618			—			—			—		4,618
Dividends paid	(43,526		)	—			—			—		(43,526		)
Excess tax benefits from share-based compensation	4,541			—			—			—		4,541
Deferred payments for acquisitions	—			—			(5,411		)	—		(5,411		)
Other	—			—			(250		)	—		(250		)
Intercompany	(13,713		)	(103,533		)	117,246			—		—

Net cash (used in) provided by financing activities	(51,043		)	(103,533		)	111,585			—		(42,991		)
Effect of exchange rate changes on cash and cash equivalents	(1,233		)	(7,895		)	5,576			—		(3,552		)
Net change in cash and cash equivalents	(117,236		)	(24,956		)	(19,103		)	—		(161,295		)
Cash and cash equivalents at beginning of period	226,790			36,810			170,063			—		433,663
Cash and cash equivalents at end of period	$	109,554		$	11,854		$	150,960		$	—	$	272,368

j2 GLOBAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW

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

	Nine Months Ended September 30, 2014
	j2 Global, Inc.			j2 Cloud Services, Inc.			Non-guarantor Subsidiaries			Consolidating Adjustments			j2 Global Consolidated
Net cash provided by operating activities	$	11,254		$	38,535		$	82,332		$	—		$	132,121
Cash flows from investing activities:
Maturity of certificates of deposit	—			8,210			6,310			—			14,520
Maturity of available-for-sale investments	2,005			46,863			11,588			—			60,456
Purchase of available-for-sale investments	(58,591		)	(54,393		)	1			—			(112,983		)
Purchases of property and equipment	—			(925		)	(6,830		)	—			(7,755		)
Proceeds from sale of assets	—			—			608			—			608
Acquisition of businesses, net of cash received	—			—			(118,238		)	—			(118,238		)
Purchases of intangible assets	—			(2,871		)	(1,935		)	—			(4,806		)
Investment in subsidiaries	—			(23,822		)	—			23,822			—
Net cash (used in) provided by investing activities	(56,586		)	(26,938		)	(108,496		)	23,822			(168,198		)
Cash flows from financing activities:
Issuance of long-term debt	402,500			—			—			—			402,500
Debt issuance costs	(12,069		)	—			542			—			(11,527		)
Repurchases of common stock and restricted stock	(739		)	(4,734		)	—			—			(5,473		)
Issuance of common stock under employee stock purchase plan	76			123			—			—			199
Exercise of stock options	1,193			5,194			—			—			6,387
Dividends paid	(13,267		)	(25,302		)	22			—			(38,547		)
Excess tax benefits from share-based compensation	1,925			4,803			—			—			6,728
Deferred payments for acquisitions	—			—			(14,316		)	—			(14,316		)
Other	—			—			(711		)	—			(711		)
Intercompany	(20,620		)	(11,292		)	55,734			(23,822		)	—

Net cash (used in) provided by financing activities	358,999		(31,208		)	41,271			(23,822		)	345,240
Effect of exchange rate changes on cash and cash equivalents	—		4			(1,971		)	—			(1,967		)
Net change in cash and cash equivalents	313,667		(19,607		)	13,136			—			307,196
Cash and cash equivalents at beginning of period	—		34,406			173,395			—			207,801
Cash and cash equivalents at end of period	$	313,667	$	14,799		$	186,531		$	—		$	514,997