Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 25, 2020 | Jun. 30, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 0-25965 | ||
Entity Registrant Name | J2 GLOBAL, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 47-1053457 | ||
Entity Address, Address Line One | 700 S. Flower Street | ||
Entity Address, Address Line Two | 15th Floor | ||
Entity Address, City or Town | Los Angeles | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 90017 | ||
City Area Code | 323 | ||
Local Phone Number | 860-9200 | ||
Title of 12(b) Security | Common Stock, $0.01 par value | ||
Trading Symbol | JCOM | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,989,464,390 | ||
Entity Common Stock, Shares Outstanding | 48,712,833 | ||
Documents Incorporated by Reference | Portions of the definitive Proxy Statement to be delivered to stockholders in connection with the Annual Meeting of Stockholders to be held May 7, 2020 are incorporated by reference into Part III of this Form 10-K. This Annual Report on Form 10-K includes 131 pages with the Index to Exhibits located on page 126. | ||
Entity Central Index Key | 0001084048 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 575,615 | $ 209,474 |
Accounts receivable, net of allowances of $12,701 and $10,422, respectively | 261,928 | 221,615 |
Prepaid expenses and other current assets | 49,347 | 29,242 |
Total current assets | 886,890 | 460,331 |
Long-term investments | 100,079 | 83,828 |
Property and equipment, net | 127,817 | 98,813 |
Operating lease right-of-use assets | 125,822 | 0 |
Trade names, net | 138,029 | 142,888 |
Customer relationships, net | 238,502 | 191,208 |
Goodwill | 1,633,033 | 1,380,376 |
Other purchased intangibles, net | 180,022 | 192,372 |
Deferred Tax Assets, Net, Noncurrent | 59,976 | 0 |
Other assets | 15,676 | 11,014 |
TOTAL ASSETS | 3,505,846 | 2,560,830 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable and accrued expenses | 238,059 | 166,521 |
Income taxes payable, current | 17,758 | 12,915 |
Deferred revenue, current | 162,855 | 127,568 |
Operating Lease, Liability, Current | 26,927 | 0 |
Long-term Debt, Current Maturities | 385,532 | 0 |
Other current liabilities | 1,973 | 318 |
Total current liabilities | 833,104 | 307,322 |
Long-term debt | 1,062,929 | 1,013,129 |
Deferred revenue, noncurrent | 12,744 | 13,200 |
Operating lease liabilities, noncurrent | 104,070 | 0 |
Income taxes payable, noncurrent | 11,675 | 11,675 |
Liability for uncertain tax positions | 52,451 | 59,644 |
Deferred income taxes, noncurrent | 107,453 | 69,048 |
Other long-term liabilities | 10,228 | 51,068 |
TOTAL LIABILITIES | 2,194,654 | 1,525,086 |
Commitments and contingencies | 0 | 0 |
Common stock, $0.01 par value. Authorized 95,000,000 at December 31, 2019 and 2018; total issued 47,654,929 and 48,082,800 shares at December 31, 2019 and 2018, respectively; total outstanding 47,654,929 and 47,482,800 shares at December 31, 2019 and 2018, respectively. | 476 | 481 |
Additional paid-in capital | 465,652 | 354,210 |
Treasury stock, at cost (zero and 600,000 shares at December 31, 2019 and 2018, respectively). | 0 | (42,543) |
Retained earnings | 891,526 | 769,575 |
Accumulated other comprehensive loss | (46,462) | (45,979) |
TOTAL STOCKHOLDERS’ EQUITY | 1,311,192 | 1,035,744 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 3,505,846 | 2,560,830 |
Series A Preferred Stock [Member] | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Preferred stock, $0.01 par value | 0 | 0 |
Series B Preferred Stock [Member] | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Preferred stock, $0.01 par value | $ 0 | $ 0 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Allowance for doubtful accounts | $ 12,701 | $ 10,422 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 95,000,000 | 95,000,000 |
Common stock, shares issued | 47,654,929 | 48,082,800 |
Common stock, shares outstanding | 47,654,929 | 47,482,800 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Treasury Stock, shares | 0 | 600,000 |
Series A Preferred Stock [Member] | ||
Preferred stock, shares authorized | 6,000 | 6,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Series B Preferred Stock [Member] | ||
Preferred stock, shares authorized | 20,000 | 20,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues: | |||
Total revenues | $ 1,372,054 | $ 1,207,295 | $ 1,117,838 |
Cost of Revenue | 237,323 | 201,074 | 172,313 |
Gross profit | 1,134,731 | 1,006,221 | 945,525 |
Operating expenses: | |||
Sales and marketing | 379,183 | 338,304 | 330,296 |
Research, development and engineering | 54,396 | 48,370 | 46,004 |
General and administrative | 424,072 | 375,267 | 323,517 |
Total operating expenses | 857,651 | 761,941 | 699,817 |
Income from operations | 277,080 | 244,280 | 245,708 |
Interest expense, net | 69,546 | 61,987 | 67,777 |
Other expense (income), net | 7,936 | 4,706 | (22,035) |
Income before income taxes and net loss in earnings of equity method investment | 199,598 | 177,587 | 199,966 |
Income tax (benefit) expense | (19,376) | 44,760 | 60,541 |
Net Loss from Equity Method Investments | 168 | 4,140 | 0 |
Net income | $ 218,806 | $ 128,687 | $ 139,425 |
Net income per common share: | |||
Basic (in dollars per share) | $ 4.52 | $ 2.64 | $ 2.89 |
Earnings Per Share, Diluted | $ 4.39 | $ 2.59 | $ 2.83 |
Weighted average shares outstanding: | |||
Basic (in shares) | 47,647,397 | 47,950,746 | 47,586,242 |
Diluted (in shares) | 49,025,684 | 48,927,791 | 48,669,027 |
Cash dividends paid per common share (in dollars per share) | $ 0.90 | $ 1.68 | $ 1.52 |
Share-based compensation expense | $ 23,922 | $ 28,093 | $ 22,737 |
Cost of revenues | |||
Share-based compensation expense | 525 | 510 | 500 |
Sales and marketing | |||
Share-based compensation expense | 1,547 | 1,798 | 1,723 |
Research, development and engineering | |||
Share-based compensation expense | 1,477 | 1,553 | 1,182 |
General and administrative | |||
Share-based compensation expense | $ 20,373 | $ 24,232 | $ 19,332 |
Consolidated Statement Of Compr
Consolidated Statement Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Consolidated Statements of Comprehensive Income [Abstract] | |||||||||||
Net income | $ 123,023 | $ 30,745 | $ 32,589 | $ 32,449 | $ 50,614 | $ 30,723 | $ 28,479 | $ 18,871 | $ 218,806 | $ 128,687 | $ 139,425 |
Other comprehensive (loss) income, net of tax: | |||||||||||
Foreign currency translation adjustment | (1,626) | (15,471) | 25,559 | ||||||||
Change in fair value on available-for-sale investments, net of tax expense (benefit) of $149, ($460) and zero for the years ended 2019, 2018 and 2017, respectively | 1,143 | (1,418) | 0 | ||||||||
Other comprehensive (loss) income, net of tax | (483) | (16,889) | 25,559 | ||||||||
Comprehensive income | $ 218,323 | $ 111,798 | $ 164,984 |
Consolidated Statement Of Com_2
Consolidated Statement Of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Foreign currency translation adjustment, tax | $ 0 | $ 0 | $ 0 |
Unrealized gain on available-for-sale investments, tax | $ 149 | $ (460) | $ 0 |
Consolidated Statement Of Cash
Consolidated Statement Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 218,806 | $ 128,687 | $ 139,425 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 232,032 | 187,174 | 162,041 |
Amortization of financing costs and discounts | 14,038 | 11,385 | 11,952 |
Operating Lease Right of Use Asset Amortization | 21,419 | 0 | 0 |
Share-based compensation | 23,922 | 28,093 | 22,737 |
Provision for doubtful accounts | 13,134 | 17,338 | 13,159 |
Deferred income taxes, net | (63,444) | 25,050 | (21,432) |
Loss on extinguishment of debt and related interest expense | 0 | 0 | 7,962 |
Gain on sale of businesses | 0 | 0 | (27,681) |
Changes in fair value of contingent consideration | 6,318 | 18,944 | 2,300 |
Loss on equity method investments | 139 | 10,506 | 0 |
Equity Securities without Readily Determinable Fair Value, Impairment Loss, Annual Amount | 4,164 | 0 | 0 |
Decrease (increase) in: | |||
Accounts receivable | (30,680) | 4,034 | (37,546) |
Prepaid expenses and other current assets | (8,685) | 2,211 | 4,001 |
Other assets | (4,083) | 2,391 | (2,712) |
Increase (decrease) in: | |||
Accounts payable and accrued expenses | (770) | (35,220) | (34,116) |
Income taxes payable | (1,738) | (29,042) | 14,888 |
Increase Decrease in Operating Lease Liabilities | (20,240) | 0 | 0 |
Deferred revenue | 6,844 | 11,991 | 941 |
Liability for uncertain tax positions | (453) | 7,694 | 4,936 |
Other long-term liabilities | 1,816 | 10,089 | 3,564 |
Net cash provided by operating activities | 412,539 | 401,325 | 264,419 |
Cash flows from investing activities: | |||
Proceeds from Equity Method Investment, Distribution, Return of Capital | 10,288 | 0 | 0 |
Purchases of equity method investment | (29,584) | (36,635) | 0 |
Purchases of available-for-sale investments | 0 | (500) | (4) |
Purchases of property and equipment | (70,588) | (56,379) | (39,595) |
Acquisition of businesses, net of cash received | (415,343) | (312,430) | (174,951) |
Proceeds from sale of businesses, net of cash divested | 0 | 0 | 58,300 |
Purchases of intangible assets | (46) | (669) | (2,240) |
Net cash used in investing activities | (505,273) | (406,613) | (158,490) |
Cash flows from financing activities: | |||
Issuance of long-term debt | 550,000 | 0 | 650,000 |
Payments of Debt Issuance Costs | (12,862) | 0 | (13,515) |
Payment of debt | (5,100) | (2,204) | (255,000) |
Proceeds from Lines of Credit | 185,000 | 0 | 44,981 |
Repayment of line of credit | (185,000) | 0 | (225,000) |
Repurchase of common stock | (20,803) | (47,102) | (9,850) |
Issuance of common stock under employee stock purchase plan | 4,512 | 2,084 | 259 |
Exercise of stock options | 5,274 | 1,540 | 1,108 |
Dividends paid | (43,533) | (81,679) | (73,469) |
Deferred payments for acquisitions | (18,876) | (3,558) | (7,637) |
Other | (1,917) | (443) | (54) |
Net cash provided by (used in) financing activities | 456,695 | (131,362) | 111,823 |
Effect of exchange rate changes on cash and cash equivalents | 2,180 | (4,821) | 9,243 |
Net change in cash and cash equivalents | 366,141 | (141,471) | 226,995 |
Cash and cash equivalents at beginning of year | 209,474 | 350,945 | 123,950 |
Cash and cash equivalents at end of year | $ 575,615 | $ 209,474 | $ 350,945 |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income (Loss) Attributable to Parent | $ 139,425 | $ 139,425 | ||||
Beginning balance, shares at Dec. 31, 2016 | 47,443,716 | 0 | ||||
Beginning balance at Dec. 31, 2016 | 914,536 | $ 474 | $ 308,329 | $ 0 | 660,382 | $ (54,649) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Comprehensive income | 164,984 | 25,559 | ||||
Other comprehensive (loss) income, net of tax | 25,559 | |||||
Dividends | $ (73,469) | (73,469) | ||||
Exercise of stock options, shares | 38,183 | 38,183 | ||||
Exercise of stock options | $ 1,108 | $ 1 | 1,107 | |||
Issuance of shares under Employee Stock Purchase Plan, shares | 3,283 | |||||
Issuance of shares under Employee Stock Purchase Plan | 259 | $ 0 | 259 | |||
Vested restricted stock, shares | 397,781 | |||||
Vested restricted stock | $ (4) | (4) | ||||
Repurchase and retirement of common stock, shares | (117,076) | |||||
Stock Repurchased and Retired During Period, Value | 9,850 | $ 1 | 6,441 | 3,408 | ||
Exchange of Series B preferred stock, shares | 88,623 | |||||
Exchange of Series B preferred stock | $ (1) | (1) | ||||
Share based compensation | 22,737 | 22,605 | 132 | |||
Ending balance at Dec. 31, 2017 | 1,020,305 | $ 479 | 325,854 | $ 0 | 723,062 | (29,090) |
Ending balance, shares at Dec. 31, 2017 | 47,854,510 | 0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 1,599 | 1,599 | ||||
Net Income (Loss) Attributable to Parent | 128,687 | 128,687 | ||||
Comprehensive income | 111,798 | (16,889) | ||||
Other comprehensive (loss) income, net of tax | (16,889) | |||||
Dividends | $ (82,573) | (82,573) | ||||
Exercise of stock options, shares | 67,898 | 67,898 | ||||
Exercise of stock options | $ 1,540 | $ 1 | 1,539 | |||
Issuance of shares under Employee Stock Purchase Plan, shares | 33,262 | |||||
Issuance of shares under Employee Stock Purchase Plan | 2,084 | $ 0 | 2,084 | |||
Vested restricted stock, shares | 169,512 | |||||
Vested restricted stock | $ (2) | (2) | ||||
Repurchase and retirement of common stock, shares | (52,912) | |||||
Stock Repurchased and Retired During Period, Value | 4,559 | $ 1 | 3,230 | 1,328 | ||
Exchange of Series B preferred stock, shares | 10,530 | |||||
Exchange of Series B preferred stock | $ 0 | 0 | ||||
Treasury Stock, Shares, Acquired | (600,000) | |||||
Treasury Stock, Value, Acquired, Cost Method | (42,543) | $ (42,543) | ||||
Share based compensation | 28,093 | 27,965 | 128 | |||
Ending balance at Dec. 31, 2018 | 1,035,744 | $ 481 | 354,210 | $ (42,543) | 769,575 | (45,979) |
Ending balance, shares at Dec. 31, 2018 | 48,082,800 | (600,000) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income (Loss) Attributable to Parent | 218,806 | 218,806 | ||||
Comprehensive income | 218,323 | (483) | ||||
Other comprehensive (loss) income, net of tax | (483) | |||||
Dividends | $ (43,918) | (43,918) | ||||
Exercise of stock options, shares | 189,436 | 189,436 | ||||
Exercise of stock options | $ 5,274 | $ 2 | 5,272 | |||
Issuance of shares under Employee Stock Purchase Plan, shares | 66,413 | |||||
Issuance of shares under Employee Stock Purchase Plan | 4,512 | $ 1 | 4,511 | |||
Adjustments to Additional Paid in Capital, Equity Component of Convertible Debt | 88,138 | 88,138 | ||||
Vested restricted stock, shares | 185,227 | |||||
Vested restricted stock | 0 | $ (1) | (1) | |||
Repurchase and retirement of common stock, shares | (71,077) | |||||
Stock Repurchased and Retired During Period, Value | 4,822 | $ 1 | 4,462 | 359 | ||
Treasury Stock, Shares, Retired | (797,870) | 797,870 | ||||
Treasury Stock, Retired, Cost Method, Amount | 0 | $ (8) | (5,872) | $ 58,524 | (52,644) | |
Treasury Stock, Shares, Acquired | (197,870) | |||||
Treasury Stock, Value, Acquired, Cost Method | (15,981) | $ (15,981) | ||||
Share based compensation | 23,922 | 23,856 | 66 | |||
Ending balance at Dec. 31, 2019 | $ 1,311,192 | $ 476 | $ 465,652 | $ 0 | $ 891,526 | $ (46,462) |
Ending balance, shares at Dec. 31, 2019 | 47,654,929 | 0 |
The Company
The Company | 12 Months Ended |
Dec. 31, 2019 | |
The Company [Abstract] | |
The Company | The Company |
Basis Of Presentation
Basis Of Presentation | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies [Text Block] | Basis of Presentation and Summary of Significant Accounting Policies (a) Principles of Consolidation The accompanying consolidated financial statements include the accounts of J2 Global and its direct and indirect wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. (b) Use of Estimates The preparation of consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, including judgments about investment classifications and the reported amounts of net revenue and expenses during the reporting period. The Company believes that its most significant estimates are those related to revenue recognition, valuation and impairment of investments, its assessment of ownership interests as variable interest entities and the related determination of consolidation, share-based compensation expense, fair value of assets acquired and liabilities assumed in connection with business combinations, long-lived and intangible asset impairment, contingent consideration, income taxes and contingencies and allowance for doubtful accounts. On an ongoing basis, management evaluates its estimates based on historical experience and on various other factors that the Company believes to be reasonable under the circumstances. Actual results could materially differ from those estimates. (c) Allowances for Doubtful Accounts J2 Global reserves for receivables it may not be able to collect. The reserves for the Company’s Cloud Services business are typically driven by the volume of credit card declines and past due invoices and are based on historical experience as well as an evaluation of current market conditions. These reserves for the Company’s Digital Media business are typically driven by past due invoices based on historical experience. On an ongoing basis, management evaluates the adequacy of these reserves. (d) Revenue Recognition Accounting Standard Codification (“ASC”) Topic 605, Revenue Recognition (“Topic 605”) Prior to the transition to ASC 606 on January 1, 2018, J2 Global recognized revenue when persuasive evidence of an arrangement existed, services have been provided, the sales price was fixed and determinable and collection was probable. Principal vs. Agent The Company determined whether revenue should have been reported on a gross or net basis by assessing whether the Company is acting as the principal or an agent in the transaction. If the Company was acting as the principal in a transaction, the Company reported revenue on a gross basis. If the Company was acting as an agent in a transaction, the Company reported revenue on a net basis. In determining whether the Company acted as the principal or an agent, the Company followed the accounting guidance under Topic 605 for principal-agent considerations and placed the most weight on three factors: whether or not the Company (i) was the primary obligor in the arrangement, (ii) had latitude in determining pricing and (iii) bore credit risk. ASC Topic 606, Revenue from Contracts with Customers (“Topic 606”, “ASC 606” or the “new revenue standard”) Following the transition to ASC 606, J2 Global recognizes revenue when the Company satisfies its obligation by transferring control of the goods or services to its customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services (see Note 3 - Revenues). Principal vs. Agent The Company determines whether revenue should be reported on a gross or net basis by assessing whether the Company is acting as the principal or an agent in the transaction. If the Company is acting as the principal in a transaction, the Company reports revenue on a gross basis. If the Company is acting as an agent in a transaction, the Company reports revenue on a net basis. In determining whether the Company acts as the principal or an agent, the Company follows the accounting guidance under Topic 606 for principal-agent considerations and assesses: (i) if another party is involved in providing goods or services to the customer and (ii) whether the Company controls the specified goods or services prior to transferring control to the customer. Sales Taxes The Company has made an accounting policy election to exclude from the measurement of the transaction price all taxes assessed by a governmental authority that are (i) both imposed on and concurrent with a specific revenue-producing transaction and (ii) collected by the Company from a customer. (e) Fair Value Measurements J2 Global complies with the provisions of Financial Accounting Standards Board (“FASB”) ASC Topic No. 820, Fair Value Measurements and Disclosures (“ASC 820”), in measuring fair value and in disclosing fair value measurements. ASC 820 provides a framework for measuring fair value and expands the disclosures required for fair value measurements of financial and non-financial assets and liabilities. As of December 31, 2019 , the carrying values of cash and cash equivalents, accounts receivable, interest receivable, accounts payable, accrued expenses, interest payable, customer deposits and long-term debt are reflected in the financial statements at cost. With the exception of certain investments and long-term debt, cost approximates fair value due to the short-term nature of such instruments. The fair value of the Company’s outstanding debt was determined using the quoted market prices of debt instruments with similar terms and maturities when available. As of the same dates, the carrying value of other long-term liabilities approximated fair value as the related interest rates approximate rates currently available to J2 Global. (f) Cash and Cash Equivalents J2 Global considers cash equivalents to be only those investments that are highly liquid, readily convertible to cash and with maturities of three months or less at the purchase date. (g) Investments J2 Global accounts for its investments in debt securities in accordance with ASC Topic No. 320, Investments - Debt Securities (“ASC 320”). Debt investments are typically comprised of corporate debt securities. J2 Global determines the appropriate classification of its investments at the time of acquisition and evaluates such determination at each balance sheet date. Trading securities are those investments that the Company intends to sell within a few hours or days and are carried at fair value, with unrealized gains and losses included in investment income. Available-for-sale debt securities are those investments J2 Global does not intend to hold to maturity and can be sold. Available-for-sale securities are carried at fair value with unrealized gains and losses included in other comprehensive income. Held-to-maturity securities are those investments which the Company has the ability and intent to hold until maturity and are recorded at amortized cost. All debt securities are accounted for on a specific identification basis. The Company accounts for its investments in equity securities in accordance with ASC Topic No. 321, Investments - Equity Securities (“ASC 321”) which requires the accounting for equity investments (other than those accounted for using the equity method of accounting) generally be measured at fair value for equity securities with readily determinable fair values. For equity securities without a readily determinable fair value that are not accounted for by the equity method, the Company measures the equity security using cost, less impairment, if any, and plus or minus observable price changes arising from orderly transactions in the same or similar investment from the same issuer. Any unrealized gains or losses will be reported in current earnings (see Note 5 - Investments). (h) Variable Interest Entities (“VIE”) A VIE requires consolidation by the entity’s primary beneficiary. The Company evaluates its investments in entities in which it is involved to determine if the entity is a VIE and if so, whether it holds a variable interest and is the primary beneficiary. The Company has determined that it holds a variable interest in its investment as a limited partner in the OCV Fund I, LP (“OCV Fund”, “OCV” or the “Fund”). In determining whether the Company is deemed to be the primary beneficiary of the VIE, both of the following characteristics must be present: a) the Company has the power to direct the activities of the VIE that most significantly impacts the VIEs economic performance (the power criterion); and b) the Company has the obligation to absorb losses of the VIE, or the right to receive benefits of the VIE, that could potentially be significant to the VIE (the economic criterion). The Company has concluded that, as a limited partner, although the obligations to absorb losses or benefit from the gains is not insignificant, the Company does not have “power” over OCV because it does not have the ability to direct the significant decisions which impact the economics of OCV. J2 believes that the OCV general partner, as a single decision maker, holds the ability to make the decisions about the activities that most significantly impact the OCV Fund’s economic performance. As a result, the Company has concluded that it will not consolidate OCV, as it is not the primary beneficiary of the OCV Fund, and will account for this investment under the equity-method of accounting (see Note 5 - Investments). OCV qualifies as an investment company under ASC 946 - Financial Services, Investment Companies (“ASC 946”). Under ASC Topic 323, Investments - Equity Method and Joint Ventures, an investor that holds investments that qualify for specialized industry accounting for investment companies in accordance with ASC 946 should record its share of the earnings or losses, realized or unrealized, as reported by its equity method investees in the consolidated statements of income. The Company recognizes its equity in the net earnings or losses relating to the investment in OCV on a one-quarter lag due to the timing and availability of financial information from OCV. If the Company becomes aware of a significant decline in value that is other-than-temporary, the loss will be recorded in the period in which the Company identifies the decline. (i) Debt Issuance Costs and Debt Discount J2 Global capitalizes costs incurred with borrowing and issuance of debt securities and records debt issuance costs and discounts as a reduction to the debt amount. These costs and discounts are amortized and included in interest expense over the life of the borrowing using the effective interest method. Debt issuance costs associated with entering into a $200.0 million credit facility (the “MUFG Credit Facility”) with MUFG Union Bank (see Note 10 - Long-Term Debt), a credit facility that was subsequently reduced to $100.0 million , are recorded on the consolidated balance sheets as an asset and amortized and included in interest expense over the contractual term of the credit agreement. (j) Derivative Instruments J2 Global currently holds an embedded derivative instrument related to contingent interest in connection with its 3.25% Convertible Notes issued on June 10, 2014. This embedded derivative instrument is carried at fair value with changes recorded to interest expense (see Note 7 - Fair Value Measurements). (k) Concentration of Credit Risk All of the Company’s cash, cash equivalents and marketable securities are invested at major financial institutions primarily within the United States, United Kingdom and Ireland. These institutions are required to invest the Company’s cash in accordance with the Company’s investment policy with the principal objectives being preservation of capital, fulfillment of liquidity needs and above market returns commensurate with preservation of capital. The Company’s investment policy also requires that investments in marketable securities be in only highly rated instruments, with limitations on investing in securities of any single issuer. However, these investments are not insured against the possibility of a total or near complete loss of earnings or principal and are inherently subject to the credit risk related to the continued credit worthiness of the underlying issuer and general credit market risks. At December 31, 2019 , the Company’s cash and cash equivalents were maintained in accounts in qualifying financial institutions that are insured up to the limit determined by the applicable governmental agency. These institutions are primarily in the United States and United Kingdom, however, the Company has accounts within several other countries including Australia, Austria, China, Denmark, France, Germany, Italy, Japan, New Zealand, Netherlands, Norway, and Sweden. (l) Foreign Currency Some of J2 Global’s foreign subsidiaries use the local currency of their respective countries as their functional currency. Assets and liabilities are translated at exchange rates prevailing at the balance sheet dates. Revenues, costs and expenses are translated into U.S. Dollars at average exchange rates for the period. Gains and losses resulting from translation are recorded as a component of accumulated other comprehensive income/(loss). Net translation (loss)/gain was $(1.6) million , $(15.5) million and $25.6 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Realized gains and losses from foreign currency transactions are recognized within other expense (income), net. Foreign exchange losses amounted to $4.0 million , $2.3 million and $5.8 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. (m) Property and Equipment Property and equipment are stated at cost. Equipment under finance leases is stated at the present value of the minimum lease payments. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. The estimated useful lives of property and equipment range from 1 to 10 years. Fixtures, which are comprised primarily of leasehold improvements and equipment under finance leases, are amortized on a straight-line basis over their estimated useful lives or for leasehold improvements, the related lease term, if less. The Company has capitalized certain internal-use software and website development costs which are included in property and equipment. The estimated useful life of costs capitalized is evaluated for each specific project and ranges from 1 to 5 years. (n) Impairment or Disposal of Long-Lived Assets J2 Global accounts for long-lived assets, which include property and equipment and identifiable intangible assets with finite useful lives (subject to amortization), in accordance with the provisions of FASB ASC Topic No. 360, Property, Plant, and Equipment (“ASC 360”), which requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability is measured by comparing the carrying amount of an asset to the expected undiscounted future net cash flows generated by the asset. If it is determined that the asset may not be recoverable, and if the carrying amount of an asset exceeds its estimated fair value, an impairment charge is recognized to the extent of the difference. J2 Global assessed whether events or changes in circumstances have occurred that potentially indicate the carrying amount of long-lived assets may not be recoverable. No impairment was recorded in fiscal year 2019 , 2018 or 2017 . The Company classifies its long-lived assets to be sold as held for sale in the period (i) it has approved and committed to a plan to sell the asset, (ii) the asset is available for immediate sale in its present condition, (iii) an active program to locate a buyer and other actions required to sell the asset have been initiated, (iv) the sale of the asset is probable, (v) the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value, and (vi) it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. The Company initially measures a long-lived asset that is classified as held for sale at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Conversely, gains are not recognized on the sale of a long-lived asset until the date of sale. Upon designation as an asset held for sale, the Company stops recording depreciation expense on the asset. The Company assesses the fair value of a long-lived asset less any costs to sell at each reporting period and until the asset is no longer classified as held for sale. (o) Business Combinations and Valuation of Goodwill and Intangible Assets J2 Global applies the acquisition method of accounting for business combinations in accordance with GAAP, which requires the Company to make use of estimates and judgments to allocate the purchase price paid for acquisitions to the fair value of the assets, including identifiable intangible assets, and liabilities acquired. Such estimates may be based on significant unobservable inputs and assumptions such as, but not limited to, revenue growth rates, gross margins, customer attrition rates, royalty rates, discount rates and terminal growth rate assumptions. J2 Global uses established valuation techniques and may engage reputable valuation specialists to assist with the valuations. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. Fair values are subject to refinement for up to one year after the closing date of an acquisition as information relative to closing date fair values becomes available. Upon the conclusion of the measurement period, any subsequent adjustments are recorded to earnings. Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in a business combination. Intangible assets resulting from the acquisitions of entities accounted for using the acquisition method of accounting are recorded at the estimated fair value of the assets acquired. Identifiable intangible assets are comprised of purchased customer relationships, trademarks and trade names, developed technologies and other intangible assets. Intangible assets subject to amortization are amortized over the period of estimated economic benefit ranging from 1 to 20 years. In accordance with FASB ASC Topic No. 350, Intangibles - Goodwill and Other (“ASC 350”), goodwill and other intangible assets with indefinite lives are not amortized but tested annually for impairment or more frequently if J2 Global believes indicators of impairment exist. In connection with the annual impairment test for goodwill, the Company has the option to perform a qualitative assessment in determining whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company determines that it was more likely than not that the fair value of the reporting unit is less than its carrying amount, then it performs the impairment test upon goodwill. The impairment test involves comparing the fair values of the applicable reporting units with their aggregate carrying values, including goodwill. The Company generally determines the fair value of its reporting units using the income approach methodology of valuation. If the carrying value of a reporting unit exceeds the reporting unit’s fair value, an impairment loss is recognized for the difference. In accordance with ASC 350, the Company performed the annual impairment test for goodwill for fiscal year 2019 using a qualitative assessment primarily taking into consideration macroeconomic, industry and market conditions, overall financial performance and any other relevant company-specific events. In addition, it performed a quantitative assessment for its data backup reporting unit for which no impairment was found. The Company performed the annual impairment test for intangible assets with indefinite lives for fiscal 2019 using a qualitative assessment primarily taking into consideration macroeconomic, industry and market conditions, overall financial performance and any other relevant company-specific events. J2 Global concluded that there were no impairments in 2019 , 2018 and 2017 . (p) Contingent Consideration J2 Global measures the contingent earn-out liabilities in connection with acquisitions at fair value on a recurring basis using significant unobservable inputs classified within Level 3 of the fair value hierarchy (see Note 7 - Fair Value Measurements). The Company may use various valuation techniques depending on the terms and conditions of the contingent consideration including a Monte-Carlo simulation. This simulation uses a probability distribution for each significant input to produce hundreds or thousands of possible outcomes and the results are analyzed to determine probabilities of different outcomes occurring. Significant increases or decreases to these inputs in isolation would result in a significantly higher or lower liability with a higher liability capped by the contractual maximum of the contingent earn-out obligation. Ultimately, the liability will be equivalent to the amount paid, and the difference between the fair value estimate and amount paid will be recorded in earnings. The amount paid that is less than or equal to the liability on the acquisition date is reflected as cash used in financing activities in our consolidated statements of cash flows. Any amount paid in excess of the liability on the acquisition date is reflected as cash used in operating activities. J2 Global reviews and re-assesses the estimated fair value of contingent consideration on a quarterly basis, and the updated fair value could be materially different from the initial estimates or prior amounts. Changes in the estimated fair value of our contingent earn-out liabilities are reported in operating income. Adjustments to the estimated fair value related to changes in all other unobservable inputs are reported in operating income. (q) Self-Insurance Program J2 Global provides health and dental insurance plans to certain of its employees through a self-insurance structure. The Company has secured reinsurance in the form of a two tiered stop-loss coverage that limits the exposure arising from any claims made. Self-insurance claims filed and claims incurred but not reported are accrued based on management’s estimate of the discounted ultimate costs for self-insured claims incurred using actuarial assumptions followed in the insurance industry and historical experience. Although management believes it has the ability to reasonably estimate losses related to claims, it is possible that actual results could differ from recorded self-insurance liabilities. (r) Income Taxes J2 Global’s income is subject to taxation in both the U.S. and numerous foreign jurisdictions. Significant judgment is required in evaluating the Company’s tax positions and determining its provision for income taxes. During the ordinary course of business, there are many transactions and calculations for which the ultimate tax determination is uncertain. J2 Global establishes reserves for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. These reserves for tax contingencies are established when the Company believes that certain positions might be challenged despite the Company’s belief that its tax return positions are fully supportable. J2 Global adjusts these reserves in light of changing facts and circumstances, such as the outcome of a tax audit or lapse of a statute of limitations. The provision for income taxes includes the impact of reserve provisions and changes to reserves that are considered appropriate. J2 Global accounts for income taxes in accordance with FASB ASC Topic No. 740, Income Taxes (“ASC 740”), which requires that deferred tax assets and liabilities be recognized using enacted tax rates for the effect of temporary differences between the book and tax basis of recorded assets and liabilities. ASC 740 also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some or all of the net deferred tax assets will not be realized. The valuation allowance is reviewed quarterly based upon the facts and circumstances known at the time. In assessing this valuation allowance, J2 Global reviews historical and future expected operating results and other factors, including its recent cumulative earnings experience, expectations of future taxable income by taxing jurisdiction and the carryforward periods available for tax reporting purposes, to determine whether it is more likely than not that deferred tax assets are realizable. ASC 740 provides guidance on the minimum threshold that an uncertain income tax benefit is required to meet before it can be recognized in the financial statements and applies to all income tax positions taken by a company. ASC 740 contains a two-step approach to recognizing and measuring uncertain income tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. If it is not more likely than not that the benefit will be sustained on its technical merits, no benefit will be recorded. Uncertain income tax positions that relate only to timing of when an item is included on a tax return are considered to have met the recognition threshold. J2 Global recognized accrued interest and penalties related to uncertain income tax positions in income tax expense on its consolidated statements of income. (s) Share-Based Compensation J2 Global accounts for share-based awards to employees and non-employees in accordance with the provisions of FASB ASC Topic No. 718, Compensation - Stock Compensation (“ASC 718”). Accordingly, J2 Global measures share-based compensation expense at the grant date, based on the fair value of the award, and recognizes the expense over the employee’s requisite service period using the straight-line method. The measurement of share-based compensation expense is based on several criteria, including but not limited to the valuation model used and associated input factors, such as expected term of the award, stock price volatility, risk free interest rate, dividend rate and award cancellation rate. These inputs are subjective and are determined using management’s judgment. If differences arise between the assumptions used in determining share-based compensation expense and the actual factors, which become known over time, J2 Global may change the input factors used in determining future share-based compensation expense. Any such changes could materially impact the Company’s results of operations in the period in which the changes are made and in periods thereafter. The Company estimates the expected term based upon the historical exercise behavior of our employees. (t) Earnings Per Common Share (“EPS”) EPS is calculated pursuant to the two-class method as defined in ASC Topic No. 260, Earnings per Share (“ASC 260”), which specifies that all outstanding unvested share-based payment awards that contain rights to nonforfeitable dividends or dividend equivalents are considered participating securities and should be included in the computation of EPS pursuant to the two-class method. Basic EPS is calculated by dividing net distributed and undistributed earnings allocated to common shareholders, excluding participating securities, by the weighted-average number of common shares outstanding. The Company’s participating securities consist of its unvested share-based payment awards that contain rights to nonforfeitable dividends or dividend equivalents. Diluted EPS includes the determinants of basic EPS and, in addition, reflects the impact of other potentially dilutive shares outstanding during the period. The dilutive effect of participating securities is calculated under the more dilutive of either the treasury method or the two-class method. (u) Research, Development and Engineering Research, development and engineering costs are expensed as incurred. Costs for software development incurred subsequent to establishing technological feasibility, in the form of a working model, are capitalized and amortized over their estimated useful lives. (v) Segment Reporting FASB ASC Topic No. 280, Segment Reporting (“ASC 280”), establishes standards for the way that public business enterprises report information about operating segments in their annual consolidated financial statements and requires that those enterprises report selected information about operating segments in interim financial reports. ASC 280 also establishes standards for related disclosures about products and services, geographic areas and major customers. The Company’s business segments are based on the organization structure used by the chief operating decision maker for making operating and investment decisions and for assessing performance. The chief operating decision maker views the Company in two businesses: Cloud Services and Digital Media. However, in accordance with the aggregation criteria within ASC Topic 280, J2 Global’s operating segments have been aggregated into three reportable segments: (i) Fax and Martech (formerly Email Marketing); (ii) Voice, Backup, Security, and Consumer Privacy and Protection; and (iii) Digital Media. (w) Advertising Costs Advertising costs are expensed as incurred. Advertising costs for the years ended December 31, 2019 , 2018 and 2017 was $158.2 million , $149.7 million and $143.3 million , respectively. (x) Recent Accounting Pronouncements In February 2016, the FASB issued Accounting Standard Update (“ASU”) No. 2016-02, Leases. This ASU establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. This ASU and all the related amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases. This ASU is meant to clarify the guidance in ASU No. 2016-02, Leases. This ASU does not change the core principle of the guidance in Topic 842. Instead, the amendments provide clarifying guidance in a few narrow areas. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements. This ASU provides another transition method for entities who have not yet adopted the new leasing standard by allowing entities to initially apply the new standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. In addition, this ASU provides a practical expedient to lessors to not separate nonlease components from the associated lease components similar to the expedient that is afforded to lessees. However, the lessor practical expedient is limited to circumstances in which the nonlease component or components otherwise would be accounted for under the new revenue guidance and both (1) the timing and pattern of transfer are the same for the nonlease component(s) and associated lease component and (2) the lease component, if accounted for separately, would be classified as an operating lease. In December 2018, the FASB issued ASU No. 2018-20, Leases (Topic 842): Narrow-Scope Improvements for Lessors. This ASU amends guidance |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenues Digital Media Digital Media revenues are earned primarily from the delivery of advertising services, from subscriptions to services, data and information, and from licensing. Revenue is earned from the delivery of advertising services on the Company’s owned and operated websites and on those websites that are part of Digital Media’s advertising network. Depending on the individual contracts with the customer, revenue for these services are recognized over the contract period when any of the following performance obligations are satisfied: (i) when an advertisement is placed for viewing; (ii) when a qualified sales lead is delivered; (iii) when a visitor “clicks through” on an advertisement; or (iv) when commissions are earned upon the sale of an advertised product. Revenue from subscriptions is earned through the granting of access to, or delivery of, data products or services to customers. Subscriptions cover video games and related content, health information, data and other copyrighted material. Revenues under such agreements are recognized over the contract term for use of the service. Revenues are also earned from listing fees, subscriptions to online publications, and from other sources. Subscription revenues are recognized over time. J2 Global generates Digital Media revenues through the license of certain assets to clients. Assets are licensed for clients’ use in their own promotional materials or otherwise. Such assets may include logos, editorial reviews, or other copyrighted material. Revenues under such license agreements are recognized over the contract term for use of the asset. Technology assets are also licensed to clients. These assets are recognized over the term of the access period. The Digital Media business also generates revenue from other sources which includes marketing and production services. Such other revenues are generally recognized over the period in which the products or services are delivered. Revenues are no longer generated in 2018 from certain marketing and production services as a result of the sale of certain Digital Media assets during 2017. J2 Global also generates Digital Media revenues from transactions involving the sale of perpetual software licenses, related software support and maintenance, hardware used in conjunction with its software, and other related services. Revenue is recognized for these software transactions with multiple performance obligations after (i) the Company has had an approved contract and is committed to perform the respective obligations and (ii) the Company can identify and quantify each obligation and its respective selling price. Once the respective performance obligations have been identified and quantified, revenue will be recognized when the obligations are met, either over time or at a point in time depending on the nature of the obligation. Revenues from software license performance obligations are generally recognized upfront at the point in time that the software is made available to the customer to download and use. Revenues for related software support and maintenance performance obligations are related to technical support provided to customers as needed and unspecified software product upgrades, maintenance releases and patches during the term of the support period when they are available. The Company is obligated to make the support services available continuously throughout the contract period. Therefore, revenues for support contracts are generally recognized ratably over the contractual period the support services are provided. Hardware product and related software performance obligations, such as an operating system or firmware, are highly interdependent and interrelated and are accounted for as a bundled performance obligation. The revenues for this bundled performance obligation are generally recognized at the point in time that the hardware and software products are delivered and ownership is transferred to the customer. Other service revenues are generally recognized over time as the services are performed. The Company records revenue on a gross basis with respect to revenue generated (i) by the Company serving online display and video advertising across its owned and operated web properties, on third-party sites or on unaffiliated advertising networks; (ii) through the Company’s lead-generation business; and (iii) through the Company’s subscriptions. The Company records revenue on a net basis with respect to revenue paid to the Company by certain third-party advertising networks who serve online display and video advertising across the Company’s owned-and-operated web properties and certain third-party sites. Cloud Services The Company’s Cloud Services revenues substantially consist of monthly recurring subscription and usage-based fees, which are primarily paid in advance by credit card. The Company defers the portions of monthly, quarterly, semi-annually and annually recurring subscription and usage-based fees collected in advance of the satisfaction of performance obligations and recognizes them in the period earned. Along with our numerous proprietary Cloud Services solutions, the Company also generates revenues by reselling various third-party solutions, primarily through our security and data backup lines of business. These third-party solutions, along with our proprietary products, allow the Company to offer customers a variety of solutions to better meet their needs. The Company records revenue on a gross basis with respect to reseller revenue because the Company has control of the specified good or service prior to transferring control to the customer. J2 Global’s Cloud Services also include patent license revenues generated under license agreements that provide for the payment of contractually determined fully paid-up or royalty-bearing license fees to J2 Global in exchange for the grant of non-exclusive, retroactive and future licenses to our intellectual property, including patented technology. Patent revenues may also consist of revenues generated from the sale of patents. Patent license arrangements are evaluated to determine if they grant the customer a right to access the Company’s intellectual property which is generally recognized over the life of the arrangement or a right to use the Company’s intellectual property which is generally recognized at the point in time the license is granted. With regard to royalty-bearing license arrangements, the Company recognizes revenues of license fees earned during the applicable period. The Cloud Services business also generates revenues by licensing certain technology to third parties. Generally, revenue is recognized over time as the third party uses the licensed technology over the period. The Company adopted ASU 2014-09 and its related standard updates in January 2018 using a modified-retrospective approach with the cumulative effect of initially applying the standard recognized at the date of application in retained earnings. The change in accounting principle in the first quarter of 2018 resulted in an adjustment to the Company’s retained earnings of $1.6 million (see consolidated statements of stockholders’ equity). Revenues from external customers classified by revenue source are as follows (in thousands): Years ended December 31, Digital Media 2019 2018 2017 Advertising $ 515,702 $ 468,325 $ 455,647 Subscription 185,559 138,689 70,794 Other 9,250 2,360 12,498 Total Digital Media revenues $ 710,511 $ 609,374 $ 538,939 Cloud Services Subscription $ 660,814 $ 597,281 $ 574,197 Other 1,021 694 4,759 Total Cloud Services revenues $ 661,835 $ 597,975 $ 578,956 Corporate $ 8 $ 6 $ — Elimination of inter-business revenues (300 ) (60 ) (57 ) Total Revenues $ 1,372,054 $ 1,207,295 $ 1,117,838 Timing of revenue recognition Point in time $ 32,983 $ 4,752 $ 22,559 Over time 1,339,071 1,202,543 1,095,279 Total $ 1,372,054 $ 1,207,295 $ 1,117,838 The Company has recorded $122.7 million and $80.0 million of revenue for the years ended December 31, 2019 and 2018 , respectively, which was previously included in the contract liability balance as of the beginning of each respective year. As of December 31, 2019 , the Company acquired $28.0 million of deferred revenue in connection with the Company’s business acquisitions (see Note 4 - Business Acquisitions) which are subject to purchase accounting adjustments. Performance Obligations The Company’s contracts with customers may include multiple performance obligations. For such arrangements, revenues are allocated to each performance obligation based on its relative standalone selling price. The Company satisfies its performance obligations within the Digital Media business upon delivery of services to its customers. In addition, the Company provides content to its advertising partners which the Company sells to its partners’ customer base and receives a revenue share based on the terms of the agreement. The Company satisfies its performance obligations within the Cloud Services business upon delivery of services to its customers. Payment terms vary by type and location of our customers and the services offered. The term between invoicing and when payment is due is not significant. Due to the nature of the services provided, there are no obligations for returns. Significant Judgments In determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Judgment is also required to determine the standalone selling price for each distinct performance obligation. Performance Obligations Satisfied Over Time The Company’s Digital Media business consists primarily of performance obligations that are satisfied over time. This was determined based on a review of the contracts and the nature of the services offered, where the customer simultaneously receives and consumes the benefit of the services provided. Satisfaction of these performance obligations is evidenced in the following ways: Advertising • Website reporting by the Company, the customer, or a third-party contains the delivery evidence needed to satisfy the performance obligations within the advertising contract • Successfully delivered leads are evidenced by either delivery reports from the Company’s internal lead management systems or through e-mail communication and/or other evidence of delivery showing acceptance of leads by the customer • Commission is evidenced by direct site reporting from the affiliate or via direct confirmation from the customer Subscription • Evidence of delivery is contained in the Company’s systems or from correspondence with the customer which tracks when a customer accepts delivery of any product, digital keys or download links The Company has concluded revenue is recognized based on delivery of services over the contract period for advertising and on a straight-line basis over the contract period for subscriptions. The Company believes that the methods described are a faithful depiction of the transfer of goods and services. The Company’s Cloud Services business consists primarily of performance obligations that are satisfied over time. This has been determined based on the fact that the nature of services offered are subscription based and include fax, voice, backup, security, CPP, and email marketing products where the customer simultaneously receives and consumes the benefit of the services provided regardless of whether the customer uses the services or not. Depending on the individual contracts with the customer, revenue for these services are recognized over the contract period when any of the following materially distinct performance obligations are satisfied: • Faxing capabilities are provided • Voice services are delivered • Email Marketing services are delivered • Consumer privacy services are provided • Security solutions, including email and endpoint are provided • Online data Backup capabilities are provided The Company has concluded that the best measure of progress toward the complete satisfaction of the performance obligation over time is a time-based measure. The Company recognizes revenue on a straight-line basis throughout the subscription period and believes that the method used is a faithful depiction of the transfer of goods and services. Performance Obligations Satisfied at a Point in Time The Company’s Digital Media business has technology subscriptions that have standalone functionality. As a result, they are considered to be functional intellectual property where the performance obligations are satisfied at a point in time. This is evidenced once a digital key is delivered to the customer. Once the key is delivered to the customer, the customer has full control of the technology and the Company has no further performance obligations. The Company has concluded that revenue is recognized once the digital key is delivered. The Company believes that this method is a faithful depiction of the transfer of goods and services. Practical Expedients Existence of a Significant Financing Component in a Contract As a practical expedient, the Company has not assessed whether a contract has a significant financing component because the Company expects at contract inception that the period between payment by the customer and the transfer of promised goods or services by the Company to the customer will be one year or less. In addition, the Company has determined that the payment terms that the Company provides to its customers are structured primarily for reasons other than the provision of finance to the Company. The Company typically charges a single upfront amount for the services because other payment terms would affect the nature of the risk assumed by the Company to provide service given the costs of the customer acquisition and the highly competitive and commoditized nature of the business we operate which allows customers to easily move from one provider to another. This additional risk may make it uneconomical to provide the service. Costs to Fulfill a Contract The Company’s revenues are primarily generated from customer contracts that are for one year or less. Costs primarily consist of incentive compensation paid based on the achievements of sales targets in a given period for related revenue streams and are recognized in the month when the revenue is earned. Incentive compensation is paid on the issuance or renewal of the customer contract. As a practical expedient, for amortization periods which are determined to be one year or less, the Company expenses any incremental costs of obtaining the contract with a customer when incurred. For those customers with amortization periods determined to be greater than one year, the Company capitalizes and amortizes the expenses over the period of benefit. Revenues Invoiced The Company has applied the practical expedient for certain revenue streams to exclude the value of remaining performance obligations for (i) contracts with an original expected term of one year or less or (ii) contracts for which the Company recognizes revenue in proportion to the amount it has the right to invoice for services performed. |
Business Acquisition
Business Acquisition | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Business Acquisition | Business Acquisitions The Company uses acquisitions as a strategy to grow its customer base by increasing its presence in new and existing markets, expand and diversify its service offerings, enhance its technology, and acquire skilled personnel. The Company completed the following acquisitions during the year ended December 31, 2019 , paying the purchase price with a combination of cash and note payable: (a) an asset purchase of iContact, LLC, acquired on January 22, 2019, a North Carolina-based provider of email marketing solutions; (b) a share purchase of the entire issued capital of Safe Send AS, acquired on March 29, 2019, a Norwegian-based provider of email security solutions; (c) a share purchase of the entire issued capital of Highwinds Capital, Inc. and Cloak Holdings, LLC, acquired on April 2, 2019, a Texas-based provider in solutions for virtual private network (“VPN”) services; (d) an asset purchase of OffsiteDataSync, Inc., acquired on July 1, 2019, a New York-based provider in backup and disaster recovery solutions; (e) an asset and a share purchase of the entire issued capital of BabyCenter LLC., acquired on August 19, 2019, a California-based provider in digital parenting and pregnancy resources; (f) a share purchase of the entire issued capital of Spiceworks, Inc., acquired on August 21, 2019, a Texas-based provider in digital media advertising solutions; and (g) other immaterial acquisitions of online data backup, consumer privacy and protection, and digital media businesses. The consolidated statement of income since the date of each acquisition and balance sheet as of December 31, 2019 , reflect the results of operations of all 2019 acquisitions. For the year ended December 31, 2019 , these acquisitions contributed $126.3 million to the Company’s revenues. Net income contributed by these acquisitions was not separately identifiable due to J2 Global’s integration activities and is impracticable to provide. Total consideration for these transactions was $429.5 million , net of cash acquired and assumed liabilities and subject to certain post-closing adjustments which may increase or decrease the final consideration paid. The following table summarizes the allocation of the purchase consideration for all 2019 acquisitions (in thousands): Assets and Liabilities Valuation Accounts receivable $ 22,796 Prepaid expenses and other current assets 4,528 Property and equipment 4,625 Operating lease right of use asset 4,982 Trade names 10,773 Customer relationships 123,611 Goodwill 253,096 Trademarks 32,540 Other intangibles 48,446 Other long-term assets 660 Accounts payables and accrued expenses (31,292 ) Other current liabilities (516 ) Deferred revenue (27,953 ) Operating lease liabilities, current (1,768 ) Operating lease liabilities, noncurrent (3,215 ) Income taxes payable (762 ) Liability for uncertain tax positions (170 ) Deferred tax liability (10,229 ) Other long-term liabilities (635 ) Total $ 429,517 During 2019 , the purchase price accounting has been finalized for the following acquisitions: (i) Mosaik Solutions, LLC; (ii) DemandShore Solutions Private Limited; (iii) DW PRIME Holdings, Inc.; (iv) The Communicator Corporation Limited; (v) Ekahau Inc.; (vi) iContact, LLC; (vii) Safe Send AS; and (viii) other immaterial backup and digital media businesses. The initial accounting for all other 2019 acquisitions is incomplete and subject to change, which may be significant. J2 Global has recorded provisional amounts which may be based upon past acquisitions with similar attributes for certain intangible assets (including trade names, software and customer relationships), preliminary acquisition date working capital and related tax items. During the year ended December 31, 2019 , the Company recorded adjustments to prior period acquisitions due to the finalization of the purchase accounting in the Fax and Martech business which resulted in a net increase in goodwill of $0.2 million . In addition, the Company recorded adjustments to the initial working capital and to the purchase accounting due to the finalization of prior period acquisitions in the Digital Media business, which resulted in a net decrease in goodwill of $0.9 million (see Note 9 - Goodwill and Intangible Assets). Such adjustments had an immaterial impact to amortization expense within the consolidated statement of income for the year ended December 31, 2019 . Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired and represents intangible assets that do not qualify for separate recognition. Goodwill recognized in connection with these acquisitions during the year ended December 31, 2019 is $253.1 million , of which $95.1 million is expected to be deductible for income tax purposes. Pro Forma Financial Information for All 2019 Acquisitions The following unaudited pro forma supplemental information is based on estimates and assumptions that J2 Global believes are reasonable. However, this information is not necessarily indicative of the Company’s consolidated results of income in future periods or the results that actually would have been realized had J2 Global and the acquired businesses been combined companies during the periods presented. These pro forma results exclude any savings or synergies that would have resulted from these business acquisitions had they occurred on January 1, 2018. This unaudited pro forma supplemental information includes incremental intangible asset amortization and other charges as a result of the acquisitions, net of the related tax effects. The supplemental information on an unaudited pro forma financial basis presents the combined results of J2 Global and its 2019 acquisitions as if each acquisition had occurred on January 1, 2018 (in thousands, except per share amounts): Year ended December 31, 2019 December 31, 2018 (unaudited) (unaudited) Revenues $ 1,474,132 $ 1,427,914 Net income $ 211,303 $ 104,710 EPS - Basic $ 4.36 $ 2.15 EPS - Diluted $ 4.24 $ 2.11 2018 The Company completed the following acquisitions during the year ended December 31, 2018 , paying the purchase price in cash in each transaction: (a) a share purchase of the entire issued capital of ThreatTrack Security Holdings, Inc., acquired on January 26, 2018, a Florida-based provider of cybersecurity solutions; (b) an asset purchase of Line2, Inc., acquired on June 18, 2018, a California-based provider of voice solutions; (c) a share purchase of all the membership interests of Mosaik Solutions, LLC, acquired on June 18, 2018, a Tennessee-based provider of mobile coverage data and network intelligence for mobile operators and network-dependent enterprises; (d) a share purchase of DemandShore Solutions Private Limited, acquired on July 19, 2018, an India-based provider of software and other solutions to sales and marketing professionals; (e) a share purchase of DW PRIME Holdings, Inc., acquired on August 20, 2018, a Florida-based accredited provider of continuing medical education for medical professionals; (f) a share purchase of The Communicator Corporation Limited, acquired on September 25, 2018, an United Kingdom-based provider of email marketing services; (g) a share purchase of Ekahau Inc., acquired on October 10, 2018, a Virginia-based provider of solutions for enterprise Wi-Fi network design, troubleshooting, and optimization; and (h) other immaterial acquisitions of digital health and data analysis businesses. The consolidated statement of income since the date of each acquisition and balance sheet as of December 31, 2018 , reflect the results of operations of all 2018 acquisitions. For the year ended December 31, 2018 , these acquisitions contributed $56.2 million to the Company’s revenues. Net income contributed by these acquisitions was not separately identifiable due to J2 Global’s integration activities and is impracticable to provide. Total consideration for these transactions was $324.7 million , net of cash acquired and assumed liabilities and subject to certain post-closing adjustments which may increase or decrease the final consideration paid. The following table summarizes the allocation of the purchase consideration for all 2018 acquisitions (in thousands): Assets and Liabilities Valuation Cash (1) $ 15,532 Accounts receivable 11,321 Prepaid expenses and other current assets 3,480 Property and equipment 4,755 Trade names 33,750 Customer relationships 66,516 Goodwill 194,282 Trademarks 3,285 Other intangibles 84,907 Other long-term assets 341 Deferred tax asset 821 Accounts payables and accrued expenses (10,864 ) Deferred revenue (37,113 ) Finance lease (956 ) Income taxes payable (1,458 ) Deferred tax liability (22,990 ) Other long-term liabilities (5,410 ) Total $ 340,199 (1) Cash contains an immaterial amount of restricted cash associated with a pre-acquisition relationship with a vendor. The entire balance has been released during the third quarter of 2018. During the year ended December 31, 2018 , the Company recorded adjustments to prior period acquisitions due to the finalization of the purchase accounting in the Voice, Backup, Security and CPP business (CPP established in 2019) which resulted in a net decrease in goodwill of $1.0 million . In addition, the Company recorded adjustments to the initial working capital related to prior period acquisitions in the Digital Media business, which resulted in a net increase in goodwill of $0.2 million (see Note 9 - Goodwill and Intangible Assets). Such adjustments had an immaterial impact to amortization expense within the consolidated statement of income for the year ended December 31, 2018 . Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired and represents intangible assets that do not qualify for separate recognition. Goodwill recognized in connection with these acquisitions during the year ended December 31, 2018 is $194.3 million , of which $38.3 million is expected to be deductible for income tax purposes. Pro Forma Financial Information for All 2018 Acquisitions The following unaudited pro forma supplemental information is based on estimates and assumptions, that J2 Global believes are reasonable. However, this information is not necessarily indicative of the Company’s consolidated results of income in future periods or the results that actually would have been realized had J2 Global and the acquired businesses been combined companies during the periods presented. These pro forma results exclude any savings or synergies that would have resulted from these business acquisitions had they occurred on January 1, 2017 and do not take into consideration the exiting of any acquired lines of business. During 2017, the Company sold Cambridge BioMarketing Group, LLC (“Cambridge”), a subsidiary within the Digital Media business; j2 Australia Hosting Pty Ltd (dba “Web24”), a subsidiary within the Cloud Services business; and Tea Leaves, a subsidiary within the Digital Media business. These divestitures represented $22.7 million of revenue within the 2017 fiscal year. This unaudited pro forma supplemental information includes incremental intangible asset amortization and other charges as a result of the acquisitions, net of the related tax effects. The supplemental information on an unaudited pro forma financial basis presents the combined results of J2 Global and its 2018 acquisitions as if each acquisition had occurred on January 1, 2017 (in thousands, except per share amounts): Year ended December 31, 2018 December 31, 2017 (unaudited) (unaudited) Revenues $ 1,264,544 $ 1,218,530 Net income $ 121,727 $ 123,378 EPS - Basic $ 2.50 $ 2.56 EPS - Diluted $ 2.45 $ 2.50 2017 The Company completed the following acquisitions during the year ended December 31, 2017 , paying the purchase price in cash for each transaction: (a) an asset purchase of sFax, acquired on March 31, 2017, an Austin-based provider of mobile cloud faxing for health care; (b) a share purchase of the entire issued capital of WeCloud AB, acquired on June 12, 2017, a Swedish-based provider of cloud-based internet security services; (c) an asset purchase of MyPhoneFax.com, acquired on June 30, 2017, a provider of online fax services; (d) an asset purchase of EZ Publishing (dba “StreamSend”), acquired on August 22, 2017, a provider of email marketing solutions; (e) a share purchase of all the issued capital of Humble Bundle Inc., acquired on October 13, 2017, a digital storefront for video games based in California; (f) an asset purchase of blackfriday.com, acquired on November 7, 2017, an online solution that markets popular Black Friday ads that are centrally located connecting shoppers with retailers; (g) a share purchase of all the issued capital of OnTargetJobs, Inc., acquired on December 4, 2017, a provider of online recruitment solutions for job seekers and employers in North America; (h) a share purchase of all the issued capital of Mashable Inc., acquired on December 5, 2017, a global, multi-platform media and entertainment company providing tech, digital culture and entertainment content around the globe; and (i) other immaterial acquisitions of online data backup, email marketing and email security businesses. The consolidated statement of income since the date of each acquisition and balance sheet, as of December 31, 2017 , reflect the results of operations of all 2017 acquisitions. For the year ended December 31, 2017 , these acquisitions contributed $34.7 million to the Company’s revenues. Net income contributed by these acquisitions was not separately identifiable due to J2 Global’s integration activities and is impracticable to provide. Total consideration for these transactions was $203.9 million , net of cash acquired and assumed liabilities and subject to certain post-closing adjustments which may increase or decrease the final consideration paid. The following table summarizes the allocation of the purchase consideration for all 2017 acquisitions (in thousands): Assets and Liabilities Valuation Accounts receivable $ 14,130 Prepaid expenses and other current assets 10,243 Property and equipment 6,411 Trade names 20,610 Customer relationships 61,307 Goodwill 121,827 Trademarks 1,373 Other intangibles 36,998 Deferred tax asset 405 Accounts payables and accrued expenses (27,995 ) Deferred revenue (11,853 ) Deferred tax liability (29,534 ) Total $ 203,922 During the year ended December 31, 2017 , the Company recorded adjustments to prior period acquisitions primarily due to the finalization of the purchase accounting in the Fax and Martech business as well as the Voice, Backup, Security and CPP business (CPP established in 2019) which resulted in net decreases in goodwill of $0.7 million and $25.0 thousand , respectively. In addition, the Company recorded adjustments to the initial working capital related to prior period acquisitions in the Digital Media business, which resulted in a net decrease in goodwill in the amount of $4.7 million . Such adjustments had an immaterial impact to amortization expense within the consolidated statement of income for the year ended December 31, 2017 . Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired and represents intangible assets that do not qualify for separate recognition. Goodwill recognized in connection with these acquisitions during the year ended December 31, 2017 is $121.8 million , of which $34.7 million is expected to be deductible for income tax purposes. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2019 | |
Investments [Abstract] | |
Investments | Investments Investments consist of equity and debt securities. The following table summarizes the gross unrealized losses and estimated fair values for the Company’s securities without a readily determinable fair value (in thousands): Cost Impairment Adjustments Reported Amount December 31, 2019 Equity securities $ 34,977 $ (4,164 ) $ (3,678 ) $ 27,135 Total $ 34,977 $ (4,164 ) $ (3,678 ) $ 27,135 December 31, 2018 Equity securities $ 34,977 $ — $ (3,678 ) $ 31,299 Total $ 34,977 $ — $ (3,678 ) $ 31,299 During the year ended December 31, 2019 , the Company recorded a $4.2 million impairment loss related to a portion of its equity securities without a readily determinable fair market value which is reflected in other expense (income), net in the consolidated statements of operations. During the year ended December 31, 2018 , the Company recorded an unrealized loss to earnings because an observable price for a similar instrument was observed in the market at an amount that was below the original carrying price of the investment. The following table summarizes the gross unrealized gains and losses and fair values for investments classified as available-for-sale (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2019 Corporate debt securities $ 23,256 $ 112 $ (698 ) $ 22,670 Total $ 23,256 $ 112 $ (698 ) $ 22,670 December 31, 2018 Corporate debt securities $ 23,256 $ 21 $ (1,899 ) $ 21,378 Total $ 23,256 $ 21 $ (1,899 ) $ 21,378 At December 31, 2019 , the Company’s available-for-sale debt securities are carried at fair value, with the unrealized gains and losses reported as a component of other comprehensive income. The following table summarizes J2 Global’s corporate debt securities designated as available-for-sale, classified by the contractual maturity date of the security (in thousands): December 31, 2019 December 31, 2018 Due within 1 year $ — $ — Due within more than 1 year but less than 5 years 22,670 21,378 Due within more than 5 years but less than 10 years — — Due 10 years or after — — Total $ 22,670 $ 21,378 Recognition and Measurement of Other-Than-Temporary Impairment of Debt Securities Regardless of the classification of the debt securities as available-for-sale or held-to-maturity, the Company has assessed each position for impairment. J2 Global regularly reviews and evaluates each investment that has an unrealized loss. An unrealized loss exists when the current fair value of an individual security is less than its amortized cost basis. Unrealized losses that are determined to be temporary in nature are recorded, net of tax, in accumulated other comprehensive income for available-for-sale securities. Factors considered in determining whether a loss is temporary include: • the length of time and the extent to which fair value has been below cost; • the severity of the impairment; • the cause of the impairment and the financial condition and near-term prospects of the issuer; • activity in the market of the issuer which may indicate adverse credit conditions; and • the Company’s ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery. J2 Global’s review for impairment generally entails: • identification and evaluation of investments that have indications of possible impairment; • analysis of individual investments that have fair values less than amortized cost, including consideration of the length of time the investment has been in an unrealized loss position and the expected recovery period; • discussion of evidential matter, including an evaluation of factors or triggers that could cause individual investments to qualify as having an other-than-temporary impairment and those that would not support an other-than-temporary impairment; • documentation of the results of these analyses, as required under business policies; and • information provided by third-party valuation experts. For these debt securities, a critical component of the evaluation for other-than-temporary impairments is the identification of credit impairment, where management does not expect to receive cash flows sufficient to recover the entire amortized cost basis of the security. Credit impairment is assessed using a combination of a discounted cash flow model that estimates the cash flows on the underlying securities and a market comparable method, where the security is valued based upon indications from the secondary market of what discounts buyers demand when purchasing similar securities. The cash flow model incorporates actual cash flows from the securities through the current period and then projects the remaining cash flows using relevant interest rate curves over the remaining term. These cash flows are discounted using a number of assumptions, some of which include prevailing implied credit risk premiums, incremental credit spreads and illiquidity risk premiums, among others. Securities that have been identified as other-than-temporarily impaired are written down to their current fair value. For debt securities that are intended to be sold or that management believes it more-likely-than-not that it will be required to sell prior to recovery, the full impairment is recognized immediately in earnings. For available-for-sale and held-to-maturity debt securities that management has no intent to sell and believes that it more-likely-than-not that it will not be required to sell prior to recovery, only the credit loss component of the impairment is recognized in earnings, while the rest of the fair value impairment is recognized in other comprehensive income. The credit loss component recognized in earnings is identified as the amount of principal cash flows not expected to be received over the remaining term of the security. The following tables present gross unrealized losses and fair values for those investments that were in an unrealized loss position as of December 31, 2019 and 2018 , aggregated by investment category and the length of time that individual securities have been in a continuous loss position (in thousands): As of December 31, 2019 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Corporate debt securities $ — $ — $ 22,047 $ (698 ) $ 22,047 $ (698 ) Total $ — $ — $ 22,047 $ (698 ) $ 22,047 $ (698 ) As of December 31, 2018 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Corporate debt securities $ 20,846 $ (1,899 ) $ — $ — $ 20,846 $ (1,899 ) Total $ 20,846 $ (1,899 ) $ — $ — $ 20,846 $ (1,899 ) As of December 31, 2019 , 2018 and 2017 , the Company did not recognize any other-than-temporary impairment losses on its debt securities. On September 25, 2017 , the Company entered into a commitment to invest $200 million (approximately 66.7% of equity) in the OCV Fund. The total expected commitment to the OCV Fund is expected to be approximately $300 million . The primary purpose of the Fund is to provide a limited number of select investors with the opportunity to realize long-term appreciation from public and private companies, with a particular focus on the technology and life science industries. The general activities of the OCV Fund is to buy, sell, hold and otherwise invest in securities of every kind and nature and rights and options with respect thereto, including, without limitation, stock, notes, bonds, debentures and evidence of indebtedness; to exercise all rights, powers, privileges and other incidents of ownership or possession with respect to securities held or owned by the OCV Fund; to enter into, make and perform all contracts and other undertakings; and to engage in all activities and transactions as may be necessary, advisable or desirable to carry out the foregoing. The manager, OCV Management, LLC, and general partner of the Fund are entities with respect to which Richard S. Ressler, Chairman of the Board of Directors (the “Board”) of the Company, is indirectly the majority equity holder and a related party. As a limited partner in the Fund, the Company will pay an annual management fee to the manager equal to 2.0% (reduced by 10% each year beginning with the sixth year) of capital commitments. In addition, subject to the terms and conditions of the Fund’s limited partnership agreement, once the Company has received distributions equal to its invested capital, the Fund’s general partner would be entitled to a carried interest equal to 20% . The Fund has a six year investment period, subject to certain exceptions. The commitment was approved by the Audit Committee of the Board in accordance with the Company’s related-party transaction approval policy. During 2019 , the Company received capital call notices from the management of OCV Management, LLC for $29.6 million inclusive of certain management fees, of which $29.6 million has been paid for the year ended December 31, 2019 . During 2019, the Company received a distribution from OCV of $10.3 million . During 2018 , the Company received capital call notices from the management of OCV Management, LLC for $36.8 million inclusive of certain management fees, of which $36.8 million has been paid for the year ended December 31, 2018 . The Company recognizes its equity in the net earnings or losses relating to the investment in OCV on a one-quarter lag due to the timing and availability of financial information from OCV. If the Company becomes aware of a significant decline in value that is other-than-temporary, the loss will be recorded in the period in which the Company identifies the decline. During the years ended December 31, 2019 , 2018 , and 2017 the Company recognized a net investment loss of $0.2 million , $4.1 million , and zero , net of tax benefit, respectively, inclusive of management fees. The loss is presented in the Company’s consolidated statement of income as loss from equity investments, net. During the years ended December 31, 2019 , 2018 , and 2017 the Company recognized management fees of $3.0 million , $4.5 million , and zero , net of tax benefit, respectively. The following table discloses the carrying amount for the Company’s equity method investment (in thousands): December 31, 2019 December 31, 2018 Equity securities $ 50,274 $ 31,151 Maximum exposure to loss $ 50,274 $ 31,151 As a limited partner, the Company’s maximum exposure to loss is limited to its proportional ownership in the partnership. In addition, the Company is not required to contribute capital in an aggregate amount in excess of its capital commitment and any expected losses will not be in excess of the Capital Account. Finally, there are no call or put options, or other types of arrangements, which limit the Company’s ability to participate in losses and returns of the Fund. |
Assets Held for Sale and Subseq
Assets Held for Sale and Subsequently Disposed | 12 Months Ended |
Dec. 31, 2019 | |
Assets held for sale [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Assets Held for Sale and Subsequently Disposed During the second quarter 2017, the Company committed to a plan to sell Cambridge BioMarketing Group, LLC (“Cambridge”), a subsidiary within the Digital Media business, as it was determined to be a non-core asset. On July 12, 2017, in a cash transaction, the Company sold Cambridge for a loss of $0.9 million which was recorded in other expense (income), net. During the third quarter 2017, the Company committed to a plan to sell j2 Australia Hosting Pty Ltd (dba “Web24”), a subsidiary within the Cloud Services business, as it was determined to be a non-core asset. On September 1, 2017, in a cash transaction, the Company sold Web24 for a gain of $1.6 million which was recorded in other expense (income), net. During the third quarter 2017, the Company committed to a plan to sell Tea Leaves, a subsidiary within the Digital Media business, as it was determined to be a non-core asset. On October 5, 2017, in a transaction consisting of a combination of cash and various equity securities, the Company sold Tea Leaves for a gain of $27.0 million |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements J2 Global complies with the provisions of ASC 820, which defines fair value, provides a framework for measuring fair value and expands the disclosures required for fair value measurements of financial and non-financial assets and liabilities. ASC 820 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, ASC 820 establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: § Level 1 – Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. § Level 2 – Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. § Level 3 – Unobservable inputs which are supported by little or no market activity. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company’s money market funds are classified within Level 1. The Company values these Level 1 investments using quoted market prices. Certain of the Company’s debt securities are classified within Level 2. The Company values these Level 2 investments based on model-driven valuations using significant inputs derived from or corroborated by observable market data. The fair value of our senior notes is determined using quoted market prices or dealer quotes for instruments with similar maturities and other terms and credit ratings, which are Level 2 inputs. The fair value of the MUFG Credit Facility approximates its carrying amount due to its variable interest rate, which approximates a market interest rate, and is considered a Level 2 input. The fair value of long-term debt was $1.8 billion and $1.1 billion , at December 31, 2019 and December 31, 2018 , respectively (see Note 10 - Long-Term Debt). In addition, the 3.25% Convertible Notes contain terms that may require the Company to pay contingent interest on the 3.25% Convertible Notes which is accounted for as a derivative with fair value adjustments being recorded to interest expense (see Note 10 - Long Term Debt). The fair value of this derivative is determined using a binomial lattice convertible bond pricing model using historical and implied market information, which are Level 2 inputs. In the second quarter of 2019, the Company entered into a $5.5 million note payable that was short-term in nature and associated with the quarter’s acquisition activity. In the third quarter of 2019, the Company paid down $5.1 million of the outstanding note. As of December 31, 2019 , the carrying value of the note payable approximates fair value and is classified within Level 2. The Company classifies its contingent consideration liability in connection with acquisitions within Level 3 because factors used to develop the estimated fair value are unobservable inputs, such as volatility and market risks, and are not supported by market activity. The fair value of the contingent consideration liability was determined using option based approaches. This methodology was utilized because the distribution of payments is not symmetric and amounts are only payable upon certain earnings before interest, tax, depreciation and amortization (“EBITDA”) and certain other thresholds being reached. Such valuation approach included a Monte-Carlo simulation for the contingency since the financial metric driving the payments is path dependent. For similar reasons, certain of the Company’s available-for-sale debt securities are classified within Level 3. The fair value of these debt securities was derived using a hybrid approach consisting of two scenarios and subsequent allocation among each of the outstanding securities. Both scenarios consider unobservable inputs in the market such as time to liquidity, volatility, dividend yield, and breakpoints. Significant increases or decreases in either of the inputs noted above in isolation would result in a significantly lower or higher fair value measurement. The following tables present the fair values of the Company’s financial assets or liabilities that are measured at fair value on a recurring basis (in thousands): December 31, 2019 Level 1 Level 2 Level 3 Fair Value Assets: Cash equivalents: Money market and other funds $ 395,664 $ — $ — $ 395,664 Corporate debt securities — 623 22,047 22,670 Total assets measured at fair value $ 395,664 $ 623 $ 22,047 $ 418,334 Liabilities: Contingent consideration $ — $ — $ 37,887 $ 37,887 Total liabilities measured at fair value $ — $ — $ 37,887 $ 37,887 December 31, 2018 Level 1 Level 2 Level 3 Fair Value Assets: Cash equivalents: Money market and other funds $ 450 $ — $ — $ 450 Corporate debt securities — 532 20,846 21,378 Total assets measured at fair value $ 450 $ 532 $ 20,846 $ 21,828 Liabilities: Contingent consideration $ — $ — $ 50,035 $ 50,035 Contingent interest derivative — 768 — 768 Total liabilities measured at fair value $ — $ 768 $ 50,035 $ 50,803 At the end of each reporting period, management reviews the inputs to the fair value measurements of financial and non-financial assets and liabilities to determine when transfers between levels are deemed to have occurred. For the year ended December 31, 2019 , there were no transfers that occurred between levels. For the year ended December 31, 2018 , $20.8 million of the Company’s debt securities were transferred from Level 2 investments to Level 3. The following table presents a reconciliation of the Company’s derivative instruments (in thousands): Amount Affected line item in the Statement of Income Derivative Liabilities: Level 2: Balance as of January 1, 2018 $ 768 Total fair value adjustments reported in earnings — Interest expense, net Balance as of December 31, 2018 $ 768 Total fair value adjustments reported in earnings (768 ) Interest expense, net Balance as of December 31, 2019 $ — The following tables presents a reconciliation of the Company’s Level 3 financial liabilities related to contingent consideration that are measured at fair value on a recurring basis (in thousands): Level 3 Affected line item in the Statement of Income Balance as of January 1, 2018 $ 20,477 Contingent consideration 11,391 Total fair value adjustments reported in earnings 18,944 General and administrative Contingent consideration payments (777 ) Not Applicable Balance as of December 31, 2018 $ 50,035 Contingent consideration 5,079 Total fair value adjustments reported in earnings 6,318 General and administrative Contingent consideration payments (23,545 ) Not Applicable Balance as of December 31, 2019 $ 37,887 In connection with the acquisition of Humble Bundle, on October 13, 2017, contingent consideration of up to an aggregate of $40.0 million may be payable upon achieving certain future EBITDA thresholds and had a fair value of $20.0 million and $40.0 million at December 31, 2019 and December 31, 2018 , respectively. Due to the Company’s achievement of certain EBITDA targets for the year ended December 31, 2018 and the amended contingent consideration agreement, $20.0 million was paid in the second quarter of 2019 and an additional $20.0 million remains payable and is classified as a current liability on the consolidated balance sheet. In connection with the acquisition of Ekahau Inc., on October 10, 2018, contingent consideration of up to an aggregate of $15.0 million may be payable upon achieving certain future revenue thresholds and had a fair value of $9.1 million and $3.7 million at December 31, 2019 and December 31, 2018 , respectively. In connection with the Company’s other acquisition activity, contingent consideration of up to $15.9 million may be payable upon achieving certain future EBITDA, revenue, and/or unique visitor thresholds and had a combined fair value of $8.8 million and $6.3 million at December 31, 2019 and December 31, 2018 , respectively. Due to the achievement of certain thresholds, $3.6 million was paid during the year ended December 31, 2019 . In the third quarter of 2019, $0.3 million was no longer considered contingent in connection with a prior year acquisition. As a result, the amount was removed from contingent consideration and reclassified to accrued expenses on the consolidated balance sheet. During the year ended December 31, 2019 , the Company recorded a net increase in the fair value of the contingent consideration of $6.3 million and reported such increase in general and administrative expenses. The following tables presents a reconciliation of the Company’s Level 3 financial assets related to certain available-for-sale debt securities that are measured at fair value on a recurring basis (in thousands): Level 3 Balance as of January 1, 2018 $ — Transfer in to Level 3 20,846 Balance as of December 31, 2018 $ 20,846 Total fair value adjustments reported in other comprehensive income 1,201 Balance as of December 31, 2019 $ 22,047 |
Property And Equipment
Property And Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property And Equipment [Abstract] | |
Property And Equipment | Property and Equipment Property and equipment, stated at cost, at December 31, 2019 and 2018 consisted of the following (in thousands): 2019 2018 Computers and related equipment $ 334,768 $ 272,067 Furniture and equipment 1,977 2,391 Leasehold improvements 17,374 14,706 354,119 289,164 Less: Accumulated depreciation and amortization (226,302 ) (190,351 ) Total property and equipment, net $ 127,817 $ 98,813 Depreciation and amortization expense was $51.4 million , $41.3 million and $33.0 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Total disposals of long-lived assets for the years ended December 31, 2019 , 2018 and 2017 were $0.3 million , $0.4 million and $4.0 million , respectively. The disposals during 2017 were primarily related to the sale of Cambridge, Web24, and Tea Leaves (see Note 6 - Assets Held for Sale and Subsequently Disposed). |
Goodwill And Intangible Assets
Goodwill And Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Intangible Assets | Goodwill and Intangible Assets Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in a business combination. Intangible assets resulting from the acquisitions of entities accounted for using the acquisition method of accounting are recorded at the estimated fair value of the assets acquired. Identifiable intangible assets are comprised of purchased customer relationships, trademarks and trade names, developed technologies and other intangible assets. The fair values of these identified intangible assets are based upon expected future cash flows or income, which take into consideration certain assumptions such as customer turnover, trade names and patent lives. These determinations are primarily based upon the Company’s historical experience and expected benefit of each intangible asset. If it is determined that such assumptions are not accurate, then the resulting change will impact the fair value of the intangible asset. Identifiable intangible assets are amortized over the period of estimated economic benefit, which ranges from one to 20 years. During 2018, the Company separated certain reporting units held within the Cloud Services business (See Note 18 - Segment Information). As a result, the Company allocated goodwill to its new reporting units using a relative fair value approach. Further, the Company completed an assessment of any potential goodwill impairment for all reporting units immediately before and after the reallocation and determined no impairment existed. The changes in carrying amounts of goodwill for the years ended December 31, 2019 and 2018 are as follows (in thousands): Fax and Martech Voice, Backup, Security and CPP Total Cloud Services Digital Media Consolidated Balance as of January 1, 2018 $ 346,814 $ 256,939 $ 603,753 $ 592,858 $ 1,196,611 Goodwill acquired (Note 4) 5,561 67,817 73,378 120,904 194,282 Purchase Accounting Adjustments (1) — (1,014 ) (1,014 ) 240 (774 ) Foreign exchange translation (2,146 ) (6,983 ) (9,129 ) (614 ) (9,743 ) Allocation to new reportable segments 16,041 (16,041 ) — — — Balance as of December 31, 2018 $ 366,270 $ 300,718 $ 666,988 $ 713,388 $ 1,380,376 Goodwill acquired (Note 4) 31,672 179,293 210,965 42,131 253,096 Purchase accounting adjustments (1) 177 — 177 (858 ) (681 ) Foreign exchange translation (331 ) 73 (258 ) 500 242 Balance as of December 31, 2019 $ 397,788 $ 480,084 $ 877,872 $ 755,161 $ 1,633,033 (1) Purchase accounting adjustments relate to adjustments to goodwill in connection with prior year business acquisitions (see Note 4 - Business Acquisitions). Intangible assets are summarized as of December 31, 2019 and 2018 as follows (in thousands): Intangible Assets with Indefinite Lives: 2019 2018 Trade names $ 27,379 $ 27,379 Other 4,306 4,306 Total $ 31,685 $ 31,685 Intangible Assets Subject to Amortization: As of December 31, 2019 , intangible assets subject to amortization relate primarily to the following (in thousands): Weighted-Average Amortization Period Historical Cost Accumulated Amortization Net Trade names 10.2 years $ 193,202 $ 82,552 $ 110,650 Patent and patent licenses 6.5 years 67,921 63,143 4,778 Customer relationships (1) 8.5 years 630,730 392,228 238,502 Other purchased intangibles 4.3 years 383,195 212,257 170,938 Total $ 1,275,048 $ 750,180 $ 524,868 (1) Historically, the Company has amortized its customer relationship assets in a pattern that best reflects the pace in which the assets’ benefits are consumed. This pattern results in a substantial majority of the amortization expense being recognized in the first four to five years, despite the overall life of the asset. As of December 31, 2018 , intangible assets subject to amortization relate primarily to the following (in thousands): Weighted-Average Amortization Period Historical Cost Accumulated Amortization Net Trade names 10.9 years $ 181,231 $ 65,722 $ 115,509 Patent and patent licenses 6.5 years 67,887 60,541 7,346 Customer relationships (1) 9.1 years 507,330 316,122 191,208 Other purchased intangibles 4.4 years 307,554 126,834 180,720 Total $ 1,064,002 $ 569,219 $ 494,783 (1) Historically, the Company has amortized its customer relationship assets in a pattern that best reflects the pace in which the assets’ benefits are consumed. This pattern results in a substantial majority of the amortization expense being recognized in the first four to five years, despite the overall life of the asset. During the year ended December 31, 2019 , the Company completed acquisitions which were individually immaterial. The identified intangible assets recognized as part of these acquisition and their respective estimated weighted average amortizations were as follows (in thousands): Weighted-Average Amortization Period Fair Value Trade names 8.0 years $ 10,773 Customer relationships 7.1 years 123,611 Trademark 6.2 years 32,540 Other purchased intangibles 3.7 years 48,446 Total $ 215,370 Expected amortization expenses for intangible assets subject to amortization at December 31, 2019 are as follows (in thousands): Fiscal Year: 2020 $ 156,283 2021 115,875 2022 71,835 2023 54,246 2024 34,556 Thereafter 92,073 Total expected amortization expense $ 524,868 Amortization expense was $180.6 million , $145.9 million and $129.0 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. |
Long Term Debt
Long Term Debt | 12 Months Ended |
Dec. 31, 2019 | |
Long-term Debt, Unclassified [Abstract] | |
Debt Disclosure [Text Block] | Long-Term Debt 6.0% Senior Notes On June 27, 2017 , J2 Cloud Services, LLC (“J2 Cloud”) and J2 Cloud Co-Obligor, Inc. (the “Co-Issuer” and together with J2 Cloud, the “Issuers”), wholly-owned subsidiaries of the Company, completed the issuance and sale of $650 million aggregate principal amount of their 6.0% senior notes due in 2025 (the “6.0% Senior Notes”) in a private placement offering exempt from the registration requirements of the Securities Act of 1933. J2 Cloud received proceeds of $636.5 million , after deducting the initial purchasers’ discounts, commissions and offering expenses. The 6.0% Senior Notes are presented as long-term debt, net of deferred issuance costs, on the condensed consolidated balance sheets as of December 31, 2019 . The proceeds were used to redeem all of J2 Cloud’s 8.0% notes due in 2020, and to distribute sufficient net proceeds to J2 Global to pay off all amounts outstanding under its existing 2016 credit facility, with the remaining net proceeds to be used for general corporate purposes, including acquisitions. The 6.0% Senior Notes bear interest at a rate of 6.0% per annum, payable semi-annually in arrears on January 15 and July 15 of each year, commencing on January 15, 2018. The 6.0% Senior Notes mature on July 15, 2025 , and are senior unsecured obligations of the Issuers which are guaranteed on an unsecured basis by certain subsidiaries of J2 Cloud (as defined in the Indenture agreement dated June 27, 2017, the “Indenture”). If J2 Cloud or any of its restricted subsidiaries acquires or creates a domestic restricted subsidiary, other than an insignificant subsidiary (as defined in the Indenture), after the issue date, or any insignificant subsidiary ceases to fit within the definition of insignificant subsidiary, such restricted subsidiary is required to unconditionally guarantee, jointly and severally, on an unsecured basis, the Issuers’ obligations under the 6.0% Senior Notes. The Issuers may redeem some or all of the 6.0% Senior Notes at any time on or after July 15, 2020 at specified redemption prices plus accrued and unpaid interest, if any, to, but excluding the redemption date. Before July 15, 2020, in connection with certain equity offerings, the Issuers also may redeem up to 35% of the 6.0% Senior Notes at a price equal to 106.0% of the principal amount, plus accrued and unpaid interest, if any, to, but excluding the redemption date. In addition, at any time prior to July 15, 2020, the Issuers may redeem some or all of the 6.0% Senior Notes at a price equal to 100% of the principal amount, plus accrued and unpaid interest, if any, to the redemption date, plus an applicable “make-whole” premium. The Indenture contains certain restrictive and other covenants applicable to J2 Cloud and subsidiaries designated as restricted subsidiaries including, but not limited to, restrictions on (i) paying dividends or making distributions on J2 Cloud’s membership interests or repurchasing J2 Cloud’s membership interests; (ii) making certain restricted payments; (iii) creating liens or entering into sale and leaseback transactions; (iv) entering into transactions with affiliates; (v) merging or consolidating with another company; and (vi) transferring and selling assets. These covenants include certain exceptions. Violation of these covenants could result in a default which could result in the acceleration of outstanding amounts if such default is not cured or waived within the time periods outlined in the Indenture. Restricted payments, specifically dividend payments, are applicable only if J2 Cloud and subsidiaries designated as restricted subsidiaries has a leverage ratio of greater than 3.0 to 1.0. In addition, if such leverage ratio is in excess of 3.0 to 1.0, the restriction on restricted payments is subject to various exceptions, including an exception for the payment of restricted payments up to $75 million. These contractual provisions did not, as of December 31, 2019 , restrict J2 Cloud’s ability to pay dividends to J2 Global, Inc. The company is in compliance with its debt covenants as of December 31, 2019 . As of December 31, 2019 and December 31, 2018 , the estimated fair value of the 6.0% Senior Notes was approximately $689.8 million and $645.5 million , respectively, and was based on the quoted market prices of debt instruments with similar terms, credit rating and maturities of the 6.0% Senior Notes which are Level 2 inputs (see Note 7 - Fair Value Measurements). The following table provides additional information related to our 6% Senior Notes (in thousands): 2019 2018 Principal amount of 6% Senior Notes $ 650,000 $ 650,000 Less: Unamortized discount 8,425 9,657 Less: Debt issuance costs 1,466 1,975 Net carrying amount of 6% Senior Notes $ 640,109 $ 638,368 8.0% Senior Notes On August 1, 2017, J2 Cloud redeemed all of its outstanding $250 million 8.0% senior unsecured notes due in 2020 for $265 million , including a redemption premium and relevant accrued interest which resulted in a loss on extinguishment of $8.0 million recorded which was recorded in Interest expense, net. 3.25% Convertible Notes On June 10, 2014 , J2 Global issued $402.5 million aggregate principal amount of 3.25% convertible senior notes due June 15, 2029 (the “3.25% Convertible Notes”). J2 Global received proceeds of $391.4 million in cash, net of purchasers’ discounts and commissions. The net proceeds were available for general corporate purposes. The 3.25% Convertible Notes bear interest at a rate of 3.25% per annum, payable semiannually in arrears on June 15 and December 15 of each year. Beginning with the six-month interest period commencing on June 15, 2021, the Company must pay contingent interest on the 3.25% Convertible Notes during any six-month interest period if the trading price per $1,000 principal amount of the 3.25% Convertible Notes for each of the five trading days immediately preceding the first day of such interest period equals or exceeds $1,300. Any contingent interest payable on the 3.25% Convertible Notes will be in addition to the regular interest payable on the 3.25% Convertible Notes. Holders may surrender their 3.25% Convertible Notes for conversion at any time prior to the close of business on the business day immediately preceding the maturity date only if one or more of the following conditions is satisfied: (i) during any calendar quarter commencing after the calendar quarter ending on September 30, 2014 (and only during such calendar quarter), if the closing sale price of J2 Global common stock for at least 20 trading days in the period of 30 consecutive trading days ending on the last trading day of the calendar quarter immediately preceding the calendar quarter in which the conversion occurs is more than 130% of the applicable conversion price of the 3.25% Convertible Notes on each such trading day; (ii) during the five consecutive business day period following any ten consecutive trading day period in which the trading price for the 3.25% Convertible Notes for each such trading day was less than 98% of the product of (a) the closing sale price of J2 Global common stock on each such trading day and (b) the applicable conversion rate on each such trading day; (iii) if J2 Global calls any or all of the 3.25% Convertible Notes for redemption, at any time prior to the close of business on the business day prior to the redemption date; (iv) upon the occurrence of specified corporate events; or (v) during either the period beginning on, and including, March 15, 2021 and ending on, but excluding, June 20, 2021 or the period beginning on, and including, March 15, 2029 and ending on, but excluding, the maturity date. J2 Global will settle conversions of 3.25% Convertible Notes by paying or delivering, as the case may be, cash, shares of J2 Global common stock or a combination thereof at J2 Global’s election. The Company currently intends to satisfy its conversion obligation by paying and delivering a combination of cash and shares of the Company’s common stock, where cash will be used to settle each $1,000 of principal and the remainder, if any, will be settled via shares of the Company’s common stock. During the fourth quarter of 2019, the last reported sale price of the Company’s common stock exceeded 130% of the conversion price for at least 20 trading days in the period of 30 consecutive trading days ending on, and including, the last trading day of the quarter. As a result, the 3.25% Convertible Notes are convertible at the option of the holder during the quarter beginning January 1, 2020 and ending March 31, 2020. Since the Company currently intends to settle the principal amount in cash, the net carrying amount of the 3.25% Convertible Notes is classified within current liabilities on the consolidated balance sheet as of December 31, 2019. As of December 31, 2019 , the conversion rate is 14.7632 shares of J2 Global common stock for each $1,000 principal amount of Convertible Notes, which represents a conversion price of approximately $67.74 per share of J2 Global common stock. The conversion rate is subject to adjustment for certain events as set forth in the indenture governing the 3.25% Convertible Notes, but will not be adjusted for accrued interest. In addition, following certain corporate events that occur on or prior to June 20, 2021, J2 Global will increase the conversion rate for a holder that elects to convert its Convertible Notes in connection with such a corporate event. J2 Global may not redeem the 3.25% Convertible Notes prior to June 20, 2021. On or after June 20, 2021, J2 Global may redeem for cash all or part of the 3.25% Convertible Notes at a redemption price equal to 100% of the principal amount of the 3.25% Convertible Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. No sinking fund is provided for the 3.25% Convertible Notes. Holders have the right to require J2 Global to repurchase for cash all or part of their 3.25% Convertible Notes on each of June 15, 2021 and June 15, 2024 at a repurchase price equal to 100% of the principal amount of the 3.25% Convertible Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the relevant repurchase date. In addition, if a fundamental change, as defined in the indenture governing the 3.25% Convertible Notes, occurs prior to the maturity date, holders may require J2 Global to repurchase for cash all or part of their 3.25% Convertible Notes at a repurchase price equal to 100% of the principal amount of the 3.25% Convertible Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. The 3.25% Convertible Notes are the Company’s general senior unsecured obligations and rank: (i) senior in right of payment to any of the Company’s future indebtedness that is expressly subordinated in right of payment to the 3.25% Convertible Notes; (ii) equal in right of payment to the Company’s existing and future unsecured indebtedness that is not so subordinated; (iii) effectively junior in right of payment to any of the Company’s secured indebtedness to the extent of the value of the assets securing such indebtedness; and (iv) structurally junior to all existing and future indebtedness (including trade payables) incurred by the Company’s subsidiaries. Accounting for the 3.25% Convertible Notes In accordance with ASC 470-20, Debt with Conversion and Other Options, convertible debt that can be settled for cash is required to be separated into the liability and equity component at issuance, with each component assigned a value. The value assigned to the liability component is the estimated fair value, as of the issuance date, of similar debt without the conversion feature. The difference between the cash proceeds and estimated fair value of the liability component, representing the value of the conversion premium assigned to the equity component, is recorded as a debt discount on the issuance date. This debt discount is amortized to interest expense using the effective interest method over the period from the issuance date through the first stated repurchase date on June 15, 2021. J2 Global estimated the borrowing rates of similar debt without the conversion feature at origination to be 5.79% for the 3.25% Convertible Notes and determined the debt discount to be $59.0 million . As a result, a conversion premium after tax of $37.7 million was recorded in additional paid-in capital. The aggregate debt discount is amortized as interest expense over the period from the issuance date through the first stated repurchase date on June 15, 2021 which management believes is the expected life of the 3.25% Convertible Notes using an interest rate of 5.81% . As of December 31, 2019 , the remaining period over which the unamortized debt discount will be amortized is 1.5 years . The 3.25% Convertible Notes are carried at face value less any unamortized debt discount and debt issuance costs. The fair value of the 3.25% Convertible Notes at each balance sheet date is determined based on recent quoted market prices or dealer quotes for the 3.25% Convertible Notes, which are Level 1 inputs (see Note 7 - Fair Value Measurements). If such information is not available, the fair value is determined using cash-flow models of the scheduled payments discounted at market interest rates for comparable debt without the conversion feature. As of December 31, 2019 and 2018 , the estimated fair value of the 3.25% Convertible Notes was approximately $583.6 million and $457.0 million , respectively. As of December 31, 2019 and 2018 , the if-converted value of our 3.25% Convertible Notes exceeded the principal amount of $402.5 million by $154.3 million and $8.0 million , respectively. The following table provides additional information related to our 3.25% Convertible Notes (in thousands): 2019 2018 Additional paid-in capital $ 37,700 $ 37,700 Principal amount of 3.25% Convertible Notes $ 402,500 $ 402,500 Less: Unamortized discount of the liability component 14,363 23,534 Less: Carrying amount of debt issuance costs 2,605 4,205 Net carrying amount of 3.25% Convertible Notes $ 385,532 $ 374,761 The following table provides the components of interest expense related to our 3.25% Convertible Notes (in thousands): 2019 2018 2017 Cash interest expense (coupon interest expense) $ 13,081 $ 13,081 $ 13,081 Non-cash amortization of discount on 3.25% Convertible Notes 9,171 8,655 8,167 Amortization of debt issuance costs 1,600 1,462 1,335 Total interest expense related to 3.25% Convertible Notes $ 23,852 $ 23,198 $ 22,583 The Company has recorded changes in fair value associated with the contingent interest feature of the 3.25% Convertible Notes in interest expense for the years ended December 31, 2019 , 2018 , and 2017 of $(0.8) million , zero , and $(0.2) million , respectively (see Note 7 - Fair Value Measurements). 1.75% Convertible Notes On November 15, 2019 , J2 Global issued $550.0 million aggregate principal amount of 1.75% convertible senior notes due November 1, 2026 (the “1.75% Convertible Notes”). J2 Global received proceeds of $537.1 million in cash, net of purchasers’ discounts and commissions and other debt issuance costs. The net proceeds were used to pay off all amounts outstanding under the MUFG Credit Facility (see Note 12 - Commitments and Contingencies). The 1.75% Convertible Notes bear interest at a rate of 1.75% per annum, payable semiannually in arrears on May 1 and November 1 of each year, beginning on May 1, 2020. The 1.75% Convertible Notes will mature on November 1, 2026, unless earlier converted or repurchased. Holders may surrender their 1.75% Convertible Notes for conversion at any time prior to the close of business on the business day immediately preceding July 1, 2026 only under the following circumstances: (i) during any calendar quarter commencing after the calendar quarter ending on March 31, 2020 (and only during such calendar quarter), if the last reported sale price of J2 Global common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding the calendar quarter is greater than 130% of the applicable conversion price of the 1.75% Convertible Notes on each such applicable trading day; (ii) during the five business day period following any 10 consecutive trading day period in which the trading price per $1,000 principal amount of 1.75% Convertible Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of J2 Global common stock and the applicable conversion rate on each such trading day; or (iii) upon the occurrence of specified corporate events. On or after July 1, 2026, and prior to the close of business on the business day immediately preceding the maturity date, holders may convert all or any portion of their notes at any time, regardless of the foregoing circumstances. J2 Global will settle conversions of the 1.75% Convertible Notes by paying or delivering, as the case may be, cash, shares of J2 Global common stock or a combination thereof at J2 Global’s election. The Company currently intends to satisfy its conversion obligation by paying and delivering a combination of cash and shares of the Company’s common stock, where cash will be used to settle each $1,000 of principal and the remainder, if any, will be settled via shares of the Company’s common stock. Holders of the notes will have the right to require the Company to repurchase for cash all or any portion of their notes upon the occurrence of certain corporate events, subject to certain conditions. As of December 31, 2019, the market trigger conditions have not been met. Therefore, the net carrying amount of the 1.75% Convertible Notes are classified as long-term debt on the consolidated balance sheets. The initial conversion rate is 7.9864 shares of J2 Global common stock for each $1,000 principal amount of 1.75% Convertible Notes, which represents an initial conversion price of approximately $125.21 per share of J2 Global common stock. The conversion rate is subject to adjustment for certain events as set forth in the indenture governing the 1.75% Convertible Notes, but will not be adjusted for accrued interest. In addition, upon the occurrence of a “Make-Whole Fundamental Change” (as defined in the 1.75% Convertible Note Indenture), J2 Global will increase the conversion rate for a holder that elects to convert its 1.75% Convertible Notes in connection with such a corporate event in certain circumstances. As of December 31, 2019 , the conversion rate is 7.9864 shares of J2 Global common stock for each $1,000 principal amount of 1.75% Convertible Notes, which represents a conversion price of approximately $125.21 per share of J2 Global common stock. J2 Global may not redeem the 1.75% Convertible Notes prior to November 1, 2026, and no sinking fund is provided for the 1.75% Convertible Notes. The 1.75% Convertible Notes are the Company’s general senior unsecured obligations and rank: (i) senior in right of payment to any of the Company’s indebtedness that is expressly subordinated in right of payment to the 1.75% Convertible Notes; (ii) equal in right of payment to the Company’s existing and future indebtedness that is not so subordinated, including its existing 3.25% Convertible Notes due 2029; (iii) effectively junior to any of the Company’s secured indebtedness to the extent of the value of the assets securing such indebtedness; and (iv) structurally junior to all existing and future indebtedness and other liabilities incurred by the Company’s subsidiaries, including the existing 6% Senior Notes due 2025. Accounting for the 1.75% Convertible Notes In accordance with ASC 470-20, Debt with Conversion and Other Options , convertible debt that can be settled for cash is required to be separated into the liability and equity component at issuance, with each component assigned a value. The value assigned to the liability component is the effective fair value, as of the issuance date, of similar debt without the conversion feature. The difference between the cash proceeds and estimated fair value of the liability component, representing the value of the conversion premium assigned to the equity component, is recorded as a debt discount on the issuance date. This debt discount is amortized to interest expense using the effective interest method over the period from the issuance date through the maturity date of November 1, 2026. J2 Global estimated the borrowing rates of similar debt without the conversion feature at origination to be 5.5% for the 1.75% Convertible Notes and determined the debt discount to be $118.9 million . As a result, a conversion premium after tax of $88.1 million (net of $2.8 million of the deferred issuance costs) are recorded in additional paid-in capital. The aggregate debt discount is amortized as interest expense over the period from the issuance date through the maturity date of November 1, 2026, which management believes is the expected life of the 1.75% Convertible Notes using an interest rate of 5.5% . As of December 31, 2019 , the remaining period over which the unamortized debt discount will be amortized is 6.8 years . In connection with the issuance of the 1.75% Convertible Notes, the Company incurred $12.9 million of deferred issuance costs, which primarily consisted of the underwriters’ discount, legal and other professional service fees. Of the total deferred issuance costs incurred, $10.1 million of such deferred issuance costs were attributable to the liability component and are recorded within other assets and are being amortized to interest expense through the maturity date. The unamortized balance, as of December 31, 2019, was $10.0 million . The remaining $2.8 million of the deferred issuance costs were netted with the equity component in additional paid-in capital at the issuance date. The 1.75% Convertible Notes are carried at face value less any unamortized debt discount and issuance costs. The fair value of the 1.75% Convertible Notes at each balance sheet date is determined based on recent quoted market prices or dealer quotes for the 1.75% Convertible Notes, which are Level 1 inputs (see Note 7 - Fair Value Measurements). If such information is not available, the fair value is determined using cash-flow models of the scheduled payments discounted at market interest rates for comparable debt without the conversion feature. As of December 31, 2019 , the estimated fair value of the 1.75% Convertible Notes was approximately $559.6 million . The following table provides additional information related to our 1.75% Convertible Notes (in thousands): 2019 Additional paid-in capital $ 88,138 Principal amount of 1.75% Convertible Notes $ 550,000 Less: Unamortized discount of the liability component 117,193 Less: Carrying amount of debt issuance costs 9,987 Net carrying amount of 1.75% Convertible Notes $ 422,820 The following table provides the components of interest expense related to our 1.75% Convertible Notes (in thousands): 2019 Cash interest expense (coupon interest expense) $ 1,174 Non-cash amortization of discount on 1.75% Convertible Notes 1,718 Amortization of debt issuance costs 122 Total interest expense related to 1.75% Convertible Notes $ 3,014 MUFG Credit Facility During the year ended December 31, 2019 , the Company drew down $185.0 million and repaid $185.0 million under its MUFG Credit Facility. The Company has capitalized the total of $0.4 million in debt issuance costs, which are being amortized to interest expense over the life of the MUFG Credit Facility. As of December 31, 2019 , these debt issuance costs, net of amortization, were $0.3 million . The related interest expense was $3.4 million and zero for the years ended December 31, 2019 and 2018 , respectively. See Note 12, “Commitments and Contingencies” for additional information. Long-term debt as of December 31, 2019 and 2018 consists of the following (in thousands): 2019 2018 6.0% Senior Notes $ 650,000 $ 650,000 Convertible Notes: 3.25% Convertible Notes 402,500 402,500 1.75% Convertible Notes 550,000 — Total Notes 1,602,500 1,052,500 Less: Unamortized discount 139,981 33,191 Deferred issuance costs 14,058 6,180 Total long-term debt $ 1,448,461 $ 1,013,129 Less: Current portion 385,532 — Total long-term debt, less current portion $ 1,062,929 $ 1,013,129 At December 31, 2019 , future principal payments for debt were as follows (in thousands): Years Ended December 31, 2020 $ — 2021 402,500 2022 — 2023 — 2024 — Thereafter 1,200,000 $ 1,602,500 Interest expense was $70.2 million , $63.5 million and $59.2 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | Leases J2 Global leases certain facilities and equipment under non-cancelable operating and finance leases which expire at various dates through 2031. Office and equipment leases are typically for terms of three to five years and generally provide renewal options for terms up to an additional five years. Some of the Company’s leases include options to terminate within one year. In certain agreements in which the Company leases office space where the Company is the tenant, it subleases the site to various other companies through a sublease agreement. As of December 31, 2019 , the Company leased approximately 43,000 square feet of office space for its global headquarters in Los Angeles, California under a lease that expired on January 31, 2020. In April 2019, the Company entered into a new lease to relocate its global headquarters. Upon the lease commencement date in December 2019, the Company recorded $29.0 million of right-of-use assets after considering prepaid rent and $28.8 million of operating lease liabilities. The Company has adopted the new lease standard and related amendments as of January 1, 2019 using the optional transition method. Results for reporting periods beginning after the adoption date are presented under Topic 842, while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historic accounting under ASC 840. Finance leases are not material to the Company’s consolidated financial statements and are therefore not included in the disclosures. Upon adoption of ASU 2016-02 and its related Updates, the Company recorded approximately $72.0 million of right-of-use assets and approximately $75.0 million of operating lease liabilities. The components of lease expense were as follows for the year ended (in thousands): December 31, 2019 Operating lease cost $ 23,681 Short-term lease cost 1,918 Total lease cost $ 25,599 Supplemental balance sheet information related to leases was as follows (in thousands): December 31, 2019 Operating leases Operating lease right-of-use assets $ 125,822 Total operating lease right-of-use assets $ 125,822 Operating lease liability, current $ 26,927 Operating lease liabilities, noncurrent 104,070 Total operating lease liabilities $ 130,997 Supplemental cash flow information related to leases was as follows (in thousands): December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 24,750 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 73,163 Other supplemental operating lease information consists of the following: Operating leases: Weighted average remaining lease term 5.9 years Weighted average discount rate 3.95 % Maturities of operating lease liabilities as of December 31, 2019 were as follows (in thousands): Operating Leases Fiscal Year: 2020 $ 28,517 2021 27,515 2022 25,320 2023 20,132 2024 13,607 Thereafter 34,195 Total lease payments $ 149,286 Less: Imputed interest 18,289 Present value of operating lease liabilities $ 130,997 Rental expense for operating leases classified under ASC 840 for the years ended December 31, 2018 and 2017 was $21.0 million and $15.3 million , respectively and was predominantly recorded within general and administrative expenses. As of December 31, 2018, future minimum lease payments under non-cancelable operating leases (with initial or remaining lease terms in excess of one year) are as follows (in thousands): Lease Payments Fiscal Year: 2019 $ 19,267 2020 16,196 2021 13,881 2022 12,654 2023 10,977 Thereafter 5,456 Total minimum lease payments $ 78,431 Sublease Total sublease income for the years ended December 31, 2019 , 2018 and 2017 was $3.5 million , $2.8 million and $0.7 million , respectively. Total estimated aggregate sublease income to be received in the future is $9.8 million . Significant Judgments Discount Rate The majority of the J2 Global’s leases are discounted using the Company’s incremental borrowing rate as the rate implicit in the lease is not readily determinable. Options The lease term is generally the minimum noncancelable period of the lease. The Company does not include option periods unless the Company determined it is reasonably certain of exercising the option at inception or when a triggering event occurs. Practical Expedients As a practical expedient, the Company has not separated lease components from nonlease components for its real property operating leases. Certain of the Company’s leases contain nonlease components such as maintenance and certain utility costs. In addition, the Company elected and applied the available transition practical expedients upon adoption. By electing these practical expedients, the Company did: • not reassess whether expired or existing contracts contain leases under the new definition of a lease; • not reassess lease classification for expired or existing leases; and • not reassess whether previously capitalized initial direct costs would qualify for capitalization under Topic 842. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | Commitments and Contingencies Litigation From time to time, J2 Global and its affiliates are involved in litigation and other legal disputes or regulatory inquiries that arise in the ordinary course of business. Any claims or regulatory actions against J2 Global and its affiliates, whether meritorious or not, could be time consuming and costly, and could divert significant operational resources. The outcomes of such matters are subject to inherent uncertainties, carrying the potential for unfavorable rulings that could include monetary damages and injunctive relief. On February 17, 2011, Emmanuel Pantelakis (“Pantelakis”) filed suit against a J2 Global affiliate in the Ontario Superior Court of Justice (No. 11-50673), alleging that the J2 Global affiliate breached a contract relating to Pantelakis’s use of the Campaigner service. The J2 Global affiliate filed a responsive pleading on March 23, 2011 and responses to undertakings on July 16, 2012. On November 6, 2012, Pantelakis filed a second amended statement of claim, reframing his lawsuit as a negligence action. The J2 Global affiliate filed an amended statement of defense on April 8, 2013. Discovery has closed, with the exception of one issue. There is an anticipated trial date of February 2021. On January 21, 2016, Davis Neurology, P.A. filed a putative class action against two J2 Global affiliates in the Circuit Court for the County of Pope, State of Arkansas (58-cv-2016-40), alleging violations of the TCPA. The case was removed to the U.S. District Court for the Eastern District of Arkansas (No. 4:16-cv-00682). On March 20, 2017, the District Court granted a motion for judgment on the pleadings filed by the J2 Global affiliates and dismissed all claims against the J2 Global affiliates. On July 23, 2018, the Eighth Circuit Court of Appeals vacated the judgment and remanded to district court with instructions to return the case to state court. On January 29, 2019, after further appeals were exhausted, the case was remanded to the Arkansas state court. On April 1, 2019, the state court granted a motion for class certification filed by the plaintiff in 2016. Because the prior removal to federal court had deprived the state court of jurisdiction, the J2 Global affiliates had not yet filed an opposition brief to the 2016 motion when the state court granted the motion. The J2 Global affiliates appealed the order. On July 15, 2019, the J2 Global affiliates removed the case to federal court pursuant to the Class Action Fairness Act of 2005. On November 26, 2019 the court denied the Plaintiff’s motion to remand. On December 20, 2019, the court granted the Plaintiff’s motion for leave to amend its complaint. The J2 Global affiliates have moved to dismiss the amended pleading. J2 Global does not believe, based on current knowledge, that the foregoing legal proceedings or claims, after giving effect to existing accrued liabilities, are likely to have a material adverse effect on the Company’s consolidated financial position, results of operations, or cash flows. However, depending on the amount and timing, an unfavorable resolution of some or all of these matters could have a material effect on J2 Global’s consolidated financial position, results of operations, or cash flows in a particular period. The Company has not accrued for any material loss contingencies relating to these legal proceedings because materially unfavorable outcomes are not considered probable by management. It is the Company’s policy to expense as incurred legal fees related to various litigations. Credit Agreements On December 5, 2016, J2 Global entered into a Credit Agreement (the “2016 Credit Agreement”) with MUFG Union Bank, N.A., as administrative agent, and certain other lenders from time to time party thereto (collectively, the “2016 Lenders”). Pursuant to the 2016 Credit Agreement, the 2016 Lenders provided J2 Global with a credit facility of $225.0 million. On June 27, 2017, the Company paid off the entire line of credit of $225.0 million , in addition to interest and miscellaneous fees of $0.5 million and terminated the 2016 Credit Agreement. On January 7, 2019, J2 Cloud Services, LLC entered into a Credit Agreement (the “Credit Agreement”) with certain lenders from time to time party thereto (collectively, the “Lenders”) and MUFG Union Bank, N.A., as sole lead arranger and as administrative agent for the Lenders (the “Agent”). Pursuant to the Credit Agreement, as amended in July and August, the Lenders provided J2 Cloud Services with a credit facility of $200.0 million (the “MUFG Credit Facility”) through December 31, 2020. On November 15, 2019, the Company reduced its borrowing capacity from $200.0 million to $100.0 million . The proceeds of the MUFG Credit Facility are intended to be used for working capital and general corporate purposes of J2 Cloud and its subsidiaries, including to finance certain permitted acquisitions and capital expenditures in accordance with the terms of the Credit Agreement. As of December 31, 2019 , zero was outstanding under the MUFG Credit Facility. At J2 Cloud’s option, amounts borrowed under the Credit Agreement will bear interest at either (i) a base rate equal to the greatest of (x) the Federal Funds Effective Rate (as defined in the Credit Agreement) in effect on such day plus 1/2 of 1% per annum, (y) the rate of interest per annum most recently announced by the Agent as its U.S. Dollar “Reference Rate” and (z) one month LIBOR plus 1.00% or (ii) a rate per annum equal to LIBOR divided by 1.00 minus the LIBOR Reserve Requirements (as defined in the Credit Agreement), in each case, plus an applicable margin. The applicable margin relating to any base rate loan will range from 0.50% to 1.50% and the applicable margin relating to any LIBOR loan will range from 1.50% to 2.50%, in each case, depending on the total leverage ratio of J2 Cloud. The final maturity of the MUFG Credit Facility will occur on January 7, 2024. J2 Cloud is permitted to make voluntary prepayments of the MUFG Credit Facility at any time without payment of a premium or penalty. The obligations under the MUFG Credit Facility and certain cash management are and will be fully and unconditionally guaranteed by certain of J2 Cloud’s existing and subsequently acquired or organized direct and indirect domestic subsidiaries pursuant to a guarantee agreement and secured by a lien on the equity interests of certain of J2 Cloud’s foreign subsidiaries. The Credit Agreement contains financial maintenance covenants, including (i) a maximum total leverage ratio as of the last date of any fiscal quarter not to exceed 3.00:1.00 for J2 Cloud and its restricted subsidiaries; (ii) a maximum total leverage ratio as of the last date of any fiscal quarter not to exceed 3.25:1.00 for J2 and its restricted subsidiaries; and (iii) a minimum EBITDA of not less than $50.0 million for any fiscal quarter for J2 Cloud and its restricted subsidiaries. The Credit Agreement also contains restrictive covenants that limit, among other things, J2 Cloud’s and its restricted subsidiaries’ ability to incur additional indebtedness, create, incur or assume liens, consolidate, merge, liquidate or dissolve, pay dividends or make other distributions or other restricted payments, make or hold any investments, enter into certain transactions with affiliates, sell assets other than on terms specified by the Credit Agreement, amend the terms of certain other indebtedness and organizational documents and change their lines of business and fiscal years, in each case, subject to customary exceptions. The Credit Agreement also sets forth customary events of default, including, among other things, the failure to make timely payments under the MUFG Credit Facility, the failure to satisfy certain covenants, cross-default and cross-acceleration to other material debt for borrowed money, the occurrence of a change of control and specified events of bankruptcy and insolvency. Non-Income Related Taxes The Company does not collect and remit sales and use, telecommunication, or similar taxes in certain jurisdictions where the Company believes that such taxes are not applicable or legally required. Several states and other taxing jurisdictions have presented or threatened the Company with assessments, alleging that the Company is required to collect and remit such taxes there. The Company is currently under audit or is subject to audit for indirect taxes in various states, municipalities and foreign jurisdictions. The Company has a $21.2 million reserve established for these matters which is included in accounts payable and accrued expenses on the consolidated balance sheet at December 31, 2019. It is reasonably possible that additional liabilities could be incurred resulting in additional expense, which could materially impact our financial results. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax (benefit) expense amounted to $(19.4) million , $44.8 million and $60.5 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. The Company’s effective tax rates for 2019 , 2018 and 2017 were (9.7)% , 25.2% and 30.3% , respectively. The provision for income tax consisted of the following (in thousands): Years Ended December 31, 2019 2018 2017 Current: Federal $ 23,306 $ 17,233 $ 55,804 State 4,774 (617 ) 3,265 Foreign 15,988 3,094 22,904 Total current 44,068 19,710 81,973 Deferred: Federal (1,903 ) 16,083 (15,682 ) State (5,620 ) 2,965 962 Foreign (55,921 ) 6,002 (6,712 ) Total deferred (63,444 ) 25,050 (21,432 ) Total provision $ (19,376 ) $ 44,760 $ 60,541 A reconciliation of the statutory federal income tax rate with J2 Global’s effective income tax rate is as follows: Years Ended December 31, 2019 2018 2017 Statutory tax rate 21 % 21 % 35 % State income taxes, net 0.9 1.2 0.8 Foreign rate differential (3.8 ) (7.7 ) (16.1 ) Foreign income inclusion 1.4 1.5 7.2 Foreign tax credit (0.9 ) (1.4 ) (6.2 ) Reserve for uncertain tax positions (0.4 ) 4.1 3.9 Valuation allowance 0.2 0.2 (0.9 ) IRC Section 199 deductions — — (1.6 ) Intra-entity tax benefit (26.9 ) — — The 2017 Tax Act - provisional transition tax — — 24.6 Impact on deferred taxes of enacted tax law and rate changes (1.3 ) 0.1 (16.1 ) Contingent liabilities 0.6 2.4 — Unrecognized loss on intercompany sale — 1.9 — Other (0.5 ) 1.9 (0.3 ) Effective tax rates (9.7 )% 25.2 % 30.3 % The effective tax rate for the year ended December 31, 2019 differs from the federal statutory rate primarily due to a tax benefit recognized as a result of an intra-entity asset transfer. In December 2019, the Company completed an intra-entity asset transfer between two of its foreign subsidiaries as part of the reorganization of its international operating structure. The transfer caused the recognition of a net tax benefit for $53.7 million and a corresponding deferred tax asset. Additionally, the jurisdictional mix of income and disallowance of certain losses and expenses caused further differences from the federal statutory rate. The effective tax rate for 2018 differs from the federal statutory rate primarily due to impacts of the jurisdictional mix of income and disallowance of certain losses and expenses. The effective tax rate for 2017 differs from the federal statutory rate primarily as a result of the 2017 Tax Act. Deferred tax assets and liabilities result from differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. Temporary differences and carryforwards which give rise to deferred tax assets and liabilities are as follows (in thousands): Years Ended December 31, 2019 2018 Deferred tax assets: Net operating loss carryforwards $ 43,352 $ 36,038 Tax credit carryforwards 4,152 4,784 Accrued expenses 9,946 5,717 Allowance for bad debt 2,547 1,776 Share-based compensation expense 4,669 5,038 Impairment of investments 1,675 1,466 Deferred revenue — 1,948 State taxes 3,206 2,097 Other 9,958 9,917 79,505 68,781 Less: valuation allowance (608 ) (44 ) Total deferred tax assets $ 78,897 $ 68,737 Deferred tax liabilities: Basis difference in property and equipment $ (15,767 ) $ (6,568 ) Basis difference in intangible assets (42,880 ) (96,869 ) Prepaid insurance (1,847 ) (2,149 ) Convertible debt (65,217 ) (31,994 ) Other (663 ) (205 ) Total deferred tax liabilities (126,374 ) (137,785 ) Net deferred tax liabilities $ (47,477 ) $ (69,048 ) The Company had approximately $78.9 million and $68.7 million in deferred tax assets as of December 31, 2019 and 2018 , respectively, related primarily to net operating loss carryforwards, basis difference in intangible assets including differences related to intra-entity transfers, tax credit carryforwards and accrued expenses treated differently between its financial statements and its tax returns. Based on the weight of available evidence, the Company assesses whether it is more likely than not that some portion or all of a deferred tax asset will not be realized. If necessary, J2 Global records a valuation allowance sufficient to reduce the deferred tax asset to the amount that is more likely that not to be realized. The deferred tax assets should be realized through future operating results and the reversal of temporary differences. As of December 31, 2019 , the Company had federal net operating loss carryforwards (“NOLs”) of $166.2 million , after considering substantial restrictions on the utilization of these NOLs due to “ownership changes”, as defined in the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”). J2 Global currently estimates that all of the above-mentioned federal NOLs will be available for use before their expiration. $143.0 million of NOLs for losses incurred prior to January 1, 2018 expire through the year 2036. The NOLs for losses incurred after January 1, 2018 of $23.2 million have an indefinite carryforward period. As of December 31, 2019 and 2018 , the Company had no foreign tax credit carryforward. In addition, as of December 31, 2019 and 2018 , the Company had state research and development tax credits of $3.2 million and $4.6 million , respectively, which last indefinitely. The Company has not provided deferred taxes on approximately $471.9 million of undistributed earnings from foreign subsidiaries as of December 31, 2019 . We have not provided any additional deferred taxes with respect to items such as foreign withholding taxes, state income tax or foreign exchange gain or loss that would be due when cash is actually repatriated to the U.S. because those foreign earnings are considered permanently reinvested in the business or may be remitted substantially free of any additional taxes. Because of the various avenues in which to repatriate the earnings, the determination of the amount of the unrecognized deferred tax liability related to the undistributed earnings if eventually remitted is not practicable. Certain tax payments are prepaid during the year and included within prepaid expenses and other current assets on the consolidated balance sheet. The Company’s prepaid tax payments were $3.7 million and zero at December 31, 2019 and 2018 , respectively. Income before income taxes included income from domestic operations of $81.6 million , $19.9 million and $61.9 million for the years ended December 31, 2019 , 2018 and 2017 , respectively, and income from foreign operations of $118.0 million , $157.7 million and $138.1 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Uncertain Income Tax Positions Tax positions are evaluated in a two-step process. The Company first determines whether it is more likely than not that a tax position will be sustained upon examination. If a tax position meets the more-likely-than-not recognition threshold, it is then measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. The Company classifies gross interest and penalties and unrecognized tax benefits that are not expected to result in payment or receipt of cash within one year as non-current liabilities in the consolidated balance sheets. As of December 31, 2019 , the total amount of unrecognized tax benefits was $46.7 million , of which $43.9 million , if recognized, would affect the Company’s effective tax rate. As of December 31, 2018 , the total amount of unrecognized tax benefits was $51.3 million , of which $46.8 million , if recognized, would affect the Company’s effective tax rate. As of December 31, 2017 , the total amount of unrecognized tax benefits was $45.0 million , of which $39.8 million , if recognized would affect the Company’s effective tax rate. The aggregate changes in the balance of unrecognized tax benefits, which excludes interest and penalties, for 2019 , 2018 and 2017 , is as follows (in thousands): Years Ended December 31, 2019 2018 2017 Beginning balance $ 51,271 $ 45,012 $ 41,218 Increases related to tax positions during a prior year 5,285 2,508 — Decreases related to tax positions taken during a prior year (7,441 ) — (401 ) Increases related to tax positions taken in the current year 4,069 3,751 7,223 Settlements (5,831 ) — (2,639 ) Decreases related to expiration of statute of limitations (650 ) — (389 ) Ending balance $ 46,703 $ 51,271 $ 45,012 The Company includes interest and penalties related to unrecognized tax benefits within the provision for income taxes. As of December 31, 2019 , 2018 and 2017 , the total amount of interest and penalties accrued was $5.8 million , $8.4 million and $7.2 million , respectively, which is classified as a liability for uncertain tax positions on the consolidated balance sheets. In connection with tax matters, the Company recognized interest and penalty (benefit) expense in 2019 , 2018 and 2017 of $(1.8) million , $1.2 million and $2.1 million , respectively. Uncertain income tax positions are reasonably possible to significantly change during the next 12 months as a result of completion of income tax audits and expiration of statutes of limitations. At this point it is not possible to provide an estimate of the amount, if any, of significant changes in reserves for uncertain income tax positions as a result of the completion of income tax audits that are reasonably possible to occur in the next 12 months. In addition, the Company cannot currently estimate the amount of, if any, uncertain income tax positions which will be released in the next 12 months as a result of expiration of statutes of limitations due to ongoing audits. As a result of ongoing federal, state and foreign income tax audits (discussed below), it is reasonably possible that the Company’s entire reserve for uncertain income tax positions for the periods under audit will be released. It is also reasonably possible that the Company’s reserves will be inadequate to cover the entire amount of any such income tax liability. Income Tax Audits: The Company is in various stages of audit by the U.S. Internal Revenue Service (“IRS”) for its 2012 through 2016 tax years. As of December 31, 2019, the audits are ongoing. The Company is under audit by the California Franchise Tax Board (“FTB”) for its tax years 2012 and 2013. The FTB, however, has agreed to suspend its audit for 2012 and 2013 pending the outcome of the IRS audit for such tax years. In August 2018, the FTB notified the Company that it will commence an audit of tax years 2015 and 2016. As of December 31, 2019, the audit is ongoing. In June 2019, the New York State Department of Taxation and Finance (“NYS”) notified the Company that it will commence an audit for tax year 2015. In September 2019, the Company was notified by the French Tax Authorities that the audit of the 2011 to 2016 tax years has been concluded with no adjustments. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Preferred Stock Exchange In November 2014, the Company provided holders of the Company’s Series A Preferred Stock (“J2 Series A Stock”) and the Company’s Series B Preferred Stock (“J2 Series B Stock”) an exchange right in which shares may be exchanged for J2 common stock. The exchange right associated with the shares of J2 Series A Stock provided that such shares were immediately exercisable at an exchange ratio of 20.4319 shares of J2 common stock per share of J2 Series A Stock (the “Series A Exchange Ratio”). Both holders of the J2 Series A Stock exercised this exchange right which resulted in the issuance of 235,665 shares of J2 common stock. The exchange right associated with the vested shares of the J2 Series B Stock is exercisable during specified exchange periods at an exchange ratio of 31.8094 shares of J2 common stock per share of J2 Series B Stock (the “Series B Exchange Ratio”). Holders of vested J2 Series B Stock exercised this exchange right which resulted in the issuance of zero and 10,530 shares of J2 common stock during fiscal years 2019 and 2018 , respectively. In connection with the exercise of the exchange right and the resulting extinguishment of the J2 Series A Stock, the Company recorded the difference between the carrying value of the Series A and the fair value of the J2 common stock exchanged within retained earnings as a preferred stock dividend. In connection with the exercise of the exchange right associated with J2 Series B Stock, the Company recognized incremental fair value in the amount of $6.3 million and recorded additional share-based compensation in the amount of zero and $1.9 million for the years ended December 31, 2019 and 2018 , respectively. As of December 31, 2018, all incremental fair value associated with the exchange right of J2 Series B Stock had been recognized. The Series B Exchange Ratio is adjusted in the event of a subdivision of the outstanding J2 common stock or J2 Series B Stock, a declaration of a dividend payable in shares of J2 common stock or J2 Series B Stock, a declaration of a dividend payable in a form other than shares in an amount that has a material effect on the value of shares of J2 common stock or J2 Series B Stock, a combination or consolidation of the outstanding J2 common stock or J2 Series B Stock into a lesser number of shares of J2 common stock or J2 Series B Stock, respectively, specified changes in control, a recapitalization, a reclassification, or a similar occurrence, the Company shall adjust the Series B Exchange Ratio as it deems appropriate in its sole discretion. Common Stock Repurchase Program In February 2012, the Company’s Board of Directors approved a program authorizing the repurchase of up to five million shares of J2 Global common stock through February 20, 2013 (the “2012 Program”) which was subsequently extended through February 20, 2021 (see Note 22 - Subsequent Events). In November 2018 and May 2019, the Company entered into a Rule 10b5-1 trading plan with a broker to facilitate the repurchase program. 600,000 shares were repurchased under the share repurchase program in 2018 at an aggregate cost of $42.5 million and were subsequently retired in March 2019. During the year ended December 31, 2019 , the Company repurchased 197,870 shares under this program at an aggregate cost of $16.0 million which were subsequently retired in the same year. No shares were repurchased under the share repurchase program for the year ended December 31, 2017. Cumulatively at December 31, 2019 , 2.9 million shares were repurchased at an aggregate cost of $117.1 million (including an immaterial amount of commission fees). As a result of the Company’s share repurchase program, the number of shares available for purchase under the 2012 Program is 1,140,819 shares of J2 Global common stock available for purchase under this program. Periodically, participants in J2 Global’s stock plans surrender to the Company shares of J2 Global stock to pay the exercise price or to satisfy tax withholding obligations arising upon the exercise of stock options or the vesting of restricted stock. During the year ended December 31, 2019 , the Company purchased 71,077 shares from plan participants for this purpose. Dividends The following is a summary of each dividend declared during fiscal year 2019 and 2018 : Declaration Date Dividend per Common Share Record Date Payment Date February 2, 2018 $ 0.4050 February 22, 2018 March 9, 2018 May 3, 2018 $ 0.4150 May 18, 2018 June 1, 2018 August 8, 2018 $ 0.4250 August 20, 2018 September 4, 2018 October 29, 2018 $ 0.4350 November 19, 2018 December 5, 2018 February 6, 2019 $ 0.4450 February 25, 2019 March 12, 2019 May 2, 2019 $ 0.4550 May 20, 2019 June 4, 2019 Future dividends are subject to Board approval. Based on the significant number of current investment opportunities within the Company’s portfolio of businesses and the historic returns from prior investments, the Board of Directors suspended dividend payments for the foreseeable future after the June 4, 2019 payment. |
Stock Options And Employee Stoc
Stock Options And Employee Stock Purchase Plan | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock Options And Employee Stock Purchase Plan | Stock Options and Employee Stock Purchase Plan J2 Global’s share-based compensation plans include the 2007 Stock Plan, the 2015 Stock Plan and the 2001 Employee Stock Purchase Plan. Each plan is described below. (a) The 2007 Stock Option Plan and the 2015 Stock Option Plan In October 2007, J2 Global’s Board of Directors adopted the J2 Global, Inc. 2007 Stock Option Plan (the “2007 Plan”). The 2007 Plan provides for the granting of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units and other share-based awards. The number of authorized shares of common stock that may be used for 2007 Plan purposes is 4,500,000 . Options under the 2007 Plan may be granted at exercise prices determined by the Board of Directors, provided that the exercise prices shall not be less than the fair market value of J2 Global’s common stock on the date of grant for incentive stock options and not less than 85% of the fair market value of J2 Global’s common stock on the date of grant for non-statutory stock options. The 2007 Plan terminated on February 14, 2017. In May 2015, J2 Global’s Board of Directors adopted the J2 Global, Inc. 2015 Stock Option Plan (the “2015 Plan”). The 2015 Plan provides for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance share units and other share-based awards and is intended as a successor plan to the 2007 Stock Plan since no further grants will be made under the 2007 Stock Plan. 4,200,000 shares of common stock are authorized to be used for 2015 Plan purposes. Options under the 2015 Plan may be granted at exercise prices determined by the Board of Directors, provided that the exercise prices shall not be less than the higher of the par value or 100% of the fair market value of J2 Global’s common stock subject to the option on the date the option is granted. At December 31, 2019 , 2018 and 2017 , options to purchase 163,741 , 298,577 and 361,875 shares of common stock were exercisable under and outside of the 2015 Plan and the 2007 Plan combined, at weighted average exercise prices of $45.94 , $32.15 , and $29.92 , respectively. Stock options generally expire after 10 years and vest over a 5 -year period. All stock option grants are approved by “outside directors” within the meaning of Internal Revenue Code Section 162(m). Stock Options Stock option activity for the years ended December 31, 2019 , 2018 and 2017 is summarized as follows: Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Life (In Years) Aggregate Intrinsic Value Options outstanding at January 1, 2017 413,858 $ 31.09 Granted — — Exercised (38,183 ) 29.03 Canceled — — Options outstanding at December 31, 2017 375,675 $ 31.30 Granted 400,000 75.03 Exercised (67,898 ) 22.68 Canceled — — Options outstanding at December 31, 2018 707,777 $ 56.84 Granted — — Exercised (189,436 ) 32.39 Canceled — — Options outstanding at December 31, 2019 518,341 $ 65.77 6.6 $14,480,395 Exercisable at December 31, 2019 163,741 $ 45.94 3.6 $7,821,139 Vested and expected to vest at December 31, 2019 401,776 $ 63.09 6.2 $12,301,167 For the years ended December 31, 2019 , 2018 and 2017 , J2 Global granted zero , 400,000 and zero options, respectively, to purchase shares of common stock pursuant to the 2015 Plan. These stock options vest 20% per year and expire 10 years from the date of grant. The per share weighted-average grant-date fair values of stock options granted during the period ended December 31, 2018 was $19.39 . There were no stock options granted during the years 2019 and 2017. The total intrinsic values of options exercised during the years ended December 31, 2019 , 2018 and 2017 was $10.4 million , $3.8 million , and $2.1 million , respectively. The total fair value of options vested during the years ended December 31, 2019 , 2018 and 2017 was $1.0 million , $0.1 million and $0.6 million , respectively. Cash received from options exercised under all share-based payment arrangements for the years ended December 31, 2019 , 2018 and 2017 was $5.3 million , $1.5 million and $1.1 million , respectively. The actual tax benefit realized for the tax deductions from option exercises under the share-based payment arrangements totaled $2.4 million , $0.9 million and $0.7 million , respectively, for the years ended December 31, 2019 , 2018 and 2017 . The following table summarizes information concerning outstanding and exercisable options as of December 31, 2019 : Options Outstanding Exercisable Options Range of Exercise Prices Number Outstanding December 31, 2019 Weighted Average Remaining Contractual Life Weighted Average Exercise Price Number Exercisable December 31, 2019 Weighted Average Exercise Price $22.92 41,530 0.35 years $ 22.92 41,530 $ 22.92 29.34 45,351 1.36 years 29.34 45,351 29.34 29.53 8,460 2.17 years 29.53 8,460 29.53 67.35 23,000 5.35 years 67.35 18,400 67.35 75.03 400,000 8.00 years 75.03 50,000 75.03 $22.92 - $75.03 518,341 6.59 years $ 65.77 163,741 $ 45.94 As discussed in Note 14, “Stockholders’ Equity”, the Company provided holders of J2 Series B Stock an exchange right in which J2 Series B Stock may be exchanged for J2 common stock during specified exchange periods. The Company determined that such exchange right represents a grant under the 2007 Plan for the year ended December 31, 2014, and accordingly, reduced the awards available under the 2007 Plan. At December 31, 2019 , there were 2,196,968 additional shares underlying options, shares of restricted stock and other share-based awards available for grant under the 2015 Plan, and no additional shares are available for grant under or outside of the 2007 Plan. The Company recognized $0.9 million , $0.9 million and $0.4 million of compensation expense related to stock options for the years ended December 31, 2019 , 2018 and 2017 , respectively. As of December 31, 2019 , there was $6.8 million of total unrecognized compensation expense related to nonvested share-based compensation options granted under the 2015 Plan and the 2007 Plan. That expense is expected to be recognized ratably over a weighted average period of 5.93 years (i.e., the remaining requisite service period). Fair Value Disclosure J2 Global uses the Black-Scholes option pricing model to calculate the fair value of each option grant. The expected volatility is based on historical volatility of the Company’s common stock. The Company estimates the expected term based upon the historical exercise behavior of our employees. The risk-free interest rate is based on U.S. Treasury zero-coupon issues with a term equal to the expected term of the option assumed at the date of grant. The Company uses an annualized dividend yield based upon the per share dividends declared by its Board of Directors. Estimated forfeiture rates were 13.9% , 11.8% and 14.3% as of December 31, 2019 , 2018 and 2017 , respectively. The weighted-average fair values of stock options granted have been estimated utilizing the following assumptions: Years ended December 31, 2019 2018 2017 Risk-free interest rate —% 2.4% —% Expected term (in years) 0.0 6.7 0.0 Dividend yield —% 2.2% —% Expected volatility —% 29.2% —% Weighted average volatility —% 29.2% —% Restricted Stock and Restricted Stock Units J2 Global has awarded restricted stock and restricted stock units to its Board of Directors and senior staff pursuant to the 2007 Plan and the 2015 Plan. Compensation expense resulting from restricted stock and restricted unit grants is measured at fair value on the date of grant and is recognized as share-based compensation expense over the applicable vesting period. Vesting periods are approximately one year for awards to members of the Company’s Board of Directors, five years for senior staff (excluding market-based awards discussed below) and eight years for the Chief Executive Officer. The Company granted 117,566 , 376,799 and 214,505 shares of restricted stock and restricted units (excluding awards with market conditions below) during the years ended December 31, 2019 , 2018 and 2017 , respectively. Restricted Stock - Awards with Market Conditions J2 Global has awarded certain key employees market-based restricted stock awards pursuant to the 2015 Plan. The market-based awards have vesting conditions that are based on specified stock price targets of the Company’s common stock. Market conditions were factored into the grant date fair value using a Monte Carlo valuation model, which utilized multiple input variables to determine the probability of the Company achieving the specified stock price targets with a 20-day and 30-day lookback (trading days). Stock-based compensation expense related to an award with a market condition will be recognized over the requisite service period using the graded-vesting method regardless of whether the market condition is satisfied, provided that the requisite service period has been completed. During the years ended December 31, 2019 , 2018 , and 2017 the Company awarded 74,051 , 473,501 , and 85,825 market-based restricted stock awards, respectively. The per share weighted average grant-date fair values of the market-based restricted stock awards granted during the years ended December 31, 2019 , 2018 and 2017 were $69.99 , $52.95 and $72.20 , respectively. The weighted-average fair values of market-based restricted stock awards granted have been estimated utilizing the following assumptions: December 31, 2019 December 31, 2018 December 31, 2017 Underlying stock price at valuation date $ 84.58 $ 82.11 $ 91.17 Expected volatility 28.3 % 28.4 % 29 % Risk-free interest rate 2.53 % 2.89 % 2.17 % The Company recognized $21.7 million , $26.4 million and $22.2 million , respectively of compensation expense related to its restricted stock, restricted stock units, and market-based restricted stock. As of December 31, 2019 , the Company had unrecognized share-based compensation cost of $46.1 million associated with these awards. This cost is expected to be recognized over a weighted-average period of 4.9 years for awards and 3.0 years for units. The total fair value of restricted stock and restricted stock units vested during the years ended December 31, 2019 , 2018 and 2017 was $12.7 million , $9.7 million and $15.1 million , respectively. The actual tax benefit realized for the tax deductions from the vesting of restricted stock awards and units totaled $2.4 million , $2.4 million and $2.3 million , respectively, for the years ended December 31, 2019 , 2018 and 2017 . In accordance with ASC 718, share-based compensation is recognized on dividends paid related to nonvested restricted stock not expected to vest, which amounted to approximately $0.1 million , $0.1 million and $0.1 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. Restricted stock award activity for the years ended December 31, 2019 , 2018 and 2017 is set forth below: Shares Weighted-Average Grant-Date Fair Value Nonvested at January 1, 2017 705,015 $ 41.40 Granted 289,230 61.34 Vested (381,411 ) 39.71 Canceled (7,268 ) 76.08 Nonvested at December 31, 2017 605,566 $ 51.57 Granted 830,256 63.55 Vested (157,972 ) 61.29 Canceled (70,839 ) 74.84 Nonvested at December 31, 2018 1,207,011 $ 64.82 Granted 187,773 79.00 Vested (172,884 ) 73.65 Canceled (116,841 ) 72.58 Nonvested at December 31, 2019 1,105,059 $ 64.76 Restricted stock unit activity for the years ended December 31, 2019 , 2018 and 2017 is set forth below: Number of Weighted-Average Aggregate Outstanding at January 1, 2017 51,950 Granted 11,100 Vested (16,370 ) Canceled (8,280 ) Outstanding at December 31, 2017 38,400 Granted 20,044 Vested (11,540 ) Canceled (5,673 ) Outstanding at December 31, 2018 41,231 Granted 3,844 Vested (12,343 ) Canceled (11,858 ) Outstanding at December 31, 2019 20,874 2.1 $ 1,956,103 Vested and expected to vest at December 31, 2019 15,903 1.6 $ 1,490,255 Employee Stock Purchase Plan (“ESPP”) In May of 2001, J2 Global established the J2 Global, Inc. 2001 Employee Stock Purchase Plan, as amended (the “Purchase Plan”), which provides for the issuance of a maximum of 2,000,000 shares of common stock. Under the Purchase Plan, eligible employees can have up to 15% of their earnings withheld, up to certain maximums, to be used to purchase shares of J2 Global’s common stock at certain plan-defined dates. The price of the common stock purchased under the Purchase Plan for the offering periods is equal to 95% of the fair market value of the common stock at the end of the offering period. On February 2, 2018, the Company approved an amendment to the Company’s Amended and Restated 2001 Employee Stock Purchase Plan, to be effective May 1, 2018, such that (i) the purchase price for each offering period shall be 85% of the lesser of the fair market value of a share of common stock of the Company (a “Share”) on the beginning or the end of the offering period, rather than 95% of the fair market value of a Share at the end of the offering period, and (ii) each offering period will be six months, rather than three months. J2 Global performed an analysis of the Amendment terms and determined that a plan provision exists which allows for the more favorable of two exercise prices, commonly referred to as a “look-back” feature. The purchase price discount and the look-back feature cause the Purchase Plan to be compensatory and the Company to recognize compensation expense. The compensation cost is recognized on a straight-line basis over the requisite service period. The Company recognized $1.3 million , $0.7 million and zero of compensation expense related to the Purchase Plan for the years ended December 31, 2019 , 2018 and 2017 , respectively. The Company used the Black-Scholes option pricing model to calculate the estimated fair value of the purchase right issued under the ESPP. The expected volatility is based on historical volatility of the Company’s common stock. The risk-free interest rate is based on U.S. Treasury zero-coupon issues with a term equal to the expected term of the option assumed at the date of grant. The Company uses an annualized dividend yield based upon the per share dividends declared by its Board of Directors. Estimated forfeiture rates were 5.80% , 1.96% and zero as of December 31, 2019 , 2018 , and 2017 , respectively. During 2019 , 2018 and 2017 , 66,413 , 33,262 and 3,283 shares, respectively were purchased under the Purchase Plan at price ranging from $62.04 to $73.47 per share during 2019. As of December 31, 2019 , 1,523,568 |
Defined Contribution 401(k) Sav
Defined Contribution 401(k) Savings Plan | 12 Months Ended |
Dec. 31, 2019 | |
Defined Contribution 401(k) Savings Plan [Abstract] | |
Defined Contribution 401(k) Savings Plan | Defined Contribution 401(k) Savings Plan J2 Global has several 401(k) Savings Plans that qualify under Section 401(k) of the Internal Revenue Code. Eligible employees may contribute a portion of their salary through payroll deductions, subject to certain limitations. The Company may make annual contributions at its sole discretion to these plans. For the years ended December 31, 2019 , 2018 and 2017 , the Company incurred expenses of $3.7 million , $3.6 million and $3.0 million , respectively, for contributions to these 401(k) Savings Plans. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share Reconciliation [Abstract] | |
Earnings Per Share | Earnings Per Share The components of basic and diluted earnings per share are as follows (in thousands, except share and per share data): Years Ended December 31, 2019 2018 2017 Numerator for basic and diluted net income per common share: Net income attributable to J2 Global, Inc. common shareholders $ 218,806 $ 128,687 $ 139,425 Net income available to participating securities (a) (3,496 ) (1,885 ) (1,792 ) Net income available to J2 Global, Inc. common shareholders $ 215,310 $ 126,802 $ 137,633 Denominator: Weighted-average outstanding shares of common stock 47,647,397 47,950,746 47,586,242 Dilutive effect of: Equity incentive plans 78,076 146,906 228,166 Convertible debt (b) 1,300,211 830,139 854,619 Common stock and common stock equivalents 49,025,684 48,927,791 48,669,027 Net income per share: Basic $ 4.52 $ 2.64 $ 2.89 Diluted $ 4.39 $ 2.59 $ 2.83 (a) Represents unvested share-based payment awards that contain certain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) (b) Represents the incremental shares issuable upon conversion of the 3.25% Convertible Notes due June 15, 2029 and 1.75% Convertible Notes due November 1, 2026 by applying the treasury stock method when the average stock price exceeds the conversion price of the Convertible Notes (see Note 10 - Long Term Debt) For the years ended December 31, 2019 , 2018 and 2017 , there were zero options outstanding, respectively, which were excluded from the computation of diluted earnings per share because the exercise prices were greater than the average market price of the common stock. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segments, Geographical Areas [Abstract] | |
Segment Information | Segment Information In accordance with ASC Topic 280, Segment Reporting: (Topic 280), the Company’s businesses are based on the organizational structure used by the chief operating decision maker (“CODM”) for making operating and investment decisions and for assessing performance. The CODM views the Company as two businesses: Cloud Services and Digital Media. However, in accordance with the aggregation criteria within ASC Topic 280, J2 Global’s operating segments have been aggregated into three reportable segments: (i) Fax and Martech (formerly Email Marketing); (ii) Voice, Backup, Security, and Consumer Privacy and Protection; and (iii) Digital Media. In connection with the Highwinds Capital, Inc. and Cloak Holdings, LLC acquisition in the second quarter of 2019 (see Note 4 - Business Acquisitions), the Company renamed its Voice, Backup and Security reportable segment to include its newly acquired consumer privacy and protection business, now the Voice, Backup, Security and Consumer Privacy and Protection segment. The Company’s Cloud Services business is driven primarily by subscription revenues that are relatively higher margin, stable and predictable from quarter to quarter with some seasonal weakness in the fourth quarter. The Cloud Services business also includes the results of our IP licensing business, which can vary dramatically in both revenues and profitability from period to period. The Company’s Digital Media business is driven primarily by advertising and subscription revenues, has relatively higher sales and marketing expense and has seasonal strength in the fourth quarter. The accounting policies of the businesses are the same as those described in Note 2 - Basis of Presentation and Summary of Significant Accounting Policies. The Company evaluates performance based on revenue, gross margin and profit or loss from operations before income taxes, not including nonrecurring gains and losses and foreign exchange gains and losses. Information on reportable segments and reconciliation to consolidated income from operations is as follows (in thousands): Years Ended December 31, 2019 2018 2017 Revenue by reportable segment: Fax and Martech $ 366,727 $ 360,479 $ 350,542 Voice, Backup, Security, and CPP 295,108 237,496 228,414 Cloud Services Total 661,835 597,975 578,956 Digital Media 710,511 609,374 538,939 Elimination of inter-segment revenues (300 ) (60 ) (57 ) Total segment revenues 1,372,046 1,207,289 1,117,838 Corporate (1) 8 6 — Total revenues 1,372,054 1,207,295 1,117,838 Gross profit by reportable segment: Fax and Martech 317,065 323,855 311,942 Voice, Backup, Security, and CPP 200,500 151,966 148,268 Cloud Services Total 517,565 475,821 460,210 Digital Media 617,458 530,455 485,365 Elimination of inter-segment gross profit (300 ) (60 ) (50 ) Total segment gross profit 1,134,723 1,006,216 945,525 Corporate (1) 8 5 — Total gross profit 1,134,731 1,006,221 945,525 Direct costs by reportable segment (2) : Fax and Martech 124,589 128,898 135,157 Voice, Backup, Security, and CPP 155,172 116,803 99,009 Cloud Services Total 279,761 245,701 234,166 Digital Media 550,834 489,019 437,297 Elimination of inter-segment direct costs (300 ) (60 ) (50 ) Total segment direct costs 830,295 734,660 671,413 Corporate (1) 27,356 27,281 28,404 Total direct costs (2) 857,651 761,941 699,817 Operating income by reportable segment: Fax and Martech 192,476 194,957 176,785 Voice, Backup, Security, and CPP 45,328 35,163 49,259 Cloud Services Total 237,804 230,120 226,044 Digital Media 66,624 41,436 48,068 Total segment operating income 304,428 271,556 274,112 Corporate (1) (27,348 ) (27,276 ) (28,404 ) Total income from operations $ 277,080 $ 244,280 $ 245,708 (1) Corporate includes costs associated with general and administrative and other expenses that are managed on a global basis and that are not directly attributable to any particular segment. In addition, in fiscal year 2018, the Company determined certain patent assets and related income and expenses associated with Advanced Messaging Technologies, Inc. should be reclassified from Cloud Services to Corporate. (2) Direct costs for each segment include other operating expenses that are directly attributable to the segment, such as employee compensation expense, local sales and marketing expenses, engineering and network operations expense, depreciation and amortization and other administrative expenses. The CODM does not use Balance Sheet and Cash Flow information in connection with operating and investment decisions other than as presented for Cloud Services and Digital Media. Accordingly, the following segment information is presented for Cloud Services and Digital Media. 2019 2018 Assets: Cloud Services $ 1,466,969 $ 1,047,245 Digital Media 1,561,024 1,455,620 Total assets from Cloud Services and Digital Media 3,027,993 2,502,865 Corporate (1) 477,853 57,965 Total assets $ 3,505,846 $ 2,560,830 2019 2018 2017 Capital expenditures: Cloud Services $ 21,826 $ 13,832 $ 7,031 Digital Media 48,736 42,547 32,564 Total capital expenditures from Cloud Services and Digital Media 70,562 56,379 39,595 Corporate (1) 26 — — Total capital expenditures $ 70,588 $ 56,379 $ 39,595 Depreciation and amortization: Cloud Services $ 80,970 $ 60,754 $ 68,436 Digital Media 148,575 122,843 93,605 Total depreciation and amortization from Cloud Services and Digital Media 229,545 183,597 162,041 Corporate (1) 2,487 3,577 — Total depreciation and amortization $ 232,032 $ 187,174 $ 162,041 (1) In fiscal year 2018, the Company determined certain patent assets and related income and expenses associated with Advanced Messaging Technologies, Inc. should be reclassified from Cloud Services to Corporate. J2 Global maintains operations in the U.S., Canada, Ireland, Japan and other countries. Geographic information about the U.S. and all other countries for the reporting periods is presented below. Such information attributes revenues based on markets where revenues are reported (in thousands). Years ended December 31, 2019 2018 2017 Revenues: United States $ 1,100,298 $ 924,051 $ 830,800 Canada 67,518 73,742 78,099 Ireland 59,009 69,291 74,430 All other countries 145,229 140,211 134,509 Total $ 1,372,054 $ 1,207,295 $ 1,117,838 December 31, December 31, Long-lived assets: United States $ 701,580 $ 530,785 All other countries 76,927 62,810 Total $ 778,507 $ 593,595 |
Supplemental Cash Flows Informa
Supplemental Cash Flows Information | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flows Information [Abstract] | |
Supplemental Cash Flows Information | Supplemental Cash Flows Information Cash paid for interest during the years ended December 31, 2019 , 2018 and 2017 was $55.4 million , $54.0 million and $35.8 million , respectively, substantially all of which related to interest on outstanding debt and foreign taxes. Cash paid for income taxes net of refunds received was $45.9 million , $37.6 million and $51.1 million during the years ended December 31, 2019 , 2018 and 2017 , respectively. During the years ended December 31, 2019 , 2018 and 2017 , J2 Global recorded the tax benefit from the exercise of stock options and restricted stock as a reduction of its income tax liability of $4.8 million , $3.3 million and $2.9 million , respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The following table summarizes the changes in accumulated balances of other comprehensive loss (income), net of tax, for the years ended December 31, 2019 , 2018 , and 2017 (in thousands): Unrealized Gains (Losses) on Investments Foreign Currency Translation Total Balance as of January 1, 2017 $ — $ (54,649 ) $ (54,649 ) Other comprehensive income before reclassifications — 25,559 25,559 Net current period other comprehensive income — 25,559 25,559 Balance as of December 31, 2017 $ — $ (29,090 ) $ (29,090 ) Other comprehensive loss before reclassifications (1,418 ) (15,471 ) (16,889 ) Net current period other comprehensive loss (1,418 ) (15,471 ) (16,889 ) Balance as of December 31, 2018 $ (1,418 ) $ (44,561 ) $ (45,979 ) Other comprehensive income (loss) before reclassifications 1,143 (1,626 ) (483 ) Net current period other comprehensive income (loss) 1,143 (1,626 ) (483 ) Balance as of December 31, 2019 $ (275 ) $ (46,187 ) $ (46,462 ) There were zero reclassifications out of accumulated other comprehensive loss (income) for the years ended December 31, 2019 , 2018 , and 2017 . |
Quarterly Results
Quarterly Results | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Results [Abstract] | |
Quarterly Results | Quarterly Results (unaudited) The following tables contain selected unaudited statement of income information for each quarter of 2019 and 2018 (in thousands, except share and per share data). J2 Global believes that the following information reflects all normal recurring adjustments necessary for a fair presentation of the information for the periods presented. The operating results for any quarter are not necessarily indicative of results for any future period. Year Ended December 31, 2019 Fourth Quarter Third Quarter Second Quarter First Quarter Revenues $ 405,588 $ 344,141 $ 322,432 $ 299,893 Gross profit 341,260 282,425 262,166 248,880 Net income (1) 123,023 30,745 32,589 32,449 Net income per common share: Basic $ 2.54 $ 0.63 $ 0.67 $ 0.67 Diluted $ 2.45 $ 0.62 $ 0.66 $ 0.66 Weighted average shares outstanding Basic 47,626,833 47,673,211 47,727,786 47,560,749 Diluted 49,425,395 49,064,272 49,102,879 48,509,181 Year Ended December 31, 2018 Fourth Third Second First Revenues $ 346,059 $ 292,724 $ 287,889 $ 280,623 Gross profit 290,097 243,507 240,140 232,478 Net income 50,614 30,723 28,479 18,871 Net income per common share: Basic $ 1.04 $ 0.63 $ 0.59 $ 0.39 Diluted $ 1.03 $ 0.61 $ 0.57 $ 0.38 Weighted average shares outstanding Basic 47,967,014 48,009,953 47,951,326 47,873,007 Diluted 48,505,023 49,279,217 49,218,521 48,706,717 (1) The increase in the Company’s net income in the fourth quarter of 2019 is primarily driven by the tax benefit recognized as a result of an intra-entity asset transfer (see Note 13 - Income Taxes). |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On February 10, 2020, the Company announced that it extended the Company’s share repurchase program set to expire February 20, 2020 by an additional year. |
Basis Of Presentation (Policy)
Basis Of Presentation (Policy) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | (a) Principles of Consolidation The accompanying consolidated financial statements include the accounts of J2 Global and its direct and indirect wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Use Of Estimates | (b) Use of Estimates The preparation of consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, including judgments about investment classifications and the reported amounts of net revenue and expenses during the reporting period. The Company believes that its most significant estimates are those related to revenue recognition, valuation and impairment of investments, its assessment of ownership interests as variable interest entities and the related determination of consolidation, share-based compensation expense, fair value of assets acquired and liabilities assumed in connection with business combinations, long-lived and intangible asset impairment, contingent consideration, income taxes and contingencies and allowance for doubtful accounts. On an ongoing basis, management evaluates its estimates based on historical experience and on various other factors that the Company believes to be reasonable under the circumstances. Actual results could materially differ from those estimates. |
Allowances For Doubtful Accounts | (c) Allowances for Doubtful Accounts J2 Global reserves for receivables it may not be able to collect. The reserves for the Company’s Cloud Services business are typically driven by the volume of credit card declines and past due invoices and are based on historical experience as well as an evaluation of current market conditions. These reserves for the Company’s Digital Media business are typically driven by past due invoices based on historical experience. On an ongoing basis, management evaluates the adequacy of these reserves. |
Revenue Recognition | (d) Revenue Recognition Accounting Standard Codification (“ASC”) Topic 605, Revenue Recognition (“Topic 605”) Prior to the transition to ASC 606 on January 1, 2018, J2 Global recognized revenue when persuasive evidence of an arrangement existed, services have been provided, the sales price was fixed and determinable and collection was probable. Principal vs. Agent The Company determined whether revenue should have been reported on a gross or net basis by assessing whether the Company is acting as the principal or an agent in the transaction. If the Company was acting as the principal in a transaction, the Company reported revenue on a gross basis. If the Company was acting as an agent in a transaction, the Company reported revenue on a net basis. In determining whether the Company acted as the principal or an agent, the Company followed the accounting guidance under Topic 605 for principal-agent considerations and placed the most weight on three factors: whether or not the Company (i) was the primary obligor in the arrangement, (ii) had latitude in determining pricing and (iii) bore credit risk. ASC Topic 606, Revenue from Contracts with Customers (“Topic 606”, “ASC 606” or the “new revenue standard”) Following the transition to ASC 606, J2 Global recognizes revenue when the Company satisfies its obligation by transferring control of the goods or services to its customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services (see Note 3 - Revenues). Principal vs. Agent The Company determines whether revenue should be reported on a gross or net basis by assessing whether the Company is acting as the principal or an agent in the transaction. If the Company is acting as the principal in a transaction, the Company reports revenue on a gross basis. If the Company is acting as an agent in a transaction, the Company reports revenue on a net basis. In determining whether the Company acts as the principal or an agent, the Company follows the accounting guidance under Topic 606 for principal-agent considerations and assesses: (i) if another party is involved in providing goods or services to the customer and (ii) whether the Company controls the specified goods or services prior to transferring control to the customer. Sales Taxes The Company has made an accounting policy election to exclude from the measurement of the transaction price all taxes assessed by a governmental authority that are (i) both imposed on and concurrent with a specific revenue-producing transaction and (ii) collected by the Company from a customer. |
Fair Value Measurements | (e) Fair Value Measurements J2 Global complies with the provisions of Financial Accounting Standards Board (“FASB”) ASC Topic No. 820, Fair Value Measurements and Disclosures (“ASC 820”), in measuring fair value and in disclosing fair value measurements. ASC 820 provides a framework for measuring fair value and expands the disclosures required for fair value measurements of financial and non-financial assets and liabilities. As of December 31, 2019 , the carrying values of cash and cash equivalents, accounts receivable, interest receivable, accounts payable, accrued expenses, interest payable, customer deposits and long-term debt are reflected in the financial statements at cost. With the exception of certain investments and long-term debt, cost approximates fair value due to the short-term nature of such instruments. The fair value of the Company’s outstanding debt was determined using the quoted market prices of debt instruments with similar terms and maturities when available. As of the same dates, the carrying value of other long-term liabilities approximated fair value as the related interest rates approximate rates currently available to J2 Global. |
Cash and Cash Equivalents, Policy [Policy Text Block] | (f) Cash and Cash Equivalents J2 Global considers cash equivalents to be only those investments that are highly liquid, readily convertible to cash and with maturities of three months or less at the purchase date. |
Investment, Policy [Policy Text Block] | (g) Investments J2 Global accounts for its investments in debt securities in accordance with ASC Topic No. 320, Investments - Debt Securities (“ASC 320”). Debt investments are typically comprised of corporate debt securities. J2 Global determines the appropriate classification of its investments at the time of acquisition and evaluates such determination at each balance sheet date. Trading securities are those investments that the Company intends to sell within a few hours or days and are carried at fair value, with unrealized gains and losses included in investment income. Available-for-sale debt securities are those investments J2 Global does not intend to hold to maturity and can be sold. Available-for-sale securities are carried at fair value with unrealized gains and losses included in other comprehensive income. Held-to-maturity securities are those investments which the Company has the ability and intent to hold until maturity and are recorded at amortized cost. All debt securities are accounted for on a specific identification basis. The Company accounts for its investments in equity securities in accordance with ASC Topic No. 321, Investments - Equity Securities (“ASC 321”) which requires the accounting for equity investments (other than those accounted for using the equity method of accounting) generally be measured at fair value for equity securities with readily determinable fair values. For equity securities without a readily determinable fair value that are not accounted for by the equity method, the Company measures the equity security using cost, less impairment, if any, and plus or minus observable price changes arising from orderly transactions in the same or similar investment from the same issuer. Any unrealized gains or losses will be reported in current earnings (see Note 5 - Investments). (h) Variable Interest Entities (“VIE”) A VIE requires consolidation by the entity’s primary beneficiary. The Company evaluates its investments in entities in which it is involved to determine if the entity is a VIE and if so, whether it holds a variable interest and is the primary beneficiary. The Company has determined that it holds a variable interest in its investment as a limited partner in the OCV Fund I, LP (“OCV Fund”, “OCV” or the “Fund”). In determining whether the Company is deemed to be the primary beneficiary of the VIE, both of the following characteristics must be present: a) the Company has the power to direct the activities of the VIE that most significantly impacts the VIEs economic performance (the power criterion); and b) the Company has the obligation to absorb losses of the VIE, or the right to receive benefits of the VIE, that could potentially be significant to the VIE (the economic criterion). The Company has concluded that, as a limited partner, although the obligations to absorb losses or benefit from the gains is not insignificant, the Company does not have “power” over OCV because it does not have the ability to direct the significant decisions which impact the economics of OCV. J2 believes that the OCV general partner, as a single decision maker, holds the ability to make the decisions about the activities that most significantly impact the OCV Fund’s economic performance. As a result, the Company has concluded that it will not consolidate OCV, as it is not the primary beneficiary of the OCV Fund, and will account for this investment under the equity-method of accounting (see Note 5 - Investments). OCV qualifies as an investment company under ASC 946 - Financial Services, Investment Companies (“ASC 946”). Under ASC Topic 323, Investments - Equity Method and Joint Ventures, an investor that holds investments that qualify for specialized industry accounting for investment companies in accordance with ASC 946 should record its share of the earnings or losses, realized or unrealized, as reported by its equity method investees in the consolidated statements of income. The Company recognizes its equity in the net earnings or losses relating to the investment in OCV on a one-quarter lag due to the timing and availability of financial information from OCV. If the Company becomes aware of a significant decline in value that is other-than-temporary, the loss will be recorded in the period in which the Company identifies the decline. |
Debt, Policy [Policy Text Block] | (i) Debt Issuance Costs and Debt Discount J2 Global capitalizes costs incurred with borrowing and issuance of debt securities and records debt issuance costs and discounts as a reduction to the debt amount. These costs and discounts are amortized and included in interest expense over the life of the borrowing using the effective interest method. Debt issuance costs associated with entering into a $200.0 million credit facility (the “MUFG Credit Facility”) with MUFG Union Bank (see Note 10 - Long-Term Debt), a credit facility that was subsequently reduced to $100.0 million , are recorded on the consolidated balance sheets as an asset and amortized and included in interest expense over the contractual term of the credit agreement. |
Derivatives, Policy [Policy Text Block] | (j) Derivative Instruments J2 Global currently holds an embedded derivative instrument related to contingent interest in connection with its 3.25% Convertible Notes issued on June 10, 2014. This embedded derivative instrument is carried at fair value with changes recorded to interest expense (see Note 7 - Fair Value Measurements). |
Concentration Of Credit Risk | (k) Concentration of Credit Risk All of the Company’s cash, cash equivalents and marketable securities are invested at major financial institutions primarily within the United States, United Kingdom and Ireland. These institutions are required to invest the Company’s cash in accordance with the Company’s investment policy with the principal objectives being preservation of capital, fulfillment of liquidity needs and above market returns commensurate with preservation of capital. The Company’s investment policy also requires that investments in marketable securities be in only highly rated instruments, with limitations on investing in securities of any single issuer. However, these investments are not insured against the possibility of a total or near complete loss of earnings or principal and are inherently subject to the credit risk related to the continued credit worthiness of the underlying issuer and general credit market risks. At December 31, 2019 , the Company’s cash and cash equivalents were maintained in accounts in qualifying financial institutions that are insured up to the limit determined by the applicable governmental agency. These institutions are primarily in the United States and United Kingdom, however, the Company has accounts within several other countries including Australia, Austria, China, Denmark, France, Germany, Italy, Japan, New Zealand, Netherlands, Norway, and Sweden. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | (l) Foreign Currency Some of J2 Global’s foreign subsidiaries use the local currency of their respective countries as their functional currency. Assets and liabilities are translated at exchange rates prevailing at the balance sheet dates. Revenues, costs and expenses are translated into U.S. Dollars at average exchange rates for the period. Gains and losses resulting from translation are recorded as a component of accumulated other comprehensive income/(loss). Net translation (loss)/gain was $(1.6) million , $(15.5) million and $25.6 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Realized gains and losses from foreign currency transactions are recognized within other expense (income), net. Foreign exchange losses amounted to $4.0 million , $2.3 million and $5.8 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. |
Property, Plant and Equipment, Policy [Policy Text Block] | (m) Property and Equipment Property and equipment are stated at cost. Equipment under finance leases is stated at the present value of the minimum lease payments. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. The estimated useful lives of property and equipment range from 1 to 10 years. Fixtures, which are comprised primarily of leasehold improvements and equipment under finance leases, are amortized on a straight-line basis over their estimated useful lives or for leasehold improvements, the related lease term, if less. The Company has capitalized certain internal-use software and website development costs which are included in property and equipment. The estimated useful life of costs capitalized is evaluated for each specific project and ranges from 1 to 5 years. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | (n) Impairment or Disposal of Long-Lived Assets J2 Global accounts for long-lived assets, which include property and equipment and identifiable intangible assets with finite useful lives (subject to amortization), in accordance with the provisions of FASB ASC Topic No. 360, Property, Plant, and Equipment (“ASC 360”), which requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability is measured by comparing the carrying amount of an asset to the expected undiscounted future net cash flows generated by the asset. If it is determined that the asset may not be recoverable, and if the carrying amount of an asset exceeds its estimated fair value, an impairment charge is recognized to the extent of the difference. J2 Global assessed whether events or changes in circumstances have occurred that potentially indicate the carrying amount of long-lived assets may not be recoverable. No impairment was recorded in fiscal year 2019 , 2018 or 2017 . The Company classifies its long-lived assets to be sold as held for sale in the period (i) it has approved and committed to a plan to sell the asset, (ii) the asset is available for immediate sale in its present condition, (iii) an active program to locate a buyer and other actions required to sell the asset have been initiated, (iv) the sale of the asset is probable, (v) the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value, and (vi) it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. The Company initially measures a long-lived asset that is classified as held for sale at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Conversely, gains are not recognized on the sale of a long-lived asset until the date of sale. Upon designation as an asset held for sale, the Company stops recording depreciation expense on the asset. The Company assesses the fair value of a long-lived asset less any costs to sell at each reporting period and until the asset is no longer classified as held for sale. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | (o) Business Combinations and Valuation of Goodwill and Intangible Assets J2 Global applies the acquisition method of accounting for business combinations in accordance with GAAP, which requires the Company to make use of estimates and judgments to allocate the purchase price paid for acquisitions to the fair value of the assets, including identifiable intangible assets, and liabilities acquired. Such estimates may be based on significant unobservable inputs and assumptions such as, but not limited to, revenue growth rates, gross margins, customer attrition rates, royalty rates, discount rates and terminal growth rate assumptions. J2 Global uses established valuation techniques and may engage reputable valuation specialists to assist with the valuations. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. Fair values are subject to refinement for up to one year after the closing date of an acquisition as information relative to closing date fair values becomes available. Upon the conclusion of the measurement period, any subsequent adjustments are recorded to earnings. Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in a business combination. Intangible assets resulting from the acquisitions of entities accounted for using the acquisition method of accounting are recorded at the estimated fair value of the assets acquired. Identifiable intangible assets are comprised of purchased customer relationships, trademarks and trade names, developed technologies and other intangible assets. Intangible assets subject to amortization are amortized over the period of estimated economic benefit ranging from 1 to 20 years. In accordance with FASB ASC Topic No. 350, Intangibles - Goodwill and Other (“ASC 350”), goodwill and other intangible assets with indefinite lives are not amortized but tested annually for impairment or more frequently if J2 Global believes indicators of impairment exist. In connection with the annual impairment test for goodwill, the Company has the option to perform a qualitative assessment in determining whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company determines that it was more likely than not that the fair value of the reporting unit is less than its carrying amount, then it performs the impairment test upon goodwill. The impairment test involves comparing the fair values of the applicable reporting units with their aggregate carrying values, including goodwill. The Company generally determines the fair value of its reporting units using the income approach methodology of valuation. If the carrying value of a reporting unit exceeds the reporting unit’s fair value, an impairment loss is recognized for the difference. In accordance with ASC 350, the Company performed the annual impairment test for goodwill for fiscal year 2019 using a qualitative assessment primarily taking into consideration macroeconomic, industry and market conditions, overall financial performance and any other relevant company-specific events. In addition, it performed a quantitative assessment for its data backup reporting unit for which no impairment was found. The Company performed the annual impairment test for intangible assets with indefinite lives for fiscal 2019 using a qualitative assessment primarily taking into consideration macroeconomic, industry and market conditions, overall financial performance and any other relevant company-specific events. J2 Global concluded that there were no impairments in 2019 , 2018 and 2017 |
Business Combinations Policy [Policy Text Block] | (p) Contingent Consideration J2 Global measures the contingent earn-out liabilities in connection with acquisitions at fair value on a recurring basis using significant unobservable inputs classified within Level 3 of the fair value hierarchy (see Note 7 - Fair Value Measurements). The Company may use various valuation techniques depending on the terms and conditions of the contingent consideration including a Monte-Carlo simulation. This simulation uses a probability distribution for each significant input to produce hundreds or thousands of possible outcomes and the results are analyzed to determine probabilities of different outcomes occurring. Significant increases or decreases to these inputs in isolation would result in a significantly higher or lower liability with a higher liability capped by the contractual maximum of the contingent earn-out obligation. Ultimately, the liability will be equivalent to the amount paid, and the difference between the fair value estimate and amount paid will be recorded in earnings. The amount paid that is less than or equal to the liability on the acquisition date is reflected as cash used in financing activities in our consolidated statements of cash flows. Any amount paid in excess of the liability on the acquisition date is reflected as cash used in operating activities. J2 Global reviews and re-assesses the estimated fair value of contingent consideration on a quarterly basis, and the updated fair value could be materially different from the initial estimates or prior amounts. Changes in the estimated fair value of our contingent earn-out liabilities are reported in operating income. Adjustments to the estimated fair value related to changes in all other unobservable inputs are reported in operating income. |
Self Insurance Reserve [Policy Text Block] | (q) Self-Insurance Program J2 Global provides health and dental insurance plans to certain of its employees through a self-insurance structure. The Company has secured reinsurance in the form of a two tiered stop-loss coverage that limits the exposure arising from any claims made. Self-insurance claims filed and claims incurred but not reported are accrued based on management’s estimate of the discounted ultimate costs for self-insured claims incurred using actuarial assumptions followed in the insurance industry and historical experience. Although management believes it has the ability to reasonably estimate losses related to claims, it is possible that actual results could differ from recorded self-insurance liabilities. |
Income Taxes | (r) Income Taxes J2 Global’s income is subject to taxation in both the U.S. and numerous foreign jurisdictions. Significant judgment is required in evaluating the Company’s tax positions and determining its provision for income taxes. During the ordinary course of business, there are many transactions and calculations for which the ultimate tax determination is uncertain. J2 Global establishes reserves for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. These reserves for tax contingencies are established when the Company believes that certain positions might be challenged despite the Company’s belief that its tax return positions are fully supportable. J2 Global adjusts these reserves in light of changing facts and circumstances, such as the outcome of a tax audit or lapse of a statute of limitations. The provision for income taxes includes the impact of reserve provisions and changes to reserves that are considered appropriate. J2 Global accounts for income taxes in accordance with FASB ASC Topic No. 740, Income Taxes (“ASC 740”), which requires that deferred tax assets and liabilities be recognized using enacted tax rates for the effect of temporary differences between the book and tax basis of recorded assets and liabilities. ASC 740 also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some or all of the net deferred tax assets will not be realized. The valuation allowance is reviewed quarterly based upon the facts and circumstances known at the time. In assessing this valuation allowance, J2 Global reviews historical and future expected operating results and other factors, including its recent cumulative earnings experience, expectations of future taxable income by taxing jurisdiction and the carryforward periods available for tax reporting purposes, to determine whether it is more likely than not that deferred tax assets are realizable. ASC 740 provides guidance on the minimum threshold that an uncertain income tax benefit is required to meet before it can be recognized in the financial statements and applies to all income tax positions taken by a company. ASC 740 contains a two-step approach to recognizing and measuring uncertain income tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. If it is not more likely than not that the benefit will be sustained on its technical merits, no benefit will be recorded. Uncertain income tax positions that relate only to timing of when an item is included on a tax return are considered to have met the recognition threshold. J2 Global recognized accrued interest and penalties related to uncertain income tax positions in income tax expense on its consolidated statements of income. |
Share-based Payment Arrangement [Policy Text Block] | (s) Share-Based Compensation J2 Global accounts for share-based awards to employees and non-employees in accordance with the provisions of FASB ASC Topic No. 718, Compensation - Stock Compensation (“ASC 718”). Accordingly, J2 Global measures share-based compensation expense at the grant date, based on the fair value of the award, and recognizes the expense over the employee’s requisite service period using the straight-line method. The measurement of share-based compensation expense is based on several criteria, including but not limited to the valuation model used and associated input factors, such as expected term of the award, stock price volatility, risk free interest rate, dividend rate and award cancellation rate. These inputs are subjective and are determined using management’s judgment. If differences arise between the assumptions used in determining share-based compensation expense and the actual factors, which become known over time, J2 Global may change the input factors used in determining future share-based compensation expense. Any such changes could materially impact the Company’s results of operations in the period in which the changes are made and in periods thereafter. The Company estimates the expected term based upon the historical exercise behavior of our employees. |
Earnings Per Share, Policy [Policy Text Block] | (t) Earnings Per Common Share (“EPS”) EPS is calculated pursuant to the two-class method as defined in ASC Topic No. 260, Earnings per Share (“ASC 260”), which specifies that all outstanding unvested share-based payment awards that contain rights to nonforfeitable dividends or dividend equivalents are considered participating securities and should be included in the computation of EPS pursuant to the two-class method. Basic EPS is calculated by dividing net distributed and undistributed earnings allocated to common shareholders, excluding participating securities, by the weighted-average number of common shares outstanding. The Company’s participating securities consist of its unvested share-based payment awards that contain rights to nonforfeitable dividends or dividend equivalents. Diluted EPS includes the determinants of basic EPS and, in addition, reflects the impact of other potentially dilutive shares outstanding during the period. The dilutive effect of participating securities is calculated under the more dilutive of either the treasury method or the two-class method. |
Research and Development Expense, Policy [Policy Text Block] | (u) Research, Development and Engineering |
Segment Reporting, Policy [Policy Text Block] | (v) Segment Reporting FASB ASC Topic No. 280, Segment Reporting (“ASC 280”), establishes standards for the way that public business enterprises report information about operating segments in their annual consolidated financial statements and requires that those enterprises report selected information about operating segments in interim financial reports. ASC 280 also establishes standards for related disclosures about products and services, geographic areas and major customers. The Company’s business segments are based on the organization structure used by the chief operating decision maker for making operating and investment decisions and for assessing performance. The chief operating decision maker views the Company in two businesses: Cloud Services and Digital Media. However, in accordance with the aggregation criteria within ASC Topic 280, J2 Global’s operating segments have been aggregated into three reportable segments: (i) Fax and Martech (formerly Email Marketing); (ii) Voice, Backup, Security, and Consumer Privacy and Protection; and (iii) Digital Media. |
Advertising Cost [Policy Text Block] | (w) Advertising Costs Advertising costs are expensed as incurred. Advertising costs for the years ended December 31, 2019 , 2018 and 2017 was $158.2 million , $149.7 million and $143.3 million , respectively. |
New Accounting Pronouncements, Policy [Policy Text Block] | (x) Recent Accounting Pronouncements In February 2016, the FASB issued Accounting Standard Update (“ASU”) No. 2016-02, Leases. This ASU establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. This ASU and all the related amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases. This ASU is meant to clarify the guidance in ASU No. 2016-02, Leases. This ASU does not change the core principle of the guidance in Topic 842. Instead, the amendments provide clarifying guidance in a few narrow areas. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements. This ASU provides another transition method for entities who have not yet adopted the new leasing standard by allowing entities to initially apply the new standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. In addition, this ASU provides a practical expedient to lessors to not separate nonlease components from the associated lease components similar to the expedient that is afforded to lessees. However, the lessor practical expedient is limited to circumstances in which the nonlease component or components otherwise would be accounted for under the new revenue guidance and both (1) the timing and pattern of transfer are the same for the nonlease component(s) and associated lease component and (2) the lease component, if accounted for separately, would be classified as an operating lease. In December 2018, the FASB issued ASU No. 2018-20, Leases (Topic 842): Narrow-Scope Improvements for Lessors. This ASU amends guidance related to sales taxes and other similar taxes collected from lessees, certain lessor costs, and recognition of variable payments for contracts with lease and nonlease components. The ASU provides for an accounting policy election for lessors similar to that provided in ASU 2016-12; it clarifies that costs excluded from the consideration in a contract that are paid directly to a third party by a lessor and reimbursed by the lessee are lessor costs to be accounted for as vendor payments; requires lessors to exclude from variable payments and, thus from lease revenue, lessor costs paid by a lessee directly to a third party; and clarifies the accounting by lessors for variable payments that relate to both a lease component and a nonlease component. The Company has adopted the new lease standard and related amendments in the first quarter of 2019 using the optional transition method. Results for reporting periods beginning after the adoption date are presented under Topic 842, while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historic accounting under ASC 840 (see Note 11 - Leases). In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments in this ASU replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This ASU is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019. In November 2018, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses. The amendments in this ASU align the implementation date for nonpublic entities’ annual financial statements with the implementation date for their interim financial statements. In addition, the amendment clarifies that receivables arising from operating leases are not within the scope of Subtopic 326-20; instead impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842: Leases. In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825 Financial Instruments. The amendments in this ASU further clarify certain aspects of ASU No. 2016-13. In May 2019, the FASB issued ASU No. 2019-05, Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief. The amendments in this ASU provide transition relief for ASU No. 2016-13 by providing an option to irrevocably elect the fair value option for certain financial assets measured at an amortized cost basis. In November 2019, the FASB issued ASU No. 2019-10, Financial Instruments - Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates. This ASU clarifies the effective dates of each related standards update and staggers such dates among filers and other types of entities. Also in November 2019, the FASB issued ASU No. 2019-11, Codification Improvements to Topic 326, Financial Instruments - Credit Losses. This ASU clarifies or addresses certain aspects of Update 2016-13. Specifically, it addresses (1) expected recoveries for purchased financial assets with credit deterioration; (2) transition relief for troubled debt restructuring; (3) disclosures related to accrued interest variables; (4) financial assets secured by collateral maintenance provisions; and (6) conforming Amendment to Subtopic 805-20. Each of the ASUs previously mentioned are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company expects to adopt these ASUs January 1, 2020 using the modified retrospective method and does not expect the adoption to have a material impact on its financial statements and related disclosures. The Company continues to review the analysis performed to determine the effects of adoption and believes the most significant change relates to its available-for-sale debt securities. In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments in this ASU allow reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the U.S. federal tax legislation, the Tax Cuts and Jobs Act of 2017 (“2017 Tax Act”). Consequently, the amendments eliminate the stranded tax effects resulting from the 2017 Tax Act and will improve the usefulness of information reported to financial statement users. However, because the amendments only relate to the reclassification of the income tax effects of the 2017 Tax Act, the underlying guidance that requires that the effect of a change in tax laws or rates to be included in income from continuing operations is not affected. This ASU is effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted and should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the 2017 Tax Act is recognized. The Company has adopted this ASU in the first quarter of 2019 and has determined that there is no impact on its financial statements and related disclosures. In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. The amendments in this ASU expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The amendments also clarify that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under Topic 606, Revenue from Contracts with Customers. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. The Company has adopted this ASU on a prospective basis in the first quarter of 2019 and has determined there to be no impact on its financial statements and related disclosures. In July 2018, the FASB issued ASU No. 2018-09, Codification Improvements. The amendments in this ASU clarify certain aspects of the guidance related to: reporting comprehensive income, debt modification and extinguishment, income taxes related to stock compensation, income taxes related to business combinations, derivatives and hedging, fair value measurements, brokers and dealers liabilities, and plan accounting. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company has adopted this ASU on a modified-retrospective basis in the first quarter of 2019 and has determined there to be no impact on its financial statements and related disclosures. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The amendments in this ASU remove, add, and modify certain disclosures. The ASU removes the following disclosure requirements from Topic 820: (1) the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy; (2) the policy for timing of transfers between levels; (3) the valuation process for Level 3 fair value measurements; and (4) certain other requirements for nonpublic entities. The ASU adds the following disclosure requirements: (1) the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and (2) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, disclosure of other quantitative information may be more appropriate if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. The ASU modifies disclosure requirements in Topic 820 relating to timing of liquidation of an investee’s assets, the disclosure of the date when restrictions from redemption might lapse, the intention of the measurement uncertainty disclosure, and certain other requirements for nonpublic entities. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company is currently evaluating the effect of this ASU on its financial statements and related disclosures. In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The amendments in this ASU align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software). The amendments in this ASU require an entity (customer) in a hosting arrangement that is a service to (1) determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense; (2) expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement; (3) apply the existing impairment guidance to the capitalized implementation costs as if the costs were long-lived assets; (4) present the expense related to the capitalized implementation costs in the same line item in the statement of income as the fees associated with the hosting element (service) of the arrangement and classify payments for capitalized implementation costs in the statement of cash flows in the same manner as payments made for fees associated with the hosting arrangements; and (5) present the capitalized implementation costs in the statement of financial position in the same line item that a prepayment for the fees of the associated hosting arrangement would be presented. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company has adopted this ASU on a prospective basis in the fourth quarter of 2019 and has determined there to not be a material impact on its financial statements. The Company has hosting arrangements that are service contracts related to the implementation of various internally-used software solutions. The deferred implementation costs are classified as other assets on the consolidated balance sheet and the amortization is classified as general and administrative expenses on the consolidated statement of income. In July 2019, the FASB issued ASU No. 2019-07, Codification Updates to SEC Sections: Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification, and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization, and Miscellaneous Updates. This ASU is effective upon release. The Company has adopted this ASU on a prospective basis in the third quarter of 2019 and has determined there to be no impact on its financial statements and related disclosures. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments in this ASU simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve the consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted. The Company is currently evaluating the effect of this ASU on its financial statements and related disclosures. In January 2020, the FASB issued ASU No. 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815. The amendments in this ASU clarify certain interactions between the guidance to account for certain equity securities under Topic 321, the guidance to account for investments under the equity method of accounting in Topic 323, and the accounting for certain forward contracts and purchased options under Topic 815. This ASU identifies two main areas for improvement (1) accounting for certain equity securities upon the application or discontinuation of the equity method of accounting and (2) scope considerations for forward contracts and purchased options on certain securities. The amendment states, as it is related to the first area of improvement, that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting for the purposes of applying the measurement alternative in accordance with Topic 321 immediately before applying or upon discontinuing the equity method. The amendment also states, as it is related to forward contracts and purchased options on certain securities, an entity should consider certain criteria to determine the accounting for those forward contracts and purchased options. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Company is currently evaluating the effect of this ASU on its financial statements and related disclosures. |
Comparability of Prior Year Financial Data, Policy [Policy Text Block] | (y) Reclassifications Certain prior year reported amounts have been reclassified to conform with the 2019 presentation. |
Revenues Disaggregation of Reve
Revenues Disaggregation of Revenue (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Revenues from external customers classified by revenue source are as follows (in thousands): Years ended December 31, Digital Media 2019 2018 2017 Advertising $ 515,702 $ 468,325 $ 455,647 Subscription 185,559 138,689 70,794 Other 9,250 2,360 12,498 Total Digital Media revenues $ 710,511 $ 609,374 $ 538,939 Cloud Services Subscription $ 660,814 $ 597,281 $ 574,197 Other 1,021 694 4,759 Total Cloud Services revenues $ 661,835 $ 597,975 $ 578,956 Corporate $ 8 $ 6 $ — Elimination of inter-business revenues (300 ) (60 ) (57 ) Total Revenues $ 1,372,054 $ 1,207,295 $ 1,117,838 Timing of revenue recognition Point in time $ 32,983 $ 4,752 $ 22,559 Over time 1,339,071 1,202,543 1,095,279 Total $ 1,372,054 $ 1,207,295 $ 1,117,838 |
Business Acquisition (Tables)
Business Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following table summarizes the allocation of the purchase consideration for all 2019 acquisitions (in thousands): Assets and Liabilities Valuation Accounts receivable $ 22,796 Prepaid expenses and other current assets 4,528 Property and equipment 4,625 Operating lease right of use asset 4,982 Trade names 10,773 Customer relationships 123,611 Goodwill 253,096 Trademarks 32,540 Other intangibles 48,446 Other long-term assets 660 Accounts payables and accrued expenses (31,292 ) Other current liabilities (516 ) Deferred revenue (27,953 ) Operating lease liabilities, current (1,768 ) Operating lease liabilities, noncurrent (3,215 ) Income taxes payable (762 ) Liability for uncertain tax positions (170 ) Deferred tax liability (10,229 ) Other long-term liabilities (635 ) Total $ 429,517 The following table summarizes the allocation of the purchase consideration for all 2018 acquisitions (in thousands): Assets and Liabilities Valuation Cash (1) $ 15,532 Accounts receivable 11,321 Prepaid expenses and other current assets 3,480 Property and equipment 4,755 Trade names 33,750 Customer relationships 66,516 Goodwill 194,282 Trademarks 3,285 Other intangibles 84,907 Other long-term assets 341 Deferred tax asset 821 Accounts payables and accrued expenses (10,864 ) Deferred revenue (37,113 ) Finance lease (956 ) Income taxes payable (1,458 ) Deferred tax liability (22,990 ) Other long-term liabilities (5,410 ) Total $ 340,199 The following table summarizes the allocation of the purchase consideration for all 2017 acquisitions (in thousands): Assets and Liabilities Valuation Accounts receivable $ 14,130 Prepaid expenses and other current assets 10,243 Property and equipment 6,411 Trade names 20,610 Customer relationships 61,307 Goodwill 121,827 Trademarks 1,373 Other intangibles 36,998 Deferred tax asset 405 Accounts payables and accrued expenses (27,995 ) Deferred revenue (11,853 ) Deferred tax liability (29,534 ) Total $ 203,922 |
Business Acquisition, Pro Forma Information [Table Text Block] | The supplemental information on an unaudited pro forma financial basis presents the combined results of J2 Global and its 2019 acquisitions as if each acquisition had occurred on January 1, 2018 (in thousands, except per share amounts): Year ended December 31, 2019 December 31, 2018 (unaudited) (unaudited) Revenues $ 1,474,132 $ 1,427,914 Net income $ 211,303 $ 104,710 EPS - Basic $ 4.36 $ 2.15 EPS - Diluted $ 4.24 $ 2.11 The supplemental information on an unaudited pro forma financial basis presents the combined results of J2 Global and its 2018 acquisitions as if each acquisition had occurred on January 1, 2017 (in thousands, except per share amounts): Year ended December 31, 2018 December 31, 2017 (unaudited) (unaudited) Revenues $ 1,264,544 $ 1,218,530 Net income $ 121,727 $ 123,378 EPS - Basic $ 2.50 $ 2.56 EPS - Diluted $ 2.45 $ 2.50 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments [Abstract] | |
Schedule of Cost Method Investments [Table Text Block] | The following table summarizes the gross unrealized losses and estimated fair values for the Company’s securities without a readily determinable fair value (in thousands): Cost Impairment Adjustments Reported Amount December 31, 2019 Equity securities $ 34,977 $ (4,164 ) $ (3,678 ) $ 27,135 Total $ 34,977 $ (4,164 ) $ (3,678 ) $ 27,135 December 31, 2018 Equity securities $ 34,977 $ — $ (3,678 ) $ 31,299 Total $ 34,977 $ — $ (3,678 ) $ 31,299 |
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | The following table summarizes the gross unrealized gains and losses and fair values for investments classified as available-for-sale (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2019 Corporate debt securities $ 23,256 $ 112 $ (698 ) $ 22,670 Total $ 23,256 $ 112 $ (698 ) $ 22,670 December 31, 2018 Corporate debt securities $ 23,256 $ 21 $ (1,899 ) $ 21,378 Total $ 23,256 $ 21 $ (1,899 ) $ 21,378 |
Investments Classified by Contractual Maturity Date [Table Text Block] | The following table summarizes J2 Global’s corporate debt securities designated as available-for-sale, classified by the contractual maturity date of the security (in thousands): December 31, 2019 December 31, 2018 Due within 1 year $ — $ — Due within more than 1 year but less than 5 years 22,670 21,378 Due within more than 5 years but less than 10 years — — Due 10 years or after — — Total $ 22,670 $ 21,378 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Table Text Block] | The following tables present gross unrealized losses and fair values for those investments that were in an unrealized loss position as of December 31, 2019 and 2018 , aggregated by investment category and the length of time that individual securities have been in a continuous loss position (in thousands): As of December 31, 2019 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Corporate debt securities $ — $ — $ 22,047 $ (698 ) $ 22,047 $ (698 ) Total $ — $ — $ 22,047 $ (698 ) $ 22,047 $ (698 ) As of December 31, 2018 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Corporate debt securities $ 20,846 $ (1,899 ) $ — $ — $ 20,846 $ (1,899 ) Total $ 20,846 $ (1,899 ) $ — $ — $ 20,846 $ (1,899 ) |
Equity Method Investments [Table Text Block] | The following table discloses the carrying amount for the Company’s equity method investment (in thousands): December 31, 2019 December 31, 2018 Equity securities $ 50,274 $ 31,151 Maximum exposure to loss $ 50,274 $ 31,151 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule Of Fair Values Of Financial Instruments Measured On Recurring Basis | The following tables present the fair values of the Company’s financial assets or liabilities that are measured at fair value on a recurring basis (in thousands): December 31, 2019 Level 1 Level 2 Level 3 Fair Value Assets: Cash equivalents: Money market and other funds $ 395,664 $ — $ — $ 395,664 Corporate debt securities — 623 22,047 22,670 Total assets measured at fair value $ 395,664 $ 623 $ 22,047 $ 418,334 Liabilities: Contingent consideration $ — $ — $ 37,887 $ 37,887 Total liabilities measured at fair value $ — $ — $ 37,887 $ 37,887 December 31, 2018 Level 1 Level 2 Level 3 Fair Value Assets: Cash equivalents: Money market and other funds $ 450 $ — $ — $ 450 Corporate debt securities — 532 20,846 21,378 Total assets measured at fair value $ 450 $ 532 $ 20,846 $ 21,828 Liabilities: Contingent consideration $ — $ — $ 50,035 $ 50,035 Contingent interest derivative — 768 — 768 Total liabilities measured at fair value $ — $ 768 $ 50,035 $ 50,803 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table presents a reconciliation of the Company’s derivative instruments (in thousands): Amount Affected line item in the Statement of Income Derivative Liabilities: Level 2: Balance as of January 1, 2018 $ 768 Total fair value adjustments reported in earnings — Interest expense, net Balance as of December 31, 2018 $ 768 Total fair value adjustments reported in earnings (768 ) Interest expense, net Balance as of December 31, 2019 $ — |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables presents a reconciliation of the Company’s Level 3 financial liabilities related to contingent consideration that are measured at fair value on a recurring basis (in thousands): Level 3 Affected line item in the Statement of Income Balance as of January 1, 2018 $ 20,477 Contingent consideration 11,391 Total fair value adjustments reported in earnings 18,944 General and administrative Contingent consideration payments (777 ) Not Applicable Balance as of December 31, 2018 $ 50,035 Contingent consideration 5,079 Total fair value adjustments reported in earnings 6,318 General and administrative Contingent consideration payments (23,545 ) Not Applicable Balance as of December 31, 2019 $ 37,887 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables presents a reconciliation of the Company’s Level 3 financial assets related to certain available-for-sale debt securities that are measured at fair value on a recurring basis (in thousands): Level 3 Balance as of January 1, 2018 $ — Transfer in to Level 3 20,846 Balance as of December 31, 2018 $ 20,846 Total fair value adjustments reported in other comprehensive income 1,201 Balance as of December 31, 2019 $ 22,047 |
Property And Equipment (Tables)
Property And Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property And Equipment [Abstract] | |
Property, Plant and Equipment | Property and equipment, stated at cost, at December 31, 2019 and 2018 consisted of the following (in thousands): 2019 2018 Computers and related equipment $ 334,768 $ 272,067 Furniture and equipment 1,977 2,391 Leasehold improvements 17,374 14,706 354,119 289,164 Less: Accumulated depreciation and amortization (226,302 ) (190,351 ) Total property and equipment, net $ 127,817 $ 98,813 |
Goodwill And Intangible Assets
Goodwill And Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes In Carrying Amounts Of Goodwill | The changes in carrying amounts of goodwill for the years ended December 31, 2019 and 2018 are as follows (in thousands): Fax and Martech Voice, Backup, Security and CPP Total Cloud Services Digital Media Consolidated Balance as of January 1, 2018 $ 346,814 $ 256,939 $ 603,753 $ 592,858 $ 1,196,611 Goodwill acquired (Note 4) 5,561 67,817 73,378 120,904 194,282 Purchase Accounting Adjustments (1) — (1,014 ) (1,014 ) 240 (774 ) Foreign exchange translation (2,146 ) (6,983 ) (9,129 ) (614 ) (9,743 ) Allocation to new reportable segments 16,041 (16,041 ) — — — Balance as of December 31, 2018 $ 366,270 $ 300,718 $ 666,988 $ 713,388 $ 1,380,376 Goodwill acquired (Note 4) 31,672 179,293 210,965 42,131 253,096 Purchase accounting adjustments (1) 177 — 177 (858 ) (681 ) Foreign exchange translation (331 ) 73 (258 ) 500 242 Balance as of December 31, 2019 $ 397,788 $ 480,084 $ 877,872 $ 755,161 $ 1,633,033 (1) Purchase accounting adjustments relate to adjustments to goodwill in connection with prior year business acquisitions (see Note 4 - Business Acquisitions). |
Schedule Of Intangible Assets With Indefinite Lives | Intangible Assets with Indefinite Lives: 2019 2018 Trade names $ 27,379 $ 27,379 Other 4,306 4,306 Total $ 31,685 $ 31,685 |
Finite-Lived Intangible Assets By Major Class | Intangible Assets Subject to Amortization: As of December 31, 2019 , intangible assets subject to amortization relate primarily to the following (in thousands): Weighted-Average Amortization Period Historical Cost Accumulated Amortization Net Trade names 10.2 years $ 193,202 $ 82,552 $ 110,650 Patent and patent licenses 6.5 years 67,921 63,143 4,778 Customer relationships (1) 8.5 years 630,730 392,228 238,502 Other purchased intangibles 4.3 years 383,195 212,257 170,938 Total $ 1,275,048 $ 750,180 $ 524,868 (1) Historically, the Company has amortized its customer relationship assets in a pattern that best reflects the pace in which the assets’ benefits are consumed. This pattern results in a substantial majority of the amortization expense being recognized in the first four to five years, despite the overall life of the asset. As of December 31, 2018 , intangible assets subject to amortization relate primarily to the following (in thousands): Weighted-Average Amortization Period Historical Cost Accumulated Amortization Net Trade names 10.9 years $ 181,231 $ 65,722 $ 115,509 Patent and patent licenses 6.5 years 67,887 60,541 7,346 Customer relationships (1) 9.1 years 507,330 316,122 191,208 Other purchased intangibles 4.4 years 307,554 126,834 180,720 Total $ 1,064,002 $ 569,219 $ 494,783 (1) Historically, the Company has amortized its customer relationship assets in a pattern that best reflects the pace in which the assets’ benefits are consumed. This pattern results in a substantial majority of the amortization expense being recognized in the first four to five years, despite the overall life of the asset. During the year ended December 31, 2019 , the Company completed acquisitions which were individually immaterial. The identified intangible assets recognized as part of these acquisition and their respective estimated weighted average amortizations were as follows (in thousands): Weighted-Average Amortization Period Fair Value Trade names 8.0 years $ 10,773 Customer relationships 7.1 years 123,611 Trademark 6.2 years 32,540 Other purchased intangibles 3.7 years 48,446 Total $ 215,370 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Expected amortization expenses for intangible assets subject to amortization at December 31, 2019 are as follows (in thousands): Fiscal Year: 2020 $ 156,283 2021 115,875 2022 71,835 2023 54,246 2024 34,556 Thereafter 92,073 Total expected amortization expense $ 524,868 |
Long Term Debt (Tables)
Long Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Long-term Debt, Unclassified [Abstract] | |
Senior Notes [Table Text Block] | The following table provides additional information related to our 6% Senior Notes (in thousands): 2019 2018 Principal amount of 6% Senior Notes $ 650,000 $ 650,000 Less: Unamortized discount 8,425 9,657 Less: Debt issuance costs 1,466 1,975 Net carrying amount of 6% Senior Notes $ 640,109 $ 638,368 |
Convertible Debt [Table Text Block] | The following table provides additional information related to our 3.25% Convertible Notes (in thousands): 2019 2018 Additional paid-in capital $ 37,700 $ 37,700 Principal amount of 3.25% Convertible Notes $ 402,500 $ 402,500 Less: Unamortized discount of the liability component 14,363 23,534 Less: Carrying amount of debt issuance costs 2,605 4,205 Net carrying amount of 3.25% Convertible Notes $ 385,532 $ 374,761 The following table provides additional information related to our 1.75% Convertible Notes (in thousands): 2019 Additional paid-in capital $ 88,138 Principal amount of 1.75% Convertible Notes $ 550,000 Less: Unamortized discount of the liability component 117,193 Less: Carrying amount of debt issuance costs 9,987 Net carrying amount of 1.75% Convertible Notes $ 422,820 |
Interest Expense Related To Convertible Notes [Table Text Block] | The following table provides the components of interest expense related to our 1.75% Convertible Notes (in thousands): 2019 Cash interest expense (coupon interest expense) $ 1,174 Non-cash amortization of discount on 1.75% Convertible Notes 1,718 Amortization of debt issuance costs 122 Total interest expense related to 1.75% Convertible Notes $ 3,014 The following table provides the components of interest expense related to our 3.25% Convertible Notes (in thousands): 2019 2018 2017 Cash interest expense (coupon interest expense) $ 13,081 $ 13,081 $ 13,081 Non-cash amortization of discount on 3.25% Convertible Notes 9,171 8,655 8,167 Amortization of debt issuance costs 1,600 1,462 1,335 Total interest expense related to 3.25% Convertible Notes $ 23,852 $ 23,198 $ 22,583 |
Schedule of Long-term Debt Instruments [Table Text Block] | Long-term debt as of December 31, 2019 and 2018 consists of the following (in thousands): 2019 2018 6.0% Senior Notes $ 650,000 $ 650,000 Convertible Notes: 3.25% Convertible Notes 402,500 402,500 1.75% Convertible Notes 550,000 — Total Notes 1,602,500 1,052,500 Less: Unamortized discount 139,981 33,191 Deferred issuance costs 14,058 6,180 Total long-term debt $ 1,448,461 $ 1,013,129 Less: Current portion 385,532 — Total long-term debt, less current portion $ 1,062,929 $ 1,013,129 |
Schedule of Maturities of Long-term Debt [Table Text Block] | At December 31, 2019 , future principal payments for debt were as follows (in thousands): Years Ended December 31, 2020 $ — 2021 402,500 2022 — 2023 — 2024 — Thereafter 1,200,000 $ 1,602,500 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | The components of lease expense were as follows for the year ended (in thousands): December 31, 2019 Operating lease cost $ 23,681 Short-term lease cost 1,918 Total lease cost $ 25,599 |
Supplemental Balance Sheet Disclosures [Text Block] | Supplemental balance sheet information related to leases was as follows (in thousands): December 31, 2019 Operating leases Operating lease right-of-use assets $ 125,822 Total operating lease right-of-use assets $ 125,822 Operating lease liability, current $ 26,927 Operating lease liabilities, noncurrent 104,070 Total operating lease liabilities $ 130,997 |
Schedule Of Cash Flow Information Relating To Leases [Table Text Block] | Supplemental cash flow information related to leases was as follows (in thousands): December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 24,750 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 73,163 |
Other Supplemental Lease Information [Table Text Block] | Other supplemental operating lease information consists of the following: Operating leases: Weighted average remaining lease term 5.9 years Weighted average discount rate 3.95 % |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Maturities of operating lease liabilities as of December 31, 2019 were as follows (in thousands): Operating Leases Fiscal Year: 2020 $ 28,517 2021 27,515 2022 25,320 2023 20,132 2024 13,607 Thereafter 34,195 Total lease payments $ 149,286 Less: Imputed interest 18,289 Present value of operating lease liabilities $ 130,997 |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | As of December 31, 2018, future minimum lease payments under non-cancelable operating leases (with initial or remaining lease terms in excess of one year) are as follows (in thousands): Lease Payments Fiscal Year: 2019 $ 19,267 2020 16,196 2021 13,881 2022 12,654 2023 10,977 Thereafter 5,456 Total minimum lease payments $ 78,431 |
Income Taxes Income Taxes (Tabl
Income Taxes Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The provision for income tax consisted of the following (in thousands): Years Ended December 31, 2019 2018 2017 Current: Federal $ 23,306 $ 17,233 $ 55,804 State 4,774 (617 ) 3,265 Foreign 15,988 3,094 22,904 Total current 44,068 19,710 81,973 Deferred: Federal (1,903 ) 16,083 (15,682 ) State (5,620 ) 2,965 962 Foreign (55,921 ) 6,002 (6,712 ) Total deferred (63,444 ) 25,050 (21,432 ) Total provision $ (19,376 ) $ 44,760 $ 60,541 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | A reconciliation of the statutory federal income tax rate with J2 Global’s effective income tax rate is as follows: Years Ended December 31, 2019 2018 2017 Statutory tax rate 21 % 21 % 35 % State income taxes, net 0.9 1.2 0.8 Foreign rate differential (3.8 ) (7.7 ) (16.1 ) Foreign income inclusion 1.4 1.5 7.2 Foreign tax credit (0.9 ) (1.4 ) (6.2 ) Reserve for uncertain tax positions (0.4 ) 4.1 3.9 Valuation allowance 0.2 0.2 (0.9 ) IRC Section 199 deductions — — (1.6 ) Intra-entity tax benefit (26.9 ) — — The 2017 Tax Act - provisional transition tax — — 24.6 Impact on deferred taxes of enacted tax law and rate changes (1.3 ) 0.1 (16.1 ) Contingent liabilities 0.6 2.4 — Unrecognized loss on intercompany sale — 1.9 — Other (0.5 ) 1.9 (0.3 ) Effective tax rates (9.7 )% 25.2 % 30.3 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Deferred tax assets and liabilities result from differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. Temporary differences and carryforwards which give rise to deferred tax assets and liabilities are as follows (in thousands): Years Ended December 31, 2019 2018 Deferred tax assets: Net operating loss carryforwards $ 43,352 $ 36,038 Tax credit carryforwards 4,152 4,784 Accrued expenses 9,946 5,717 Allowance for bad debt 2,547 1,776 Share-based compensation expense 4,669 5,038 Impairment of investments 1,675 1,466 Deferred revenue — 1,948 State taxes 3,206 2,097 Other 9,958 9,917 79,505 68,781 Less: valuation allowance (608 ) (44 ) Total deferred tax assets $ 78,897 $ 68,737 Deferred tax liabilities: Basis difference in property and equipment $ (15,767 ) $ (6,568 ) Basis difference in intangible assets (42,880 ) (96,869 ) Prepaid insurance (1,847 ) (2,149 ) Convertible debt (65,217 ) (31,994 ) Other (663 ) (205 ) Total deferred tax liabilities (126,374 ) (137,785 ) Net deferred tax liabilities $ (47,477 ) $ (69,048 ) |
Summary of Income Tax Contingencies [Table Text Block] | The aggregate changes in the balance of unrecognized tax benefits, which excludes interest and penalties, for 2019 , 2018 and 2017 , is as follows (in thousands): Years Ended December 31, 2019 2018 2017 Beginning balance $ 51,271 $ 45,012 $ 41,218 Increases related to tax positions during a prior year 5,285 2,508 — Decreases related to tax positions taken during a prior year (7,441 ) — (401 ) Increases related to tax positions taken in the current year 4,069 3,751 7,223 Settlements (5,831 ) — (2,639 ) Decreases related to expiration of statute of limitations (650 ) — (389 ) Ending balance $ 46,703 $ 51,271 $ 45,012 |
Stockholders' Equity Dividends
Stockholders' Equity Dividends Declared (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Dividends Declared [Table Text Block] | The following is a summary of each dividend declared during fiscal year 2019 and 2018 : Declaration Date Dividend per Common Share Record Date Payment Date February 2, 2018 $ 0.4050 February 22, 2018 March 9, 2018 May 3, 2018 $ 0.4150 May 18, 2018 June 1, 2018 August 8, 2018 $ 0.4250 August 20, 2018 September 4, 2018 October 29, 2018 $ 0.4350 November 19, 2018 December 5, 2018 February 6, 2019 $ 0.4450 February 25, 2019 March 12, 2019 May 2, 2019 $ 0.4550 May 20, 2019 June 4, 2019 |
Stock Options And Employee St_2
Stock Options And Employee Stock Purchase Plan (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stock Options Activity | Stock option activity for the years ended December 31, 2019 , 2018 and 2017 is summarized as follows: Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Life (In Years) Aggregate Intrinsic Value Options outstanding at January 1, 2017 413,858 $ 31.09 Granted — — Exercised (38,183 ) 29.03 Canceled — — Options outstanding at December 31, 2017 375,675 $ 31.30 Granted 400,000 75.03 Exercised (67,898 ) 22.68 Canceled — — Options outstanding at December 31, 2018 707,777 $ 56.84 Granted — — Exercised (189,436 ) 32.39 Canceled — — Options outstanding at December 31, 2019 518,341 $ 65.77 6.6 $14,480,395 Exercisable at December 31, 2019 163,741 $ 45.94 3.6 $7,821,139 Vested and expected to vest at December 31, 2019 401,776 $ 63.09 6.2 $12,301,167 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | The following table summarizes information concerning outstanding and exercisable options as of December 31, 2019 : Options Outstanding Exercisable Options Range of Exercise Prices Number Outstanding December 31, 2019 Weighted Average Remaining Contractual Life Weighted Average Exercise Price Number Exercisable December 31, 2019 Weighted Average Exercise Price $22.92 41,530 0.35 years $ 22.92 41,530 $ 22.92 29.34 45,351 1.36 years 29.34 45,351 29.34 29.53 8,460 2.17 years 29.53 8,460 29.53 67.35 23,000 5.35 years 67.35 18,400 67.35 75.03 400,000 8.00 years 75.03 50,000 75.03 $22.92 - $75.03 518,341 6.59 years $ 65.77 163,741 $ 45.94 |
Assumptions To Estimate Fair Value Of Stock Options | The weighted-average fair values of stock options granted have been estimated utilizing the following assumptions: Years ended December 31, 2019 2018 2017 Risk-free interest rate —% 2.4% —% Expected term (in years) 0.0 6.7 0.0 Dividend yield —% 2.2% —% Expected volatility —% 29.2% —% Weighted average volatility —% 29.2% —% |
Restricted (Performance) Stock [Member] | |
Schedule of Share-based Payment Award, Performance Awards, Valuation Assumptions | The weighted-average fair values of market-based restricted stock awards granted have been estimated utilizing the following assumptions: December 31, 2019 December 31, 2018 December 31, 2017 Underlying stock price at valuation date $ 84.58 $ 82.11 $ 91.17 Expected volatility 28.3 % 28.4 % 29 % Risk-free interest rate 2.53 % 2.89 % 2.17 % |
Restricted Stock [Member] | |
Restricted Stock And Restricted Stock Unit Award Activity | Restricted stock award activity for the years ended December 31, 2019 , 2018 and 2017 is set forth below: Shares Weighted-Average Grant-Date Fair Value Nonvested at January 1, 2017 705,015 $ 41.40 Granted 289,230 61.34 Vested (381,411 ) 39.71 Canceled (7,268 ) 76.08 Nonvested at December 31, 2017 605,566 $ 51.57 Granted 830,256 63.55 Vested (157,972 ) 61.29 Canceled (70,839 ) 74.84 Nonvested at December 31, 2018 1,207,011 $ 64.82 Granted 187,773 79.00 Vested (172,884 ) 73.65 Canceled (116,841 ) 72.58 Nonvested at December 31, 2019 1,105,059 $ 64.76 |
Restricted Stock Units (RSUs) [Member] | |
Restricted Stock And Restricted Stock Unit Award Activity | Restricted stock unit activity for the years ended December 31, 2019 , 2018 and 2017 is set forth below: Number of Weighted-Average Aggregate Outstanding at January 1, 2017 51,950 Granted 11,100 Vested (16,370 ) Canceled (8,280 ) Outstanding at December 31, 2017 38,400 Granted 20,044 Vested (11,540 ) Canceled (5,673 ) Outstanding at December 31, 2018 41,231 Granted 3,844 Vested (12,343 ) Canceled (11,858 ) Outstanding at December 31, 2019 20,874 2.1 $ 1,956,103 Vested and expected to vest at December 31, 2019 15,903 1.6 $ 1,490,255 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share Reconciliation [Abstract] | |
Components Of Basic And Diluted Earnings Per Share | The components of basic and diluted earnings per share are as follows (in thousands, except share and per share data): Years Ended December 31, 2019 2018 2017 Numerator for basic and diluted net income per common share: Net income attributable to J2 Global, Inc. common shareholders $ 218,806 $ 128,687 $ 139,425 Net income available to participating securities (a) (3,496 ) (1,885 ) (1,792 ) Net income available to J2 Global, Inc. common shareholders $ 215,310 $ 126,802 $ 137,633 Denominator: Weighted-average outstanding shares of common stock 47,647,397 47,950,746 47,586,242 Dilutive effect of: Equity incentive plans 78,076 146,906 228,166 Convertible debt (b) 1,300,211 830,139 854,619 Common stock and common stock equivalents 49,025,684 48,927,791 48,669,027 Net income per share: Basic $ 4.52 $ 2.64 $ 2.89 Diluted $ 4.39 $ 2.59 $ 2.83 (a) Represents unvested share-based payment awards that contain certain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) (b) Represents the incremental shares issuable upon conversion of the 3.25% Convertible Notes due June 15, 2029 and 1.75% Convertible Notes due November 1, 2026 by applying the treasury stock method when the average stock price exceeds the conversion price of the Convertible Notes (see Note 10 - Long Term Debt) |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segments, Geographical Areas [Abstract] | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated | Information on reportable segments and reconciliation to consolidated income from operations is as follows (in thousands): Years Ended December 31, 2019 2018 2017 Revenue by reportable segment: Fax and Martech $ 366,727 $ 360,479 $ 350,542 Voice, Backup, Security, and CPP 295,108 237,496 228,414 Cloud Services Total 661,835 597,975 578,956 Digital Media 710,511 609,374 538,939 Elimination of inter-segment revenues (300 ) (60 ) (57 ) Total segment revenues 1,372,046 1,207,289 1,117,838 Corporate (1) 8 6 — Total revenues 1,372,054 1,207,295 1,117,838 Gross profit by reportable segment: Fax and Martech 317,065 323,855 311,942 Voice, Backup, Security, and CPP 200,500 151,966 148,268 Cloud Services Total 517,565 475,821 460,210 Digital Media 617,458 530,455 485,365 Elimination of inter-segment gross profit (300 ) (60 ) (50 ) Total segment gross profit 1,134,723 1,006,216 945,525 Corporate (1) 8 5 — Total gross profit 1,134,731 1,006,221 945,525 Direct costs by reportable segment (2) : Fax and Martech 124,589 128,898 135,157 Voice, Backup, Security, and CPP 155,172 116,803 99,009 Cloud Services Total 279,761 245,701 234,166 Digital Media 550,834 489,019 437,297 Elimination of inter-segment direct costs (300 ) (60 ) (50 ) Total segment direct costs 830,295 734,660 671,413 Corporate (1) 27,356 27,281 28,404 Total direct costs (2) 857,651 761,941 699,817 Operating income by reportable segment: Fax and Martech 192,476 194,957 176,785 Voice, Backup, Security, and CPP 45,328 35,163 49,259 Cloud Services Total 237,804 230,120 226,044 Digital Media 66,624 41,436 48,068 Total segment operating income 304,428 271,556 274,112 Corporate (1) (27,348 ) (27,276 ) (28,404 ) Total income from operations $ 277,080 $ 244,280 $ 245,708 (1) Corporate includes costs associated with general and administrative and other expenses that are managed on a global basis and that are not directly attributable to any particular segment. In addition, in fiscal year 2018, the Company determined certain patent assets and related income and expenses associated with Advanced Messaging Technologies, Inc. should be reclassified from Cloud Services to Corporate. (2) Direct costs for each segment include other operating expenses that are directly attributable to the segment, such as employee compensation expense, local sales and marketing expenses, engineering and network operations expense, depreciation and amortization and other administrative expenses. |
Schedule of Segment Reporting Information, by Segment | 2019 2018 Assets: Cloud Services $ 1,466,969 $ 1,047,245 Digital Media 1,561,024 1,455,620 Total assets from Cloud Services and Digital Media 3,027,993 2,502,865 Corporate (1) 477,853 57,965 Total assets $ 3,505,846 $ 2,560,830 2019 2018 2017 Capital expenditures: Cloud Services $ 21,826 $ 13,832 $ 7,031 Digital Media 48,736 42,547 32,564 Total capital expenditures from Cloud Services and Digital Media 70,562 56,379 39,595 Corporate (1) 26 — — Total capital expenditures $ 70,588 $ 56,379 $ 39,595 Depreciation and amortization: Cloud Services $ 80,970 $ 60,754 $ 68,436 Digital Media 148,575 122,843 93,605 Total depreciation and amortization from Cloud Services and Digital Media 229,545 183,597 162,041 Corporate (1) 2,487 3,577 — Total depreciation and amortization $ 232,032 $ 187,174 $ 162,041 (1) In fiscal year 2018, the Company determined certain patent assets and related income and expenses associated with Advanced Messaging Technologies, Inc. should be reclassified from Cloud Services to Corporate. |
Summary On Revenues And Long-Lived Assets By Geographic Areas | J2 Global maintains operations in the U.S., Canada, Ireland, Japan and other countries. Geographic information about the U.S. and all other countries for the reporting periods is presented below. Such information attributes revenues based on markets where revenues are reported (in thousands). Years ended December 31, 2019 2018 2017 Revenues: United States $ 1,100,298 $ 924,051 $ 830,800 Canada 67,518 73,742 78,099 Ireland 59,009 69,291 74,430 All other countries 145,229 140,211 134,509 Total $ 1,372,054 $ 1,207,295 $ 1,117,838 December 31, December 31, Long-lived assets: United States $ 701,580 $ 530,785 All other countries 76,927 62,810 Total $ 778,507 $ 593,595 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the changes in accumulated balances of other comprehensive loss (income), net of tax, for the years ended December 31, 2019 , 2018 , and 2017 (in thousands): Unrealized Gains (Losses) on Investments Foreign Currency Translation Total Balance as of January 1, 2017 $ — $ (54,649 ) $ (54,649 ) Other comprehensive income before reclassifications — 25,559 25,559 Net current period other comprehensive income — 25,559 25,559 Balance as of December 31, 2017 $ — $ (29,090 ) $ (29,090 ) Other comprehensive loss before reclassifications (1,418 ) (15,471 ) (16,889 ) Net current period other comprehensive loss (1,418 ) (15,471 ) (16,889 ) Balance as of December 31, 2018 $ (1,418 ) $ (44,561 ) $ (45,979 ) Other comprehensive income (loss) before reclassifications 1,143 (1,626 ) (483 ) Net current period other comprehensive income (loss) 1,143 (1,626 ) (483 ) Balance as of December 31, 2019 $ (275 ) $ (46,187 ) $ (46,462 ) |
Quarterly Results (Tables)
Quarterly Results (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Results [Abstract] | |
Schedule of Quarterly Financial Information | Year Ended December 31, 2019 Fourth Quarter Third Quarter Second Quarter First Quarter Revenues $ 405,588 $ 344,141 $ 322,432 $ 299,893 Gross profit 341,260 282,425 262,166 248,880 Net income (1) 123,023 30,745 32,589 32,449 Net income per common share: Basic $ 2.54 $ 0.63 $ 0.67 $ 0.67 Diluted $ 2.45 $ 0.62 $ 0.66 $ 0.66 Weighted average shares outstanding Basic 47,626,833 47,673,211 47,727,786 47,560,749 Diluted 49,425,395 49,064,272 49,102,879 48,509,181 Year Ended December 31, 2018 Fourth Third Second First Revenues $ 346,059 $ 292,724 $ 287,889 $ 280,623 Gross profit 290,097 243,507 240,140 232,478 Net income 50,614 30,723 28,479 18,871 Net income per common share: Basic $ 1.04 $ 0.63 $ 0.59 $ 0.39 Diluted $ 1.03 $ 0.61 $ 0.57 $ 0.38 Weighted average shares outstanding Basic 47,967,014 48,009,953 47,951,326 47,873,007 Diluted 48,505,023 49,279,217 49,218,521 48,706,717 (1) The increase in the Company’s net income in the fourth quarter of 2019 is primarily driven by the tax benefit recognized as a result of an intra-entity asset transfer (see Note 13 - Income Taxes). |
Basis Of Presentation (Details)
Basis Of Presentation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 200,000 | ||
Line of Credit Facility, Current Borrowing Capacity | 100,000 | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (1,626) | $ (15,471) | $ 25,559 |
Foreign Currency Transaction Gain (Loss), Realized | (4,000) | (2,300) | (5,800) |
Advertising Expense | $ 158,200 | $ 149,700 | $ 143,300 |
Minimum [Member] | |||
Property, Plant and Equipment, Useful Life | 1 year | ||
Finite-Lived Intangible Asset, Useful Life | 1 year | ||
Maximum [Member] | |||
Property, Plant and Equipment, Useful Life | 10 years | ||
Finite-Lived Intangible Asset, Useful Life | 20 years | ||
Property, Plant and Equipment, Other Types [Member] | Minimum [Member] | |||
Property, Plant and Equipment, Useful Life | 1 year | ||
Property, Plant and Equipment, Other Types [Member] | Maximum [Member] | |||
Property, Plant and Equipment, Useful Life | 5 years |
Revenues Cumulative Effect Tran
Revenues Cumulative Effect Transition (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 1,599 |
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 1,600 |
Revenues Disaggregated Revenue
Revenues Disaggregated Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Deferred Revenue, Revenue Recognized | $ 122,700 | $ 80,000 | |||||||||
Total revenues | $ 405,588 | $ 344,141 | $ 322,432 | $ 299,893 | $ 346,059 | $ 292,724 | $ 287,889 | $ 280,623 | 1,372,054 | 1,207,295 | $ 1,117,838 |
Transferred at Point in Time [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 32,983 | 4,752 | 22,559 | ||||||||
Transferred over Time [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 1,339,071 | 1,202,543 | 1,095,279 | ||||||||
Digital Media | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 710,511 | 609,374 | 538,939 | ||||||||
Digital Media | Advertising [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 515,702 | 468,325 | 455,647 | ||||||||
Digital Media | Subscription [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 185,559 | 138,689 | 70,794 | ||||||||
Digital Media | Other [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 9,250 | 2,360 | 12,498 | ||||||||
Cloud Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 661,835 | 597,975 | 578,956 | ||||||||
Cloud Services | Subscription [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 660,814 | 597,281 | 574,197 | ||||||||
Cloud Services | Other [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 1,021 | 694 | 4,759 | ||||||||
Corporate (1) | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 8 | 6 | 0 | ||||||||
Intersegment Eliminations | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | $ (300) | $ (60) | $ (57) |
Business Acquisition Business A
Business Acquisition Business Acquisition (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition Contributed Total Revenue | $ 126,300 | $ 56,200 | $ 34,700 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 429,517 | 340,199 | 203,922 |
Business Combination, Consideration Transferred | 429,500 | 324,700 | 203,900 |
Purchase Accounting Adjustments (1) | 681 | (774) | |
Goodwill acquired (Note 4) | 253,096 | 194,282 | 121,827 |
Business Acquisition, Purchase Price Allocation, Goodwill, Expected Tax Deductible Amount | 95,100 | 38,300 | 34,700 |
Disposal Group, Including Discontinued Operation, Revenue | 22,700 | ||
Fax and Martech [Member] | |||
Purchase Accounting Adjustments (1) | 177 | 0 | (700) |
Goodwill acquired (Note 4) | 31,672 | 5,561 | |
Voice, Backup, Security and CPP [Member] | |||
Purchase Accounting Adjustments (1) | 0 | (1,014) | (25) |
Goodwill acquired (Note 4) | 179,293 | 67,817 | |
Digital Media | |||
Purchase Accounting Adjustments (1) | 858 | 240 | $ 4,700 |
Goodwill acquired (Note 4) | $ 42,131 | $ 120,904 |
Business Acquisition Business_2
Business Acquisition Business Acquisitions (Allocation Of Aggregate Purchase Price) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | |||
Cash | $ 15,532 | ||
Accounts receivable | $ 22,796 | 11,321 | $ 14,130 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets | 4,528 | 3,480 | 10,243 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 4,625 | 4,755 | 6,411 |
Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Operating Lease Right Of Use Assets | 4,982 | ||
Goodwill | 253,096 | 194,282 | 121,827 |
Deferred tax asset | 821 | 405 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 660 | 341 | |
Accounts payables and accrued expenses | (31,292) | (10,864) | (27,995) |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | (516) | ||
Deferred revenue | (27,953) | (37,113) | (11,853) |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Operating Lease Liabilities, Current | (1,768) | ||
Finance lease | (956) | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Operating Lease Liabilities, NonCurrent | (3,215) | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Income Taxes Payable | (762) | (1,458) | |
Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Liability For Uncertain Tax Positions | (170) | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent | (10,229) | (22,990) | (29,534) |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other | (635) | (5,410) | |
Total | 429,517 | 340,199 | 203,922 |
Trade names | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 10,773 | 33,750 | 20,610 |
Customer relationships | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 123,611 | 66,516 | 61,307 |
Trademarks | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 32,540 | 3,285 | 1,373 |
Other purchased intangibles | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 48,446 | 84,907 | $ 36,998 |
Digital Media | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 42,131 | $ 120,904 |
Business Acquisition Business_3
Business Acquisition Business Acquisitions (Supplementary Information On Unaudited Pro Forma Financial Results Of Acquisition) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
2018 Business Acquisition [Member] | |||
Business Acquisition, Pro Forma Revenue | $ 1,264,544 | $ 1,218,530 | |
Business Acquisition, Pro Forma Net Income | $ 121,727 | $ 123,378 | |
Business Acquisition, Pro Forma Earnings Per Share, Basic | $ 2.50 | $ 2.56 | |
Business Acquisition, Pro Forma Earnings Per Share, Diluted | $ 2.45 | $ 2.50 | |
2019 Business Acquisitions [Member] | |||
Business Acquisition, Pro Forma Revenue | $ 1,474,132 | $ 1,427,914 | |
Business Acquisition, Pro Forma Net Income | $ 211,303 | $ 104,710 | |
Business Acquisition, Pro Forma Earnings Per Share, Basic | $ 4.36 | $ 2.15 | |
Business Acquisition, Pro Forma Earnings Per Share, Diluted | $ 4.24 | $ 2.11 |
Investments (Cost Method Invest
Investments (Cost Method Investments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments, All Other Investments [Abstract] | |||
Cost Method Investments, Original Cost | $ 34,977 | $ 34,977 | |
Equity Securities without Readily Determinable Fair Value, Impairment Loss, Annual Amount | 4,164 | 0 | $ 0 |
Unrealized Loss on Securities | (3,678) | (3,678) | |
Cost Method Investments | $ 27,135 | $ 31,299 |
Investments (Available-For-Sale
Investments (Available-For-Sale Securities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Investments [Abstract] | ||
Available-for-sale Securities, Amortized Cost Basis | $ 23,256 | $ 23,256 |
Available-for-sale Securities, Gross Unrealized Gain | 112 | 21 |
Available-for-sale Securities, Gross Unrealized Loss | (698) | (1,899) |
Available-for-sale Securities | $ 22,670 | $ 21,378 |
Investments (Investments Classi
Investments (Investments Classified by Contractual Maturity Date) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Investments, Debt and Equity Securities [Abstract] | ||
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, within One Year, Fair Value | $ 0 | $ 0 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after One Through Five Years, Fair Value | 22,670 | 21,378 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after Five Through Ten Years, Fair Value | 0 | 0 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after 10 Years, Fair Value | $ 0 | $ 0 |
Investments (Available-for-sa_2
Investments (Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 0 | $ 20,846 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | (1,899) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 22,047 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (698) | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 22,047 | 20,846 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (698) | $ (1,899) |
Investments (Equity Method Inve
Investments (Equity Method Investments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |||
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | Sep. 25, 2017 | ||
Variable Interest Entity, Financial or Other Support, Amount | $ 200,000 | ||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 66.70% | ||
Variable Interest Entity, Measure of Activity, Other, Amount | $ 29,600 | $ 36,800 | |
Variable Interest Entity, Measure of Activity, Purchases | 29,600 | 36,800 | |
Income (Loss) from Equity Method Investments | (168) | (4,140) | $ 0 |
Proceeds from Equity Method Investment, Distribution, Return of Capital | 10,288 | 0 | 0 |
Management Fee Expense | 3,000 | 4,500 | $ 0 |
Equity Method Investments | 50,274 | 31,151 | |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | $ 50,274 | $ 31,151 |
Assets Held for Sale and Subs_2
Assets Held for Sale and Subsequently Disposed (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Digital Media | Cambridge [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ 900 |
Digital Media | Tea Leaves [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | 27,000 |
Cloud Services [Member] | Web24 [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ 1,600 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule Of Fair Values Of Financial Instruments Measured On Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Total assets measured at fair value | $ 418,334 | $ 21,828 | |
Contingent consideration | 37,887 | 50,035 | |
Contingent interest derivative | 768 | ||
Total liabilities measured at fair value | 37,887 | 50,803 | |
Money Market Funds [Member] | |||
Money market and other funds | 395,664 | 450 | |
Corporate Debt Securities [Member] | |||
Corporate debt securities | 22,670 | 21,378 | |
Level 1 | |||
Total assets measured at fair value | 395,664 | 450 | |
Contingent consideration | 0 | 0 | |
Contingent interest derivative | 0 | ||
Total liabilities measured at fair value | 0 | 0 | |
Level 1 | Money Market Funds [Member] | |||
Money market and other funds | 395,664 | 450 | |
Level 1 | Corporate Debt Securities [Member] | |||
Corporate debt securities | 0 | 0 | |
Level 2 | |||
Total assets measured at fair value | 623 | 532 | |
Contingent consideration | 0 | 0 | |
Contingent interest derivative | 0 | 768 | $ 768 |
Total liabilities measured at fair value | 0 | 768 | |
Level 2 | Money Market Funds [Member] | |||
Money market and other funds | 0 | 0 | |
Level 2 | Corporate Debt Securities [Member] | |||
Corporate debt securities | 623 | 532 | |
Level 3 | |||
Total assets measured at fair value | 22,047 | 20,846 | |
Contingent consideration | 37,887 | 50,035 | $ 20,477 |
Contingent interest derivative | 0 | ||
Total liabilities measured at fair value | 37,887 | 50,035 | |
Level 3 | Money Market Funds [Member] | |||
Money market and other funds | 0 | 0 | |
Level 3 | Corporate Debt Securities [Member] | |||
Corporate debt securities | $ 22,047 | $ 20,846 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Measurements Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2019 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | $ 1,800,000 | $ 1,100,000 | ||
Notes Payable | $ 5,500 | |||
Repayments of Notes Payable | 5,100 | |||
Contingent consideration | 37,887 | 50,035 | ||
Changes in fair value of contingent consideration | 6,318 | 18,944 | $ 2,300 | |
Humble Bundle [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 40,000 | |||
Contingent consideration | 20,000 | 40,000 | ||
Contingent consideration payments | 20,000 | |||
Ekahau [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 15,000 | |||
Contingent consideration | 9,100 | 3,700 | ||
Other Business Acquisitions [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 15,900 | |||
Contingent consideration | 8,800 | 6,300 | ||
Contingent consideration payments | 3,600 | |||
Changes in fair value of contingent consideration | 300 | |||
Level 3 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Contingent consideration | 37,887 | 50,035 | $ 20,477 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings | 6,318 | 18,944 | ||
Contingent consideration payments | 23,545 | 777 | ||
Corporate Debt Securities [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Corporate debt securities | 22,670 | 21,378 | ||
Corporate Debt Securities [Member] | Level 3 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Corporate debt securities | $ 22,047 | $ 20,846 |
Fair Value Measurements (Deriva
Fair Value Measurements (Derivative Summary) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Beginning balance | $ 768 | ||
Total fair value adjustments reported in earnings | (800) | $ 0 | $ (200) |
Ending balance | 768 | ||
Level 2 | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Beginning balance | 768 | 768 | |
Total fair value adjustments reported in earnings | (768) | 0 | |
Ending balance | $ 0 | $ 768 | $ 768 |
Fair Value Measurements (Sche_2
Fair Value Measurements (Schedule of Changes In Fair Value Of Level 3 Financial Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 50,035 | |
Ending balance | 37,887 | $ 50,035 |
Level 3 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 50,035 | 20,477 |
Contingent consideration | 5,079 | 11,391 |
Total fair value adjustments reported in earnings | 6,318 | 18,944 |
Contingent consideration payments | (23,545) | (777) |
Ending balance | $ 37,887 | $ 50,035 |
Fair Value Measurements (Sche_3
Fair Value Measurements (Schedule of Level 3 Financial Assets) (Details) - Level 3 - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Period Increase (Decrease) | $ 20,846 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | $ 22,047 | $ 20,846 | $ 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | $ 1,201 |
Property And Equipment (Propert
Property And Equipment (Property And Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 354,119 | $ 289,164 |
Less: Accumulated depreciation and amortization | (226,302) | (190,351) |
Total property and equipment, net | 127,817 | 98,813 |
Computers and related equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 334,768 | 272,067 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,977 | 2,391 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 17,374 | $ 14,706 |
Property And Equipment (Narrati
Property And Equipment (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property And Equipment [Abstract] | |||
Depreciation | $ 51,400 | $ 41,300 | $ 33,000 |
Property, Plant and Equipment, Disposals | $ 300 | $ 400 | $ 4,000 |
Goodwill And Intangible Asset_2
Goodwill And Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Purchase Accounting Adjustments (1) | $ 681 | $ (774) | |
Amortization of Intangible Assets | $ 180,600 | 145,900 | $ 129,000 |
Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 1 year | ||
Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 20 years | ||
Voice, Backup, Security and CPP [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Purchase Accounting Adjustments (1) | $ 0 | $ (1,014) | $ (25) |
Goodwill And Intangible Asset_3
Goodwill And Intangible Assets (Changes In Carrying Amounts Of Goodwill And Other Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | |||
Beginning balance | $ 1,380,376 | $ 1,196,611 | |
Goodwill acquired (Note 4) | 253,096 | 194,282 | $ 121,827 |
Purchase Accounting Adjustments (1) | 681 | (774) | |
Foreign exchange translation | 242 | 9,743 | |
Goodwill, Other Increase (Decrease) | 0 | ||
Ending balance | 1,633,033 | 1,380,376 | 1,196,611 |
Fax and Martech [Member] | |||
Goodwill [Roll Forward] | |||
Beginning balance | 366,270 | 346,814 | |
Goodwill acquired (Note 4) | 31,672 | 5,561 | |
Purchase Accounting Adjustments (1) | 177 | 0 | (700) |
Foreign exchange translation | 331 | 2,146 | |
Goodwill, Other Increase (Decrease) | 16,041 | ||
Ending balance | 397,788 | 366,270 | 346,814 |
Voice, Backup, Security and CPP [Member] | |||
Goodwill [Roll Forward] | |||
Beginning balance | 300,718 | 256,939 | |
Goodwill acquired (Note 4) | 179,293 | 67,817 | |
Purchase Accounting Adjustments (1) | 0 | (1,014) | (25) |
Foreign exchange translation | (73) | 6,983 | |
Goodwill, Other Increase (Decrease) | (16,041) | ||
Ending balance | 480,084 | 300,718 | 256,939 |
Cloud Services | |||
Goodwill [Roll Forward] | |||
Beginning balance | 666,988 | 603,753 | |
Goodwill acquired (Note 4) | 210,965 | 73,378 | |
Purchase Accounting Adjustments (1) | 177 | (1,014) | |
Foreign exchange translation | (258) | 9,129 | |
Goodwill, Other Increase (Decrease) | 0 | ||
Ending balance | 877,872 | 666,988 | 603,753 |
Digital Media | |||
Goodwill [Roll Forward] | |||
Beginning balance | 713,388 | 592,858 | |
Goodwill acquired (Note 4) | 42,131 | 120,904 | |
Purchase Accounting Adjustments (1) | 858 | 240 | 4,700 |
Foreign exchange translation | 500 | 614 | |
Goodwill, Other Increase (Decrease) | 0 | ||
Ending balance | $ 755,161 | $ 713,388 | $ 592,858 |
Goodwill And Intangible Asset_4
Goodwill And Intangible Assets (Indefinite Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Intangible assets | $ 31,685 | $ 31,685 |
Trade names | ||
Intangible assets | 27,379 | 27,379 |
Other | ||
Intangible assets | $ 4,306 | $ 4,306 |
Goodwill And Intangible Asset_5
Goodwill And Intangible Assets (Schedule Of Intangible Assets Subject To Amortization) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Historical Cost | $ 1,275,048 | $ 1,064,002 | |
Accumulated Amortization | (750,180) | (569,219) | |
Net | $ 524,868 | $ 494,783 | |
Trade names | |||
Finite-Lived Intangible Asset, Useful Life | 10 years 2 months 12 days | 10 years 10 months 24 days | |
Historical Cost | $ 193,202 | $ 181,231 | |
Accumulated Amortization | (82,552) | (65,722) | |
Net | 110,650 | 115,509 | |
Fair Value | $ 10,773 | $ 33,750 | $ 20,610 |
Patents [Member] | |||
Finite-Lived Intangible Asset, Useful Life | 6 years 6 months | 6 years 6 months | |
Historical Cost | $ 67,921 | $ 67,887 | |
Accumulated Amortization | (63,143) | (60,541) | |
Net | $ 4,778 | $ 7,346 | |
Customer relationships | |||
Finite-Lived Intangible Asset, Useful Life | 8 years 6 months | 9 years 1 month 6 days | |
Historical Cost | $ 630,730 | $ 507,330 | |
Accumulated Amortization | (392,228) | (316,122) | |
Net | 238,502 | 191,208 | |
Fair Value | 123,611 | 66,516 | 61,307 |
Trademarks | |||
Fair Value | $ 32,540 | $ 3,285 | 1,373 |
Other purchased intangibles | |||
Finite-Lived Intangible Asset, Useful Life | 4 years 3 months 18 days | 4 years 4 months 24 days | |
Historical Cost | $ 383,195 | $ 307,554 | |
Accumulated Amortization | (212,257) | (126,834) | |
Net | 170,938 | 180,720 | |
Fair Value | $ 48,446 | $ 84,907 | $ 36,998 |
2019 Business Acquisitions [Member] | Trade names | |||
Weighted-Average Amortization Period, years | 8 years | ||
Fair Value | $ 10,773 | ||
2019 Business Acquisitions [Member] | Customer relationships | |||
Weighted-Average Amortization Period, years | 7 years 1 month 6 days | ||
Fair Value | $ 123,611 | ||
2019 Business Acquisitions [Member] | Trademarks | |||
Weighted-Average Amortization Period, years | 6 years 2 months 12 days | ||
Fair Value | $ 32,540 | ||
2019 Business Acquisitions [Member] | Other purchased intangibles | |||
Weighted-Average Amortization Period, years | 3 years 8 months 12 days | ||
Fair Value | $ 48,446 |
Goodwill And Intangible Asset_6
Goodwill And Intangible Assets (Intangible Assets Subject To Amortization) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets [Abstract] | |||
Estimated future amortization expense in year 2020 | $ 156,283 | ||
Estimated future amortization expense in year 2021 | 115,875 | ||
Estimated future amortization expense in year 2022 | 71,835 | ||
Estimated future amortization expense in year 2023 | 54,246 | ||
Estimated future amortization expense in year 2024 | 34,556 | ||
Estimated future amortization expense thereafter | 92,073 | ||
Finite-Lived Intangible Assets, Net | 524,868 | $ 494,783 | |
Amortization of Intangible Assets | $ 180,600 | $ 145,900 | $ 129,000 |
Long Term Debt (Details)
Long Term Debt (Details) $ / shares in Units, $ in Thousands | Nov. 15, 2019USD ($)$ / shares | Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Aug. 01, 2017USD ($) | Jun. 10, 2014USD ($) |
Debt Instrument [Line Items] | ||||||
Proceeds from Lines of Credit | $ 185,000 | $ 0 | $ 44,981 | |||
Debt Instrument, Face Amount | 1,602,500 | 1,052,500 | ||||
Gain (Loss) on Extinguishment of Debt | 0 | 0 | (7,962) | |||
Debt Instrument, Unamortized Discount | 139,981 | 33,191 | ||||
Long-term Debt, Fair Value | 1,800,000 | 1,100,000 | ||||
Unamortized Debt Issuance Expense | 14,058 | 6,180 | ||||
Long-term debt | 1,062,929 | 1,013,129 | ||||
Interest Expense | 70,200 | 63,500 | 59,200 | |||
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net | (800) | 0 | (200) | |||
Debt, Long-term and Short-term, Combined Amount | 1,448,461 | 1,013,129 | ||||
Long-term Debt, Current Maturities | 385,532 | 0 | ||||
Total long-term debt, less current portion | 1,062,929 | 1,013,129 | ||||
Repayments of Lines of Credit | 185,000 | 0 | 225,000 | |||
Debt Issuance Costs, Line of Credit Arrangements, Gross | 400 | |||||
Debt Issuance Costs, Line of Credit Arrangements, Net | 300 | |||||
6% Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 650,000 | 650,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | |||||
Proceeds from Debt, Net of Issuance Costs | $ 636,500 | |||||
Debt Instrument, Frequency of Periodic Payment | semi-annually | |||||
Debt Instrument, Unamortized Discount | $ 8,425 | 9,657 | ||||
Long-term Debt, Fair Value | 689,800 | 645,500 | ||||
Unamortized Debt Issuance Expense | 1,466 | 1,975 | ||||
Long-term debt | 640,109 | 638,368 | ||||
8% Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 250,000 | |||||
Debt Instrument, Repurchase Amount | $ 265,000 | |||||
Gain (Loss) on Extinguishment of Debt | 8,000 | |||||
3.25% Convertible Debt Securities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 402,500 | 402,500 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.25% | |||||
Debt Instrument, Maturity Date | Jun. 15, 2029 | |||||
Proceeds from Debt, Net of Issuance Costs | $ 391,400 | |||||
Debt Instrument, Frequency of Periodic Payment | semiannually | |||||
Debt Instrument, Convertible, Conversion Ratio | 14.7632 | |||||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 67.74 | |||||
Debt Instrument, Issuance Date | Jun. 10, 2014 | |||||
Debt Instrument, Unamortized Discount | $ 14,363 | 23,534 | $ 59,000 | |||
Debt Instrument, Convertible, Carrying Amount of Equity Component | $ 37,700 | 37,700 | $ 37,700 | |||
Debt Instrument, Convertible, Remaining Discount Amortization Period | 1 year 6 months | |||||
Long-term Debt, Fair Value | $ 583,600 | 457,000 | ||||
Debt Instrument, Convertible, If-converted Value in Excess of Principal | 154,300 | 8,000 | ||||
Unamortized Debt Issuance Expense | 2,605 | 4,205 | ||||
Long-term debt | 385,532 | 374,761 | ||||
Interest Expense, Debt, Excluding Amortization | 13,081 | 13,081 | 13,081 | |||
Amortization of Debt Discount (Premium) | 9,171 | 8,655 | 8,167 | |||
Amortization of Debt Issuance Costs | 1,600 | 1,462 | 1,335 | |||
Interest Expense | 23,852 | 23,198 | $ 22,583 | |||
1.75% Convertible Debt Securities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 550,000 | 0 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 1.75% | |||||
Debt Instrument, Maturity Date | Nov. 1, 2026 | |||||
Proceeds from Debt, Net of Issuance Costs | $ 537,100 | |||||
Debt Instrument, Frequency of Periodic Payment | semiannually | |||||
Debt Instrument, Convertible, Conversion Ratio | 7.9864 | 7.9864 | ||||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 125.21 | $ 125.21 | ||||
Debt Instrument, Issuance Date | Nov. 15, 2019 | |||||
Debt Instrument, Unamortized Discount | $ 118,900 | $ 117,193 | ||||
Debt Instrument, Convertible, Carrying Amount of Equity Component | 88,100 | $ 88,138 | ||||
Debt Instrument, Convertible, Remaining Discount Amortization Period | 6 years 9 months 18 days | |||||
Debt Issuance Costs, Gross | $ 12,900 | |||||
Long-term Debt, Fair Value | 559,600 | |||||
Unamortized Debt Issuance Expense | 9,987 | |||||
Long-term debt | 422,820 | |||||
Interest Expense, Debt, Excluding Amortization | 1,174 | |||||
Amortization of Debt Discount (Premium) | 1,718 | |||||
Amortization of Debt Issuance Costs | 122 | |||||
Interest Expense | 3,014 | |||||
Equity Component [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Deferred Finance Cost, Gross | 2,800 | |||||
Credit Facility [Domain] | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from Lines of Credit | 185,000 | |||||
Interest Expense | 3,400 | $ 0 | ||||
Repayments of Lines of Credit | $ 185,000 | |||||
Liability Component [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Deferred Finance Cost, Gross | $ 10,100 |
Long Term Debt Long Term Debt (
Long Term Debt Long Term Debt (Schedule Of Maturities Of Long-term Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Long-term Debt, Unclassified [Abstract] | ||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | $ 0 | |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 402,500 | |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 0 | |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 0 | |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 0 | |
Long-term Debt, Maturities, Repayments of Principal after Year Five | 1,200,000 | |
Long-term Debt | $ 1,602,500 | $ 1,052,500 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
Lessee, Lease, Description [Line Items] | ||||
Operating Lease, Weighted Average Remaining Lease Term | 5 years 10 months 24 days | |||
Operating Lease, Payments | $ 24,750 | |||
Operating lease right-of-use assets | 125,822 | $ 0 | $ 72,000 | |
Operating Lease, Cost | 23,681 | |||
Short-term Lease, Cost | 1,918 | |||
Lease, Cost | 25,599 | |||
Operating Lease, Liability, Current | 26,927 | 0 | ||
Operating lease liabilities, noncurrent | 104,070 | 0 | ||
Operating Lease, Liability | 130,997 | $ 75,000 | ||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 73,163 | |||
Operating Lease, Weighted Average Discount Rate, Percent | 3.95% | |||
Lessee, Operating Lease, Liability, Payments, Due Next Twelve Months | $ 28,517 | |||
Lessee, Operating Lease, Liability, Payments, Due Year Two | 27,515 | |||
Lessee, Operating Lease, Liability, Payments, Due Year Three | 25,320 | |||
Lessee, Operating Lease, Liability, Payments, Due Year Four | 20,132 | |||
Lessee, Operating Lease, Liability, Payments, Due Year Five | 13,607 | |||
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 34,195 | |||
Lessee, Operating Lease, Liability, Payments, Due | 149,286 | |||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 18,289 | |||
Operating Leases, Rent Expense, Net | 21,000 | $ 15,300 | ||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 19,267 | |||
Operating Leases, Future Minimum Payments, Due in Two Years | 16,196 | |||
Operating Leases, Future Minimum Payments, Due in Three Years | 13,881 | |||
Operating Leases, Future Minimum Payments, Due in Four Years | 12,654 | |||
Operating Leases, Future Minimum Payments, Due in Five Years | 10,977 | |||
Operating Leases, Future Minimum Payments Receivable, Thereafter | 5,456 | |||
Operating Leases, Future Minimum Payments Due | 78,431 | |||
Sublease Income | 3,500 | 2,800 | 700 | |
Operating Leases, Future Minimum Payments Due, Future Minimum Sublease Rentals | 9,800 | |||
Increase Decrease in Operating Lease Liabilities | (20,240) | $ 0 | $ 0 | |
Los Angeles [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Increase Decrease in Operating Lease Assets | 29,000 | |||
Increase Decrease in Operating Lease Liabilities | $ 28,800 |
Commitments And Contingencies C
Commitments And Contingencies Commitments And Contingencies (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement [Line Items] | |||
Repayments of Lines of Credit | $ 185,000 | $ 0 | $ 225,000 |
Line of Credit Facility, Maximum Borrowing Capacity | 200,000 | ||
Line of Credit Facility, Current Borrowing Capacity | 100,000 | ||
Debt Instrument, Face Amount | $ 1,602,500 | $ 1,052,500 | |
Line of Credit Facility, Covenant Terms | The Credit Agreement contains financial maintenance covenants, including (i) a maximum total leverage ratio as of the last date of any fiscal quarter not to exceed 3.00:1.00 for J2 Cloud and its restricted subsidiaries; (ii) a maximum total leverage ratio as of the last date of any fiscal quarter not to exceed 3.25:1.00 for J2 and its restricted subsidiaries; and (iii) a minimum EBITDA of not less than $50.0 million for any fiscal quarter for J2 Cloud and its restricted subsidiaries. The Credit Agreement also contains restrictive covenants that limit, among other things, J2 Cloud’s and its restricted subsidiaries’ ability to incur additional indebtedness, create, incur or assume liens, consolidate, merge, liquidate or dissolve, pay dividends or make other distributions or other restricted payments, make or hold any investments, enter into certain transactions with affiliates, sell assets other than on terms specified by the Credit Agreement, amend the terms of certain other indebtedness and organizational documents and change their lines of business and fiscal years, in each case, subject to customary exceptions. The Credit Agreement also sets forth customary events of default, including, among other things, the failure to make timely payments under the MUFG Credit Facility, the failure to satisfy certain covenants, cross-default and cross-acceleration to other material debt for borrowed money, the occurrence of a change of control and specified events of bankruptcy and insolvency. | ||
Loss Contingency, Estimate of Possible Loss | $ 21,200 | ||
Line of Credit [Member] | |||
Statement [Line Items] | |||
Repayments of Lines of Credit | 225,000 | ||
Line of Credit Facility, Periodic Payment, Interest | $ 500 | ||
Debt Instrument, Face Amount | $ 0 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Taxes [Line Items] | |||||||||
Income tax (benefit) expense | $ (19,376) | $ 44,760 | $ 60,541 | ||||||
Effective income tax rate | (9.70%) | 25.20% | 30.30% | ||||||
Deferred Tax Asset, Intra-entity Transfer, Asset Other than Inventory | $ (53,700) | ||||||||
U.S. federal statutory rate | 21.00% | 21.00% | 35.00% | ||||||
Deferred Tax Assets, Net of Valuation Allowance | $ 78,897 | $ 68,737 | |||||||
Deferred Tax Assets, Tax Credit Carryforwards, Research | 3,200 | 4,600 | |||||||
Undistributed Earnings of Foreign Subsidiaries | 471,900 | ||||||||
Prepaid tax payments | 3,700 | 0 | |||||||
Income before income taxes, foreign operations | 118,000 | 157,700 | $ 138,100 | ||||||
Income before income taxes, domestic operations | 81,600 | 19,900 | 61,900 | ||||||
Liabilities for uncertain income tax positions | 46,703 | 51,271 | 45,012 | $ 41,218 | |||||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 43,900 | 46,800 | 39,800 | ||||||
Unrecognized Tax Benefits, Decreases Resulting from Prior Period Tax Positions | (7,441) | 0 | (401) | ||||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 5,800 | 8,400 | 7,200 | ||||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | (1,800) | $ 1,200 | $ 2,100 | ||||||
California Franchise Tax Board [Member] | |||||||||
Income Taxes [Line Items] | |||||||||
Income Tax Examination, Year under Examination | 2016 | 2015 | 2013 | 2012 | |||||
Internal Revenue Service (IRS) [Member] | |||||||||
Income Taxes [Line Items] | |||||||||
Operating Loss Carryforwards | $ 166,200 | ||||||||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2036 | ||||||||
Income Tax Examination, Year under Examination | 2016 | 2015 | 2014 | 2013 | 2012 | ||||
New York State Division of Taxation and Finance [Member] | |||||||||
Income Taxes [Line Items] | |||||||||
Income Tax Examination, Year under Examination | 2015 | ||||||||
Ministry of the Economy, Finance and Industry, France [Member] | |||||||||
Income Taxes [Line Items] | |||||||||
Income Tax Examination, Year under Examination | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |||
Expiring 2036 [Member] | |||||||||
Income Taxes [Line Items] | |||||||||
Operating Loss Carryforwards | $ 143,000 | ||||||||
No Expiration Date [Member] | |||||||||
Income Taxes [Line Items] | |||||||||
Operating Loss Carryforwards | $ 23,200 |
Income Taxes Income Taxes (Comp
Income Taxes Income Taxes (Components Of Income Tax) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Abstract] | |||
Current Federal Tax Expense (Benefit) | $ 23,306 | $ 17,233 | $ 55,804 |
Current State and Local Tax Expense (Benefit) | 4,774 | (617) | 3,265 |
Current Foreign Tax Expense (Benefit) | 15,988 | 3,094 | 22,904 |
Current Income Tax Expense (Benefit) | 44,068 | 19,710 | 81,973 |
Deferred Federal Income Tax Expense (Benefit) | (1,903) | 16,083 | (15,682) |
Deferred State and Local Income Tax Expense (Benefit) | (5,620) | 2,965 | 962 |
Deferred Foreign Income Tax Expense (Benefit) | (55,921) | 6,002 | (6,712) |
Deferred income taxes | (63,444) | 25,050 | (21,432) |
Income tax (benefit) expense | $ (19,376) | $ 44,760 | $ 60,541 |
Income Taxes Income Taxes (Reco
Income Taxes Income Taxes (Reconciliation Of Statutory Federal Income Tax Rate With Effective Income Tax Rate) (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Abstract] | |||
U.S. federal statutory rate | 21.00% | 21.00% | 35.00% |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes | 0.90% | 1.20% | 0.80% |
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential | (3.80%) | (7.70%) | (16.10%) |
Effective Income Tax Rate Reconciliation Subpart F Income | 1.40% | 1.50% | 7.20% |
Effective Income Tax Rate Reconciliation, Tax Credit, Foreign, Percent | (0.90%) | (1.40%) | (6.20%) |
Effective Income Tax Rate Reconciliation, Tax Contingencies, Reserve | (0.40%) | 4.10% | 3.90% |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance | 0.20% | 0.20% | (0.90%) |
Effective Income Tax Rate Reconciliation, Deductions, Qualified Production Activities | 0.00% | 0.00% | (1.60%) |
Effective Income Tax Rate Reconciliation, Intercompany Transfer of Intangible Assets | (26.90%) | 0.00% | 0.00% |
Effective Income Tax Rate Reconciliation, Tax Cuts and Jobs Act, Transition Tax on Accumulated Foreign Earnings, Percent | 0 | 0 | 0.246 |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | (1.30%) | 0.10% | (16.10%) |
Effective Income Tax Rate Reconciliation, Contingent Liabilities | 0.60% | 2.40% | 0.00% |
Effective Income Tax Rate Reconciliation, Unrecognized Loss on Intercompany Sale | 0.00% | 1.90% | 0.00% |
Effective Income Tax Rate Reconciliation, Other Adjustments | (0.50%) | 1.90% | (0.30%) |
Effective Income Tax Rate, Continuing Operations | (9.70%) | 25.20% | 30.30% |
Income Taxes Income Taxes (Defe
Income Taxes Income Taxes (Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Income Taxes [Abstract] | ||
Deferred Tax Assets, Operating Loss Carryforwards | $ 43,352 | $ 36,038 |
Deferred Tax Assets, Tax Credit Carryforwards | 4,152 | 4,784 |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Accrued Liabilities | 9,946 | 5,717 |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Allowance for Doubtful Accounts | 2,547 | 1,776 |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Share-based Compensation Cost | 4,669 | 5,038 |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Impairment Losses | 1,675 | 1,466 |
Deferred Tax Assets, Deferred Income | 0 | 1,948 |
Deferred Tax Assets, State Taxes | 3,206 | 2,097 |
Deferred Tax Assets, Other | 9,958 | 9,917 |
Deferred Tax Assets, Gross | 79,505 | 68,781 |
Deferred Tax Assets, Valuation Allowance | (608) | (44) |
Deferred Tax Assets, Net of Valuation Allowance | 78,897 | 68,737 |
Deferred Tax Liabilities, Property, Plant and Equipment | 15,767 | 6,568 |
Deferred Tax Liabilities, Intangible Assets | (42,880) | (96,869) |
Deferred Tax Liabilities, Prepaid Insurance | (1,847) | (2,149) |
Deferred Tax Liability, Convertible Debt | (65,217) | (31,994) |
Deferred Tax Liabilities, Foreign Other | (663) | (205) |
Deferred Tax Liabilities, Net | (126,374) | (137,785) |
Deferred Tax Assets, Net | $ (47,477) | $ (69,048) |
Income Taxes Income Taxes (Re_2
Income Taxes Income Taxes (Reconciliation Of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Abstract] | ||||
Unrecognized Tax Benefits | $ 46,703 | $ 51,271 | $ 45,012 | $ 41,218 |
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 5,285 | 2,508 | 0 | |
Unrecognized Tax Benefits, Decreases Resulting from Prior Period Tax Positions | (7,441) | 0 | (401) | |
Unrecognized Tax Benefits, Increases Resulting from Current Period Tax Positions | 4,069 | 3,751 | 7,223 | |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | (5,831) | 0 | (2,639) | |
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | $ (650) | $ 0 | $ (389) |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | May 02, 2019 | Feb. 06, 2019 | Oct. 29, 2018 | Aug. 08, 2018 | May 03, 2018 | Feb. 02, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
Class of Stock [Line Items] | ||||||||
Aggregate cost for repurchase of common stock | $ 15,981 | $ 42,543 | ||||||
Shares surrendered to pay exercise price or satisfy tax withholding obligations for stock options exercised/restricted stock | 71,077 | |||||||
Dividend, declaration date | May 2, 2019 | Feb. 6, 2019 | Oct. 29, 2018 | Aug. 8, 2018 | May 3, 2018 | Feb. 2, 2018 | ||
Dividend amount to be paid, per common share (in dollars per share) | $ 0.4550 | $ 0.4450 | $ 0.4350 | $ 0.4250 | $ 0.4150 | $ 0.4050 | ||
Dividend, date of record | May 20, 2019 | Feb. 25, 2019 | Nov. 19, 2018 | Aug. 20, 2018 | May 18, 2018 | Feb. 22, 2018 | ||
Dividend, date to be paid | Jun. 4, 2019 | Mar. 12, 2019 | Dec. 5, 2018 | Sep. 4, 2018 | Jun. 1, 2018 | Mar. 9, 2018 | ||
2012 Repurchase Program [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Maximum number of shares authorized to be repurchased | 5,000,000,000,000 | |||||||
Stock Repurchased | 197,870 | 600,000 | ||||||
Aggregate cost for repurchase of common stock | $ 16,000 | $ 42,500 | ||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 1,140,819 |
Stock Options And Employee St_3
Stock Options And Employee Stock Purchase Plan (Narrative) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)$ / sharesyrshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | |
Number of Shares, Exercisable | shares | 163,741 | 298,577 | 361,875 |
Weighted-Average Exercise Price, Exercisable | $ / shares | $ 45.94 | $ 32.15 | $ 29.92 |
Expiration period of options granted (in years) | yr | 10 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||
Number of options granted | shares | 0 | 400,000 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 19.39 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | $ 10,400 | $ 3,800 | $ 2,100 |
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Vested In Period, Total Fair Value | 1,000 | 100 | 600 |
Exercise of stock options | $ 5,274 | $ 1,540 | $ 1,108 |
Estimated forfeiture rate | 13.90% | 11.80% | 14.30% |
Share-based compensation expense | $ 23,922 | $ 28,093 | $ 22,737 |
Share-based Payment Arrangement, Expense, Tax Benefit | 2,400 | 900 | 700 |
Dividend, Share-based Payment Arrangement | 100 | 100 | 100 |
Stock Options [Member] | |||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 6,800 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 5 years 11 months 4 days | ||
Share-based compensation expense | $ 900 | $ 900 | $ 400 |
Restricted Stock And Restricted Stock Unit (RSU) [Member] | |||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 46,100 | ||
Shares, Granted | shares | 117,566 | 376,799 | 214,505 |
Share-based compensation expense | $ 21,700 | $ 26,400 | $ 22,200 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Total Fair Value | 12,700 | 9,700 | 15,100 |
Share-based Payment Arrangement, Expense, Tax Benefit | $ 2,400 | $ 2,400 | $ 2,300 |
Restricted (Performance) Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 69.99 | $ 52.95 | $ 72.20 |
Shares, Granted | shares | 74,051 | 473,501 | 85,825 |
Restricted Stock [Member] | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 4 years 10 months 24 days | ||
Shares, Granted | shares | 187,773 | 830,256 | 289,230 |
Weighted-Average Grant-Date Fair Value, Granted | $ / shares | $ 79 | $ 63.55 | $ 61.34 |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 3 years | ||
Shares, Granted | shares | 3,844 | 20,044 | 11,100 |
Employee Stock Purchase Plan [Member] | |||
Estimated forfeiture rate | 5.80% | 1.96% | 0.00% |
Share-based compensation expense | $ 1,300 | $ 700 | $ 0 |
Maximum issuance of common stock | shares | 2,000,000 | ||
Maximum earnings withheld by the employees | 15.00% | ||
Market value of common stock on the date of grant for incentive stock options | 95.00% | ||
Number of shares purchased under the plan | shares | 66,413 | 33,262 | 3,283 |
Number of shares available for issuance | shares | 1,523,568 | ||
2007 Stock Plan [Member] | |||
Maximum issuance of common stock | shares | 4,500,000 | ||
2015 Stock Option Plan [Member] | |||
Maximum issuance of common stock | shares | 4,200,000 | ||
Number of shares available for issuance | shares | 2,196,968 | ||
Minimum [Member] | Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased | $ / shares | $ 62.04 | ||
Minimum [Member] | 2007 Stock Plan [Member] | |||
Market value of common stock on the date of grant for incentive stock options | 85.00% | ||
Maximum [Member] | Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased | $ / shares | $ 73.47 |
Stock Options And Employee St_4
Stock Options And Employee Stock Purchase Plan (Stock Options) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Number of Shares, Outstanding Beginning of Period | 707,777 | 375,675 | 413,858 |
Number of options granted | 0 | 400,000 | 0 |
Number of Shares, Exercised | (189,436) | (67,898) | (38,183) |
Number of Shares, Canceled | 0 | 0 | 0 |
Number of Shares, Outstanding Ending of Period | 518,341 | 707,777 | 375,675 |
Number of Shares, Exercisable | 163,741 | 298,577 | 361,875 |
Number of Shares, Vested and expected to vest | 401,776 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Weighted-Average Exercise Price, Outstanding Beginning of Period | $ 56.84 | $ 31.30 | $ 31.09 |
Weighted-Average Exercise Price, Granted | 0 | 75.03 | 0 |
Weighted-Average Exercise Price, Exercised | 32.39 | 22.68 | 29.03 |
Weighted-Average Exercise Price, Canceled | 0 | 0 | 0 |
Weighted-Average Exercise Price, Outstanding Ending of Period | 65.77 | 56.84 | 31.30 |
Weighted-Average Exercise Price, Exercisable | 45.94 | $ 32.15 | $ 29.92 |
Weighted-Average Exercise Price, Vested and expected to vest | $ 63.09 | ||
Weighted-Average Remaining Contractual Term, Outstanding (in years) | 6 years 7 months 6 days | ||
Weighted-Average Remaining Contractual Term, Exercisable (in years) | 3 years 7 months 6 days | ||
Weighted-Average Remaining Contractual Term, Vested and expected to vest (in years) | 6 years 2 months 12 days | ||
Aggregate Intrinsic Value, Outstanding | $ 14,480,395 | ||
Aggregate Intrinsic Value, Exercisable | 7,821,139 | ||
Aggregate Intrinsic Value, Vested and expected to vest | $ 12,301,167 |
Stock Options And Employee St_5
Stock Options And Employee Stock Purchase Plan (Outstanding And Exercisable Options) (Details) | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options Outstanding, Number Outstanding | shares | 518,341 |
Options Outstanding, Weighted Average Remaining Contractual Life | 6 years 7 months 2 days |
Options Outstanding, Weighted Average Exercise Price | $ 65.77 |
Exercisable Options, Number Exercisable | shares | 163,741 |
Exercisable Options, Weighted Average Exercise Price | $ 45.94 |
Range One [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options Outstanding, Number Outstanding | shares | 41,530 |
Options Outstanding, Weighted Average Remaining Contractual Life | 10 days |
Options Outstanding, Weighted Average Exercise Price | $ 22.92 |
Exercisable Options, Number Exercisable | shares | 41,530 |
Exercisable Options, Weighted Average Exercise Price | $ 22.92 |
Exercise price range (in dollars per share) | $ 22.92 |
Range Two [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options Outstanding, Number Outstanding | shares | 45,351 |
Options Outstanding, Weighted Average Remaining Contractual Life | 1 year 4 months 9 days |
Options Outstanding, Weighted Average Exercise Price | $ 29.34 |
Exercisable Options, Number Exercisable | shares | 45,351 |
Exercisable Options, Weighted Average Exercise Price | $ 29.34 |
Exercise price range (in dollars per share) | $ 29.34 |
Range Three [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options Outstanding, Number Outstanding | shares | 8,460 |
Options Outstanding, Weighted Average Remaining Contractual Life | 2 years 2 months 1 day |
Options Outstanding, Weighted Average Exercise Price | $ 29.53 |
Exercisable Options, Number Exercisable | shares | 8,460 |
Exercisable Options, Weighted Average Exercise Price | $ 29.53 |
Exercise price range (in dollars per share) | $ 29.53 |
Range Four [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options Outstanding, Number Outstanding | shares | 23,000 |
Options Outstanding, Weighted Average Remaining Contractual Life | 5 years 4 months 6 days |
Options Outstanding, Weighted Average Exercise Price | $ 67.35 |
Exercisable Options, Number Exercisable | shares | 18,400 |
Exercisable Options, Weighted Average Exercise Price | $ 67.35 |
Exercise price range (in dollars per share) | $ 67.35 |
Range Five [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options Outstanding, Number Outstanding | shares | 400,000 |
Options Outstanding, Weighted Average Remaining Contractual Life | 8 years |
Options Outstanding, Weighted Average Exercise Price | $ 75.03 |
Exercisable Options, Number Exercisable | shares | 50,000 |
Exercisable Options, Weighted Average Exercise Price | $ 75.03 |
Exercise price range (in dollars per share) | $ 75.03 |
Stock Options And Employee St_6
Stock Options And Employee Stock Purchase Plan (Assumptions To Estimate Fair Value Of Stock Options) (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Risk-free interest rate | 0.00% | 2.40% | 0.00% |
Expected term (in years) | 0 days | 6 years 8 months 12 days | 0 days |
Dividend yield | 0.00% | 2.20% | 0.00% |
Expected volatility | 0.00% | 29.20% | 0.00% |
Weighted average volatility | 0.00% | 29.20% | 0.00% |
Stock Options And Employee St_7
Stock Options And Employee Stock Purchase Plan (Restricted Stock) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Expected volatility | 0.00% | 29.20% | 0.00% |
Risk-free interest rate | 0.00% | 2.40% | 0.00% |
Restricted (Performance) Stock [Member] | |||
Underlying stock price at valuation date | $ 84.58 | $ 82.11 | $ 91.17 |
Expected volatility | 28.30% | 28.40% | 29.00% |
Risk-free interest rate | 2.53% | 2.89% | 2.17% |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Shares, Granted | 74,051 | 473,501 | 85,825 |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Nonvested, Beginning of Period | 1,207,011 | 605,566 | 705,015 |
Shares, Granted | 187,773 | 830,256 | 289,230 |
Shares, Vested | (172,884) | (157,972) | (381,411) |
Shares, Canceled | (116,841) | (70,839) | (7,268) |
Nonvested, End of Period | 1,105,059 | 1,207,011 | 605,566 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted-Average Grant-Date Fair Value, Nonvested, Beginning of Period | $ 64.82 | $ 51.57 | $ 41.40 |
Weighted-Average Grant-Date Fair Value, Granted | 79 | 63.55 | 61.34 |
Weighted-Average Grant-Date Fair Value, Vested | 73.65 | 61.29 | 39.71 |
Weighted-Average Grant-Date Fair Value, Canceled | 72.58 | 74.84 | 76.08 |
Weighted-Average Grant-Date Fair Value, Nonvested, End of Period | $ 64.76 | $ 64.82 | $ 51.57 |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Nonvested, Beginning of Period | 41,231 | 38,400 | 51,950 |
Shares, Granted | 3,844 | 20,044 | 11,100 |
Shares, Vested | (12,343) | (11,540) | (16,370) |
Shares, Canceled | (11,858) | (5,673) | (8,280) |
Nonvested, End of Period | 20,874 | 41,231 | 38,400 |
Shares, Vested and expected to vest | 15,903 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Outstanding, Weighted-Average Remaining Contractual Life (in Years) | 2 years 1 month 6 days | ||
Vested and expected to vest, Weighted-Average Remaining Contractual Life (in Years) | 1 year 7 months 6 days | ||
Outstanding, Aggregate Intrinsic Value | $ 1,956,103 | ||
Vested and expected to vest, Aggregate Intrinsic Value | $ 1,490,255 |
Defined Contribution 401(k) S_2
Defined Contribution 401(k) Savings Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Contribution 401(k) Savings Plan [Abstract] | |||
Defined Contribution Plan, Cost | $ 3,700 | $ 3,600 | $ 3,000 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share Reconciliation [Abstract] | |||||||||||
Net income | $ 123,023 | $ 30,745 | $ 32,589 | $ 32,449 | $ 50,614 | $ 30,723 | $ 28,479 | $ 18,871 | $ 218,806 | $ 128,687 | $ 139,425 |
Net income available to participating securities | 3,496 | 1,885 | 1,792 | ||||||||
Net earnings available to common shareholders | $ 215,310 | $ 126,802 | $ 137,633 | ||||||||
Basic (in shares) | 47,626,833 | 47,673,211 | 47,727,786 | 47,560,749 | 47,967,014 | 48,009,953 | 47,951,326 | 47,873,007 | 47,647,397 | 47,950,746 | 47,586,242 |
Dilutive effect of equity incentive plans (in shares) | 78,076 | 146,906 | 228,166 | ||||||||
Dilutive effect of convertible debt (in shares) | 1,300,211 | 830,139 | 854,619 | ||||||||
Diluted (in shares) | 49,425,395 | 49,064,272 | 49,102,879 | 48,509,181 | 48,505,023 | 49,279,217 | 49,218,521 | 48,706,717 | 49,025,684 | 48,927,791 | 48,669,027 |
Basic (in dollars per share) | $ 2.54 | $ 0.63 | $ 0.67 | $ 0.67 | $ 1.04 | $ 0.63 | $ 0.59 | $ 0.39 | $ 4.52 | $ 2.64 | $ 2.89 |
Earnings Per Share, Diluted | $ 2.45 | $ 0.62 | $ 0.66 | $ 0.66 | $ 1.03 | $ 0.61 | $ 0.57 | $ 0.38 | $ 4.39 | $ 2.59 | $ 2.83 |
Share options excluded from the computation of diluted earnings per share | 0 | 0 | 0 |
Segment Information - Reportabl
Segment Information - Reportable Segment Information (Reconciliation of Total Segment Operating Income to Consolidated Operating Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | $ 405,588 | $ 344,141 | $ 322,432 | $ 299,893 | $ 346,059 | $ 292,724 | $ 287,889 | $ 280,623 | $ 1,372,054 | $ 1,207,295 | $ 1,117,838 |
Gross Profit | $ 341,260 | $ 282,425 | $ 262,166 | $ 248,880 | $ 290,097 | $ 243,507 | $ 240,140 | $ 232,478 | 1,134,731 | 1,006,221 | 945,525 |
Direct Costs By Segment | 857,651 | 761,941 | 699,817 | ||||||||
Income from operations | 277,080 | 244,280 | 245,708 | ||||||||
Fax and Martech [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 366,727 | 360,479 | 350,542 | ||||||||
Gross Profit | 317,065 | 323,855 | 311,942 | ||||||||
Direct Costs By Segment | 124,589 | 128,898 | 135,157 | ||||||||
Income from operations | 192,476 | 194,957 | 176,785 | ||||||||
Voice, Backup, Security and CPP [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 295,108 | 237,496 | 228,414 | ||||||||
Gross Profit | 200,500 | 151,966 | 148,268 | ||||||||
Direct Costs By Segment | 155,172 | 116,803 | 99,009 | ||||||||
Income from operations | 45,328 | 35,163 | 49,259 | ||||||||
Cloud Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 661,835 | 597,975 | 578,956 | ||||||||
Gross Profit | 517,565 | 475,821 | 460,210 | ||||||||
Direct Costs By Segment | 279,761 | 245,701 | 234,166 | ||||||||
Income from operations | 237,804 | 230,120 | 226,044 | ||||||||
Digital Media | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 710,511 | 609,374 | 538,939 | ||||||||
Gross Profit | 617,458 | 530,455 | 485,365 | ||||||||
Direct Costs By Segment | 550,834 | 489,019 | 437,297 | ||||||||
Income from operations | 66,624 | 41,436 | 48,068 | ||||||||
Intersegment Eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | (300) | (60) | (57) | ||||||||
Gross Profit | (300) | (60) | (50) | ||||||||
Direct Costs By Segment | (300) | (60) | (50) | ||||||||
Reportable segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 1,372,046 | 1,207,289 | 1,117,838 | ||||||||
Gross Profit | 1,134,723 | 1,006,216 | 945,525 | ||||||||
Direct Costs By Segment | 830,295 | 734,660 | 671,413 | ||||||||
Income from operations | 304,428 | 271,556 | 274,112 | ||||||||
Corporate, Non-Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 8 | 6 | 0 | ||||||||
Gross Profit | 8 | 5 | 0 | ||||||||
Direct Costs By Segment | 27,356 | 27,281 | 28,404 | ||||||||
Corporate Cost | $ (27,348) | $ (27,276) | $ (28,404) |
Segment Information - Reporta_2
Segment Information - Reportable Segment Information (Total Assets, Capital Expenditures, Depreciation And Amortization) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Assets | $ 3,505,846 | $ 2,560,830 | |
Capital expenditures | 70,588 | 56,379 | $ 39,595 |
Total capital expenditures | 70,588 | 56,379 | 39,595 |
Total depreciation and amortization | 232,032 | 187,174 | 162,041 |
Cloud Services | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Assets | 1,466,969 | 1,047,245 | |
Capital expenditures | 21,826 | 13,832 | 7,031 |
Total depreciation and amortization | 80,970 | 60,754 | 68,436 |
Digital Media | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Assets | 1,561,024 | 1,455,620 | |
Capital expenditures | 48,736 | 42,547 | 32,564 |
Total depreciation and amortization | 148,575 | 122,843 | 93,605 |
Reportable segments | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Assets | 3,027,993 | 2,502,865 | |
Capital expenditures | 70,562 | 56,379 | 39,595 |
Total depreciation and amortization | 229,545 | 183,597 | 162,041 |
Corporate (1) | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Assets | 477,853 | 57,965 | |
Capital expenditures | 26 | 0 | 0 |
Total depreciation and amortization | $ 2,487 | $ 3,577 | $ 0 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | $ 405,588 | $ 344,141 | $ 322,432 | $ 299,893 | $ 346,059 | $ 292,724 | $ 287,889 | $ 280,623 | $ 1,372,054 | $ 1,207,295 | $ 1,117,838 |
Total long-lived assets | 778,507 | 593,595 | 778,507 | 593,595 | |||||||
United States | |||||||||||
Revenues | 1,100,298 | 924,051 | 830,800 | ||||||||
Total long-lived assets | 701,580 | 530,785 | 701,580 | 530,785 | |||||||
Canada | |||||||||||
Revenues | 67,518 | 73,742 | 78,099 | ||||||||
Ireland | |||||||||||
Revenues | 59,009 | 69,291 | 74,430 | ||||||||
All other countries | |||||||||||
Revenues | 145,229 | 140,211 | $ 134,509 | ||||||||
Total long-lived assets | $ 76,927 | $ 62,810 | $ 76,927 | $ 62,810 |
Supplemental Cash Flows Infor_2
Supplemental Cash Flows Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Noncash or Part Noncash Divestitures [Line Items] | |||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | $ 55,400 | $ 54,000 | $ 35,800 |
Cash paid for income taxes | 45,900 | 37,600 | 51,100 |
Tax Benefit from Stock Options Exercised | $ 4,800 | $ 3,300 | $ 2,900 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Accumulated Other Comprehensive Income Roll Forward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance, Unrealized Gains (Losses) on Investments | $ (1,418) | $ 0 | $ 0 |
Beginning Balance, Foreign Currency Translation | (44,561) | (29,090) | (54,649) |
Beginning Balance, Total | (45,979) | (29,090) | (54,649) |
Other comprehensive income (loss) before reclassifications, Unrealized Gain (Losses) on Investments | 1,143 | (1,418) | 0 |
Other comprehensive income (loss) before reclassifications, Foreign Currency Translation | (1,626) | (15,471) | 25,559 |
Other comprehensive income (loss) before reclassifications, Total | (483) | (16,889) | 25,559 |
Net increase (decrease) in other comprehensive income, Unrealized Gains (Losses) on Investments | 1,143 | (1,418) | 0 |
Net increase (decrease) in other comprehensive income, Foreign Currency Translation | (1,626) | (15,471) | 25,559 |
Net increase (decrease) in other comprehensive income, Total | (483) | (16,889) | 25,559 |
Ending Balance, Unrealized Gains (Losses) on Investments | (275) | (1,418) | 0 |
Ending Balance, Foreign Currency Translation | (46,187) | (44,561) | (29,090) |
Ending Balance, Total | $ (46,462) | $ (45,979) | $ (29,090) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Reclassification out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income [Abstract] | |||
Total reclassifications for the period | $ 0 | $ 0 | $ 0 |
Quarterly Results (Details)
Quarterly Results (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Results [Abstract] | |||||||||||
Total revenues | $ 405,588 | $ 344,141 | $ 322,432 | $ 299,893 | $ 346,059 | $ 292,724 | $ 287,889 | $ 280,623 | $ 1,372,054 | $ 1,207,295 | $ 1,117,838 |
Gross Profit | 341,260 | 282,425 | 262,166 | 248,880 | 290,097 | 243,507 | 240,140 | 232,478 | 1,134,731 | 1,006,221 | 945,525 |
Net income attributable to j2 Global, Inc. common shareholders | $ 123,023 | $ 30,745 | $ 32,589 | $ 32,449 | $ 50,614 | $ 30,723 | $ 28,479 | $ 18,871 | $ 218,806 | $ 128,687 | $ 139,425 |
Net income per common share: | |||||||||||
Basic (in dollars per share) | $ 2.54 | $ 0.63 | $ 0.67 | $ 0.67 | $ 1.04 | $ 0.63 | $ 0.59 | $ 0.39 | $ 4.52 | $ 2.64 | $ 2.89 |
Earnings Per Share, Diluted | $ 2.45 | $ 0.62 | $ 0.66 | $ 0.66 | $ 1.03 | $ 0.61 | $ 0.57 | $ 0.38 | $ 4.39 | $ 2.59 | $ 2.83 |
Weighted average shares outstanding | |||||||||||
Basic (in shares) | 47,626,833 | 47,673,211 | 47,727,786 | 47,560,749 | 47,967,014 | 48,009,953 | 47,951,326 | 47,873,007 | 47,647,397 | 47,950,746 | 47,586,242 |
Diluted (in shares) | 49,425,395 | 49,064,272 | 49,102,879 | 48,509,181 | 48,505,023 | 49,279,217 | 49,218,521 | 48,706,717 | 49,025,684 | 48,927,791 | 48,669,027 |