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(b) Employee Stock Purchase Plan
In May of 2001, j2 Global established the j2 Global Communications, Inc. 2001 Employee Stock Purchase Plan (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. During 2010, 2009 and 2008, 4,894, 5,808 and 9,632 shares, respectively, were purchased under
the Purchase Plan at prices ranging from $25.03 to $19.51 per share. As of December 31, 2010, 1,656,633 shares were available under the
Purchase Plan for future issuance.
12. Defined Contribution 401(k) Savings Plan
j2 Global has a 401(k) Savings Plan covering substantially all of its employees. Eligible employees may contribute through payroll
deductions. The Company may make annual contributions to the 401(k) Savings Plan at the discretion of j2 Global’
s Board of Directors. For the
years ended December 31, 2010 and 2009, the Company accrued $0.1 million and zero, respectively, for contributions to the 401(k) Savings
Plan.
13. Earnings Per Share
Basic earnings per share is computed on the basis of the weighted average number of common shares outstanding. Diluted earnings per
share is computed on the basis of the weighted average number of common shares outstanding plus the effect of outstanding stock options,
warrants and restricted stock using the “treasury stock”
method. The components of basic and diluted earnings per share are as follows (in
thousands, except share and per share data):
For the years ended December 31, 2010, 2009 and 2008, there were 551,130, 815,409 and 1,768,181 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 shares.
14. Geographic Information
j2 Global maintains operations in the U.S., Canada, Ireland, the United Kingdom and other international territories. Geographic
information about the U.S. and international territories for the reporting period is presented below. Such information attributes revenues based on
the location of a customer’s DID for services using such a number or a customer’s residence for other services (in thousands).
Years Ended December 31,
2010
2009
2008
Numerator for basic and diluted income per common share:
Net earnings
$
83,047
$
66,827
$
72,562
Denominator:
Weighted average outstanding shares of common stock
44,578,036
43,936,194
44,609,174
Dilutive effect of:
Employee stock options
1,081,930
1,094,740
1,281,497
Restricted stock
281,877
107,067
46,836
Common stock and common stock equivalents
45,941,843
45,138,001
45,937,506
Net earnings per share:
Basic
$
1.86
$
1.52
$
1.63
Diluted
$
1.81
$
1.48
$
1.58
Year Ended December 31,
2010
2009
2008
Revenue:
United States
$
208,779
$
209,547
$
204,444
All other countries
46,615
36,024
37,069
Total
$
255,394
$
245,571
$
241,513
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