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Year Ended December 31,
2008 2007 2006
Revenue:
United States $ 204,444 $ 192,445 $ 161,336
All other countries 37,069 28,252 19,743
Total $ 241,513 $ 220,697 $ 181,079
As of December 31,
2008 2007
Long-lived assets:
United States $ 43,163 $ 42,078
All other countries 9,885 8,269
Total $ 53,048 $ 50,347
15. Related Party Transactions
(a) Lease and Expense Reimbursement
We lease our headquarters office from a company that is affiliated with the Chairman of the Board. For fiscal 2008, 2007 and
2006, we paid $1.3 million, $1.1 million and $0.8 million, respectively in rent expense to this company. We also incurred
approximately $37,000, $15,000 and $16,000 for expenses for services rendered by firms affiliated with our Chairman of the Board
during 2008, 2007 and 2006, respectively. We believe this lease was entered into at prevailing market rates, and that all expense
reimbursements were based on actual amounts paid to third parties without markup or markdown.
(b) Consulting Services
j2 Global engages the consulting services of its Chairman of the Board through an agreement with Orchard Capital Corporation,
a company controlled by its Chairman of the Board. For each of the years ended December 31, 2008, 2007 and 2006, j2 Global paid
Orchard Capital $0.3 million for these services.
On October 1, 2008, j2 Global entered into a Consultancy Agreement with John F. Rieley, a member of j2 Global’s Board of
Directors. The Consultancy Agreement has a one year term, commencing on October 1, 2008, and automatically renews for successive
one year terms unless terminated by either party at any time and for any reason. Pursuant to the Consultancy Agreement, Mr.
Rieley assists j2 Global in developing and implementing a voice services public relations program. In exchange for these services, Mr.
Rieley receives annual compensation of $0.1 million payable monthly in advance. In addition, in the event that j2 Global requests that
Mr. Rieley work more than 20 hours in any calendar month, j2 Global will pay Mr. Rieley an additional $500 per hour for each
additional hour worked.
16. Supplemental Cash Flows Information
Interest income received during the years ended December 31, 2008, 2007 and 2006 was $4.8 million, $9.3 million and $7.3
million, respectively, substantially all of which related to interest earned on cash, cash equivalents and short and long-term
investments.
Cash paid for interest during the years ended December 31, 2008, 2007 and 2006 approximated $0.1 million, $2,000 and
$26,000, respectively, substantially all of which related to interest on foreign taxes and interest on settled acquisition holdback.
We paid cash of $29.9 million, $12.3 million and $20.0 million for taxes during the years ended December 31, 2008, 2007 and
2006, respectively.
We acquired property and equipment for $0.1 million, $0.8 million and $0.3 million during 2008, 2007 and 2006, respectively,
which had not been yet paid at the end of each such year.
During 2008, 2007 and 2006, we recorded the tax benefit from the exercise of non-qualified stock options and restricted stock
as a reduction of our income tax liability of $2.0 million, $3.6 million and $1.6 million, respectively.