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J2 GLOBAL, INC.
FORM 10-K
(Annual Report)
Filed 03/01/13 for the Period Ending 12/31/12
Address 6922 HOLLYWOOD BLVD
LEGAL DEPT - 5TH FLOOR
LOS ANGELES, CA 90028
Telephone 3238609200
CIK 0001084048
Symbol JCOM
SIC Code 4822 - Telegraph and Other Message Communications
Industry Communications Services
Sector Services
Fiscal Year 12/31
http://www.edgar-online.com
© Copyright 2013, EDGAR Online, Inc. All Rights Reserved.
Distribution and use of this document restricted under EDGAR Online, Inc. Terms of Use.

Table of contents

  • Page 1
    J2 GLOBAL, INC. FORM 10-K (Annual Report) Filed 03/01/13 for the Period Ending 12/31/12 Address 6922 HOLLYWOOD BLVD LEGAL DEPT - 5TH FLOOR LOS ANGELES, CA 90028 3238609200 0001084048 JCOM 4822 - Telegraph and Other Message Communications Communications Services Services 12/31 Telephone CIK Symbol...

  • Page 2
    ..., Los Angeles, California 90028, (323) 860-9200 (Address and telephone number of principal executive offices) Securities registered pursuant to Section 12(b) of the Act: None Securities registered pursuant to Section 12(g) of the Act: Common Stock, $0.01 par value (Title of class) Indicate by check...

  • Page 3
    ... -288 Directors, Executive Officers and Corporate Governance Executive Compensation Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters Certain Relationships and Related Transactions, and Director Independence Principal Accounting Fees and Services 88 88 88...

  • Page 4
    ... sales and enhance productivity, mobility, business continuity and security. Our eFax® and MyFax® online fax services enable users to receive faxes into their email inboxes and to send faxes via the Internet. eVoice® and Onebox® provide our customers a virtual phone system with various available...

  • Page 5
    ... brands including MyFax® , eFax Plus ®, eFax Pro™, eFax Corporate™ and eFax Developer™ . Voice and Unified Communications eVoice® is a virtual phone system that provides small and medium-sized businesses on-demand voice communications services, featuring a toll-free or local company DID...

  • Page 6
    ...to all subscribers. Paying subscribers have access to live-operator telephone support seven days per week, 24 hours per day. Dedicated telephone support is provided for corporate customers 24 hours per day, seven days per week. Live sales and customer support services are available in nine languages...

  • Page 7
    ... product reviews and online forums. LogicBuy.com is a destination for the best deals and discounts on the web. LogicBuy.com curates up-to-the-minute deals and coupons on electronics, hardware, software and more. The IGN Entertainment, Inc. web properties acquired in February 2013 include gaming site...

  • Page 8
    ...a permanent injunction against continued infringement and attorneys' fees, interest and costs. We own and use a number of trademarks in connection with our services, including word and logo trademarks for eFax, MyFax, eFax Corporate, eVoice, Fusemail, KeepItSafe, Onebox and PCMag, among others. Many...

  • Page 9
    ...on the Investor Relations portion of this Website the public can access free of charge our annual, quarterly and current reports, changes in the stock ownership of our directors and executive officers and other documents filed with the Securities and Exchange Commission ("SEC") as soon as reasonably...

  • Page 10
    ...compared to our competitors that have less indebtedness; and limit our ability to borrow additional funds for working capital, capital expenditures, acquisitions, debt service requirements, execution of our business strategy or other general corporate purposes. In addition, the credit agreement...

  • Page 11
    ...on us and may limit our ability to plan for or react to market conditions, meet capital needs or make acquisitions, or otherwise restrict our activities or business plans. These include restrictions on our ability to incur additional indebtedness; create liens; engage in sale-leaseback transactions...

  • Page 12
    ...as sales and use tax, value added tax ("VAT"), goods and services tax, business tax and gross receipt tax) to ecommerce businesses such as j2 Global and our users is a complex and evolving issue. In November 2007, the U.S. federal government enacted legislation extending the moratorium on states and...

  • Page 13
    ... solutions and so our operations in international markets may not develop at a rate that supports our level of investments. We rely heavily on the revenue generated by our fax services. Currently, a substantial portion of the overall traffic on our Business Cloud Services segment's network is fax...

  • Page 14
    ...cloud services customers authorize us to bill their credit or debit card accounts directly for all transaction fees charged by us. We rely on encryption and authentication technology to effect secure transmission of confidential information, including customer credit and debit card numbers. Advances...

  • Page 15
    ...or any failure by them to handle current or higher volumes of activity could have a material adverse effect on our business, prospects, financial condition, operating results and cash flows. To obtain new cloud services customers, we have marketing agreements with operators of leading search engines...

  • Page 16
    competitors offer their services at lower prices than we do. These companies may be able to develop and expand their network infrastructures and capabilities more quickly, adapt more swiftly to new or emerging technologies and changes in customer requirements, take advantage of acquisition and other...

  • Page 17
    ... and debt service requirements. We m ay also use cash to make acquisitions, which may limit our availability of cash for other uses, such as interest payments, stock repurchases or dividends. We will be required to review goodwill and other intangible assets for impairment in connection with past...

  • Page 18
    ... "information services," that we are entitled to other exemptions, meaning that we are not currently subject to U.S. telecommunications services regulation at both the federal and state levels. In connection with our cloud services business, we utilize data transmissions over public telephone lines...

  • Page 19
    ..., the FCC, and a number of states require regulated telecommunications carriers to contribute to federal and/or state Universal Service Funds ("USF"). Generally, USF is used to subsidize the cost of providing service to low-income customers and those living in high cost or rural areas. Congress...

  • Page 20
    ... to offer new services that use more bandwidth. The FCC "open Internet" or "network neutrality" rules became effective on November 20, 2011. These rules generally prohibit broadband Internet access providers from blocking lawful content, applications, services or non-harmful devices, subject to...

  • Page 21
    ...to obtain access to new technologies on acceptable terms or at all, and may therefore be unable to offer services in a competitive manner. Any of the foregoing risks could have a material adverse effect on our business, prospects, financial condition, operating results and cash flows. Increased cost...

  • Page 22
    ... effect on our business, prospects, financial condition, operating results and cash flows. Item 1B. Unresolved Staff Comments None. Item 2. Properties As of December 31, 2012 , we were leasing approximately 40,000 square feet of office space for our headquarters in Los Angeles, California under...

  • Page 23
    ... use of its intellectual property, j2 Global has ongoing litigation against several companies for infringing its patents relating to online fax, voice and other messaging technologies, including, but not limited to OpenText Corporation ("Open Text") and its subsidiary EasyLink Services International...

  • Page 24
    ...sue IGC. IGC seeks monetary damages, attorneys' fees, fees and costs, injunctive relief and specific performance of the alleged covenant not to sue IGC. On August 24, 2012, j2 Global filed a motion to dismiss or alternatively to transfer the case to the Central District of California. The motion was...

  • Page 25
    ... its answer to j2 Global's appeal, which was a mere endorsement of the August 16, 2012 office action. On November 19, 2012, j2 Global filed a Request for Oral Hearing in the appeal of the inter-partes reexamination of the '823 Patent in front of the BPAI. j2 Global does not believe, based on current...

  • Page 26
    ... Purchases of Equity Securities Market Information Our common stock is traded on the NASDAQ Global Select Market under the symbol "JCOM". The following table sets forth the high and low closing sale prices for our common stock for the periods indicated, as reported by the NASDAQ Global Select Market...

  • Page 27
    ...options and/or the vesting of restricted stock issued to employees. Equity Compensation Plan Information The following table provides information as of December 31, 2012 regarding shares outstanding and available for issuance under j2 Global's existing equity compensation plans: Number of Securities...

  • Page 28
    ...Section and shall not be deemed to be incorporated by reference into any filing of j2 Global under the Securities Act of 1933, as amended, or the Exchange Act. The following graph compares the cumulative total stockholder return for j2 Global, the NASDAQ Computer Index and an index of companies that...

  • Page 29
    [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] - 28 -

  • Page 30
    ...,779 30,952 66,827 - 66,827 $ $ $ 2012 Statement of Income Data: Revenues Cost of revenues Gross profit Operating expenses: Sales and marketing Research, development and engineering General and administrative Loss on disposal of long-lived asset Total operating expenses Income from operations Other...

  • Page 31
    ... Financial Statements included elsewhere in this Annual Report on Form 10-K. j2 Global was founded in 1995 and is a Delaware corporation. We manage our operations through two business segments: Business Cloud Services and Digital Media. Information regarding revenue and operating income attributable...

  • Page 32
    ... defers and recognizes subscriber activation fees and related direct incremental costs over a subscriber's estimated useful life. j2 Global's Business Cloud Services also include patent license revenues generated under license agreements that provide for the payment of contractually determined fully...

  • Page 33
    ... to the client. The Digital Media business also generates other types of revenue, including business listing fees, subscriptions to online publications, and from other sources. Such other revenues are recognized as earned. Investments. We account for our investments in debt and equity securities in...

  • Page 34
    ... assets to their carrying value at the reporting unit level. We completed the required impairment review at the end of 2012, 2011 and 2010 and noted no impairment. Consequently, no impairment charges were recorded. Income Taxes . We account for income taxes in accordance with FASB ASC Topic No...

  • Page 35
    ...reserves when changing events and circumstances arise. Non-Income Tax Contingencies . We are currently under audit by various federal, state and local taxing authorities for non-income related taxes, including the Canada Revenue Agency regarding an audit for Goods and Services Tax for tax years 2009...

  • Page 36
    ...to business acquisitions and subscribers coming directly to our websites; corporate, enterprise and government sales; and free-to-paid subscriber upgrades, in each case net of cancellations. Cost of Revenues Percentage Change 2012 versus 2011 44,086 17% - 35 11% Percentage Change 2011 versus 2010 37...

  • Page 37
    ... primarily due to an increase in personnel costs associated with businesses acquired in and subsequent to 2010, including associated integration work, and the development of new features and system enhancements. General and Administrative. Percentage Change 2012 versus 2011 48,226 19% 4% Percentage...

  • Page 38
    ... due to "ownership changes" as defined in the Internal Revenue Code of 1986, as amended (the "Internal Revenue Code"). j2 Global estimates that all of the above-mentioned federal NOL will be available for use before its expiration. However, the Company does not expect the state NOL to be utilizable...

  • Page 39
    ... foreign tax credit carryforwards, partially offset by: 3. 4. a decrease during 2012 in return to provision adjustments; and a decrease during 2012 in the portion of our income being taxed in foreign jurisdictions and subject to lower tax rates than in the U.S. The decrease in our annual effective...

  • Page 40
    ... as one segment which has been named Business Cloud Services. The following segment results are presented for fiscal year 2012 and 2011 (in thousands): 2012 External net sales Intersegment net sales Segment net sales Cost of revenues Gross profit Operating expenses Segment operating income $ 361,684...

  • Page 41
    ... years ended December 31, 2012 , 2011 and 2010 , respectively. Net cash used in investing activities in 2012 was primarily attributable to business acquisitions, purchase of available-for-sale investments and certificates of deposit, purchases of property and equipment and investments in intangible...

  • Page 42
    ... for the year ended December 31, 2012 , 2011 and 2010 , respectively. Net cash provided by financing activities in 2012 was primarily attributable to the proceeds from the sale of long-term debt and from the exercise of stock options and excess tax benefit from share-based compensation, partially...

  • Page 43
    ... event of potential acquisitions or other corporate purposes. The Credit Agreement was amended on August 16, 2010, July 13, 2012 and November 9, 2012. The July 13, 2012 amendment was entered into in connection with the issuance of senior unsecured notes as discussed in Note 8 - Long-Term Debt - and...

  • Page 44
    ... as required by law. Readers should carefully review the risk factors described in this document as well as in other documents we file from time to time with the SEC, including the Quarterly Reports on Form 10-Q and any Current Reports on Form 8-K filed or to be filed by us in 2013. Interest Rate...

  • Page 45
    ... the potential exposure to changes that exchange rates might have on earnings, cash flows and financial position. Foreign exchange gains and (losses) were not material to our earnings in 2012, 2011 or 2010. For the years ended December 31, 2012 , 2011 and 2010, net foreign currency transaction...

  • Page 46
    ...all material respects the information set forth therein. We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the j2 Global, Inc. and subsidiaries' internal control over financial reporting as of December 31, 2012, based on criteria...

  • Page 47
    ... amounts) 2012 ASSETS Cash and cash equivalents Short-term investments Accounts receivable, net of allowances of $3,213 and $3,404, respectively Prepaid expenses and other current assets Deferred income taxes Total current assets Long-term investments Property and equipment, net Trade names, net...

  • Page 48
    ... Cost of revenues (including share-based compensation of $844, $982 and $1,217 in 2012, 2011 and 2010, respectively) Gross profit Operating expenses: Sales and marketing (including share-based compensation of $1,543, $1,431 and $1,826 in 2012, 2011 and 2010, respectively) Research, development...

  • Page 49
    ...on available-for-sale investments, net of tax (benefit) of $646, ($142) and ($100) for the year ended 2012, 2011 and 2010, respectively Other comprehensive income (loss), net of tax Comprehensive Income Net income attributable to noncontrolling interest Comprehensive income attributable to j2 Global...

  • Page 50
    ...of available-for-sale investments Purchases of property and equipment Proceeds from sale of assets Acquisition of businesses, net of cash received Purchases of intangible assets Net cash used in investing activities Cash flows from financing activities: Issuance of long-term debt Debt issuance costs...

  • Page 51
    ...975) - j2 Global, Inc. Stockholders' equity $ 336,172 83,047 NonControlling interest - - Total Stockholders' equity $ 336,172 83,047 Common stock Shares Amount Balance, January 1, 2010 Net income Other comprehensive income, net of tax (benefit) of ($264) Exercise of stock options Issuance of shares...

  • Page 52
    ... Retirement of common shares Repurchase of restricted stock Share based compensation Excess tax benefit on share based compensation Balance, December 31, 2012 204,052 (10,806,648) (55,880) - 2 (108) (1) - (2) (42,580) (1,093) 9,083 - 8,680,568 - - - 112,671 - - - (129,171) - 49 - - - - - (59...

  • Page 53
    ...the Internet. The Company provided cloud services to businesses of all sizes, from individuals to enterprises. Through its portfolio of technology-focused web properties, j2 Global provides consumers with trusted product reviews and advertisers with an innovative data-driven platform to connect with...

  • Page 54
    ... delivered to the client. The Digital Media business also generates other types of revenue, including business listing fees, subscriptions to online publications, and from other sources. Such other revenues are recognized as earned. (e) Fair Value Measurements j2 Global complies with the provisions...

  • Page 55
    ...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 7 years. (l) Long-Lived Assets j2 Global accounts for long-lived assets...

  • Page 56
    ... reporting unit's goodwill and intangible assets with the respective carrying values. j2 Global completed the required impairment review at the end of 2012, 2011 and 2010 and concluded that there were no impairments. Consequently, no impairment charges were recorded. (n) Income Taxes j2 Global...

  • Page 57
    ...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...

  • Page 58
    ... reported amounts have been reclassified to conform with the 2012 presentation. 3. Business Acquisitions The Company paid cash for the following acquisitions closed during 2012: (a) substantially all of the assets of Offsite Backup Solutions, LLC, a Phoenix-based provider of online backup solutions...

  • Page 59
    ... is subject to change, which may be significant. j2 Global has recorded provisional amounts for certain intangible assets, software and preliminary working capital. Actual amounts recorded upon the finalization of these items may differ materially from the information presented in this Annual Report...

  • Page 60
    ... Limited, a UK enhanced voice services provider; (6) Venali, Inc., a Miami-based provider of enterprise Internet fax messaging solutions ("Venali"); (7) keepITsafe Data Solutions Ltd., an Ireland-based provider of online backup services; and (8) Protus IP Solutions, Inc. (now known as j2 Global...

  • Page 61
    ... Receivable Property and Equipment Technology Other Assets Customer Relationship Trade Name Non-Compete Agreements Goodwill Deferred Revenue Accounts Payable Accrued Liabilities Deferred Tax Liability, net Total $ Management has determined that a trade name of Protus will be used by the Company...

  • Page 62
    ... of short and long-term investments are recorded using the specific identification method. The following table summarizes j2 Global's debt securities designated as available-for-sale, classified by the contractual maturity date of the security (in thousands): December 31, 2012 Due within 1 year Due...

  • Page 63
    ... trading price of the shares on such date. On September 8, 2012, Carbonite, Inc. informed j2 Global that it had rejected the proposal, without making a counter-offer. There have been no further discussions between j2 Global and Carbonite, Inc. At December 31, 2012 , the Company's available-for-sale...

  • Page 64
    ... 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...

  • Page 65
    ... December 31, 2012 Cash equivalents: Money market and other funds Time deposits Certificates of Deposit Equity securities Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies Debt securities issued by states of the United States and political subdivisions...

  • Page 66
    ...-line method over estimated useful lives ranging from one to 20 years. The changes in carrying amounts of goodwill for the year ended December 31, 2012 and 2011 are as follows (in thousands): Balance as of January 1, 2011 Goodwill acquired Purchase Accounting Adjustments Foreign Exchange Translation...

  • Page 67
    ...the annual impairment test for intangible assets with indefinite lives for fiscal 2012 using a quantitative assessment primarily taking into consideration a discounted cash flow analysis of the relief of royalty payments. j2 Global concluded that there were no impairments in 2012, 2011 and 2010. The...

  • Page 68
    ....4 million and $8.8 million for the years ended December 31, 2012 , 2011 and 2010 , respectively. 8. Long-Term Debt On July 26, 2012 , j2 Global issued in a private offering exempt from the registration requirements of the Securities Act of 1933, as amended, $250 million aggregate principal amount...

  • Page 69
    ... use of its intellectual property, j2 Global has ongoing litigation against several companies for infringing its patents relating to online fax, voice and other messaging technologies, including, but not limited to OpenText Corporation ("Open Text") and its subsidiary EasyLink Services International...

  • Page 70
    ... misrepresenting its patent rights; and attorneys' fees and costs. On January 11, 2013, j2 Global filed a motion to dismiss OpenText and EasyLink's tortious interference and unfair competition claims. That motion is currently pending. On September 14, 2012, j2 Global submitted a request to the USPTO...

  • Page 71
    ...sue IGC. IGC seeks monetary damages, attorneys' fees, fees and costs, injunctive relief and specific performance of the alleged covenant not to sue IGC. On August 24, 2012, j2 Global filed a motion to dismiss or alternatively to transfer the case to the Central District of California. The motion was...

  • Page 72
    ... of the issued stock of j2 Global Holdings Limited, a wholly owned Irish subsidiary of j2 Global. j2 Global will also be required to grant a security interest to Lender in 65% of the issued stock of any future non-U.S. based significant subsidiary. The Credit Agreement contains customary affirmative...

  • Page 73
    Leases j2 Global leases certain facilities and equipment under non-cancelable operating leases which expire at various dates through 2020. Future minimum lease payments at December 31, 2012 under non-cancelable operating leases (with initial or remaining lease terms in excess of one year) are as ...

  • Page 74
    ... due to "ownership changes" as defined in the Internal Revenue Code of 1986, as amended (the "Internal Revenue Code"). j2 Global estimates that all of the above-mentioned federal NOL will be available for use before its expiration. However, the Company does not expect the state NOL to be utilizable...

  • Page 75
    ... in relation to these tax years may change compared to the liabilities recorded for these periods. However, it is not currently possible to estimate the amount, if any, of such change. j2 Global is also under audit by various other states and local governments for non-income related taxes. - 73 -

  • Page 76
    ... 31, 2012 , 2.1 million shares were repurchased at an aggregate cost of $58.6 million (including an immaterial amount of commission fees). 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...

  • Page 77
    ..." within the meaning of Internal Revenue Code Section 162(m). Stock Options Stock option activity for the years ended December 31, 2012, 2011 and 2010 is summarized as follows: Number of Shares Options outstanding at December 31, 2009 Granted Exercised Canceled Options outstanding at December...

  • Page 78
    ...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. Beginning in the first quarter 2012, the Company...

  • Page 79
    ..., 2012 , 2011 and 2010 (in thousands): Year Ended December 31, 2012 Cost of revenues Operating expenses: Sales and marketing Research, development and engineering General and administrative $ 844 1,543 459 6,286 $ Restricted Stock j2 Global has awarded restricted stock and restricted stock units to...

  • Page 80
    ... 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 2012 , 2011 and 2010...

  • Page 81
    ... Information The Company's business segments are based on the organization structure used by management for making operating and investment decisions and for assessing performance. j2 Global's reportable business segments are: (i) Business Cloud Services; and (ii) Digital Media. Segment accounting...

  • Page 82
    .... (2) Global operating costs include general and administrative and other corporate expenses that are managed on a global basis and that are not directly attributable to any particular segment. 2012 Assets: Business Cloud Services Digital Media Total assets from reportable segments Corporate Total...

  • Page 83
    ... through an agreement with Orchard Capital Corporation, a company controlled by its Chairman of the Board. For each of the years ended December 31, 2012, 2011 and 2010, j2 Global paid Orchard Capital approximately $0.3 million for these services. 18. Supplemental Cash Flows Information Cash paid...

  • Page 84
    Included in the purchase prices of the acquisitions closed during the years ended December 31, 2012, 2011 and 2010 were contingent holdbacks of $2.5 million , $1.0 million and $2.2 million , respectively. These are recorded as current accrued expenses or other long-term liabilities with a maturity ...

  • Page 85
    ...is as follows (in thousands): December 31, 2012 ASSETS Cash and cash equivalents Accounts receivable Prepaid expenses and other current assets Deferred income taxes Total current assets Property and equipment, net Trade names, net Customer relationships, net Goodwill Other purchased intangibles, net...

  • Page 86
    ...2325 per share of common stock payable on March 4, 2013 to all stockholders of record as of the close of business on February 25, 2013 . On February 12, 2013, the Company's Board of Directors approved an extension of the share repurchase program set to expire February 20, 2013 by an additional year...

  • Page 87
    ... that j2 Global's internal control over financial reporting was effective as of December 31, 2012 . Management's report on internal control over financial reporting was not subject to attestation by the Company's registered public accounting firm pursuant to rules of the Securities and Exchange...

  • Page 88
    ... on the j2 Global, Inc.'s internal control over financial reporting based on our audit. We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance...

  • Page 89
    ... III Item 10. Directors, Executive Officers and Corporate Governance The information required by this item is incorporated by reference to the information to be set forth in our proxy statement (" 2012 Proxy Statement") for the 2013 annual meeting of stockholders to be filed with the SEC within 120...

  • Page 90
    ... 2010 to the Credit Agreement dated January 5, 2009 with Union Bank N.A. (11) 21 List of subsidiaries of j2 Global, Inc. 23.1 Consent of Independent Registered Public Accounting Firm - SingerLewak LLP 31.1 Certification by Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act...

  • Page 91
    ... Form 8-K filed with the Commission on July 27, 2012. (14) Incorporated by reference to j2 Global's Current Report on Form 8-K filed with the Commission on December 19, 2012. (15) Incorporated by reference to j2 Global's Current Report on Form 8-K filed with the Commission on February 7, 2013. - 89...

  • Page 92
    ... duly authorized, on March 1, 2013 . j2 Global, Inc. By: /s/ NEHEMIA ZUCKER Nehemia Zucker Chief Executive Officer (Principal Executive Officer) Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the...

  • Page 93
    ... to Costs and Expenses 4,289 5,536 6,900 196 1,965 707 Description Year Ended December 31, 2012: Allowance for doubtful accounts Deferred tax asset valuation allowance Year Ended December 31, 2011: Allowance for doubtful accounts Deferred tax asset valuation allowance Year Ended December 31, 2010...

  • Page 94
    ...of j2 Global, Inc. Name Electric Mail (International) L.P. Electric Mail (Ireland) Limited j2 Global Holdings Limited j2 Global Ireland Limited j2 Global Canada, Inc. Ziff Davis, Inc. State or Other Jurisdiction of Incorporation Alberta, Canada Ireland Ireland Ireland Ontario, Canada United States

  • Page 95
    ... audits of the consolidated financial statements, the financial statement schedule and internal control over financial reporting, which appear in this Annual Report on Form 10-K of j2 Global, Inc. and subsidiaries for the year ended December 31, 2012 . SingerLewak LLP Los Angeles, California March...

  • Page 96
    ... EXECUTIVE OFFICER PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 I, Nehemia Zucker, certify that: 1. 2. 3. 4. I have reviewed this Annual Report on Form 10-K of j2 Global, Inc.; Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state...

  • Page 97
    ... cash flows of the registrant as of, and for, the periods presented in this report; The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over...

  • Page 98
    ...OXLEY ACT OF 2002 In connection with the Annual Report on Form 10-K of j2 Global, Inc. (the "Company") for the year ended December 31, 2012 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), Nehemia Zucker, as Chief Executive Officer (Principal Executive Officer...