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J2 GLOBAL, INC.
FORM 10-K
(Annual Report)
Filed 03/03/14 for the Period Ending 12/31/13
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 2014, 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 03/03/14 for the Period Ending 12/31/13 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
    ... 6922 Hollywood Boulevard, Suite 500, 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...

  • Page 3
    ... -293 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 93 93 93...

  • Page 4
    ... time business technology services, resources and solutions over the Internet. Their goal is to reduce or eliminate costs, increase sales and enhance productivity, mobility, business continuity and security. Our eFax® and MyFax® online fax services enable users to receive faxes into their email...

  • Page 5
    ... we acquire paying customers and improve the cost and volume of customers obtained through our current channels. We offer the following cloud services and solutions: Fax eFax® is the leading brand in the global online fax market. Various tiers of service provide increasing levels of features and...

  • Page 6
    ...recovery facilities. We connect our POPs to our central data centers via redundant, and often times diverse, Virtual Private Networks ("VPNs") using the Internet. Our network is designed to deliver value-added user applications, customer support and billing services for our customers anywhere in the...

  • Page 7
    ... ComputerShopper.com, LogicBuy.com, Toolbox.com and TechBargains.com - features trusted reviews of technology products, technology-oriented news and commentary, professional networking tools for IT professionals and online deals and discounts for consumers. With Ziff Davis' February 2013 acquisition...

  • Page 8
    ... of the patent(s) in suit, 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, KeepItSafe, Fusemail, Onebox...

  • Page 9
    ... 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 practicable after the filing dates. Further, the SEC maintains an Internet site that...

  • Page 10
    ...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 11
    ...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 12
    ... cloud services subscription and/or usage revenues and decreased advertising revenues in our digital media business, which may adversely impact our revenues and profitability. If our Business Cloud Services segment experiences excessive fraudulent activity or cannot meet evolving credit card company...

  • Page 13
    ...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 14
    ... competition from online media companies as well as from social networking sites, traditional print and broadcast media, general purpose and vertical search engines and various e-commerce sites. Several of our competitors offer an integrated variety of Internet products, advertising services...

  • Page 15
    ... products and services that directly compete for users with our digital media offerings. Similarly, the advertising networks operated by our competitors or by other participants in the display marketplace offer services that directly compete with our offerings for advertisers, including advertising...

  • Page 16
    ... services in international markets versus the U.S. In addition, certain international markets may be slower than the U.S. in adopting the Internet and/or outsourced messaging and communications solutions and so our operations in international markets may not develop at a rate that supports our level...

  • Page 17
    ... or limited prior experience. We may pay for some acquisitions by issuing additional common stock, which would dilute current stockholders, or incur debt, which may cause us to incur additional interest expense, leverage and debt service requirements. We may also use cash to make acquisitions, which...

  • Page 18
    ... wireline broadband Internet access services (i.e., DSL) as information services. The decision enables incumbent local exchange carriers to charge higher rates for underlying broadband transmission service to competitive local exchange carriers that service some of our lines in various states. This...

  • Page 19
    ... and regulations may also cause us to change or limit our business practices in a manner adverse to our business. The use of consumer data by online service providers and advertising networks is a topic of active interest among federal, state, and international regulatory bodies, and the regulatory...

  • Page 20
    ... on the ability of our cloud services customers and visitors to our digital media properties to access our services and applications over broadband Internet connections. While we have not encountered any material difficulties with regard to such access, increased network congestion in the future may...

  • Page 21
    ... in a way that advertisers find unsatisfactory, our profitability may decline. A portion of our display revenue comes from advertisers that pay for advertising on a price-per-click basis, meaning that the advertisers pay a fee every time a user clicks on their advertising. This pricing model can be...

  • Page 22
    ...the delivery of email messages to free subscribers and regularly communicate with our customers via email. We also offer email services through FuseMail. If regulations or other changes in the industry lead to a charge associated with the sending or receiving of email messages, the cost of providing...

  • Page 23
    ..., Australia, Canada, Hong Kong, Ireland, Japan, New Zealand, The Netherlands and the United Kingdom. All of our network equipment is housed either at our leased properties or at one of our multiple co-location facilities around the world. Item 3. Legal Proceedings From time-to-time, j2 Global is...

  • Page 24
    .... On August 28, 2013, Phyllis A. Huster ("Huster") filed suit in the United States District Court for the Northern District of Illinois against Unified Messaging Solutions, LLC, Acacia Patent Acquisition LLC ("Acacia"), Charles R. Bobo, II ("Bobo"), j2 Global, and one of j2 Global's affiliates for...

  • Page 25
    ... motion. On January 18, 2013, Paldo Sign and Display Company ("Paldo"), filed an amended complaint adding j2 Global, j2 Canada, and a former j2 Canada employee, Tyler Eyamie ("Eyamie"), as additional defendants in an existing purported class action pending in the United States District Court for the...

  • Page 26
    ... 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. High Year ended December 31, 2013...

  • 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, 2013 regarding shares outstanding and available for issuance under j2 Global's existing equity compensation plans: Number of Securities...

  • Page 28
    ... 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 j2 Global has selected as its peer group in the cloud service for...

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

  • Page 30
    ...,637 27,590 83,047 - 83,047 $ $ $ 2013 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
    ... to connect advertisers with visitors to those properties and to visitors of third party websites that are part of the Division's advertising network. Our Business Cloud Services Division generates revenues primarily from customer subscription and usage fees and from IP licensing fees. Our Digital...

  • Page 32
    ..., semi-annually and annually recurring subscription and usage-based fees collected in advance and recognizes them in the period earned. Additionally, the Company defers and recognizes subscriber activation fees and related direct incremental costs over a subscriber's estimated useful life. j2 Global...

  • Page 33
    ... 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...

  • Page 34
    ... comparing the implied fair value of goodwill and intangible assets to their carrying value at the reporting unit level. We completed the required impairment review at the end of 2013, 2012 and 2011 and noted no impairment. Consequently, no impairment charges were recorded. Income Taxes . We account...

  • Page 35
    ... are fully supportable. We adjust these reserves when changing events and circumstances arise. Non-Income Tax Contingencies . We are currently under audit by various state, local and foreign taxing authorities for direct and indirect non-income related taxes, including Canadian sales tax. In...

  • Page 36
    ... the impact of acquisitions. The main focus of our Business Cloud Services offerings is to reduce or eliminate costs, increase sales and enhance productivity, mobility, business continuity and security of our customers as the technologies and devices they use evolve over time. As a result, we...

  • Page 37
    ...rate than our more profitable Businesses Cloud Services segment, excluding the impact of any future acquisitions and partially offset by improved Digital Media segment margins due to economies of scale. The following table sets forth, for the years ended December 31, 2013, 2012 and 2011, information...

  • Page 38
    ... revenue 2013 $ 17% 86,893 $ 2012 67,013 18% $ 2011 Cost of revenues is primarily comprised of costs associated with data and voice transmission, DIDs, network operations, customer service, editorial and production costs, online processing fees and equipment depreciation. The increase in cost of...

  • Page 39
    ...of income for the year ended December 31, 2013 , 2012 and 2011 (in thousands): Year Ended December 31, 2013 Cost of revenues Operating expenses: Sales and marketing Research, development and engineering General and administrative Total Non-Operating Income and Expenses Interest expense (income), net...

  • Page 40
    ... and subject to lower tax rates than in the U.S. Significant judgment is required in determining our provision for income taxes and in evaluating our tax positions on a worldwide basis. We believe our tax positions, including intercompany transfer pricing policies, are consistent with the tax laws...

  • Page 41
    ... with the prior comparable period. Segment operating expenses of $121.3 million in 2013 increased $12.0 million from 2012 primarily due to (a) an increase in sales and marketing costs primarily due to additional advertising and personnel costs associated with businesses acquired in and subsequent...

  • Page 42
    ...compensation and tax payments. The increase in our net cash provided by operating activities in 2013 compared to 2012 was primarily attributable to cash received from our customers, the impact of a 2012 non-cash change in estimate relating to deferred revenue and higher year-end accounts payable and...

  • Page 43
    ...amounts in connection with certain business acquisitions. These amounts primarily represent certain consulting and Board of Director fee arrangements and software license commitments. As of December 31, 2013 , our liability for uncertain tax positions was $43.9 million . The future payments related...

  • Page 44
    ... Senior Notes as discussed in Note 8 - Long-Term Debt - and extended the Revolving Credit Commitment Termination Date (as defined in the Credit Agreement) to November 14, 2013. The November 9, 2012 amendment was entered into in connection with the acquisition of Ziff Davis, Inc. as discussed in Note...

  • Page 45
    ... operating strategies. As currency exchange rates change, translation of the income statements of the international businesses into U.S. Dollars affects year-over-year comparability of operating results, the impact of which is immaterial to the comparisons set forth in this Annual Report on Form 10...

  • Page 46
    ...have not hedged translation risks because cash flows from international operations were generally reinvested locally; however, we may do so in the future. Our objective in managing foreign exchange risk is to minimize the potential exposure to changes that exchange rates might have on earnings, cash...

  • Page 47
    ... in 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), j2 Global, Inc. and subsidiaries' internal control over financial reporting as of December 31, 2013, based on criteria...

  • Page 48
    ... Short-term investments Accounts receivable, net of allowances of $4,105 and $3,213, respectively Prepaid expenses and other current assets Deferred income taxes Total current assets Long-term investments Property and equipment, net Trade names, net Patent and patent licenses, net Customer...

  • Page 49
    ... (In thousands, except share and per share data) 2013 Revenues: Total revenues Cost of revenues (including share-based compensation of $756, $844 and $982 in 2013, 2012 and 2011, respectively) Gross profit Operating expenses: Sales and marketing (including share-based compensation of $1,855, $1,543...

  • Page 50
    ...on available-for-sale investments, net of tax (benefit) of $2,447, $646 and ($142) for the year ended 2013, 2012 and 2011, respectively Other comprehensive income (loss), net of tax Comprehensive Income Net income attributable to noncontrolling interest Comprehensive income attributable to j2 Global...

  • Page 51
    ... 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 Repurchases of common stock and restricted...

  • Page 52
    ..., 2013, 2012 and 2011 (in thousands, except share amounts) Preferred A Common stock Shares Balance, January 1, 2011 Net income Other comprehensive income, net of tax (benefit) of ($340) Dividends Exercise of stock options Issuance of shares under Employee Stock Purchase Plan Vested restricted stock...

  • Page 53
    See Notes to Consolidated Financial Statements - 51 -

  • Page 54
    ..., semi-annually and annually recurring subscription and usage-based fees collected in advance and recognizes them in the period earned. Additionally, the Company defers and recognizes subscriber activation fees and related direct incremental costs over a subscriber's estimated useful life. j2 Global...

  • Page 55
    ..., or other copyrighted material. Revenues under such license agreements are recognized when the assets are delivered to the client. The Digital Media business also generates other types of revenues, including business listing fees, subscriptions to online publications, and from other sources. Such...

  • Page 56
    ...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. (l) Long-Lived Assets j2 Global accounts for...

  • Page 57
    ... second step involves measuring the impairment by comparing the implied fair values of the affected reporting unit's goodwill and intangible assets with the respective carrying values. j2 Global completed the required impairment review at the end of 2013, 2012 and 2011 and concluded that there were...

  • Page 58
    ... 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...

  • Page 59
    ... and mobile communications; (e) Email Protection Agency Limited, a UK-based provider of email security, email management and network security services; (f) TechBargains.com, the leading deal aggregation website for electronic products; and (g) other immaterial share and asset acquisitions in...

  • Page 60
    ... The initial accounting for these acquisitions is incomplete and subject to change, which may be significant. j2 Global has recorded provisional amounts for certain property and equipment, intangible assets (including trade names and software), preliminary working capital and related tax items with...

  • Page 61
    ... allocable to the minority interest) as follows (in thousands): Asset Accounts Receivable Property and Equipment Software Other Assets Deferred Tax Asset Trade Name Customer Relationship Advertiser Relationship Licensing Relationship Other Intangibles Goodwill Total $ Valuation 14,450 842 4,780...

  • 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, 2013 Due within 1 year Due...

  • Page 63
    ... 2012, j2 Global submitted a preliminary non-binding proposal to acquire all outstanding shares for cash consideration of $10.50 per fully diluted share, representing a substantial premium to the market trading price of the shares on such date. At December 31, 2013 , 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
    ... Debt securities issued by states of the United States and political subdivisions of the states Debt securities issued by foreign governments Corporate debt securities Total December 31, 2012 Cash equivalents: Money market and other funds Time deposits Certificates of Deposit Equity securities Debt...

  • Page 66
    ...performed the annual impairment test for intangible assets with indefinite lives for fiscal 2013 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 2013, 2012 and...

  • Page 67
    ... 31, 2012 , intangible assets subject to amortization relate primarily to the following (in thousands): Weighted-Average Amortization Period Trade names Patent and patent licenses Customer relationships Other purchased intangibles Total 17.7 years $ 8.2 years 7.0 years 4.4 years $ Historical Cost 50...

  • Page 68
    ... proceeds were available for general corporate purposes, including acquisitions. Interest is payable semi-annually on February 1 and August 1 of each year beginning on February 1, 2013 . j2 Global has the option to call the Notes in whole or in part after August 1, 2016 , subject to certain premiums...

  • Page 69
    ...date of acquisition. Certain minority interest holders received an ownership in Series A Stock which has been accounted for as a non-controlling interest. On December 31, 2013, in connection with a reorganization of Ziff Davis, Inc. to Ziff Davis, LLC (the "Reorganization"), the Company acquired all...

  • Page 70
    .... On August 28, 2013, Phyllis A. Huster ("Huster") filed suit in the United States District Court for the Northern District of Illinois against Unified Messaging Solutions, LLC, Acacia Patent Acquisition LLC ("Acacia"), Charles R. Bobo, II ("Bobo"), j2 Global, and one of j2 Global's affiliates for...

  • Page 71
    ... motion. On January 18, 2013, Paldo Sign and Display Company ("Paldo"), filed an amended complaint adding j2 Global, j2 Canada, and a former j2 Canada employee, Tyler Eyamie ("Eyamie"), as additional defendants in an existing purported class action pending in the United States District Court for the...

  • Page 72
    ... month LIBOR rate plus 1.50% plus a margin depending on the current Leverage Ratio (as defined in the Credit Agreement) equal to a range of 0.5% to 1% . The Company is also obligated to pay closing fees, letter of credit fees and commitment fees customary for a credit facility of this size and type...

  • Page 73
    ... customary for a credit facility of this size and type. The occurrence of an event of default could result in the acceleration of j2 Global's repayment obligations under the Credit Agreement. Leases j2 Global leases certain facilities and equipment under non-cancelable operating leases which...

  • Page 74
    ... 24.7 % 2012 35 % 0.5 (17.4) 4.9 3.2 (3.4) (1.3) 21.5 % 2011 35 % 0.9 (16) (5.7) (0.1) - 2.2 16.3 % The Company's effective rate for each year is normally lower than the 35% U.S. federal statutory plus applicable state income tax rates primarily due to earnings of j2 Global's subsidiaries outside...

  • Page 75
    ... 2013 and 2012, the Company had state research and development tax credits of $0.9 million and $0.4 million , respectively, which last indefinitely. In addition, as of December 31, 2013, the Company had state enterprise zone tax credits of $0.5 million , which last indefinitely. Certain tax payments...

  • Page 76
    ... audit by the U.S. Internal Revenue Service ("IRS") for tax years 2009 and 2010 and during the second quarter of 2013 received notice that the IRS will be auditing it for tax year 2011. The Company has appealed the IRS tax examiner's decision regarding transfer pricing for tax years 2009 and 2010...

  • Page 77
    ...Series A Stock is subject to redemption by the Company at its option at any time. If the redemption occurs in connection with certain sale, initial public offering or spin-off transactions involving ZD LLC, the redemption price will be equal to an allocable portion of the enterprise value of ZD, LLC...

  • Page 78
    ...repurchase program. At December 31, 2013 , 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...

  • Page 79
    ...market value of j2 Global's common stock on the date of grant for non-statutory stock options. At December 31, 2013, 2012 and 2011, options to purchase 845,198 , 1,132,365 and 1,155,335 shares of common stock were exercisable under and outside of the 2007 Plan and the 1997 Plan combined, at weighted...

  • Page 80
    ... tax deductions from option exercises under the share-based payment arrangements totaled $3.9 million , $1.6 million and $14.2 million , respectively, for the years ended December 31, 2013 , 2012 and 2011 . At December 31, 2013 , the exercise prices of options granted under and outside the 2007 Plan...

  • Page 81
    ...the Company elected to use the simplified method for estimating the expected term. Under the simplified method, the expected term is equal to the midpoint between the vesting period and the contractual term of the stock option. The risk-free interest rate is based on U.S. Treasury zero-coupon issues...

  • Page 82
    ..., 2013 , 2012 and 2011 (in thousands): Year Ended December 31, 2013 Cost of revenues Operating expenses: Sales and marketing Research, development and engineering General and administrative $ 756 1,855 434 6,675 $ Restricted Stock j2 Global has awarded restricted stock and restricted stock units to...

  • Page 83
    ... 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 2013 , 2012 and 2011...

  • Page 84
    ... available to participating securities (a) Net income available to j2 Global, Inc. common shareholders Denominator: Weighted-average outstanding shares of common stock Dilutive effect of: Dilutive effect of equity incentive plans Common stock and common stock equivalents Net income per share: Basic...

  • Page 85
    Information on reportable segments and reconciliation to consolidated income from operations is as follows (in thousands): Years Ended December 31, 2013 Revenue by segment: Business Cloud Services Digital Media Elimination of inter-segment revenues Total revenue Direct costs by segment : Business ...

  • Page 86
    ...31, 2013 Long-lived assets: United States All other countries Total $ $ 170,247 51,675 221,922 $ $ December 31, 2012 105,549 46,554 152,103 Revenues for the year ended December 31, 2011 reflect a first quarter 2011 change in estimate of the remaining service obligation to eFax® annual subscribers...

  • Page 87
    ... December 31, 2013, 2012 and 2011, j2 Global recorded the tax benefit from the exercise of stock options and restricted stock as a reduction of its income tax liability of $7.1 million , $3.3 million and $15.8 million , respectively. Included in the p urchase prices of the acquisitions closed during...

  • Page 88
    ... Ended December 31, 2013 Affected Line Item in the Statement of Income Cumulative translation adjustment $ 116 Other expense (income), net 116 Total, before income taxes (28) Income tax expense (benefit) 88 Total, net of tax Unrealized gain (loss) on available-for-sale investments 14 Other...

  • Page 89
    ...unaudited) The following tables contain selected unaudited statement of income information for each quarter of 2013 and 2012 (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...

  • Page 90
    ...is as follows (in thousands): December 31, 2013 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 91
    ... On February 10, 2014, in a cash transaction the Company acquired LiveDrive Holdings, Ltd., a UK-based provider of online backup with added file sync features for professionals and individuals. On February 11, 2014 , the Company's Board of Directors approved a quarterly cash dividend of $0.2625...

  • Page 92
    ..., 2013 . 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 Commission. (c) Changes in Internal Control Over Financial Reporting No change in our internal...

  • Page 93
    ... ACCOUNTING FIRM To the Board of Directors and Stockholders j2 Global, Inc. Los Angeles, California We have audited j2 Global, Inc. and subsidiaries' (collectively, the "Company") internal control over financial reporting as of December 31, 2013, based on criteria established in Internal Control...

  • Page 94
    ... 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 (" 2013 Proxy Statement") for the 2014 annual meeting of stockholders to be filed with the SEC within 120...

  • Page 95
    ...Amendment No. 4 dated November 19, 2013 to the Credit Agreement dated January 5, 2009 with Union 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...

  • Page 96
    ... 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. (16) Incorporated by reference to j2 Global's Current Report on Form 8-K filed with...

  • Page 97
    ..., on February 28, 2014 . 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 Registrant and...

  • Page 98
    ...) Additions: Charged to Costs and Expenses 3,134 3,661 4,289 5,536 6,900 196 Description Year Ended December 31, 2013: Allowance for doubtful accounts Deferred tax asset valuation allowance Year Ended December 31, 2012: Allowance for doubtful accounts Deferred tax asset valuation allowance Year...

  • Page 99
    ...List of Subsidiaries of j2 Global, Inc. Name Electric Mail (Ireland) Limited j2 Global Holdings Limited j2 Global Ireland Limited j2 Global Canada, Inc. Ziff Davis, LLP IGN Entertainment, Inc. State or Other Jurisdiction of Incorporation Ireland Ireland Ireland Ontario, Canada United States United...

  • Page 100
    ...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, 2013 . /s/ SingerLewak LLP Los Angeles, California February 28, 2014

  • Page 101
    ... 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 102
    ... OFFICER PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 I, Kathleen M. Griggs, 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 103
    ... OF 2002 In connection with the Annual Report on Form 10-K of j2 Global, Inc. (the "Company") for the year ended December 31, 2013 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), Nehemia Zucker, as Chief Executive Officer (Principal Executive Officer) of the...