Leases

3 Months Ended

Mar. 31, 2020

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 2036. 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.

Finance leases are not material to the Company’s condensed consolidated financial statements and are therefore not included in the disclosures below.

The components of lease expense were as follows (in thousands):

	Three Months Ended March 31,
	2020		2019
Operating lease cost	$	7,104	$	5,761
Short-term lease cost	445		455
Total lease cost	$	7,549	$	6,216

Supplemental balance sheet information related to leases was as follows (in thousands):

	March 31, 2020		December 31, 2019
Operating leases
Operating lease right-of-use assets	$	115,455	$	125,822
Total operating lease right-of-use assets	$	115,455	$	125,822
Operating lease liabilities, current	$	26,715	$	26,927
Operating lease liabilities, noncurrent	93,687		104,070
Total operating lease liabilities	$	120,402	$	130,997

Supplemental cash flow information related to leases was as follows (in thousands):

	Three Months Ended March 31,
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	7,411	$	5,243
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	1,790	$	2,748

Other supplemental operating lease information consists of the following:

	March 31, 2020		December 31, 2019
Operating leases:
Weighted average remaining lease term	6.6 years		5.9 years
Weighted average discount rate	4.37	%	3.95	%

Maturities of operating lease liabilities as of March 31, 2020 were as follows (in thousands):

	Operating Leases
Fiscal Year:
2020 (remainder)	$	21,588
2021	27,905
2022	25,479
2023	20,013
2024	13,449
Thereafter	34,023
Total lease payments	$	142,457
Less: Imputed interest	22,055
Present value of operating lease liabilities	$	120,402

Sublease

Total sublease income for the three months ended March 31, 2020 and 2019 was $0.8 million and $0.9 million for the three months ended March 31, 2020 and 2019, respectively. Total estimated aggregate sublease income to be received in the future is $9.0 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.