Discontinued Operations and Disposal Groups (Tables)

12 Months Ended

Dec. 31, 2021

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

The key components of cash flows from discontinued operations were as follows (in thousands):

	Years ended December 31,
	2021		2020		2019
Capital expenditures	$	15,252	$	16,237	$	6,996
Depreciation and amortization	$	9,010	$	11,759	$	10,270
Loss on debt extinguishment	$	8,750	$	37,969	$	—
Amortization of financing costs and discounts	$	—	$	1,171	$	1,428
Foreign currency remeasurement gain	$	—	$	31,537	$	—
Deferred taxes	$	8,015	$	5,534	$	(55,931)

The key components of income from discontinued operations were as follows (in thousands). The Company made an accounting policy election not to allocate interest to discontinued operations. Interest expense included in discontinued operations relates to the 6.0% Senior Notes issued by J2 Cloud Services, LLC and the Bridge Loan Facility, which was required to be repaid as part of the Separation.

	Years ended December 31,
	2021		2020		2019
Revenues	$	270,248	$	330,764	$	321,590
Cost of revenues	(44,306)		(53,379)		(49,991)
Sales and marketing	(40,980)		(47,116)		(51,522)
Research, development and engineering	(5,814)		(7,146)		(9,745)
General and administrative	(39,279)		(26,852)		(21,475)
Interest expense and other	(13,856)		(44,220)		(44,080)
Income before income taxes	126,013		152,051		144,777
Income tax expense (benefit)	30,694		30,043		(33,136)
Income from discontinued operations, net of income taxes	$	95,319	$	122,008	$	177,913

The following table summarizes the Balance Sheet as of December 31, 2020 (in thousands):

	December 31, 2020
ASSETS
Cash and cash equivalents	$	66,210
Accounts receivable, net	16,071
Prepaid expenses and other current assets	1,748
Total current assets, discontinued operations	84,029
Property and equipment, net	25,053
Operating lease right-of-use assets	25,711
Trade names, net	29,350
Customer relationships, net	13,678
Goodwill	342,430
Other purchased intangibles, net	1,681
Deferred income taxes, noncurrent	44,350
Other non-current assets	1,269
Total assets, discontinued operations	$	567,551
LIABILITIES
Trade accounts payable and accrued expenses	$	32,795
Income taxes payable, current	1,307
Deferred revenue, current	24,512
Operating lease liabilities, current	2,578
Total current liabilities, discontinued operations	61,192
Deferred revenue, noncurrent	240
Operating lease liabilities, noncurrent	25,549
Liability for uncertain tax positions	3,993
Deferred income taxes, noncurrent	5,392
Other long-term liabilities	3,063
Total liabilities, discontinued operations	$	99,429