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  • 1. JULY 19, 2011 – LOS ANGELES
  • 2. Opening Remarks
    Today’s Workshop Format
    Introducing our Distinguished Panelists:
    AGENDA
    JULY 19, 2011 – LOS ANGELES
    The CFO Essentials SingerLewak’s POV
    TM
    Gale Moore, CPA - SingerLewak LLP
    Kathy Griggs – J2 Global Communications
    Lawrence M. Braun - Sheppard Mullin
    Bradley Nii - B. Riley
    Jim Pitrat, CPA - SingerLewak LLP
  • 3. OUR PANEL
    JULY 19, 2011 – LOS ANGELES
    Jim Pitrat, SingerLewak LLP
    Jim Pitrat leads SingerLewak’s Assurance & Advisory practice where he oversees firm-wide assurance & advisory initiatives. Jim has experience with both private and publicly traded companies and has also advised on cost management, internal controls, corporate restructurings, and mergers and acquisitions. Jim has client service responsibilities in the business sectors of investor-backed private companies and public companies. Jim received his Bachelor of Science degree in Business Administration from the University of Arizona in 1993 and his Master’s of Business Administration in 1997. Jim is a member of AICPA, the Los Angeles Venture Association, the Software Council of Southern California and the Association for Capital Growth. Jim has been a guest instructor at California Institute of Technology’s Entrepreneur Program, the University of Arizona Small Business Incubator Program, and USC’s EC2 Incubator Program. He has also spoken on panels for Technology Council of Southern California and the California Society of CPAs. Jim has written for Los Angeles Business Journal, American Venture Magazine, and Zone Magazine.
    Brad Nii, B. Riley
    Bradley Nii joined B Riley & Co. in 2010 as a Managing Director in the Firm’s Investment Banking Group.  Prior to B Riley, Mr. Nii was Head of the West Coast Sponsor Finance Group at American Capital where he managed a team of investment professionals and a portfolio of mezzanine and minority equity investments.  Prior to American Capital, Mr. Nii was a Senior Vice President in the Investment Banking Group at Lehman Brothers, where he was involved in a number of transactions and financings totaling over $100 billion in value in a variety of industry sectors.Prior to joining Lehman Brothers, Mr. Nii was a certified public accountant with Ernst & Young for nine years.
  • 4. OUR PANEL
    JULY 19, 2011 – LOS ANGELES
    Lawrence M. Braun, Sheppard Mullin
    Larry Braun is the former Co-Chairman of the firm’s Corporate Practice Group.  In addition to his law degree, Mr. Braun holds an M.B.A. in Finance from the Kellogg School at Northwestern University and has attained the New Jersey C.P.A. Certificate Requirements.  Mr. Braun was previously a managing director of the largest private investment banking firm on the west coast. Mr. Braun is resident in the firm’s Los Angeles office where he represents public and private companies in the areas of mergers and acquisitions, corporate finance, securities and general business.Mr. Braun is an advisor to clients ranging from family-owned businesses to multi-national corporations in many diverse industries such as high-tech and computers, health care, consumer goods, aerospace and defense, and grocery and food service.  His principal areas of practice are general corporate law, corporate finance and securities law, mergers and acquisition transactions, contractual matters (including licensing and distribution arrangements), healthcare transactions and general business counseling.
    Gale Moore, SingerLewak LLP
    Gale Moore is a partner in SingerLewak’s Orange County Assurance & Advisory practice. Gale has more than 20 years of experience specializing in public and real estate-based companies, including Real Estate Investment Trust reporting and compliance. Her background includes assisting companies with capital market transactions, IPOs, and participating on SOX readiness teams in reviewing control documentation, remediation plans, and testing approaches. She was formerly a director with Deloitte & Touche LLP and has experience as a corporate controller, a position that gave her valuable insight into the internal control process.
  • 5. OUR PANEL
    JULY 19, 2011 – LOS ANGELES
    Kathy Griggs, J2 Global Communications
    Kathy oversees all financial accounting and analysis and treasury functions of j2 Global. She joined the company in June 2007, bringing with her over 25 years of experience with public and private technology companies. Prior to joining j2 Global, Kathy had a consulting practice and prior to that, served as Chief Financial Officer of SonicWall, Inc., a publicly held Internet security system manufacturer, as Chief Financial Officer of QAD Inc, an enterprise resource planning software company, and CFO with Borland Software Corporation and Softbank Content Services. She has an MBA from the University of Southern California.
  • 6. OUR PANEL
  • 7. RISKS
    JIM PITRAT, SINGERLEWAK
  • 8. RISKS
    JIM PITRAT, SINGERLEWAK
    SINGERLEWAK’S
    ESSENTIAL RISKS FOR THE CFO
    IN THE MID-MARKET
    2011
  • 9. RISKS
    JIM PITRAT, SINGERLEWAK
    KEY SURVEY RESULTS
    FORMULATING OUR “ESSENTIAL RISKS” WE REVIEW 2 KEY SURVEYS ALONG WITH REVIEWING OUR CLIENT CONCERNS
    • March 2011-Duke University / CFO Magazine 2011-Business Outlook Survey
    • 10. FEI CEO’s Top Challenges Survey
           
  • 11. RISKS
    JIM PITRAT, SINGERLEWAK
    CFOs: OUTLOOK ROSIER -SOME SECTORS HIRING, BUT INFLATION A WORRY
    • OPTIMISM AMONG CFO’S IS - HIGHEST SINCE 2007
    • 12. CFOs EXPECT EARNINGS GROWTH IN 2011
    • 13. Earnings growth expected to jump 18% --compared to 9% in Asia and 10% in Europe
    • 14. Capital expenditures expected to jump 12% in 2011
    • 15. R&D expenditures expected to grow by 4%
    • 16. Over half the companies in the survey expect to build more
    cash on their balance sheets
           
  • 17. RISKS
    JIM PITRAT, SINGERLEWAK
    CFOs: OUTLOOK ROSIER - SOME SECTORS HIRING, BUT INFLATION A WORRY (cont’d)
    • CFOs EXPECT ONLY MODEST EMPLOYMENT GROWTH (1.2%)
    • 18. Some industries identify need for skilled workers (engineering, product development, finance and accounting and sales)
    • 19. CFOs ARE CONCERNED ABOUT INFLATION
    • 20. A 4% inflation would cut earnings growth in half
    • 21. High concern about fuel and commodities
    • 22. 39% OF CFOs FIND BORROWING CONDITIONS HAVE IMPROVED
    • 23. However for companies <100MM, still say credit is tight
    • 24. 39% OF COMPANIES EXPECT TO ACQUIRE ANOTHER
    COMPANY IN 2011
           
  • 25. RISKS
    JIM PITRAT, SINGERLEWAK
    CEOs 2011 TOP CHALLENGES FOR
    FINANCIAL EXECUTIVES
    ECONOMIC RECOVERY AND THE US FISCAL OUTLOOK
    HEALTH CARE LAW
    FINANCIAL REGULATORY REFORM
    GLOBAL CONVERGENCE OF US GAAP AND IFRS
    PRIVATE COMPANY ACCOUNTING SYSTEM REFORM
    UNCERTAIN TAX POSITIONS
    BUSINESS TAXATION
    PENDING INTERNATIONAL BUSINESS ISSUES
    CLIMATE CHANGE
           
  • 26. RISKS
    JIM PITRAT, SINGERLEWAK
    SL’s “CFO ESSENTIAL RISKS” FOR 2011
    We have identified the following 5 ESSENTIAL RISKS FOR CFOsin the Mid-Market
           
  • 27. RISKS
    JIM PITRAT, SINGERLEWAK
    SL’s “CFO ESSENTIAL RISKS” FOR 2011
    (cont’d)
    We have identified the following 5 ESSENTIAL RISKS FOR CFOsin the Mid-Market
           
  • 28. RISKS
    JIM PITRAT, SINGERLEWAK
    COMPANIES SHOULD DEVELOP
    AN EFFECTIVE RISK MANAGEMENT PROCESS
    PLACE RISK MANAGEMENT IMPORTANCE AT BOARD LEVEL
    IDENTIFIES THE TOTALITY OF RISKS THE ORGANIZATION (NOT JUST FINANCIAL RISKS)
    ANALYZES AND MEASURES THE SIGNIFICANCE OF EACH RISK
    EVALUATES THE POTENTIAL COSTS OF THE AVAILABLE RISK RESPONSE STRATEGIES.
    DETERMINES WHETHER RISKS ARE BEING OVER OR UNDER MANAGED AND PROVIDES FOR THE IDENTIFICATION OF SOLUTIONS
           
  • 29. CASH FLOW
    BRAD NII, B. RILEY
  • 30. CASH FLOW
    BRAD NII, B. RILEY
    CAPITAL MARKET INFLUENCES
    • GLOBAL INFLUENCES
    • 31. Sovereign debt situation has led to uncertainty in the market for much of the past quarter. Recent resolutions have caused market to regain some confidence
    • 32. Asia is in a state of disarray with Japan slowly recovering from its catastrophic earthquake and China’s inflation rate at a 3-year high, reaching 6.4% in June according to the CPI index, offset by a strong second quarter GDP growth rate of 9.5%.
    • 33. DOMESTIC INFLUENCES
    • 34. Consumer spending in May was at its weakest pace in 20 months
    • 35. Lower energy prices in recent weeks, from highs experienced in April-May, have played a role in market recovery over past month
    • 36. Housing Prices on the decline as the supply continues to outpace demand for houses both new and existing
    • 37. Unemployment rose 0.1% to 9.2% in June, which is the highest level since December of 2010
    • 38. Federal Reserve impact
  • CASH FLOW
    BRAD NII, B. RILEY
    SOURCES OF CAPITAL FOR
    MIDDLE MARKET COMPANIES
    • EQUITY MARKETS
    • 39. IPO and Follow-On Equity Offerings are more prevalent in 2011 vs. 2010 with a volume increase of 177.4% and 67.8% respectively
    • 40. Technology and Energy have represented 42 of the 78 IPO’s in 2011
    • 41. ASSET BASED LENDERS
    • 42. Becoming the preferred debt instrument
    • 43. Highly flexible
    • 44. TRADITIONAL DEBT
    • 45. Commercial lenders, SBICs, BDCs and Mezzanine Funds have become active capital providers
    • 46. PRIVATE EQUITY
    • 47. Private equity coffers are ready to be deployed
  • CASH FLOW
    BRAD NII, B. RILEY
    STOCK PRICE INDEX YTD
  • 48. CASH FLOW
    BRAD NII, B. RILEY
    INITIAL PUBLIC OFFERINGS
    Source: Renaissance Capital
  • 49. CASH FLOW
    BRAD NII, B. RILEY
    FOLLOW – ON OFFERINGS
    Source: Capital IQ
    • 52 Registered Direct Offerings in 1H 2011 totaling $686 Million in value
  • CASH FLOW
    BRAD NII, B. RILEY
    KEYS TO SUCCESSFUL CAPITAL RAISES
    • HAVE A “CLEAN” STORY
    • 50. CONSISTENT FINANCIAL RESULTS
    • 51. TOP LINE GROWTH
    • 52. STRONG OPERATING MARGIN AND FREE CASH FLOW
    • 53. BARRIERS TO ENTRY
    • 54. COMPETITIVE ADVANTAGE
    • 55. REPUTABLE AUDITOR
    • 56. SOX COMPLIANCE
    • 57. MEET OR EXCEED YOUR PROJECTIONS!
  • CASH FLOW
    BRAD NII, B. RILEY
    KRATOS CASE STUDY – TWO YEARS
    $21.3 million acquisition of DEI Services Corp.
    $18.72 million Registered Direct
    $250 million private placement
    $130 million Acquisition of Gichner Systems Group
    KTOS 2 year CAGR = 30%
    S&P 500 2 Year CAGR = 20%
  • 58. CASH FLOW
    BRAD NII, B. RILEY
    DEBT MARKET
    • COMMERCIAL LENDERS ARE BECOMING MORE AGGRESSIVE
    • 59. Banks have spent the last couple of years bolstering their capital ratios and
    are now seeking to diversify their loan book and deploy capital
    • BDC’S HAVE RETURNED AS A VIABLE ALTERNATIVE
    • 60. Flexible capital but prefer predominantly cash pay
    • 61. SBIC’S ARE HIGHLY ACTIVE IN THE LOWER MIDDLE MARKET
    • 62. Very low cost of capital
    • 63. Abilities to compete with commercial lenders for smaller deals
    • 64. MEZZANINE CAPITAL IN EXCESS SUPPLY
    • 65. Reticent to over-leverage; competing on coupon pricing
  • CASH FLOW
    BRAD NII, B. RILEY
    DEBT MARKETS (cont’d)
    • LARGE PRICING GAPS BETWEEN AVERAGE AND SOLID CREDITS
    • 66. Companies that faired well during the recession with strong cash flows are
    commanding better pricing and higher leverage multiples
  • 67. CASH FLOW
    BRAD NII, B. RILEY
    M&A MARKET
    DRIVERS OF M&A MARKET ACTIVITY
    • Private Equity
    • 68. Pressure on strategics to grow in a stagnant economy
    Source: Capital IQ
  • 69. M&A
    LARRY BRAUN, SHEPPARD MULLIN
  • 70. M&A
    LARRY BRAUN, SHEPPARD MULLIN
    ARE DEALS GETTING DONE?
  • 71. STATE OF THE
    M&A MARKET
    LARRY BRAUN, SHEPPARD MULLIN
    MARKET IS ACTIVE
    STRONG BUSINESSES COMMAND INTEREST & HIGH MULTIPLES
    • Very competitive
    • 72. Valuation Multiples
    • 73. Valuation multiples in the U.S. middle market have recovered from the levels experienced in 2009, when valuations reached their lowest levels since 2001 and 2002.
    • 74. Multiples were supported by increased confidence among M&A participants amid the slow economic recovery as well as somewhat greater access to debt financing.
  • STATE OF THE
    M&A MARKET
    LARRY BRAUN, SHEPPARD MULLIN
    U.S. MIDDLE MARKET ENTERPRISE VALUE TO MEDIAN EBITDA AND REVENUE MULTIPLES
    Source: Dealogic and Robert W. Baird & Co. Incorporated M&A Market Analysis. LTM as of March 31.
  • 75. STATE OF THE
    M&A MARKET
    LARRY BRAUN, SHEPPARD MULLIN
    MARKET IS ACTIVE(cont’d)
    DISTRESSED MARKET CONTINUES TO BE ACTIVE
    STRATEGICS: BUYING
    • Market share/growth
    • 76. Technology
    • 77. Taking advantage of low prices
    • 78. Enjoying the lack of PEGs
  • STATE OF THE
    M&A MARKET
    LARRY BRAUN, SHEPPARD MULLIN
    MARKET IS ACTIVE(cont’d)
    CROSS BORDER TRANSACTIONS
    PEGS ARE PLAYING CATCH-UP
    • Selling poor performing portfolio companies
    • 79. Selling “old” portfolio companies
    • 80. Back in the market
    • 81. Lots of dry powder
    • 82. Lenders support quality credits
    SELLERS
    • Tired
    • 83. Taking advantage of low cap gains rates
  • STATE OF THE
    M&A MARKET
    LARRY BRAUN, SHEPPARD MULLIN
    MARKET IS ACTIVE(cont’d)
    FINANCING BECOMING AVAILABLE
    COST OF CAPITAL AT RECORD LOWS
  • 84. STATE OF THE
    M&A MARKET
    LARRY BRAUN, SHEPPARD MULLIN
    MARKET IS ACTIVE(cont’d)
    DEBT MULTIPLES SLOWLY RETURN
    AVERAGE DEBT MULTIPLES OF MIDDLE MARKET LBO LOANS
    Source: Dealogic and Robert W. Baird & Co. Incorporated M&A Market Analysis.
  • 85. STATE OF THE
    M&A MARKET
    LARRY BRAUN, SHEPPARD MULLIN
    MARKET IS ACTIVE(cont’d)
    CAPITAL – EXPECTED RETURNS
  • 86. STATE OF THE
    M&A MARKET
    LARRY BRAUN, SHEPPARD MULLIN
    U.S. MIDDLE MARKET M&A ACTIVITY
    Source: Dealogic and Robert W. Baird & Co. Incorporated M&A Market Analysis.
  • 87. STATE OF THE
    M&A MARKET
    LARRY BRAUN, SHEPPARD MULLIN
    ACTIVITY
    • Overall U.S. M&A activity rebounded in 2010
    • 88. Total Transactions 37%
    • 89. Deal Value 29%
    • 90. As of March 31, 2011
    • 91. Total deal volume reached $333 Billion vs. $220 billion as of March 31, 2010
    • 92. Continues to be impacted by muted economic growth
  • STATE OF THE
    M&A MARKET
    LARRY BRAUN, SHEPPARD MULLIN
    LOOKING FORWARD
    M&A activity will be very strong in Q4 2011 and all of 2012, as
    sellers seek to lock in current tax rates [subject to overall economy]
    For many sellers, 2012 will be a better time as their businesses will
    distance themselves from 2008/2009 results
  • 93. STATE OF THE
    M&A MARKET
    LARRY BRAUN, SHEPPARD MULLIN
    LOOKING FORWARD (Cont’d)
    • With the cost of capital at record lows, strategic buyers with strong, liquid balance sheets will continue to pursue synergistic targets
    • 94. Acquisitions will increasingly be viewed as a reliable way to capture market share and reduce expenses in this slow growth environment
    • 95. Both private equity sponsors and strategic buyers will keep valuations for quality companies at elevated levels, as IRR expectations decline and debt markets continue to improve
  • STATE OF THE
    M&A MARKET
    LARRY BRAUN, SHEPPARD MULLIN
    EQUITY USED IN LEVERAGED BUYOUTS
  • 96. STATE OF THE
    M&A MARKET
    LARRY BRAUN, SHEPPARD MULLIN
    STRATEGIC ACQUIRORS HAVE BEEN ACTIVELY PURSING TRANSACTIONS WITH SOUND STRATEGIC RATIONALES.
    The higher cost of capital and more difficult financing environment for leveraged buyouts should translate into greater opportunity for strategic acquirors to prevail in M&A processes.
    U.S. MIDDLE MARKET TRANSACTION COMPOSITION –
    STRATEGIC VS. SPONSOR DEAL VALUE
  • 97. STATE OF THE
    M&A MARKET
    LARRY BRAUN, SHEPPARD MULLIN
    SUMMARY OF THE M&A MARKET
  • STATE OF THE
    M&A MARKET
    LARRY BRAUN, SHEPPARD MULLIN
    AREAS OF FOCUS
  • STATE OF THE
    M&A MARKET
    LARRY BRAUN, SHEPPARD MULLIN
    PUBLIC MARKETS IMPACT M&A MARKET
    INITIAL PUBLIC OFFERINGS AND PROCEEDS
    Source: Renaissance Capital.com. YTD as of July.
    Note: Reflects deals with gross proceeds of over $100 million.
  • 108. M&A
    LARRY BRAUN, SHEPPARD MULLIN
    WHAT SHOULD YOU DO?
  • 109. M&A
    LARRY BRAUN, SHEPPARD MULLIN
    PREPARE, PREPARE, PREPARE
    • Consider acquisitions of product lines, technology or businesses that strengthen your business
    • 110. “Diligence Yourself”
    • 111. Be honest
    • 112. Credibility is key
    • 113. Common issues
    • 114. IP ownership
    • 115. Employee issues
    • 116. Audit issues
    • 117. Motivate Management
    • 118. Consider a myriad of tax deferral techniques
    • 119. Confidentiality
  • FINANCIAL AUDIT
    GALE MOORE, SINGERLEWAK
  • 120. FINANCIAL AUDIT
    GALE MOORE, SINGERLEWAK
    FINANCIAL ACCOUNTING AND
    REPORTING UPDATE
    EFFECTIVE IN 2011
    STILL HOT IN 2011
    PROMISED IN 2011
           
  • 121. FINANCIAL AUDIT
    GALE MOORE, SINGERLEWAK
    EFFECTIVE IN 2011
    GOODWILL IMPAIRMENT TEST
    • Guidance Related to Step 2 Analysis
    • 122. Public Years Beginning After 12/15/10
    • 123. Private Years Beginning After 12/15/11
           
  • 124. FINANCIAL AUDIT
    GALE MOORE, SINGERLEWAK
    EFFECTIVE IN 2011
    PUBLIC COMPANY BUSINESS COMBINATIONS
    • Supplementary Pro Forma Information
           
  • 125. FINANCIAL AUDIT
    GALE MOORE, SINGERLEWAK
    EFFECTIVE IN 2011
    FAIR VALUE MEASUREMENTS
    • Clarification on Level 3 Disclosures
           
  • 126. FINANCIAL AUDIT
    GALE MOORE, SINGERLEWAK
    EFFECTIVE IN 2011
    CERTAIN REVENUE ARRANGEMENTS THAT INCLUDE SOFTWARE ELEMENTS
    MULTIPLE-DELIVERABLE REVENUE ARRANGEMENTS
           
  • 127. FINANCIAL AUDIT
    GALE MOORE, SINGERLEWAK
    STILL HOT IN 2011
    REVENUE RECOGNITION
    • Multiple Element Arrangements (VSOE, TPE, ESP)
    • 128. Disclosure Related to Judgments
    • 129. Compliance with ASU 2009-13
  • FINANCIAL AUDIT
    GALE MOORE, SINGERLEWAK
    STILL HOT IN 2011
    GOODWILL IMPAIRMENT
    • Disclosures (key assumptions)
    • 130. Skepticism Directed at Impairment Analysis
    • 131. MD & A Discussion
  • FINANCIAL AUDIT
    GALE MOORE, SINGERLEWAK
    STILL HOT IN 2011
    FAIR VALUE MEASUREMENTS
    • Method and Assumptions Questioned
    • 132. Disclosures
  • FINANCIAL AUDIT
    GALE MOORE, SINGERLEWAK
    STILL HOT IN 2011
    CONTINGENCY DISCLOSURES
    • Discussion Not Robust (reasonably possible range)
    • 133. Same Disclosure for Multiple Years
    • 134. Settlement in Same Period of Initial Disclosure
  • FINANCIAL AUDIT
    GALE MOORE, SINGERLEWAK
    STILL HOT IN 2011
    BUSINESS COMBINATIONS
    • Contingencies
    • 135. Minority Interest
    • 136. Acquired Business Audited Financial Statements
    • 137. Pro-Forma Disclosures
  • FINANCIAL AUDIT
    GALE MOORE, SINGERLEWAK
    PROMISED IN 2011
    JOINT PROJECTS
    • Financial Instruments
    • 138. Balance Sheet Offsetting
    • 139. Revenue Recognition
  • FINANCIAL AUDIT
    GALE MOORE, SINGERLEWAK
    PROMISED IN 2011
    • Leases
    • 140. Fair Value Measurement
    • 141. Statement of Comprehensive Income
  • FINANCIAL AUDIT
    GALE MOORE, SINGERLEWAK
    PROMISED IN 2011
    • IASB – Insurance contracts
    • 142. FASB Consolidation
    • 143. IASB Consolidation
  • FINANCIAL AUDIT
    GALE MOORE, SINGERLEWAK
    PROMISED IN 2011
    • Consolidation – Investment companies
    • 144. Investment Properties
    • 145. IASB – Postemployment benefits
  • FINANCIAL AUDIT
    GALE MOORE, SINGERLEWAK
    PROMISED IN 2011
    • Discontinued Operations
    • 146. ***Loss Contingencies
  • KATHY GRIGGS,
    J2 GLOBAL COMMUNICATIONS
  • 147. THE HORIZON
    KATHY GRIGGS,
    J2 GLOBAL COMMUNICATIONS
    ABOUT J2 GLOBAL
    • Founded in 1995, j2 Global™ Communications provides outsourced, value-added messaging and communications services to individuals and businesses around the world.
    • 148. Offices in eight cities worldwide, j2 Global™ network spans more than 4,300 cities in 49 countries on six continents.
    • 149. j2 Global™ markets its services principally under the brands, eFax®, MyFax®, eFax Corporate™, FuseMail®, Onebox®, eVoice®, Campaigner®, Electric Mail®, and KeepItSafe®.
    • 150. As of December 2010, j2 Global™ had achieved 15 consecutive fiscal years of revenue growth.
  • THE HORIZON
    KATHY GRIGGS,
    J2 GLOBAL COMMUNICATIONS
    ACCOUNTING & TAX CHANGES
    • LEASES
    • 151. Leases recognized on the balance sheet
    • 152. No grandfathering – will apply to all outstanding leases
    • 153. Record all promised payments as a liability with an offsetting right to use asset
    • 154. IMPLICATIONS
    • 155. Buy versus Lease of an asset
    • 156. Impact on financial ratios and related debt covenants
    • 157. Educating users of financial statements
    • 158. TREATMENT
    • 159. Right of use asset = PV of lease payments plus initial direct costs incurred then amortized
    • 160. Obligation to pay rent liability = PV of lease payments and subsequent front end loading of expense
  • THE HORIZON
    KATHY GRIGGS,
    J2 GLOBAL COMMUNICATIONS
    ACCOUNTING & TAX CHANGES
    • SALES TAXES - NEXUS
    • 161. Physical location in a state
    • 162. Employees in a state
    • 163. Property in the state
    • 164. Solicit business in the state
    • 165. EFFORTS TO EXTEND SALES TAX TO INTERNET BASED BUSINESSES
    • 166. No physical presence required
    • 167. CONSEQUENCES
    • 168. Subscribers in every state but limited presence in a few states
    • 169. States broaden the definition of nexus to encompass other criteria – significant burden will be placed on the business and ultimately passed to the subscriber
  • THE HORIZON
    KATHY GRIGGS,
    J2 GLOBAL COMMUNICATIONS
    J2 AND M&A
  • THE HORIZON
    KATHY GRIGGS,
    J2 GLOBAL COMMUNICATIONS
    J2 GLOBAL’S CORE STRATEGY
    CLOUD SERVICES FOR BUSINESS
    OUR OWN BRANDS
    RECURRING REVENUE
    EFFICIENT OPERATIONS
    All brand names and logos are trademarks of j2 Global Communications, Inc. or its affiliates in the U.S. and/or internationally.
  • 174. CONTACT US
    www.SingerLewak.com
    877.754.4557
    www.brileyco.com
    310.966.1444
    www.SheppardMullin.com
    858.720.7469
    www.j2global.com
    323.860.9200