Geographic Information

6 Months Ended

Jun. 30, 2013

Segments, Geographical Areas [Abstract]

Geographic Information

Segment 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 policies are the same as described in Note 1 - Basis of Presentation.

Information on reportable segments and reconciliation to consolidated income from operations is presented below (in thousands):

	Three Months Ended June 30,					Six Months Ended June 30,
	2013			2012		2013			2012
Revenues by segment:
Business Cloud Services	$	108,768		$	89,465	$	199,507		$	176,117
Digital Media	32,778			—		55,685			—
Elimination of inter-segment revenues	(185		)	—		(214		)	—
Total revenues	141,361			89,465		254,978			176,117
Direct costs by segment(1):
Business Cloud Services	48,489			42,159		94,571			84,684
Digital Media	33,290			—		60,193			—
Direct costs by segment(1):	81,779			42,159		154,764			84,684
Business Cloud Services operating income	60,279			47,306		104,936			91,433
Digital Media operating loss	(513		)	—		(4,509		)	—
Segment operating income	59,766			47,306		100,427			91,433
Global operating costs(2)	7,159			7,279		14,833			13,797
Income from operations	$	52,607		$	40,027	$	85,594		$	77,636
(1) Direct costs for each segment include cost of revenues and other operating expenses that are directly attributable to the segment such as employee compensation expense, local sales and marketing expenses, engineering and operations, depreciation and amortization and other administrative expenses.
(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.

	June 30, 2013			December 31, 2012
Assets:
Business Cloud Services	$	867,458		$	788,828
Digital Media	301,599			204,244
Total assets from reportable segments	1,169,057			993,072
Corporate	2,322			2,098
Elimination of inter-segment note receivable	(67,500		)	—
Total assets	$	1,103,879		$	995,170
	Six Months Ended June 30,
	2013			2012
Capital expenditures:
Business Cloud Services	$	2,661		$	2,590
Digital Media	3,022			—
Total from reportable segments	5,683			2,590
Corporate	306			200
Total capital expenditures	$	5,989		$	2,790

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
Depreciation and amortization:
Business Cloud Services	$	5,906	$	5,153	$	11,362	$	9,954
Digital Media	3,415		—		6,567		—
Total from reportable segments	9,321		5,153		17,929		9,954
Corporate	158		118		312		243
Total depreciation and amortization	$	9,479	$	5,271	$	18,241	$	10,197

j2 Global maintains operations in the U.S., Canada, Ireland, Japan and other countries. Geographic information about the U.S. and all other countries for the reporting periods is presented below. Such information attributes revenues based on jurisdictions where revenues are reported (in thousands).

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
Revenues:
United States	$	103,619	$	54,896	$	179,997	$	109,017
Canada	18,587		20,388		37,145		40,589
Ireland	10,307		10,353		20,405		20,784
All other countries	8,848		3,828		17,431		5,727
	$	141,361	$	89,465	$	254,978	$	176,117

	June 30, 2013		December 31, 2012
Long-lived assets:
United States	$	146,863	$	105,549
All other countries	47,445		46,554
Total	$	194,308	$	152,103