Geographic Information

9 Months Ended

Sep. 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 September 30,					Nine Months Ended September 30,
	2013			2012		2013			2012
Revenues by segment:
Business Cloud Services	$	94,391		$	93,246	$	293,898		$	269,363
Digital Media	33,522			—		89,207			—
Elimination of inter-segment revenues	(125		)	—		(339		)	—
Total revenues	127,788			93,246		382,766			269,363
Direct costs by segment(1):
Business Cloud Services	48,504			44,379		143,075			129,063
Digital Media	32,652			—		92,845			—
Direct costs by segment(1):	81,156			44,379		235,920			129,063
Business Cloud Services operating income	45,886			48,866		150,823			140,300
Digital Media operating income (loss)	871			—		(3,638		)	—
Segment operating income	46,757			48,866		147,185			140,300
Global operating costs(2)	7,449			6,589		22,283			20,386
Income from operations	$	39,308		$	42,277	$	124,902		$	119,914
(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.

	September 30, 2013			December 31, 2012
Assets:
Business Cloud Services	$	896,847		$	788,828
Digital Media	306,750			204,244
Total assets from reportable segments	1,203,597			993,072
Corporate	1,993			2,098
Elimination of inter-segment note receivable	(67,500		)	—
Total assets	$	1,138,090		$	995,170
	Nine Months Ended September 30,
	2013			2012
Capital expenditures:
Business Cloud Services	$	5,573		$	3,512
Digital Media	5,067			—
Total from reportable segments	10,640			3,512
Corporate	475			234
Total capital expenditures	$	11,115		$	3,746

	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
Depreciation and amortization:
Business Cloud Services	$	6,248	$	5,245	$	17,609	$	15,179
Digital Media	3,767		—		10,335		—
Total from reportable segments	10,015		5,245		27,944		15,179
Corporate	168		133		480		376
Total depreciation and amortization	$	10,183	$	5,378	$	28,424	$	15,555

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 September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
Revenues:
United States	$	90,447	$	58,194	$	270,444	$	167,211
Canada	17,992		20,028		55,137		60,616
Ireland	10,417		10,124		30,822		30,908
All other countries	8,932		4,900		26,363		10,628
	$	127,788	$	93,246	$	382,766	$	269,363

	September 30, 2013		December 31, 2012
Long-lived assets:
United States	$	146,039	$	105,549
All other countries	48,104		46,554
Total	$	194,143	$	152,103