Geographic Information

6 Months Ended

Jun. 30, 2014

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,
	2014			2013			2014			2013
Revenues by segment:
Business Cloud Services	$	106,523		$	108,768		$	207,353		$	199,507
Digital Media	38,274			32,778			71,642			55,685
Elimination of inter-segment revenues	(53		)	(185		)	(127		)	(214		)
Total revenues	144,744			141,361			278,868			254,978
Direct costs by segment(1):
Business Cloud Services	60,156			48,489			115,768			94,571
Digital Media	32,717			33,290			61,433			60,193
Direct costs by segment(1):	92,873			81,779			177,201			154,764
Business Cloud Services operating income	46,367			60,279			91,585			104,936
Digital Media operating income (loss)	5,556			(513		)	10,208			(4,509		)
Segment operating income	51,923			59,766			101,793			100,427
Global operating costs(2)	7,085			7,159			15,371			14,833
Income from operations	$	44,838		$	52,607		$	86,422		$	85,594
(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, 2014		December 31, 2013
Assets:
Business Cloud Services	$	907,848	$	818,722
Digital Media	337,554		333,286
Total assets from reportable segments	1,245,402		1,152,008
Corporate	394,415		1,781
Elimination of intersegment receivables	—		—
Elimination of inter-segment note receivable	—		—
Total assets	$	1,639,817	$	1,153,789
	Six Months Ended June 30,
	2014		2013
Capital expenditures:
Business Cloud Services	$	2,803	$	2,661
Digital Media	1,618		3,022
Total from reportable segments	4,421		5,683
Corporate	210		306
Total capital expenditures	$	4,631	$	5,989

	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
Depreciation and amortization:
Business Cloud Services	$	10,026	$	5,906	$	18,058	$	11,362
Digital Media	5,105		3,415		10,023		6,567
Total from reportable segments	15,131		9,321		28,081		17,929
Corporate	186		158		374		312
Total depreciation and amortization	$	15,317	$	9,479	$	28,455	$	18,241

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,
	2014		2013		2014		2013
Revenues:
United States	$	96,847	$	103,619	$	188,274	$	179,997
Canada	17,436		18,587		34,944		37,145
Ireland	11,414		10,307		22,509		20,405
All other countries	19,047		8,848		33,141		17,431
	$	144,744	$	141,361	$	278,868	$	254,978

	June 30, 2014		December 31, 2013
Long-lived assets:
United States	$	166,668	$	170,247
All other countries	96,015		51,675
Total	$	262,683	$	221,922