Geographic Information

9 Months Ended

Sep. 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 September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
Revenues by segment:
Business Cloud Services	$	109,855		$	94,391		$	317,208		$	293,898
Digital Media	43,218			33,522			114,860			89,207
Elimination of inter-segment revenues	(55		)	(125		)	(182		)	(339		)
Total revenues	153,018			127,788			431,886			382,766
Direct costs by segment(1):
Business Cloud Services	60,841			48,504			176,609			143,075
Digital Media	35,872			32,652			97,305			92,845
Direct costs by segment(1):	96,713			81,156			273,914			235,920
Business Cloud Services operating income	49,014			45,886			140,599			150,823
Digital Media operating income (loss)	7,346			871			17,555			(3,638		)
Segment operating income	56,360			46,757			158,154			147,185
Global operating costs(2)	9,882			7,449			25,254			22,283
Income from operations	$	46,478		$	39,308		$	132,900		$	124,902
(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 network operations expense, 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, 2014		December 31, 2013
Assets:
Business Cloud Services	$	853,843	$	818,722
Digital Media	352,547		333,286
Total assets from reportable segments	1,206,390		1,152,008
Corporate	433,614		1,781
Total assets	$	1,640,004	$	1,153,789
	Nine Months Ended September 30,
	2014		2013
Capital expenditures:
Business Cloud Services	$	4,366	$	5,573
Digital Media	3,066		5,067
Total from reportable segments	7,432		10,640
Corporate	323		476
Total capital expenditures	$	7,755	$	11,116

	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
Depreciation and amortization:
Business Cloud Services	$	9,413	$	6,248	$	27,471	$	17,609
Digital Media	5,250		3,767		15,273		10,335
Total from reportable segments	14,663		10,015		42,744		27,944
Corporate	188		168		563		480
Total depreciation and amortization	$	14,851	$	10,183	$	43,307	$	28,424

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,
	2014		2013		2014		2013
Revenues:
United States	$	101,381	$	90,447	$	289,656	$	270,444
Canada	17,698		17,992		52,642		55,137
Ireland	10,846		10,417		32,118		30,822
All other countries	23,093		8,932		57,470		26,363
	$	153,018	$	127,788	$	431,886	$	382,766

	September 30, 2014		December 31, 2013
Long-lived assets:
United States	$	176,216	$	170,247
All other countries	93,264		51,675
Total	$	269,480	$	221,922