Segment and Geographic Information

9 Months Ended

Sep. 30, 2015

Segments, Geographical Areas [Abstract]

Segment and 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,
	2015			2014			2015			2014
Revenues by segment:
Business Cloud Services	$	126,436		$	109,855		$	369,685		$	317,208
Digital Media	52,312			43,218			146,476			114,860
Elimination of inter-segment revenues	(47		)	(55		)	(169		)	(182		)
Total revenues	178,701			153,018			515,992			431,886
Direct costs by segment(1):
Business Cloud Services	69,617			60,841			213,518			176,609
Digital Media	44,970			35,872			125,045			97,305
Direct costs by segment(1):	114,587			96,713			338,563			273,914
Business Cloud Services operating income	56,819			49,014			156,167			140,599
Digital Media operating income	7,342			7,346			21,431			17,555
Segment operating income	64,161			56,360			177,598			158,154
Global operating costs(2)	8,428			9,882			31,269			25,254
Income from operations	$	55,733		$	46,478		$	146,329		$	132,900
(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, 2015		December 31, 2014
Assets:
Business Cloud Services	$	1,000,638	$	883,587
Digital Media	403,708		378,381
Total assets from reportable segments	1,404,346		1,261,968
Corporate	360,653		443,234
Total assets	$	1,764,999	$	1,705,202
	Nine Months Ended September 30,
	2015		2014
Capital expenditures:
Business Cloud Services	$	6,078	$	4,366
Digital Media	5,528		3,066
Total from reportable segments	11,606		7,432
Corporate	321		323
Total capital expenditures	$	11,927	$	7,755

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Depreciation and amortization:
Business Cloud Services	$	12,961	$	9,413	$	41,733	$	27,471
Digital Media	7,280		5,250		21,303		15,273
Total from reportable segments	20,241		14,663		63,036		42,744
Corporate	214		188		599		563
Total depreciation and amortization	$	20,455	$	14,851	$	63,635	$	43,307

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,
	2015		2014		2015		2014
Revenues:
United States	$	119,177	$	101,381	$	349,226	$	289,656
Canada	18,836		17,698		55,922		52,642
Ireland	11,363		10,846		32,118		32,118
All other countries	29,325		23,093		78,726		57,470
	$	178,701	$	153,018	$	515,992	$	431,886

	September 30, 2015		December 31, 2014
Long-lived assets:
United States	$	287,096	$	216,099
All other countries	96,996		101,107
Total	$	384,092	$	317,206