XML 44 R33.htm IDEA: XBRL DOCUMENT v3.4.0.3
Segment and Geographic Information (Tables)
3 Months Ended
Mar. 31, 2016
Segment Reporting Information [Line Items]  
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block]
Information on reportable segments and reconciliation to consolidated income from operations is presented below (in thousands):
 
Three Months Ended March 31,
 
2016
 
2015
Revenues by segment:
 
 
 
Business Cloud Services
$
138,139

 
$
118,061

Digital Media
62,409

 
43,257

Elimination of inter-segment revenues
(46
)
 
(65
)
Total revenues
200,502

 
161,253

 
 
 
 
Direct costs by segment(1):
 
 
 
Business Cloud Services
87,862

 
71,043

Digital Media
54,676

 
39,089

Direct costs by segment(1):
142,538

 
110,132

 
 
 
 
Business Cloud Services operating income(2)
50,277

 
47,018

Digital Media operating income
7,733

 
4,168

Segment operating income
58,010

 
51,186

 
 
 
 
Global operating costs(2)(3)
4,672

 
10,656

Income from operations
$
53,338

 
$
40,530

 
 
 
 
(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) During the first quarter 2016, the Company determined certain personnel and third-party costs were directly attributable to a particular segment. As a result, these costs were no longer classified as Global operating costs in 2016. If such costs in the prior period were classified consistent with the 2016 presentation, the operating income for Business Cloud Services segment would have been $42.0 million and Global operating costs would have been $5.6 million for the three month period ended March 31, 2015.
(3) 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.
Schedule of Segment Reporting Information, by Segment [Table Text Block]
 
March 31, 2016
 
December 31, 2015
Assets:
 
 
 
Business Cloud Services
$
1,038,792

 
$
1,017,676

Digital Media
393,840

 
427,647

Total assets from reportable segments
1,432,632

 
1,445,323

Corporate
339,202

 
338,396

Total assets
$
1,771,834

 
$
1,783,719

 
 
 

 
Three Months Ended March 31,
 
2016
 
2015
Capital expenditures:
 
 
 
Business Cloud Services
$
1,121

 
$
1,280

Digital Media
3,200

 
1,622

Total from reportable segments
4,321

 
2,902

Corporate

 
54

Total capital expenditures
$
4,321

 
$
2,956


 
Three Months Ended March 31,
 
2016
 
2015
Depreciation and amortization:
 
 
 
Business Cloud Services
$
17,502

 
$
14,013

Digital Media
9,672

 
7,080

Total from reportable segments
27,174

 
21,093

Corporate

 
194

Total depreciation and amortization
$
27,174

 
$
21,287



The Company's Business Cloud Services segment consists of several services which have similar economic characteristics, including the nature of the services and their production processes, the type of customers, as well as the methods used to distribute these services.

j2 Global groups these services into two main categories based on the similarities of these services: Cloud Connect and Other Cloud Services. Cloud Connect consists of our Fax and Voice services. Other Cloud Services consist of Backup, Email Security, Email Marketing and Web Hosting.
 
 
Three Months Ended March 31, 2016
 
Three Months Ended March 31, 2015
 
Revenue
 
Depreciation and Amortization
 
Operating Income(4)
 
Revenue
 
Depreciation and Amortization
 
Operating Income(4)
 
 
 
 
 
 
 
 
 
 
 
 
Cloud Connect
(Fax/Voice)
$
90,244

 
$
5,570

 
$
40,520

 
$
86,204

 
$
5,270

 
$
43,014

Cloud Services
47,895

 
11,932

 
9,757

 
31,857

 
8,743

 
4,004

   Total
$
138,139

 
$
17,502

 
$
50,277

 
$
118,061

 
$
14,013

 
$
47,018

 
 
 
 
 
 
 
 
 
 
 
 
(4) During the first quarter 2016, the Company determined certain personnel and third-party costs were directly attributable to a particular segment. As a result, these costs were no longer classified as Global operating costs in 2016. If such costs in the prior period were classified consistent with the 2016 presentation, the operating income for Cloud Connect and Other Cloud Services would have been $39.6 million and $2.4 million, respectively, for the three months ended March 31, 2015.
Summary On Revenues And Long-Lived Assets By Geographic Areas
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 March 31,
 
2016
 
2015
Revenues:
 
 
 
United States
$
137,639

 
$
109,032

Canada
18,366

 
18,139

Ireland
12,549

 
9,935

All other countries
31,948

 
24,147

 
$
200,502

 
$
161,253


 
March 31,
2016
 
December 31,
2015
Long-lived assets:
 
 
 
United States
$
275,319

 
$
271,796

All other countries
110,929

 
105,477

Total
$
386,248

 
$
377,273