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Segment and Geographic Information
 6 Months Ended
Jun. 30, 2020
Segments, Geographical Areas [Abstract]  
Segment and Geographic Information Segment InformationIn accordance with ASC Topic 280, Segment Reporting: (Topic 280), the Company’s businesses are based on the organizational structure used by the chief operating decision maker (“CODM”) for making operating and investment decisions
and for assessing performance. The CODM views the Company as two businesses: Cloud Services and Digital Media. However, in accordance with the aggregation criteria within ASC Topic 280, J2 Global’s operating segments have been aggregated into three reportable segments: (i) Fax and Martech (formerly Email Marketing); (ii) Voice, Backup, Security, and Consumer Privacy and Protection; and (iii) Digital Media.

The Company’s Cloud Services business is driven primarily by subscription revenues that are relatively higher margin, stable and predictable from quarter to quarter with some seasonal weakness in the fourth quarter. The Company’s Digital Media business is driven primarily by advertising and subscription revenues, has relatively higher sales and marketing expense and has seasonal strength in the fourth quarter.
The accounting policies of the businesses are the same as those described in the Company’s Annual Report on Form 10-K filed with the SEC on March 2, 2020. The Company evaluates performance based on revenue, gross margin and profit or loss from operations before income taxes, not including nonrecurring gains and losses and foreign exchange gains and losses.
Information on reportable segments and reconciliation to consolidated income from operations is as follows (in thousands):
Three Months Ended
June 30,		Six Months Ended
June 30,
2020201920202019
Revenue by reportable segment:
Fax and Martech (1)
$93,976  $95,567  $188,643  $188,850  
Voice, Backup, Security, and CPP (1)
73,082  73,565  148,199  132,527  
Cloud Services Total167,058  169,132  336,842  321,377  
Digital Media163,987  153,359  326,678  301,042  
Elimination of inter-segment revenues(61) (61) (144) (97) 
Total segment revenues330,984  322,430  663,376  622,322  
Corporate (2)
—  2  1  3  
Total revenues$330,984  $322,432  $663,377  $622,325  
Gross profit by reportable segment:
Fax and Martech (1)
$77,245  $81,141  $156,714  $160,326  
Voice, Backup, Security, and CPP (1)
50,386  51,393  102,341  91,970  
Cloud Services Total127,631  132,534  259,055  252,296  
Digital Media146,649  129,691  288,569  258,844  
Elimination of inter-segment gross profit(61) (61) (144) (97) 
Total segment gross profit274,219  262,164  547,480  511,043  
Corporate (2)
(37) 2  (36) 3  
Total gross profit$274,182  $262,166  $547,444  $511,046  
Direct costs by reportable segment (3):
Fax and Martech (1)
$28,789  $31,455  $60,507  $65,689  
Voice, Backup, Security, and CPP (1)
36,863  38,732  80,835  65,726  
Cloud Services Total65,652  70,187  141,342  131,415  
Digital Media129,829  128,158  266,797  258,326  
Elimination of inter-segment direct costs(61) (61) (144) (97) 
Total segment direct costs
195,420  198,284  407,995  389,644  
Corporate (2)
5,722  7,268  11,162  13,926  
Total direct costs (3)
$201,142  $205,552  $419,157  $403,570  
Operating income by reportable segment:
Fax and Martech (1)
$48,456  $49,686  $96,207  $94,637  
Voice, Backup, Security, and CPP (1)
13,523  12,661  21,506  26,244  
Cloud Services Total61,979  62,347  117,713  120,881  
Digital Media16,820  1,533  21,772  518  
Total segment operating income78,799  63,880  139,485  121,399  
Corporate (2)
(5,759) (7,266) (11,198) (13,923) 
Total income from operations$73,040  $56,614  $128,287  $107,476  
(1) The Company reclassified certain intercompany revenue and expenses within the six months ended June 30, 2020 and three and six months ending June 30, 2019 for Cloud Services in order to better align with a stand-alone presentation.
(2) Corporate includes costs associated with general and administrative and other expenses that are managed on a global basis and that are not directly attributable to any particular segment.
(3) Direct costs for each segment include 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.
The CODM does not use Balance Sheet and Cash Flow information in connection with operating and investment decisions other than as presented for Cloud Services and Digital Media. Accordingly, the following segment information is presented for Cloud Services and Digital Media.
June 30, 2020December 31, 2019
Assets:
Cloud Services (1)
$1,477,190  $1,466,969  
Digital Media1,433,537  1,561,024  
Total assets from Cloud Services and Digital Media2,910,727  3,027,993  
Corporate508,718  477,853  
Total assets$3,419,445  $3,505,846  
(1) Assets of $19.0 million, which were classified as held for sale, were included with Cloud Services at June 30, 2020 (see Note 6 - Assets Held For Sale).
Six Months Ended
June 30,
20202019
Capital expenditures:
Cloud Services$21,096  $9,605  
Digital Media29,441  21,186  
Total capital expenditures from Cloud Services and Digital Media50,537  30,791  
Corporate—  —  
Total capital expenditures$50,537  $30,791  

Three Months Ended
June 30,		Six Months Ended
June 30,
2020201920202019
Depreciation and amortization:
Cloud Services$16,992  $20,492  $37,831  $33,841  
Digital Media32,565  35,898  65,120  71,077  
Total depreciation and amortization from Cloud Services and Digital Media49,557  56,390  102,951  104,918  
Corporate531  613  1,117  1,294  
Total depreciation and amortization$50,088  $57,003  $104,068  $106,212  

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,
2020201920202019
Revenues:
United States$261,157  $253,234  $531,466  $484,577  
Canada17,000  17,300  33,570  34,353  
Ireland12,570  15,440  25,573  31,063  
All other countries40,257  36,458  72,768  72,332  
$330,984  $322,432  $663,377  $622,325  
June 30,
2020		December 31,
2019
Long-lived assets:
United States$636,599  $701,580  
All other countries (1)
79,474  76,927  
Total$716,073  $778,507  
(1) Long-lived assets of $2.8 million, which were classified as assets held for sale, were included with foreign assets at June 30, 2020.