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Segment Information | 12 Months Ended
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Dec. 31, 2020
Segment Reporting [Abstract] |
Segment Information | Segment Information 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. In connection with the Highwinds Capital, Inc. and Cloak Holdings, LLC acquisition in the second quarter of 2019 (see Note 4 - Business Acquisitions), the Company renamed its Voice, Backup and Security reportable segment to include its newly acquired consumer privacy and protection business, now the Voice, Backup, Security and Consumer Privacy and Protection segment. 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 minor 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 Note 2 - Basis of Presentation and Summary of Significant Accounting Policies. 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):
| Years Ended December 31,
| 2020 |  | 2019 |  | 2018
Revenue by reportable segment: |  |  |  |  |
Fax and Martech (1) | $ | 386,276 |  |  | $ | 378,444 |  |  | $ | 360,479 |
Voice, Backup, Security, and CPP (1) | 292,185 |  |  | 283,391 |  |  | 237,496 |
Cloud Services Total | 678,461 |  |  | 661,835 |  |  | 597,975 |
Digital Media | 811,360 |  |  | 710,511 |  |  | 609,374 |
Elimination of inter-segment revenues | (229) |  |  | (300) |  |  | (60) |
Total segment revenues | 1,489,592 |  |  | 1,372,046 |  |  | 1,207,289 |
Corporate (2) | 1 |  |  | 8 |  |  | 6 |
Total revenues | 1,489,593 |  |  | 1,372,054 |  |  | 1,207,295 |
Gross profit by reportable segment: |  |  |  |  |
Fax and Martech (1) | 320,714 |  |  | 318,677 |  |  | 311,534 |
Voice, Backup, Security, and CPP (1) | 203,486 |  |  | 198,888 |  |  | 164,287 |
Cloud Services Total | 524,200 |  |  | 517,565 |  |  | 475,821 |
Digital Media | 733,887 |  |  | 617,458 |  |  | 530,455 |
Elimination of inter-segment gross profit | (229) |  |  | (300) |  |  | (60) |
Total segment gross profit | 1,257,858 |  |  | 1,134,723 |  |  | 1,006,216 |
Corporate (2) | (47) |  |  | 8 |  |  | 5 |
Total gross profit | 1,257,811 |  |  | 1,134,731 |  |  | 1,006,221 |
Direct costs by reportable segment (3): |  |  |  |  |
Fax and Martech (1)(4) | 116,923 |  |  | 119,574 |  |  | 125,963 |
Voice, Backup, Security, and CPP (1)(4) | 158,074 |  |  | 150,451 |  |  | 113,666 |
Cloud Services Total | 274,997 |  |  | 270,025 |  |  | 239,629 |
Digital Media (4) | 594,807 |  |  | 540,193 |  |  | 483,167 |
Elimination of inter-segment direct costs | (229) |  |  | (300) |  |  | (60) |
Total segment direct costs | 869,575 |  |  | 809,918 |  |  | 722,736 |
Corporate (2) | 53,625 |  |  | 47,733 |  |  | 39,205 |
Total direct costs (3) | 923,200 |  |  | 857,651 |  |  | 761,941 |
Operating income by reportable segment: |  |  |  |  |
Fax and Martech | 203,791 |  |  | 199,103 |  |  | 185,571 |
Voice, Backup, Security, and CPP | 45,412 |  |  | 48,437 |  |  | 50,621 |
Cloud Services Total | 249,203 |  |  | 247,540 |  |  | 236,192 |
Digital Media | 139,080 |  |  | 77,265 |  |  | 47,288 |
Total segment operating income | 388,283 |  |  | 324,805 |  |  | 283,480 |
Corporate (2) | (53,672) |  |  | (47,725) |  |  | (39,200) |
Total income from operations | $ | 334,611 |  |  | $ | 277,080 |  |  | $ | 244,280 |
(1) The Company reclassified certain intercompany revenue and expenses in 2019 and 2018 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.
(4) Table above has been recast to remove the impact of certain expenses associated with the Corporate entity that were previously allocated to the Cloud Services and Digital Media businesses.
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.
| 2020 |  | 2019 |  |
Assets: |  |  |  |  |
Cloud Services | $ | 1,473,398 |  |  | $ | 1,466,969 |  |  |
Digital Media | 2,088,397 |  |  | 1,561,024 |  |  |
Total assets from Cloud Services and Digital Media | 3,561,795 |  |  | 3,027,993 |  |  |
Corporate | 103,536 |  |  | 477,853 |  |  |
Total assets | $ | 3,665,331 |  |  | $ | 3,505,846 |  |  |
| 2020 |  | 2019 |  | 2018
Capital expenditures: |  |  |  |  |
Cloud Services | $ | 32,859 |  |  | $ | 21,826 |  |  | $ | 13,832 |
Digital Media | 59,693 |  |  | 48,736 |  |  | 42,547 |
Total capital expenditures from Cloud Services and Digital Media | 92,552 |  |  | 70,562 |  |  | 56,379 |
Corporate | — |  |  | 26 |  |  | — |
Total capital expenditures | $ | 92,552 |  |  | $ | 70,588 |  |  | $ | 56,379 |
Depreciation and amortization: |  |  |  |  |
Cloud Services | $ | 79,754 |  |  | $ | 80,970 |  |  | $ | 60,754 |
Digital Media | 145,321 |  |  | 148,575 |  |  | 122,843 |
Total depreciation and amortization from Cloud Services and Digital Media | 225,075 |  |  | 229,545 |  |  | 183,597 |
Corporate | 3,662 |  |  | 2,487 |  |  | 3,577 |
Total depreciation and amortization | $ | 228,737 |  |  | $ | 232,032 |  |  | $ | 187,174 |
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 markets where revenues are reported (in thousands).
| Years ended December 31, |  |
| 2020 |  | 2019 |  | 2018 |  |  |  |
Revenues: |  |  |  |  |  |  |  |  |
United States | $ | 1,215,281 |  |  | $ | 1,100,298 |  |  | $ | 924,051 |  |  |  |  |
Canada | 70,073 |  |  | 67,518 |  |  | 73,742 |  |  |  |  |
Ireland | 55,917 |  |  | 59,009 |  |  | 69,291 |  |  |  |  |
All other countries | 148,322 |  |  | 145,229 |  |  | 140,211 |  |  |  |  |
Total | $ | 1,489,593 |  |  | $ | 1,372,054 |  |  | $ | 1,207,295 |  |  |  |  |
| December 31, 2020 |  | December 31, 2019
Long-lived assets: |  |  |
United States | $ | 918,125 |  |  | $ | 701,580 |
All other countries | 54,073 |  |  | 76,927 |
Total | $ | 972,198 |  |  | $ | 778,507 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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