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v3.21.2

Segment Information (Tables) | 6 Months Ended
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Jun. 30, 2021
Segment Reporting [Abstract] |
Reconciliation of Total Segment Operating Income to Consolidated Operating Income | 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, |
|  |  |  |  | 2021 |  | 2020 |  | 2021 |  | 2020 |
Revenue by reportable segment: |  |  |  |  |  |  |  |  |  |  |  |
Digital Media |  |  |  |  | $ | 253,977 |  |  | $ | 163,987 |  |  | $ | 480,850 |  |  | $ | 326,678 |  |
Cloud Services |  |  |  |  |  |  |  |  |  |  |  |
Fax and Martech |  |  |  |  | 105,127 |  |  | 93,976 |  |  | 206,181 |  |  | 188,643 |  |
Voice, Backup, Security, and CPP |  |  |  |  | 70,232 |  |  | 73,082 |  |  | 140,607 |  |  | 148,199 |  |
Cloud Services Total |  |  |  |  | 175,359 |  |  | 167,058 |  |  | 346,788 |  |  | 336,842 |  |
Elimination of inter-segment revenues |  |  |  |  | (292) |  |  | (61) |  |  | (410) |  |  | (144) |  |
Total segment revenues |  |  |  |  | 429,044 |  |  | 330,984 |  |  | 827,228 |  |  | 663,376 |  |
Corporate (1) |  |  |  |  | — |  |  | — |  |  | — |  |  | 1 |  |
Total revenues |  |  |  |  | $ | 429,044 |  |  | $ | 330,984 |  |  | $ | 827,228 |  |  | $ | 663,377 |  |
Gross profit by reportable segment: |  |  |  |  |  |  |  |  |  |  |  |
Digital Media |  |  |  |  | $ | 228,698 |  |  | $ | 146,649 |  |  | $ | 434,759 |  |  | $ | 288,569 |  |
Cloud Services |  |  |  |  |  |  |  |  |  |  |  |
Fax and Martech |  |  |  |  | 85,760 |  |  | 77,245 |  |  | 169,749 |  |  | 156,714 |  |
Voice, Backup, Security, and CPP |  |  |  |  | 51,334 |  |  | 50,386 |  |  | 101,760 |  |  | 102,341 |  |
Cloud Services Total |  |  |  |  | 137,094 |  |  | 127,631 |  |  | 271,509 |  |  | 259,055 |  |
Elimination of inter-segment gross profit |  |  |  |  | (76) |  |  | (61) |  |  | (126) |  |  | (144) |  |
Total segment gross profit |  |  |  |  | 365,716 |  |  | 274,219 |  |  | 706,142 |  |  | 547,480 |  |
Corporate (1) |  |  |  |  | (9) |  |  | (37) |  |  | (74) |  |  | (36) |  |
Total gross profit |  |  |  |  | $ | 365,707 |  |  | $ | 274,182 |  |  | $ | 706,068 |  |  | $ | 547,444 |  |
Direct costs by reportable segment (2): |  |  |  |  |  |  |  |  |  |  |  |
Digital Media (3) |  |  |  |  | $ | 184,592 |  |  | $ | 126,748 |  |  | $ | 360,010 |  |  | $ | 260,215 |  |
Cloud Services |  |  |  |  |  |  |  |  |  |  |  |
Fax and Martech (3) |  |  |  |  | 34,116 |  |  | 27,204 |  |  | 65,052 |  |  | 57,134 |  |
Voice, Backup, Security, and CPP (3) |  |  |  |  | 39,944 |  |  | 35,631 |  |  | 79,949 |  |  | 78,186 |  |
Cloud Services Total |  |  |  |  | 74,060 |  |  | 62,835 |  |  | 145,001 |  |  | 135,320 |  |
Elimination of inter-segment direct costs |  |  |  |  | (76) |  |  | (61) |  |  | (126) |  |  | (144) |  |
Total segment direct costs |  |  |  |  | 258,576 |  |  | 189,522 |  |  | 504,885 |  |  | 395,391 |  |
Corporate (1) |  |  |  |  | 12,847 |  |  | 11,620 |  |  | 28,419 |  |  | 23,766 |  |
Total direct costs (2) |  |  |  |  | $ | 271,423 |  |  | $ | 201,142 |  |  | $ | 533,304 |  |  | $ | 419,157 |  |
Operating income by reportable segment: |  |  |  |  |  |  |  |  |  |  |  |
Digital Media |  |  |  |  | $ | 44,106 |  |  | $ | 19,901 |  |  | $ | 74,749 |  |  | $ | 28,354 |  |
Cloud Services |  |  |  |  |  |  |  |  |  |  |  |
Fax and Martech |  |  |  |  | 51,644 |  |  | 50,041 |  |  | 104,697 |  |  | 99,580 |  |
Voice, Backup, Security, and CPP |  |  |  |  | 11,390 |  |  | 14,755 |  |  | 21,811 |  |  | 24,155 |  |
Cloud Services Total |  |  |  |  | 63,034 |  |  | 64,796 |  |  | 126,508 |  |  | 123,735 |  |
Total segment operating income |  |  |  |  | 107,140 |  |  | 84,697 |  |  | 201,257 |  |  | 152,089 |  |
Corporate (1) |  |  |  |  | (12,856) |  |  | (11,657) |  |  | (28,493) |  |  | (23,802) |  |
Total income from operations |  |  |  |  | $ | 94,284 |  |  | $ | 73,040 |  |  | $ | 172,764 |  |  | $ | 128,287 |  |
(1) 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. |
(2) 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. |
(3) Beginning in the third quarter of 2020, certain expenses associated with Corporate that were previously allocated to the Cloud Services business and the Digital Media business for shared costs incurred by Corporate were no longer allocated. Table above has been recast to remove the impact of certain expenses associated with Corporate that were previously allocated to the Cloud Services and Digital Media businesses. |
Total Assets, Capital Expenditures, Depreciation and Amortization | The CODM does not use Balance Sheet and Cash Flow information in connection with operating and investment decisions other than as presented for Digital Media and Cloud Services. Accordingly, the following segment information is presented for Digital Media and Cloud Services.
| June 30, 2021 |  | December 31, 2020
Assets: |  |  |
Digital Media | $ | 1,957,615 |  |  | $ | 2,088,397 |
Cloud Services (1) | 1,577,022 |  |  | 1,473,398 |
Total assets from Digital Media and Cloud Services | 3,534,637 |  |  | 3,561,795 |
Corporate | 168,729 |  |  | 103,536 |
Total assets | $ | 3,703,366 |  |  | $ | 3,665,331 |
(1) Assets of $107.1 million, which were classified as held for sale, were included within Cloud Services at June 30, 2021 (see Note 6 - Assets Held For Sale).
| Six Months Ended June 30,
| 2021 |  | 2020
Capital expenditures: |  |  |
Digital Media | $ | 38,047 |  |  | $ | 29,441 |
Cloud Services | 19,719 |  |  | 21,096 |
Total capital expenditures from Digital Media and Cloud Services | 57,766 |  |  | 50,537 |
Corporate | — |  |  | — |
Total capital expenditures | $ | 57,766 |  |  | $ | 50,537 |
|  |  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  |  |  |  | 2021 |  | 2020 |  | 2021 |  | 2020
Depreciation and amortization: |  |  |  |  |  |  |  |  |  |  |
Digital Media |  |  |  |  | $ | 49,076 |  |  | $ | 32,565 |  |  | $ | 97,426 |  |  | $ | 65,120 |
Cloud Services |  |  |  |  | 15,615 |  |  | 16,992 |  |  | 32,662 |  |  | 37,831 |
Total depreciation and amortization from Digital Media and Cloud Services |  |  |  |  | 64,691 |  |  | 49,557 |  |  | 130,088 |  |  | 102,951 |
Corporate |  |  |  |  | 45 |  |  | 531 |  |  | 138 |  |  | 1,117 |
Total depreciation and amortization |  |  |  |  | $ | 64,736 |  |  | $ | 50,088 |  |  | $ | 130,226 |  |  | $ | 104,068 |
Revenues and Long-lived Assets by Geographic Information | 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,
|  |  |  |  | 2021 |  | 2020 |  | 2021 |  | 2020
Revenues: |  |  |  |  |  |  |  |  |  |  |
United States |  |  |  |  | $ | 328,531 |  |  | $ | 261,157 |  |  | $ | 580,602 |  |  | $ | 531,466 |
Canada |  |  |  |  | 20,909 |  |  | 17,000 |  |  | 44,450 |  |  | 33,570 |
Ireland |  |  |  |  | 29,823 |  |  | 12,570 |  |  | 88,261 |  |  | 25,573 |
All other countries |  |  |  |  | 49,781 |  |  | 40,257 |  |  | 113,915 |  |  | 72,768 |
|  |  |  |  | $ | 429,044 |  |  | $ | 330,984 |  |  | $ | 827,228 |  |  | $ | 663,377 |
| June 30, 2021 |  | December 31, 2020
Long-lived assets: |  |  |
United States | $ | 858,369 |  |  | $ | 918,125 |
All other countries | 78,952 |  |  | 54,073 |
Total (1) | $ | 937,321 |  |  | $ | 972,198 |
(1) Long-lived assets of $38.1 million, which were classified as assets held for sale, were included within the schedule above at June 30, 2021.

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- Definition Tabular disclosure of the reconciliation of profit (loss) from reportable segments to the consolidated income (loss) before income tax expense (benefit) and discontinued operations. Includes, but is not limited to, reconciliation after income tax if income tax is allocated to the reportable segment. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8906-108599 + Details
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- Definition Tabular disclosure of information concerning material long-lived assets (excluding financial instruments, customer relationships with financial institutions, mortgage and other servicing rights, deferred policy acquisition costs, and deferred taxes assets) located in identified geographic areas and/or the amount of revenue from external customers attributed to that country from which revenue is material. An entity may also provide subtotals of geographic information about groups of countries. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 220 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SX 210.5-03.1) -URI http://asc.fasb.org/extlink&oid=123367319&loc=SL114868664-224227 + Details
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- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8813-108599 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8906-108599 + Details
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