XML 65 R29.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Segment Information | 12 Months Ended
--- | ---
Dec. 31, 2021
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”). The CODM views the Company as two businesses: Cybersecurity and Martech and Digital Media. In connection with the spin-off of the cloud fax business, the Company revised its reportable segments to reflect how the CODM views the business for making operating and investment decisions and for assessing performance. Prior to the spin-off, the Company had three reportable segments: (i) Fax and Martech; (ii) Voice, Backup, Security, and Consumer Privacy and Protection; and (iii) Digital Media. Following the spin-off, the Company has two reportable segments: (i) Digital Media and (ii) Cybersecurity and Martech. The Company’s Digital Media business is driven primarily by advertising revenues, has relatively higher sales and marketing expense and has seasonal strength in the fourth quarter. The Company’s Cybersecurity and Martech business is driven primarily by subscription revenues with relatively stable and predictable margins from quarter to 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 continuing operations is as follows (in thousands):
| Years Ended December 31,
| 2021 |  | 2020 |  | 2019
Revenue by reportable segment: |  |  |  |  |
Digital Media | $ | 1,069,300 |  |  | $ | 811,360 |  |  | $ | 710,511 |
Cybersecurity and Martech | 348,611 |  |  | 347,697 |  |  | 340,245 |
Elimination of inter-segment revenues | (1,189) |  |  | (229) |  |  | (300) |
Total segment revenues | 1,416,722 |  |  | 1,158,828 |  |  | 1,050,456 |
Corporate(1) | — |  |  | 1 |  |  | 8 |
Total revenues | 1,416,722 |  |  | 1,158,829 |  |  | 1,050,464 |
Gross profit by reportable segment: |  |  |  |  |
Digital Media | 974,546 |  |  | 733,887 |  |  | 617,458 |
Cybersecurity and Martech | 255,042 |  |  | 246,815 |  |  | 245,966 |
Elimination of inter-segment gross profit | (824) |  |  | (229) |  |  | (300) |
Total segment gross profit | 1,228,764 |  |  | 980,473 |  |  | 863,124 |
Corporate(1) | (95) |  |  | (47) |  |  | 8 |
Total gross profit | 1,228,669 |  |  | 980,426 |  |  | 863,132 |
Direct costs by reportable segment (2): |  |  |  |  |
Digital Media | 757,053 |  |  | 594,807 |  |  | 540,193 |
Cybersecurity and Martech | 225,740 |  |  | 193,883 |  |  | 187,283 |
Elimination of inter-segment direct costs | (824) |  |  | (229) |  |  | (300) |
Total segment direct costs | 981,969 |  |  | 788,461 |  |  | 727,176 |
Corporate(1) | 79,360 |  |  | 53,625 |  |  | 47,733 |
Total direct costs | 1,061,329 |  |  | 842,086 |  |  | 774,909 |
Operating income by reportable segment: |  |  |  |  |
Digital Media operating income | 217,493 |  |  | 139,080 |  |  | 77,265 |
Cybersecurity and Martech operating income | 29,302 |  |  | 52,932 |  |  | 58,683 |
Total segment operating income | 246,795 |  |  | 192,012 |  |  | 135,948 |
Corporate(2) | (79,455) |  |  | (53,672) |  |  | (47,725) |
Total income from continuing operations | $ | 167,340 |  |  | $ | 138,340 |  |  | $ | 88,223 |
(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 Digital Media business and Cybersecurity and Martech 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 Digital Media and Cybersecurity and Martech businesses.
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 Cybersecurity and Martech. Accordingly, the following segment information is presented for Digital Media and Cybersecurity and Martech.
|  |  | 2021 |  | 2020
Assets: |  |  |  |  |
Digital Media |  |  | $ | 2,043,204 |  |  | $ | 2,088,397 |
Cybersecurity and Martech |  |  | 1,088,741 |  |  | 905,847 |
Total assets from reportable segments |  |  | 3,131,945 |  |  | 2,994,244 |
Corporate |  |  | 638,335 |  |  | 103,536 |
Assets of discontinued operations |  |  | — |  |  | 567,551 |
Total assets |  |  | $ | 3,770,280 |  |  | $ | 3,665,331 |
| 2021 |  | 2020 |  | 2019
Capital expenditures: |  |  |  |  |
Digital Media | $ | 80,877 |  |  | $ | 59,693 |  |  | $ | 48,736 |
Cybersecurity and Martech | 32,863 |  |  | 32,859 |  |  | 21,826 |
Total from reportable segments | 113,740 |  |  | 92,552 |  |  | 70,562 |
Corporate | — |  |  | — |  |  | 26 |
Total capital expenditures | $ | 113,740 |  |  | $ | 92,552 |  |  | $ | 70,588 |
Depreciation and amortization: |  |  |  |  |
Digital Media | $ | 193,661 |  |  | $ | 145,321 |  |  | $ | 148,575 |
Cybersecurity and Martech | 64,354 |  |  | 79,758 |  |  | 80,970 |
Total from reportable segments | 258,015 |  |  | 225,079 |  |  | 229,545 |
Corporate | 288 |  |  | 3,658 |  |  | 2,487 |
Total depreciation and amortization | $ | 258,303 |  |  | $ | 228,737 |  |  | $ | 232,032 |
The Company maintains operations in the U.S., Canada, Ireland, the United Kingdom, India 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).
| Years ended December 31, |  |
| 2021 |  | 2020 |  | 2019 |  |  |  |
Revenues: |  |  |  |  |  |  |  |  |
United States | $ | 1,187,207 |  |  | $ | 958,833 |  |  | $ | 843,136 |  |  |  |  |
Canada | 33,227 |  |  | 29,770 |  |  | 30,327 |  |  |  |  |
Ireland | 37,906 |  |  | 32,403 |  |  | 48,729 |  |  |  |  |
All other countries | 158,382 |  |  | 137,823 |  |  | 128,272 |  |  |  |  |
All foreign countries | 229,515 |  |  | 199,996 |  |  | 207,328 |  |  |  |  |
Total | $ | 1,416,722 |  |  | $ | 1,158,829 |  |  | $ | 1,050,464 |  |  |  |  |
| December 31, 2021 |  | December 31, 2020
Long-lived assets: |  |  |
United States | $ | 726,128 |  |  | $ | 865,779 |
All other countries | 63,423 |  |  | 42,738 |
Total | $ | 789,551 |  |  | $ | 908,517 |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration