Industry Segment and Geographic Information ASC 280, Segment Reporting establishes reporting standards for an enterprise's business segments and related disclosures about its products, services, geographic areas and major customers. Under ASC 280, the method for determining what information to report is based upon the way management organizes the operating segments within the Company for making operating decisions and assessing financial performance. Our chief operating decision-maker reviews revenue and gross margin information for each of our reportable segments, but does not review operating expenses on a segment by segment basis. In addition, with the exception of goodwill and intangible assets, we do not identify or allocate our assets by the reportable segments. Business For our Business customers, we provide innovative, cloud-based Applications, comprised of integrated voice, text, video, data, collaboration, and mobile applications over our flexible, scalable SIP based VoIP network along with contact center solutions. We also offer API solutions designed to enhance the way businesses communicate with their customers by embedding communications into apps, websites and business processes. In combination, our products and services permit our business customers to communicate with their customers and employees through any cloud-connected device, in any place, at any time without the often costly investment required with on-site equipment. Together we have a robust set of product families tailored to serve the full range of the business value chain, from the SMB market through mid-market and enterprise markets. We provide customers with multiple deployment options, designed to provide the reliability and quality of service they demand. We provide customers the ability to integrate our cloud communications platform with many cloud-based productivity and CRM solutions, including Googles G Suite, Zendesk, Salesforces Sales Cloud, Oracle, Clio, and other CRM solutions. In combination, our products and services permit our business customers to communicate with their customers and employees through any cloud-connected device, in any place, at any time without the often costly investment required with on-site equipment. Consumer For our Consumer customers, we enable users to access and utilize our UCaaS services and features, via a single identity, either a number or user name, regardless of how they are connected to the Internet, including over 3G/4G, LTE, Cable, or DSL broadband networks. This technology enables us to offer our Consumer customers attractively priced voice and messaging services and other features around the world on a variety of devices. For our segments we categorize revenues as follows: Services revenues . Services revenues consists primarily of revenue attributable to our communication services for Consumer and SD-WAN, Applications and API Platform services for Business, Access and product revenues. Product revenues include equipment sold to customers, shipping and handling, professional services, and broadband access, as well as revenues associated with providing access services to Business customers. USF revenues. USF revenues represent fees passed on to customers to offset required contributions to the USF. For our segments we categorize cost of revenues as follows: Services cost of revenues. Services cost of revenues consists of costs associated with network operations and technical support personnel, communication origination, and termination services provided by third party carriers and excludes depreciation and amortization. Access and product cost of revenues . Product cost of revenues includes equipment sold to customers, shipping and handling, professional services, cost of certain products including equipment or services that we give customers as promotions, and broadband access, as well as costs associated with providing access services to Business customers. USF cost of revenues. USF cost of revenues represents contributions to the Federal USF and related fees. Information about our segment results for the three and six months ended June 30, 2020 were as follows: Three Months Ended Six Months Ended June 30, 2020 June 30, 2020 Business Consumer Total Business Consumer Total Revenues Service revenues $ 212,310 $ 75,045 $ 287,355 $ 407,959 $ 152,288 $ 560,247 Access and product revenues (1) 9,109 52 9,161 19,231 115 19,346 Service, access and product revenues excluding USF 221,419 75,097 296,516 427,190 152,403 579,593 USF revenues 4,830 9,187 14,017 9,312 19,085 28,397 Total revenues 226,249 84,284 310,533 436,502 171,488 607,990 Cost of revenues Service cost of revenues (2) 100,638 8,671 109,309 192,995 17,183 210,178 Access and product cost of revenues (1) 10,266 396 10,662 21,862 969 22,831 Service, access and product cost of revenues excluding USF 110,904 9,067 119,971 214,857 18,152 233,009 USF cost of revenues 4,830 9,187 14,017 9,312 19,085 28,397 Total cost of revenues 115,734 18,254 133,988 224,169 37,237 261,406 Segment gross margin Service margin 111,672 66,374 178,046 214,964 135,105 350,069 Access and product margin (1,157) (344) (1,501) (2,631) (854) (3,485) Gross margin excluding USF (Service, access and product margin) 110,515 66,030 176,545 212,333 134,251 346,584 Segment gross margin $ 110,515 $ 66,030 $ 176,545 $ 212,333 $ 134,251 $ 346,584 Segment gross margin % Service margin % 52.6 % 88.4 % 62.0 % 52.7 % 88.7 % 62.5 % Gross margin excluding USF (Service, access and product margin %) 49.9 % 87.9 % 59.5 % 49.7 % 88.1 % 59.8 % Segment gross margin % 48.8 % 78.3 % 56.9 % 48.6 % 78.3 % 57.0 % (1) Includes customer premise equipment, access, and shipping and handling. (2) Excludes depreciation and amortization of $9,891 and $1,257 for the three months ended June 30, 2020 and $19,679 and $2,625 for the six months ended June 30, 2020, respectively. Information about our segment results for the three and six months ended June 30, 2019 were as follows: Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 Business Consumer Total Business Consumer Total Revenues Service revenues $ 180,014 $ 87,244 $ 267,258 $ 339,359 $ 176,244 $ 515,603 Access and product revenues (1) 11,707 60 11,767 23,404 128 23,532 Service, access and product revenues excluding USF 191,721 87,304 279,025 362,763 176,372 539,135 USF revenues 8,299 10,260 18,559 16,854 21,136 37,990 Total revenues 200,020 97,564 297,584 379,617 197,508 577,125 Cost of revenues Service cost of revenues (2) 86,290 8,861 95,151 156,144 18,119 174,263 Access and product cost of revenues (1) 13,594 917 14,511 27,465 1,914 29,379 Service, access and product cost of revenues excluding USF 99,884 9,778 109,662 183,609 20,033 203,642 USF cost of revenues 8,299 10,260 18,559 16,854 21,136 37,990 Total cost of revenues 108,183 20,038 128,221 200,463 41,169 241,632 Segment gross margin Service margin 93,724 78,383 172,107 183,215 158,125 341,340 Access and product margin (1,887) (857) (2,744) (4,061) (1,786) (5,847) Gross margin excluding USF (Service, access and product margin) 91,837 77,526 169,363 179,154 156,339 335,493 Segment gross margin $ 91,837 $ 77,526 $ 169,363 $ 179,154 $ 156,339 $ 335,493 Segment gross margin % Service margin % 52.1 % 89.8 % 64.4 % 54.0 % 89.7 % 66.2 % Gross margin excluding USF (Service, access and product margin %) 47.9 % 88.8 % 60.7 % 49.4 % 88.6 % 62.2 % Segment gross margin % 45.9 % 79.5 % 56.9 % 47.2 % 79.2 % 58.1 % (1) Includes customer premise equipment, access, and shipping and handling. (2) Excludes depreciation and amortization of $7,978 and $1,166 for the three months ended June 30, 2019 and $16,192 and $2,370 for the six months ended June 30, 2019, respectively. A reconciliation of the total of the reportable segments' gross margin to consolidated income before income taxes is as follows: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Total reportable gross margin $ 176,545 $ 169,363 $ 346,584 $ 335,493 Sales and marketing 90,827 95,362 176,448 190,885 Engineering and development 19,784 16,891 38,987 33,417 General and administrative 42,820 36,615 83,702 72,074 Depreciation and amortization 20,692 20,662 41,177 41,876 Income (Loss) from operations 2,422 (167) 6,270 (2,759) Interest expense (9,321) (8,487) (17,403) (16,063) Other income (expense), net (38) (147) 191 (563) Loss before income tax benefit $ (6,937) $ (8,801) $ (10,942) $ (19,385) Information about our operations by geographic location is as follows: June 30, 2020 December 31, 2019 Long-lived assets: United States $ 635,124 $ 640,277 United Kingdom 272,051 299,660 Israel 1,515 1,609 $ 908,690 $ 941,546