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SEGMENTS (Tables)
12 Months Ended
Dec. 31, 2013
Segment Information

The following tables present summarized information by segment (in thousands):

 

     Years Ended December 31,  
     2011      2012      2013  

Revenue by segment:

        

Americas

   $ 3,302,989       $ 3,461,633       $ 3,481,502   

EMEA

     629,383         472,061         385,186   

Asia Pacific

     1,051,827         1,052,872         813,692   
  

 

 

    

 

 

    

 

 

 

Total revenue

     4,984,199         4,986,566         4,680,380   

TAC by segment:

        

Americas

     160,110         182,511         158,974   

EMEA

     221,916         114,230         42,915   

Asia Pacific

     221,345         222,165         52,553   
  

 

 

    

 

 

    

 

 

 

Total TAC

     603,371         518,906         254,442   

Revenue ex-TAC by segment:

        

Americas

     3,142,879         3,279,122         3,322,528   

EMEA

     407,467         357,831         342,271   

Asia Pacific

     830,482         830,707         761,139   
  

 

 

    

 

 

    

 

 

 

Total revenue ex-TAC

     4,380,828         4,467,660         4,425,938   

Direct costs by segment(1):

        

Americas

     696,103         733,316         747,684   

EMEA

     165,750         161,990         165,719   

Asia Pacific

     225,417         224,114         197,619   

Global operating costs(2)(3)

     1,638,975         1,672,070         1,830,621   

Depreciation and amortization

     625,864         649,267         628,778   

Goodwill impairment charge

     —          —          63,555   

Gains on sales of patents

     —          —          (79,950 ) 

Stock-based compensation expense

     203,958         224,365         278,220   

Restructuring charges, net

     24,420         236,170         3,766   
  

 

 

    

 

 

    

 

 

 

Income from operations

   $ 800,341       $ 566,368       $ 589,926   
  

 

 

    

 

 

    

 

 

 

 

(1) 

Direct costs for each segment include cost of revenue-other, as well as other operating expenses that are directly attributable to the segment such as employee compensation expense (excluding stock-based compensation expense), local sales and marketing expenses, and facilities expenses. Beginning in 2012, marketing and customer experience costs are managed locally and included as direct costs for each segment. Prior period amounts have been revised to conform to the current presentation.

 

(2) 

Global operating costs include product development, service engineering and operations, general and administrative, and other corporate expenses that are managed on a global basis and that are not directly attributable to any particular segment. Prior to 2012, marketing and customer experience costs were managed on a global basis and included as global operating costs. Prior period amounts have been revised to conform to the current presentation.

 

(3) 

The net cost reimbursements from Microsoft pursuant to the Search Agreement are primarily included in global operating costs.

 

 
Capital Expenditures by Segment

     Years Ended December 31,  
     2011      2012      2013  

Capital expenditures, net:

        

Americas

   $ 437,804       $ 437,978       $ 309,215   

EMEA

     49,371         27,074         11,435   

Asia Pacific

     106,119         40,455         17,481   
  

 

 

    

 

 

    

 

 

 

Total capital expenditures, net

   $ 593,294       $ 505,507       $ 338,131   
  

 

 

    

 

 

    

 

 

 

 

Property and Equipment Net

     December 31,  
     2012      2013  

Property and equipment, net:

     

Americas:

     

U.S.

   $ 1,483,225       $ 1,346,889   

Other.

     1,869         1,183   
  

 

 

    

 

 

 

Total Americas

   $ 1,485,094       $ 1,348,072   
  

 

 

    

 

 

 

EMEA

     59,416         44,976   

Asia Pacific

     141,335         95,470   
  

 

 

    

 

 

 

Total property and equipment, net

   $ 1,685,845       $ 1,488,518   
  

 

 

    

 

 

 
Enterprise Wide Disclosures Revenues for Groups of Similar Services
     Years Ended December 31,  
     2011      2012      2013  

Display

   $ 2,160,309       $ 2,142,818       $ 1,949,830   

Search

     1,853,110         1,885,860         1,741,791   

Other

     970,780         957,888         988,759   
  

 

 

    

 

 

    

 

 

 

Total revenue

   $ 4,984,199       $ 4,986,566       $ 4,680,380   
  

 

 

    

 

 

    

 

 

 

 

     Years Ended December 31,  
     2011      2012      2013  

Revenue:

        

U.S.

   $ 3,112,998       $ 3,294,206       $ 3,317,794   

International

     1,871,201         1,692,360         1,362,586   
  

 

 

    

 

 

    

 

 

 

Total revenue

   $ 4,984,199       $ 4,986,566       $ 4,680,380