Segment Information (Tables)

6 Months Ended

Jun. 30, 2016

Schedule of Segment Reporting Information, by Segment

Revenue and profit or loss information by reportable segment reconciled to consolidated net income (loss) for the three and six months ended June 30, 2016 and 2015 were as follows (in thousands):



	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
North America
Revenue ⁽¹⁾	$	516,922		$	481,282		$	1,017,735		$	961,164
Segment cost of revenue and operating expenses ^{(3) (4)}	515,434			454,413			1,027,695			909,629
Segment operating income (loss) ⁽³⁾	1,488			26,869			(9,960		)	51,535
EMEA
Revenue ⁽¹⁾	198,305			204,047			387,275			420,267
Segment cost of revenue and operating expenses ^{(3) (4)}	194,548			194,378			377,602			390,946
Segment operating income (loss) ⁽³⁾	3,757			9,669			9,673			29,321
Rest of World
Revenue	40,803			53,066			82,991			107,320
Segment cost of revenue and operating expenses ^{(3) (4)}	50,989			59,858			100,963			118,260
Segment operating income (loss) ⁽³⁾	(10,186		)	(6,792		)	(17,972		)	(10,940		)
Consolidated
Revenue	756,030			738,395			1,488,001			1,488,751
Segment cost of revenue and operating expenses ^{(3) (4)}	760,971			708,649			1,506,260			1,418,835
Segment operating income (loss) ⁽³⁾	(4,941		)	29,746			(18,259		)	69,916
Stock-based compensation ⁽²⁾	37,378			38,467			67,929			73,611
Acquisition-related expense (benefit), net	850			505			4,314			236
Income (loss) from operations	(43,169		)	(9,226		)	(90,502		)	(3,931		)
Other income (expense), net	(10,761		)	2,941			(7,275		)	(16,986		)
Income (loss) from continuing operations before provision (benefit) for income taxes	(53,930		)	(6,285		)	(97,777		)	(20,917		)
Provision (benefit) for income taxes	(2,199		)	8,982			(450		)	11,089
Income (loss) from continuing operations	(51,731		)	(15,267		)	(97,327		)	(32,006		)
Income (loss) from discontinued operations, net of tax	—			127,179			—			133,463
Net income (loss)	$	(51,731	)	$	111,912		$	(97,327	)	$	101,457

(1)

North America includes revenue from the United States of $508.8 million and $474.5 million for the three months ended June 30, 2016 and 2015, respectively, and $1,001.4 million and $947.6 million for the six months ended June 30, 2016 and 2015, respectively. EMEA includes revenue from Switzerland of $130.2 million and $113.7 million for the three months ended June 30, 2016 and 2015, respectively, and $243.5 million and $231.2 million for the six months ended June 30, 2016 and 2015, respectively. There were no other individual countries that represented more than 10% of consolidated total revenue for the three and six months ended June 30, 2016 and 2015.


(2)	Includes stock-based compensation classified within cost of revenue, marketing expense, selling, general and administrative expense and restructuring charges. Other income (expense), net, includes $0.2 million and $0.4 million of additional stock-based compensation for the three and six months ended June 30, 2016 and $0.02 million for the three and six months ended June 30, 2015.

(3)

Segment cost of revenue and operating expenses and segment operating income (loss) exclude stock-based compensation and acquisition-related (benefit) expense, net. This presentation corresponds to the measure of segment profit or loss that the Company's chief operating decision-maker uses in assessing segment performance and making resource allocation decisions. The following table summarizes the Company's stock-based compensation expense and acquisition-related expense (benefit), net by reportable segment for the three and six months ended June 30, 2016 and 2015 (in thousands):



	Three Months Ended June 30,								Six Months Ended June 30,
	2016				2015				2016				2015
	Stock-based compensation		Acquisition-related		Stock-based compensation		Acquisition-related		Stock-based compensation		Acquisition-related		Stock-based compensation		Acquisition-related
North America	$	31,920	$	850	$	34,031	$	505	$	58,943	$	4,314	$	65,283	$	236
EMEA	3,735		—		2,793		—		5,855		—		5,440		—
Rest of World	1,897		—		1,661		—		3,510		—		2,906		—
Consolidated	$	37,552	$	850	$	38,485	$	505	$	68,308	$	4,314	$	73,629	$	236

Stock Based Compensation and Acquisition Related by Segment



	Three Months Ended June 30,								Six Months Ended June 30,
	2016				2015				2016				2015
	Stock-based compensation		Acquisition-related		Stock-based compensation		Acquisition-related		Stock-based compensation		Acquisition-related		Stock-based compensation		Acquisition-related
North America	$	31,920	$	850	$	34,031	$	505	$	58,943	$	4,314	$	65,283	$	236
EMEA	3,735		—		2,793		—		5,855		—		5,440		—
Rest of World	1,897		—		1,661		—		3,510		—		2,906		—
Consolidated	$	37,552	$	850	$	38,485	$	505	$	68,308	$	4,314	$	73,629	$	236

(4)

Segment cost of revenue and operating expenses for the three months ended June 30, 2016 includes restructuring charges of $2.8 million in North America, $10.6 million in EMEA (which excludes $2.1 million of stock-based compensation) and $0.6 million in Rest of World (which excludes $0.02 million of stock-based compensation). Segment cost of revenue and operating expenses for the six months ended June 30, 2016 includes restructuring charges of $5.8 million in North America (which excludes $2.6 million of stock-based compensation), $14.0 million in EMEA (which excludes $2.1 million of stock-based compensation) and $3.9 million in Rest of World (which excludes $0.02 million of stock-based compensation). See Note 9, "Restructuring," for additional information.

Schedule of Segment Assets

The following table summarizes the Company's total assets by reportable segment as of June 30, 2016 and December 31, 2015 (in thousands):



	June 30, 2016		December 31, 2015
North America ⁽¹⁾	$	1,096,490	$	1,063,595
EMEA	440,991		508,353
Rest of World	213,961		224,316
Consolidated total assets	$	1,751,442	$	1,796,264


(1)	North America contains assets from the United States of $1,088.9 million and $1,018.2 million as of June 30, 2016 and December 31, 2015, respectively. There were no other individual countries that represented more than 10% of consolidated total assets as of June 30, 2016 and

Third Party and Other and Direct Revenue

The following table summarizes the Company's third party and other and direct revenue from continuing operations by category for its three reportable segments for the six months ended June 30, 2016 and 2015 (in thousands):



	North America				EMEA				Rest of World				Consolidated
	Six Months Ended June 30,				Six Months Ended June 30,				Six Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015		2016		2015		2016		2015
Local ⁽¹⁾:
Third party and other	$	376,292	$	353,325	$	122,502	$	158,079	$	44,543	$	58,780	$	543,337	$	570,184

Travel:
Third party	42,315		41,947		21,887		27,817		9,370		12,858		73,572		82,622
Total services	418,607		395,272		144,389		185,896		53,913		71,638		616,909		652,806

Goods:
Third party	4,354		2,319		16,003		21,680		15,431		24,162		35,788		48,161
Direct	594,774		563,573		226,883		212,691		13,647		11,520		835,304		787,784
Total	599,128		565,892		242,886		234,371		29,078		35,682		871,092		835,945

Total revenue	$	1,017,735	$	961,164	$	387,275	$	420,267	$	82,991	$	107,320	$	1,488,001	$	1,488,751


(1)	Includes revenue from deals with local and national merchants and through local events.

The following table summarizes the Company's third party and other and direct revenue from continuing operations by category for its three reportable segments for the three months ended June 30, 2016 and 2015 (in thousands):



	North America				EMEA				Rest of World				Consolidated
	Three Months Ended June 30,				Three Months Ended June 30,				Three Months Ended June 30,				Three Months Ended June 30,
	2016		2015		2016		2015		2016		2015		2016		2015
Local ⁽¹⁾:
Third party and other	$	184,139	$	172,461	$	60,616	$	75,543	$	22,461	$	28,499	$	267,216	$	276,503

Travel:
Third party	21,401		21,958		10,709		13,100		4,321		6,363		36,431		41,421
Total services	205,540		194,419		71,325		88,643		26,782		34,862		303,647		317,924

Goods:
Third party	2,364		1,671		5,317		9,702		6,801		11,549		14,482		22,922
Direct	309,018		285,192		121,663		105,702		7,220		6,655		437,901		397,549
Total	311,382		286,863		126,980		115,404		14,021		18,204		452,383		420,471

Total revenue	$	516,922	$	481,282	$	198,305	$	204,047	$	40,803	$	53,066	$	756,030	$	738,395


(1)	Includes revenue from deals with local and national merchants and through local events.

Gross Profit by Category

The following table summarizes the Company's gross profit from continuing operations by category for its three reportable segments for the three months ended June 30, 2016 and 2015 (in thousands):



	North America				EMEA				Rest of World				Consolidated
	Three Months Ended June 30,				Three Months Ended June 30,				Three Months Ended June 30,				Three Months Ended June 30,
	2016		2015		2016		2015		2016		2015		2016		2015
Local ⁽¹⁾:
Third party and other	$	158,812	$	147,574	$	56,849	$	70,270	$	18,739	$	24,567	$	234,400	$	242,411

Travel:
Third party	16,334		18,385		9,784		11,939		3,240		5,012		29,358		35,336
Total services	175,146		165,959		66,633		82,209		21,979		29,579		263,758		277,747

Goods:
Third party	2,019		1,408		4,426		7,779		4,126		6,367		10,571		15,554
Direct	40,009		29,190		19,099		14,099		151		417		59,259		43,706
Total	42,028		30,598		23,525		21,878		4,277		6,784		69,830		59,260

Total gross profit	$	217,174	$	196,557	$	90,158	$	104,087	$	26,256	$	36,363	$	333,588	$	337,007


(1)	Includes gross profit from deals with local and national merchants and through local events.

The following table summarizes the Company's gross profit from continuing operations by category for its three reportable segments for the six months ended June 30, 2016 and 2015 (in thousands):



	North America				EMEA				Rest of World				Consolidated
	Six Months Ended June 30,				Six Months Ended June 30,				Six Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015		2016		2015		2016		2015
Local ⁽¹⁾:
Third party and other	$	322,830	$	302,350	$	115,112	$	147,626	$	37,510	$	50,728	$	475,452	$	500,704

Travel:
Third party	32,046		34,176		19,999		24,339		7,237		9,918		59,282		68,433
Total services	354,876		336,526		135,111		171,965		44,747		60,646		534,734		569,137

Goods:
Third party	3,692		1,842		13,871		17,972		9,819		12,774		27,382		32,588
Direct	74,549		52,679		36,066		29,387		185		622		110,800		82,688
Total	78,241		54,521		49,937		47,359		10,004		13,396		138,182		115,276

Total gross profit	$	433,117	$	391,047	$	185,048	$	219,324	$	54,751	$	74,042	$	672,916	$	684,413


(1)	Includes gross profit from deals with local and national merchants and through local events.