Segment Information

6 Months Ended

Jun. 30, 2017

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

The segment information reported in the tables below reflects the operating results that are regularly reviewed by the Company's chief operating decision maker to assess performance and make resource allocation decisions. The Company previously organized its operations into three operating segments: North America, EMEA and Rest of World. As a result of the dispositions discussed in Note 2, Discontinued Operations, which represented a substantial majority of the Company's international operations outside of EMEA and resulted in changes to the Company's internal reporting and leadership structure, the Company updated its segments in the first quarter of 2017 to report two operating segments: North America and International. The Company's operating segments continue to be the same as its reportable segments. In addition, the Company has changed its measure of segment profitability in the first quarter of 2017. Historically, segment operating results reflected operating income (loss) excluding stock-based compensation and acquisition-related expense (benefit), net. In connection with the internal reporting changes in the first quarter of 2017, the measure of segment profitability has been changed to operating income (loss), unadjusted. Prior period segment information has been retrospectively adjusted to reflect those changes.

The Company offers goods and services through its online local commerce marketplaces in three primary categories: Local, Goods and Travel. The Company also earns advertising revenue and commission revenue generated when customers make purchases with retailers using digital coupons accessed through the Company's websites and mobile applications. Revenue and gross profit from those other sources, which are primarily generated through the Company's relationships with local and national merchants, are included within the Local category in the tables below.

The following table summarizes revenue by reportable segment for the three and six months endedJune 30, 2017 and 2016 (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
North America
Local - Third-party and other	$	207,534	$	184,139	$	408,079	$	376,292
Goods:
Third-party	4,112		2,364		5,816		4,354
Direct	217,946		309,018		468,592		594,774
Travel - Third-party	22,320		21,401		42,782		42,315
Total North America revenue (1)	$	451,912	$	516,922	$	925,269	$	1,017,735
International
Local - Third-party and other	$	66,108	$	67,956	$	129,683	$	136,863
Goods:
Third-party	4,984		7,076		9,268		20,290
Direct	128,819		120,166		250,227		223,216
Travel - Third-party	10,796		11,640		21,798		24,091
Total International revenue (1)	$	210,707	$	206,838	$	410,976	$	404,460

(1) North America includes revenue from the United States of $442.7 million and $508.8 million for the three months ended June 30, 2017 and 2016, respectively, and $907.4 million and $1,001.4 million for the six months ended June 30, 2017 and 2016, respectively. International includes revenue from the United Kingdom of $74.4 million and $78.4 million for the three months ended June 30, 2017 and 2016, respectively, and $139.9 million and $152.4 million for the six months ended June 30, 2017 and 2016, respectively. There were no other individual countries that represented more than 10% of consolidated total revenue for the three and six months endedJune 30, 2017 and 2016. In prior periods, revenue was attributed to individual countries based on the domicile of the legal entities within the Company's consolidated group that undertook those transactions. The Company updated its attribution of revenue by country in the current period to be based on the location of the customer. Prior period revenue amounts by country have been retrospectively adjusted to reflect that change in attribution.

The following table summarizes gross profit by reportable segment for the three and six months endedJune 30, 2017 and 2016 (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
North America
Local - Third-party and other	$	179,609	$	158,812	$	348,951	$	322,830
Goods:
Third-party	3,207		2,019		4,514		3,692
Direct	33,289		40,009		68,412		74,549
Travel - Third-party	17,755		16,334		32,920		32,046
Total North America gross profit	$	233,860	$	217,174	$	454,797	$	433,117
International
Local - Third-party and other	$	62,303	$	62,970	$	121,497	$	127,191
Goods:
Third-party	4,506		5,848		8,161		17,551
Direct	17,402		18,901		33,031		35,894
Travel - Third-party	9,996		10,484		20,032		21,726
Total International gross profit	$	94,207	$	98,203	$	182,721	$	202,362

The following table summarizes operating income by reportable segment for the three and six months endedJune 30, 2017 and 2016 (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Operating income (loss) (1) (2) (3):
North America	$	(12,033	)	$	(31,284	)	$	(26,816	)	$	(73,218	)
International	$	4,635		(8,469		)	$	7,738		(11,683		)
Total operating income (loss)	$	(7,398	)	$	(39,753	)	$	(19,078	)	$	(84,901	)

(1) Includes stock-based compensation of $20.0 million and $31.8 million for North America and $1.3 million and $4.9 million for International for the three months ended June 30, 2017 and 2016, respectively, and $38.3 million and $58.9 million for North America and $2.7 million and $7.7 million for International for the six months ended June 30, 2017 and 2016, respectively.

(2) Includes acquisition-related (benefit) expense, net of $0.8 million and $4.3 million for North America for the three and six months ended June 30, 2016, respectively.

(3) Includes restructuring charges of $3.0 million and $2.8 million for North America and $1.6 million and $12.9 million (which includes $2.2 million of stock-based compensation) for International for the three months ended June 30, 2017 and 2016, respectively, and $4.9 million and $8.4 million (which includes $2.6 million of stock-based compensation) for North America and $2.4 million and $18.8 million (which includes $2.1 million of stock-based compensation) for International for the six months ended June 30, 2017 and 2016, respectively.

The following table summarizes the Company's total assets by reportable segment as of June 30, 2017 and December 31, 2016 (in thousands):

	June 30, 2017		December 31, 2016
North America (1)	$	896,077	$	1,122,261
International (1)	531,360		563,864
Assets of discontinued operations	—		75,252
Consolidated total assets	$	1,427,437	$	1,761,377

(1) North America contains assets from the United States of $821.3 million and $1,057.6 million as of June 30, 2017 and December 31, 2016, respectively. International contains assets from Ireland of $143.9 million and $203.2 million as of June 30, 2017 and December 31, 2016, respectively. There were no other individual countries that represented more than 10% of consolidated total assets as of June 30, 2017 and December 31, 2016.