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 and Other Business Dispositions, 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 nine months ended September 30, 2017 and 2016 (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
North America
Local - Third-party and other	$	194,090	$	176,223	$	602,169	$	552,515
Goods:
Third-party	4,323		1,964		10,139		6,318
Direct	197,501		283,855		666,093		878,629
Travel - Third-party	18,300		21,239		61,082		63,554
Total North America revenue ⁽¹⁾	$	414,214	$	483,281	$	1,339,483	$	1,501,016

International
Local - Third-party and other	$	71,574	$	64,282	$	201,257	$	201,145
Goods:
Third-party	4,370		6,577		13,638		26,867
Direct	134,507		118,891		384,734		342,107
Travel - Third-party	9,801		13,524		31,599		37,615
Total International revenue ⁽¹⁾	$	220,252	$	203,274	$	631,228	$	607,734

(1)

North America includes revenue from the United States of $410.5 million and $476.3 million for the three months ended September 30, 2017 and 2016, respectively, and $1,317.9 million and $1,477.7 million for the nine months ended September 30, 2017 and 2016, respectively. International includes revenue from the United Kingdom of $82.2 million and $73.5 million for the three months ended September 30, 2017 and 2016, respectively, and $222.1 million and $225.9 million for the nine months ended September 30, 2017 and 2016, respectively. There were no other individual countries that represented more than 10% of consolidated total revenue for the three and nine months ended September 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. Beginning in the second quarter of 2017, 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 nine months ended September 30, 2017 and 2016 (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
North America
Local - Third-party and other	$	162,914	$	152,873	$	511,865	$	475,703
Goods:
Third-party	3,205		1,509		7,719		5,201
Direct	27,729		30,022		96,141		104,571
Travel - Third-party	14,060		17,257		46,980		49,303
Total North America gross profit	$	207,908	$	201,661	$	662,705	$	634,778

International
Local - Third-party and other	$	67,860	$	59,257	$	189,357	$	186,448
Goods:
Third-party	3,639		5,698		11,800		23,249
Direct	21,096		14,274		54,127		50,168
Travel - Third-party	8,922		12,378		28,954		34,104
Total International gross profit	$	101,517	$	91,607	$	284,238	$	293,969

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



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Operating income (loss) ^{(1) (2) (3)}:
North America	$	(6,995	)	$	(24,470	)	$	(33,811	)	$	(97,688	)
International	5,782			(370		)	13,520			(12,053		)
Total operating income (loss)	$	(1,213	)	$	(24,840	)	$	(20,291	)	$	(109,741	)


(1)	Includes stock-based compensation of $16.9 million and $24.8 million for North America and $1.4 million and $0.7 million for International for the three months ended September 30, 2017 and 2016, respectively, and $55.2 million and $81.2 million for North America and $4.1 million and $5.8 million for International for the nine months ended September 30, 2017 and 2016, respectively.


(2)	Includes acquisition-related (benefit) expense, net of $4.3 million for North America for the nine months ended September 30, 2016.

(3)

Includes restructuring charges of $7.0 million (which includes $0.8 million of stock-based compensation) and $1.0 million for North America and $4.5 million and $0.2 million for International for the three months ended September 30, 2017 and 2016, respectively, and $11.9 million (which includes $0.8 million of stock-based compensation) and $9.4 million (which includes $2.6 million of stock-based compensation) for North America and $6.9 million and $19.0 million (which includes $2.1 million of stock-based compensation) for International for the nine months ended September 30, 2017 and 2016, respectively.

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



	September 30, 2017		December 31, 2016
North America ⁽¹⁾	$	877,353	$	1,122,261
International ⁽¹⁾	550,743		563,864
Assets of discontinued operations	—		75,252
Consolidated total assets	$	1,428,096	$	1,761,377

(1)

North America contains assets from the United States of $854.1 million and $1,057.6 million as of September 30, 2017 and December 31, 2016, respectively. International contains assets from Ireland of $152.6 million and $203.2 million as of September 30, 2017 and December 31, 2016, respectively. There were no other individual countries that represented more than 10% of consolidated total assets as of September 30, 2017 and December 31, 2016.