(9) Segment Information

Expedia Holdings identifies its reportable segments as (A) those consolidated companies that represent 10% or more of its consolidated annual revenue, annual Adjusted OIBDA or total assets and (B) those equity method affiliates whose share of earnings or losses represent 10% or more of Expedia Holding's annual pre-tax earnings (losses).

Expedia Holdings evaluates performance and makes decisions about allocating resources to its operating segments based on financial measures such as revenue and Adjusted OIBDA. In addition, Expedia Holdings reviews nonfinancial measures such as unique visitors, customer acquisition and conversion rates.

Expedia Holdings defines Adjusted OIBDA as revenue less cost of sales, operating expenses, and selling, general and administrative expenses (excluding stock-based compensation). Expedia Holdings believes this measure is an important indicator of the operational strength and performance of its businesses, including each business's ability to service debt and fund capital expenditures. In addition, this measure allows management to view operating results and perform analytical comparisons and benchmarking between businesses and identify strategies to improve performance. This measure of performance excludes depreciation and amortization, stock-based compensation, separately reported litigation settlements and restructuring and impairment charges that are included in the measurement of operating income pursuant to GAAP. Accordingly, Adjusted OIBDA should be considered in addition to, but not as a substitute for, operating income (loss), net earnings (loss), cash flow provided by operating activities and other measures of financial performance prepared in accordance with GAAP. Expedia Holdings generally accounts for intersegment sales and transfers as if the sales or transfers were to third parties, that is, at current prices.

For the nine months ended September 30, 2017, Expedia Holdings has identified Expedia as its reportable segment. Expedia is a consolidated subsidiary of the Company that provides travel and services to leisure and corporate travelers in the United States and abroad as well as various media and advertising offerings to travel and non-travel advertisers. Expedia's revenue primarily consists of sales of travel services. Prior to obtaining a controlling interest in Expedia in connection with the Expedia Holdings Split-Off, the Company identified Expedia as a reportable segment, even though it was previously accounted for as an equity method investment. Beginning on the date of the Expedia Holdings Split-Off, the Company only includes the results of Expedia, as consolidated, in the segment information reported below.

Beginning in 2017, Vitalize is no longer a reportable segment, as it no longer meets the reportable segment thresholds due to the overall size of the business in comparison to the consolidated results of Expedia Holdings. Accordingly, the results of Vitalize are included in the Corporate and other segment for all periods presented.

Expedia Holdings' operating segments are strategic business units that offer different products and services. They are managed separately because each segment requires different technologies, distribution channels and marketing strategies. The accounting policies of the segments that are also consolidated companies are the same as those described in the Company's Summary of Significant Accounting Policies in the Annual Report on Form 10-K for the year ended December 31, 2016.

Performance Measures


	Three months ended September 30,
	2017			2016
	Revenue from			Revenue from
	external		Adjusted	external	Adjusted
	customers		OIBDA	customers	OIBDA
	amounts in millions
Expedia	$	2,963	715	NA	NA
Corporate and other		66	(2)	96	7
	$	3,029	713	96	7


	Nine months ended September 30,
	2017			2016
	Revenue from			Revenue from
	external		Adjusted	external	Adjusted
	customers		OIBDA	customers	OIBDA
	amounts in millions
Expedia	$	7,675	1,241	NA	NA
Corporate and Other		230	—	325	22
	$	7,905	1,241	325	22

Other Information


	September 30, 2017
	Total		Capital
	assets		expenditures
	amounts in millions
Expedia	$	36,678	526
Corporate and other		274	6
	$	36,952	532

The following table provides a reconciliation of segment Adjusted OIBDA to Operating income (loss) and Earnings (loss) before income taxes:


	Three months ended			Nine months ended
	September 30,			September 30,
	2017		2016	2017	2016
	amounts in millions
Consolidated segment Adjusted OIBDA	$	713	7	1,241	22
Legal reserves, occupancy tax and other		1	—	(23)	—
Restructuring and related reorganization charges		(4)	—	(16)	—
Stock-based compensation		25	(1)	(92)	—
Depreciation and amortization		(583)	(4)	(1,669)	(14)
Operating income (loss)		152	2	(559)	8
Interest expense		(29)	(1)	(88)	(1)
Share of earnings (loss) of Expedia		—	40	—	18
Other, net		(23)	2	(71)	(2)
Earnings (loss) before income taxes	$	100	43	(718)	23