Segment and Geographical Information | Segment and Geographical Information We consider operating segments to be components of the Company in which separate financial information is available that is evaluated regularly by our chief operating decision maker in deciding how to allocate resources and in assessing performance. Our chief operating decision maker is the CEO. Prior to the first quarter of Fiscal 2015, the CEO reviewed financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. Beginning with the first quarter of Fiscal 2015, the CEO began to review the financial information of Citrus Lane separately from the Company’s other businesses. Accordingly, effective for the first quarter of Fiscal 2015, we have determined that we have two operating and reportable segments, CRCM Businesses, Excluding Citrus Lane and Citrus Lane. The descriptions of the resulting reportable segments are included below and all financial information presented herein related to the resulting reportable segments has been presented retrospectively as though these segments existed as of the earliest period presented. CRCM Businesses, Excluding Citrus Lane CRCM Businesses, Excluding Citrus Lane is comprised primarily our U.S. Consumer Business. The two components of our U.S. Consumer Business are U.S. matching solutions, which provides families access to search for, qualify, vet, connect with and ultimately select caregivers; and payments solutions, which enables families to manage their household payroll and tax matters with Care.com HomePay. This segment also includes our employer offering, which provides corporate employers access to certain of our products and services that can be offered as an employee benefit; and our international offerings. This reportable segment represents an aggregation of operating units within the segment. Citrus Lane Citrus Lane represents sales of merchandise through the sales of curated third-party products designed for families. The majority of revenue is generated through the sale of subscription discovery boxes, whereby customers prepay to receive monthly shipments of a box containing children’s merchandise. We also offer individual products on an a-la-carte basis. We measure and evaluate our reportable segments based on segment revenues and segment adjusted EBITDA, which is defined as net loss, plus: (1) federal, state and franchise taxes; (2) other expense, net; (3) depreciation and amortization; (4) stock based compensation; (5) accretion of contingent consideration; (6) merger and acquisition related costs; and (7) other unusual or non-cash significant adjustments. The accounting policies of the operating segments are the same as those described in the summary of significant accounting policies (refer to Note 2 of our Annual Report on Form 10-K for the fiscal year ended December 27, 2014). We fully allocate depreciation expense to our two reportable segments. We do not report our assets or capital expenditures by segment as it would not be meaningful. Segment information for the three and nine months ended September 26, 2015 and September 27, 2014 was as follows (in thousands): Three Months Ended Three Months Ended September 26, 2015 September 27, 2014 CRCM Businesses, Excluding Citrus Lane Citrus Lane Total CRCM Businesses, Excluding Citrus Lane Citrus Lane Total Revenue $ 36,179 $ 2,714 $ 38,893 $ 29,604 $ 2,450 $ 32,054 Adjusted EBITDA (3,096 ) (775 ) (3,871 ) (7,077 ) (1,608 ) (8,685 ) Depreciation and amortization (1,228 ) (67 ) (1,295 ) (1,292 ) (102 ) (1,394 ) Stock-based compensation (1,426 ) (158 ) (1,584 ) (971 ) (1,776 ) (2,747 ) Impairment of goodwill and intangible assets — (9,741 ) (9,741 ) — — — Other charges (84 ) (244 ) (328 ) (1,805 ) (356 ) (2,161 ) Operating loss $ (5,834 ) $ (10,985 ) (16,819 ) $ (11,145 ) $ (3,842 ) (14,987 ) Other expense, net (272 ) (644 ) Loss before income taxes (17,091 ) (15,631 ) Provision for (Benefit from) income taxes 259 (1,178 ) Net Loss $ (17,350 ) $ (14,453 ) Nine Months Ended Nine Months Ended September 26, 2015 September 27, 2014 CRCM Businesses, Excluding Citrus Lane Citrus Lane Total CRCM Businesses, Excluding Citrus Lane Citrus Lane Total Revenue $ 101,131 $ 8,535 $ 109,666 $ 80,711 $ 2,450 $ 83,161 Adjusted EBITDA (11,364 ) (3,234 ) (14,598 ) (23,280 ) (1,608 ) (24,888 ) Depreciation and amortization (4,066 ) (207 ) (4,273 ) (3,812 ) (102 ) (3,914 ) Stock-based compensation (3,721 ) (458 ) (4,179 ) (3,053 ) (1,776 ) (4,829 ) Impairment of goodwill and intangible assets — (9,741 ) (9,741 ) — — — Other charges (275 ) (1,391 ) (1,666 ) (2,946 ) (356 ) (3,302 ) Operating loss $ (19,426 ) $ (15,031 ) (34,457 ) $ (33,091 ) $ (3,842 ) (36,933 ) Other expense, net (976 ) (3,323 ) Loss before income taxes (35,433 ) (40,256 ) Provision for (Benefit from) income taxes 1,164 (384 ) Net Loss $ (36,597 ) $ (39,872 ) Total assets for the CRCM Businesses, Excluding Citrus Lane and Citrus Lane as of September 26, 2015 were $142.3 million and $3.9 million , respectively. Total assets for the CRCM Businesses, Excluding Citrus Lane and Citrus Lane as of December 27, 2014 were $163.1 million and $10.0 million , respectively. No country outside of the United States provided greater than 10% of our total revenue. Revenue is classified by the major geographic areas in which our customers are located. The following table summarizes total revenue generated by our geographic locations (dollars in thousands): Three Months Ended Nine Months Ended September 26, September 27, September 26, September 27, United States $ 36,054 $ 29,450 $ 101,370 $ 76,223 International 2,839 2,604 8,296 6,938 Total revenue $ 38,893 $ 32,054 $ 109,666 $ 83,161 Our long-lived assets are primarily located in the United States and are not allocated to any specific region. Therefore, geographic information is presented only for total revenue. |