Segment Information | SEGMENT INFORMATION The Company organizes its operations into three segments: North America, EMEA and Rest of World. Segment operating results reflect earnings before stock-based compensation, acquisition-related expense (benefit), net, other expense, net and provision for income taxes. Segment information reported in the tables below represents the operating segments of the Company organized in a manner consistent with which separate information is available and for which segment results are evaluated regularly by the Company's chief operating decision-maker in assessing performance and allocating resources. Revenue and profit or loss information by reportable segment reconciled to consolidated net loss for the three and six months ended June 30, 2015 and 2014 were as follows (in thousands): . Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 North America Revenue (1) $ 481,282 $ 423,931 $ 961,164 $ 854,993 Segment cost of revenue and operating expenses (2) 454,413 409,386 909,629 829,063 Segment operating income (2) 26,869 14,545 51,535 25,930 EMEA Revenue (1) 204,047 227,690 420,267 458,583 Segment cost of revenue and operating expenses (2) 194,378 199,981 390,946 411,951 Segment operating income (2) 9,669 27,709 29,321 46,632 Rest of World Revenue 53,066 64,590 107,320 131,050 Segment cost of revenue and operating expenses (2) 59,858 74,133 118,260 152,569 Segment operating loss (2) (6,792 ) (9,543 ) (10,940 ) (21,519 ) Consolidated Revenue 738,395 716,211 1,488,751 1,444,626 Segment cost of revenue and operating expenses (2) 708,649 683,500 1,418,835 1,393,583 Segment operating income (2) 29,746 32,711 69,916 51,043 Stock-based compensation (3) 38,467 29,738 73,611 52,649 Acquisition-related expense, net 505 597 236 2,382 (Loss) income from operations (9,226 ) 2,376 (3,931 ) (3,988 ) Other income (expense), net 2,941 (1,023 ) (16,986 ) (1,863 ) (Loss) income from continuing operations before provision for income taxes (6,285 ) 1,353 (20,917 ) (5,851 ) Provision for income taxes 8,982 12,045 11,089 26,615 Loss from continuing operations (15,267 ) (10,692 ) (32,006 ) (32,466 ) Income (loss) from discontinued operations, net of tax 127,179 (10,230 ) 133,463 (23,819 ) Net income (loss) $ 111,912 $ (20,922 ) $ 101,457 $ (56,285 ) (1) North America includes revenue from the United States of $474.5 million and $413.2 million for the three months ended June 30, 2015 and 2014 , respectively, and $947.6 million and $833.1 million for the six months ended June 30, 2015 and 2014 , respectively. EMEA includes revenue from Switzerland of $113.7 million and $102.4 million for the three months ended June 30, 2015 and 2014 , respectively, and $231.2 million and $194.3 million for the six months ended June 30, 2015 and 2014 , 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, 2015 and 2014 . (2) 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 table below 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, 2015 and 2014 (in thousands): (3) Includes stock-based compensation classified within cost of revenue, marketing expense, and selling, general and administrative expense. Other income (expense), net, includes $0.02 million of additional stock-based compensation for the three and six months ended June 30, 2015 . Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Stock-based compensation Acquisition-related Stock-based compensation Acquisition-related Stock-based compensation Acquisition-related Stock-based compensation Acquisition-related North America $ 34,031 $ 505 $ 26,206 $ 597 $ 65,283 $ 236 $ 45,686 $ 2,238 EMEA 2,793 — 2,227 — 5,440 — 4,500 144 Rest of World 1,661 — 1,305 — 2,906 — 2,463 — Consolidated $ 38,485 $ 505 $ 29,738 $ 597 $ 73,629 $ 236 $ 52,649 $ 2,382 Acquisition-related expense (benefit), net for the North America segment includes external transaction costs and gains and losses relating to contingent consideration obligations incurred by U.S. legal entities relating to purchases of businesses that became part of the EMEA and Rest of World segments, which is consistent with the attribution used for internal reporting purposes. The following table summarizes the Company's total assets by reportable segment as of June 30, 2015 and December 31, 2014 (in thousands): June 30, 2015 December 31, 2014 North America (1) $ 1,246,303 $ 1,150,417 EMEA 515,935 552,486 Rest of World 258,588 138,144 Assets held for sale (1) — 386,550 Consolidated total assets $ 2,020,826 $ 2,227,597 (1) North America contains assets from the United States of $1,213.7 million and $1,120.4 million as of June 30, 2015 and December 31, 2014 , respectively. Assets held for sale contains assets from the Republic of Korea of $386.6 million as of December 31, 2014 . There were no other individual countries that represented more than 10% of consolidated total assets as of June 30, 2015 and December 31, 2014 . Category Information The Company offers goods and services through its online local marketplaces in three primary categories: Local Deals ("Local"), Groupon Goods ("Goods") and Groupon Getaways ("Travel"). The Company also earns advertising revenue, payment processing revenue, point of sale revenue and commission revenue. Revenue and gross profit from these 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 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, 2015 and 2014 (in thousands): North America EMEA Rest of World Consolidated Three Months Ended Three Months Ended Three Months Ended Three Months Ended 2015 2014 2015 2014 2015 2014 2015 2014 Local (1) : Third party and other $ 172,461 $ 164,500 $ 75,543 $ 96,485 $ 28,499 $ 37,018 $ 276,503 $ 298,003 Goods: Third party 1,671 1,399 9,702 16,845 11,549 16,153 22,922 34,397 Direct 285,192 240,227 105,702 98,568 6,655 4,912 397,549 343,707 Total 286,863 241,626 115,404 115,413 18,204 21,065 420,471 378,104 Travel: Third party 21,958 17,805 13,100 15,792 6,363 6,507 41,421 40,104 Total revenue $ 481,282 $ 423,931 $ 204,047 $ 227,690 $ 53,066 $ 64,590 $ 738,395 $ 716,211 (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 six months ended June 30, 2015 and 2014 (in thousands): North America EMEA Rest of World Consolidated Six Months Ended Six Months Ended Six Months Ended Six Months Ended 2015 2014 2015 2014 2015 2014 2015 2014 Local (1) : Third party and other $ 353,325 $ 341,747 $ 158,079 $ 205,605 $ 58,780 $ 75,950 $ 570,184 $ 623,302 Goods: Third party 2,319 2,720 21,680 34,320 24,162 31,596 48,161 68,636 Direct 563,573 476,341 212,691 187,982 11,520 10,097 787,784 674,420 Total 565,892 479,061 234,371 222,302 35,682 41,693 835,945 743,056 Travel: Third party 41,947 34,185 27,817 30,676 12,858 13,407 82,622 78,268 Total revenue $ 961,164 $ 854,993 $ 420,267 $ 458,583 $ 107,320 $ 131,050 $ 1,488,751 $ 1,444,626 (1) Includes revenue 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 three months ended June 30, 2015 and 2014 (in thousands): North America EMEA Rest of World Consolidated Three Months Ended Three Months Ended Three Months Ended Three Months Ended 2015 2014 2015 2014 2015 2014 2015 2014 Local (1) : Third party and other $ 147,574 $ 142,674 $ 70,270 $ 90,373 $ 24,567 $ 31,997 $ 242,411 $ 265,044 Goods: Third party 1,408 1,128 7,779 14,990 6,367 8,398 15,554 24,516 Direct 29,190 21,833 14,099 20,442 417 388 43,706 42,663 Total 30,598 22,961 21,878 35,432 6,784 8,786 59,260 67,179 Travel: Third party 18,385 14,365 11,939 14,894 5,012 4,928 35,336 34,187 Total gross profit $ 196,557 $ 180,000 $ 104,087 $ 140,699 $ 36,363 $ 45,711 $ 337,007 $ 366,410 (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, 2015 and 2014 (in thousands): North America EMEA Rest of World Consolidated Six Months Ended Six Months Ended Six Months Ended Six Months Ended 2015 2014 2015 2014 2015 2014 2015 2014 Local (1) : Third party and other $ 302,350 $ 295,296 $ 147,626 $ 190,439 $ 50,728 $ 63,795 $ 500,704 $ 549,530 Goods: Third party 1,842 2,288 17,972 30,712 12,774 17,174 32,588 50,174 Direct 52,679 33,277 29,387 32,022 622 (1,024 ) 82,688 64,275 Total 54,521 35,565 47,359 62,734 13,396 16,150 115,276 114,449 Travel: Third party 34,176 28,807 24,339 28,563 9,918 10,573 68,433 67,943 Total gross profit $ 391,047 $ 359,668 $ 219,324 $ 281,736 $ 74,042 $ 90,518 $ 684,413 $ 731,922 (1) Includes gross profit from deals with local and national merchants and through local events. |