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 income (expense), net and provision (benefit) 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 income (loss) for the three and six months ended June 30, 2016 and 2015 were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 North America Revenue (1) $ 516,922 $ 481,282 $ 1,017,735 $ 961,164 Segment cost of revenue and operating expenses (3) (4) 515,434 454,413 1,027,695 909,629 Segment operating income (loss) (3) 1,488 26,869 (9,960 ) 51,535 EMEA Revenue (1) 198,305 204,047 387,275 420,267 Segment cost of revenue and operating expenses (3) (4) 194,548 194,378 377,602 390,946 Segment operating income (loss) (3) 3,757 9,669 9,673 29,321 Rest of World Revenue 40,803 53,066 82,991 107,320 Segment cost of revenue and operating expenses (3) (4) 50,989 59,858 100,963 118,260 Segment operating income (loss) (3) (10,186 ) (6,792 ) (17,972 ) (10,940 ) Consolidated Revenue 756,030 738,395 1,488,001 1,488,751 Segment cost of revenue and operating expenses (3) (4) 760,971 708,649 1,506,260 1,418,835 Segment operating income (loss) (3) (4,941 ) 29,746 (18,259 ) 69,916 Stock-based compensation (2) 37,378 38,467 67,929 73,611 Acquisition-related expense (benefit), net 850 505 4,314 236 Income (loss) from operations (43,169 ) (9,226 ) (90,502 ) (3,931 ) Other income (expense), net (10,761 ) 2,941 (7,275 ) (16,986 ) Income (loss) from continuing operations before provision (benefit) for income taxes (53,930 ) (6,285 ) (97,777 ) (20,917 ) Provision (benefit) for income taxes (2,199 ) 8,982 (450 ) 11,089 Income (loss) from continuing operations (51,731 ) (15,267 ) (97,327 ) (32,006 ) Income (loss) from discontinued operations, net of tax — 127,179 — 133,463 Net income (loss) $ (51,731 ) $ 111,912 $ (97,327 ) $ 101,457 (1) North America includes revenue from the United States of $508.8 million and $474.5 million for the three months ended June 30, 2016 and 2015 , respectively, and $1,001.4 million and $947.6 million for the six months ended June 30, 2016 and 2015 , respectively. EMEA includes revenue from Switzerland of $130.2 million and $113.7 million for the three months ended June 30, 2016 and 2015 , respectively, and $243.5 million and $231.2 million for the six months ended June 30, 2016 and 2015 , 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, 2016 and 2015 . (2) Includes stock-based compensation classified within cost of revenue, marketing expense, selling, general and administrative expense and restructuring charges. Other income (expense), net, includes $0.2 million and $0.4 million of additional stock-based compensation for the three and six months ended June 30, 2016 and $0.02 million for the three and six months ended June 30, 2015 . (3) 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 following table 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, 2016 and 2015 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Stock-based compensation Acquisition-related Stock-based compensation Acquisition-related Stock-based compensation Acquisition-related Stock-based compensation Acquisition-related North America $ 31,920 $ 850 $ 34,031 $ 505 $ 58,943 $ 4,314 $ 65,283 $ 236 EMEA 3,735 — 2,793 — 5,855 — 5,440 — Rest of World 1,897 — 1,661 — 3,510 — 2,906 — Consolidated $ 37,552 $ 850 $ 38,485 $ 505 $ 68,308 $ 4,314 $ 73,629 $ 236 (4) Segment cost of revenue and operating expenses for the three months ended June 30, 2016 includes restructuring charges of $2.8 million in North America, $10.6 million in EMEA (which excludes $2.1 million of stock-based compensation) and $0.6 million in Rest of World (which excludes $0.02 million of stock-based compensation). Segment cost of revenue and operating expenses for the six months ended June 30, 2016 includes restructuring charges of $5.8 million in North America (which excludes $2.6 million of stock-based compensation), $14.0 million in EMEA (which excludes $2.1 million of stock-based compensation) and $3.9 million in Rest of World (which excludes $0.02 million of stock-based compensation). See Note 9, " Restructuring ," for additional information. The following table summarizes the Company's total assets by reportable segment as of June 30, 2016 and December 31, 2015 (in thousands): June 30, 2016 December 31, 2015 North America (1) $ 1,096,490 $ 1,063,595 EMEA 440,991 508,353 Rest of World 213,961 224,316 Consolidated total assets $ 1,751,442 $ 1,796,264 (1) North America contains assets from the United States of $1,088.9 million and $1,018.2 million as of June 30, 2016 and December 31, 2015 , respectively. There were no other individual countries that represented more than 10% of consolidated total assets as of June 30, 2016 and December 31, 2015 . Category Information The Company offers goods and services through its online local commerce marketplaces in three primary categories: Local Deals ("Local"), Groupon Goods ("Goods") and Groupon Getaways ("Travel"). Collectively, Local and Travel comprise the Company's "Services" deal offerings and Goods, which it also refers to as "Shopping," reflects its product offerings. The Company also earns advertising revenue, payment processing 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, 2016 and 2015 (in thousands): North America EMEA Rest of World Consolidated Three Months Ended June 30, Three Months Ended June 30, Three Months Ended June 30, Three Months Ended June 30, 2016 2015 2016 2015 2016 2015 2016 2015 Local (1) : Third party and other $ 184,139 $ 172,461 $ 60,616 $ 75,543 $ 22,461 $ 28,499 $ 267,216 $ 276,503 Travel: Third party 21,401 21,958 10,709 13,100 4,321 6,363 36,431 41,421 Total services 205,540 194,419 71,325 88,643 26,782 34,862 303,647 317,924 Goods: Third party 2,364 1,671 5,317 9,702 6,801 11,549 14,482 22,922 Direct 309,018 285,192 121,663 105,702 7,220 6,655 437,901 397,549 Total 311,382 286,863 126,980 115,404 14,021 18,204 452,383 420,471 Total revenue $ 516,922 $ 481,282 $ 198,305 $ 204,047 $ 40,803 $ 53,066 $ 756,030 $ 738,395 (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, 2016 and 2015 (in thousands): North America EMEA Rest of World Consolidated Six Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 2016 2015 2016 2015 Local (1) : Third party and other $ 376,292 $ 353,325 $ 122,502 $ 158,079 $ 44,543 $ 58,780 $ 543,337 $ 570,184 Travel: Third party 42,315 41,947 21,887 27,817 9,370 12,858 73,572 82,622 Total services 418,607 395,272 144,389 185,896 53,913 71,638 616,909 652,806 Goods: Third party 4,354 2,319 16,003 21,680 15,431 24,162 35,788 48,161 Direct 594,774 563,573 226,883 212,691 13,647 11,520 835,304 787,784 Total 599,128 565,892 242,886 234,371 29,078 35,682 871,092 835,945 Total revenue $ 1,017,735 $ 961,164 $ 387,275 $ 420,267 $ 82,991 $ 107,320 $ 1,488,001 $ 1,488,751 (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, 2016 and 2015 (in thousands): North America EMEA Rest of World Consolidated Three Months Ended June 30, Three Months Ended June 30, Three Months Ended June 30, Three Months Ended June 30, 2016 2015 2016 2015 2016 2015 2016 2015 Local (1) : Third party and other $ 158,812 $ 147,574 $ 56,849 $ 70,270 $ 18,739 $ 24,567 $ 234,400 $ 242,411 Travel: Third party 16,334 18,385 9,784 11,939 3,240 5,012 29,358 35,336 Total services 175,146 165,959 66,633 82,209 21,979 29,579 263,758 277,747 Goods: Third party 2,019 1,408 4,426 7,779 4,126 6,367 10,571 15,554 Direct 40,009 29,190 19,099 14,099 151 417 59,259 43,706 Total 42,028 30,598 23,525 21,878 4,277 6,784 69,830 59,260 Total gross profit $ 217,174 $ 196,557 $ 90,158 $ 104,087 $ 26,256 $ 36,363 $ 333,588 $ 337,007 (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, 2016 and 2015 (in thousands): North America EMEA Rest of World Consolidated Six Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 2016 2015 2016 2015 Local (1) : Third party and other $ 322,830 $ 302,350 $ 115,112 $ 147,626 $ 37,510 $ 50,728 $ 475,452 $ 500,704 Travel: Third party 32,046 34,176 19,999 24,339 7,237 9,918 59,282 68,433 Total services 354,876 336,526 135,111 171,965 44,747 60,646 534,734 569,137 Goods: Third party 3,692 1,842 13,871 17,972 9,819 12,774 27,382 32,588 Direct 74,549 52,679 36,066 29,387 185 622 110,800 82,688 Total 78,241 54,521 49,937 47,359 10,004 13,396 138,182 115,276 Total gross profit $ 433,117 $ 391,047 $ 185,048 $ 219,324 $ 54,751 $ 74,042 $ 672,916 $ 684,413 (1) Includes gross profit from deals with local and national merchants and through local events. |