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 nine months ended September 30, 2016 and 2015 were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 North America Revenue (1) $ 483,281 $ 463,931 $ 1,501,016 $ 1,425,095 Segment cost of revenue and operating expenses (3) (4) (5) 483,036 494,843 1,510,731 1,404,472 Segment operating income (loss) (3) 245 (30,912 ) (9,715 ) 20,623 EMEA Revenue (1) 196,573 199,287 583,848 619,554 Segment cost of revenue and operating expenses (3) (4) (6) 192,692 195,397 570,294 586,343 Segment operating income (loss) (3) 3,881 3,890 13,554 33,211 Rest of World Revenue 40,614 50,377 123,605 157,697 Segment cost of revenue and operating expenses (3) (4) 45,284 57,282 146,247 175,542 Segment operating income (loss) (3) (4,670 ) (6,905 ) (22,642 ) (17,845 ) Consolidated Revenue 720,468 713,595 2,208,469 2,202,346 Segment cost of revenue and operating expenses (3) (4) 721,012 747,522 2,227,272 2,166,357 Segment operating income (loss) (3) (544 ) (33,927 ) (18,803 ) 35,989 Stock-based compensation (2) 26,150 35,432 94,079 109,043 Acquisition-related expense (benefit), net (9 ) 1,064 4,305 1,300 Income (loss) from operations (26,685 ) (70,423 ) (117,187 ) (74,354 ) Other income (expense), net (7,028 ) (8,160 ) (14,303 ) (25,146 ) Income (loss) from continuing operations before provision (benefit) for income taxes (33,713 ) (78,583 ) (131,490 ) (99,500 ) Provision (benefit) for income taxes 2,079 (53,970 ) 1,629 (42,881 ) Income (loss) from continuing operations (35,792 ) (24,613 ) (133,119 ) (56,619 ) Income (loss) from discontinued operations, net of tax — — — 133,463 Net income (loss) $ (35,792 ) $ (24,613 ) $ (133,119 ) $ 76,844 (1) North America includes revenue from the United States of $476.3 million and $457.7 million for the three months ended September 30, 2016 and 2015 , respectively, and $1,477.7 million and $1,405.3 million for the nine months ended September 30, 2016 and 2015 , respectively. EMEA includes revenue from Switzerland of $130.6 million and $112.1 million for the three months ended September 30, 2016 and 2015 , respectively, and $374.1 million and $343.3 million for the nine months ended September 30, 2016 and 2015 , 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, 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 $0.3 million and $0.7 million of additional stock-based compensation for the three and nine months ended September 30, 2016 and $0.1 million and $0.2 million for the three and nine months ended September 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 nine months ended September 30, 2016 and 2015 (in thousands): Three Months Ended September 30, Nine Months Ended September 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 $ 24,725 $ (9 ) $ 30,324 $ 1,064 $ 83,668 $ 4,305 $ 95,607 $ 1,300 EMEA 298 — 3,441 — 6,153 — 8,881 — Rest of World 1,419 — 1,810 — 4,929 — 4,716 — Consolidated $ 26,442 $ (9 ) $ 35,575 $ 1,064 $ 94,750 $ 4,305 $ 109,204 $ 1,300 (4) Segment cost of revenue and operating expenses for the three months ended September 30, 2016 includes restructuring charges of $1.0 million in North America, $(0.2) million in EMEA and $0.7 million in Rest of World. Segment cost of revenue and operating expenses for the nine months ended September 30, 2016 includes restructuring charges of $6.8 million in North America (which excludes $2.6 million of stock-based compensation), $13.9 million in EMEA (which excludes $2.1 million of stock-based compensation) and $4.6 million in Rest of World (which excludes $0.02 million of stock-based compensation). Segment cost of revenue and operating expenses for the three and nine months ended September 30, 2015 includes restructuring charges of $1.4 million in North America, $19.7 million in EMEA and $3.0 million in Rest of World. See Note 9, " Restructuring ," for additional information. (5) Segment cost of revenue and operating expenses for North America for the three and nine months ended September 30, 2015 includes a $37.5 million expense related to an increase in the Company's contingent liability for its securities litigation matter. See Note 7, "Commitments and Contingencies," for additional information. (6) Segment cost of revenue and operating expenses for EMEA for the three and nine months ended September 30, 2015 includes a $6.7 million expense for the write-off of a prepaid asset related to a marketing program that was discontinued because the counterparty ceased operations. The following table summarizes the Company's total assets by reportable segment as of September 30, 2016 and December 31, 2015 (in thousands): September 30, 2016 December 31, 2015 North America (1) $ 977,064 $ 1,063,595 EMEA 419,635 508,353 Rest of World 216,842 224,316 Consolidated total assets $ 1,613,541 $ 1,796,264 (1) North America contains assets from the United States of $925.5 million and $1,018.2 million as of September 30, 2016 and December 31, 2015 , respectively. There were no other individual countries that represented more than 10% of consolidated total assets as of September 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 generated when customers make purchases with retailers using digital coupons accessed through the Company's websites and mobile applications. 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 September 30, 2016 and 2015 (in thousands): North America EMEA Rest of World Consolidated Three Months Ended September 30, Three Months Ended September 30, Three Months Ended September 30, Three Months Ended September 30, 2016 2015 2016 2015 2016 2015 2016 2015 Local (1) : Third party and other $ 176,220 $ 163,786 $ 58,581 $ 70,781 $ 21,876 $ 26,372 $ 256,677 $ 260,939 Travel: Third party 21,241 21,394 12,866 13,561 5,075 6,135 39,182 41,090 Total services 197,461 185,180 71,447 84,342 26,951 32,507 295,859 302,029 Goods: Third party 1,965 1,643 4,789 11,837 7,223 10,797 13,977 24,277 Direct 283,855 277,108 120,337 103,108 6,440 7,073 410,632 387,289 Total 285,820 278,751 125,126 114,945 13,663 17,870 424,609 411,566 Total revenue $ 483,281 $ 463,931 $ 196,573 $ 199,287 $ 40,614 $ 50,377 $ 720,468 $ 713,595 (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 nine months ended September 30, 2016 and 2015 (in thousands): North America EMEA Rest of World Consolidated Nine Months Ended Nine Months Ended Nine Months Ended Nine Months Ended 2016 2015 2016 2015 2016 2015 2016 2015 Local (1) : Third party and other $ 552,512 $ 517,111 $ 181,083 $ 228,860 $ 66,419 $ 85,152 $ 800,014 $ 831,123 Travel: Third party 63,556 63,341 34,753 41,378 14,445 18,993 112,754 123,712 Total services 616,068 580,452 215,836 270,238 80,864 104,145 912,768 954,835 Goods: Third party 6,319 3,962 20,792 33,517 22,654 34,959 49,765 72,438 Direct 878,629 840,681 347,220 315,799 20,087 18,593 1,245,936 1,175,073 Total 884,948 844,643 368,012 349,316 42,741 53,552 1,295,701 1,247,511 Total revenue $ 1,501,016 $ 1,425,095 $ 583,848 $ 619,554 $ 123,605 $ 157,697 $ 2,208,469 $ 2,202,346 (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 September 30, 2016 and 2015 (in thousands): North America EMEA Rest of World Consolidated Three Months Ended September 30, Three Months Ended September 30, Three Months Ended September 30, Three Months Ended September 30, 2016 2015 2016 2015 2016 2015 2016 2015 Local (1) : Third party and other $ 152,873 $ 138,798 $ 54,467 $ 66,288 $ 18,645 $ 22,568 $ 225,985 $ 227,654 Travel: Third party 17,257 17,644 11,882 12,323 3,962 4,859 33,101 34,826 Total services 170,130 156,442 66,349 78,611 22,607 27,427 259,086 262,480 Goods: Third party 1,509 1,359 4,156 10,025 4,666 6,392 10,331 17,776 Direct 30,022 33,442 14,554 14,880 124 334 44,700 48,656 Total 31,531 34,801 18,710 24,905 4,790 6,726 55,031 66,432 Total gross profit $ 201,661 $ 191,243 $ 85,059 $ 103,516 $ 27,397 $ 34,153 $ 314,117 $ 328,912 (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 nine months ended September 30, 2016 and 2015 (in thousands): North America EMEA Rest of World Consolidated Nine Months Ended Nine Months Ended Nine Months Ended Nine Months Ended 2016 2015 2016 2015 2016 2015 2016 2015 Local (1) : Third party and other $ 475,703 $ 441,148 $ 169,579 $ 213,914 $ 56,155 $ 73,296 $ 701,437 $ 728,358 Travel: Third party 49,303 51,820 31,881 36,662 11,199 14,777 92,383 103,259 Total services 525,006 492,968 201,460 250,576 67,354 88,073 793,820 831,617 Goods: Third party 5,201 3,201 18,027 27,997 14,485 19,166 37,713 50,364 Direct 104,571 86,121 50,620 44,267 309 956 155,500 131,344 Total 109,772 89,322 68,647 72,264 14,794 20,122 193,213 181,708 Total gross profit $ 634,778 $ 582,290 $ 270,107 $ 322,840 $ 82,148 $ 108,195 $ 987,033 $ 1,013,325 (1) Includes gross profit from deals with local and national merchants and through local events. |