Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | Jun. 12, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-35335 | |
Entity Registrant Name | Groupon, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 27-0903295 | |
Entity Address, Address Line One | 600 W Chicago Avenue | |
Entity Address, Address Line Two | Suite 400 | |
Entity Address, City or Town | Chicago | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60654 | |
City Area Code | (312) | |
Local Phone Number | 334-1579 | |
Title of 12(b) Security | Common stock, par value $0.0001 per share | |
Trading Symbol | GRPN | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Smaller Reporting Company | false | |
Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 28,635,659 | |
Entity Central Index Key | 0001490281 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Current assets: | |||
Cash and cash equivalents | $ 666,867 | $ 750,887 | $ 645,610 |
Accounts receivable, net | 45,430 | 54,953 | |
Prepaid expenses and other current assets | 67,103 | 82,073 | |
Total current assets | 779,400 | 887,913 | |
Property, equipment and software, net | 103,318 | 124,950 | |
Right-of-use assets - operating leases, net | 92,893 | 108,390 | |
Goodwill | 211,255 | 325,017 | |
Intangible assets, net | 33,096 | 35,292 | |
Investments (including $0 and $1,405 at March 31, 2020 and December 31, 2019, at fair value) | 33,699 | 76,576 | |
Other non-current assets | 28,945 | 28,605 | |
Total Assets | 1,282,606 | 1,586,743 | |
Current liabilities: | |||
Short-term borrowings | 150,000 | 0 | |
Accounts payable | 26,061 | 20,415 | |
Accrued merchant and supplier payables | 311,063 | 540,940 | |
Accrued expenses and other current liabilities | 242,097 | 260,192 | |
Total current liabilities | 729,221 | 821,547 | |
Convertible senior notes, net | 218,385 | 214,869 | |
Operating lease obligations | 103,820 | 110,294 | |
Total other non-current liabilities | 39,673 | 44,987 | |
Total Liabilities | 1,091,099 | 1,191,697 | |
Stockholders' Equity | |||
Common stock, par value $0.0001 per share, 100,500,000 shares authorized; 38,712,045 shares issued and 28,417,928 shares outstanding at March 31, 2020; 38,584,854 shares issued and 28,290,737 shares outstanding at December 31, 2019 | 77 | 77 | |
Additional paid-in capital | 2,323,144 | 2,310,320 | |
Treasury stock, at cost, 10,294,117 and 10,294,117 shares at March 31, 2020 and December 31, 2019 | (922,666) | (922,666) | |
Accumulated deficit | (1,246,477) | (1,032,876) | |
Accumulated other comprehensive income (loss) | 37,120 | 39,081 | |
Total Groupon, Inc. Stockholders' Equity | 191,198 | 393,936 | |
Noncontrolling interests | 309 | 1,110 | |
Total Equity | 191,507 | 395,046 | $ 342,396 |
Total Liabilities and Equity | $ 1,282,606 | $ 1,586,743 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Investments, fair value | $ 0 | $ 1,405 |
Common stock, par value (in usd per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 100,500,000 | 100,500,000 |
Common stock, shares issued (in shares) | 38,712,045 | 38,584,854 |
Common stock, shares outstanding (in shares) | 28,417,928 | 28,290,737 |
Treasury Stock | ||
Treasury stock (in shares) | 10,294,117 | 10,294,117 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue: | ||
Total revenue | $ 374,150 | $ 578,410 |
Cost of revenue: | ||
Total cost of revenue | 172,903 | 272,394 |
Gross profit | 201,247 | 306,016 |
Operating expenses: | ||
Marketing | 60,130 | 93,397 |
Selling, general and administrative | 207,141 | 210,424 |
Goodwill impairment | 109,486 | 0 |
Long-lived asset impairment | 22,351 | 0 |
Total operating expenses | 399,108 | 303,821 |
Income (loss) from operations | (197,861) | 2,195 |
Other income (expense), net | (18,987) | (46,855) |
Income (loss) from continuing operations before provision (benefit) for income taxes | (216,848) | (44,660) |
Provision (benefit) for income taxes | (5,988) | (3,490) |
Income (loss) from continuing operations | (210,860) | (41,170) |
Income (loss) from discontinued operations, net of tax | 382 | 2,162 |
Net income (loss) | (210,478) | (39,008) |
Net income (loss) attributable to Groupon, Inc. | $ (213,522) | $ (42,487) |
Basic and diluted net income (loss) per share: | ||
Continuing operations (in usd per share) | $ (7.54) | $ (1.57) |
Discontinued operations (in usd per share) | 0.01 | 0.08 |
Basic and diluted net income (loss) per share (in usd per share) | $ (7.53) | $ (1.49) |
Weighted average number of shares outstanding | ||
Basic (in shares) | 28,365,216 | 28,504,756 |
Diluted (in shares) | 28,365,216 | 28,504,756 |
Comprehensive income (loss): | ||
Net change in unrealized gain (loss) on foreign currency translation adjustments | $ (1,961) | $ 3,272 |
Net change in unrealized gain (loss) on available-for-sale securities (net of tax effect of $0 and $13 for the three months ended March 31, 2020 and 2019) | 0 | 41 |
Other comprehensive income (loss) | (1,961) | 3,313 |
Comprehensive income (loss) | (212,439) | (35,695) |
Comprehensive income (loss) attributable to noncontrolling interest | (3,044) | (3,479) |
Comprehensive income (loss) attributable to Groupon, Inc. | (215,483) | (39,174) |
Service | ||
Revenue: | ||
Total revenue | 207,028 | 285,827 |
Cost of revenue: | ||
Total cost of revenue | 26,915 | 28,627 |
Product | ||
Revenue: | ||
Total revenue | 167,122 | 292,583 |
Cost of revenue: | ||
Total cost of revenue | 145,988 | 243,767 |
Continuing Operations | ||
Comprehensive income (loss): | ||
Other comprehensive income (loss) | (1,961) | 3,313 |
Discontinued Operations, Disposed of by Sale | ||
Comprehensive income (loss): | ||
Other comprehensive income (loss) | $ 0 | $ 0 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
Net change in unrealized gain (loss) on available-for-sale securities (net of tax effect of $0 and $13 for the three months ended March 31, 2020 and 2019) | $ 0 | $ 13 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Deficit | Accumulated DeficitCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) | Total Groupon, Inc. Stockholders' Equity | Total Groupon, Inc. Stockholders' EquityCumulative Effect, Period of Adoption, Adjustment | Non-controlling Interests |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Common stock, par value $0.0001 per share, 100,500,000 shares authorized; 38,712,045 shares issued and 28,417,928 shares outstanding at March 31, 2020; 38,584,854 shares issued and 28,290,737 shares outstanding at December 31, 2019 | $ 76 | ||||||||||
Additional paid-in capital | $ 2,234,560 | ||||||||||
Accumulated deficit | $ (1,010,499) | ||||||||||
Accumulated other comprehensive income (loss) | $ 34,602 | ||||||||||
Noncontrolling interests | $ 1,363 | ||||||||||
Beginning balance (in shares) at Dec. 31, 2018 | 38,496,972 | ||||||||||
Treasury stock, beginning balance (in shares) at Dec. 31, 2018 | (9,592,756,000) | ||||||||||
Treasury stock, beginning balance at Dec. 31, 2018 | $ 877,491 | ||||||||||
Beginning balance at Dec. 31, 2018 | $ 382,611 | $ 381,248 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income (loss) attributable to noncontrolling interest | (39,008) | ||||||||||
Other Comprehensive Income (Loss), Net of Tax | 3,313 | ||||||||||
Comprehensive income (loss) attributable to Groupon, Inc. | (39,174) | ||||||||||
Comprehensive income (loss) attributable to noncontrolling interest | 3,479 | ||||||||||
Comprehensive income (loss) | (35,695) | (42,487) | 3,313 | (39,174) | 3,479 | ||||||
Net income (loss) attributable to parent | (42,487) | ||||||||||
Exercise in stock options (in shares) | 625 | ||||||||||
Exercise of stock options | 8 | 8 | 8 | ||||||||
Vesting of restricted stock units and performance share units (in shares) | 208,020 | ||||||||||
Vesting of restricted stock units and performance share units | 0 | ||||||||||
Shares issued under employee stock purchase plan (in shares) | 35,964 | ||||||||||
Shares issued under employee stock purchase plan | 1,998 | 1,998 | 1,998 | ||||||||
Tax withholdings related to net share settlements of stock-based compensation awards (in shares) | (79,286) | ||||||||||
Tax withholdings related to net share settlements of stock-based compensation awards | (5,681) | (5,681) | (5,681) | ||||||||
Purchases of treasury stock (in shares) | (220,399,000) | ||||||||||
Repurchases of common stock | (15,055) | $ (15,055) | (15,055) | ||||||||
Stock-based compensation on equity-classified awards | 17,731 | 17,731 | 17,731 | ||||||||
Distributions to noncontrolling interest holders | (3,521) | (3,521) | |||||||||
Ending balance (in shares) at Mar. 31, 2019 | 38,662,295 | ||||||||||
Ending balance at Mar. 31, 2019 | 342,396 | 341,075 | |||||||||
Treasury stock, ending balance (in shares) at Mar. 31, 2019 | (9,813,155,000) | ||||||||||
Treasury stock, ending balance at Mar. 31, 2019 | $ 892,546 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Common stock, par value $0.0001 per share, 100,500,000 shares authorized; 38,712,045 shares issued and 28,417,928 shares outstanding at March 31, 2020; 38,584,854 shares issued and 28,290,737 shares outstanding at December 31, 2019 | $ 76 | ||||||||||
Additional paid-in capital | 2,248,616 | ||||||||||
Accumulated deficit | (1,052,986) | ||||||||||
Accumulated other comprehensive income (loss) | 37,915 | ||||||||||
Noncontrolling interests | 1,321 | ||||||||||
Common stock, par value $0.0001 per share, 100,500,000 shares authorized; 38,712,045 shares issued and 28,417,928 shares outstanding at March 31, 2020; 38,584,854 shares issued and 28,290,737 shares outstanding at December 31, 2019 | 77 | $ 77 | |||||||||
Additional paid-in capital | 2,310,320 | 2,310,320 | |||||||||
Accumulated deficit | (1,032,876) | (1,032,876) | |||||||||
Accumulated other comprehensive income (loss) | 39,081 | 39,081 | |||||||||
Noncontrolling interests | 1,110 | 1,110 | |||||||||
Beginning balance (in shares) at Dec. 31, 2019 | 38,584,854 | ||||||||||
Treasury stock, beginning balance (in shares) at Dec. 31, 2019 | (10,294,117) | ||||||||||
Treasury stock, beginning balance at Dec. 31, 2019 | 922,666 | $ 922,666 | |||||||||
Beginning balance at Dec. 31, 2019 | 395,046 | $ (79) | $ (79) | 393,936 | $ (79) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income (loss) attributable to noncontrolling interest | (210,478) | ||||||||||
Other Comprehensive Income (Loss), Net of Tax | (1,961) | ||||||||||
Comprehensive income (loss) attributable to Groupon, Inc. | (215,483) | ||||||||||
Comprehensive income (loss) attributable to noncontrolling interest | 3,044 | ||||||||||
Comprehensive income (loss) | (212,439) | (213,522) | (1,961) | (215,483) | 3,044 | ||||||
Net income (loss) attributable to parent | (213,522) | ||||||||||
Vesting of restricted stock units and performance share units (in shares) | 165,705 | ||||||||||
Shares issued under employee stock purchase plan (in shares) | 28,621 | ||||||||||
Shares issued under employee stock purchase plan | 1,163 | 1,163 | 1,163 | ||||||||
Tax withholdings related to net share settlements of stock-based compensation awards (in shares) | (67,135) | ||||||||||
Tax withholdings related to net share settlements of stock-based compensation awards | (3,684) | (3,684) | (3,684) | ||||||||
Stock-based compensation on equity-classified awards | 15,345 | 15,345 | 15,345 | ||||||||
Distributions to noncontrolling interest holders | (3,845) | (3,845) | |||||||||
Ending balance (in shares) at Mar. 31, 2020 | 38,712,045 | ||||||||||
Ending balance at Mar. 31, 2020 | 191,507 | $ 191,198 | |||||||||
Treasury stock, ending balance (in shares) at Mar. 31, 2020 | (10,294,117) | ||||||||||
Treasury stock, ending balance at Mar. 31, 2020 | 922,666 | $ 922,666 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Common stock, par value $0.0001 per share, 100,500,000 shares authorized; 38,712,045 shares issued and 28,417,928 shares outstanding at March 31, 2020; 38,584,854 shares issued and 28,290,737 shares outstanding at December 31, 2019 | 77 | $ 77 | |||||||||
Additional paid-in capital | 2,323,144 | $ 2,323,144 | |||||||||
Accumulated deficit | (1,246,477) | $ (1,246,477) | |||||||||
Accumulated other comprehensive income (loss) | 37,120 | $ 37,120 | |||||||||
Noncontrolling interests | $ 309 | $ 309 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Operating activities | |||
Net income (loss) | $ (210,478) | $ (39,008) | |
Less: Income (loss) from discontinued operations, net of tax | (382) | (2,162) | |
Income (loss) from continuing operations | (210,860) | (41,170) | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization of property, equipment and software | 23,385 | 24,522 | |
Amortization of acquired intangible assets | 2,524 | 3,894 | |
Impairment of goodwill | 109,486 | 0 | |
Impairment of long-lived assets | 22,351 | 0 | |
Stock-based compensation | 14,015 | 16,411 | |
Impairment of investment | 6,684 | 0 | |
(Gain) loss from changes in fair value of investments | 1,405 | 41,408 | |
Amortization of debt discount on convertible senior notes | 3,516 | 3,175 | |
Change in assets and liabilities, net of acquisitions and dispositions: | |||
Accounts receivable | 8,334 | (14,200) | |
Prepaid expenses and other current assets | 13,222 | 3,461 | |
Right-of-use assets - operating leases | 7,009 | 6,481 | |
Accounts payable | 5,860 | (12,914) | |
Accrued merchant and supplier payables | (223,098) | (136,572) | |
Accrued expenses and other current liabilities | (11,970) | (33,987) | |
Operating lease obligations | (10,130) | (6,481) | |
Other, net | 1,859 | (1,511) | |
Net cash provided by (used in) operating activities from continuing operations | (236,408) | (147,483) | |
Net cash provided by (used in) operating activities from discontinued operations | 0 | 0 | |
Net cash provided by (used in) operating activities | (236,408) | (147,483) | |
Investing activities | |||
Purchases of property and equipment and capitalized software | (10,596) | (17,477) | |
Proceeds from sale of investment | 31,605 | 0 | |
Acquisitions of intangible assets and other investing activities | (1,445) | (638) | |
Net cash provided by (used in) investing activities from continuing operations | 19,564 | (18,115) | |
Net cash provided by (used in) investing activities from discontinued operations | 0 | 0 | |
Net cash provided by (used in) investing activities | 19,564 | (18,115) | |
Financing activities | |||
Proceeds from borrowing under revolving credit agreement | 150,000 | 0 | |
Payments for repurchases of common stock | 0 | (14,416) | |
Taxes paid related to net share settlements of stock-based compensation awards | (3,299) | (5,090) | |
Proceeds from stock option exercises and employee stock purchase plan | 1,163 | 2,006 | |
Distributions to noncontrolling interest holders | (3,845) | (3,521) | |
Payments of finance lease obligations | (2,707) | (6,756) | |
Net cash provided by (used in) financing activities | 141,312 | (27,777) | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash, including cash classified within current assets of discontinued operations | (9,174) | (3,381) | |
Net increase (decrease) in cash, cash equivalents and restricted cash, including cash classified within current assets of discontinued operations | (84,706) | (196,756) | |
Less: Net increase (decrease) in cash classified within current assets of discontinued operations | 0 | 0 | |
Net increase (decrease) in cash, cash equivalents and restricted cash | (84,706) | (196,756) | |
Cash, cash equivalents and restricted cash, beginning of period (1) | [1] | 752,657 | 844,728 |
Cash, cash equivalents and restricted cash, end of period (1) | [1] | 667,951 | 647,972 |
Non-cash investing and financing activities | |||
Liability for repurchases of common stock | 0 | (1,905) | |
Increase (decrease) in liabilities related to purchases of property and equipment and capitalized software | 1,772 | (355) | |
Restricted Cash [Abstract] | |||
Cash, cash equivalents and restricted cash | [1] | $ 667,951 | $ 647,972 |
[1] | The following table provides a reconciliation of cash, cash equivalents and restricted cash shown above to amounts reported within the condensed consolidated balance sheets as of March 31, 2020, December 31, 2019 and December 31, 2018 and amounts previously reported within the condensed consolidated balance sheet in our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2019 (in thousands): March 31, 2020 December 31, 2019 March 31, 2019 December 31, 2018 Cash and cash equivalents $ 666,867 $ 750,887 $ 645,610 $ 841,021 Restricted cash included in prepaid expenses and other current assets 878 1,534 1,973 3,320 Restricted cash included in other non-current assets 206 236 389 387 Cash, cash equivalents and restricted cash $ 667,951 $ 752,657 $ 647,972 $ 844,728 |
DESCRIPTION OF BUSINESS AND BAS
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Company Information Groupon, Inc. and its subsidiaries, which commenced operations in October 2008, operate online local commerce marketplaces throughout the world that connect merchants to consumers by offering goods and services, generally at a discount. Customers access those marketplaces through our mobile applications and our websites, primarily localized groupon.com sites in many countries. Our operations are organized into two segments: North America and International. See Note 12, Segment Information . Reverse Stock Split On June 10, 2020, we effectuated a reverse stock split of our common stock at a ratio of 1-for-20. See Note 13, Subsequent Events , for additional information. As a result, the number of shares and income (loss) per share disclosed throughout this Quarterly Report on Form 10-Q have been retrospectively adjusted to reflect the reverse stock split. COVID-19 Pandemic The outbreak of COVID-19 and the preventive or protective actions that governments or our merchants and consumers have taken in response to the pandemic have resulted in significant disruption of our operations and have had an adverse impact on our financial condition, results of operations and cash flows. We rely on customers' purchases of vouchers for local experiences, including events and activities, beauty and wellness, and dining. The temporary closure of businesses including restaurants and bars, event venues, and spas, resulted in a significant deterioration in our performance in March 2020, and the negative impact on our business is expected to continue at least as long as customers and merchants remain impacted by governmental measures being implemented to control the spread of the virus, including quarantines, travel restrictions, business shutdowns and restrictions on the movement of people in the United States and abroad. In light of the impact of COVID-19 on our business, we expect a net loss and negative operating cash flows for the year ending December 31, 2020. We plan to continue to actively manage and optimize our cash balances and liquidity, working capital and operating expenses, although there can be no assurances that we will be able to do so. We have taken several steps to reduce costs and preserve cash in the near-term, including, among others: reducing our workforce and furloughing staff; continuing to sell Goods on our platform instead of quickly exiting the category; reducing marketing expense by significantly shortening payback thresholds and delaying brand marketing investments; continuing to transition merchants to redemption payment terms, instead of fixed payment terms; implementing a hiring freeze; eliminating broad-based merit increases for employees; and replacing cash compensation with equity compensation in 2020 for all Board directors. The future impact of COVID-19 on our business, results of operations, financial condition and liquidity is highly uncertain and will ultimately depend on future developments, including the magnitude and duration of the pandemic and the protective measures associated with reducing its spread. We determined the significant deterioration in our financial performance due to the disruption in our operations from COVID-19 and the sustained decrease in our stock price required us to evaluate our long-lived assets and goodwill for impairment, which resulted in the impairment of our long-lived assets and goodwill during the first quarter 2020. See Note 2, Goodwill and Long-Lived Assets . Additionally, the economic impacts of COVID-19 resulted in an impairment or a reduction in the fair value of certain of our investments during the first quarter 2020. See Note 3, Investments . Unaudited Interim Financial Information We have prepared the accompanying condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") for interim financial reporting. These condensed consolidated financial statements are unaudited and, in our opinion, include all adjustments, consisting of normal recurring adjustments and accruals, necessary for a fair presentation of the condensed consolidated balance sheets, statements of operations and comprehensive income (loss), cash flows and stockholders' equity for the periods presented. These condensed consolidated financial statements and notes should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2019. Principles of Consolidation The condensed consolidated financial statements include the accounts of Groupon, Inc. and its wholly-owned subsidiaries, majority-owned subsidiaries over which we exercise control and variable interest entities for which we are the primary beneficiary. All intercompany accounts and transactions have been eliminated in consolidation. Outside stockholders' interests in subsidiaries are shown on the condensed consolidated financial statements as Noncontrolling interests. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Estimates in our financial statements include, but are not limited to, the following: variable consideration from unredeemed vouchers, income taxes, leases, initial valuation and subsequent impairment testing of goodwill, other intangible assets and long-lived assets, investments, receivables, customer refunds and other reserves, contingent liabilities, and the useful lives of property, equipment and software and intangible assets. Actual results could differ materially from those estimates. Adoption of New Accounting Standards We adopted the guidance in ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses of Financial Instruments ("CECL") on January 1, 2020. This ASU requires entities to measure credit losses for financial assets measured at amortized cost based on expected losses over the lifetime of the asset rather than incurred losses. The adoption of ASU 2016-13 did not have a material impact on the condensed consolidated financial statements. We adopted the guidance in ASU 2017-04, Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment on January 1, 2020 . This ASU eliminates Step 2 of the goodwill impairment test and requires a goodwill impairment to be measured as the amount by which a reporting unit's carrying amount exceeds its fair value, not to exceed the carrying amount of its goodwill. During the first quarter 2020, we determined a triggering event occurred that required us to evaluate our goodwill for impairment, and we recorded an impairment charge as a result of that assessment. See Note 2, Goodwill and Long-Lived Assets , for additional information. We adopted the guidance in ASU 2018-13, Fair Value Measurement (Topic 820) - Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement on January 1, 2020 . This ASU modifies the disclosure requirements in Topic 820, Fair Value Measurements , by removing, modifying, or adding certain disclosures. The adoption of ASU 2018-13 did not have a material impact on the condensed consolidated financial statements, but did impact the related disclosures. See Note 10, Fair Value Measurements , for additional information. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND LONG-LIVED ASSETS In accordance with ASC Topic 350, Intangibles — Goodwill and Other, we evaluate goodwill for impairment annually on October 1 or more frequently when an event occurs or circumstances change that indicates the carrying value may not be recoverable. We also review our long-lived assets, such as property, equipment and software, right-of-use assets and intangible assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. During the first quarter 2020, we determined the significant deterioration in our financial performance due to the disruption in our operations from COVID-19 and the sustained decrease in our stock price required us to evaluate our goodwill and long-lived assets for impairment. Future events and changing market conditions due to the impact of COVID-19 may require us to re-evaluate the estimates used in our fair value measurements, which could result in additional impairment of long-lived assets or goodwill in future periods that may have a material effect on our operating results. Goodwill In order to evaluate goodwill for impairment, we compared the fair values of our three reporting units (North America, EMEA and Asia Pacific) to their carrying values. In determining fair values for our reporting units, we used the discounted cash flow method and the market multiple valuation approach that use Level 3 inputs. The significant estimates used in the discounted cash flow models are the risk-adjusted discount rates; forecasted revenue, cost of revenue and operating expenses; forecasted capital expenditures and working capital needs; weighted average cost of capital; rates of long-term growth; and income tax rates. These estimates considered the recent deterioration in financial performance of the reporting units as well as the anticipated rate of recovery, and implied risk premiums based on the market prices of our equity and debt as of the assessment date. The significant estimates used in the market multiple valuation approach include identifying business factors such as size, growth, profitability, risk and return on investment and assessing comparable revenue and earnings multiples. As a result of the interim quantitative assessment of goodwill, we identified a partial impairment of goodwill in our EMEA reporting unit within the International segment and recognized goodwill impairment of $109.5 million for the three months ended March 31, 2020. As a result of the goodwill impairment, the EMEA reporting unit had a negative carrying value and remaining goodwill of $26.3 million as of March 31, 2020. We did not recognize any goodwill impairment in our North America or Asia Pacific reporting units. The following table summarizes goodwill activity by segment for the three months ended March 31, 2020 (in thousands): North America International Consolidated Balance as of December 31, 2019 $ 178,685 $ 146,332 $ 325,017 Impairment loss — (109,486) (109,486) Foreign currency translation — (4,276) (4,276) Balance as of March 31, 2020 $ 178,685 $ 32,570 $ 211,255 Long-lived Assets Following our review of long-lived assets for impairment in the first quarter 2020, we also recognized long-lived asset impairment of $22.4 million within our International segment related to our EMEA operations. The assets classified as Level 3 measurements were written down to fair value based on the discounted cash flow method. The significant estimates used in the discounted cash flow models are the risk-adjusted discount rates; forecasted revenue, cost of revenue and operating expenses; forecasted capital expenditures and working capital needs; weighted average cost of capital; rates of long-term growth; and income tax rates. The following table summarizes long-lived asset impairment by asset type for the three months ended March 31, 2020 (in thousands): Long-Lived Asset Category Impairment Property, equipment and software, net Warehouse equipment $ — Furniture and fixtures 413 Leasehold improvements 2,806 Office equipment 198 Purchased software 14 Computer hardware 2,842 Finance leases — Right-of-use assets - finance leases, net 1,318 Capitalized software 304 Internally-developed software 2,988 Total Property, equipment and software, net $ 10,883 Right-of-use assets - operating leases, net 10,494 Intangible assets, net 103 Other non-current assets 871 Total long-lived assets $ 22,351 The following table summarizes intangible assets as of March 31, 2020 and December 31, 2019 (in thousands): March 31, 2020 December 31, 2019 Intangible Asset Category Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value Customer relationships $ 16,200 $ 16,200 $ — $ 16,200 $ 16,200 $ — Merchant relationships 20,957 8,697 12,260 22,193 8,268 13,925 Trade names 9,400 7,471 1,929 9,558 7,369 2,189 Developed technology 2,300 1,556 744 3,651 2,685 966 Patents 23,627 18,674 4,953 23,021 18,167 4,854 Other intangible assets 26,701 13,491 13,210 26,115 12,757 13,358 Total $ 99,185 $ 66,089 $ 33,096 $ 100,738 $ 65,446 $ 35,292 Amortization of intangible assets is computed using the straight-line method over their estimated useful lives, which range from 1 to 10 years. Amortization expense related to intangible assets was $2.5 million and $3.9 million for the three months ended March 31, 2020 and 2019. As of March 31, 2020, estimated future amortization expense related to intangible assets is as follows (in thousands): Remaining amounts in 2020 $ 6,850 2021 7,598 2022 7,007 2023 5,869 2024 2,359 Thereafter 3,413 Total $ 33,096 |
INVESTMENTS
INVESTMENTS | 3 Months Ended |
Mar. 31, 2020 | |
Schedule of Equity Method Investments [Abstract] | |
INVESTMENTS | INVESTMENTS The following table summarizes investments as of March 31, 2020 and December 31, 2019 (dollars in thousands): March 31, 2020 Percent Ownership of Voting Stock December 31, 2019 Percent Ownership of Voting Stock Available-for-sale securities - redeemable preferred shares $ — 19% to 25% $ — 19% to 25% Fair value option investments — 10% to 19% 1,405 10% to 19% Other equity investments 33,699 1% to 19% 75,171 1% to 19% Total investments $ 33,699 $ 76,576 Fair Value Option Investments In connection with the dispositions of controlling stakes in TMON Inc. ("TMON"), an entity based in the Republic of Korea and Groupon India in prior periods, we obtained minority investments in Monster Holdings LP ("Monster LP") and in Nearbuy Pte Ltd. ("Nearbuy"). We have made an irrevocable election to account for both of those investments at fair value with changes in fair value reported in earnings. We elected to apply fair value accounting to those investments because we believe that fair value is the most relevant measurement attribute for those investments, as well as to reduce operational and accounting complexity. Our election to apply fair value accounting to those investments has and may continue to cause fluctuations in our earnings from period to period. The following table summarizes gains and losses due to changes in fair value of those investments for the three months ended March 31, 2020 and 2019 (in thousands): Three Months Ended March 31, 2020 2019 Monster LP $ — $ (41,459) Nearbuy (1,405) 51 Total $ (1,405) $ (41,408) During the first quarter 2020, we recognized a $1.4 million loss from changes in the fair value of our investment in Nearbuy due to revised cash flow projections and an increase in the discount rate applied to those forecasts, which increased to 30% as of March 31, 2020, as compared with 20% as of December 31, 2019. The revisions to the financial projections and the increase in the discount rate applied as of March 31, 2020 were due to the deterioration in the financial condition of Nearbuy as a result of COVID-19, which resulted in underperformance as compared with prior projections and an increase to financial projection risk. During the first quarter 2019, we recognized a $41.5 million loss from changes in the fair value of our investment in Monster LP due to the revised cash flow projections provided by TMON in March 2019 and an increase in the discount rate applied to those forecasts, which increased to 26.0% as of March 31, 2019, as compared with 21.0% as of December 31, 2018. The increase in the discount rate applied as of March 31, 2019 was due to the deterioration in the financial condition of TMON and the competitive environment in the Korean e-commerce industry, which resulted in an increase to financial projection risk. During the second quarter 2019, we recognized an additional loss of $27.9 million from changes in the fair value of our investment in Monster LP due to revised financial projections provided by TMON in June 2019. The revisions to the financial projections were made as a result of TMON’s continued underperformance as compared with prior projections along with adjustments to their business model. We determined that the fair value of our investment in Monster LP and Nearbuy was $0.0 million and $0.0 million as of March 31, 2020 and $0.0 million and $1.4 million as of December 31, 2019. Other Equity Investments Other equity investments represent equity investments without readily determinable fair values recorded at cost adjusted for observable price changes and impairments. During the first quarter 2020, we sold 50% of our shares in an other equity investment for total cash consideration of $34.0 million, which approximated cost adjusted for observable price changes as of December 31, 2019. In addition, we recorded a $6.7 million impairment during the first quarter 2020 to an other equity method investment as a result of revised cash flow projections and a deterioration in financial condition due to COVID-19. |
SUPPLEMENTAL CONSOLIDATED BALAN
SUPPLEMENTAL CONSOLIDATED BALANCE SHEETS AND STATEMENTS OF OPERATIONS INFORMATION | 3 Months Ended |
Mar. 31, 2020 | |
Supplemental Consolidated Balance Sheet & Statement of Operations Information [Abstract] | |
SUPPLEMENTAL CONSOLIDATED BALANCE SHEETS AND STATEMENTS OF OPERATIONS INFORMATION | SUPPLEMENTAL CONDENSED CONSOLIDATED BALANCE SHEETS AND STATEMENTS OF OPERATIONS INFORMATION The following table summarizes other income (expense), net for the three months ended March 31, 2020 and 2019 (in thousands): Three Months Ended March 31, 2020 2019 Interest income $ 2,556 $ 1,936 Interest expense (6,958) (5,691) Changes in fair value of investments (1,405) (41,408) Foreign currency gains (losses), net (6,503) (1,679) Impairment of investment (6,684) — Other 7 (13) Other income (expense), net $ (18,987) $ (46,855) The following table summarizes prepaid expenses and other current assets as of March 31, 2020 and December 31, 2019 (in thousands): March 31, 2020 December 31, 2019 Merchandise inventories $ 12,932 $ 25,426 Prepaid expenses 27,521 27,077 Income taxes receivable 10,335 4,791 Other 16,315 24,779 Total prepaid expenses and other current assets $ 67,103 $ 82,073 The following table summarizes other non-current assets as of March 31, 2020 and December 31, 2019 (in thousands): March 31, 2020 December 31, 2019 Deferred income tax $ 4,625 $ 4,829 Debt issue costs, net 2,033 2,156 Deferred commissions expense 8,105 10,133 Deferred cloud implementation costs 10,262 7,372 Other 3,920 4,115 Total other non-current assets $ 28,945 $ 28,605 The following table summarizes accrued merchant and supplier payables as of March 31, 2020 and December 31, 2019 (in thousands): March 31, 2020 December 31, 2019 Accrued merchant payables $ 227,216 $ 366,573 Accrued supplier payables (1) 83,847 174,367 Total accrued merchant and supplier payables $ 311,063 $ 540,940 (1) Amounts include payables to suppliers of inventories and providers of shipping and fulfillment services. The following table summarizes accrued expenses and other current liabilities as of March 31, 2020 and December 31, 2019 (in thousands): March 31, 2020 December 31, 2019 Refunds reserve $ 27,694 $ 22,002 Compensation and benefits 41,761 49,009 Accrued marketing 12,278 41,110 Customer credits 24,559 13,764 Income taxes payable 2,763 5,044 Deferred revenue 18,501 17,951 Operating and finance lease obligations 38,328 40,768 Other 76,213 70,544 Total accrued expenses and other current liabilities $ 242,097 $ 260,192 The following table summarizes other non-current liabilities as of March 31, 2020 and December 31, 2019 (in thousands): March 31, 2020 December 31, 2019 Contingent income tax liabilities $ 27,077 $ 30,121 Finance lease obligations 3,843 5,831 Deferred income taxes 3,682 3,903 Other 5,071 5,132 Total other non-current liabilities $ 39,673 $ 44,987 |
FINANCING ARRANGEMENTS
FINANCING ARRANGEMENTS | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
FINANCING ARRANGEMENTS | FINANCING ARRANGEMENTS Convertible Senior Notes On April 4, 2016, we issued $250.0 million in aggregate principal amount of convertible senior notes (the "Notes") in a private placement to A-G Holdings, L.P. ("AGH"). Michael Angelakis, the chairman and chief executive officer of Atairos Group, Inc. ("Atairos"), joined our Board of Directors (the "Board") in connection with the issuance of the Notes. Atairos controls the voting power of AGH. The net proceeds from this offering were $243.2 million after deducting issuance costs. The Notes bear interest at a rate of 3.25% per annum, payable annually in arrears on April 1 of each year, beginning on April 1, 2017. The Notes will mature on April 1, 2022, subject to earlier conversion or redemption. Each $1,000 of principal amount of the Notes initially is convertible into 9.25926 shares of common stock, which is equivalent to an initial conversion price of $108.00 per share, subject to adjustment upon the occurrence of specified events. Upon conversion, we can elect to settle the conversion value in cash, shares of our common stock, or any combination of cash and shares of our common stock. Holders of the Notes may convert their Notes at their option at any time until the close of business on the scheduled trading day immediately preceding the maturity date. In addition, if specified corporate events occur prior to the maturity date, we may be required to increase the conversion rate for holders who elect to convert based on the effective date of such event and the applicable stock price attributable to the event, as set forth in a table contained in the indenture governing the Notes (the "Indenture"). Based on the closing price of the common stock of $19.60 as of March 31, 2020, the if-converted value of the Notes was less than the principal amount. With certain exceptions, upon a fundamental change (as defined in the Indenture), the holders of the Notes may require us to repurchase all or a portion of their Notes for cash at a purchase price equal to the principal amount plus accrued and unpaid interest. In addition, we may redeem the Notes, at our option, at a purchase price equal to the principal amount plus accrued and unpaid interest on or after April 1, 2020, if the closing sale price of the common stock exceeds 150% of the then-current conversion price for 20 or more trading days in the 30 consecutive trading-day period preceding the exercise of this redemption right. The Notes are senior unsecured obligations that rank equal in right of payment to all senior unsecured indebtedness and rank senior in right of payment to any indebtedness that is contractually subordinated to the Notes. The Indenture includes customary events of default. If an event of default, as defined in the Indenture, occurs and is continuing, the principal amount of the Notes and any accrued and unpaid interest may be declared immediately due and payable. In the case of bankruptcy or insolvency, the principal amount of the Notes and any accrued and unpaid interest would automatically become immediately due and payable. We have separated the Notes into their liability and equity components in the accompanying condensed consolidated balance sheets. The carrying amount of the liability component was calculated by measuring the fair value of a similar liability that does not have an associated conversion feature. The carrying amount of the equity component, representing the conversion option, was determined by deducting the fair value of the liability component from the principal amount of the Notes. The difference between the principal amount of the Notes and the liability component (the "debt discount") is amortized to interest expense at an effective interest rate of 9.75% over the term of the Notes. The equity component of the Notes is included in additional paid-in capital in the condensed consolidated balance sheets and is not remeasured as long as it continues to meet the conditions for equity classification. We incurred transaction costs of approximately $6.8 million related to the issuance of the Notes. Those transaction costs were allocated to the liability and equity components in the same manner as the allocation of the proceeds from the Notes. Transaction costs attributable to the liability component of $4.8 million were recorded as a debt discount in the condensed consolidated balance sheet and are being amortized to interest expense over the term of the Notes. Transaction costs attributable to the equity component of $2.0 million were recorded in stockholders' equity as a reduction of the equity component. The carrying amount of the Notes consisted of the following as of March 31, 2020 and December 31, 2019 (in thousands): March 31, 2020 December 31, 2019 Liability component: Principal amount $ 250,000 $ 250,000 Less: debt discount (31,615) (35,131) Net carrying amount of liability component $ 218,385 $ 214,869 Net carrying amount of equity component $ 67,014 $ 67,014 The estimated fair value of the Notes as of March 31, 2020 and December 31, 2019 was $248.4 million and $262.7 million, and was determined using a lattice model. We classified the fair value of the Notes as a Level 3 measurement due to the lack of observable market data over fair value inputs such as our stock price volatility over the term of the Notes and our cost of debt. As of March 31, 2020, the remaining term of the Notes is approximately 2 years. During the three months ended March 31, 2020 and 2019, we recognized interest costs on the Notes as follows (in thousands): Three Months Ended March 31, 2020 2019 Contractual interest (3.25% of the principal amount per annum) $ 2,032 $ 2,032 Amortization of debt discount 3,516 3,175 Total $ 5,548 $ 5,207 Note Hedges and Warrants In May 2016, we purchased convertible note hedges with respect to our common stock for a cost of $59.1 million from certain bank counterparties. The convertible note hedges provide us with the right to purchase up to 2.3 million shares of our common stock at an initial strike price of $108.00 per share, which corresponds to the initial conversion price of the Notes, and are exercisable upon conversion of the Notes. The convertible note hedges are intended to reduce the potential economic dilution upon conversion of the Notes. The convertible note hedges are separate transactions and are not part of the terms of the Notes. Holders of the Notes do not have any rights with respect to the convertible note hedges. In May 2016, we also sold warrants for total cash proceeds of $35.5 million to certain bank counterparties. The warrants provide the counterparties with the right to purchase up to 2.3 million shares of our common stock at a strike price of $170.00 per share. The warrants expire on various dates between July 1, 2022 and August 26, 2022 and are exercisable on their expiration dates. The warrants are separate transactions and are not part of the terms of the Notes or convertible note hedges. Holders of the Notes and convertible note hedges do not have any rights with respect to the warrants. The amounts paid and received for the convertible note hedges and warrants were recorded in additional paid-in capital in the condensed consolidated balance sheets as of March 31, 2020 and December 31, 2019. The convertible note hedges and warrants are not remeasured as long as they continue to meet the conditions for equity classification. The amounts paid for the convertible note hedges are tax deductible over the term of the Notes, while the proceeds received from the warrants are not taxable. Under the if-converted method, the shares of common stock underlying the conversion option in the Notes are included in the diluted earnings per share denominator and the interest expense on the Notes, net of tax, is added to the numerator. However, upon conversion, there will be no economic dilution from the Notes, as exercise of the convertible note hedges eliminates any dilution from the Notes that would have otherwise occurred when the price of our common stock exceeds the conversion price. Taken together, the purchase of the convertible note hedges and sale of warrants are intended to offset any actual dilution from the conversion of the Notes and to effectively increase the overall conversion price from $108.00 to $170.00 per share. Revolving Credit Agreement In May 2019, we entered into a second amended and restated senior secured revolving credit agreement (the "2019 Credit Agreement") which provides for aggregate principal borrowings of up to $400.0 million and matures in May 2024. The 2019 Credit Agreement replaced our previous $250.0 million amended and restated credit agreement (the "2016 Credit Agreement"). We deferred debt issuance costs of $2.4 million related to the 2019 Credit Agreement. Those deferred costs are included within Other non-current assets on the condensed consolidated balance sheet as of March 31, 2020 and will be amortized to interest expense over the term of the agreement. Borrowings under the 2019 Credit Agreement bear interest, at our option, at a rate per annum equal to (a) an adjusted LIBO rate or (b) a customary base rate (with loans denominated in certain currencies bearing interest at rates specific to such currencies) plus an additional margin ranging between 0.50% and 2.00%. We are required to pay quarterly commitment fees ranging from 0.25% to 0.35% per annum of the average daily amount of unused commitments available under the 2019 Credit Agreement. The 2019 Credit Agreement also provides for the issuance of up to $75.0 million in letters of credit, provided that the sum of outstanding borrowings and letters of credit do not exceed the maximum funding commitment of $400.0 million. The 2019 Credit Agreement is secured by substantially all of our tangible and intangible assets, including a pledge of 100% of the outstanding capital stock of substantially all of our direct and indirect domestic subsidiaries and 65% of the shares or equity interests of first-tier foreign subsidiaries and each U.S. entity whose assets substantially consist of capital stock and/or intercompany debt of one or more foreign subsidiaries, subject to certain exceptions. Certain of our domestic subsidiaries are guarantors under the 2019 Credit Agreement. The 2019 Credit Agreement contains various customary restrictive covenants that limit our ability to, among other things: incur additional indebtedness; make dividend and other restricted payments, including limiting the amount of our share repurchases; enter into sale and leaseback transactions; make investments, loans or advances; grant or incur liens on assets; sell assets; engage in mergers, consolidations, liquidations or dissolutions; and engage in transactions with affiliates. The 2019 Credit Agreement requires us to maintain compliance with specified financial covenants, comprised of a minimum fixed charge coverage ratio, a maximum leverage ratio, a maximum senior secured leverage ratio and a minimum liquidity ratio, each as set forth in the 2019 Credit Agreement. We are also required to maintain, as of the last day of each fiscal quarter, unrestricted cash of at least $250.0 million, including $125.0 million in accounts held with lenders under the 2019 Credit Agreement or their affiliates. Non-compliance with these covenants may result in termination of the commitments under the 2019 Credit Agreement and any then outstanding borrowings may be declared due and payable immediately. We have the right to terminate the 2019 Credit Agreement or reduce the available commitments at any time. We had $150.0 million of borrowings and $18.9 million of outstanding letters of credit under the 2019 Credit Agreement as of March 31, 2020. We had $18.1 million of outstanding letters of credit under the 2019 Credit Agreement as of December 31, 2019. In April 2020, we borrowed an additional $50.0 million under the 2019 Credit Agreement. See Item 2. Liquidity and Capital Resources , for additional information. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Our contractual obligations and commitments and future operating income under our operating subleases as of March 31, 2020 and through the date of this report did not materially change from the amounts set forth in our 2019 Annual Report on Form 10-K, except as disclosed below. Purchase Obligations In the first quarter 2020 and through the date of this report, we entered into non-cancellable arrangements for cloud computing services and software. Future payments under these new contractual obligations are as follows (in thousands): Remaining in 2020 $ 3,066 2021 13,103 2022 13,842 2023 (1) 20,987 Total $ 50,998 (1) Includes $8.0 million in cloud computing arrangement costs for which the timing of settlement is based on usage. We expect to incur those costs over the three Legal Matters and Other Contingencies From time to time, we are party to various legal proceedings incident to the operation of our business. For example, we currently are involved in proceedings brought by former employees and merchants, intellectual property infringement suits, customer lawsuits, stockholder claims relating to U.S. securities law, consumer class actions and suits alleging, among other things, violations of state consumer protection or privacy laws. On April 28, 2020, a plaintiff filed a securities fraud class action complaint in the United States District Court for the Northern District of Illinois covering the time period November 4, 2019 through February 18, 2020. The plaintiff alleges that Groupon and certain of its officers made materially false and/or misleading statements or omissions regarding its business, operations and prospects, specifically as it relates to reiterating its full year guidance on November 4, 2019. The Company and its officers have not yet been served with this lawsuit. We intend to vigorously defend against these allegations, which we believe to be without merit. In addition, third parties have from time to time claimed, and others may claim in the future, that we have infringed their intellectual property rights. We are subject to intellectual property disputes, including patent infringement claims, and expect that we will continue to be subject to intellectual property infringement claims as our services expand in scope and complexity. In the past, we have litigated such claims, and we are presently involved in several patent infringement and other intellectual property-related claims, including pending litigation or trademark disputes relating to, for example, our Goods category, some of which could involve potentially substantial claims for damages or injunctive relief. We may also become more vulnerable to third-party claims as laws such as the Digital Millennium Copyright Act are interpreted by the courts, and we become subject to laws in jurisdictions where the underlying laws with respect to the potential liability of online intermediaries are either unclear or less favorable. We believe that additional lawsuits alleging that we have violated patent, copyright or trademark laws will be filed against us. Intellectual property claims, whether meritorious or not, are time consuming and often costly to resolve, could require expensive changes in our methods of doing business or the goods we sell, or could require us to enter into costly royalty or licensing agreements. We also are subject to consumer claims or lawsuits relating to alleged violations of consumer protection or privacy rights and statutes, some of which could involve potentially substantial claims for damages, including statutory or punitive damages. Consumer and privacy related claims or lawsuits, whether meritorious or not, could be time consuming, result in costly litigation, damage awards, fines and penalties, injunctive relief or increased costs of doing business through adverse judgment or settlement, or require us to change our business practices, sometimes in expensive ways. We are also subject to, or in the future may become subject to, a variety of regulatory inquiries, audits, and investigations across the jurisdictions where we conduct our business, including, for example, inquiries related to consumer protection, employment matters and/or hiring practices, marketing practices, tax, unclaimed property and privacy rules and regulations. Any regulatory actions against us, whether meritorious or not, could be time consuming, result in costly litigation, damage awards, fines and penalties, injunctive relief or increased costs of doing business through adverse judgment or settlement, require us to change our business practices in expensive ways, require significant amounts of management time, result in the diversion of significant operational resources or otherwise harm our business. We establish an accrued liability for loss contingencies related to legal and regulatory matters when the loss is both probable and reasonably estimable. Those accruals represent management's best estimate of probable losses and, in such cases, there may be an exposure to loss in excess of the amounts accrued. For certain of the matters described above, there are inherent and significant uncertainties based on, among other factors, the stage of the proceedings, developments in the applicable facts of law, or the lack of a specific damage claim. However, we believe that the amount of reasonably possible losses in excess of the amounts accrued for those matters would not have a material adverse effect on our business, condensed consolidated financial position, results of operations or cash flows. Our accrued liabilities for loss contingencies related to legal and regulatory matters may change in the future as a result of new developments, including, but not limited to, the occurrence of new legal matters, changes in the law or regulatory environment, adverse or favorable rulings, newly discovered facts relevant to the matter, or changes in the strategy for the matter. Regardless of the outcome, litigation and other regulatory matters can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors. Indemnifications In connection with the disposition of our operations in Latin America in 2017, we recorded $5.4 million in indemnification liabilities for certain tax and other matters upon the closing of the transactions as an adjustment to the net loss on the dispositions within discontinued operations at their fair value. We estimated the indemnification liabilities using a probability-weighted expected cash flow approach. During the first quarter of 2020, we decreased our indemnification liabilities due to the expiration of certain indemnification obligations. The resulting benefit of $0.4 million is recorded within Income (loss) from discontinued operations on the condensed consolidated statement of operations for three months ended March 31, 2020. Our remaining indemnification liabilities were $2.8 million as of March 31, 2020. We estimate that the total amount of obligations that are reasonably possible to arise under the indemnifications in excess of amounts accrued as of March 31, 2020 is approximately $11.7 million. In the normal course of business to facilitate transactions related to our operations, we indemnify certain parties, including employees, lessors, service providers, merchants, and counterparties to investment agreements and asset and stock purchase agreements with respect to various matters. We have agreed to hold certain parties harmless against losses arising from a breach of representations or covenants, or other claims made against those parties. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim. We are also subject to increased exposure to various claims as a result of our divestitures and acquisitions, particularly in cases where we are entering into new businesses in connection with such acquisitions. We may also become more vulnerable to claims as we expand the range and scope of our services and are subject to laws in jurisdictions where the underlying laws with respect to potential liability are either unclear or less favorable. In addition, we have entered into indemnification agreements with our officers, directors and underwriters, and our bylaws contain similar indemnification obligations that cover officers, directors, employees and other agents. Except as noted above, it is not possible to determine the maximum potential amount under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Historically, any payments that we have made under these agreements have not had a material impact on our operating results, financial position or cash flows. |
STOCKHOLDERS' EQUITY AND COMPEN
STOCKHOLDERS' EQUITY AND COMPENSATION ARRANGEMENTS | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
STOCKHOLDERS' EQUITY AND COMPENSATION ARRANGEMENTS | STOCKHOLDERS' EQUITY AND COMPENSATION ARRANGEMENTS Common Stock Pursuant to our restated certificate of incorporation, as of March 31, 2020, the Board had the authority to issue up to a total of 100,500,000 shares of common stock. Each holder of common stock is entitled to one vote per share on any matter that is submitted to a vote of stockholders. In addition, holders of our common stock will vote as a single class of stock on any matter that is submitted to a vote of stockholders. On June 10, 2020, we effectuated a reverse stock split of our common stock. See Note 13, Subsequent Events , for additional information. Share Repurchase Program In May 2018, the Board authorized us to repurchase up to $300.0 million of our common stock under our share repurchase program. During the three months ended March 31, 2020, we did not purchase any shares under the program. As of March 31, 2020, up to $245.0 million of common stock remained available for purchase under our program. The timing and amount of share repurchases, if any, will be determined based on market conditions, limitations under the 2019 Credit Agreement, share price and other factors, and the share repurchase program may be terminated at any time. Groupon, Inc. Stock Plans The Groupon, Inc. Stock Plans described above (the "Plans") are administered by the Compensation Committee of the Board (the "Compensation Committee"). As of March 31, 2020, 3,201,169 shares of common stock were available for future issuance under the Plans. On June 10, 2020, we effectuated a reverse stock split of our common stock pursuant to which the number of shares of common stock available for issuance under the Plans was adjusted proportionately. See Note 13, Subsequent Events , for additional information. The stock-based compensation expense related to stock awards issued under the Plans and acquisition-related awards are presented within the following line items of the condensed consolidated statements of operations for the three months ended March 31, 2020 and 2019 (in thousands): Three Months Ended March 31, 2020 2019 Cost of revenue $ 259 $ 378 Marketing 874 1,425 Selling, general and administrative 12,882 14,608 Total stock-based compensation expense $ 14,015 $ 16,411 We capitalized $1.1 million and $1.3 million of stock-based compensation for the three months ended March 31, 2020 and 2019, in connection with internally-developed software and cloud computing arrangements. Employee Stock Purchase Plan The Groupon, Inc. 2012 Employee Stock Purchase Plan, as amended ("ESPP"), authorizes us to grant up to 1,000,000 shares of common stock under that plan as of March 31, 2020. On June 10, 2020, we effectuated a reverse stock split of our common stock pursuant to which the number of shares of common stock available for grant under the ESPP was adjusted proportionately. See Note 13, Subsequent Events , for additional information. For the three months ended March 31, 2020 and 2019, 28,621 and 35,964 shares of common stock were issued under the ESPP. Restricted Stock Units The restricted stock units granted under the Plans generally have vesting periods between one The table below summarizes restricted stock unit activity under the Plans for the three months ended March 31, 2020: Restricted Stock Units Weighted-Average Grant Date Fair Value (per unit) Unvested at December 31, 2019 1,527,014 $ 74.80 Granted 524,829 43.00 Vested (77,269) 86.20 Forfeited (68,454) 73.80 Unvested at March 31, 2020 1,906,120 65.60 As of March 31, 2020, $92.4 million of unrecognized compensation costs related to unvested restricted stock units are expected to be recognized over a remaining weighted-average period of 1.43 years. Performance Share Units We grant performance share units under the Plans that vest in shares of our common stock upon the achievement of financial and operational targets specified in the respective award agreement ("Performance Share Units"). During the three months ended March 31, 2019, we also granted performance share units subject to a market condition ("Market-based Performance Share Units"). The Market-based Performance Share Units will vest if our average daily closing stock price is equal to or greater than $120.00 per share over a period of 30 consecutive trading days prior to December 31, 2022 or if a change in control occurs during the performance period at the specified stock price (and on a proportional basis for a change in control price between the grant date price and the specified stock price). We used a Monte Carlo simulation to calculate the grant date fair value of the awards and the related derived service period over which we will recognize the expense. The key inputs used in the Monte Carlo simulation were the risk-free rate, our volatility of 49.8% and our cost of equity of 12.8%. Our Performance Share units and Market-based Performance Share Units are subject to continued employment through the performance period dictated by the award and certification by the Compensation Committee that the specified performance conditions have been achieved. The table below summarizes Performance Share Unit activity under the Plans for the three months ended March 31, 2020: Performance Share Units Weighted-Average Grant Date Fair Value (per unit) Market-based Performance Share Units Weighted-Average Grant Date Fair Value (per unit) Unvested at December 31, 2019 203,853 $ 79.76 341,002 $ 60.60 Granted — — — — Vested (88,436) 79.44 — — Forfeited (9,534) 76.42 — — Unvested at March 31, 2020 105,883 80.32 341,002 60.60 Maximum shares issuable upon vesting at March 31, 2020 105,883 341,002 As of March 31, 2020, $4.7 million of unrecognized compensation costs related to unvested Performance Share Units are expected to be recognized over a remaining weighted-average period of 2.12 years and no unrecognized compensation costs related to unvested Market-Based Performance Share Units are expected to be recognized. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | REVENUE RECOGNITION Refer to Note 12, Segment Information , for revenue summarized by reportable segment and category for the three months ended March 31, 2020 and 2019. Contract Balances A substantial majority of our deferred revenue relates to product sales for which revenue will be recognized as the products are delivered to customers, generally within one week following the balance sheet date. Our deferred revenue was $18.5 million and $18.0 million as of March 31, 2020 and December 31, 2019. The amount of revenue recognized for the three months ended March 31, 2020 that was included in the deferred revenue balance at the beginning of the period was $17.7 million. Customer Credits The following table summarizes the activity in the liability for customer credits for the three months ended March 31, 2020 (in thousands): Customer Credits Balance as of December 31, 2019 $ 13,764 Credits issued 38,128 Credits redeemed (1) (23,357) Breakage revenue recognized (3,701) Foreign currency translation (275) Balance as of March 31, 2020 $ 24,559 (1) Customer credits can be redeemed through our online marketplaces for goods or services provided by a third-party merchant or for merchandise inventory sold by us. When customer credits are redeemed for goods or services provided by a third-party merchant, service revenue is recognized on a net basis as the difference between the carrying amount of the customer credit liability derecognized and the amount due to the merchant for the related transaction. When customer credits are redeemed for merchandise inventory sold by us, product revenue is recognized on a gross basis equal to the amount of the customer credit liability derecognized. Customer credits are primarily used within one year of issuance. Costs of Obtaining Contracts Incremental costs to obtain contracts with third-party merchants, such as sales commissions, are deferred and recognized over the expected period of the merchant arrangement, generally from 12 to 18 months. Deferred contract acquisition costs are presented within the following line items of the condensed consolidated balance sheets as of March 31, 2020 and December 31, 2019 (in thousands): March 31, 2020 December 31, 2019 Prepaid expenses and other current assets $ 2,600 $ 2,501 Other non-current assets 8,105 10,133 The amortization of deferred contract acquisition costs is classified within Selling, general and administrative expense in the condensed consolidated statements of operations. For the three months ended March 31, 2020 and 2019, we amortized $4.7 million and $5.4 million of deferred contract acquisition costs and did not recognize any impairment losses in relation to the deferred costs. Allowance for Expected Credit Losses on Accounts Receivables We establish an allowance for expected credit losses on accounts receivables based on identifying the following customer risk characteristics: size, type of customer, and payment terms offered in the normal course of business. Receivables with similar risk characteristics are grouped into pools. For each pool, the Company considers the historical credit loss experience, current economic conditions, bankruptcy filings, published or estimated credit default rates, age of the receivable and any recoveries in assessing the lifetime expected credit losses. The following table summarizes the activity in the allowance for expected credit losses on accounts receivables for the three months ended March 31, 2020 (in thousands): Allowance for Expected Credit Losses Balance as of January 1, 2020 $ 3,693 Change in Provision 3,558 Write-offs (293) Foreign currency translation 130 Balance as of March 31, 2020 $ 7,088 Variable Consideration for Unredeemed Vouchers |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Our income tax provision for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items. Provision (benefit) for income taxes and income (loss) from continuing operations before provision (benefit) for income taxes for the three months ended March 31, 2020 and 2019 was as follows (in thousands): Three Months Ended March 31, 2020 2019 Provision (benefit) for income taxes $ (5,988) $ (3,490) Income (loss) from continuing operations before provision (benefit) for income taxes (216,848) (44,660) Our U.S. Federal income tax rate is 21%. The primary factors impacting the effective tax rate for the three months ended March 31, 2020 and March 31, 2019 were the pretax losses incurred in jurisdictions that have valuation allowances against their net deferred tax assets and the reversals of reserves for uncertain tax positions due to the closure of tax audits. The three months ended March 31, 2020 was also impacted by the carryback of federal net operating losses due to the income tax relief provided by the Coronavirus Aid, Relief, and Economic Security ("CARES") Act. We expect that our consolidated effective tax rate in future periods will continue to differ significantly from the U.S. federal income tax rate as a result of our tax obligations in jurisdictions with profits and valuation allowances in jurisdictions with losses. We are currently undergoing income tax audits in multiple jurisdictions. It is likely that the examination phase of some of those audits will conclude in the next 12 months. There are many factors, including factors outside of our control, which influence the progress and completion of those audits. We are subject to claims for tax assessments by foreign jurisdictions, including a proposed assessment for $110.8 million, inclusive of estimated incremental interest from the original assessment. We believe that the assessment, which primarily relates to transfer pricing on transactions occurring in 2011, is without merit and we intend to vigorously defend ourselves in that matter. In addition to any potential increases in our liabilities for uncertain tax positions from the ultimate resolution of that assessment, we believe that it is reasonably possible that reductions of up to $21.2 million in unrecognized tax benefits may occur within the 12 months following March 31, 2020 upon closing of income tax audits or the expiration of applicable statutes of limitations. In general, it is our practice and intention to reinvest the earnings of our non-U.S. subsidiaries in those operations. Additionally, while we did not incur the deemed repatriation tax, an actual repatriation from our non-U.S. subsidiaries could be subject to foreign and U.S. state income taxes. Aside from limited exceptions for which the related deferred tax liabilities recognized as of March 31, 2020 and December 31, 2019 are immaterial, we do not intend to distribute earnings of foreign subsidiaries for which we have an excess of the financial reporting basis over the tax basis of our investments and therefore have not recorded any deferred taxes related to such amounts. The actual tax cost resulting from a distribution would depend on income tax laws and circumstances at the time of distribution. Determination of the amount of unrecognized deferred tax liability related to the excess of the financial reporting basis over the tax basis of our foreign subsidiaries is not practical due to the complexities associated with the calculation. Groupon uses a cost-sharing arrangement under which controlled members agree to share the costs and risks of developing intangible properties in accordance with their reasonably anticipated share of benefits from the intangibles. On July 24, 2018, the Ninth Circuit Court of Appeals issued an opinion in Altera Corp. v. Commissioner requiring related parties in an intercompany cost-sharing arrangement to share expenses related to stock-based compensation. This opinion reversed an earlier decision of the United States Tax Court. On August 7, 2018, the Ninth Circuit Court of Appeals withdrew its July 24, 2018 opinion. On June 7, 2019, the United States Court of Appeals for the Ninth Circuit reversed the Tax Court decision and ruled that stock-based compensation must be included in the shared pool of expenses. The ruling, which was outside the Circuit Court of Appeals for Groupon, did not have a material impact on our provision for income taxes for the year ended December 31, 2019 and we do not expect that the ruling will have a material impact on our provision for income taxes for the year ending December 31, 2020. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Fair value is defined under U.S. GAAP as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or a liability. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs in valuation methodologies used to measure fair value: Level 1 - Measurements that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - Measurements that include other inputs that are directly or indirectly observable in the marketplace. Level 3 - Measurements derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. These fair value measurements require significant judgment. In determining fair value, we use various valuation approaches within the fair value measurement framework. The valuation methodologies used for our assets and liabilities measured at fair value and their classification in the valuation hierarchy are summarized below: Cash and cash equivalents. Cash equivalents primarily consist of AAA-rated money market funds. We classified cash equivalents as Level 1 due to the short-term nature of these instruments and measured the fair value based on quoted prices in active markets for identical assets. Fair value option investments and available-for-sale securities. We use the discounted cash flow method, which is an income approach, to estimate the fair value of the investees. The key inputs to determining fair values under that approach are cash flow forecasts and discount rates. We also use a market approach valuation technique, which is based on market multiples of guideline companies, to determine the fair value of each entity. As of March 31, 2020, we applied a discount rate of 30% in our discounted cash flow valuation and a revenue multiple of 1.0 in our market approach valuation to determine the fair value of our investment in Nearbuy. The discounted cash flow and market multiple valuations are then evaluated and weighted to determine the amount that is most representative of the fair value of each entity. As of March 31, 2020, we applied weighting to the income approach and market approach of 75% and 25%, respectively, in our valuation of Nearbuy. We also have investments in redeemable preferred shares. We measure the fair value of those available-for-sale securities using the discounted cash flow method. We have classified our fair value option investments and our investments in available-for-sale securities as Level 3 due to the lack of observable market data over fair value inputs such as cash flow projections and discount rates. Increases in projected cash flows and decreases in discount rates contribute to increases in the estimated fair values of the fair value option investments and available-for-sale securities, whereas decreases in projected cash flows and increases in discount rates contribute to decreases in their fair values. Contingent consideration. We are subject to a contingent consideration arrangement to transfer a maximum payout in cash of $2.5 million to the former owners of a business acquired on April 30, 2018. Liabilities for contingent consideration are measured at fair value each reporting period, with the acquisition-date fair value included as part of the consideration transferred in the related business combination and subsequent changes in fair value recorded in earnings within Selling, general and administrative expense on the condensed consolidated statements of operations. We use an income approach to value contingent consideration obligations based on the present value of probability-weighted future cash flows. We classify the contingent consideration liabilities as Level 3 due to the lack of relevant observable market data over fair value inputs such as probability-weighting of payment outcomes. The following tables summarize assets that are measured at fair value on a recurring basis as of March 31, 2020 and December 31, 2019 (in thousands): Fair Value Measurement at Reporting Date Using March 31, 2020 Quoted Prices in Active Markets for Significant Other Significant Assets: Cash equivalents $ 120,000 $ 120,000 $ — $ — Fair value option investments — — — — Liabilities: Contingent consideration 1,219 — — 1,219 Fair Value Measurement at Reporting Date Using December 31, 2019 Quoted Prices in Active Markets for Significant Other Significant Assets: Fair value option investments $ 1,405 $ — $ — $ 1,405 Liabilities: Contingent consideration 1,298 — — 1,298 The following table provides a rollforward of the fair value of recurring Level 3 fair value measurements for the three months ended March 31, 2020 and 2019 (in thousands): Three Months Ended March 31, 2020 2019 Assets Fair value option investments: Beginning Balance $ 1,405 $ 73,902 Total gains (losses) included in earnings (1,405) (41,408) Ending Balance $ — $ 32,494 Unrealized gains (losses) still held (1) $ (1,405) $ (41,408) Available-for-sale securities - Redeemable preferred shares: Beginning Balance $ — $ 10,340 Total gains (losses) included in other comprehensive income (loss) — 54 Ending Balance $ — $ 10,394 Unrealized gains (losses) still held (1) $ — $ 54 Liabilities Contingent Consideration: Beginning Balance $ 1,298 $ 1,529 Total losses (gains) included in earnings 4 22 Foreign currency translation (83) 35 Ending Balance $ 1,219 $ 1,586 Unrealized gains (losses) still held (1) $ 4 $ 22 (1) Represents the unrealized gains or losses recorded in earnings and/or other comprehensive income (loss) during the period for assets and liabilities classified as Level 3 that are still held (or outstanding) at the end of the period. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Certain assets and liabilities are measured at fair value on a nonrecurring basis, including assets that are written down to fair value as a result of an impairment or increased due to an observable price change in an orderly transaction. We recognized $109.5 million in non-cash impairment charges related to goodwill, and $22.4 million in non-cash impairment charges related to long-lived assets during the three months ended March 31, 2020. See Note 2, Goodwill and Long-Lived Assets , for additional information. We recognized $6.7 million in impairment charges to an other equity method investment during the three months ended March 31, 2020. See Note 3, Investments , for additional information. We did not record any other significant nonrecurring fair value measurements after initial recognition for the three months ended March 31, 2020 and 2019. |
INCOME (LOSS) PER SHARE
INCOME (LOSS) PER SHARE | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
INCOME (LOSS) PER SHARE | INCOME (LOSS) PER SHARE Basic net income (loss) per share is computed using the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share is computed using the weighted-average number of common shares and the effect of potentially dilutive securities outstanding during the period. Potentially dilutive securities include stock options, restricted stock units, performance share units, performance bonus awards, ESPP shares, warrants and convertible senior notes. If dilutive, those potentially dilutive securities are reflected in diluted net income (loss) per share using the treasury stock method, except for the convertible senior notes, which are subject to the if-converted method. The following table sets forth the computation of basic and diluted net income (loss) per share of common stock for the three months ended March 31, 2020 and 2019 (in thousands, except share amounts and per share amounts): Three Months Ended March 31, 2020 2019 Basic and diluted net income (loss) per share: Numerator Net income (loss) - continuing operations $ (210,860) $ (41,170) Less: Net income (loss) attributable to noncontrolling interests 3,044 3,479 Net income (loss) attributable to common stockholders - continuing operations (213,904) (44,649) Net income (loss) attributable to common stockholders - discontinued operations 382 2,162 Net income (loss) attributable to common stockholders $ (213,522) $ (42,487) Denominator Weighted-average common shares outstanding 28,365,216 28,504,756 Basic and diluted net income (loss) per share: Continuing operations $ (7.54) $ (1.57) Discontinued operations 0.01 0.08 Basic and diluted net income (loss) per share $ (7.53) $ (1.49) The following weighted-average potentially dilutive instruments are not included in the diluted net income (loss) per share calculations above because they would have had an antidilutive effect on the net income (loss) per share from continuing operations: Three Months Ended March 31, 2020 2019 Restricted stock units 1,657,810 1,354,442 Other stock-based compensation awards 279,243 87,637 Convertible senior notes 2,314,815 2,314,815 Warrants 2,314,815 2,314,815 Total 6,566,683 6,071,709 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The segment information reported in the tables below reflects the operating results that are regularly reviewed by our chief operating decision maker to assess performance and make resource allocation decisions. Our operations are organized into two segments: North America and International. The following table summarizes revenue by reportable segment and category for the three months ended March 31, 2020 and 2019 (in thousands): Three Months Ended March 31, 2020 2019 North America Service revenue: Local $ 142,660 $ 180,377 Goods 3,745 3,127 Travel 6,449 18,941 Total service revenue 152,854 202,445 Product revenue - Goods 82,275 154,720 Total North America revenue (1) 235,129 357,165 International Service revenue: Local 48,668 73,190 Goods 2,233 1,455 Travel 3,273 8,737 Total service revenue 54,174 83,382 Product revenue - Goods 84,847 137,863 Total International revenue (1) $ 139,021 $ 221,245 (1) North America includes revenue from the United States of $230.9 million and $348.8 million for the three months ended March 31, 2020 and 2019. International includes revenue from the United Kingdom of $49.5 million and $81.1 million for the three months ended March 31, 2020 and 2019. There were no other individual countries that represented more than 10% of consolidated total revenue for the three months ended March 31, 2020 and 2019 . Revenue is attributed to individual countries based on the location of the customer. The following table summarizes gross profit by reportable segment and category for the three months ended March 31, 2020 and 2019 (in thousands): Three Months Ended March 31, 2020 2019 North America Service gross profit: Local $ 123,859 $ 161,082 Goods 3,008 2,563 Travel 3,962 15,268 Total service gross profit 130,829 178,913 Product gross profit - Goods 12,942 30,889 Total North America gross profit 143,771 209,802 International Service gross profit: Local 44,524 68,978 Goods 2,016 1,268 Travel 2,744 8,041 Total service gross profit 49,284 78,287 Product gross profit - Goods 8,192 17,927 Total International gross profit $ 57,476 $ 96,214 The following table summarizes income (loss) from operations by reportable segment for the three months ended March 31, 2020 and 2019 (in thousands): Three Months Ended March 31, 2020 2019 Income (loss) from operations (1) : North America $ (31,161) $ 5,336 International (2) (166,700) (3,141) Total income (loss) from operations $ (197,861) $ 2,195 (1) Includes stock-based compensation of $12.9 million and $14.8 million for North America and $1.1 million and $1.6 million for International for the three months ended March 31, 2020 and 2019. (2) Includes goodwill impairment of $109.5 million and long-lived asset impairment of $22.4 million for the three months ended March 31, 2020. See Note 2, Goodwill and Long-Lived Assets , for additional information. The following table summarizes total assets by reportable segment as of March 31, 2020 and December 31, 2019 (in thousands): March 31, 2020 December 31, 2019 Total assets: North America (1) $ 1,150,501 $ 1,045,500 International (1) 132,105 541,243 Consolidated total assets $ 1,282,606 $ 1,586,743 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Restructuring In April 2020, the Board approved multi-phase restructuring actions relating to our previously announced strategic shift and as part of the cost reduction measures we are implementing in response to the impact of COVID-19. We expect to incur total pre-tax charges of up to $105.0 million in connection with these multi-phase restructuring actions. The first phase of these restructuring actions is expected to include an overall reduction of approximately 1,300 positions globally, with the majority of these reductions expected to occur by the end of the second quarter 2020 and the remainder expected to be completed by the end of 2020. We will continue to evaluate our cost structure, including additional workforce reductions and our country footprint, as part of the next phase of our restructuring plan. Reverse Stock Split On June 9, 2020, our stockholders approved amendments to our Restated Certificate of Incorporation to effect a reverse stock split of our shares of common stock, and our Board approved a final reverse stock split ratio of 1-for-20 and a corresponding reduction in the number of authorized shares of our common stock. The reverse stock split became effective on June 10, 2020, and every 20 shares of issued and outstanding common stock were, at the effective time, combined and converted into one issued and outstanding share of common stock. The number of authorized shares of Common Stock was reduced proportionately. Accordingly, the number of authorized shares of common stock decreased from 2,010,000,000 to 100,500,000 and 571,943,153 outstanding shares of our common stock were exchanged for 28,597,158 shares of common stock. Fractional shares were cancelled and stockholders will receive cash in lieu thereof. The par value per share of common stock remains unchanged. A proportionate adjustment was also made to the maximum number of shares of common stock issuable under the 2011 Plan and the ESPP. |
DESCRIPTION OF BUSINESS AND B_2
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements include the accounts of Groupon, Inc. and its wholly-owned subsidiaries, majority-owned subsidiaries over which we exercise control and variable interest entities for which we are the primary beneficiary. All intercompany accounts and transactions have been eliminated in consolidation. Outside stockholders' interests in subsidiaries are shown on the condensed consolidated financial statements as Noncontrolling interests. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Estimates in our financial statements include, but are not limited to, the following: variable consideration from unredeemed vouchers, income taxes, leases, initial valuation and subsequent impairment testing of goodwill, other intangible assets and long-lived assets, investments, receivables, customer refunds and other reserves, contingent liabilities, and the useful lives of property, equipment and software and intangible assets. Actual results could differ materially from those estimates. |
Adoption of New Accounting Standards | Adoption of New Accounting Standards We adopted the guidance in ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses of Financial Instruments ("CECL") on January 1, 2020. This ASU requires entities to measure credit losses for financial assets measured at amortized cost based on expected losses over the lifetime of the asset rather than incurred losses. The adoption of ASU 2016-13 did not have a material impact on the condensed consolidated financial statements. |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table summarizes goodwill activity by segment for the three months ended March 31, 2020 (in thousands): North America International Consolidated Balance as of December 31, 2019 $ 178,685 $ 146,332 $ 325,017 Impairment loss — (109,486) (109,486) Foreign currency translation — (4,276) (4,276) Balance as of March 31, 2020 $ 178,685 $ 32,570 $ 211,255 |
Schedule of Long-Lived Asset Impairment | The following table summarizes long-lived asset impairment by asset type for the three months ended March 31, 2020 (in thousands): Long-Lived Asset Category Impairment Property, equipment and software, net Warehouse equipment $ — Furniture and fixtures 413 Leasehold improvements 2,806 Office equipment 198 Purchased software 14 Computer hardware 2,842 Finance leases — Right-of-use assets - finance leases, net 1,318 Capitalized software 304 Internally-developed software 2,988 Total Property, equipment and software, net $ 10,883 Right-of-use assets - operating leases, net 10,494 Intangible assets, net 103 Other non-current assets 871 Total long-lived assets $ 22,351 |
Schedule of Intangible Assets | The following table summarizes intangible assets as of March 31, 2020 and December 31, 2019 (in thousands): March 31, 2020 December 31, 2019 Intangible Asset Category Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value Customer relationships $ 16,200 $ 16,200 $ — $ 16,200 $ 16,200 $ — Merchant relationships 20,957 8,697 12,260 22,193 8,268 13,925 Trade names 9,400 7,471 1,929 9,558 7,369 2,189 Developed technology 2,300 1,556 744 3,651 2,685 966 Patents 23,627 18,674 4,953 23,021 18,167 4,854 Other intangible assets 26,701 13,491 13,210 26,115 12,757 13,358 Total $ 99,185 $ 66,089 $ 33,096 $ 100,738 $ 65,446 $ 35,292 |
Schedule of Estimated Future Amortization Expense | As of March 31, 2020, estimated future amortization expense related to intangible assets is as follows (in thousands): Remaining amounts in 2020 $ 6,850 2021 7,598 2022 7,007 2023 5,869 2024 2,359 Thereafter 3,413 Total $ 33,096 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Schedule of Equity Method Investments [Abstract] | |
Summary of Investments | The following table summarizes investments as of March 31, 2020 and December 31, 2019 (dollars in thousands): March 31, 2020 Percent Ownership of Voting Stock December 31, 2019 Percent Ownership of Voting Stock Available-for-sale securities - redeemable preferred shares $ — 19% to 25% $ — 19% to 25% Fair value option investments — 10% to 19% 1,405 10% to 19% Other equity investments 33,699 1% to 19% 75,171 1% to 19% Total investments $ 33,699 $ 76,576 |
Schedule of Gains and Losses due to Changes in Fair Value of Investments | The following table summarizes gains and losses due to changes in fair value of those investments for the three months ended March 31, 2020 and 2019 (in thousands): Three Months Ended March 31, 2020 2019 Monster LP $ — $ (41,459) Nearbuy (1,405) 51 Total $ (1,405) $ (41,408) |
SUPPLEMENTAL CONSOLIDATED BAL_2
SUPPLEMENTAL CONSOLIDATED BALANCE SHEETS AND STATEMENTS OF OPERATIONS INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Supplemental Consolidated Balance Sheet & Statement of Operations Information [Abstract] | |
Schedule of Other Income (Expense) | The following table summarizes other income (expense), net for the three months ended March 31, 2020 and 2019 (in thousands): Three Months Ended March 31, 2020 2019 Interest income $ 2,556 $ 1,936 Interest expense (6,958) (5,691) Changes in fair value of investments (1,405) (41,408) Foreign currency gains (losses), net (6,503) (1,679) Impairment of investment (6,684) — Other 7 (13) Other income (expense), net $ (18,987) $ (46,855) |
Schedule of Prepaid and Other Current Assets | The following table summarizes prepaid expenses and other current assets as of March 31, 2020 and December 31, 2019 (in thousands): March 31, 2020 December 31, 2019 Merchandise inventories $ 12,932 $ 25,426 Prepaid expenses 27,521 27,077 Income taxes receivable 10,335 4,791 Other 16,315 24,779 Total prepaid expenses and other current assets $ 67,103 $ 82,073 |
Schedule of Other Non-Current Assets | The following table summarizes other non-current assets as of March 31, 2020 and December 31, 2019 (in thousands): March 31, 2020 December 31, 2019 Deferred income tax $ 4,625 $ 4,829 Debt issue costs, net 2,033 2,156 Deferred commissions expense 8,105 10,133 Deferred cloud implementation costs 10,262 7,372 Other 3,920 4,115 Total other non-current assets $ 28,945 $ 28,605 |
Schedule of Accrued Merchant and Supplier Payables | The following table summarizes accrued merchant and supplier payables as of March 31, 2020 and December 31, 2019 (in thousands): March 31, 2020 December 31, 2019 Accrued merchant payables $ 227,216 $ 366,573 Accrued supplier payables (1) 83,847 174,367 Total accrued merchant and supplier payables $ 311,063 $ 540,940 (1) Amounts include payables to suppliers of inventories and providers of shipping and fulfillment services. |
Schedule of Accrued Expenses and Other Current Liabilities | The following table summarizes accrued expenses and other current liabilities as of March 31, 2020 and December 31, 2019 (in thousands): March 31, 2020 December 31, 2019 Refunds reserve $ 27,694 $ 22,002 Compensation and benefits 41,761 49,009 Accrued marketing 12,278 41,110 Customer credits 24,559 13,764 Income taxes payable 2,763 5,044 Deferred revenue 18,501 17,951 Operating and finance lease obligations 38,328 40,768 Other 76,213 70,544 Total accrued expenses and other current liabilities $ 242,097 $ 260,192 |
Schedule of Other Non-current Liabilities | The following table summarizes other non-current liabilities as of March 31, 2020 and December 31, 2019 (in thousands): March 31, 2020 December 31, 2019 Contingent income tax liabilities $ 27,077 $ 30,121 Finance lease obligations 3,843 5,831 Deferred income taxes 3,682 3,903 Other 5,071 5,132 Total other non-current liabilities $ 39,673 $ 44,987 |
FINANCING ARRANGEMENTS (Tables)
FINANCING ARRANGEMENTS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Notes | The carrying amount of the Notes consisted of the following as of March 31, 2020 and December 31, 2019 (in thousands): March 31, 2020 December 31, 2019 Liability component: Principal amount $ 250,000 $ 250,000 Less: debt discount (31,615) (35,131) Net carrying amount of liability component $ 218,385 $ 214,869 Net carrying amount of equity component $ 67,014 $ 67,014 |
Schedule of Convertible Debt Interest Expense | During the three months ended March 31, 2020 and 2019, we recognized interest costs on the Notes as follows (in thousands): Three Months Ended March 31, 2020 2019 Contractual interest (3.25% of the principal amount per annum) $ 2,032 $ 2,032 Amortization of debt discount 3,516 3,175 Total $ 5,548 $ 5,207 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Payments Under Contractual Obligations | Future payments under these new contractual obligations are as follows (in thousands): Remaining in 2020 $ 3,066 2021 13,103 2022 13,842 2023 (1) 20,987 Total $ 50,998 (1) Includes $8.0 million in cloud computing arrangement costs for which the timing of settlement is based on usage. We expect to incur those costs over the three |
STOCKHOLDERS' EQUITY AND COMP_2
STOCKHOLDERS' EQUITY AND COMPENSATION ARRANGEMENTS Tables (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement, Activity | The stock-based compensation expense related to stock awards issued under the Plans and acquisition-related awards are presented within the following line items of the condensed consolidated statements of operations for the three months ended March 31, 2020 and 2019 (in thousands): Three Months Ended March 31, 2020 2019 Cost of revenue $ 259 $ 378 Marketing 874 1,425 Selling, general and administrative 12,882 14,608 Total stock-based compensation expense $ 14,015 $ 16,411 |
Share-based Payment Arrangement, Restricted Stock Unit, Activity | The table below summarizes restricted stock unit activity under the Plans for the three months ended March 31, 2020: Restricted Stock Units Weighted-Average Grant Date Fair Value (per unit) Unvested at December 31, 2019 1,527,014 $ 74.80 Granted 524,829 43.00 Vested (77,269) 86.20 Forfeited (68,454) 73.80 Unvested at March 31, 2020 1,906,120 65.60 |
Share-based Compensation, Performance and Market-Based Performance Shares Units Activity | The table below summarizes Performance Share Unit activity under the Plans for the three months ended March 31, 2020: Performance Share Units Weighted-Average Grant Date Fair Value (per unit) Market-based Performance Share Units Weighted-Average Grant Date Fair Value (per unit) Unvested at December 31, 2019 203,853 $ 79.76 341,002 $ 60.60 Granted — — — — Vested (88,436) 79.44 — — Forfeited (9,534) 76.42 — — Unvested at March 31, 2020 105,883 80.32 341,002 60.60 Maximum shares issuable upon vesting at March 31, 2020 105,883 341,002 |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Revenue, by Arrangement, Disclosure | The following table summarizes the activity in the liability for customer credits for the three months ended March 31, 2020 (in thousands): Customer Credits Balance as of December 31, 2019 $ 13,764 Credits issued 38,128 Credits redeemed (1) (23,357) Breakage revenue recognized (3,701) Foreign currency translation (275) Balance as of March 31, 2020 $ 24,559 (1) Customer credits can be redeemed through our online marketplaces for goods or services provided by a third-party merchant or for merchandise inventory sold by us. When customer credits are redeemed for goods or services provided by a third-party merchant, service revenue is recognized on a net basis as the difference between the carrying amount of the customer credit liability derecognized and the amount due to the merchant for the related transaction. When customer credits are redeemed for merchandise inventory sold by us, product revenue is recognized on a gross basis equal to the amount of the customer credit liability derecognized. Customer credits are primarily used within one year of issuance. |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block] | Incremental costs to obtain contracts with third-party merchants, such as sales commissions, are deferred and recognized over the expected period of the merchant arrangement, generally from 12 to 18 months. Deferred contract acquisition costs are presented within the following line items of the condensed consolidated balance sheets as of March 31, 2020 and December 31, 2019 (in thousands): March 31, 2020 December 31, 2019 Prepaid expenses and other current assets $ 2,600 $ 2,501 Other non-current assets 8,105 10,133 The amortization of deferred contract acquisition costs is classified within Selling, general and administrative expense in the condensed consolidated statements of operations. For the three months ended March 31, 2020 and 2019, we amortized $4.7 million and $5.4 million of deferred contract acquisition costs and did not recognize any impairment losses in relation to the deferred costs. Allowance for Expected Credit Losses on Accounts Receivables We establish an allowance for expected credit losses on accounts receivables based on identifying the following customer risk characteristics: size, type of customer, and payment terms offered in the normal course of business. Receivables with similar risk characteristics are grouped into pools. For each pool, the Company considers the historical credit loss experience, current economic conditions, bankruptcy filings, published or estimated credit default rates, age of the receivable and any recoveries in assessing the lifetime expected credit losses. The following table summarizes the activity in the allowance for expected credit losses on accounts receivables for the three months ended March 31, 2020 (in thousands): Allowance for Expected Credit Losses Balance as of January 1, 2020 $ 3,693 Change in Provision 3,558 Write-offs (293) Foreign currency translation 130 Balance as of March 31, 2020 $ 7,088 |
INCOME TAXES Tables (Tables)
INCOME TAXES Tables (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Three Months Ended March 31, 2020 2019 Provision (benefit) for income taxes $ (5,988) $ (3,490) Income (loss) from continuing operations before provision (benefit) for income taxes (216,848) (44,660) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables summarize assets that are measured at fair value on a recurring basis as of March 31, 2020 and December 31, 2019 (in thousands): Fair Value Measurement at Reporting Date Using March 31, 2020 Quoted Prices in Active Markets for Significant Other Significant Assets: Cash equivalents $ 120,000 $ 120,000 $ — $ — Fair value option investments — — — — Liabilities: Contingent consideration 1,219 — — 1,219 Fair Value Measurement at Reporting Date Using December 31, 2019 Quoted Prices in Active Markets for Significant Other Significant Assets: Fair value option investments $ 1,405 $ — $ — $ 1,405 Liabilities: Contingent consideration 1,298 — — 1,298 |
Fair Value, Assets and Liabilities, Reconciliation of Level 3 Inputs | The following table provides a rollforward of the fair value of recurring Level 3 fair value measurements for the three months ended March 31, 2020 and 2019 (in thousands): Three Months Ended March 31, 2020 2019 Assets Fair value option investments: Beginning Balance $ 1,405 $ 73,902 Total gains (losses) included in earnings (1,405) (41,408) Ending Balance $ — $ 32,494 Unrealized gains (losses) still held (1) $ (1,405) $ (41,408) Available-for-sale securities - Redeemable preferred shares: Beginning Balance $ — $ 10,340 Total gains (losses) included in other comprehensive income (loss) — 54 Ending Balance $ — $ 10,394 Unrealized gains (losses) still held (1) $ — $ 54 Liabilities Contingent Consideration: Beginning Balance $ 1,298 $ 1,529 Total losses (gains) included in earnings 4 22 Foreign currency translation (83) 35 Ending Balance $ 1,219 $ 1,586 Unrealized gains (losses) still held (1) $ 4 $ 22 (1) Represents the unrealized gains or losses recorded in earnings and/or other comprehensive income (loss) during the period for assets and liabilities classified as Level 3 that are still held (or outstanding) at the end of the period. |
INCOME (LOSS) PER SHARE (Tables
INCOME (LOSS) PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Income (Loss) Per Share | The following table sets forth the computation of basic and diluted net income (loss) per share of common stock for the three months ended March 31, 2020 and 2019 (in thousands, except share amounts and per share amounts): Three Months Ended March 31, 2020 2019 Basic and diluted net income (loss) per share: Numerator Net income (loss) - continuing operations $ (210,860) $ (41,170) Less: Net income (loss) attributable to noncontrolling interests 3,044 3,479 Net income (loss) attributable to common stockholders - continuing operations (213,904) (44,649) Net income (loss) attributable to common stockholders - discontinued operations 382 2,162 Net income (loss) attributable to common stockholders $ (213,522) $ (42,487) Denominator Weighted-average common shares outstanding 28,365,216 28,504,756 Basic and diluted net income (loss) per share: Continuing operations $ (7.54) $ (1.57) Discontinued operations 0.01 0.08 Basic and diluted net income (loss) per share $ (7.53) $ (1.49) |
Schedule of Weighted-Average Potentially Dilutive Instruments | The following weighted-average potentially dilutive instruments are not included in the diluted net income (loss) per share calculations above because they would have had an antidilutive effect on the net income (loss) per share from continuing operations: Three Months Ended March 31, 2020 2019 Restricted stock units 1,657,810 1,354,442 Other stock-based compensation awards 279,243 87,637 Convertible senior notes 2,314,815 2,314,815 Warrants 2,314,815 2,314,815 Total 6,566,683 6,071,709 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Reportable Segment | The following table summarizes revenue by reportable segment and category for the three months ended March 31, 2020 and 2019 (in thousands): Three Months Ended March 31, 2020 2019 North America Service revenue: Local $ 142,660 $ 180,377 Goods 3,745 3,127 Travel 6,449 18,941 Total service revenue 152,854 202,445 Product revenue - Goods 82,275 154,720 Total North America revenue (1) 235,129 357,165 International Service revenue: Local 48,668 73,190 Goods 2,233 1,455 Travel 3,273 8,737 Total service revenue 54,174 83,382 Product revenue - Goods 84,847 137,863 Total International revenue (1) $ 139,021 $ 221,245 (1) North America includes revenue from the United States of $230.9 million and $348.8 million for the three months ended March 31, 2020 and 2019. International includes revenue from the United Kingdom of $49.5 million and $81.1 million for the three months ended March 31, 2020 and 2019. There were no other individual countries that represented more than 10% of consolidated total revenue for the three months ended March 31, 2020 and 2019 |
Schedule of Gross Profit by Reportable Segment | The following table summarizes gross profit by reportable segment and category for the three months ended March 31, 2020 and 2019 (in thousands): Three Months Ended March 31, 2020 2019 North America Service gross profit: Local $ 123,859 $ 161,082 Goods 3,008 2,563 Travel 3,962 15,268 Total service gross profit 130,829 178,913 Product gross profit - Goods 12,942 30,889 Total North America gross profit 143,771 209,802 International Service gross profit: Local 44,524 68,978 Goods 2,016 1,268 Travel 2,744 8,041 Total service gross profit 49,284 78,287 Product gross profit - Goods 8,192 17,927 Total International gross profit $ 57,476 $ 96,214 |
Schedule of Operating Income by Reportable Segment | The following table summarizes income (loss) from operations by reportable segment for the three months ended March 31, 2020 and 2019 (in thousands): Three Months Ended March 31, 2020 2019 Income (loss) from operations (1) : North America $ (31,161) $ 5,336 International (2) (166,700) (3,141) Total income (loss) from operations $ (197,861) $ 2,195 (1) Includes stock-based compensation of $12.9 million and $14.8 million for North America and $1.1 million and $1.6 million for International for the three months ended March 31, 2020 and 2019. (2) Includes goodwill impairment of $109.5 million and long-lived asset impairment of $22.4 million for the three months ended March 31, 2020. See Note 2, Goodwill and Long-Lived Assets , for additional information. |
Schedule of Total Assets by Segment | The following table summarizes total assets by reportable segment as of March 31, 2020 and December 31, 2019 (in thousands): March 31, 2020 December 31, 2019 Total assets: North America (1) $ 1,150,501 $ 1,045,500 International (1) 132,105 541,243 Consolidated total assets $ 1,282,606 $ 1,586,743 |
DESCRIPTION OF BUSINESS AND B_3
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Details) | 3 Months Ended |
Mar. 31, 2020segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | 2 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset amortization expense | $ 2,500 | $ 3,900 | |
Goodwill | 211,255 | $ 325,017 | |
EMEA | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | $ 26,300 | ||
Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, useful life | 1 year | ||
Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, useful life | 10 years |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Goodwill (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020USD ($)segment | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | |
Goodwill [Line Items] | |||
Number of reporting units | segment | 3 | ||
Goodwill | $ 211,255 | $ 325,017 | |
Foreign currency translation | (4,276) | ||
Non-cash impairment of goodwill | (109,486) | $ 0 | |
North America | |||
Goodwill [Line Items] | |||
Goodwill | 178,685 | 178,685 | |
Foreign currency translation | 0 | ||
Non-cash impairment of goodwill | 0 | ||
International | |||
Goodwill [Line Items] | |||
Goodwill | 32,570 | $ 146,332 | |
Foreign currency translation | (4,276) | ||
Non-cash impairment of goodwill | $ (109,486) |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Long-Lived Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Impairment of long-lived assets | $ 22,351 | $ 0 |
Warehouse equipment | ||
Impairment of long-lived assets | 0 | |
Furniture and fixtures | ||
Impairment of long-lived assets | 413 | |
Leasehold improvements | ||
Impairment of long-lived assets | 2,806 | |
Office equipment | ||
Impairment of long-lived assets | 198 | |
Purchased software | ||
Impairment of long-lived assets | 14 | |
Computer hardware | ||
Impairment of long-lived assets | 2,842 | |
Finance leases | ||
Impairment of long-lived assets | 0 | |
Right-of-use assets - finance leases, net | ||
Impairment of long-lived assets | 1,318 | |
Capitalized software | ||
Impairment of long-lived assets | 304 | |
Internally-developed software | ||
Impairment of long-lived assets | 2,988 | |
Total Property, equipment and software, net | ||
Impairment of long-lived assets | 10,883 | |
Right-of-use assets - operating leases, net | ||
Impairment of long-lived assets | 10,494 | |
Intangible assets, net | ||
Impairment of long-lived assets | 103 | |
Other non-current assets | ||
Impairment of long-lived assets | $ 871 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 99,185 | $ 100,738 |
Accumulated Amortization | 66,089 | 65,446 |
Net Carrying Value | 33,096 | 35,292 |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 16,200 | 16,200 |
Accumulated Amortization | 16,200 | 16,200 |
Net Carrying Value | 0 | 0 |
Merchant relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 20,957 | 22,193 |
Accumulated Amortization | 8,697 | 8,268 |
Net Carrying Value | 12,260 | 13,925 |
Trade names | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 9,400 | 9,558 |
Accumulated Amortization | 7,471 | 7,369 |
Net Carrying Value | 1,929 | 2,189 |
Developed technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 2,300 | 3,651 |
Accumulated Amortization | 1,556 | 2,685 |
Net Carrying Value | 744 | 966 |
Patents | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 23,627 | 23,021 |
Accumulated Amortization | 18,674 | 18,167 |
Net Carrying Value | 4,953 | 4,854 |
Other intangible assets | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 26,701 | 26,115 |
Accumulated Amortization | 13,491 | 12,757 |
Net Carrying Value | $ 13,210 | $ 13,358 |
GOODWILL AND OTHER INTANGIBLE_7
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Estimated Future Amortization Expense (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remaining amounts in 2020 | $ 6,850 |
2021 | 7,598 |
2022 | 7,007 |
2023 | 5,869 |
2024 | 2,359 |
Thereafter | 3,413 |
Total | $ 33,096 |
INVESTMENTS - Summary of Invest
INVESTMENTS - Summary of Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||
Investments (including $0 and $1,405 at March 31, 2020 and December 31, 2019, at fair value) | $ 33,699 | $ 76,576 | |
Gain (loss) from changes in fair value | (1,405) | $ (41,408) | |
Other than temporary impairments on equity method investments | 6,700 | ||
Redeemable Preferred Stock | |||
Schedule of Equity Method Investments [Line Items] | |||
Fair value | 0 | 0 | |
Fair Value Option Investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | 0 | 1,405 | |
Other Equity Investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | 33,699 | $ 75,171 | |
Proceeds from sale of other equity investment | 34,000 | ||
Other than temporary impairments on equity method investments | $ 6,700 | ||
Minimum | |||
Schedule of Equity Method Investments [Line Items] | |||
Available for sale securities, percent ownership of voting stock | 19.00% | 19.00% | |
Minimum | Fair Value Option Investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investment, percent ownership of voting stock | 10.00% | 10.00% | |
Minimum | Other Equity Investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investment, percent ownership of voting stock | 1.00% | 1.00% | |
Maximum | |||
Schedule of Equity Method Investments [Line Items] | |||
Available for sale securities, percent ownership of voting stock | 25.00% | 25.00% | |
Maximum | Fair Value Option Investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investment, percent ownership of voting stock | 19.00% | 19.00% | |
Maximum | Other Equity Investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investment, percent ownership of voting stock | 19.00% | 19.00% |
INVESTMENTS - Additional Inform
INVESTMENTS - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||||
Gain (loss) from changes in fair value | $ (1,405) | $ (41,408) | |||
Other than temporary impairments on equity method investments | 6,700 | ||||
Nearbuy | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments | 0 | $ 1,400 | |||
Gain (loss) from changes in fair value | $ (1,405) | 51 | |||
Discount rate | 30.00% | 20.00% | |||
Monster LP | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments | $ 0 | $ 0 | |||
Gain (loss) from changes in fair value | 0 | $ (27,900) | $ (41,459) | ||
Discount rate | 26.00% | 21.00% | |||
Other Equity Investments | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments | 33,699 | $ 75,171 | |||
Other than temporary impairments on equity method investments | $ 6,700 | ||||
Percentage of other equity investment shares sold in transaction | 50.00% | ||||
Proceeds from sale of other equity investment | $ 34,000 |
SUPPLEMENTAL CONSOLIDATED BAL_3
SUPPLEMENTAL CONSOLIDATED BALANCE SHEETS AND STATEMENTS OF OPERATIONS INFORMATION - Schedule of Other Income (Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Supplemental Consolidated Balance Sheet & Statement of Operations Information [Abstract] | ||
Interest income | $ 2,556 | $ 1,936 |
Interest expense | (6,958) | (5,691) |
Changes in fair value of investments | (1,405) | (41,408) |
Foreign currency gains (losses), net | (6,503) | (1,679) |
Impairments of investments | (6,684) | 0 |
Other | (7) | 13 |
Other income (expense), net | $ (18,987) | $ (46,855) |
SUPPLEMENTAL CONSOLIDATED BAL_4
SUPPLEMENTAL CONSOLIDATED BALANCE SHEETS AND STATEMENTS OF OPERATIONS INFORMATION - Schedule of Prepaid and Other Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Supplemental Consolidated Balance Sheet & Statement of Operations Information [Abstract] | ||
Merchandise inventories | $ 12,932 | $ 25,426 |
Prepaid expenses | 27,521 | 27,077 |
Income taxes receivable | 10,335 | 4,791 |
Other | 16,315 | 24,779 |
Total prepaid expenses and other current assets | $ 67,103 | $ 82,073 |
SUPPLEMENTAL CONSOLIDATED BAL_5
SUPPLEMENTAL CONSOLIDATED BALANCE SHEETS AND STATEMENTS OF OPERATIONS INFORMATION - Schedule of Other Non-Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Text Block [Abstract] | ||
Deferred income tax | $ 4,625 | $ 4,829 |
Debt issue costs, net | 2,033 | 2,156 |
Deferred commissions expense | 8,105 | 10,133 |
Deferred cloud implementation costs | 10,262 | 7,372 |
Other | 3,920 | 4,115 |
Total other non-current assets | $ 28,945 | $ 28,605 |
SUPPLEMENTAL CONSOLIDATED BAL_6
SUPPLEMENTAL CONSOLIDATED BALANCE SHEETS AND STATEMENTS OF OPERATIONS INFORMATION - Schedule of Accrued Merchant and Supplier Payables (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Supplemental Consolidated Balance Sheet & Statement of Operations Information [Abstract] | ||
Accrued merchant payables | $ 227,216 | $ 366,573 |
Accrued supplier payables | 83,847 | 174,367 |
Total accrued merchant and supplier payables | $ 311,063 | $ 540,940 |
SUPPLEMENTAL CONSOLIDATED BAL_7
SUPPLEMENTAL CONSOLIDATED BALANCE SHEETS AND STATEMENTS OF OPERATIONS INFORMATION - Schedule of Accrued Expense and Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Supplemental Consolidated Balance Sheet & Statement of Operations Information [Abstract] | ||
Refunds reserve | $ 27,694 | $ 22,002 |
Compensation and benefits | 41,761 | 49,009 |
Accrued marketing | 12,278 | 41,110 |
Customer credits | 24,559 | 13,764 |
Income taxes payable | 2,763 | 5,044 |
Deferred revenue | 18,501 | 17,951 |
Operating and finance lease obligations | 38,328 | 40,768 |
Other | 76,213 | 70,544 |
Total accrued expenses and other current liabilities | $ 242,097 | $ 260,192 |
SUPPLEMENTAL CONSOLIDATED BAL_8
SUPPLEMENTAL CONSOLIDATED BALANCE SHEETS AND STATEMENTS OF OPERATIONS INFORMATION - Schedule of Other Non-current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Supplemental Consolidated Balance Sheet & Statement of Operations Information [Abstract] | ||
Contingent income tax liabilities | $ 27,077 | $ 30,121 |
Finance lease obligations | 3,843 | 5,831 |
Deferred income taxes | 3,682 | 3,903 |
Other | 5,071 | 5,132 |
Total other non-current liabilities | $ 39,673 | $ 44,987 |
FINANCING ARRANGEMENTS - Conver
FINANCING ARRANGEMENTS - Convertible Senior Notes (Details) - USD ($) | Apr. 04, 2016 | Mar. 31, 2018 | Sep. 30, 2016 | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | |||||
Net proceeds | $ 243,200,000 | ||||
Stated interest rate | 3.25% | ||||
Principal amount converted initially | $ 1,000 | ||||
Number of shares converted (in shares) | 9.25926 | ||||
Closing price of stock, trigger price (in usd per share) | 150.00% | ||||
Number of threshold trading days | 20 | ||||
Consecutive trading days | 30 | ||||
Effective interest rate | 9.75% | ||||
Debt related commitment fees and issuance costs | $ 6,800,000 | ||||
Debt issuance costs | $ 4,800,000 | $ 31,615,000 | $ 35,131,000 | ||
Equity component of convertible debt | $ 2,000,000 | ||||
Estimated fair value of convertible notes | $ 248,400,000 | $ 262,700,000 | |||
Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Conversion price (in usd per share) | $ 108 | ||||
Share Price | $ 19.60 | ||||
Senior Notes | 2019 Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount of convertible senior notes | $ 250,000,000 |
FINANCING ARRANGEMENTS - Schedu
FINANCING ARRANGEMENTS - Schedule of Notes (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Apr. 04, 2016 |
Debt Instrument [Line Items] | |||
Principal amount | $ 250,000 | $ 250,000 | |
Less: debt discount | (31,615) | (35,131) | $ (4,800) |
Net carrying amount of liability component | 218,385 | 214,869 | |
Additional Paid-In Capital | |||
Debt Instrument [Line Items] | |||
Net carrying amount of equity component | $ 67,014 | $ 67,014 |
FINANCING ARRANGEMENTS - Sche_2
FINANCING ARRANGEMENTS - Schedule of Convertible Debt Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Apr. 04, 2016 | |
Debt Disclosure [Abstract] | |||
Stated interest rate | 3.25% | ||
Contractual interest (3.25% of the principal amount per annum) | $ 2,032 | $ 2,032 | |
Amortization of debt discount | 3,516 | 3,175 | |
Total | $ 5,548 | $ 5,207 |
FINANCING ARRANGEMENTS - Note H
FINANCING ARRANGEMENTS - Note Hedges and Warrants (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | May 09, 2016 | Mar. 31, 2018 | Sep. 30, 2016 | Apr. 04, 2016 |
Debt Disclosure [Abstract] | ||||
Cost of convertible note hedges | $ 59.1 | |||
Number of shares available to be purchased (in shares) | 2.3 | |||
Strike price (in usd per share) | $ 108 | |||
Cash proceeds from issuance of warrants | $ 35.5 | |||
Exercise price (in usd per share) | $ 170 |
FINANCING ARRANGEMENTS - Revolv
FINANCING ARRANGEMENTS - Revolving Credit Facility (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |||
Apr. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Apr. 30, 2019 | Apr. 04, 2016 | |
Debt Instrument [Line Items] | |||||
Stated interest rate | 3.25% | ||||
Debt issuance costs | $ 2,400 | ||||
2019 Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | 400,000 | ||||
Unrestricted cash covenant amount | 250,000 | ||||
Amount of accounts held with lenders | 125,000 | ||||
Outstanding amount of lines of credit | 18,900 | $ 18,100 | |||
Amount of borrowings | $ 150,000 | ||||
2019 Credit Agreement | Subsequent Event | |||||
Debt Instrument [Line Items] | |||||
Proceeds from Lines of Credit | $ 50,000 | ||||
2016 Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 250,000 | ||||
Minimum | 2019 Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Unused commitment fee percentage | 0.25% | ||||
Maximum | 2019 Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Unused commitment fee percentage | 0.35% | ||||
Letter of Credit | 2019 Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 75,000 | ||||
Letter of Credit | Base Rate | Minimum | 2019 Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 0.50% | ||||
Letter of Credit | Base Rate | Maximum | 2019 Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 2.00% | ||||
Geographic Distribution, Domestic | 2019 Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Outstanding stock percentage | 100.00% | ||||
Geographic Distribution, Foreign | 2019 Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Outstanding stock percentage | 65.00% |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 09, 2017 | |
Gain on expiration of indemnity liability | $ 0.4 | |
Indemnification liabilities | 2.8 | |
Maximum exposure of indemnification liability | $ 11.7 | |
Groupon Latin America | ||
Estimated indemnification liability | $ 5.4 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Schedule of Future Payments Under Contractual Obligations (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Recorded Unconditional Purchase Obligation [Line Items] | |
Remaining in 2020 | $ 3,066 |
2021 | 13,103 |
2022 | 13,842 |
2023 | 20,987 |
Total | $ 50,998 |
Contract term | 3 years |
Cloud Computing Arrangement Costs | |
Recorded Unconditional Purchase Obligation [Line Items] | |
2023 | $ 8,000 |
STOCKHOLDERS' EQUITY AND COMP_3
STOCKHOLDERS' EQUITY AND COMPENSATION ARRANGEMENTS Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Equity, Class of Treasury Stock [Line Items] | |||
Common stock, shares authorized (in shares) | 100,500,000 | 100,500,000 | |
Authorized repurchase amount | $ 300 | ||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 245,000,000 | ||
Common Stock, Capital Shares Reserved for Future Issuance | 3,201,169 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 105,883 | ||
Share-based Compensation Arrangement By Share-based Payment Award, Fair Value Assumptions, Cost Of Equity Rate | 12.80% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 100,500,000 | ||
Employee Stock | |||
Equity, Class of Treasury Stock [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 1,000,000 | ||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 28,621 | 35,964 | |
Minimum | Restricted Stock Units (RSUs) | |||
Equity, Class of Treasury Stock [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||
Maximum | Restricted Stock Units (RSUs) | |||
Equity, Class of Treasury Stock [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||
Common Stock | |||
Equity, Class of Treasury Stock [Line Items] | |||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 28,621 | 35,964 |
STOCKHOLDERS' EQUITY AND COMP_4
STOCKHOLDERS' EQUITY AND COMPENSATION ARRANGEMENTS Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Payment Arrangement, Amount Capitalized | $ 1,100 | $ 1,300 |
Share-based Payment Arrangement, Noncash Expense | 14,015 | 16,411 |
Cost of Sales [Member] | ||
Share-based Payment Arrangement, Noncash Expense | 259 | 378 |
Selling and Marketing Expense [Member] | ||
Share-based Payment Arrangement, Noncash Expense | 874 | 1,425 |
Selling, General and Administrative Expenses [Member] | ||
Share-based Payment Arrangement, Noncash Expense | 12,882 | $ 14,608 |
Restricted Stock Units (RSUs) | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 92,400 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 5 months 4 days |
STOCKHOLDERS' EQUITY AND COMP_5
STOCKHOLDERS' EQUITY AND COMPENSATION ARRANGEMENTS RSU (Details) - Restricted stock units - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 1,906,120 | 1,527,014 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 65.60 | $ 74.80 |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 524,829 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 77,269 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 43 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Weighted Average Grant Date Fair Value | $ 86.20 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (68,454) | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Weighted Average Grant Date Fair Value | $ 73.80 | |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year |
STOCKHOLDERS' EQUITY AND COMP_6
STOCKHOLDERS' EQUITY AND COMPENSATION ARRANGEMENTS Stock Options (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Common stock, shares authorized (in shares) | 100,500,000 | 100,500,000 | |
Share-based Payment Arrangement, Amount Capitalized | $ 1.1 | $ 1.3 | |
Employee Stock | |||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 28,621 | 35,964 | |
Minimum [Member] | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||
Maximum | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||
Common Stock | |||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 28,621 | 35,964 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 625 |
STOCKHOLDERS' EQUITY AND COMP_7
STOCKHOLDERS' EQUITY AND COMPENSATION ARRANGEMENTS PSU (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share Price | $ 120 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Weighted Average Volatility Rate | 49.80% | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 105,883 | |
Share-based Compensation Arrangement By Share-based Payment Award, Fair Value Assumptions, Cost Of Equity Rate | 12.80% | |
Share-based Payment Arrangement, Expense | $ 300 | |
Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 4,700 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years 1 month 13 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 105,883 | 203,853 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 80.32 | $ 79.76 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (88,436) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 79.44 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (9,534) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 76.42 | |
Share-based Payment Arrangement, Nonvested Award, | $ 4,800 | |
Share-based Payment Arrangement, Nonvested Award, Nongranted Award, Cost Not yet Recognized, Period for Recognition | 10 months 2 days | |
Market-based Performance Share Units [Domain] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 341,002 | 341,002 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 60.60 | $ 60.60 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 0 |
REVENUE RECOGNITION - Additiona
REVENUE RECOGNITION - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |||
Customer credits, beginning balance | $ 13,764 | ||
Credits issued | 38,128 | ||
Credits redeemed | (23,357) | ||
Breakage revenue recognized | (3,701) | ||
Foreign currency translation | 275 | ||
Customer credits, ending balance | 24,559 | ||
Deferred revenue | 18,500 | $ 18,000 | |
Revenue recognized previously recorded in deferred revenue | 17,700 | ||
Amortization of deferred contract costs | 4,700 | $ 5,400 | |
Revenue constrained and to be recognized in future periods | $ 16,300 | $ 14,600 |
REVENUE RECOGNITION - Deferred
REVENUE RECOGNITION - Deferred contract acquisition costs (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Minimum | ||
Capitalized Contract Cost [Line Items] | ||
Deferred contract acquisition cost recognition period | 12 months | |
Maximum | ||
Capitalized Contract Cost [Line Items] | ||
Deferred contract acquisition cost recognition period | 18 months | |
Prepaid expenses and other current assets | ||
Capitalized Contract Cost [Line Items] | ||
Deferred contract acquisition costs | $ 2,600 | $ 2,501 |
Other non-current assets | ||
Capitalized Contract Cost [Line Items] | ||
Deferred contract acquisition costs | $ 8,105 | $ 10,133 |
REVENUE RECOGNITION - Allowance
REVENUE RECOGNITION - Allowance for Credit Losses (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Allowance for credit loss on accounts receivable, beginning balance | $ 3,693 |
Change in Provision | 3,558 |
Foreign currency translation | 130 |
Allowance for credit loss on accounts receivable, ending balance | $ 7,088 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Provision (benefit) for income taxes | $ (5,988) | $ (3,490) |
Income (loss) from continuing operations before provision (benefit) for income taxes | (216,848) | $ (44,660) |
International | ||
Proposed assessment for claims | 110,800 | |
Decrease in Unrecognized Tax Benefits is Reasonably Possible | $ 21,200 |
FAIR VALUE MEASUREMENTS - Addit
FAIR VALUE MEASUREMENTS - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Apr. 30, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent consideration | $ 2,500 | ||
Non-cash impairment of goodwill | $ (109,486) | $ 0 | |
Impairment of long-lived assets | 22,351 | $ 0 | |
Other than temporary impairments on equity method investments | $ 6,700 | ||
Level 3 | Discounted Cash Flow | Weighted Average | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value option investment, measurement input | 75.00% | ||
Level 3 | Market Approach | Weighted Average | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value option investment, measurement input | 25.00% | ||
Level 3 | Discount Rate | Discounted Cash Flow | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value option investment, measurement input | 30.00% | ||
Level 3 | Revenue Multiple | Market Approach | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value option investment, measurement input, revenue multiple | 1 |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration | $ 1,219 | $ 1,298 | $ 1,586 | $ 1,529 |
Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash equivalents | 120,000 | |||
Fair value option investments | 0 | 1,405 | ||
Contingent consideration | 1,219 | 1,298 | ||
Fair Value, Measurements, Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash equivalents | 120,000 | |||
Fair value option investments | 0 | 0 | ||
Contingent consideration | 0 | 0 | ||
Fair Value, Measurements, Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash equivalents | 0 | |||
Fair value option investments | 0 | 0 | ||
Contingent consideration | 0 | 0 | ||
Fair Value, Measurements, Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash equivalents | 0 | |||
Fair value option investments | 0 | 1,405 | ||
Contingent consideration | $ 1,219 | $ 1,298 |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair Value, Assets and Liabilities, Reconciliation of Level 3 Inputs (Details) - Level 3 - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration, beginning balance | $ 1,298 | $ 1,529 |
Total losses (gains) included in earnings | 4 | 22 |
Foreign currency translation | 83 | 35 |
Contingent consideration, ending balance | 1,219 | 1,586 |
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss) | 4 | 22 |
Fair Value Option Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value option investments, beginning balance | 1,405 | 73,902 |
Total gains (losses) included in earnings | (1,405) | (41,408) |
Fair value option investments, ending balance | 0 | 32,494 |
Unrealized gains (losses) still held | (1,405) | (41,408) |
Redeemable Preferred Stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unrealized gains (losses) still held | 0 | 54 |
Available-for-sale securities, redeemable preferred shares, beginning balance | 0 | 10,340 |
Total gains (losses) included in other comprehensive income (loss) | 0 | (54) |
Available-for-sale securities, redeemable preferred shares, ending balance | $ 0 | $ 10,394 |
INCOME (LOSS) PER SHARE - Sched
INCOME (LOSS) PER SHARE - Schedule of Computation of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net income (loss) - continuing operations | $ (210,860) | $ (41,170) |
Less: Net income (loss) attributable to noncontrolling interests | 3,044 | 3,479 |
Net income (loss) attributable to common stockholders - continuing operations | (213,904) | (44,649) |
Income (loss) from discontinued operations, net of tax | 382 | 2,162 |
Net income (loss) attributable to Groupon, Inc. | $ (213,522) | $ (42,487) |
Weighted-average common shares outstanding (in shares) | 28,365,216 | 28,504,756 |
Weighted Average Number of Shares Outstanding, Diluted | 28,365,216 | 28,504,756 |
Basic and diluted net income (loss) per share: | ||
Continuing operations (in usd per share) | $ (7.54) | $ (1.57) |
Discontinued operations (in usd per share) | 0.01 | 0.08 |
Basic and diluted net income (loss) per share (in usd per share) | $ (7.53) | $ (1.49) |
INCOME (LOSS) PER SHARE - Sch_2
INCOME (LOSS) PER SHARE - Schedule of Weighted-Average Potentially Dilutive Instruments (Details) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Document Fiscal Year Focus | 2020 | |
Antidilutive securities excluded from computation of earnings per share (in shares) | 6,566,683 | 6,071,709 |
Performance Shares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares issuable upon vesting of outstanding performance share units (in shares) | 341,002 | |
Restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 1,657,810 | 1,354,442 |
Other stock-based compensation awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 279,243 | 87,637 |
Convertible senior notes | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 2,314,815 | 2,314,815 |
Warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 2,314,815 | 2,314,815 |
SEGMENT INFORMATION Schedule of
SEGMENT INFORMATION Schedule of Revenue by Segment (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020USD ($)segment | Mar. 31, 2019USD ($) | |
Schedule of Revenue by Segment [Line Items] | ||
Number of operating segments | segment | 2 | |
Total revenue | $ 374,150 | $ 578,410 |
North America | ||
Schedule of Revenue by Segment [Line Items] | ||
Total revenue | 235,129 | 357,165 |
International | ||
Schedule of Revenue by Segment [Line Items] | ||
Total revenue | 139,021 | 221,245 |
UNITED STATES | ||
Schedule of Revenue by Segment [Line Items] | ||
Revenues | 230,900 | 348,800 |
UNITED KINGDOM | ||
Schedule of Revenue by Segment [Line Items] | ||
Revenues | 49,500 | 81,100 |
Product | ||
Schedule of Revenue by Segment [Line Items] | ||
Total revenue | 167,122 | 292,583 |
Product | Goods | North America | ||
Schedule of Revenue by Segment [Line Items] | ||
Total revenue | 82,275 | 154,720 |
Product | Goods | International | ||
Schedule of Revenue by Segment [Line Items] | ||
Total revenue | 84,847 | 137,863 |
Service | ||
Schedule of Revenue by Segment [Line Items] | ||
Total revenue | 207,028 | 285,827 |
Service | North America | ||
Schedule of Revenue by Segment [Line Items] | ||
Total revenue | 152,854 | 202,445 |
Service | International | ||
Schedule of Revenue by Segment [Line Items] | ||
Total revenue | 54,174 | 83,382 |
Service | Local | North America | ||
Schedule of Revenue by Segment [Line Items] | ||
Total revenue | 142,660 | 180,377 |
Service | Local | International | ||
Schedule of Revenue by Segment [Line Items] | ||
Total revenue | 48,668 | 73,190 |
Service | Goods | North America | ||
Schedule of Revenue by Segment [Line Items] | ||
Total revenue | 3,745 | 3,127 |
Service | Goods | International | ||
Schedule of Revenue by Segment [Line Items] | ||
Total revenue | 2,233 | 1,455 |
Service | Travel | North America | ||
Schedule of Revenue by Segment [Line Items] | ||
Total revenue | 6,449 | 18,941 |
Service | Travel | International | ||
Schedule of Revenue by Segment [Line Items] | ||
Total revenue | $ 3,273 | $ 8,737 |
SEGMENT INFORMATION Schedule _2
SEGMENT INFORMATION Schedule of Gross Profit by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Gross profit | $ 201,247 | $ 306,016 |
North America | ||
Segment Reporting Information [Line Items] | ||
Gross profit | 143,771 | 209,802 |
International | ||
Segment Reporting Information [Line Items] | ||
Gross profit | 57,476 | 96,214 |
Service | North America | ||
Segment Reporting Information [Line Items] | ||
Gross profit | 130,829 | 178,913 |
Service | International | ||
Segment Reporting Information [Line Items] | ||
Gross profit | 49,284 | 78,287 |
Service | Local | North America | ||
Segment Reporting Information [Line Items] | ||
Gross profit | 123,859 | 161,082 |
Service | Local | International | ||
Segment Reporting Information [Line Items] | ||
Gross profit | 44,524 | 68,978 |
Service | Goods | North America | ||
Segment Reporting Information [Line Items] | ||
Gross profit | 3,008 | 2,563 |
Service | Goods | International | ||
Segment Reporting Information [Line Items] | ||
Gross profit | 2,016 | 1,268 |
Service | Travel | North America | ||
Segment Reporting Information [Line Items] | ||
Gross profit | 3,962 | 15,268 |
Service | Travel | International | ||
Segment Reporting Information [Line Items] | ||
Gross profit | 2,744 | 8,041 |
Product | Goods | North America | ||
Segment Reporting Information [Line Items] | ||
Gross profit | 12,942 | 30,889 |
Product | Goods | International | ||
Segment Reporting Information [Line Items] | ||
Gross profit | $ 8,192 | $ 17,927 |
SEGMENT INFORMATION Schedule _3
SEGMENT INFORMATION Schedule of Operating Income by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Schedule of Operating Income (Loss) by Segment | ||
Income (loss) from operations | $ (197,861) | $ 2,195 |
Stock-based compensation | 14,015 | 16,411 |
Long-lived asset impairment | 22,351 | 0 |
North America | ||
Schedule of Operating Income (Loss) by Segment | ||
Income (loss) from operations | (31,161) | 5,336 |
Stock-based compensation | 12,900 | 14,800 |
International | ||
Schedule of Operating Income (Loss) by Segment | ||
Income (loss) from operations | (166,700) | (3,141) |
Stock-based compensation | $ 1,100 | $ 1,600 |
SEGMENT INFORMATION Schedule _4
SEGMENT INFORMATION Schedule of Total Assets by Segment (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ 1,282,606 | $ 1,586,743 |
North America | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 1,150,501 | 1,045,500 |
International | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 132,105 | 541,243 |
UNITED STATES | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 982,000 | 1,020,000 |
SWITZERLAND | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ 114,900 | $ 175,200 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ in Millions | Jun. 10, 2020shares | Apr. 30, 2020USD ($)numberofemployees | Jun. 09, 2020shares | Mar. 31, 2020shares | Dec. 31, 2019shares |
Subsequent Event [Line Items] | |||||
Common stock, shares authorized (in shares) | 100,500,000 | 100,500,000 | |||
Common stock, shares outstanding (in shares) | 28,417,928 | 28,290,737 | |||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Restructuring charges | $ | $ 105 | ||||
Overall reduction in number of positions globally | numberofemployees | 1,300 | ||||
Stock split ratio, common stock | 0.05 | ||||
Common stock, shares authorized (in shares) | 100,500,000 | 2,010,000,000 | |||
Common stock, shares outstanding (in shares) | 28,597,158 | 571,943,153 |
Uncategorized Items - grpn-2020
Label | Element | Value |
Restricted Cash, Noncurrent | us-gaap_RestrictedCashNoncurrent | $ 206,000 |
Restricted Cash, Noncurrent | us-gaap_RestrictedCashNoncurrent | 389,000 |
Restricted Cash, Noncurrent | us-gaap_RestrictedCashNoncurrent | 236,000 |
Restricted Cash, Noncurrent | us-gaap_RestrictedCashNoncurrent | 387,000 |
Restricted Cash, Current | us-gaap_RestrictedCashCurrent | 878,000 |
Restricted Cash, Current | us-gaap_RestrictedCashCurrent | 1,973,000 |
Restricted Cash, Current | us-gaap_RestrictedCashCurrent | 1,534,000 |
Restricted Cash, Current | us-gaap_RestrictedCashCurrent | $ 3,320,000 |