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Segment Information
 12 Months Ended
Dec. 31, 2017
Segment Reporting [Abstract]  
Segment Information
NOTE 19 — Segment Information
We have four reportable segments: Core OTA, trivago, HomeAway and Egencia. In addition, eLong was a reportable segment through its disposal on May 22, 2015. Our Core OTA segment, which consists of the aggregation of operating segments, provides a full range of travel and advertising services to our worldwide customers through a variety of brands including: Expedia.com and Hotels.com in the United States and localized Expedia and Hotels.com websites throughout the world, Orbitz, CheapTickets, ebookers, Expedia Affiliate Network, Hotwire.com, Travelocity, Wotif Group, CarRentals.com, Classic Vacations and SilverRail Technologies, Inc. Our trivago segment generates advertising revenue primarily from sending referrals to online travel companies and travel service providers from its hotel metasearch websites. Our HomeAway segment operates an online marketplace for the vacation rental industry. Our Egencia segment provides managed travel services to corporate customers worldwide.
We determined our operating segments based on how our chief operating decision makers manage our business, make operating decisions and evaluate operating performance. Our primary operating metric is adjusted EBITDA. Adjusted EBITDA for our Core OTA and Egencia segments includes allocations of certain expenses, primarily cost of revenue and facilities, and our Core OTA segment includes the total costs of our global supply organizations as well as the realized foreign currency gains or losses related to the forward contracts hedging a component of our net merchant hotel revenue. We base the allocations primarily on transaction volumes and other usage metrics. We do not allocate certain shared expenses such as accounting, human resources, information technology and legal to our reportable segments. We include these expenses in Corporate and Eliminations. Our allocation methodology is periodically evaluated and may change.
Our segment disclosure includes intersegment revenues, which primarily consist of advertising and media services provided by our trivago segment to our Core OTA segment. These intersegment transactions are recorded by each segment at amounts that approximate fair value as if the transactions were between third parties, and therefore, impact segment performance. However, the revenue and corresponding expense are eliminated in consolidation. The elimination of such intersegment transactions is included within Corporate and Eliminations in the table below. In addition, when HomeAway properties are booked through our Core OTA websites and vice versa, the segments split the third-party revenue for management and segment reporting purposes with the majority of the third-party revenue residing with the website marketing the property or room.
Corporate and Eliminations also includes unallocated corporate functions and expenses. In addition, we record amortization of intangible assets and any related impairment, as well as stock-based compensation expense, restructuring and related reorganization charges, legal reserves, occupancy tax and other, and other items excluded from segment operating performance in Corporate and Eliminations. Such amounts are detailed in our segment reconciliation below. Included with eLong’s standalone financial statements for 2015 (through its disposal on May 22, 2015) was approximately $20 million of stock-based compensation and intangible amortization.
The following tables present our segment information for 2017, 2016 and 2015. As a significant portion of our property and equipment is not allocated to our operating segments and depreciation is not included in our segment measure, we do not report the assets by segment as it would not be meaningful. We do not regularly provide such information to our chief operating decision makers. 
 
Year ended December 31, 2017
 
Core OTA
 
trivago
 
HomeAway
 
Egencia
 
Corporate &
Eliminations
 
Total
 
(In thousands)
Third-party revenue
$
7,880,597

 
$
752,352

 
$
906,469

 
$
520,426

 
$
—

 
$
10,059,844

Intersegment revenue
—

 
413,855

 
—

 
—

 
(413,855
)
 
—

Revenue
$
7,880,597

 
$
1,166,207

 
$
906,469

 
$
520,426

 
$
(413,855
)
 
$
10,059,844

Adjusted EBITDA
$
2,068,405

 
$
5,439

 
$
201,810

 
$
94,265

 
$
(657,414
)
 
$
1,712,505

Depreciation
(309,842
)
 
(9,182
)
 
(40,211
)
 
(41,077
)
 
(213,787
)
 
(614,099
)
Amortization of intangible assets
—

 
—

 
—

 
—

 
(275,445
)
 
(275,445
)
Stock-based compensation
—

 
—

 
—

 
—

 
(149,350
)
 
(149,350
)
Legal reserves, occupancy tax and other
—

 
—

 
—

 
—

 
(25,412
)
 
(25,412
)
Restructuring and related reorganization charges
—

 
—

 
—

 
—

 
(16,738
)
 
(16,738
)
Realized (gain) loss on revenue hedges
(6,323
)
 
—

 
—

 
—

 
—

 
(6,323
)
Operating income (loss)
$
1,752,240

 
$
(3,743
)
 
$
161,599

 
$
53,188

 
$
(1,338,146
)
 
625,138

Other expense, net
 
 
 
 
 
 
 
 
 
 
(208,374
)
Income before income taxes
 
 
 
 
 
 
 
 
 
 
416,764

Provision for income taxes
 
 
 
 
 
 
 
 
 
 
(45,405
)
Net income
 
 
 
 
 
 
 
 
 
 
371,359

Net loss attributable to non-controlling interests
 
 
 
 
 
 
 
 
 
 
6,605

Net income attributable to Expedia, Inc.
 
 
 
 
 
 
 
 
 
 
$
377,964



 
Year ended December 31, 2016
 
Core OTA
 
trivago
 
HomeAway
 
Egencia
 
Corporate & Eliminations
 
Total
 
(In thousands)
Third-party revenue
$
7,083,620

 
$
538,479

 
$
689,186

 
$
462,279

 
$
—

 
$
8,773,564

Intersegment revenue
—

 
297,318

 
—

 
—

 
(297,318
)
 
—

Revenue
$
7,083,620

 
$
835,797

 
$
689,186

 
$
462,279

 
$
(297,318
)
 
$
8,773,564

Adjusted EBITDA
$
1,965,987

 
$
34,826

 
$
175,402

 
$
80,625

 
$
(641,168
)
 
$
1,615,672

Depreciation
(255,778
)
 
(7,145
)
 
(17,842
)
 
(31,340
)
 
(164,956
)
 
(477,061
)
Amortization of intangible assets
—

 
—

 
—

 
—

 
(317,141
)
 
(317,141
)
Impairment of intangible assets
—

 
—

 
—

 
—

 
(34,890
)
 
(34,890
)
Stock-based compensation
—

 
—

 
—

 
—

 
(242,417
)
 
(242,417
)
Legal reserves, occupancy tax and other
—

 
—

 
—

 
—

 
(26,498
)
 
(26,498
)
Restructuring and related reorganization charges, excluding stock-based compensation
—

 
—

 
—

 
—

 
(43,217
)
 
(43,217
)
Realized (gain) loss on revenue hedges
(12,746
)
 
—

 
—

 
—

 
—

 
(12,746
)
Operating income (loss)
$
1,697,463

 
$
27,681

 
$
157,560

 
$
49,285

 
$
(1,470,287
)
 
461,702

Other expense, net
 
 
 
 
 
 
 
 
 
 
(185,102
)
Income before income taxes
 
 
 
 
 
 
 
 
 
 
276,600

Provision for income taxes
 
 
 
 
 
 
 
 
 
 
(15,315
)
Net income
 
 
 
 
 
 
 
 
 
 
261,285

Net loss attributable to non-controlling interests
 
 
 
 
 
 
 
 
 
 
20,563

Net income attributable to Expedia, Inc.
 
 
 
 
 
 
 
 
 
 
$
281,848


 
Year ended December 31, 2015
 
 
 
Core OTA
 
trivago
 
HomeAway(1)
 
Egencia
 
eLong(2)
 
Corporate & Eliminations
 
Total
 
(In thousands)
 
 
Third-party revenue
$
5,877,213

 
$
333,024

 
$
20,222

 
$
400,115

 
$
41,743

 
$
—

 
$
6,672,317

Intersegment revenue
—

 
214,632

 
—

 
—

 
—

 
(214,632
)
 
—

Revenue
$
5,877,213

 
$
547,656

 
$
20,222

 
$
400,115

 
$
41,743

 
$
(214,632
)
 
$
6,672,317

Adjusted EBITDA
$
1,600,042

 
$
2,856

 
$
4,011

 
$
68,116

 
$
(62,167
)
 
$
(509,747
)
 
$
1,103,111

Depreciation
(189,318
)
 
(2,113
)
 
(742
)
 
(24,394
)
 
(3,263
)
 
(116,850
)
 
(336,680
)
Amortization of intangible assets
—

 
—

 
—

 
—

 
—

 
(156,458
)
 
(156,458
)
Impairment of intangible assets
—

 
—

 
—

 
—

 
—

 
(7,207
)
 
(7,207
)
Stock-based compensation
—

 
—

 
—

 
—

 
—

 
(178,068
)
 
(178,068
)
Legal reserves, occupancy tax and other
—

 
—

 
—

 
—

 
—

 
104,587

 
104,587

Restructuring and related reorganization charges, excluding stock-based compensation
—

 
—

 
—

 
—

 
—

 
(72,122
)
 
(72,122
)
Realized (gain) loss on revenue hedges
(43,597
)
 
—

 
—

 
—

 
—

 
—

 
(43,597
)
Operating income (loss)
$
1,367,127

 
$
743

 
$
3,269

 
$
43,722

 
$
(65,430
)
 
$
(935,865
)
 
413,566

Other income, net
 
 
 
 
 
 
 
 
 
 
 
 
512,396

Income before income taxes
 
 
 
 
 
 
 
 
 
 
 
 
925,962

Provision for income taxes
 
 
 
 
 
 
 
 
 
 
 
 
(203,214
)
Net income
 
 
 
 
 
 
 
 
 
 
 
 
722,748

Net loss attributable to non-controlling interests
 
 
 
 
 
 
 
 
 
 
 
 
41,717

Net income attributable to Expedia, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
$
764,465


___________________________________
(1)
Includes results since our acquisition of HomeAway on December 15, 2015.
(2)
Includes results through our disposal of eLong on May 22, 2015.

Revenue by Services
The following table presents revenue by groups of services for the years ended December 31, 2017, 2016 and 2015.
 
Year Ended December 31,
 
2017
 
2016
 
2015
 
(In thousands)
Lodging(1)
$
6,851,171

 
$
6,020,668

 
$
4,638,481

Advertising and media
1,072,656

 
807,383

 
565,704

Air
783,573

 
777,696

 
566,123

Other(2)
1,352,444

 
1,167,817

 
902,009

Total revenue
$
10,059,844

 
$
8,773,564

 
$
6,672,317

___________________________________

(1)
During the first quarter of 2017, we began disclosing lodging revenue, which includes both hotel accommodations as well as alternative accommodations primarily made through HomeAway.
(2)
Other includes car rental, insurance, destination services, cruise and fee revenue related to our corporate travel business, among other revenue streams, none of which are individually material.

Geographic Information
The following table presents revenue by geographic area, the United States and all other countries, based on the geographic location of our websites or points of sale with the exception of trivago, which has all been allocated to Germany, the location of its corporate headquarters, for the years ended December 31, 2017, 2016 and 2015. No sales to an individual country other than the United States accounted for more than 10% of revenue for the presented years.
 
Year Ended December 31,
 
2017
 
2016
 
2015
 
(In thousands)
Revenue
 
 
 
 
 
United States
$
5,534,466

 
$
5,036,539

 
$
3,703,302

All other countries
4,525,378

 
3,737,025

 
2,969,015

 
$
10,059,844

 
$
8,773,564

 
$
6,672,317


The following table presents property and equipment, net for the United States and all other countries, as of December 31, 2017 and 2016:
 
As of December 31,
 
2017
 
2016
 
(In thousands)
Property and equipment, net
 
 
 
United States
$
1,330,808

 
$
1,217,952

All other countries
244,450

 
176,952

 
$
1,575,258

 
$
1,394,904