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Segment Information | 12 Months Ended
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Dec. 31, 2014
SEGMENT INFORMATION [Abstract] |
Segment Reporting Disclosure [Text Block] | SEGMENT INFORMATION The company organizes its operations into three segments: North America, EMEA, which is comprised of Europe, Middle East and Africa, and the remainder of the Company's international operations ("Rest of World"). Segment operating results reflect earnings before stock-based compensation, acquisition-related expense (benefit), net, other expense, net and provision for income taxes. Segment information reported in the tables below represents the operating segments of the Company organized in a manner consistent with which separate information is available and for which segment results are evaluated regularly by the Company's chief operating decision-maker in assessing performance and allocating resources. Revenue and profit or loss information by reportable segment reconciled to consolidated net loss for the years ended December 31, 2014, 2013 and 2012 were as follows (in thousands):
|  | Year Ended December 31,
|  | 2014 |  | 2013 |  | 2012
North America |  |  |  |  |  |
Revenue(1) |  | $ | 1,824,461 |  |  | $ | 1,521,358 |  |  | $ | 1,165,700 |
Segment cost of revenue and operating expenses(2) |  | 1,755,113 |  |  | 1,380,746 |  |  | 1,025,974 |
Segment operating income(2) |  | 69,348 |  |  | 140,612 |  |  | 139,726 |
EMEA |  |  |  |  |  |
Revenue(1) |  | 961,130 |  |  | 742,915 |  |  | 805,476 |
Segment cost of revenue and operating expenses(2) |  | 857,062 |  |  | 631,409 |  |  | 699,470 |
Segment operating income(2) |  | 104,068 |  |  | 111,506 |  |  | 106,006 |
Rest of World |  |  |  |  |  |
Revenue |  | 406,097 |  |  | 309,382 |  |  | 363,296 |
Segment cost of revenue and operating expenses(2) |  | 471,067 |  |  | 364,295 |  |  | 405,313 |
Segment operating loss(2) |  | (64,970 | ) |  | (54,913 | ) |  | (42,017 | )
Consolidated |  |  |  |  |  |
Revenue |  | 3,191,688 |  |  | 2,573,655 |  |  | 2,334,472 |
Segment cost of revenue and operating expenses(2) |  | 3,083,242 |  |  | 2,376,450 |  |  | 2,130,757 |
Segment operating income(2) |  | 108,446 |  |  | 197,205 |  |  | 203,715 |
Stock-based compensation |  | 122,019 |  |  | 121,462 |  |  | 104,117 |
Acquisition-related expense (benefit), net |  | 1,269 |  |  | (11 | ) |  | 897 |
(Loss) income from operations |  | (14,842 | ) |  | 75,754 |  |  | 98,701 |
Other expense, net |  | (33,353 | ) |  | (94,663 | ) |  | (3,759 | )
(Loss) income before provision for income taxes |  | (48,195 | ) |  | (18,909 | ) |  | 94,942 |
Provision for income taxes |  | 15,724 |  |  | 70,037 |  |  | 145,973 |
Net loss |  | $ | (63,919 | ) |  | $ | (88,946 | ) |  | $ | (51,031 | )
(1) | North America includes revenue from the United States of $1,784.6 million, $1,471.9 million and $1,108.4 million for the years ended December 31, 2014, 2013 and 2012 respectively. Beginning in September 2013, direct revenue transactions in the EMEA Goods category have been transacted through a Switzerland-based subsidiary. As a result, EMEA includes revenue from Switzerland of $468.7 million for the year ended December 31, 2014. There were no other individual countries that represented more than 10% of consolidated total revenue for the years ended December 31, 2014, 2013 or 2012.
(2) | Segment cost of revenue and operating expenses and segment operating income (loss) exclude stock-based compensation and acquisition-related (benefit) expense, net. This presentation corresponds to the measure of segment profit or loss that the Company's chief operating decision-maker uses in assessing segment performance and making resource allocation decisions. The following table summarizes the Company's stock-based compensation expense and acquisition-related expense (benefit), net by reportable segment for the years ended December 31, 2014, 2013 and 2012. (in thousands):
|  | Year Ended December 31,
|  | 2014 |  | 2013 |  | 2012
|  | Stock-based compensation |  | Acquisition-related |  | Stock-based compensation |  | Acquisition-related |  | Stock-based compensation |  | Acquisition-related
North America |  | $ | 99,939 |  |  | $ | 1,125 |  |  | $ | 90,877 |  |  | $ | 1,285 |  |  | $ | 65,127 |  |  | $ | (2,780 | )
EMEA |  | 9,927 |  |  | 144 |  |  | 16,263 |  |  | (1,296 | ) |  | 15,123 |  |  | 3,677 |
Rest of World |  | 12,153 |  |  | — |  |  | 14,322 |  |  | — |  |  | 23,867 |  |  | — |
Consolidated |  | $ | 122,019 |  |  | $ | 1,269 |  |  | $ | 121,462 |  |  | $ | (11 | ) |  | $ | 104,117 |  |  | $ | 897 |
Acquisition-related expense (benefit), net for the North America segment includes external transaction costs and gains and losses relating to contingent consideration obligations incurred by U.S. legal entities relating to purchases of businesses that became part of the EMEA and Rest of World segments, which is consistent with the attribution used for internal reporting purposes. The following table summarizes the Company's total assets by reportable segment as of December 31, 2014 and 2013 (in thousands):
| December 31,
| 2014 |  | 2013
North America (1) | $ | 1,150,417 |  |  | $ | 1,267,158 |
EMEA | 552,486 |  |  | 616,126 |
Rest of World (1) | 524,694 |  |  | 158,726 |
Consolidated total assets | $ | 2,227,597 |  |  | $ | 2,042,010 |
(1) | North America contains assets from the United States of $1,120.4 million and $1,231.3 million as of December 31, 2014 and 2013, respectively. Rest of World contains assets from the Republic of Korea, including those assets acquired as a part of our acquisition of Ticket Monster described in Note 3 "Business Combinations," of $388.0 million as of December 31, 2014. There were no other individual countries that represented more than 10% of consolidated total assets as of December 31, 2014 and 2013, respectively.
The following table summarizes the Company's tangible property and equipment, net of accumulated depreciation and amortization, by reportable segment as of December 31, 2014 and 2013 (in thousands):
| December 31,
| 2014 |  | 2013
North America (1) | $ | 63,915 |  |  | $ | 43,126 |
EMEA (2) | 28,721 |  |  | 23,413 |
Rest of World | 11,167 |  |  | 9,100 |
Consolidated total | $ | 103,803 |  |  | $ | 75,639 |
(1) | Substantially all tangible property and equipment within North America is located in the United States.
(2) | Tangible property and equipment, net located within Ireland represented approximately 12% of the Company's consolidated tangible property and equipment, net as of December 31, 2014. Tangible property and equipment, net located within Switzerland represented approximately 11% of the Company's consolidated tangible property and equipment, net as of December 31, 2013. There were no other individual countries located outside of the United States that represented more than 10% of consolidated tangible property and equipment, net as of December 31, 2014 and 2013.
The following table summarizes depreciation and amortization of property, equipment and software and intangible assets by reportable segment for the years ended December 31, 2014, 2013 and 2012 (in thousands):
| Year Ended December 31,
| 2014 |  | 2013 |  | 2012
North America | $ | 83,106 |  |  | $ | 57,700 |  |  | $ | 30,580 |
EMEA | 24,849 |  |  | 24,157 |  |  | 17,546 |
Rest of World | 36,966 |  |  | 7,592 |  |  | 7,675 |
Consolidated total | $ | 144,921 |  |  | $ | 89,449 |  |  | $ | 55,801 |
The following table summarizes the Company's expenditures for additions to tangible long-lived assets by reportable segment for the years ended December 31, 2014, 2013 and 2012 (in thousands):
| Year Ended December 31,
| 2014 |  | 2013 |  | 2012
North America | $ | 6,775 |  |  | $ | 14,728 |  |  | $ | 38,543 |
EMEA | 12,945 |  |  | 6,719 |  |  | 26,909 |
Rest of World | 11,616 |  |  | 7,469 |  |  | 3,875 |
Consolidated total | $ | 31,336 |  |  | $ | 28,916 |  |  | $ | 69,327 |
The Company's equity method investments as of December 31, 2014 and 2013 were $1.2 million and $1.7 million, respectively, which are included in North America and are held by an entity in the United States. Category Information The Company offers goods and services through three primary categories: Local Deals ("Local"), Groupon Goods ("Goods") and Groupon Getaways ("Travel"). The Company also earns advertising revenue, payment processing revenue, point of sale revenue and commission revenue. Revenue and gross profit from these other sources were previously considered to be distinct from our primary categories and were aggregated with revenue and gross profit from Travel, our smallest category. In recent periods, these other revenue sources have been increasingly viewed by management as a component of the Local category, as they are primarily generated through the Company's relationships with local and national merchants. Accordingly, the Company updated its presentation of category information, effective beginning with the quarter ended March 31, 2014, to include other revenue and gross profit within the Local category in the tables below, and the prior period category information has been retrospectively adjusted to conform to the current period presentation. The following table summarizes the Company's third party and other and direct revenue by category for its three reportable segments for the years ended December 31, 2014, 2013 and 2012 (in thousands):
| North America |  | EMEA |  | Rest of World |  | Consolidated
| Year Ended December 31, |  | Year Ended December 31, |  | Year Ended December 31, |  | Year Ended December 31,
| 2014 |  | 2013 |  | 2012 |  | 2014 |  | 2013 |  | 2012 |  | 2014 |  | 2013 |  | 2012 |  | 2014 |  | 2013 |  | 2012
Local (1): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Third party and other | $ | 674,605 |  |  | $ | 671,846 |  |  | $ | 665,587 |  |  | $ | 391,179 |  |  | $ | 430,020 |  |  | $ | 501,782 |  |  | $ | 167,552 |  |  | $ | 182,010 |  |  | $ | 221,859 |  |  | $ | 1,233,336 |  |  | $ | 1,283,876 |  |  | $ | 1,389,228 |
Direct | — |  |  | 1,772 |  |  | 12,037 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,772 |  |  | 12,037 |
Total | 674,605 |  |  | 673,618 |  |  | 677,624 |  |  | 391,179 |  |  | 430,020 |  |  | 501,782 |  |  | 167,552 |  |  | 182,010 |  |  | 221,859 |  |  | 1,233,336 |  |  | 1,285,648 |  |  | 1,401,265 |
Goods: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Third party | 5,966 |  |  | 17,409 |  |  | 60,269 |  |  | 63,650 |  |  | 133,117 |  |  | 186,495 |  |  | 146,984 |  |  | 69,344 |  |  | 87,746 |  |  | 216,600 |  |  | 219,870 |  |  | 334,510 |
Direct | 1,074,913 |  |  | 774,023 |  |  | 391,239 |  |  | 442,344 |  |  | 115,881 |  |  | 36,393 |  |  | 46,892 |  |  | 27,325 |  |  | 10,821 |  |  | 1,564,149 |  |  | 917,229 |  |  | 438,453 |
Total | 1,080,879 |  |  | 791,432 |  |  | 451,508 |  |  | 505,994 |  |  | 248,998 |  |  | 222,888 |  |  | 193,876 |  |  | 96,669 |  |  | 98,567 |  |  | 1,780,749 |  |  | 1,137,099 |  |  | 772,963 |
Travel: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Third party | 68,977 |  |  | 56,308 |  |  | 36,568 |  |  | 63,957 |  |  | 63,897 |  |  | 76,553 |  |  | 44,669 |  |  | 30,703 |  |  | 42,870 |  |  | 177,603 |  |  | 150,908 |  |  | 155,991 |
Direct | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 4,253 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 4,253 |
Total | 68,977 |  |  | 56,308 |  |  | 36,568 |  |  | 63,957 |  |  | 63,897 |  |  | 80,806 |  |  | 44,669 |  |  | 30,703 |  |  | 42,870 |  |  | 177,603 |  |  | 150,908 |  |  | 160,244 |
Total revenue | $ | 1,824,461 |  |  | $ | 1,521,358 |  |  | $ | 1,165,700 |  |  | $ | 961,130 |  |  | $ | 742,915 |  |  | $ | 805,476 |  |  | $ | 406,097 |  |  | $ | 309,382 |  |  | $ | 363,296 |  |  | $ | 3,191,688 |  |  | $ | 2,573,655 |  |  | $ | 2,334,472 |
(1) | Includes revenue from deals with local and national merchants and through local events.
The following table summarizes the Company's gross profit by category for its three reportable segments for the years ended December 31, 2014, 2013 and 2012 (in thousands):
| North America |  | EMEA |  | Rest of World |  | Consolidated
| Year Ended December 31, |  | Year Ended December 31, |  | Year Ended December 31, |  | Year Ended December 31,
| 2014 |  | 2013 |  | 2012 |  | 2014 |  | 2013 |  | 2012 |  | 2014 |  | 2013 |  | 2012 |  | 2014 |  | 2013 |  | 2012
Local (1): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Third party and other | $ | 581,067 |  |  | $ | 582,723 |  |  | $ | 541,716 |  |  | $ | 364,545 |  |  | $ | 383,725 |  |  | $ | 453,970 |  |  | $ | 138,527 |  |  | $ | 153,406 |  |  | $ | 173,735 |  |  | $ | 1,084,139 |  |  | $ | 1,119,854 |  |  | $ | 1,169,421 |
Direct | — |  |  | (782 | ) |  | 1,909 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (782 | ) |  | 1,909 |
Total | 581,067 |  |  | 581,941 |  |  | 543,625 |  |  | 364,545 |  |  | 383,725 |  |  | 453,970 |  |  | 138,527 |  |  | 153,406 |  |  | 173,735 |  |  | 1,084,139 |  |  | 1,119,072 |  |  | 1,171,330 |
Goods: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Third party | 5,112 |  |  | 15,319 |  |  | 48,288 |  |  | 55,434 |  |  | 116,357 |  |  | 168,429 |  |  | 91,486 |  |  | 39,699 |  |  | 66,271 |  |  | 152,032 |  |  | 171,375 |  |  | 282,988 |
Direct | 88,810 |  |  | 66,753 |  |  | 36,188 |  |  | 77,706 |  |  | 13,194 |  |  | (2,521 | ) |  | (2,984 | ) |  | (224 | ) |  | (2,563 | ) |  | 163,532 |  |  | 79,723 |  |  | 31,104 |
Total | 93,922 |  |  | 82,072 |  |  | 84,476 |  |  | 133,140 |  |  | 129,551 |  |  | 165,908 |  |  | 88,502 |  |  | 39,475 |  |  | 63,708 |  |  | 315,564 |  |  | 251,098 |  |  | 314,092 |
Travel: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Third party | 56,994 |  |  | 48,824 |  |  | 27,208 |  |  | 59,229 |  |  | 56,850 |  |  | 68,777 |  |  | 33,260 |  |  | 25,689 |  |  | 33,596 |  |  | 149,483 |  |  | 131,363 |  |  | 129,581 |
Direct | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 529 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 529 |
Total | 56,994 |  |  | 48,824 |  |  | 27,208 |  |  | 59,229 |  |  | 56,850 |  |  | 69,306 |  |  | 33,260 |  |  | 25,689 |  |  | 33,596 |  |  | 149,483 |  |  | 131,363 |  |  | 130,110 |
Total gross profit | $ | 731,983 |  |  | $ | 712,837 |  |  | $ | 655,309 |  |  | $ | 556,914 |  |  | $ | 570,126 |  |  | $ | 689,184 |  |  | $ | 260,289 |  |  | $ | 218,570 |  |  | $ | 271,039 |  |  | $ | 1,549,186 |  |  | $ | 1,501,533 |  |  | $ | 1,615,532 |
(1) | Includes gross profit from deals with local and national merchants and through local events.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 + Details
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