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Segment Information
 12 Months Ended
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.