REVENUE RECOGNITION (Tables)

3 Months Ended

Mar. 31, 2018

Revenue from Contract with Customer [Abstract]

Schedule of Prospective Adoption of New Accounting Pronouncements

Impacts on Condensed Consolidated Financial Statements

The following tables summarize the impacts of adopting Topic 606 on the Company's condensed consolidated financial statements as of and for the three months ended March 31, 2018 (in thousands):

Condensed Consolidated Balance Sheet



	March 31, 2018
	As reported		Adjustments			Balances without adoption of Topic 606
Total assets	$	1,502,928	$	(13,082	)	$	1,489,846
Total liabilities	1,152,556		84,185			1,236,741
Total Groupon, Inc. stockholders' equity	350,372		(97,267		)	253,105

Condensed Consolidated Statement of Operations



	Three Months Ended March 31, 2018
	As reported			Adjustments			Balances without adoption of Topic 606
Revenue:
Service revenue ⁽¹⁾	$	301,797		$	(1,779	)	$	300,018
Product revenue	324,743			—			324,743
Total revenue	626,540			(1,779		)	624,761
Cost of revenue:
Service cost of revenue ⁽²⁾	31,145			6,275			37,420
Product cost of revenue	270,510			—			270,510
Cost of revenue ⁽²⁾	301,655			6,275			307,930
Gross profit	324,885			(8,054		)	316,831
Operating expenses:
Marketing ⁽³⁾	99,156			1,573			100,729
Selling, general and administrative ⁽⁴⁾	222,061			(1,264		)	220,797
Restructuring charges	283			—			283
Total operating expenses	321,500			309			321,809
Income (loss) from operations	3,385			(8,363		)	(4,978		)
Other income (expense), net	(8,515		)	—			(8,515		)
Income (loss) before provision (benefit) for income taxes	(5,130		)	(8,363		)	(13,493		)
Provision (benefit) for income taxes ⁽⁵⁾	(2,335		)	(1,019		)	(3,354		)
Net income (loss)	$	(2,795	)	$	(7,344	)	$	(10,139	)

Disaggregation of Revenue



	Three Months Ended March 31, 2018
	As reported		Adjustments			Balances without adoption of Topic 606
North America
Service revenue:
Local	$	187,411	$	3,613		$	191,024
Goods	4,874		—			4,874
Travel	20,084		(3,080		)	17,004
Product revenue - Goods	180,887		—			180,887
Total North America revenue	393,256		533			393,789

International
Service revenue:
Local	74,578		(1,445		)	73,133
Goods	3,414		(239		)	3,175
Travel	11,436		(628		)	10,808
Product revenue - Goods	143,856		—			143,856
Total International revenue	233,284		(2,312		)	230,972

Consolidated
Service revenue:
Local	261,989		2,168			264,157
Goods	8,288		(239		)	8,049
Travel	31,520		(3,708		)	27,812
Product revenue - Goods	324,743		—			324,743
Total Consolidated Revenue	$	626,540	$	(1,779	)	$	624,761

Deferred Revenue, by Arrangement, Disclosure

The following table summarizes the activity in revenue deferred from contracts with customers for the three months ended March 31, 2018 (in thousands):



	Deferred Revenue
Balance as of January 1, 2018	$	25,763
Revenue deferred	22,185
Revenue recognized	(25,935		)
Foreign currency translation	172
Balance as of March 31, 2018	$	22,185

The following table summarizes the activity in the liability for customer credits for the three months ended March 31, 2018 (in thousands):



	Customer Credits
Balance as of January 1, 2018	$	19,414
Credits issued	32,386
Credits redeemed ⁽¹⁾	(28,167		)
Breakage revenue recognized	(5,036		)
Foreign currency translation	164
Balance as of March 31, 2018	$	18,761

(1)

Customer credits can be redeemed through the Company's online marketplaces for goods or services provided by a third-party merchant or for merchandise inventory sold by the Company. 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 the Company, 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.