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Segment Information
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Segment Information
18. Segment Information
Our reportable segments are based upon our internal organizational structure; the manner in which our operations are managed; the criteria used by our Chief Executive Officer, who is our Chief Operating Decision Maker ("CODM"), to evaluate segment performance; the availability of separate financial information; and overall materiality considerations.
We now operate our business and present our results through two business segments effective the third quarter of 2020 (i) Travel Solutions, our global travel solutions for travel suppliers and travel buyers, including a broad portfolio of software technology products and solutions for airlines, and (ii) Hospitality Solutions, an extensive suite of software solutions for hoteliers. All revenue and expenses previously assigned to the Travel Network and Airline Solutions business segments have been consolidated into a unified revenue and expense structure which aligns with information that our Chief Operating Decision Maker utilizes beginning in the third quarter of 2020 to evaluate segment performance and allocate resources. These changes did not impact the historical Hospitality Solutions reporting segment's revenue and expenses.
Our CODM utilizes Adjusted Operating (Loss) Income as the measures of profitability to evaluate performance of our segments and allocate resources which is not a recognized term under GAAP. Our uses of Adjusted Operating (Loss) Income has limitations as an analytical tool, and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP.
We define Adjusted Operating (loss) Income as operating (loss) income adjusted for equity method (loss) income, impairment and related charges, acquisition-related amortization, restructuring and other costs, acquisition-related costs, litigation costs, net, and stock-based compensation.
As a result of the Strategic Realignment, we have separated our technology costs from cost of revenue and moved certain expenses previously classified as cost of revenue to selling, general and administrative to provide increased visibility to our technology costs for analytical and decision-making purposes and to align costs with the current leadership and operational organizational structure.
Our CODM does not review total assets by segment as operating evaluations and resource allocation decisions are not made on the basis of total assets by segment.
Certain of our costs associated with our technology organization are allocated to the segments based on the segments' usage of resources. Benefit expenses, facility costs and depreciation expense on the corporate headquarters building are allocated to the segments based on headcount. Unallocated corporate costs include certain shared expenses such as accounting, finance, human resources, legal, corporate systems, amortization of acquired intangible assets, impairment and related charges, stock-based compensation, restructuring charges, legal reserves and other items not identifiable with one of our segments.
We account for significant intersegment transactions as if the transactions were with third parties, that is, at estimated current market prices. The majority of the intersegment revenues and cost of revenues are fees charged by Travel Solutions to Hospitality Solutions for hotel stays booked through our GDS.
Segment information for the years ended December 31, 2020, 2019 and 2018 is as follows (in thousands):
 Year Ended December 31,
 202020192018
Revenue
Travel Solutions$1,176,694 $3,723,000 $3,628,941 
Hospitality Solutions174,628 292,880 273,079 
Eliminations(17,222)(40,892)(35,064)
Total revenue$1,334,100 $3,974,988 $3,866,956 
Adjusted Operating (Loss) Income(a)
Travel Solutions$(523,122)$729,266 $866,957 
Hospitality Solutions(63,915)(21,632)12,881 
Corporate(158,237)(194,226)(178,406)
Total$(745,274)$513,408 $701,432 
Depreciation and amortization   
Travel Solutions$250,540 $292,097 $300,707 
Hospitality Solutions42,789 53,098 39,943 
Total segments293,329 345,195 340,650 
Corporate70,414 69,426 72,694 
Total$363,743 $414,621 $413,344 
Capital Expenditures   
Travel Solutions$23,481 $52,642 $163,317 
Hospitality Solutions3,177 11,324 39,160 
Total segments26,658 63,966 202,477 
Corporate38,762 51,200 81,463 
Total$65,420 $115,166 $283,940 
(a)The following table sets forth the reconciliation of operating (loss) income in our statement of operations to Adjusted Operating (Loss) Income (in thousands): 
 Year Ended December 31,
 202020192018
Operating (loss) income$(988,039)$363,417 $562,016 
Add back:
Equity method (loss) income(2,528)2,044 2,556 
Impairment and related charges(1)
8,684 — — 
Acquisition-related amortization(2)
65,998 64,604 68,008 
Restructuring and other costs(3)
85,797 — — 
Acquisition-related costs(4)
16,787 41,037 3,266 
Litigation costs, net(5)
(1,919)(24,579)8,323 
Stock-based compensation
69,946 66,885 57,263 
Adjusted Operating (loss) income$(745,274)$513,408 $701,432 
(1)Impairment and related charges represents $5 million associated with software developed for internal use and $4 million associated with capitalized implementation costs related to a specific customer based on our analysis of the recoverability of such amounts.
(2)Acquisition-related amortization represents amortization of intangible assets from the take-private transaction in 2007 as well as intangibles associated with acquisitions since that date. 
(3)Restructuring and other costs represents charges associated with business restructuring and associated changes, including the Strategic Realignment, as well as other measures to support the new organizational structure and to respond to the impacts of the COVID-19 pandemic on our business, facilities and cost structure. See Note 4. Restructuring Activities for further details.
(4)Acquisition-related costs represent fees and expenses incurred associated with the now-terminated agreement to acquire Farelogix, as well as costs related to the acquisition of Radixx in 2019. See Note 3. Acquisitions for further information.
(5)Litigation costs, net represent charges associated with antitrust litigation and other foreign non-income tax contingency matters. In 2020, we reversed the previously accrued non-income tax expense of $4 million due to success in our claims. In 2019, we recorded the reversal of our previously accrued loss related to the US Airways legal matter for $32 million. In 2018, we recorded non-income tax expense of $5 million for tax, penalties and interest associated with certain non-income tax claims for historical periods regarding permanent establishment in a foreign jurisdiction. See Note 17. Commitments and Contingencies for further information.

A significant portion of our revenue is generated through transaction-based fees that we charge to our customers. For Travel Solutions, we generate revenue from our distribution activities through transaction fees for bookings on our GDS, and from our IT solutions through recurring usage-based fees for the use of our SaaS and hosted systems, as well as upfront fees and professional services fees. For Hospitality Solutions, we generate revenue from recurring usage-based fees for the use of our SaaS and hosted systems, as well as upfront fees and professional services fees. Transaction-based revenue accounted for approximately 79%, 91% and 92% of our Travel Solutions revenue for each of the years ended December 31, 2020, 2019 and 2018. Transaction-based revenue accounted for approximately 68%, 80% and 81% for the years ended December 31, 2020, 2019 and 2018, respectively, of our Hospitality Solutions revenue. All joint venture equity income relates to Travel Solutions.
Our revenues and long-lived assets, excluding goodwill and intangible assets, by geographic region are summarized below. Distribution revenue for the Travel Solutions business is attributed to countries based on the location of the travel supplier and IT Solutions revenue is based on the location of the customer. For Hospitality Solutions, revenue is attributed to countries based on the location of the customer. The majority of our revenues and long-lived assets are derived from the United States, Europe, and Asia-Pacific ("APAC") as follows (in thousands):
 Year Ended December 31,
 202020192018
Revenue:   
United States$636,854 $1,306,450 $1,346,895 
Europe287,421 913,245 928,533 
APAC151,206 822,679 820,711 
All Other258,619 932,614 770,817 
Total$1,334,100 $3,974,988 $3,866,956 

 As of December 31,
 20202019
Long-lived assets  
United States$417,070 $622,034 
Europe39,160 1,594 
APAC17,956 11,521 
All Other14,415 6,573 
Total$488,601 $641,722