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Segment Information | 12 Months Ended
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Dec. 31, 2021
SEGMENT INFORMATION [Abstract] |
Segment Information | 4. SEGMENT INFORMATION The Sohu Group’s segments are business units that offer different services and are reviewed separately by the CODM in deciding how to allocate resources and in assessing performance. The Group’s CODM is the Company’s Chief Executive Officer. There are two segments in the Sohu Group, consisting of Sohu and Changyou. Before Sohu’s entry into the Tencent/Sohu Sogou Share Purchase Agreement on September 29, 2020, there were three segments in the Sohu Group, consisting of Sohu, Changyou, and Sogou. Between September 29, 2020 and the completion of the Tencent/Sohu Sogou Share Purchase on September 23, 2021, Sogou met the criteria to be classified as discontinued operations. Accordingly, Sogou’s historical financial results are reflected in Sohu’s consolidated financial statements as discontinued operations. The Sohu Group segments consisted of Sohu and Changyou thereafter. As most of the Sohu Group’s long-lived assets are located in, and substantially all of the revenues of the Sohu Group’s reportable segments are derived from China, where the Sohu Group’s services and products are provided to customers, no geographical information is presented. The following tables present summary information by segment (in thousands):
|  | Year Ended December 31, 2019 |
|  | Sohu |  |  | Changyou |  |  | Eliminations |  |  | Consolidated |
Revenues |  | $ | 218,442 |  |  | $ | 455,380 |  |  | $ | (19 | ) |  | $ | 673,803 |
Segment cost of revenues (1) |  |  | (148,258 | ) |  |  | (95,268 | ) |  |  | 21 |  |  |  | (243,505 | )
Segment gross profit |  |  | 70,184 |  |  |  | 360,112 |  |  |  | 2 |  |  |  | 430,298 |
SBC in cost of revenues (2) |  |  | (23 | ) |  |  | (120 | ) |  |  | 1 |  |  |  | (142 | )
Gross profit |  |  | 70,161 |  |  |  | 359,992 |  |  |  | 3 |  |  |  | 430,156 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Product development (1) |  |  | (113,761 | ) |  |  | (119,726 | ) |  |  | 0 |  |  |  | (233,487 | )
Sales and marketing (1) |  |  | (155,226 | ) |  |  | (49,768 | ) |  |  | 2 |  |  |  | (204,992 | )
General and administrative (1) |  |  | (31,330 | ) |  |  | (22,074 | ) |  |  | (17 | ) |  |  | (53,421 | )
Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions |  |  | (7,245 | ) |  |  | 0 |  |  |  | 0 |  |  |  | (7,245 | )
SBC in operating expenses (2) |  |  | (1,023 | ) |  |  | (1,185 | ) |  |  | 0 |  |  |  | (2,208 | )
Total operating expenses |  |  | (308,585 | ) |  |  | (192,753 | ) |  |  | (15 | ) |  |  | (501,353 | )
Operating profit/(loss) |  |  | (238,424 | ) |  |  | 167,239 |  |  |  | (12 | ) |  |  | (71,197 | )
Other income |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 7,963 |
Interest income |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 6,103 |
Interest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (14,370 | )
Exchange difference |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,430 |
Loss before income tax expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (70,071 | )
Income tax benefit |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (28,428 | )
Net loss from continuing operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (98,499 | )
Net income from discontinued operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 55,108 |
Net loss |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | (43,391 | )
Note (1): Total depreciation and amortization expenses of Sohu and Changyou were $50.7 million and $16.4 million, respectively, for the year ended December 31, 2019. Note (2): “SBC” stands for share-based compensation expense.
|  | Year Ended December 31, 2020 |
|  | Sohu |  |  | Changyou |  |  | Eliminations |  |  | Consolidated |
Revenues |  | $ | 201,544 |  |  | $ | 548,346 |  |  | $ | 0 |  |  | $ | 749,890 |
Segment cost of revenues (1) |  |  | (122,362 | ) |  |  | (94,362 | ) |  |  | 7 |  |  |  | (216,717 | )
Segment gross profit |  |  | 79,182 |  |  |  | 453,984 |  |  |  | 7 |  |  |  | 533,173 |
SBC in cost of revenues (2) |  |  | (177 | ) |  |  | (543 | ) |  |  | 0 |  |  |  | (720 | )
Gross profit |  |  | 79,005 |  |  |  | 453,441 |  |  |  | 7 |  |  |  | 532,453 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Product development (1) |  |  | (97,681 | ) |  |  | (136,934 | ) |  |  | 0 |  |  |  | (234,615 | )
Sales and marketing (1) |  |  | (106,057 | ) |  |  | (53,272 | ) |  |  | 0 |  |  |  | (159,329 | )
General and administrative (1) |  |  | (25,861 | ) |  |  | (25,517 | ) |  |  | 0 |  |  |  | (51,378 | )
SBC in operating expenses (2) |  |  | (1,759 | ) |  |  | (12,001 | ) |  |  | 0 |  |  |  | (13,760 | )
Total operating expenses |  |  | (231,358 | ) |  |  | (227,724 | ) |  |  | 0 |  |  |  | (459,082 | )
Operating profit/(loss) |  |  | (152,353 | ) |  |  | 225,717 |  |  |  | 7 |  |  |  | 73,371 |
Other income |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 25,993 |
Interest income |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 7,369 |
Interest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (6,234 | )
Exchange difference |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (3,800 | )
Loss before income tax expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 96,699 |
Income tax expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (133,226 | )
Net loss from continuing operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (36,527 | )
Net income from discontinued operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (91,793 | )
Net loss |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | (128,320 | )
Note (1): Total depreciation and amortization expenses of Sohu and Changyou were $26.4 million and $13.5 million, respectively, for the year ended December 31, 2020. Note (2): “SBC” stands for share-based compensation expense.
|  | Year Ended December 31, 2021 |
|  | Sohu |  |  | Changyou |  |  | Eliminations |  |  | Consolidated |
Revenues |  | $ | 186,606 |  |  | $ | 648,970 |  |  | $ | 0 |  |  | $ | 835,576 |
Segment cost of revenues (1) |  |  | (113,881 | ) |  |  | (90,517 | ) |  |  | 4 |  |  |  | (204,394 | )
Segment gross profit |  |  | 72,725 |  |  |  | 558,453 |  |  |  | 4 |  |  |  | 631,182 |
SBC in cost of revenues (2) |  |  | (1 | ) |  |  | (276 | ) |  |  | 0 |  |  |  | (277 | )
Gross profit |  |  | 72,724 |  |  |  | 558,177 |  |  |  | 4 |  |  |  | 630,905 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Product development (1) |  |  | (113,186 | ) |  |  | (151,773 | ) |  |  | 0 |  |  |  | (264,959 | )
Sales and marketing (1) |  |  | (126,126 | ) |  |  | (56,396 | ) |  |  | 0 |  |  |  | (182,522 | )
General and administrative (1) |  |  | (36,949 | ) |  |  | (40,702 | ) |  |  | 0 |  |  |  | (77,651 | )
SBC in operating expenses (2) |  |  | (804 | ) |  |  | (7,497 | ) |  |  | 0 |  |  |  | (8,301 | )
Total operating expenses |  |  | (277,065 | ) |  |  | (256,368 | ) |  |  | 0 |  |  |  | (533,433 | )
Operating profit/(loss) |  |  | (204,341 | ) |  |  | 301,809 |  |  |  | 4 |  |  |  | 97,472 |
Other income |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 29,416 |
Interest income |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 15,641 |
Interest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (7,500 | )
Exchange difference |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (3,462 | )
Income before income tax expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 131,567 |
Income tax expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (62,296 | )
Net loss from continuing operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 69,271 |
Net loss from discontinued operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 864,902 |
Net loss |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 934,173 |
Note (1): Total depreciation and amortization expenses of Sohu and Changyou were $23.4 million and $12.6 million, respectively, for the year ended December 31, 2021. Note (2): “SBC” stands for share-based compensation expense.
|  | As of December 31, 2020 |
|  | Sohu |  |  | Changyou |  |  | Eliminations |  |  | Consolidated |
Cash and cash equivalents |  | $ | 56,977 |  |  | $ | 160,080 |  |  | $ | 0 |  |  | $ | 217,057 |
Accounts receivable, net |  |  | 60,886 |  |  |  | 26,635 |  |  |  | 0 |  |  |  | 87,521 |
Fixed assets, net |  |  | 174,700 |  |  |  | 162,976 |  |  |  | (2 | ) |  |  | 337,674 |
Total assets (1) |  | $ | 1,632,736 |  |  | $ | 2,478,705 |  |  | $ | (2,701,488 | ) |  | $ | 1,409,953 |
Note (1): The elimination for segment assets mainly consists of elimination of intra-Group loans between Sohu and Changyou, and elimination of long-term investments in subsidiaries and consolidated VIEs.
|  | As of December 31, 202 1 |
|  | Sohu |  |  | Changyou |  |  | Eliminations |  |  | Consolidated |
Cash and cash equivalents |  | $ | 929,851 |  |  | $ | 69,098 |  |  | $ | 0 |  |  | $ | 998,949 |
Accounts receivable, net |  |  | 48,108 |  |  |  | 34,442 |  |  |  | 0 |  |  |  | 82,550 |
Fixed assets, net |  |  | 170,213 |  |  |  | 159,784 |  |  |  | 0 |  |  |  | 329,997 |
Total assets (1) |  | $ | 2,294,537 |  |  | $ | 2,610,964 |  |  | $ | (2,659,716 | ) |  | $ | 2,245,785 |
Note (1): The elimination for segment assets mainly consists of elimination of intra-Group loans between Sohu and Changyou, and elimination of long-term investments in subsidiaries and consolidated VIEs.

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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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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