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Segment Information
 12 Months Ended
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.